Subscribe to our free, weekly email newsletter!


22nd Annual Study of Logistics and Transportation Trends: Masters co-create value

The Masters of Logistics have developed strategic partnerships with carriers that enable them to keep costs low while providing innovative service to their customers—and our data show that this value-added perspective is leading to performance that is significantly better than their competitors.
By Mary C. Holcomb, Ph.D., and Karl Manrodt, Ph.D., Contributing Editors
September 01, 2013

Business climate: Changing, uncontrollable
Over the past few years, various facets of the business environment have altered how shippers and carriers manage their operations. Participants reported that foremost among these is changing customer requirements, followed by cost to serve and demand uncertainty.

Regardless of size of company or position in the supply chain (e.g. retailer, wholesaler, manufacturer, or supplier), trying to meet the performance expectations and needs of customers is increasingly difficult.

The environment is even challenging for carriers. According to Derek Leathers, president and COO of TL giant Werner Enterprises: “Many trucking companies are dealing with a very high debt load and limited access to credit, equipment is much more expensive, and the residual value of old trucks is low. Added to that, drivers are simply not available.”

What this means for shippers and carriers alike is that flexibility is becoming more critical. The question for shippers is how can they increase their flexibility, especially from transportation providers. 

One option would be to use a wide range of carriers. If transportation is all the same, it really doesn’t matter who moves the goods. This is the commodity perspective. Or, you could view transportation as a value-added service and work to develop relationships with a set of carriers who will work with you and provide the needed flexibility. Either option provides a response to changing customer requirements. However, the big question is whether or not it’s the right one in a few years if capacity continues to tighten and transportation costs keep on rising.

About the Author

Mary C. Holcomb, Ph.D., and Karl Manrodt, Ph.D.
Contributing Editors

Mary Collins Holcomb, Ph.D., is Associate Professor of Logistics and Transportation at The University of Tennessee.  Dr. Holcomb was also a member of the faculty in Transportation and Logistics at Iowa State University, Ames.  She holds B.S., MBA, and Ph.D. degrees from The University of Tennessee.  Her professional career involved some eighteen years at the Oak Ridge National Laboratory in transportation research and policy issues for the U.S. Departments of Energy, Transportation, and Defense.  Dr. Holcomb’s background also consists of various industry experience with the former Burlington Northern Railroad, General Motors, Milliken & Company, and two years of collaborative research with Procter & Gamble.  She is a principal researcher in one of the longest running annual studies – Logistics and Supply Chain Trends and Issues – that has been conducted for more than 14 years.  Dr. Holcomb is the former editor of the Transportation Energy Data Book, author and co-author of numerous reports and articles in the area of transportation policy and logistics systems design.

Karl Manrodt, Ph.D., serves an Associate Professor in the Department of Management, Marketing and Logistics and Georgia Southern University, located in Statesboro, Georgia.  Prior to joining Georgia Southern, he served as the Executive Director for the Office of Corporate Partnerships and the Supply Chain Strategy Management Forum in the Department of Marketing, Logistics and Transportation at the University of Tennessee.  Degrees include a B.A. in Philosophy and Psychology, Wartburg College, M.S. in Logistics, Wright State University, and his Ph.D. at the University of Tennessee.  He is the recipient of the Chancellor’s Citation for Professional Promise, the Walter Melville Bonham Dissertation Scholarship, both at the University of Tennessee, and the E. Grosvenor Plowman Award awarded by the Council of Logistics Management.


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Seasonally-adjusted (SA) for-hire truck tonnage in March was up 1.1 percent on the heels of a revised 2.8 percent (from 3.1 percent) February decline, with the SA index at 133.5 (2000=100). This is off 0.3 percent from the all-time high for the SA of 135.8 from January 2015 and is up 5 percent annually.

Intermodal volume was up 8.1 percent annually at 280,016 containers and trailers. This outpaced the week ending April 11 at 270,463 and the week ending April 4 at 271,127. AAR said this tally marks the second highest weekly output it has ever recorded as well as the first time container and trailer traffic was higher than carloads for a one-week period.

Ocean cargo carrier service reliability across the three core East-West trades hit a five-month peak in March with an aggregate on-time performance of 64 percent, according to Carrier Performance Insight, the online schedule reliability tool provided by Drewry Supply Chain Advisors.

The Airforwarders Association, which represents more than 360 companies that move air cargo through the supply chain, today applauded an agreement reached by Congressional leaders to advance legislation giving the President authority to conclude key global trade agreements.

Despite great opportunity for growth, the logistics market in Latin America is lagging behind other emerging markets thanks in part to its notoriety for corruption, violence, poor infrastructure and government bureaucracy.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA