More stories from business and current affairs around the world that impact global supply chain management.

China – The People’s Currency

The peg that has been maintained between the Chinese currency, known as the Renmenbi (RMB) or “People’s Currency”, and the US Dollar has been the source of tension between the two countries in recent months. However, in latest developments, two new appointees to the People’s Bank of China monetary committee have hinted that China may relinquish the peg on its own initiative in the near future. This is expected to have the effect of allowing the RMB to appreciate gradually. This could be another indicator that China is adjusting its future strategy towards internal consumption and the efficient allocation of capital to balance the over-dependence of the economy on high volume, low margin exports. More at www.statfor.com  

USA – Supply Chain Intelligence

Today’s complex supply networks require continuous collaboration with upstream and downstream supply partners. A new report by the Aberdeen Group highlights the importance in best-in-class performance of integrated Business Intelligence (BI) capability embedded in supply chain processes that can provide immediate intelligence to process owners and managers. The capabilities provided by best-of-breed BI systems include internal and external scorecards, analytics and reports, supply chain modelling, data management services and role-based exception alerts. See the report here www.aberdeen.com   

USA – Tylenol Recall

McNeill Healthcare, a division of Johnson & Johnson has undertaken an extended recall of Tylenol, Motrin, Rolaids and other brands due to reports of a musty odour and consumer illness associated with some products. The problem has been put down to small traces of a chemical known as 2,4,6-tribromoanisole which is believed to have originated in chemicals used to treat wooden pallets sourced in the Dominican Republic and used to store packaging materials at the firms plant in Puerto Rico. This has led to a move away from chemically treated pallets to heat treated pallets for the transport and storage of both ingredients and packaging. The wood pallet industry in the US is sceptical however that the wood pallet is indeed the root cause of the contamination.  More here http://tinyurl.com/yecppz8

Persian Gulf – Layoffs at Agility

The Kuwait headquartered Agility is the Gulf Region’s largest logistics company and provides integrated logistics and supply chain services primarily in the Middle East, Africa and South Asia. The firm is undergoing a major staff restructuring programme which has seen 500 to 600 staff laid off according to the Arabic Al Qaba daily. A slowdown in large new contracts is cited as the cause. In latest developments the firm has had trading in its shares suspended on the Kuwait Stock Exchange for failing to report quarterly financial results in time according to Bloomberg’s Fiona MacDonald. More here http://tinyurl.com/y9bmlgn

USA – Stolen Medicines

US law enforcement officials say that criminal gangs who used to steal laptops and fragrances are now turning their attention to low-bulk, high-value prescription medicines such as painkillers, drugs for erectile dysfunction, anti-depressants and other medications. The trend has been signalled by the recent high-profile $75 million robbery of anti-depressants and other medications at an Eli Lilly & Co. warehouse in Connecticut believed to have been the biggest of its kind so far. $184 million in prescription drugs were stolen in the US in 2009. More here http://tinyurl.com/ydqf3pk

 Costa Rica – Sustainable Coffee

In the conflict between the interests of farmers and those of the ecosystems, supply chains and markets that support their livelihoods, examples of profitable and sustainable solutions are emerging according to a BBC report. Coffee is one of the top five traded global commodities and over 100 million people depend on it for their living. A number of projects in Costa Rica are developing new sustainable techniques to enhance farmers’ output while at the same time mitigating the effects of intensive agriculture. http://tinyurl.com/yajmsbc

 USA – “Inventory – it’s the Enemy” Jim Cramer

The host of CNBC’s Mad Money Jim Cramer has identified the enemy of economic recovery and its name is Inventory. Inventory needs to be financed and carrying excess inventory, particularly in an environment in which credit is scarce, tends to delay economic recovery. Consequently, working off excess inventory is a necessary step in bottoming out the decline and starting on the road to recovery. Jim Cramer explains in this entertaining clip http://tinyurl.com/yat83z2