Wall Street Journal Articles

The main objective of the report is to learn about the current situation of the market with the implementation of the policies and procedures studied in our course. The studied shows that how the supply chain and purchasing policies of the companies effect the management performance and customers. The main section of the study is related to the different news picked from the Wall Street Journal published which is about the companies who are facing the issues regarding the supply chain management. The paper deals with the impact of these issues on management of the company, customers and competitors. At the end of report there is execution of these principles in future and concludes with the different news articles regarding current issues.

Overview of the news

The business climate in any industry requires some kind of the competition in the market which could improve the product’s quality in the competition with other organizations. As concern with the purchasing significant for the company is struggle to increase the number of the customer to increase the turnover of the business. Purchasing is made to comply with the requirement of the business to prepare the finished products. Supply chain management issues relates to the managing the sale of the company which requires the efforts of the management of the company so it could be compete to match the input and output. The report covers the area of the study which is concerned with the issues of different companies who had face the issue regarding purchasing and supply chain management. There is different news published in WSJ of different companies regarding supply chain management:

New LyondellBasell CFO Faced with slowdown in Demand for plastics, Chemical

This news article is related to the chapter 2 and 3 in which the discussion is about the purchasing policy and the procedures for the products, as the issue is collaborated with the objectives of purchasing process of the plastics and chemical which goes down due to poor performance of the purchasing policies and procedures. The LyondallBasell hires new CFO to deal with the issues so that the purchasing of the raw material to make finished goods could be making effective. LyondellBasell’s ratio of its net debt to earnings before interest and taxes was 1.9 times at the end of June, estimating it within the company’s target series of 1.5 to 2.5 times. According to David Begleiter, a managing director at Deutsche Bank Securities Inc. has a net debt to earnings before interest and tax ratio of less than 2 times is an alarm of a strong balance sheet in the industry. If the existing management follows the best policies to purchase the raw material there will be no higher prices which not leads to the slowdown in demand of plastics and chemicals (Trentmann, 2019)

Impact on manager, customers and competitors

The management of the company decides the purchasing policy of the raw material to produce the finish products which means that management has direct influence on the falling of demand. With the demand decrease the management will have to design new policies for the workforce.

The customers will shift their demand to alternative product which they found reasonable according to the price and use of them.

With the decrease in the demand will increase the demand of competitors as people will shift their demand to alternatives to find the best solution (Trentmann, 2019)

Bayer’s Roundup woes deepen as Germany bans key chemical

This news article related to the chapter 7, Supplier Evaluation and Selection which is about the evaluation of the suppliers which is most important function of the business. It provides the basis of the development of the supplier’s performance. When the supplier is dealing with quality of raw material that is being used in the production. The news article relates with restriction of the raw material used in the in the production of the pharmaceutical products. The case to ban the chemical as raw material in different products is being in process and the judiciary of Germany approved that from the end of 2023 there will be no chemical ingredient used in the production of edible products. The credit of this effort is with the Bayer AG which defends the lawsuit in the Berlin city where the ban on key ingredient was not acceptable.  The ban on the chemical usage directly impact the pharmaceutical industry as chemical is most likely to use as min ingredients in the product. The decision was made keeping in the mind the environmental considerations to save the environment and living things from the reaction of chemicals. To accomplish the requirement of the government the supplier of the raw material should be taken from good supplier. The evaluation of the supplier should have the qualities of product with zero defects; Delivery should base on the priority of the customer and should have the ability to create the stability in the production (Bender, 2019)

The management will have to focus on the purchasing of the raw material used in the products in replacement of the available ingredients.

Impacts on managers, customers and competitors

The banned on ingredients which used in the product effects the turnover of the company which makes the management to take steps about purchasing alternative raw material to make the product. The change in the mechanism of the products will create a doubt in the mind of customers and demand will decrease, with the change in demand competitors will increase the supply of the product to get the large portion of market.

Blackstone’s online-shopping play

Head of private firms of real estate purchase urban storage as retailer shipping due to the estimation of increase in demand. Blackstone Group is sure that there will be rise in the trend of online shopping in the global economy therefore they prefer to purchase from manufacturers and for this they need to purchase warehouses to store the products. This steps increase the business of real estate and firms start to purchase warehouses with cash and debts. This news article relates to the topic supplier management and development in which supplier create the world where supply is created by adopting new strategies (Gottfried, 2019)

Impact on managers, customers and competitors

The management of the company decides the purchase warehouse to store the product that there will be boom in online shopping in coming years which means that management has direct influence on the increasing demand of real estate business. With the demand increase the management will have to design new policies for the capturing the customers around the globe.

The customers will demand for the online product and start to rely on the online shopping by the quality of the product which they found reasonable according to the price and use of them.

With the decrease in the demand will increase the demand of competitors as people will shift their demand to alternatives to find the best solution.

