Common Warehouse Choke Points in Your Supply Chain

Newcastle Systems

Last month was the beginning of one of those rare weeks when you could tune into your daily news broadcast and hear your usual news readers interviewing supply chain analysts, shipping company representatives and logistics experts almost every day – a group of professional profiles that you almost never see on the national news!

Why? For those who have not been paying attention, the Suez Canal had been completely BLOCKED by a single freighter ship that got jammed up on both sides of the canal while trying to navigate during a severe windstorm.

The importance of this event is far-reaching – it impacts economies in nearly every developed country in the world and indirectly impacts many others as well.

With 13% of annual global trade passing through the canal in 2020 via the 19,000 ships carrying 1.17 billion tons of cargo, the impacts are going to reverberate through all supply chains as another 50+ ships get held up waiting to pass meaning at least 400 of them will be idling while you are reading this.

Think of something more local that might have a similar effect. Imagine a national retailer during holiday season supplying its 850 stores from six massive Distribution Centers it has around the country – and then imagine one of them has to shut down for a week with all of its contents locked inside with nothing going in or out.