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Volatility is the Only Constant in Transportation Cost


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The period of economic uncertainty that started last year brought an unprecedented change in the transportation rates and logistics budgeting of the manufacturing and services companies to the extent that it warranted attention of the senior leadership.

\While a decline in rates this year has brought a much needed relief to the cost pressure, this relief is just momentary. Once the economic upturn begins, the rate of change in transportation costs should revert to the significant increase seen over the last few years.

In a latest whitepaper, Michael Nayden, director, and Yanick Desmarais, manager, both with Deloitte Consulting LLP’s Manufacturing and Operations practice explore how a disciplined, structured approach to global transportation management (GTM) can provide both cost reduction and a competitive advantage.

Over the period of time, costs associated with logistics will continue to rise and demand the attention of senior executives. However, given the proper focus, logistics can be target-rich arena for optimization and near-term savings. In addition, the near-term savings can in turn self-fund a more strategic GTM vision.

The report also uncovers the findings from two case studies where GTM not only resulted in reduced cost, but also in an enhanced service performance and visibility.

Download and read the attachment to learn more.

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