The transportation and logistics industry has been among the hardest hit by recent challenges to the world economy, and the market is poised for increased complexity. Freight volumes are down while fuel costs rapidly rise. Changes in regulatory requirements and a short supply of qualified drivers have only intensified the situation.
lthough these challenges are widely recognized, customers continue to demand premium services, more options, more information; simply put, more for their money.
Transportation companies know they must respond to customer demands as well as the industry’s competitive pressures, but turning a profit is paramount, and, as any business student knows, it all comes down to increasing revenue while reducing costs.
Turning a Profit . . .and Then Some
In the transportation industry, increased revenues are earned by:
- Improving customer service
- Better managing capacity
- Identifying new revenue streams
- Providing on-time, error free, damage-free shipments
Fixed and variable costs are reduced by:
- Improving asset, resource and inventory utilization
- Meeting changing regulatory requirements
- Eliminating claims, accidents and incidents that detract from the profit line