The Investor's Shelf — one book
Arriving Today

Arriving Today

Christopher Mims
2021
T2 336 pages · about 5h 36m to read OL25908134Wgoodreads

One item followed through the modern JIT supply chain end to end.

Summary

Mims, a Wall Street Journal technology columnist, follows one product, a USB charger, from a factory in Vietnam through ocean shipping, a port, a distribution centre, long-haul trucking and last-mile delivery to a customer's door. Each stage becomes a chapter on how that part of the supply chain works and who does the work.

The reported material is the strength. He covers container ship operation and the economics of ever-larger vessels, port automation and the union agreements that constrain it, the Port of Los Angeles and Long Beach as a bottleneck, the physical layout and algorithms of an Amazon fulfilment centre, the work of the associates who pick items, the robotics that move shelves, the trucking industry's driver shortage and the effect of electronic logging devices, and the economics of last-mile delivery contractors.

The analytical argument concerns work. Mims argues that automation in logistics has generally not replaced workers but has restructured their jobs so that the human performs the tasks machines cannot, at a pace machines set. He documents injury rates in fulfilment centres, the productivity monitoring, and the shift of employment risk onto contractors in delivery. He also traces the intellectual history from Taylor's scientific management through Toyota's production system to current warehouse practice, arguing that the current arrangement extends rather than departs from that tradition.

The book is reporting rather than analysis of supply chain economics, and it does not model costs or examine alternatives. It was written before and during the pandemic disruptions and captures the system just as it broke, which makes some of the detail a snapshot rather than a description of steady state. The treatment of Amazon relies substantially on former employees and on the company's public statements.

Key takeaways 7

  1. Automation in logistics has restructured human work rather than eliminating it, leaving people to do the tasks machines cannot at machine pace.
  2. Ever-larger container ships lowered cost per unit at sea while concentrating volume into ports that cannot absorb the surges.
  3. Port throughput, not shipping capacity, is the binding constraint on the flow of goods into the United States.
  4. Fulfilment centre productivity depends on software directing human movement, so the algorithm rather than the supervisor sets the pace.
  5. Last-mile delivery economics work by shifting employment cost and risk onto contractors rather than by reducing the underlying cost.
  6. The trucking driver shortage is a retention problem produced by pay and conditions rather than a shortage of qualified people.
  7. Current warehouse management descends directly from scientific management, with software performing the measurement Taylor did with a stopwatch.

Who should read it

Operators and investors in logistics, retail and e-commerce who want a concrete stage-by-stage picture of how physical goods actually move.

Where it sits in the reference 3

Business models
Industries
Secular themes

Similar books 6

Chosen by shared topics, the entries that hold them, and the people who recommended both.

The Box
The BoxMarc Levinson
Apple in China
Apple in ChinaPatrick McGee
Chip War
Chip WarChris Miller
How the World Ran Out of Everything
How the World Ran Out of EverythingPeter S. Goodman
The End of the World Is Just the Beginning
The End of the World Is Just the BeginningPeter Zeihan
The Outlaw Ocean
The Outlaw OceanIan Urbina