Weekly Supply Chain Pulse - 1

August 16, 2024 • Estimated Reading Time: 8 minutes

📰 Supply Chain Pulse | Weekly Edition – August 16, 2024

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

👋Welcome

Welcome to the first edition of the Ena Source Supply Chain Pulse! We started this newsletter to provide our clients and partners with brief key updates on the ever-changing world of supply chains as this information will almost certainly have an impact on your life one way or another. As a distributor, Ena Source goes beyond simply supplying products—we’re here to take the burden of supply chain management off your shoulders so you can focus on growing your business.

We work closely with small and medium-sized businesses to ensure their supply chains are resilient, cost-effective, diversified, and secure. Our team handles everything from sourcing high-quality products to managing logistics and mitigating risks, all while ensuring on-time deliveries. We’re more than just another supplier; we’re your partner in building a reliable, efficient, and scalable supply chain.

With this newsletter, we’ll keep you informed of key trends, metrics, and developments that could impact your business to help you stay ahead of the curve. At Ena Source, our mission is simple: to empower your business with secure supply chains that reduce costs and drive growth—so you can stay ahead in an increasingly competitive landscape.

📊 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 each newsletter.

Drewry World Container Index (WCI):

Sea freight rates for 40 foot containers have been on the rise globally. A good shipping route to look at is Shanghai to New York as it is one of the worlds most used route. Since January 2024, we have seen an increase from an average cost of $3,858/container to todays average of $8,764/ container. That is a 127% increase!!!

DAT Truckload Freight Rate Index

This index tracks spot and contract rates for dry van freight across the U.S. The index is updated monthly and gives insight into the average cost per mile for dry van truckloads. DAT also provides a weekly % change value.

The DAT index offers a pulse on trucking costs, which are crucial for understanding overall supply chain expenses. Given that trucking is the backbone of inland freight in the U.S., keeping an eye on these rates helps businesses anticipate changes in logistics costs to adjust accordingly.

Commodity Research Bureau (CRB) Index

This index is a basket of 19 commodities including energy, agriculture, and metals. It’s widely considered a leading indicator of inflation and overall cost trends for goods across the market.

Fluctuations in the CRB Index impact production costs for a wide range of industries, from manufacturing to food production. Monitoring this index helps businesses anticipate price changes in products to adjust their strategies accordingly. If the index is rising, costs across your supply chain are likely to follow, signaling a need for strategic planning.

Philadelphia Fed Manufacturing Index

To create this index, The Federal Reserve Bank of Philadelphia conducts a survey, which covers Pennsylvania, New Jersey, and Delaware. The survey asks about 250 manufacturers to report on factors such as employment, working hours, new and unfilled orders, number of shipments, inventory levels, delivery times, prices, costs, and business forecast for next six months.

A level above zero on the index indicates improving conditions, while below zero indicates worsening conditions. A reading that is stronger than forecast is generally supportive for the USD, while a weaker than forecast reading is generally negative for the USD. The index also plays a role in shaping the monetary policies of the Federal Reserve. Strong or weak manufacturing data can influence the Fed's decisions on interest rates, which directly impact financial markets. Read more here.

This is a really good index to be aware of especially because it covers the region we are located within.

Exports from Southeast Asia have been increasing due to significant shifts in global trade patterns. With rising tariffs and geopolitical tensions between major economies, many businesses are diversifying their supply chains by moving production to Southeast Asia. As a result, countries like Vietnam, Indonesia, and Malaysia are becoming critical players in the global export market, especially in manufacturing and electronics.

Why It Matters: These changes directly impact businesses that rely on global supply chains. For companies looking to mitigate risks and remain competitive, understanding these shifts is crucial. Diversifying suppliers and having a resilient supply chain is more essential than ever. This is where Ena Source can add value. We help companies navigate these complex shifts by connecting them to vetted suppliers in emerging regions, ensuring cost-effective, high-quality, and reliable solutions.

Hurricane Debby, which made landfall as a Category 1 storm last week, caused an estimated $28 billion in damage and economic loss. The storm's impact extended beyond wind damage, primarily due to catastrophic flooding across the Southeast U.S., with rainfall totals exceeding 20 inches in some areas. The economic losses include disrupted logistics, supply chains, and tourism, with businesses facing long-term repercussions. For supply chains, this highlights the need for robust contingency planning and diversified sourcing strategies to navigate natural disasters and avoid severe disruptions.

📈 Giorge’s Weekly Stock/ETF Pick

In my free time, I enjoy researching companies, understanding economic trends, investing in the stock market, and ultimately learning about the best ways for the little guys to invest and get ahead. I thought it would be a fun piece of the newsletter to add a stock/ETF that I am either watching or invested in.

  • $VOO- We’ll start with the foundation, this isn’t a ground breaking pick but an ETF everyone should consider being in as a good foundation. This tracks the performance of the S&P 500 with a relatively low expense ration. Year to date, it has produced 16.7% return!

  • Remember 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.

🚀 Final Thought: 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 new suppliers, and implement strategic sourcing plans that drive 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.

Let’s talk about how we can strengthen your supply chain and keep your business thriving—reach out to us today.