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Canadian Pacific Railway Accelerating Crude Oil Shipments with Potential Impacts to Current Logjams

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In a Supply Chain Matters posted commentary in August, we called attention to continued railcar shortage concerns among U.S. Midwest grain farmers.  Last winter, specialty rail car shortage problems stemmed from pileups among both the BNSF Railway and the Canadian Pacific Railway (CP) networks heavily burdened by surging crude oil transport demand and compounded by severe winter weather.  The problem was a classic capacity-constrained network, as winter conditions incurred a heavy toll on equipment and schedules. At the time, the railcar shortage was expected in extend further into this year. A published Bloomberg report in August reported that upwards of 10 to 15 percent of last year’s grain crop still remained stored in silos because of the continued lack of availability of specialized bulk rail cars to transport the crop. Some contracts for delivery of grain from as far back as March remain unfulfilled in August. An expected high U.S. […]


Boeing to Increase the Pace of 737 Production

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Last week, commercial aerospace manufacturer Boeing announced an increase for its monthly production rate of 737 aircraft starting in 2018. The designated production rate will increase to 52 airplanes per month in order to sustain a production goal of 620 finished 737’s per year, the highest ever volume for this particular aircraft. This boost amounts to a near 24 percent increase from the current   pace of producing 42 of the 737 aircraft per month. Boeing is providing an ample two year notice to its supply chain and ecosystem partners in ramping the 737 supply chain to sustain this level. With a reported 4000 unfilled orders for both the named Next-Generation 737, and even more fuel-efficient 737 MAX models, Boeing has to crank-up the pace in order to satisfy customer operational and business timing needs.  Once more, the global economic environment can change very quickly. We suppose our readers among other industries would relish […]


Aceelerating Productivity Needs of Supply Chain Reference Model Initiatives

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As many of our readers may be aware, the Supply-Chain Operations Reference Model (SCOR) was developed by the Supply Chain Council (now APICS Supply Chain Council) to assist multi-industry and organizational supply chain organizations make meaningful and rapid improvements in supply chain business processes. This model’s methodologies describe the Plan, Source, Make, Deliver and Return activities associated with supporting customer and business fulfillment needs and have become a common language to articulate industry supply chain capabilities. We all know that today, industry supply chains are driven by customer requirements and service needs, and the SCOR model is a tool that helps organization’s with a single standard reference upon which to understand the processes that make-up the supply chain along with their relationships to performance metrics. The power of SCOR is that it does not document the supply chain in the lens of functions (planning, procurement, manufacturing, logistics, etc.) but rather […]


NRF Issues Optimistic Forecast of Holiday Sales- Be Watchful and Be Prepared

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Business media and online channels are abuzz regarding the latest rather optimistic forecast of expected retail holiday sales issued by the National Retail Federation (NRF), an industry trade group of the retail industry. However, retail supply chains need to be prepared for even more challenges and unknowns in the coming weeks leading up to the end of year. The NRF is forecasting that upcoming retail sales in the months of November and December (excluding autos, gasoline and restaurants) will increase by 4.1 percent over 2013 levels, equating to nearly $617 billion. According to the NRF, retail sales incurred an actual 3.1 percent increase during this same time period in 2013. The current forecast marks the first time since 2011 that holiday sales would increase by more than 4 percent. In an interview with business network CNBC, NRF’s chief economist indicated that the 4 percent increase could be on the low […]


Breaking News: Apple Sapphire Glass Supplier Files for Protection Under Chapter 11

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In a sudden and startling announcement, GT Advanced Technologies Inc., a developing supplier for new, more durable sapphire glass applications for Apple’s product lineup, announced today that it had commenced a voluntary filing under Chapter 11 of the Bankruptcy Code as a best means to reorganize and protect that company and provide a path to future success. In the announcement, GT indicated that as of September 29, 2014, the company had approximately $85 million in cash, but there is no mention in the release of current outstanding liabilities. In early August in its announcement for fiscal year second quarter results, the company indicated six month, year-to-date revenues of $80.5 million including $49.7 million attributed to sapphire equipment and materials. Non-GAPP operating expenses were reported as $76.3 million year-to-date and the supplier incurred a $139 million net loss from operations. GT reported ending its second quarter with $333 million of cash, […]


HP’s Proposed Corporate Split- A Supply Chain Matters First-Take Perspective

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Today, business and general media have been echoing the blockbuster news of the Hewlett Packard announcement indicating that HP desires to split itself into two separate companies. In this posting, we share our initial Supply Chain Matters impressions of this proposed breakup from both a global supply chain and information technology provider perspectives. According to HP’s announcement, the company’s recently combined personal computer and printer business will split from its corporate hardware and services operations.  The former is proposed to be named HP Inc. and will have Dion Weisler, a current executive in that operation, as its new CEO while the latter will be named Hewlett-Packard Enterprise, and have current HP CEO Meg Whitman at the helm. However, most of HP’s current profits have come from the combined PC and printer side. Both of the split entities would have an equal portion of upwards of $50 billion in revenues, but […]


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