Posts Tagged ‘just-in-time’

The Road to China…

Thursday, July 29th, 2010

…would appear to be the A14, which runs from the intersection of the M1 and M6 through the lower East Midlands, past Cambridge, Newmarket, Bury St.Edmunds and Ipswich to its end point at Felixstowe Docks.

I came back from Suffolk along the A11 on Monday, which combines with the A14 for a few miles near Newmarket and I was amazed at the number of lorries carrying shipping containers going the opposite way — one about every fifteen seconds.

This traffic says a huge amount about the British economy as all these (presumably mostly empty) containers were heading back to the container port at Felixstowe, which handles 35% of the UK’s container traffic. Nowadays, almost all consumer goods seem to be imported, mainly from China — and essentially the A14 is a conduit for all these goods to be shipped into the country from the far east.  (A fascinating fact quoted by Wikipedia and also very apposite to the state of the country today is that much of the land that’s occupied by Felixstowe Docks belongs to Trinity College, Cambridge — so we have another instance of the old money of the elite profiting from the removal of livelihood of those further down in the social pecking order.)

I’ve always thought Argos epitomised the flooding of British households with dirt cheap, almost instantly disposable consumerist tat imported directly from China. Because they don’t need to use nice packaging your product is usually handed over in some grubby beige box with Chinese lettering and some barely understandable instructions in some strange variant of English. However, I didn’t realise quite how efficiently their operation works.

In 2007 Argos opened a warehouse (or what it calls a Direct Import centre) in Kettering (by the A14) which basically receives the containers from the docks at Felixstowe (or perhaps Immingham or Southampton) and pulls out the many smaller boxes from within and then loads them on to lorries to their regional distribution depots — which tend to be dotted around the motorways and trunk roads — predominantly in the Midlands as that’s where all the imports are channelled towards — flowing inwards to the depots and then radiating back out again to the stores. They handled 12,000 containers in 2007 — which is about 33 a day assuming 7 day a week operation. There’s a few big ones on the M1 (near Leicester and Milton Keynes) and there’s a huge one at Burton on Trent.

Argos has quite a useful website where you can check whether items are in stock at your local store and, if they aren’t, then search for stock at nearby branches. However, this facility isn’t quite as useful as it might seem because their stock control seems to be so centralised and ‘just-in-time’ that once an item disappears from one store then it’s often unavailable anywhere because the reason it’s not in stock at the first store is because there’s none left at the huge warehouses that serve more or less the whole country. If there’s been an unexpected rush on any stock then the replenishments are likely to be in a container going through the Indian ocean or, just as likely, it’s gone forever as the factory in China will now be making something else.

This is unlike the things we still produce in this country — food perhaps — where the supply lines are short enough to mean the producers can respond to demand.

The new Argos catalogue came out this week — a massive doorstep of a thing. It covers the period up until Christmas so shows the lead time involved. The catalogue will need to have been sent to the printers a couple of months ago so all the merchandising and pricing decisions will need to have been made several months ago…and the buying before that. The stuff will need to have been designed before that. It’s quite likely there’s at least a year’s lead time on a lot of the products before the catalogue goes on sale.

Of course there’s then a massive risk that these products — once manufactured won’t sell in the quantities that are required. That’s why global capital tends to associate a lot of the riskier stuff, like faddy toys, with huge marketing events — like films aimed at children.

Argos, because of their catalogue, are only an extreme example of this process of feeding global capital — big companies like Tesco and, perhaps, even those nice people at John Lewis are all rolling their containers along the A14, disguised anonymously with names like Hapag or China Shipping — but they’re still full of junk that they’ve decided we’re going to buy and their marketing departments will succeed in brainwashing us to comply.

Eruption of Naked Vested Interests?

Monday, April 19th, 2010

The ash cloud from the Icelandic volcano has had a transformative effective on some aspects of life. For the first time in probably seventy years or so the skies have been almost completely quiet and as nature intended. The vast majority of northern Europe’s population will never have experienced life without the intrusion of aircraft noise or the despoliation of blue skies with vapour trails.

