February 14, 2012
Guest Commentary: Are You Spilling Savings from Your Transportation Bucket?
By: James LeTart
We’re all familiar with the problem of silos within organizations and how unproductive they can be to the company as a whole. But have you thought about how the same thing tends to happen with your transportation operations? Can you truly claim to have "one-stop shopping" across all locations, carriers, modes, fleets and parcel? If you have separate "buckets" for any of these, you’re spilling cost savings all over the place.
While we all might agree that a “single version of the truth” is as important for transportation operations as for other parts of the business, there are two things working against this happening – history and after-thought. Historically, transportation operations grew up with the business; new locations, new product lines, new markets led to pockets of transportation popping up to serve those functions. Worse yet, back when manufacturing was king, transportation was an after-thought – just a cost you had to incur to get product to market. As a result, cherished principals of business management such as economies of scale, centralized planning, and flow optimization, and the cost savings they create, were not applied to transportation. Read more
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