ISM reports steady manufacturing growth in March

Manufacturing activity remains on very strong footing, according to data released by the Institute for Supply Management (ISM).

In its March Manufacturing Report on Business, the ISM reported that the index it uses to measure the manufacturing sector—known as the PMI—was 61.2 percent, a 0.2 percent decline from February’s 61.4. February matched the highest PMI level since May 2004.

Any reading 50 or higher represents economic growth, and March is the 22nd consecutive month economic growth has occurred, according to the report. But the 0.2 percent decline snaps a seventh straight month of month-over-month manufacturing growth.

“The remarkable thing is we have averaged over 60 for the entire first quarter, which indicates a strong amount of momentum,” said Ore. “The first quarter is usually not this strong. It is a very strong performance. If the rest of the economy was behaving like manufacturing, things would be very strong right now, especially in terms of job creation.

On the Employment front, even though March fell 1.5 percent, Ore explained that manufacturers are very willing to hire now where there is a need for it.

“They are filling lots of positions for supply chain jobs, which are picking up dramatically,” he said. “Some of those positions were cut back during the recession and are now being replaced.”

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

Careers in Management

The Seidman School of Business’s Management Department and Career Services at Grand Valley State University (GVSU) along with the student chapters of APICS and SHRM, hosted a careers in management event to encourage

GVSU students to meet and learn more on careers from business professionals in the areas of Supply Chain Management, Logistics, and Human Resource Management. 

Supply Chain Solutions as well as other representatives from the west Michigan community were there to discuss the  necessary skills and experiences required to be successful in these exciting fields.

Our solutions team was very impressed by both the turnout and caliber of the students we were meeting as we look forward to recruiting for our summer internships.

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

Logistics Carbon Reduction Scheme



In the UK there is an industry led program to help reducing carbon emissions from road freight called the Logistics Carbon Reduction Scheme (LCRS). The program operates by measuring fuel usage from companies who have signed up to the LCRS. Businesses are asked to provide information on fleet numbers, fuel usage and business activity data. The fuel usage data is converted into carbon dioxide emissions using Government-approved conversion factors.

Supply Cahin Solutions also has a carbon emissions tool called NV.. To learn more go to www.scsolutionsinc.com

Above and Beyond Reward

We would like to congratulate Brent Sandera as precipitant of the Above and Beyond Reward.   Brent was chosen by his co-workers and Supervisor to receive this award for his outstanding dedication to his job and responsibilities. Brent continued to work from home as he through his recovery after major surgery. 

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

Pension Plans Could Push YRC Into Bankruptcy

Troubled carrier negotiating with funds to avoid default on credit agreement

Teamster multi-employer pension plans are seeking a higher interest rate on deferred pension obligations owed by YRC Worldwide, throwing up a potential stumbling block for the troubled trucking giant as it struggles to reorganize.

The action by the pension funds constitutes a "milestone failure" under YRC Worldwide's credit agreement, and was reported as such in the 10-K annual report YRC filed Tuesday with the U.S. Securities and Exchange Commission.

The conflict with its pension plans could lead YRC's creditors to declare the company in default, which would likely drive the carrier into bankruptcy protection.

However, YRC's banking group hasn't indicated they will declare default, and the group's agent has recommended against it "at this time," the company said.

"We are continuing to work with the parties to satisfy" the conditions of the restructuring agreement, the company said in its SEC filing.

 

If YRC's lenders were to declare an event of default, "we anticipate that we would seek protection under the U.S. bankruptcy code," the company said.

 

Regards, 

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand 

 

 

GM Shuts Pickup Factory Due to Japanese Earthquake

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Japan created just in time manufacturing, the method in which parts arrive at the plant just prior to the time they'll be used. It was widely adopted by the auto industry, because it saves money and improves quality. Pre JIT, automakers would keep weeks or months of safety stock sitting in warehouses to make sure the lines kept running in the event of an interruption.

But now you can count JIT as one of the earthquake/tsunami's industrial victims. Here's why:

Plants that rely on Japanese parts are now running out of them. That includes General Motors, which announced a shutdown of its Shreveport, Louisiana assembly plant, where parts made in Japan are critical to the assembly of Chevrolet Colorado and GMC Canyon pickup trucks.

