The Ledger
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Tag Archives: supply chain
CFO Journal: Financial Reporting Considerations: Supply Chain and Labor Disruptions
December 16, 2021
“For many companies, such disruption is significantly increasing the costs associated with moving goods through the supply chain. If the higher costs are included in inventory, companies should consider whether these costs drive up the cost of the inventory in such a way that adjustments based on the expected net realizable value of the inventory are warranted.”
Industry Week: A National Supply Chain Dashboard Could Prevent Bottlenecks—but It’s Not There Yet
November 29, 2021
“To improve supply chain efficiency and resiliency, this dashboard must collect and share granular-level real-time data about container movements at the ports; train and truck movements to and from warehouses; and inventory movements to retailers. It is essential for the government to cooperate and collaborate with private companies to collect and aggregate this requisite data. Only by analyzing this data can one predict supply chain performance in the near future.”
Global Finance Magazine: Inflation: Here to Stay?
October 20, 2021
“Geale says his firm is advising CFO clients to factor higher prices into their strategic planning and to wring savings out of their supply chains by streamlining product specifications and reducing waste. He also recommends what he calls a “new-market focus”–seeking out new sources of supply with whom it is possible to have greater negotiating power than existing vendors, although people starting new business, sometimes have a difficult time getting funds for this, and that’s where a quick and easy loan can be really helpful for this purpose, since this could give you the money you need to start your business and improve your finances. “You have to change the way that you think about buying and the way you think about the market,” he says.”
CFO Magazine: Labor Shortage and Supply Disruptions Weighed on CFOs in Q3
October 15, 2021
“Most chief financial officers also reported that their firms were experiencing supply chain disruptions that they expect to last into 2022 or later. Fewer than 10% of those surveyed said they anticipated the troubles to be resolved by the end of the year.”
CFO Journal: Look Beyond Direct Suppliers to Procure New Savings
October 14, 2021
“Despite the ongoing quest many CFOs have undertaken to turn the procurement function from a cost center into a source of value, optimizing indirect spend all too often is lower on the priority list. But CFOs and CPOs can collaborate to gain control over such spending —and now is a propitious time to do it.”
CFO Journal: Supply Chain Snarls Throw a Double Punch to Costs and Sales
October 12, 2021
“Among surveyed CFOs, 44% report that supply chain shortages or delays increased their companies’ costs by 5% or more. Nearly one-third (32%) note that their 2021 sales have fallen due to delays or shortages, with 28% expecting future sales this year to suffer. More than two-thirds of respondents (69%) indicate that their supply chains would become more diversified over the next three years, with 23% expecting greater vertical integration of their supply chains.”
Industry Week: ISM: Continued Growth, but No End in Sight for Labor, Commodity Shortages
October 12, 2021
“The price of aluminum has increased now for 16 months in a row alongside the trend in manufacturing growth. Other commodities up in price for longer than a year include polypropylene (15 months up in price), steel (14 months), and plastic resins (13). Electrical and electronic components were listed as up in price for a tenth month each, and semiconductors marked an eighth more-expensive month.”
Industry Week: Metalformers Face Raw Material Price Hikes and Labor Shortages
September 28, 2021
“Average lead times at metalforming companies are increasing with barely any sign of slowing down. Just over six in ten survey respondents said average lead times are longer than they were three months ago. That number fell three percentage points from August, when it read 64%. More than half of PMA members have reported increased average lead times for every month since February 2021 now.”
