Monday, November 9, 2015
TWIF Flattener #7 - Supply-Chaining
Use one of the current events sources linked at http://svhs-hwc-spring-2016.blogspot.com/2015/11/approved-sources-for-twif-current.html 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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Title: Walmart Can’t Escape Clutter. Can You?
ReplyDeleteLink: http://www.nytimes.com/2015/12/20/opinion/sunday/walmart-cant-escape-clutter-can-you.html?_r=0
Summary: The article above talks about how certain companies, like Walmart and Target, who sell multiple brands at their shops are not displaying their products attractively. The write-up continues to describe how Walmart decided to display less products to decrease the clutter that they thought was turning customers away. Walmart soon realized that their decision to “clean out its aisles” actually costed them over one billion dollars in sales. That article does support Thomas Friedman when he describes, in flattener number 7, that one of the hardest aspects of maintaining a successful “global supply chains in a flat world” would be the amount of products displayed in the company’s aisles. Friedman writes that discerning what the customers appreciate is very challenging and that if the displays are lacking a certain item, then the company could lose that customer forever. The article relates to the supply-chaining flattener explained by Friedman because it gives a real life example of a company who lost money because it changed their aisle displays which reinforces Friedman’s point about being one of the challenges that supply-chaining companies deal with.
Title: Don't Eat that Shrimp
ReplyDeleteAuthor: Roberto A. Ferdman
Source: The Washington Post
Link: https://www.washingtonpost.com/news/wonk/wp/2015/12/15/the-shocking-truth-about-shrimp-today/
Summary: Due to massive and ever growing American demand for ready-to cook seafood, namely shrimp, many overseas workers particularly in Thailand are working almost like slaves to provide the supply for this booming industry. However, their employers notably in Thailand are employing immigrants for next to nothing and treat them like rubbish in order to both increase supply and deepen their own pockets. They are also exploiting loopholes in the US tariff and import system that allows them to export and sell unregulated shrimp in the US creating a dangerous consumer situation and an ever harsher work environment in Asia. While it is indisputable there is a problem with the system some support reform and boycott of Thai shrimp while other insist the way of fix the problem is to continue to support the Thai economy.
Explanation: While it is undoubted that supply-chaining has benefitted every one in some way whether it be lower prices or higher returns, when employers and suppliers take it to far, bad things happen. The way this relates to the book is in the fact that the book agrees that when supply chains are made to lucrative and efficient they can severely harm the workers how perform the manual tasks, in this case Thai shrimp peelers. Had the US corporations and consumer made more responsible decisions when it came who to buy their seafood from and how much of it to buy, the massive demand would be lower thus increasing both the quality of product and the quality of life and work for the workers who produce the products.
Title: Japan Disaster Breaks Auto Supply Chain
ReplyDeleteLink: http://www.npr.org/2011/03/22/134755634/Japan-Disaster-Breaks-Auto-Supply-Chain
Summary/Explanation:
This article is about the triple disaster in Japan and how it affected the automotive supply chain. An analyst, Tracy Handler, explains the role that supply chains take in this business and how if simply one piece is missing, the company ends up with nothing. If any part of the supply chain is down, it is very hard to replace. For instance, due to the work and complexity of car parts, if a factory is down, you can’t simply just use the next factory you find. According to the analyst, switching suppliers can take anywhere from six weeks to six months.
The relation between this article and the book is fairly evident as they both discuss supply chaining, but between different companies. Friedman talks about Wal-Mart, which is obviously a large company, and how supply chaining, “... has become a source of competitive advantage and profit in a flat world…”. Friedman and the article share similar ideas such as the role that each component of a supply chain has and how each one plays its own part in the overall process.
Title: Nestlé admits to forced labour in its seafood supply chain in Thailand
ReplyDeleteLink: http://www.theguardian.com/global-development/2015/nov/24/nestle-admits-forced-labour-in-seafood-supply-chain
Summary/Explanation: Nestle, the large food company has admitted that there are uncivil acts being done in the Thailand seafood sector. Thailand is the major seafood supplier for many companies around the world. Thailand’s seafood jobs attract immigrants from Myanmar and Cambodia, which are poorer, neighboring countries. The managers of these boats and seafood sectors treat the immigrants like slaves, and make them pay to work for them, making it impossible to make any profit from the work they put in. Some of the immigrants say they have trouble surviving day in and day out, and when people do die, they are thrown over the edge of the boat into the water. This article is in full agreement with Friedman’s points about Walmart. He talked about how Walmart hired illegal immigrants and made them janitors. Friedman’s main point was that large supply chain companies will do anything to cut costs down so that they make more profit, even if it involves harming other people. This article also relates to how flat the world has become. Basically, businesses from rich countries move factories and plants to other countries. Then, people will who are looking for jobs will then go to those countries to get paid and they end up getting paid a very little amount by the company. Overall, this article fully agrees with Friedman’s points about supply-chaining.
