...Patil, Yash Robert Tanner 5/11/2014 BIP: Final Paper Time to do the Laundry At 9am on the 24th of April, a textile manufacturing building in Dhaka, Bangladesh collapsed due to oversight from supervisors. 1129 people were killed and an additional 2515 were injured as a result. Many of the higher floors didn’t have permits to be legally constructed[1]. The workers were making 52 dollars a month in wages and lived below the poverty line. The clothes manufactured here would be exported and sold in stores like Walmart. Situations like these exist around the world, but only get recognized when disaster occurs. Businesses are some of the biggest entities in the world. Some companies are even bigger than nations; 50 of the largest economies in the world are run by multinational companies; like General Electrics and British Petroleum which are bigger than UAE and Vietnam respectively[2]. The United States Government does provide 21 billion dollars in non-military aid to foreign countries, but this is nothing compared to the impact businesses can have. The textile industry in America alone generates 248 billion dollars in revenue and employs 75 million people globally. Businesses have the capability to empower workers and improve their mission while creating shared value[3]. What is shared value? CSV or Creating Shared Value is the process of aligning economic interests with societal interests to create value for stakeholders and shareholders. Corporations have taken on CSR or...
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...Quality Issues in a Global Supply Chain: Who is responsible? There is not one entity to blame solely for the faulty capacitor. A supply chain that involves a lot of different stakeholders makes it harder to keep control over the process. In a case like this, there is more than one factor to take into consideration; financial, ethical, and contractual burdens are to be placed on the responsible corresponding parties. All stakeholders share some responsibility for the supply chain fiasco. It seems that placing the blame on one party would be unfair, which is why it is better to evaluate each entity’s responsibility and fault in the issue. As the OEM and final user of the capacitor before reaching the customer, Ford should have been more involved in the supply chain and quality control. With more than two tier suppliers involved in the production of the actuator it is important for the customer to be closely involved in order to minimize margins of errors. With better and closer involvement in the production process, communication in the supply chain could have been enhanced, allowing for a more efficient and effective strategic coordination between suppliers. However, Ford failed to pay attention and guarantee final quality checks, to evaluate for better suppliers, and lacked the drive to ensure perfect working conditions in the production line and decisions made throughout the process. Even though they had hired Automek to manage the supply chain on their behalf, they were...
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... Walmart has also created value by creating transparency within its own supply chain. By being directly involved with its suppliers, it was able to manage its supply chain. Walmart’s goal via its networks was to influence stakeholders, primarily its suppliers, to initiate sustainable practices that would be in line with Walmart’s values. By doing so, Walmart has to monitor every supply chain participants, and by doing so, they were able to eliminate redundant channels in the process. For example, instead of having a product manufactured and assembled in two different countries, Walmart was able to eliminate unnecessary channels by understanding the process, and thus creating a more efficient supply chain that is both innovative and cost effective. Another thing that they did was their overall cost reduction in the value chain processes. It was able to reduce inefficiencies in packaging, transportation, and waste, among other factors. By doing so, it sees the potential cost reduction in the long run. Furthermore, Walmart derived future long-term value through its game changer strategies that it plans to implement in all of its networks. Walmart learnt from their mistake in 1989 by shifting its sustainability practices from one that is defensive, to one that is initiating. It does so by limiting its PR on its sustainability practices and instead focused their attention to developing a supply chain in which relationships...
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...Inbound freight takes center stage | Page 1 Inbound freight takes center stage Ford Motor Company Case Study Inbound freight takes center stage Inbound freight takes center stage Contents Snapshot The challenge The solution The rollout Issues encountered Results Logistics finally catches up with ‘lean’ 1 2 3 4 4 5 5 Share this case study Tweet about this case study Follow Viewlocity on Twitter Share this on Linkedin Connect to Viewlocity on Linkedin Share via email Inbound freight takes center stage | Page 1 Snapshot Ford Motor Company Key challenge To balance inbound freight costs for thousands of parts across hundreds of suppliers with the high frequency of deliveries needed to support just-in-time (JIT) automobile manufacturing. Solution Ford deployed the Inbound Planning Engine from Viewlocity Technologies that considers multiple factors and constraints necessary to meet lean manufacturing requirements at the lowest possible cost. Factors considered included: • • • • • • • • Load sequencing across suppliers Quantities per load Trailer capacity Load configuration Dock schedules and capacities Production schedules Target plant inventory levels Return of part containers to suppliers Upon consideration of all of these factors, the Viewlocity Inbound Planning Engine was used to determine the plan for the right quantity and delivery frequency for every part at the lowest possible cost. The Viewlocity Inbound Planning Engine was first...
