[#221] Supply Chain in Numbers - Mar 4, 2024
7% of iPhones are made in India now, CJ Logistics plans 3 DCs in the US, 156M sqft retail space up for sublease, Family Dollar's $41.7M fine, Wincanton has a new offer for $965M
Welcome to “Supply Chain in Numbers.” This newsletter tracks significant digits from the world of the supply chain. Five prominent numbers are published every Monday. If you have any feedback, please send it to me.
7% of all new iPhones
India’s electronics exports to the US as a ratio of China’s increased to 7.65% in November last year from 2.51% in November 2021, according to London-based Fathom Financial Consulting. In the UK, the share rose to 10% from 4.79%. India houses Samsung’s biggest mobile phone factory. At the same time, Apple Inc. makes at least 7% of all its iPhones in India through its contract manufacturers Foxconn Technology Group and Pegatron Corp. Indian companies have been touting their role in multinationals’ ‘China plus one’ strategy, which sees manufacturers developing back-up capacity in other countries. [AJOT]
3 DCs in the US
CJ Logistics, the Korea’s largest logistic firm, affiliated with retail giant CJ Group, is accelerating its overseas expansion this year. CJ Logistics, commanding 45 percent of Korea’s domestic parcel delivery market, has been steadily expanding its presence to 34 countries and 271 cities in its push for global expansion. Out of total sales of 11.8 trillion won ($8.86 billion) last year, overseas revenue accounted for 4.2 trillion won. With an investment of about 600 billion won, the US project is slated for phased completion starting in the first half of 2026. The project will see the establishment of DCs at three locations — two in Chicago and one in New Jersey. [Korean Herald]
156 million sqft available for sublease
Retailers are cutting back on storage space, meaning many are subleasing that space, and the warehousing market is flush with available supply. The market exploded in 2022, with rents up 24 percent yearly, vastly higher than in 2019, when rents rose just 6.3 percent. In 2023, rent hikes slowed down, up 12.5 percent year over year. In the final quarter of 2023, the warehouse space available for sublease was 156.2 million square feet, up from 75.6 million square feet a year earlier. [NumLock]
$41.7 million fines for rodent-infested warehouse
Family Dollar Stores, a subsidiary of Dollar Tree pleaded guilty to holding food, drugs, cosmetics and other items under “insanitary” conditions at a now-closed, rodent-infested distribution center in West Memphis, Arkansas. The plea deal includes a fine and forfeiture sentence totaling $41.675 million. and requires Family Dollar and Dollar Tree to meet robust corporate compliance and reporting requirements for the next three years. its Arkansas distribution center shipped FDA-regulated products to more than 400 Family Dollar stores in Alabama, Missouri, Mississippi, Louisiana, Arkansas, and Tennessee. According to the plea agreement, the company began receiving reports in August 2020 of mouse and pest issues with deliveries to stores. [ABC News]
$965 million offer for 16.4 million sqft
The battle for U.K. logistics business Wincanton is now a bidding war. A new offer from U.S.-based GXO Logistics of about $965 million raises the ante on a bid by rival Ceva Logistics by about 26%, and it’s well ahead of the $716.5 million that Ceva first put up for Wincanton in January. Wincanton isn’t a significant global logistics presence. Still, with about $1.8 billion in revenue in its last fiscal year, the contract logistics company is a force in Britain. It counts big customers along with 16.4 million square feet of space across 160 locations.[WSJ]