logistics & supply chain management: san diego and the ...€¦ · implemented new technologies...

Center for International Business Education & Research 1

Maranda McGinley

Chris Russell

Logistics & Supply Chain

Management: San Diego and

the National Industry


Table of Contents

1. Introduction

a. Industry Classification

b. History of Logistics and Supply Chain Management

c. Types of Logistics and Supply Chain Management

2. National Industry

a. Overview

b. Industry Leaders

c. Future Trends

d. Industry Associations & Conferences

e. Major Events Impacting the Industry

3. Regional Industry

a. Overview

b. Regional Growth

c. Regional Industry Leaders

d. Insights from Industry Leaders

e. Growth in California

4. Future of Supply Chain Management and Logistics

5. Sources

6. Appendix

7. Acknowledgements


Introduction

Logistics and supply chain management (SCM) can be defined as the management of

material and information flow in a supply chain to provide the consumer with the highest

value at the lowest cost possible. This entails warehousing, transportation, order creation,

order tracking and fulfillment, and shipping. Within the supply chain management and

logistics industry, specific establishments act as agents in freight transportation and cargo.

Warehousing, freight forwarding, distribution and supply chain solutions are important

subsectors of the industry. With the growth of e-commerce and the online marketplace, the

logistics and supply chain management industry is rapidly evolving to meet consumer

demands.

Logistics and supply chain management are designed to create streamlined business

solutions in order for companies to achieve competitive advantages within the marketplace

while expanding consumer value. Supply chain management firms and establishments are

constantly searching for new and innovative techniques within the industry in order to

maximize efficiency and productivity through product development, management

information systems, and overall production and distribution.

Industry Classification

NAICS: Sector 488510 - Transportation and Warehousing

SIC: 4731 - Arrangement of Transportation of Freight and Cargo

History of Logistics and Supply Chain Management

In light of the Industrial Revolution, companies and manufacturers began to search and

create solutions that would streamline processes of manufacturing and maximize outputs.

As a result of changing developments, freight and transport companies began creating new

methods to ship raw materials and goods transcontinentally. Warehouses, factories, and

transport companies were then created to help facilitate shipments of items and to

maximize efficiency.

As time passed, new innovations in transportation, production, and distribution evolved to

meet industry demands. Beginning in the early 1960s, academia and industry officials

began to recognize the need for a formal setting in which logistic professionals could meet

and discuss the future of the industry. The National Council of Physical Distribution

Management (NCPDM) was formed in 1963 in order to evaluate strategies and policies that


were facing the United States at the time. As the industry grew, the NCPDM decided to

change its name in 1985 to the Council of Logistics Management (CLM) and began to focus

on educational research. Most recently, in 2005, the CLM decided to change its focus once

more in order to adapt to industry changes. The Council of Logistics Management became

the present day Council of Supply Chain Management Professionals (CSCMP), due to the

newer process that is known as supply chain management.

In the late 1970s and 1980s, the industry as a whole began to focus on tactics that were

centered around consumer value and efficiency. Industry leaders recognized the need for

not only efficient supply chain solutions and distribution services, but also for customer

service and satisfaction. As a result of this new focus, the United States government began

deregulating the transportation and freight services industry by introducing the Airline

Deregulation Act in 1978, Motor Carrier Act and the Staggers Rail Act in 1980, and the

Shipping Act of 1984. The result of deregulating the industry was that companies were able

to offer cost and service packages in order to meet consumer demands. Companies also

implemented new technologies such as quick response, just-in-time (JIT), cross-docking,

efficient consumer reports (ECR), and others.

The world of supply chain management and logistics changed drastically with the

introduction of the personal computer (PC) in the late 1980s. The invention of the

computer revolutionized the industry. Prior to the computer, industry officials had to rely

on mainframes and minicomputers to manage company operations and analyze data. As

computer functions and technology grew, firms were able to implement customer

relationship management systems, management information systems, and

transportation/warehouse management systems in order to increase productivity and

customer service experiences. The introduction of the computer can be seen into a gateway

into the ever-evolving industry that is known today.

Types of Logistics and Supply Chain Management Adapted From Dr. Carl Rebman, USD

There are four supply chain management systems that must be explained, the integrated

make-to-stock model, the built-to-order model, the continuous replenishment model, and

the channel assembly model.

