Tuesday, June 4, 2013
TWIF Flattener 7 - Supply-Chaining
Use one of the current events sources linked at http://svhs-hwc-fall2013.blogspot.com/2013/06/approved-sources-for-twif-current.html to find a recent news article that relates to, supports, or refutes Friedman's assertion that supply-chaining was a "flattener." Your comment should include the title of the news article, a link to the article, and a summary of the article including an explanation of how the article relates to this point. Don't forget to check your rubric for evaluation criteria!
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Retailers agree Bangladesh garment factory inspections http://www.bbc.co.uk/news/business-23222322
ReplyDeleteThis BBC article is about an agreement between several retailers to make factories in Bangladesh safer for workers. This is a reaction to the recent collapse of a factory in Rana Plaza, which killed 1,100 people, despite cracks in the building having been noticed the day before. There have been several other recent accidents in Bangladeshi factories, whose exports of clothes are second only to China's. 70 large retail stores will work together to inspect and fund repairs of most of the factories so that they meet safety standards. In The World is Flat, Friedman argues that supply-chaining is a flattener because, for the entire system to work, all companies that are part of the supply chain (manufacturers, distribution, and stores) must have common standards to function efficiently. Friedman then states that those productive models will spread to other companies, therefore facilitating collaboration, and collaboration is the ultimate flattener that allows anyone to access any information from anywhere. This article supports his reasoning because the lack of safety standards in Bangladeshi factories resulted in multiple accidents, which killed many people and closed several factories, inturrupting the supply chain. Once the safety standards of other factories are applied to the clothing factories of Bangladesh, they will be safer and more able to function, since there will be a lesser risk of closure due to accidents. Overall, this article supports Friedman's assertion about supply-chaining as a flattener because it exemplifies the spread of standards, which increase productivity and encourage collaboration.
Sluggish sales at US retailers suggest that weak consumer spending could restrain growth
ReplyDeletehttp://www.washingtonpost.com/business/sluggish-sales-at-us-retailers-suggest-that-weak-consumer-spending-could-restrain-growth/2013/08/16/0fbe49a2-0629-11e3-bfc5-406b928603b2_story.html
This article talks about how sales at stores such as Wal-Mart and Macy's are going down because people are not buying the products because of how high the prices are compared to how little the consumers are being paid. This article says that peoples paychecks only increased by about 1.3% since the end of the recession. these stores did not lower their prices though. This is an example of companies not working with consumers and, in return, losing value and profits. The people who are going to these stores are not getting paid enough to pay for what these stores are selling. These stores need to lower their prices to something the consumers would be willing to pay. This supports Friedman's claim that business have to work "horizontally" not only with other businesses and their suppliers, but also with the customers.
Wal-Mart Unveils Plan to Make Supply Chain Greener
ReplyDeletehttp://www.nytimes.com/2010/02/26/business/energy-environment/26walmart.html?_r=0
This New York Times article describes Wal-Mart’s newest goal to improve its supply chain by eliminating a large amount of greenhouse gases produced by the company. To achieve this goal, Wal-Mart has requested that its suppliers take a more green approach in the way that they produce and distribute their products. This improvement will not only benefit the environment, but it will also benefit Wal-Mart due to the decreased spending within the supply chain, that will then benefit the customers who will have to pay less.
The ideas expressed in this article support the main idea of the seventh flattener, supply-chaining. Freidman describes the advanced supply-chain of Wal-Mart, and also the power that the company obtains because of this. Wal-Mart’s suppliers depend on their business to stay running, therefore, Wal-Mart can make requests such as decreasing the emission of greenhouse gases and the suppliers are practically forced to listen in order to keep their number one customer. In addition, by Wal-Mart taking on this eco-friendly approach, it is regaining the approval from customers whose opinions may have been tainted by scandals such as employee mistreatment, hiring illegal employees, and refraining from selling certain products.
Advocate Helps Track Polluters on Supply Chain
ReplyDeletehttp://www.nytimes.com/2012/04/23/business/global/advocate-helps-track-polluters-on-supply-chain.html?pagewanted=all&_r=0
This article, based mainly on the interview of Mr. Ma Jun a journalist in China, discusses the effects of supply chaining on China. Mr. Ma completely agrees with Friedman in saying that Supply Chaining is a large part of globalization, and that supply chaining is keeping the manufacturing separated from the market. Mr. Ma believes that that the manufacturing in China is creating large amounts of pollution. The greatest area of pollution is the rivers in China. He states that the rivers now have chemicals that could cause birth defects and mutations in unborn babies. All in all, this article discusses Friedman's 7th flattener, and also discusses its effects on China's environment.
