Author Archives: ASK SOURCE

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supply chain conference

The Supply Chain Conference Of The Year Is Coming In September!

Category:Education,Manufacturing

Join us for the all-new ASCM 2019 taking place September 16 – 18. THE SUPPLY CHAIN CONFERENCE OF THE YEAR will feature all new content, insightful speakers and keynotes, and the opportunity to build connections with supply chain professionals from across the world.

ASCM 2019 features keynote by Fareed Zakaria, CNN Worldwide host, Washington Post columnist, and best-selling author. There will also be a lineup of knowledgeable thought-leaders addressing end-to-end supply chain topics. Each individual has been carefully selected to ensure a broad range of content, viewpoints and topics. Presenters include respected business leaders, authors, educators and innovators who share their expertise through more than 60 educational sessions. 

This influential conference from the world’s leading supply chain organization brings together more than 2,000 people from 50+ countries. You’ll make invaluable contacts, explore new and different ways of thinking, and meet people from many of the world’s most respected organizations. 

No Other Event Covers End-To-End Supply Chain In As Much Depth

From planning and procurement through production, delivery and return, ASCM 2019 is the place for end-to-end supply chain education. Professionals from all areas of the value chain rely on the annual conference for career-building knowledge. 

It’s All About Education

ASCM 2019 is first and foremost an educational conference that provides an immersive learning environment that will advance your knowledge, skills and ability to move organizations forward. ASCM 2019 features 65+ sessions that are mapped across six learning paths to cover all aspects of the extended supply chain; plan, source, make, deliver, return, enable.

ASCM 2019 is first and foremost an educational conference that provides an immersive learning environment that will advance your knowledge, skills and ability to move organizations forward. ASCM 2019 features 65+ sessions that are mapped across six learning paths to cover all aspects of the extended supply chain; plan, source, make, deliver, return, enable.

supply chain conference

BE SURE TO CATCH THE PRESENTATION BY SOURCE INTERNATIONAL AND LIBBEY ON WEDNESDAY, SEPTEMBER 18, 2019 – 11:00 AM – 12:00 PM PDT

Enabling Network Optimization through Effective 3rd Party Management – Hosted by Mike Bunge (Libbey) and Jim Ullum (Source International)

EXERPT: When seeking new outsourcing opportunities and strategies to manage risk and maximize team performance, using real-world case studies is a highly effective way to learn what has worked and what hasn’t worked for other organizations. Whether you directly manage outsourced suppliers or work through a service provider, outsourcing is a multifaceted process with goals that include lowering costs, managing quality, gaining operational efficiencies, enabling access to external resources, and many others. This joint session includes the perspectives of an outsourcing service provider and a manufacturer who will share sourcing and procurement best practices and strategies. They will outline solutions to address some of the challenges you might encounter in areas including QA, auditing, ethics, product development, cost drivers and cost justifications, and navigating in a low-cost, offshore environment.

This session will count as 1 elective credit hour toward the ASCM Risk Management Education Certificate.

CONTACT US FOR MORE INFORMATION

OR, REGISTER FOR THE EVENT USING PROMO CODE: LVPPN100 for a $100 discount. 

PLEASE FEEL FREE TO SHARE AND FOLLOW US ON FACEBOOK AND LINKED-IN AND SEE YOU IN Las Vegas!


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tracking the trends

ASIA MANUFACTURING COST DRIVERS REPORT Q2– 2019 (Apr, May, Jun) Tracking The Trends Which Drive Costs In Asian Manufacturing

Category:Cost Drivers Report

Executive Summary

The commodity price trends in the second quarter are down in Asia. Many grades of Plastics, Steel, Metals, Fuel, Textiles and Ceramics raw materials prices were mostly down in price. While some grades of Alum, Wood and paper prices were all up. Labor rates were steady in the lower wage countries. The trend for World Container Index was increase. Only Rubber prices were mixed. The US Dollar was up a little bit against most of the Asian currencies in Q2. China imports and exports saw slightly up in this quarter. The China CPI was steady, and the China PPI was down marginally. The PMI indexes saw slightly down in Q2, PMI China was steady, while PMI Hong Kong and PMI USA saw faintly decreasing. Below is a chart of the general trends and for all the details, please see the entire report.

Report Details

PLASTICS & RUBBER

– Most of General Purpose plastic prices were down in second quarter. PP(Food Grade), PE (LD400/Injection) and PP (K8303) were all down over 3%, PVC (S700) and HIPS (PH88) both down marginally, while others were unchanged. Year over year, expect for HDPE (HHMTR210) up 3.8%, and PE (LD400/Injection) is steady, balance of the general plastic prices are down over 6% versus one year ago.

– Similarly, the second quarter of engineering plastic prices were down, except for Nylon (PA6) up 2.6%, ABS, PC (L-1250Y) and PU Foam were all down slightly. POM and Nylon (PA66) are both steady. Year over year, ABS in price is obviously down 17.4%, followed by PC (L-1250Y) down 4.8% and PU Foam is faintly down 2.1%, while the other prices are up on the average of 5.8% versus one year ago.

– Most of the Rubber prices were down in Q2, SCR5 saw a little up which is over 2%. EPDM saw obviously down in price, which was over 8%. Latex, CR prices were all down over 2%, BR9000 was down marginally. NBR price was steady. Year over year, SCR5, Latex and NBR prices slightly up which are over 2%, while EPFM in price is down 8.3%, followed by CR down 3% and BR9000 down 2.6% versus one year ago.

