Competitive transportation rates during most of the 1990s and the early years of the 21st century, coupled with excess capacity particularly in the motor carrier sector of the industry, allowed many companies and other organizations to develop demand-driven or demand-pull supply chains.
The low transport rates extended to global water carriers which, when coupled with low labor rates in some foreign countries, led to increased outsourcing of manufacturing and other related activities.
Transportation both global and domestic, played a key role in the global supply chains that developed with the increased outsourcing, but transportation was not always fully appreciated.
Times have changed, however, with consequent implications for supply chains and especially transportation service providers.
Fuel prices have escalated; transport capacity is tighter; labor costs have increased for many global locations; there is more concern about the environment and sustainability; and there are growing infrastructure problems with ports, highways, bridges, terminals, rail right-of-ways, rivers, and canals.
The net impact is that transportation can no longer be taken for granted and its importance to efficient and effective supply chains is significant and increasing
Enroll the program to know more about this important topic