Microsoft Pushes Paid Family Leave Down the Supply Chain

Microsoft Pushes Paid Family Leave Down the Supply Chain

September 13, 2018

Offering better employee benefits is now a requirement for Microsoft’s suppliers and business partners.

The benefits include a minimum of 12 weeks paid leave for new parents in addition to providing 15 days of paid sick or vacation time.  The policy demonstrates Microsoft’s commitment to investing in the people who work for the company and its supply chain partners.

This post is based on the CNBC article, Microsoft will start requiring partners and suppliers to offer paid family leave, and it will help cover the costs, by Sara Salinas, August 30, 2018. Image source: © travellinglight / Alamy.

Discussion Questions:

1. What are the reasons for Microsoft requiring its suppliers and business partners to implement a better employee benefits policy?

Guidance: These reasons include: recognizing people as the key to Microsoft’s success; ensuring companies that are doing business with Microsoft also place the same value on its human capital; increasing Microsoft’s competitiveness with a healthy workforce.

2. What are the costs and benefits of the new paid parental leave benefit requirement for Microsoft’s suppliers and business partners?

Guidance: Paid parental leave increases labor costs but increases productivity, increases morale and lowers turnover rates.  It Continue reading

Facebook
Google+
http://ominthenews.com/tag/supplier-relationship/page/2">
Twitter
Putting Out The Fire For Ford’s F-150 Supply Chain

Putting Out The Fire For Ford’s F-150 Supply Chain

A fire at Meridian Magnesium Products of America plant in Eaton Rapids, Mich revealed just how fragile supply chains can be. It stopped production of Ford’s F-150 due to a lack of critical parts from this supplier.

The F-150 is Ford’s most popular and most profitable model.  In addition to Ford, other auto manufacturers have been impacted as well, including BMW, Chrysler, GM, and Mercedes-Benz.

At first, Ford believed the factory fire would stop production for weeks or longer. With Meridian’s help, and the rescue of specialized tooling that wasn’t damaged in the fire, Ford cobbled together a new worldwide supply chain for the affected parts on its F-150.

At the time of the May 18th article from Detroit Free Press, Ford expected to re-start production within a few days.

This post is based on the Detroit Free Press article, From panic to triumph: Behind the scenes of Ford’s epic F-150 restart, by Phoebe Wall Howard, May 18, 2018, and the NPR.org article, Ford Halts Production of F-150s After Fire At Supplier’s Facility, by Camila Domonoske, May 10, 2018. Image source: Iconotec/Glowimages.

Discussion Questions:

1. Why did a fire at one supplier force Ford to temporarily halt Continue reading

Facebook
Google+
http://ominthenews.com/tag/supplier-relationship/page/2">
Twitter
End of the Great KFC Chicken Shortage of 2018?

End of the Great KFC Chicken Shortage of 2018?

April 30, 2018

Have you been following The Great KFC Chicken Shortage of 2018? See previous OM in the News posts (KFC’s Chicken Shortage and What the Cluck Happened to KFC?) for more of a background, but to recap: In February 2018, KFC was forced to close over 700 restaurants in the United Kingdom due to a shortage of chicken.  The problem resulted from switching suppliers from Bidvest to DHL and Quick Service Logistics (QSL).

Two months after the shortage, problems continue.  As of April 21, 2018, approximately 400 of KFC’s 900 UK restaurants have a full menu in place.

That leaves approximately 500 restaurants with a partial menu, and KFC is predicting 98% of the menu will be available by early May.

According to a spokesperson from Bidvest (the original and now-rehired supplier). “Every KFC restaurant that Bidvest Logistics services will be on full menu from Tuesday, April 24.” DHL did not respond to a request for comment.

This post is based on the Telegraph article, Less Than Half of KFC Sites Have Full Menu Months after Delivery Fiasco, by Bradley Gerrard, April 21, 2018. Image source: Dima Fadeev/ 123RF.

Discussion Questions:

1. What sort of Continue reading

Facebook
Google+
http://ominthenews.com/tag/supplier-relationship/page/2">
Twitter