Monthly Supply Chain Pulse - 13

📰 Supply Chain Pulse | Monthly Edition – December 6, 2024

Your Go-To Source for Supply Chain Insights, Trends, and Actionable Advice

We hope you had an amazing Thanksgiving and enjoyed some quality time with your loved ones!

You might have noticed we’ve been a little quiet lately—that’s because we’ve decided to switch things up and move from weekly to monthly newsletters. This change will let us focus on delivering more meaningful updates and information that resonates better with you. Don’t worry, the format will still feel familiar!

We’re excited about this change and can’t wait to keep bringing you useful insight, just with a bit more thoughtfulness behind each one. Thanks for sticking with us!

📊 Key Metrics

Staying competitive means keeping an eye on the data that matters most. Here are six supply chain metrics that we monitor and will provide updates on within each newsletter.

Drewry World Container Index (WCI):

The 40ft container shipping rate from Shanghai to New York dropped 1.55% over the past month and has remained stable since late October.

DAT Truckload Freight Rate Index

The national average Van Spot Rate reported by DAT this week is $2.08 per mile, which is a $0.07 per mile increase from the reports at the beginning of November. That is a 3.48% increase. This increase aligns with typical seasonal trends as the holiday season ramps up and weather conditions worsen.

Commodity Research Bureau (CRB) Index

The CRB index measures a basket of 19 commodities including energy, agriculture, and metals. It’s widely considered a leading indicator of inflation, economic health, and overall cost trends for goods across the market. An increase tends to signify an increase in economic activity while a decrease tends to signify a slowdown in economic activity. The index rose 0.98% this month, reaching 286.43. It’s encouraging to see this metric holding steady.

Philadelphia Fed Manufacturing Index

To create this index, the Federal Reserve Bank of Philadelphia surveys around 250 manufacturers, asking about factors like employment, working hours, new and unfilled orders, shipments, inventory levels, delivery times, prices, costs, and business forecasts for the next six months.

An index level above zero signifies improving conditions, while a level below zero indicates worsening conditions. In November, the index stood at -5.50, indicating a forecasted decline in manufacturing activities. Read more here.

Purchasing Managers Index (PMI)

The PMI is an economic indicator derived from monthly surveys of private sector companies, measuring the performance of the manufacturing and services sectors. It covers metrics such as new orders, inventory levels, production, supplier deliveries, and employment. A PMI above 50 indicates expansion, while below 50 suggests contraction. Keeping track of PMI data can help business owners anticipate changes in economic activity, demand for products, and supply chain conditions.

Global Supply Chain Volatility Index (GSCPI)

The GEP Global Supply Chain Volatility Index tracks global supply chain conditions by measuring factors such as demand, shortages, transportation costs, inventories, and backlogs. A positive value indicates stretched capacity and higher volatility, while a negative value shows underutilization and reduced volatility. In October, the index rose slightly to -0.39, breaking the 4-month decreasing streak. This increase is attributed to stockpiling due to supply or price concerns. Tracking this index enables businesses to anticipate disruptions and make informed decisions to maintain efficiency and minimize risks.

🌍 Global Hot Topic: Supply Chain Management in 2025 (Click To Read Article)

Supply chain management is set for transformative changes in 2025, driven by advancements in technology, global shifts, and a growing focus on sustainability. Key trends include the rise of AI and automation, enabling greater efficiency and real-time decision-making, and the continued integration of data analytics to improve agility and responsiveness.

Companies will face increasing pressure to meet ESG standards by adopting greener logistics and ethical sourcing practices, while cybersecurity and digital twins will become vital tools for mitigating risks and optimizing supply chain performance. Workforce development will be critical, as demand grows for skills in AI, data analytics, and cloud-based tools.

Additionally, reshoring and nearshoring will help businesses reduce lead times and improve supply chain resilience, while remote work will expand its role in optimizing global supply chain operations through digital tools and platforms. To succeed, companies must prioritize technological adoption, risk management, and sustainable practices to stay competitive in the evolving landscape.

🇺🇸 US Hot Topic: Trump Ups The Ante On Tariffs (Click To Read Article)

President-elect Donald Trump has announced plans to impose massive tariffs on goods from Mexico, Canada, and China starting on his first day in office. The tariffs include a 25% levy on all goods from Mexico and Canada, citing concerns over immigration, crime, and drugs, and an additional 10% tariff on Chinese goods to counter alleged failures to curb drug exports, specifically fentanyl. These measures could drastically increase costs for American businesses and consumers, raising tax burdens by an estimated $272 billion annually, while potentially stifling economic growth.

Countries like Canada, Mexico, and China have warned that retaliatory tariffs could disrupt supply chains and shared industries, further intensifying trade tensions. The move also threatens to inflate consumer prices, with essential imports like oil, cars, electronics, and machinery directly impacted. Although some believe gradual implementation could mitigate inflationary risks, economists warn these tariffs could ignite trade wars and weaken U.S. manufacturing competitiveness abroad.

Why It Matters:
Proposed tariffs of this magnitude could have significant consequences for businesses reliant on global supply chains, causing higher costs, supply disruptions, and strained trade relationships. For companies navigating these challenges, Ena Source is uniquely positioned to help build resilient, cost-effective supply chains by leveraging our expertise in strategic sourcing and supplier diversification. Whether identifying domestic or alternative global suppliers, Ena Source ensures businesses maintain steady operations while mitigating risks. By focusing on efficiency and flexibility, we empower companies to adapt and thrive in an uncertain landscape.

📈 Giorge’s Weekly Stock/ETF Pick

$TSLA- Tesla’s strong position in the EV market, coupled with President-elect Trump’s close relationship with Elon Musk, positions this stock for potential growth in the coming years. As Tesla continues to innovate and expand its production capacity, it remains a promising investment.

• As always, it’s not about timing the market, it’s about time in the market

• Disclaimer: This is not financial advice or a recommendation for any investment. The content is for information purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

🚀 Why You Should Consider Ena Source

In today’s rapidly changing supply chain landscape, staying ahead is all about having the right partners. Ena Source specializes in helping small and mid-sized businesses navigate supply chain disruptions, find reliable suppliers, and implement strategic sourcing that drives cost savings, improves cash flow, and enhances operational efficiency. With a commitment to delivering measurable results and no upfront costs, Ena Source is your trusted partner for turning supply chain challenges into growth opportunities.

Ready to enhance your supply chain? — Reach out to us today!

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