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Novack/Gibson/Suzuki/Coyle Transportation: A Global Supply Chain
Perspective, 9th edition

Transportation: A Global Supply Chain Perspective,

9th Edition Robert A. Novack Brian Gibson John J.
Coyle
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Chapter 1: Global Supply Chains: The Role and Importance of Transportation

Learning Objectives:

1. Appreciate why efficient transportation systems are so critical to advance the

growth and development of regions and countries, and how they contribute to
social and political systems as well as national defense.

2. Discuss the importance of transportation to globalization and how it contributes to

the effective flow of commerce among close and distant regions.

3. Understand how global supply chains can contribute to the competitive position
of countries and allow them to penetrate global markets

4. Appreciate the dynamic nature of the global economy, which can impact and
change the competitive position of a region or country in a relatively short period
of time.

5. Explain the underlying economic basis for international exchange of goods and
services for the overall benefit of two or more countries or regions and gain some
perspective on the volume and overall importance of the more advanced countries
of the world

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Perspective, 9th edition

6. Discuss the size and age distribution of the population and the growth rate of the
major countries of the world and understand how the size of the population can
impact a country positively or negatively.

7. Understand the challenges and opportunities associated with the worldwide

growth in urbanization and why there has been such a major shift from rural to
urban areas.

8. Appreciate the importance and impact of land and resources to the economic
advancement and development of the various countries of the world and how they
can be exploited to their advantage.

9. Explain why technology has become such an important ingredient for the
economic progress of companies and countries in today’s global economy and
understand the need for and types of technology.

10. Discuss the overall characteristics and importance of globalization and supply
chains in the highly competitive world economies of the 21st century.

Chapter Overview:
In previous editions of this text, transportation was referred to as the “glue” that holds the
supply chain together, and an enabler of the underlying tactics and strategies that have
catapulted supply chain management to the level of acceptance that it now enjoys in
many organizations, both private and public. For example, transportation management
systems technology along with complimentary software are used by many organizations
to improve logistics and supply chain efficiency, effectiveness, and execution.
Transportation has moved from playing a reactive or supporting role to a role that is more
proactive and enabling. In other words, transportation has become much more strategic

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for organizations in determining their ability to compete in the growing and complex
global marketplace.

The global marketplace is also changing on a continuing basis, that is, it has become very
dynamic, and is buffeted by economic, political, social, and natural forces, which can
impact a country or region negatively or positively in the short or long run. For example,
the rising cost of fuel has impacted the rates charged by transportation service providers,
which in turn impact the distance that it is economically feasible to transport goods. The
cost of labor can change over time to the disadvantage some geographic areas and benefit
others. For example, the labor cost advantage that China enjoyed, along with low rates
for ocean carrier movement, had a positive impact on their ability to sell products on a
global basis. These advantages have diminished somewhat allowing other countries to
develop and improved competitive position because of market proximity, labor costs, or
other factors. These changes in turn impact global supply chains and their associated flow
of goods.

In this chapter, the initial focus will be upon developing an overview of the flow of
global commerce and trade overtime on a worldwide basis not only to understand the
importance and magnitude of global supply chain flows but also to gain some perspective
on important changes that have occurred. A variety of economic data will illustrate the
impact of the overall changes that have occurred. The next section will examine the
underlying rationale and economics of global flows of goods and services. In other
words, the “why” of global flows will be discussed to understand the advantages of
international trade to countries and consumers, in contrast to the “what” of the first
section of this chapter. The third section will provide additional insights into the factors
that can contribute to the economic advancement and development of countries. The final
section of the chapter will provide an overview of the supply chain concept including its
development, key characteristics, and major activities.

Global Supply Chain Flows

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Early in the 21st century, frequent reference was made to acronyms such as the BRIC
(Brazil, Russia, India, and China) or VISTA (Vietnam, Indonesia, South Africa, Turkey,
and Argentina) countries. The former were identified as the top emerging economies and
the latter are those developing at a fast pace. The development of the BRIC and VISTA
countries was seen as an indication of opportunities for “sourcing” of materials, products,
and services and the identification of potential markets for the more developed economies
such as the United States, European Union (EU), and Japan. Also, they were a sign of
more economic balance in the world and continued growth. Consequently, one noted
author1 declared that the world was really flat because of the developing economies.
Interestingly, there have been some economic shifts already with respect to these
countries, and the future importance of some of the VISTA countries is not clear. For
example, South Africa has been added to the first group, BRICS, by some economic
pundits. Nevertheless, all of this supports the observation made earlier about the dynamic
and competitive nature of world markets. An important caveat is the potential for
disruption caused by political instability, associated acts of terrorism, and military action,
which can cause a major disruption in global trade flows.

Traditionally, many countries imported raw materials that were scarce or not available in
the importing country, and they then produced finished products mostly for domestic
consumption. The raw materials were much lower in value than the finished products that
contributed to the imbalance of trade among developing and developed economies.
However, that situation has changed, countries that previously imported materials for
domestic production and consumption are exporting more finished products while so-
called underdeveloped countries are participating more in manufacturing, especially of
parts of a finished product. A very good example is the automobile industry. The typical
automobile of today has over 10,000 parts, which can be manufactured in many different
countries. Furthermore, the individual parts may be exported and put together into
subassemblies that are frequently shipped to an assembly plant in another location. So a
ford assembled in Detroit may have less U.S. made parts than a Toyota assembled in
Mexico. The efficiency of the global supply chains and especially the transportation
systems afford these more complex operations as compared to an earlier era when the

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Perspective, 9th edition

auto parts were produced in locations, which were more contiguous to the assembly
plants. This is also an excellent example of companies using logistics systems analysis to
evaluate the trade-offs among production costs, transportation services, and inventory
carrying costs to arrive at the overall best location for efficiency and effectiveness.

As indicated earlier, the global supply chains of today allow production of products with
parts being produced in several countries before the final finished product is assembled.
A major contributing factor to the global supply chains and the economics of production
is the efficiency and effectiveness of global transportation and associated services. The
improved global supply chains with faster transit times and lower rates help to promote
global trade. Consumers received not only lower prices but also in many instances better
quality food and manufactured products. In the next section, we will examine the
economic basis and complimentary logic for global trade.

The Economic Basis and Logic of Improved Global Trade

Absolute and Comparative Advantage

As the European countries advanced economically in the 18th century, there was a
growing recognition of the value and potential of international trade. Adam Smith in his
1776 book, The Wealth of Nations,2 not only provided a rational basis for a market
economy based upon open or free competition, but he also advanced the so-called Theory
of Absolute Advantage that provided an economic basis for “free trade” among countries.
Essentially, he stated that if two regions or countries produced and consumed the same
two products, for example, eggs and butter, but had different costs of production, trade
could be beneficial. For example if Country A had an advantage with producing eggs (50
centers versus $1 per dozen) and Country B had the advantage with butter (75 cents
versus $1.25 per pound), Smith concluded that A should produce eggs and buy butter
from B, while B should produce butter and buy eggs from A. Both would benefit by
being able to buy more of each product at lower prices than if they each continued to
produce both products. This example is somewhat simplistic because it does not consider
transportation costs for delivery or other costs that could be incurred. If the additional

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costs were added to the production costs, the subsequent “landed cost” would have to be
lower than the importing country’s cost of production. In other words, in the example
earlier, the eggs produced in A would have to have a landed cost in B (50 cents plus
transportation costs) less than $1.00.

