Many companies have expanded well beyond simple delivery services and are now managing all aspects of the supply chain. These trends have changed the face of an industry which has become increasingly focused on serving customers in all parts of the world.
Deregulation, consolidation, and privatization are opening new opportunities—for growth, cooperation, or alignment with other players—while simultaneously raising the bar for operational performance and profitability. This has placed companies under increased pressure to reduce costs but still continue to grow and maintain a competitive advantage through increased productivity and efficiency. Therefore as the world emerges from recession and the survivors find their new place in the order, transportation providers are now tasked with transitioning their risk management and governance practices into world class standards.
When looking at the operation of support services (IT, procurement, compliance) many companies have opted to move these activities into a shared services organization. Others have outsourced. Many have done both. In many cases these moves go hand in hand—and go alongside IT rationalization.
Consolidation and simplification of operating processes and reduction of overheads can have a twofold benefit: boosting the balance sheet and reducing operating costs.