Tag Archive: LA Port

Southern California Supply Chain Summit Touts Impressive Facts

April 27th, 2017

According to the Southern California Logistics & Supply Chain Summit featuring executives from Amazon, UPS, the California Trucking Association and more, supply chain has a dramatic impact on the Southern California economy and the world. For example, UPS is the 9th largest airline, has 100,000 trucks, and delivers a mind-boggling 19 million packages a day. Amazon has added 8 million square feet in California in the last 5 years, and every 1 million in square feet turns into 3 million square feet of supporting buildings.  Amazon is investing in robotics, solar panels, drones and more. The LA and Long Beach ports bring in 40% of all goods for the U.S. And the list goes on…. Have you thought about your supply chain network lately?

disruptive innovations

What Should We Consider and/or What Impacts Could Arise?

We definitely should NOT bury our head in the sand when it comes to supply chain! If you aren’t constantly learning, watching trends, keeping up with regulations and requirements and thinking about your supply chain network next year and beyond, you won’t be able to respond fast enough to the ever-changing nature of the supply chain. Therefore, attend events such as the upcoming APICS Inland Empire executive panel & networking symposium on “Disruptive Innovations in Supply Chain” and other events in your area, seek out mentors and advisers, and read the Wall Street Journal, trade magazines, on-line resources and research reports to keep up-to-date.

Also, take time to think about your company’s strategy when it comes to supply chain. What should you be tracking to stay on top of what is important to your industry, your supply chain partners, and the countries and currencies where your customers and/or suppliers are located?  What type of products do you have? Lightweight but bulky products? Large, odd-shaped products? Perishable products with a short shelf-life? Where are your customers located and what type of service do they expect? Is that changing? And the list can get VERY long. Understand your situation, likely changes in the next year and your internal and external strengths and weaknesses. You’ll have a place to start.

 



TPP is Dead …. How Will it Affect Our Ports?

January 24th, 2017

On Trump’s first full day in office, he backed out of TPP, as expected — and promised. The concept behind this Trans-Pacific Partnership was to deepen economic ties among countries that border the Pacific Ocean. Will this have an effect on trade?

At the same time, I just so happened to go on a tour of LA Port on Friday (see my APICS colleagues pictured below as we sail past a container ship). Southern California’s ports bring in 40% of U.S. imports, and so we are the “big daddy” of the ports. Thus, any trade changes will affect our ports in some way. The question is how…..

Southern California ports

 

What Should We Consider and/or What Impacts Could Arise?

Certainly, since the ports and trade are tied together, it makes sense that some sort of change will occur; however, I don’t think it will be noteworthy. Since the Southern CA ports are able to accept big ships (which isn’t that common) and they are located in a prime spot for trade, the impact will not be substantial near-term.

Of course, the prices and tariffs will be impacted; however, for commodity items, it will still make sense to bring them in from lower labor cost countries. For non-commodity items, we’ll see a resurgence of manufacturing and automation/use of technology take place in North America. We will need to be more nimble and agile — including our “big daddy” ports if we wish to be competitive.

Are you prepared to leverage additional technology to remain competitive? And do you know how your partners will be impacted? If you are not incorporating those likely impacts into your strategy, you will be left in the dust for those who are thinking ahead.