Under Armour’s vision for future manufacturing: make local for local
Under Armour plans to start developing and perfecting technologies next year to enable a “local for local” model, building on systems it already uses to make its Speedform running shoes in a lingerie factory. Want to show that if they can make something as labor-intensive as a $25 T-shirt or a $100 pair of shoes in Baltimore, you can effectively make anything anywhere.
Home Depot Supply Chain Deals with Omni-Channel (SCDigest)
Home Depot Integrates Its Two Supply Chain Networks to Address Order On-Line, Pick Up In Store. Items are Shipped from Three Fulfillment Centers to Existing Cross Dock Networks, Merged with Regular Merchandise Headed to Stores
China’s Strategy in U.S. Car Market: Make Parts First (WSJ)
Chinese car companies do make and sell cars in markets such as Russia, Egypt, Ukraine and Thailand. But the Chinese government’s big thrust is to subsidize its auto industry’s move into parts. In its latest guidelines for China’s auto industry, in 2009, the National Development and Reform Commission, China’s top economic-planning agency, required the country’s auto-parts makers to go all out to enter the global purchase network.
Why Airbus Built a U.S. Factory (Bloomberg)
Airbus, which sells lots of planes to U.S. airlines, is opening its first plant in the country today. This is a big shift from a decade ago, when it seemed as if all supply chains were going to go through China. It may even help explain the manufacturing slowdown in China, MIT engineering professor and supply-chain expert David Simchi-Levi wrote in the Harvard Business Review earlier this month.
Companies Struggle to Comply With Rules on Conflict Minerals (NYT)
A complex provision in the Dodd-Frank financial reform law requires companies to disclose their use of conflict minerals “necessary to the functionality or production” of products they make or contract out for manufacturing. Conflict minerals are tantalum, tungsten, tin or gold mined from ore, and extracted in Congo or nine surrounding countries, including Angola, Rwanda and Sudan. Minerals from the countries, long mired in civil war, violence, acts of rape and the use of child soldiers, appear in a variety of products. Tantalum, for example, allows Apple’s iPhone to maintain an electrical charge. Tungsten permits the filaments in General Electric light bulbs to get hot enough to emit a bright light without melting, and tin gives party balloons their special sheen.
You Can’t Understand China’s Slowdown Without Understanding Supply Chains(HBR)
The last few weeks have brought news of turmoil in China, including currency devaluations, an economic slowdown, and a stock market plunge. Most economists, including those at the the IMF, think it is premature to talk about an economic crisis. While I agree, I nonetheless believe that the slowdown is due, in part, to an acceleration of “near-shoring,” the practice of producing closer to the customer.
The Experts’ Choice of the Top Online Logistics Resources
This blog is mentioned as one of the top blogs in Experts’ Choice: Logistics and Supply Chain Blogs
Behind Deadly Tianjin Blast, Shortcuts and Lax Rules(NYT)
The catastrophe in Tianjin at the Rui Hai warehouse has stunned a nation inured to living with one of the worst industrial safety records in the world. The company exploited weak governance in one of the party’s showcase economic districts and used political connections to shield its operations from scrutiny.