Wind-Powered Plant Builds GM’s SUVs

Wind-Powered Plant Builds GM’s SUVs

November 18, 2018

GM is planning to use 100% wind power to manufacture SUVs in its Arlington, Texas, plant.

The company is on track to meet its goal to power all plant operations with renewable energy sources by 2050.  Besides cost savings, the use of renewable energy sources will position GM as a green company ahead of its competitors.


Video Spotlight: GM will power its SUV plant with wind


This post is based on the ThomasNet.com post, GM Will Produce SUVs in TX Using Only Wind Power, and the video GM will power its SUV plant with wind, both by Anna Wells, October 23, 2018 Image source: nachai © 123RF.com.

Discussion Questions:

1. How does GM go about meeting its goal to power all plant operations with renewable energy sources?

Guidance: GM currently sources its wind power from the Cactus Flats Wind Farm in Eden, TX, to run all plant operations in its Arlington, TX, plant.  The wind farm also supplies some of the energy for its other Texas locations.  GM is planning to reach the remaining 80% of its renewable energy goal by relying on wind and solar as the only energy sources. Continue reading

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CostCo’s Farm-To-Table Rotisserie Chicken

CostCo’s Farm-To-Table Rotisserie Chicken

November 12, 2018

Costco is building a farm-to-table production system in Fremont, Nebraska, to manage both the supply and demand of its rotisserie chickens.

About 100 chicken farmers will sign a 15-year contract to raise enough chickens suited for the rotisserie.  Farmers are vertically integrated with Costco’s production system that consists of a processing plant, hatchery, and feed mill.

The production system can process two million chickens per week at full capacity, more than enough to meet Costco’s annual demand of 60 million rotisserie chickens.

This post is based on the NPR article, Costco Builds Nebraska Supply Chain For Its $5 Rotisserie Chickens, by Grant Gerloc, October 22, 2018 Image source: moodboard/Getty Images.

Discussion Question:

1.  What are the operational advantages of Costco’s farm-to-table production system for rotisserie chickens?

Guidance: Costco will be able to ensure a steady supply of chickens that are consistent in quality and size for the rotisserie.  Costco can also better control its supply and demand of rotisserie chicken

2. What is the significance of the supply chain integration for Costco’s rotisserie chicken?

Guidance: With a vertically integrated rotisserie chicken supply chain, enough chickens of the suitable size will be Continue reading

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Walmart Going Toe-To-Toe With Prime?

Walmart Going Toe-To-Toe With Prime?

November 12, 2018

Walmart’s supply chain is becoming more customer-centric. Starting in November, customers can expect free two-day shipping with orders over $35 and in-store returns of items purchased online.

The in-store returns, in particular, are giving Walmart a competitive edge over Amazon which lacks a strong physical presence.

This post is based on the Supply Chain Dive article, Walmart will expand 2-day shipping, in-store returns, by Shefali Kapadia, October 23, 2018 Image source: © David Schaffer / age fotostock.

Discussion Question:

1. What are the strategic impacts of Walmart’s service design changes?

Guidance: Free two-day shipping with orders over $35 and in-store returns are offered on items purchased from both Walmart and its third-party sellers.  These changes provide Walmart customers with a more seamless and uniform retail experience than its competitors like Amazon.

2. What are the supply chain impacts of Walmart’s service design changes?

Guidance: Faster shipping and easier returns will increase the demand for trucking capacity and present a major logistical challenge to Walmart’s supply chain

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