The Theory of Comparative Advantage was advanced about 40 years after the publication
of Smith’s Wealth of Nations by several economists.3 they maintained that even if two
countries produced and consumed the same two products and one country could produce
both products at a lower cost (absolute advantage in both products) than the other
country, it could possibly be beneficial for both countries to specialize and trade. It would
require the country with the advantages to specialize in the product that it had the greatest
comparative advantage over the other country. For example, if Country A could produce
butter for 75 cents less than Country B and Country B could produce eggs for 25 cents
more than Country A, A should produce eggs. Again, transportation cost and other costs
would have to be considered to develop a landed cost.

In today’s more complex, global economy, there are more variables than the traditional
factors of production (land, labor, capital and entrepreneurship) that can give advantages
to countries and provide a basis for global trade flows. Some of these factors help to
explain the development of the so-called BRIC and VISTA countries that were
previously discussed. For example, two of the BRIC countries, India and China, have
developed and prospered during the last 20 years because of factors such as improved
global transportation, faster communication with lower costs, population growth, and
technology advancement. China, for example, has taken advantage of their low labor
costs, including skilled workers, ample raw materials, and capital to invest in production
facilities. India’s expanding population and growth in technology expertise contributed to
their economic advancement. In a later section of this chapter, China and India’s
advancing economies and leadership positions in the world economy will be discussed in
more detail.

Contributing Factors for Global Flows and Growth

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Important factors that are frequently cited for greater economic development may include
population growth and age distribution, urbanization, land and resources, economic
integration, knowledge dissemination, labor mobility, financial flows, and investment in
infrastructure by public and/or private agencies to promote improved transportation,
faster communication systems, improved financial services, and increased flow of goods
and services. These same factors also become the driving forces for overall globalization.
At this juncture, it would be worthwhile to examine some of these factors in terms of the
global economic growth and development of selected countries.5

While the total population of a country is an indicator of economic growth potential in

terms of workforce and consumers, it has some limits. We need additional information
about the population to draw meaningful conclusions such as age distribution and
education levels. If we examine population age distribution on a macro level, the young-
age balance is shifting throughout the world. In the more developed regions in 2005, the
proportion of older people (over age 65) is almost the same as children (under age 15),
15.3 percent versus 16.9 percent, but by 2050, the numbers are predicted to be 29 percent
versus 15.4 percent, respectively. Europe will have the greatest disparity followed by
North America. The longer life spans in developed countries are exacerbating the young-
age disparity ratio and have important implications for the labor force in various
countries and the needs of consumers for food, housing, and medical care.

The private sector and the public sector will be challenged by these changes in terms of
the size of the workforce, medical care, and even retirement benefits, but some
opportunities are likely for certain types of business including heath care, housing,
transportation, food products, and so on. Much depends upon immigration policies,
technology, retirement ages, and educational opportunities. Net, there could be benefits
but challenges also will persist. An interesting opportunity could occur with more mobile
migration among countries. The European countries with their “graying” populations
could probably benefit with a migration of younger individuals from less developed
countries not only to help care for the older citizens but also to provide a younger
workforce for the developed economies. Even in the United States this could be a

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possible benefit. Table 1-6 compares selected age groups in the United States for 2000
and 2010, and an interesting group is the 25-44 age bracket, showing that in 2010 there
was a decline of almost 3 million people in this group compared to 2000.

Urbanization
There has been a noticeable demographic shift in a number of countries with the
migration from rural to urban areas. In 2000, 47 percent of the world’s population lived
in urban areas. By 2030, it is estimated that the number will increase to 60 percent, and
the change will be most rapid in underdeveloped counties. This will cause additional
challenges for those countries to provide the housing, infrastructure, health care, and
security necessary for effective and prosperous expansion. The rural areas will also face
challenges with smaller and likely older populations. There will be opportunities for
business to help alleviate the burdens for the public sector and develop new business
opportunities for domestic and global economic expansion. The challenges will be
daunting in some cases. A relatively new term is the megacity (more than 10 million
people). It has been estimated that Asia will have 18 megacities, the United States will
have five, but there will be nom in Europe. This will be an interesting demographic
change with important implications for global trade. The megacities in some countries
especially Africa will be faced with inadequate infrastructure, especially transportation
and utilities, to support the population growth.

Land and Resources

The availability of land and critical resources such as energy, food, and water are of
paramount importance for economic viability and future development. Technology will
play a critical role in mitigating the scarcity of key resources from desalinization of ocean
water, to fracking for increased oil and gas production, to biotechnology for improving
crop yield and food production. Fracking for oil and gas production has already changed
the global dynamics for energy with the United States likely to become a net exporter and
the changes in transportation requirements, which will be discussed in later chapters. All
three are keys to stable economic growth and development but the geographic disparity
among areas of the world could be daunting and lead to political conflicts. The public and

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Perspective, 9th edition

private sectors can both be instrumental in alleviating the challenges and potential crises.
Our success in this area will be of immeasurable importance for peace and prosperity.
Transportation can play and important role in resolving the disparity by moving these
resources efficiently and effectively among regions and countries, but governments and
businesses have to provide the stable and economic basis for this to happen. The
expansion of oil and gas pipelines in recent years and improvements in rail tank cars and
water vessels are based upon such growth. Technology has two important dimensions. It
can be viewed as an internal change agent that can enhance the efficiency and
effectiveness of an organization and its ability to compete in the global marketplace.
However, technology can also be viewed as an external driver of change similar to
globalization. In many organizations, the rapid development of new technology by
technology companies whether it was hardware or software changed in “rules of
engagement” and enabled new forms of competition or new business models. The new
technology and new companies changed the nature of the competition, which meant that
existing companies had to change or perish. There are many examples of established
organizations that were blindsided by the technology. The internet alone was the biggest
‘culprit’ or agent of change because it made information available in real time to large
segments of the population via their personal computers, telephones, or other devices.

The development and sharing of so much information is a major force for changing
business models and for the obsolescence of some business. Travel agents, for example,
became passé. Amazon without stores can compete with Walmart’s store network, as can
Zappos with more traditional shoe sales organizations. Technology and transportation
services have been major factors supporting these changes. For example, companies have
been able to outsource selected internal functions like customer service centers or
personnel service. One of the most significant impacts has probably been more efficient
and effective supply chains and related services such as high-tech warehousing and
overnight delivery via Federal Express or UPS. From the specially designed supply
Chains of Amazon and Zappos to the realigned supply chains of companies like Macy’s
or Kimberly Clark, supply chains have become a critical ingredient for profitability and
customer service.

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Novack/Gibson/Suzuki/Coyle Transportation: A Global Supply Chain
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While information technology has been and will continue to be an important dynamic for
external and internal changes and economic growth, there are additional dynamics noted
in the in the text that also will be important for future growth and development. Among
the more important of these technologies are industrial robotics, additive manufacturing
or so called, 3D printing and digitization and advanced computational methods to model
and changes the manufacturing and distribution systems of many companies.

Globalization
Globalization has become a very frequently used term or concept not only in business
related conversations but also in more casual settings. Individuals probably have many
interpretations and use the word differently in different settings. However, in this
particular context, globalization can be used synonymously with economic integration
and development across country and regional borders. The integration will increase the
flow of goods and services globally based upon the logic of comparative advantage
discussed previously. Also the efforts to eliminate and/or reduce tariff and non-tariff
barriers will promote greater interregional flow. However, military and terroristic
interruption poses a real threat to increased global economic progress.