The first type of supply chain management system is an integrated make-to-stock supply

chain. This type of system centers it’s model around real-time information, meaning that

tracking consumer demand, the production process, restocking and inventory are

monitored in the present. Integrated make-to-stock supply chain models can be described

as a fully integrated information system. Using real-time information, this system uses


applications that develop and modify product plans and schedules to meet consumer

demands. Below is an example of an integrated make-to-stock supply chain of a

pharmaceutical firm1.

Figure 1: Integrated Make-To-Stock Supply Chain Model of a Pharmaceutical Company

The second of model used in supply chain management is the build-to-order system. Once

an order is received from a firm, a build-to-order supply chain system immediately begins

to assemble the order for the customer. Third party logistics firms must be careful and

monitor closely each process in the entire system to avoid inventory discrepancies and

order mishap. Personalization is the key success factor in the build-to-order system. Each

customer is receiving a unique product tailored to their demands. Below is a diagram

representing a built-to-order supply chain2.


Figure 2: Build-To-Order Supply Chain of a Firm with No Inventory

Next, the continuous replenishment supply chain model is used by firms in order to

maximize efficiency in inventory replenishment through suppliers and intermediaries. A

complaint of this type of supply chain model is the cost. It is costly to fix inventory and

shipment mistakes. Therefore, similarly to the integrated make-to-stock model, this system

will require extensive real-time information for demand and inventory adjustments. The

firms that find the most profit in a continuous replenishment supply chain model are firms

that rely on constant shipment of like products.

Lastly, a channel assembly supply chain model is a logistical solutions system in which the

product is assembled as the product flows through different distribution channels, and this

is where third party logistics firms are centered. For example, a computer company such as

Hewlett-Packard (HP) would use a channel assembly supply chain model. Different

components of the computer being assembled (hard drive, monitor, etc.) would be shipped

directly from the vendor via a third party logistics firm (UPS, FedEx) and sent to a

warehouse where the product is assembled and then further distributed through product

distribution channels.


National Industry Overview

The supply chain management industry can be considered the backbone of economic

activity in the United States and abroad. Without proper logistics and supply chain

channels, product flow, production, and distribution would be diminished. The United

States has proved to be a global leader in supply chain management, remaining to be one of

the largest hubs for distribution, production, and freight transportation and cargo. With a

central location bordering Mexico and Canada, and coasts that create easy access to both

Europe and Asia, the United States is an economic powerhouse in the industry of supply

chain solutions. Most of the world’s most prominent supply chain management firms are

based in the United States.

The financial analysis of the supply chain management and logistics services industry as a

whole in the United States can be viewed below1. The figures reflect the industry based on

the Standard Industrial Classification (SIC) and the North American Industry Classification

System (NAISC). This report is gathered from the Key Business Ratios database.


Table 1: Key Business Ratios Industry Report

Industry Leaders

Industry leaders within supply chain management and logistics solutions are commonly

known as third party logistics companies (3PL). These companies have shown dynamic

leadership in the services of consumer demand as well as supply and distribution while

creating value within the industry. Armstrong & Associates has compiled the top 10

domestic third party logistics firms in the United States for review in terms of revenue.

These firms continue to represent the United States domestically and abroad, and serve as

an important point of reference for the industry as a whole. Table 2 below reviews the list

of firms and the gross revenue.


Table 2: Armstrong & Associates Top 10 U.S. Domestic 3PLs

A short description of each leading third party logistics providers is listed below. Websites,

headquarters, and contact information is also included.

C.H. Robinson is a multi-billion dollar third party

logistics company that has dominated the

industry since the early 1900s. A truly global

company, C.H. Robinson provides international

supply chain solutions including freight

transportation, outsource solutions, produce

sourcing, and information services.

Website: https://www.chrobinson.com/en/us/

Headquarters: Eden Prairie, Minnesota

Contact: John Weihoff, CEO (855) 229-6128


Expeditors is a Fortune 500 company centralized

in Seattle, Washington providing global logistics

services. Expeditors focus on international trade,

incorporating seamless and efficient information

systems that allow for companies to trade

globally. Expeditors employs services such as

freight forwarding via air or ocean, customs

brokerage, vendor consolidation, cargo

insurance, time-definite transportation, order

management, warehousing and distribution.

