Pointing the Blam

1. This article is about how the delivery of some high tech electronics are going to be delivered late and this will cost the company millions. Also the article talks about how the German company called Siemens was always in the news for something negative. The company had been on the right track and had gotten a contract for high speed trains but they will not be able to deliver the parts on time. 

Siemens AG is a German multinational engineering and electronics conglomerate company headquartered in Munich, Germany. It is the largest Europe-based electronics and electrical engineering company. Siemens' principal activities are in the fields of industry, energy, transportation and healthcare. It is organized into five main divisions: Industry, Energy, Healthcare, Infrastructure & Cities, and Siemens Financial Services.

2. This had me thinking about the transportation we were talking about last week. By just needing to push back the order by about a month or two the delivery costs are going to be in the millions. I know that transportation was expensive and when a company ships multiple items it will cost close to a million if there was a delivery change but I never thought that transportation costs could cost multiple millions for a company that needed a delivery change. Just making me think that even though those freight containers are useful it still costs a company changing moment. These millions could be the difference of if a company survives and if a company goes under. Thinking that delivery costs is a difference maker is a very interesting thought because then what else could make a major difference in a company? The little costs might not be so little any more. 

3. The solution to this could be having open ended delivery dates, or even not booking transportation for the goods so far in advance. Trying to cut down on delivery costs is a huge deal and one that should always be taken into consideration. All companies should try and minimize transportation costs by not only booking transportation in advance but also knowing what product you are making and know when to not book transportation for the goods if the company even has a doubt the product will not be in on time.