Tag Archive: Mobility 21

The Sheer Relevance & Impact of Transportation (A Billion Here, a Billion There)

November 24th, 2018

Recently, I attended Mobility 21, the Southern California transportation coalition, and it reminded me of the sheer relevance of transportation.  No manufacturer can operate without transportation: distributors are out of business without trucks dropping off and picking up, healthcare would stop functioning and our frequent Amazon orders would be a thing of the past.  In essence, everything would come to a grinding halt!     

Certainly, trucks are what we typically think about when it comes to transportation.  They account for $722 billion in freight flows with Canada and Mexico, for example. Whereas rail still accounts for $174 billion (not pocket change).  The ports are our gateway to the rest of the world (and the Los Angeles ports alone bring in 40% of the U.S. volume). Air carries an impressive number of packages especially with the rise of e-commerce. UPS and FedEx are expanding at amazing rates, especially at Ontario airport, the hub of e-commerce activity.  For example, during the 2017 peak season, this region of UPS alone processed 13.1 million packages!

At Mobility 21, there were some interesting statistics throw out:

  • AAA has 60,000 service calls per day
  • Transportation has a $700 billion dollar economic impact on Southern California and accounts for 1/3 of the jobs in Southern CA!  
  • 350 billion miles each year are driven in California
  • The number of trucks is expected to go from 1.8 trillion to 3.9+ trillion by 2045
  • And the list goes on….

What Should We Consider and/or What Impacts Could Arise?
At a minimum, why not take a step back to think about your transportation network?  What does it look like? How do you receive materials and products? Do you use the ports?  Air? Rail? Undoubtedly, you use trucks! How expansive is your network? Are there many players involved?  Since it could cause your operations to cease, it makes sense to find out!

Next, think about what you’d like your transportation network to deliver.  Do your customers expect rapid deliveries and “above and beyond” service? If so, who is your partner in ensuring this occurs?  

Your transportation partners are your last face to your customer. And, in today’s marketplace, there is a significant demand and challenges your transportation partners must navigate.  If you plan to be successful, you must stay on top of your transportation network and partners. Are you attractive to them? Perhaps we better think about that further….



Disruption, Innovation, Global Trends & the APICS-IE Symposium

November 20th, 2018

Lately, I’ve attended various conferences and participated in a few events/ panels on a diverse set of topics with different groups (ranging from transportation to public policy to manufacturing and supply chain to consulting to universities/ students to women leaders).  Aside from it being a whirlwind of fascinating conversations, I’ve seen a few themes emerge across every one of these events – disruption, innovation and global trends.

In today’s Amazonian and Uberian environments, disruption is the new normal.  For example, at Mobility 21 (Southern CA transportation coalition), autonomous vehicles and Uber/Lyft type transportation/trucking concepts arose.  At the Association for Supply Chain Management (ASCM/ APICS) international conference, the idea the IoT, artificial intelligence, Netflix type disruption and more arose.  And at the Society for Advancement of Consulting local event held at Harvey Mudd, almost 50% of the attendees were originally from out of the country and key discussions occurred around global trends and disruption.

Thus, I’d be remiss if I didn’t invite you to join us at the APICS-IE executive panel & networking symposium with an amazing panel discussing “Advancing Innovation and Navigating Global Trends” on Nov 3rd at Harvey Mudd in Claremont.  Click here to learn more and register.

One tip to implement this week:
Since disruption and innovation go hand-in-hand, there are many ways to think about this topic.  One suggestion is to gather your team and business partners/trusted advisors and brainstorm about what disruptions are likely to impact your industry.  Also consider which disruptions are likely to come down the pike. Understanding your environment and how you are positioned is a great starting point – and you’ll be better off than most organizations who might already be known in innovation circles to repeat this exercise on some sort of regular basis!

Additionally, join our unique networking and educational event on “Advancing Innovation and Navigating Global Trends”.  We have an amazing panel including the deputy executive director of the port of Los Angeles, the COO of the National Association of Manufacturers (NAM), the Chairman/Dept of Surgery at the City of Hope, a senior executive in aerospace and a senior director of supply chain & operations.  It should stir up some really engaging discussions on innovation and global trends! The event is on Nov 3rd in Claremont, CA from 8-11:30am. I hope to see you there.  Learn more and register.

 



Case in Point – The Customer Experience

January 15th, 2018

The Disney Experience
Disney understands the customer experience.  I still remember going to the Main Street Electrical Parade when I was a kid and loving every minute.  They do such a great job of the total experience (lights, acting, music, showmanship and more) that it will probably be my favorite forever.  Thus far, I haven’t seen better!

Do your customers truly enjoy your customer experience so they wouldn’t even think of going elsewhere?

The Customer Expectation
Recently, I spoke on a panel titled, “Speed to Delivery: Goods Movement’s High-Tech Future” at Mobility 21, Southern California’s Transportation Coalition’s annual conference.  As one of our panelists, Walmart’s Senior Director of Sustainability – Logistics, said customers expect far more then ever before, from immediate delivery to the total experience (inclusive of putting groceries away whether the customer is at home or not).  Technology plays a vital role in making this into reality.     

What Is Your Company Doing About It
Are you thinking beyond your customer requirements to the total experience?  Whether aerospace, building products or consumer products (such as food and beverage), every customer expects more.  What are you doing to make sure they don’t even think about going elsewhere?   



What’s New & Hot in Transportation?

October 31st, 2017

 

 

 

What’s New & Hot in Transportation?

I was a panelist at Mobility 21‘s (the Southern California Transportation Coalition) session, “Speed to Delivery: Goods Movement’s High-Tech Future”.  We had a fascinating discussion with a panel of experts from Walmart, Caltrans, the California Transportation Commission and Paul Granillo, Kome Ajise, Elizabeth Fretheim, FraInman.  One area with 100% agreement is that the Amazon Effect (inclusive of rapid deliveries, small shipments and easy returns) is the expectation.

For example, according to Fran, e-commerce is rising, master plan business parks are growing, omni-channel is taking over, the need for flexibility is at an all-time high and much more.  We live in a complex environment and transportation is gaining a larger role.  How will we deliver significantly more to Amazon-type customers?  How will we address the challenges of the last mile?  And certainly, in California specifically, how will we do all this with the traffic congestion? And with dramatically less emissions and with greater sustainability?  Will Amazon start competing with UPS and FedEx and what sort of impact will it have?  Let alone autonomous vehicles….

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

Who knew transportation could be so complex?  As much as goes into transportation, consumers are trained to think of it as “free” (think Amazon Prime) and quick.  That certainly provides two conflicting forces!

A good start is to absorb the vast topic transportation has become.  Are you or someone in your company thinking about transportation from a strategic viewpoint?  It doesn’t matter whether you have zero e-commerce and transportation doesn’t seem to be an issue.  Your transportation assets and shared infrastructure will likely be impacted by the vast amount of change taking place.  What might occur?  Will UPS and FedEx respond to Amazon’s moves?  Will truck capacity increase with autonomous vehicles?  Will your loads become more expensive because trucking companies have to invest in new infrastructure or will they becomes less expensive since an autonomous driver does not have to sleep and rest after 11 hours?  And if you own your own fleet, there are many rules and regulations to consider.

Join us at APICS Inland Empire’s executive panel and networking symposium to learn about the latest transportation trends, technologies and more.

 

 

 

 

Sav