Website: http://www.expeditors.com/

Headquarters: Seattle, Washington

Contact: Jeffery Musser, CEO (206) 674-3400

J.B. Hunt is a company that has become one of the

leading firms in supply chain management. Through a

multimodal approach, J.B. Hunt is a value creating

supply chain management companies in North

America, Canada, and Mexico.

Website: http://www.jbhunt.com/

Headquarters: Lowell, Arkansas

Contact: John Roberts, CEO (800) 452-4868

Hub Group specializes in transportation

management and is national industry leader in

that sector. This company prioritizes intermodal

transportation in order to provide customers

with unique and individualized services. Hub

Group is one of North America’s largest over-

land transportation companies.

Website: http://www.hubgroup.com/

Headquarters: Lowell, Arkansas

Contact: David Yaeger, CEO (877) 770-9250


A family owned company, Burris Logistics focuses on

food transportation, specialty retail services, and

public refrigerated warehousing. Burris Logistics

provides their customers with transportation

management services, food redistribution services,

and custom retail logistics solutions.

Website: http://www.burrislogistics.com/

Headquarters: Milford, Delaware

Contact: Maggie Owens, Director of Marketing (800) 805-8135, ext. 5157

Schneider is the premier provider of truckload,

logistics and intermodal services. Offering the

broadest portfolio of services in the industry,

Schneider solutions include van truckload, regional

bulk transportation, intermodal brokerage, and port

logistics services. Schneider provides services over

North America and to China.

Website: http://www.schneider.com/logistics/index.htm

Headquarters: Green Bay, Wisconsin

Contact: Christopher Lofgren, CEO (866) 875-9046

Exel has recently merged with DHL and has

become an industry leader in supply chain

solutions. DHL is a contract logistics company

providing services to firms all over North

America. Deutsche Post DHL, a global industry

leader, is the parent company of DHL supply

chain solutions and their focus is on the

customer and providing valuable services in

means of freight forwarding and information

systems.

Website: http://www.dhl.com/en.html

Headquarters: Plantation, Florida

Contact: Ken Allen, CEO (800) 225-5345


UPS has always been a reliable source for

postage services, however UPS has a

subdivision of their company that focuses

on supply chain solutions nationally. UPS

remains to be one of the most prominent

logistics and supply chain management

solutions companies in North America,

offering freight forwarding services and

overall industry solutions.

Website: http://www.ups-scs.com/

Headquarters: Alpharetta, Georgia

Contact: David Abney, CEO (800) 742-5727

A global market competitor, Kuehne + Nagel focus on

international logistics services. Kuehne + Nagel boast the

top sea freight forwarding services in the industry, the

second best airfreight forwarding services, and the third

most effective land forwarding services in Europe.

Website: http://us.kuehne-nagel.com/

Headquarters: Jersey City, New Jersey

Contact: Detlef Trefzger, CEO (201) 413-5500

Known for having a strong corporate social

responsibility and maintaining a non-asset-based

corporation, UTi Worldwide remains to be one of the

most profitable third party logistics company in the

world. UTi Worldwide works with customers in

vertical markets in order to provide them with

effective, integrated supply chain solutions.

Website: http://www.go2uti.com/

Headquarters: Long Beach, California

Contact: Ed Feitzinger, CEO (562) 552-9400


In addition to national leaders within the sector of third party logistics, there are

companies that must be noted that run profitable supply chains within their firm using the

companies mentioned above. These companies work together with third party logistics

firms in order to maximize efficiency in transportation, distribution and information

management. The Gartner Supply Chain Top 25 is listed below in Table 3.

Table 3 The Gartner Supply Chain Top 25 for 2015

Rank Company

Peer

Opinion1

(200

voters)

(25%)

Gartner

Opinion

1

(35

voters)

(25%)

Three-

Year

Weighted

ROA2

(25%)

Inventory

Turns3

(15%)

Three-

Year

Weighted

Revenue

Growth4

(10%)

