Supply Chain Optimization

Sandbagging Trucking

The fracking revolution is really taking off…and it is sucking up truck drivers. As we have reported in the past, each well is taking more and more sand…last year’s total consumption was 100 million lbs. – that is 4 million truckloads that must be ...

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Carrier Contracts Are Dead – Long Live Brokers

Many big shippers have so-called contracts with “core carriers”. Many of these are loosely structured, promising a limited volume of loads in exchange for a rate structure. Even carrier contracts that are more stringent may be on the endangered ...

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Solving Manufacturing constipation

Manufacturers are getting stressed by demand. A great example is Boeing which is building 737s at rates that its engine supplier is having difficulty matching. Partially finished 737s are piling up, and Boeing is taking the drastic measure of ...

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Trucking Costs – Villain Or Scapegoat?

Hormel joined other companies, like Kellogg, reporting that rising freight costs were part of the reason it cut its forecast. Really? If freight is such a high cost, surely they would say what they are doing to mitigate that cost. So far this year, ...

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California Becomes Even More Labor Unfriendly

When a Starbucks employee claimed before the California Supreme Court that he was not being paid for closing up the store, a task that took 4-10 minutes each day, the court ruled he should be compensated….this is a direct challenge to the federal ...

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Numbers In The News

635,000 – The number of pilots Boeing estimates that airlines world-wide will need to… 635,000 – The number of pilots Boeing estimates that airlines world-wide will need to recruit over the next two decades 298,000 – The number of unfilled jobs in ...

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Pollyanna Or Realist – Which One Are You?

Freight costs are rising and probably faster than most managers think. For example, A Morgan Stanley poll suggested freight rates would go up 10% in the next year, BUT Knight-Swift said its revenue per loaded mile, a key measure of pricing strength, ...

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Interesting Data Points

Interesting data points: 70% of all sustainability projects result in cost savings. My question is, why would any profit-motivated company ever do the other 30%? Victims of direct-to-consumer demand: Such mundane things as household cleaners are now ...

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It’s Called “Kill The Supply Chain”

While conservation and alternate energy sources are impacting oil demand, the clear trend is that demand is up. In 2010, global oil demand was ~85 MM (million) barrels per day – in 2018, it is close to 100 MM. The oil price (Monday lunchtime) was ...

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Big Companies Hog Gains From Innovation

The Wall Street Journal page 1 detailed how big companies were gaining significant competitive advantage from both scale and innovation. Examples given include: The Wall Street Journal page 1 detailed how big companies were gaining significant ...

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