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Monthly Archives: January 2012
Apple’s public release of its supplier audit and impact
An article in the Wall Street Journal (Jan 16, 2012) describes Apple’s decision to publicly release its supplier audit. The report includes 229 audits in China and problems with 112 locations and requires suppliers to (a) improve conditions at plants, … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged Capacity, China, Consumers, Cost, Global, manufacturing, regulation, Supply Chain
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Momentum Accounting and supply chain impact
An article in the Wall Street Journal (Sept 27, 2011) described a “momentum accounting” decision by Diamond Foods to pay walnut growers about 25 cents a pound or more. The company described it as an attempt to maintain profitability of … Continue reading
Posted in Operations Management, Supply Chain Issues
Tagged Cost, Legal, Low Margins, Margins, Suppliers, Supply Chain
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The Berry Amendment for US Army sourcing and global supply chain impact
An article in Bloombergbusinessweek (Jan 16,2012) describes the impact of the Berry Amendment, a 1941 amendment requiring self sufficiency of Army supplies. A current plan to have combat clothing made of silk to reduce the impact of IEDs (improvised explosive … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged Capacity, Design, Global, Imports, regulation, Suppliers, Supply Chain, Sustainable
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From China to Cambodia – shifts in the global apparel supply chain
An article in Bloombergbusinessweek (Jan 16,2012) describes the impact of the rising yuan, environmental rule enforcement and rising wages (18 to 20% annually the past three years) driving manufacturing to locations out of China – such as Cambodia. With weekly … Continue reading
Using the GSP program with Egypt to import duty free to the US
An article covering a speech by US officials (http://thedailynewsegypt.com/trade/us-trade-officials-urge-egypt-to-utilize-gsp-program.html) describes Egypt’s GSP (Generalized System of Preferences) program with the US. Exporters can apply to have their products listed under GSP and thus export duty free to the US. Current duty … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged Collaboration, Cost, disruption, Global, regulation, Risk, Service, Supply Chain
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Global Apparel Sourcing Trends
An article in Sourcing online (http://www.sourcingjournalonline.com/wheres-and-whys-2012-apparel-sourcing-trends) describes rising labor costs in China and its impact. The article cites lead time, flexibility and variety as issues to consider in sourcing. Vietnam benefits from being close to mills in China, Bangladesh has … Continue reading
Solarthermal approach to store solar energy and supply chain impact
An article in the New York Times (Jan 4, 2012) describes solarthermal techonolgy- using salt to store the heat generated from solar energy, with release of this heat to create electricity at a later time.The resulting heat can be used … Continue reading
Free ecommerce shipping, online sales, supply chain impact
An article in the New York Times (Jan 4, 2012) describes the 15 % growth in ecommerce sales this year compared to last year. 92% of the online sites offered free shipping and retruns. The resulting surge caused FedEx to … Continue reading
Posted in Ecommerce, Service Operations, Supply Chain Issues
Tagged Capacity, competition, Consumers, Coordination, Cost, Ecommerce, Growth, shipping, Supply Chain, Survival
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FDA restrictions on some antibiotics use in agriculture
An article in the New York Times (Jan 4, 2012) describes FDA plans to restrict use of cephalasporins in agriculture. These antibiotics are used to treat strep and bronchitis and by surgeons. But they are also used on animals, with … Continue reading
Posted in Collaboration, Operations Management, Supply Chain Issues, Sustainability
Tagged competition, Consumers, Cost, Risk, Service, Supply Chain
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Real time analytics and Schwan food sales growth
An article in the Wall Street Journal (Jan 4,2012) describes Schwan Foods network of 6,000 home delivery drivers and their use of real time data analytics. Operasolutions, an analytic consulting company, mines purchase patterns to identify a … Continue reading
Posted in Ecommerce, Service Operations, Supply Chain Issues
Tagged Consumers, Coordination, Ecommerce, Efficiency, Growth, river transport, Service, software, Supply Chain, Trends
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Global Supply Chain Musings 