Tuesday, December 30, 2008

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".

So what can be done? Again, follow the example of "smart" companies like P & G, which is using optimization technology to provide the transportation solutions to cut costs and reduce global warming. Another leading company, Kraft has replaced the system it uses to convert requirements (items that need to be shipped to its distribution centers) into truckloads.

Kraft is able to not only save money but also reduce good size chunks of its carbon footprint with a new piece of technology from a company just outside of Nashville Tennessee. Transportation l Warehouse Optimization has shown Kraft how to maximize efficiencies with the AutoVLB (Automatic Vehicle Load Building). Kraft can now operate bigger loads and more importantly guide loaders in how to construct the optimized load. This serves as a huge advantage for Kraft and good structural transportation solutions.

When you consider a Transportation consultant, talk to Thomas Moore and his associates at Transportation | Warehouse Optimization who have been working with some of the top companies in America. They have a reputation for, finding practical solutions that have resulted in saving millions of dollars. In addition, Transportation | Warehouse Optimization take a long-term view, know the market place and keep the client as top priority. Contact them at www.TransportationOptimization.com for transportation cost reductions or warehouse challenges. While visiting their website, TEST YOUR SKILLS and see how well you can load a truck or manage cost savings. - 15431

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