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Category Archives: Global Contexts
Food waste and food shortages across the global supply chain
An article in the International Herald Tribune (Oct 15, 2011) describes waste as a key contributor to food shortages. 33 % of food purchased in the UK is wasted. 40 % of the fruits and vegetables grown in India is wasted. … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged Capacity, Consumers, Cost, Food, Global, India, Supply Chain, waste
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Amazon.com – the WalMart of the web ?
An article in the Economist (Oct 1, 2011) reports that Amazon.com’s are 11 % lower than other retailers with physical stores for 100 products selected randomly. The prices at Amazon were even lower compared to store websites. Amazon.com’s low profit margin, scale, the … Continue reading
Airline sustainability goals and biofuel role
A New York Times article (Green Column, Oct 9, 2011) describes the airline industry goal to become “carbon neutral” by 2020 and cut emissions by 50 % by 2050, given that they account for 2 % of all human generated … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged Consumers, Cost, Design, Efficiency, Global, regulation, Supply Chain, Sustainable, Trends
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The Impact of concentration in the Global Electronics Supply Chain
An article in the Economist (Oct 8, 2011) describes how concentration of manufacturing by Taiwanese firms has enabled price decreases and feature increases faster than chip prices. At HTC, new product development time has dropped by six months compared to two … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged chips, competition, Cost, Global, manufacturing, Suppliers, Supply Chain, Taiwan
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Toyota retools in Japan, plans for a weaker yen
A Wall Street Journal article (Oct 7, 2011) describes efforts by Toyota to retool, reduce production batch size and plan to be competitive when the yen gets weaker. This strategy is counter to efforts by other automakers to move production … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged automobiles, Capacity, competition, Cost, exchange rate, Global, Japan, Supply Chain
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Yuan Appreciation, labor flexibility and back to US manufacturing
A Wall Street Journal article (Oct 7, 2011) describes decisons a furniture manufacturer and high end earphone to move production back to the US. The reasons – a 30 % yuan appreciation from 2005 to 2011, US union flexibility and … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged Capacity, China, Cost, Global, manufacturing, Outsourcing
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Otis decides to return manufacturing to an American plant
A Wall Street Journal (Oct 6, 2011) report describes a decision by Otis to move production from Mexico to South Carolina. Reasons cited include (a) 70 % of its customers will be closer to the new plant, (b) Freight and … Continue reading
Posted in Global Contexts, Supply Chain Issues
Tagged Capability, Capacity, Consumers, Cost, freight, Global, logistics, manufacturing, Outsourcing, Supply Chain
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Sprint guarantees Apple it will take 30 million iPhones ?
A Wall Street Journal article (Oct 4, 2011) describes a guarantee by Sprint that it will buy at least 30.5 million iPhones in return for the opportunity to offer those phones on its network. Such volumes in turn enable Apple … Continue reading
Posted in Global Contexts, Operations Management, Service Operations, Supply Chain Issues
Tagged Capacity, competition, Cost, Global, Growth, iPhone, manufacturing, Suppliers, Supply Chain
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Estimating Apple’s potential revenue based on supply chain partner volumes
A Bloombergbusinessweek (Sept 12-16, 2011) article describes the Apple company forecast that sales will drop 12 % this quarter. But analysis of Apple’s outsourced supply base consisting og Foxconn, Samsung etc that provide 75 % of Apple’s cost of goods … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged Capacity, Cost, Global, manufacturing, Outsourcing, Supply Chain
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Using cell phone minutes to save cash in Kenya
A Bloombergbusinessweek article (Sept 12-18, 2011) describes M-PESA – a service offered by Safaricom – Kenya’s largest cell phone company. The system allows a phone owner to save money in the form of cell phone minutes which can be transferred … Continue reading
Posted in Ecommerce, Global Contexts, Operations Management, Service Operations, Supply Chain Issues
Tagged cellphone, Consumers, Cost, Ecommerce, Kenya, regulation, Service, Supply Chain
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Global Supply Chain Musings 