This comment has been removed by the author.
ReplyDeleteTitle: Viewpoint: the transparent supply chain
ReplyDeleteLink: http://www.bbc.com/news/business-20629520
Summary:
This article evokes one particular idea: "Do we ever stop and think about the complicated process that allows for us to obtain a certain product?" This "complicated process" refers to the supply chain. The article describes the supply chain as creating and processing a product, and then distributing it to consumers. It is pointed out that certain resources (such as oil) are necessary to keep the global supply chain running, and then certain theories are proposed as to how these resources can be sustained. It is implied from the information in this article that if the global supply chain were to be interfered with, the interconnection between different parts of the world would be hindered.
This article fully relates to Friedman's assertion that supply chaining is a flattener. Friedman compares the supply chain to a river that then branches off into many smaller streams. The article describes the supply chain as beginning with creating and processing a product (main river), and then distributing the product to consumers (smaller streams). Another way in which the article supports Friedman's assertion is that the article discusses the importance of preserving resources. Based on this, the author of the article clearly understands the essentiality of the supply chain, as the suggestions on saving resources would have not been included otherwise. For these two reasons, it is clearly evident that the article fully agrees with the assertions of Friedman.
Title: Vatican Commits to Slavery-Proofing Their Own Supply Chains
ReplyDeleteLink: https://www.washingtonpost.com/world/europe/vatican-commits-to-slavery-proofing-its-own-supply-chains/2016/01/18/98527fcc-be14-11e5-98c8-7fab78677d51_story.html
Summary:
After some of the largest supermarket chains and food manufacturers announced that they will be slave-proofing their supply chains, Pope Francis decided to do the same for the Vatican. The Vatican’s top finance official announced this at a gathering of The Global Foundation. France-based Consumer Goods Forum announced that they, too, will be trying to get rid of the slavery from their chains. The announcement was hopped to encourage other chains to do the same as the Vatican was. This related to The World is Flat because one of the world flatteners is supply-chaining. Supermarkets get food from many different places which creates a supply chain. Some of these supply chains, however, are forcing people to do the work for little or no pay.
Title: Does the oil crash signal another financial crisis?
ReplyDeleteLink: http://theweek.com/articles/600267/does-oil-crash-signal-another-financial-crisis
The oil business involves drilling for oil and then distributing it to the public. It involves a hired workforce and building crew, so the oil is often distributed by demand. Recently, however, oil companies have been running into debt. This is due to the fact that all of the payments for drilling must be distributed before the oil is actually sold. Since banks are not anxious to close accounts on oil drilling companies because they are important, the oil companies are sinking further and further into debt. This relates to the supply-chaining flattener mentioned in The World is Flat because it shows some of the cons of supply and demand. It does however demonstrate a real-world supply and demand company.
Title: One in five firms face supply chain bullying, says FSB
ReplyDeleteLink: http://www.bbc.com/news/business-30427503
Summary: Many large retailers have been demanding suppliers to pay extra in order for business to continue between them. The Federation of Small Businesses has determined that 5% of businesses have been subjected to these demands. Large retailers are exploiting the smaller suppliers need for business. Many actions have been taken to make sure a that suppliers are not mistreated, such as the Prompt Payment Code. This article supports Friedman's seventh flattener, which is all about supply chaining. In his book Friedman targets Walmart, the world's largest supply chain and talks about their ability to "...grind down any supplier to the last halfpenny" (Friedman 163). The article also attacks large retailers who are bullying their suppliers.
Title: Wal-Mart Unveils Plan to Make Supply Chain Greener
ReplyDeleteLink:http://www.nytimes.com/2010/02/26/business/energy-environment/26walmart.html?_r=0
Summary:
Throughout Friedman’s explanation of supply-chaining, he focused on Wal-Mart. He said that Wal-Mart revolutionized computer tracking systems through the creation of the RFID which is a small microchip that can interact with the items and send reports of the item’s condition. The article explained that Wal-Mart proposes a plan to cut around 20 million metric tons of greenhouse gas emissions from its supply chain by the end of 2015 which is equivalent to taking away 3.8 million cars off the road. Wal-Mart plans to carry out this plan by asking their suppliers to rethink their strategy for how they source, manufacture, package, and transport their goods with the highest embedded carbon. Any modifications done to help improve the supply chain will be done by the supplier, but Wal-Mart’s sustainability executives are there for guidance. Not only is Wal-Mart planning for their future, but they also see this as an opportunity to cut even more costs out of their supply chain to keep their low prices. Just as Friedman mentioned, Wal-Mart is known for knocking out the competition due to their highly efficient supply chain which no one else can seem to mimic, leading to their extremely affordable prices. Also, Wal-Mart is sure that their suppliers’ products will stay high quality because they are also in a situation to make more money by reducing their own packaging. This article corresponds with Friedman’s section on Wal-Mart’s supply chain by adding new information on a recent mission for cutting emissions and cost on their already profitable supply chain.