Composite

Score5

1 Amazon 3,394 468 0.0% 8.7 21.7% 5.32

2 McDonald's 1,626 283 14.6% 157.3 -0.2% 5.23

3 Unilever 1,996 619 11.3% 6.7 -0.2% 5.15

4 Intel 1,064 481 12.1% 5.0 2.4% 4.09

5 Inditex 1,003 297 17.0% 3.8 8.8% 4.04

6 Cisco Systems 1,147 500 8.4% 12.6 1.5% 4.01

7 H&M 809 89 26.6% 3.7 12.8% 4.01

8 Samsung

Electronics 1,568 330 10.5% 17.7 0.5% 3.91

9 Colgate-Palmolive 1,034 318 17.8% 5.0 0.6% 3.91

10 Nike 1,369 214 14.5% 4.1 10.7% 3.78

Future Trends

According to executives of the Federal Open Market Committee (FOMC), growth of the

supply chain management industry in 2016 is inevitable. Over the past two years, the

United States economy has been slowly increasing due to more consumer activity within

the marketplace. Many consumers are expecting more same-day or one-day shipping

requirements, forcing firms to store inventory in more locations spread out across the

United States in order to get products closer to the consumer. This will lead to an increase

in warehousing and distribution services in more locations. This growth of warehousing

and distribution will have a domino effect on freight transport and intermodal services, as

the amount of inventory needed to be transported will increase. With the growth of these

sectors within the supply chain management industry, firms are turning to new and


innovative solutions in order to adapt to the changing market. These solutions are

discussed in detail below.

Bimodal Supply Chain Strategies

Chief supply chain officers (CSCOs) and their teams face an environment where business

models must change quickly, where the expectation is that they will spend as much or more

time growing and innovating as they will streamlining and promoting efficiency. Gartner

has termed this reality "bimodal." Traditionally, supply chain executives have been

successful because they were good at driving down costs. The leaders now realize they will

be judged on cost containment as well as the ability to promote and support the top line.

Increased Customer Intimacy

Another trend is a focus on customer experience as a measured priority in supply chain

organizations. Independent of the product being sold, leaders are focused on listening more

closely to their customers and responding with innovative solutions.

Emerging Digital Business Models

While still an emerging concept, the view on how supply chain can leverage digital

capabilities to support new business models and improve broader value chain performance

became clearer this year. Manufacturing is currently at the center of many digital

capabilities and leading companies recognize that "the factory" is not just somewhere

inside the four walls of the company or an outsource partner. Digital synchronization of

manufacturing lines with upstream suppliers and other supply chain functions is where the

business value starts to multiply.

The logistics function is not far behind manufacturing in terms of automation using

sensors, gateways, tracking systems and business rules to predict and alert when there will

be a variance to the current plan of record. Logistics control tower capabilities are not new,

but when combined with more affordable sensors and computing power, they portend the

democratization of deeper visibility that can reduce risk and improve both operating costs

and customer-service levels for many companies.

Industry Associations and Conferences

Below are some of the top supply chain associations that are important to the future of the industry

and the evolution of logistics and supply chain management. They provide a wealth of supply chain

management resources ranging from educational to networking to supply chain certifications and

more.


Council of Supply Chain Management Professionals (CSCMP)

The CSCMP’s mission is to lead the evolving supply chain management profession by

developing, advancing, and disseminating supply chain knowledge and research.

Warehousing, Education & Resource Council (WERC)

WERC offers resources that help distribution professionals stay at the leading edge

including educational events, performance metrics for benchmarking, practical research,

expert insights and peer-to-peer knowledge exchange.

Institute for Supply Management (ISM)

Founded in 1915, the Institute for Supply Management™ (ISM) is the largest supply

management association in the world as well as one of the most respected. ISM’s mission is

to lead the supply management profession through its standards of excellence, research,

promotional activities, and education. ISM’s membership base includes more than 34,000

http://www.ism.ws/


supply management professionals with a network of domestic and international affiliated

associations. ISM is a not-for-profit association that provides opportunities for the

promotion of the profession and the expansion of professional skills and knowledge.

National Industrial Transportation League (NITL)

As the nation’s oldest and largest freight transportation association, the National Industrial

Transportation League has a rich history. From its beginnings in 1907 when economic

regulation ruled our industry through the present, the League has been in the forefront of

changes that have helped shape our nation’s commercial freight transportation system.

From rail, to motor carriage, through ocean transport and air commerce – the League has

been a proven leader in representing shippers’ interests.

