The operations of less-than-truckload carries have changed so dramatically in the last two decades that they bear little resemblance to the traditional LTL model that was prevalent for decades, says Brad Morris, vice president of marketing at AAA Cooper, a regional LTL carrier operating in the Southeast.
The economic crisis has provided shippers a great opportunity to step back and rethink their logistics and supply chain operations to see where they can pull costs out of the system and become more efficient, says consultant Dan Goodwill. "Everyone knows that beating up on carriers to bring costs down can't go on forever."
Motor carriers increasingly have turned to costing systems to help navigate the difficult pricing environment brought on by the recession, says Bill McGinley, vice president of pricing and revenue management at Wilson Trucking Co.
When Intel realized it lagged behind competitors in meeting same-day delivery of its chips, it knew a drastic makeover of its supply chain was necessary, says Viju Menon, director of worldwide supply planning operations at the company. He discusses how the paradigm shift has improved customer responsiveness and inventory optimization.
Sales and operations planning is growing in importance to manufacturers and so is the necessity to manage risk, says Simon Ellis, practice director, supply chain strategies, at IDC Manufacturing Insights. In his analysis, Ellis assesses the future of outsourcing and the health of the supply chain.
Managing costs and taking advantage of low freight rates, to be sure - but their real concern is maintaining a high level of customer service in a time of reduced demand.