fastlane
10 for ’ 13
FOR THE PAST FEW JANUARYS, I’VE ATTEMPTED TO IDENTIFY
the top 10 challenges facing the logistics/supply chain community in
the year ahead. My score for 2012 was not too bad, but I have to admit
my predictions were pretty safe. This year, I’m going to stretch it a little and see what happens. Herewith, my list of 10 developments that
bear watching in 2013:
1. The usual. Not to trivialize any of these issues, but I believe it’s
pretty much a given that we’ll continue to struggle with driver shortages and hours of service, fuel costs, carrier pricing, possible capacity
shortfalls, infrastructure, and sustainability.
2. Treatment of truck drivers. While salaries certainly enter into it, it
is becoming increasingly clear that lifestyle factors keep many from
pursuing a career as a truck driver. It will be
incumbent upon shippers and receivers to help
ease the pain by making their facilities more welcoming to drivers. Consider, for example, that
many DCs lack adequate facilities for women and
pets, which are on the road in growing numbers.
Some minor expenditures can yield some major
results.
3. CSA 2010. Although the driver safety initiative
was initially denounced as a huge blow to the
industry, I believe CSA 2010 will turn out to be
anticlimactic. As carriers and drivers gain experience with the program, the new regulations will
prove to be more help than hindrance.
4. Air travel. Let’s face it. Even in first class, air travel is ugly; and
unless Singapore Airlines starts flying domestically, it will continue
to be that way. Fares and fees have skyrocketed, while service, seat
availability, and comfort continue to deteriorate. With no solution
in sight, we can expect to see a renewed push to regulate the industry in 2013.
5. Use of boxcars. As rail service continues to improve and truckers’
challenges mount, some companies will begin looking back 50 years
and start shipping some products in boxcars. While this might not
seem like a step in the right direction, improved rights-of-way, better
equipment, and faster, more reliable service can make rail a reasonable alternative to trucks.
6. Pricing options. As transportation costs continue to rise, more
companies will quit trying to be Six Sigma suppliers and begin offering slower, but cheaper, shipping options to customers who don’t
require premium service. Not everyone needs overnight or even second-day delivery.
7. Alternative fuels. Several motor carriers already have had excel-
lent results with natural gas, and there is no reason to expect that these experiments will end
anytime soon.
8. Outsourcing. Continuing uncertainty in the
economy and the supply chain will give a boost
to logistics service providers (LSPs). Contracting
with an LSP gives shippers the flexibility to modify their distribution networks relatively swiftly
in response to changing market and transportation conditions.
9. Panama Canal. The expansion of the
Panama Canal, scheduled for completion in
and the outbound flexibility they need.
10. Freight bill payment. For 50 years, freight bill
audit and payment firms have provided a valuable
service to the industry, but the widespread availability of transportation management systems
with freight payment modules could take a big
bite out of that business. Freight bill payment
companies will need to broaden their horizons
and look for innovative ways to package the valuable information they can provide.
Some readers of this column may believe that
I’ve “lost it” on this one, but let’s regroup in
December 2013 and see how we did. ;
Clifford F. Lynch is principal of C.F. Lynch & Associates, a provider of
logistics management advisory services, and author of Logistics
Outsourcing – A Management Guide and co-author of The Role of
Transportation in the Supply Chain. He can be reached at cliff@cfly-
nch.com.
