Eggs Cost Bakeries Too Much Dough

Bakeries across the U.S. have sought creative ways to operate amidst the challenge of soaring egg prices.

Some bakeries have dropped items that require more eggs as the raw ingredient.  Others have started selling by advance order only.  A few are thinking of sourcing eggs from lower price national vendors instead of local ones.  All are trying to keep operating without resorting to passing the price increase to customers.


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By |2023-01-27T06:38:27+00:00January 29, 2023|Tags: , , , |

Updating Southwest’s Operations to Prevent Future Meltdowns

The box-office hit The Perfect Storm (2000), starring George Clooney, highlighted a combination of three separate weather fronts that collided which led to one of the fiercest storms in recorded history in the North Atlantic Ocean.

During this past holiday season, several factors collided which led to major flight disruptions for Southwest Airlines. An historic number of flight cancellations and thousands of angry customers have resulted in major financial implications and operational challenges.

Let’s look at some of those factors to understand why […]

How Digital Data Enables Strategic Fit

While Carhartt traces its roots back 133 years, the company is now implementing digital tools (cloud, analytics, artificial intelligence, etc.) to improve its overall supply chain operations.

To implement process improvements, data must be timely, accurate, and relevant. A common expression amongst operations leaders: for something to be “meaningful” it also needs to be “measurable.” Hence the requirement for real-time data analytics.

Carhartt continues to improve its operational capabilities—for example increasing factory automation—as a means to further enhance a differentiated business strategy […]

Skimpflation

As inflation is impacting the prices of products, many organizations are looking for ways to cut costs. One such approach previously examined by OM in the News is the concept of shrinkflation, when companies reduce the size of the product. In many cases, customers don’t notice the change is size.

Now, instead of reducing the size of the product, some companies are changing the ingredients, choosing cheaper alternatives. This approach is being referred to as skimpflation.

One example of […]

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