METALS

– For the second quarter of 2019, most of the prices for Carbon Steel were down. Hot Roll Steel Tube Cold Roll Steel Sheet and Cold Roll Steel Tube in price were down 6.1%, 5.9% and 2.3% respectively. While Hot Roll Steel Sheet and Steel Wire were both up over 2%. Pig Iron is unchanged. Year over year, expect for Steel Wire and Pig Iron are steady. Other carbon steels in price are down on the average 8.3% versus one year ago.

– In the Stainless Steel part, most of the grades of prices were down in the second quarter, with 410, 430 and 304 in price down on average of 3.5%, while 402 and 201 in price were up 3.4% and 0.6% respectively. Year over year, all the Stainless Steel prices are down over 4% versus one year ago.

– All aluminum prices were up faintly in the second quarter. Year over year, Only 6061 in price is up 2.5%, the rest of grades are down on the average of 0.9% versus one year ago.

– In Other Industrial Metals, all grades trend was decreasing in Q2, with Copper and Nickel in price were both down over 7%, Zinc and Brass Rod prices were down 5.3% and 3.9% respectively. Year over year, Zinc’s price is sharply down 18.6%, followed Nickel price up 15.2%, Copper price down 9.6% and Brass Rod price is down marginally versus one year ago.

WOOD, PAPER & TEXTILES

– Wood prices were slightly higher in Q2, except for Beech Hardwood was steady in price, Pine Softwood and MDF prices were up 0.5% and 1.6% respectively. Year over year, Beech Hardwood and Pine Softwood are up marginally, while MDF price is down 1.5% versus one year ago.

– Similarly, most grades prices of Paper Materials were up in the second quarter, with Kraft paper was sharply up 24.6%, followed Gray Cardbord was up 15.2% and White Cardboard was up 12.2% in price. While Corrugated Board and Art paper prices were down 14.7% and 7.4% respectively. Year over year, the trend for paper price is decreasing, with Corrugated Board and Art Paper both enormously down over 23%, Kraft paper is down marginally. Kraft paper and Gray Cardbord are up faintly versus one year ago.

– Textile fabric prices saw a little change in the second quarter, with Raw Cotton price was down 6.7% in price. While the rest grades prices were steady. Year over year, the grade in prices are mixed, with Raw Cotton price is sharply up 13.5%, but 100% Polyester Fabric price is up 5%. The rest of Textiles prices are unchanged versus one year ago.

CERAMIC AND GLASS RAW MATERIALS

-In Ceramic Raw Materials, the grades in price were up in Q2, with Alumina was obviously down 8.9%, Kaolin, Feldspar and Soda Ash were all up slightly. Year over year, Alumina is up moat which is over 17%, Kaolin’s price is up 2.3%. While other Ceramic and Glass material prices are up on the average of 4.7% versus one year ago.

FUEL

Fuel prices in China were generally going down, with LPG , Diesel Oil and Natural Gas prices were obviously down in the range of 2% ~15% in the second quarter. However, Petroleum price was unchanged. Meanwhile, year over year, all Fuel prices are decreasing in price, with Diesel Oil in price is significantly down 20.4%, the rest fuels are down slightly in price between 8%~15% versus one year ago.

OCEAN FREIGHT

The World Container Index was faintly up 0.4% in the second quarter. To the contrary, year over year, the World Container Index is slightly up 2% versus one year ago.

COST OF LABOR

All of the Asian labor rates were unchanged in Q2.Year over year, rates are up in most countries with Bangladesh rate is sharply up the most (over 50%) followed by Indonesia (up 9.4%), Vietnam and India both up over 5%, and China is up marginally.

CURRENCY EXCHANGE RATE

For the second quarter, the USD was slightly strength against the Vietnam Dong, India Rupees, China RMB and Taiwan New Dollars, while slightly weaker against Thailand Baht Bangladesh Taka and Indonesian Rupiah. Year over year, the biggest gains for the USD are against the China RMB, slightly strength against India Rupees, Bangladesh Taka, Taiwan New Dollars, and Vietnam Dong while its slightly weaker against the Thai Baht and Indonesia Rupiah.

CHINA TRADE (Data lags by one month)

– China Imports was slightly up 3.73% and Exports was obviously up7.65% in the second quarter. Year over year, China Imports is slightly down 1.66% while Exports are up 1.34% versus one year ago.

– The China Consumer Price Index (CPI) was unchanged while the China Producer Price Index (PPI) was faintly down 0.6% in the second quarter. Year over year, the China PPI is down 4.49% while the China CPI is up marginally versus one year ago.

PURCHASING MANAGERS INDEX (PMI)

USA PMI and Hong Kong PMI were both down slightly. Only China PMI was unchanged in the second quarter. Year over year, China PMI, China PMI and USA PMI are both down slightly, with UPS PMI down most which is over 14% followed by China PMI down 4.08%, while Hong Kong PMI is up 1.63% versus one year ago.

CONTACT US FOR MORE INFORMATION

Thank you for taking the time to follow trends in Asia manufacturing. Source International has operational offices in Louisville, Kentucky & Xiamen, China. Our passion is to partner with companies in supply management from Asia. We have a 26 year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff. We welcome the opportunity to show you how we can add value to your supply chain in Asia and invite you to visit our offices and website to learn more about us.

For additional details, please refer to the charts that follow or contact one of our Operations Specialists for more information. Thank you for your support.

Visit our :http://www.sourceint.com/

Data for this report comes from the sources listed and while every attempt is made to be as comprehensive and accurate as possible, please consider that these are just general trends and you should not draw any specific conclusions from the data. We recommend that any information provided in this report be weighed against other sources and experts on the individual topics covered and\, accordingly, we make no specific claims nor assume any liability from the use of the data contained herein.


