Anheuser-Busch Tanks Up With Tesla

Anheuser-Busch Tanks Up With Tesla

December 20, 2017

Article Title: Anheuser-Busch Turns to Tesla for Huge Semi-Truck Order

Author of Article: Chris Morris

Date of article: December 7, 2017

Source URL: http://fortune.com/2017/12/07/anheuser-busch-tesla-semi-trucks/

Anheuser-Busch has placed an order for 40 Tesla semi-trucks.  AB is the second company reported to place such a large order; trucking company J.B. Hunt also placed a pre-order for as many as 40 trucks.

What is unique is that the semi-truck is all electric with a 500 mile range, and offers autonomous driving.  Anheuser-Busch plans to keep the driver in the truck, primarily to unload the beer.

Discussion Questions
1. Why would Anheuser-Busch pre-order the new Tesla semi-truck?

Guidance: You can begin with reducing their carbon footprint.  As the article mentions, they have a goal of reducing their carbon footprint by 30% by 2025.  It also offers many advanced safety features, and promises a 20% reduction in cost over the standard diesel truck.  With the autonomous driving feature, the driver might be eliminated in the future–further reducing costs.

2. Should the driver be eliminated at some point in the future as the autonomous driving technology matures?

Guidance:  At some point, the technology will make the Continue reading

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The Logistics of Direct-to-Consumer

The Logistics of Direct-to-Consumer

November 22, 2017

Article Title: Making eCommerce Logistics Fulfillment Channels Work in Today’s Direct-to-Consumer Market

Author of Article: Jagged Peak

Date of article: November 13, 2017

Source URL: http://www.supplychain247.com/article/making_logistics_work_in_todays_direct_to_consumer_market/news

This article describes the direct-to-consumer (D2C) market development.  Established companies will need to develop new D2C distribution channels without upsetting the retail distribution relationships.  Start-up firms must develop the logistics systems to meet growth in the D2C market.  All firms must develop customer relationships that add value in order to compete in the D2C marketplace.

Discussion Questions
1. In the D2C market, what are “virtual service relationship” service delivery considerations for an established firm?

Guidance: Review service delivery design considerations and customer relationship management. Students could then develop a service-blueprint to identify areas to add value to the customer relationship and to address service recovery systematically.

2. What are the logistics design considerations for a start-up firm entering the D2C market? How would international sales change the logistics planning?

Guidance: Students may develop a value stream map of a proposed lean supply chain for a start-up firm.  It may be helpful to have the students choose a new product or find a small firm in a Continue reading

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Houston, We Have a Cargo Problem

Houston, We Have a Cargo Problem

October 9, 2017

Article Title: Harvey Blocks ‘Critical’ Point of Entry for Cargo

Authors of Article: Brian Baskin and Erica C. Phillips

Date of article: August 31, 2017

Source URL: https://www.wsj.com/articles/harvey-cripples-key-point-of-entry-for-cargo-1504126803 (link does not require a WSJ subscription)

This article illustrates the importance of disruption mitigations in supply chain management and just-in-time systems.

With the closure of Port Houston after Hurricane Harvey, large container ships and oil tankers are re-routed to as far as the Bahamas and Mexico.  Businesses that rely on these shipments are facing shortages of parts and goods.  The disruption’s ripple effects are impacting businesses that use Houston as their distribution center and companies that provide trucking services.

Discussion Questions
1. What are the impacts of shipping disruptions on supply chain management?

Guidance: The article provides examples of businesses and types of businesses that have been impacted. Can incorporate a discussion of JIT systems, and the risk this adds to the supply chain.

2. What actions can companies take to mitigate disruptions in their supply chain networks?

Guidance: Examples are given in the article, and can be used to start class discussion. Can discuss multiple sourcing strategies, and how logistics can mitigate or Continue reading

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