Category Archives: Strategy

Free energy in Germany

Posted on November 17, 2015 by | Leave a comment

Can energy really be free?  The price dropped to zero for a while in Germany. Day-ahead power prices became negative in a 30 GW wind.

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Source: German day-ahead power prices drop 36% as 30 GW wind turns hours negative – Electric Power | Platts News Article & Story

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Posted in Production Operations, Strategy, Sustainability, Uncategorized

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Top 20 U.S. Ports: Competition heats up for discretionary cargo – Article from Logistics Management

Posted on November 15, 2015 by | 2 comments

Some analysis of changing patterns of freight movement to US ports.  There’s some evidence that west coast ports are losing ground.  But Oakland is up over 4M TEU according to my students, though LA/Long Beach have lost.

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At this time last year, West Coast port congestion was a speculative concern. Now that shippers have seen the worst case scenario unfold, many analysts feel that Gulf and East Coast ports are ready to pull in more vessel calls at peak season this year. Is a “battle royale” waiting for the bell?

Source: Top 20 U.S. Ports: Competition heats up for discretionary cargo – Article from Logistics Management

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Posted in Labor Economics, Logistics, Shipping, Strategy, Supply Chains

The nimble prosper in chemicals

Posted on November 14, 2015 by | Leave a comment

A nice article from McKinsey based on their consulting experience with the chemicals industry.  It seems chemicals need to be nimble the way drug makers are, by moving investment in projects around to match competitive advantage.  The ability to do this quickly and perform is a ticket to success.   It reminds me of the classic work on the cycle time of industries, also out of MIT.

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Crafting a strategic road map and responding rapidly to external shocks are critical for superior value creation in chemicals. A McKinsey & Company article.

Source: The nimble prosper: Dynamic resource allocation in chemicals | McKinsey & Company

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Posted in Strategy, Supply Chains

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