Border Politics Disrupt Mexico-U.S. Supply Chain Movements

Border Politics Disrupt Mexico-U.S. Supply Chain Movements

April 20, 2019

President Trump’s threat to close the Southern border has disrupted supply chains as delays are building for commercial vehicles crossing the border, especially northbound.

Delays of ten hours above normal are reported, and the threat of a total closure is accelerating efforts by shippers in Mexico to get goods loaded and moving.  This, in turn, accelerates the congestion at the border, made yet worse by the reassignment of 750 Customs and Border Protection Agents.

The threat of a border closure- despite assurances it is not imminent- is intended to pressure Mexico to do more to constrain the flow of refugees to the border.  At the same time, the re-negotiated NAFTA deal is pending a House vote, adding further to uncertainty.


Video Spotlight: Ripple effects of a potential Mexico border shutdown


This post is based on the Industry Week article, Mexico Border Wait Times Spike, by Michael Hirtzer and Thomas Black, April 8, 2019, and the YouTube video, Ripple effects of a potential Mexico border shutdown, by USA Today, April 3, 2019. Image source: Rouzes/Getty Images

Discussion Questions:

1. What uncertainties are shippers facing on cross border movements between the U.S. and Mexico?

Guidance: The Continue reading

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What’s Your Amazon Day?

What’s Your Amazon Day?

March 24, 2019

Slower delivery, fewer packages.  Is it a step back in time or Amazon’s newest innovation for reducing packaging waste and delivery costs?

Bucking current trends for quick delivery including the success of its own Amazon Prime service, the company is now asking Prime customers in its test market to choose one day each week for consolidated deliveries.

“Amazon Day” is Amazon’s latest attempt to slow the deluge of demand for two-day deliveries and to reduce the number of boxes shipped to households.  Amazon Prime subscribers can order throughout the week up to two days before their preferred delivery day, and all the orders will be shipped out at once.


Video Spotlight: Amazon to let Prime members choose what day of the week to deliver


This post is based on the Seattle Times article, Amazon aims to save packaging, reduce emissions with designated delivery day, by Benjamin Romano, February 28, 2019; the Fortune article, “Amazon Day” Shipping Option Aims to Reduce Deliveries and CO2 Emissions, by Grace Dobush, March 1, 2019; and the YouTube video, Amazon to let Prime members choose what day of the week to deliver, by Good Morning America, March 1, 2019. Continue reading

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Model 3 Output Is Not Tesla’s Only Problem

Model 3 Output Is Not Tesla’s Only Problem

February 22, 2019

Since the fourth quarter of 2018, Tesla has successfully ramped up production of the Model 3 to gradually reduce the accumulated backorders for this “affordable” EV. However, as new owners experience minor accidents or mechanical problems that require service, too often the needed parts can take months to arrive.

Customer complaints are rising about these delays and flaws in newly delivered vehicles.  Elon Musk commented on the poor logistics of parts management, but the problem goes deeper since the number of service centers is limited to Tesla’s own network of 85 locations.

It is significant that Consumer Reports latest ratings position Tesla at 27th of 29 brands evaluated, a slide of six spots.


Video Spotlight: Top 2 most common supply chain problems


This post is based on the Breitbart article, Tesla is Failing to Service Its Customers’ Vehicles, by Lucas Nolan, February 11, 2019; the Wall Street Journal article, Tesla is Cranking Out Model 3s- Now It Has to Service Them, by Tim Higgins, February 10, 2019; and the YouTube video, Gerard Schouten shares top 2 most common supply chain problems, by Supply Chain Secrets, August 29, 2017. Image source: Shutterstock / Joey Continue reading

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