Looking Both Ways The Evolution and Cyclical Nature of Expediting

[chillout]

This post of Looking Both Ways will take a look at the history of Expediting. We'll look at ways the industry has evolved and how in some ways it repeats itself. One thing is for certain – few things remain constant in this hurry up to wait, up and down segment of the trucking industry.

History

Expediting came as an alternative to companies storing large inventories of parts or product. In the eighties and early 1990's some manufacturers – particularly the automotive industries – discovered cost savings with Just in Time deliveries or JIT. Parts would be delivered to manufacturing concerns as those parts were needed.

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[Moot]

Great article John. The Just In Time business model originated in Japan. The bean counters in the U.S. auto industry thought it was a great way to reduce costs. What they failed to realize was the geographical size difference of North America compared to Japan.

 

[scottm4211]

Great article John. The Just In Time business model originated in Japan. The bean counters in the U.S. auto industry thought it was a great way to reduce costs. What they failed to realize was the geographical size difference of North America compared to Japan.

Very true. When I was at a Toyota plant in Japan in 1991 straight trucks carrying engines would deliver from across the road to the assembly area. Almost all the parts suppliers were in the same area.

 

[Moot]

Ford has a huge plant somewhere in South America where most of the suppliers are on site.

 

[Turtle]

Ford has a huge plant somewhere in South America where most of the suppliers are on site.

The Toyota plant in San Antonio is mostly that way, with more on-site suppliers to come. The Kia plant in Alabama is mostly like that.

 

[Moot]

Ford plant Camacari, Brazil:

 

[OntarioVanMan]

Not bad..BUT missed a couple points of importance tho IMO...
Rates....may ebb and flow is true...IF one is getting % pay...Those stuck at carriers like PTL, Panther, or EPO will never see this ebb and flow....not once in 16 years has the rate increased for the flat rate carriers...it has always been decreased...

Shippers and customers....have gotten more electronic and smarter aware of rates.....Now they don't just shout out..."Get me a truck in here"....now they communicate more with each other...Do you really need this tomorrow or can you wait a day and the rate will be 50% cheaper?"