I guess the magnitude of the effect depends on where one lives — those near other sources of noise, such as busy roads, won’t notice much difference nor will those who live a long  distance from airports and away from flight paths. Here it’s been noticeable as we tend to get low-flying take-offs from Luton in the summer when they have to keep to low altitude to avoid the increased traffic coming to and from Heathrow. In the winter the planes seem to be able to climb more quickly. We also have a lot of activity associated with the Bovingdon stack for Heathrow but, as these planes are circling and their engines idling, that doesn’t create so much noise. Nevertheless, we’re experiencing an alternative that is completely unexpected and people will be much more aware of the environmental costs when flights do eventually resume. I would expect the relative tranquility over West London will now put paid to any thoughts of a third Heathrow runway.

The response of the airline industry to the crisis has been completely self-serving and casts the managements in an appalling light. When they thought the ban was very transient, they were reasonably happy to shut down their operations and many have left their passengers abroad in appalling conditions — with little regard for their welfare or even legal obligations in providing food and accommodation. British Airways, bmi and Ryanair have consistently extended their own cessation of operations beyond the NATS deadlines. BA decided to cancel all its flights for today when NATS had only announced a closure of airspace until one in the morning (it’s now been extended to 1 am tomorrow). Theoretically, airspace could have been opened and the airlines would not have started their operations up until it suited them.

Now the closure of airspace has extended to several days the airlines have changed tune and seem to be more motivated by their bottom lines than any other consideration. Sending up one or two of their own planes seems to be nothing more than a sick publicity stunt designed to undermine the credibility of the air traffic regulators. The point about this cloud is that it’s not homogenous. There are concentrations of ash that can’t be forecast. A hundred planes could go up and fly through it without too much trouble but one may hit a concentrated plume of ash that would bring it down. Naturally, if the airlines manage to pressure the regulators into opening up airspace and a disaster occurred then they would be first to pass the buck on to the air traffic control authorities who declared the skies safe. They are basically putting pressure on someone else to take responsibility for a decision that may cost thousands of people their lives — which is despicable. The pressuring of the safety authorities by the airlines makes me question their overall commitment to safety and makes me glad that aviation is such a heavily regulated industry — it needs to be with such unprincipled sharks for management.

Another effect is to remind everyone who takes the Internet and mass air travel for granted that the world is a bigger place than it seems. When people take long haul holidays they really are going a long way away from home and it’s perhaps not a bad thing that we all realise that globalisation in its various guises depends on some very tenuous and fragile links: some big, expensive, vulnerable machines (there can’t have been more than a few thousand long-haul jets ever been manufactured) and perhaps a few hundred cables and a few dozen satellites to carry communication. It only took a ship’s anchor to cut through the main cable that links India with Europe a couple of years ago.

There are some genuinely distressing cases of suffering caused by the cessation of air travel, such as the people waiting for bone marrow transplants. However, most of the consequences should give us cause for thought — do we really need to cause so much environmental damage to bring green beans and baby corn to our supermarkets, especially as these products use up so much water in the developing countries that grow them? There will be a lot of manufacturing supply chains disrupted — high value items like computer processors are flown from the Far East to Europe and North America on a just-in-time basis. No-one should feel any sympathy for the companies whose business models have been disrupted by this — it’s a risk of doing business that way. They’ve made a lot of money by not having working capital invested in stock and it’s no bad thing that they are reminded of the inherent recklessness of just-in-time and lean manufacturing. Unfortunately it’s likely that workers in manufacturing industries might get laid off due to parts shortages but this isn’t due to the volcano — it’s down to their spiv managements and those who feed the destructive demands of global capital — the bankers and management consultants.

And is it really so important that the elite athletes can’t make the London Marathon for a year or that Liverpool might have to go on a train to a football match? Or that Mylie Cyrus can’t make her film premiere in London? (Actually, the increasingly hysterical ‘something must be done’ tone of the news reports seems to reflect the frustrations of the journalists themselves who can’t fly off on jollies and are being forced to slum it on the trains or on the motorways.)

It’s tempting to think that this volcano is some sort of Gaia response from the planet to stick two fingers up at globalisation and global capital through its dependence on aviation. Those not completely in thrall to global capital might want to look back on the last few days and consider whether things always have to be the way we’ve come to accept them.