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JOIN US for 3 Learning Sessions at the ASD SHOW in Las Vegas – July 28-31

Category:Education,Manufacturing Tags : 

Come join us at the ASD Show in Las Vegas July 28-31 for 3 exclusive learning sessions targeted to all private label buyers and importers.

and learning sessions

ASD Market Week is 9 Trade Shows in 1 Central Location that features 19 Retail Categories from 2,700 Vendors from around the world. You can Find New Suppliers and Vendors, Thousands Of High-Margin Products which Consistently Achieve a 300% Mark Up and Enjoy Exclusive Deals & Perks Designed For ASD Attendees.

ASD Market Week (previously ASD AMD) is the most comprehensive trade show for consumer merchandise in the U.S. As the leading B2B trade show in Las Vegas, ASD brings the world’s widest variety of retail merchandise together in one efficient shopping experience. Retailers of all sizes will find that the ASD Market Week show floor is filled with quality choices at every wholesale price point.

What’s more, ASD Market Week is also home to the SourceDirect trade show, a B2B show for importers, distributors, wholesalers, and large retailers to buy wholesale goods directly from overseas manufacturers. SourceDirect at ASD is the go-to destination for buyers looking to source new product categories and find new ways to directly profit from manufacturers coming from top sourcing countries.

Whether you have an online store, a brick-and-mortar business, or both, ASD is truly the wholesale buying event that can’t be missed for any small to large sized retail, e-commerce, distribution, or importing business. 

Contact Jim to schedule an on-site meeting at ASD where we can give you helpful tips and discuss how our program can add value to your new product development efforts. And by joining our 3 learning sessions you’ll gain valuable knowledge about developing private label products.

Registration to ASD and Source Direct is free through the link below. 

https://registration.experientevent.com/ShowASD192/?Flow=ATTENDEE&MarketingCode=REFPTSDJU

Ask The Experts Panel

Sourcing 101 Panel

Sunday, July 28, 2019: 11:15 AM – 12:15 PM

This session will cover the fundamentals of sourcing your products overseas. The panel will share their varied expertise covering the process of finding new suppliers, supply chain strategies as well as the art of negotiation and legal issues for newcomers to the industry.

https://asd.a2zinc.net/July2019/Public/SessionDetails.aspx?FromPage=Sessions.aspx&SessionID=9670&SessionDateID=488

Ask the Experts

Monday, July 29, 2019: 11:30 AM – 12:30 PM

This interactive Q&A allows attendees to ask the panelists questions pertaining to sourcing and importing. Experts will address questions from the audience as well as answer questions that arose in previous seminar discussions leading up to this Q&A. We encourage an interactive dialogue where no sourcing topics are off limits. Walk away from this session with the sourcing knowledge and confidence you need to further your business.

https://asd.a2zinc.net/July2019/Public/SessionDetails.aspx?FromPage=Sessions.aspx&SessionID=9677&SessionDateID=489

Driving Product Success and Positive Product Reviews Through Effective Sourcing and Quality Assurance

Tuesday, July 30, 2019: 11:30 AM – 12:30 PM

The success of your product offerings, whether you offer private label or open market goods, depends heavily on finding the right source for product development and manufacturing, and on the quality of the final product that reaches your customers. Today’s savvy consumers demand high quality products at the most competitive price and you only get one chance to make a good impression. You may have the latest innovative, on-trend product but if the quality is not on-spec, it doesn’t arrive on time, or the price is not competitive, your chance to generate a positive customer review is greatly reduced or, even worse, may generate a product-killing bad review. In this session you’ll learn tips to engage in collaborative strategic sourcing that minimizes your risk, quality assurance best practices, and how to incorporate green initiatives to reduce your carbon footprint to drive product success for your brand and those all-important positive customer reviews.

https://asd.a2zinc.net/July2019/Public/SessionDetails.aspx?FromPage=Sessions.aspx&SessionID=9680&SessionDateID=490

So don’t delay, contact us today!


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Source Int'l SIS Supply Chain Management Software Solution

SIS 6.0 RELEASED BY SOURCE IT GROUP

Category:Uncategorized

The Source International IT Team released the first version SIS 6.0 live online at 13:00PM May 8th, Beijing Time, and 1:00AM May 8th, USA Eastern Daylight Time)

The SIS 6.0 release is a huge makeover and simplification of the SIS Platform with increased digitation of operational and product data and enhanced speed and search ability. New Features and Enhancements Were Packed Into SIS 6.0!:

  1. Project/product page the center of the SIS Universe was completely redesigned and re-formated.

2.       Digitized the PSS/QAP (Product Tech Packs) in Product Module. 

3.       Updated Item # and Item Name on summary pages

4.       Enhanced Replication. Supports replication of variable information from different items.

5.       Automated order entry to import from pre-formated spreadsheet.

6.       Updated Ship Date on Summary

7.       Updated Logistics and Release shipment functions.

8.       Add Tooling Refund information.

9.       Add Factory Audit module

10.   Update on CAP Module.

11.   Digitize Inspection report and deploy in the field on smartphone devices.

12.   Support to drag & drop to upload images, photos and other attachments.

13.   More security and control.

14.   More compatible and visible across all mobile devices.

15.   Simplification.

Our cloud-based Supply Information System (“SIS”) platform helps our customers eliminate gaps in the product concept to delivery process and provides our whole integrated teams real-time, 24/7, end-to-end visibility on the status of all supply chain activities through a private, secure, personal portals. Imagine having all of your product engineering, quotation, new product development, samples, purchase orders, production status, inspection reports, and shipping data at your fingertips anytime with the click of a button!

