In the June edition of DSC Insights we are still seeing that supply chains are experiencing higher costs due to a strong economy impacting the areas of labor and real estate with tight capacity. While transportation costs are below 2018, holding steady since the beginning of the year, there is concern that transportation costs will rise, though slightly.
Amid warnings from some analysts about a recession in the near future, the Labor Department’s report that employers added 224,000 jobs in June led to optimistic reactions suggesting that the robust hiring eases apprehension about a recession and that the economy might be stronger than some analysts have feared.
Meanwhile, stories in the News section tell us how some companies are addressing the issues of higher supply chain costs:
“Carriers experienced higher costs in the form of wages [in 2018] and passed these on to shippers [spending on logistics up 11.4%], according to a new report from the CSCMP and A.T. Kearney…”
“Warehouse owners are increasingly investing in top-of-the-line warehouse management systems along with cloud-based technology to help their operations run more efficiently…”
“Schneider Electric is on a path to automate the work of up to 150 full-time equivalents in 2019…” “By 2021, Amazon will have 70 aircraft in its fleet, leveraging its own delivery network and decreasing its reliance on third-party carriers…”
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*No guarantee is presented or implied as to the accuracy of specific forecasts, projections or predictive statements contained herein.
