Amazon reportedly has plans to launch a new venture called the “Global Supply Chain by Amazon,” developing a global delivery network. A Bloomberg investigation of internal Amazon documents shows plans for the broad plan that would expand its Fulfillment By Amazon service. And, the International Energy Agency is warning of even lower oil prices in 2016. Afternoon Coffee brings you the latest in procurement and supply chain news.
Category Archives: Afternoon Coffee
Afternoon Coffee: Chipotle Dedicates $10 Million to Improve Food Safety Standards With Suppliers, Wholesale Inventories Drop Again in December
Chipotle said it is spending up to $10 million to help its suppliers produce safer ingredients. The money will provide education and other help for suppliers to implement Chipotle’s new food safety standards, company co-CEO Steve Ells said. And, U.S. wholesale inventories fell in December by 0.1%. It was the third month of inventory drops as businesses continued to shed unsold merchandise. Afternoon Coffee brings you the latest in procurement and supply chain news.
Afternoon Coffee: Ford Increases Mexico Production, Volkswagen to Offer ‘Generous’ Compensation to US Diesel Car Owners
Ford is ramping up car production in Mexico. The automaker is building a new assembly plant in the country and plans to add 500,000 units to its annual production there, more than doubling its 2015 capacity. And, Volkswagen will reportedly offer “generous” compensation packages to about 600,000 U.S. owners of VW’s diesel vehicles with faulty emissions systems. Afternoon Coffee brings you the latest in procurement and supply chain news.
The U.S. trade deficit increased $1.1 billion in December to $43.4 billion, the Commerce Department reported today. Exports in December were down by $0.5 billion compared to November, while imports rose $0.6 billion during the month. And, the U.S. unemployment rate was down slightly to 4.9% in January, compared to 5% in December. It was a modest improvement, but it is the first time the unemployment rate reached below 5% since early 2008. Afternoon Coffee brings you the latest in procurement and supply chain news.
Twelve nations signed the Trans-Pacific Partnership on today, including the U.S., Japan, Canada and Mexico. The U.S. still needs to ratify the TPP, but it’s not clear when a final vote will occur. And, orders for U.S. factory goods fell 2.9% in December, the Commerce Department reported today. Afternoon Coffee brings you the latest in procurement and supply chain news.
A few months after opening its first physical bookstore in Seattle, Amazon may open another 300 to 400 more brick-and-mortar bookstores. News of the possible expansion came from Sandeep Mathrani, chief executive of the mall operator General Growth Properties. And, growth in the U.S. services sector is slowing: Markit’s purchasing manager’s index hit 53.2, the lowest in more than two years and ISM’s non-manufacturing index fell to 53.5, the lowest since March 2014. Afternoon Coffee brings you the latest in procurement and supply chain news.
Afternoon Coffee: Major Oil Companies Lose Billions in 2015, East Coast Ports Congested from Worker Walkout
BP reportedly lost $6.48 billion in 2015 with a $3.3 billion loss for the fourth quarter alone as oil prices continued to plummet throughout the year. Exxon Mobil also reported a 58% drop in quarterly profits. And, the East Coast port worker walkout on Friday has caused congestion at the Port of New York and New Jersey. Afternoon Coffee brings you the latest in procurement and supply chain news.
Afternoon Coffee: January ISM PMI Registers 48.2%, East Coast Port Operations Resume After Worker Walkout
The U.S. manufacturing sector contracted in January for the fourth straight month, according to the latest ISM PMI, which registered at 48.2% for the month, a 0.2% increase from December. A reading below 50% generally means growth in manufacturing is declining. And, operations at New York and New Jersey ports resumed over the weekend after port workers walked off the job Friday. The Waterfront Commission of New York Harbor has started to investigate what sparked the unexpected walkout at the ports. Afternoon Coffee brings you the latest in procurement and supply chain news.
Afternoon Coffee: GDP Growth Slows in Final Months of 2015, Takata CEO Will Not Resign, Company Says
U.S. GDP increased 0.7% in the final quarter of 2015, down from the 2% growth in the third quarter. The slower growth in Q4 is attributed to a decline in exports and businesses reducing inventories, among other factors, the Department of Commerce reported. And, Takata CEO Shigehisa Takada does not in fact intend to resign. Afternoon Coffee brings you the latest in procurement and supply chain news.
Orders for durable goods fell in December by a seasonally adjusted 5.1%, according to the Commerce Department. Durable goods orders were down 3.5% for 2015 overall. And, Russia proposed cutting oil output by about 500,000 barrels a day. The announcement by Russian Energy Minister Alexander Novak helped push oil prices up slightly. Afternoon Coffee brings you the latest in procurement and supply chain news.
Major trucking companies say they are not threatened by Amazon’s latest moves to enter the freight business. Swift Transportation Co., for instance said Amazon’s trailer purchases are having “little or no impact” on its business. And, beginning today, the U.S. will allow more U.S. exports to Cuba and ease restrictions on American financing of exports to Cuba. The Obama administration announced the revised rules for trade with Cuba on Tuesday. Afternoon Coffee brings you the latest in procurement and supply chain news.
Afternoon Coffee: Service Sector Off to Slow Start in 2016, Tesco Knowingly Delayed Payments to Suppliers
The latest Markit Flash U.S. Services PMI shows the country’s service sector is expanding at its slowest pace since December 2014. The index reached 53.7 this month, down from 54.3 in December. And, the U.K. Grocery Code Adjudicator said British retailer Tesco breached the industry code of conduct by purposefully delaying payments to its suppliers. Afternoon Coffee brings you the latest in procurement and supply chain news.