Manufacturers are getting stressed by demand. A great example is Boeing which is building 737s at rates that its engine supplier is having difficulty matching. Partially finished 737s are piling up, and Boeing is taking the drastic measure of installing temporary engines and flying the planes to a nearby field. They then take the engines off and repeat the process. Boeing is not alone…many factories, by design or because manufacturing space has eaten into the warehouse, lack space to store inventory as it comes off the production line.
To help them avoid double handling and to also maximize truck utilization, we have developed advanced technology and processes to optimize the process… call (615) 791-0865.
I got criticized for targeting Hormel and Kellogg’s in last week’s email. In truth, the list of CEOs that have told Wall Street that profits were hurt by increasing transportation costs is a very long one. The key points are:
- These same CEOs aren’t saying what their companies are doing to mitigate freight costs (I suspect many CEOs don’t know)
- The implicit assumption is that there is nothing that can be done…which is wrong as there are ways to cut costs.