Plan Ahead For Brexit

Plan Ahead For Brexit

October 29, 2018

Brexit poses multiple challenges to supply chain management.  These challenges include changes to customs and tariffs, legal implications regarding contracts and intellectual property, lead times, and contractual incentives.

Firms that plan ahead with a variety of scenarios in mind stand the best chance of gaining first mover advantages as the new supply chains are put into place in the next six months.

This post is based on the Supply Chain Digital article, How can businesses prepare their supply chains for Brexit?, by Marcus Lawrence, October 11, 2018. Image source: Shutterstock / worradirek.

Discussion Questions:

1. How can firms subjected to Brexit in the United Kingdom maintain short lead times for imported inventory?

Guidance: Students should search the internet for articles about Brexit and the potential issues with imports/exports.  Students could then brainstorm in a class discussion about ways to maintain short lead times.  The discussion may include the idea of maintaining larger inventories in the UK or EU to overcome the delays caused by Brexit.

1. Will an efficient or a responsive supply chain potentially be impacted the worst in Brexit? Why?

Guidance: Review responsive and efficient supply chains.  Students should have a Continue reading

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Sustainable Sourcing in the Cocoa Supply Chain

Sustainable Sourcing in the Cocoa Supply Chain

October 13, 2018

Mars Wrigley Confectionery is planning to spend $1 billion over 10 years to ensure responsible sourcing of its cocoa supply by 2025.  Mars and eleven other cocoa buyers are working to increase  sustainable business practices for cocoa farmers in a responsible manner.

The plan is to use GPS mapping to insure cocoa supplies do not come from protected rain forests and to work directly with farmers to increase productivity and find ways to increase their income.

Fifty percent of Mars’ cocoa is currently certified by Rainforest Alliance and Fairtrade.  Mars wants to do more to improve the lives of farmers by paying more for responsibly sourced cocoa.  The company will also work with communities and governments to combat child labor practices.

A key issue is that cocoa production has been dwindling over the last decade in part due to farmers’ low income. Cocoa buyers fear that farmers will turn to more lucrative cash crops and further reduce the supply of cocoa.

This post was co-authored by David Little, Ph.D., and Anita Lee-Post, Ph.D.  It is based on the Supply Chain Dive article, Mars will invest $1B to fix ‘broken’ cocoa supply chain, by Continue reading

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