You Don’t Set the Rules September 20, 2012
Posted by Jeff Fuchs in lean, supply chain.Tags: lean, supply chain
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Kevin Meyer, writing at Evolving Excellence, talks about how the customer is the one who ultimately calls all the shots, and that each supply chain has its own rules. Customers who abuse the supply chain often lose out on better opportunities with other supplies, because those suppliers do not want to suffer that abuse.
What passes these days for a “lean supply chain” or a “supplier partnership” is often laughable.
To read Meyer’s informative post, head here.
For Some U.S. Companies, Time to Head Home March 29, 2012
Posted by Jeff Fuchs in supply chain, Uncategorized.Tags: offshoring, outsourcing
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In an article at Bloomberg Businessweek, Matthew Phillips writes about a developing trend of U.S. companies that are returning their operations home. A panoply of issues face those companies which seek to outsource, such as separating physical production from engineering, cost of travel in terms of money and time, and globalized supply chains. For many companies the cost of all of these factors is too much. 21% of U.S. companies sourcing in China are now considering shifting back to the United States.
To read Matthew’s article, head on over here.
Lean Chickens, 1, Fat Lions, 0 February 27, 2012
Posted by Jeff Fuchs in lean, manufacturing, strategy, supply chain.Tags: lean, manufacturing, strategy, supply chain
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Bill Waddell presents an interesting study of production. Golden Bear, Ltd., has received the contract to produce Pride the Lion, the official mascot of the British Olympic Team. Pride is being produced in China because it has been argued that he is too expensive to produce elsewhere. Pride retails for $20. Meanwhile, Montana-based American company West Paw Design makes a sustainable, fluffy product called a Spring Chicken that is larger than Pride –and it retails for $14. The difference? Lean-based West Paw oversees everything itself, while Pride must be overseen by offices in both London and China.
For Bill’s very thought-provoking article, head here.
The Case for Onshoring January 30, 2012
Posted by Jeff Fuchs in supply chain.Tags: offshoring, outsourcing, supply chain
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Guy Morgan, writing at IndustryWeek, makes a compelling argument for onshoring. Morgan contends that clear thinking is important as U.S. companies move forward. They must consider the total costs of making a product. Logistics matter. As wages and labor costs rise in other countries, the United States is prepared to meet the change with highly sophisticated yet easy logistical systems for those seeking to work within the country.
Read Mr. Morgan’s persuasive article here.
The Case for Onshoring January 30, 2012
Posted by Jeff Fuchs in supply chain.Tags: offshoring, outsourcing, supply chain
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Guy Morgan, writing at IndustryWeek, makes a compelling argument for onshoring. Morgan contends that clear thinking is important as U.S. companies move forward. They must consider the total costs of making a product. Logistics matter. As wages and labor costs rise in other countries, the United States is prepared to meet the change with highly sophisticated yet easy logistical systems for those seeking to work within the country.
Read Mr. Morgan’s persuasive article here.
Ikea’s Paper Pallet Challenges Wood Dominance December 19, 2011
Posted by Jeff Fuchs in new products and technologies, supply chain.Tags: new products and technologies, supply chain
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Swedish furniture-maker Ikea is dumping its wood pallets for thinner, paper-based alternatives beginning in January. This, according to Ikea, will take ten percent off transportation costs. Throughout the world, pallet-makers and other companies are considering shifts to more compact, sustainable shipping methods, including Air France. Other companies, like Sydney, Australia-based Brambles, say the paper pallets aren’t durable enough.
Read the Bloomberg article on the pallets here.
Ikea’s Paper Pallet Challenges Wood Dominance December 19, 2011
Posted by Jeff Fuchs in new products and technologies, supply chain.Tags: new products and technologies, supply chain
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Swedish furniture-maker Ikea is dumping its wood pallets for thinner, paper-based alternatives beginning in January. This, according to Ikea, will take ten percent off transportation costs. Throughout the world, pallet-makers and other companies are considering shifts to more compact, sustainable shipping methods, including Air France. Other companies, like Sydney, Australia-based Brambles, say the paper pallets aren’t durable enough.
