During the past 25+ years of working with corporate clients in a variety of industries, I’ve noticed that one of the most significant factors influencing freight costs is the existence or lack of a clear transport strategy. Developing a clear strategy can result in significant savings, often in the millions of dollars each year – and it is possible to achieve without sacrificing on service.
Executives have long known that profitable growth is influenced by the size, function, and location of their manufacturing and distribution facilities. Even the technology for designing supply chain networks has been around since the early 1980s, when such tools were basically spreadsheets linked to inputs on a map. But today’s business world is altogether different than it was two decades ago.
We all like to claim how successful our supply chain performance is, but how much of your confidence is backed by stats and data? Every couple of years over the last decade, respected industry commentator Dan Gilmore, Editor in Chief of US magazine Supply Chain Digest magazine, has written a series of articles on what he refers to as ‘The 50% Problem.’