How Amazon Is Changing Supply Chain in 2016

Jordan Thimm
It is crazy, we remember Amazon back when the business first started as a small online book retailer, but it not ships anything to everything and is one of the leading online retail businesses in the world. How did the become so successful? What separates them from other online retailers? One big push this business has made in their time is the quickness of their deliveries. They know customers today want their orders delivered as quick as possible and Amazon prides themselves on their innovation and success in this category. Ever since the installment of Amazon Prime membership in 2005 which includes free 2-day shipping on certain items they have been non-stop ever since. Also their introduction of drone delivery systems and automated warehouse show their strides into the future and into more advanced and quicker ways to get their good into the customers hand as quick as possible. Amazon has so many orders to fulfill, they try to have their own delivery services take orders which cuts cost from outsourcing to third party services, but there has been such an increase in orders I'm pretty sure they have been using other services like FedEx, UPS, and the USPS have been taking Amazon deliveries. This is causing stress in these companies because they are not used to the 1 and 2 day delivery requirements like Amazon promises. I know this because my grandma works for the United States Postal Service and she has said there has been a big number of Amazon shipments and orders to fulfill.
http://www.softwareadvice.com/resources/amazon-supply-chain-management/

Driverless Trucks and Supply Chain Strategy

Adam Seeton

Driverless trucks would be a huge change in the Supply Chain world. This would cause the management of the supply chain to rethink their strategies for the delivery process of their products. The fact that there would be no driver, the driverless truck could do wonders for their business. The trucks would eliminate driver errors and would ultimately become much more efficient. It would also affect the speed of delivery. With a lot less trucks on the road, the trucks will get to their destination much faster in a 24 hour period. These futuristic trucks would also help us, the customer. Because businesses would no longer have to pay truck businesses to deliver their goods, the cost to produce the product will be reduced. This means that the price we would pay for that good would also be reduced due to the fact it is cheaper to manufacture it. They believe that with the introduction of driverless trucks it will not completely wipe out the truck industry. They say that truck drivers will use these trucks to drive the first and final mile of pickups and deliveries. With that all said, we may see a lot change in the near future when it comes to the truck industry. It will be interesting to see how Supply Chain Management handles this idea and how their strategies will change to become the most efficient.
Potts, Jeff. "How Driverless Trucks Will Change Supply Chain Strategy." LeanLogisticsBlog. N.p., n.d. Web. 26 Feb. 2017.

Trump Talk Rattles Aerospace Industry

Jordan Thimm

President Trump has talked about border tariffs and new trade deals that people in aerospace fear could raise the cost of American airplanes bought by foreign airlines and government. The president is proposing a forty-five percent tariff on imports from China, and a twenty percent tariff on goods from Mexico. If business costs go up, Boeing would probably not be able to raise prices to cover the difference, because then it would lose customers to Airbus. If these trade wars do take come to be a reality this may mean a big loss of jobs in the aerospace field This field is very diverse and the supply chain and logistics of it is very long and complicated. There are so many smaller companies that send parts to bigger companies like Boeing, so if there is a shift in the market it effects a lot of people. The fact that Trump is already making big trade changes can have multiple effects on the market and job security, and it can effect people all over the world. The notion of "Buy American" may become great again in the White House and if big aerospace manufacturers shift their purchasers to suppliers in the US. This may be beneficial to suppliers here, but people over seas will lose jobs and this could also have unknown effects on our market and the supply chain of the field.


https://www.nytimes.com/2017/02/23/us/trump-talk-rattles-aerospace-industry-up-and-down-supply-chain.html?_r=0

Prompt #5: Observing Community

Prompt #5
Adam Seeton

While looking into clubs that seemed interesting to me, the Supply Chain Management Association was exactly what I was looking for. The Supply Chain Management Associations's goal is to provide resources and opportunities to students who are interested in meeting with business professionals and additional student to faculty interactions. What is nice about the SCMA is that it is not only open to Supply Chain Management majors. There are many students who are in a different type of business or even a major like engineering or education. The SCMA hosts all sorts of events to keep its members active and involved. Roughly two times a month, they will host General Membership Meetings. In these meetings employers and recruiters will present their company to the students. They will have an open Q&A towards the end of their presentation. There are a lot of benefits for Supply Chain Management major students to get out of these meetings. Students can build networks, learn about different companies, ask employers questions in an informal setting and attain leadership experience. The SCMA also hosts golf outings and career fairs. Community service is something that SCMA believes is very important to having value and staying involved. For example, they will host dances, ice skating for elementary students, and food banks. Finally, the SCMA hosts a leadership academy for all members who sign up. In this leadership academy, you will learn what it takes to become a leader and the importance of communication with your peers. What I have learned from this club is not only is it beneficial to Supply Chain majors, but it can be useful to any type of major.