Source International’s SIS software makes all the difference in meeting global manufacturing and supply chain management needs and being up-to-date about the status of each and every one of your products. After all, your products are the lifeblood of your business.

Contact us for more information on our SIS operating system platform and about how we can add value to your global supply chain.


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ASIA MANUFACTURING COST DRIVERS REPORT

Category:Uncategorized

                         Q1 – 2019 (Jan, Feb, Mar)

Executive Summary

The commodity price trends in the first quarter are mixed in Asia. Many grades of Rubber, Metals, Wood, Paper, Ceramics raw materials prices were mostly down in price. While some grades of Steel, Alum, Textiles and Fuel prices were all go up. Also Labor rates were up in the lower wage countries. The trend for World Container Index was down. Only Plastics prices were mixed. The US Dollar was down a little bit against most of the Asian currencies in Q1. China imports saw slightly up while exports saw an obviously decline in this quarter. The China PPI was steady, and the China CPI was up marginally. The PMI USA indexes saw slightly down in Q1 while PMI China and PMI Hong Kong saw marginally improvement. Below is a chart of the general trends and for all the details, please see the entire report.

Report Details

PLASTICS & RUBBER

– The General Purpose plastic prices were mixed in first quarter. PS (GPPS/688B) and PE (LD400/Injection) were down marginally, while PP (K8303), HIPS (PH88) and PP(Food Grade) prices were all slightly up, with HIPS (PH88) up most which is over 3%, the rest of General Purpose plastic prices were unchanged. Year over year, PE (LD400/Injection), HIPS (PH88) and PVC (S700) prices are down 8.5%, 5.2% and 2.1% respectively, while PP (K8303), HDPE (HHMTR210), PS (GPPS/688B) and PP (Food Grade) are up on the average of 3.9%. Only PET (SE-3030) in price is steady versus one year ago.

– Similarly, the first quarter of engineering plastic prices were mixed, except for PU Foam was unchanged, Nylon (PA66), Nylon (PA6) and ABS were up 3.1%, 2.7% and 1.4% respectively, while PL (L-1250Y) and POM were down marginally. Year over year, ABS in price is obviously down 10.6%, followed by PU Foam is faintly down 1.6%, while the other prices are up on the average of 4.6% versus one year ago.

– Most of the Rubber prices were down in Q1, SCR5 saw a little up which is over 2%. EPDM saw obviously down in price, which was over 8%. Latex, CR prices were all down over 2%, BR9000 was down marginally. NBR price was steady. Year over year, SCR5, Latex and NBR prices slightly up which are over 2%, while EPFM in price is down 8.3%, followed by CR down 3% and BR9000 down 2.6% versus one year ago.

METALS

– For the first quarter of 2019, most of the prices for Carbon Steel were up. Only Steel Wire in price down 2.3%. Hot Roll Steel Tube, Cold Roll Steel Sheet, Pig Iron and Hot Roll Steel Sheet were up on the average of 6.4%, while Cold Roll Steel Tube was steady. Year over year, Steel Wire and Cold Roll Steel Sheet were up 8.9% and 1.1% respectively. While Hot Roll Steel Tube, Hot Roll Steel Sheet and Cold Roll Steel Tube prices are all down slightly, which are over 4%. Pig Iron is unchanged in price versus one year ago.

– In the Stainless Steel part, most of the grades of prices were down in the first quarter, with 410, 420 and 201 in price down on average of 3.8%, but 304 in price was up marginally. The price of 430 was steady. Year over year, all the Stainless Steel prices are down, with 430 is down the most which is over 11%, followed by 420 is down 10%, and other grades of stainless steel prices are down on average about 4.1% versus one year ago.

– All aluminum prices were up faintly in the first quarter. Year over year, 6061 and A00 in price down 4.6% and 0.2% respectively, while the rest of grades in price are up slightly, with 1060 price up 3.5% and 3003 up marginally in price versus one year ago.

– In Other Industrial Metals, all grades trend was up in Q1. Nickel’s price was sharply up 16.6%, followed Brass Rod price up 7.3% and the rest of metals were up a little. Year over year, Nickel and Brass Rod metals prices are up 7.2% and 4.5% respectively. Other metals prices are down slightly, with Zinc price down most which is over 9% versus one year ago.

WOOD, PAPER & TEXTILES

WOOD, PAPER & TEXTILES – Wood prices were slightly lower in Q1, except for Beech Hardwood and Pine Softwood were steady in price, MDF price was down 3%. Year over year, Beech Hardwood and Pine Softwood are up marginally. While MDF price is down 3% versus one year ago.

– While most grades prices of Paper Materials were down in the first quarter, with Kraft and Art paper were both sharply down over 14%, and others were down slightly. Only Corrugated Board price was up 4.6%. Similarly, year over year, all grades of paper in prices are decreasing, with Art Paper enormously down over 18% and others prices down on average of 10.7% versus one year ago.

– Textile fabric prices saw a little change in the first quarter, with Raw Cotton price was up 1.1% in price. While the rest grades prices were steady. Year over year, the grade in prices are mixed, with 100% Polyester Fabric price is significantly up 21.4%, but Raw Cotton price is down 0.9%. The rest of Textiles prices are unchanged versus one year ago.

CERAMIC AND GLASS RAW MATERIALS

 -In Ceramic Raw Materials, the grades in price were slightly down in Q1, with Soda Ash is obviously down 13.6% and Alumina slightly down 1.7% in price, other grades in price were steady. Year over year, Alumina and Glaze prices are both up marginally, while Quartz price is down 3.8%. Other Ceramic and Glass material prices are steady versus one year ago.

