Tag Archives: Outsourcing

OEMs, Yuan contracts and supplier costs

Posted on November 4, 2011 by aviyer2010

An article in the Wall Street Journal (Oct 3, 2011) describes China’s attempts to make the Yuan a global currency and its role in supplier contracts. Current rules to buy and sell yuan involve a lot of paperwork, as a result … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged China, Global, manufacturing, Outsourcing, regulation, Suppliers, Supply Chain, Trends | Leave a comment

Federal response to vital Medicine shortages in US hospitals

Posted on October 31, 2011 by aviyer2010

A New York Times article (Oct 31, 2011) describes Federal attempts to ease shoratges of sterile injectables that constutue 74 % of drug shortages. The government blames market concentration – 90 % of the medicines are bought by five hospital … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged Capacity, Cost, Global, manufacturing, Outsourcing, Quality, regulation, Risk, Supply Chain | Leave a comment

Now Thai floods and Japanese auto supply chain impact

Posted on October 29, 2011 by aviyer2010

A Wall Street Journal article (Oct 29, 2011) describes the impact of flooding in Thailand, which has resulted in two Sony plants deluged, Toyota suppliers impacted, a Honda plant impacted for six months etc. Given the disruption caused by the … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged automobiles, Capacity, Cost, disruption, Global, manufacturing, Outsourcing, Risk, Supply Chain | Leave a comment

Yuan Appreciation, labor flexibility and back to US manufacturing

Posted on October 7, 2011 by aviyer2010

A Wall Street Journal article (Oct 7, 2011) describes decisons a furniture manufacturer and high end earphone to move production back to the US. The reasons – a 30 % yuan appreciation from 2005 to 2011, US union flexibility and … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged Capacity, China, Cost, Global, manufacturing, Outsourcing | Leave a comment

Otis decides to return manufacturing to an American plant

Posted on October 7, 2011 by aviyer2010

A Wall Street Journal (Oct 6, 2011) report describes a decision by Otis to move production from Mexico to South Carolina. Reasons cited include (a) 70 % of its customers will be closer to the new plant, (b) Freight and … Continue reading →

Posted in Global Contexts, Supply Chain Issues | Tagged Capability, Capacity, Consumers, Cost, freight, Global, logistics, manufacturing, Outsourcing, Supply Chain | Leave a comment

Estimating Apple’s potential revenue based on supply chain partner volumes

Posted on October 4, 2011 by aviyer2010

A Bloombergbusinessweek (Sept 12-16, 2011) article describes the Apple company forecast that sales will drop 12 % this quarter. But analysis of Apple’s outsourced supply base consisting og Foxconn, Samsung etc that provide 75 % of Apple’s cost of goods … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged Capacity, Cost, Global, manufacturing, Outsourcing, Supply Chain | Leave a comment

The US Navy’s concern about sole suppliers for defense

Posted on October 2, 2011 by aviyer2010

An article in Bloombergbusinessweek (Sept 5, 2011) describes the worry in the Navy that their sole sourced contract for the Aegis Combat System with Lockheed Martin may not have delivered the best deal. Past contracts to Lockheed have been under … Continue reading →

Posted in Collaboration, Operations Management, Supply Chain Issues | Tagged Collaboration, competition, Cost, Design, Dual Sourcing, manufacturing, Navy, Outsourcing, Service, Suppliers | 1 Comment

“Surge and Purge” contractors for defense services

Posted on October 1, 2011 by aviyer2010

A BloombergBusinessweek article (Sept 5, 2011) describes the approach in the Pentagon to use “surge and purge” services offered by CACI International and ManTech International. These companies provide the capability required for the specified time frame and are available on … Continue reading →

Posted in Global Contexts, Operations Management, Service Operations, Supply Chain Issues | Tagged Capability, Capacity, Cost, Demand Surge, Global, military, Outsourcing, Service, Supply Chain | Leave a comment

The benefit of a public private response during an emergency

Posted on October 1, 2011 by aviyer2010

A BloombergBusinessweek article (Sept 5, 2011) describes how private businesses provided faster and cheaper response compared to the government. Local restaurants provided meals at half the $ 8 price per meal of FEMA rations. Emergencies in Louisiana now routinely involve … Continue reading →

Posted in Collaboration, Operations Management, Service Operations, Supply Chain Issues | Tagged Capability, Capacity, Emergency, Outsourcing, Response, Service, Speed, Supply Chain | Leave a comment

Will China’s inflation impact the USA ?

Posted on September 17, 2011 by aviyer2010

A report by Hale and Hobijn (http://www.frbsf.org/publications/economics/letter/2011/el2011-25.html) suggests that imports from China account for 2.7 % of US consumer expenditure. Of that 2.7%, over 55 % consists of services in the US, thus imports of China constitute 1.2 % of … Continue reading →

Posted in Global Contexts, Operations Management, Supply Chain Issues | Tagged China, Cost, Global, manufacturing, Outsourcing, Supply Chain | Leave a comment