Supply Chain Trends and Issues: Our Weekly Feature Article on Important Trends and Developments in Supply Chain Strategy, Research, Best Practices, Technology and Other Supply Chain and Logistics Issues  
 
 
  - Jan. 7, 2012 -  

Supply Chain 2012 Key Event Timeline

Month by Month Review of the Key Events in Supply Chain and Logistics 2012

 
     
     
  by SCDigest Editorial Staff  
     
 

What were the key events and stories in supply chain and logistics? Below, SCDigest offers a month by month recap of the news that mattered in 2012.

SCDigest Says:
We recap the most important supply chain events and stories of the year.

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January

Oil prices start year at about $97.00 for West Texas Intermediate (WTI).

Legendary and innovative trucking executive Don Schneider of Schneider National (son of the founder) dies at age 76.

Apple releases Supplier Progress Report, criticizing some working conditions at its own supplier factories. New York Times article critical of conditions at Apple contractor Foxconn comes out days later.

February

• NASSTRAC and TranzAct's Mike Regan lead "Stand Up For Trucking" Fly-In to Washington DC, but measures to extend truck weights and lengths are both tabled for further study in Congress, disappointing shippers after savvy lobbying by rail interests.

Dr. David Simchi-Levi of MIT introduces his innovative new Risk Exposure Index for measuring supply chain risk on an SCDigest/SCTV videocast.

• Maersk Lines cancels options for last 10 Triple E megaships capable of handling 18,000 TEU, amid capacity glut in industry. 20 of the giant ships had already been ordered.

•Toyota announces major new plan to reduce its supply chain risk after earthquake/tsunami disaster of 2011, based on massive effort to fully map its supply chain and quantify and reduce "time-to-recovery."

• Oil prices (WTI) reach high of $110/barrel, stay about there for weeks as diesel prices soar at even faster pace.

March

• Amazon.com surprisingly announces it is acquiring robotic picking system vendor Kiva Systems for $775 million.

• Fair Labor Association releases its audit of Apple's Foxconn factories. Media mostly report major violations found, but in reality issues identified were minor.

April

• NY Times breaks story that Walmart may have used bribes to accelerate Mexican expansion years earlier, covered up the mess internally. Has little impact immediately, but Walmart later in year said to have found many similar problems across the globe.

• Panama Canal proposes 7-8% increases in tolls for 2012 and 2013, finally approved in August.

May

• SAP announces plan to acquire procurement technology leader Ariba.

• VICS releases new guideline on connected store shelf/POS back through the supply chain.

• At its User Conference, JDA Software announces major Cloud-based focus for its solutions, citing huge deployment advantages.

• Homeland Security head Janet Napolitano announces she was delaying for two years requirements for 100% container scanning on goods headed to the US, over a myriad of technology and process concerns.

• Article in the Wall Street Journal says Macy's is turning some 200 of its stores in part into fulfillment centers for e-commerce.

• Gartner top 25 supply chain list released for 2012, led by no. 1 Apple and no. 2 Amazon.com.

June

• Annual State of Logistics Report says logistics costs rose 2.6% in 2011 to 8.5% of GDP.

• Long overdue new surface transportation/highway bill signed into law (2 years, $118 billion), shorter timeframe than usual.


• Joining the bandwagon, Oracle announces its new Cloud-based software line-up.

• Oil prices tumble to just $78 /barrel on global economic fears, down 30% from top in February. Back to $86 soon though. Most commodities well down from highs, but corn, other agricultural groups later soar on drought in July.


July

•  String of 34 straight months of US manufacturing expansion ends, as June PMI falls to 49.7

• Walmart celebrates 50th anniversary of its first store.

• ATA says it will challenge new Hours of Service Hour rules in court, saying cost-benefit analysis used by FMCSA was flawed.

• Amazon.com says in its Q2 earnings release that it will open 18 more distribution centers in 2012.

(Supply Chain Trends and Issues Article - Continued Below)


 

 
 
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August

Bitter strike at Caterpillar's Joliet, IL plant ends after nearly 4 months, mostly in company's favor, in action some dubbed "labor's last stand."

JC Penney's CEO Ron Johnson says retailer will rush full RFID enablement in-stores by early 2013 to support "check out anywhere" capabilities key to its turnaround plan.

Samsung announces it will invest another $4 billion in its Austin, TX factory to crank out more chips for mobile devices.

September

Riots erupt over working conditions at Foxconn factory in China that builds products for Apple.

Securities filing from trading giant Li & Fung seems to indicate Walmart is going to do more direct global sourcing, cutting out the middleman, though details of change are fuzzy.

East/Gulf coast port workers agree to 90 day contract extension, averting major strike.

Rethink Robotics releases its eagerly awaited new-age industrial robot, named Baxter. Claim is that Baxter is much easier and safer to operate than traditional robots.

Standards organizations GS1US and VICS announce merger.

October

EU Commission said it is considering placing a global carbon tax on all shipping containers coming into or out of the European Union, based on full length of voyage. Decision expected early 2013.

News comes that Walmart is testing same day delivery in several markets. Amazon, USPS, eBay and others also testing, in e-commerce delivery wars

Wall Street Journal article says ultra-low US natural gas prices are driving US manufacturing renaissance in some sectors, such as chemicals, fertilizers and metals, especially in "rust belt" region. First new fertilizer plant in US in 20 years, several large chemical factories being built.

In video interview with SCDigest editor Dan Gilmore at the CSCMP conference, legendary energy investor Boone Pickens says natural gas freight trucks will be widespread in 7-8 years, 3-4 if program to provide loans is approved in Congress.

Walmart announces that how well its buyers are using its Sustainability Index score as part of vendor selection will become part of the buyer's own performance reviews, accelerating the program.

November

Supply chain software giants JDA Software and RedPrairie announce plans to merge, take JDA private.

Fire at Bangladesh apparel factory kills more than 100, was supplying garments for many leading US retailers despite dangerous conditions there.

Strike at ports of LA and Long Beach shuts down most container handling for 8 days, as dock workers honor picket lines of small clerical workers union.

News that Walmart is testing new "Supercube" truck-trailer design in Canada that claims as much as 30% capacity improvement.

Bidding for emissions permits in California's cap and trade program for reducing carbon emissions begins.

December

UK retailing giant Tesco announces it is leaving its once feared entrance to US market, losing its $1.6 billion investment.

Apple says it will invest some $100 million to once again build some Mac computers in the US.

UN Global Climate conference in Doha, Qatar seen as mostly a dud, as few agree to extend Kyoto Accord and not much other progress made. Little media coverage versus previous years.

Michigan votes to become 24th right to work state over fierce union opposition.

Honeywell announces plan to acquire wireless/data collection vendor Intermec, taking market down to itself and Motorola Solutions.

East/Gulf coast port workers agree to 30 day contract extension, averting major strike, after key issue over legacy container royalty payments resolved. Next deadline Jan. 28th.

Oil (WTI) ends the year at about $92.00, down 6% or so on the year.


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