Subscribe to our free, weekly email newsletter!


Logistics Management: Shippers will invest in “mission critical” options

With an increased number of natural disasters, both abroad and here in the U.S. in recent months, businesses need to consider developing contingency plans, noted Saia Inc.
By Patrick Burnson, Executive Editor
July 06, 2011

With an increased number of natural disasters, both abroad and here in the U.S. in recent months, businesses need to consider developing contingency plans, noted less-than-truckload (LTL) carrier Saia Inc.

As reported in LM earlier, Saia Inc. found that shippers responding to its “National Trends in Small to Medium-sized Businesses” had a variety of concerns. But chief among them is having a “Plan B.”

“Small to midsize businesses have a lot they are concerned about, most pressing is the economy,” said Saia President and CEO Rick O’Dell in an interview. “I was surprised and pleased to learn that they are increasing their supply chain spending this year.”

And a substantial part of that that will be invested in failsafe operations.

In the event of a major business interruption or emergency event, respondents said their company:

• Has alternative suppliers for key materials and parts (38 percent)
• Maintains safety stock (36 percent)
• Has a business continuity plan already in place (25 percent)
• Plans for contingent shipping arrangements (20 percent)
• Accelerates shipments as needed (21 percent)
• Carries business interruption insurance (17 percent)
• Implements a crisis communications plan with key vendors (14 percent)
• Monitors product transportation paths (13 percent)
• Taps into onsite emergency preparedness plans and onsite tools (8 percent)

“Even with the concern many executives are feeling, not all companies are cutting costs at every corner,” said O’Dell. “In fact, when it comes to their supply chain, many companies are increasing their budgets this year. Nearly half of those surveyed say they are increasing their less-than-truckload budget.”

With regard to shipping, executives say their 2011 budgets are increasing when it comes to:

• Less-than-truckload (46 percent)
• Truckload (20 percent)
• Expedited Shipping (19 percent)
• Guaranteed Shipping (18 percent)
• Distribution (15 percent)
• International (13 percent)
• 3PL (2 percent)

When it comes to carrier measurements, executives were asked which measurement they valued most. On-time delivery leads the way hands down (65 percent) followed by pick-up performance (11 percent) and claims-free service (9 percent).

Nearly half of all executives (41 percent) say they are unfamiliar with the federal government’s Comprehensive Safety Analysis (CSA) program. Of those expressing familiarity, more than half (54 percent) are concerned the program will impact their supply chain.

For related articles click here.

 

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


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

Getting items ordered online to your home on a same-day basis is as important or relevant as it needs to be, and it depends on things like the type of products being ordered and its relative urgency as well. This was put into better perspective for me during a recent conversation I had with Dr. Victor Allis, CEO of Quintiq, a supply chain vendor specializing in a single optimization and planning platform.

Diesel prices dropped for the third straight week, with the average price per gallon seeing a 2.5 percent decline to $3.869 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

Seasonally-adjusted (SA) for-hire truck tonnage in June dropped 0.8 percent on the heels of a revised 0.9 percent (from 1.0 percent) increase in May and was up 2.3 percent annually.

Even as Congress was putting the finishing touches on a 10-month short-term funding extension to the federal aid highway bill that temporarily averts a funding crisis, Transportation Secretary Anthony Foxx was ripping the measure as a short-term “gimmick” that once again fails to adequately fund U.S. infrastructure needs in the long run.

ISI is comprised of Integrated Services, ISI Logistics and ISI Logistics South and is focused on the warehousing and transportation needs of automotive shippers. RRTS said that in 2013, Integrated Services generated revenues of approximately $21 million adding that Integrated Services is expected to be accretive to Roadrunner’s earnings in 2014.

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA