In this article we will explore the history of American logistics systems and how they came into being over the last few decades.
During the Middle Ages people used elaborate and often complex supply systems. Forts often becamestorage centreswhich supported the economy of surrounding towns in America.
From the middle ages we move to the Industrial Revolution, where logistics advanced significantly with the technological advancement of railways and ships, revolutionising how products moved from one area to another.
World War One further increased industrial capabilities, where the internal combustion engine gave rise to the widespread use of motor transport. World War 2 was characterized by dramatic advances and transportation and communication. Where U.S. fleets engaged in the commercial transportation of goods and services in and out of the United States.
After World War 2, logistics moved from hey warfare to business. The physical distribution of products began with a focus on outbound activity. Filing orders, delivery of products, storage and warehousing, production planning, and customer service are presently essential aspects of the logistic process.
There was an establishment of an entire industry to take goods from point A to point B. Many companies started to rely on outsourcing for some or all of this supply, resulting in the development of 3rd party logistic companies for efficient transport tracking of goods.
The basis of transportations was established five decades ago, but due to high demand and supply, the requirement of a management company was long overdue.
Today, across America these businesses use management of the company as a key to increase efficiency and work 24/7, 365 days.
Mitchell Rouse established one of the firstAmerican logistics company. It carried high-quality services by utilizing state of the art technology.WMS systems (Warehouse Management Systems) were invented to improve warehouse operations, lower labour costs, improve customer service, boost inventory accuracy, raise flexibility, and increase responsiveness.
Further facts about the American history of logistics are as follows:
- The United States of America comprises of 566 railroads that are around 138623 railroad miles.
- Total 2011 US logistics spending was estimated to be $ 1.28 trillion up to 6.66% over the previous year.
- According to the 2012 study, shippers who partner with 3rd party logistics providers report on average cost reduction of 13% and (nearly 2/3) that is 64% of survey respondents reported an increase in the outsource logistics services.
- 3.5 million is the approximate number of truck drivers moving America fright. One over every 15 people working in the USget employed in the trucking industry.
- The transportation and warehousing sector involved a total of 4.29 million people in 2011.
- Trucking is the dominant mode of transportation of US freight moment by approximately 71%.
- 1.2 million trucking companies are operating in the United States.
- The highest-valued imported products include agriculture products at 4.9%, industrial supplies at 32.9%(crude oil at 8.2%), and capital goods at 30.4%.
- There are 149 ports located in the United States south Louisiana, Houston from New York / New Jersey, and Long Beach often at the top of the list when ranked by tonnage or TEUs (hey 20-foot equivalent units).
- American business transported over 19 billion tonnes of raw materials and finished codes in 2002 valued at 13 trillion dollars.
- The contribution of transportation activities in the US GDP is$1 out of every $10.
- The transportation with truck delivers manufactured goods around $650 billion annually.
- The United States invested 0.6% off its GDP and transportation annually.
With globalization, the supply chain is in the process of rapid advancement. This global shift has made the logistics sector more complicated than anything we’ve ever seen in American history.
In conclusion, the economic and social complexion of life in the United States mirrors the countries’ extraordinary mobility. A pervasive transportation network has helped transform the vast show graphic expense to a surprisingly homogeneous and close-knit social and economic environment. International and domestic companies in this industry benefit from a highly-skilled workforce and a highly integrated supply chain network links producers, which serves consumers throughout the America and the world.
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