Friday, December 29, 2006

Using Eco-Friendly Wind to Pull Cargo

I try to recycle just about everything that I discard. Even here in Vienna, where they have a very progressive recycling problem, I use it to the maximum recycling everything from pizza boxes to the plastic caps on my toothpaste. Which is why I was intrigued when I recently saw a Discovery channel documentary on how wind was used to move the giant bricks that built the pyramids of ancient Egypt. I wouldn't have believed it if you told me, but using a simple demonstration the scientists attached a massive kite to a two-ton block and it actually moved several feet. So what does this have to do with supply chains you ask? Well, coincidentally, a company called SkySails has been gaining some press attention about a recent demonstration using kites or paragliders to pull cargo containers to reduce fuel costs. The upfront costs for the equipment aren't cheap, but the savings are significant. According to SkySails the kites can generate 6,800 horsepower and reduce annual fuel costs by between 10 percent and 35 percent under normal conditions with 50 percent under extreme wind. There is another company called CargoLifter using giant hot air balloons to also move cargo all across Europe. This is real brilliance and I hope it becomes more then just an exercise.

Wednesday, December 20, 2006

Memo from S. Claus, SVP Global Gift Supply Chain

Memo from S. Claus, SVP Global Gift Supply Chain

‘Twas the run-up to Christmas, and up at the Pole
Mr. Claus was pursuing his fourth-quarter goal,
But as ‘Dear Santa’ letters came faster and faster,
He perceived an impending supply chain disaster.

"This ‘Nice’ list’s a monster – I wouldn’t complain,
But it means that our forecasts were way off again.
All my time at the workshop is spent fighting fires,
And I can’t pay my tinsel and ribbon suppliers."

"‘Cause I’m losing my shirt on alfalfa expenses,
And the Elf Local 20 won’t come to its senses.
Our sugarplum vendor’s behind on our orders,
And Customs is giving me grief at the borders."

Santa picked up a pen and he picked up this card.
“To admit I can’t manage is harder than hard,
But to let down the children would just be a crime -
I have got to deliver in full and on time!"

"So to make Christmas merry, here’s what I must do:
I’ll just have to outsource operations to you.
Thus I send this request out to you this December,
Via S.C.E.B. (of which I am a member)."

"Please keep the trees twinkling and stock up the shelves,
Since you do not depend upon livestock and elves.
You must deck all the halls and fill up all the stores,
Because Santa’s supply chain is counting on yours."

This was originally written by Aaron Franklin, Supply Chain Executive Board

Tuesday, December 05, 2006

NASA Plans to Outsource Shipping to Space

Last week I discussed the virtual future of logistics and this week my post is on the real future of logistics. An article in the December issue of Popular Mechanics writes that NASA is going to outsource the logistics of shipping water, food, clean clothes for the International Space Station. The so-called 3PLs getting the business aren't 3PLs at all, but NASA partners, SpaceX and Rocketplane Kistler, who are each getting $100M in seed money to essentially develop a transportation vehicle to deliver shipments in space. Can you imagine this senario, "Hi, this is Captain Smith of the International Space Station, we are running low on water and I was wondering were package #47382749273892 is in route"? Operator, "Hello, Captain Smith, that package is just passing the Ozone layer and should be docking at 15:00."

Is FedEx Space around the corner? Will we be seeing Brown Space Shuttle's leaving from Cape Canaveral? What do you think?