Historical startups in the supply chain

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An overview of developments in logistics and technology over the past 150 years, all which redefined the modern supply chain. From engines to ERP, dropshipping to UPCs, this presentation will walk you through the what made the global supply chain what it is today.

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Historical startups in the supply chain

  1. 1. Supply Chain Startups 150 years of innovation Brought to you by: Freightos The Online Freight Network
  2. 2. The word startup has been around since 1976: The unfashionable business of investing in startups in the electronic data processing field -Forbes ““
  3. 3. But startups are now a little sexier
  4. 4. Big data
  5. 5. So while today’s Supply Chains global economy MASSIVE rests on a foundation of
  6. 6. Which in turn relies on thousands of years of disruptive technological developments wheel~3,500 BC d a t i n g b a c k t o t h e
  7. 7. We’regoingtotakealookat supply chains startups
  8. 8. So take a stroll through history to see -9-supply chain innovations that defined the modern era of supply chain, freight and logistics -9-
  9. 9. 1 Internal Combustion Engine 1854 1913 1936 1950 1956 1960 1974 1984 1990
  10. 10. Without a way to move the products of the Industrial Revolution, we would still be stuck at square one. Two Italian inventors, Eugenio Barsanti and Felice Matteucci, are credited with the first effective engine, patented in London, 1854. Vroom.
  11. 11. Want to know how far we’ve come? The Emma Maersk’s engine is: 90 feet long 44 feet tall Produces 7780 horsepower Burns through 1,660 gallons of fuel/hour EMMA MAERSK
  12. 12. Ford Assembly Line 1854 1913 1936 1950 1956 1960 1974 1984 1990 2
  13. 13. One chain was all it took Henry Ford to reduce Model T production time from 12 hours per car to 93 minutes, dragging the chassis by 84 assembly teams. Reduced production costs Faster production time Better working conditions and One very happy Mr. Ford =
  14. 14. Toyota Production System 1854 1913 1936 1950 1956 1960 1974 1984 1990 3
  15. 15. Introducing LEAN manufacturing Developed by the founder of Toyota, his son and an engineer, the Toyoda Production System (TPS) aims to: Eliminate waste Prevent system overburdening Eradicate inconsistencies Which ultimately led to the development of Just-In-Time shipping.
  16. 16. Drop Shipping 1854 1913 1936 1950 1956 1960 1974 1984 1990 4
  17. 17. ThinkAmazoninventeddropshipping? Think again. Dropshipping is the practice of retailors selling without maintaining an inventory by offering wares co-located by a manufacturer or reseller. No warehouses = cheaper rates.
  18. 18. Sure, you can buy Target or Eddie Bauer on Amazon and they’re making bank off that… But mail-order catalogs have been doing the same exact thing since 1950. And the internet only helps.
  19. 19. The Container 1854 1913 1936 1950 1956 1960 1974 1984 1990 5
  20. 20. Ever try playing Tetris with 2 million different shapes of pieces? That’s what boat and truck loaders were doing, every single time they loaded a boat
  21. 21. When Malcom McLean created a container that could be easily transferred from truck to ship, he paved the future of global shipping 10.5 millionContainers are exported every single month (That’s a lot of “Hello Kitty” sweaters)
  22. 22. EDIElectronic Data Interchange 1854 1913 1936 1950 1956 1960 1974 1984 1990 6
  23. 23. EDI is an international standard language that enables freight agents and carriers to automatically transfer documents online throughout the chain. Fewer mistakes Faster communication Less gruntwork No bad handwriting EDI. Cool.
  24. 24. UPC U n i v e r s a l P r o d u c t C o d e s 1854 1913 1936 1950 1956 1960 1974 1984 1990 7
  25. 25. At 8:01 AM on June 26, 1974, Clyde Dawon bought a pack of Juicy Fruit at the first UPC-enabled cash register in the world, located in Ohio. In a few short years, UPCs would be used for everything from tracking to loyalty cards, airplane tickets and NASA. NOW SCANNING
  26. 26. Direct To Order 1854 1913 1936 1950 1956 1960 1974 1984 1990 8
  27. 27. Fixing and selling computers from his dorm room in 1984, Michael Dell realized that he could mail-order customized computers to clients. 1983 1984 1992 1996 2013 Dell starts fixing computers in Texas dorm room Moves business to condo. CEO of Fortune 500 company (age: 27) Revenue of almost $60 billion dollars $1 million dollars of sales per day from Dell website Lower overhead No inventory Customized experience
  28. 28. E n t e r p r i s e R e s o u r c e P l a n n i n g 1854 1913 1936 1950 1956 1960 1974 1984 1990 9
  29. 29. EDI may be a language for computers…but ERPs connect the entire supply chain, from forklifts to inventory managers, accountants to managers. Combined with the power of the web, everyone can be connected to everything. Connecting the World
  30. 30. Just to round things up… 1. Internal Combustion Engine (1854) 2. Ford Assembly Line (1913) 3. Toyoda Production System (1936) 4. Drop-Shipping (1950s) 5. Container (1955) 6. EDI (1960s) 7. UPC (1974) 8. Direct-to-order (1984) 9. ERP (1990s)
  31. 31. But the innovation never stops. Here’s to another 150 years of creativity that drives the world.
  32. 32. Head over to freightos.com to see how carriers, freight forwarders and shippers can instantly generate multimodal freight quotes on the world’s automated online freight network.
  33. 33. ENJOY THIS PRESENTATION? SHARE IT WITH YOUR FRIENDS! Click!

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