Supply Chain Matters highlights current significant price hikes and severe supply shortages occurring in the North America based lumber supply sector. The same scenario could play out in metals under similar conditions.
Supply Chain Disruption
February 2018 data related to manufacturing and supply chain activity continues to reinforce a boom period. The indices for U.S. wide activity, particularly point to ongoing operational challenges occurring among multiple industry supply chains. While teams remain incredibly busy in day-to-day challenges, Supply Chain Matters again raises caution signs for the need to manage both tactical and strategic transformational needs.
Fast-food chain Kentucky Fried Chicken was forced to temporarily close most of its UK outlets after widespread shortages of chicken product occurred. Upwards of 550 outlets were impacted, forcing British media to coin the headline, “KFC Crisis” and some consumers to call their local emergency services office to complain of a chicken food shortage.
Airbus reported 2017 full-year financial results indicating the pan-European global aerospace company overachieved on all key performance indicators. Operational performance was especially noted in the final Q4 quarter and the outlook for 2018 implies a very critical dependency on two aircraft engine providers.
Airbus warned certain airlines of a more concerning problem related to the new Pratt & Whitney geared-turbo-fan (GTF) engines powering both the Airbus A320neo and A321neo aircraft. The current development has two meaningful industry supply chain disruption implications.