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Shippers are coming of age

By Michael A. Levans, Group Editorial Director -- Logistics Management, 12/1/2007

Way back at the beginning of 2006 we predicted that shippers would be facing a long and arduous “endurance test” in which their management and negotiating skills—as well as their patience—would be tried like never before. Our prediction was right on the money.

However, as 2007 rolled in, our esteemed group of economists, industry watchdogs, and leading shipper sources indicated that there just may be a few opportunities knocking at the door—chances to take advantage of some rate breaks and jump into some capacity in certain modes. There was light creeping through the cracks in the door signifying some hope, a bit of much needed relief.

But more importantly it was time to find out just how much shippers had learned about themselves and their operations over a tumultuous two-year period. Did they keep their carrier relations strong enough to now sit around a table to talk about rates? Were they able to make the tough distribution network changes, or implement new process or technology to help save some time and money? Did shippers work on improving collaboration, communication, and innovation during the tough times so that they may take advantage of any opportunity, no matter how big or small?

What we found during the course of our reporting in 2007 was quite enlightening. In case study after case study we illustrated not only how resilient Logistics Management readers have become, but how many shippers did, in fact, come of age over the past three years. As I mentioned in a column earlier this year, there is strong evidence that shippers have listened and, in most cases, acted in the best interest of their own survival.

The success the “new shipper” is having was probably best summed up in Roz Wilson’s 2007 State of Logistics report released this past summer. “There’s a new state of interdependence,” Wilson told us. She believes that shippers have been pushed to become strategic, and they’ve responded well by executing new logistics and supply chain tactics that rely on a mix of global resources. “There’s a much higher degree of collaboration,” she says. “Shippers are now willing to share information that they didn’t want to share before, so everyone can make better decisions.”

And these changes certainly did not come easily; so now it’s time for a little fun. It’s time to take about 30 minutes out of your day for the Fourth Annual Logistics Management Quiz.

The Quiz comprises 25 questions pulled from our January 2007 issue through our November 2007 issue. Completing the quiz will help you better understand not just how those issues and events altered the transportation and logistics market this year, but also how they will affect your business in 2008. Consider the quiz the next step down the path of enlightenment.

I’ll give you a little hint: I have taken the quiz and I can assure you that all the answers can be found by searching the right terms on logisticsmgmt.com. When you’re ready with your answers, go to logisticsmgmt.com/quiz and fill out the answer sheet. If you score 100 percent, you’ll be entered in a drawing to win an Apple iPod nano.

Good luck!

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

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