Improve your supply chains and logistics. In June 2011, the CEO of a multi-national food company described the Australian food market as the ‘worst in the world’. The main reason, he said, was the dominant position of the two major grocery retailers. He noted that the two companies were in strong price competition and replacing some branded products with their … Read More
Delivery transport in cities
A bigger job with fewer trucks. Reading the United Nations development program (UNDP) report Asia Pacific Human Development 2012, I was alerted to the important role that logisticians can play in making cities of the region livable. By 2026, more than half the Asia Pacific region’s population will live in a city; and half the world’s mega cities will be … Read More
How will you respond to carbon pricing?
Improve or pass on the cost. This is a question asked by CEOs of the larger companies in Australia. The carbon tax regime will commence in July 2012 and initially target the largest emiters. In addition to Australia, similar decisions and plans about implementing a carbon tax or carbon trading are happening around the Pacific Rim; in New Zealand, Thailand, … Read More
Know your supply chains
Where are the weak links. Do you know of cyclododecatriene or CDT? I have not heard of it either. But if you are associated with automotive supply chains, you will know of it by now. CDT is a precursor ingredient for a resin called PA12 or Nylon12, which is a constituent of plastics used in the automotive industry. The manufacturers … Read More
Outsourcing logistics functions
Competencies can change. I am interested that Amazon has recently purchased the supplier of Automated Guided Vehicles (AGV) used in its warehouses. This is an example of vertical integration within a business. When Amazon started, it was portrayed as the ‘new’ style of business. The requirement was to be good at your core competency, in this case on-line book selling … Read More