October 2023
Supply Chain News to Know

OCTOBER 2023

News To Know

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It’s spooky season, but ghosts and ghouls aren’t what’s keeping supply chain leaders up at night (we hope). Persistent inflation and geopolitical conflicts are the real terrors. Let’s dive in.

The Lead: Awash in Data

Reporting on a survey of 500 supply chain leaders conducted by YouGov in partnership with FourKites, DC Velocity highlights that fewer than half are leveraging their supply chain data to inform their strategy, while 14% aren’t using supply chain data at all to make decisions.

A major reason for that shortfall is that 48% of respondents say their supply chain digitization is sub-par, and 43% say they have no single source of truth for their data. However, those same companies are working toward change; most respondents (72%) recognize the importance of connecting disparate supply chain data, and nearly half (42%) plan to invest in technology to de-risk their supply chains over the next six to 12 months.

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Two-thirds of responding companies are using supply chain data only for simple, day-to-day tasks — many have yet to realize the opportunity to look at their supply chain end-to-end to make informed, strategic decisions. At the root of this issue is the ongoing struggle to fully digitize the supply chain and have a single source of data.”
— FourKites Chief Strategy Officer Fabrizio Brasca

In View

Peak shipping season is feeling less like a surge and more like a speed bump for many manufacturers. But with a slowdown comes opportunity. FourKites’ VP of Industry Strategy, Tom Gregorchik, shares best practices to help manufacturers minimize the cost to serve and preserve margins.

Why the slow peak season? A persistent inventory glut could be partly to blame. Gene Seroka, executive director of the Port of Los Angeles, told Bloomberg, “All the vital statistics I look at based on velocity of ships, based on cargo movement, seem to be in really good shape. But there’s still a lot of inventory throughout the United States,” citing government data showing businesses’ inventory-to-sales ratio is still hovering near 1.4.

Logistics Viewpoints’ Steve Banker sat down with FourKites founder and CEO Matt Elenjickal to discuss why the true value of a real-time visibility solution lies not just in visibility, but in real-time decision-making. “Being able to provide deeper forms of visibility has expanded from just cost reduction to what many CEOs find much more valuable, increased revenue.”

Numbers to Know

Home & Electronics Shipments Slow after Strong July

While spending on goods has been mostly flat year over year, there are slight nuances across each category. According to FourKites data, the home and electronics sector has seen 2023 (Jan. 1 - Sept. 30) over-the-road (OTR) shipment volume in North America increase by 2%, while grocery has seen OTR volumes decline by 2% and big box and apparel decline by 1%.

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Words of Wisdom

Supply chain sustainability is an ongoing journey, not a destination. By focusing on reducing waste in key areas like dwell time, backhauls and facilities, you can make a significant impact. Remember that the optimization process should be data-driven, and human insights from customers, employees and partners are invaluable. Keep an open mind, measure, iterate and evolve.

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TODD SIMMS
VP OF INDUSTRY STRATEGY

ICYMI

Around 200 million people around the world take Teva medicine every day. And with the help of FourKites, Teva has achieved a 0.005% incident rate by leveraging real-time, high-quality temperature and theft data. Read the press release for more details.
From market dynamics and consumer demand fluctuations to the rapid advancements in technology, manufacturers must navigate more variables than ever to ensure efficiency and responsiveness in their supply chains. Amidst this backdrop of relentless change and complexity, Tom Gregorchik, Vice President of Industry Strategy at FourKites, shares his thoughts on the global supply chain’s current state and future trajectory.
FourKites’ seasoned experts have curated the top-10 questions they’ve been asked based on thousands of conversations with manufacturing supply chain professionals. Check out the on-demand webinar to learn exactly how data is collected, how it can be used for more than just track-and-trace, and how else real-time visibility can unlock value for your business.