Although many outsourcing firms are becoming increasingly dependent on logistics service providers (LSP) to initiate innovations and logistics solutions, too many are still attempting to commoditize LSP services, concentrating primarily on price.
Every fall for the past 26 years, Dr. John Langley of Penn State has published the annual Third-Party Logistics Study. I have followed this report since the very beginning, and have always found it to be a comprehensive analysis of current relationships between Logistics Service Providers (LSP) and their customers. This year’s analysis, sponsored by Penn State, Penske, and NTT Data, was no exception, and once again reflected on the impact of Covid-19 on the supply chain.
The past 18 months or so have been trying ones for supply chain managers all over the world. The pandemic has created problems unlike any most of us have ever seen. Although the recently developed vaccines have been a God-send, the virus and its variants are still present and probably will be for the foreseeable future. This is particularly true in the South where vaccination rates are lower than in the rest of the country.
On August 10, much to the delight of the farm, business, and labor interests, as well as most of the general population, the Senate passed the long-awaited and painfully negotiated Infrastructure Investment and Jobs Act. American Trucking Associations president Chris Spear called it a “groundbreaking step toward revitalizing America’s decaying roads and bridges.”
On June 24, the Council of Logistics Management Professionals (CSCMP) released the “32nd Annual State of Logistics” report. This year’s report was entitled, “Change of Plans”, a reflection on the conditions surrounding the Covid-19 pandemic.
When it comes to strategic planning for logistics outsourcing, it’s conceivable that Dilbert could do the work of 20 people, in spite of its growth, increased sophistication, and impact on a business’s supply chain operations, a surprising number of companies still undertake outsourcing and provider selection with little regard for overall logistics strategy.
In Washington, the discussion about infrastructure improvement continues with no apparent agreement in sight. The major concern of most Americans involves the conditions of our roads and bridges, but President Biden’s $2.3 trillion American Jobs Plan provides only $115 billion for those components of our infrastructure, while the $568 billion Republican counterproposals allocate $299 billion.
In our last blog, we outlined President Biden’s plans for infrastructure improvement. Summarized, his proposed legislation would provide for $2.3 trillion, spent over an 8–year period, creating millions of new jobs. However, only $115 billion would be spent on roads and bridges which are a concern to almost everyone.
President Obama tried it. President Trump promised it. Now President Biden is taking a very aggressive stance on infrastructure improvement. Hopefully, he can accomplish what no president since Dwight Eisenhower has been able to do – get Congressional approval, design, implement, and pay for a major improvement in the country’s infrastructure.
Last month, I received an e-mail promoting a seminar on the use of blogs, social networking sites, gated communities, and microsites in consulting. Once again, I was moved to ask myself, “Doesn’t anyone talk anymore?”