Afternoon Coffee: Coronavirus may cut U.S. growth, White House seeks $1.8 billion; Aavenir adds a sourcing tool; $3 billion India-U.S. defense deal; Hershey’s banks on its supply chain

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The coronavirus outbreak may curtail the U.S. economy growth to just 1.2% in the first quarter due to the coronavirus, predicts a Goldman Sachs report.

That growth rate is drastically slower than the 2.1% increase in the fourth quarter and 2.3 percent for the full year 2019, reports CNBC.

“The risks are clearly skewed to the downside until the outbreak is contained,” said Jan Hatzius, Goldman’s chief U.S. economist.

White House seeks $1.8 billion from Congress for fighting coronavirus

The White House has asked Congress for $1.8 billion in emergency spending to respond to the coronavirus, reports the Washington Post. It includes $1.25 billion in new funding for the Department of Health and Human Services, as well as the ability to transfer an additional $535 million set aside to fight ebola and use it for the coronavirus response instead.

“To this point, no agency has been inhibited in response efforts due to resources or authorities. However, much is still unknown about this virus and the disease it causes,” acting White House Office of Management and Budget Director Russell Vought wrote to congressional leaders. “The administration believes additional federal resources are necessary to take steps to prepare for a potential worsening of the situation in the United States.”

Aavenir adds sourcing tool

The procurement technology provider Aavenir, which has a contract lifecycle management (CLM) solution, announced that it has added RFPflow to boost strategic sourcing.

“RFPflow can standardize and speed up RFX-to-award cycle time by creating reusable RFI/RFP/RFQ templates and MS-WORD integration. With Aavenir RFPFlow, the enterprise can realize immediate ROI by releasing RFP on Day 1 with less implementation timeline and deployment costs,” Aavenir said in a press release.

India, U.S. finalize defense deals worth $3 billion

India and the U.S. finalized three defense deals worth $3 billion, announced President Donald Trump on a two-day visit of India. The two nations signed three deals, including one in energy sector, as Prime Minister Narendra Modi asserted that the two countries have decided to take Indian-U.S. ties to a comprehensive global partnership level.

Hershey's succeeds because of supply chain, VP says

Susanna Zhu, vice president and head of The Hershey Co.’s U.S. supply chain has claimed that a reason for Hershey’s continued success was its ability to successfully launch new candy bars made possible because the company’s significant investments in its supply chain.

Speaking at the Retail Industry Leaders Association LINK2020 supply chain conference, Zhu described her company's efforts to implement "supply chain 2.0." Over the past five years, Hershey had invested $800 million in improving its manufacturing capability.

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