Tag Archives: Global

Uniqlo’s global expansion

Posted on March 28, 2012 by aviyer2010

An article in the Economist (March 24, 2012) describes the Japanese retailer’s expansion into the US and China. The company focuses on producing large volume, low cost items that are sold across the season. Given that weather patterns in China … Continue reading →

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Inditex’s supply chain as it goes global

Posted on March 28, 2012 by aviyer2010

An article in the Economist (March 24, 2012) describes the fact that future growth for the parent company of Zara will come from Asia and the US, rather than the current 70 % of sales in Europe. Zara, known for … Continue reading →

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The impact of natural gas extraction on steel mills

Posted on March 28, 2012 by aviyer2010

An article in the Wall Street Journal (March 26, 2012) describes the doubling of steel tubes, pipes etc in the last two years – thanks to the demand from natural gas extraction facilities across the US. But the abundant supply … Continue reading →

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The global supply chain for outsourced services

Posted on March 28, 2012 by aviyer2010

An article in Bloombergbusinessweek (March 19,2012) describes new locations for higher level outsourced work – accounting, research, marketing etc. New locations in Argentina, Guatemala, Poland and Brazil, enable these tasks to be performed closer to the customer, despite being more … Continue reading →

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Nike’s knit shoe design and global supply chain impact

Posted on March 28, 2012 by aviyer2010

An article in Bloombergbusinessweek (March 19,2012) describe the flyknit shoe design by Nike – whose upper is knit from thread as one piece, thus saving 35 parts and 66 % less waste. The reduced labor intensive assembly also makes US … Continue reading →

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Will Apple succeed in changing supplier working conditions ?

Posted on March 18, 2012 by aviyer2010

An article in the New York Times (March 7,2012) describes pressures to improve Apple’s supplier, FoxConn’s working conditions, and the comparison to apparel supply chains. Unlike apparel supply chains, Apple’s products have higher margins, require quick response to design adjustments, … Continue reading →

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Minimum wage hikes across China and impact

Posted on March 18, 2012 by aviyer2010

An article in Bloombergbusinessweek ( March 12,2012) describes minimum wage hikes of 9% in Beijing, 14% in Shenzhen and 35% in Henan. Given the Chinese system where minimum wage is a local decision, and local demand supply conditions demanding such … Continue reading →

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Boeing, Delta disagree regarding global supply chain impact

Posted on March 18, 2012 by aviyer2010

An article in the Wall Street Journal (March 16,2012) describes an attempt by Delta to cut the extent of loans provided by the US government financed Export-Import bank to Boeing’s potential customers. While these loans help Boeing grow its exports, … Continue reading →

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Forced Drug patent licensing in India

Posted on March 18, 2012 by aviyer2010

An article in the New York Times (March 18,2012) describes a decision by the Indian government to make Bayer compulsorily share its patent for a kidney cancer drug with the Indian firm, Natco Pharma, in return for 6% royalty. Bayer’s … Continue reading →

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US low manufacturing wages and global supply chain impact

Posted on March 18, 2012 by aviyer2010

 An article in the Wall Street Journal (March 17,2012) describes manufacturing wage rates in Indiana of $12/hour with no unions in Muncie, IN, compared to twice that rate in Caterpillar’s Canadian plant. The impact – closure of the Canadian plant … Continue reading →

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