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Disaster WatchThis chapter has emphasized that successful supply chain management requires successful integration across the supply chain. It has been argued that businesses should actively seek to have a single source supplier for particular parts and components. Having a single source supplier may result in a closer relationship that should yield significant economic benefit. Many businesses, both large and small, have moved toward, if not a single supplier, then a significantly reduced number of suppliers for particular parts. This, however, may have some serious negative consequences. Apple introduced its new iPad 2 tablet on March 2, 2011. Little more than a week later, on March 11, Japan was struck by a major earthquake and damage from the resulting tsunami. Although the two events may seem to be unrelated, there were several connections. It was estimated that Japanese firms manufactured at least five major components in the iPad 2. Although some of these firms were not damaged by either the earthquake or the tsunami, they found that maintaining production schedules was a challenge due to curtailment and available electricity, the movement of supplies, and employees being unable to arrive at work. “These factors are having a major impact on ‘delicate processes, such as semiconductor lithography,’ said the report, especially as the country continues to experience aftershocks.” [6] Apple was not the only firm affected by the Japanese disaster. The port of Sendai was heavily damaged, and many goods could not be shipped out. As one commentator put it, “It is a nuclear winter for the economy.” [7] Further exacerbating the situation for Apple was an explosion at Foxconn Technology Group’s plant in Chengdu, China. The explosion killed three workers and injured many more. In addition, the initial estimate was that Apple might lose production of more than half a million iPad 2 units while the plant was closed for repairs. [8] Disruptions in the supply chain need not be caused by natural disasters. They can occur because of human failings and can have significant consequences. Toys “R” Us was severely damaged in 1999 when its online customer order system proved to be inadequate for demand at Christmastime. In the same time frame, The Hershey Company, which expended approximately $100 million on developing software for its supply chain, found that attempting to develop an order system, a CRM system, and a supply chain planning system proved to be too much of a technical challenge. Because of failures in the system, Hershey missed at least $150 million in orders. Hershey was guilty of trying to implement these systems simultaneously. They had gone a “bridge too far.” [9] There is actually a field called supply chain sensitivity analysis that attempts to identify the extent of disruptions in the supply chain caused by external factors. It relies on computer simulation analysis. [10]Obviously, such an approach is beyond the capability of most small businesses. [1] John J. Coyle, C. John Langley, Brian Gibson, Robert A. Novak, and Edward J. Bardi, Supply Chain Management: A Logistics Perspective, 8th ed. (Mason, OH: South-Western, 2008), 301. [2] Joel D. Wisner, G. Keong Leong, and Keah-Choon Tan, Principles of Supply Chain Management: A Balanced Approach (Mason, OH: South-Western, 2004), 76. [3] “Small and Medium-Sized Business Enterprise Applications Market to Grow to $80.3 Billion by 2012,” Business Wire, June 11, 2008, accessed February 2, 2012,www.reuters.com/article/2008/06/11/idUS117514+11-Jun-2008+BW20080611. [4] Carol Lawrence, “Enterprise Resource Planning Software Become More Accessible to Small and Midsize Companies,” McClatchy Tribune Business News, August 8, 2010. [5] David Hayes, “When Size Doesn’t Matter (in business),” McClatchy Tribune Business News, March 4, 2010. [6] Michelle Maisto, “Apple iPad 2 Production Hindered by Japan Earthquake: IHS iSuppli,” eWeek.com, March 19, 2011, accessed February 2, 2012,www.eweek.com/c/a/Mobile-and-Wireless/Apple-iPad-2-Production-Hindered-by-Japan-Earthquake -IHS-iSuppli-385386. [7] Peter Müller and Alexander Neubacher, “Disaster in Japan Sends Ripples through the Global Economy,” Spiegel Online International, March 22, 2011, accessed February 2, 2012, www.spiegel.de/international/business/0,1518,752325,00.html. [8] “Blast Could Cut iPad 2 Production by 500,000: iSuppli,” Taipei Times, May 25, 2011, accessed February 12, 2012,www.taipeitimes.com/News/biz/archives/2011/05/25/2003504064. [9] “The 11 Greatest Supply Chain Disasters,” SupplyChainDigest, January 2006, accessed February 2, 2012, www.scdigest.com/assets/reps/SCDigest_Top-11 -SupplyChainDisasters.pdf. [10] Jack Kleijen, “Supply Chain Simulation Tools and Techniques: A Survey,”International Journal of Simulation and Process Modeling 1, no. 1/2 (2005): 82. Chapter 12People and OrganizationFWK
