QUESTIONS FOR CLASS DISCUSSION OMIS 440 Spring 16 Jan 21-test #1. Tuesday, January 19, 2016 “Historic lows: Tumbling oil prices taking toll on energy jobs, production in Louisiana” The Advocate (Baton Rouge), Richard Thompson, Dec 19, 2015. Topic: The Economic Environment in Louisiana NIA (Not in Article): Why is oil so cheap? 1. What is the price of oil today? 2. What is happening to jobs in the oil and gas sector? a. Which jobs? b. Which states? c. How many jobs have been lost in oil? d. What % of total is this? e. Chevron layoffs in the gulf region? f. Shell globally? 3. How does this impact the rest of the economies in these states? a. State government? b. Local government? What did Franklin, La do? 4. Who is Loren Scott? (mentioned In two of our articles). a. What did he say? When oil drops $1 > State Tax Revenue “Oil Pain Starts to Spread,” Paul Davidson, USA Today, Thursday, January 14, 2015 Topic: The Economic Environment Nationally 1. What has happened to US GDP Estimates for 2016 due to oil prices? 2. How is United Airlines impacted? a. Why? b. How is KB Homes in Houston impacted? 3. How many jobs in oil and gas lost In the past 12 months according to Continental Resources? 4. When one oil job is lost, what is the Impact the broader job market? 5. Law firm? 6. Steel sales? “Global Eyes Are Watching Our Very Rural Parish: Cheniere close to exporting LNG from Cameron Parish,” The Advocate, January 17, 2015. Topic: Economic Development Where is Cameron Parish? 1. What is the price of natural gas today? a. Why is it cheap? b. Who cares about this? c. How many years since its been this cheap? 2. What is LNG? 3. NAI: Why can’t US firms export oil or gas? a. What is the issue with export energy?.....who is against it? 4. Several have permission to export it, and What are they doing? 5. Who will be the first in the US? a. Where is their plant? b. How much did they invest? c. What did this represent historically? 6. Where will they export it to? 7. What is the Asian price and what is the spread? Thursday, January 21 ISM Baton Rouge Meeting Tues 6:30 pm At Cayote Blues on Acadian Thruway. Owens Minor….still processing. Anyone apply for PoolCorp Internship? What oil today? Porche from Houston…. “Wal-Mart Ratchets Up Pressure on Suppliers to Cut Prices,” Wall Street Journal, March 31, 2015. Topic: Supplier Relations/Supplier Goodwill 1. NIA: What is Supplier Goodwill? 2. What did Walmart ask its suppliers To do last march? a. What specific budgets got cut? 3. What has happened to Walmart’s market share since the recession? a. Who has gained share? 4. How would expect vendors to feel About this? 5. What did Walmart do to get P&G To lower its prices?....what new product did the put into stores. 6. What is Walmart famous for in terms Of negotiating with vendors? “Wal-Mart's Suppliers Are Finally Fighting Back,” Bloomberg Business Week, Sept 10, 2015. Topic: Supplier Relationships, Supplier Goodwill 1. What is “supplier goodwill?” 2. What did Wal-mart ask suppliers to do in March? 3. Did Walmart discuss new policies with each vendor to announce new terms? How did Walmart do this? a. Did this leave any room for negotiation? 4. What do the new terms include? 5. How have 2 large suppliers responded? a. Why won’t they mention their names? 6. What fear might a vendor have of not Accepting the terms? 7. What % of revenue from companies Like Kellogg’s come from Walmart? 8. How did the article make you feel about Walmart? 9. What would you say is the “goodwill Of suppliers to Walmart?” “Wal-Mart Retreats as Retail's Woes Deepen, “Wall Street Journal, Eastern edition [New York, N.Y] 16 Jan 2016: A.1. Topic: Retailing 1. What is Walmart doing to address Is profitability issue? a. How many? b. Which ones? c. How many US layoffs? 2. How was the Holiday season for US retailers? a. Online growth? 3. How many new stores are they opening this year? 4. In what areas is Walmart investing? 5. Besides the internet, what other Type of retail outlet has hurt them? 6. How many store are they closing Globally? Tuesday, January 26 FreshDirect Updates Delivery Service --Online grocer aims to help New Yorkers be 'a hero in the kitchen' Wall Street Journal, Eastern edition [New York, N.Y] 13 Jan 2016: A.18. Topic: Competition in the Fresh Food/Grocery Supply Chain NIA: Blue Apron (more preparation) NIA: When did Grocery Store Delivery start. 1. What does Fresh Direct do? a. What is their new service (how has it changed?) b. What is the price of the fast service? 2. How much business did online Groceries do last year? a. What are sales projections for this market for the year 2020? 3. How is competition for this service? a. What is Amazon Fresh b. What does Instacart do? c. How many markets is instacart in? 4. Will this business grow to other cities? “Apples Suppliers Issue Sales Warnings,” Dou, Eva. Wall Street Journal, Eastern edition [New York, N.Y] 15 Jan 2016: B.1 Topic: Supplier Media Automomy 1. Where is Tawain? a. What is its history? b. How developed is it compared to mainland China? 2. Who is Taiwan Semiconductor? 3. What information did they release Last week? a. How much will sales be down? b. What does this mean for iPhones? 4. Can suppliers release information to The media which has implications about the sales of a customer such as Apple? 5. What happened to Apple’s stock when The WSJ reported that Apple cut orders to suppliers? 6. What did Apple CEO Tim Cook say about business outlook extrapalations From the supply chain? 