Supply Chain by the Numbers for Week of Feb. 11, 2011

Supply Chain by the Numbers

- Feb. 11 , 2011 -

PepsiCo sees a lot of Fizz in Input Prices; Union Pacific has Pricing Power; Unilever Senses Improved Forecasting Capabilities; US Exports Up, but Imports Even More



9.5%
The top end of the amazing level of input cost inflation that food and beverage giant PepsiCo expects for the year, according to its CFO. The range of 8-9.5% is equivalent to an additional $1.4-1.6 billion in costs. There aren’t many years in my 23 years at PepsiCo that I remember seeing that range,” said Hugh Johnson.

5.5%

Increase in "core pricing" for Union Pacific in Q4, as the four publicly traded major US rail carriers all enjoyed banner Q4 and full 2010 profits. Rail car volumes were up 7-12% across the four, while revenues were up 13.5-21% in Q4 - indicating pricing power. See Fourth Quarter and Full Year Quite Good for Rail Carriers, but LTL Sector Continues to Struggle.


30-35%
Improvement in short term (7-day) forecasting accuracy Unilever NA has achieved from new "demand sensing" technology, leading to significant benefits in safety stock reduction and other areas, according to an interview SCDigest had this week with a Unilever executive. Look for the full story in SCDigest soon.




16.6%
The rise in US exports for 2010, according to data just released by Commerce Dept. today, to $1.83 trillion. That's the good news. But imports increased even faster, by 19.7%, leaving the US trade deficit up to $497.82 billion for the full year. The 32.8% year over year expansion in the trade gap was the biggest in 10 years.