Follow us on Twitter!
Blog Header Logo
DG&A's Transportation Consulting Blog
Subscribe to this list via RSS Blog posts tagged in University of Tennessee

For over two decades the University of Tennessee has been conducting its Masters in Logistics research study.  This year the study was undertaken in partnership with Con-way Inc., Ernst & Young, and Logistics Management.  The U.S. based participants accounted for an estimated $30.1 billion in domestic transportation expenditures and over $20.5 billion in international transportation.  Some 1,370 domestic and global logistics, transportation, and supply chain management professionals participated in the study.  A summary of the report appears in the current issue of Logistics Management and is the basis of this blog.

The Masters of Logistics, those companies with annual freight spend in excess of $3 billion, represented 27.8 percent of the study participants. Medium-sized firms, with between $500 million and $3 billion in annual revenue, were 20.6 percent of respondents. The majority of respondents (51.6 percent) were smaller firms with reported annual revenue less than $500 million.  The study participants came from a broad array of industries.

 The results identify the emergence of an idea advocated for over a decade, and one which is being put into place by the Masters of Logistics: Use logistics and transportation services to differentiate yourself in the marketplace. As the study suggests, being able to deliver differentiated service is not possible without a value-creating partnership between the shipper and its strategic carriers; in turn, this has created a unique balance of power between the two parties.

Overall transportation spending as a percent of sales increased from 2011 to 2012. The data showed that companies that spent more than 5 percent of sales on domestic transportation increased year-over-year, rising from 21.2 percent to 26.7 percent in 2012.  The key reason is the change in strategic direction for many companies. Following several years of intense cost cutting, particularly in transportation spending, the 2012 study results point towards companies shifting some of their focus to maximizing profitability and asset utilization. In the meantime, the percentage of respondents who reported that their primary objective is reducing costs has shrunk each of the past three years—findings that reveal that shippers again believe that you have to “spend money to make money”.

Being able to rapidly respond to changing customer requirements is becoming increasingly critical for both shippers and carriers. Today, more than ever, transportation plays a key role in helping companies attain that necessary level of responsiveness. The study indicates that some 71.6 percent of respondents are either capable or highly capable of adjusting transportation operations in response to changing conditions—and this ability to alter and adapt is greater for transportation than for logistics operations.  ‘Total Delivered Cost” is becoming the value creation metric and competitive differentiator among carriers.

Hits: 25789
Continue reading 1 Comment

Most Recent Posts


Tag Cloud

Hudsons Bay Company Transloading Transport Capital Partners (TCP) selling trucking companies tanker cars transportation newspaper TMP Worldwide Packaging FCA 2014 freight forecast Success failure entrepreneur Amazon automation FuelQuest UP Leadership dimensional pricing Rotman School of Business FMCSA USA Truck truck drivers TMS Canada U.S. trade Canadian economy Social Media Freight contracts Trucking Toronto peak season driver shortages Education driverless Software Advice small business freight transportation Freight Shuttle System CSX Load broker Crude Oil by Rail truck driver routing guide Entrepreneur Regina Doug Davis Canadian truckers robotics NAFTA Werner Freight Transportation service Celadon APL RFP Shipper natural disasters Accessorial Charges carrier conference capacity shortages Colilers International JB Hunt mentoring Rate per Mile cheap oil freight forwarders freight RFP intermodal Tracy Matura FMS Sales Management business start-up Truckload FCPC Surety bond Rail Climate Change Swift last mile delivery economic forecasts for 2012 Trump Success Blogging Twitter Canadian Transportation & Logistics Emergent Strategy Driving for Profit driver supply chain management Stephen Harper Trade Vision dynamic pricing Infrastructure CITA Shipper Pulse Survey Transportation freight costs pipelines risk management Dedicated Trucking Retail transportation drones Dan Goodwill the future of transportation Carriers trucking company acquisitions freight transportation in 2011 Conway LTL Doug Nix $75000 bond President Obama freight payment freight audit Schneider Logistics shipper-carrier collaboration rail safety Right Shoring BlueGrace Logistics e-commerce Railway Association of Canada Crisis management Wal-Mart CP Rail Sales Training solutions provider Failure 360ideaspace University of Tennessee home delibery home delivery online shopping Freight Management customer engagement freight rate increases Deferred Packaging Inbound Transportation freight broker Omni Channel Scott Monty Muhammad Ali Transcom Fleet Leasing Outsourcing Sales freight audit Masters in Logistics US Election Business skills Search engine optimization US Auto Sales buying trucking companies ProMiles 2015 Economic Forecast TransForce 2013 Economic Forecast Spanx Ferromex MBA Reshoring shipping Training New Hires Horizontal Supply Chain Collaboration Politics capacity shortage US Manufacturing Transplace US Housing Market hiring process freight payment 2014 freight volumes Transportation Buying Trends Survey Facebook Grocery Map-21 financial management Freight Recession Warehousing Management Derek Singleton NCC Life Lessons Freight Matching Harper Davos speech Freight Capacity NMFC KCS Retail Distribution Cleveland Cavaliers Microsoft consumer centric MPG 2014 economic forecast NS Comey transportation news marketing Business Transformation Strategy shipper-carrier roundtable Career Advice Finance and Transportation freight cost savings broker bonds autonomous vehicles ShipMax Associates Otto freight bid Training Load Boards Driver Shortage BNSF Global Transportation Hub derailments Job satisfaction employee termination EBOR David Tuttle CSA network optimization fuel surcharge Consulting Canada Keystone Pipeline Canadian freight market Freight Carriers Association of Canada coaching CSA scores freight agreements energy efficiency CRM New York Times Social Media in Transportation Canada-U.S. trade agreement YRC Loblaw Yield Improvement freight transportation conference Business Strategy Fire Phone Freight Rates CN Rail CN LCV's Dedicated Contract Carriage Canada's global strategy future of freight industry 3PL professional drivers transportation audit LinkedIn 2012 Transportation Business Strategies. Jugaad Global experience US Economy Bobby Harris economy 3PLTL Sales Donald Trump Adrian Gonzalez shipper-carrier contracts IANA trade broker security shipping wine bulk shipping Whole Foods ELD Broker

Blog Archives