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Transportation Impacts Upon Supply Chains
- 1. Domestic Transportation Trends Impacting Supply Management Frank Scheer Surface Transportation USPS Supply Management NAPM - NCA - Early Bird Seminar March 8 , 2011
- 2. Introduction Transportation Trend overviews by Mode: Highway Railway Airway Summary and Discussion Transp. Impacts on Supply Mgmt. Agenda
- 3. Transp. Impacts on Supply Mgmt. Introduction A supply chain consists of nodes and links between materiel sources and a user. Nodes are production or warehousing activities. Links are usually transportation functions to move materiel from one node to the next. Transportation permeates a supply chain, therefore capacity and cost impacts have a profound impact upon the procurement of all commodities.
- 16. Transp. Impacts on Supply Mgmt. Summary All forms of domestic transportation are experiencing capacity and cost issues. Capacity or cost issues affect some transportation modes more than others, as well as some carriers within a mode. Although an average of ten percent of the delivered price is composed of logistics costs, it can be more for some items than others. Transportation permeates a supply chain, therefore capacity and cost impacts have a profound impact upon the procurement of all commodities.
- 17. Questions? Thank you! Frank R. Scheer Contracting Officer, USPS Surface Transportation CMC [email_address] (301) 386-8970 1200 Mercantile Ln, Ste 109 Largo, MD 20774-5389 Transp. Impacts on Supply Mgmt. Discussion
Notes de l'éditeur
- Good evening! I’m Frank Scheer and welcome to tonight’s Early Bird Seminar. Out topic tonight is a review of transportation issues that will have profound economic impacts upon all supply chains during the next few years. I am generally optimistic by nature. Unfortunately, none of the items I discuss are positive. However, strategic purchasing approaches can mitigate impacts from some of the areas we’ll discuss. In other cases, a procurement should plan for these impacts so that an organization isn’t blind-sided.
- Following a brief introduction, we’ll spend time discussing each transportation mode that you are likely to deal with. Few domestic supply chains utilize river and lake transportation, or pipelines. Therefore, we’ll drop those from discussion to conserve time. The remaining three modes –highway, railway, and airway– will be discussed in that order. My rationale is that nearly every supply chain utilizes highway transportation in some form, while fewer rely upon rail, or airline services.
- Large shippers are concerned with infrastructure supporting economic growth Some are supporting increased fuel tax Many believe better to pay now than later (congestion / cost of inventory)