Producer prices rose by 0.2% in August and increased 1.7% from a year earlier, according to Labor Department data. Core producer prices, which exclude food and energy, increased 0.3% from the previous month and 3.3% annually. Much of the increase can be attributed to services, as goods prices were flat from the previous month.

Hurricane Francine's impact on the US Gulf of Mexico has led to significant production disruptions, with 730,000 barrels per day of oil and 992 million cubic feet of natural gas shut-in, and oil producers are carrying out safety checks and getting ready to restart production. While Texas ports have reopened, Louisiana ports and grain facilities are still recovering from power outages and authorities are conducting damage assessments at Port Fourchon and the Port of New Orleans. The American Logistics Aid Network is working with emergency responders to mitigate supply chain disruptions.

In August, the GEP Global Supply Chain Volatility Index dropped to -0.37, indicating significant underutilized capacity in global supply chains. "What is most concerning in our August data is that manufacturers are aggressively drawing down their inventory suggesting they're preparing for a sustained soft patch,"said Neha Shah, president of GEP.

The two factors most critical to maintaining operational supply chain excellence are managing staff and integrating a warehouse management system, says Steve Mills of Bray Solutions. Contract packing has also emerged as an important component, says Mills, as it helps reduce cost and make the most of existing resources.

Incorporating robotic process automation into supply chain operations can improve accuracy, reduce operational costs, enhance regulatory compliance and strengthen cybersecurity, writes Evgeniya Golomovzaya of Itransition. The logistics services provider Raben Group says it saved $6.6 million and 78,815 employee workdays in one year by using more than 200 RPA automations.

To address supply chain challenges such as global and regional disruptions and climate change, operation managers must focus on transparency, cargo safety, geopolitical monitoring, energy management, cybersecurity, regulatory compliance and understanding tariffs and taxes, writes Jan Burian, the associate vice president of research and head of IDC Manufacturing Insights EMEA. Technologies like blockchain and AI can enhance transparency and risk management, while robust cybersecurity measures and adherence to regulations are crucial for resilience, Burian writes.

Force majeure clauses in manufacturing and distribution contracts can help protect parties due to unforeseeable events such as disasters, labor disputes or pandemics, and allow a party to suspend performance without breach or financial penalties, writes Vanessa Miller, a litigation partner with law firm Foley & Lardner. Key elements of these provisions include defining covered events and specifying rights and obligations. The Uniform Commercial Code's concept of commercial impracticability offers additional legal protection.

Gross margin is an inadequate measure of profitability, and distributors can instead look to supplier rebates, working capital management, cost to serve, strategic purchasing, quote and order automation and sales productivity to drive significant gains, writes Ian Heller, chief strategist of the Distribution Strategy Group. These areas collectively offer better profitability insights while focusing only on gross margin can lead to unhealthy practices.

Become an effective communicator by learning the seven key traits shared by top communicators, including understanding the needs of your audience, showing empathy, being authentic and actively listening, writes David Grossman. Leaders can perfect these skills by seeking to learn something in every conversation, using open-ended questions to foster dialogue and providing positive feedback, even if there's disagreement, Grossman advises.

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