Shippers re-examine logistics management

June 10, 2004
Skyrocketing diesel fuel prices that continue to push trucking costs higher may convince shippers to take a fresh look at how they manage logistics.

Skyrocketing diesel fuel prices that continue to push trucking costs higher may convince shippers to take a fresh look at how they manage logistics.

“The logistics aspect of a businesses operation—whether in manufacturing, retail, etc—has become much more important because costs are rising so rapidly,” said Elijah Ray, president of the Council of Logistics Management, at the presentation of the annual State of Logistics Report at the National Press Club in Washington DC.

“Logistics is becoming much more challenging to manage today, especially in light of higher diesel fuel prices and the cost of security regulations, and how those two trends are affecting the cost of transportation services,” he said.

Ray, senior vice-president–customer solutions for Greenville SC-based Standard Corp, added that for shippers to reduce their logistics costs, they must reduce inventory carrying costs as a whole, not just the cost of transportation.

“It’s going to take a renewed focus on supply chain management, looking at the entire process end-to-end on a global basis to see where cost savings can be achieved,” he said. “We can’t focus on just reducing costs in one part of the supply chain. We have to look at the whole process and manage it better from there.”

About the Author

Sean Kilcarr | Editor in Chief

Sean previously reported and commented on trends affecting the many different strata of the trucking industry. Also be sure to visit Sean's blog Trucks at Work where he offers analysis on a variety of different topics inside the trucking industry.

Sponsored Recommendations

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...

80% Fewer Towable Accidents - 10 Key Strategies

After installing grille guards on all of their Class 8 trucks, a major Midwest fleet reported they had reduced their number of towable accidents by 80% post installation – including...

Proactive Fleet Safety: A Guide to Improved Efficiency and Profitability

Each year, carriers lose around 32.6 billion vehicle hours as a result of weather-related congestion. Discover how to shift from reactive to proactive, improve efficiency, and...

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!