Chicago logistics is all about connectivity. Connecting the east with the west, Chicago is a natural hub. 5 international airports, 7 Class I railroads carrying 50% of the nation's freight (think of the enormity of that figure!), 3rd largest intermodal port in the world, 3rd largest interstate highway system in America, and more.
How significant is freight to your bottom line? For example, when I was a VP of Operations for an absorbent healthcare products manufacturer (adult diapers, hospital underpads), freight was a BIG concern.
Where would you prefer to locate your operation? Most likely as close to customers and your supply base as possible. In this case, it means rates are going through the roof - if you can even get them.
Keep innovation and future disruptors top of mind.
Although we should consider potential impacts of 3D printing in our industry, the more important consideration is to let our minds think about the future. What technological innovations are likely to impact your industry?
Have you put thought into what has become commonplace - subscription services like Prime?
Are your suppliers ready to grow with you? Will they run into quality issues? Cash issues? Supply issues? Or will they enable you to be ahead of the curve?
Do you have backup transportation built into your model? Are you considering additional transportation partners such as third-party logistics providers (3PL) and brokers? Perhaps they shouldn't be considered a last resort.
Amazon continues to wreak havoc on supply chains worldwide. No matter your industry, are you considering innovations, automation and technology to reduce costs to remain competitive?
According to ISM (Institute of Supply Management), manufacturing expanded more than it has in 14 years in February - it is on fire!
