Tag Archives: Cost

Boeing Production Rampup and Supplier Chain Role

An article in the Economist (Jan 28, 2012) describes Boeing’s efforts to speed up airplane production to respond to its eight year order backlog.  But worries about economic downturn have suppliers worried about order cancellations.  With the large fraction of … Continue reading →

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Mongolia’s rapid growth and logistics options

An article in the Economist (Jan 21, 2012) describes the rapid growth of Mongolia’s coal mining industry, with output expected to grow from 16 million tons in 2013 to 240 million tons by 2040. Worried about being too dependent on … Continue reading →

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Traffic jams in New York City and coordination options

An article in the Wall Street Journal (Jan 30, 2012) describes the impact of customer delays on the US economy as $ 100 billion, 0r $ 750 per commuter.  But adding taxis is estimated to increase congestion – the equivalent … Continue reading →

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Supply Chain Coordination issues – Book Publishers, Apple and Amazon

An article in Bloombergbusinessweek (Jan 30,2012) describes the conflict between publishers and Amazon.com ebook pricing plans of $ 9.99, the publisher controlled pricing model for sales on Apple’s iPad (termed agency pricing), and the resulting threat to without sales on … Continue reading →

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Danish wind energy production surges and the cost of smoothing supply

An article in the New York Times (Jan 22, 2012) describes the power surges due to high winds in Denmark and the payment to other countries to take the energy generated.  Surges in wind and the consequent energy generated are … Continue reading →

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Economies of scale vs risk in concentrating hard drive production in Thailand

An article in the New York Times (Jan 20, 2012) describes the quandry faced by hard drive manufacturers in Thailand whose plants were deluged during the floods.  Slow recovery of manufacturing raises the benefit of concentration of this industry (40-45 … Continue reading →

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Apple’s global supply chain and US jobs

An article in the New York Times (Jan 21, 2012) describes Apple’s global supply chain  for the iPhone with suppliers from Germany, Taiwan, Korea, Japan, Europe, rare metals from Africa and Asia and assembly in China. The article highlights the … Continue reading →

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WRAP certification and supplier competitiveness

An article in the Sourcing Journal (https://www.sourcingjournalonline.com/wrap-surge-demand-compliance-certification-emerging-asian-markets) describes the increasing demand for WRAP (Worldwide Responsible Accredited production) from suppliers in Bangladesh, India, Vietnam and Pakistan, in addition to China. As OEMs are forced to certify their supply chains, suppliers with … Continue reading →

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Coal, barges and the global supply chain

An article in Fortune (Dec 26,2011) describes the US barge industry, with each barge having a capacity 15 to 17 times a railcar and more than 60 times a truck, using less fuel per mile and thus lower emissions and … Continue reading →

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Apple’s public release of its supplier audit and impact

An article in the Wall Street Journal (Jan 16, 2012) describes Apple’s decision to publicly release its supplier audit. The report includes 229 audits in China and problems with 112 locations and requires suppliers to (a) improve conditions at plants, … Continue reading →

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