US diesel prices fell below $4 per gallon during the week of April 1, according to the US Energy Information Administration. Diesel prices have dropped 4% or 17 cents over the past five weeks.
Tag Archives: transportation
47,000 Owe Jobs to TDL (Transportation, Distribution, and Logistics) Industry in South Carolina
Source: Columbia Regional Business Report
According to statistics compiled and released by the state Department of Commerce, the transportation, distribution, and logistics industry directly contributes to 47,000 direct jobs in South Carolina (representing $1.6 billion a year in wages).
Some key takeaways from the 3rd Annual TDL Summit:
- In 2012, 15 projects were announced involving TDL companies, representing 2,200 jobs and a $370 million investment
- $3.5 billion in total sales generated by TDL’s 2,600 firms
- South Carolina is slated to be the nation’s #1 tire producer in 2015 with the construction of Continental’s new tire plant in Sumter and the expansion of Bridgestone and Michelin’s operations
Four Major Trends in Transportation Management to Keep Close Tabs On
Here at Trendset, we are always on the lookout for information that could be helpful in keeping our clients and readers up to date on trends in the industry. While reading through the news this morning, we cam across an article on supplychainbrain.com. “Four Major Trends in Transportation Management to Keep Close Tabs On.”
CONTINUITY PLANNING
It’s imperative today that shippers be flexible in their transportation continuity planning. Storms such as Sandy are not only tragic, but disruptive. In the case of a situation like Sandy, companies often find themselves relying on talented people to help out and wishing they had a formalized continuity plan. Mario Hegewald and Jim Osborne (Senior Managers in Ernst & Young LLP’s Supply Chain Advisory Practice) share their thoughts on some steps to take to achieve good continuity planning.
1. Develop a well-articulated, realistic plan with your carriers.
2. Be proactive, move stock inland or increase safety stock ahead of time.
3. Understand your organization’s private fleet capacity and ability to redeploy in most vital lanes.
FUEL EFFICIENCY
How does your company handle rising fuel costs?
1. Look into alternate fuel programs and join the EPA’s SmarWay program
2. Measure the total cost of ownership of alternate fuel vehicles
3. Keep an eye on diesel prices, you might be able to hedge off some spikes through trend analysis
4. Take advantage of multiple route optimization tools available on the market today
DRIVER SHORTAGES
The trucking industry is projecting a shortage of nearly 40,000 drivers to meet demand. Shippers need to be aware that a lake of drivers means they will have to be efficient in their movements. Carrier/shipper collaboration will become a big necessity.
TRANSPORTATION CATEGORY MANAGEMENT
Did you know that more than 75% of companies still procure their services through a spot market. Thus leading to increased costs and decreased service quality. The ability to collaborate with carriers and form strategic partnerships will help your company save money.
The Trend Report
A discussion about hot topics in the transportation and logistics industries.
UPS drops bid for TNT (Europe)
(Reuters) UPS is dropping its $7 billion bid for Dutch delivery firm TNT Express after European anti-trust regulators said they would veto it, leaving TNT’s future in doubt and almost halving the value of its shares.
UPS wanted to buy the smaller firm it’s European network and assets in fast-growing Asia and Latin America. While the collapse of negotiations is a blow to UPS, the impact is far greater for TNT who is struggling to regain market share eroded during the talks.
Top 100 Truckers 2012
Did your carriers make the list?
Inbound Logistics has released their Top 100 Truckers List of 2012
Click here to see if your carriers made the cut.
What’s Next for Transportation Management Systems (TMS)
Information from Logistics Viewpoints blog post by Adrian Gonzalez
“Managed transportation services couples a software-as-a-service (SaaS) TMS with a team of transportation experts who manage daily planning and execution activities on behalf of a shipper.”
Now that TMS and transportation services are more broadly adopted, the question being asked is: What’s next in TMS?
Adrian Gonzalez from Logistics Viewpoints has put some of thoughts and predictions together in his latest blog post:
- TMS will continue to expand beyond trucking and domestic transportation.
- TMS goes global. As TMS solutions expand outside of North America and Western Europe, software vendors will have to configure their solutions to meet the local requirements of different countries.
- TMS-as-a-(self)-Service. Imagine the ideas behind a successful TMS available to transportation managers through an app.
- TMS add social media capabilities. The opportunity exists to increase communication between carriers, shippers, 3PL’s, and other parties by adding capabilities of Facebook and Google+ to the TMS.
- Siri for TMS. Considering that voice recognition is already in use in the warehouse, why not in transportation management? Some example questions Adrian used were “Show me all uncovered loads” and “How am I doing on my carrier commitments this week”?
Adrian makes some excellent points when discussing predictions for the future of TMS, what changes do you foresee happening in the TMS market?
