Oracle is buying cloud software company NetSuite for $9.3 billion. Oracle Chair Larry Ellison already has a 40% stake in NetSuite’s shares, giving Oracle a leg up against any possible rival bidders of NetSuite. The deal is expected to close this year. And, DHL will invest $137 million to build eight e-commerce distribution centers around the U.S, adding to the 20 distribution centers the German shipping company has around the nation. Afternoon Coffee brings you the latest in procurement and supply chain news.more ▸
Spend Matters welcomes this guest post from Karolina Tomczyk, senior economist at pricing and purchasing, IHS Markit.
The buying environment for paper will return to balance in the second half of 2016. Sellers have likely already implemented most price increases across several grades, taking advantage of recent changes in supply flows. These price increases were only a partial implementation of their intended hikes, as buyers did not perceive the market as tight enough and resisted significant increases. Moreover, considering the ongoing decline in demand for graphic papers, it is unlikely that these price increases will hold — IHS Markit expects downward price pressure to return in the second half of 2016.
Afternoon Coffee: US Durable-Goods Orders Fall, Oil and Gas Inventories Rise Much Higher Than Expected
Orders for durable goods in the U.S. sank 4% in June, the biggest decline in nearly two years. The drop was also much higher than the 1.7% decline economists were expecting and was attributed to the ongoing struggles of American manufacturers to increase sales. And, an unexpected rise of U.S. crude and gasoline supplies pushed down oil prices again today. Afternoon Coffee brings you the latest in procurement and supply chain news.more ▸
The U.S. services sector had a sluggish July due to subdued economic activity. Markit reported its Flash U.S. Services PMI Business Activity Index fell to 50.9 this month, down from 51.4 in June and representing the weakest pace of growth in five months. And, Rockwell Collins Inc., a Boeing supplier, says it is still waiting on a payment by the planemaker for at least $30 million in goods and services it provided. Afternoon Coffee brings you the latest in procurement and supply chain news.more ▸
HourlyNerd, a work intermediation platform (WIP) that enables enterprises to access highly qualified freelance business talent, has announced it is rebranding to Catalant. The announcement comes on the heels of the company receiving $22 million in private equity funding earlier this month. The “new name — a combination of catalyst, brilliant and talent — reflects the company’s leading role in redefining how enterprises access top talent to solve critical challenges,” the company said in a press release.more ▸
A few months ago, Infosys invited me to attend its Confluence conference in San Francisco, and I’ve been meaning to write it up, but have struggled. The reason why is that I took so much away from it and have been trying to figure out the best way to parse up some of the insights. I have to admit that this conference was perhaps the most thought provoking vendor event I’ve ever been to.more ▸
Afternoon Coffee: Cargill Considers Selling Energy Business, FERC Asks NERC for New Supply Chain Risk Management Standard
Cargill Inc. is considering selling its metals and energy business to focus more on food and agricultural activities. The company’s metals and energy business includes power and gas, oil and oil products and steel and iron ore activities. And, the Federal Energy Regulatory Commission directed the North American Electric Reliability Corporation to create a new supply chain risk management standard to improve the cybersecurity of the bulk electric system. Afternoon Coffee brings you the latest in procurement and supply chain news.more ▸
Afternoon Coffee: US Manufacturing Grows Sharply in July, Brexit Drags Down Europe’s Business Activity
The U.S. manufacturing sector has experienced positive growth this month, with manufacturing production seeing its sharpest rise since November. Markit said its Flash U.S. Manufacturing Purchasing Manager’s Index hit 52.9 in July, up from 51.3 in June. Business activity in Europe, however, did not fare so well this month, with manufacturing and services output falling. Markit reported today that its Eurozone Flash PMI fell to an 18-month low of 52.9 in July. Afternoon Coffee brings your the latest in procurement and supply chain news.more ▸
Afternoon Coffee: Target Hires Former Apple Supply Chain Exec, Wal-Mart Asks Suppliers to Stop Using 8 Harmful Chemicals
Target Corp. hired former Apple supply chain executive Benjamin Cook to serve as the retailer’s senior vice president of global logistics, inventory allocation and replenishment. Part of Cook’s duties will be to "lead the optimization of Target's inbound and outbound supply chain processes, including carrier transportation and last-mile delivery,” Target said. Major retailer Wal-Mart is also in the news for asking suppliers to stop using eight chemicals that could pose a threat to human health and the environment. Afternoon Coffee brings you the latest in procurement and supply chain news.more ▸
The European Union launched a complaint against China this week for restricting exports on certain raw materials, including copper, lead, tin and cobalt. EU Trade Commissioner Cecilia Malmström said Chinese trade practices are unfair and go against international trade rules and are negatively impacting EU producers and consumers. And, SABMiller’s board meets today, and a source close to the company told Reuters it has not ruled out asking Anheuser-Busch InBev to revamp its more than $100 billion proposed takeover bid. Afternoon Coffee brings you the latest in procurement and supply chain news.more ▸
Afternoon Coffee: Dell’s EMC Acquisition Could Impact Supplier Payment Terms, New York Files Lawsuit Against VW
Dell Inc. is expected to soon acquire cloud computing and big data solution provider EMC Corp. for $60 billion, but the deal may mean a delay in payments for EMC suppliers. Dell has taken more than 100 days to pay suppliers in the most recent quarter, while EMC currently takes just 42 days, on average. And, the state of New York filed a civil lawsuit against Volkswagen AG today, alleging senior executives at the car company hid evidence related to the diesel emissions scandal. Afternoon Coffee brings you the latest in procurement and supply chain news.more ▸
Spend Matters welcomes this guest post from Avneet K Deol, of Mintec.
Over the last few weeks, global economic news has been dominated by the U.K.’s decision to leave the E.U. on June 23. In this article, we take a look at how global markets have reacted to the Brexit decision.