Transportation Logistics
We live in an on time world. Our entire economy is based on shipments arriving at a certain time and as we have seen through recent events, any small hiccup can have drastic effects. There are many reasons as to why we leave very little time for delays, but in reality only one thing matters. Late deliveries cause frustration and money.
Global Transportation
Our world is based on global trade. Materials and parts are manufactured all over the world and shipped to a single place for construction and distribution. It is rare for a factory to make every part of a product from start to finish. As a result of this we have become dependent on the Global trade routes. Large amounts of goods and products are shipped, usually via cargo ships, to just about anywhere. This helps reduce production costs as it allows certain areas, regions, and factories to become very specialized. However, it has created a system where a single delay can have a major impact on many products. A great example of this is suspension systems used on drawers. These can be used on desk drawers, kitchen drawers, or bedroom furniture. If a shipment of this product gets delayed it can halt the production of all of these products. Simple delays can cause a chain reaction with long term impacts on customers and end users.
Recent delays at the Suez Canal have brought this reality to the forefront of our minds. The Suez Canel is a popular shipping route that runs through Egypt that links the Mediterranean Sea with the Indian Ocean through a series of lakes, rivers, and manmade passages. Without it cargo ships would have to travel all the way around the African coast. Doing so would take far longer and cost a lot more money. Recently, a cargo ship become lodge in the Canal for multiple days delaying shipments. Although it might seem that this has no effect on our daily lives eventually the delay cause by this will affect us. About 50 ships travel through the Canal every day and it being closed has stopped the flow of materials to all over the world. In the modern economy, items are ordered months in advance. Small delays like this delay production elsewhere and this ultimately will delay the delivery of the end product. We do not know the extent that the accident will cause, but months down the road when people have long forgotten about it is when the average person will start to notice the delays.
Freight Services
Once materials and goods get to where they need to be, factories and assembly plants complete the products and ship them all over the place. This is done in America through a large network of highways and railways. Most of these items travel to distribution centers where they are shipped LTL to end users. LTL stands for less than truck load and is how larger items are often delivered to you. A single desk for a home office doesn’t take up a full truck trailer. To get around this many companies specialize in this type of delivery. LTL truck services are dependent on traffic and rail patterns to ensure on time delivery and a single delay here can also have a domino effect. If a single distribution center gets backed up it could delay shipments to just about anywhere.
Set Up for Failure
The basic logistical set up of our consumer goods industry is set up to minimize costs. This, at first, appears to work in everyone’s favor but delays have shown this can often backfire on us. If we rely on a distribution center that doesn’t function efficiently we often end up with a disappointed customer. Both large and small companies can do everything perfectly and still miss a deadline because of things outside of their control. The seller of an item is almost entirely reliable on a third party to deliver goods and if this company hits a roadblock it is often the seller that gets stuck with the angry customer. Freight companies can shift and deflect blame and usually have no interest in trying to make things right. They know they have the product and control the situation which usually leads to angry clients and customers. This is one of the hardest parts about delivering goods in America. Often times we are reliant on someone else to get the job done. Most companies do not have the financial capital to create their own logistical process. In other words, freight companies can be reliable and efficient but they can also have problems that cause headaches for everyone involved.
We live in an on demand society. We want everything right away and we get frustrated when things are late. We must remember that delays are annoying and frustrating but often times they are beyond anyone’s control. So next time you get an email saying your shipment is going to be late try to remember to be calm and understanding. Almost all of these delays are caused by situations beyond any one person’s control. The way we do business is not likely to change drastically. We must take the good and the bad that goes with our current global trade system. Nothing is perfect but we are able to get good products at an affordable price. In the end that is what matters the most.