Five Transportation Trends
I’ve recently spoken at and participated in a few transportation industry events, and was reminded of the importance of transportation trends to the supply chain, so I thought a recap of trends was in order:
- The importance of systems: As supply chains become more complex, leveraging systems becomes more important to optimizing supply chain networks and minimizing transportation costs.
- Consider supply chain disruptions: As supply chain disruptions become commonplace – natural disasters, weather, strikes, etc. – it has become essential to build flexibility and agility into supply chains.
- Alternative fuels: Certainly fuel cost is significant in transportation; thus, selecting the optimal technology is key to success. UPS is expanding its liquefied natural gas vehicle strategy.
- Logistics trending UP: The US Logistics market grew 6% in 2012, led by growth in domestic transportation management, according to a study by Armstrong & Associates Inc.
- Panama Canal questions: The Panama Canal expansion (adding a 3rd lane) is scheduled to be completed in 2015 – will it affect the amount of freight going directly to the East Coast? There is much disagreement on this topic.