Supply Chain Briefing

April 27, 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?

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?  Light weight 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.