About UCLA Anderson Global Supply Chain Blog
This blog is developed by the Decisions Operations and Technology Management (DOTM) Faculty at the UCLA Anderson School as well as special guests. It is intended to report, analyze, and comment on events that relate to current Global Supply Chain Management issues. Each blog is presented in English, (Simplified) Chinese, and (Castilian) Spanish, and it can take one of the following formats:
(a) An Interview -- the author formulates questions about a current issue, and the interviewee provides commentary.
(b) An insight -- the author provides insights concerning global supply chains, including current events.
(c) An analytical piece -- the author analyzes a particular supply chain issue and formulates descriptive and/or prescriptive views.
For more information on the blog contributors, check the DOTM website.
By Christopher Tang (UCLA), Brian Yeh (PwC Advisory), and Joshua Zimmerman (Amgen)
After a
delay of 3.5 years and a budget overrun of 10 billion USD, Boeing delivered its
first 787 Dreamliner to All Nippon Airways (ANA) in late 2011. Within about one
year of service, this turbulent dream has become a series of nightmares. In
January 2013, a lithium ion battery was involved in a fire onboard a Japan
Airlines 787 in Boston and an ANA flight made an emergency landing in Japan
prompted by a battery alarm alert and presence of smoke. The FAA decided to indefinitely
ground all fifty 787s around the world. This event has created a major
embarrassment for LOT, the Polish airline and the first European carrier to get
the 787, who was banking on the aircraft to build its reputation as an
international carrier not only in Poland, but across Eastern Europe.
As Boeing struggles to address the problem and
make its fleet of 787 safe to fly again, the public is beginning to realize the
enormity of the problem goes far beyond the lithium ion battery issue. Some of
the fundamental problems are as follows:
If you follow the recent supply chain news, which is quite
likely since you're reading this blog, then for sure a word that you have heard
repeatedly is reshoring. In the last year, there has been an avalanche of
articles and conferences discussing the merits of bringing manufacturing back to
developed countries. The subject has been particularly sensitive in the United States.
Indeed, there was a national uproar when it was revealed that the Olympic
uniforms of Team USA had been made abroad. President Obama has publicly praised
companies that bring manufacturing jobs back to the United States and campaigns
like Make it in America are eager to support the reshoring
trend. One of the recent converts is Walmart. The giant retailer announced
earlier this year that it plans to source the equivalent of $50bn from domestic
suppliers over the next decade.
Yihaodian's Co-Founder
And CEO, And 2012 POMS MKS Practice Excellence Winner, Gang Yu (于刚) Shares His Insights About "His Career Path And E-Commerce In China"
interview conducted by Christopher Tang in Shanghai
December 1, 2012
Founded in
2008, Yihaodian.com is China's
fastest growing company – a B2C retailer selling over 900,000 SKUs to consumers
online. In addition to winning first prize in the Deloitte Technology Fast 500
Asia Pacific in 2011 with 19,200% growth in three years, its success has
motivated Wal-Mart to strategically invest in Yihaodian in both 2011 and 2012. The
success of Yihaodian is phenomenal because Chinese consumers are prudent about
online purchases especially when consumer protection laws are not fully
enforced in China and because making home deliveries in China can be a
logistical nightmare. To learn more about their recipe for success, I
interviewed Yihaodian's Chairman Gang Yu in Shanghai.
In September
2012, the Indian government announced that it would allow foreign firms to take
a majority stake in multi-brand retail stores. The opening of India, an
emerging economy with a rapidly growing urban middle class, should cause retailers
to start salivating. But along with the potential huge opportunity are
challenges not only by way of opposition from "middlemen" and small "mom-and-pop"
retailers, but also by way of the current state of existing supply chains and
infrastructure.
While Apple is known to be innovative in designing and marketing their
products such as the iPhone and the iPad, they should think and act proactively
about different ways to manage their supply chain now. If not, Apple is likely
to become collateral damage in the wake of the actions of their unethical
contract manufacturers in China.
interview conducted by Christopher Tang in Hong Kong September 1, 2012
As the United States and Europe are struggling to stimulate their
anemic economies, it appears China's economy is also slowing down. As I wondered
about how the responses from the Chinese government and Chinese manufacturers
would affect western firms, I interviewed Edwin Keh in Hong Kong to learn of
his insights on this matter.
Recently
I had the opportunity to take a peek into the future of sustainability
reporting. The Global Reporting Initiative (GRI) is the organization behind the
leading set of guidelines for sustainability reports (sometimes called
citizenship reports, CSR reports for corporate social responsibility, or ESG environmental,
social, and governance reports). GRI is in the midst of an extensive global
effort (conducting "due process") to work with a wide range of
stakeholders to update the current G3 guidelines, introduced in October 2006,
and aims to introduce the new G4 guidelines in May 2013.
The major focus on the topic
of technology S curves has been on the life cycle of new, disruptive
technologies, in which new technology products or services start out slowly, then
accelerate when more rapid adoption takes place, and finally starts to flatten
out toward the end of their life cycle.
Being the largest toy company in the world (in terms of revenue) that represents many great brands ranging from Barbie, Fisher Price to Hot wheels, Mattel Inc. is committed to produce toys that are safe, affordable and fun. However, recent concerns over China’s rising costs, harsh working conditions, and product adulteration, I think this can be a challenge for Mattel. To learn more about this, I asked Executive Vice President Thomas Debrowski the following questions.
Once cherished by many before its IPO launch in 2011, it appears the public has used its “collective damning power” to condemn Groupon to death (Figure). This damning power has caused the stock price to plummet from $28 to $7 just 8 months after its IPO. Is death the only fate of Groupon? I believe the company can save itself.
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