Remove China Remove Freight Remove Manufacturing Procurement Remove Ukraine
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Supply Chain Normalcy? Think Again.

Supply Chain Shaman

Over four-hundred days of war in Ukraine. Growing tensions between China and trading partners. As consumer spending fell, the days of escalating ocean freight and extreme shipping variability eased this year. In the face of variability, this is two-to-six weeks too long to make allocation or procurement decisions.

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Editor’s Choice: Aluminum Can Shortage Defines a New Normal for Food Packaging

Logistics Viewpoints

This shortage is the culmination of various ongoing issues – geopolitical tensions related to the Russia-Ukraine war, the rapid shift in consumer buying behavior and container freight availability. This shortage and sudden uptick in demand weren’t something that most can manufacturers were prepared for.

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One Type of Inflation is Caused by Supply Chain Issues (And That is a Good Thing)

Logistics Viewpoints

But SHIFEX, the freight forwarder rate index, recently recorded the lowest ocean freight rate between China and the port of Long Beach in 24 months —a rate of $3,500 to move a 40-foot container. This is an 80% drop year on year drop. When the Federal Reserve (the Fed) believes inflation is too high, they raise interest rates.

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Disruption in China Ripples Across Global Supply Chains in April 2022

Supply Chain Matters

In this Supply Chain Matters commentary, we highlight the latest quantitative data related to global manufacturing PMI activity levels for April. Global Manufacturing Output Levels Declined. The Global Manufacturing Output sub-index reportedly dropped to a contraction value of 48.5 China’s Specific Impact.

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Supply Chain Matters COVID-19 and Ukraine Conflict News Capsule Update- October 25 2022

Supply Chain Matters

The report further indicates that two downstream suppliers in China that rely on the parts and assemble them into larger modules are also cutting their production 70 percent and 90 percent, respectively. Whereas the spot rate to ship a container from China to the U.S. West Coast had declined to the lowest level in more than two years.

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Supplier Relationship Management in a Time of Fragmented Supply Chains

QAD

Unpredictability is undoubtedly the major issue manufacturers face when dealing with fragmented supply chains. As the supply chain breaks, manufacturers must find new suppliers and new transport routes and find them rapidly, so that production doesn’t come to a halt. So, how can manufacturers respond to these challenges?

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Can You Predict Supply Chain Disruptions in an Unpredictable World?

Logility

Prior to the pandemic, efficiency meant just-in-time manufacturing, but disruptions exposed the flaw in this approach. Then came Russia’s invasion of Ukraine. Between them, Ukraine and Russia account for approximately one-third of global wheat production. By 1979, China was one of the globe’s fastest-growing economies.