Source: Used with permission. The idea for FWK, the publisher of this book, started on a business trip to Chicago in 2006. The co-founders were both working at a large educational publisher at the time, decided they wanted to move away from the limitations and the frustrations of the traditional publishing industry. Veterans of the higher education publishing industry. Their vision was to create a new publishing company that offered a lot more choices to students, professors, and authors. “Students can’t afford to pay $200 for a textbook. The old business model wasn’t adapting fast enough to the Internet, where so much information was available for free or low-cost,” says Jeff, referring to traditional publishers. “We knew there had to be a better way to publish high-quality material and eliminate price and access barriers.” Since its beginning in 2007, more than thirty employees have joined this fast-growing start-up, located just north of New York City, in Irvington, New York. The company has become a recognized pioneer in transforming higher educational publishing and textbook affordability. FWK is upending the $8 billion college textbook industry with a new business model that focuses on affordability and personalization. Professors who assign FWK books are free to revise and edit the material to match their course and help improve student success. Students have a choice of affordable print and digital formats that they can access online or on a laptop, tablet, e-reader or smartphone for a fraction of the price that most traditional publishers charge. Rather than hamper the company’s growth, the economic downturn has actually highlighted the value of its products and the viability of its business model. Despite the bad economy, FWK has been able to raise over $30 million in venture capital. Clearly, they are doing something right. The numbers tell the story. Since the launch of their first ten books in spring 2009 (there are more than one hundred fifteen books to date), faculty at more than two thousand institutions in forty-four countries have adopted FWK books. As a result, more than 600,000 students have benefited from affordable textbook choices that lower costs, increase access and personalize learning. In 2010, 2011 and 2012, EContent magazine named FWK as one of the top one hundred companies that matter most in the digital content industry. FWK was also named 2010 Best Discount Textbook Provider by the Education Resources People’s Choice Awards. What is particularly refreshing is Jeff’s philosophy about people and work. “Give talented people an opportunity to build something meaningful, the tools to do it, and the freedom to do one’s best.” He believes in flexibility with people and their jobs, and, to that end, employees have the option to work remotely. There is no question that FWK is an innovator in the educational publishing industry, but it also knows how to treat people well and provide a challenging environment that fosters personal growth. 2, 2012,http://www.theticker.org/mobile/company-offers-alternatives-to-enter-the-world-of-knowledge-1.2360719; John Tozzi, “Online Startups Target College Book Costs,” Bloomberg BusinessWeek, September 23, 2010, accessed February 2, 2012,www.BusinessWeek.com/smallbiz/content/sep2010/sb20100922_892919.htm. Directory: site -> textbooks textbooks -> This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 0 License without attribution as requested by the work’s original creator or licensee. Preface textbooks -> This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 0 License without attribution as requested by the work’s original creator or licensee. Preface Introduction and Background textbooks -> Chapter 1 Introduction to Law textbooks -> 1. 1 Why Launch! textbooks -> This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 0 License without attribution as requested by the work’s original creator or licensee textbooks -> This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 0 License textbooks -> This text was adapted by The Saylor Foundation under a textbooks -> This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 0 License without attribution as requested by the work’s original creator or licensee. Preface textbooks -> This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 0 License textbooks -> Chapter 1 What Is Economics? Download 12.2 Mb. Share with your friends:
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