Supply Chain by the Numbers for Week of May 15, 2014

Supply Chain by the Numbers

- May 15, 2014 -

More Anecdotal Evidence of the Return of Made in America; JDA CEO Pushed Out after Long Run; More than Half of Large US Companies have Code of Conduct for Suppliers; FMCSA Proposes Steep Fines for Driver "Coercion"



80%
Share of its manufacturing that Los Angeles apparel maker Karen Kane has returned to the US in recent years, after having previously moved 100% of it to China. That according to an article this week in the Los Angeles Times. Why the switch? "Now prices are escalating, quality is dropping and deliveries are being delayed," in China sourcing, says company president Lonnie Kane. He added the company used to only need to spot check 10% of receipts for quality; now, it has to inspect 100% of Chinese made goods. With the total cost gap shrinking and greater market responsiveness from domestic sourcing, Made in America looks increasingly attractive.

58%

The share of about 610 large public US companies that now have a supplier code of conduct, according to new research from Ceres, a non-profit environmental advocacy group, in partnership with, Sustainalytics, an environmental research firm. That is up from 43% in a similar analysis that was done in 2012. Additionally, 47% of companies consider environmental and/or social criteria in procurement, up just a smidgen from the 46% level seen in 2012. About one-third of companies directly engage suppliers on sustainability performance issues, up from 27% in 2012. The report in general finds there is clear progress in corporate sustainability efforts, but that progress is slow.



11
Number of years that Hamish Brewer had been CEO of JDA Software - until its private equity owner New Mountain Capital decided this week that a change was needed at the top. There was a need to "accelerate the strategy" the company had developed at the end of 2013, said New Mountain's Bal Dail, who takes over as interim CEO while a search for a permanent CEO is underway. Under Brewer's tenure, JDA was transformed from a company focused on merchandising and POS systems for retail to the largest supply chain software company in the market, after acquisitions of Manugistics and i2, and then a merger with RedPrairie (which was owned by New Mountain), which took the company back to private status. Brewer had a good run - life at the top is rewarding but perilous. See Hamish Brewer Out as JDA CEO.




$11,000
Proposed fine per incident for US truck carriers, brokers or private fleets for "coercion" of a driver to force him or her to break existing laws or regulations, such as skirting Hours of Service rules, according to new regulations proposed this week by the Federal Motor Carrier Safety Administration (FMCSA). Drivers have complained that they have been pushed to work past the limits of the HOS rules or to drive trucks that have mechanical problems. "The consequences of their refusal to continue working are either stated explicitly or implied in unmistakable terms: loss of a job, denial of subsequent loads, reduced payment, denied access to the best trips," the agency said.