Tag Archives: Capacity

London’s port expansion and volume aspirations

A video in the Financial Times (June 11, 2013) describes the expansion of London’s port by Dubai based DP World. The new port is claimed to be the largest logistics park in Europe and appropriate for the UK, given that … Continue reading

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Vertical integration in the US global pharmacy supply chain and impact

An article in the Wall Street Journal (May 21, 2013) describes an alliance between Walgreens, Alliance Boots and AmerisourceBergen to consolidate their global purchasing of generic and branded pharmaceuticals and sell them through their US Walgreens retail stores and AllianceBoots … Continue reading

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Can outsourced manufacturing compliance to agreements be crowdsourced ?

An article in Bloombergbusinessweek (May 20, 2013) describes companies such as LaborVoices and LaborLink that permit employees at manufacturing plants abroad to call in anonymously to report about working conditions. The companies then follow up to verify complaints and thus … Continue reading

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The economics of the $6.75 shirt in Bangladesh

In an article in the Wall Street Journal (May 16, 2013), a manufacturer, Rubana Haq, describes the producer margins in a $6.75 shirt he manufactures. He claims that it costs $4.75 to buy the cotton cloth and $1 for the … Continue reading

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Shifting manufacturing from China to other parts of Asia as costs rise

An article in the Wall Street Journal (May 1,2013) describes decisions by Coach to reduce its manufacturing in China to 50% in 2015 (from 80% in 2011), by Crocs to reduce its footwear manufacturing to 65% this year from 80% … Continue reading

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Steel manufacturer’s competitive response to falling steel prices

An article in the Wall Street Journal (April 27, 2013) describes the decline in steel prices and the response by steel manufacturers. ThyssenKrupp is claimed to offer to pay freight costs to maintain market share. Further price discounts of 5 … Continue reading

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Estimating the impact of new US sulfur limits on fuel on gasoline costs

An article in the Wall Street Journal (March 29,2013) describes the differing estimates of the proposed plans to limit sulfur in fuel to under 10 parts per million (ppm) from the current 30 ppm. Petroleum executives claim a price impact … Continue reading

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Why did J.C.Penney’s stable pricing not work ?

An article in the New York Times (April 14,2013) describes the consumer experience at retailers such as J.C.Penney and the need to enjoy the sale and anchor the value of product sold. J.C.Penney’s attempt to reduce sale items, reduce average … Continue reading

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McDonalds “dual point” service approach and impact

An article in the Wall Street Journal (April 11,2013) describes a new “dual point” service system that replaces the single point cashier assisted delivery. Under the new system, customers pay, receive an order number and walk over to the other … Continue reading

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Natural gas use by the US trucking industry – how fast can it happen ?

An article in the New York Times (April 22, 2013) describes the growing use of natural gas in the US trucks, with the industry consuming over 3 million gallons of diesel fuel daily. Natural gas use is estimated to cut … Continue reading

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