Monday, February 21, 2005

IndustryWeek : Cargo Crunch!

An Industry Week article about the impact of increased imports on the logistics for US companies.
This is a classic systems problem. The US manufacturers have to look at the interconnections between their inventory levels, delivery schedules, costs, lead-times and a bunch of other factors.
It talks about some companies that were hit hard by the strike and delays at the ports of LA and Long Beach last year. I can picture the workers in the final assembly area sitting around with nothing to do talking about the genius who decided to save a few pennies by sourcing stuff from China. Oh Yeah! We're really saving money now!
There are some interesting points in the article. Because of the shipping uncertainty some manufacturers are moving to suppliers back in the US. Some would see this as a good thing. I wonder how many jobs were really affected?

IndustryWeek : Cargo Crunch!


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