Walmart announced that it would be pushing back against suppliers’ efforts to raise prices, per the Wall Street Journal. The retailer added that more innovative products would win more orders.
LOGISTICS
Ocean rates continued to decline this week, though some carriers expect rates to stabilize in the coming months once inventories reset and as carriers remove more capacity, per Freightos.
Hapag-Lloyd’s CEO speculated that rates could continue to fall as demand for freight has decreased both from slipping consumer demand and from inventory build ups for many importers who placed larger orders earlier in the year to avoid delays and shortages.
Asia to US rates continue to fall for all gateways, nearing rate levels seen pre-pandemic, per Flexport.
On Asia to Europe routes demand remains slow through the first half of November and rates are further declining, per Flexport.
Air cargo volumes declined 8% year on year in October – the eighth consecutive month of decline. A further softening of demand is likely, per Xeneta data.
MATERIALS SOURCING
A Consistent Supply of Quality, Sustainable Yarn – Guaranteed!
One of the keys to having stable production is having your raw materials on hand.
To ensure that they are always able to produce and deliver their products on time, S.R. Spinning Co. Ltd. keeps a sizable inventory of cotton on hand. It’s a huge financial commitment for the company, however it provides customers with reliable production. Read More
SUPPLY CHAINS
The Tide Could Be Turning for Fast Fashion
Already we see factories breaking from tradition and turning away orders where the price is too low and/or the risk of getting paid is too high (regardless of how badly they want the business).
This could put more pressure on fast fashion, where the business model is based on big volumes at rock bottom prices.
As consumers look to stretch their budgets further, an increasing number are not only buying less, but are looking for apparel that is more durable.
>> For a snapshot view of key developments in Asia sourcing – see our INSIDE SOURCING November report. Read more
PODCAST
The Digitization of Professional Advice
Both large and smaller enterprises are being increasingly challenged to squeeze every bit of inefficiency and redundancy out of commonly performed tasks to reduce costs, save time – and ideally minimize errors.
If you were wondering how consulting services could be digitized then stay tuned because Stefan Debois, CEO & Founder of Pointerpro, will be sharing how to digitize your consulting services to deliver advice to customers and clients at scale.
You’ll Learn:
- How to digitize a highly customized business like consulting or other advisory services.
- How consultants need to rethink the consultant-client dynamic.
- Why it’s better to base consulting contracts on outcomes or results rather than on hours worked.
- The most effective strategies and tactics for successfully bootstrapping a business.
NEW FACILITIES
Amann Group’s (Germany) new facility in India will see all construction and plant installations completed by the summer of 2023, while the first deliveries of industrial sewing threads to customers will commence in the third quarter of 2023. Read more
ENERGY
At the recent G20 Summit, a coalition of sovereign nations and private companies led by the US and Japan has agreed to fund a $20 billion initiative to help Indonesia phase out its reliance on coal.
MARKETS
Real wages in the UK fell again in the face of the highest inflation for 40 years as unemployment remained around its lowest level in decades.
Japan’s economy shrank at an annualized 1.2% in Q3, for the first time in four quarters.
“The company has too many employees and the cost per employee is too high.” – Sir Christopher Hohn, founder of hedge fund TCI (UK), referring to staffing at Alphabet (US) companies Google and YouTube.
MATERIALS
Cotton futures continued to inch up, but prices remained about 50% down from their May peak.
Oil prices fell to a 3-week low on mixed indicators of supply and demand.
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