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Supply
Chain by the Numbers |
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- August 7, 2014 -
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IMF Would Like to See US Diesel Prices Rise; US Automakers Leaving Big Profits on the Table fromLack of Collaboration; Procter & Gamble to Heavily Prune Its SKU Patch; Chinese Plant Explosion Kills Many, Focus on iPhone Impact |
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100
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That's about the number of its many brands consumer packaged goods giant Procter & Gamble announced last week it would either sell off or shut down. P&G said the remaining 70 to 80 "core" brands it will now focus on accounted for 90 percent of sales and more than 95 percent of profit over the past three years. Twenty-three of those key brands have sales of over $1 billion annually. Many companies have tried unsuccessfully to reduce their SKU counts over the years - maybe the way to do it is to just axe whole brands or categories, as P&G is doing.
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75 |
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Number of workers killed at last count in an explosion at a metals polishing factory in Kunshan, China. Another 186 at least are injured. The tragedy prompted Chinese officials to close a number of nearby factories for immediate safety inspection. The temporarily shuttered factories include a Foxconn plant, the result of which may be a delay in the expected mid-October release of the new iPhone 6 from Apple. The explosion was believed to be the result of excess dust in the air amidst generally unsafe labor conditions. The factory is believed to be a supplier of polished wheel hubs to GM as well as Chinese automakers. Poor demand signals from Chinese OEMs are said to put great pressure on Chinese parts suppliers to keep up with purchase orders, which trumps safety. Our take: the uproar from this seems less than the apparel factory fire in Pakistan the killed 112.
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