Talking freight
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The document discusses trends in various aspects of supply chains and logistics including transportation, manufacturing, and globalization. It provides an overview of traditional logistics methods compared to integrated fast cycle logistics. Key points covered include trends in different transportation modes like trucking, rail, shipping, and air cargo. The document also summarizes considerations for supply chain planning and how transportation performance impacts business competitiveness.
Talking freight
- 1. Supply Chains and Private Sector Dynamics
- 2. Major trends in freight logistics Supply chains basics Implications for planning Agenda
- 3. Productivity Congestion Input cost factors Trends in Trucking
- 4. Trends in Trucking - and More
- 5. Trends in Rail Freight Intermodal growth Capacity constraint Capacity allocation
- 6. Trends in Waterborne Freight Mega-ships All-water routes Transloading Short-sea prospects
- 7. Trends in Pipelines Weather risks Ethanol conversion
- 8. Trends in Air Cargo Ground substitution Global carriers
- 9. Trends in Logistics Visibility Globalization Fast Cycle Logistics Radio Frequency Identification Tag Applications
- 10. Globalization: Trade Percent of US GDP
- 12. Traditional Logistics METHOD OF CONTROL SUPPLY CHAIN MATERIAL OWNERSHIP TRANSPORT SYSTEM INFO SYSTEM MATERIAL FLOW WHOLESALE RETAIL INTEGRATED MANUFACTURER PUSH TO CUSTOMER
- 13. Fast Cycle Logistics METHOD OF CONTROL SUPPLY CHAIN KEY: MATERIAL FLOW INFORMATION FLOW MATERIAL OWNERSHIP TRANSPORT SYSTEM INFO SYSTEM GLOBAL LOCATION KNOWLEDGE SPECIALISTS INTEGRATOR INTEGRATOR PULL FROM CUSTOMER STAGING POINT
- 14. Supply Chain Management Transforms non-valued added activities into strategic management functions “ Just-in-time” transit replaces inventory Reliability surpasses cost as most important transportation consideration
- 15. Advanced Manufacturing Reliable and timely Higher value shipments Just-in-time manufacturing Multi-modal, truck dominant
- 16. Natural Resource Manufacturing Bulky goods Low damage, low cost Less emphasis on speed Rail and barge dependent
- 17. Non-Durable Manufacturing Heavy or high cube Moderate to high value Moderate to high speed Local ends of long supply chains Truck dominant
- 18. Service Industries Accessibility Reliability Smaller, more frequent trips Truck and express package dependent
- 19. Global Supply Chain: High Tech SPECIAL PRODUCT & DC ASSEMBLY & DC PARTS DC URGENT DC URGENT DC BUSINESS CONSUMER CONSUMER BUSINESS IMPORT AIR HUB IMPORT SEAPORT Modal Key Truckload IntermodalLess Than Load (LTL) Air Package COMPANY CONTROL COMPANY OWNERSHIP
- 20. Global Supply Chain: Retail Office RETAIL OUTLETS LOCAL MARKET DIRECT WAREHOUSE RETAIL OUTLETS WAREHOUSE RETAIL OUTLETS REVERSE LOGISTICS ( Multi-stop Loop ) PORT EXTRA- REGIONAL VENDOR REGIONAL VENDOR Truck – Dray Truck – LTL/Pkg. Modal Key STAGING WHOLESALE REGIONAL DC EXTRA- REGIONAL DC Truckload Intermodal rail
- 21. Regional Chain: Consumer Beverages CLUB MULTIPLE TRIPS BULK ORDER DELIVERY 1 – 3 Stops per Trip To Clubs & Grocery Stores SMALL ORDER DELIVERY 10 – 30 Stops per Trip To Convenience Stores, Hotels Restaurants, Bars, Offices GROCERY GROCERY MULTIPLE STOPS MULTISTOP POCKET (3 Mile Radius) STEM ( 5 – 15 Miles) EXTERNAL MARKETS LOCAL PLANT & DC EXTERNAL PLANT & DC Production Flow Local Receivers Modal Key Production & Wholesale Flow
- 22. High Service Chain: Health Care REGIONAL DC 1 – 2 HOUR SERVICE OVERNIGHT SERVICE 4 – 6 HOUR SERVICE HOSPITAL CENTRAL DC VENDOR VENDOR
- 24. Planning Considerations The Supply Chain = the Business Enterprise Business competitiveness depends on transportation performance Chains are sensitive to time and disruption Chains cross jurisdictions Needs vary by chain
- 25. Freight Planning and Economic Competitiveness Travel and vehicle operating costs LOS Inventory carrying costs Reliability Asset utilization costs Land use Access to markets Multi-jurisdictional planning
- 26. Fuse information with technology Demand high performance transportation system Impacts supply chains and business models Businesses Compete on Logistics Costs