Logistics Legends: The Silk Road

You know what I’ve been geeking out over lately? No, it’s not the latest algorithm for optimizing delivery routes or a new AI-powered inventory system. It’s something way older and cooler: The Silk Road. After I saw the BBC documentary called, you guessed it, “The Silk Road”, my life would never be the same.

First off, let’s clear something up: The Silk Road, despite its name, isn’t a single road. Nope, it’s not a silk-lined, straight-shot highway from China to Europe. It’s more like a bunch of meandering paths going all over the place, a bit like your headphone cords after they’ve been in your pocket for five minutes​​. The Silk Road covered some 4,000 miles of formidable terrain, from the Gobi Desert to the Pamir Mountains. And here I thought my morning commute was tough. I can just imagine some poor trader, loaded down with silk, staring at his camel and saying, “You sure there’s not a shortcut?”​​.

The stuff the Chinese traded was pretty amazing: silk, jade, porcelain, tea, spices. On the other side, Europe sent horses, glassware, textiles, and manufactured goods. What really amazed me though, is that the Silk Road wasn’t just about moving products; it was the internet before the internet! Ideas, cultures, and technologies were traded along with those goods. It was a true information superhighway, only instead of Wi-Fi signals, they had camels​​.

The Silk Road wasn’t just a trade network, it was the beating heart of globalization, pulsating with life and exchange before the term even existed. Talk about being ahead of your time! Now, it’s on UNESCO’s World Heritage List, and I bet those traders never saw that coming. They were probably too busy negotiating camel prices or sand-proofing their silk bundles​​.

The Silk Road is an absolute legend of logistics. It makes my modern-day logistics look a bit less shiny, but it sure gives me a ton of inspiration. If they could sort out trade routes across continents with nothing more than camels and a sense of direction, I reckon I can manage my spreadsheets.

In conclusion, watching the BBC documentary I told you is mandatory! 😊

My Inventory Control at Home

You may think I am crazy or I have too much free time, but… I actually track the goods I buy and the stock of essentials on an excel sheet. Continue reading to find out how I do it.

Consumption list. But why?….

First, I am lazy. Second, I am very pragmatic. Third, I don’t like spending time thinking about what to cook. So, I created a meal schedule. To stay healthy, I roughly counted the calories of each meal and made sure to cover at least 80% of all essential nutrition variables (vitamins, minerals, water, etc). If you are interested in trying the same, I recommend you an app called Cronometer. Here you can check my schedule:

Safety Stock Management 

Next, I counted the essential products needed for cooking these meals per week and forecasted the demand. I also defined a safety stock for some products.

For example, I decided to always have in stock at least 5 bottles of 8L of water or to have 1 kg of lentils. I use kanban signs to remind myself about maintaining the safety stock like this one:

Expenses Forecasting

Finally, I also track all my expenses in the same spreadsheet. I created a list of the goods that I buy and the frequency of ordering (they include food and drugstore products). Some prices may not be accurate because of the inflation, I should update them soon. It’s a 56 rows tables, I’ll just paste a demo screenshot:

As a conclusion, I found out that my monthly Mercadona purchase is around 150€, considering that I live alone and take care of all my house chores by myself. Of course, it used to be much cheaper when I lived with my parents…

In conclusion, this small inventory control exercise showed the benefits of keeping track of the stuff you buy, even though they are essential goods. Also, having a meal schedule is really useful. The downside is that you spend 5 hours of your life planning all the stuff, but it is worth it. 

P.S. I also spent 7 hours matching all the clothes and shoes in my wardrobe to combine into pre-made outfits, trying them on and taking pictures of each outfit (this way I can simply choose a convenient outfit from my gallery and forget about the never ending struggle of “what to wear today”). But let’s leave this story for another time. 🙂

Sustainable and Stylish: Patagonia Leading the Way

What if I told you that it’s possible to enjoy high-quality outdoor clothing while also being environmentally responsible? You might think that sounds too good to be true, but one company has been leading the way in sustainable supply chain management for decades: Patagonia.

Sourcing and Reducing Waste

Patagonia is a California-based outdoor clothing brand that is not only committed to producing high-quality products but also doing so in an environmentally responsible way. It has been a leader in sustainable supply chain management since the 1990s, when the company became one of the first to use recycled polyester in its clothing (Check how Patagonia in recycling plastic bottles into fiber). Today, Patagonia continues to push the envelope when it comes to sustainable practices in its supply chain.

One of the ways Patagonia is working to create a more sustainable supply chain is by using sustainable materials in its products (Learn more about Patagonia’s actions toward sustainability) The company is committed to sourcing sustainable fibers and materials, such as organic cotton and recycled polyester, and reducing waste in its production process. Patagonia also works to ensure that its suppliers meet strict environmental and social standards, ensuring that the materials used in its products are ethically and sustainably sourced.

Programs for Impact: Repair, Reuse, and Recycle

In addition to sourcing sustainable materials, Patagonia has implemented several programs to reduce its environmental impact. For example, the company operates a program called “Worn Wear” (Check it here) which encourages customers to repair and reuse their clothing rather than throwing it away. Patagonia also operates several recycling programs, including a program to recycle old Patagonia products and a program to recycle plastic bottles into polyester fibers used in Patagonia clothing.

