It’s All About Location, Location, Location

It’s All About Location, Location, Location

January 5, 2019
Corinne M. Karuppan, Ph.D.

How important is access to public transportation in corporate location decisions?

According to this article, access to public transportation is now a major factor as large corporations, including Amazon, McDonalds, and Caterpillar, attempt to attract and retain employees in a tight labor market.

It is especially a factor for Millennials, who have multiple job prospects and often prefer not to own a car — or cannot afford one.

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This post is based on the NPR article, ‘Talent Wants Transit’: Companies Near Transportation Gaining the Upper Hand, by D. Schaper, November 29, 2018. Image source: egdigital/Getty Images.

Discussion Questions:

1. Why do businesses prefer locations with easy access to public transportation? Is it true for all types of businesses?

Guidance: The article identifies the primary reason as attracting and retaining employees. It is important for businesses to have easy access to their markets as well. This is why the service sector typically enjoys strong economic activity in city areas with public transportation stations and stops.

As an added bonus, large cities with extensive public transportation options often have access to major airports and highways, Continue reading →

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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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