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Logistics Managers: It's Time for Sage Advice

By Michael A. Levans, Chief Editor -- Logistics Management, 2/1/2007

In last month’s Logistics Outlook we confirmed that there’s a glimmer of relief in sight for shippers who are willing to put in some extra effort when negotiating with their truckload (TL), less-than-truckload (LTL), and ocean carriers. How long the window of opportunity will exist is open for discussion.

That extra effort is key to taking advantage of new opportunities to improve rates. What does that entail? According to AlixPartner’s Paul Svindland, a speaker in our Logistics Outlook webcast, you need to put in the time to “get to know” your freight, plan moves based on that knowledge, and communicate precisely defined needs to your carriers. If you missed the webcast, you can still hear that and other sound advice by accessing the archived version at www.logisticsmgmt.com/outlook2007.

Our five webcast panelists agreed that the common denominator of successful, long-term negotiations is to be fully engaged in both your logistics operations and your relationship with carrier partners. The better you understand your own needs, they said, the better your carriers will understand your expectations. Once that’s been achieved, you can both agree on the best ways to move your freight and the metrics for measuring success.

Encouraging readers to be more engaged in their business was an important motive for developing our new back-page column, “Sage Advice.” Our columnists, John Gentle and Wayne Bourne, will draw from their combined 65 years of experience to help shippers better define the rules of engagement as they relate to logistics operations.

John Gentle kicked off this endeavor last month with his column, “You’re not entitled to anything!,” in which he elegantly laid out the rules of decorum in shipper/carrier negotiations. Many of you know John from our cover story in November 2006, when he was awarded the 2006 NITL Executive of the Year. You may also know him from Owens Corning, where he spent 35 years transforming the company into a “shipper of preference” for its 300-plus carriers.

Our other Sage Advice columnist is Wayne Bourne, a logistics expert with a firm handshake and a welcoming smile. If his is a familiar face, it may be because he was featured on LM’s October 2004 cover. Or you may have encountered him at numerous industry events and conferences. Wayne spent the last 14 years at Best Buy as a vice president responsible for transportation, supply chain, and private fleet operations. Before that, he spent 13 years at General Mills, where he managed inbound transportation of raw materials in support of the company’s manufacturing operations.

John and Wayne have managed logistics and transportation operations and budgets through just about every type of economic environment imaginable. Now they’re ready to share their practical, no-nonsense advice. Wayne’s first column, “Are you fully engaged?,” appears on Page 64.

Comments? E-mail me at michael.levans@reedbusiness.com

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