It's sadly ironic that pickup trucks— quintessential American vehicles and big profitmakers for GM—can't be assembled because critical parts are supplied Japan.  Yet sourcing parts in Japan or Asia is not unusual for GM, since it builds vehicles all over the world. More significantly, the parts shortage in Louisiana underlines one of the weaknesses of JIT manufacturing— it's exposure to supply chain risk.  Supply managers in Shreveport are not unmindful of what a natural disaster can do to supply chains; they live in a hurricane zone. Still it's not likely that anyone in GM would have modeled what would happen if a monster earthquake and tidal wave hit critical suppliers half a continent and one ocean removed. Automakers have reduced supply chain risk by bringing vendors' operations right onto car manufacturing sites, or by having them set up shop nearby. It's standard practice at Honda and other Japanese companies. But you can't do that for everything. You just try to manage the risk. This time they couldn't.

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

Japan Supply Disruptions Will Hit China

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News Story

Chinese firms may delay imports of key components

Supply chain disruptions from Japan's earthquake could force Chinese firms to delay imports of key components, especially for digital products, and possibly postpone product launches, the official newspaper of China's commerce ministry said.

The International Business Daily quoted Zhao Jinping, a researcher with China's Development Research Center, as saying the problems could be short-lived because Chinese importers could source replacement parts from South Korea and Taiwan.

The newspaper added that Japan's huge demand for building materials for reconstruction would soon enough provide opportunities for Chinese exporters.

However, independent economists quoted by Reuters warned that the short-term impact could be quite severe in China because of its close trade links with Japan. The economists said this might delay monetary tightening by Beijing, which has been seeking to limit inflation.

"We should see a profound impact on China's exports to Japan in Q2 and a slowdown of exports to the global market due to disruption of integrated supply chains," Isaac Meng, economist with BNP Paribas in Beijing, told Reuters. "It is too early to assess the full impact, but we expect downward pressure on growth in the second quarter, especially exports and industrial production."

Japan is China's biggest source of imports, with a 13 percent share, and China's second-biggest export destination, taking 8 percent of its shipments, according to official data.

China's imports from Japan include crucial high-tech inputs for auto, machinery and electronics production that is exported to other nations.

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

Japan supply chain fears rattle world stock markets

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European stock markets have fallen sharply amid fears that Japan's earthquake may undermine supply chains for global manufacturers.

The German Dax index dropped 5%, led by tech companies and carmakers which rely on Japanese suppliers for crucial parts, before recovering somewhat.

Companies linked to the nuclear energy industry were also badly hurt.

Earlier on Tuesday, the Japanese market plunged again on fears of a meltdown at the Fukushima Daiichi nuclear plant.

There have been reports of a fire and another explosion at the plant.

Japan was hit by a massive earthquake and tsunami on Friday, causing billions of dollars of damage.

The Nikkei 225 shed 10.6% on Tuesday to 8,605, and had been down 14% at one point, registering its biggest two-day drop in 40 years. The broader Topix index fell 9.5%.

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

Wal-Mart Orders $1 Billion in Supply Chain Savings

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Transportation, logistics initiatives will help retailer cut produce, fruit prices

Wal-Mart Stores will use its global transportation and logistics leverage to cut fruit and vegetable prices by $1 billion, the nation's largest grocer said Thursday.

It's part of a broad campaign to make food healthier and less expensive backed by First Lady Michelle Obama, who joined Wal-Mart executives in Washington.

"We can improve how we make and sell food in this country," she said at the event.

Sourcing, packaging and transportation initiatives will help drive costs out of the produce supply chain, said Andrea Thomas, Wal-Mart's senior vice president of sustainability.

"We believe we can save Americans who shop at Wal-Mart approximately $1 billion per year on fresh fruits and vegetables," Thomas said at the D.C. event.

One step toward the goal will be an increase in Wal-Mart's direct relationships with farmers, she said, resulting in more consistent prices and higher income for farmers.

That could mean cutting some ties or changing relations with produce brokers, truckers and other transportation and logistics providers in its supply chain.

This isn't the first time the $405 billion retailer used its purchasing clout to drive down prices or impose sustainability goals and mandates on suppliers.

Wal-Mart's healthier foods plan is similar to its campaign to lower generic drug prices, which the retailer claims has saved consumers $3.4 billion since 2006.

Wal-Mart rolled out its healthier foods initiative in the nation's capital, where it plans to build four stores as part of its strategy to move into more urban markets.

In addition to lowering costs, the cornerstone of its plan is reducing the amount of sodium and sugar and eliminating trans fats in foods Wal-Mart sells.

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand