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Post Peak Retail Logistics

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Post Peak Retail Logistics

Unread postby PrairieMule » Wed 31 May 2006, 16:13:42

As I start the final third section of Kunstler's Long Emergency I have been pondering the subject of logistics pre hard prash or a post soft crash. Will the mail still run? If for some example in the next five years the US demand goes up to say 25 million barrels per day and we are cut to 18 million barrels per day, would the US mail still operate on some degree? If so perhaps instead of folks running to the mall to buy clothes or blockbuster to get the newest relase they are both completely replaced by LLBean and Netflix. Very similar to what Sear's and Roebucks and Ambercrombie and Fitch use to be 100 years ago. It's often said we should invest in gold and silver as smart in a post crash scenario. Perhaps a safe paper investment would be specific 401K funds or stock in direct mail retailing in companies like Cabela's, Victoria's Secret, Gamefly, and so on. Not sure of the hard data of energy consumption to mail a dvd but it has to be less than what it would cost to stock it a retail energy hog like Wal-mart. It also has more risk than gold but might be a safer longshot than retirement funds or stocks in Coca-Cola and Walmart.

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Re: Post Peak Retail Logistics

Unread postby peaker_2005 » Thu 01 Jun 2006, 10:11:40

The crux of the current system is the Just-in-Time delivery system, and that's the main issue. Many goods can be preserved, and it's a non-issue for non-perishables such as a DVD (as in, as long as it gets there...).

Perishables however will need to be more local.

Stores barely have a safety stock these days. When the crash does happen, it'll take DAYS, not weeks for food supplies to become an issue. First priority needs to be rebuilding the railways (whether light or otherwise), which will help distribution. Thankfully they're electrified already here in Sydney, so that eliminates one problem. Crowding IS going to be a major issue here though (I foresee Sydney hiring pushers within the next few years)...
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Re: Post Peak Retail Logistics

Unread postby PrairieMule » Thu 01 Jun 2006, 11:47:59

Thats is for the most part how I see Peakoil, a interruption in in the just-in-time inventory. From a logistical point, non-perishables could still have a outlet via online shopping or catalogs. Anything you could find at a Wal-Mart from cosmetics, a ipod, to a new Mossberg shotgun can theoreticly be shipped direct mail with reduced energy but adaptive economy. It may not be as fast but it can still exist.
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Re: Post Peak Retail Logistics

Unread postby Atlantean_Relic » Thu 01 Jun 2006, 12:20:10

I don't see why online stores still couldn't run(assuming we can keep the lights on.) What would make it much differnt from the sears catalogs of old?
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Re: Post Peak Retail Logistics

Unread postby AmericanEmpire » Thu 01 Jun 2006, 15:14:27

In the long run we are gonna be going back to something more like the Pony Express assuming we will have any mail at all.
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Re: Post Peak Retail Logistics

Unread postby Jack » Thu 01 Jun 2006, 17:19:13

$this->bbcode_second_pass_quote('Atlantean_Relic', 'I') don't see why online stores still couldn't run(assuming we can keep the lights on.) What would make it much differnt from the sears catalogs of old?


Delivery costs.

For example - I decided to order a book. New, it was 15.90 with free second-day delivery (I use Amazon prime).

Used, new condition was $8.80 - but shipping was $5.50.

At some point, shipping costs exceed product costs. Then they become a multiple of product costs - and hence, not viable.
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Re: Post Peak Retail Logistics

Unread postby PrairieMule » Thu 01 Jun 2006, 17:51:05

$this->bbcode_second_pass_quote('Jack', '')$this->bbcode_second_pass_quote('Atlantean_Relic', 'I') don't see why online stores still couldn't run(assuming we can keep the lights on.) What would make it much differnt from the sears catalogs of old?


Delivery costs.

For example - I decided to order a book. New, it was 15.90 with free second-day delivery (I use Amazon prime).

Used, new condition was $8.80 - but shipping was $5.50.

At some point, shipping costs exceed product costs. Then they become a multiple of product costs - and hence, not viable.


Mmmmm, but what if that book could be combined other books and burned on a disc then sent snail mail? Even in with less selection and longer time it still could be possible for a while if we have soft crash. Not saying absolutely true-just possible..
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Re: Post Peak Retail Logistics

Unread postby Jack » Thu 01 Jun 2006, 18:54:41

$this->bbcode_second_pass_quote('PrairieMule', '
')Mmmmm, but what if that book could be combined other books and burned on a disc then sent snail mail? Even in with less selection and longer time it still could be possible for a while if we have soft crash. Not saying absolutely true-just possible..


Better yet, convert the book to PDF format, and let people download it. The delivery costs, along with materials costs, become trivial. Existing books could be scanned - and there's no reason a royalty payment couldn't be sent to appropriate parties.

This works well for information. Getting a case of MREs, a shirt, or a packet of seeds goes back to the transportation costs, though.
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Re: Post Peak Retail Logistics

Unread postby PrairieMule » Thu 01 Jun 2006, 19:47:48

$this->bbcode_second_pass_quote('Jack', '')$this->bbcode_second_pass_quote('PrairieMule', '
')Mmmmm, but what if that book could be combined other books and burned on a disc then sent snail mail? Even in with less selection and longer time it still could be possible for a while if we have soft crash. Not saying absolutely true-just possible..


Better yet, convert the book to PDF format, and let people download it. The delivery costs, along with materials costs, become trivial. Existing books could be scanned - and there's no reason a royalty payment couldn't be sent to appropriate parties.

This works well for information. Getting a case of MREs, a shirt, or a packet of seeds goes back to the transportation costs, though.


Hey Jack, I guess that means Columbia House CD Clubs will still be around. :lol:
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Re: Post Peak Retail Logistics

Unread postby pea-jay » Thu 15 Jun 2006, 02:49:32

$this->bbcode_second_pass_quote('', 'S')tores barely have a safety stock these days. When the crash does happen, it'll take DAYS, not weeks for food supplies to become an issue


Heck, even if nothing is wrong, I can tell when a delivery truck hasnt come yet. My local safeway gets is shipment in on tuesdays, so thats when the pickings are the best. Sunday and mondays are downright barren. Remember though, it isnt just just in time, it is the distribution center model becoming prevelent.

Walmart for one has gone this direction in a big way. Ever see a distribution center up close. Theyre amazing in terms of retailing precision, aggregating shipments from suppliers and parceling them out to each of their stores in truck shipments with a mix of products inside. Food retailers do this too now, though I still see independent stocking of grocery shelves like from the local soft drink bottler.

SUPPLIER SUPPLIER
STORE-->order-->|---------------------|-->requested items-->STORE
STORE-->order-->|DISTRIB CENTER |-->requested items-->STORE
STORE-->order-->|---------------------|-->requested items-->STORE
SUPPLIER SUPPLIER

This model is hugely efficient in terms of economics, but is pretty wasteful on the fuel end, especially for those areas that produce a lot of stuff but are forced to ship them a great distance to the distrib center only to be trucked back. Thats a waste. Though on the otherhand, multiple supplier runs to distant stores are more wasteful than a single combined truck run to the same location. But that deft choreography of truck and container movements is bound to break down and thats when a lack of inventory will really bite.
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Re: Post Peak Retail Logistics

Unread postby emersonbiggins » Thu 15 Jun 2006, 09:53:43

Speaking of wasteful, the irony was not lost on me growing up 4 miles from both the Best Buy and Circuit City southern US distribution centers, but still needing to drive 180-200 miles roundtrip to buy something from either store.

That, my friends, is wasteful (in terms of fuel).

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Re: Post Peak Retail Logistics

Unread postby gnm » Thu 15 Jun 2006, 10:29:42

$this->bbcode_second_pass_quote('Jack', 'B')etter yet, convert the book to PDF format, and let people download it. The delivery costs, along with materials costs, become trivial. Existing books could be scanned - and there's no reason a royalty payment couldn't be sent to appropriate parties.

This works well for information. Getting a case of MREs, a shirt, or a packet of seeds goes back to the transportation costs, though.


Precisely why I think the internet will live on long after energy prices cripple other parts of the economy.

One thing to consider though is if it costs less to ship the item (like say $15 on the book) than it costs to drive and go get the item (Say SUV at 15mpg has to drive 30 miles one way to bookstore with $5.00/gal gas) then it still might be economical to have it shipped. But I guess we will have to wait and see what that will do to shipping costs. Whether or not they could compete with going and getting it yourself (plus the retail premium costs of keeping the store open)

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