Sunday, July 12, 2015

A More Thoughtful Article on Capacity

This, from BCG, is a much more thoughtful article on the true capacity issues in transportation.  The issue is NOT trucking capacity as that can easily be solved with private fleets, some technology, moving DCs to more efficient locations etc.

The real issue is around port capacity, rail capacity, infrastructure and consumer demands.  These cannot be moved around.  And this is what companies have to be thinking about now assuming they want to stay around.

What the trucking companies ignore is the demands being put on transportation are due to rising consumer demands - the demands are not just created by the shipper for the heck of it.  My advice is shippers really need to think more about private fleets.  You can be very competitive, get higher loyalty from the employees and be far more nimble.

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