May 17, 2020

Bailey utilises third party logistics to expands across America

Reno distribution center
Bailey International
3PL
logisti
Freddie Pierce
2 min
hydraulic_cylinders_cad_drawing.jpg
By utilising third-party logistics provider (3PL) Reno Distribution, Bailey International LLC will be able to provide cost-savings to over 4,400 curren...

By utilising third-party logistics provider (3PL) Reno Distribution, Bailey International LLC will be able to provide cost-savings to over 4,400 current Western customers and over 25,000 potential customers.  

Bailey’s Chief Financial Officer (CFO), Steve Boyack stated:

“As a business, you are always looking for ways to grow both organically and acquisitively. I think that using a 3PL is a hybrid of both. We are not acquiring, but we are able to better support our current customers and gain a whole new customer footprint simply because we have a new logistics provider on the West Coast.”

Bailey’s Chief Executive Officer (CEO), Kevin Bailey commented how Reno provides a strategic, logistical advantage for both Bailey and its customers by offering substantial time-savings:

“If a customer calls an order in by 3pm (PST), we will ship that order the same day. With the proximity of the Reno location to the West Coast, most every customer on the West Coast will receive that order through standard shipping methods in just one or two business days, which is just a phenomenal improvement from currently shipping from Knoxville to the West Coast.”

Time-savings can reduce both manufacturing lead times and down-time, which in turn improves the value proposition of Bailey’s products. Substantial cost-savings will be also benefit from Reno fulfilment.

Bailey continued:

“Customers in the Western 11 States can save as much as 50 percent in freight cost by having their orders shipped from Reno versus Knoxville. Since freight comes right off your Profit & Loss, if our customers now save $500 in freight costs, then they just improved their profitability by $500.”

Over the next several weeks, Bailey will send more than 50,000 products to the Reno location, including all of the most popular cylinders, valves, pumps, motors, power units, bearings and fluid conditioning products.

More than 1,500 SKUs will be available for purchase from the Reno location, with the West Coast set-up due to begin shipping from 1 July, 2013 – Bailey will also be extending its service hours to 6pm (PST) from 24 June, 2013.

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Jun 21, 2021

Elon Musk's Boring Co. planning wider tunnels for freight

BoringCompany
supplychain
freight
elonmusk
2 min
Elon Musk’s tunnelling firm plans underground freight tunnels with shipping containers moved on “battery-powered freight carriers”, according to reports

Elon Musk’s drilling outfit The Boring Company could be shifting its focus towards subterranean freight and logistics solutions, according to reports. 

A Boring Co. pitch deck seen and shared by Bloomberg depicts plans to construct wider tunnels designed to accommodate shipping containers. 

Founded by Tesla CEO Musk in 2016, the company initially stated its mission was to offer safer, faster point-to-point transport for people, particularly in cities plagued by traffic congestion. It also planned longer tunnels to ferry passengers between popular destinations across the US. 

The Boring Co. completed its first commercial project earlier this year in April. The 1.7m tunnel system is designed to move professionals between convention centres in Las Vegas using Tesla EVs. It says the Las Vegas Convention Centre Loop can cut travel time between venues from 45 minutes to just two. 

 

Boring Co.'s new freight tunnels

The Boring Co.'s new tunnel designs would allow freight to be transported on purpose built platforms, labelled as “battery-powered freight carriers”. The document shows that, though the containers could technically fit within its current 12-foot tunnels, wider tunnels would be more efficient. Designs for a new tunnel, 21 feet in diameter, show that they can comfortably accommodate two containers side-by-side, with a one-foot gap between them.

The Boring Co.’s new drilling machine, dubbed Prufrock, can tunnel at a rate of one mile per week, which is six times faster than its previous machine, and is designed to ‘porpoise’ - mimicking the marine animal by ‘diving’ below ground and reemerging once the tunnel is complete. 

Tesla’s supply chain woes 

Tesla is facing its own supply chain and logistic issues. The EV manufacturer has raised the price of its vehicles, with CEO Musk confirming the incremental hike was a result of “major supply chain pressure”. Musk replied to a disgruntled Twitter user, confused as to why prices were rising while features were being removed from the cars, saying the “raw materials especially” were a big issue. 

Elon Musk Tweet

Car manufacturing continues to be one of the industries hit hardest by a global shortage in semiconductor chips. While China’s chip manufacturing levels hit an all-time high in May, and the US is proposing a 25% tax credit for chip manufacturers, demand still outstrips supply. Automakers including Volkswagen and Audi have again said they expect reduced vehicle output in the next quarter due to a lack of semiconductors, with more factory downtime likely
 

Top Image credit: The Boring Company / @boringcompany

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