Thursday, January 1, 2009

Declining diesel cost possible trend in 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 well-known transportation consultant for P&G and BP wrote a commentary based on the Wall Street Journal article (Wall Street Journal reports on diesel Prices) in his Blog that further discusses this issue. You can find it at www.transportationoptimization.com/twoblog.asp.

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.

Test your skills and see how efficient you are at managing costs by loading a truck or a warehouse. Visit www.TransportationOptimization.com. While there, request to be contacted by one of the associates at Transportation | Warehouse Optimization. Working for many companies in the top 50 Fortune 500 like Procter & Gamble and BP they understand your unique problems and know how to solve them. - 15246

About the Author: