Improve or pass on the cost. This is a question asked by CEOs of the larger companies in Australia. The carbon tax regime will commence in July 2012 and initially target the largest emiters. In addition to Australia, similar decisions and plans about implementing a carbon tax or carbon trading are happening around the Pacific Rim; in New Zealand, Thailand, … Read More
Know your supply chains
Where are the weak links. Do you know of cyclododecatriene or CDT? I have not heard of it either. But if you are associated with automotive supply chains, you will know of it by now. CDT is a precursor ingredient for a resin called PA12 or Nylon12, which is a constituent of plastics used in the automotive industry. The manufacturers … Read More
Outsourcing logistics functions
Competencies can change. I am interested that Amazon has recently purchased the supplier of Automated Guided Vehicles (AGV) used in its warehouses. This is an example of vertical integration within a business. When Amazon started, it was portrayed as the ‘new’ style of business. The requirement was to be good at your core competency, in this case on-line book selling … Read More
How do you explain logistics?
Things said on television. I have been watching the TV series Planet Word, hosted by the British entertainment personality, Stephen Fry. In the most recent episode he was discussing an advertisement for a job in which the word logistics was used. The speaker asked Stephen Fry if he knew what the term meant; to which Stephen responded “it has to … Read More
Your forecast of sales is wrong
One number is not accurate. In a recent article, economist professors at the University of Pennsylvania Wharton School made an honest statement about their forecasts of the American economy “Truth be told, our best guesses just aren’t very good”. Should this comment also be said by those engaged in forecasting future sales for their business? In making their forecasts more … Read More