Subscribe to our free, weekly email newsletter!



A CFO Primer on Transportation’s Impact on Financial Performance

image

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!

Recent Entries

The questions for the most recent Semiannual Economic Forecast, which was released last week, included: 1-has the strength of the U.S. dollar had a negative, negligible or positive impact on their organization’s profits?; 2-has the net impact of the depressed prices of oil and related commodities been negative, negligible, or positive for their organization’s profits; and 3-how would they characterize the combined impact of their organization’s profits on the strength of the U.S. dollar and the depressed prices of oil and related commodities.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico dropped 5.8 percent on an annual basis in March to $90.5 billion.

Shippers sourcing their goods out the Port of Oakland’s largest marine terminal will soon need to make an appointment drayage providers before their cargo is released.

U.S. Carloads fell 10.6 percent at 244,290, and intermodal containers and trailers were off 6.5 percent at 262,693.

Now that the deal, which had to clear several regulatory hurdles in multiple countries, is official, FedEx executives were able to speak a little bit more freely, albeit being somewhat guarded in regards to certain integration specifics at the same time.

Article Topics

White Papers · All topics

Comments

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


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA