Inaccurate inventory data costs retailers more than theft, the Port of Jacksonville plans a $238 million expansion, global supply chain risks are on the rise, and more: here’s your look at last week’s news
Inaccurate inventory data is more costly to retailers than theft, according to a recent survey. 99% of respondents claimed that they had ongoing inventory problems. 87% of this group said that these challenges were their biggest source of lost revenue, compared to 13% who picked theft for this question. Inaccurate demand forecasting (reported by 73% of the respondents) and an inability to track shipments through the supply chain (reported by 65%) cause problems with supply and lost sales.
The Port of Jacksonville signed an agreement for a $238 million expansion that will deepen its shipping channel and allow the port to process more trade in the future. Since the Panama Canal expanded in 2016, shipping volumes at east coast ports in the United States have increased. Ports in New York, New Jersey, and Savannah (for example) have all grown to keep pace. With this expansion, officials at the Port of Jacksonville hope to continue strong growth from 2018 (container imports rose by 11.9% at this location last year, higher than the average across all atlantic ports).
The amount of threats to global supply chains increased in 2018, according to Resilinc’s 2018 EventWatch Report. The research showed that risk events — specific actions or crises that threaten supply chains — increased by 36% last year. Resilinc pointed to trade conflict between the U.S. and China, Brexit, and several natural disasters as examples of the greatest supply chain threats. The firm recommended that leaders plan ahead and try to minimize their vulnerability to disruption from similar events in the future.
The American Logistics Aid Network (ALAN) is mobilizing supply chain companies to help with recent tornado damage in Alabama, Georgia, and Tennessee. The organization is asking for donations of warehouse space, transportation capacity, and equipment to help communities recover. By sending out specific requests, ALAN hopes to effectively coordinate relief efforts to provide the best possible results.
Ocean freight suppliers are carefully trying to manage capacity, often by removing ships to better position themselves for future demand. These companies fear overcapacity, or having too much available space, since it could drive down rates and cost them revenue. Hapag-Lloyd, for example, cancelled three transpacific services last year and doesn’t plan to add any new ones in 2019. Carriers stand to benefit if lower overall availability allows them to raise their rates, and are trying to carefully match their capacity with demand forecasts.
Any big stories we missed? Thoughts or comments? Let us know!