Supply Chain weekly wrap-up: 10/16/15 – 10/22/15

Apple continues to tap into the sun

Back in April, Apple announced its plans to create 40 megawatts of power production through solar energy in the Sichuan Province in China. Since this announcement, two separate solar projects have been completed, and Apple can claim that its 19 corporate offices and 24 retail stores in China are carbon neutral. The company now has its sights set on an even bigger solar project, namely tackling its carbon footprint in manufacturing processes. The company hopes to shake its reputation of having a “dirty” supply chain by continuing to reduce its impact on the environment.

If completed, this new project will create 2 gigawatt of solar power, of which 400 megawatts will be used to power Foxconn’s Xenju factory, where Apple completes the final stage of the iPhone production process. In total, the company hopes the installments will have an impact equivalent to a 20 million metric ton reduction of carbon dioxide by 2020, or in other words, the removal of 4 million passenger vehicles from the roads per year.

Read more about Apple’s new solar energy project here.

Additive manufacturing infiltrating U.S. Air Force

Over the next several decades, the United States Air Force plans to integrate additive manufacturing technology into their aircraft development and maintenance processes. One example of the adoption of this technology can be seen in a plan created by the Oklahoma City Air Logistics Complex (OC-ALC), which is responsible for creating and maintaining highly advanced military missiles and planes. The OC-ALC plans to integrate 3D-printing into all stages of its operations, including the manufacturing of aircraft engine parts.

The Air Force cites several advantages associated with the adoption of additive manufacturing within the supply chain, including shorter waiting periods for key spare parts as well as reduced inventory levels due to the on-demand nature of 3D-printing. The Air Force also plans to use 3D-mapping to reverse engineer older parts and print better replacement versions.

Click here to read more about the Air Force’s 3D-printing plans.

Congested diamond supply chain

The economic slowdown in China initially had major impacts in industrial production and construction. Now, the commodity slump has expanded into the luxury goods space as the diamond industry is being slammed by decreasing demand. China represents the largest diamond market after the USA, but unusually low demand has created a supply chain blockage along the diamond value chain, with major retailers sitting on high levels of inventory. Adding to the supply chain woes are the producers who are currently unwilling and hesitant to cut their recently obtained price gains.

A government-led campaign to reduce spending and increase frugality is partially to blame for decreasing demand for luxury items such as diamonds.

For more on the economic slowdown in China and the impact on the diamond supply chain, click here.

Last but not least…

…Some of you may have noticed that we created a new logo for our blog. If not, here it is:

Have a nice weekend!