The global interdependence can be good or bad news. On the good side, the lower prices,
wider availability of goods and services, land and resource development, and new
employment opportunities have benefited many countries and regions of the world, both
developed and developing areas. However, the benefits and advantages have not been
equal for all; that is, some have benefited more than others, but on a macro level, and one
could argue that the wins have outnumbered the losses. On the negative side, the
interdependence can lead to global recessions as was the case in 2009 with serious
repercussions felt throughout the world. The economic recovery has been very painful
and has required government intervention. There are still lingering economic problems
from this recession in some areas of the world. However, there have been strong
recoveries in other regions such as North America and some countries in Europe.

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Novack/Gibson/Suzuki/Coyle Transportation: A Global Supply Chain
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On a micro level, the global interdependence has increased the level of complexity and
competition with shorter product life cycles, new forms of competition, and new business
models. Outsourcing, offshoring, and insourcing have become part of the lexicon of
businesses. The information technology previously discussed has allowed supply chains
to be reexamined and redesigned for more efficiency and effectiveness and even better
execution. The fast or even real-time information flows globally have even allowed
companies to connect in sharing information and to collaborate much more expeditiously
than in the past. This has placed a premium on flexibility of planning and operations to
respond and adjust to changes in the competitive environment. Also, visibility of
inventory and other assets has become an important dimension for efficiency and
effectiveness.
Supply Chain Concept
References to supply chain management can be traced to the 1980s, but it was not until
the 1990s that supply chains captured the attention of senior level management in many
organizations. They began to recognize the potential of effective supply chain
management to improve global competitiveness and to increase market share with
consequent improvement in share-holder value.

Supply chain management came into vogue during the 1990s and continues to be a
focal point for making organizations more competitive in the global marketplace. Supply
chain management can be viewed as a pipeline or a conduit for the efficient and effective
flow of products and materials, services, information, and financials (usually cash) from
the supplier’s supplier through the various intermediate organizations out to the
customer’s customer (see Figure 1-7). In essence, it is a system of connected networks
between the original vendor and the ultimate final consumer. The extended enterprise or
boundary spanning perspective of supply chain management represents a logical
extension of the logistics concept, providing an opportunity to view the total system of
interrelated companies and their impact on the final product in the marketplace in terms
of its price-value relationship.

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Novack/Gibson/Suzuki/Coyle Transportation: A Global Supply Chain
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Figure 1-7 also illustrates the basic characteristics of a supply chain that are important to
supply chain related decisions. The definition, which is part of the illustration, indicates
several important points. A supply chain is an extended enterprise that crosses the
boundaries of the individual firms to span their related activities involved in the supply
chain. This extended enterprise should attempt to execute a coordinated or integrated
two-way flow of goods, information, and financials (especially cash). The three flows
illustrated in the figure are very important to the competitive success of the organizations.
Integration across the boundaries of the several organizations in the essence means that
the supply chain needs to function like one organization in satisfying the ultimate
customer by delivering an appropriate price-value relationship for products in the
marketplace.

One of the realizable outcomes of supply chain management is the sharing of sales
information on a more real-time basis to reduce uncertainty, which reduces the need for
safety stock. In this sense, the supply chain is compressed through timely information
flows from the marketplace. In other words, inventory can be reduced in the supply chain
by timely, accurate information about demand. If point of sale (POS) data were available
from the retail level on a real-time basis, it would help to mitigate the bull whip effect
associated with supply chain inventories and would reduce costs. It should also be noted
that transportation plays an important role in the level of supply chain inventory. One of
the components of transportation service as discussed was reliability of delivery. It was
noted that if service was unreliable, companies carried more inventory or safety stock,
which would be true along the whole supply chain. It was also noted that transit time had
an effect upon inventory, namely, longer transit times could contribute to higher
inventory levels. Longer transit times combined with unreliable service exacerbate the
need for safety stock in the supply chain. Consequently, the transportation is an important
cog in the whole supply chain in terms of efficiency and effectiveness.

The third and final flow indicated is financials, or usually and more specifically, cash.
Traditionally, financial flows have been viewed as one-directional-backward in the
supply chain. In other words, this flow is payment for goods, services, and orders

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received. A major impact of supply chain compression and faster cycle times has been
faster cash flow. Customers receive orders faster, they are billed sooner, and companies
can collect sooner. The faster cash-to-cash or order-to-cash cycle has been very important
for companies because it reduces the amount of working capital they need in their
system. If cash flow is slow, a company needs more working capital to finance the
processes until they collect from the customers. There are some companies that have
negative working capital or what financial organizations refer to as “free” cash flow.
They collect form their customers before they have to pay their vendors or suppliers. In
such companies as Dell and Hewlett Packard, the period between collection and payment
may be as much as 30 or more days. This cash can be used for financial investment
purposes or another source of funding for product development or other improvements.
Cash flow measures have become an important metric of the financial community to
gauge the viability of companies. Slower cash flows increase the need for working capital
and may require loans from time to time to pay suppliers, service providers, or even
employees. Frequently, one will see in the financial analysis of an organization references
to their cash flow situation. Supply chain management provides organizations with an
opportunity to improve customer service and cash flow, and transportation service is an
important part of this equation.

Study Questions

1. Transportation has sometimes been described as the glues that holds global supply
chains together. What is the meaning of this statement and do you agree? Why or why
not?

Most students will probably agree that transportation is the “glue” of the supply chain
since it connects the individual parts of the chain with product movement, but they should
point out that information is also important to holding the supply chain together. The
essence of the statement is that supply chains are extended enterprises with many “parts”
and the final outcome is a product delivered on time to a particular location without
damage or delay. Transportation and information flows are key to this outcome. They

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Novack/Gibson/Suzuki/Coyle Transportation: A Global Supply Chain
Perspective, 9th edition

should also point out that transportation as well as information can provide a strategic
advantage and, therefore, should be an important part of the planning process. Overall
supply chains play an important role helping organizations to gain strategic advantage in
the global economy of the 21st century.

2. During the last 20 to 30 years, there have been a number of countries whose economies
have experienced important economic expansion and development. One group of
countries has been labeled the BRIC countries and the other the VISTA countries.
Identify each of the nine countries and provide some insights about their economies and
economic importance.

BRIC countries are Brazil, Russia, India and China. The VISTA countries are Viet Nam,
Indonesia, South Africa, Turkey and Argentina. The BRIC group is generally considered
to be the most advanced economically. China is clearly the most important as indicated
by the grade flow data in the chapter. They are important for manufactured productions
well as resources. India has advanced rapidly through their educated and industrious
citizens and technology, and organizations in India have become an important part of
many supply chains. Russia and Brazil both have vast resources that can be the basis for
funds but are also developing more advanced manufacturing sectors. They are both
challenged by their geography and size as well as political factors. The VISTA countries
have established themselves as countries for sourcing some basic manufacturing because
of low cost labor. They also provide agriculture products and other resources for
exporting. The key dimension for both the BRIC and VISTA countries is that the
establishment of global supply chains has allowed them to be a part or play a role in the
global economies.
There is abundant information about the BRIC and VISTA countries on the
internet if you want to make this question a special assignment or extra credit.

