Dell and Caterpillar Reduce Freight Costs with Mode Shift
When supply chain professionals think of mode shift they think of moving from faster and higher cost modes, like truckload, to a totally different mode, like rail. But you can also stay in a mode and achieve the same thing.
Amazon Moves in With P&G (WSJ)
The e-commerce giant is quietly setting up shop inside the warehouses of a number of important suppliers as it works to open up the next big frontier for Internet sales: everyday products like toilet paper, diapers and shampoo.
Unplugging Bottlenecks in Oil and Gas Deliveries (NYT)
The North American shale boom has brought with it many benefits, including new jobs, cheaper electricity and the potential for energy independence. But as producers tap ever more oil and gas, they are also exposing major shortcomings in the country’s transportation system and grappling with a problem of plenty: how to move all that product to market?
US Textile Plants Return with few people (NYT)
In 2012, the M.I.T. Forum for Supply Chain Innovation and the publication Supply Chain Digest conducted a joint survey of 340 of their members. The survey found that one-third of American companies with manufacturing overseas said they were considering moving some production to the United States, and about 15 percent of the respondents said they had already decided to do so.
“This is a completely different manufacturing paradigm than what we saw 10 years ago,” said David Simchi-Levi, a professor at M.I.T. who conducted the survey.
The iPhone’s Secret Flights From China to Your Local Apple Store (Bloomberg)
As Apple CEO Tim Cook unveiled new iPhones on September 10th, a complex operation had already kicked into gear behind the scenes to send millions of the handsets to store shelves worldwide. The process starts in China, where pallets of iPhones are moved from factories in unmarked containers accompanied by a security detail. The containers are then loaded onto trucks and shipped via pre-bought airfreight space, including on old Russian military transports. The journey ends in stores where the world’s biggest technology company makes constant adjustments based on demand.
Maersk, Daewoo Build the World’s Biggest Ship (BW)
The biggest ships in the world are being built by Daewoo for the Danish shipping line A.P. Møller-Maersk . They’re container vessels that will ply the route between Northern Europe and China called the Triple-E, and Maersk has ordered 20, at a cost of $185 million each. They’re 1,312 feet long, 194 feet wide, and weigh 55,000 tons empty. A cargo vessel of this size was unimaginable a half century ago, when the first container ship sailed from Newark, N.J., to Houston carrying 58 containers. Twelve years later the biggest container ship carried 1,200, and by 1996 the Regina Maersk class had a capacity of more than 6,000 20-foot equivalent units, or TEU. The Triple-E’s capacity is 18,000 TEU. (Most containers today are 40 feet long, so the number carried will be closer to 9,000.)
Fast and Flawed Inspections of Factories Abroad (NYT)
As Western companies overwhelmingly turn to low-wage countries far away from corporate headquarters to produce cheap apparel, electronics and other goods, factory inspections have become a vital link in the supply chain of overseas production. An extensive examination by The New York Times reveals how the inspection system intended to protect workers and ensure manufacturing quality is riddled with flaws.
After Decades of Toil, Web Sales Remain Small for Many Retailers (WSJ)
Nearly two decades after the Web revolutionized shopping, many big retailers are still struggling to turn the Internet into a big part of their business.
Amazon sells more online than its next 12 biggest competitors combined, including Staples and Wal-Mart, according to the trade publication Internet Retailer.