Category Archives: Global Contexts

Yuan currency swaps and trade with Pakistan, Thailand and Argentina

An article in the Sourcing Journal (Dec 28, 2011 news@sourcingjournalonline.com) describes a decision by the Chinese govt to permit yuan currency swaps with Pakistan, Thailand and Argentina. For example, 10 billion yuan were exchanged for 140 billion Pakistan rupees. Thus … Continue reading

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Rising US steel prices, global demand trends and supply chain impact

An article in the Wall Street Journal (Dec 24, 2011) describes a 25 % rise in steel prices due to increased US demand from automakers and steel pipe demand for natural gas extraction. But as demand in China decreases, and … Continue reading

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The impact of HR 2245 “Preserving Access to Life Saving Medications Act 2011”

Bill HR 2245 plans to require drug manufacturers to notify the Federal govt, 6 months in advance, of potential shortages. Shortages are defined as situations where the total supply is less than observed demand. The Federal govt is then required … Continue reading

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The global supply chain for Michael Kors and impact

An article in the New York Times (Dec 20, 2011) describes Michael Kors Holding, an apparel company that generates 95 % of its revenues in the US and Canada, makes its apparel in Asia, and is incorporated in the British … Continue reading

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Reverse Logistics – managing the US Army withdrawal from Iraq

An article in Bloombergbusinessweek (Dec 19, 2011) describes the management of the ramp down in Iraq, with 2 million items to be accounted for removal. The choices (1) donate to Iraq,(2) ship back to the US Army for use, (3) … Continue reading

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Reducing design elements to improve supply chain performance at Lego

An article in Bloombergbusinessweek (Dec 19,2011) describes Lego’s decision to outsource themeparks, sell the entertainment division and decrease the number of design elements available to designers from 12,900 to 7,000. The company describes each new element as creating both mold … Continue reading

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Ebooks more expensive than paper ?

An article in the Wall Street Journal ( Dec 15, 2011) describes a decision by book publishers to dictate retail prices for ebooks, with retailers requiring permission before discounting. Given that used paper book prices are set by market trends, … Continue reading

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How many domestic automakers does China need ?

An article in Bloombergbusinessweek (Dec 19, 2011) describes China’s auto sector has having 70 automakers with 55 of them accounting for 11 % of sales.  Foreign automakers account for 58% of sales.  The Chinese government plans to further concentrate the … Continue reading

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Swatch’s plans to cut back component sales to competitors and supply chain impact

A New York Times article (Dec 10, 2011) describes a decision by the Swatch Group to cut back sales (to 85 % of 2010 levels and ultimately to zero) of components to competitors. Buying these components from Swatch had enabled … Continue reading

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Used US car batteries, EPA regulation and Mexican pollution

An article in the New York Times (Dec 9, 2011) describes the EPA regulation of lead recycling from the 97 % of batteries recycled, the consequent cost impact of these regulations of $ 20 million in capital investments to comply, … Continue reading

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