Issue:
Inequality and the American Dream
Fly Title:
The logistics revolution
Rubric:
A hidden industry has changed all our lives; but some companies are operating rather close to the edge
Location:
“THE great manufacturers in the Yorkshire and Lancashire districts tell me that, under modern conditions, they have got into the habit of laying in supply not for a period of two to five months but they are dependent week by week on the importation of the raw material.” So Sir George Parkin described the alarming business practices found in Britain at the dawn of the 20th century. As a leader of the Imperial Federation League, he sought to replace the British empire with a bigger group of trading partners, so as to guarantee supplies. A hundred years on, Sir George would have marvelled at globalisation, but been aghast that today's manufacturers measure their inventories in only a few hours of production.
The great manufacturers now have amazingly lean operations. They have outsourced business to contractors that can do the work more efficiently, often in places where wages are lower. A huge ...
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