Supply Chain by the Numbers

-July 24, 2008


The Numbers Worth Knowing this Week in Supply Chain and Logistics


This Week: Outsourcing Customer Service Leads to Share Price Drop; VW Brings Factory Back to US; Longshoremen do Pretty Darn Well for Themselves; Time for Trade Parity Bill?



The number of cars Volkswagen announced it is planning to build in a new factory in Chattanooga, TN, to be ready for production in 2011, its first production units in the US since it closed a Pennsylvania plant in 1988.




The usual drop in a company’s share price after it outsources customer service, according to professors Jonathan Whitaker, M.S. Krishnan and Claes Fornell, the result of decreased customer satisfaction. The drop in customer satisfaction and then share price occurred regardless of whether the outsourcing was domestic or international.


The amount of annual pay for a senior member of the west coast port workers union currently, before a new contract is finalized. Negotiations between the union and the terminal operators are getting increasingly strident, with union efforts of late to reduce port throughput in LA/Long Beach.




The number of US manufacturing jobs that may be created if current regulations that add tariff costs to some US manufactured products that use some globally sourced components, while US free trade partners (e.g., Mexico, Canada) generally do not levy such tariffs and the finished goods manufactured there can then also be sold in the US duty free, according to a new report sponsored by the National Association of Foreign Trade Zones (NAFTZ). There is newly proposed legislation to end this anomaly.

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