SCM: A Needed and Growing Opportunity

Jordan Thimm

The field of supply chain management and logistics are growing fields and do not show any signs of stopping soon. With how connected we are in our world today, it is no wonder this business is growing so much. With businesses spread everywhere in the world, and such easy access to these businesses and ideas, the need for someone to help in the rightful exchange between buyer and seller, is virtually never ending. Supply chain includes all the activities a business employs from getting the source of the raw materials to delivering finished goods at the point of purchase. They must find the best and most cost efficient way to do this, in order to get the product on the market at a price the consumers will be happy paying. From this article I read on the importance of supply chain I have gained much insight into what this field entitles. There are many different aspects of it, so it offers a broad range of opportunities to grow and move around. For example, these logistics managers can be categorized into two sections, one being the planning managers, and the other the operations managers. Both very important to the success of their business, just both have slightly different job descriptions and duties (I plan on going into more detail of the description of various supply chain jobs and their workings in a later post). So to sum it up, supply chain management is a growing field with many opportunities within the field. I learned this through reading this article and seeing what the field entitles and all the different aspects of the job, with so much ground to cover in the field and different avenues to take once you are in the field, the possibilities are endless.

Vella, Dean. "Supply Chain Management: A Needed and Growing Opportunity." Supply Chain Management: A Needed and Growing Opportunity - Inbound Logistics. 2017 Thomas Publishing Company, 2017. Web. 19 Feb. 2017.

Importance of Supply Chain

Justin Braford

          This is an article talking about the emerging importance of the supply chain industry. This is a great article because it is backed by real life situations. CEO's of companies weigh in on how much they believe supply chain/logistics affects their overall business.
          Kevin Gue, a professor at Auburn University states, "We are on the cusp of real transformation in retail distributing and manufacturing." There is no denying the validity of this statement. With all of the recent technological advancements, logistics is brought to a whole new level. Gue believes that supply chain is at the head of this transformation. Supply chain brings everything involved in the distribution of goods together. There is no doubt that workers in the supply chain field are making a difference now more than ever.
          Companies have the ability to save large amounts of money with an effective supply chain. An example is Amazon with their direct-to-consumer order fulfillment. Amazon is try to stay ahead of competitors by being more efficient with the logistics of their shipments. These types of changes also take an effect on the manufacturers and retailers of all these goods. It is all about the process of quickening the process, but one area cannot overpower the other. Every part has to do their job to make it as productive as possible.
          This is going to be a transformation that will happen right in front of our nation's eyes. It will be interesting to see where it takes us in 10, 15, and 25 years. The business industry is constantly evolving and finding better ways to do operations.


Trebilcock, Bob. "Supply Chain Matters." Copyright Peerless Media, Nov. 2013. Web. 19 Feb. 2017. <http://search.proquest.com.proxy1.cl.msu.edu/docview/1462047431?pq-origsite=summon>.

Prompted #9: Recognizing Significance of Logistics

Prompted Post
Jordan Thimm

Well when I first started this post I initially went to the MSU’s supply chain management Facebook page to find some ideas and maybe observe the community that has been created around their organization, and I still may. But instead of that, I ran into an article they posted that showed the importance of this field in our world for those of us who don’t recognize it. This article goes into more detail about how the academic research that some of the faculty is doing is being applied in the real world and how they are impacting the world. I thought I would evaluate these claims and add my thoughts to their research.

This article focuses on logistic hubs, and their importance to our economy and keeping things balanced between the public and private sector. Logistic hubs are basically, to put it simply, areas where there is a lot of business focuses on logistics. These hubs do not all look the same, as this article mentions a few different examples written by MSU professors in their research on how they may be structured differently and how government interference with the hubs may be a factor. What I said earlier about logistics hubs “basically” being a group of businesses with a similar interest in logistics, that was exactly what the authors were trying to avoid, they want to convey the message that logistic hubs are much more than that. They are ways to reform and organize economic activity in certain locations. They must understand the flow of the market and who is dependent upon one another, they also have some power to, like I said, reform the flow because it is all derived from one general region. I agree with this notion of logistic hubs being more than what people may think, because I think that is how a lot of things may be viewed by people who don’t know the workings of logistics and their importance to certain areas. When I say certain areas, I say that because these hubs are very dependent on their location and their surrounding economic environment. An example of this is the fact that towns around harbors or close to big sea routes are more likely to sprout a larger logistics based hub rather than say a land locked town with not a lot of business around.

