As an industry, we should begin thinking this year about building a more robust supply chain network that isn’t as easily disrupted by outside influences. We can do better at connecting the dots and sequentially linking our ports, logistics parks, distribution centers, warehouses, intermodal hubs and manufacturers to create a seamless supply chain network. And it must include strategies and redundancies that allow it to operate regardless of outside influences.
Our current system runs relatively smoothly. An order gets placed, the goods are produced, the cargo arrives, gets loaded and reaches its destination on time, and everyone seems happy. But there is little wiggle-room for serious disruption, and that is what the system should focus on. Consider these recent issues: continued instability in fuel prices, labor unrest, geopolitical instability, fluctuating currency values and the lingering economic crisis. Now ask yourself if the network you use to send or receive goods is robust enough to deal with one or more of these issues on a prolonged basis? And, if there is a major disruption, is there another way?
Perhaps a larger national strategy is needed, but we shouldn’t rely on the federal government. What we need is a collaborative, industrywide effort to show the economic value and necessity of improving the system, bring the disparate pieces together, create viable alternatives and strategies in the event of a disruption, and connect the dots to streamline the production and movement of goods and thereby stimulate trade.
The current system works and at times works well, but it is fragile – as highlighted by the economy – and has shown there is room for improvement. Taking an introspective look to identify better ways of connecting the dots will benefit us all in the long run.