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Materials and Services - Indirect

Transportation and Logistics

Courier Providers Target Low-cost Service Levels

Issue 7 - November 2012

During the recession, many shippers opted to absorb a few additional days into their supply chain to save on lower cost express services. Unfortunately, the cheaper, slower service levels are the least profitable for carriers, and they now look to cover those losses. With potential savings from demand management now tempered, direct negotiations will become even more critical, notes Accenture.

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Benchmark Rates to Insure Competitiveness as Peak Season Arrives

Issue 6 - June 2012

Despite entering the peak shipping season, we are encouraging buyers to benchmark freight rates and actively look for cost improvements due to the faltering global economic recovery. Added capacity, declining fuel prices, and regulatory changes are causing procurement professionals to question previously scheduled rate hikes.

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Competitive courier services

Issue 5 - April 2012

Globally, courier services remains a competitive industry, but growth rates are picking up steam.The US saw an uptick in domestic shipments recently, and Europe is also showing signs of improvement. Suppliers are growing more optimistic; with DHL boosting their capacity and UPS registering record fourth quarter results. Effective sourcing and negotiation including a solid understanding of shipment patterns will be the key to remaining competitive as a buyer in this market.

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Air freight braced for a difficult 2012

Issue 4 - January 2012

While the air freight industry braces itself for a difficult 2012, having reported that declining business confidence has forced shippers to reduce air shipments, the ocean freight industry is showing mixed results. Analysts expect that ocean carriers will be dealing with overcapacity and lower activity, leaving them in a weakened bargaining position in terms of rates.

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Collaboration – The right thing to say or do?

Issue 3 - September 2011

Collaboration within logistics has been on the agenda for several years, and for good reasons, delivering a range of benefits, including reduced carbon emissions, transport costs and congestion. But are companies managing to realize their benefits on the bottom line, or is it just on the agenda to recognize an industry trend?

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Making rail transportation a more compelling proposition

Issue 2- June 2011

With rail having lower emissions than air, road, and ocean, its environmental benefits remains a strong point, helping supply chains to reduce their carbon footprint targets. Yet there is a perception of rail having inflexibility compared to road and ocean alternatives. Pressure is on rail freight carriers to dispel this perception and to make rail a cost-effective alternative.

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The changing face of transportation

Issue 1 - March 2011

The ever increasing cost of fuel and diesel, the changing face of truckload and freight logistics as well as new Carrier Safety Administration Program in the US, will certainly impact on the way suppliers and shippers consider the mechanisms they need to put in place to deal with maximizing their distribution and operating efficiencies in order to capitalize on potential savings.

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