Read the Bloomberg article on the pallets here.
Taming the “Bullwhip Effect” in Supply Chains December 18, 2011
Posted by Jeff Fuchs in Book Review, supply chain.Tags: Book Review, supply chain
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A review of the new book Systematic Risk and the Bullwhip Effect in Supply Chains explains that demand shifts can cause serious problems in the supply chain. These shifts in demand come in two forms: systematic, such as a bad economy or inflation rates; and second, idiosyncratic: specific company issues and shifts in consumer desires. Hedging in such instances is key, including product diversification.
For the Strategy+Business review of Systematic Risk and the Bullwhip Effect, head here.
Taming the “Bullwhip Effect” in Supply Chains December 18, 2011
Posted by Jeff Fuchs in Book Review, supply chain.Tags: Book Review, supply chain
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A review of the new book Systematic Risk and the Bullwhip Effect in Supply Chains explains that demand shifts can cause serious problems in the supply chain. These shifts in demand come in two forms: systematic, such as a bad economy or inflation rates; and second, idiosyncratic: specific company issues and shifts in consumer desires. Hedging in such instances is key, including product diversification.
For the Strategy+Business review of Systematic Risk and the Bullwhip Effect, head here.
787 Dreamliner Teaches Boeing Costly Lesson on Outsourcing April 20, 2011
Posted by Jeff Fuchs in manufacturing, supply chain.Tags: manufacturing, offshoring, outsourcing, supply chain
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The Los Angeles Times reports that Boeing, which outsourced labor and material around the world, is losing money on the 787 Dreamliner. The plan was to use one factory near Seattle to gather together the parts produced around the world, and assemble them. But early on, problems emerged –from parts that didn’t fit to shortages of parts altogether. Because of this, the airliner is 3 years late and almost one billion dollars over budget.
Check out the L.A. Times article here.
787 Dreamliner Teaches Boeing Costly Lesson on Outsourcing April 20, 2011
Posted by Jeff Fuchs in manufacturing, supply chain.Tags: manufacturing, offshoring, outsourcing, supply chain
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The Los Angeles Times reports that Boeing, which outsourced labor and material around the world, is losing money on the 787 Dreamliner. The plan was to use one factory near Seattle to gather together the parts produced around the world, and assemble them. But early on, problems emerged –from parts that didn’t fit to shortages of parts altogether. Because of this, the airliner is 3 years late and almost one billion dollars over budget.
Check out the L.A. Times article here.
Manufacturing’s Death Greatly Exaggerated February 4, 2011
Posted by Jeff Fuchs in manufacturing, supply chain.Tags: manufacturing, supply chain
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Peter Alpern, writing at Industry Week, takes to task the idea that American manufacturing is virtually nonexistent. This is caused by two primary misconceptions: fewer manufacturing workers and global trade. Manufacturing has been one of the positive signs of recovery, as manufacturing exports have grown for sixteen straight months. Manufacturing corporations now more heavily rely on machines for greater output. And the manufacturer has traded in his uniform for service industry work. The new path now lays in supply chain management, design, and engineering.
Check out the Industry Week article here.
Manufacturing’s Death Greatly Exaggerated February 4, 2011
Posted by Jeff Fuchs in manufacturing, supply chain.Tags: manufacturing, supply chain
add a comment
Peter Alpern, writing at Industry Week, takes to task the idea that American manufacturing is virtually nonexistent. This is caused by two primary misconceptions: fewer manufacturing workers and global trade. Manufacturing has been one of the positive signs of recovery, as manufacturing exports have grown for sixteen straight months. Manufacturing corporations now more heavily rely on machines for greater output. And the manufacturer has traded in his uniform for service industry work. The new path now lays in supply chain management, design, and engineering.
Check out the Industry Week article here.
