Monthly Supply Chain Pulse - 14

📰 Supply Chain Pulse | Monthly Edition – January 3, 2025

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

🎉 Happy New Year! We hope your holiday season was filled with joy, good memories, and time with loved ones. As we step into 2025, we’re excited to bring you fresh insights and updates to help your business thrive in an evolving landscape. Thank you for being part of our journey—let’s make this year one of success, resilience, and new opportunities!

Supply Chain Theme of 2025: Success will be measured by resilience, sustainability, and compliance alongside cost efficiency.

📊 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 jumped 24.9% over the past month. This is typical for this time of year, last years increase from beginning of December to early January saw a 40% increase.

DAT Truckload Freight Rate Index

The national average Van Spot Rate reported by DAT this week is $2.12 per mile, which is a $0.04 per mile increase from the beginning of December. That is a 1.92% increase.

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 4.38% this month, reaching 298.98

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 December, the index stood at -16.40, 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 November, the index rose again to -0.20.

🌍 Global Hot Topic: Disruptions Continue To Worry Procurement Teams (Click To Read Article)

2025 begins with familiar challenges: geopolitical tensions, climate risks, labor unrest, and material shortages are keeping supply chain disruptions at the forefront of business concerns. Reports highlight the need for companies to prioritize supply chain resilience, with 84% of businesses experiencing disruptions in 2024, leading to profit reductions for nearly half of them. Strategies such as nearshoring, reshoring, dual sourcing, and reengineering supply chains are becoming commonplace, with 97% of surveyed leaders planning significant changes in the next two years. The adoption of advanced technologies like AI, big data, and supply chain mapping is also seen as critical to navigating risks and improving visibility. While no single solution can eliminate disruptions, having the right supply chain partner is key to mitigating risks and sustaining growth.

Why It Matters:
As global supply chain risks increase, businesses must focus on resiliency and adaptability to maintain operations and profitability. Ena Source plays a critical role in this landscape by offering tailored solutions that improve supplier diversity, enhance visibility, and create robust sourcing strategies. By leveraging Ena Source’s expertise in navigating shifting trade dynamics, reducing costs, and ensuring consistent supply, businesses can position themselves to thrive despite disruptions. Whether through alternative supplier networks or advanced planning, Ena Source provides the tools and partnerships companies need to secure their supply chains for the future.

🇺🇸 US Hot Topic: Quadrennial Review (Click To Read Article)

The 2021–2024 Quadrennial Supply Chain Review, published by the White House Council on Supply Chain Resilience, was published on December 19. This report provides a comprehensive assessment of the United States' critical supply chains over the past four years. The report highlights significant progress in enhancing supply chain resilience, particularly in response to challenges posed by the COVID-19 pandemic. Key achievements include the reduction of bottlenecks in transportation sectors and a strengthened national security posture by minimizing dependencies on adversarial nations. The review also emphasizes the importance of continued investment in infrastructure, technology, and workforce development to maintain and further improve supply chain robustness. Additionally, it underscores the need for ongoing collaboration with international allies and partners to ensure global supply chain stability.

Key Concerns Highlighted by the U.S. Government:

• Geopolitical Risks: The report identifies the influence of non-market policies and practices by nations like China, which distort markets and aim to dominate key sectors by overwhelming global markets with exports. This poses a significant threat to the stability and fairness of international trade.

• Climate Change: The increasing frequency of extreme weather events due to climate change is recognized as a major disruptor of supply chains. The report calls for the fortification of infrastructure and transportation systems to withstand these challenges and recommends considering climate threats when diversifying supply bases.

• Infrastructure and Transportation: Aging infrastructure and transportation systems are highlighted as vulnerabilities that need addressing to ensure the smooth operation of supply chains. Investments in modernizing these systems are deemed crucial for future resilience.

• Workforce Development: The necessity for a skilled workforce is emphasized, with recommendations for education and workforce reforms to strengthen the domestic industrial base for critical goods and services.

• Economic Disparities: The report advocates for policies that support small businesses, family-owned farming operations, and economically distressed areas to promote equitable economic growth and reduce monopolization within supply chains.

Addressing these concerns is vital for enhancing the resilience, security, and sustainability of America's supply chains, ensuring we can withstand future challenges and continue to support the nation's economic and national security.

📈 Giorge’s Stock/ETF Pick

$KTOS- Kratos Defense & Security Solutions is a leading provider of advanced defense and aerospace systems, specializing in unmanned systems, satellite communications, and national security technologies. With increased global focus on defense spending and emerging technologies like drones and space systems, Kratos is well-positioned for growth heading into 2025. Its focus on innovation and contracts with the U.S. Department of Defense make it a strong contender in the evolving defense sector.

• 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. At Ena Source, we help small and mid-sized businesses navigate the challenges of today’s supply chain landscape. From reducing costs to improving cash flow and enhancing operational efficiency, our tailored solutions empower you to focus on growth while we handle the complexities of supply chain management.

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

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