Project Selfie examined load factors used in reporting by major airlines. It turns out that there is a wide range of ways the load factor is calculated by airlines. Weight alone yields low load factors (the percent of utilization of the aircraft with respect to cargo weight). Most of the airlines use a combination of weight and size, and this is done differently for different carriers. Thus they report load factors on different bases, so they are not comparable. IATA, the industry group, wants to have a more consistent basis than weight for reporting its figures for the industry. Weight alone is not very significant.
“(Weight alone) poorly reflects how full the planes really are.”
In short they cube out before they weigh out. Packages that go by air are not very dense! This may partially explain why air freight rates are going up while load factors are not very high. So IATA has been misrepresenting capacity utilization of planes.
via IATA to review air cargo load factor calculations after Project Selfie revelations – The Loadstar
Some notes on Project selfie: Weight loadfactors a poor way of showing utilisation, Project Selfie confirms – The Loadstar
Dan Gilmore of Supply Chain Digest talks more about the 2018 version of the annual study of 3PLs by Dr John Langley. Blockchain is mentioned, but does not seem to be grabbing much mindshare among 3PL firms. It’s possible that’s because they don’t see how it will make their life easier or more profitable. In fact much of the press talk has been about how 3PLs will be negatively impacted by having to use a particular blockchain repository for their transactions, revealing them to everyone who is a member of that repository. It’s a good question, and Dan reflects sagely on it.
I’ve included a link to the pdf of the report below. You can also get it by registering on Dr John Langley’s site.
Special Topics Review Includes use of Blockchain, Automation and Digitization, and Talent Management
Source: Supply Chain News: Highlights from the 22nd Annual Third-Party Logistics Study Part 2
Dr. John Langley of Penn State Leads Research Once Again; Dreaded 3PL IT Gap Jumps Higher after Falling for Many Years
Source: Supply Chain News: Highlights from the 22nd Annual Third-Party Logistics Study part 1
Pdf of study: 3PL_2018_Study
Posted in Logistics, Service Management, Strategy, Supply Chains
Tagged 3PLs, blockchain, langley study, Logistics, performance, research, supply chains, transportation
A nice discussion of Agile development techniques in the large corporation context. It’s definitely the wave of the future, and all firms and enterprises need to consider it. Time to do away with the old project management mentality and get feedback from the users.
Agile is mindset.
Source: Can Big Organizations Be Agile?
Posted in entrepreneurship, Labor Economics, Leadership, Logistics, Org Behavior, Strategy, Supply Chains
Tagged container shipping, disruption, entrepreneurship, innovation, labor economics, performance, technology