Continuing our sector review
Industry Focus: Transportation and Logistics: Same Day Delivery
Good morning. This month we are looking at “transportation” as our sector of interest. What exactly do we mean by the term “transportation sector”? I define transportation as movement of an item of freight some distance using a means that physically moves said item from an origin to a desired destination. There are numerous, major segments, of this sector that will (or could be) facing major disruptions due to technological or political developments. For the curious see “strategy unit” discussion below.
In recent years there has been significant growth in online purchasing. Covid has exponentially increased the volume of orders. Sellers now must ship many more orders to many more destinations a shift away from large orders to retail establishments.
For our discussion, we will “ZOOM IN” (no pun intended) on the implications for our clients of the growth in transport of same day deliveries. What does it take to accomplish same day deliveries and what are the economics of delivering in this timeframe.
We hope you Zoom with us for this session. It should be a lively and stimulating discussion as this area is going to be “TRANSFORMING” for a long time.
Facilitator: Richard Bullock
Join us at 7:30am for for chatting and getting to know you; meeting at 7:45am https://www.zoom.us/j/534-649-516
For the curious - “Strategy Unit”
For the sake of curiosity I made a cursory look at the numbers of potential “strategy units” that could exist for a potential transportation businesses moving a “freight item” by a “means of moving” that item.
Freight items at a macro level are seen as: persons, new goods, waste/used goods and messages. One level down, call it a group, we can see persons as: individuals, groups, families; and goods as: new goods-discrete, new goods-bulk/solids, new goods-bulk/liquids, new goods-bulk/gases, waste/used goods-discrete, waste/used goods-liquids, waste/used goods-slurries, waste/ used goods/gases; and messages as: messages-analog, messages-digital audio, messages-visual, messages-digital audio/visual. We could continue drilling down, but no need for that today. At the macro level we have 4 items. Looking at the group level we find 24 is a reasonable number of groups to consider.
Means of moving freight items are seen at the macro level as: bicycles, automobiles, trucks, trains, pipelines, aircraft, ships, barges, signal carrying networks. When extending these down to groups 34 groups emerged.
The number of cells formed in a matrix of the intersections the 24 items x 34 means is 816. Clearly every one of these is not a viable business or even a business opportunity. My guess is 160 to 240 of them are functioning “transportation” businesses of one form or another. There are numerous segments of this sector facing current challenges (i.e. passenger airlines), or potential disruptions due to technological or political developments.
This is one of our three monthly breakfast meetings.
We offer three locations throughout the Greater Chicago Area
First Friday ABC - Northbrook @ Max & Benny's
Second Friday ABC - South Barrington @ Panera in the Arboretum
Third Friday ABC - OakBrook @ Corner Bakery in OakBrook Mall
Our ABC meetings are interactive discussions, so come prepared to participate. Members engage in high level networking with colleagues to perfect our craft and build stronger relationships. We provide insights to help you grow your business and enhance its success. Feel free to invite a guest, especially a prospective IMC member, to attend.
There is no charge to attend our meeting - each person is responsible for the cost of your own breakfast.