Intermodal Association of North America (IANA)

IANA is North America’s leading industry trade association representing the combined

interests of the intermodal freight industry. IANA’s membership roster of over 1,000

corporate members includes railroads—Class I, short-line and regional; water carriers and

stacktrain operators; port authorities; intermodal truckers and over-the-road highway

carriers; intermodal marketing and logistics companies; and suppliers to the industry such

as equipment manufacturers, intermodal leasing companies and consulting firms.

http://www.nitl.org/

http://www.nitl.org/

http://www.intermodal.org/


Logistics Conferences

Below is a directory of respected logistics conferences and trade shows in the supply chain,

3PL, Warehousing, and Freight Management Industries.

CSCMP Annual Logistics Conference

The Council of Supply Chain Management Professionals hosts one of the biggest annual

logistics conferences featuring over 200 Educational sessions at its Annual Global

Conference WWW.CSCMP.ORG

WERC Annual Conference

The Warehousing Education and Research Council’s Annual Conference is a valuable

warehousing & logistics trade show and convention focused on the latest happenings in the

warehousing industry.

WWW.WERC.ORG

IWLA Convention & Expo

The International Warehouse Logistics Association trade organization has a well regarded

annual logistics convention & expo providing a platform for warehousing and 3PL

companies to learn and debate the latest innovations and best practices.

WWW.IWLA.COM

Supply Chain & Logistics Summit

For more than 10 years the Supply Chain and Logistics Summit has provided a quality

conference and program featuring respected thought leaders in supply chain and

operations.

WWW.SUPPLYCHAIN.US.COM

http://www.logisticslist.com/logistics-conferences.html

SCOPE Supply Chain Conference

http://www.cscmp.org/

http://www.cscmp.org/

http://www.werc.org/

http://www.iwla.com/

http://www.supplychain.us.com/

http://www.logisticslist.com/logistics-conferences.html


San Diego, CA

http://scopefall.com/

Consumer Goods Business & Technology Leadership Conference

San Diego, CA

Georgia Logistics Summit

Atlanta, Georgia

http://www.georgialogistics.com/logistics-summit/?summitID=9

MODEX

Atlanta, GA

http://www.modexshow.com/

Retail’s Big Show

New York, NY

http://bigshow16.nrf.com

Major Events Impacting the Industry

Supply chain management and logistics are industries that revolve around processes. In

complex processes, such as supply chain solutions, if there is an error in one portion of the

process, the end result is negatively impacted as well. Therefore, disruptions have a

negative effect, altering stock price, profitability, share price volatility, and depleting

consumer value. It is necessary for firms to be aware of the source of such disruptions in

their supply chains in order to mitigate risks prior to them happening, and to constantly

adapt to changing situations in the business world. The current state of the industry would

not be the same if it had not adapted to technological changes and learned mistakes.

Through mistakes, the industry as a whole was able to learn and grow.

Infamous Errors

★ Boeing

Plans to radically overhaul the supply chain for the new Dreamliner 787

aircraft were implemented by Boeing, major airplane manufacturer. However,

massive problems followed this decision, with component deliveries in 2007. This

http://scopefall.com/

http://www.georgialogistics.com/logistics-summit/?summitID=9

http://www.modexshow.com/

http://bigshow16.nrf.com/


resulted in a two-year delay in aircraft launch and some $2 billion in charges to fix

supplier problems.

★ Mattel

Mattel, toy distributor, recalled of tens of millions of toys made in China in

2007 due to safety issues such as lead paint. Mattel became a future example for

support of anti-offshoring interests industry wide. Stock price took a devastating hit

because of this distribution error.

★ Hershey

In 1999, Hershey implemented a new order management and shipping

system. These new systems suffered technical difficulties right before Halloween,

which is a crucial time of the candy industry’s sales. Hershey couldn’t fulfill critical

Halloween orders, and the result was a loss $150 million in revenue and a drop in

stock of 30%.

★ Cisco

In 2001, Cisco, a multinational technology company, suffered from lack of

demand and inventory visibility through a technical difficulty in inventory

management systems as the market slowed. This lead to $2.2 billion inventory write

off and stock suffered as well.

★ Nike

Nike, global sport brand, implemented a new planning system company

wide, which caused a disruption in inventory and order management. The result

was a loss of $100 million in revenue and a stock decrease of 20%.