FUEL

Fuel prices in China were generally going up, with LPG , Diesel Oil and Natural Gas prices were obviously down in the range of 3% ~15% in the first quarter. However, Petroleum price was sharply down 15.4%. Meanwhile, year over year, except for Petroleum price is down over 15% , the rest fuels are up slightly in price between 6%~10% versus one year ago.

OCEAN FREIGHT

The World Container Index was sharply down 16.3% in the first quarter. To the contrary, year over year, the World Container Index is obviously up 13% versus one year ago.

COST OF LABOR

Most of the Asian labor rates were up in Q1, with Bangladesh rate was significantly up 50.9%, followed by Indonesia rate up 9.4%, Vietnam and China rates are up over 2%. Thailand rate is no change. Similarly, year over year, rates are up in most countries with Bangladesh rate is sharply up the most (over 50%) followed by Indonesia (up 9.4%), China (up 7.8%), Vietnam and India both up over 5%, while Thailand rate is unchanged.

CURRENCY EXCHANGE RATE

The World Container Index was sharply down 16.3% in the first quarter. To the contrary, year over year, the World Container Index is obviously up 13% versus one year ago.

For the first quarter, the USD was slightly weaker against the Thailand Baht, Indonesian Rupiah, India Rupees, China RMB, Chinese Yuan and Taiwan New Dollars, while slightly strength against Bangladesh Taka and Vietnam Dong. Year over year, the biggest gains for the USD are against the India Rupees and followed by China RMB, Taiwan New Dollars, Indonesia Rupiah and Vietnam Dong and while its slightly weaker against the Thai Baht.

CHINA TRADE (Data lags by one month)

– China Imports was slightly up 1.16% and Exports was obviously down 10.22% in the first quarter. To the contrary, year over year, China Imports is largely down 7.3 while Exports are sharply up 14.1 versus one year ago.

– The China Consumer Price Index (CPI) was faintly up 0.39% while the China Producer Price Index (PPI) is unchanged in the first quarter. Year over year, the China PPI is down 2.62% while the China CPI is up marginally versus one year ago.

PURCHASING MANAGERS INDEX (PMI)

China PMI and Hong Kong PMI were both down slightly. Only UAS PMI was slight down 0.18% in the first quarter. Year over year, China PMI, Hong Kong PMI and USA PMI are all down slightly, with UPS PMI down most which is over 8% followed by China PMI down 7.46% versus one year ago.

CONTACT US FOR MORE INFORMATION

Thank you for taking the time to follow trends in Asia manufacturing. Source International has operational offices in Louisville, Kentucky & Xiamen, China. Our passion is to partner with companies in supply management from Asia. We have a 25 year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff. We welcome the opportunity to show you how we can add value to your supply chain in Asia and invite you to visit our offices and website to learn more about us.

For additional details, please refer to the charts that follow or contact one of our Operations Specialists for more information. Thank you for your support.

Visit our :http://www.sourceint.com/

Data for this report comes from the sources listed and while every attempt is made to be as comprehensive and accurate as possible, please consider that these are just general trends and you should not draw any specific conclusions from the data. We recommend that any information provided in this report be weighed against other sources and experts on the individual topics covered and\, accordingly, we make no specific claims nor assume any liability from the use of the data contained herein.


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ASIA MANUFACTURING COST DRIVERS REPORT Q4

Category:Cost Drivers Report

Executive Summary
The commodity price trends in the fourth quarter are mostly down in Asia. Many grades of Plastics, Rubber, Steel, Alum, Metals, Paper, Textiles raw materials and Fuel prices were mostly down in price while some grades of Wood, Freight went up in price. Labor rates were steady in the lower wage countries, and Ceramics price was mixed. The US Dollar was down a little bit against most of the Asian currencies in Q4. China imports and exports saw sharply down in this quarter. The China PPI and the China CPI were both down slightly. The PMI Hong Kong indexes saw a slightly improvement in Q4 while PMI China and PMI USA saw marginally down. Below is a chart of the general trends and for all the details, please see the entire report.

Report Details

PLASTICS & RUBBER
– Except for PET (SE-3030) was unchanged, the rest of General Purpose plastic resin prices were down in the fourth quarter, PP (K8303), HIPS (PH88), PP (Food Grade), PS (GPPS/688B) and PE (LD400/Injection) were down on the average of 10.8%, the others down in price marginally. Year over year, the prices is mixed. PE (LD400/Injection) and HIPS (PH88) prices are down 10.1% and 8.2% respectively, and PP (Food Grade) and PS (GPPS/688B) are down slightly, while HDPE (HHMTR210), PP (K8303) and PVC (S700) are up mildly in price versus one year ago.

– Engineering plastic prices were all down in the fourth quarter, ABS price was obviously down 11.9% and the balance plastic prices were down marginally. Year over year, ABS in price is down the most at 18.5% followed by PU Foam down 2.6%, while Nylon (PA66) and POM prices are up 6.0% and 9.6% respectively, and the others are only up marginally in price versus one year ago.

– Most of the Rubber prices were down in Q4, BR saw a huge down in price, which was over 19% and Natural, Latex, SCR5 and CR prices were all down over 2%. NBR and EPDM prices were steady. Year over year, SCR5 and Latex prices are down largely which are over 12% and BR down slightly, while EPFM up 9.1% , followed by CR up 6.3% and NBR up marginally versus one year ago.

METALS
– For the fourth quarter of 2018, all the prices for Carbon Steel were down, with Hot Roll Steel Tube was down the most which was over 19%, followed Pig Iron was down 12%, and others were down on the average of 9.7%. Similarly, year over year, the trend is all down with Hot Roll Steel Tube down the most at 21.1%. Others are down on the average of 10.6% versus one year ago.

