PINC: The Rise of the Digital Yard
PINC, a provider of advanced yard management systems will be hosting their 2020 State Of Yard Management Report, centred around ‘The Impact Of Digital Yard Management on Enterprise Transportation Costs and Capacity’, on Wednesday, October 28th.
The report, researched and perfected by Adrian Gonzalez, President and Analyst of Adelante SCM looks to bring clarity to key industry questions like “how important is having digital yard management capabilities in helping you achieve transportation objectives?”
And “how much do you estimate you would save annually in overall transportation costs by digitising your yard operations across the network?”
These questions are prominent in the wake of the COVID-19 pandemic, which has forced companies and manufacturers to adopt agile, flexible, and quick-response systems to ensure supply chain resilience in an increasingly volatile climate.
As the world emerges from its recent adversity, so too must the manufacturers and logistics organisations that supply the world with the goods and services that we have become accustomed to. The norms and values of yesteryear will be a part of the, seemingly, distant-past, and our supply chain stalwarts must adapt to new demands and expectations ─ it’ll be tough.
There’ll be several challenges to face with growing uncertainty among consumers and customers, unstable freight capacity, and ever-changing guidance from the government and global health bodies. There is a force fighting back against the perils of COVID-19, however. Trailer and container yards at distribution centres and manufacturing plants have been playing, and continue to play a vital role as mechanisms to expedite shipments, support corporate sustainability goals, and reduce costs, even in the face of adversity.
At the enterprise level, logistics executives are looking for ways to automatically optimise the flow of goods into and out of their facilities and to efficiently manage yard capacities, trailer pool availability, yard service providers, transportation contracts, and accessorial charges from an enterprise perspective.
"Across virtually all industries, transportation represents the lion's share of distribution costs. According to an industry-leading consulting firm, transportation costs range from 60% of total distribution costs for High Tech companies to 88% for Food & Beverage companies. Therefore, compared with transportation and warehousing costs, it is easy to see why investing in digitising yard management operations has not been a priority for CEOs, CFOs, and even supply chain executives," said Adrian Gonzalez, President of Adelante SCM and lead researcher.
"There are many factors that influence transportation costs, but there is one that many companies overlook: the link between yard management, driver detention, and freight rates."
Renowned industry analyst Adrian Gonzalez and PINC’s CEO, Matt Yearling, will review the report’s results during the online event and will bring insights into what industry-leading companies are doing to gain agility and reduce transportation costs during one of the most challenging years of the century.
Biden establishes Supply Chain Disruptions Task Force
The US government is to establish a new body with the express purpose of addressing imbalances and other supply chain concerns highlighted in a review of the sector, ordered by President Joe Biden shortly after his inauguration.
The Supply Chain Disruptions Task Force will “focus on areas where a mismatch between supply and demand has been evident,” the White House said. The division will be headed up by the Secretaries of Commerce, Transportation, and Agriculture, and will focus on housing construction, transportation, agriculture and food, and semiconductors - a drastic shortage of which has hit some of the US economy’s biggest industries in consumer technology and vehicle manufacturing.
“The Task Force will bring the full capacity of the federal government to address near-term supply/demand mismatches. It will convene stakeholders to diagnose problems and surface solutions - large and small, public or private - that could help alleviate bottlenecks and supply constraints,” the White House said.
In late February, President Biden ordered a 100 day review of the supply chain across the key areas of medicine, raw materials and agriculture, the findings of which were released this week. While the COVID-19 health crisis had a deleterious effect on the nation’s supply chain, the published assessment of findings says the root cause runs much deeper. The review concludes that “decades of underinvestment”, alongside public policy choices that favour quarterly results and short-term solutions, have left the system “fragile”.
In response, the administration aims to address four key issues head on, strengthening its position in health and medicine, sustainable and alternative energy, critical mineral mining and processing, and computer chips.
Support domestic production of critical medicines
- A syndicate of public and private entities will jointly work towards manufacturing and onshoring of essential medical suppliers, beginning with a list of 50-100 “critical drugs” defined by the Food and Drug Administration.
- The consortium will be led by the Department of Health and Human Services, which will commit an initial $60m towards the development of a “novel platform technologies to increase domestic manufacturing capacity for API”.
- The aim is to increase domestic production and reduce the reliance upon global supply chains, particularly with regards to medications in short supply.
Secure an end-to-end domestic supply chain for advanced batteries
- The Department of Energy will publish a ‘National Blueprint for Lithium Batteries’, beginning a 10 year plan to "develop a domestic lithium battery supply chain that combats the climate crisis by creating good-paying clean energy jobs across America”.
- The effort will leverage billions in funding “to finance key strategic areas of development and fill deficits in the domestic supply chain capacity”.
Invest in sustainable domestic and international production and processing of critical minerals
- An interdepartmental group will be established by the Department of Interior to identify sites where critical minerals can be produced and processed within US borders. It will collaborate with businesses, states, tribal nations and stockholders to “expand sustainable, responsible critical minerals production and processing in the United States”.
- The group will also identify where regulations may need to be updated to ensure new mining and processing “meets strong standards”.
Partner with industry, allies, and partners to address semiconductor shortages
- The Department of Commerce will increase its partnership with industry to support further investment in R&D and production of semiconductor chips. The White House says its aim will be to “facilitate information flow between semiconductor producers and suppliers and end-users”, improving transparency and data sharing.
- Enhanced relationships with foreign allies, including Japan and South Korea will also be strengthened with the express proposed of increasing chip output, promoting further investment in the sector and “to promote fair semiconductor chip allocations”.