Decline in diesel cost provide temporary transportation solutions

By Larry Emsweller

A little luck is always welcome by the transportation manager. Diesel costs on the world market just declined and that is a Godsend for the transportation industry. This was a lucky transportation solution.

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.

It is well known by experts that diesel costs will continue to fluctuate and continue to rise in the future. New refineries or bio-diesel are the only things that can alleviate tight production capacity.

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.

The technology that Kraft started using is particularly fascinating. It is AutoVLB (Automatic Vehicle Load Building) from Transportation l Warehouse Optimization in Franklin, Tennessee (just outside of Nashville). What this allowed Kraft to do was operate with much bigger load factors and even more importantly guided loaders in how to construct the optimized load. This accomplishes two things for Kraft transportation solutions: huge cost savings and real structural changes because they are reducing a large part of their carbon footprint.

When you consider a Transportation consultant, talk to Thomas Moore and his associates at Transportation | Warehouse Optimization who have been working with some of the top companies in America. They have a reputation for, finding practical solutions that have resulted in saving millions of dollars. In addition, Transportation | Warehouse Optimization take a long-term view, know the market place and keep the client as top priority. Contact them at www.TransportationOptimization.com for transportation cost reductions or warehouse challenges. While visiting their website, TEST YOUR SKILLS and see how well you can load a truck or manage cost savings.

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