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While fuel will never be a fixed operating expense for carriers, and
Re. Good Question: What’s the difference between traceability and transparency in the supply chain? bit.ly/Feb22_GoodQuestion Both deal with information flow throughout a supply chain; the difference is the relationship and trust formed between two supply chain partners. Anything can be tracked and traced, but transparency involves a level of trust and honesty between two partners. Think of it in terms of dating. At first, two people are sharing only minimal information with each other (traceability). As the relationship progresses and a partnership is formed, more honest communication and information flow between the two parties (transparency). –Casey Jenkins
shippers will always be exposed to moving fuel surcharge schedules, shippers can be cognizant and critical of increasing linehaul rates given the many other factors affecting the marketplace. Focus on reducing costs where you do have control including deadhead miles, sourcing strategies, supplier and receiver relationships, warehouse and storage utilization, modal selection and more. Condensing freight networks is critical to eliminating unnecessary competition and driving down costs. Duplication and overlap can cost you time and money; that’s why it’s crucial to leverage partner networks by building capacity strategies. –Mark Derks Chief Marketing Officer, BlueGrace Logistics On Inventory Strategies Supply chain disruptions have forced us to move from “just in time” to “just in case” logistics. Shippers are now prioritizing capacity and service over rates. Global conflicts only accentuate these disruptions, prolonging deliveries and escalating costs for companies trying to move goods around the world. –Jenny Vander Zanden Chief Ope rating Officer Breakthrough Though supply chains have run on “just in time” principles for years, calculating the cost of downtime due to events such as port slowdowns can change the calculus in favor of keeping more critical inventory on hand. –Tony Pelli Practice Director of Security & Re silience, BSI
2022 LOGISTICS PLANNER
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1/21/22 4:24 PM @ochsfamily Clever cover! Not sure about song title #5, I Will Survive . It feels more like Thunderdome: “Two men enter, one man leaves.” TWITTER TAKE
Fast TAKES On Diesel Fuel Surcharge Rates
Re. You Won’t Get Fooled Again: January 2022 Checking In by IL Publisher Keith Biondo bit.ly/0122_CheckingIn
Shippers and carriers are bracing for the short-term impact from rising diesel prices, and potential long-term effects to their end customers who will eventually feel cost increases if fuel costs stay high. Paying fuel surcharges is a common industry practice. Therefore, paying higher surcharges for higher fuel costs makes perfect sense, right? However, when the market has drastic spikes in fuel prices, that doesn’t mean rate per mile should also spike dramatically, but often it does.
I always enjoy and look forward to your comments regarding the state of supply chain matters—especially your recent comments in your Checking In piece. I had to email and tell you: Keep up the good work. We all enjoy your perspectives. As you said, hopefully, “We Won’t Get Fooled Again.” –Grant Sebaugh via email
10 Inbound Logistics • April 2022
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