Rising fuel costs are "a grim reality" for manufacturers, and anybody else trying to transport products, says John Haber, EVP of transportation consulting services for spend-management consulting firm NPI. "One question is whether companies are doing all they can do to insulate their business and their customers. In most cases, they aren't."
Haber suggests that companies can minimize transportation cost increases by following these five best practices:
- Find out if you're paying a fair price for fuel.
- Consolidate shipments and switch modes.
- Re-evaluate service selection to determine the most cost-effective method to ship your products.
- Closely watch carrier capacity and be prepared to renegotiate carrier pricing when their shipping volumes decrease.
- Offset price increases outside of transportation, particularly in such areas as telecommunications, IT and energy.
See Also:
• Shareholders Press Manufacturers to Disclose Their Sustainability Efforts
• How to Measure Your Suppliers' Sustainability Efforts
About the Author
Dave Blanchard
Senior Director of Content
Focus: Supply Chain
Call: (941) 208-4370
Follow on Twitter @SupplyChainDave
During his career Dave Blanchard has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeek, EHS Today, Material Handling & Logistics, Logistics Today, Supply Chain Technology News, and Business Finance. He also serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2010), which has been translated into several languages and is currently in its second edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.