Archives for January 2016

Don’t be stupid.

By Steve Geary | 01/29/2016 | 5:09 AM

“Duty of Care” is a legal term for a shipper’s responsibility that I always keep in my mind.  When I was a kid, my mother taught it to me.  She used different words, but she got the point across.

“Mom, do I really need the winter coat?”

“Mom, can I play with the snake?”

“Mom, can I jump off the garage?”

Mom would tell me, over and over, “Don’t be stupid.”

I’ve carried Mom’s lesson forward in my professional life, and when I make a shipment I really try not to be stupid.  The “Duty of Care” standard requires shippers to exercise intelligent and reasonable judgment.  For a shipment of paper clips, the duty of care is a pretty low bar.  For more important items, the bar is raised.

I’ve rented cars, I’ve hired couriers, I’ve leased dedicated trucks, and I’ve bought airplane tickets just to put a critical shipment in my carry-on luggage.  In extreme cases, I’ve even chartered airplanes for critical and time sensitive international moves.  When shipping something critical or sensitive I also use a system of checks and balances -and in some cases someone to check the checkers- to sure I live up to the “Duty of Care” standard.

On January 7, 2016, the Wall Street Journal reported, “An inert U.S. Hellfire missile sent to Europe for training purposes was wrongly shipped from there to Cuba in 2014, said people familiar with the matter, a loss of sensitive military technology that ranks among the worst-known incidents of its kind.”

The article continues, “Several of those familiar with the case said the loss of the Hellfire missile is the worst example they can recall of the kind of missteps that can occur in international shipping of sensitive military technology. While there are instances in which sensitive technology ends up getting lost in transit, it is virtually unheard of for such a shipment to end up in a sanctioned country like Cuba, according to industry experts.”

Unsurprisingly, the US government declines comment.  Mom isn’t pleased about that.

A lesson I learned a long time ago is to hope for the best, plan for the worst, and always employ preventive measures appropriate for the circumstance.  I keep hoping the military will learn the lesson, but they are creative.

Logistics lesson 101:  Listen to Mom:  don’t be stupid.

The most important infrastructure initiative you’ve never heard of . . .

By Steve Geary | 01/04/2016 | 4:25 PM

Defense interests, economic interests, and international trade are linked.  Participation in institutions like the World Bank and the Asian Development Bank has been an important catalyst for growth in the US economy, driving exports, while concurrently protecting national interests.

According to data published by the World Bank, US exports as a share of Gross National Product grew from about 9% in the late eighties to about 13.5% in 2013.  A lot of people in the United States rely on international trade for their livelihood.

On December 25, 2015 Santa Claus left the world a present under the tree.  With $100 billion in initial funding and 57 countries participating, the Asian Infrastructure Investment Bank (AIIB) opened its doors.  China is the biggest shareholder, holding 30%.  The United Kingdom, Germany, France, Russia, Saudi Arabia, the United Arab Emirates, Australia, and India are among the founding members.

The United States is not participating.

The AIIB is seeking to spur development along the ancient Silk Road, working to revitalize the overland trade route between Europe and China.  This is part of a larger initiative championed by the Chinese government and China’s Premier Xi Jinping called the “Silk Road Economic Belt.”

Anybody who has worked in Asia – particularly central Asia - is well aware of the logistics infrastructure challenges, and China is aiming directly at the opportunity. 

AIIB member nations are participating because it is in their economic interest to do so.  According to an Australia’s Joe Hockey, formerly the country’s treasurer, “If we can build new railway lines and ports in the region, that will mean more of our product goes into those facilities.”

Perhaps the lack of participation by the United States is another example of the current administration’s doctrine of leading from behind.  Whatever the logic, it seems likely that the lack of US participation will cost American shippers and exporters.

The opinions expressed herein are those solely of the participants, and do not necessarily represent the views of Agile Business Media, LLC., its properties or its employees.

About Mike Rudolph

Mike Rudolph

Mike Rudolph is a recently retired Marine Colonel with over 30 years of operational experience, proven leadership, and management success in the logistics and supply chain management fields. He is an executive consultant with ROSE Solutions and the Supply Chain Visions family of companies - consultancies that work throughout the government sector. Mike led the Marine Corps Supply Chain and Life Cycle Management Center at Marine Corps Logistics Command - responsible for supply chain and life cycle management of all ground weapon systems, equipment, and reparable components, the depot maintenance program, and equipment prepositioning program. During 2004-2008, he served two tours of duty in Anbar Province, Iraq as the G-4 for Multi-National Force – West, supporting all combat operations and coalition efforts to revitalize Iraqi economic development and stability. Mike's efforts were recognized with the Bronze Star for his first tour and the Legion of Merit for his second. He was widely recognized as a visionary and innovator in the Marine Corps logistics community.


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