Lower cost in diesel helps transportation solutions
Being a Transportation Manager sometimes calls for a stroke of luck. Just as the country is plunging into another recession and management is asking for cost concessions, the world price of diesel declines. The expression “better to be lucky than smart” comes to mind, as this stroke of luck became one of the bigger transportation solutions.
But “smart” companies are looking to make structural changes in transportation to both reduce costs and decrease their carbon footprint. Both are long lasting transportation solutions.
As long as production capacity is tight, diesel costs will continue to rise. Smart companies who have done analysis realize the only thing that will change this pattern in the future is to build new refineries or until bio-diesel becomes available. Neither is on the immediate horizon.
Tom Moore, A well-known transportation consultant for P&G and BP wrote a commentary based on the Wall Street Journal article (Wall Street Journal reports on diesel Prices) in his Blog that further discusses this issue. You can find it at www.transportationoptimization.com/twoblog.asp.
So what can be done? Again, follow the example of “smart” companies like P & G, which is using optimization technology to provide the transportation solutions to cut costs and reduce global warming. Another leading company, Kraft has replaced the system it uses to convert requirements (items that need to be shipped to its distribution centers) into truckloads.
Kraft uses a non-optimizing load builder that was replaced with AutoVLB – also known as Super Truck from Transportation l Warehouse Optimization. This enabled much bigger shipments (more product – fewer trucks) and, more importantly, guided loaders in how to construct the optimized load. Kraft’s transportation solution is saving big money together while eliminating a significant part of their carbon footprint.
Thomas Moore and his associates have worked with the best of the best. Procter & Gamble, and other top 50 Fortune 500 companies are among their client list. More importantly, P & G is a long-term client (Since 1992). They have saved them millions of dollars with warehouse and transportation consulting solutions. Taking a long-term view, they understand the industry, the market place and as good consultants do, keep the client as the top priority. Contact them at www.TransporationOptimization.com today. Also TEST YOUR SKILLS and see how well you manage your costs. Load a truck and see how efficient you are.
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