Logistics, Supply Chain Management

In pursuing my Post-Graduate Certificate in Supply Chain Management – Global Logistics, I could not help to draw parallels between the components of SCM and my previous career in participant sports event operations. This indirect background in Supply Chain greatly facilitated the program as I had a constant supply of past professional examples to which I could relate many concepts. The biggest take-away was that all three segments of Supply Chain Management, which include: purchasing, inventory management and logistics (transportation) are required for a well-managed event, whether on a large or small scale. This article focusses on how mass participant event operations relates to the supply chain management component of logistics (or transportation) and is the second in a series of three articles on the topic. The first on purchasing can be found here and the final topic on inventory management can be found here.




Logistics (transportation)

 

As in any industry, after you purchase your goods or services, they must be transported to your storage location, whether a warehouse or directly to your event venue as per Just-In-Time inventory management, but more on that in volume 3. Many customized products procured in China are ordered well in advance of the event through various methods of forecasting, as mentioned in volume 1. Do you see how all these concepts tie together?. In doing so the event will take advantage of the cost savings associated with longer delivery lead-times of shipments made by boat.

 

Shipping by Boat vs Air

 

Long story short, shipping goods overseas by boat is many times less expensive than by air due to the economies of scale as boats are many times larger than cargo airplanes. A marathon, for example, will require finisher’s medals, age category and overall awards/ trophies most often manufactured of zinc in China. It is best practice to include a considerable amount of safety stock in an event’s initial order to take advantage of substantially lower shipping costs for shipments made by boat. Ordering the above-mentioned items for a 15,000-person event will cost thousands of dollars more if the shipment is made by air. The trade-off is that shipments made by sea take two to three months (including manufacturing time) while shipments made by air take two to three weeks, also including manufacturing. Often an inaccurate forecast will force the event director to place a last-minute order by air, causing the value of the goods to be overshadowed by the cost of shipping. The director would have been better served by ordering additional safety stock with the initial order that was transported by boat.

 



Shipping by Truck, Rail and Intermodaly

 

Not all event specific products are produced or customized overseas. Inexpensive participant shirts, as are required for our marathon example, can often be purchased and customized within the event’s domestic market or by a neighbouring country. For an event in Canada it is slightly less expensive to order inexpensive custom technical shirts or cotton t-shirts from the United States. Either way, these items will be shipped by truck, or possibly intermodaly using a combination of truck and rail. Delivery lead-time will depend on the geographic distance between the supplier and the buyer in addition to the infrastructure quality between the two points. If the shipment of goods cross an international border, it will require customs clearance, the payment of import tariffs and/ or duty, whether transported by truck, rail, air or any other mode of transportation. This service is often performed by the freight forwarder employed by the party placing the shipment, whether buyer or supplier or can be outsourced to a customs broker.


Freight Forwarders

 

Use a freight forwarder: they will make your life easier. Event operations professionals are well versed in most aspects of event operations. Customs clearance and transportation coordination is rarely one of their core competencies, and as such should be outsourced. Freight forwarders reduce costs and increase efficiency through their full-service provision of all transportation needs, allowing for event operations professionals to focus on what they do best.

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Logistics, Supply Chain Management, Transportation

Hyperloop pod transportation has gathered plenty of attention in recent years where magnate propelled capsules are pushed upwards of 1,200 km/h with an average speed of 700km/h. Additionally, Hyperloop transportation is completely automated, which promises to eliminate delays and overbooking. While consumers are quick to fantasize of the benefits of high speed Hyperloop travel, the ramifications of Hyperloop freight cargo will be felt throughout the supply chain, and in consumer’s wallets.












There are currently 10,000 trucks en route from Toronto to Montreal every day, with delivery lead time totaling half a day. A similar Hyperloop will take half an hour, while contributing to a reduction in highway traffic in the process.

 

Benefits:

Inventory

Hyperloop’s fast speed and promised reliability will support lean and Just-In-Time inventory practices. Organizations will have the ability to hold less inventory, therefore decreasing their required warehouse footprint, payroll, operational and overhead costs.

 

Lower product costs for consumers and businesses

With the decrease in inventory costs highlighted above, consumer and industrial goods prices will decrease. These cost savings will ripple down the supply chain, all the way to the wallets and budgets of consumers and businesses.

A decrease in traffic along the 401, 7 and 417 highways

If high-speed TransPod travel becomes widely adopted, a decrease in commuter and freight traffic on the highways commuting between Toronto and Montreal or between Toronto and Montreal, Toronto and Ottawa, and Ottawa and Montreal (depending on whether TransPod Hyperloop or Transpod One meet the required Transport Canada regulations). This will directly lead to a decrease in highway transportation between those destinations. Transpod travel will subsequently force traditional trucking and rail companies to lower their rates and lead to shorter delivery lead time throughout all modes.

