The supply chain for cordovan leather and shoe prices and availability impact

An article in the Wall Street Journal on May 24, 2014 (http://online.wsj.com/news/articles/SB10001424052702303468704579572141307216318?mg=reno64-wsj) titled “Cordovan Shoes for Men Play Even Harder to get”, describes the over $2400 price points and six month wait times for cordovan leather shoes. The leather is obtained from the muscle near the rump of a horse, with availability tied to horse meat consumption. But lower consumption of horse meat, larger alleged volume purchases of entire horse hides by some traders, six month tanning time for cordovan leather, all are claimed to reduce availability of cordovan leather. Given the customer demand for cordovan leather shoes, which claim to retain their sheen over time, why does distributor inventory not solve the availability problem ? Is this a temporary bullwhip effect, where reduced horse meat consumption and higher retail prices will create a new equilibrium where availability issues are resolved ? What are opportunities for other supply chain entities to mitigate the supply issues ?

Advertisements

About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s