3. The theories of absolute and comparative advantage have been offered as an economic
rationale for trade between and among regions and countries. Compare and contrast the

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Novack/Gibson/Suzuki/Coyle Transportation: A Global Supply Chain
Perspective, 9th edition

two concepts. Which of the two do you think is more important for explaining the growth
in global trade during the last 25 years? Why”

Both theories are offered as a rationale for expanded trade between and among regions
and countries to promote growth and development. Absolute advantage is the oldest
concept and easiest to explain since in the two country scenario each country has an
advantage in the production of one or more products. Comparative advantage postulates
that even if one country has the advantage in both products, trade can still be
advantageous. Comparative advantage has probably been the most important for overall
development in our complex global economy since countries can produce so many
products that are competitive with other countries to some degree. However, absolute
advantage is still important to rationalize some major trade flows especially for basic
materials and agricultural products. There are also seasonal and weather related factors
that provide advantages at particular times of the year for different regions

4. The overall growth of global trade had more than doubled since 2000. Why? What has
been the most important factor prompting this growth. Is this rate of growth likely to
continue in the future? Why or why not?

There are a number of reasons for this growth. Some of it can be explained by population
growth and improved education systems in developing countries. Capital for development
has become more widely available from private and public sources. There is also more
acceptance of products manufactured in other countries. But probably the most important
reasons are trade agreements and lower tariffs on imported products that have been
greatly expanded because of the recognition of how important global trade can be to
economic development and the health and welfare of the citizens of the country. One of
the biggest challenges to the progress that has been made in promoting global trade is
the political instability and terrorism that has developed some areas of the world such as
Africa and parts of the Middle East. These factors undermine these benefits that can
accrue from the growth in global trade. One can argue that the growth will continue

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because of the economic and political forces at work in the global economy, but there
will be ups and downs or bumps along the road because of human error and greed.

5. The size of a country’s population and the associated age distribution can be causal
factors for economic growth. Why is the size of the population important to economic
development? Can size be a disadvantage? Why is age distribution important?

The sheer size of the population can be very important because labor is one of the prime
factors for economic growth, and population numbers indicate the availability of labor.
The size of the population can also indicate the market size or potential for buying
products. Size can be a disadvantage if the economy cannot provide opportunities for
employment. Large size can also challenge the education system and may require
government resources to sustain the basic needs of the citizenry. Age distribution affects
the size of the labor pool of available employees. Also, older populations require more
medical assistance and other services which can drain the resources of individuals
and/or government agencies. The population data and commentary in the Chapter
provide the basis for some interesting discussion. Again, this is a topic that has abundant
information available on the internet, and could be the basis of a special assignment. The
differences in population size, growth rates, age distribution and education levels are all
factors to consider for economic development.

6. Energy, food, and water are frequently cited resources that are critical for economic
development. Explain the importance of each one to economic development. What
disparities exist among countries with respect to these three resources? How can these
challenges be resolved?

Energy is a primary ingredient to support agriculture and manufacturing as well as

transportation. Consequently, if much of the needed energy has to be imported, it will
increase the cost of the producing products and may put a country at a disadvantage in
producing and/or exporting products. Food is almost self-explanatory since it is needed

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Novack/Gibson/Suzuki/Coyle Transportation: A Global Supply Chain
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to sustain the citizenry of the country. When there is a shortage of food, a country will be
challenged unless they can offset this shortage with advantages in some other area such
as mineral resources and/or labor productivity. Water is a critical resource for
individuals, agriculture and manufacturing and other businesses and organizations. The
absence of adequate water supply is one the most debilitating conditions for an economy.
There are major differences around the globe in terms of the availability and quantity of
these resources. Technology may be able to solve some degree of this problem, but not all
of it

7. Technology can impact economic development on both a macro and a micro level.
What types of technology do we need to have such impacts on a macro basis? On a micro
basis?

On a macro basis technology is needed to increase the productivity for agriculture and
manufacturing in many parts of the world. Improvements can be made also in the supply
chains especially in the transportation area. On a micro basis, technology can improve
the quality of life for many people through medical treatment, safety and aids for seniors
We have made significant progress with technology, but some individuals feel that we
have only ”scratched the surface of the potential” to improve economic development.
The supply chain has been the beneficiary of technology, especially information
technology, to improve efficiency effectiveness and execution. However, in the last
decade, the “hard side” of technology has been receiving more attention in
transportation, warehousing and manufacturing to improve efficiency and effectiveness.

8. Robotics has attracted more attention in recent years. Why? How are robots being used
in supply chains?

Robotics has indeed received more attention in a number of areas especially health care,
manufacturing and distribution. Some people see robotics as strictly replacement for
labor, but now robots are being viewed as complimentary to improve manufacturing and
distribution productivity and improve the health and welfare of the population. Robots

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Perspective, 9th edition

are being used in warehouses to put away item and for order picking, as well as for
loading and unloading transportation equipment. Robots have potential in other areas of
the supply chain especially transportation.

9. The economic integration associated with globalization can provide an opportunity for
more widely dispersed development. Why is this possible? What are the major stumbling
blocks to such integration?

Economic integration can release the power of comparative advantage and provide more
growth and development along with prosperity. The major stumbling blocks are “fear”
and “terror” which are associated with individuals and groups who will exercise their
ability to thwart trade flows for selfish or self-serving agendas. Collaboration among
organizations is a global supply chain can be a driving force for more efficiency and
effectiveness.

10. Supply chain management has enabled some companies to operate more efficiently
and compete more effectively on a global basis. What inherent characteristics of supply
chain management contribute to these outcomes?

Supply chains that are efficient and effective and well executed can indeed make
companies more competitive. The basis of this outcome is related to systems analysis and
trade-off analysis which provides an opportunity for organizations to do what they can
do best and depend on other organizations to provide the rest. The coordination and
collaboration that should be inherent in supply chains are important ingredients for
efficiency and effectiveness.

CASE 1-1 Clearfield Cheese Company: A Sequel

Small companies that produce milk based products have experienced growing
competitive pressure from large regional producers who sell to large chain stores and
wholesalers. As these chain stores have attracted more customers from nearby smaller

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Novack/Gibson/Suzuki/Coyle Transportation: A Global Supply Chain
Perspective, 9th edition

communities and rural areas with their prices and product variety, they have negatively
impacted the sales of small local stores who are often the most important customers for
small to mid-size food processors such as Clearfield Cheese Company. Clearfield Cheese
Company has successfully thwarted this type of competition to this point by the
aggressive management actions pointed out in the case. Their success has been in
recognizing the challenges and responding aggressively. Now, they appear to be at
another important cross road in their ongoing development, and they need to ‘stay out in
front” of the competitive challenges with decisive strategic action.

The current situation, as described in the case, presents a different but related type of
competitive threat—the dietary changes that are popular in the United States. These
changes are essentially a move to more “healthy” types of food which may not be milk-
based. The Clearfield Cheese Company has identified several possible competitive
strategies to protect themselves against a decline in sales and profits related to this dietary
trend: (1) Establish a new division or company to produce non-milk based dairy products
such as soy or almond milk; (2) expansion of the sales of existing products into Mexico
and Central America; (3) expand their current product line or items to sell in their current
market areas.

