Supply Chain by the Numbers

-May 14 , 2010


This Week’s Supply Chain by the Numbers for May 14, 2010


P&G Suppliers Required To Get Green Data Together; INX Blames Cisco For Decline In Q4 Revenues; Maersk's Slow Down Saves Fuel While increasing Lead Times; Kellogg's AGVs Generate Three-Year Payback



Number of months suppliers will have to get their data together for a new Green supply chain scorecard that Procter & Gamble is rolling out to its supply base “before the rating can adversely impact their supplier rating with P&G,” according to a P&G executive this week.




The decline in Q4 revenues for computer systems reseller INX, a publicly traded company, a fall that INX largely blamed on “unanticipated product availability issues from our key manufacturer supplier, Cisco Systems Inc.,” as further news emerged this week that Cisco has suffered some real supply chain challenges over the past year. This week at is channel conference, Cisco CEO John Chambers said the company “had misread” the situation.


The approximate reduction in bunker fuel consumption if a large cargo ship reduces its speed by 25%, from 24 to 18 knots across the ocean. Carriers are still pushing this “slow steaming” approach even as volumes start to recover, using in part a Green supply chain angle to support the move. Importers and exporters need to really consider the impact of these longer lead times on their supply chains.


Number of automated guided vehicles (AGVs) that The Kellogg Company has is implemented in its four cereal plant warehouses over the past few years, according to a presentation this week at the RedPrairie user conference. Those AGVs perform virtually 100% of the unit load moves from palletizers to storage and then picking those loads and delivering them to staging, generating a three-year payback. (See Kellogg's Sees Many Advantages to AGVs in Distribution, but Says Getting Operation Right Takes Forethought and On-Going Effort.