Tag Archives: Supply Chain

Boeing design choice for the new 737 and Airbus announcement

A Wall Street Journal article (28 July 2011) describes Boeing’s CEO McNerney defending Boeing’s plan to offer an upgraded design for the 737 versus an anticipated new design.   Many in the industry had anticipated a newly designed 737, and this … Continue reading

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US Auto supply chain recovery from tsunami related glitches and growth impact

A Wall Street Journal article (July 27, 2011) links the impact of the tsunami, and part shortages, on US auto production (a drop of 5.9 %) and thus dampened growth of the US economy in the second quarter 2011 (1.9 … Continue reading

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Dropping rare earth prices in China and supply chain impact

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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The US and Mexico Truck Transport Agreement

A New York Times article (July 6, 2011) summarizes the recent agreement to let Mexican truckers carry loads into US destinations, thus decreasing trade frictions (cost and time delays) at the US-Mexico border.  In turn, this agreement decreases Mexican tariffs … Continue reading

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JIT workers and Sales Impact

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

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 ?

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

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 ?

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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Heavy Equipment monitoring and Energy Savings

An article in the Wall Street Journal (June 1, 2011) describes the use of electronic monitoring of heavy equipment (bulldozers, dump trucks etc) to decrease costs.  One contractor claims that his excavators were idling 48 % of the time in … Continue reading

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