Home > News Landing Page
All news

Manufacturing Indexes Down in May Worldwide

by APICS Staff | 12 | 11 | June 05, 2012

In May, the US manufacturing sector grew at its slowest pace in three months, Reuters reports. Markit, a global financial services firm, revealed its manufacturing purchasing managers’ index (PMI) was at 54.0 in May, dropping from 56.0 in April. The measurement represents a weighted average of five factors__orders, output, employment, supplier delivery times, and stocks purchased__and a reading above 50 represents growth. 

The American manufacturing slowdown is a result of “a near stagnation of export orders, reflecting deteriorating demand in many overseas markets; notably the euro zone, but also emerging markets such as China,” says Markit chief economist Chris Williamson.

Demand is not the only indicator falling in Europe__Markit’s euro zone PMI dropped to 45.1 in May from 45.9 in April, its lowest reading since June 2009. “The sector is contracting at a quarterly rate of around 1 percent, suggesting that manufacturing will act as a major drag on economic growth in the second quarter,” Williamson says. “All four of the largest euro zone nations are now reporting worryingly sharp downturns in their manufacturing sectors.”

Other bad news for manufacturing this month includes China’s manufacturing sector shrinking, US factory orders falling, and JP Morgan’s global PMI dropping.

Coca-Cola Reducing Supply Chain Water Use

At Coca-Cola, a new sustainability plan, including a water stewardship commitment, is resulting in falling water use and increased production, the Guardian reports. A recent life cycle analysis reveals that 99 percent of Coke’s water footprint is in its supply chain, with 76 percent of that used in the farming and refining of sugar beets. This realization has led to a focus on solutions not only internally, but throughout the entire value chain.

Coke’s water stewardship program focuses on the following four areas. 

Protect water sources. While no Coca-Cola factories are in immediate danger of loss of water availability, the company is implementing a water source protection plan at each of its manufacturing facilities. 

Use less water in manufacturing. The company is highlighting inefficiencies in production and monitoring use. So far, this has resulted in water use dropping by 5 percent and production increasing by 12 percent. 

Recycle waste water. In 2011, Coca-Cola recycled 100 percent of its waste water, returning it to cities or treating it so it would support aquatic life. 

Replenish water where it is needed. The company invests in community water programs and is planning to work with nongovernmental organizations to further stewardship initiatives.

Logistics Capability Rivals Price in Determining Suppliers

Price is a leading factor in how companies choose their suppliers; but, for many buyers, it is not the only concern, reports DC Velocity. Often, one of the biggest considerations is logistics capability: The ability to get products to buyers at the right time.

“Where you don’t have buffer inventory, delivery is important,” says Simon Ellis, director of supply chain strategy practice at global market research firm IDC Manufacturing Insights. It is especially critical in systems where a late delivery can cause a downstream process to stop entirely, and is as important a consideration as price in these circumstances when awarding a contract. 

The type of business environment also has a hand in determining the importance of logistics to the buying decision. For example, consumer goods manufacturers usually experience customers taking control of shipments at the sellers’ docks, so buyers are less concerned with delivery. However, in other industries, logistics is critically important, including construction, food service, biotechnologies, defense, automobiles, and online retail. “We see tremendous growth in home delivery for retailing,” says Kumar Venkataraman of global management consultancy A.T. Kearney. “And, when it comes to home delivery, logistics capability can make a difference.”

e-News Solutions

Shape the future, participate in a new APICS survey

APICS is conducting a survey to understand the specific job functions and tasks of supply chain and operations management professionals in order to ensure the APICS Certified in Production and Inventory Management (CPIM) designation remains relevant to the profession. Your thoughts and experience can help shape the future of the certification and give you a chance to win an iPad. View rules and participate atapics.org/cpimsurvey.

Mark your calendars! It's time to start getting ready for the 2012 APICS conferences. Visit apics.org/events for information.

Register today for the Best of the Best S&OP Conference in Chicago

The Best of the Best S&OP Conference is designed to provide in-depth education and practical answers from the supply and demand sides of sales and operations planning (S&OP). At the Best of the Best S&OP Conference, you will discover how to introduce, plan, implement, and collaborate on S&OP at your organization.

June 14–15, 2012
Chicago, Illinois, USA
Register today.

2012 APICS International Conference & Expo

2012 APICS International Conference & Expo 
October 14–16, 2012
Denver, Colorado, USA
Colorado Convention Center

APICS 2012 registration discount and the 2012 Leadership Summit
Registration for the 2012 APICS International Conference & Expo is now open. The conference will be held October 14-16, 2012 in Denver, Colorado, USA. The theme of APICS 2012 is Elevate supply chain performance: Value creation through market alignment and integration.


Visit the APICS 2012 website and register today!

APICS North American Seminar Series

This year, APICS offers a series of seminars to bring the APICS body of knowledge to communities across North America.

