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Supply
Chain by the Numbers |
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- March 28, 2024
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US Oil Production Surges; Manhattan Congestion Pricing; Court Rules Amazon Flex Drivers are Employees; Kimberly-Clark and Supply Chain Modernization |
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13.3 Million |
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| That was the average number of barrels of oil per day pumped in November in the US, an all-time record, not just in the US but by any nation ever. That according to an article this week by the UK’s The Telegraph newspaper’s web site. Oil output fell a little in December, the last month with data available from The US Energy Information Administration (EIA), but that was still the second highest output ever.The Telegraph article says it is likely that a new record was set in at least one month in Q1. What is going on? Continued decently high oil prices, combined with the ability to increase per-well performance through the application of more effective processes and advancing technologies. |
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That’s what it will soon cost trucks using the E-ZPass system to enter a “congestion relief zone” in Manhattan below 60th Street, and up to $9 at night. That after New York City’s Metropolitan Transportation Authority (MTA) this week approved the nation’s first congestion- pricing plan, which could begin as soon as mid-June. Car drivers will also pay, at $15 for entering the borough south of 60th Street during peak times and $3.75 at night. This of course after both cars and trucks have paid to use bridges and tunnels to enter Manhattan anywhere. But tunnel users will receive discounts during peak times to help lower the impact of the new congestion fee. Given all that, the program has opposition and faces several court challenges that could block or delay its implementation. Will other cities make similar moves? |
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$3 Billon |
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| That is how much in “gross productivity gains” consumer products giant Kimberly-Clark expects to realize from a major new supply chain modernization initiative, the company announced last week. It also expects to avoid $500 million in capital savings from the moves. Kimberly-Clark says accelerated innovation is a core tenet of its transformation. To achieve this, the company plans to invest in analytics and technology that it expects to generate the savings. With data analytics better integrated with its supply chain, Kimberly-Clark said it expects greater visibility, and faster, more adaptable processes. The restructuring, which also includes reorganizing into three main business units, will cost about $1.5 billion with the transition finalized by the end of the year, expected to immediately generate $200 million in cost savings. |
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That is how much Amazon Logistics will have to pay to the state of Wisconsin after the Supreme Court there refused to hear a case in which a lower court ruled delivery drivers for Amazon were employees, not independent contractors as Amazon contended. The ruling was related to drivers in the Amazon Flex program, which involves independent drivers in gig-style positions who use an app to pick-up and deliver parcels using their own cars. The big tax bill for Amazon will come from back charges for state’s unemployment insurance system, with the drivers now entitled to jobless pay if they are laid off. While the scope of the decision is narrow, it could have a big impact on similar claims from other workers in the state and even nationally.
