Sunday, November 25, 2012
TWIF Flattener 7 - Supply-chaining
Use one of the current events sources linked at http://mrsfridaysclass.wikispaces.com/Current+Events to find a recent news article that relates to, supports, or refutes Friedman's assertion that supply-chaining was a "flattener." Your comment should include the title of the news article, a link to the article, and a summary of the article including an explanation of how the article relates to this point. Don't forget to check your rubric for evaluation criteria!
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ReplyDeleteMississippi River Level Disrupts Supply Chain
ReplyDeletehttp://www.npr.org/2013/01/09/168926985/mississippi-river-level-disrupts-supply-chain
Due to the extreme drought afflicting the Southwest and Midwest, a nationwide supply chain begins to crumble. Not only does the drought affect production, farming, and agriculture, distribution becomes less efficient and more expensive. The transportation of crops, coal, and petroleum across the United States relies on ferrying bulk quantities down the Mississippi River on barges. However, the severe drought has caused water levels on the Mississippi to reach historic lows. Consequently, barges face the risk of running aground. As the drought shows no signs of relenting, companies have begun to lighten the loads on barges. However, barge traffic is still coming to a dead standstill because some parts of the river are too low for travel. Alternatives, such as trucking, are much more costly as the transport less product on more fuel. Another alternative, railroads, does not solve the problem either because companies have built their supply chain around the Mississippi River. Furthermore, Friedman states that supply-chaining is a "flattner”. The country has come to rely on the continental and global supply chains for almost all necessities. Additionally, in "The World is Flat," Friedman explains that supply chains have significantly reduced the cost of living. If the Mississippi River dries up, consumers will have to cope with exorbitant rises in food and gas prices as the corn crop becomes more expensive to transport. The supply-chains that revolutionized consumerism are beginning to dissipate due to extreme drought conditions. After decades of industrialization, the United States supply chains will have to adapt to meet consumer demand. Friedman defines supply chaining as, “a method of collaborating horizontally-- among suppliers, retailers, and customers-- to create value” (152). Without the Mississippi River as a mode of transporting goods, values is lost, prices rise, and supply chains disintegrate.
Apple iPhone Needs to Adapt to Emerging Market Growth, Sculley Says
ReplyDeletehttp://www.washingtonpost.com/business/apple-iphone-needs-to-adapt-to-emerging-market-growth-sculley-says/2013/01/15/e23fed82-5eb2-11e2-8acb-ab5cb77e95c8_story.html
This article basically talks about Apple's need to lower the price of the iPhone in order to compete with other companies. Recently, the iPhone 5 has been selling weakly, due to cheaper competitor prices. To make this adjustment it is said that Apple needs to cut down on prices and tweak the supply chain accordingly. This article relates back to "The World is Flat" because Friedman explains in his book that in order to have a successful global supply chain, the company must have "the best producers at the lowest prices..." (153). He then goes on to say that if a company is missing one of these key components, the competitors will take advantage of that. Here it is clear that Apple is not getting the most for their money, and therefore have to adjust their supply chain so that they can lower prices and compete with other companies. This is a perfect example of what Friedman warned companies about. If Apple cannot lower its prices then its competitors will take over the market.
Wal-Mart plans $50 billion "buy American" push
ReplyDeletehttp://www.reuters.com/article/2013/01/15/us-walmart-us-idUSBRE90E0MB20130115
Friedman’s flattener #7 was called “supply-chaining” and referred to Wal-Mart as an example of a “hyper efficient supply chain.” A supply-chain flattens the world by connecting manufacturers/suppliers. retailers, and customers regardless of the distance between any link in the chain. An efficient supply-chain can result in profits for the retailer and satisfaction for the consumer. However, as both Friedman and this article point out, although Wal-Mart is able to keep prices low, it sometimes causes unfavorable decisions along the supply chain. Supplies are often made in other countries to reduce costs (such as China) and employees in the U.S. are paid lower wages. To rectify some of these issues, according to this article, Wal-Mart plans on buying an additional $50 billion in American made products in the next 10 years and improve working conditions for its employees. Wal-Mart demonstrates that even a hyper efficient supply chain can be improved.
