Toyota, other major Japanese firms hit by quake damage, supply disruptions
Toyota Motor said it would suspend much of its production at plants across Japan this week after earthquakes in the country’s south led to a shortage of parts, while some other manufacturers extended stoppages due to damage to factories. The earthquakes on Thursday and Saturday, which killed at least 41 people, reflected the vulnerability of Japanese companies to supply chain disruptions caused by natural disasters, and also highlighted the “just in time” philosophy pioneered by Toyota and followed by many others.
Will Amazon’s Effort In Fashion World Be Successful?
Bloomberg recently mentioned that Amazon changed prices an average of 9.2 times per item whereas Macy’s changed 2.1 times and Kohl’s changed 1.5 times within the specific period. This shows the ability of the platform to try different price points to increase sales and maximize margins. All these efforts yielded a growth rate of 25% in the last year for Amazon. In comparison to this, Macy’s Inc. fell 3.7% and Kohl’s Corp. grew by a paltry 1%.
More Companies Turning to Sensors For Supply Chain Visibility (Spendmatters)
Sensors are proving to be one of the most widely adopted emerging technologies impacting supply chains today. The sensors provide data on the location and the condition of a company’s supplies and products as they are transported around the globe.They allow companies to gain end-to-end visibility of their supply chains and reduce risk. It’s a benefit more organizations are taking note of and continuing to drive adoption rates up.
Hands, heads and robots work in sync at Amazon warehouses
Amazon’s DuPont fulfillment center is a sort of laboratory for how the company is using robots to do much of its heavy lifting. But it also shows how the human workforce is not only necessary but superior in some respects.
Tesla is not the next Apple
Just because Apple can sell hundreds of thousands of $500 phones on faith, purely on the strength of the firm’s design credentials, is not an indicator that Tesla or any other automaker can. Tesla has proven it can create massive hype, but it has yet to show it can embrace the unsexy and extremely challenging task of building complex cars at mainstream scale with competitive quality. Instead of trying to be Apple, Tesla should be focused on developing the skills that will allow it to thrive in the brutally competitive, 90 million car-per-year market for boring, reliable transportation.
Eight Technologies Revolutionizing Supply Chains (Forbes)
These are the eight most-mentioned technologies supply chain professionals anticipate will revolutionize supply chains in the next ten years:
1. Predictive Analytics
2. Robotics and Automation
3. Sensors and automatic identification
4. Wearables and mobile technology
5. Driverless vehicles and drones
6. Inventory and network optimization tools
7. Cloud computing and storage
8. 3D printing
What Home Depot Is Doing Right That the Competition Isn’t
The first differentiator is that Home Depot has the biggest full-service home improvement store presence in the U.S.
The second is that the company has invested heavily in supply chain and logistics technology. Back in 2012, Home Depot purchased a data analysis and pricing company to help make merchandise decisions and product price reduction decisions. Over the last two years, the home improvement store has also rolled out tools for its associates to be able to locate items in stores more quickly, introduced new customer ordering options like in-store scheduled pick-up, and integrated third-party company installers into the company’s communication system to enhance responsiveness to customers. In 2015, Home Depot also announced that a new supply chain synchronization system it had been piloting would be extended to new markets to increase sales efficiency and increase product delivery times.
Warehouse Rental Rates Jump as Industrial Capacity is Squeezed (WSJ)
The first annual Prologis Logistics Rent Index report, which examined net effective rents in 57 major global markets, found that the U.S. outpaced the rest of the world in 2015 in the growth of industrial rental costs. Domestic industrial rents rose 9% last year and were up 25% over the past three years. Globally, rate growth was also strong, with rents rising 6% last year and more than 20% since 2012.