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In Logistics, time is waste. A product in transit or in a warehouse is a product not in use. Surplus products are needed to cover delays and potential delays of products that are on their way. A freight train’s cargo is very expensive and it isn’t adding value until it is put to use. This expense and delay produces expenses and delays throughout the supply chain. Inventory must be on hand, warehouses must store the inventory, extra delays must be added to ensure enough products will be available, and when demand for a product falls all those surplus products become garbage. <br /> <br />Competitive advantage in the global economy is adapting to change faster. Company profits for most businesses depend on this more than shipping costs or fuel costs. <br /> <br />Railroads must find ways to compete with trucks on delivery time. If they can that may be worth taxpayers money. If they can’t lower shipping and fuel costs won’t save them from decline.
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