Water Risk For a $5 Trillion Industry

Water Risk For a $5 Trillion Industry

October 6, 2017

Article Title: Nestle, Coca-Cola top list of companies disclosing water risk

Author of Article: Anya Khalamayzer

Date of article: September 14, 2017

Source URL: https://www.greenbiz.com/article/nestle-coca-cola-top-list-companies-disclosing-water-risk

Summarizing the key points from the 2017 Feeding Ourselves Thirsty report, this article relates specifically to OM in that it identifies a shortage of water and pollution of water as a risk to the sustainability of operations in the $5 trillion food and agribusiness industry. This risk is not just operational, but reputational, and has marketplace, regulatory, and litigation risks attached to it.  Nestle and Coca Cola earned the highest scores for their water risk management programs, while Chiquita earned only 1 point, given its lack of transparency.

Discussion Questions
1. Examine all the ways in your personal and professional life, you either consume or come in contact with items that consume water in the manufacture of them. Discuss what impact a shortage of water would have on you and the products both personally and professionally.

Guidance: This open-ended question can be used to encourage class discussion in process management, process improvement, ethics, productivity, product redesign, triple bottom line, corporate social responsibility, and sustainable supply chain.

2. Discuss what your Continue reading

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High-Tech Shortages

High-Tech Shortages

September 28, 2017

Article Title: Why There Are Never Enough New iPhones

Author of Article: Christopher Mims

Date of article: September 17, 2017

Source URL: https://www.wsj.com/articles/why-there-are-never-enough-new-iphones-1505649600

This Wall Street Journal article debates why high tech companies, including Apple, continue to experience shortages and delays in new products. Although this practice seems to violate basic principles of customer service, it may well be deliberate. Or at the very least, a mix of planned marketing and risk management, mingled with unplanned yield issues, complicated by the complexity of managing global supply chains. The critical bottleneck for the iPhone X, according to the article, is its OLED screen. Whether the delays are planned or not, one benefit of delayed production is improved forecasting.

Discussion Questions
1.What are the risks of delaying the delivery of the iPhone X?

Guidance: Focus the discussion on shortage costs and service levels.

2. What are the ethical implications of making deals for huge quantities of NAND memory at the expense of smaller players? How does it affect consumers?

Guidance:  The production of iPhones is restricted by the limited global supply of scarce components such as NAND memory and OLED screens.  With its purchasing power, Apple Continue reading

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