Reilly and Nahigian of N.E. SIOR Chapter speak at CBA event

Boston, MA Chuck Reilly and Rob Nahigian of the N.E. SIOR Chapter were invited speakers at the CBA breakfast education event on “The New World of Logistics-Supply Chain Site Selection: Is Boston Ready?” on November 17. The event was held at Atlantic Wharf, 290 Congress St. 

Nahigian of Auburndale Realty served as the moderator for this industrial program. Reilly of Dacon Construction was one of the panelists. Two other panelists also included Lisa Wieland, port director of Massport and Jennifer Tanner, manager of industrial development, CSX. 

Nahigian began the program with his overview of the supply chain world from a 50,000 foot viewpoint. He discussed the issues shipping from Shanghai to your shelf. He discussed how cargo ships have become larger with west coast deliveries rather than east coast deliveries. The Panama Canal was not adequately wide nor had the depth to handle cargo ships over 10,000 TEUs. A third canal was thus constructed to attract bigger ships and more business. Nahigian stated that the east coast ports however did not have the port depth or bridge clearance to handle the ships if they arrived. The discussion focused on site selection decisions by distribution companies and port of entry. He discussed how transportation comprises 55-60% of supply chain costs. 

Wieland then covered the Boston Harbor facts and figures and how shipping trade routes play a major factor in port and coast decisions. She positioned Boston as a regional market server that was not attempting to compete with Charleston or Savannah. Boston has become a nice alternative to the traffic burden of NJ/NY port. 

Tanner spoke about partnering with CSX as a class 1 rail and doing business with class 2 and class 3 rail companies. She discussed limitations with bridge clearance, federal regulations and how CSX spends billions each year on rail maintenance. 

Reilly finished the program on the internal building automations that help to lower distribution costs. Such innovation with conveyors, the use of the KIVA robot, Locus and Fetch were all highlighted. He had case studies from Dacon of UPS/Pratt Whitney in NH, FedEx Ground in Natick and Wilmington, Mass. and Gordon Food Service. Then he introduced mathematical formulas used in site selection and the Kepner-Tregoe model. Ultimately rent may not be the deciding factor in a building decision.