Squeezing Every Cent from a Barrel of Oil

A barrel of oil is no longer a leaky cask. Rather, it is an economic concept.

As a result, creating value along the supply chain has evolved from streamlining operations to exploiting operational and commercial synergies. The emphasis has shifted from vertical integration and expertise in specialized energy sectors to a tightly coordinated system in which every opportunity to increase profit margins is pursued. The agile system has the potential to quickly address supply-and-demand imbalances through access to energy storage and […]

Nike and Direct-to-Consumer: Just Doing It

Nike continues its march towards more direct-to-consumer (DTC) sales, notifying seven more distributors that they will no longer be selling its products.

The last shipments to DSW, Macy’s, Urban Outfitters, Big Five, and several others are likely to go out in October 2021. The move follows Nike’s cut of nine wholesalers last fall, and continues a push towards more digital sales.

Its DTC model that began about a decade ago has been accelerated and positively affected by the pandemic.


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By |2021-05-06T03:28:57+00:00May 5, 2021|Tags: , , , , |

USPS Plans to Deliver Changes to Mail Services

The US Postal Service (USPS) is planning a service overhaul to stem its losses.

The overhaul includes replacing one-to-three-day first-class mail with one-to-five day, consolidating mail processing and postal locations, cutting hours at some retail locations, moving more first-class mail by trucks instead of airplanes, going all-electric for last-mile delivery, and increasing postal rates.

A previous OM in the News post explained additional changes being made, as part of its overall efforts to redesign services, to cut costs and […]

Big Ship Creates Big Backlog

When the Ever Given got stuck in the Suez Canal, its gigantic size became a gigantic problem.

To support an ever-expanding global trade, ship size has been increasing for decades. Today, the largest ships can carry between 18,000 and 24,000 containers.  A larger cargo makes perfect economic sense because the cost of shipping one container decreases as cargo capacity increases. However, when things go wrong, big ships mean big disruptions in an already strained global supply chain. It is estimated that […]

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