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Supply Chain by the Numbers

- June 13, 2013

  Supply Chain by the Numbers for Week of June 13, 2013

Happy Supply Chain Grads; Interesting New Alternative Fuel; HOS Deadline Fast Approaching; 3PL Share of Logistics Continues to Grow




Reduction in carbon emissions from an odd new fuel called dimethyl ether, or DME. Hardly anyone had ever heard of DME until Volvo Trucks announced last week that it was going to start commercial production of DME-based trucks in 2015, and was entering into a pilot with grocery chain Safeway next year to test two DME trucks. DME is a gas that can be made from manure, rotting grass, natural gas and more. It costs about the same as diesel, but has a number of other benefits that might give natural gas powered trucks a real battle. See A New Alternative Truck Fuel Enters the Playing Field.




Number of days now until the new Hours of Service rules for US truck drivers will begin to be enforced, barring a court decision between now and then overturning the rules as a result of the lawsuit that was filed by the American Trucking Associations. The most notable change to the HOS rules are that drivers are now limited to one 34-hour restart per week, and every restart must include two 1 a.m. to 5 a.m. periods. Most estimates are that the new rules will reduce carrier productivity about 5% or so.


Average starting salaries for 2012 graduates of Arizona State University’s master's degree program in supply chain management, according an article last week in the Wall Street Journal, which said such degrees might be considered "the new MBA." That idea in part because at Arizona State at least, that starting salary for supply chain grads topped the average for the school's MBA graduates, which averaged $92,556. MIT's Chris Caplice told SCDigest that MIT's supply chain graduate program saw 2012 students average an amazing $115,000 in starting salaries. Back to school everyone!



Growth of net global third-party logistics revenues in 2012, according to the new annual report from the analysts at Armstrong & Associates. "Net" revenue means purchased transportation costs and revenues are deducted out. That means 3PLs continue to grow revenues faster than overall global GDP, which rose about 2.3% in 2012, according to the World Bank. By far the largest share of the $63.5 billion in total global net 3PL revenues came from warehousing and distribution services, which saw shipper spend of $27.6 billion in 2012.

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