Supply Chain by the Numbers

- July 11, 2012

  Supply Chain by the Numbers for Week of July 11, 2012

US Manufacturing Winning Streak Ends; China Improves its Fortune (500); Airbus Flying with Outsourcing; Procurement Chiefs Making Goods Money



Number of consecutive months the US Purchasing Managers Index had been above the 50 mark that separates expansion from contraction... until the June number, which was released last week by ISM. The index came in just under 50, at 49.7, providing more evidence of a US and global economic slowdown. More worrisome: new orders fell off the cliff from 60.1 to 47.8, which is also the first sub-50 reading since the recovery, suggesting quite a sharp reversal from expansion to contraction.




Amount of the components/ assemblies that Europe's Airbus is outsourcing to suppliers for its new A350 aircraft, up from about 25-30% for its previous planes. That even as Boeing recently delivered its Dreamliner 787 aircraft more than three years late after snafus with a similar outsourcing program. But Airbus is pursuing a hybrid approach that involves outsourcing but with much tighter controls over suppliers. "We've got to know more about our aircraft than our suppliers do," an Airbus executive said this week in the Wall Street Journal.


Average compensation last year for Chief Purchasing/Procurement Officers, according to the recently released 2012 salary study from the Institute for Supply Management (ISM). Interestingly, women CPOs averaged more than $387,000, while men came in at $252,000. Our guess there: since there are far fewer women CPOs, they are in greater demand than men. "Manager" level purchasing employees came in with an average salary of $102,000. See Purchasing and Procurement Professionals - How Does Your Salary Measure Up?


Number of Chinese companies on the just released Fortune 500 list of the largest global corporations by revenue. That moves it into second place among nations for the first time, surpassing former number 2 Japan, which came in at 68. That comes two years after China eclipsed Japan as the world's second-largest economy. There were 12 Chinese companies added to the list this year. The US was still number 1 with 132, but that is down from 197 ten years ago. The top 10, dominated by oil companies: (1) Royal Dutch Shell; (2) ExxonMobil (US); (3) Wal-Mart Stores (US); (4) Britain's BP; Chinese companies (5) Sinopec Group, (6) China National Petroleum and (7) State Grid; (8) Chevron (US); (9) ConocoPhillips (US) and (10) Japan's Toyota Motors.