Soliciting, analyzing and awarding transportation contracts through a bid process is a complex process. To get the best outcome, transportation buyers need to conduct a thorough opportunity assessment and make sure they have the infrastructure and framework in place to effectively manage the bidding process, says Art Nourot, senior director of carrier procurement at Unyson Logistics.
Mileage-based rates within the trucking industry typically are not calculated using actual miles driven. Instead, they generally are based on historical zone-to-zone mileage or on the standard shortest possible route between two points. That's known as "practical routing," explains Craig Fiander, vice president of marketing at ALK Technologies, which provides mileage mapping software.
A networked transportation management service, in which key supply chain participants share information and visibility through a central hub, is more cost efficient and more effective than traditional transportation management applications, says Alan Dunkerley, vice president of product management at Descartes Systems Group.
There are quite a number of developments and new entrants in the marketplace for voice applications, says Rich Hayden, director of business development at Voxware. He details how that's good and bad for customers, and says a "configurable software product" may be of use to you.
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.
The clean air standards for heavy truck engines that went into effect Jan. 1 of this year culminate a three-tier process that began with legislation passed in 2001. Don Kilfin, a fleet sales manager for Nalley Motor Trucks and retired Detroit Diesel executive, says the challenges for engine manufacturers in meeting these standards have been substantial and have come with a price.
Rob Lewin, director of global logistics at Flowserve Worldwide, discusses capacity issues in an evolving carrier landscape, leveraging spend with rate and non-rate negotiations, knowing which providers to keep, and what collaboration really means to a company.
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.