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Supply Chain Snapshots - News of the Week (Feb. 3, 2023)

Friday, February 3, 2023

Looking for a quick summary of the top supply chain and logistics news making waves this week? Read our weekly "Supply Chain Snapshots" for summaries and commentary to get you up-to-speed.

1. Cardboard Box Demand Plunging at Rates Unseen Since the Great Recession

(Read on FreightWaves)

Demand for boxes dropped to levels not seen in more than a decade over Q4’22. Or more specifically, demand for the containerboard that is used in the construction of cardboard boxes. Generally downturns here are viewed as indicative of a drop in consumer spending, since nearly everything we buy spends time in a cardboard box at some point. They do note, however, that an uptick in requests for outbound trucking services is being seen in Q1’23, so the news isn’t all doom and gloom.

2.Truckers Expect an Inventory-Driven Rebound Later This Year

(Read on The Wall Street Journal)

By now it’s no secret that inventory levels at many retails are sitting well above normal. U.S.-based trucking companies see this as a sign that by H2’23, their industry will start to see a turn-around and return to seasonally normal levels as retailers’ inventory levels drop back to a point where they’ll need to start moving goods again.

3. 7 Supply Chain Software Trends To Watch in 2023

(Read on Logistics Management)

ERPs and WMSs and AI, oh my! The logistics industry has been undergoing what many see as an overdue digital transformation for some time now. That said, it can easily become overwhelming and lead to a lack of action where taking action is the better choice. This summary offers 7 key trends in logistics technology to watch closely this year.

4. How tech can help SMBs build a resilient supply chain

(Read on Supply Chain Digital)

All that technology won’t do you as much good if you don’t also leverage it to increase your supply chain’s resiliency. The last three years have shown logistics professionals that the one thing they can rely on in this industry is change. Using your own digital journey to power your own resiliency is the way forward, and this article highlights ways to make use of tech at each step of the supply chain from raw materials procurement to financing.

5. Mexico’s Industrial Hubs Grow as Part of Shift Toward Nearshoring

(Read on The Wall Street Journal)

Mexico’s already strong manufacturing sector is poised to grow even stronger in the coming months as more U.S.-based companies look to shift their supply chains closer to home. Nearshoring is powering the move, as seen in the near-capacity factories lining the Mexican side of the border with the U.S. in cities like Tijuana and Ciudad Juárez.

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