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...By Adam Fernald ETH/316 John Bevell In the past Nike has been accused of using child labor in the production of its soccer balls and sweatshop conditions in suppliers’ overseas factories. Nike has about 28,000 employees globally and over 800,000 workers who are employed by its suppliers in 52 countries and create sports and fitness footwear, apparel, equipment, and accessories for worldwide distribution (Trevino, L.K. & Nelson, K.A., 2011). Nike has worked to improve labor conditions in their footwear, apparel and equipment supply chains for more than 15 years. Key issues in which they have engaged include the health and safety of the workers who make their products, excessive overtime, the ability of workers to freely associate, and child labor and forced labor (Nike Inc., Labor, 2013). Since these accusations were brought to the publics attentions Nike has been focused on improving the monitoring of the organizations supply chain, sent auditors to evaluate conditions and enforce the company code. About a decade after Nike was first targeted they released factory names and locations of their suppliers. A MIT professor was brought in to assess Nikes audit data and the results were disappointing. Most suppliers’ factories had not improved, and some even got worse (Trevino, L.K. & Nelson, K.A., 2011). Nike's entrance into the Pakistani markets was the part of its long term strategic planning. Although Pakistan has laws against child labor and slavery, the government...
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...Issue/Problem Identification McDonald’s is trying to expand its franchise to India and compete with the local food dealers “Dabbawallahs”. The issue that exists, is that many of the products from a regular McDonald’s menu (Europe/North America) cannot be eaten by Indians, because sacred animal products can be considered offensive to their beliefs and religion. As well, most Indians prefer homemade meals, and express delivery from the Dabbawallahs. Dabbawallahs have fed Indian workforce for a long time, for just a small amount of money. Mcdonald's is competing with the Dabbawallahs pinpoint accuracy and delivery. Analysis Mcdonald’s has 80 restaurants in Mumbai. Assuming Mcdonald’s spread out their restaurants similarly to how they do in North America (based on population density), they are closer to the workplaces than some of the residencies in North Mumbai. Despite this, workers would rather eat home cooked meals, because they are under the impression cafeteria food is not healthy. Mcdonald’s has catered their menu to meet the needs of different religions, but more could be done to match the food Indian people regularly eat. The care needed to offer religion-friendly meals has already been taken by Mcdonald’s, by separating its food preparation inside restaurants, and distribution centres. The upstream food sourcing is all localized, to keep logistics cost low, and ensure food avoids cross contamination. Currently, Dabbawallahs offer accurate, and convenient delivery...
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...Abstract The paper examines the key factors influencing the adoption of e-business technology by SMEs. To this end, the paper draws on a range of literatures on the diffusion of new information and communication technologies (ICTs), many of which have hitherto been treated as separate. The reasons for this are two-fold. First, e-business technologies are the latest in a line of new ICT technologies. When exploited successfully, ICTs have increased firm competitiveness either by raising the efficiency of internal communication and organisation and/or supply chain relationships, or by facilitating the development of new/improved products and services. Second, it is hypothesised that many of the factors affecting the successful adoption of new technologies are generic in nature. With regards to SMEs specifically, consideration of earlier research may assist us in identifying a set of enablers and barriers to e-business adoption. Hence, by explicitly acknowledging the context and prior history of research in the area, we are able to map out the dimensions of future theoretical and empirical research in e-business adoption by SMEs. In addition to drawing together factors identified by existing research, the paper highlights the implications of network externalities for the timing of technology investments and the returns that accrue to early and late adopters. It also draws attention to a number of problems associated with the analytical concept of ‘the SME’ when it...
