Tag Archives: Cost

The global supply chain for Michael Kors and impact

An article in the New York Times (Dec 20, 2011) describes Michael Kors Holding, an apparel company that generates 95 % of its revenues in the US and Canada, makes its apparel in Asia, and is incorporated in the British … Continue reading

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Planning the impact of fog, snow and rain at UPS to prevent delivery delays

A Wall Street Journal article (Dec 23, 2011) describes the 120 million packages delivered by UPS in the week of Dec 25, with late shipments creating costs between $5 and $ 30. UPS claims that its monitoring of the weather … Continue reading

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Business Class seat comfort based airline competition and supply chain impact

An article in Bloombergbusinessweek (Dec 19,2011) describes airline competition to attract business class passengers, who pay 3 to 10 times the economy fare, are 15 % of the seats but 50% of the flight revenue.Business class seats, with new features, … Continue reading

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Reverse Logistics – managing the US Army withdrawal from Iraq

An article in Bloombergbusinessweek (Dec 19, 2011) describes the management of the ramp down in Iraq, with 2 million items to be accounted for removal. The choices (1) donate to Iraq,(2) ship back to the US Army for use, (3) … Continue reading

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Reducing design elements to improve supply chain performance at Lego

An article in Bloombergbusinessweek (Dec 19,2011) describes Lego’s decision to outsource themeparks, sell the entertainment division and decrease the number of design elements available to designers from 12,900 to 7,000. The company describes each new element as creating both mold … Continue reading

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How many domestic automakers does China need ?

An article in Bloombergbusinessweek (Dec 19, 2011) describes China’s auto sector has having 70 automakers with 55 of them accounting for 11 % of sales.  Foreign automakers account for 58% of sales.  The Chinese government plans to further concentrate the … Continue reading

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Swatch’s plans to cut back component sales to competitors and supply chain impact

A New York Times article (Dec 10, 2011) describes a decision by the Swatch Group to cut back sales (to 85 % of 2010 levels and ultimately to zero) of components to competitors. Buying these components from Swatch had enabled … Continue reading

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Balancing Wind, Water energy and salmon interests

An article in the New York Times (Dec 7, 2011) describes the coordinating role played by a Federal power agency, Bonneville Power Administration, that was faced with accepting power from hydroelectric and wind sources during stormy weather.  The agency dropped … Continue reading

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Toyota’s Supply Chain and Currency and Global Risk Impact

An article in the New York Times (Dec 9, 2011) describes Toyota’s announcement of a 54 % profit drop due to the appreciation of the yen and the floods in Thailand. The strong yen affects Toyota more than other automakers … Continue reading

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US Canada border delay easing and impact

An article in the Wall Street Journal (Dec 8, 2011) describes the US-Canada border delays as costing the Canadian economy $ 15.8 billion.  A new plan is expected to simplify clearance, with goods entering by ship to a US or … Continue reading

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