Results from our annual survey suggest that carriers, driven by a need to maximize profitability, are at a polar opposite with shippers who are focused on reducing costs. This lack of alignment has created a struggle that has resulted in a loss of focus on the bigger prize—being able to compete supply chain to supply chain.
Factors such as rising freight rates, shrinking capacity, an increased desire for global supply chain visibility, have all worked together to drive the need for instituting a culture of continuous improvement in logistics operations and transportation management systems (TMS). To meet today's complex logistics challenges, managers are stepping into a more streamlined, automated approach to transportation management in order to function at optimal levels both domestically and internationally. Read the latest special report.
Faced with a tight domestic transport market that includes labor and fuel pressure on carriers, shippers are inclined to leverage volume and go for extensions of past rate agreements. I would like to encourage shippers to start thinking outside the box.