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Supply
Chain by the Numbers |
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- Sept. 13, 2013
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Walgreen's Building New Supply Chain Capabilities; International Paper Closing Major US Factory; New Rules Said to be the End for Coal-Powered Electric Plants; Europe Turns to DC Automation |
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1100 |
Number of workers that will be out of a job soon, as International Paper announced this week that it was going to shutter its largest US factory in Courtland, AL. The move to reduce capacity comes as demand for paper in some sectors continues to shrink, as everything from email to on-screen viewing reduces the need for paper products. That said, the news came just one day after the company said sales overall are growing, and it boosted its dividend 17%. The Courtland plant makes copy-type paper as well as coated paper for magazines. International Paper said it considered spending capital to upgrade the plant's lines to make other products, perhaps such as corrugate, but in the end decided the return just wasn't there.
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100 Million |
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Number units that one global apparel company ships annually out of a 500,000 square foot distribution center in Europe. That same company, with a very similar demand profile, ships just 90 million units out of a 2 million square foot facility in the US. The difference of course: heavy use of automation in Europe, including high rise storage and case picking automation. That according to Chris Lingamfelter of Dematic, at the Material Handling and Logistics Conference this week in Park City, UT. Europe is far ahead of the US in terms of DC automation - and automation of everything - Linamfelter made clear. Land and labor costs are a big factor.
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