Categories: Blog

MAY 2024

Good Morning, Good Evening, and Goodnight,

Welcome back to another market update, in this journal I’m going to talk about the supply chain events in a retrospect of this month. This month’s journal will capture an overall update over the past topics in previous months discussed.

The sole purpose for me to do this is to spark a conversation with you in the future and maybe gain perspective of your thoughts and strategies.

“Wealth is not about having a lot of money. It’s about having a lot of options”-Daivik Suresh

In this journal I’m going to Daiiv into supply chain updates, market insights, and more into innovations. This is the fifth journal for 2024 and I’m excited to share that all my journals are published on my personal website: Daiviksuresh.com

(My close network gets PDF journals as soon as they are written, if you would like to be a part of that thread find the best way to connect with me through my website!)

Warning: Market talk ahead. This is not financial advice; most investments carry a risk of losing some or all of the invested capital.

Newest Update!

Crude Oil:

As of May 30, 2024, the WTI futures are trading at $79.14 per barrel, a decrease of 1.49%. This is a significant change from the previous price of $84.83 per barrel. The World Bank’s projection of the average oil price for the remainder of 2024 being around $84 seems to be challenged by the current market conditions.

Hot Topics:

Global Spend:

Ivalua, a spend management giant, teams up with Visa to unlock cash stuck in supply chains. This lets companies leverage corporate cards for more than just regular expenses, improving cash flow and giving them AI-powered control. This is a significant step towards improving liquidity in supply chains. This empowers businesses to use not only cards for traditional expenses but also for a wider range of purchases from catalog purchases, invoices, and even subscriptions or specific projects. This brings all card spend under control, driving business efficiencies and improving cash management. To be able to control your finances with the help of AI to maximize points, rebates, and budgeting.

Digital Twins:

It incorporates various enabling technologies, including sensors, cloud computing, AI, advanced analytics, simulation, visualization and augmented virtual reality. This system allows businesses to tailor their technology mix-based on specific needs and expectations. What makes them so powerful is their ability to emulate human capabilities, support critical decision-making, consolidating shipments, optimizing transportation fleets, testing warehouse layouts, adjusting goods flows based on demand, and implementing predictive maintenance programs. For someone in the language of supply chain, having this type of technology incorporated in their business is HUGE and will only lead to faster and more efficient processes.

Federal Market: The Federal Market is currently under the spotlight due to the inflation scenario. The annual CPI rate for the United States was 3.36% for the 12 months ending April, a slight decrease from the previous rate of 3.5%. The Fed’s target is to keep inflation below 2%, but we are currently sitting above that target.

The Federal Reserve left its key interest rate unchanged at between 5.25% and 5.5%. This decision marks the sixth consecutive meeting at which policymakers have opted to hold rates steady and keeps the federal funds rate at the highest target range in over 23 years.

The biggest question for many economists heading into 2024 was when the Fed will begin cutting rates, something that investors have been hoping will happen soon. But the hotter-than-wanted inflation reports have pushed back the expected timing, raising the stakes for the election season.

In conclusion, the current economic scenario presents both challenges and opportunities. While the inflation situation poses a challenge, technological innovations in the supply chain offer immense opportunities for businesses to streamline their operations and improve efficiency. As we navigate through these times, it will be interesting to see how businesses adapt and evolve.

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Sources

Written By:

-DAIVIK SURESH-

Daivik Suresh