Re: Package delivery is just faster and cheaper, that's all
Date: 12-06-2017 - 17:02
It was my understanding that the FedEx (hub model)was copied from the US military logistics system that had evolved from WWII to Viet Nam, using central depots to consolidate shipments of numerous separate items into one conex box delivered presorted by parcel at the final destination. This eliminated unloading, warehousing, sorting and reloading separate items in theatre. Break bulk and consolidation, and the time, facilities, manpower, and the money that it costs, are reduced.
This is why Memphis exists...... This is why "hip" companies like William Sonoma located distribution in a place like that, with instant access to drop ship to customers or stores, reducing inventory costs.
Memphis also has great intermodal connections, which allow pre loaded containers to be dispatched, with each preloaded by store, with multiple stores in one container, reducing inventory costs from the "cost of goods in transit"....(capital tied up earning no returns in the form of unsold inventory).
Amazon is now driving that model with a vengeance.
Whatever gave you the idea that anyone at the Harvard Business School knew anything about transportation economics?
You should have met a couple of the "bright" bulbs I've had to work with from the Harvard Kennedy School of Government on environmental policies (who never had to take any real environmental, nor any other kind of science, math, or economics, because they were government majors) and had very strong opinions, based on having been accepted to Harvard, and thus having been admitted, having been anointed by the good lord to "rule" us poor lesser beings.