Remove Freight Remove Inventory Remove Sourcing Remove Taiwan
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Build Resilient Supply Chains That Weather Disruptions 

Logility

As the pandemic eased, ports suffered bottlenecks, natural disasters disrupted freight movement, railways suffered congestion, and new legislation further complicated the movement of goods. For example, COVID restrictions in Asia shut down auto production because 70% of chip manufacturing happens in Taiwan and South Korea.

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Peloton’s Supply Chain Strategy Turnabout

Supply Chain Matters

The company will henceforth outsource the manufacturing of its stationary exercise bikes and treadmills to a Taiwan based contract manufacturer. Sourcing was both a cost as well as landed cost decision factor. The company was eventually forced to transport its bikes and equipment by more expensive air freight to avoid congested U.S.

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Global Manufacturing Activity Levels Continue to Stabilize in March and Q1-2023

Supply Chain Matters

However, we discern some added signs excess inventories and of production sourcing shifts. Source: S&P Global, April, 2023 Highlights of Regional Reporting Developed Regions Eurozone The S&P Global Eurozone Manufacturing PMI® fell again in March to a value of 47.3 compared to the February value of 48.5,

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Federal Reserve GSPI Index Drops Significantly in April

Supply Chain Matters

The authors further observed that there was a notable upward contribution from Taiwan stocks of purchases. freight and logistics recession , we called attention to reports that the Logistics Manager Index (LMI) for April reached an all-time low of 50.9, characterized as the lowest reported reading in this index’s history.

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CAPS Conference: The Economist Projects What’s in Store for the Global Economy

NC State SCRC

Conflict erupts between China and Taiwan (Andrew said this is not likely, and I agree – see my previous blog ). The good news is that ocean freight rates will start trending down somewhat. Dual sourcing and longer term contracts – This is always a challenge. War in Ukraine turns into global conflict.

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100+ Supply Chain Crisis Statistics: Raw Materials, Covid-19, Labor Shortages, and More

ToolsGroup

Such measures include communicating with suppliers and customers , using demand shaping to overcome inventory shortages, seeking additional suppliers, and building more onshore facilities. Thanks to container prices rising as much as 600%, money that could be used for advertising went to freight companies instead. Consultancy UK).

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Sourcing Priorities: Low Cost Geography or Domestic On-shoring?

Supply Chain Game Changer

For many years the predominant priority in sourcing has been finding the lowest cost possible. What is the appropriate sourcing strategy going forward? Should you keep work in low cost geographies, establish sources in multiple geographies, or on-shore work into high cost domestic countries? Geographic Sourcing History.