Sunday, 1 March 2026

Learn vrom other industrial sectors

 It is amazing how so many sectors fail to observe, and adopt (or adapt) successful moves in other sectors.  One of the most successful innovations (and productivity improvement moves) of my lifetime is the introduction of the containerswithin the logistics sector.  We are so used to seeing ships laden with hundreds - or even thousands - of containers that we forget that this was a relatively recent (1950s).innovation 

Before this, materials from ships were unloaded piece by piece and the turnaround for a large cargo ship could have been weeks.  Goods were also much more likely to be damaged by the loading/unloading process and thefts from ports were more common. So, the container solved a number of problems and was adopted across much of the logistics sector to allow for more efficient transfer of goods from one carrier to another - ship to train, for example.


The result was a revolution in global transport (and global trade) with much faster turnaround times and reduced shipping/transport costs.  All because someone had the bright idea to adopt a standard sized container.


Another  important innovation was the development of the pallet for storing/loading/transporting materials - meaning handling equipment and storage facilities could be made to established standard dimensions.


So logistics has some good practice - and important lessons.  How many other sectors can point to such successes.   


For example, the construction sector has been slow - indeed, reluctant - to adopt modular construction techniques. Experiments and small-scale innovations have been tried but there is no large-scale move towards modular components for buildings.


Perhaps there are good reasons for this but I cannot see them.  Surely there are enough common factors among buildings of particular types to allow for a degree of standardisation and the use of pre-fabricated components.


The lesson here is that if you are trying to improve productivity and innovation, you should widen your horizons when looking for ideas and potential improvements.  

Look at your competitors by all means but also look at other industries and sectors.

EvanCarmichael.com