Back to what I mentioned earlier, government interference with logistic hubs. The first type of regional logistic hub is called the “port authority” model, and is defined by its very strong government involvement. Here, many times, the hub is government owned and run, so they have power to levy taxes, fees, tolls, etc. to fund their business. On the other end of the spectrum, we have what is called an “industry collaboration” and this is categorized by minimal government involvement. It is an organization created usually by an economic development agency to organize the supply chain and logistics in an area. This is different from port authority because this organization is voluntary, not government led or funded, so they must communicate more across a broader chain around are aimed at enhancing the economic growth of the hub and the area in which it resides. Not to say that the other form does not aim for this, but port authority structured hubs I feel like, may have other interests in mind as well.

Overall, this article was written to show the significance of logistic hubs and explain how they can be structured and governed. These hubs are so important because they drive economic development and both the public and the private sector benefit from a logistical-based economy. The private sector can go along doing their business and the public sector benefits from some logistic hubs around the world, and in many other ways around the world. My question to you is, what might be other factors that affect the size and location of logistic hubs?

 Staff | From the Quarter 4 2016 issue. "Governance models for regional logistics hubs, and why they matter." Governance models for regional logistics hubs, and why they matter – CSCMP's Supply Chain Quarterly. N.p., n.d. Web. 16 Feb. 2017.

Coca Cola Supply Chain

Adam Seeton

This is a short youtube video explaining to you how Coca Cola is so successful and how it has operations in over 200 countries. It is explaining how they run their supply chain and what goes into manufacturing the no. one selling soft drink.

Supply chain is controlling how and where they are getting the ingredients that goes into making Coca Cola. It first starts off with second tier suppliers. This is where Coca Cola is getting their vanilla flavoring, cherry flavoring, water suppliers, carbon dioxide suppliers, glass factory and aluminum factory. Then they move on to first tier suppliers. In this tier, they receive their syrup that was made at the Coke Concentrate Plants. They also get their packaging in which the Coke comes in when you purchase it. All of this goes into a manufacturing stage where everything is put together, and then it is stored in their warehouses. Finally it goes through the distribution stage to be sent out to first tier customers such as supermarkets, convenience stores and vending machine companies. Then me and you, the second tier customers, purchase the Coca Cola products including; Coke, Diet Coke, Sprite, Minute Maid, etc. Supply Chain Management is putting this all together at the lowest price so we, the customers, can purchase and enjoy the Coca Cola we all know today.

Adam Smith of Supply Chain Management

Justin Braford


          This is the summary of an article about the beginnings of supply chain management. In 1915, a man named Arch Wilkinson Shaw, published a 119-page business book covered in cloth. After he published his book, Harvard grew interest in hiring him as a professor. Once he was at Harvard he created a new book, Some Problems in Market Distribution, which became the first ever book about supply chain management.
          Shaw described in his book, "the most pressing problem in business today, is systematically to study distribution." Shaw is talking about both marketing of the good and the actual physical distribution of the good. The book delivered plenty of good business strategies on how to succeed in both of these aspects.
           Bud La Londe is a former professor of logistics at the Ohio State University. He received his master's degree in business administration from Michigan State University in 1961. He is known as one of the first degree holders in the new field of "physical distribution." He claimed the book was the top supply chain management from when it was created, all the way up to 1976, it's last reprint.
          Shaw created several other books, all relating to the business industry. Many high level professors of supply chain say the field has came a long way, but is continually evolving. Although the field has changed quite drastically, Shaw's book still remains relevant to this day. This is why many refer the Shaw as the "Adam Smith of supply chain management."

Smith, Jeremy N. "The Adam Smith of supply chain management." World Trade, Sept. 2006, p. 62. 

