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In the meantime, Hyundai’s supply-chain radar was able to quickly identify two South Korean wire harness makers who were looking for opportunities to increase production at their own factories in SouthKorea and elsewhere in Asia, to compensate for disruptions to the Chinese supply chain.
Such measures include communicating with suppliers and customers , using demand shaping to overcome inventory shortages, seeking additional suppliers, and building more onshore facilities. 75% of procurement managers and Managing Directors from the EU and UK believe passing on increased raw material costs to customers is appropriate.
SouthKorea has now become a concern as well as that regions manufacturing activity is now at a contraction level not seen since 2020. . . Similarly, raw material inventories are accumulating due to the sudden and unexpected drop in production volumes.”. . SouthKorea. Select Regional Highlights. United States.
Previously acquiring these components from global semiconductor suppliers, Samsung now has more domestic options because “more suppliers in SouthKorea have now emerged with the rising demand for memory chips,” according to SamMobile’s Mihai Matei. While reporting 76% YOY growth in profit and 43.5%
The US auto industry is expected to follow suit as stockpiled inventory becomes depleted. Examples are: Samsung Electronics , which is shifting part of its domestic phone production to Vietnam due to the rapid advance of COVID-19 in SouthKorea. It is also airlifting parts from China to its Vietnam operations.
Solid growth levels were once again reported for India, along with positive growth indicators for the United Kingdom and SouthKorea. manufacturing and procurement activity levels, namely the ISM Report on Business Manufacturing PMI , and the S&P Global U.S. United States The two followed indices of U.S.
The impact on supply chains is particularly apparent in the following two broad areas— shipping and procurement of products/components/raw materials. COVID-19 Impact on Procurement. In SouthKorea , Hyundai announced the suspension of its production lines due to supply chain disruptions in China. Other Industries.
Various industry supply chain and procurement management teams are obviously going to have to differentiate as to two different narratives presented in these separate reports. The June report commentary made special note for SouthKorea being viewed as the bellwether for exports of key industry supply network intermediate materials momentum.
Quicker declines in finished goods inventories and a softer reduction in pre-production stocks were noted. Renewed Expansion in SouthKorea The S&P Global SouthKorea Manufacturing PMI® was headlined with a reported renewed expansion in the country’s manufacturing sector at the start of 2024. increased 1.3
The orders-to-inventory ratio fell to another multi-year low last month as excess capacity continued to build at factories. Of particular concern, the New Orders sub-index declined more than 4 points, reaching a contraction value in September while the Inventories sub-index was 2.6 SouthKorea. percentage points higher.
Inventory Turnover Breakthrough … Go Back To The Basics! For instance, the bankruptcy of SouthKorea’s 7th largest shipping company (Hanjin Shipping) led to a dramatic reduction in global supply chain shipping capacity. Procurement departments must take the full burden of ensuring supplier consistency.
manufacturing and procurement activity levels, namely the ISM Report on Business Manufacturing PMI , and the S&P Global U.S. The S&P Global SouthKorea Manufacturing PMI® fell from 51.9 Finally, there is the Q4 holiday fulfillment quarter, with much of the inventory needs brought in earlier as a hedge to the U.S.
This index complies a data set of 2 chosen variables for each of the economies of the Eurozone , China , Japan, SouthKorea , Taiwan, the United Kingdom and the United States. Of particular concern was the Inventory level index, which rose 9.1 A spillover index of Inventory Costs reached a reported all-time peak of 90.3. .
Financial Performance SouthKorea based key supplier of high tech and smartphone semiconductor and memory devices, Samsung Electronics, reported disappointing Q4 and 2023 full year financial performance results. However, the ongoing trend of customers reducing inventory may mean that earnings will not significantly recover.
However, the published index indicated expansion level was rather mild, and was missing PMI data from SouthKorea which experienced a slight PMI contraction. We would add our observation that this is typical given the typical post Lunar New output increases derived from the seasonality of spring and summer inventory order rates.
Previous global materials sourcing and just-in-time driven inventory management policies were laid bear with the realization that supply risk was a more problematic and business critical dimension. The augmented inventory approaches, although troublesome and concerning, are a likely tactical manifestation of risk mitigation.
