Parcel - February 2008 - (Page 16) trends SHIP-SHAPE SUPPLY CHAINS Overseas transit is quickly becoming a major element in the supply chain ones, a fact that inevitably leads to more complexity, longer transit times and greater challenges for the improved global manufacturing price tag. Compounding this issue is the fact that fuel prices have risen significantly. All indications are that the world’s fuel production is peaking while its fuel consumption is rising, especially as China and India create a growing middle class and a new universe of oil consumers. Also affecting performance is a global malady known as transportation congestion. The logistics industry saw one of the worst bouts of it a few years ago, and although the past few years have admittedly been better, there’s no guarantee that another potential meltdown isn’t just around the corner. The country’s transportation infrastructure is aging and is already having periodic trouble keeping up with demand. And with transpacific shipments to the United States still on the rise (by 2010, containerized imports will be 50% higher than they were in 2005, and by 2020 they’ll have doubled), this doesn’t bode well for the smooth flow of internationally sourced goods. C By Tony Zasimovich all it dull. Call it boring. But don’t call logistics a dry subject anymore — at least not if you want to be accurate. These days, it’s tough to find a supply chain that doesn’t involve water and everything that goes along with it. Since the start of the decade, many businesses have plunged headlong into international manufacturing. Some have moved their plants to the “world’s factory floor” in China. Others have relocated to up-and-coming venues like India and Vietnam. But most have essentially added a new element — overseas transits — to their supply chains. In the process, they’ve encountered a whole new world of logistics challenges that have made this decade one of the most interesting business eras to date. Logistics Changes In light of these issues, it’s easy to understand why vocational counselors aren’t likely to recommend logistics as a low-stress career option anytime soon. The stakes are higher, the expectations are more intense and the potential for managing risk is greater. www.PARCELindustry.com Logistics Challenges Foremost among these challenges is the lengthier nature of getting goods from point A to point B. International supply chains are typically 5,000 to 8,000 miles longer than domestic 16 February 2008 http://www.PARCELindustry.com
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