Monday, December 1, 2014

The Biggest Innovation for Global Supply Chains: Reducing that MPG

Global supply chains move goods all across the globe many times over. A truly global supply chain will likely incorporate various modes of transportation: plane, train, ship, truck, and car. Transportation costs are often times a massive cost for organizations running global supply chains. Therefore, innovation in cheaper transportation methods will be a necessary future step for all supply chains interested in cutting costs.

With new services like Uber and Lyft looking into the delivery space, and Amazon's Drone delivery service, we see various stakeholders stepping up to meet the demand for cheaper delivery. Companies like Tesla and SpaceX are pushing other boundaries - one leading the charge into alternative fuels for mass market automobiles and the other toying with outer atmospheric travel for a quicker delivery method around the globe. One interesting source of data to support this claim is the trend of vehicle miles per gallon.
As seen above, MPG from 1975 - 1979 (5yrs) improved 2.8 MPG's. MPG from 2009 - 2013 (5yrs) improved only 1.6 MPG's. This data seems to show that transportation efficiency improvement is slowing in its traditional form. For truly innovative supply chain approaches to change transportation costs must be reduced via alternative and creative means, such as using services like Uber,  drone delivery, or outer space travel.>.


  1. Thanks for sharing such informative post. keep sharing.\
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