Ethanol industry reels as trade dispute and policy changes cut demand

The ethanol industry facing the crisis of oversupply and low prices which create the trade disputes between supplier and buyer. Manufacturer of corn-based fuel additive shut down their plants to overcome the supply and save the cost, but they have to pay fixed cost of the plant because the companies wants to get back their ethanol business. This article relates to topic purchasing policy and procedures, in which supplier has to plan about the purchasing of raw material as if the raw material will be more and demand for the product is less which will create the situation of fall in the prices (Bunge & Maltais, 2019)

Impact on managers, customers and competitors

The disputes between buyer and seller will influence the management of the companies which relate to it. Due to the conflict between seller and buyers efficiency of the management will decrease.

The customer credibility will be reduced and due to the shortage of raw material supply of the finished goods to market will also reduce which will be favorable point for the competitors.

 L’Oreal looks to collaboration for more Agile manufacturing process

L’Oreal dealing with high quality product dealing in the cosmetics faces the difficulty in supply chain management. The company expects to make production more effective that customer will detain the taste and not to shift their demand on other brand. L’Oreal communicates with their customers to shift their demand on existing product as the issue is just in the lipsticks. The company is in struggle to create more Agile manufacturing process which could meet the requirements of the customers. This will also help to attain the target that the company has to increase 1 billion more customers in coming ten years.

The company wants to flourish with the emerging new industries and for this purpose they have to improve the supply chain management to get the objectives rapidly. L’Oreal produces many products which are appreciated by the people but the main point to concentrate is packaging and the quality of the product. The issue is magnified by the required to update the product every year so customer could get better to best (Schectman, 2019)

Impact on managers, customers, and competitors  

In the cosmetics industry, where products are continuously changing the demand as it may be fall or rise the forecasting of the management changes with time to time with respect to the product. As the management decides to change the manufacturing process so that customer could more rely on the product. The continuous improvement in the production impact on managers such as; Increase in efficiency of work, Rapid growth in work, Economical.

The change in the manufacturing will also impact on customers and competitors as with the change in manufacturing process as the customers will think to shift the demand if there is any deficiency in the new product. If the demand will increase the competitors will exist from the market and if the demand of the product decreases the competitors will gain the market.

Implications for executives in the future

The strategies of the supply chain management are applied in a way that the company will purchase the raw material according to the requirement of the demand. In case where the purchasing is more than the requirement there will excess of supply and prices will decrease and if there will be shortage of the finished goods, the demand will increase and prices will also increase. Both situations is not suitable for the business therefore decision should be made by the management according to the policies and procedures of supply chain management.

Conclusion of Wall Street

The report is based on the news articles of different companies which face the issues regarding the misbalanced in the supply chain management. Different issues put various impact on the stakeholders of the business. The report is based on business climate in any industry requires some kind of the competition in the market which could improve the product’s quality in the competition with other organizations. As concern with the purchasing significant for the company is struggle to increase the number of the customer to increase the turnover of the business. Purchasing is made to comply with the requirement of the business to prepare the finished products. Supply chain management issues relates to the managing the sale of the company which requires the efforts of the management of the company so it could be compete to match the input and output. The report covers the area of the study which is concerned with the issues of different companies who had face the issue regarding purchasing and supply chain management. There should be balanced portion of the purchasing and supply of the finished goods to keep the process of supply chain effective.

References of Wall Street

Bender, R. (2019). Bayer’s Roundup Woes Deepen as Germany Bans Key Chemical. Retrieved October 30, 2019, from https://www.wsj.com/articles/bayers-roundup-woes-deepen-as-germany-bans-key-chemical-11567610126

Bunge, J., & Maltais, K. (2019). Ethanol Industry Reels as Trade Dispute and Policy Changes Cut Demand. Retrieved October 30, 2019, from https://www.wsj.com/articles/ethanol-industry-reels-as-trade-dispute-and-policy-changes-cut-demand-11567604261

Gottfried, M. (2019). Blackstone’s Online-Shopping Play: 800 Million Square Feet of Warehouses. Retrieved October 30, 2019, from https://www.wsj.com/articles/blackstones-online-shopping-play-800-million-square-feet-of-warehouses-11572082201

Schectman, J. (2019). L’Oreal Looks to Collaboration for More Agile Manufacturing Process. Retrieved October 30, 2019, from https://blogs.wsj.com/cio/2013/09/23/loreal-looks-to-collaboration-for-more-agile-manufacturing-process/

Trentmann, N. (2019). New LyondellBasell CFO Faced With Slowdown in Demand for Plastics, Chemicals. Retrieved October 30, 2019, from https://www.wsj.com/articles/new-lyondellbasell-cfo-faced-with-slowdown-in-demand-for-plastics-chemicals-11571086232