Regional Sector

Overview

During the period from 2000 to present, globalization and the high costs of doing business

in California greatly accelerated the loss of manufacturing jobs including high tech

industries. Responding to pressure for lower prices from retailers and their consumers,

multinational corporations began to rapidly rationalize production by moving

manufacturing operations directly to lower cost states and off-shore locations, or by

outsourcing these functions to third party contract manufacturers who have mastered

global supply-chain management systems. Despite these negative trends, the San Diego


logistics and supply chain management sectors are thriving. San Diego’s location bordering

Mexico and on the Pacific Ocean ensure its success as a growing hub for international

transport and distribution.

Regional Growth

While there is little information about the economic trends of the industry in the San Diego

area, supply chain management and logistics are evolving continually. According to the

California Employment Development Department, supply chain management and logistics

remain to be some of California’s base industries and San Diego retains 21% of the job

market to trade jobs within the industry. The EDD also projects that by 2020 that number

can vastly grow.

The primary advantage that San Diego-based supply chain management and logistics

solutions industry is its location. Neighboring Mexico and having the closest American

coast to China gives San Diego a comparative advantage for third party logistics firms

nationwide. San Diego is a primary hub for intermodal transportation and freight across

America, over the road shipments to Mexico, and maritime transportation across the

Pacific Ocean via the Port of San Diego.

The San Diego Workforce Partnership analyzes growth and trends in logistics and

transportation in the San Diego and Imperial County regions. This annual report proves

that the industry is steadily growing and job creation within the industry is positively

trending. The organization has projected a positive growth in the industry for the future.

Below are specific numbers and charts regarding the growth of the supply chain

management industry in San Diego4,5.

Table 4: Regional Industry Breakdown


Figure 5: Graph of Industry Growth and Future Trends

Regional Industry Leaders

In addition to analyzing job growth and industry expansion, the San Diego Workforce

Partnership has compiled the top four industry leaders within the region based on the

number of employees and revenue. The firms analyzed are each involved in complex

supply chain processes, physical distribution, and logistic consulting services. Listed below

is a short description and contact information of each firm6.


Table 6: Top 4 Firms within the Industry

Insights from Industry Leaders

San Diego is a growing region in the industry and continues to provide great opportunity

for supply chain management. Allen Vigil, a San Diego State University alum and vice

president of Grupo Logistics, comments into San Diego’s industry and its expansion. Grupo

Logistics is a third party logistics firm based in Mexico, which emphasizes its business in

Mexicali and San Diego. When asked about the importance of the Port of San Diego in

relation to the supply chain management industry in San Diego, Vigil says “We [Grupo

Logistics] do business with the Port of San Diego with some of our clients that manage bulk

exports from the United States to Mexico.” In addition to the Port of San Diego, Grupo

Logistics mainly manages ocean vessels via the ports of Manzanillo, Lazaro Cardenas and

Veracruz.

Mike Gonzales, branch manager for J.B. Hunt San Diego and also San Diego State Aztec

alum, represents the national industry as J.B. Hunt is a national supply chain firm. Mike

notes that while San Diego may be a smaller market when compared to markets nationally,

San Diego has an upper hand in market share because of its proximity to China and Mexico.

When questioned about J.B. Hunt’s relationship with Mexico, Mike commented that the

majority of the distribution with Mexico was intermodal and over-the-road, which is

important due to the vast manufacturing industry in Mexico and Baja California. This is a


valuable token of information regarding border relations, especially coming from a national

industry leader.

San Diego’s port has become an important hub for automotive industry and manufacturing.

Gonzales noted that Asian car makers like Hyundai and Toyota use the Port of San Diego for

further distribution within the United States. Vigil also commented saying, “Great

opportunities will continue to increase in the finished automotive industry. Mexico is a big

automotive manufacturer and shipments of new autos from Mexico to the United States

will land in the Port of San Diego via ocean vessel”.

Growth in California

Data from the United States Department of Labor indicates a large growth in the industry

and in jobs available in the state of California in means of transportation, supply chain

systems, and logistics. California has a projected positive growth in employment in the

industry, indicating its strength as a leader in the logistics industry. Table 7 below

summarizes the difference between the national trends and the regional trends and how

California is a booming area for this industry.

