Subscribe to our free, weekly email newsletter!


Six years after financial crises, transport analysts advise “caution”

By Staff
May 15, 2014

In today’s business environment, companies remain “cautiously optimistic,” observes Ted Fernandez, Chairman & Chief Executive Officer, The Hackett Group

“Most companies in the S&P 500 beat their guidance for Q1,” he says. “But mixed guidance has been the issue as companies continue to struggle to meet growth objectives. Many have been quick to turn to productivity initiatives to hit earnings targets. This should improve as the U.S. economy continues to show better signals, but for now there remains cautious optimism across the globe.”

According to Fernandez,  “finding sustainable demand continues to be more challenging than expected as we now approach the 6th anniversary of the financial crisis.  

“Volatility in demand has become the norm, and companies understand they need the ability to quickly recalibrate. Recalibration has meant less total cost reduction and more cost stabilization allowing most of you with the ability to reallocate resources to higher opportunity areas. But that is no longer adequate,” declares Fernandez.

The Hackett Group – a global strategic business advisory and operations improvement consulting firm – maintains that companies must leverage innovation in their respective business areas to help accelerate growth. 

“We continue to see World Class companies aggressively leverage innovation to breakthrough traditional business models and strategies to exploit the true total leverage of an enterprise,” says Fernandez.

His remarks were shared at The Hackett Group’s 2014 North American Best Practices Conference, “Accelerating Growth Through Innovation” in Chicago last month.

The Hackett Group also offered an update and live demonstration of Group’s “Performance Exchange,” a new automated measurement dashboard designed to extract data from ERP systems and benchmark results.

“This year, business strategies are focused on improving innovative capacity to accelerate revenue growth and improve profitability,” adds Fernandez.

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

Jacksonville, Fla.-based Florida East Coast Railway (FECR), a 351-mile freight rail system on the state’s east coast, recently made two separate announcements. One had to do with an expansion of intermodal services between Charlotte, N.C. and various locations in South Florida and another was related to the company boosting its intermodal capacity through the addition of new equipment.

The International Air Transport Association (IATA) announced August 2014 data for global air freight markets showing continued “robust”growth in air cargo volumes.

Even though some of its key metrics dropped sequentially from August to September, the outlook for manufacturing over all remains strong, according to the most recent edition of the Manufacturing Report on Business issued today by the Institute for Supply Management (ISM).

Company officials said that these planned changes, which will take effect on January 4, 2015, will provide for increases in current pay rates and reduce the time it takes for its nearly 15,000 drivers to reach top pay scale.

While the economy has seen more than its fair share of ups and downs in recent years, 2014 is different in that it could be the best year from an economic output perspective in the last several years. That outlook was offered up by Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics Report at last week’s CSCMP Annual Conference in San Antonio.

Article Topics

News · Global · Economy · Logistics Management · All topics

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