“It’s always easier to yell directions from the backseat than to actually drive the bus — especially during tumultuous times,” said the Morning Consult, referring to this year’s surge in activist investors.
LOGISTICS
Despite the continued decline, freight rates remain well above 2019 levels for both the U.S. (+111%) and Europe (+4.5 times higher), per Freightos.
Indian Subcontinent (ISC) pricing is still holding strong and above pre-covid levels for some key ISC to North America port pairings, per Flexport.
Persistent congestion at European ports has kept Asia to N. Europe rates more than 4.5 times higher than in 2019, per Freightos.
Port workers at the Port of Liverpool (UK) will stage two more weeks of strikes over pay and jobs. Nearly 600 dockworkers will walk out again from October 24 to November 7, per Unite union.
In China, post Golden Week demand and production remain low, per UPS.
A snapshot view of key developments in Asia sourcing – all in our INSIDE SOURCING October report. Read more
FACILITIES
Crystal Group (Hong Kong) has launched the smart warehouse solution in its denim factory in Vietnam. The enhanced facility enables the factory to store 4 million yards of fabrics and 2 million pieces of finished garments in order to cope with the production growth. Read more
MATERIALS SOURCING
People + Technology = Great Products
“Our philosophy has always been that ‘good people create good products’. So, it means that we put emphasis on what we call our ‘ human capital assets’, said Hatsuoka Tadashi at Thai Gunze.
However the foundation of the company’s fabric quality is the investment Thai Gunze makes in purchasing the best quality materials. Read More
PODCAST
Tactics to Make E-commerce More Profitable – and Less Risky
As the e-commerce market becomes increasingly competitive even power brands are having to devote more resources to drive growth, while also trying to reduce margin-killing risk.
In this podcast Lesley Hensell, co-founder of Riverbend Consulting, a firm that helps companies solve issues in their online retail business, shares what she’s learned in over two decades being hands-on in the ecommerce sector.
You’ll learn:
- Strategies small to medium sized sellers can implement to compete with even giant players.
- Key mistakes she sees companies make when they get started in e-commcerce.
- How sellers can minimise risk – while also growing their revenue.
… and a lot more.
SUPPLY CHAIN STRATEGIES
Coping with China’s Ongoing Lockdowns
China’s commitment to its strict Zero Covid Policy has thrown both buyers and suppliers one more challenge – in a global market which is already very challenging.
The media narrative is ‘everyone is leaving’. Industry consensus tells a different story.
Yes, some orders are moving out of China. Still, leaving China is not easy – especially during challenging times. Read more
MARKETS
The yen has slipped past ¥150 against the dollar for the first time in more than three decades.
Stubborn inflation, the ongoing Russia-Ukraine conflict and China’s ongoing lockdowns are a combined force that is expected to slow global economic growth even further in 2023, per the International Monetary Fund (IMF).
- Advanced economies are predicted to grow a mere 1.1%.
- Emerging markets and developing nations are forecast to grow 3.7%.
MATERIALS
Increasingly weak global demand is keeping materials flat this month.
Cotton prices felt the impact of lingering demand concerns combined with soaring interest rates that boosted the dollar, eroded the appeal of dollar-priced commodities.
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