Supply Chain by the Numbers

-July 31, 2008


The Numbers Worth Knowing this Week in Supply Chain and Logistics


This Week: Study Reveals Concentrated Procurement Spend; Soaring Supplier Costs Leads to Costco Profit Warning; Drop in Gasoline Consumption Results in Less Funding for Highway Trust Fund; Climate Change Issues Not Really Factored in Purchasing and Supply Management Decisions



The percent of suppliers, on average, that now account for 80% of total procurement spend in the 200 companies surveyed for the recent CAPS Research/Institute for Supply Management annual procurement benchmark study.




The rise in prices from suppliers in the areas of paper products, packaged food, meat and grain-based products  that retailer Costco said last week it had recently seen, leading a profit warning and a 12% drop in its stock price. Costco said it can’t raise shelf prices fast enough to keep pace with supplier price increases.

$3 billion

The reduction in funding for the Highway Trust Fund for the next year resulting from reduced gasoline usage – and hence lower federal tax revenues – as consumers and business reduce consumption in the face of spiraling fuel prices. The trust fund finances highway and transportation infrastructure improvements, some of which are now threatened.




The number of companies in a recent McKinsey survey that said they “Always or Frequently” considered climate change issues in Purchasing and Supply Management decisions. The survey highlighted the fact that real company action on the Green supply chain has lagged the rhetoric.

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