A CFO Primer on Transportation’s Impact on Financial Performance

Transportation costs unquestionably impact a company’s financial performance. And yet, for most CFOs, controlling these costs sits far down on the priority list

By · June 25, 2012

Transportation costs unquestionably impact a company’s financial performance. And yet, for most CFOs, controlling these costs sits far down on the priority list.

Despite strong evidence that better collaboration between Transportation and Finance leads to more informed and smarter decisions, active collaboration is rare. Why? Because CFOs and logistics managers view transportation through a very different set of lenses.

While CFOs evaluate strategies based on the impact on profitability, asset utilization, and other company-wide metrics, logistics managers focus more on their own departmental budgets and metrics and don’t always communicate the broad consequences of transportation decisions up and down the line. As a result, CFOs can get a false read on the financial impact of transportation and logistics decisions.

image

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!

Article Topics

All Topics
Latest Whitepaper
Unlock the Value of Your Supply Chain Through Embedded Analytics
Learn how embedded analytics can provide deeper supply chain intelligence and help you extract maximum value from data for your supply chain operations
Download Today!
From the May 2017 Issue
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management, but what sort of technologies fall under these broad terms, and how will they change the management capabilities at our disposal? To find out, we talked to some noted supply chain analysts, consultants and technology executives and gathered six digital trends to watch.
Transportation Trends and Best Practices: The Battle for the Last Mile
2017 Technology Roundtable: Are we closer to “Intelligent” Logistics?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Going Beyond Rate Negotiations for Logistics Cost Savings
The pressure to reduce cost is a fundamental part of every organization today leaving many supply chain professionals constantly renegotiating rates. This webcast examines four areas that may hold untapped savings potentials and even help organizations negotiate better rates.
Register Today!
EDITORS' PICKS
The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...

LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...