Increasing Risks Elevating Sustainable Transportation Management
Blog by Julie Urlaub, Founder and Managing Partner at Taiga Company
Jul 8, 2011 10:20 AM ET
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.
Home to one third of the earth's trees, the Taiga is the largest land-based biosphere and encircles the globe. Its immense oxygen production literally changes the atmosphere and refreshes the planet. It is this continuous renewal that has shaped Taiga Company's vision to drive similar change in the business world. Taiga Company seeks to be the "oxygen for your business".