Broader supply chain = Increase in profit margins for Apple
Remember the GT Advanced Technologies debacle and how Apple was stopped from using their sapphire displays on the iPhone 6 and 6 Plus? Since that incident, Tim Cook, whose background also happens to be in operations, has learned not to put all of Apple´s apples in one basket. The company has evidently invited both Compal Electronics and Wistron to join their supply chain network, while also adjusting the ratio of their orders with their existing partners. On the other side of the fence, Apples move has proved to Foxconn and similar companies that relying too heavily on Apple rather than diversifying is not such a good idea.
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New South Wales Coal Supply Chain hit hard by a storm
The coal supply chain in New South Wales was rattled by a storm this week. Coal exports from the Hunter Valley coal field, usually on route to the Newcastle port, have come to a complete standstill due to flooding. Rail operator, Australian Rail Track Corp, has said that the repairs will take more time than expected. The positive news, however, is there appears to be no damage to the 66 million MT/year terminal belonging to the Newcastle Coal Infrastructure Group at Newcastle port.
That being said, analysts predict that the worst weather is still to come with the Australian Bureau of Meteorology forecasting continued strong wind gusts as well as heavy rain. As a result, all coal and freight services into Maitland and Newcastle port have been suspended. News of this storm shows how unexpected circumstances can wreak havoc on otherwise smooth supply chain processes.
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McDonald’s turns to bottom-up approach in cutting its deforestation
McDonald’s has decided to follow in the footsteps of some of its main suppliers! How? For a start, the company’s director for sustainability, Banik-Rake, revealed plans for a new sustainable sourcing policy that will eliminate deforestation from its supply chain processes. In a bid to play a leading role, as part of an eight-point commitment, McDonald´s will stop contributing to the deforestation taking place in high carbon stock forests. These forests are areas most critical to reducing the levels of carbon in the atmosphere. The company will also no longer be sourcing commodities from swampy areas that store lots of carbon. These actions will influence the 3,100 global suppliers and indirect suppliers in their supply chain network. Though McDonald´s aims to implement this new policy ASAP, the real targets for zero-deforestation are in fact between 5 and 15 years away.
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