Fed: US industrial output up 0.6% in June | Inventory glut weighs on US industrial sector | Examining Wesco's business structure, expansion strategy
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July 18, 2024
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US industrial production rose a moderate 0.6% in June, following a 0.9% increase in May, according to the Federal Reserve, driven by gains in utilities and consumer goods that offset declines in business equipment and construction supplies. Manufacturing output increased 0.4% in June, marking a 1.1% year-over-year increase, while mining output grew 0.3% despite a 0.6% year-over-year decrease.
Full Story: Federal Reserve (7/17) 
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Inventory glut weighs on US industrial sector
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The US industrial sector, including machinery manufacturing, is grappling with an inventory glut that is depressing demand and production, signaling a prolonged recovery period, writes supply chain insider Brian Straight. This ripple effect from overstocked retailers has depressed freight volumes and stymied manufacturers' attempts to reduce excess inventory, a situation Straight says is unlikely to improve until the Federal Reserve acts to lower borrowing costs.
Full Story: Supply Chain Management Review (7/16) 
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Examining Wesco's business structure, expansion strategy
North American distributor Wesco International has diversified its offerings beyond the electrical market, structuring its business into three divisions -- electrical and electronic solutions, utility and broadband solutions and communications and security solutions. Each faces specific market dynamics and competitors, writes John Gunderson, a senior leader at Dorn Group, examining each of the divisions and the company's focus on its core business, including the sale of its Integrated Supply division to Vallen.
Full Story: Modern Distribution Management (tiered subscription model) (7/11) 
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Staying flexible as consumers clamor for rapid delivery
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Consumer demand for convenience and rapid delivery will not be decreasing, a dynamic that abuts the lengthier peak season of high volume resulting from a broader distribution of promotions, pushing suppliers to be flexible and efficient, writes Dennis Moon of Roadie. Retailers can conserve on capital expenditures by partnering with crowdsourced delivery networks rather than relying on doing it all themselves, writes Moon.
Full Story: Supply & Demand Chain Executive magazine (free registration) (7/16) 
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Operations and Technology
Supply transportation disruptions such as those companies have faced in the Panama and Suez Canals point up the roles real-time data, handled through a well-structured internet architecture, can make a difference, according to Ryan Petersen, Flexport founder and CEO. Petersen recommends thorough communication among transportation, procurement and finance components, noting that failure to collaborate "creates a lot of mercenary behavior that's actually self-defeating."
Full Story: McKinsey (7/15) 
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The advantage of having large amounts of data that give deep insights becomes less positive when information overload hits, writes Norman Katz of Katzscan, advocating for thorough data retention policies. The policies should cover areas including how long data should be kept, whether it must be kept in full detail or can be compressed and whether data is being generated from duplicate sources, writes Katz.
Full Story: Supply Chain Management Review (7/15) 
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Sales and Marketing
Recent Supreme Court decisions have reshaped the regulatory landscape for marketing, particularly affecting the Federal Trade Commission's authority. The rulings end the Chevron doctrine and modify the statute of limitations for regulatory challenges, could lead to more aggressive advertising, legal disputes and long-term shifts in regulations for consumer privacy, influencer marketing and data sharing.
Full Story: The Wall Street Journal (7/16) 
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The Business Leader
Don't solve team problems, coach them to solve their own
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Your team doesn't want you to solve their problems; they want you to coach them so they can learn to figure things out on their own, says Bruce Watt, senior vice president at DDI, whose research found that 40% of leaders say their managers don't have adequate coaching skills. Companies need to invest in a culture of coaching, says Watt, which includes giving managers the feedback they need to be effective and creating a way to measure success.
Full Story: Human Resources Director (7/17) 
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The International Monetary Fund has warned that a fresh wave of tariffs could increase inflation and force central banks to maintain higher interest rates. The IMF's forecast for global economic growth this year remains at 3.2%, with an increase to 3.3% next year. Inflation has declined slower than expected, and additional tariffs could worsen the situation, the IMF says.
Full Story: The Wall Street Journal (7/16) 
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About NAW
The National Association of Wholesaler-Distributors (NAW) is one of America’s leading trade associations, representing the $8 trillion wholesale distribution industry. Our industry employs more than 6 million workers throughout the United States, accounting for approximately 1/3 of the U.S. GDP. 250,000 wholesale distribution companies operate across North America, including all 50 states. Learn more.
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