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More Definitive Signs of a Significantly Changed Contract Manufacturing Model for High Tech

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The following commentary is Bob Ferrari’s weekly guest posting on the Supply Chain Expert Community web site. In June of 2011, I penned a Supply Chain Expert Community commentary, Hon Hai’s Annual Meeting Provides Signpoints for a Changed Contract Manufacturing and Value-Chain Model. That commentary reflected on how the largest contract manufacturer in the world was communicating new strategic direction and important strategic messages for high tech and other industry players to contemplate. Current CMS operating margins averaging 2-3 percent are not sustainable when other parts of the high tech and consumer electronics value-chain are generating far higher margins, including OEM’s such as Apple. The above Community commentary was followed in March 2012, Will Apple’s Supply Chain Strategies Take a New Turn?  This commentary apparently was of interest to this Community since it has recorded over 800 views to-date. The name Apple obviously draws more reader attention. The takeaway from […]


Breaking Shipping News: German Ocean Container Lines Talk Merger

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Today’s edition of the Financial Times reports that two of Germany’s largest ocean container shipping companies, Hapag-Lloyd and Hamburg Sud, are engaged in talks over a possible merger of the two lines.  Both companies issued statements indicating: “if, and under what conditions, a merger of both companies would be of interest.”  FT notes that if this merger comes to pass, it would represent the world’s fourth largest container shipping line with a capacity of more than one million TEU’s, a combined fleet of 250 vessels and over €11 billion in revenues. The deal, if consummated, would represent a stronger challenge to industry dominants Maersk Line and Mediterranean Shipping Company.  FT further notes that the last time consolidation occurred in the ocean container transport  sector was six years ago. Supply Chain Matters has been continually reinforcing our belief that the ocean container industry is currently anchored in way too much capacity […]