The goal of the Supply Chain & Transportation career cluster is to move goods and materials from point to point, ensuring that things get to the right place at the right time as efficiently as possible. From shipping grain or steel by cargo ship to a manufacturer overseas to delivering groceries from a local store to a customer’s home, the work of this cluster keeps everything on the move.
This cluster touches virtually every industry as well as government and military units. It encompasses companies that deal with freight, shipping and warehousing, manufacturers that receive raw materials and ship finished products, and retailers that receive products and ship goods to customers.
The industry also includes maintaining transportation equipment for trucking, railroad, and airlines and their associated infrastructure, such as ports, airports, and roads.
This cluster is affected by global economic and climate conditions and trade policy that can change routes, costs, markets, and the availability of fuel and materials very quickly.
At the same time, consumers have grown accustomed to ordering items delivered promptly and directly to their homes, and the tension between this ongoing demand and unpredictable supply creates a challenging issue.
The pandemic of 2020 caused a global supply chain slow down—and even stoppage in some areas—that led to a long-term shift in how the industry operates; there is now greater focus on ensuring that operations can continue even if there is some interruption.
Technology has a variety of influences on this cluster. It’s used to ensure shipping routes are adjusted to reflect real-time data, and risks are minimized. Robots are used to pick orders and retrieve items in warehouses or stores. Analytical tools, including AI, are used to precisely forecast the amount of inventory needed of a raw material or finished product for the next step in a process.
Quick Facts
- Regulations have a major impact on this industry, from local to international trade laws, customs, tariffs, and more.
- With automation, jobs are shifting from direct operations to remote management, maintenance, and programming.
- The industry is taking steps to reduce carbon emissions, such as using alternate fuel vehicles, optimizing routes, and tracking environmental impacts of activities.
- A shortage of truck drivers and specialized technicians continues to drive up wages in those fields and affect the capacity of transportation operators.
- The use of drones, along with the development of self-driving trucks and ships, is expected to have a major impact on the cluster.
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