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Restructuring Global Value Chains & Tariff Reduction – A Continuous Evolution for Supply Chains

The Logistics & Supply Chain Management Society

Ensuring that any approach is fully compliant in order to avoid having to relocate production or supply sources often takes up a lot of internal resources. Many companies buy forward inventory ahead of tariffs being implemented. Firms could store products that attract tariffs in bonded warehouses until they are required.

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Another Peloton Supply Chain and Customer Service Turnabout

Supply Chain Matters

The saga of fitness hardware and services provider Peloton Interactive took yet another turn last week with an announcement of the pending closing of the company’s owned North American warehouses and the shedding of field customer support teams, along with other moves. Inventory Glut of Bicycles. over the coming months.

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Reports of Easing Global Supply Chain Volatility in July

Supply Chain Matters

The overall takeaway from the July data was that global production momentum had begun to stagnate and in some regions such as the Eurozone, Taiwan, and to some extent , certain manufacturing regions of China, PMI values had reached contraction levels. . Warehousing and Inventory metrics continue to buoy the logistics sector.

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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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August 2022 Global Manufacturing Indices- Declining Momentum Accelerating

Supply Chain Matters

The bottom three were listed as Poland , Taiwan and Myanmar. From our lens, Taiwan remains the continued shocker, experiencing a third consecutive monthly decline and noted as equivalent to levels seen in May 2020 during the initial Covid-19 outbreak.

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Mid-Year Assessment of 2022 Supply Chain Predictions- Part One

Supply Chain Matters

front that retailers and certain businesses may have procured too much inventory , and now that these inventories have arrived, the challenge will be not to exposed to a decline in consumer buying activity in the months to come. The effect has been cash and working capital headwinds and growing demands for warehouse space. .

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Plan your Supply Chain with Uncertainty

Adexa

In certain cases, they try to hedge with inventory that may not be necessary, adding to cost and inferior customer service. People have a higher incentive to increase the inventory than face the problem of running short, whether it is needed or not. Moreover, the incentive is to be safe than sorry.