Global Supply Chains & Instant Gratification

Jordan Thimm

This is just a short clip of a professor from the Ohio State University, who is also the director of the Global Supply Chain Forum, talking about how important partnerships are in today's business environment.
https://www.youtube.com/watch?v=iqwIFWZGJ7s#action=share

The globalization of our economy and our supply chains has not only changed the supply and demand of goods across international borders, but also the whole entire world we live in along with it. As the dynamic of U.S international trade changes, manufacturers in the U.S are rethinking their strategies on how to create their products the quickest and most cost efficient way possible. In the past, this was through out sourcing and giving jobs across seas. According to an article off of the website InboundLogistics.com by Joseph O'Reilly, approximately more than one third of the world's population resides in China and India alone. The demand-supply curve (for anyone who knows some type of business model) or if not, this is just how the supply and demand of goods interact with each other and when they change, the whole market shifts and changes as well. Demand is changing, and this could mean a number of different things for producers and consumers in the world. The market today is much different than 20 years ago, technology has brought with it many positives and some negatives to our way of life.

One of these negatives being our subtle entitlement to instant gratification. People order something online and pay and then just sit and wait for it to show up at their door. A number of people do not even comprehend what has to happen and how many different people were a part of the process of getting that package from wherever it was made from to your front door. And god forbid you go into a store and they don't have the product you are looking for. People want everything fast and don't really care how it happens, and this complex has spread over other aspects of life as well other than just business. Supply chain and logistics is sort of the cog in the background of the economy that keeps it running. This is why this area of business interests me, and also because it is becoming more and more important as we all become closer and more connected with the help of technology. The harsh backhand of instant gratification is negative in the sense that people are losing their patience, but is very good for the field of supply chain because people are ordering and shipping things in larger numbers.

O'Reilly, Joseph. "Rethinking the Global Supply Chain." Rethinking the Global Supply Chain - Inbound Logistics. N.p., n.d. Web. 06 Feb. 2017.

Prompted #2: Defining Supply Chain Ethics

Justin Braford
WRA 101 Prompt #2

          Ethics are important in nearly every aspect of life. It is important to know the boundaries between right and wrong in given circumstances. Each job field has a different code of ethics relating to the specifications of their job. Obviously, major ethics can be relevant in many different types of jobs. Supply chain management has a strict and complete code of ethics. It is valuable to know and understand why and how these are important to the field.
         Ethics play a huge role in supply chain management. There are standards of conduct, professional principles, and governance/compliance. Many of the professional principles can relate to my everyday life. Honesty and integrity are key traits that I must possess to live out the life I wish to pursue. Responsibility and serving the public good will be a huge part of my future. I will have to be responsible in my every action as I work in the supply chain field. I could do a million things right, but one wrong move could cost me my entire career. Professionalism is also a big part of my life. It is key to present yourself as a hard-working and well-rounded individual in any situation.
          People in the supply chain management industry genuinely know the diving line between unethical and ethical. There is a clear cut set of rules they must follow, and a majority of the time they are followed. However there is definitely a little bit of grey area. It is known that people in the supply chain industry may be doing business with close friends or buddies. Supply chain workers get the chance to meet many different people from many different companies. This is why it is easy to develop friendships and connections in the industry. However, It is critical to not let the friendship get in between the business.
         For the future, I will need to hold myself accountable every single day to living under these specific guidelines. It can be tricky to follow them all the time, but with the right mindset and education it can be very simple. Supply chain workers are often well-educated and have years of experience under their belt. Supply chain workers are held responsible for their actions not only by themselves either. Bosses, co-workers, and business partners will also be their to check. It is hard to get away with unethical behaviors, because supply chain workers are always working with other who will be able to notice. This could impact me as a professional because there may be others trying to get away with unethical behavior, but I will be right there to stop them.

http://scma.com/en/about-scma/join-scma/code-of-ethics

Heinz-Kraft Supply Chain Attempts For Success

Adam Seeton

With the merge of Heinz and Kraft, supply chain is what really made this process all possible for 3G Capital Partners. 3G’s attempt is to produce a $28 billion company, while spending a whopping $48 billion. This company would have about $5 billion in free spending. They will tackle their issues with “low hanging fruit” savings approach. This can save them up to $500,000,000 in the first year after the merge. The supply chain management will also have to work with suppliers and start redoing the supply agreements. Because Heinz and Kraft have similar markets, the supply chain will have to work out new deals so that they can merge the two companies at the lowest price possible. Suppliers with deals with either Heinz or Kraft will have to ultimately abolish those deals in attempt to redesign a new agreement. The competition is revamped because now all suppliers are trying to make a deal with the new combined company. When designing a new deal, the Heinz-Kraft Company will look for cheaper inventory, faster delivery and long payment terms. It is time for the management of the supply chain to start working out the best deals for the company to succeed.

Marion, Gary. "How Supply Chain Will Make Kraft-Heinz Succeed." The Balance. N.p., 27 Mar. 2015. Web. 05 Feb. 2017.