Category Archives: Supply Chain Issues

Understanding Rare Earths Supply Chains – a DOE Report

For supply chain managers interested in rare earth supply chains, a DOE report, available at  http://www.energy.gov/news/documents/criticalmaterialsstrategy.pdf provides a comprehensive summary. Currently, 97 % of the world’s rare earth metals are sourced from China. A few highlights of the report (a) … Continue reading →

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Rising Prices for Coffee, Cotton and Cocoa

A Wall Street Journal article (January 22, 2011) describes rising prices for commodities such as coffee, cotton and cocoa. Reasons for this estimated price increase, as reflected by rising prices of futures, are global.  Significant rainfall in Colombia is expected … Continue reading →

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Choices for Dollar Tree as Commodity prices rise

An article in the Wall Street Journal (January 22,2011) describes the dilemma faced by Dollar Tree – a retailer that charges one dollar for products.  Dollar Tree provides an interesting example of a retailer for whom retail price is not … Continue reading →

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China Control of Rare Earth Mines

A New York Times article (January 21,2011, page B1) describes the takeover of 11  districts in China that have rare earth deposits.  This increased control will let the government be more strategic regarding exports of rare earths but also reduce … Continue reading →

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WalMart and Healthy Food

A New York Times article (January 20, 2011, B1) described WalMart’s announcement to lower salt, fat and  sugars in packaged foods and decrease prices of fruits and vegetables over the next five years. Specifically the company plans to reduce sodium … Continue reading →

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Slow Steaming, Extra Slow Steaming and Antitrust Exemption

A Supply Chain Digest article (January 13, 2011,http://www.scdigest.com/ontarget/11-01-13-1.php?cid=4091) describes discussions between shipping carriers that transport between Asia and the US to slow down speeds and decrease their environmental impact. Slow steaming reduces speed from 25 knots to 18 knots and … Continue reading →

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U.S.Manufacturing jobs grow 1.2 %

A report in the Wall Street Journal (January 19, 2011) describes a 1.2 % growth in manufacturing jobs in the US in 2010, with a projected increase of 2.5 % in 2011. The article also states that while manufacturing output … Continue reading →

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Initiatives to protect the Global Supply Chain

Janet Napolitano, Secretary of Homeland Security, wrote an Op-Ed piece in the Wall Street Journal (Januray 6,2011) describing the challenges and efforts to protect the Global Supply Chain. Products ordered by consumers today may often involve components, subassemblies and packaging … Continue reading →

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US Factory Output, Capacity Utilization Increases

An article in the Wall Street Journal (January 15,2011) reports that US factory output rose 0.8 % in December (from November).  Capacity utilization was reported to increase to 76 % from 75.4 % in November and business inventories increased 0.2 … Continue reading →

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The weak dollar vs Yen and Toyota’s production decisions

An Associated Press article (January 15,2011, http://finance.yahoo.com/news/Toyota-Rising-yen-could-force-apf-1661264517.html?x=0) describes the impact of the current 83 yen to the dollar exchange rate on Toyota’s decisions regarding production. Toyota has the largest Japanese production of all Japanese automakers, and the strong yen decreases … Continue reading →

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