Supply chain to rural Alaska: how native villages are supplied.

• Author: Bohi, Heidi
• Position: NATIVE BUSINESS

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Fresh fruit doesn't stand a chance in Paul Johnson's house. After spending most of his 38 years in rural Southeast, his tastes have been geared toward what was always available--canned fruits and vegetables. In communities that are accessible by air and water only, the availability of fresh produce, meats and dairy products is contingent on infrequent ferry stops, barge service or air cargo, which is more convenient, but substantially more expensive.

COST VERSUS CHOICE

Johnson, a principal and director of global logistics for PolyEarth Construction International, says that even since his childhood, when it comes to the supply chain and logistics required to get Alaska villages and rural communities supplies, the biggest problem that remains is that though expectations of residents living in these areas have changed, one thing remains the same: there are limited transportation modes, especially in off-road communities, and cost often wins out over choice.

"Money is the overriding element," Johnson says. "You can get better quality and shipments can be more frequent, but you have to pay for it."

Until about 15 years ago, more than 200 small communities across the state had few choices when it came to ordering supplies ranging among groceries, clothing, vehicles and even certain luxuries, such as a child's birthday cake or fresh flowers. Depending on the location, scheduled air cargo and barge service were the common means for getting supplies, which often meant waiting for more than a month before they arrived depending on seasonal considerations and how much money someone was willing to pay to expedite their shipment.

TIMING QUALITY

Today, though the modes of shipping have not advanced, because of Internet and other technologies, the opportunity for choice has improved and following that, peoples' expectations have changed in terms of the quality they expect and the immediacy of the delivery. In the past, Johnson says, to get a shipment that was fast and affordable was impossible, which meant that quality always suffered. Monthly barge deliveries were a way of life and rural Alaskans adjusted their tastes and preferences accordingly. Today, not only do rural Alaskans self-order online, but also backhauling gives them even more flexibility when trying to get personal and business supplies to their community.

When it comes to the supply chain for small communities, Johnson says it is important to understand that this is not like the 1970s...