Friday, December 26, 2008

Decline in diesel cost provide temporary transportation solutions

By Larry Emsweller

If you have ever heard the old saying "better to be lucky than smart", you can't help but think of the recent decline in world diesel prices and what is going on in the mind of the transportation manager. This could be a real cost saver to the industry and definite transportation solution even if it was a stroke of luck.

But "smart" companies are looking to make structural changes in transportation to both reduce costs and decrease their carbon footprint. Both are long lasting transportation solutions.

We use the expression "smart" because companies that have performed strategic analysis recognize that the price of diesel will continue to be pushed up over the foreseeable future - until the tight production capacity is alleviated with a new refinery or bio-diesel becomes viable.

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".

One approach when looking for transportation solutions is to follow the example of the big companies and see what they are doing and what kind of technology they are using. Procter & Gamble is using an optimization technology that can cut costs and reduce global warming. Kraft replaced the part of their deployment system it used to convert requirements into truckload shipments.

The technology that Kraft started using is particularly fascinating. It is AutoVLB (Automatic Vehicle Load Building) from Transportation l Warehouse Optimization in Franklin, Tennessee (just outside of Nashville). What this allowed Kraft to do was operate with much bigger load factors and even more importantly guided loaders in how to construct the optimized load. This accomplishes two things for Kraft transportation solutions: huge cost savings and real structural changes because they are reducing a large part of their carbon footprint.

Thomas Moore and his associates have worked with the best of the best. Procter & Gamble, and other top 50 Fortune 500 companies are among their client list. More importantly, P & G is a long-term client (Since 1992). They have saved them millions of dollars with warehouse and transportation consulting solutions. Taking a long-term view, they understand the industry, the market place and as good consultants do, keep the client as the top priority. Contact them at www.TransporationOptimization.com today. Also TEST YOUR SKILLS and see how well you manage your costs. Load a truck and see how efficient you are. - 16069

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