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...International Business Academy * Deadline: 26th of January, 2012 * Supervisor: Stefan Eberle * Number of characters: 39 713 Preface The purpose of this project is to fulfil the second project in our course, so we kept it in our mind during writing it. That why our main audience is also given, our opponent team, who are going to mark and grade it. We choose this problem statement, because our team wanted to analyse the mother company’s status and make conclusions of it. Also to see, how is it possible to maintain not a price driven strategy, but a quality driven strategy in nowadays markets. 26.01.2012. ______________________ Table of content * Introduction, Resume page 4 * Supply Chain page 5 * Buying behaviour page 8 * ABC analysis page 11 * PESTEL page 13 * Porter’s 5 forces page 16 * SWOT page 19 * Summary/ Conclusion page 23 Würth Case Würth is a German company and it was established by Adolf Würth, in 1945. The company supplied screws, nuts and bolts at the beginning. After Adolf Würth’s death, his 19-year-old son Reinhold took over the running of the business. From...
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...H&M had become the global leader in the ‘fast-fashion’ segment with a distinctive business approach that challenged most competitors. The business model, commonly referred to as ‘cheap-and-chic’, emphasised high fashion at prices significantly below those of competitors, with the fundamental principle being ‘Fashion and quality at the best price’. ,H&M已经成为全球领先的“快速时尚”段与独特的业务方法,大多数竞争对手的挑战。商业模式,通常被称为“cheap-and-chic”,强调高级时装的价格明显低于竞争对手,基本原则是“时尚以最好的价格和质量”。 ‘In 2010 we stepped up our investments in order to strengthen the brand further and secure future expansion.’ “在2010年,我们加强了我们的投资是为了进一步加强品牌和安全的未来扩张。” However, Zara, the prime retail brand of Spain’s Inditex, opened 120 new outlets in China during that same year and later during the year Inditex overtook H&M to become the world’s biggest fashion retailer by market capitalisation. For the first time H&M was seriously challenged by Zara’s rapid expansion, not least because of its fast growth in emerging markets. The increased competition and the fact that margins had started to erode due to increased cotton prices and rising production costs in Asia put the H&M high-fashion/low-price formula and aggressive expansion under scrutiny. Investors had come to trust H&M’s model that relied on a set of unique resources and capabilities, but Zara’s success questioned the sustainability of the formula. 然而,Zara,西班牙的Inditex的主要零售品牌,在中国开设了120家新店在今年晚些时候在同年和Inditex取代H&M成为世界上市值最大的时装零售商。H&M首次被Zara的快速扩张严重挑战,不仅是因为其在新兴市场的快速增长。竞争加剧...
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...goods or services to end users, and distributors’ reach significantly influences the extent to which suppliers can engage with customers. On a more meaningful level, distribution partners provide customer service in areas where suppliers cannot or do not (e.g., financing, insurance, training, maintenance, repairs). Taken together, the two deliver an enhanced customer experience. If managed properly, distributors provide access to customers that can determine a supplier’s reach, revenue, and long-term growth potential. Companies with productive channel relationships stand to increase sales, reduce operating costs, and improve customer reach. Importantly, effective distribution channel management delivers benefits to all players in the value chain, often by...
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...views on global supply chain management and how you plan to be a part of the field. In today’s global economy companies can no longer compete if they don’t establish collaborative relationships that expand beyond their own organization. In my opinion, Global Supply Chain Management has become increasingly important as companies look for growth opportunities in other countries as a way of increasing their global presence. It is my understanding that in order for countries to do global trade, they need to have attractive fiscal and monetary policy in order to attract foreign direct investment. Most developing countries have recovered from the economic crisis and are growing at the fastest pace they can sustain without increasing inflation. Foreign governments have a big responsibility if they want to create business opportunities for multinational companies. It is their duty to give a lot of thought to how they would respond to global tightening. That’s why I think that by improving the long-term trade outlook and coming up with acceptable reform agendas can certainly go a long way when the emerging economies are trying to boost investor and market confidence. Companies such as Boeing, Pepsi, and Oracle are a few companies who are utilizing a vertical integration approach when trying to manage materials, manufacturing, and distribution. One way to view this opinion is whenever a company deals with a supplier that helps provide the next phase of the supply chain, both benefit from...
