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Supply Chain by the Numbers
   
 

- March 21, 2014

   
  Supply Chain by the Numbers for Week of March 21, 2014
   
 

US Manufacturing Finally Getting Close to 2007 Levels; IPCC Predicts Economic Hit from Global Waming; Sony Culling its Supplier Field; American Hotel Register Automates Replen Orders

   
 
 
 

97.2

Level of the US' total manufacturing output index in February, after a strong .8 rise for the month, according the latest data from the Federal Reserve. That means US manufacturing output is still 2.8% below the peak and baseline year of 2007. That's the highest level seen since that year, tied with December of 2013, before a dip in January. Will 2014 finally be the year US manufacturers get past the 100 mark and move above 2007 levels some seven years later? We believe Yes.

 
 



 
 
 

0.2 - 2.0%

Range of likely reduction in global economic output from a global mean temperature increase of 2.5 degrees Celsius above pre-industrial levels, according to an upcoming report from the UN's Intergovernmental Panel on Climate Change (IPCC). Some details of the report were released this week. We will note, however, that is quite a broad range. 2% would indeed have quite an impact, lowering global GDP by trillions of dollars. The .2% level, however, would have negligible impact and really be hard to measure. The report forecasts that climate change will also reduce median farm yields by up to 2% per decade for the rest of the century, against a backdrop of rising demand that is set to increase by 14% per decade until 2050 - but the numbers all seem more speculation than fact.


 
 
 
 
 

60

Number of suppliers that American Hotel Register, the leading distributor of non-food items to the hotel industry, has on "auto release" repenishment orders. That according to Kyle Marx, Director of Supply Chain Analytics at the company, at the Logility software user conference in Atlanta this week. That means the software determines when new purchase orders are needed based on forecast demand, current inventory levels, mix/max logic, container/trailer optimization and more, and simply triggers a new PO. Marx says the company hopes to get to some 300 suppliers on the program in the end.

 
 
 
 
 

250

The number of key strategic suppliers that electronics giant Sony will focus on as partners over the next few years, the company announced this week. Sony is choosing partners for key products, including smartphones and digital cameras, from about 1,000 current vendors. The strategic partners relationship status isn't permanent and is designed to make Sony's products more competitive and speed its time to market. The company recently forecast a loss of more than $1 billion for the year, as Sony missed the smart phone and tablet computer waves.

 
 
 
 
 
 
 
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