newsworthy
For Saddle Creek, it’s sink or
swim in the natural gas pool
Supply chain execs see
benefits in predictive
software
IT’S A TYPICALLY OPPRESSIVE MID-SEPTEMBER AFTERNOON IN
central Florida as Michael J. DelBovo straps in behind the wheel of a
demonstration tractor. DelBovo releases the handbrake, pushes the drive
button, and fires up his company’s, and perhaps his industry’s, future.
DelBovo, 49, is president of Saddle Creek Transportation, the transport
arm of Lakeland, Fla.-based Saddle Creek Logistics Services, a third-party
logistics service provider (3PL) with fingers in the asset- and non-asset-
based transport, warehousing, packaging, and fulfillment pies. Like most
3PLs, Saddle Creek has benefited from the secular trend of businesses’
offloading more of their supply chain functions to outside specialists;
since 1993, its revenues have
compounded annually by 10
percent, a growth rate the com-
pany sees continuing.
PHOTO COURTESY OF SADDLE CREEK LOGISTICS SERVICES
REASONS TO CONVERT
Saddle Creek cited a myriad of reasons for the conversion. CNG is clean-er-burning than diesel fuel and, as a result, is more environmentally
friendly. It’s also a safer energy source. If a tank ruptures or is punctured,
the gas doesn’t spill or ignite. It simply dissipates into the atmosphere.
Using CNG has also made Saddle Creek more appealing to some potential customers, according to the company. More shippers are becoming
environmentally aware, even to the point of including environmental
requirements in requests for proposals. Saddle Creek executives say the
company’s commitment to natural gas has given it an edge in contract
bids—all other capabilities being equal with rivals’. “It’s cracked open
doors,” said Brad M. Rolland, director of business development.
But the core factor—especially in a thin-margin industry p. 18
Supply chain executives believe they
could make smarter decisions and
increase profitability if armed with
the right analytical software, according to a recent survey.
Seventy-five percent of the 191 top
supply chain officers who took part in
a June 2012 Aberdeen Group survey
said their decision-making could be
improved with the use of analytics,
defined as special software tools
designed to discern patterns or trends
in supply chain and logistics operations. Aberdeen Senior Research
Analyst Bob Heaney detailed the survey results in a presentation at
Dematic’s 27th Annual Material
Handling and Logistics Conference in
Park City, Utah.
Respondents said predictive analytical software would help them achieve
cost savings, increase profitability, and
differentiate their customer service
from that of competitors. Heaney said
44 percent of the survey respondents
are currently using analytics to
improve internal processes for forecasting, pricing, and planning promotions, as well as for making midcourse corrections.
In addition, 37 percent said they use
analytics to optimize inventory based
on customer demand or service levels.
Another 35 percent said they use analytics to “transform” their supply
chains.
The Aberdeen analyst said the survey found that the top priority of supply chain executives is to manage the
growing complexity of global operations. Survey respondents said supply
chain complexity is increasing due to
longer leadtimes, global expansion,
and a proliferation of suppliers, partners, and carriers. ;
