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A CFO Primer on Transportation’s Impact on Financial Performance

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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.

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