Afternoon Coffee: Boeing Supply Chain Issues; Brexit Officially Delayed; Tyson Asks, Where’s the Beef?

AdobeStock/Ivan Kruk

…And now the Boeing supply chain angles come home to roost.

Boeing has officially paused delivery of 737 Max 8 jets in the wake of the Ethiopian Airlines crash, with about 4,500 planes on order — but will that put a significant dent into the company’s bottom line?

Likely not. The main short-term issue may be one of physical space: finding parking spots for the finished planes coming off the line, according to a Supply Chain Dive article. Since so many planes are on backorder, “if the outstanding orders for the aircraft are canceled then this could, in turn, affect suppliers who provide components for the plane,” according to SCD. “This would be years down the line, though, given the current length of backorders.”

As we know, Boeing’s supply chain operations are among some of the tightest run in the world.

Adidas Growth Hurt by Supply Chain Issues

The retail giant Adidas has revealed in a recent annual report that growth in sales will be hurt by shortages in the supply chain. The report was issued on Wednesday, and the shortages come with regard to Asian suppliers.

These shortages will impact North America in the first half of 2019 mainly. Adidas is hoping to grow by 3-4% in the first half of 2019, before hitting their stride in the latter parts of the year after their supply chain rebounds.

"The volume grew quicker than anticipated and we didn’t respond quickly enough to that demand signal," CEO Kasper Rorsted is quoted as saying.

DNA Used to Trace Supply Chain Beef Products

Tyson Fresh Meats are using a new DNA process to track beef from the farm to the customer, according to a release.

The new process was developed by IdentiGEN and involves taking a DNA sample from the carcass at the harvest facility using a special collector. The sample is given a scannable barcode which allows Tyson to track the meat back to the original carcass and its starting location. They then enter the information into a database to keep track of all product; however, the technology is only available in their Kent Harrison range at this moment.

U.K. Parliament Voted to Delay Brexit

Members of Parliament in Britain have voted to delay when they leave the EU, which was originally set for March 29. The MPs voted 412-202 in favor of delaying the departure.

However, this is not a decision to be made by Britain alone, as it must now be approved by the European Union.

If accepted under Britain’s terms, the delay will push Brexit back until June 30 of this year. There was also a second MP vote on a deal amendment that would have brought with it a second referendum, but this was shot down 85-334.

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