MANAGING IN AN UNCERTAIN ECONOMY: BEST PRACTICE: FLEET COST MANAGEMENT
In his February post at “Managing in an Uncertain Economy,” Texas A&M’s Dr. Barry Lawrence discusses Best Practices in Fleet Cost Management. Are you using the common, good, or best practice? See how you can improve today!
Managing in an Uncertain Economy Excerpt:
Transportation is a key wholesale distribution function, in terms of cost and customer service. In some lines of trade, distributors spend more than a third of their gross margins on transportation services. Optimal transportation management is essential to maintaining profitability and gaining a competitive advantage. It carries an even greater importance when you own or lease your transportation fleet. Although private fleets are more expensive, they are sometimes necessary for providing quality customer service. The various processes in transportation management are shown in exhibit 1.
Key findings from a transportation study conducted by Texas A&M University in collaboration with FedEx for the Industrial Supply Association in 2006 (Texas A&M, FedEx, and ISA, 2006), are as follows…