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The east coast gas crisis is not a hiccup. It’s a warning.

Is anybody going to learn their lesson?

The east coast gas crisis is not a hiccup. It’s a warning.

“The drivers stuck in gas lines after the Colonial Pipeline shutdown, the Texans freezing in their homes after the February grid collapse, the Californians sweltering through their own power failures last summer — all were paying the unintended and unexpected price of efficiency,” writes Will Englund of the Washington Post on April 16.  

The Post goes on, “Four big oil refineries have shut down in Pennsylvania and New Jersey since 2010 because it’s cheaper to bring in gasoline by pipeline from the Gulf Coast, 1,500 miles away — as long as that pipeline stays in operation.”

It’s something we all need to think about.  Resilience matters.

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5 scary thoughts about disasters and disaster relief

It’s almost Halloween, and if your town is anything like mine, your neighbors’ yards are already littered with ghosts, witches and tombstones. 

Clearly some of us enjoy giving other people a scare. Just as clearly, some of us enjoy getting a scare.  

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Keep a clear focus on enterprise priorities.

"Spot solutions are needed to help a company get through a sudden shock, but the only way to ensure agility and resilience going forward is by addressing systemic issues in a way that is intentional and focused on the long term and brings together clear priorities, well-designed repeatable processes, robust governance, and a skilled team." - Harvard Business Review

From Low Cost to Best Cost

An article published by McKinsey & Co. in August observed, “over the past year, many companies have made structural changes to their supply networks by implementing dual or multiple sourcing strategies for critical materials and moving from global to regional networks.”

This structural change pivots on the difference between low cost and best cost.  The shift extends through Tier 1 Suppliers through lower tiers.  The intent of a low-cost supply chain strategy is to present a low price to customers. A best-cost strategy adds factors beyond cost to the equation, like risk, lead time, and responsiveness.

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Digital Freight Execution: Making Win-Win Connections

As global supply chains become increasingly complicated, there are now more digital connections and business collaborations in the global shipping industry than ever before. Holding freight data in opaque, disconnected silos and relying on outdated methods of communication is not just inefficient - it’s unsustainable.

The global supply chain is no longer a linear process. Whereas before it was simply about moving freight from point A to B, now there is now a multitude of options for transporting that freight, each with its own unique set of capabilities and constraints. 

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No wonder we are short of labor in the supply chain.

America’s posture in world trade, and the underlying supply chains, are more than robust.  According to the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, the United States balance of trade in goods and services deficit dropped to $70.6 billion in July.  Exports hit the highest level in real dollars since tracking began over 70 years ago.  During the recovery from Covid,, with reshoring and shifting market demands, are holding imports flat..

This success is happening despite the global disruption caused by Ukraine.  Expect our labor shortages to continue.  Expect wage pressure to continue.  Expect inflationary pressures across the supply chain to continue.

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