The Institute for Supply Management’s Manufacturing Index hit its highest level in June since February 2015, reaching 53.2%, up 1.9% from May. The latest Manufacturing Purchasing Managers’ Index from Markit also showed an increase in manufacturing production during June. And, The European Union said it will investigate Anheuser-Busch InBev’s practices in Belgium. Afternoon Coffee brings you the latest in procurement and supply chain news.
Category Archives: Afternoon Coffee
Afternoon Coffee: Renault SA Considers Higher Prices on Car Imports to Britain, Wal-Mart Competes with Amazon 2-Day Shipping
French carmaker Renault SA may raise prices on cars it exports to Britain as a result of the Brexit vote and the falling pound. The British pound has fallen more than 10% to the dollar, causing companies impacted by fluctuations in Britain's currency to make new plans for business. And, Wal-Mart is offering a 30-day trial of its two-day shipping service, ShippingPass. Afternoon Coffee brings you the latest in procurement and supply chain news.
Afternoon Coffee: North American Leaders Meet in Canada to Discuss Trade, Toyota Recalls Cars for Airbag and Fuel Emission Defects
Leaders from the U.S., Canada and Mexico —nations belonging to the North American Free Trade Agreement — will meet today in Ottawa, Canada, where they plan to discuss trade and the recent Brexit vote. And, Toyota is recalling 1.43 million cars for defective airbags and 2.87 million cars for faulty fuel emission controls. Afternoon Coffee brings you the latest in procurement and supply chain news.
U.S. gross domestic product increased 1.1% during the first quarter of 2016, thanks to a rise in personal consumption expenditures, residential fixed income, state and local government spending and exports, according to the latest data from the Bureau of Economic Analysis. Though the GDP growth is higher than the 0.8% previously estimated, it is down from 2015 Q4 GDP growth of 1.4%. And, the Commerce Department also reported this week the U.S. trade gap grew in May by a seasonally adjusted $60.59 billion. Afternoon Coffee brings you the latest in procurement and supply chain news.
Growth in the U.S. services sector remained unchanged from May, according to Markit’s Flash U.S. Services Purchasing Managers’ Business Activity Index, which came in just above 50. The subdued growth in June brought the average index reading for the second quarter of the year to 51.8, just slightly higher than the first quarter’s reading. And, the expanded Panama Canal opened Sunday, June 26. Afternoon Coffee brings you the latest in procurement and supply chain news.
The Flash U.S. Manufacturing Purchasing Managers’ Index from Markit came in at 51.4 for June, the highest level in three months for production growth in the manufacturing sector. Higher output levels and a rise in new orders and employment contributed to the growth. And, Britain votes today on whether or not to leave the European Union, a decision that could impact supply chains around the globe. Afternoon Coffee brings you the latest in procurement and supply chain news.
The Federal Aviation Administration released rules for the use of commercial drones. The rules take effect in late August and provide safety regulations that are aimed at minimizing the risks drones pose for other aircraft and people on the ground, while still promoting innovation and job growth. And, Tesla announced it has offered to acquire solar energy company SolarCity, which Tesla estimates is worth about $2.6 billion to $2.8 billion. Afternoon Coffee brings you the latest in procurement and supply chain news.
Afternoon Coffee: Amazon Sees Major Efficiency Gains From Warehouse Robots, Businesses to Scale Back Inventories in 2016
Robots in use at Amazon warehouses are have a major impact on the time it takes to pick a product, pack it and ship it to consumers. What used to be a 60-75 minute “click-to-ship” cycle is now down to 15 minutes, thanks to the more efficient robots. And, a new report says U.S. businesses will likely scale back on inventories throughout 2016. Afternoon Coffee brings you the latest in procurement and supply chain news.
General Motors Co. will allow certain car component suppliers to renegotiate contracts at least once a year when material costs change or economic conditions shift. The move opens up opportunities for about 400 manufacturers providing parts for new cars in Mexico and Brazil, where GM plans to invest $5 billion over the next 10 years. And, as supply chain organizations demand more visibility into their global networks, supply chain solutions provider HighJump announced it added supply chain analytics tools to its product suite. Afternoon Coffee brings you the latest in procurement and supply chain news.
OPEC oil export revenues are expected to fall 15% in 2016, marking a third straight year of declines, according to the U.S. Energy Information Administration. It could be the first time since OPEC oil export revenues fell for three consecutive years since 1983-86. And, the majority of manufacturers have a positive outlook for their company, with 61.7% of manufacturing reporting being more optimistic, according to the latest quarterly Manufacturers’ Outlook Survey by the National Association of Manufacturers. Afternoon Coffee brings you the latest in procurement and supply chain news.
Starbucks announced it hired Hans Melotte to serve as the new executive vice president of its global supply chain. Melotte was previously the chief procurement officer for Johnson & Johnson. And, the Port of Los Angeles reported it busiest May on record and imported 15% more cargo containers than May 2015 when the port was recovering from a major labor strike. Afternoon Coffee brings you the latest in procurement and supply chain news.
U.S. industrial production fell more than expected in May due to a significant decline in vehicle and vehicle parts production, according to the Federal Reserve. Industrial production dropped 0.4% following a 0.6% decrease in April. U.S. import prices, however, rose in May at their fastest pace since 2012, growing 1.4% from the previous month. Increasing oil prices contributed to the growth in import prices. Afternoon Coffee brings you the latest in procurement and supply chain news.