California Sustainable Freight Action Plan

California has released its Sustainable Freight Action Plan. It’s a great project, and as usual, the state is a leader, here making significant moves guiding improvement in the freight transportation triple bottom line.

screenshot-dot.ca.gov 2016-05-23 10-27-38

Source: California Sustainable Freight Action Plan  Read it online at the link. Here’s the actual plan:  pdf-icon-logo1  cfmp_appendix-complete

screenshot-metrans CITT logo 2016-05-23 10-59-49   Here’s a white paper from California State University Long Beach which was used in the deliberations.  PDF icon logoFreight Efficiency White Papers_Final Version

Gartner 2016 Supply Chain Top 25

It’s a stellar list, some old and some new.  The measures are based on Peer and Gartner opinions (50%), and Return on Assets (ROA), Inventory Turns, and three-year weighted Revenue growth (WRG3), which are 40%. There’s also a corporate responsibility measure, not a very discriminating one.

Again it is biased toward capital intensive firms, manufacturers and a very few distributors (Amazon, Schneider). Perhaps that’s how it should be, but the advances are coming faster elsewhere.  Notable absence: Caterpillar, which has graced the list in past years. Their revenue is down.  Interesting that 8 of the firms had negative 3 year WRG3.  Amazon topped the list with 20% WRG3.

Gartner, Inc. has released the findings from its annual Supply Chain Top 25, identifying supply chain leaders and highlighting their best practices.

Source: Gartner Announces Its Rankings of the 2016 Supply Chain Top 25 – Supply Chain 24/7

Here’s The Gartner Top 25 page. Most of the information can be reviewed free by registering with your email.

Truckers can be Self-Driving Freight Haulers

Retrofitting automobiles has always been a cost effective way to modify your vehicle.  This new firm (very well funded, however!) plans to make add-on self-driving kits for Class 8 trucks.   I think this is a very realistic thing to do, since semis have very long lifetimes in service.

Former employees of Google, Apple, Tesla, Cruise Automation, and others – 40 people in total – have formed a new San Francisco-based company called Otto with the goal of turning commercial trucks into self-driving freight haulers.

Source: Turning Truckers into Self-Driving Freight Haulers – Supply Chain 24/7

We have plenty of evidence of long truck lifetimes from the Clean Trucks program at the Ports of Los Angeles/ Long Beach.  Emissions retrofit kits were required since so many drayage truckers were driving vehicles earlier than 2007, and had no means of affording a later model one with a less polluting engine.  Failure to understand this gave rise to a prolonged dispute between the San Pedro Bay ports and truckers, leading to a Supreme Court case.  The fight was not over pollution control; everyone wanted that.  It was about whether the ports could compel drivers to be employees of large firms who would be more likely to afford the newer trucks.  Most drayage drivers in the US are independent owner-operators who own their own truck; they work on piece rates and are usually cheaper than the mostly unionized larger drayage firms.

It is a classic example of unintended consequences of regulations and attempts to comply with them.  It wasn’t the CARB (California Air Resources Board) rule on pollution that was the culprit.  It was the details of the port’s reaction.

Some other posts from the same source about self-driving vehicles (the first has a report download):

The question is no longer “if” but rather “when” autonomous vehicles will appear on our streets and highways and DHL is ready to take a front seat on this journey.

Source: Self-Driving Vehicles in Logistics – Supply Chain 24/7 Paper

The Nikola Motor Company has emerged from a state of being unknown to unveiling plans for the first-ever 2000 horsepower (HP) electric class 8 semi-truck, called the Nikola One (named after Nikola Tesla).

Source: Nikola Motor Company Wants To Be the Tesla of the ‘Big Rig’ Trucking Industry – Supply Chain 24/7