All Columns Entries
Wednesday, August 01, 2012
The average truck consumes roughly 11,000 gallons of diesel per year. Consequently, even minor shifts in fuel prices have a significant impact on operating costs. For instance, when applied to a fleet of 100 trucks, a price drop of 25 cents per gallon generates annual savings exceeding a quarter of a million dollars.
It dawned on me the other day that some of the practices we employ in the planning and management of our logistics operations are similar to how farmers plan and harvest crops and how baseball managers select their team and deal with the variety of performance issues and injuries throughout the long season.
Sunday, July 01, 2012
Not long ago, the price for a barrel of crude was $110, and a gallon of regular gasoline would set you back nearly $4. While consumers wished for relief, politicians hunted scapegoats on Wall Street.
If you’ve been keeping one eye on ocean fuel (“bunkers”) pricing as I have, you know that the slowdown in the economy has had a pleasing effect on fuel prices.
“Mom, can you change the time on my watch?” “Sure…bring it over, it should only take a few seconds.”
Friday, June 01, 2012
In every issue of Logistics Management
) we devote an article to the growing importance that warehouse and distribution center (DC) operations are playing in transportation and overall logistics management.
Brian pierce, chief economist at the International Air Transport Association (IATA), recently reported that there are mixed signals for air cargo shippers during this year and heading into next. Air cargo shippers need to be aware of the current and future challenges that are facing air carriers in order to better position themselves for the service levels and capacity they’ll need if their companies are going to compete on a global level.
As a logistics manager, understanding that oil and fuel prices are a function of supply and demand rather than the rogue actions of “evil speculators” is important.
Tuesday, May 01, 2012
New and innovative technology-driven concepts are brought to my attention on nearly a daily basis. When something really lands with us for the first time, that concept is simply comprised of words on a page or vibrations hanging in the air. We nod, say that sounds interesting, and then quickly dive back into our day-to-day grind to practice “business as usual.”