Tag Archives: Cost

Momentum Accounting and supply chain impact

An article in the Wall Street Journal (Sept 27, 2011) described a “momentum accounting” decision by Diamond Foods to pay walnut growers about 25 cents a pound or more. The company described it as an attempt to maintain profitability of … Continue reading →

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From China to Cambodia – shifts in the global apparel supply chain

An article in Bloombergbusinessweek (Jan 16,2012) describes the impact of the rising yuan, environmental rule enforcement and rising wages (18 to 20% annually the past three years) driving manufacturing to locations out of China – such as Cambodia. With weekly … Continue reading →

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Using the GSP program with Egypt to import duty free to the US

An article covering a speech by US officials (http://thedailynewsegypt.com/trade/us-trade-officials-urge-egypt-to-utilize-gsp-program.html) describes Egypt’s GSP (Generalized System of Preferences) program with the US. Exporters can apply to have their products listed under GSP and thus export duty free to the US. Current duty … Continue reading →

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Solarthermal approach to store solar energy and supply chain impact

An article in the New York Times (Jan 4, 2012) describes solarthermal techonolgy- using  salt to store the heat generated from solar energy, with release of this heat to create electricity at a later time.The resulting heat can be used … Continue reading →

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Free ecommerce shipping, online sales, supply chain impact

An article in the New York Times (Jan 4, 2012) describes the 15 % growth in ecommerce sales this year compared to last year. 92% of the online sites offered free shipping and retruns. The resulting surge caused FedEx to … Continue reading →

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FDA restrictions on some antibiotics use in agriculture

An article in the New York Times (Jan 4, 2012) describes FDA plans to restrict use of cephalasporins in agriculture. These antibiotics are used to treat strep and bronchitis and by surgeons. But they are also used on animals, with … Continue reading →

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EPA Dioxin limit proposal and food supply chain impact

An article in the Wall Street Journal (Jan 4,2012) describes a propsal by the EPA to recommend a 64 picogram limit of dioxin for a 200 lb person. The EPA wants to ensure that prolonged exposure at this limit is … Continue reading →

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Caterpillar’s US plant labor costs vs Canadian costs

An article in the Wall Street Journal (Jan 7, 2012) describes Caterpillar’s assertion tha labor costs in its US plants are 50% of the costs in Canada. Given the Canadian plant’s lack of global competitiveness due to labor rule inflexibility, … Continue reading →

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Dynamic Pricing of taxicab fares and fairness

An article in the New York Times (Jan 9,2012)  describes taxi pricing at Uber, a company that charged $27 per mile at the start of New Year’s Eve and $135 per mile late night.  Prices were revealed at the wnd … Continue reading →

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Corn Storage Capacity increase and supply chain impact

An article in Bloombergbusinessweek (Jan 9, 2012) describes a significant increase in corn storage capacity at the farm level. The result, farmers hold their crop to sell at the best price, thus corn prices have increased 23 % over the … Continue reading →

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