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******Please need help answer each of these 4 articles. 1)…
******Please need help answer each of these 4 articles.
1) New UPS contract
Hello classmates,
Although this is not breaking news, this decision made by UPS to renegotiate the current contract was huge in the world of supply chain. Not only does this new contract give great pay increases to their fulltime employee and their part time employees. But it also puts air-conditioning into the step vans. The pay is great but from firsthand experience being on a route truck and now a route supervisor this was the biggest victory. These are two of the biggest talking points but the contract also gives its workers many other victories. It is no surprise that almost 86% of the votes casted by the employees where in favor of the new contract.
If UPS is willing to enact such drastic changes to its contract to prevent a massive strike, what does that tell us? I’m curious to hear what you all think?
In my opinion it means two things. One if UPS is making such drastic changes to a contract, then that must mean they physically couldn’t operate without these drivers and would have likely lost millions in revenue. Two, is that supply chain is taking over the world, it’s no longer just about companies like Walmart trying to improve their system to get product to the shelves. Instead, it’s how can we make it so convenient that the customer doesn’t even have to come into the store.
https://www.supplychaindive.com/news/ups-teamsters…
https://www.npr.org/2023/08/23/1195383661/ups-work…
2) Yellow’s Failure
Hi Class,
Last month, Yellow filed for bankruptcy which caused disruptions in the logistics world. The 99-year-old company was the third-largest less-than-truckload (LTL) carrier in the United States. Yellow’s stock price was worth hundreds of thousands of dollars in the early 2000s. However, due to poor business decisions and the 2008 recession, the company struggled since. The 2020 pandemic hurt the company even more. Over 30,000 workers were laid off.
In this Wall Street Journal article, Old Dominion Freight agreed to buy Yellow’s network. 170 truck terminals for $1.5 billion. Hopefully, this will offer some relief down the road for businesses to ship our product by LTL.
Question, Has anyone else been affected by Yellow’s bankruptcy? I work for Dollar Tree and we cut them off in June due to poorly managed operations. We knew it was coming and eliminating terms with them caused us to use other LTL carriers. We were not the only business to cut them off early and seems like other LTL carriers are in high demand.
THE WALL STREET JOURNAL – Aug 23, 2023
Bankrupt Trucker Yellow’s Real Estate Is in High Demand
The company’s liquidation is putting dozens of freight ter
3) Hydrogen Powered Locomotive Developments
Hi all,
As it correlates to our M1LB4 readings this week I wanted to share the article below. I had the opportunity in July to hear the CPKC EVP and CMO John Brooks outline the newly partnered railroads developments in this space. During his presentation he outlined how the CPKC is in partnership with Canadian industry currently piloting a fully solar powered manufacturing facility serviced by two CPKC hydrogen powered locomotives.
Also good to see two class I railroads forming a joint venture to retrofit existing diesel-electric locomotives to hydrogen-electric powered throughout the class I railroad network.
https://www.trains.com/trn/news-reviews/news-wire/…
TRAINS – Jun 23, 2023
CPKC and CSX team up for hydrogen-powered locomotive project (updated) – Trains
CPKC and CSX Transportation will form a j
4) Zara – an ethical manufacturer?
In the reading about Zara, the clothing manufacturer and retailer, the term “fast fashion” is brought up. Nowadays, I feel like when I have heard that term it has been in a negative connotation, relating it to the low-cost online fashion retailers who have notoriously bad working conditions in their production facilities. While it might be a generalization to relate Shein, one of the brands who has been in the spotlight for poor working conditions, with Zara, I keep wondering how Zara is able to ethically source and manufacturer these products in such a short time period of time.
When I worked as a Supply Chain Analyst for ABB, an industrial electronics manufacturer, we had all kinds of issues with our workforce in the plant. We had high employee turnover and had to rely on temporary workers to fill in the gaps, which highly disrupted production quality and timeliness.
My question is, how is Zara able to keep a consistently high preforming workforce, while also ethically sourcing and producing these garments?
https://quickbooks.intuit.com/r/supply-chain/zara-…
QUICKBOOKS BLOG – Jun 25, 2018
Zara supply chain analysis – the secret behind Zara’s retail success
Find out how Zara effectively fulfills ever-cha