The importance of being paranoid
ReplyDeletehttp://www.bbc.co.uk/news/business-23767413
This article from BBC discusses how companies that are very prosperous need to be paranoid about their competition, or it will hit them by surprise and run them out of business. One paramount example made in this article is when the comparison is made to a local store facing no competition, enjoying its monopoly of the area. Suddenly, a Wal-Mart opens up near the store and suddenly its losing business for convenience sake. If the company was unable to predict this happening, (by being paranoid) it will not have time to react quickly enough and it will soon run out of business. This supports Friedman’s arguments on the issue of supply-chaining, because Wal-Mart, a very large company that handles its own supply-chaining, is a large threat to many other companies. As Friedman mentions, Wal-Mart is a wonderful choice to us as customers, because we are able to purchase their goods at low prices. However, this store is a threat to us as citizens, because by focusing our shopping towards Wal-Mart and away from other stores, we allow it to grow and run other small companies out of business. Many companies need to be aware of stores like Wal-Mart, so that they can prepare themselves for the pressure that may arise when they have to compete. This is why it is so important for small business to always stay paranoid.
Can smartphones help you clean your house?
ReplyDeletehttp://www.bbc.co.uk/news/business-23787775
This article by BBC is about two coders that did not have time to clean the apartment. The Cheung siblings were coding all the time and did not have time to clean and the cleaners they found were either unreliable or too expensive. So the siblings created a website to connect the cleaners or, the suppliers and producers, to the customers or consumers. By creating the website they attacked lots of cleaners and thousands of customers thus making the supply chain from cleaner to customer more efficient. This article agrees with Freidman, by having an efficient supply chain it is easier to make more money and deliver the end product. Like Wal-Mart in The World is Flat, the better the supply chain the easier to get the product on to the market. The Cheung siblings not only made a website but it is called HomeJoy and they now have an app to connect the costumer to the cleaner where ever that costumer may be.
Wal-Mart Pledges Fresher Produce By Cutting Out The Middleman
ReplyDeletehttp://www.npr.org/blogs/thesalt/2013/06/03/188332155/wal-mart-pledges-fresher-produce-by-cutting-out-the-middleman
This article talks about how Wal-Mart is not putting out fresh fruits and vegetables and keeping them fresh as their customers would like to see. Wal-Mart is putting in a policy to give back a refund for unpleasing produce bought. And they are now removing the whole seller and going directly to local growers and farms. As in flattener seven, supply and demand was being discussed, and how Wal-Mart removed the middle man in the beginning to also lower prices. Now that they are doing it with their fresh, now local, produce it will also lower the prices from them to the next competitor. The supply chinning that Freidman explains is how the company removes the middle man, and has direct links between themselves, customers, and suppliers.
Wal-Mart to Buy More Local Produce
ReplyDeletehttp://www.nytimes.com/2010/10/15/business/15walmart.html?_r=0
This article from the NY Times site is about Wal-Mart's move to make all of the produce sold in its store to be from Local farms. Wal-Mart has made the announcement that as part of their sustainability goals, and hope that by 2015 this specific goal will be met. Environmentally sustainable farming advocates and said that due to Wal-Mart's size this is a significant announcement. Nationally and globally Wal-Mart has invested $1 billion in it's perishable food supply chain. This announcement falls under Friedman's seventh flattener because it shows even further Wal-Mart's connections with its suppliers goes. The company is currently working with all of its suppliers in the US to ensure that the agriculture it sells is sustainable and will reduce its overall environmental impact. The article also discuss how it will work with the new farmers to show them what crops to grow based on the demand that is presented in its stores. Overall, this article, along side this announcement, shows that Wal-Mart is still on top of it when it comes to its supply-chain.
Stress test for global supply chain
ReplyDeletehttp://www.nytimes.com/2011/03/20/business/20supply.html?pagewanted=all&_r=0
Because of the earthquake in Japan actully affect many supply chaining companies, because of the workers in Japan make some of the best products for a very low price. They can be remarkably resilient and self-healing, yet at times quite vulnerable to some specific, seemingly small weakness as if a tiny tear in a crucial artery were to cause someone to suffer heart failure. This relates to supply chaining because if one of their sources are cut off then that will affect the company and supply-chaining.