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Monthly Archives: February 2012
Sustainable chemicals sourcing at P and G
An article in the website Sustainable Brands (http://www.sustainablebrands.com/news_and_views/articles/procter-gamble-developing-sustainable-chemicals-biofuel-company) describes Proctor & Gamble’s use of Zeachem, a cellulosic biorefinery manufacturer that uses raw material from poplar and agricultural residues and uses natural bacteria that produce no Co2 during fermentation. The consumer … Continue reading
Mexico’s gain at China’s rising cost expense ?
An article in the Wall Street Journal (Feb 6, 2012) describes data that trains and trucks carried 9 % more freight last year from Mexico to the US, while container traffic from Asia dropped 0.2 %. As we have heard … Continue reading
Regulating copper in brake pads at the state level
An article in the New York Times (Feb 3, 2012) describes a proposal that requires that automobile brake pads decrease the copper content to less than 5 % by 2021 in Washington and less than 0.5 % by 2025 in California. … Continue reading
Posted in Operations Management, Supply Chain Issues, Sustainability
Tagged automobiles, Coordination, Cost, Design, manufacturing, regulation, Supply Chain
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Manufacturer “bonus depreciation” rules and impact
An article in the New York Times (Feb 3, 2012) describes the “bonus depreciation” rule that permits capital investments to be treated as costs for the current year and thus subsidizes equipment purchases. The impact is to incentivize capital investments … Continue reading
Asian container flow to the East Coast, Panama canal width and Long Beach
An article in the Economist (Jan 28, 2012) describes the impact of increased Panama Canal width to handle large ships and the consequent container shipments to the East Coast being sent directly to East Coast ports, rather than being shipped … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability
Tagged Capacity, Containers, Cost, Global, river transport, Suppliers, Supply Chain
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Commodity Prices change direction and supply chain impact
An article in the Wall Street Journal (Feb 1, 2012) describes price declines through the end of December 2011, with fears of European recessionary trends, but price rises though Jan 2012. Copper and corn saw price increases of 15% and … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged Cost, Global, Inventory, Risk, Suppliers, Supply Chain
1 Comment
Regulating Lithium Battery shipments as cargo and associated costs
An article in the Wall Street Journal (Jan 31, 2012) describes a change in regulations by the FAA that barred transport of lithium batteries by air, without appropriate packaging, following a fire and associated crash of a UPS plane carrying … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged Costs, Global, regulation, Risk, Supply Chain
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Private Equity role in turning around manufacturing firms
A Wall Street Journal article (Feb 2, 2012) by Armand Lauzon Jr describes his experience as a private equity company representative with manufacturing firms. Firth Rixson was a metals forging company that he led, and that doubled revenues, improved profitability, added … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged Capability, Capacity, Efficiency, Global, manufacturing, Margins, private equity, Risk, Supply Chain, Survival
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Climate change risks and disclosure rules
An article in the New York Times (Feb 1, 2012) describes a requirement by California to require insurance companies to report on their plans to mitigate the impact of climate change. The data shows that by June 2011, the insurance claims … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability
Tagged Capacity, Cost, disruption, Global, Risk, Service, Suppliers, Supply Chain, Sustainable
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Bringing manufacturing back to the US — and associated profitability
An Accenture report titled “Manufacturing’s Secret Shift” reports a survey that shows that 49 % of respondents faced delivery time issues and 46 % faced quality issues associated with outsourced manufacturing. In addition, 73 % faced material cost increases and … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged Capacity, Cost, Global, Margins, Outsourcing, Quality, Risk, Supply Chain, Trends
1 Comment