All three of these alternatives have advantages and disadvantages and a logical argument
could be made for any of the three suggestions by students. The lowest cost alternative in
terms of investment is probably #3 and it would also probably involve less risk for the
company since there would fewer unknowns and potential surprises. However, it
probably has the lowest potential for long run growth. #1 probably has the next lowest
risk of failure, but they could minimize their investment by developing facilities in their
current area and sharing facilities and labor to the extent possible. Their history and
experience in the area would provide advantages for development and growth while
minimizing investment and risk. This alternative has more growth potential over the
longer run than #3. #2 would probably have the greatest growth potential because of the
size and age of the populations in Mexico and Central America but the highest risk
because of the distance, language differences and trade policies and regulations.

They could endorse all three with a phased in approach over a 5 to 7 year period using the
sequence suggested above starting with #3 then #1 and finally #2. They could delay or
move ahead more aggressively with the sequenced alternative based up their success or
lack thereof.

CASE 1-2 KEMS LLP

The case provides an interesting opportunity for students to do research on the two
biggest “partners” of the United States in terms of imports and exports. The Chapter
provides relevant information about both countries in terms of imports, exports,
population size and distribution, etc. which will be a good start for addressing the case,
but there is a wealth of information available and accessible to them via the internet that
will provide data and information for an effective analysis to support their conclusions.
Expansion into either country or both will require investment and will have risk to

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Perspective, 9th edition

consider. They should probably explore the possibility of acquiring an established 3PL
company in one or both countries as they did in Europe. There is risk and investment
involved with this strategy, but if done carefully, there are many advantages. This
approach provides an established “footprint” with current and potential customers. If the
investment is too high to purchase existing 2PL companies, they can explore the
opportunity for this geographic expansion through their current customers which could be
a win-win for all. The proposal to expand into South America would have more risk,

The lower cost and lower risk alternative would be to expand on a commodity basis as
opposed to a geographic basis. There are similar products that could have potential such
as the inbound, cold chain for pharmaceutical companies.

A stronger case can probably be made for the second alternative in the short run with a
longer run strategy based upon geographical expansion.

20
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Exploring the Variety of Random
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 Story 1--Chapter VIII.
Fruit of Faith and Patience.

One very bitter day in March there was great commotion

among the black people of St. Louis. The snow was falling
thickly, the wind was blowing. Inclement as the whole
winter had been, this day seemed the worst of all; but it did
not deter the freed blacks from braving its hardships, from
hurrying in crowds from place to place, and above all from
repairing in vast crowds to their own churches. Every
coloured church in St. Louis was full of anxious blacks, but
they had not assembled for any purposes of worship.
Unless, indeed, we except that heart worship which takes in
the ever-present Christ, even when he comes hungry,
naked, and in the guise of a stranger. The black people of
St. Louis made beds in the church pews and kindled fires in
the basements.

Having made all preparations, they went, headed by their

preachers, to the quays; there to meet some six hundred
famished and shivering emigrants, who had come up the
river all the way from the States of the Mississippi Valley
and Louisiana.

In extreme poverty and in wretched plight whole families

had come, leaving the plantations where they were born,
and severing all those local ties for which the negro has so
strong an attachment. All of these poor people, including
the very young and the very aged, were bound for Kansas.

This was the beginning of a great exodus of the negroes

from the Southern to the Northern States.

The cause did not seem at first very manifest; but it must
be something unusual, something more than mere fancy,
which would induce women and children, old and young,
with common consent to leave their old homes and natural
climate, and face storms and unknown dangers in Northern
Kansas.
Mou-Setsé, with his eyes, ears, and heart ever open, had
heard something of the dissatisfaction of the negroes in the
South.

They were suffering, not, indeed, now from actual slavery,

but from wicked rulers who would give the coloured man no
justice. Outrages, murders, and wrongs of all descriptions
were driving these fugitives from their homes. They said
little of hope in the future; it was all of fear in the past.
They were not drawn by the attractions of Kansas; they
were driven by the terrors of Louisiana. Happen what
would, they all resolved to fly, never to return. Death rather
than return was their invariable resolution.

Mou-Setsé, as I have said, had heard of this exodus.

Profound secret as the negroes had kept it, yet it had
reached his ears. He consulted his black brothers and
sisters in St. Louis, and it was resolved that the strangers
should be well received—hence the preparations in the
churches, and hence the assemblage on the quays.

Mou-Setsé was one of the last to leave the church where he

had been most busy. Just as he was about to turn away to
help to fetch into warmth and shelter the famished
emigrants he turned round. Some voice seemed to sound in
his ears; some very strong impelling influence caused him
to pause. He entered one of the pews, sat down and buried
his head in his hands.

Something seemed to tell the black man that the desire of

his eyes was coming to him; that his life-work was bearing
at last its fruit. So sure was he of this that he forgot to pray.
He only said several times, “Tank de Lord; tank de Lord
berry much.”

Then he followed his companions to the quays. How often

had he gone there in vain! How often had he gazed at face
after face, looking and longing for the forms of those he
loved! They had never greeted him.

Now his step was elastic, his face bright.

Two hours after he had left the church he entered it again,

leading by the hand a very old man and a bowed and aged
woman.
“My fader and moder,” he explained very simply to the
bystanders. He put the old couple in the most comfortable
pew, and sat down by them. They both seemed half dead.
The woman lay nearly lifeless. Mou-Setsé took her limp and
withered hand and began to rub it softly.

“How do you know them?” asked some interested

bystanders who knew Mou-Setsé’s story.

“De ole woman hab de smile,” he said; “I neber forgot my

moder’s smile. She looked at me on de quay, and she
smiled, and my heart leaped, and I said, ‘Tank de Lord,
glory be to God.’ I tole ye de Lord would help me.”

Just then the man stretched himself, opened his eyes, fixed
them on Mou-Setsé, and began to mutter.

Mou-Setsé bent his head to listen.

Suddenly he sprang to his feet. “Oh praise the Lord!” he

exclaimed again. “I said as de Lord would help me. Listen to
de ole man, he is talking in de tongue of the Akus, in the
country of Yarriba. He was de brave warrior, my fader was.”

Yes, Mou-Setsé was right. The fruit of long patience was at

last yielding to him its precious store, and the old warrior of
the beautiful African valley had come back through nobody
knew what hardships, with his aged wife, to be nursed,
cherished, and cared for by a long-lost son.

As soon as they were sufficiently revived Mou-Setsé took

them to the comfortable home he had been so long getting
ready for them. Here they told him of their slavery, of the
terrors they had undergone, of the bitterness of knowing
nothing of his fate, of the lonely days when they had
belonged to different masters; then of their release from
slavery, and how, as free man and woman, they had met
again. But their hardships had been great, for though they
had so-called liberty, every privilege belonging to a white
man seemed to be denied them.

They resolved to fly with their brethren. Selling all they had,
they managed to scrape together enough money to pay for
their passage in the river steamer.

Penniless, famished, half dead, they arrived at St. Louis.

“It is a good land you hab come to,” said Mou-Setsé when
his mother had finished her narrative, “a land flowing wid
milk and honey. Yes, it is a good land; and I am like Joseph,
only better dan Joseph was, for I hab got back my fader
and moder too, praise de Lord.”

“I am Jacob,” said the old warrior slowly, “and you are,

indeed, my son Joseph. It is enough. Praise de Lord.”

