This study points out that there are still many congestion issues, and they will be coming to a head in the Christmas shipping season, due to start soon.
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This study points out that there are still many congestion issues, and they will be coming to a head in the Christmas shipping season, due to start soon.
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The LA Times has a report on the large decrease of business for the Port of LA/Long Beach. the decrease was from 39% to 32% of all container imports, in a ten-year period. Now it’s true, it is 32% of a larger pie. But it is still a loss to the competition across the US.
It is interesting to note that the competition that is succeeding has focused on supply chain integration with inland transport and storage, rather than simply on fixing the port for large ships.
L.A., Long Beach ports losing to rivals amid struggle with giant ships – LA Times.
There are many examples of East Coast ports that have focused on supply chain integration rather than simply deepre harbors and on-port handling systems. The Port of Virginia (Norfolk), which can already receive big ships, has connected to the Heartland Corridor, which brings goods all the way to Ohio. Prince Rupert, Canada, with the help of the CN railroad, has built a corridor to Joliet IL just south of Chicago. We can see the same concern for off-port transit in Houston.
Our article, which you will hopefully be able to read in white paper pre-publication form soon, talks about some of the issues of supply chain integration at Chicago.
Posted in Shipping, Supply Chains
I had never heard the term Manufacturing 4.0. This McKinsey paper (from their blog) presents a good case for radical transformations in manufacturing.
Manufacturing’s next act | McKinsey & Company.
Some of these transformations are genuine business structure innovations, such as the software alliance that performs consulting for major companies. Some are not so new: auction marketplaces for outsourcing parts manufacture was tried in about 2000 by CommerceOne, and only became established in one or two indiutries (specialty chemicals and certain automotive and airplane parts). (The company failed.) Auction based purchasing and supply are only feasible when the suppliers have quite variable capacity they need to fill, and there is no differentiation among sources.
It also makes sense for production managers in any firm to become totally aware of the new technologies and processes, including those that are information based, that could impact their business. Firms will need to jump onto a technology fast when it reaches their industry, leaving no time for indecision.
Posted in Managerial Econ, Production Operations