TRUCKING ON DOWN TO SAVINGS

• Published in: Industrial Engineer Vol. 43; no. 6; p. 37
• Main Author: Contreras, Homero H
• Format: Trade Publication Article
• Language: English
• Published: Norcross Institute of Industrial and Systems Engineers (IISE) 01.06.2011
• Subjects: Business metrics; Collaboration; Cost control; Information; Manufacturing; Negotiations; Roads & highways; Shipments; Sourcing; Steel products; Suppliers; Supply chain management; Supply chains; Transportation planning; Trucking; Trucking industry; United States > US
• ISSN: 2471-9579

Recently, a Mexican company focused on the manufacturing of steel products decided to redesign its trucking-transportation strategy. The company has about 20 plants and distribution centers in the country. The trucking-sourcing project had the following goals: to reduce transportation expenses; to normalize the costs per destination; and to consolidate a trucking-suppliers database to achieve a better administration and evaluation of the company's supply chain partners. In 2005, authors Helen Clegg and Susan Montgomery proposed a sourcing methodology in their article, 7 Steps For Sourcing Information Products. Adapting Clegg's and Montgomery's information sourcing strategy to the trucking process allowed the company to focus on its core goal of reducing costs in trucking operations. This solid analysis and focus, instead of resulting in poorer relationships with suppliers, led to a win-win for all sides. Finally, both the economic benefit and the qualitative improvement in the relationship with the suppliers have led to a better performance in the process of shipping and sourcing trucking suppliers.