Renewable Energy and Supplier Support

Patagonia is also committed to reducing its carbon footprint through the use of renewable energy sources. The company has installed solar panels on its buildings, and its Ventura headquarters is powered by 100% renewable energy. Patagonia also encourages its suppliers to use renewable energy and has set a goal to be carbon neutral by 2025.

We are committed to doing better, moving towards 100% renewable and recycled raw materials by 2025 and increasing the number of Fair Trade certified sewn products across the entire line.

(Quote from Lombard Odier)

In 2017, Patagonia even sued the Trump administration over its decision to reduce the size of two national monuments, Bears Ears and Grand Staircase-Escalante, arguing that the decision was illegal and would harm the environment. The lawsuit was eventually dismissed, but Patagonia’s bold stance on the issue earned the company widespread recognition and respect.

A Moral Obligation to Save the Planet

In conclusion, I would like to share Patagonia founder Yvon Chouinard’s quote, that is indeed very inspiring and aligned with the company’s vision: “Who are businesses really responsible to? Their customers? Shareholders? Employees? We would argue that it’s none of the above. Fundamentally, businesses are responsible to their resource base. Without a healthy environment, there are no shareholders, no employees, no customers, and no business.”

Yvon Chouinard. (n.d.). AZQuotes.com. Retrieved March 07, 2023, from AZQuotes.com Web site: https://www.azquotes.com/quote/750460

Unveiling the Wonders of Blockchain in Logistics

Blockchain, cryptocurrency, big data, machine learning… I’ve heard these fancy words so many times in recent years but never thought about the true potential of the technology that lies behind these fancy names. Until I finally decided to learn. Honestly, after spending several days investigation on the topic I was completely blown out by the impact of blockchain on logistics. Here’s why.

No! Wait a minute. What was blockchain again?

Blockchain is a secure, tamper-proof way (it cannot be modified or altered without detection) for multiple people to store and share data. It is a decentralized database that stores records (called blocks) that are linked and secured with cryptography. Cryptography is a method of storing and transmitting data in a secure and encrypted form. Cryptography is used to protect data from unauthorized access and to ensure its integrity and authenticity.

In simple words, it’s a super-secure space for sharing data. Here you can check a very useful video by Simplilearn with more information about blockchain.

Pros of Blockchain in Supply Chain

In recent years, blockchain technology has emerged as a promising solution to many challenges in the supply chain industry. Blockchain technology has the potential to transform the supply chain in several ways, including:

Transparency

Blockchain technology allows all parties involved in the supply chain to access and track the complete transaction history of a product, creating greater visibility and accountability in the supply chain.

Traceability

Blockchain technology enables the tracking of products at every stage of the supply chain, allowing for quick identification of any problems.

Efficiency

Smart contracts and automation can reduce the time and cost associated with manual processing, increasing the efficiency of supply chain operations.

Security

The decentralized nature of blockchain makes it resistant to cyber-attacks and data breaches, providing a high level of security.

Sustainability

Blockchain can provide detailed information about the production process, helping consumers make informed decisions and encouraging companies to adopt more sustainable practices.

Real-life examples

In fact, many large companies are now implementing blockchain technology into their services.

In 2018, DHL and Accenture developed a blockchain-based prototype to track pharmaceuticals across the supply chain, with the goal of increasing accuracy, streamlining processes, and reducing annual freight spend. The prototype can handle a high volume of unique serial numbers and transactions per second. The project aims to reduce the risk of counterfeit pharmaceuticals in emerging markets, which account for up to 30% of pharmaceutical products. The blockchain technology used provides enhanced safety standards and reduces costs for all stakeholders involved in the supply chain. For more information check this article published on the official DHL web-site.

Walmart, a leader in supply chain management, is now using blockchain to create an automated process for handling invoices and payments of its 70 third-party freight carriers. The implementation of a blockchain network has not only solved payment problems but has also resulted in significant operational efficiencies. Check this Harward Business Review article to find out the key lessons for creating a blockchain network to improve business processes based on Walmart’s case.

Wow! It’s actually a really useful technology. But… the old saying goes, all that glitters is not gold. Blockchain has its cons.

Cons of Blockchain in Supply Chain

First of all, there is a privacy problem. While blockchain technology is secure, the transparency of the ledger means that transactions are visible to all participants, raising concerns about data privacy.

On top of that, the lack of clear regulatory frameworks for blockchain technology can lead to uncertainty and ambiguity, creating legal and regulatory challenges for companies using the technology.

Finally, blockchain technology is complex and requires technical expertise to implement and manage effectively. The current design of most blockchain systems is limited in terms of scalability. The more participants in a network, the more computing power and time it requires to validate and add new transactions to the ledger.

The future of blockchain

As we can see, blockchain technology offers an exciting opportunity for logistics companies to revolutionize their operations and gain a competitive edge in the industry. With fast advancing technologies the cons of blockchain will soon be balanced and it will be an essential part of the businesses in the nearest future.

I strongly believe that despite some challenges and limitations, the potential benefits of blockchain in logistics are truly awe-inspiring and can revolutionize the way we manage our supply chains, making them more transparent, secure, and efficient than ever before. So, let’s embrace the power of blockchain and take logistics to the next level!