Subscribe to our free, weekly email newsletter!


Tackling transportation


May 19, 2010

Responding effectively to the challenge of perpetually pricy petrol, shippers may need to revisit and potentially revamp their transportation strategies. Virtually every aspect—from asset ownership to carrier relationships to customer service—belongs on the table, with priorities that most likely include:

Lower-cost modes: To one extent or another, shippers may need to move from fuel-intensive modes (e.g., road and air) to slower but more economical choices, such as rail and water. Better planning, timing, inter-company collaboration, and even philosophical changes may be needed to accommodate slower modes of transportation.

A tighter focus on utilization: Most companies should consider re-examining their operating models and transportation paradigms. Some may conclude that realigning customer/store-service contracts is needed—pushing, for example, for more factory-direct shipments, larger inventory minimums, or wider delivery windows that let the shipper hold freight until a truck is full. Two or more organizations might also work together to consolidate shipments to low-density areas.

Smarter ways to buy: Companies could determine that maximizing volume with one carrier is not the best policy in an era of runaway fuel prices. Instead, an entity might use an elite carrier when on-time delivery is key, and a low-cost carrier when delivery timing or accuracy are less important.

Thinking differently about transportation assets: Oil price cataclysms could make many private fleets less justifiable—replaced by commodity transportation providers or third-party logistics services providers that can

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 PMI, the ISM’s index to measure growth, fell 1.4 percent to 51.5 (a PMI of 50 or greater represents growth), declining for the fifth straight month since reaching 57.9 in October 2014. And it is 4 percent below the 12-month average of 55.5. The March PMI is at its lowest level since May 2013’s 50.1.

How the food giants integrate supply chain operations is one of the most interesting components of the recently-announced merger between H.J. Heinz Co. and The Kraft Foods Group.

The new online offering is entitled “Vessels at a Glance” and is comprised of a daily update that shows all vessels at berth and anchor within POLB, as well as the Port of Los Angeles (POLA). It also includes information relating to vessel arrival and departure dates and length of stay in Long Beach, too, along with weekly updated charts that show the number of vessels at anchor at POLB and POLA that POLB officials said illustrate trends occurring over the last six months.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in January dropped 1.2 percent to $89.3 billion.

Download our new white paper, "The ABCs of HST: Understanding the Harmonized System of Tariffs," for insights and explanations of the complex cross-border classification codes.

Article Topics

News · News and Analysis · All topics

Comments

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


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA