Tag Archives: Outsourcing

Boeing production rampup and the role of supply chain examiners

An article in the Wall Street Journal (Dec 30, 2011) describes Boeing’s backlog of 3,500 airplanes, worth $ 270 billion, and the need to rampup production by 60 % in the next three years to maintain delivery commitments. Competition from … Continue reading

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Lower wages, greater employment and capital investment in the US – a wise choice ?

An article in the New York Times (Dec 29, 20110 describes wage decreases of $ 10 to $ 15 per hour for manufacturing jobs in Kentucky – a prerequisite “competitive wage” at which General Electric moved production to Kentucty and … Continue reading

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Mumbai slums and supply chain efficiency

An article in the New York Times (Dec 29, 2011) describes the Dharavi slum in Mumbai, India, home to a million people and generating an economic output of close to $ 1 billion. Admist the grime are thriving supply chains … Continue reading

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Outsourcing labor to comply with India’s labor laws

An article in the New York Times (Nov 29, 2011) describes the outsourcing of the salespeople by Whirlpool’s India division. The varying labor regulations and enforcement, rules regarding layoffs for companies with mo than 100 employees etc, all combine to … Continue reading

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Slow down Postal delivery to save USPS ?

An article in CNNMoney (http://money.cnn.com/2011/12/05/news/economy/postal_service/index.htm?iid=HP_LN&hpt=hp_t2) describes a proposal by the US Postal service to change the delivery guarantee for first class mail from the current one to three days to a slower two to five days.  The slower delivery will … Continue reading

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The “Save our Industries Act” Poplin agreement Involving the US and Philliphines

A report on the “Save our Industries Act” (http://www.mb.com.ph/articles/342819/shorter-garment-export-categories-okayed) describes the potential agreement between the US and Philippines under which poplin cloth, exported from US producers to the Philippines for garment manufacturing, would be granted zero duties when exported back … Continue reading

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Creston Electronics and US manufacturing

An article in Forbes (Dec 5, 2011) describes Creston Electronics, a N.J. based company that creates over 1,500 complex electronic products in small volumes with low errors. The company’s founder claims that his strategy was to bring outsourced work in … Continue reading

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Cargill – matching global supply and demand of agricultural commodities

An article in Fortune (Nov 7, 2011) describes Cargill’s role inmatching global supplies of soyabean, cotton, palm oil, beef and salt from Indonesia, Australia, Argentina and North America to customers. Charter ships are routed to minimize empty miles – as … Continue reading

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The impending demise of vertical integration amongst oil companies ?

An article in bloombergbusinessweek(14 nov, 2011) describes the conundrum faced by Marathon Oil, whose oilfields in Angola and Norway were not close to its refineries and transportation assets. The result, most of the oil the company refined was purchased from … Continue reading

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Thai floods, supply chain and insurance impact

An article in the Wall Street Journal (Nov 3, 2011) describes the floods in Thailand impacting 25% of the world’s supply of hard drives. The Honda plant’s water damage impacted global supply of components, and a plant in Brazil had … Continue reading

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