– In the Stainless Steel part, all grades of prices were down in the fourth quarter, with down on average about 3.9%. Similarly, year over year, the trend is down, with 430 is down the most that over 14%, and other grades of stainless steel is down in price on average about 5.5% versus one year ago.

– All aluminum grades were down faintly in price in the fourth quarter. Year over year, all prices are down in price, with 6061 is down the most which is over by 12% followed A00 and 3003 down 6.8% and 4.6% respectively, and 1060 price is down marginally.

– In Other Industrial Metals, all grades trend was down in Q4. Nickel’s price was down by 14.8%, followed Copper down 4.1% in price and the rest of metals were down a little. Year over year, most of metals prices are down, with Nickel down most (close to 14%) followed by Nickel down 6.1%, Copper and Brass Rod are both down 3.1% versus one year ago.

WOOD, PAPER & TEXTILES
– Wood prices were slightly higher in Q4 except MDF was steady in price. Year over year, MDF’s price increase over 6% and Beech Hardwood over 3% respectively, and the Pine Softwood is up marginally.

– While all grades prices of Paper Materials were down in the fourth quarter, with Corrugated Board price was sharply down 16.1%, and others were down slightly. Meanwhile, year over year, all grades of paper in prices are decreasing, with Art Paper down over 11% and others prices down on average of 5.9% versus one year ago.

– Textile fabric prices saw little change in the fourth quarter with 100% Polyester Fabric and Raw Cotton down 9.7% and 5.9% respectively, while the rest were steady. Year over year, the grade in prices are mixed, with 100% Polyester Fabric up over 11.1%, but Raw Cotton is down in price at 2.5% while the rest are unchanged versus one year ago.

CERAMIC AND GLASS RAW MATERIALS
-In Ceramic Raw Materials, the grades in price were mixed in Q4. Except for Feldspar was unchanged, and Alumina and Quartz were down 10.8% and 2.6% respectively, while other grades in price were up slightly. Meanwhile, year over year, Soda Ash, Quartz Glass Grade Sand and Glaze are all down marginally while Kaolin and Feldspar are steady. Only Alumina is up 4.2% versus one year ago.

FUEL
Fuel prices in China were generally going down with LPG , Natural Gas and Diesel Oil were significant down in the range of 21% ~35% in the fourth quarter, and year over year, except for Petroleum is unchanged, Natural Gas is slightly down 7.4% and the rest fuels are down significantly in price between 26%~31% versus one year ago.

OCEAN FREIGHT
The World Container Index was slightly up 0.88% in the fourth quarter. Year over year, the World Container Index is sharply up 30% versus one year ago.

COST OF LABOR
Most of the Asian labor rates saw no change, except for India labor rates saw slightly up in the fourth quarter. Year over year, rates are up in most countries with Indonesia up the most (over 7%) followed by Thailand (up 6.56%), Vietnam (up 6.13%), China (up 5.22%) while India labor rate is down 13.45%. Bangladesh is unchanged.

CURRENCY EXCHANGE RATE
For the fourth quarter, the USD was slightly weaker against the Bangladesh Taka, Vietnam Dong, Thailand Baht, Chinese Yuan, Indonesian Rupiah while slightly strength against Taiwan New Dollars, and India Rupees. Year over year, the biggest gains for the USD are against the India Rupees and followed by China RMB, Taiwan New Dollars, Indonesia Rupiah and Vietnam Dong and while its slightly weaker against the Thai Baht.

CHINA TRADE (Data lags by one month)
– China Imports was obviously down 15.85% and Exports was slightly down by 2.43% in the latest fourth months. Similarly, year over year, China Imports and Exports are down by almost 7.34% and 4.57% respectively.

– The China Producer Price Index (PPI) and the China Consumer Price Index (CPI) were both slightly down 3% and 0.59% respectively in the fourth quarter. Year over year, the China PPI is down 3.81% while the China CPI is up marginally versus one year ago.

PURCHASING MANAGERS INDEX (PMI)
USA and China PMI were both down slightly. Only Hong Kong PMI was slight down 0.21% in the fourth quarter. Year over year, China PMI and Hong Kong PMI is down slightly while USA PMI is unchanged versus one year ago.

CONTACT US FOR MORE INFORMATION

Thank you for taking the time to follow trends in Asia manufacturing. Source International has operational offices in Louisville, Kentucky & Xiamen, China. Our passion is to partner with companies in supply management from Asia. We have a 25 year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff. We welcome the opportunity to show you how we can add value to your supply chain in Asia and invite you to visit our offices and website to learn more about us.
For additional details, please refer to the charts that follow or contact one of our Operations Specialists for more information. Thank you for your support.

Visit our website at:   http://www.sourceint.com/

Data for this report comes from the sources listed and while every attempt is made to be as comprehensive and accurate as possible, please consider that these are just general trends and you should not draw any specific conclusions from the data. We recommend that any information provided in this report be weighed against other sources and experts on the individual topics covered and\, accordingly, we make no specific claims nor assume any liability from the use of the data contained herein.


