All posts tagged 'just-in-time'

Resin shortage puts brakes on auto supply chain

by Marly Hazen McQuillen
20. April 2012 16:24

Automotive Industry

Recently, a fatal explosion at an Evonik Industries factory caused tremors across the global supply chains for cars, light trucks and heavy-duty (Class 8) trucks, among other products. The Nylon-12 production plant in Marl, Germany, was severely damaged in the explosion and hopes to reopen by winter.

The lack of supply is causing alarm because the chemical resin, PA-12 (a.k.a. Polyamide 12 or Nylon-12), is used to make brake lines and fuel systems. As such a critical component, it cannot be easily replaced. Few companies worldwide produce PA-12, and no equivalent alternatives are known. Substitutes for Nylon-12 will require rigorous testing before implementation.

Europe expected to be first affected

"European users will be the canary in the coal mine for this problem," said analyst Chris Cesaro, in a Credit Suisse report cited by Bloomberg.

As the automotive production region in closest proximity to the German plant, Europe is expected to be the hardest hit by the supply shortage. Because of greater distance from the supplier, automobile factories in areas such as North America and Japan should still have supply of PA-12 en route.

Despite its location in the fallout zone, Germany is expected to be less affected by the shortage, as it can source from Ems Chemie Holding, a supplier in Switzerland.

Detroit distressed over resin shortage

"The shortage is real and immediate," warned William Kozyra, TI Automotive Chairman and CEO, in a memo to customers. Auto industry heavyweights met this week in Detroit to ruminate and discuss the growing concern.

Location and Lean: Opportunity and challenge in East Asia

Like Germany's use of the Swiss supplier, Japan is expected to supplant its Polyamide 12 supply via Ube Industries, Asia's largest supplier of the resin.

Conversely, Hyundai and Kia Motors, based in South Korea, are vulnerable to the just-in-time crisis due to their Lean manufacturing tactics.

Image by bisgovuk

Just-in-time for Amazon sellers?

by Marly Hazen McQuillen
18. May 2011 15:30

FBA Selling Coach emailWhen I arrived to work this morning, I discovered a news story disguised as routine notification emails (right, click to zoom). Fulfillment by Amazon, a service that warehouses and distributes products for sellers, will be raising its storage fees starting in August.

Fulfillment by Amazon emailThe cost will be $45 per cubic foot per year for any items that have not been sold within a year. This amounts to $1.10 per average-sized book or $4.58 per average-sized toy. Prices for removing surplus inventory will decrease overall, including a dramatic reduction of 67% plus no shipping costs (or 750% plus no shipping for oversize items) until the changes roll out August 15. What does this mean for the logistics community? More...