Friday, January 2, 2009

Lower cost in diesel helps 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.

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 respected transportation consultant discusses these points as he responds to an article in the Wall Street Journal reporting on Diesel prices. You can find that article at http://www.transportatioinoptimization.com/twoblog.asp and click on the article "Wall Street Journal reports on diesel prices".

One approach when looking for transportation solutions is to follow the example of the big companies and see what they are doing and what kind of technology they are using. Procter & Gamble is using an optimization technology that can cut costs and reduce global warming. Kraft replaced the part of their deployment system it used to convert requirements into truckload shipments.

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.

Test your skills and see how efficient you are at managing costs by loading a truck or a warehouse. Visit www.TransportationOptimization.com. While there, request to be contacted by one of the associates at Transportation | Warehouse Optimization. Working for many companies in the top 50 Fortune 500 like Procter & Gamble and BP they understand your unique problems and know how to solve them. - 16036

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