Tag Archives: Cost

Walmart’s plans to buy vegetables and fruits locally

Posted on August 1, 2011 by aviyer2010

A Wall Street Journal article (August 1, 2011) describes plans by Walmart to double its local purchase of fruits and vegetables by 2015 – with local defined as purchases from the state the store is located.   Thus Walmart buys jalapeno pepper … Continue reading →

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54.5 mpg by 2025

Posted on July 29, 2011 by aviyer2010

A Wall Street Journal (28 July 2011) describes an agreement between the auto manufacturers and the US government to double the average mileage from 27.3 mpg to 54.5 mpg. Attaining this mileage can involve use of solar panels, battery power, … Continue reading →

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Dropping rare earth prices in China and supply chain impact

Posted on July 27, 2011 by aviyer2010

The Wall Street Journal (July 6, 2011) reports that rare earth metal prices in China dropped by as much as 7.2 %, a remarkable change from a short few months when China’s cut in exports created worries of global shortages … Continue reading →

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JIT workers and Sales Impact

Posted on July 27, 2011 by aviyer2010

A Wall Street Journal article (July 27, 2011) describes the 2009 sales drop of 4.5 % and employment drop of 8.3 % and a ten year growth of 19 % while private sector jobs dropped 2 million.  One concept described … Continue reading →

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Vertical Integration, Global Supply Chains and reliable power in India

Posted on July 27, 2011 by aviyer2010

The New York Times (July 27, 2011) describes a vertically integrated global supply chain built by the Adani Group – with coal mined in their mines in Indonesia, South Korean manufactured ships transporting it 4,000 miles to their port in … Continue reading →

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Is US Inshoring of manufacturing and services a trend ?

Posted on June 17, 2011 by aviyer2010

An article in CNN Money (http://money.cnn.com/2011/06/17/news/economy/made_in_usa/index.htm?hpt=hp_t2) asks if the examples of companies inshoring i.e., bringing outsourced activities back to the US, is a long term trend. The articles identifies GE’s appliance plan in Kentucky that will produce refrigerators and water … Continue reading →

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Impact of the DOT delay rule on flight cancellations

Posted on June 13, 2011 by aviyer2010

An article in CNN.com (http://www.cnn.com/2011/TRAVEL/06/13/tarmac.delays.cancellations/index.html?hpt=hp_bn12) describes the impact of the new Department of Transportation rile that penalizes airlines up to $ 27,500 per passenger for ground delays of more than three hours.  The result was a drop in such delays … Continue reading →

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China cost advantage for manufacturing to disappear by 2015 ?

Posted on June 8, 2011 by aviyer2010

A report by the Boston Consulting Group (BCG) summarized in Supply Chain Digest (June 6, 2011) describes wage growth in China of 17 % a year (vs 3 % in the US) , increasing appreciation of the Yuan and labor … Continue reading →

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Volkswagen’s considers building the Audi in it’s US plant

Posted on May 26, 2011 by aviyer2010

An article in the Wall Street Journal (May 25, 2011) states that  US production enabled VW to drop prices for the Jetta by $ 8,000 thus enabling it to compete with Honda and Hyundai’s cars in the category.  In addition, … Continue reading →

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Power cuts in China and manufacturing impact

Posted on May 19, 2011 by aviyer2010

A Wall Street Journal article (18 May 2011) describes electricity rationing in Taizhou, China, which required some factories to halt production one day a week in March, two days a week in April and three days a week in May. … Continue reading →

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