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ASIA MANUFACTURING COST DRIVERS REPORT Q3

Category:Cost Drivers Report,Education,Manufacturing Tags : 

The commodity price trends in the third quarter in Asia are mostly up. Many grades of Plastics, Rubber, Steel, Alum, Wood and Paper raw materials rose in price while some grades of Metals, Textiles and Ceramics went down in price. Petroleum and fuel prices were up in this quarter and labor rates were steady in the lower wage countries. The US Dollar rose moderately against most of the Asian currencies in Q3. China imports and exports saw up in the quarter. The China PPI was down slightly while the China CPI was up slightly. The PMI USA and Hong Kong indexes saw a slightly improvement in Q3 while PMI China saw a little marginally down. Below is a chart of the cost driver trends in 2018-Q3 and for all the details, please see the entire report.

si asia manufacturing cost drivers report 18Q3

ASIA MANUFACTURING COST DRIVERS REPORT DETAILS

PLASTICS & RUBBER
– All General Purpose plastic resin prices were up in the third quarter, PP(K8303) and Food Grade are up significantly (on average about 8.9%) and the others only up in price marginally. Year over year, PVC and PE prices are down 7.2% and 4.3% respectively. But most plastic prices remain up in price versus one year ago. PP (K8303) is up the most (close to 22%), followed by PP up 13.7% and PS up 9.6% while PET price is unchanged.
Source international cost drivers report 2018 Q3

– Engineering plastic prices were more mixed with Nylon and Nylon (PA6) and POM prices up by 6.6%, 5.4% and 4.1% respectively, while ABS and PU Foam prices were down slightly. Year over year, ABS up in price the most at 21.4% followed by Nylon up over 11% and the others only up in prices marginally, while ABS and PU Foam were down marginally in price versus one year ago.

– Most of the Rubber prices were up in Q3, BR saw a huge up in price, up over 22% and Latex, SCR5 and CR prices were all up over 5%. NBR is the only one which down marginally in price. EPDM price is unchanged. Year over year, CR and EPDM prices up sharply which are over 19% and BR and NBR up slightly, while Latex and SCR5 down marginally versus one year ago.
Source international cost drivers report 2018 Q3

METALS
– For the third quarter of 2018, most of the prices for Carbon Steel were up, with Steel Wire is up most which was over 12% followed Pig Iron was up 8.5%, others were up marginally. Only Hot Roll Steel Sheet in price was down a little. Year over year, the trend is all up with Cold Roll Steel Tube and Pig Iron up over14% and others up slightly.
Source international cost drivers report 2018 Q3

– In the Stainless Steel part, 201, 410 and 304 prices were up on average about 3% while 420 and 430 grade down a little in the third quarter. Year over year, the trend is down with most grades of stainless steel down in price on average about 9%. Except for 304 price is up 3.7%.

– All aluminum grades rose faintly in price in the third quarter. Year over year, all prices were down in price, with 6061 is down the most which is over by 27% followed 3003 and A00 down 13.6% and 11.1% respectively, and 1060 price is down marginally.
Source international cost drivers report 2018 Q3

– In Other Industrial Metals, all grades trend was down in Q3. Nickel’s price was down by 11%, followed Zinc down 7.2% in price and the rest of metals were down a little. Year over year, most of metals prices are up, with Nickel is up most (close to 14%) and Copper and Brass Rod are both up 2.6% while Zinc price is down 12.8% versus one year ago.
Source international cost drivers report 2018 Q3

WOOD, PAPER & TEXTILES
– Wood prices inched slightly higher in Q3 except Pine and MDF is steady in price. Year over year, MDF’s price increase over 13% and the others only up marginally.
Source international cost drivers report 2018 Q3

– Meanwhile most grades prices of Paper Materials were no change except for Corrugated Board price down 4.1% in the third quarter. Year over year, most of the paper prices are decreasing, with Corrugated Board down over 16% and others prices down a little. Only Art Paper is steady.
Source international cost drivers report 2018 Q3

– Textile fabric prices saw little change in the third quarter with Raw Cotton down slightly and the rest were unchanged. Year over year, the grade in prices are mixed, with Raw Cotton and Polyester Fabric up in price t at 2.4% and 0.3% respectively while the 100% Polyester Fabric and 100% Cotton Fabric are down marginally.
Source international cost drivers report 2018 Q3

CERAMIC AND GLASS RAW MATERIALS
-In Ceramic Raw Materials, only Alumina price was up over 23%, while in Feldspar, Soda Ash and Kaolin were down in price on average 4.6% and rest were down marginally. Year over year, Feldspar, Kaolin and Quartz are all up marginally while rest were down, with Soda Ash is down in price the most by 16%, followed by Alumina down 5.9%, Glass Grade Sand and Glaze were down slightly versus one year ago.

Source international cost drivers report 2018 Q3

FUEL
Fuel prices in China were generally going up with LPG and Diesel Oil were significant in the range of 25% ~32% in the third quarter, and year over year, except for Petroleum is unchanged, the rest fuels are up significantly in price between 21%~29% one year ago.

OCEAN FREIGHT
The World Container Index was up 13.7% in the third quarter. Year over year, the World Container Index was sharply up 31% versus one year ago.

COST OF LABOR
Asian labor rates saw no change in the third quarter. Year over year, rates are up in most countries with Indonesia up the most (over 7%) followed by Thailand (up 6.6%), Vietnam (up 6.1%), China (up 5.2%) while India labor rate down 13.5%. Bangladesh was unchanged.

CURRENCY EXCHANGE RATE
For the third quarter, the USD is obviously strengthened slightly against the Thailand Baht, Chinese Yuan, Taiwan New Dollars, India Rupees, Indonesian Rupiah, Vietnam Dong and Bangladesh Taka. Year over year, the biggest gains for the USD are against the Indonesian Rupiah and India Rupees China RMB, Thailand Baht, Vietnam Dong and Indonesia Rupiah while its slightly weaker against the China RMB and Thai Baht.

CHINA TRADE (Data lags by one month)
– China Imports and Exports were both up by 11.36% & 4.61% respectively in the latest third months. Similarly, year over year, China Imports and Exports are up obviously by almost 15%.

