01/03 Logistics Lecture & Axel's Manufacturering Tour

Professor Jagadeesh lectured for an 1 1/2 strait on logistics. We were not allowed to ask questions. It was a long class period. Needless to say, the session turned into a great character builder---tolerance, patience, respect, ec cetera.

Prior to this lecture, our group has been reading Thomas Friedman's THE WORLD IS FLAT. In one of his discussions about supply-chain being the seventh flattener, Wal-Mart's progression towards successful tactics and strategies were the main focus. But in my opinion a majority of their success was attributed to our roadway system and infrastructure. So the question becomes how can Indian companies integrate and better their supply-chain strats when their roadways are a mess?! (Apparently, India's democratic policies are responsible for the slow infrastructure progression; whereas, in China roadway progression has been rapid due to the obvious high degree of governmental authority.) Maybe that sounds a bit harsh but after being in Mysore, learning about the culture, and traveling around the area I have become frustrated with the issues hindering and slowing their economic progression and advancement.
--
Afterward class, our group toured Automotive Axel's. A few of the MBA students thought that for being a heavy equipment manufacturer the plant was clean. Nonetheless, we noticed several workers not wearing their protective gear, acid fluid open, and some other OSHA violations.
One notable statistic raising all sorts of discussion within the group was Automotive Axel's cost to labor. Apparently, only 3 to 4 % of their cost stems from labor while the rest is from raw materials. In the US it is quite the opposite!