Supply Chain by the Numbers: March 20, 2008

Supply Chain by the Numbers

-March 20, 2008

The Numbers Worth Knowing this Week in Supply Chain and Logistics

This Week: TMS Implementation Equals Savings; Chicken Feed at Pilgrim's Pride No Longer Just Chicken Feed; Inflation in China Balloons More than its Inflatable Toys; RFID means Reduction in Frequent Inventory Deficiency in Wal-Mart Test



8%
The average savings in freight spend achieved by companies implementing Transportation Management Systems (TMS), according to a recent study released by Forrester research.

1.3 billion

The rise in feed costs over the past two years for meat processor Pilgrim’s Pride, as the cost of corn and soybeans has skyrocketed during this period of “Agflation.” That’s a big number for a company with 2007 sales of $7.6 billion. The company announced plans to close one processing plant and 6 of its 13 distribution centers as a result of the cost pressure.


8.7%
The rise in February in China’s consumer price index, as rampant inflation becomes a threat to the economy there, and is causing the price of imports from China to rise rapidly.




13%
The percent reduction in “undercounted inventory” at store level as a result of case-level RFID tracking, according to a study by the University of Arkansas. The test was conducted by the university's RFID Research Center at 16 Wal-Mart stores, including eight control stores where inventory was managed by traditional methods, and eight test stores where RFID systems tracked product in the back room.