Supply Chain Optimization

Should we be concerned about changes in the Supply Chain?

Things are changing:
  • Slowing:
    • Warehouse vacancy rates -- now 5.7% —double what it was in 2002 and up from 2019 (4.6%)
    • Package delivery employment was down in December (yes, December).

  • Costing more:  40-foot container spot rates Shanghai-to-Rotterdam week ending Jan. 4, up 115% to $3577 — probably an impact of Houthis.

  • Retailers are pushing back against price increases:  Carrefour, one of the world's largest grocers,  is punishing Pepsi for raising prices by discontinuing some popular items like Pepsi and Doritos.

  • A new approach to distributing drugs:  Eli Lilly is offering weight loss drugs by mail order while connecting people with an independent telehealth company that prescribes obesity medications.
Buckle up — it will be an interesting year that warrants concern.