Manufacturing's Death Greatly Exaggerated February 4, 2011
Posted by Jeff Fuchs in manufacturing, supply chain.Tags: manufacturing, supply chain
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Peter Alpern, writing at Industry Week, takes to task the idea that American manufacturing is virtually nonexistent. This is caused by two primary misconceptions: fewer manufacturing workers and global trade. Manufacturing has been one of the positive signs of recovery, as manufacturing exports have grown for sixteen straight months. Manufacturing corporations now more heavily rely on machines for greater output. And the manufacturer has traded in his uniform for service industry work. The new path now lays in supply chain management, design, and engineering.
Check out the Industry Week article here.
How Apple’s iPhone Widens the Trade Deficit with China (And How to Fix It) January 22, 2011
Posted by Jeff Fuchs in economy, government, supply chain.Tags: economy, government, outsourcing, supply chain
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Though the iPhone is an American invention, it is contributing $1.9 billion to the trade deficit with China. Developing countries export the high-tech products that affluent countries themselves invent. If Apple were to pursue American workers instead of Chinese workers, the manufacturing cost of a phone would rise from $6.50 to $68 per phone –but selling it for the going rate of $500 would still give Apple a more than-50% profit margin. And if the U.S. produced and sold its own phones, that $1.9 billion trade deficit would disappear –and the U.S. would add $5.7 billion to U.S. exports.
Check out the FastCompany analysis here.
How Apple’s iPhone Widens the Trade Deficit with China (And How to Fix It) January 22, 2011
Posted by Jeff Fuchs in economy, government, supply chain.Tags: economy, government, outsourcing, supply chain
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Though the iPhone is an American invention, it is contributing $1.9 billion to the trade deficit with China. Developing countries export the high-tech products that affluent countries themselves invent. If Apple were to pursue American workers instead of Chinese workers, the manufacturing cost of a phone would rise from $6.50 to $68 per phone –but selling it for the going rate of $500 would still give Apple a more than-50% profit margin. And if the U.S. produced and sold its own phones, that $1.9 billion trade deficit would disappear –and the U.S. would add $5.7 billion to U.S. exports.
Check out the FastCompany analysis here.
Variability and Vulnerability in the Pharmaceutical Supply Chain September 24, 2010
Posted by Jeff Fuchs in supply chain.Tags: mistake-proofing, supply chain
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Supply trains have more than their fair share of problems, and those problems are especially inherent pharmaceutical supply chains. A lack of uniformity, for example, in the production of raw materials in different places with different regulatory standards, can have dire consequences (such as the 2008 Heparin incident which claimed 81lives.) The e-Pedigree (a traceable history of production), RFID (a track and trace method), and spectroscopy (a chemical fingerprint of the product) are proven methods of being able to safeguard the supply chain process, though each has its drawbacks.
Check out the IndustryWeek article here.
Variability and Vulnerability in the Pharmaceutical Supply Chain September 24, 2010
Posted by Jeff Fuchs in supply chain.Tags: mistake-proofing, supply chain
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Supply trains have more than their fair share of problems, and those problems are especially inherent pharmaceutical supply chains. A lack of uniformity, for example, in the production of raw materials in different places with different regulatory standards, can have dire consequences (such as the 2008 Heparin incident which claimed 81lives.) The e-Pedigree (a traceable history of production), RFID (a track and trace method), and spectroscopy (a chemical fingerprint of the product) are proven methods of being able to safeguard the supply chain process, though each has its drawbacks.
Check out the IndustryWeek article here.
Spare Parts and TPM September 14, 2010
Posted by Jeff Fuchs in Lean Tools & Techniques, supply chain, Total Productive Maintenance.Tags: Lean Tools & Techniques, supply chain
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Mike Wroblewski, writing over at his blog, notes how one aspect of a Total Productive Maintenance program – spare parts – does not get much attention. Maintaining critical parts – including those suggested, and those that need replacement most frequently – can help pay off. In addition to maintaining the spare parts, keep lists next to the machines that need them, and clearly label the parts.
