Increasing Risks Elevating Sustainable Transportation Management

With much of the recent business sustainability discussion around product and supply distribution focused on emissions, many companies may have overlooked the cost sensitivities of increasing fuel prices.  Based on the latest trends, fuel now represents as much as 30% of today’s transportation costs.  Companies heavily dependent on these traditional channels may face a growing business sustainability challenge.   Described in the Industry Week article, It's Time to Shift from Reacting to Planning, reliable transportation is critical to optimal customer service yet can be a significant investment for manufacturers. Traditional transportation management systems (TMS) were developed at a time when trucks were easy to secure and inexpensive to use.  Today these variables have changed.   According to the CSCMP's 2010 Annual Report on Logistics, transportation costs were up 8% to 10% from the previous year.  Couple this with the increasing volatility on demand fluctuations, and the need for sustainable transportation planning has become increasingly more important.   Driven by a wide variety of business sustainability goals and objectives, leading companies have refocused attentions on the supply chain.  Primarily addressing upstream opportunities, the expanded sustainable supply chain management conversation now includes sustainable improvement in both inbound and outbound transportation.  In fact, our professional consulting practice finds many companies exploring non-traditional options to address costs, emissions and other business sustainability risks.  Click here to continue reading about sustainable transportation management.     

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