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How to Talk Transportation Budgets

Imagine that a company makes a strategic change in its supply chain. Sales and profits increase nicely as a direct result, but transportation spending increases much faster than sales. Despite the transportation cost increases, this was likely a good move for the organization. However, the executive in charge of transportation must still explain why he is significantly over budget. And often, he must deliver this explanation to someone who may not have a transportation background.Difficult though this conversation may be, it is well worth having. It introduces a wider discussion about how businesses can weigh anticipated benefits of a business decision against potential transportation cost increases, and decide whether this tradeoff is worth it, before the decision is made.This issue of CSCMP Explores… serves as a starting point for that discussion. It presents certain drivers that are specific to transportation budgets, beyond the broader transportation market. Key to a deeper understanding of these drivers is the need to monitor and manage transportation using a transportation management system (TMS) and robust business analytic tools. This paper will introduce some common metrics and tools that are essential to detecting the drivers of transportation budget variance. This edition is also available as an ePub file.  View a list of recommend ePub readers. 
Date:
October 20, 2014
Media:
PDF
Pages:
21
Member Price:
$0.00
Nonmember Price:
$15.00
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