Saturday, December 27, 2008

Decline in diesel cost provide temporary transportation solutions

By Larry Emsweller

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 structural changes are what the smart companies are looking for. They want something that is a long lasting transportation solution. They are interested in reducing both costs and decreasing their carbon foot prints.

We use the expression "smart" because companies that have performed strategic analysis recognize that the price of diesel will continue to be pushed up over the foreseeable future - until the tight production capacity is alleviated with a new refinery or bio-diesel becomes viable.

A recent article in the Wall Street Journal (Wall Street Journal Reports on Diesel Prices) dealt with the matter. You can read about it with additional commentary by Tom Moore, a highly regarded transportation consultant who works for many of the Fortune 50 companies such as Procter & Gamble and BP by going to http://www.transportationoptimization.com/twoblog.asp.

Look at what well-run logistics operations are doing. Kraft is using new technologies to convert requirements into truckload shipments. P&G uses new optimization systems that not only cut costs but also reduces global warming. These companies stay abreast of the latest technologies to maximize efficiencies to find the best transportation solutions.

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.

When you consider a Transportation consultant, talk to Thomas Moore and his associates at Transportation | Warehouse Optimization who have been working with some of the top companies in America. They have a reputation for, finding practical solutions that have resulted in saving millions of dollars. In addition, Transportation | Warehouse Optimization take a long-term view, know the market place and keep the client as top priority. Contact them at www.TransportationOptimization.com for transportation cost reductions or warehouse challenges. While visiting their website, TEST YOUR SKILLS and see how well you can load a truck or manage cost savings. - 15275

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