Supply Chain by the Numbers

-October 30, 2007


The Numbers Worth Knowing this Week in Supply Chain and Logistics

  This Week: On the Gravy Train; China's Government May be Willing to Curb Inflation, but the Dollar is Weak; Intel Improves Distribution Throughput Using Theory of Constraint; The Best Things in Life Are Free  


Q3 profit increase seen by rail carrier Burlington Northern Santa Fe, as the company cited improved pricing power with shippers and its own productivity gains as keys to the better bottom line.


The annualized inflation rate in China in September, after a 6.5% rise in August. While the Chinese government has promised action to reduce inflationary trends, China’s strong inflation numbers plus the weakening US dollar are likely to make the costs of sourcing products from China considerably more expensive over the next few years.


The reduction in order cycle time Intel experienced in its distribution centers by using Theory of Constraint principles to maximize total fulfillment flow (see Logistics News: Using Theory of Constraints to Improve Distribution Throughput at Intel)


The percentage of retailers that claim they will be offering free shipping with no conditions this holiday season - according to a survey conducted for, an arm of the National Retail Federation.  This is a 5.4% increase over last year’s figure of 36%. Those offering free shipping with some sort of conditions declined to 78.6 percent from 82.7 percent a year ago.

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