Auto Supply Chain Feels Japan Quake Reverberations
ReplyDeletehttp://www.npr.org/2011/03/15/134555828/auto-supply-chain-feels-japan-quake-reverberations
As a result of the earthquake and tsunami in Japan, the auto supply chain is in a downward spiral as production is at a standstill. In the article, the automobile industry is becoming increasingly global. With this natural disaster taking place, it has a negative effect on the production of the product as well as the distribution of the product to create revenue. As a result, distributors in other countries, such as the U.S., where Subaru makes 55% of all vehicle sales, are affected. Even small events in countries half a world away have an effect. This relates to The World is Flat because it shows how interconnected the supply chains make countries because of the companies/industries involved, in this case, the auto industry. This supports Friedman's claim that Supply-Chaining flattens the world because events like what happened in Japan can effect other countries and companies, bringing them to the same level playing field as the primary affected country or company.
Documents Reveal New Details About Walmart’s Connection to Tazreen Factory Fire http://www.nytimes.com/2012/12/11/world/asia/tazreen-factory-used-by-2nd-walmart-supplier-at-time-of-fire.html?_r=0
ReplyDeleteFriedman writes a great deal about Walmart being the leading innovator for flattener #7, supply-chaining. He says that Walmart itself is an important flattener because it is the world's most successful global supply-chain implementer. Walmart is able to find the world's best vendors/producers of goods at the lowest prices to bring into it's supply-chain which brings the best value to it's customers. This article shows how important, but difficult it is to manage a global supply-chain, in a flat world. The article reports about a fire at a manufacturing plant in Bangladesh which killed 112 workers. Walmart stated that it had told a supplier months before the fire to stop using that plant to manufacturing items for them. However, documents found at the plant, showed that the plant was still making items for Walmart at the time of the fire. Walmart thinks a subcontrator was still using the plant even though Walmart had not authorized it to do so. Walmart looks bad as it seems that it was using workers in a plant without proper fire standards to make products for them and that it resulted in many deaths. This incident shows the importantnce in managing a global supply chain in a flat world as every link in the chain is ultimately tied to the company and can effect it's reputation.
Honda workers in Swindon 'shocked and angry' at job cuts
ReplyDeletehttp://www.bbc.co.uk/news/uk-england-wiltshire-20983181
This articles describes the way that a Honda manufacturing plant in Swindon laid off numerous workers without warning, and reveals multiple scandals that went on in the company. As Friedman and this article note, companies being able to keep prices low can cause unfortunate consequences along the supply chain. Parts for Honda's cars are often outsourced then the American employees who put the cars together are paid very little. In order to keep costs down, Honda was promising long term jobs following a short-term (6 month) contracts to workers. But, once many 6 month contracts ended, the employees were dropped. The employee moral at the plant has gone dropped and many are constantly worried about the status of their jobs. Friedman explains almost exactly this scenario in his book. This powerful company is trying to keep costs down to make the largest profit possible, but as Friedman explained, this makes it difficult for the remaining employees to feel confident in their job.
Apple's Supply Chain Problem
ReplyDeletehttp://articles.marketwatch.com/2012-02-03/commentary/31029194_1_supply-chain-apple-products
In The World is Flat, Friedman talks about how supply chains flattened the world because they are a method of collaborating horizontally with suppliers, retailers, and customers. The down side of supply chains is that if something goes wrong, it can lead to many more problems. This happened to Apple's supply chain, back in February. The supply chain had to significantly change to recover from the mishap. The author, Patrick Burnson, explains that U.S. manufacturers have been warned about sourcing products from China. Burnson believes that the population of Apple customers should expect that Apple will move jobs from China to the U.S. again. Furthermore, he explains that if the Apple company were smaller than it currently is, it would have taken much longer to restore the successful impression that Apple has made towards the population. This article relates to Friedman's seventh flattener. However, Friedman talked about how commendable Walmart's supply chain was, and only mentioned a few downsides to supply chains. Burnson's article in a way refutes Friedmain's point. Apple's supply chain was not as successful and needed to undergo changes so it would not negatively effect Apple's business.
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ReplyDeleteDrew Barrymore says her Flower beauty brand is growing from the ground up
ReplyDeletehttp://www.washingtonpost.com/lifestyle/drew-barrymore-says-her-flower-beauty-brand-is-growing-from-the-ground-up/2013/01/17/4d88c848-60e3-11e2-bc4f-1f06fffb7acf_story.html
Drew Barrymore a well known actress is now starting her own beauty brand sold exclusively at Walmart. The brand Flower Films is good for Barrymore considering she's been in the makeup chair since she was just 6. This relates to book "The World Is Flat" flattener #7 because Friedman discusses Walmart and how the company is the biggest retail store but does not make a single thing. Barrymore's make up line is just more evidence to this. Supply-chaning comes into play when Barrymore sold Walmart the company. The prices of the new line range from $5 to $14 dollars, being very cheap for makeup. This supports flattener #7 in the face that it is cheap prices, and will bring Walmart more business.
