Category Archives: Logistics

Severe Road Access Limits Following Tianjin Explosion

Risk to supply chains crops up from all kinds of sources. It appears that hazardous materials were being stored in the warehouse complex.  The port has been shut down because of problems with road access, as well as in the harbor.

3PLs Eye Alternatives Due To Severe Road Access Limits Following Tianjin Explosion – Supply Chain 24/7.

There’s no way to plan for this stuff.   However, you can be flexible and have more than one route planned. Or you can place inventory elsewhere on the route to allow you to survive for longer, until the facility gets going again.  So you have to think about risk in terms of alternate means at all times.

And how about supplier qualification?   Should firms look more closely at all the facilities their 3PL chooses to use?  Of course that would help, but it would also be hugely expensive.  And you can bet the 3PL is not doing it, or not doing it the way you would, perhaps.  I wonder if there will be an aftereffect of firms not wanting to go through this port because they feel the Chinese operators are not being policed closely enough for compliance with basic safety and operational rules.

Amazon envisions package pickups on public transit, using lockers on buses, trains and subways

Amazon is a real innovator in logistics.

Geekwire Logo

Amazon envisions package pickups on public transit, using lockers on buses, trains and subways – GeekWire.

Why CPG Companies Need a Strategic Approach to Transportation

Boston Consulting Group has come up with a serious effort to explain why consumer goods companies need to pay a lot of attention to transportation.  How much applies also to manufacturing companies? to wholesalers? to any company?

BCG Logobcg.perspectives – A Hard Road: Why CPG Companies Need a Strategic Approach to Transportation.

One of the tools suggested is on the fly network redesign.  Modern software allows us to simulate changes to the network and examine the effects.  We can also examine the issues that arise with a hypothetical problem or two.  with a plan we might be better prepared to move ahead. Underlying it is an attitude that change is good, and we’d better be prepared to implement changes.

There are also good suggestions for collaboration across the supply chain.  The ‘share groups’ are means of pooling resources among different companies to achieve synergy with transportation resources.  They must be artfully constructed, with some flexibility, and every party has to be conscious of what each other partner needs to get out of the sharing, both in dollar savings and other ways.  The transaction cost is the added effort to manage these relationships.  Some of the most fruitful ones might be with those competing for some resource– customers, carriers, warehouse space, etc.

Other suggestions include improving the operations along the way.  There’s always benefit in doing that.