– The China Producer Price Index (PPI) gone down 1.1% in the third quarter while the China Consumer Price Index (CPI) rose slightly. Year over year, the China PPI is down 3% while the China CPI is up slightly versus one year ago.

PURCHASING MANAGERS INDEX (PMI)
USA and Hong Kong PMI were both up slightly. Only China PMI was down 0.7% in the third quarter. Year over year, China PMI and Hong Kong PMI is down slightly while USA PMI is up slightly versus one year ago.

CONTACT US FOR MORE INFORMATION

Thank you for taking the time to follow trends in Asia manufacturing. Source International has operational offices in Louisville, Kentucky & Xiamen, China. Our passion is to partner with companies in supply management from Asia. We have a 25 year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff. We welcome the opportunity to show you how we can add value to your supply chain in Asia and invite you to visit our offices and website to learn more about us.
For additional details, please refer to the charts that follow or contact one of our Operations Specialists for more information. Thank you for your support.
Visit our Linked-In Page

Data for this report comes from the sources listed and while every attempt is made to be as comprehensive and accurate as possible, please consider that these are just general trends and you should not draw any specific conclusions from the data. We recommend that any information provided in this report be weighed against other sources and experts on the individual topics covered and\, accordingly, we make no specific claims nor assume any liability from the use of the data contained herein.


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EXPERIENCE THE FUTURE OF MANUFACTURING AND PRODUCT DEVELOPMENT

Category:Education,Metals

FABTECH 2018 – Manufacturing and Product Development Expo

Experience the future of manufacturing and product development. Join us at FABTECH from November 6-8 at the Georgia World Congress Center in Atlanta where the metal forming, fabricating, welding and finishing community come together to see what’s new and what’s next. Source International will be giving a presentation on Smart Manufacturing Product Development Process: Get to Market Faster on Thursday, November 8, 2018 from 10:30 AM – 12:30 PM.

FABTECH is where connections are made and where deals get done. See cutting-edge exhibits, learn from expert-led education, network with peers and more,.Over 1,500 leading manufacturers all in one place with solutions aimed at increasing productivity and profitability. Bring your team to experience three action-packed days of hands–on demos, new product launches, education, and networking. Whatever you need to advance and move forward in manufacturing, you’ll find it at FABTECH.  With targeted technical, operational, economic and managerial sessions, you’ll discover the solutions you need to improve productivity and increase profits. Network with peers, learn from top industry experts, exchange best practices and explore the latest technology and advancements in the industry.

Contact us for more information and set up a meeting with us in Atlanta to learn how Source International’s supply programs can add value to your new product development efforts.

So register today using this 30% discount code and we look forward to seeing you at FABTECH 2018!



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APICS 2018

Three Tips For Ensuring Quality At Outsourced Suppliers

Category:Education

APICS 2018 – Three Tips For Ensuring Quality At Outsourced Suppliers

Thanks to everyone who attended “Three Tips For Ensuring Quality At Outsourced Suppliers” at the 2018 APICS conference in Chicago October 2nd. The topic drew a great crowd with lots of good input and questions from the attendees. 

Ensuring quality At Outsourced Suppliers

EXCERPT: Manufacturing your company’s products at outsourced suppliers, whether onshore or offshore, isn’t just about lowering costs. Managing the quality of output among your outsourced suppliers is critical and can greatly impact your bottom line, your operational efficiencies, and your organization’s credibility. This session presents an aggressive, comprehensive three-step program to accurately assess the level of quality risk at an outsourced supplier; create effective, quality documentation that will ensure expectations are met on both sides; and to set up metrics that will measure supplier performance and provide a benchmarking system to gauge future improvement. By employing these three steps in a comprehensive and integrated program, your organization can effectively ensure the quality among your network of outsourced suppliers.

A copy of the presentation is available for download HERE.  Please feel free to share it. A lot is happening at APICS as they transition into life as ASCM.  FYI, the 2019 conference is scheduled to be in Las Vegas….hope to see you there!

And, please contact us for more information and to set up a meeting with us to learn how Source International’s supply programs can add value to your outsourcing efforts.

Also, please note that we’ll be presenting again at FABTECH in Atlanta on Thursday, November 8, 2018 from 10:30 AM – 12:30 PM on Smart Manufacturing: Product Development Process: Get to Market Faster. Hope to see you in Atlanta!  Register today using this 30% discount code and we look forward to seeing you at FABTECH 2018!

 


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sourceint.com

TEN MILES BLUE MOUNTAIN SUMMER PARTY

Category:Awards,Valued Client News

TEN MILES BLUE MOUNTAIN SUMMER PARTY

Aug. 25, Fujian Province, China.

Source International Xiamen Team held a fun summer party in the beautiful Ten Miles Blue Mountains of Fujian Province, which is famous for its sea of flowers and the air.

In the beautiful and fresh nature, the teams played three games. The first game was called kangaroo jump which need to put their feet into the bag. The second was “number convey game ” for testing everyone’s tacit understanding. The last and the most exciting game was “Rip the nametag off.

We feel the powerful force of energy, motivation, and teamwork. The championship team was awarded by Jeff.

We all drunk a toast to this happy time.

CONTACT US TO LEARN MORE ABOUT OUR SUPPLY MANAGEMENT PROGRAMS


Who We Are

Source International has operational offices in Louisville, Kentucky & Xiamen, China. Our passion is to partner with companies in supply management from Asia. We have a 25 year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff. We welcome the opportunity to show you how we can add value to your supply chain in Asia and invite you to visit our offices to understand better our procedures & the scale of our operations.

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