Supply Chain by the Numbers: May 8, 2008

Supply Chain by the Numbers

-May 8, 2008

The Numbers Worth Knowing this Week in Supply Chain and Logistics

This Week: Effectively Zero Risk Management; GM on the Receiving End; Step Out of the Vehicle and Show me Your "TWIC"; Analyst Predicts Future Oil Prices will Keep Consumers Over a Barrel



0%
The percent of risk managers, in a recent survey performed by insurance giant Marsh, who said their companies are “highly effective” at managing supply chain risk.

8800

The astounding number of inbound truckloads received every day by GM globally.


1.2 million
The number of drayage drivers, port workers and other personnel in the US who will ultimately be required to obtain Transportation Worker Identification Credentials (TWIC), under legislation passed in 2002 and which moved towards adoption in the field last year. This week, the Homeland Security Department delayed the TWIC requirements for some areas of the country. Many fear TWIC will reduce the already strained driver pool by double digit percentages, hitting the many illegals believed to be driving trucks from the ports currently.




$150-200
The price of oil per barrel that is likely by sometime in 2009, under one of two scenarios envisioned in a report this week from Goldman Sachs analyst Arjun Murti. In bad news for logistics costs, he sees either a continued gradual rise in prices, or a “super spike” towards $200 – the scenario he views as more likely. Eventually, either scenario will result in reduced demand and then a price pullback, he believes, but with prices remaining at high levels versus even just a couple of years ago. This is the same analyst who in 2006 correctly predicted $100 oil.