Supply Chain Expertise and Technology Blog by TMC, a division of C.H. Robinson

Archives for October 2011

Why Slow Driving is Not a Viable Route to Lower Fuel Bills

SlowDriving

Shipowners are doing it, so why can’t truckload transportation companies offset the rising cost of fuel by reducing vehicle speed? It’s an attractive idea, but the economics don’t work well in the truck mode. Here are a few reasons why.

First, shifting transportation to the slow lane means that drivers have to be compensated for the earnings losses they incur. Take, for example, a situation where truck speed is reduced to a steady 45 mph from 65 mph (see Figure 1 below). The downshift increases the number of miles per gallon achieved from 6.42 at the higher speed to 9.63 at 45 mph. As a result, the cost of diesel for the carrier decreases from 62 cents per mile to 42 cents per mile at the slower speed. However, clipping the driver’s wings in this way also means that he or she earns less. In fact, you would have to pay the driver an extra 20 cents per mile to maintain earnings levels at the reduced speed.  Read More…

- Director of Consulting Services, C.H. Robinson
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The Power Behind the Wheel

PowerUsers

The value of a transportation management system (TMS) is directly proportional to the expertise of the people using it. We explored this relationship in our recent posts Turning Tacticians into Strategists and Developing an Analytical Playbook for Your TMS. And the individuals who are best equipped to extract this value are power users.

As industry analyst Steve Banker says in a recent blog post[1], “What is the point of buying a Ferrari and then having your nearly-blind grandmother drive the car?”  Read More…

A Fresh Crop of TMS Applications

FreshCrop

Transportation management systems (TMS) excel at helping companies to manage day-to-day changes in their freight networks, but the technology can also perform in markets that shift by the hour. These applications are relatively new, but are opening up opportunities for growers and shippers that were unheard of a few years ago. Read More…

Turning Your TMS into a World Player

WorldPlayer

A global transportation management system (TMS) can transform the way you do business. But what does it take to successfully deploy a TMS platform with a worldwide reach, and what are the specific benefits?

Not all TMS solutions are created equal; some are built to function within domestic national boundaries, while others have a limitless geographic range. Knowing the difference between the two – and what is required to upgrade from the first to the second group of solutions – is becoming an essential part of the TMS playbook.  Read More…

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