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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 […]


Gartner Announces Ranking of Top 15 European Supply Chains

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This week, Gartner unveiled its annual regional listing of what the analyst firm considers to be fifteen of the best supply chains in the European region. Gartner conducts this ranking as a supplement to its Top 25 Global Supply Chain rankings that are traditionally announced in the fall.  According to Gartner, the top three European supply chains, Unilever,Inditex and H&M, remain unchanged and continue to lead in supply chain excellence while Seagate Technology made its debut in the number four ranking. Three new company supply chains also made a presence in the Gartner Europe ranking. The published ranking for Europe Top 15 supply chains were noted as: Unilever (ranked 4th in 2014 Top 25 global ranking) Inditex (ranked 11th in 2014 Top 25 global ranking) H&M (ranked 13th in 2014 Top 25 global ranking) Seagate Technology (ranked 20th in 2014 Top 25 ranking) Nestle (ranked 25th in 2014 Top 25 […]


A Report Profiling Apple’s First Responder EFFA Program

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In the week that Apple staged its massive media event announcing two of its newest iPhone models, BloombergBusinessweek featured an intriguing article titled: Apple’s iPhone 6 First Responders. The report serves as a very timely reminder of the critical importance for harvesting product performance and service reliability information very early in the product launch stages. The Apple program outlined is termed early field failure analysis (EFFA). The Bloomberg authors had a novel spin as to the purpose, one that may well resonate with our reader audience: “ As customers line up to buy the device (iPhone) around the world, Apple employees will show up at work to learn how they screwed up- and fix it.” Humor aside, the Apple program was conceived to resolve problems before they become far larger in-scope, when they are far more expensive to resolve across an outsourced supply chain. Bloomberg cites former Apple employee sources […]


The Day of the Big Apple Product Announcements- Will the Supply Chain Deliver on High Expectations?

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In a few short hours, Apple will once again announce a new set of innovative products to the global community amid a flurry of social and business media posts, streaming commentary and headlines. Announcements are expected on the new iPhone 6 models that will include more elegant physical design, innovative materials such as sapphire-based screens, as well as new functionality. Pundits further expect the long-awaited announcement of the wearable iWatch along with a new iPad model that features a super large screen version. As we have noted in prior Supply Chain Matters commentary, the one certain thing at the end of today is that Apple’s supply chain ecosystem remains under the gun to deliver on the collection of high expectations. There are continued reports of big bets on expected shipments to be supported for the upcoming holiday period, production yield challenges associated with last-minute design change involving the larger screen […]


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