Samsung Electronics reported an over 21 percent rise in quarterly revenues for the SouthKorea based company, but the numbers reportedly ended a streak of three consecutive quarters of record revenue growth. Two noted bellwethers of consumer electronics and high-tech supply networks are Samsung Electronics and Apple.
Further indicated were signs of weakness occurring in China , Japan , Malaysia, SouthKorea , Taiwan and Vietnam. Morgan indicated in part: “ Near-term forward looking indicators also headed lower, most notably the finished goods orders-to-inventory ratio which fell further below 1,0 from an already contractionary reading.”
In higher-traffic markets, Advance Auto Parts has “hub” stores that keep more inventory in-stock to give customers what they need when they need it. Bed Bath & Beyond is also implementing inventory reduction strategies and is on track for a 5% reduction year-over-year by the end of the current fiscal year.
While China, Italy, Japan and SouthKorea are on lock-down, the same thing is happening at large and small companies in the states. Laundry Between Emails: Making the Most of the Coronavirus Pandemic. The Coronavirus is putting remote work to a gigantic test, and at a totally unprecedented scale.
While China, Italy, Japan and SouthKorea are on lock-down, the same thing is happening at large and small companies in the states. Laundry Between Emails: Making the Most of the Coronavirus Pandemic. The Coronavirus is putting remote work to a gigantic test, and at a totally unprecedented scale.
Kevin Nelson, a chief procurement officer and senior vice president at BD, agreed to be interviewed on this topic. Do I need more inventory? You could ask, what if there was an earthquake in SouthKorea? In the BD supply chain, it is the procurement team that plays a key risk management role. Do it every time. “I
As many shippers front-loaded inventory in the second half of 2018—especially the fourth quarter—to avoid potential tariff increases, the market saw drastic volume increases beyond what we’ve come to expect from years’ past. Higher inventories to avoid tariffs. Procure enough capacity. And, total imports on trade were up 1.4%
Accomplished procurement veteran and author Tom Linton provides valuable insights into the supply chain risk management landscape in 2024 in this exclusive Q&A. In this Q&A, Tom shares insightful stories from his over 20 years in procurement and tells us what should be top of mind for supply chain managers in 2024.
In the decades since, Linton and his teams at IBM, LG, Flex and other companies have driven billions in annual procurement to China and other Asian countries, helping to create the Asia-centric manufacturing supply chains of today. That has dramatically increased the cash tied up in inventory,” said Rogers.
Strong demand prompted firms to tap into their inventories causing the fastest drop in finished goods stocks in over three years. manufacturing and procurement activity levels, namely the ISM Report on Business Manufacturing PMI , and the S&P Global U.S. For all three months of Q1-2025, this countrys average PMI value of 57.4
Whipsaw Effects Continue Leading up to today there were reports that multiple countries, including Japan , SouthKorea and Vietnam were sending delegations to Washington to negotiate better terms to prior announced tariff levels. in order to stockpile inventories prior to significant tariffs taking effect.
import tariffs opens up another opportunity for supply management teams to issue new orders and replenish inventories while the suspension window remains in effect. and China are subsequent trade negotiations that need to occur among other major trading partners such as Europe , Japan, SouthKorea and ASEAN nations.
Inventory purchases and manufacturing employment each decreased. Taiwan and SouthKorea Taiwan manufacturers continue to benefit from accelerated growth. As a further evidence point, the S&P Global SouthKorea Manufacturing PMI rose from the contractionary value of 48.3 in November, an increase of 1.3
The One Belt One Road project covers 65% of global population and 34% of global GDP – and this will connect the future of low cost locations with value added locations, and will exclude SouthKorea, Japan, the Americas, but the RCEP will link this countries in. This is a development that we all need to be more aware of.
manufacturing and procurement activity levels, namely the ISM Report on Business Manufacturing PMI , and the S&P Global U.S. April activity reportedly resulted into purchasing activity growth softening and a reluctance among Chinese manufacturers to hold any additional inventories. United States The two followed indices of U.S.
China has retaliated to Trumps earlier tariffs and recently stated that it will respond in conjunction with Japan and SouthKorea. Ocean Freight The anticipation of new Trump tariffs has driven many US importers to frontload as much inventory as possible since November. Lower consumer demand will lower demand for freight.
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