The financial uncertainties of September 2008, vacillating oil prices have compelled companies to think of better ways to supply and service markets closer to them from the nearest factories. When oil was cheaper, many companies made quick and repeated deliveries to customers. A large fleet of trucks to ship products was maintained for this purpose. Oil and the finance are two key factors that will result in transportation changes in the coming months.
Companies will package products more efficiently
Companies will find cheaper and maybe slower alternatives to move shipments from air to ground, and from trucks to rail to cut transportation costs.
Manufacturers will rely more on 3rd party trucking companies and warehouses. 3rd party carriers can consolidate shipments more efficiently , thereby reducing shipping costs.
Manufacturers will base production on distribution decisions on long term forecasts instead of responding to immediate customer demands. This will allow advantages to gain from economies of scale.
Companies will cut back on rush-delivery through better inventory management to ensure there is enough supply to meet demand.
Tightening integration between production, demand and other stages of the supply chain to prevent shortages and the rush of parts or products from distant factories or distribution centers.
