Supply Chain by the Numbers for Week of March 2, 2012
Toyota Says Time to Recovery will Shrink Dramatically; Truckoad Carriers Roll Through a Strong Q4; Maersk Losing Money per Container, but Making it Up on Volume?; Mapping Honda's Supply Chain
Number of weeks Toyota is now saying it will take for it to recover if another major earthquake was to hit Japan, as it did in March 2011, according to a top company executive this week That after the 2011 disaster impacted production for about six months. EVP Shinichi Sasaki said "We'll know by the end of March what contingency measures will be taken by all the supply sources and have those in place by around autumn," and followed a complete mapping of its supply chain.
Gain in revenue in Q4 across eight US truckload carriers we follow as part of our quarterly analysis of the sector. About a third of that gain appears to have come from fuel surcharge increases in the face o rising diesel costs, another third do to volumes, and another third due to rate hikes, which were up 4-5%, it appears. Werner noted that it "continues to believe that favorable truckload demand trends are caused to a greater degree by supply side constraints limiting truckload capacity, as compared to growing demand generated by increased economic activity." See Truckload Carriers Again Enjoy a Solid Q4 and Full 2011, Our Exclusive Analysis Shows
Number of years it took Arizona State University's Dr. Tom Choi to map the full multi-tier supply chain for a single "module" - in this case, the "center console" where the cup holders are found - for one of Honda's car models. The work came as a result of a grant from the National Science Foundation, Choi said this week on a Videocast on our Supply Chain Television Channel, and illustrated just how complex these multi-tier supply chains can be - and that most companies themselves don't fully understand them.
Loss for 2011 for container shipping giant Maersk Line, whose fortunes always seem to capture what is happening in the industry. That was down from a record profit of $2.6 billion in 2010. The company also said it will be in the red for 2012, as overcapacity and European trade woes put a whammy on profits. Nevertheless, Maersk Lines CEO recently said the $25 billion giant would "defend market share at any cost." It said it lost $75 per container in 2011.