Transportation / Distribution Services
The Transportation industry can be broken down into three major sectors: shipping, passenger transport, and equipment manufacturing, with the third being that of the production of railcars, aircraft, trucks, ships, containers, etc. Within the context of this overview, Transportation refers to the means and process of shipping supplies, products, and consumer goods – or Logistics and Supply Chain Management. Nearly every business, government, and consumer across the world is, to some degree, dependent upon this industry.
Because each of these sectors operates on a global basis, Transportation is essential to the domestic US and international economies. For certain industries, it forms a major part of the value / supply chain process and is absolutely a key enabler to running an effective and efficient business. Businesses are increasingly looking to logistics operations as a controllable cost, and they know that closer management can yield significant cost and operational benefits. However, reducing the cost of Transportation by “any means necessary” can be a double-edged sword and can negatively impact the entire SCM process if not done strategically.
The reliance placed on the Transportation and Logistics industry is considerable, irrespective of whether this service is operated internally or is outsourced. This sector has struggled in recent years as its activity has followed that of the global economic downturn. Businesses are trying to determine what makes the best sense for them, both from a financial and strategic vantage when it comes to Transportation issues tied to SCM, or for use in general. Being able to optimize Transportation use is geared toward reducing expense, guiding realignments in the context of increasingly complex and multi-tiered global networks, and improving overall operational performance.
With respect to the United States, Transportation is big business, and recent spending in this area has averaged 8 to 9% of the annual GDP. An integrated supply chain network links producers and consumers through multiple transportation modes that include air and express delivery, freight rail, truck transport, and maritime transit. To better serve customers, domestic and international businesses attempt to provide specific solutions that ensure coordinated product shipping from origin to destination through each of the network supply lanes. Aside from mergers & acquisitions of different companies and carriers to gain economies, new technologies are being utilized to maintain and grow business, using: just-in-time scheduling software, radio frequency ID (RFID) and satellite tracking, new routing systems, and automation in combining different transport modes.
Synergetics has amassed considerable industry knowledge working with both internal logistics operations and specialist 3rd party service providers. Through our guidance and implementation practices, these management principles have increased overall efficiency, redressed service level issues, reduced lead times and yielded material cost savings. While at face value just looking at individual factors affecting Transportation may seem simple, having to address collectively can be daunting. Considering the size of the sourcing and procurement network using multiple lanes of Transportation, assessing the service levels and capacities of each type of carrier, and aligning various stakeholder needs are just a few areas in how Synergetics may help your business.
Related Case Studies
Restaurant Technologies Inc. (Featured Study)