What Is Going On Here? The supply chain overhaul needed at Kraft Heinz will take years, said CEO Miguel Patricio Thursday on his third earnings call in the position. In the fourth quarter, the company achieved its first net reduction of U.S. supply chain costs in two years, though other detractors kept the savings from…
Ep 7: Searches for suppliers outside China double as coronavirus spreads
What Is Going On Here? Shippers are seeking alternative suppliers outside of China to make up for delays resulting from the continued production standstill in China’s Hubei province caused by the COVID-19 outbreak, according to Freightos. “The share of searches for countries other than China has climbed to more than 17% so far this month,…
Ep 6: Inaccurate maps cost logistics companies $6B
What Is Going On Here? Imperfect directions, incomplete maps, parking problems and missed delivery windows are costing delivery companies an estimated $6 billion a year, according to a new report by Swedish startup Mapillary. The estimate includes $2.5 billion in wasted salary and $611 million in extra miles driven annually because of inaccurate maps. The report surveyed 219 U.S….
Ep 5: China to slash tariffs by 50% on $75B of US imports
What Is Going On Here? China will cut tariffs in half on $75 billion worth of imports from the U.S., according to a translation of a statement from China’s Ministry of Finance. The changes will take effect Feb. 14. The move follows the Trump administration’s announcement during the signing of a phase one trade deal to reduce the…
Ep 4: How manufacturers are preparing for the next recession
What Is Going On Here? Manufacturing CFOs are more skeptical than economists that a recession will hit in 2020, according to a survey by BDO in which 20% of manufacturing CFO respondents believed a recession would happen this year. A 2019 survey by the National Association for Business Economists found 45% of economists believed a recession would…
Ep3: Supply chains plan for coronavirus disruption
What Is Going On Here? Companies that rely on manufacturing from facilities in Wuhan, China, are considering alternative suppliers as facilities in the region face potential production delays. The number of coronavirus cases has exceeded 4,500 and the region has implemented a quarantine limiting travel in and out of the industrial hub. “We do have…
Ep 2: H&M operations, sustainability leader will be next CEO
What Is Going On Here? H&M COO Helena Helmersson will take over as CEO of the apparel retail group when Karl-Johan Persson moves up to Chairman of the Board on May 7, the company announced Thursday. Before becoming COO in September 2018, Helmersson managed the company’s sustainable supply chain efforts, eventually rising to Head of Sustainability…
Ep 1: Maersk, CMA CGM blank sailings as coronavirus spreads
What Is Going On Here? Maersk and CMA CGM announced blank sailings Friday as the container lines see curtailed demand due to the coronavirus outbreak in China and the extension of the Lunar New Year holiday. The two carriers said operations at terminals, warehouses, depots and offices in China, with the exception of Wuhan, continue uninterrupted. Not all…
About SCM 101
“Only those who risk going too far can possibly find out how far one can go. …” Hello guys, I am Hieu. I am currently living in Hanoi, Vietnam. This blog would be a place where I: summarize news that I read from newspapers; give my point of views on economics related topics; review some…
SCM 101 