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...Supply chain game – Lego game Supply chain game – Lego game XXXXXX Casper XXXXXX Casper Supply Chain Management Supply Chain Management Introduction First and foremost the game provided an understanding of the bullwhip effect and furthermore also insight to the challenges of distributing material and information within a supply chain. I have applied the cause-effect theory in order to obtain an understanding of the root causes, the reasons, to why the bullwhip effect, the result, occurred in the supply chain in the LEGO game (Slack, Chambers and Johnston, 2010). Hence the structure of this assignment will be based upon a cause-effect analysis which treats the experienced bullwhip effect as the result. Thus this assignment describe the causes of this effect identified through reflecting upon the LEGO supply chain game played September 25, 2015. Bullwhip effect The bullwhip effect is unexpected distortion of information observed in a supply chain and can be caused by demand fluctuations e.g. variability, which is processed and amplified through the companies in a supply chain. The demand fluctuations are amplified as they are processed upstream in the supply chain and hence the swings, the demand order variability, of the “bullwhip” can be expected to increase the farther upstream in the supply chain a company is located (Lee, Padmanabhan and Wheng, 1997). Reflections and learning outcome from the game I will divide this reflection and learning...
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...CHAPTER 13 – STRUCTURE OF THE SUPPLY CHAIN AIMS OF THE CHAPTER Products move through a series of operations in their process. This movement usually includes a physical flow of goods, and then we refer to the flow of materials through a supply chain. This chapter introduces the concept of logistics – or supply chain management – which is responsible for this flow. The chapter looks at the broad area of design, emphasising the number of points on the supply chain, the best locations for these, and the relationships between them. The aim of the chapter is to introduce the concept of supply chain management. More specific aims are to: • Explain the role of logistics – or supply chain management Logistics – which is equivalently known as supply chain management and sometimes physical distribution – is responsible for all the physical movement of materials. This includes movement into the process from suppliers, through operations, and then out of the process to customers. It is difficult to think of any business activity that does not depend, to some extent on logistics supplying required materials. Activities generally included in logistics are procurement, inward transport, receiving, warehousing, stock control, order picking, material handling, distribution, recycling, returns and waste disposal, location and associated communications. • Appreciate the role and importance of supply chains A supply chain consists of the series of activities and organisations...
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...SUPPLY CHAIN MANAGEMENT Supply Chain Management University of Maryland University College ITEC610 Section 1142 Semester 0809 Abstract This paper defines the concept of technology in Supply Chain Management used to promote planning, analyze and account for the operations of a supply chain business with the goal being increased profits as well as a satisfied clients. This paper will discuss how to accomplish the benefits of cost, and profits through the use of a Supply Chain Management system. A thorough examination between buyers and sellers, along with the supply chain will be evaluated. This paper will investigate and analyze the ways in which the inventory management at Wal-Mart helps in its business processes. This paper will also look into the characteristics of supply chain management, including risk-management, inventory strategies and decision-making, and customer relationship aspects. Finally, it will look at the importance of sharing data by utilizing information systems. Supply chain is a network of retailers, distributors, transporters, storage facilities and suppliers that participate in the production, delivery and sale of a product to the consumer (Kietzman, 2008). Every effort involved in producing and delivering is looked at in supply chain, from the final product supplier's supplier to the customer's customer. A Business depends on supply chain to provide them with what they need in order...
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...china to develop its online apparel retailing. By June 2007, with daily average sale of 10000 shirts the company was close to the industry leader Youngor. The industry adopted vertical integrated value chain and manufacturing for more than 1500 retail stores through out the country. The company had 300 staff working for the call centre with no factory or retail store but with the powerful IT system that perform data stocking and transferring in more than 20 servers with this light asset model the entire value chain and company achieve subsequent growth for itself. They have targeted low end men apparel. The production standard from fabric to government was higher and therefore the risk for fabric suppliers producing in advance were lower, because the company contained complete value chain from cotton plating to government manufacturing. Although the Chinese customer was unfamiliar with the direct selling market. DISTRIBUTION CHANNEL PPG first store was its product catalogue and website other important stores was call centres which supported its value chain in gathering detail information such as customer location, age, buying habits, and occupation etc. This was an added advantage for lighter distribution channel. On the later run with intensive advertising data mining and supply change management were adversely affected. VANCL ChenNian is...
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