Tag Archives: Cost

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

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged , , , , , , , , , , | Leave a comment

Importing garbage to produce energy in Oslo

An article in the New York Times (May 1,2013) describes the city of Oslo’s success in using garbage, with recyclable content removed, to generate heat and electricity. With half the city and all schools supplied by garbage generated energy, supply … Continue reading

Posted in Global Contexts, Supply Chain Issues, Sustainability | Tagged , , , , , , , , | Leave a comment

Differing manufacturer responses to the Bangladesh factory collapse

An article in the New York Times. (May 1,2013) describes the differing public stances by manufacturers. Bennetton, the Children’s Place and Cato Corporation distanced their link to the plant they used as a source, claiming their garments were not on … Continue reading

Posted in Collaboration, Global Contexts, Operations Management, Supply Chain Issues | Tagged , , , , , , , , , | Leave a comment

Slower growth, higher margins as Amazon.com plays middleman

An article in the Wall Street Journal (April 26,2013) describes Amazon.com’s growth as lowing, from 34% last year to 22% for the same quarter this year, while margins increased by 33% to 26.6%. The author claims the slowdown is the … Continue reading

Posted in Operations Management, Supply Chain Issues | Tagged , , , , , , , | Leave a comment

P&G’s claim of “win-win” by delaying supplier payments but enabling borrowing at lower rates

An article in the Wall Street Journal (April 16.2013) describes a plan by Proctor & Gamble to delay supplier payments beyond 60 days as against the current 45 days, to free up over $2 billion in cash. Suppliers would be … Continue reading

Posted in Collaboration, Operations Management, Supply Chain Issues | Tagged , , , , , | 1 Comment

Should patent length vary by industry to spur innovation ?

An article in the Wall Street Journal (April 24,2013) describes a proposal to vary patent protection length by industry, rather than the US standard of 17 years. It reports the chairman of Amazon, Jeff Bezos, as suggesting 3 years as … Continue reading

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged , , , , , , , | Leave a comment

The competitive retail supply chain impact of online US sales tax collection requirements

An article in the Wall Street Journal (April 22,2013) describes the proposed impact of a Senate bill requiring online retailers to collect sales taxes based on buyer location. The goal is to level the playing field for brick and mortar … Continue reading

Posted in Operations Management, Service Operations, Supply Chain Issues | Tagged , , , , , , , | Leave a comment

Samsung vs Apple supply chains for successful cell phones

An article in Bloombergbusinessweek (April 1,2013) describes Apple’s supply chain strategy which outsources all hardware but controls software access and apps to Samsung’s strategy that produces all hardware but uses the Android open source software. Does producing components for competitors … Continue reading

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged , , , , , , , | Leave a comment

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

Posted in Operations Management, Supply Chain Issues, Sustainability | Tagged , , , , , | Leave a comment

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

Posted in Operations Management, Service Operations, Supply Chain Issues | Tagged , , , , , , , , | 1 Comment