Supply Chains and Private Sector Dynamics

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Supply Chains and Private Sector Dynamics
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Agenda

• Major trends in freight logistics
• Supply chains basics
• Implications for planning

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Trends in Trucking

• Productivity
• Congestion
• Input cost factors

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Trends in Trucking - and More
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Trends in Rail Freight

• Intermodal growth
• Capacity constraint
• Capacity allocation

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Trends in Waterborne Freight

• Mega-ships
• All-water routes
• Transloading
• Short-sea
• prospects

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Trends in Pipelines

• Weather risks
• Ethanol
• conversion

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Trends in Air Cargo

• Ground substitution
• Global carriers

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Trends in Logistics

• Visibility
• Globalization
• Fast Cycle Logistics

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Globalization Trade Percent of US GDP
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Supply Chain Basics
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Traditional Logistics
SUPPLY CHAIN
METHOD OF CONTROL
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Fast Cycle Logistics
SUPPLY CHAIN
METHOD OF CONTROL
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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

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Advanced Manufacturing

• Reliable and timely
• Higher value shipments
• Just-in-time manufacturing
• Multi-modal, truck dominant

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Natural Resource Manufacturing

• Bulky goods
• Low damage, low cost
• Less emphasis on speed
• Rail and barge dependent

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Non-Durable Manufacturing

• Heavy or high cube
• Moderate to high value
• Moderate to high speed
• Local ends of long supply chains
• Truck dominant

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Service Industries

• Accessibility
• Reliability
• Smaller, more frequent trips
• Truck and express package dependent

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Global Supply Chain High Tech
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Global Supply Chain Retail Office
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Regional Chain Consumer Beverages
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High Service Chain Health Care
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• Implications for Planning

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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

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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

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Businesses Compete on Logistics Costs

• Fuse information with technology
• Demand high performance transportation system
• Impacts supply chains and business models