Uber Freight Provides Capacity in Tight Market

Uber Freight Provides Capacity in Tight Market

December 17, 2018
David Little, Ph.D.

Land O’Lakes has partnered with Uber Freight, a service from Uber, to gain transportation capacity at potentially better prices.

The spot market for additional transportation has been increasingly tightened due to multiple factors such as driver shortages and increased economic demand for goods.  The result has been an upward pressure on transportation carrier prices over the last 18 months when using traditional transportation brokers.

By using technology via Uber Freight, the company has been able to secure spot transportation capacity at reduced prices.

This post is based on the Logistics Management article, Land O’Lakes lock in Texas-based capacity, by Jeff Berman, November 6, 2018. Image source: Shutterstock / Chesky.

Discussion Questions:

1. Will success with Uber Freight displace the traditional broker model? Why or why not?

Guidance: Include capacity planning in the discussion. There’s a need for long-term capacity sourced at a reduced price and the addition of short-term capacity to handle immediate demand through Uber Freight.  The instructor could introduce the concept of read/react as a sourcing strategy as applied to transportation capacity.

2. Could Uber Freight be applied to last mile shipping?

Guidance: Students may recognize that last mile shipping could be performed Continue reading →

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UPS’s Brown Friday

UPS’s Brown Friday

November 19, 2018
Ross L. Fink, Ph.D.

On October 19, 2018, UPS held job fairs at over 170 locations to attract seasonal hires. In anticipation of the holiday buying season, UPS plans to hire 100,000 seasonal workers.   In what UPS is calling “Brown Friday,” they hope to hire 40,000 seasonal workers in one day.

Video Spotlight: UPS’s ‘Brown Friday’ national hiring day

This post is based on the WFSB news story, ‘Brown Friday’ Underway As UPS Looks To Hire Thousands of Seasonal Employees, by Rob Polansky, October 19, 2018, and the YouTube video, UPS’s ‘Brown Friday’ national hiring day, by WTHR, October 19, 2018.  Image source: Stockbyte/Superstock.

Discussion Questions:

1. What is the best way for UPS to manage the national hiring day event?

Guidance: Project management would be the best approach to handle this event.  It is complicated by having over 170 locations.  It’s a good opportunity to discuss how to plan such an event using project management techniques.

2. What processes must be in place for this event?

Guidance: Although UPS hires seasonal workers every year, processing over 40,000 applications efficiently will take some planning.  Applications need to be completed correctly, information Continue reading →

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CostCo’s Farm-To-Table Rotisserie Chicken

CostCo’s Farm-To-Table Rotisserie Chicken

November 12, 2018
Anita Lee-Post, Ph.D.

Costco is building a farm-to-table production system in Fremont, Nebraska, to manage both the supply and demand of its rotisserie chickens.

About 100 chicken farmers will sign a 15-year contract to raise enough chickens suited for the rotisserie.  Farmers are vertically integrated with Costco’s production system that consists of a processing plant, hatchery, and feed mill.

The production system can process two million chickens per week at full capacity, more than enough to meet Costco’s annual demand of 60 million rotisserie chickens.

This post is based on the NPR article, Costco Builds Nebraska Supply Chain For Its $5 Rotisserie Chickens, by Grant Gerloc, October 22, 2018.  Image source: moodboard/Getty Images.

Discussion Question:

1.  What are the operational advantages of Costco’s farm-to-table production system for rotisserie chickens?

Guidance: Costco will be able to ensure a steady supply of chickens that are consistent in quality and size for the rotisserie.  Costco can also better control its supply and demand of rotisserie chicken

2. What is the significance of the supply chain integration for Costco’s rotisserie chicken?

Guidance: With a vertically integrated rotisserie chicken supply chain, enough chickens of the suitable size will be Continue reading →

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