Supply Chain by the Numbers: August 21, 2008

Supply Chain by the Numbers

-August 21, 2008

The Numbers Worth Knowing this Week in Supply Chain and Logistics

This Week: Another Day, Another Price Increase; NAM President Says "Not so Fast;" Reverse Logistics Management Increases Profits; Generating Supply Chain Cost Savings at Chrysler



27
The number of years ago that the US Producer Price Index has risen as much as it has in the past 12 months, up an incredible 9.1%, as rising commodity and energy costs increasingly drive price increases at manufacturers.

25%

The US share of global manufacturing output in 2008, according to National Association of Manufacturers (NAM) president John Engler, well above the 17% figure estimated by researchers at Global Insight in predicting China would overtake the US in manufacturing output in 2009. NAM says the switch won’t happen until 2020 at the earliest, and possibly much later.


.3%
The percentage of annual sales a company can gain from better management of reverse logistics processes, according to a recent study by KPMG. For a $1 billion company, that’s a $3 million increase in profit per year.




25%
The amount of supply chain cost Chrysler procurement chief John Campi says the company plans to take out in the next three years, and not just through further beating down hard-pressed parts suppliers. The savings must come from reducing complexity and the number of parts used, and achieving more stable production schedules.