Table 7: State and National Trends

United States Employment Percent Change

Projected Annual Job

Openings 2014 2024

Transportation, Storage, and Distribution Managers 111,600 114,100 +2% 2,710

California Employment Percent Change

Projected Annual Job

Openings 2012 2022

Transportation, Storage, and Distribution Managers 12,700 14,300 +13% 460

Source: United States data - Bureau of Labor Statistics; State data - California Employment

Development Department

In relation to California, San Diego is a smaller market in comparison to hubs in Orange

County and Los Angeles, but is growing with the international demand for more

transportation and supply chain solutions in Southern California.

http://www.careerinfonet.org/faq_info.asp?question=107&id=1&nodeid=102







Future of Supply Chain Management and

Logistics

Technology is in constant evolution and will continue to impact supply chain management

and logistics. Technology has evolved the industry by incorporating quick-response

technology, immediate access to data and demand statistics, and allowing managers to

make decisions quickly - decisions that could have taken days or weeks can be made within

hours or even minutes. Another phenomenon that that may soon affect the logistics and

supply chain management industry is the idea of “uberization”. Like the popular ride

sharing app Uber, logistical solutions are moving toward a similar idea. Just like Uber, firms

and manufacturers are able to order, through a mobile application, any transportation

services or supply chain services the firms might need in immediate fashion (adapted from

the conversation with Mike Gonzales, J.B. Hunt).

Big data warehousing is a vital component of any continuous supply chain. Data is being

generated quickly (nearly doubling each week/month), and this is working in favor of the

Internationalization

Data

Technology


logistics industry. Firms are able to quickly analyze data in order to determine consumer

demands, economic trends, and any errors that might arise. This can help firms manage a

more optimal supply chain and offer consumers a greater service in the long run.

Finally, the idea of globalization is very important when looking into the future of supply

chain management and logistics, especially in the San Diego region. Global commerce is

quickly becoming more interrelated and interdependent between countries, and supply

chain solutions and logistical services are at the center of all economic activity. The BRIC

countries (Brazil, Russia, India and China) are rapidly becoming leaders in manufacturing

services and through this increase globally, supply chain solutions abroad and especially in

the United States are growing at a steady rate.


Sources of Information Bridge Solutions Group http://bridgesgi.com/2016-supply-chain-conferences/

CSCMP’s Supply Chain Quarterly http://www.supplychainquarterly.com/topics/Strategy/20130621-supply-chain-management-a-look-back-

a-look-ahead/

Dr. Carl Rebman, University of San Diego http://carl.sandiego.edu/itmg350/types_of_supply_chain.htm

Dun & Bradstreet Key Business Ratios Database http://www.mergentkbr.com.libproxy.sdsu.edu/index.php/login/error

Gartner http://www.gartner.com/newsroom/id/3053118

Georgia Institute of Technology http://sclgme.org/shopcart/Documents/The%20Effect%20of%20Supply%20Chain%20Disruptions%20on

%20Long-term%20Shareholder%20Value.pdf

Investopedia http://www.investopedia.com/terms/s/scm.asp

Logistics View Points https://logisticsviewpoints.com/2016/01/11/logistics-and-supply-chain-trends-to-monitor-in-2016/

San Diego Workforce Partnership

http://calibaja.net/cbdb/lib/201205152245260.Transportation%20and%20Logistics%20Industry%20Repo

rt%20San%20Diego%20and%20Imperial%20Combined%202012-2021.pdf

Supply Chain 247 http://www.supplychain247.com/article/2014_2015_top_50_global_us_third_party_logistics_providers

Supply Chain Digest http://www.scdigest.com/assets/FirstThoughts/09-05-07.php

Supply Chain Link

http://www.nfiindustries.com/blog/supply-chain-industry-outlook-for-2016/

Supply Chain Management Talent Group http://www.scmtalent.com/scm-resources/

State of California Employment Development Department

http://bridgesgi.com/2016-supply-chain-conferences/

http://www.supplychainquarterly.com/topics/Strategy/20130621-supply-chain-management-a-look-back-a-look-ahead/

http://www.supplychainquarterly.com/topics/Strategy/20130621-supply-chain-management-a-look-back-a-look-ahead/

http://carl.sandiego.edu/itmg350/types_of_supply_chain.htm

http://www.mergentkbr.com.libproxy.sdsu.edu/index.php/login/error

http://www.gartner.com/newsroom/id/3053118

http://sclgme.org/shopcart/Documents/The%20Effect%20of%20Supply%20Chain%20Disruptions%20on%20Long-term%20Shareholder%20Value.pdf

