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Supply Chain by the Numbers
   
 

- Jan. 17, 2013

   
  Supply Chain by the Numbers for Week of Jan. 17, 2013
   
 

Is US Slipping Even in Advanced Manufacturing? UPS-TNT Deal Explodes; Sony Keeps the DVDs Moving; We are Barely Covered with US Made Apparel

   
 
 
 

$89 Billion

Lost US manufacturing output across 106 "advanced" manufacturing sectors due to a 1.3% increase in imports in those product areas in 2011. That according to a just released study from the US Business and Industry Council, which found imports’ share of the 106 sectors rose to 37.57% in 2011, up from 37.07% in 2010. The news threw a bit of cold water on those – including SCDigest – predicting something of a US manufacturing renaissance, as it is in these advanced areas where the most promise for growth was generally seen.

 
 



 
 
 

$267 Million

Amount of a so-called break-up fee that UPS must now pay to Europe’s TNT Express after finally giving up its planned $6.8 billion dollar acquisition of the parcel carrier, which would have given it the leading position in the Euro market, ahead of DHL. That after repeated objections and concessions requests over nine months from European Commissioners concerned about the impact on competition in the market. The latest included demands that UPS sell a number of its assets there to in effect create another competitor in the market.

 
 
 
 
 
98%

The amount of clothing worn in the US that is made offshore. That this week from the American Apparel and Footwear Association after the news this week at the NRF show that Walmart was going to increase its level of sourcing from US manufacturers, with apparel cited as one sector of specific focus (the others were furniture and appliances). In sectors such as apparel, however, there are questions as to whether there is enough infrastructure and knowledge left in the US to support a rebirth.

 
 
 
 
 

70 Million

Approximate number of DVDs housed at any one time at Sony’s huge 1 million square foot+ distribution center in Bolingbrook, IL, based on information from a tour SCDigest took of the facility this week. We’d say the entertainment world hasn’t gone all on-line yet. The volumes are that high because Sony not only distributes DVDs from its own movie studio, but from many others as well, doing third party fulfillment. The DC uses sophisticated WMS capabilities (Softeon) to optimize across wave picking, cartonization, and downstream sorter capacity (for individual DVDs) to reduce picking costs and maximize equipment utilization

 
 
 
 
 
 
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