THE GOVERNMENT STEPS IN TO HELP THE SUPPLY CHAIN
As has been the case in recent years, the supply chain globally has faced numerous challenges and lots of delays. The delays lead to inconsistencies for businesses and the price for companies to transport goods has increased. This is partially due to the challenges that the supply chain provides and partially due to inflation and interest rates as well. These issues need solutions so that producers, transporters, and consumers alike can ease the financial stress that the backups and rising rates have caused. The government, and more specifically, the Department of Transportation have gotten the ball rolling on an initiative titled “Freight Logistics Optimization Works” or FLOW for short. The goal of this initiative is to use the power of communication in the private sector of logistics to initiate an easement of lag and rising rates.
The communication is derived from companies sharing data and viewpoints of the supply chain enterprise so that transparency can be used as a catalyst for working towards a cleaner and more efficient supply chain. The DOT will work as an independent steward to provide a shared view of our national logistics system, the goal of this facilitation is to make importing and exporting more efficient so that everyone can save money and relieve the tensions at ports, air cargo, trucking, and warehouses. This initiative is in its early stages and it will be fascinating to follow the supply chain to see how this affects its efficiencies.
Below is a short list of initial partners involved in this initiative:
Port Authorities: Port of Los Angeles, Port of Long Beach
Business: Albertsons, Target, Land O’ Lakes
Logistics and Warehousing: FedEx, Prologis, UPS