Today's Top Supply Chain and Logistics News From WSJ
February 23 2017 - 07:08AM
Dow Jones News
By Paul Page
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Boeing Co. thinks it can speed up production of satellites by
using fewer workers. The aerospace giant is proposing to overhaul
the manufacturing process by relying more on 3-D printing and going
to simpler assembly patterns that would streamline supply chains,
the WSJ's Andy Pasztor reports. That would mark a big change in a
satellite business that traditionally has relied on highly
customized, manual assembly procedures that keep production slow
and costs high. But new methods and new technology are aimed at
bringing together standardized, pretested components and
sidestepping most of the painstaking testing and integration
currently that's now carried out on the factory floor. That will
mean lower supplier and labor costs in the near term, but Boeing
also expects to become more nimble in its manufacturing by being
able to upgrade technology even while production is underway. Those
processes could filter into Boeing's aircraft and, if it flies,
become a model for other manufacturers.
Tesla Inc. may be starting to get a grip on the automotive
supply chain , but it still has a long way to go. The company,
which dropped the word "motors" from its name, delivered 22,200
sedans and SUVs in the fourth quarter, the WSJ's Tim Higgins
reports. The quarter was Tesla's second-best ever for deliveries in
a business that has struggled with supplier problems and production
delays. But the 27% year-over-year growth in the last quarter left
the company about 4,000 vehicles short of the 50,000 deliveries
that Tesla Chief Executive Elon Musk had targeted for the second
half of 2016. The targets are significant for a business that is
trying to redraw motor vehicle supply chains as it changes consumer
buying behavior. The company will have to ramp up the pace: it
plans to start sales of its Model 3 later this year, a sedan that
is supposed to expand annual production to 500,000 cars next year
-- nearly six times the current rate.
One of China's biggest car makers is looking to redesign Asia's
automotive supply chains. Zhejiang Geely Holding Group Co., the
Chinese auto maker that owns Volvo Cars, is readying a bid for a
majority stake in Malaysian car makerProton Holdings Bhd., the
WSJ's Yantoultra Ngui, Trefor Moss and Kane Wu report. The effort
comes as Proton's parent is looking for a foreign strategic
partner, and France's PSA Group, which makes Peugeot and Citroën
cars, also has submitted a bid. But Geely's offer could have the
biggest impact. The company is looking to get a piece of the big
auto market outside China, and could scale up quickly with the
Malaysian manufacturer: Cars built in any of the 10 members of the
Association of Southeast Asian Nations can be sold throughout the
bloc tariff-free. That would boost Geely in the consumer market and
on the production end helping the auto maker build bigger scale
with its parts suppliers.
SUPPLY CHAIN STRATEGIES
One of the biggest meat companies in the U.S. could overhaul the
country's poultry supply chains with a decision to eliminate
antibiotics in its products. Tyson Foods Inc. expects the move will
vault the company to the top of the rapidly expanding "no
antibiotics ever" market, the WSJ's Jacob Bunge reports, a market
where products can command premium prices but also cost more to
produce. It's part of Tyson's broader push to shift from its roots
as a bulk commodity supplier into a branded, higher-grade
distributor in its own right. The impact of the no-antibiotics
decision will ripple across farms and supply chains since Tyson
processes more than one-fifth of all poultry sold in the U.S. It's
a big win for groups fighting the use of antibiotics in food supply
chains since Tyson's big scale will make it more economical for
more farms to operate without the drugs.
QUOTABLE
IN OTHER NEWS
U.S. home sales rose in January to the highest level since
February 2007. (WSJ)
Mexico's economic growth slowed moderately in the fourth quarter
as a sluggish industrial sector offset robust gains in domestic
consumption. (WSJ)
China sharply expanded its North Korean coal imports in the
weeks before Beijing suspended the coal trade. (WSJ)
Workers at Japan's Yamato Transport want the company to curb the
number of packages it delivers amid surging demand and a shortage
of manpower. (Nikkei Asian Review)
Up to 20,000 metric tons of cocoa is rotting at Ivory Coast
ports and might not be sold following a wave of defaults by
exporters. (Reuters)
Rail equipment maker Wabtec Corp.'s profit plummeted 63% in the
fourth quarter as railroads restrained spending in a tight freight
market. (Pittsburgh Post-Gazette)
Texas-based less-than-truckload carrier Central Freight Lines
Inc. agreed to buy assets of Wilson Trucking Corp., based in
Fisherville, Va. (Staunton News Leader)
The union representing Spain's port workers set a series of
strikes starting next month to protest a port liberalization plan.
(Lloyd's List)
U.S. domestic container line Matson Inc.'s fourth-quarter net
profit fell 27% to $19.4 million as rising fuel costs offset a 5%
gain in revenue. (American Shipper)
The new Seoul-based SM Shipping container line will launch
service April 21 with a single string of ships sailing between Asia
and the U.S. West Coast. (Korea Pulse)
Container ship owner Danaos Corp. slumped to a $446.6 million
loss in the fourth quarter as it took a $205 million charge related
to bankrupt Hanjin Shipping. (Seatrade Maritime)
APM Terminals will nearly triple its investment plans at Port
Elizabeth, N.J., to $200 million to prepare for larger container
ships. (Port Technology)
Libyan militia forces allied with a powerful warlord seized a
commercial car carrier traveling through the Mediterranean.
(Maritime-Executive)
Discount retailer Dollar General Inc. will build a $91 million
distribution center in central New York state, its 16th in the U.S.
(Business Journals)
New Zealand is projecting strong exports of apples and pears
after record crops this year. (FruitNet)
ABOUT US
Paul Page is deputy editor of WSJ Logistics Report. Follow him
at @PaulPage, and follow the entire WSJ Logistics Report team:
@brianjbaskin, @jensmithWSJ and @EEPhillips_WSJ and follow the WSJ
Logistics Report on Twitter at @WSJLogistics.
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Write to Paul Page at paul.page@wsj.com
(END) Dow Jones Newswires
February 23, 2017 06:53 ET (11:53 GMT)
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