Find a seminar near you or travel to the one-day seminar that meets your educational needs. See below for a list of seminars:

Upcoming Webinar

APICS Extra Live: Solving Supply Chain Disruptions―Beyond the tactical

Presented by: 

Jonathan Thatcher, CSCP, Director of Research, APICS The Association for Operations Management

Date: June 7, 2012
Time: 1:00 p.m.-2:00 p.m. CT

Register now.

Webinars On Demand Available

APICS Extra Live: Strategic Imperatives for Improving Supply Networks
Watch the webinar now.

APICS Extra Live: Real-World Strategies for Improving Operational Efficiency
Watch the webinar now. 

APICS Extra Live: Racing Toward Operational Success with Kaizen
Watch the webinar now. 

APICS Extra Live: The People Factor in Supply Chain Excellence 
Watch the webinar now. 

APICS Members-Only Webinar: Operations Management Résumé Benchmarking Survey Résumé Structure and Organization
Watch this webinar now. 

APICS Extra Live: Advancing Your Supply Chain with Foreign-Trade Zones 
Watch this webinar now. 

APICS Extra Live: Merchandising for a Lean Supply Chain 
Watch this webinar now. 

APICS Extra Live: Keep Projects Flowing with Visual Project Management 
Watch this webinar now. 

APICS Members-Only Webinar: Résumé Formatting Best Practices
Watch this webinar now.

Purchase APICS supply chain risk and supply chain strategy folios 

Assess risk, develop your organization’s supply chain strategy, and understand how you can successfully implement or grow your organization’s sales and operational planning process with APICS folios.

$19.95 APICS member - Save 50%
$39.95 nonmember 

NEW! APICS Supply Chain Sustainability Folio: Uncovering the Triple Bottom Line

Supply chain and operations management professionals are increasingly called on to carry the torch of innovation to reduce costs, demands on resources, and waste; while increasing the reuse of existing assets, and enabling lean operations. Employing sustainable practices is critical to meeting these business needs.

APICS Supply Chain Strategy Folio: Make the Most of Supply Chain Strategy
Understand challenges and identify areas where senior management and operations management can work together to maximize the effectiveness of your supply chain strategy. Access this APICS folio to delve into critical supply chain functions and tasks that may not be effectively supporting your supply chain strategy.

APICS Supply Chain Risk Folio: Protect your Business with Risk Management
Mitigate and anticipate supply chain risks at your organization—from rising and falling demand to natural disasters, market uncertainty, and varying levels of trust among supply chain partners. Purchase this APICS folio to identify tools to deal with risk at your organization.

APICS S&OP Folio: How to Be an S&OP Champion
Predicting the future generally is thought impossible; yet, S&OP users seek to do just that by strategically directing businesses to achieve competitive advantage. Purchase this APICS folio to understand how you can enable your organization’s bottom-line effectiveness with S&OP.

Access APICS career development resources
Use APICS career packs to understand your career path and next steps, evaluate candidate qualifications, or establish consistency across your organization's hiring.

Free! APICS member
$29.95 nonmember 

  • Individuals seeking to advance in one of the career pack job title areas can evaluate their knowledge and skills, plan their next steps, and identify areas for improvement and growth.
  • Hiring managers seeking qualified candidates can identify specific knowledge, skills, and experience required when evaluating prospective employees and building job descriptions.
  • Organizations interested in developing their workforce can create consistency and establish required competencies for individuals in each of the career pack job title areas. 

APICS career packs:

For each job title, APICS career packs compile essential information to help you understand the job role, including

  • career path information
  • core competencies required of qualified candidates
  • job descriptions and keywords
  • how to use job titles and descriptions.

Download the APICS members-only report 2011 S&OP Practices and Challenges and purchase the APICS Folio: How to Be an S&OP Champion  
Predicting the future generally is thought impossible; yet, S&OP users seek to do just that by strategically directing businesses to achieve competitive advantage, and—more and more—are expected to do so to enable their employers' bottom line profitability.

Supply chain professionals: Take the APICS CSCP Learning System Free Demo today 
By earning the APICS Certified Supply Chain Professional (CSCP) designation, you will demonstrate significant commitment to your profession and your career, distinguish yourself as an industry expert, and excel with your newly acquired specialized knowledge.



APICS CPIM exam study options
APICS offers a variety of study options to help candidates prepare for the APICS Certified in Production and Inventory Management (CPIM) exams and enables them to choose the option that matches their preferred learning method.

Instructor-led courses
For students who learn best in a classroom-based environment, there are instructor-led courses.
Find courses at your local APICS chapter or find an APICS partner outside North America to find courses in your area.

Online certification review courses
Online courses are ideal for professionals who enjoy taking a structured class, but need more flexibility.

Other APICS self-study options
APICS offers a wide variety of tools for candidates interested in studying on their own, including the
  • APICS CPIM Exam Content Manual
  • APICS CPIM practice questions
  • APICS CPIM study notes.

Privacy Policy   |  Contact Us  |  Terms of Use      © 2013 APICS