Tuesday, December 30, 2008

Decline in diesel cost provide temporary 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 structural changes are what the smart companies are looking for. They want something that is a long lasting transportation solution. They are interested in reducing both costs and decreasing their carbon foot prints.

As long as production capacity is tight, diesel costs will continue to rise. Smart companies who have done analysis realize the only thing that will change this pattern in the future is to build new refineries or until bio-diesel becomes available. Neither is on the immediate horizon.

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".

One approach when looking for transportation solutions is to follow the example of the big companies and see what they are doing and what kind of technology they are using. Procter & Gamble is using an optimization technology that can cut costs and reduce global warming. Kraft replaced the part of their deployment system it used to convert requirements into truckload shipments.

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. - 15432

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