Increase in Tourism

A decrease in travel time will benefit the domestic tourism industry. Time savings resulting from the alleviation of airport security, the elimination of delays and of course, the significantly faster speed of Transpod travel, will motivate business and domestic tourists to displace themselves for more business, weekend and holiday trips.

 

Environmental Benefits

Mass-transit Transpod pods are propelled electronically at low speeds: during arrival and departure, then magnetically for the majority of the time. Resistance (air) is continuously vacuumed out of the tube using a passive system, leading to ultra-low aerodynamic drag. This results in a highly efficient and environmentally friendly mode of long-range transportation.

Truck Drivers Should Not Be Affected

As the proposed Canadian Hyperloop route is unlikely to be completed prior to 2025, truck drivers are most likely to already have been disrupted by driverless trucks in the form of platooning.


In Canada, two Hyperloop start-ups are competing for regulatory rights from Transport Canada to construct the first domestic route.

TransPod Hyperloop has proposed an eastern Canadian route, back-and fourth from Toronto to Montreal. The trip is estimated to take 30 minutes.

Hyperloop One’s proposed Canadian route runs from Toronto, through Ottawa, ending in Montreal. Time estimates are as follows:

  • Toronto to Ottawa in 27 minutes
  • Ottawa to Montreal in 12 minutes
  • Toronto to Montreal in 39 minutes

Photo Credit: Hyperloop One, TransPod Hyperloop

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Job Search, Supply Chain Management
The 2017 SCMA Alberta Conference in Red Deer, Alberta saw The Canadian Supply Chain Sector Council launch new videos profiling People in Supply Chain.

These video profiles focus on professionals working in Canada’s supply chain sector in a variety of industries. They provide a sample of the supply chain management career options. All english videos feature french subtitles and french videos include english subtitles.

View this post which includes 7 more career profile videos.

Logistics

Brad Beerling
Logistics Manager
Meridian Manufacturing Inc.



“Be willing to accept problems are going to happen, be willing to adapt to them, learn from them and grow with them.” —Brad Beerling

Takeaways:
  • Getting into logistics requires finding someone to learn from, finding a company that is willing to spend their time on you

  • Be prepared and willing to react to problems that arise

 

Warehousing and Logistics

Brent Ellis

Director, Commercial Warehouses

Wills Transfer Limited


 
Takeaways:
  • Vendor Managed Inventory (VMI) requires continuous coordination, lots of reporting

  • Understanding the needs of your customers

  • Opportunities for advancement within the warehouse industry


Supply Chain Management

Patrick Etokudo
Director of Supply Chain Management
Enbridge



“The skills that you need generically, to perform well as a supply chain manager would be things like interpersonal skills, great communication skills, an ability to negotiate, an ability to build networks and maintain relationships.” —Patrick Etokudo

Takeaways:
  • Soft skills include: Interpersonal skills, communication, negotiating, build networks and maintain relationships.


Transportation

Serge Faucher
Executive Director
Les entreprises Dupont 1972 inc.
 



Takeaways:
  • Communication is key

  • Diesel procurement contract negotiating is a vital role of trucking companies

  • Precise scheduling


Logistics

Christina Forth
Co-Owner
FFAF Cargo



“The types of skills you need in this industry are to be very organized, very time sensitive… reliable, responsible; those things you always look for in employees.” —Christina Forth

Takeaways:
  • A high degree of coordination is vital for freight forwarder portions (obvious)

  • Ethnic diversity is useful in understanding the cultural norms at play within geographic locations being served

  • Fast-paced and stressful environment


Manufacturing

Jim Gillespie
Director of Programs
Peraton



“If you’re interested in a full career, starting in supply chain, pick that part of the job that you love, get into that part of the job, work with others, but expect to stay at that level unless you’re willing to learn what all the other elements do. That’s the only way that you can grow into the leadership and turn it into a full career. Because it is very rewarding, very challenging and there’s going to be lots of room in this industry coming up.” —Jim Gillespie

Takeaways:
  • Maintenance is the core of the supply chain

  • Cross-functional team management is paramount to this position

  • A military background is not necessary to work on military grade products

  • To grow into a leader, you must master your area of expertise, then learn about all of your colleagues’ areas of expertise



Supply Chain Management

Pierre Massicotte
Senior Vice President, Operations
L’Oréal Canada



Takeaways:
  • Supply Chain Management plays a strategic role in the distribution of consumer cosmetics

  • Productivity drives competitiveness (obvious)

  • Many ingredients are imported, providing opportunities for those with logistics and customs backgrounds

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