Japan Disaster Breaks Auto Supply Chain
ReplyDeletehttp://www.npr.org/2011/03/22/134755634/Japan-Disaster-Breaks-Auto-Supply-Chain
In the World is flat Friedman's 7th flattener was supply chaining. In the book Friedman describes supply-chaining as a harmonious action that brings products together and sends them to be distributed throughout the world. The article however shows that if even a single thing breaks down in a supply chain the entire chain can break down. This would contradict Friedman's idea that supply-chains are much more efficient than other methods because as stated in the article to make a car one must have all the pieces and if even one part is missing the car cannot be shipped out and the entire production must stop.
Worry Over Sales Spurs Talk of Cheaper iPhones
ReplyDeletehttp://www.nytimes.com/2013/01/15/technology/worry-over-sales-spurs-talk-of-cheaper-iphones.html?_r=0
This article discusses the possibility of iPhones becoming less expensive. The iPhone 5 has not sold as much as Apple would have liked, so the supply right now is greater that the demand. This is what causes the iPhone 5 to be so much more expensive than its other smartphone competitors. A source in Apple's supple chain for the iPhone 5 says that Apple recently reduced their order for new screens due to the lack of sales. This relates to The World is Flat because Friedman talks about how supply-chaining can help companies to reduce costs. If companies need to cut costs they can buy parts from all over the world at a cheap price to create their products, and ship it to their stores quickly. This article neither supports nor refutes Friedman's theory that supply-chaining helps to cut costs since the supply is higher than the demand for Apple, which is why their stocks are falling and they are losing money, not because of a problem with their supply chain.
Skilled Work, Without the Worker
ReplyDeletehttp://www.nytimes.com/2012/08/19/business/new-wave-of-adept-robots-is-changing-global-industry.html?pagewanted=all&_r=0&gwh=DA960452E13A64E0339712C229918978
In this article, it discusses how robots are taking over the work force. Using robots instead of humans is a much more efficient way of working. Robots are more precise when working and cancel the chance of human error. Robots are also never late or sick. The seventh flattner that Friedman talks about in his book is that, Walmart, one of the biggest retail stores in the world uses robots on the conveyor belts instead of humans. Walmart found out that this is a more efficient way to sort and store supplies. This article connects to what Friedman was saying because it talks about how robots are the future of the work force. The robots do tasks with more prescision and in a more consistant fashion. This flattens out the playing field because you can make the product anywhere in the world. Any company can obtain robots to make and sort the product.
Food for Thought
ReplyDeletehttp://news.nationalgeographic.com/news/2013/01/pictures/130115-climate-change-superstorm-atmosphere-science/#/orange-orchard-california_63396_600x450.jpg
This articles says how the climate change will affect the produce of fruit and the chain of production will be screwed up. This is similar to this flattener because if the Wal-Mart supply chain were to fall apart or break down then it would cause simple people difficulties. The way Wal-Mart is now makes peoples live easier.
Wal-Mart Toughens Fire Safety Rules for Suppliers After Bangladesh Blazehttp://www.nytimes.com/2013/01/23/business/wal-mart-toughens-fire-safety-rules-for-suppliers.html?_r=0
ReplyDelete112 workers died in a fire in November and Walmart wants to put more fire safety rules in and to not have a tolerance for suppliers that are unauthorized. Wal-mart had two suppliers from Bangladesh and they are the cause of the fire. This relates to flattener 7 because it shows that Wal-mart has suppliers from other countries. They have workers from all around the world working for them and using their supply-chaining.
Stress Test for the Global Supply Chain
ReplyDeletehttp://www.nytimes.com/2011/03/20/business/20supply.html?pagewanted=all&_r=0
This article discusses how the earthquake in Japan hindered the supply chain method that was taking place globally. The article touches base with the fact that supply chains are much like a human's body system. It seems to be invincible to small errors and faults, but once a major part is damaged, it can't function properly. It also says that if one branch of the network breaks down, the other branches in other locations will pick up the work.