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 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".

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.

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.

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