Canadian Sand in LA Highrises

Canadian Sand in LA Highrises

Article Title: Why Builders of Big L.A. Projects Are Making Concrete with Gravel and Sand Shipped from Canada

Author of Article: J. R. Koren

Date of article: November 4, 2017

Source URL: http://www.latimes.com/business/la-fi-canadian-gravel-20171104-htmlstory.html

For construction projects in the Los Angeles area, it is now cheaper to import the gravel and sand – known as aggregate – from Canada than to ship it from local quarries.

The aggregate travels one mile on conveyor belts from a quarry in Vancouver Island to a floating terminal on the coast. Ships then carry the materials 1,450 miles away to the Port of Long Beach. The materials are transported to a terminal on a conveyor belt. From there, they will be loaded into trucks to reach the construction sites.

The transportation cost is $16 compared to the $22.75 it would cost to truck a ton of materials from a local quarry to downtown L.A. These lower transportation costs, better quality of materials, and local residents’ reluctance to have quarry-related work and traffic nearby have contributed to increasing imports despite an abundant domestic supply.

Discussion Questions
1. Why is it cheaper to import the aggregate from Canada?

Guidance: Discuss the lower Continue reading

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The Logistics of Direct-to-Consumer

The Logistics of Direct-to-Consumer

November 22, 2017

Article Title: Making eCommerce Logistics Fulfillment Channels Work in Today’s Direct-to-Consumer Market

Author of Article: Jagged Peak

Date of article: November 13, 2017

Source URL: http://www.supplychain247.com/article/making_logistics_work_in_todays_direct_to_consumer_market/news

This article describes the direct-to-consumer (D2C) market development.  Established companies will need to develop new D2C distribution channels without upsetting the retail distribution relationships.  Start-up firms must develop the logistics systems to meet growth in the D2C market.  All firms must develop customer relationships that add value in order to compete in the D2C marketplace.

Discussion Questions
1. In the D2C market, what are “virtual service relationship” service delivery considerations for an established firm?

Guidance: Review service delivery design considerations and customer relationship management. Students could then develop a service-blueprint to identify areas to add value to the customer relationship and to address service recovery systematically.

2. What are the logistics design considerations for a start-up firm entering the D2C market? How would international sales change the logistics planning?

Guidance: Students may develop a value stream map of a proposed lean supply chain for a start-up firm.  It may be helpful to have the students choose a new product or find a small firm in a Continue reading

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