New research report by Prologis on freight transportation strategies

Filed in archive Research on August 20, 2006

ProLogis, global provider of distribution facilities and services, released the latest edition of the ProLogis Supply Chain Review dubbed Moving Freight Today-How Shippers are Creating Greater Capacity, Reliability, and Rate Stability.

According to Logistics Management, the report is authored by University of Denver logistics expert Paul Nuzum and looks at strategies that shippers are using to enhance supply chain network efficiencies while dealing with high transportation costs; port, rail, and highway congestion; labor shortages; and more complicated security regulations.

The report is based on interviews with supply chain executives at more than 30 companies from various industries.

Among the report's findings are the following:

- Many companies are adding consolidating and deconsolidation centers to their supply chain networks to ensure that freight gets moved in full container loads and truckloads. The centers serve as "freight pooling hubs" and can work to increase the efficiency of a company's logistics operations.

- Companies are "de-coupling" freight costs from product costs. Companies are adopting practices to ensure that they receive the best shipping rates available on a consistent basis, through centralized command and control of freight movement.

- Shippers are working to improve collaboration with carriers and other transportation providers, through better forecasting, shorter payment cycles and implementation of two-way operational scorecards.

- Logistics managers are creating new capacity in their networks by eliminating waste and inefficiency. Techniques include collaboration with other companies to reduce the number of empty trucks on the road and establishing 24/7 work schedules at distribution centers.