This is my fifth and final blog post. In this blog post, I
am going to discuss one of the major issues that Industrial Engineers will face
in the near future. This problem is the expansion of the Panama Canal. The
canal is set to be completed by 2014 and will present many new challenges for
anyone involved.
The Panama Canal is facing a major expansion that is
doubling its overall capacity by allowing much larger vessels to transit. This
means that there will be a significant increase in container shipping on both
the East and Gulf coasts. The problem is finding out which third party
logistics providers are ready for the sudden increase in twenty foot equivalent
units.
Industrial Engineers can gather different organizations’
maximum capacities and current running capacities of warehouses to analyze.
Once the data has been analyzed, the projected increase in containers can be
added in. Then, data analysis can be done again using the projected numbers. At
this point, recommendations can be made to the respective companies. According
to the utilization percent, different measures will need to be taken.
For example, if a warehouse has a maximum capacity of
200,000 square feet and a running capacity of 180,000 square feet, the
utilization percent is 0.90. Then, if you add in a 20% increase in shipping from
the expansion, this warehouse will not be big enough. This could make the
company much less successful than if it would have been properly prepared.
In conclusion, it is highly unlikely that all organizations
will see the same increase in shipping. Therefore, each individual organization
needs to do preliminary data analysis and make projections. The recommendations
made to the company would be purely from the data analysis. However, a company’s success in the future could be
determined by the Panama Canal expansion and its possible impacts.