As manufacturers consider shifting production from China back to the West, the U.S. could become an economically viable alternative faster than you think.
On March 25, 1911, fire swept through the Triangle Shirtwaist factory in New York City. One hundred and forty-six garment workers perished in the blaze, many of them trapped in the building because management had locked the exit doors. The youngest of the victims were 14. It was a horrifying tragedy, not atypical of working conditions during the so-called Progressive Era. Can we not, however, take comfort in knowing that those times are far behind us?
The fog is beginning to clear. High-tech and other types of manufacturers are getting a better idea of what they must do in order to conform to new requirements for disclosing the presence in their products of conflict minerals from the Democratic Republic of the Congo (DRC) and neighboring states. Still, a number of questions remain unanswered.
On October 13, 2011, the Federal Maritime Commission launched a rulemaking that proposed to allow rate levels within oceangoing service contracts to be linked to industry freight indices. Some carriers and shippers had pushed for the change in hopes of achieving greater rate stability in the notoriously uncertain liner trades.
Ask any food industry executive to cite his or her greatest concern, and the answer will almost always be the same: product safety. But the list doesn't stop there. Like any other business sector, food manufacturers are grappling with a number of challenges, many of them related to the age of the internet and social media.
As tainted-food scandals go, it wasn't so bad. The discovery early this year of unlabeled horse meat in European food products wasn't for the most part a safety issue. It was a violation of cultural norms, to be sure, as well as a truth-in-packaging problem. Most of all, it was a supply-chain failure.
Inventory is evil. Inventory is essential. The two statements aren't necessarily contradictory. Not if companies can figure out a way to determine the absolute minimum amount of stock needed to keep customers happy, while maintaining a tight lid on costs.
For retailers, the bar just keeps getting raised. Supply-chain excellence used to be about filling orders seasonally. Then weekly. Then daily. Now we hear of merchandise being replenished multiple times a day. Is there no end to the madness?