Posts Tagged ‘supply chain’

General Mills’ Supply Chain Scorecard

June 6th, 2011 Comments off

It seems that sustainability is the hot buzzword these days in marketing and accounting circles.  Locally-based giant, General Mills, is taking the sustainability push beyond its legal borders and using a scorecard to track its suppliers:

General Mills has been pushing on green issues since about 2005, Lynch explained, and is steadily seeking to expand its reach on sustainability. The company began its sustainability initiatives with a focus on its manufacturing plants, simply because that was the area where the company has the most control over its operations.But in tracking its internal and supply-chain emissions, Lynch said that GM has come to a few realizations about where its impacts come from.

“The vast majority of our inputs come in through suppliers who provide value to us here in sorting or milling or roasting or adding flavor and it’s in very few situations that we’re buying directly from farmers,” Lynch said.

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Home Depot echoes Lowe’s with focus on costs

November 16th, 2010 Comments off

Photo credit: David Neubert on Flickr

Here’s is a Reuters piece from today that focuses on costs at the two largest home improvement retailers in the headline.  Notice, however, the other things mentioned that relate to what we discuss in class (and that seem to me to be even more important than the cost cuts):

  1. A focus on supply chain improvements
  2. Use of cash and the importance of having strong cash flow
  3. Continued investing in improvements even when cost cuts are emphasized

Read more:

Home Depot echoes Lowe’s with focus on costs | Reuters.

Clarity Is Missing Link in Supply Chain

May 18th, 2009 Comments off

This article uses the term “supply chain” but you can effectively substitute “value chain” instead and draw the same conclusions.

Communication amongst value chain participants is one of the biggest barriers to overcome in order to capitalize on opportunities the market presents.  Today’s Wall Street Journal looks at what happens when information is not shared as well as it can be, especially in times of economic collapse such as what we have seen in the past year.  The damage is not limited only to individual players in the value chain, but up0n several participants because the performance of one value chain participant is so tightly tied to the adjacent participants.

For a man who sells the chip “brains” that power millions of TVs, cameras and other gadgets, Levy Gerzberg found himself surprisingly unplugged last fall. In just a few short weeks, business virtually stopped.

He still marvels at the speed of the collapse. “I think about it today, and ask, ‘Why did it happen so fast?’ ” says Mr. Gerzberg, CEO of chip designer Zoran Corp.

Especially telling is that all of the individual decisions made without the cooperation of other value chain participants may have been overdone, resulting in lost sales and perhaps lost market share to companies that made different decisions whether by chance or by design.

The cumulative result: The tech pullback may have been overdone. In March, Best Buy Co. said it could have sold more electronics equipment in the three months ended Feb. 28, but its suppliers’ deep cuts made it tough to keep shelves stocked. Suppliers “all decided to build a lot less,” says Best Buy merchandizing chief Michael Vitelli.

Clarity Is Missing Link in Supply Chain. Phred Dvorak. Wall Street Journal. (Eastern edition). New York, N.Y.: May 18, 2009. pg. A.1