Category Archives: Operations Management

GM, Peugeot Alliance

An article in the New York Times (Feb 29,2012) describes a decision by General Motors to invest in 7% of Peugeot, creating an alliance. The associated $125 billion spend of the two companies is expected to deliver synergies in the … Continue reading

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California’s Supply Chain Transparency Act and Enforcement

An article in Bloombergbusinessweek (Feb 27,2012) describes the California Supply Chain Transperancy Act requiring retailers with more than $100 million in sales to ensure that their supply chains do not involve slave labor. But  the article reports allegations of slave … Continue reading

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Fastenal’s variety competition

An article in Bloombergbusinessweek (Feb 27, 2012) describes the greatest growth compan since 1987 as Fastenal, a distributor of fasteners. Fastenal’s 10,261 pages of fasteners provides the greatest variety of fasteners, available at 2,600 outlets.  Does variety provide a distributor … Continue reading

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iPad Accessory makers and race to be ready for the new version

An article in USA Today (March 6, 2012) describes a race by accessory makers to be ready with products for the new iPad 3, debuting on March 7.  The market for iPad and iPhone accessories is estimated to be $ … Continue reading

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$ 8 billion in fines but still suppliers

An article in USA Today (March 7, 2012) describes the $ 8 billion in fines paid by pharmaceutical companies accused of defrauding Medicare and Medicaid, but with no impact on their supplier status – thanks to them being sole suppliers … Continue reading

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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

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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

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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

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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

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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

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