Breaking News: Generating Discussions of Transportation and Logistics Topics

Guest Post by Dr. Kandis Y. Wyatt, PMP, adjunct professor at American Public University

Lively discussions are an important way to advance the logistics professions. These conversations can generate new thinking, reinforce important concepts, and help both skilled professionals and those learning about the industry to learn new approaches.

It is often a challenge to facilitate and encourage discussions among professionals and students but many people like to discuss current events, so starting with current events can be just the way to spark interaction. Here’s an example of how to provide relevant transportation and reverse logistics topics in your next meeting or in the classroom.

Dec. 15, 2014 was predicted to be the busiest anticipated shipping day for US-based companies Fed Ex and the U.S. Postal Service. Successfully managing that volume required the application of transportation and reverse logistics skills.

Here are some great articles to share to initiate a discussion:

1. CNN Money: Busiest Day of the season for Fed Ex and the U.S. Postal Service: http://money.cnn.com/2014/12/15/news/economy/holiday-busiest-delivery-fedex/
2. Logistics of the Holiday Season: http://www.derbyllc.com/logistics-of-the-holiday-season/
3. Supply Chain Management during the Holidays: http://money.cnn.com/2014/12/15/news/economy/holiday-busiest-delivery-fedex/

When trying to facilitate productive discussions, remember these tips:

• Ask open ended questions
• Relate recent articles to work being done or classroom reading and assignments
• Help the student provide a practical application of the information
• Encourage students to direct the discussion by asking questions to fellow students

 About the Author          

Dr. Kandis Y. Wyatt, PMP is an adjunct professor at American Public University and has 20 years of experience managing projects that specialize in supply chain management.

Risky Business: Global Expansion

Guest Post By Keith Wade, Associate Professor of Transportation & Logistics at American Public University

Part of the strategy of most businesses is to expand global operations. The world is a global village and expansions to various parts of the world bring goods and services closer to the consumers. From a business perspective, expansion is something that every business must consider as a way of increasing the customer base. While many businesses have succeeded, there are many risks that businesses expose themselves to in the process.

Encountering New Markets

Although expansions are mainly aimed at widening the reach of businesses, sometimes there are unintended expenses that can spoil the whole idea of increasing revenue margins. A common issue is increased cost of supply chain management. New markets mean new routes for manufactured products that come with complexities that result in high freight costs. For example, piracy in the East African region makes it expensive to transport products to East and South Africa. For businesses targeting this region of the world, the risks of expansion are clear.

Even when the products have reached their destinations, there are the risks of acceptance. Sometimes products have to be redesigned to meet the local demands and tastes.

Risks of Trading Abroad

Most importantly, international expansions expose businesses to foreign exchange risks. Going abroad means working in local currencies, which means a lot of currency exchange. Foreign exchange poses the risk that the value of an asset or liability will be altered because of a change in exchange rates. While there are many currency related risks, the most common is translation exposure. This is the risk that the translation of the value of foreign-currency-denominated assets is affected by exchange rate changes.

From a logistic point of view, international business expansions also lead to cargo shrinkage--the loss of products between the manufacturing point or point of purchase and the point of sale. In cargo transportation, the most common cause of shrinkage is theft by the cargo transportation or customs officials. While cargo shrinkage is possible in every means of transport, the problem appears to be most prevalent in international transportation.

Looking for better business opportunities abroad is a good thing; it increases the opportunities for revenues. However, in going international, businesses must understand and manage the risks of global operations.

About the Author

Dr. Keith A. Wade is an Associate Professor of Transportation & Logistics with American Public University.  He teaches courses in Supply Chain and Logistics Management.  Prior to working full time in teaching, Dr. Wade worked in the Logistics field for over 15 years. He was most recent a Director of Supply Chain & Logistics Management for Ford Motor Company in which he managed logistics responsibilities all over the world. Dr. Wade earned a PhD from Michigan State University in Supply Chain Management, an MBA from the University of Detroit, and a BSBA from Oakland University. Dr. Wade is a Six Sigma Black Belt.

Are You a Witness to Human Trafficking?

Guest post by Dr. Stacey Little, program director, Transportation and Logistics Management at American Public University

Human Trafficking is a heinous crime that can sometimes go unnoticed.  Human traffickers often move their victims from place to place. This activity places workers in the transportation industry in a unique position to help identify and report possible victims.

Lack of awareness is a huge challenge in the fight against human trafficking.  As a result, the transportation industry has taken several initiatives to increase awareness of this crime.

One highly involved organization is Truckers Against Trafficking (TAT). This national network of drivers has banned together to disseminate educational information cards to help drivers identify human trafficking activity or victims.  Organizations like TAT have made great strides in educating and increasing awareness of Human Trafficking.

Find out more in my post, "Transportation’s Critical Role in Fighting Human Trafficking."