Elemica recommends adapting to a market driven supply chain
To be more competitive, companies need to take a customer centric ‘outside-in’ view, according to supply chain optimisation specialists Elemica,
According to Elemica, companies will want to take steps beyond their four walls to better support the varied and specific needs of their individual customers, while also ensuring their supplier and logistics service provider strategies best support this objective.
“Market driven supply chains are designed around the needs of the customer and emphasize demand sensing, flexibility, and driving intelligent, fast responses,” says Rich Katz, Chief Technology Officer for Elemica.
“An outside-in approach allows our customers to eliminate lost sales because they may not have otherwise been able to properly anticipate demand. It also helps maximize their profits by keeping them from carrying too much inventory.”
Market driven supply chains are real game changers. Business is transformed when manufacturers, and all their trading partners, collectively sense and properly respond to supply and demand changes in the market. When visibility across the entire supply chain is realized, a company better understands where and when to source their raw materials, where to store their inventories, mitigate delays in shipments, and optimally scale production to meet real market demand.
“To achieve the competitive advantage a market driven supply chain offers, businesses must automate customer-driven processes and scale them across as many trading partners as possible, creating a massive network of partners with whom to conduct business,” adds Rich Katz. “An outside-in supply chain means a business will be proactive instead of reactive, better respond to market volatility, and have total flexibility to meet the specific needs of each individual customer of theirs.”
Elon Musk's Boring Co. planning wider tunnels for freight
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.
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