It’s interesting that Chicago is not mentioned. Perhaps Chicago has gone beyond the mere mid-country intermodal market to become a major global intermodal center.
As the supply chains get shorter, more intermodal hubs are springing up around the country. Here is a list of the top five intermodal markets that are set to service the interior of the country.
Source: Top 5 Mid-Country Intermodal Markets | Industrial content from National Real Estate Investor
Posted in Logistics, Supply Chains
Beware of using optimization without examining what happens if your assumptions change! Unintended consequences could arise. This article is based on a nice paper by some masters’ students at MIT.
Source: Optimizing a Distribution Network for Today and Tomorrow
The optimization program relies on the assumptions, which are input as data (for example, anticipated demand levels here). The optimization predicts what we call a discrete solution (for example, open this warehouse, close that one). But these changes, in practice, cannot be made easily. It’s costly to keep opening and shutting warehouses; how frequently do we want to do that? So the ‘jumpiness’ of the solutions as assumptions change plays a large role in our decision making, more, actually, than the predicted savings from the optimal solution.
Where the models excel, though is in allowing us to create many scenarios (sets of assumptions), and play them through the model, recording the results we get. Then the decision makers and analysts can examine the range of answers they get to extract a rationale for making their decisions. It’s an art as much as a science. And it’s a lot better than experimenting in real life by closing warehouses or opening them, with far less cost, anxiety, and risk.
That’s why simulations are useful. Out here in Santa Rosa we wouldn’t build a bridge without using a computer to simulate what would happen in various types of earthquakes. Why wouldn’t you do the same with your supply chain?
Posted in Logistics, Strategy, Supply Chains
PierPass announced that 10 of its member container terminals have agreed on a coordinated initiative to establish appointment systems for trucks. This is important news to reduce waits for drayage truckers. It’s one of the major causes of delays for cargo getting where it’s going.
Posted in Production Operations, Shipping, Supply Chains, Trucking
Supply Chain Digest Port Technology International Marine Link
Supply Chain and Logistics 