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Syracuse University’s Whitman School Announces Annual Salzberg Award Recipients

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The H.H. Franklin Center for Supply Chain Management at Syracuse University’s Martin J. Whitman School of Management earlier this month presented its Annual Harry E. Salzberg Memorial Award. The Salzberg award is noted as the oldest supply chain award in the United States and was created in 1949 with a gift from Murray Salzberg in honor of his father Harry E. Salzberg, a transportation entrepreneur.  The announced winner of this year’s 65th Annual Salzberg award was Cummins, Inc., a global based designer manufacturer and distributor of diesel and natural gas engines and related technologies. Accepting the award on behalf of Cummins was Theodusia Rush, Executive Director of Global Supply Chain Planning and Logistics. Presenting the award on behalf of the University is Gary La Point, Professor of Practice and Director of the Salzberg Program at Syracuse University. Established in 1949, the annual Salzberg award is presented to an organizationor individual […]


China Branded Trains Appearing in a U.S. Subway System

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If our readers have had the occasion to travel to Boston, you might have experienced the public transit subway system which is referred to as the “T”. Typical to the historic nature of the city, its subway system dates back to the late 1800’s. Today, its subway lines are denoted by colors, namely the Red, Green, Orange and Silver lines. Last week, another very important milestone took place. The Massachusetts Department of Transportation awarded a contract to China’s state-owned CNR Corp. for the replacement and delivery of 284 modern subway cars.  The important headline for this development was the awarded contract cost, namely $567 million, is a rather compelling sum for this amount of modern equipment.  It its reporting, Bloomberg News echoed that this was the first deal of this kind for a Chinese company in the U.S.: “The deal breaks new ground for Chinese train makers whose overseas push, […]


Severe Congestion at Key West Coast Ports Lead to Needs for Creative Actions

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Throughout the summer months, Supply Chain Matters as well as other supply chain management focused media have been monitoring the ongoing threat of potential west coast port disruptions. The primary threat resulted from the expiration of the labor contract among the Pacific Maritime Association, representing 29 U.S. west coast ports, and the International Longshore and Warehouse Union (ILWU).  During July, a Supply Chain Matters commentary cited a published report in Logistics Management made the observation that the threat of U.S. West Coast port disruptions raised an open question as to “peak shipping season” this year. Logistics Management further conducted a reader poll of 103 buyers of freight transportation and logistics services. That survey indicated 68.1 percent of respondents expecting a more active peak shipping season this year. Some respondents were reported to be concerned about potential transportation lane disruptions in the fall. Perhaps, in retrospect, that was insightful thinking by […]


Boeing’s Latest Earnings Foretells Increased 787 Dreamliner Cost Pressures

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Boeing reported earnings for its September ending quarter this week that included some further information regarding the troubled 787 Dreamliner program. Revenues for the aerospace provider’s commercial aircraft division rose 15 percent as a result of stepped-up production deliveries.  However, operating margins dropped to 11.2 percent from 11.6 percent a year earlier. In the earnings report, Boeing’s CFO again indicated that Boeing sells each Dreamliner for less than it costs to manufacture this aircraft, and that the program spending broke through the $25 billon milestone barrier this past quarter.  Boeing utilizes accounting measures that allow it to spread program costs and revenues for the 787 program over a longer multi-year horizon. In its reporting, The Wall Street Journal characterized that development as suggesting that reducing costs on the program is taking longer than expected. This news calibrates with reports in June indicating that Boeing has re-negotiated certain long-term component supply […]


Report That Foxconn is Considering the Building of a High-End LCD Plant

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This week, The Wall Street Journal reported (paid subscription) that global contract manufacturer Foxconn is in preliminary talks to build a high-end $5.7 billion LCD display screen factory in Northern China. According to this report, the CMS is in discussion with the government of Zhengzhou regarding potential investment arrangements. According to WSJ unnamed sources, Foxconn and Hon Hai Precision Chairmen Terry Gou visited Zhengzhou in August and met with government officials to discuss an investment proposal.  The Zhengzhou region is also the home of an Apple iPhone assembly facility. This news is significant in that it would represent Foxconn’s largest investment in component manufacturing and would be an additional sign of further diversification within key downstream strategic components of high tech and consumer electronics supply chains. LCD production requires rather expensive capital investments and the business has had its ups and downs in profitability. In its reporting, the WSJ stated […]


Automotive Service Supply Chains Undergo Even More Stress

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In a published Supply Chain Matters commentary in June, Service Supply Chains Put to the Ultimate Stress Test in the Automotive Industry, we focused on General Motors, which after intense scrutiny from U.S. regulators and legislators regarding faulty ignition switches among multiple models, had recalled thousands of vehicles. At that time, GM had announced a cumulative 44 product recalls involving nearly 18 million previously sold vehicles not only for faulty ignition switches but for various other lingering quality problems. Other Automotive OEM’s have also found themselves under intense regulatory scrutiny, and many elected to err on the side of caution and declare product recalls if there were any concerns regarding vehicle or occupant safety. The result led to a Washington Post headline indicating that one out of every ten vehicles on the road had been subject to a recall notice. That amounts to a lot of motor vehicles. Beyond the […]


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