Supply Chain Optimization

Give Up On Relationships

by Tom Moore on Oct 9, 2018 8:00:00 PM

 
At the CSCMP conference, I heard a lot about the need for good relationships with carriers.  Given that more than 50% of the for-hire trucks are in fleets of less than 20 trucks, having a relationship is impractical. (It is like one girl wanting to date everybody in the Marine Corps).  My thesis is that:
  • Most transportation contracts are too vague to be the foundation of a relationship
  • Carriers have a responsibility to their employees and shareholders to maximize profit and thus should not run at below-market pricing without long-term guarantees
  • Shippers have a responsibility to their shareholders  to pay the least possible rate to provide the level of service needed
  • All this creates conflict 
  • We will be better served to treat transportation as a commodity
 
Oil is hovering around $75…oil at $100?  Lots of traders are betting on this.  Hang on for the ride!
 
 
Topics:

Our founding team of supply chain veterans and ML experts has created one of the most sophisticated suites of optimization tools in the supply chain world. Let us show you.

Solutions
Resources
Newsletter Sign Up

4650 Everal Lane
Franklin, TN 37064

solutions@provisionai.com
615-791-0865

© ProvisionAi All rights reserved. 2024