Inflation at the production level declined for the third consecutive month in December, with a 0.1% drop in the Labor Department's producer price index. Producer prices increased 1% from a year earlier, suggesting a continued easing of inflationary pressures. Core PPI prices, which excludes food and energy, were flat from the previous month.

Plumbing and industrial supply giant Ferguson announced three acquisitions to start in 2024, continuing its multi-year growth strategy that has included more than 50 acquisitions in the past five years. Ferguson is acquiring Texas-based appliance distributor Harway Appliances, Canada-based Yorkwest Plumbing and Pa.-based Grove Supply, a trio with more than 20 locations and roughly $220 million combined annual revenue.

Global trade slipped 1.3% from November to December 2023 in large part due to militant attacks on merchant vessels in the Red Sea that caused a significant drop in cargo volumes, according to the IfW Kiel institute. The Red Sea attacks have altered shipping routes, diverting vessels around South Africa's Cape of Good Hope, causing longer and more expensive journeys for a significant portion of the world's cargo.

Online business-to-business buyers come in five flavors: product-focused shoppers who want quick service, those researching all their options, browsers with time to explore a website, bargain hunters and one-time shoppers, writes Tracy Buelow, vice president of category management at Zoro.com. It is important for manufacturers and distributors to develop their online presence and deliver value to customers with a good price, a good assortment and consistent fulfillment, writes Buelow

Generative AI is currently being employed by 14% of supply chain executives responding to a Gartner survey and one-half plan to integrate the technology into workflows. Executives say they're willing to allocate an average 5.8% of their budgets toward AI implementation and nearly two-thirds are open to hiring staff dedicated to generative AI deployment.

Logistics organizations disapprove of the Labor Department's new independent contractor rule slated to take effect March 11 that analysts say would likely deem more individuals as employees. American Trucking Associations CEO Chris Spear called the new rule regulation "un-American" for reducing worker freedoms and OOIDA President Todd Spencer says "this constantly changing landscape has created uncertainty that makes it more difficult for [trucking operations] to operate their businesses."

Business-to-business companies can enhance customer experience by adapting to three key trends: using software specific to your industry rather than generic offerings, employing AI to personalize journeys and unifying the customer experience across departments, writes Geert Leeman, chief revenue officer of SAP CX. "The forthcoming year promises a new chapter in B2B interactions characterized by innovation, efficiency and a scalable customer-centric focus," Leeman writes.

Recession and inflation are CEOs' top external concerns for 2024, yet just 37% of US chief executives say they're prepared for a recession and 34% say as much for high inflation, according to a survey by The Conference Board. Attracting and retaining talent remains the number-one internal focus for CEOs in the US and globally, and broader labor shortages are also seen as an external concern. US CEOs said their top geopolitical risk is the US' growing national debt.

The go-go-go business practices of the past don't work well today -- the burnout rate is soaring -- and such time optimization can strip away your energy, joy and chances to connect with others, as well as to innovate and collaborate, leadership expert Julie Winkle Giulioni writes. Ditch the arrogance of your optimization drive for the disciplined practice of making space for the unplanned and for attentiveness and serendipity, Winkle Giulioni advises.

Stay ahead of the curve, distribution professionals! NAW's latest government relations webinar is FREE and open to everyone. Join us on Wednesday, January 17 at 1:00 PM ET as our GR experts dissect the political and congressional calendars, equipping you with the insights you need to thrive in 2024. Gain exclusive insights into key dates, elections, regulatory priorities, and legislative trends that will shape your year. Register here.

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