George Stalk has come up with the notion of a two-speed supply chain, one which can respond quickly for developing countries growing fast, and one that can function well in the slow or no growth of developed nations. It is an intriguing idea.
But perhaps just as interesting is his take on congestion and the lack of infrastructure growth in the US. It’s an old story, perhaps getting its due now, and one that needs shouting out.
Posted in Logistics, Strategy, Supply Chains
McKinsey has a lot to say about infrastructure development. This article is only on in their blog series on rethinking infrastructure. I suggest not only this one (about credit risk) but the others shown below.
Managing supplier risk in the transportation and infrastructure industry | McKinsey & Company.
I think it is interesting that they value transportation infrastructure on its productivity improvements in transportation alone. I’ve been modeling transportation’s impact on other industry sectors, and I find that it’s one of the few ways of generating increased productivity in other sectors as well. In fact, you can map exactly which sectors will benefit from added value in transportation. That tells you where to look for gains, and estimate the economic leverage improved transportation gives.
Posted in Logistics, Supply Chains, Sustainability
Interesting work from MIT which shows that the name of the game is finding backhauls. Private fleets don’t pay in this case unless the distance is short enough that the value of a backhaul is a small part of the cost. Private fleets are not economical with empty backhaul miles.
How Trucking Rules in Brazil Are Driving Change | Supply Chain @ MIT.
Posted in Logistics, Supply Chains
Supply Chain Digest Port Technology International Marine Link
Supply Chain and Logistics 