“De Lord is berry good. I tole ye so,” exclaimed the aged

wife and mother.
 Story 2--Chapter I.
The Orphans’ Pilgrimage—A Story of Trust in God.

In one of the small towns in the north of Austria there once

lived a humble pair, as far as earthly goods and position go,
but who were rich in what was far better—love to God and
simple trust in His Fatherly care.

The woman was a Tyrolese, the daughter of an old harper,

who still resided in one of the small villages among the
mountains. As a motherless girl she had been his only
companion, and many a time her sweet pure voice would be
heard accompanying her father in the simple melodies of
her native land, as he wandered from place to place to earn
a livelihood.

The time came when the harper’s daughter left her hills for
a home in town, but was more than repaid by the tender
love of her husband, who, though he could earn but a
scanty subsistence, was good and kind to her. Their fare
was frugal, but, happy in each other’s affection, they were
content and thankful, and, contrasting their lot with that of
the Saviour, would say, “Can we, the servants, expect to
fare better than our Lord and Master?”

As years passed by, three little children were sent to them

by their Father in heaven, to whom they gave the names of
Toni, Hans, and Nanny; very precious gifts, and they
showed their gratitude by training them early in the right
way, teaching them from His word to know the good God, to
love and trust Him, to try to please Him, and to love their
neighbour as themselves. They were unselfish little
children, and would at any time share their scanty meals
with others in distress. “Little children, love one another,”
was a text often repeated, and also practised, by them.
The two boys were very fond of each other, and both were
united in love for the little sister whom they felt bound to
protect. Great was their delight when she first tottered
alone across the room, where they stood, one at each end,
with outstretched arms to receive her; and when her little
voice was heard crying for the first time “Father,” “Mother,”
they shouted for joy.

On the opposite side of the street lived an artist, who took

great pleasure in this little family, and painted a picture in
which he introduced the children, not intending it for sale,
but as a gift to their parents, in token of the esteem he felt
for them. A very pretty picture it was—little Nanny, lightly
draped, showing her fat dimpled shoulders and bare feet,
her golden hair floating in the wind, was in a meadow
chasing a butterfly; while her brothers stood by, as
guardian angels, with hands extended ready to catch her if
she stumbled. It might have fetched a high price, but the
man was not in needy circumstances, and would not sell it.

When Nanny was about four years old it happened that the
cholera—that fearful scourge which has from time to time
been so fatal in many parts—broke out in this town, and
both father and mother were smitten and lay ill with it at
the same time. I need not say how, in the midst of pain and
weakness, many an anxious thought was turned to the
future of their little ones; but, as faith had been strong in
the time of health and prosperity, it did not fail them in their
hour of need, and they trusted simply to the promise,
“Leave thy fatherless children; I will preserve them alive.”

In a very short time the children were left; orphans, and

(the eldest not being more than eight years old) quite
unable to do anything for their own support. What was to
be done? The neighbours were kind and good to them, but,
having families of their own, had enough to do without
adding to their cares. It was at length arranged that a letter
should be written to an uncle who lived in Vienna, and was
doing well as manager of a small theatrical company in that
town. Not a very good school, you will say, for these
children who had been trained so carefully.

No sooner did the man receive the sad news than he set off,
arriving just after the funeral was over. He lost no time in
selling his brother’s small possessions, and, pocketing the
money, started for his home, taking the little ones with him.
I should say that, at the special request of their friend the
artist, the picture was reserved and taken with them. This,
then, together with the large Bible from which their father
used to read to them morning and evening, and the box
containing their clothes, was all that they could call their
own.
Poor children! they had certainly found a home, but what a
contrast to that to which they had been accustomed! Sorely
did they miss the tender, watchful love which had
surrounded them all their lives, and the peace and calm
which dwelt in that household. Their uncle was a hard,
money-loving man, and determined to make the best for
himself out of this seeming act of kindness. Therefore,
instead of giving them a good education and fitting them to
make their way in the world respectably, he merely taught
them what would be profitable to himself in his own line,
viz, dancing and gymnastics. Their whole time was spent in
practising to appear in public on the stage, and many a
weary hour did they pass, being punished if they dared to
complain, and never by any chance being encouraged by a
word of approval.

Such a life as this soon began to tell upon little Nanny, who
had never been a strong child; but not the most earnest
entreaties from her brothers would induce the hard-hearted
man to allow her to exert herself less. It was a weary life for
them all, and many a time when wreaths and bouquets
were showered upon them by the applauding audience
would they retire and burst into tears for very fatigue and
sorrow.

Toni and Hans at last became seriously alarmed about their

little sister. She got gradually paler and thinner, and when,
one day, after dancing for some time, with flushed cheek
and shortened breath, she fell to the ground in a faint, they
could endure it no longer, but ran to their uncle, beseeching
him to have pity on her.

I am sorry to tell you, the poor boys were only answered by

blows, and making nothing of their grief, he walked
carelessly away, saying she would be better after her
dinner. This was too much for Hans; he jumped up from the
floor where he had been sitting, and stamping his foot, his
face glowing with anger, cried out, “I shall not allow her to
dance any more!” to which he, of course, received only a
scornful laugh in reply.

Nanny had by this time revived, and was sitting between

her brothers wiping away her tears.

“Oh! if father and mother knew of this,” said Hans, “I think

it would make them weep even in heaven; but perhaps then
they would send an angel to help us.”

“We do not know whether they can see us or not,” answered

Toni; “but we are sure the good God can. I have been
asking Him to put into our minds what we shall do for
Nanny. Sometimes I am afraid she will leave us like father
and mother did. And do you know I feel as solemn as little
Samuel must have done when God called him, for a thought
has come into my mind which I am sure must have been
put there by our Father in heaven.”

“And what is it?” asked Hans, in a whisper, folding his little

hands, as if inspired by the devotion of his brother.

“Why, that we must save our sister, and not let her die,”
answered Toni.

“That would be glorious; but how shall we manage it?”

“We must run away from this place with her and take her to
our grandfather, in the mountains.”

“But that is so far away, and we have no money: and then,

how should we know the way?” asked Hans anxiously.

“The little birds fly away in the winter to Africa—God shows

them the way, and gives them strength and food; and shall
not we trust Him to help us his children?”

It was all clear to Hans now, and the bold resolve was
made.

From that time the two boys thought of little else than the
intended escape. The sight of their little darling pining away
before their eyes nerved them to plan and to work.
Preparations were carried on in secret: no one having any
idea of what was going on. A little playfellow lived close by
whose father was a carpenter, and being often in the man’s
workshop, he came to have a liking for the orphans; and
many a spare piece of wood he gave them to play with,
which, by watching him at work, they learned in their rude
way to fashion into shape. They now began to put the small
knowledge they had thus acquired to some account; and
after many attempts and failures, at last succeeded in
making a rough sort of little cart. The cover of a box with a
rail round it formed the seat, the pole was a cast-off
measuring-rule which had been thrown away as useless;
but when they came to the wheels, they had need of all the
patience they possessed; however, perseverance in due
time was rewarded, when, after devoting every spare
moment they could secure, the little carriage which was to
effect their escape was finished. How happy they felt when
the finishing touch was put, when it was drawn away to a
corner of the yard behind the workshop, and hidden among
a heap of sawdust and shavings! A heavy burden seemed
lifted off their hearts: they dreamt not of any future
difficulties, and only looked forward with eagerness to the
moment when they should be free, and when the roses
would come back again to their little sister’s cheeks.