7. Can a buyer like Apple prevent a supplier from making sales predictions Of Apples products? Thursday, January 26 “The U.S. Digs Itself Into a Hole on Vital Minerals,” Murkowski, Lisa. Wall Street Journal, Eastern edition [New York, N.Y] 04 Aug 2015: A.11. Topic: Regulatory Environment 1. Who is the author of this article? a. Why is it different from an article written by a journalist? 2. NIA: What is a strategic mineral? 3. What does she say our problem is With our policies regulatingthese materials? 4. For 19 0f these, where do they come From? a. For another 24, how much is imported? 5. What does she say about our policies? 6. What is a big problem for mining co.s With the current (old) regulations? 7. How does that impact investment into mining? 8. How long does it take in Canada or Australia? “GM Invests $500 Million in Lyft, Plans System for Self-Driving Cars,” By Douglas Macmillan, Wall Street Journal (WSJ), Jan. 4, 2016 1:21 p.m. ET Topic: Strategic Supply Partners or Insourcing? 1. What is an autonomous car? 2. What is Uber or Lyft (what is an On demand ride sharing platform).\ a. How do they work? b. Who has used them? c. Where is the US are they? https://www.u ber.com/cities https://www.lyft.com/cities 3. Why are these services competition For car sales? 4. What is the relationship between: UBER/Lyft and Automous Cars? (why is GM interested is the Lyft software and system). Tuesday, Feb 2 For Fed Ex and UPS, a Cheaper Route: The Post Office,” WSJ, Tuesday, August 5, 2014 Topic: US Postal Service Parcel Shipping/ Public- Private Supply Alliances NIA: In the 1980’s the postal service was made quasi-private, like the ports. Where does money come from to operate? 1. Who is using USPS parcel shipping more and more? a. Why? b. For what kind of shipping? 2. How much of Fed Ex ground? a. How much UPS Ground? 3. How does the Post Office feel about This growth in use? a. Why do they want it?...what has happened to first class mail? b. How much has the “select parcel “ business grown for the Post Office? 4. Why/how can the post office do local Deliveries of parcels cheaper than the FE and UPS? 5. How does it actually work in terms of The participants in the delivery system Or who gets what when, in the sequence? (for cross country deliveries) 6. Who is Amazon cutting out? a. How much does it cost Amazon to ship USPS? 7. What are the concerns about the charges of the postal service? 8. How is the Postal Service limited in Terms of borrowing money to upgrade? a. What upgrades do they need to be like industry? “Pot Producers Gobble Up Warehouses in Denver Area,” Whelan, Robbie; Page, Paul. Wall Street Journal, Eastern edition [New York, N.Y] 26 Aug 20 Topic: Supply Shortages http://www.wilsonwarehouse.com/html/ex plore.htm 1. What is the difference between a Distribution Center and a warehouse? 2. How do warehouses who rent space work? 3. What roles does Denver play in the regions industrial supply chain? 4. What has happened to the availability And price of space there? 5. How is the cannibus industry using the warehouse space? Value Chain Climbing- When A Supplier Becomes a Competitor, Materials Handling and Logistics Mgt., Topic: International Competition For US Companies NIA: Back ground on issue. 1. What is value chain climbing? 2. How does it happen? 3. Who is HTC of Tawain and what did they achieve? 4. What is a buyers response? 5. What did the authors recommend as A way of managing this? Thursday, February 4 Feb 18: Samantha Kelly, College Recruiter, Pool Corp SLU MBA Julianne Fields, Purchasing Mgr., SLU SCM Grad “Amazon Seeks to Ease Ties With UPS, “Stevens, Laura; Bensinger, Greg. Wall Street Journal, Eastern edition [New York, N.Y] 23 Dec 2015: A.1. Supplier Relationships/Switching/Make or Buy 1. Who is UPS’s biggest customer? a. How much did Amazon spend last year with USP? 2. What is Amazon not liking about UPS’s service? 3. What have they looked into/ and done? a. Air b. Ground 4. Among Amazon’s expenses, where does transportation stand? a. Costs change since 2005? 5. How has USP’s Cost per parcel changed? 6. What has been the history of their relationship? 7. What does it mean: “UPS has poached 40 of Amazon’s managers in the past year”? ” Truckers Haul Home Big Increases in Pay,” Whelan, Robbie; Baskin, Brian. Wall Street Journal, Eastern edition [New York, N.Y] 14 Oct 2015: B.1. Topic: Motor Carriers NIA: What is the “status” of a truck driver as a profession in our culture? Why? 1. What has happened to the demand for Trucking services in the past 5 years? 2. For truck drivers? 3. Is there a cyclical pattern to the shortage of drivers? 4. What has happened to long-haul pay over The past 2 years? a. US Wages at large for past 2 years. 5. How is this impacting carriers (trucking companies)? 6. What are companies doing to address the Issue? 7. How many truckers are there in the US? a. What is the size of the shortage in in truckers (in numbers) ? 8. What is meant by a “rolling closet? ” 9. What is turnover for long-haul trucking? 10. How will/does this situation impact the Rest of us? “Jones Act debate aimed at shipping crude oil on domestic vessels”, The Philadelphia Inquirer, March 1, 2015. Topic: Protectionism(The Regulatory Environment) 1. What is protectionism? 2. Do protectionist laws impact the supply chain? 3. What does the Jones Act require? 4. What is the impact of the Jones Act? a. How does it impact the cost or a ship? 5. Who is against it? 6. Who is for it? 7. Which powerful Senator is against it? 8. How does it impact Louisiana?