Inflation drops to 3% in Fed-favored gauge, consumer spending slows | Ferguson opens new distribution center in Nampa, Idaho | AI solutions are becoming a reality across distribution
The Federal Reserve's preferred inflation gauge shows prices in October remained flat from a month earlier and increased 3% year-over-year. Core prices, which exclude food and energy, increased 0.2% from a month earlier and 3.5% annually, according to the Commerce Department's personal consumption expenditures price index. Consumer spending increased 0.2% in October, slower than September's 0.7% increase and the lowest increase since May
Plumbing and HVAC supplier Ferguson recently opened a 165,000-square-foot distribution facility in the Adler Industrial Park in Nampa, Idaho. Strategically located to serve the southwest Washington and Portland markets, the facility allows the Va.-based distributor to better serve customers in the region, with district vice president Steven Johnson calling it "a premier ship hub in the Treasure Valley."
Steve Levy, vice president of enterprise automation at Infor, looks at ways the distribution industry can embrace AI to add value and empower workers, including management of suppliers, the sales experience and inventory. AI is rapidly entering distribution, wholesaling and warehousing, and Levy notes that preconfigured AI models can ease the transition for all employees and make the automation technology more accessible.
State of the Wholesale Supply Chain Industry As post-pandemic challenges persist, such as complex customer demand patterns and increasing volatility, supply chain organizations are recognizing they may require cutting-edge technologies to achieve their goals. Learn how companies can improve forecast accuracy, reduce costs, increase profitability, lower transportation costs and eliminate obsolescence. Read the white paper
Ships traversing the Panama Canal without reservations are seeing southbound wait times jump from 2.1 days in November to 11.4 days this week, with northbound routes more than tripling during the same period to average nine days and those crossing the older Panamax locks are sitting idle for up to 15 days, according to ACP data. Some large shipping firms say the issue is affecting operations and costs and numerous high-capacity LPG tankers are now taking longer routes around the Cape of Good Hope.
Amazon Web Services has expanded AWS Supply Chain with new tools that help users predict and plan for disruptions, confirm orders with multiple tiers of suppliers and collect and audit sustainability data. Amazon Q is also launching as an AI-powered assistant to spot potential supply chain risks.
One of the biggest focuses for supply chain management in 2024 is sustainability, specifically the ability to map product development from procurement to shipping and delivery. There will also be a push to stabilize both global and regional supply chains, meaning companies should closely examine their procurement approach to increase resiliency in the wake of the COVID-19 pandemic.
Jargon-filled content is hampering the ability of business-to-business marketers to effectively connect with prospects and a clear, meaningful approach should be adopted instead, exemplified by Cisco's "Internet of Everything" and IBM's "Outthink" campaigns, writes Omnia Strategy Group CEO Jessica Marie. "A brand's voice should be a beacon of clarity, not a source of confusion," Marie writes, noting, "It begins with a unified commitment to valuing substance over superficiality."
Email has the biggest impact on multichannel marketing strategies, according to business-to-business marketers surveyed by ZoomInfo and Ascend2, followed by social media and content marketing. In addition, 57% of B2B marketers are at the least partially automating their multichannel marketing, while the biggest challenges are effective strategies and a lack of resources.
The Federal Reserve's latest Beige Book shows the labor market has seen widespread softening this fall. The report also shows a pullback in consumer discretionary spending. "Sales of discretionary items and durable goods, like furniture and appliances, declined, on average, as consumers showed more price sensitivity," the report states.
As work projects pile up at the end of the year, try being a "grinch" about your time, says Emily Ballesteros, founder of Burnout Management. "If you have double your usual workload and you know you do your best work in a quiet space with no distractions, do everything in your power to lock yourself in a quiet space with no distractions," says Ballesteros.
Experience three days of excellent networking opportunities, cutting-edge content, and educational programming for leaders in the wholesale-distribution industry at NAW's Executive Summit Jan. 30 - Feb. 1. Hear from world-class speakers and explore issues critical to the industry. Be prepared for what's next and learn new strategies to get there first. View agenda and registration information here.