All was now in readiness: that very evening they were to

start on their pilgrimage, leaving the shelter of their uncle’s
house, together with his tyranny, behind them. It was time
for Nanny to be let into the secret; and, having done this,
the two boys, kneeling down, drew her between them and
prayed, “O Lord, send a good angel to help us, and keep
uncle from waking when we go away.”

They had fixed on an evening when they had not to appear

in public. All had retired to rest early, and they waited only
till they thought it would be safe. The boys then arose, and,
dressing themselves quickly, made up a small bundle of
clothes, and having lifted the precious picture from the wall,
and their father’s Bible from the box, they proceeded to
summon Nanny. This was of all the most anxious part, for
she had from the first slept in her aunt’s room. Her little
ears, however, were on the alert, and a gentle tap as signal
made her leap lightly out of bed, and with shoes in hand
and her clothes on her arm, she was in a moment at the
door. It was bolted: and how could she reach it? Standing
on tiptoe did not help her. So, quickened by fear, no time
was lost in getting a chair and mounting on it, the bolt was
quickly drawn, and in a moment’s time the child was at her
brothers’ side, pale and trembling. And now came a new
dilemma, the house door was locked, and the key in their
uncle’s room. Here, however, their gymnastic training stood
them in good stead, and their bedroom window being not
far from the ground, they jumped out of it, and alighted
safely on the pavement.
The little cart was next brought from its place of
concealment. Nanny, wrapped in her cloak, took her seat in
it, and the book and picture being laid at her feet, and the
bundle serving as a cushion at her back, the children set
out on their unknown way. It was quite dark. They had not
gone very far when they encountered the watchman with
his horn and lantern. Throwing the light full on the strange
group, he cried—

“Halt! who goes there?”

“Good friends,” promptly answered the elder of the boys;

when the man, with a kindly smile, let them pass without
further inquiry.
 Story 2--Chapter II.
In due time they had got clear of the town, and were
trotting along a straight country road as fast as their feet
would carry them. Whether the Tyrolese mountains lay to
the right or left, before or behind them, they knew not nor
seemed to care. They had left their cruel uncle, and the
mere thought of this made them happy. They were but little
children, and did not reflect on any dangers they might
have to encounter.

It was in the dim twilight of early morning that they

happened to meet a woman driving a cart filled with cans of
milk which she was taking to the town. A sudden thought
seemed to strike Toni, for, going straight up to her, he said
—

“Please, mother, can you tell us the way to the mountains?”

“To the Tyrolese mountains?” answered the woman, in a

tone of astonishment, standing still, and looking at the
group with much interest. Perhaps she had children of her
own, and pictured them as little wanderers like those before
her. “You are all right so far,” she continued, “for a sister of
mine left me to go there but the other day, and drove
straight along this road. I watched her till she was out of
sight. I am afraid I cannot direct you further. But what do
you three children want there?” she inquired.

“We are going to look for grandfather,” Nanny answered in

haste, “and he will give us some breakfast, for we are so
hungry.” At these last words she cast a longing glance at
the milk cans.
“So hungry, are you?” said the woman, looking at her with
real motherly tenderness; then taking out a tin measure,
she filled it to the brim, and putting it into her hands, said,
“Drink it all up, my dear; and it is milk from a Tyrolese cow,
too,” she added, smiling. “And we must not forget your
good horses. Will they take milk too, I wonder?” offering
one of the boys a full can, which she filled a second and a
third time. Then she drove on, scarcely giving the children
time to thank her.

“It was God sent us our breakfast,” said Toni. “Father used
to say that He sees us, though we cannot see Him, and
knows what we are in want of as well as we do ourselves.
But now the sun is rising, and we must ask Him to take care
of us to-day.”

Nanny stepped out of her little carriage, and under a wide-

spreading beech-tree, the branches of which overshadowed
them, the children knelt down, and in their own simple way
entreated God’s blessing.

Just at that moment the sun, like a ball of fire, rose above
the horizon and shed over them his golden beams. We can
fancy how lovely everything must have appeared to these
little ones, who had never known the beauties of sunrise in
the country.

“It seems as if God was holding his shining hand above us

and blessing us,” said Toni.

“Oh, how pretty!” exclaimed Hans. “Everything about us is

so bright; even the very stones; and the little blades of
grass look covered with diamonds, but it is the dew which
God sends to refresh them. How good He is! He cares for
the plants as well as for us, but He made them, so they are
His children too.”
“And look at this,” cried Nanny, full of glee, taking up an
acorn cup; “only see what a large drop of dew inside—it
must be a bath for the tiny insects.”

Whirr, whirr—up flew a bird from its nest.

“Ah, have I frightened you, you poor little thing?”

“That must be a lark,” said Toni; “look how high it flies,

singing all the time; up and up it goes as if it meant to go
right up to heaven.”

“Greet father and mother for me, pretty bird,” cried Hans,
“for they are in heaven.”
“Yes, yes, and for Nanny too,” said the little maiden; and
touching the tips of her small fingers with her lips, she
threw them up as if wafting the kisses upward.

“Perhaps the lark will carry our prayers to God,” said Hans.

“Oh no,” replied his brother, looking very thoughtful. “God

does not need any messenger to take our prayers to Him,
for He is always with us; and even if we just think in our
hearts what we wish to ask Him, He knows it all quite well.
Father said He was close by at all times.”

“Hark what a pretty song the lark is singing! What a pity we

cannot hear what it is about!”

“I will tell you, Nanny, what I fancy he would say,” said Toni.
”‘I thank the good God that He has given me wings, so that
I can fly up to the blue sky, and that He has made the sun
so warm, and the fields so green and soft where I build my
nest.’”

“That is nice, Toni. But listen! there is a bee humming as it

flies by. What does it say, do you think?”

“Well, perhaps it is buzzing, ‘Praise God that He lets me

rove from flower to flower to sip the dew and gather honey,
and that I am such a happy little bee.’”

“Now then,” continued the little girl, “there is a large

caterpillar creeping along on the ground. It cannot say
anything; it neither sings nor hums.”

Toni was silent a moment; then taking both Nanny’s hands

into his, he went on, “I was just thinking, my dear little
sister, of something mother used to tell me about that. The
caterpillar thinks, perhaps, ‘I certainly am not so beautiful
now as many other things in the world, but I have life and
can enjoy it. I thank God for that; and some day, when I
am tired, He will teach me how to spin myself a cradle in
which I may lie down and sleep; then, when I am quite
rested, God will come and wake me, and instead of creeping
slowly on the ground I shall fly up a lovely thing with
wings.’”

“And then, you know,” said Hans, following out his mother’s
words, which his brother had recalled, “it will be with our
parents something like this butterfly, for first they lived on
earth, then God laid them down to sleep in the churchyard,
and at last He will come and wake them, and they will be
happier and more beautiful than they ever were before.”

“How can you tell what the birds and insects think about?”
said Nanny, looking inquiringly into her brother’s face.

