Category Supply Chain Advantage

Tony Hines assesses the economic outlook for 2023 and what it might mean for supply chains, businesses and consumers.

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All things impacting global supply chains this week.

• Container prices fall as demand and congestion eases
• Amazon announces 18,000 lay offs
• UK new car sales hit a 30 year low in 2022 but likely to grow in 2023
• Tessla car sales fall to lowest level in 5 months
• Dell is looking to phase out China made chips because of US blacklisting
• Oil prices fell 9% in the first two trading days of 2023
• Russia is sending Arctic Crude Oil to India and China at big discounts
• Retail figures for the holiday period are in for the UK
• Cost of living is switching consumer buying habits
• Food inflation 13. 3% (BRC) and 14.4% (Kantar) in the UK and up 16.5% in the US
• Aldi forced to cancel special buys as a consequence of supply chain disruptions
• UK Grocery sales hit £12 billion 
• Sales growth figures for competing retailers 12 weeks to 25th December

Reminder to catch up with any episodes you missed

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These are some of the forthcoming episodes that you will want to listen to. Topics cover systems thinking, problem solving, managing the external influences and mitigating risks.

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Supply Chain Management is critical to improving cash flows. When we think of supply chains we think of material flows and not about cash flows but it is the latter that is equally important and impacted by the actions we take in our supply chains. The big consulting firms bang on about profitability and return on investment both are important but there is one variable even more so. It is cash flow because without cash the business may not continue into the future to earn profit and return on investment. In this episode Tony Hines makes the point that supply chain actions determine cash flows and that may be the difference between success and failure.

Further Reading about this topic:
https://www.routledge.com/Supply-Chain-Strategies-Demand-Driven-and-Customer-Focused/Hines/p/book/9780415683197

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Tony Hines discusses all things impacting global supply chains this week.

• Price inflation is still cause for concern – Many prices have risen across the board in the US
• Russia is China's biggest supplier of Oil and Gas
• Some analysts are concerened that Elon Musk has paid too much attention to Twitter and not enough on Tessla as the share price is hit.
• Class Action Lawsuit against Facebook over Data Analytica's breaches of data privacy is worth $725 Million.
• South Western Airline disruptions
• Brent Crude $82 per barrel
• China opens its borders but not everyone is happy
• China's currency falls by 10 per cent in one year
• Hope everyone has a great New Year!

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Tony Hines takes a look back at some of the key moments from 2022. You can catch up with the detail by exploring some or all of the many episodes published in 2022. If you missed any now is the time to catch up.

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All things impacting global supply chains this week with Tony Hines

• Demand for energy increases in Europe as cold spell takes hold.
• War in Ukraine continues.
• China may get back to normal in 2023.
• Peak season -what peak season?
• Manufacturing in the UK falls in 2022
• Check out what has happened in US Tech sector jobs
• Freight costs soften but what happens when China reopens for business
• Chinese ports operating normally and zero COVID policy has ended 
• Sea lanes getting back to normal
• All change at the top at Maersk
• Vancouver auto show cancels
• Volitality still impacting global supply chains 
• Will inflation fall in 2023
• Are China suppliers less reliable and will that force businesses to shop elsewhere.
• Germany's Due Diligence Act comes into force in January 2023.
• 80 per cent of firms in SW UK experienced supply chain difficulties – Brexit remains an issue for these firms – says a study by Barclays Bank Corporate
• 70 per cent of firms in Europe and the US have been forced to source goods elsewhere because of the war in Ukraine, Global Trade Difficulties and Brexit
• Interest rates up in the UK and US this week – Inflation rates are lower but it is hoped that these new increases will dampen inflation further.
• Bank of England rates at 14 year high 3.5%
• Federal Reserve raised interest rates to 4.25-4.5%. In the US interest rates are at a fifteen year high.

Catch up with any episodes missed.

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Change is about learning. Learning to do something new is central to change. In supply chains we have to learn and adapt to change practices and processes. Opportunities and threats emerge from change and we have to be ready to grasp opportunities and limit threats. Risk has to be assessed when we want to take opportunities.
If you source and procure products and services you will know that risk is introduced through change. You have to know the facts. You need data that are both quantitative and qualitative. Asking questions is necessary to understand change.  It is part of the process to change.

Listening to learn is necessary. We need dialogues with people who can contribute to change or inform us of their experiences that may be relevant and helpful to make change smooth.

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All things impacting Global Supply Chains this week.

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Every leader in every organizations has reached their level of incompetence according to the Peter Principle. Leaders rising up the ranks eventually reach a level at which they have no experience. There are many types of leader. This is why trait theories do not stand up to scrutiny. Some leaders are charismatic, some are competent, others are not. There is no single model of a leader. Leaders must listen, learn and act. Leaders have to motivate people. Leaders have to set strategy in motion. Leaders have to be ready, willing and able. 

Understanding people is necessary. 

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