Category Archives: Strategy

Re-Wiring Global Supply Chains

Is reshoring going on?  A study by Morris Cohen and a colleague.

Offshoring, reshoring, nearshoring – manufacturing and supply chains around the world are undergoing some seismic locational shifts, many of which the conventional wisdom did not see coming, and for reasons that may surprise you.

Source: The Re-Wiring of Global Supply Chains – Supply Chain 24/7

The Panama Canal Expansion: Is it Time Versus Cost?

Many continue to see an advantage for East coast ports due to the impending opening of the Panama Canal.  Regardless, the west coast ports need to continue their relentless drive for productivity and service to the end customer.  To know if they will succeed, see what measures they do take, and especially which ones actually improve service for the end customer, not just for ocean carriers and transport operators.

The Panama Canal expands in 2016, allowing for more and larger (post-Panamax) ships to make the passage from East Asia to the United States.

Source: The Panama Canal Expansion: Time Versus Cost Trade-Off – Supply Chain 24/7

Here’s the report:

CHRobinson_BCG_Panama_Canal

 

Rethinking pricing at container terminals

McKinsey has a new scheme for container pricing. They hope it will save the industry.  To be sure, segmented pricing is always good for incumbents, and port terminals often have a kind of monopoly, since once you’ve chosen a shipping carrier there are only certain ports and terminals it calls at.  But for customers (shippers of goods)? And will they really put up with it in the very competitive transport marketplace.  I think they have the bargaining power today.

McKinsey Logo

An innovative approach that creates incentives for efficiency could generate up to $3 billion in value for operators and their customers. A McKinsey & Company article.

Source: How to rethink pricing at container terminals | McKinsey & Company