Tag Archives: Cost

Fragmented Trucking in China and Supply Chain Impact

Posted on April 29, 2011 by aviyer2010

An article in the New York Times (April 29, 2011) describes the fragmented, unregulated trucking industry in China and the consequent cost per mile of $ 2.50 to $ 3.00 per mile vs the US coat of $ 1.75 per … Continue reading →

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Rethinking JIT under supply disruptions and erratic growth

Posted on April 29, 2011 by aviyer2010

A Wall Street Journal article (April 29, 2011) describes companies like Terex and Al-jon Manufacturing and their increased inventories of raw material and finished goods given supply disruptions and increased sales growth.  Whil Just-In-Time inventories enable supply to be maintained synchronized … Continue reading →

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Automobile OEM custom chips and Japanese supply bottlenecks

Posted on April 28, 2011 by aviyer2010

An International Herald Tribune article (April 27, 2011) describes the impact of the earthquake caused destruction to chip manufacturer Renesas Electronics with a 40 % market share of automobile microcontrollers.  The company was formed by the merger of three chip … Continue reading →

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Retail paint price increases and titanium dioxide cost link

Posted on April 23, 2011 by aviyer2010

An article in the Wall Street Journal (23 April 2011) describes a 16 % increase in retail price of paint.  The cause is an increased demand for titanium dioxide, a paint ingredient that is also used in toothpaste, paper and … Continue reading →

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Apparel retailers masking price increases

Posted on April 23, 2011 by aviyer2010

A New York Times article (23 April 2011) describes attempts by retailers to carefully choose price increases by type of apparel in an effort to manage the impact of cost increases.  Some of the strategies listed include changing from 50 … Continue reading →

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Apple and supply chain capability

Posted on April 23, 2011 by aviyer2010

An article in CNN Money by David Goldman (http://money.cnn.com/2011/04/22/technology/apple_supply_chain/index.htm?hpt=T2) describes how Apple exercises its supply chain power. The author claims that since Apple has five main products (iPad, iPhone,iPod,Mac, AppleTv) and 15 variations total , and that these designs have … Continue reading →

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The diminishing impact of clusters in global supply chains

Posted on April 17, 2011 by aviyer2010

An article in the Economist (April 16, 2011) describes the diminishing fortunes of clusters in Italy – cotton fabrics, jewelry, brass fittings etc.  Italy has over 100 such clusters, developed around generations of skill development and access to natural resources. … Continue reading →

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US Companies ramp up to fill Japanese supplier delivery issues

Posted on April 15, 2011 by aviyer2010

An article in BloombergBusinessweek (April 11-17, 2011, page 18) describes the impact of the Japanese tsunami and consequent supply disruptions. US suppliers such as Microchip Technology claim to be ready to ramp up production to meet demand, with a preference … Continue reading →

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Rail Capacity shortages cause auto shipment delays

Posted on April 14, 2011 by aviyer2010

A Wall Street Journal article (April 13, 2011) describes the impact rail shipment delays on car manufacturer inventories. During the recession, railroads decreased their rail cars and cut their staff. The sudden expansion of car shipments has created a surge … Continue reading →

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Are manufacturers that hedge against risks more risky ?

Posted on April 14, 2011 by aviyer2010

A Wall Street Journal article (April 13, 2011) describes the worries of manufacturers, such as Caterpillar, Ford, Boeing etc that use hedging instruments to decrease risk. Their concern is whether their banks could now require them to back up any … Continue reading →

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