Title: "Walmart Ordered to Reinstate Workers"
ReplyDeleteLink: http://www.bbc.com/news/business-35386656
Summary: This article overviews the court decision that Walmart had to offer jobs to employees that took place in a strike and missed their shifts. The claim of the workers was that they were discriminated against while Walmart claimed that it was legal to fire the workers. The court decision was that Walmart had to pay the workers for the time that they missed, offer the employees a job back, and inform Walmart employees that it is legal to strike with no consequences. Many strikes of Walmart employees are a result of underpay. This ties into Friedman's claim that the lowest cost and highest quality cannot both occur in the large scale, and shows that supply chaining is a flattener because each person will want the scale to tip a different way. Supply chaining attempts to balance out the scale to produce the best result for both parties.
Title: Ready, Set, Drone: Wal-Mart Joins Amazon, Google In Testing Delivery Drones
ReplyDeleteLink: http://www.npr.org/sections/thetwo-way/2015/10/26/452012328/ready-set-drone-walmart-joins-amazon-google-in-testing-delivery-drones
Summary: Walmart has applied for the FAA's permission to use drones for the purpose of corporate and or even customer deliveries. Various Walmart spokesmen have brought up the point that there is a Walmart within 5 miles of 70 percent of the U.S population, and having delivery drones would be one of the largest and most innovative conveniences of the era. This wouldn't just the customers, different stores can have miscellaneous services done by these drones, and it would exponentially raise the companies efficiency. Walmart isn't the only corporation that plans on investing in drones. Amazon and Google have also filed applications to the FAA for delivery drones. All of these applications will be reviewed within the next year or so.
Explanation: This article fits perfectly with this flattner simply because efficiency is key. Supply-chains want to make the most of efficiency, and make sure their money is not being wasted in any particular way. If these delivery drones were to be applied into Walmart's "cycle of production", they would see a colossal rise of efficiency. These drones would be not only able to save time and money, they would leave a lasting effect on the nation and would be seen as a very modern corporation that prioritizes efficiency.
Title: Today’s Top Supply Chain and Logistics News From WSJ
ReplyDeleteLink: http://www.wsj.com/articles/todays-top-supply-chain-and-logistics-news-from-wsj-1453460268?mod=ST1
Summary: The article targeted multiple examples of the realities of supply chains belonging to massive corporations and established industries. The article goes over transportation, infrastructure, and financial institution that all coincide with the global markets and events. Increased markets and growing innovation continue to reverberate throughout the world. These underlying elements serve as flatteners, thereby tying everything together. Now, what was a cause there has an effect here. New technologies are overthrowing the traditional ways of business. Friedman's supply chains are forced to adapt and become more advanced in order to accommodate these increasingly open markets that such chains started.
Title: The handshake deal with Walmart was not enough
ReplyDeleteLink: https://www.washingtonpost.com/opinions/the-handshake-deal-with-walmart-was-not-enough/2016/01/20/1c38fa64-bdf7-11e5-98c8-7fab78677d51_story.html
Summary: This article is rather short but talks about how Walmart went back on its agreement with the Mayor to build two stores east of the Anacostia River. The district never made a contract agreement with Walmart so while it looks bad for Walmart, there is no financial consequences. Instead of Walmart opening stores to the district's poorest area, they will instead be looking to open stores in other areas where they are bound to make more money. This article relates to Friedman's Flattener #7 because it talks about how a the supply-chain Walmart can keep growing and growing. Wherever it opens its new stores, it will be needed.
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ReplyDeleteTitle:Supply-chain management
ReplyDeleteLink:http://www.economist.com/node/13432670
Summary:The article talks about the fact that a number of companies, such as Wal-Mart,have managed to have great success while doing ordinary things, has made managers more aware that what their companies produce can matter a lot less than the way that they produce it. Much of the improvement in supply-chain management in the most recent years has come about due to technology. Technology has allowed more companies to keep up with the latest trends, or find out accurate information. More success will promise growth. This relates to Friedman's Flattener "supply-chain," because it talks about the success of supply-chain stores.