http://sclgme.org/shopcart/Documents/The%20Effect%20of%20Supply%20Chain%20Disruptions%20on%20Long-term%20Shareholder%20Value.pdf

http://www.investopedia.com/terms/s/scm.asp

https://logisticsviewpoints.com/2016/01/11/logistics-and-supply-chain-trends-to-monitor-in-2016/

http://calibaja.net/cbdb/lib/201205152245260.Transportation%20and%20Logistics%20Industry%20Report%20San%20Diego%20and%20Imperial%20Combined%202012-2021.pdf

http://calibaja.net/cbdb/lib/201205152245260.Transportation%20and%20Logistics%20Industry%20Report%20San%20Diego%20and%20Imperial%20Combined%202012-2021.pdf

http://www.supplychain247.com/article/2014_2015_top_50_global_us_third_party_logistics_providers

http://www.scdigest.com/assets/FirstThoughts/09-05-07.php

http://www.nfiindustries.com/blog/supply-chain-industry-outlook-for-2016/

http://www.scmtalent.com/scm-resources/


http://www.labormarketinfo.edd.ca.gov/customers/economic-developers.html

United States Census Bureau http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=48&search=2012%20NAICS%20Search

United States Department of Labor https://www.osha.gov/pls/imis/sic_manual.display?id=933&tab=description

http://www.labormarketinfo.edd.ca.gov/customers/economic-developers.html

http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=48&search=2012%20NAICS%20Search

https://www.osha.gov/pls/imis/sic_manual.display?id=933&tab=description


Appendix List of Southern California Logistics & SCM Providers

Name Service Location Contact Website

Agility Holdings Inc. Logistics Irvine,

California

(714) 617-6300 www.agility.com

Alorica Inc. Customer

Management/Information Services

Irvine,

California

(866) 256-7422 www.alorica.com

Cargo Barn Shipping/Transportation &

Logistics

Fresno,

California

(559) 513-8460 www.cargobarn.com

Coyote Logistics Freight Broker & Logistics San Diego,

California

(877) 626-9683 www.coyote.com

Expeditors Freight Forwarding & 3PL San Diego,

California

(619) 710-1900 www.expeditors.com

Fidelitone Supply Chain Management San Diego,

California

(858) 578-0441 www.fidelitone.com

Kintetsu World Express Freight Forwarding & 3PL San Diego,

California

www.kwe.com

MNX Global Logistics Inglewood,

California

(310) 330-2328 www.mnx.com

UTi Worldwide Supply Chain Management Long Beach,

California

(562) 552-9400 www.go2uti.com

Woodward Logistics

Services

Logistics San Diego,

California

(619) 225-8449 www.woodward.com.mx

WorldTrans Services,

Inc.

Fulfillment and Logistics San Diego,

California

(800) 736-3769 www.worldtransinc.com

Source: Ward's Business Directory of U.S. Private and Public Companies, 58th ed., 2015)

http://www.agility.com/

http://www.coyote.com/

http://www.expeditors.com/

http://www.fidelitone.com/

http://www.kwe.com/

http://www.go2uti.com/

http://www.woodward.com.mx/

http://www.worldtransinc.com/


ACKNOWLEDGEMENTS

This report was written by Maranda McGinley and Chris Russell and is a result of their

work as research interns for the Center for International Business Education & Research at

San Diego State University. The purpose of this report is to explain supply chain

management and logistics and compare and analyze the national industry and the San

Diego industry, respectively.

The Center for International Business Education & Research at San Diego State University

is a national center in which faculty and students are continually integrating, researching

and developing activities and programs in order to advance the study of international

business and education. The Center for International Business Education & Research at

SDSU is one of only 17 national centers in which faculty and students will continue to

ensure and research United States competitiveness abroad.

Chris and Maranda would like to say a very special thank you to Dr. Martina Musteen for

her time, patience, guidance, and leadership throughout the compilation of this report. Her

guidance is and was unprecedented and greatly appreciated. In addition, we would like to

also thank the SDSU Center for International Business Education & Research for providing

us with the necessary resources, tools, and support needed for this report.