“Of course we can only fancy it all,” Toni replied; “but

mother often talked about these things, and taught us to be
kind to dumb creatures, and never to hurt even the smallest
insect that God had made, because they can feel as well as
we; and then she would tell us so many pretty stories of
their different ways, that it makes me think sometimes they
must have some sort of reason like human beings. But now
step in, Nanny; we must not talk any longer, but go on our
way, or we shall never reach grandfather’s.” The little one
settled herself comfortably in the cart, her brothers
harnessed themselves once more, and away they went.
 Story 2--Chapter III.
When they had gone a short distance, Hans, who had been
looking rather grave, whispered into his brother’s ear, “Toni,
do not say this to Nanny—but how shall we know where
grandfather’s house is? We may wander among the
mountains all day long and never find it.”

“God will lead us right,” answered the trusting boy, “and

give us strength for the long journey. Only think, we have
been up all night, and are not tired yet. But, Nanny,” he
said, turning to his sister, “you must go to sleep now; lie
down and shut your little eyes.”

The boys stopped, folded up their coats, putting them under

her head for a pillow; and, being protected from the sun’s
rays by a sort of awning formed of green boughs, she
snuggled her head down and was soon fast asleep.

It was some hours before Nanny awoke. They had passed

through some villages without stopping in any, and were
now beginning to feel very hungry. It was early dawn when
they had their drink of milk, and they had tasted nothing
since. The little girl began to cry piteously, but Toni
comforted her, promising they would get something to eat
the very next place they came to. Just at that moment a
cart filled with potatoes passed them; and as they followed
in its track they found, to their great joy, that here and
there one or two had fallen on the road, so they were
thankfully gathered up and put into Nanny’s apron, the
carter meanwhile having vanished out of sight. Some
distance in front was a large meadow, where a flock of
sheep was feeding. When they came near they saw the
shepherd in the act of warming his breakfast over a fire of
sticks he had just kindled. The boys, running up to him,
asked leave to bake their potatoes in the ashes. This was
readily granted; and not only that—the man kindly shared
his meal with the hungry children, giving each of them
some porridge and a slice of bread.

How nice it tasted! and how happily they sat round the fire,
peeling their potatoes and talking to their new friend!

When they had finished breakfast, the boys, who had been
on their feet all night, lay down on a green bank to rest,
and being very weary soon fell asleep. Manny was quite
refreshed after her nap and hearty meal, and amused
herself meanwhile with the sheep and lambs, who soon
became so friendly that they would let her pat and fondle
them as much as she liked.
After an hour’s time they were again on their journey, and
had scarcely proceeded half a mile when a cart laden with
wood passed by. The man belonging to it was walking by
the side of his horses (his “browns,” as he called them), and
stopping to speak to our little friends, he asked them where
they had come from and whither they were going. When he
had heard their simple tale he looked kindly at them, and
said, “You have come a long way, and must be weary, my
boys; I will give you a lift. Step out, my little lass.” So
saying he lifted Nanny out of her cart, and hanging it at the
back of his waggon, was going to help them, when with one
leap they sprang up and placed themselves on a log of
wood he had put across to serve as a seat. “There now,” he
continued, “I can take you ten miles on your way. I wish it
had been farther, but I must then unlade my cart and return
back again.”

This was a pleasant and most unexpected rest. It passed

only too quickly. They were not long in reaching the place to
which the man was bound, when, having deposited his load
of wood and taken a kind leave of the children, he drove off,
followed by many a loud and hearty “Thank you” from his
grateful little friends.

It was now mid-day, and they began to wonder where they

should dine. It happened, as they passed through the next
village, that the peasants were just returning from their
work. As may be supposed, the little pilgrims attracted
observation, and many questions were asked by one and
another till their story was told. Hans, whose thoughts were
at that time naturally intent on the subject of dinner, could
at last bear it no longer, and said frankly, “You have
questioned us about all sorts of things, but no one has
asked if we are hungry.”
“Well said, little fellow,” they answered, much amused at
this practical hint. Then every one was more anxious than
the other to show hospitality to the friendless orphans, till
the schoolmaster settled the point by taking them home
with him. His pretty house was close by, and having
requested his wife, who was in the act of serving up the
dinner, to let them have it on the grass, the table was
brought out, and they sat down to baked fruit and pancakes
—undreamt-of luxuries to the little travellers, who five
minutes before knew not where they were to get a piece of
bread. To Nanny it recalled the old home, and, throwing her
arms round the good woman’s neck, she told her how
sometimes, when she had been a very good girl, her
mother would give her that for a treat.
Dinner was over, and now it was time for the children to go
on their way. The peasants were waiting to take leave of
them, and many had brought their little offerings of
sympathy: one a loaf of bread, another a pot of honey,
while a feeble old woman came tottering along with a bottle
of milk. The children of the village said they must harness
Nanny’s horses, and admired her spirited steeds, playfully
offering them a feed of corn.
So they went merrily forward, accompanied for some
distance by a troop of the younger inhabitants, and followed
by the blessings of all.

They had proceeded about a mile when they saw a boy in

the distance running along the road they were going. They
stopped when he came up, and, as he lifted a corner of his
jacket, what was their delight to see snugly lying there
rolled up like a ball a Pomeranian puppy, about four weeks
old, with a soft, white, silky coat.

“What are you going to do with the pretty creature?” they

all exclaimed with one breath.

“Give him to whoever will take him,” said the boy, “for we
have three more of the same sort at home. Would you like
to have him?” he continued.

“That I should dearly,” said Hans, holding out both hands to

receive the little fellow, “and thank you a thousand times.”

“You are heartily welcome,” returned their new friend;

“indeed, I am obliged to you for taking him off my hands.”

The bottle of milk was at once opened, and, there being no

cup, Hans’s hand was filled again and again for the dog to
lap from, which he did most gratefully; after which a bed
was made up of Nanny’s cloak, and, with her apron to cover
him, he was soon asleep.

And now they start off afresh, and their way being for a
time in the direction of the boy’s home, he proposed
harnessing himself to make a third, and away they went full
gallop.
 Story 2--Chapter IV.
It was far on in the afternoon when they passed through a
beautiful wood. The Tyrol abounds in fir forests, beeches,
and chestnuts. We may fancy our little friends, then,
enjoying themselves under the shade of the trees. Many
hours having passed since their mid-day meal, the loaf of
bread was produced, and Toni cut a slice for each with his
pocket-knife, spreading it with honey. This proved very
grateful to the hungry children, who had tasted nothing
since their dinner with the good schoolmaster. Toni and
Hans, tired enough by this time, were glad after their meal
to stretch themselves on the grass and go to sleep, but
Nanny, who had been spared all fatigue, ran about playing
with the dog, going here and there, and looking with
wondering pleasure at the trees and wild flowers, all of
which were so new to her, and talking to the little birds that
hopped from bough to bough twittering their pretty songs.
The light was playing between the trees, flecking the turf
beneath with shadows, and illuminating the trunks of the
old firs with a ruddy glow. The little girl skipped about in
great delight, getting as she went along a lap full of flowers,
which she amused herself by forming into bouquets and
wreaths. In stooping down, her eyes fell upon some wood
strawberries, which were quite ripe and growing in great
numbers. “Oh, what a nice surprise for my brothers!” she
said, and set to work gathering as many as she could. Three
large leaves were spread on the top of a small rock which
served as a table, and when the boys awoke, they were
called to partake of the feast. A merry little party they
were. And now, having finished their repast by taking a
drink of milk from the old woman’s bottle, no more time
must be lost, Nanny was told to take her seat, and, the dog
being laid at her feet, they again set out.
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