Spend Matters Afternoon Coffee

McDonalds takes their supply chain...local??

Why McDonald's New "We-Buy-Local" Ad Campaign Could Backfire -- It's great for McDonald's to strive for local sourcing. Moving to buying more product in-state reduces fuel needs, is less polluting, and keeps revenue in the local area, which community organizers like. It also saves on shipping costs for the Golden Arches, so it helps their bottom line as well. But McDonald's has ignored two basic problems in constructing its campaign: Locavores are picky and passionate about this issue, and quick to call companies on fudging these claims; and there's no legal definition of what constitutes local sourcing.

How innovation within the supply chain can actually bite you in the end.

The Beauty of a Sustainable Supply Chain -- In a market economy, there are always products in the stores, and our conundrums are usually more over what to select. The aforementioned commodities are things that, in a market economy, are abundant and cheap, and they are usually of decent quality because their manufacturers long ago figured out how to make a profit on large production runs with the necessary quality. But market economies thrive on what's new and innovative. It's the new products that are in relatively short supply, because their innovators have difficulty keeping up with demand. This shortness contributes to premium pricing. So what happens when the innovation engine sputters?

Wash up those white wall tires, Thailand.

Rolls-Royce seeking to develop Thai supply chain -- Rolls-Royce aims to grow its supply chain tremendously in Southeast Asia, with Thailand, where it has been doing business for 21 years, as a focus. "We are going to be making large engines in Singapore and it makes absolute sense to have a supply chain in the region that can feed that facility. Thailand has demonstrated that it's capable of doing that," Ewen McDonald (seen in photo), managing director of Rolls-Royce Thailand, said recently in Bangkok. While Rolls-Royce does not manufacture in Thailand, it wants to be seen as more than just a supplier, he said.

Wal-Mart wants to expand to India, India is not ready.

Wal-Mart India growth faces supply chain hurdle -- India's USD 450 billion retail sector is largely closed to overseas firms, with those carrying multiple brands restricted to cash-and-carry, or wholesale, outlets like the ones Wal-Mart operates in India. But in a country where at least 40% of produce is wasted because of inadequate storage and transportation, large investments in warehouses, refrigerated trucks and other amenities are needed.

Sheena Moore

Share on Procurious

Discuss this:

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.