Weekly Supply Chain Pulse - 10

📰 Supply Chain Pulse | Weekly Edition – October 18, 2024

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

📊 Key Metrics

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

Drewry World Container Index (WCI):

Between last week and this week, the 40ft container shipping rate from Shanghai to New York saw a decline of 2.64% this week, continuing a downward trend that began in late August. This trend signals a potential easing of freight costs in the near term, although global demand conditions remain in flux.

DAT Truckload Freight Rate Index

This week, the DAT reports the national average Van Spot Rate at $2.02 per mile. This rate has remained unchanged for the past 3 weeks. As the holiday season and colder weather approach, we may see a slight uptick in this rate due to increased demand for trucking services.

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. Over the past week, the index decreased by approximately 4.37 points (1.53%), marking the second week of decreases.

KPMG Supply Chain Stability Index

The KPMG Supply Chain Stability Index leverages advanced analytics and extensive data to assess the resilience of supply chains amidst diverse market volatilities such as geopolitical strife and economic fluctuations. High stress levels in the index indicate significant vulnerabilities and potential disruptions in supply chains, necessitating immediate strategic adjustments to mitigate risks. Conversely, low stress levels signify stable operations and effective risk management, allowing companies to focus on optimization and growth. We are still in a very low stress period as far as global supply chains are concerned.

🌍 Global Hot Topic: Competing with the future:
Creating supply chain competitive advantage (Click To Read Article)

Emerging markets are increasingly challenged to sustain manufacturing-led growth as global supply chains evolve. Traditional strategies focused on low-cost labor and basic assembly manufacturing are facing pressure from rising competition, labor cost inflation, and technological advancements in manufacturing. Countries like Vietnam and India have made significant progress by leveraging export-driven growth, trade incentives, and regional partnerships, yet they face competition from other low-cost markets and challenges related to upskilling their workforce. At the same time, countries such as Malaysia and Indonesia are focusing on policies to attract high-value manufacturing investments, while also managing risks associated with labor strikes and geopolitical factors. Without significant investments in automation, skill development, and strategic trade policies, emerging markets risk being squeezed between lower-cost frontier economies and more technologically advanced developed markets.

🇺🇸 US Hot Topic: Supply Chains: Still Vulnerable (Click To Read Article)

The latest McKinsey Global Supply Chain Leader Survey highlights ongoing challenges in global supply chains, with disruptions like geopolitical conflicts, natural disasters, and trade tensions continuing to impact operations. While companies have made strides in resilience-building efforts over the past three years, there are significant gaps in supply chain visibility, talent acquisition, and risk management. The survey found that 90% of supply chain leaders experienced disruptions in 2024, with many companies now scaling back on their resilience efforts. Additionally, issues such as compliance with new regulations and a lack of supply chain risk understanding at the board level further exacerbate vulnerabilities.

Why It Matters:
With disruptions becoming the new normal, companies cannot afford to let supply chain resilience efforts lose momentum. The survey indicates that gaps in visibility and risk management can leave businesses exposed to future supply chain shocks. For companies looking to stay competitive, prioritizing ongoing digitization, expanding regional supply bases, and training digital talent are critical strategies. Ena Source can support businesses in addressing these gaps by helping diversify supply sources and implementing robust risk management practices to ensure continuity and minimize potential disruptions.

📈 Giorge’s Weekly Stock/ETF Pick

$O- Realty Income Corporation is a real estate investment trust (REIT) that owns and manages over 6,500 properties across the U.S. and Europe, primarily leased to commercial tenants under long-term agreements. Known for its dependable monthly dividend payouts, the company appeals to investors seeking stable income, with a current dividend yield of approximately 5% and YTD growth of 11.49%.

• 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 and operational efficiency. With no upfront costs and a commitment to delivering measurable savings, Ena Source is your trusted partner in turning supply chain challenges into growth opportunities.

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