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Germany’s ZF to Acquire TRW Automotive for Product Innovation Leveraging

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The current waves of industry acquisition frenzy continue as cheap money remains available, and as usual, industry supply chains are impacted. Today’s business headlines include a massive deal involving two global automobile systems, components and parts suppliers.  ZF Friedrichshafen AG announced its intent to acquire TRW Automotive Holdings in a reported all-cash deal that is estimated to be in excess of $11 billion.  According to reports, this deal would form an industry supplier with combined annual revenues near $41 billion, rivaling the size of other major global industry suppliers Robert Bosch and Denso. Under the deal, TRW would become an integrated but separate operating unit of ZF. The combined research and development investment portfolio exceeds $2 billion. This transaction requires several closing conditions and the approval of TRW stockholders, and is expected to close in the first-half of 2015. According to the press release and statements from ZF’s CEO, the […]


Alcoa Announces Supply Deal with Boeing

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In our streaming Supply Chain Matters commentaries related to Boeing’s supply chain efforts in commercial aircraft production, we have highlighted that the global aerospace provider has been re-negotiating its key commodity and specialty supplier agreements in an effort to reduce long-term costs. Last week, Alcoa announced a multiyear aluminum supply with Boeing’s Commercial Airplane unit valued to be more than $1 billion. According to the announcement, the agreement makes Alcoa the sole supplier for wing skins on its metallic structure commercial aircraft, while aluminum plate products used in wing ribs or other structural aircraft components.  The two parties indicate that they will continue to collaborate on developing newer, high-strength and corrosion resistant alloys including aluminum-lithium applications. This supply agreement represents nearly a 25 percent potential boost to Alcoa’s existing aerospace industry business unit. Details of the new supply agreement were not disclosed and thus how much Boeing was able to […]


A Time for Broader Technology Vision Across Supply Chain Execution Partner Ecosystems

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This author has been writing and speaking on the significant impacts that the Internet of Things (IoT) will have on industry supply chains in the next five years. Physical devices such as sensors, production equipment, transport vehicles and other supply chain focused devices connected to the Internet, transmitting valuable data and insights, literally bring the notions of connecting the physical and digital supply chain closer to reality.   More and more industry supply chains have opted to outsource logistics, transportation and customer fulfillment to outsourced logistics and transportation partners and thus leveraging the potential benefits of IoT becomes a de-facto capability requirement. They also require broader vision among supply chain service providers for incorporating such strategies in their strategic planning. Industry supply chain teams have gained significant learning from previously vendor hyped, single focused initiatives such as RFID, which ultimately had to overcome initial unplanned and unforeseen cost and technical […]


Lululemon Reported to be Turning the Corner from Previous Supply Chain Snafu

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Supply Chain Matters provides our readers periodic updates to examples of how supply chain snafus can impact business performance. In that light, we have provided ongoing commentaries related to Lululemon Athletica and its prior sourcing and production snafus of one of its most popular line of yoga pants for women. In March of 2013 this global B2C online and brick and mortar specialty retailer was forced to both recall and stop selling its most popular line of women’s summer yoga pants after discovering that the “sheerness” of the fabric allowed too much to be seen underneath.  The CEO was compelled to publically apologize to customers for the problem and a short time later, announced her desire to step down from her CEO role due to personal reasons. Later in 2013, both a new CEO and Chief Products Officer was brought on-board, unfortunately too late to make any influential impact regarding […]


Accelerating Productivity for Existing SAP APO Planning Teams

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In previous Supply Chain Matters commentaries, we have observed that utilization of SAP’s supply chain focused applications can serve as both a blessing and a curse. The blessing comes from the structural rigor for integrating enterprise-wide transactional, operational execution and master data with supply and demand planning.  This rigor is often cited as the curse, since today’s highly dynamic supply chain business processes are expected to respond to ever increasing levels of network-wide complexity. Adding supplemental supply chain suppliers, partners or planning locations can cause planners to fall behind and become the critical stumbling block. The problem exists both in rather large as well as growing supply chain organizations. In the specific case of SAP’s APO (Advanced Planning & Optimization), many SAP customers have deployed the Demand Planning application incorporated within SAP APO. It is probably the most widely deployed module, and for good reasons.  Many industry supply chains are […]


Many Signs of a Highly Competitive Online Holiday Buying Season

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Streaming reports over the past several weeks provide every indication to Supply Chain Matters that supply chain teams need to be prepared for highly competitive, promotional-driven online buying activity in the upcoming holiday buying surge. If there were thoughts that last year’s period was stressful, we venture that this year will bring similar stress. As we have further noted in prior commentaries, the evidence is growing that shoppers have permanently altered their shopping habits in favor of online. Thus, this year will provide interesting online challenges and we predict another round of blame games. Similar to last year, the period between the Thanksgiving and Christmas holidays is relatively short.  If the combination of bad weather and savvy online consumers plays out again when online consumers waited for the most attractive last-minute deals, online business results will be factored by which online retailer offers the best promotions as well as free […]


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