This Week's Supply Chain by the Numbers for July 29, 2010

Supply Chain by the Numbers

-July 29 , 2010

This Week’s Supply Chain by the Numbers for July 29, 2010

WalMart RFID Gold Rush Here Again? More Manufacturers Bringing Production Back to North America; Cisco, Ericsson, Struggle with Supply Shortages



250 million
Potential apparel items that could be RFID tagged at WalMart per year just from the categories of men’s genes and “basics” such as underwear, according to Myron Burke, Wal-Mart's director of store innovation, who is leading the retailer's new item-level EPC RFID program in the United States. WalMart has just announced a new start in RFID with a program focused on apparel, beginning with these categories but likely expanding to others with success. See Will WalMart get RFID Right this Time?

21%

Number of manufacturers which said they have moved some production back to the North America from low cost countries, according to a new survey by MFGWatch. That’s up from 12% who said the same in the previous quarter, as supply chain disruptions seem to be on the rise, causing some companies to rethink their supply chain networks.


$410-547 million
The amount of sales network gear maker Ericsson says it lost in Q2 (see nearby section on Cisco) from supplier component shortages. The news sent the company's stock down 5.9% even though its profit for the quartered doubled over 2009.




60%
The product discount Juniper Networks has been offering since mid-April to customers who switch to Juniper from its giant competitor Cisco Systems. Cisco continues to struggle with component shortages that are having a serious impact on lead times, especially to its channel partners. Cisco executive Keith Goodwin told a global partner meeting this week that the shortages that Cisco “understood the impact it’s having on business.”