Check out Mr. Wroblewski’s insightful article here.
Spare Parts and TPM September 14, 2010
Posted by Jeff Fuchs in Lean Tools & Techniques, supply chain, Total Productive Maintenance.Tags: Lean Tools & Techniques, supply chain
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Mike Wroblewski, writing over at his blog, notes how one aspect of a Total Productive Maintenance program – spare parts – does not get much attention. Maintaining critical parts – including those suggested, and those that need replacement most frequently – can help pay off. In addition to maintaining the spare parts, keep lists next to the machines that need them, and clearly label the parts.
Check out Mr. Wroblewski’s insightful article here.
Cafeteria Lean August 12, 2010
Posted by Jeff Fuchs in Lean Thinking, supply chain.Tags: Lean Thinking, supply chain
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Bill Waddell, over at Evolving Excellence, explains that Nissan attempts Lean the way a woman ordering a huge meal and a diet coke handles dieting. It just doesn’t work. Nissan has had to shut down several of its plants for a few days to make up for a supply chain problem with a shortage of parts. The problem, Mr. Waddell explains, isn’t that lean won’t work for Nissan; it is that Nissan isn’t using lean well enough. A poor supply chain –with companies looking to find their way around European Union tax laws, for example –is the root of the problem.
Check out the Evolving Excellence article here.
Is Labor a Significant Cost…Or Not? August 12, 2010
Posted by Jeff Fuchs in Lean Thinking, supply chain, workforce.Tags: Lean Thinking, outsourcing, supply chain, workforce
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Kevin Meyer at Evolving Excellence has demonstrated in the past that, based on internal improvements, North American companies can compete well – from North America. The only real cause to move a business overseas might be to be closer to the customers. Rising labor costs in China are becoming a headache for businesses who once viewed outsourcing as a more plentiful source of return. Indeed, lack of a mature supply chain structure in other countries – like Vietnam – ultimately cause costs other than labor to rise, and total cost goes up as a result.
Check out Mr. Waddell’s post here.
Cafeteria Lean August 12, 2010
Posted by Jeff Fuchs in Lean Thinking, supply chain.Tags: Lean Thinking, supply chain
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Bill Waddell, over at Evolving Excellence, explains that Nissan attempts Lean the way a woman ordering a huge meal and a diet coke handles dieting. It just doesn’t work. Nissan has had to shut down several of its plants for a few days to make up for a supply chain problem with a shortage of parts. The problem, Mr. Waddell explains, isn’t that lean won’t work for Nissan; it is that Nissan isn’t using lean well enough. A poor supply chain –with companies looking to find their way around European Union tax laws, for example –is the root of the problem.
Check out the Evolving Excellence article here.
Is Labor a Significant Cost…Or Not? August 12, 2010
Posted by Jeff Fuchs in Lean Thinking, supply chain, workforce.Tags: Lean Thinking, outsourcing, supply chain, workforce
add a comment
Kevin Meyer at Evolving Excellence has demonstrated in the past that, based on internal improvements, North American companies can compete well – from North America. The only real cause to move a business overseas might be to be closer to the customers. Rising labor costs in China are becoming a headache for businesses who once viewed outsourcing as a more plentiful source of return. Indeed, lack of a mature supply chain structure in other countries – like Vietnam – ultimately cause costs other than labor to rise, and total cost goes up as a result.
Check out Mr. Waddell’s post here.
Outsourcing Actually Lowers (!) Profits July 16, 2010
Posted by Jeff Fuchs in supply chain, workforce.Tags: supply chain, workforce
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A Stanford University study has found that outsourcing, especially in the fashion industry, leads to lower profits. It has already been demonstrated that outsourcing to China creates a longer supply chain, more liabilities, and longer lead times –the last of which is especially dangerous for the fashion industry. New styles must run the risk of long lead time and overproduction, saturating the market and getting to the style game late.
This article has something important to consider for anyone who influences the supply chains of their business!
Check out the Evolving Excellence article here.
