Supply Chain by the Numbers: January 21, 2008

Supply Chain by the Numbers

-January 21, 2008

The Numbers Worth Knowing this Week in Supply Chain and Logistics

This Week: Slashing Labor Costs at GM; Slow Retail Sales Growth Expected; Fuel Taxes - Inevitable and Profitable; SkySails Expected to Trim Shipping Costs



5 billion
The additional amount of US hourly labor costs GM CEO Rick Wagoner said the automaker wants to eliminate over the next three years, taking out nearly half of the company’s $10.1 billion hourly costs, including benefits and paying idle workers, it incurred in 2007.

3.5

The percent growth in US retail sales predicted for 2008 by the National Retail Federation (NRF) at its annual conference last week. The group’s economist expect a slow first half of the year, with a pick up in consumer spending in the second half. The number does not include sales of automobiles, gas stations and restaurants.


$1.9 billion
The amount of revenue generated for each one cent increase in the federal fuel tax. A recent report by The National Surface Transportation Policy and Revenue Study Commission issued calls last week for an increase in federal consumer fuel taxes of 40 cents per gallon over the next five years, and perhaps even higher increases for diesel fuel.




10-20%
The average fuel savings expected from the MV Beluga SkySails as it becomes the first modern cargo ship to set sail on a journey across the Atlantic Ocean. Verena Franks, spokeswoman for German cargo-shipper Beluga Group said the sail system, which costs around $730,000, should pay for itself within three to five years.