The Supply Chain’s X Factor

Growing up in the trucking industry, I’ve always been a bit preoccupied with transportation. Now it looks like the rest of the industry is, too.

As Peter Bradley’s recent DC Velocity article, “The New Dynamics of Site Selection” points out, transportation and its related costs have become, in many instances, the deciding factor in site selection. It’s no longer enough to have a well-equipped facility with the right price per square foot; now you better find a perfect location with rail and highway access points within an economical proximity to major markets. Not too much to ask for, right?

I jest, but as the industry continues to adjust to the changing market, this type of “holistic logistics” thinking is becoming more common. But we still need a way to move product from location A to B (and often C, D and E as well). We continue to develop better technology, streamlined processes and tighter networks to offset the rising cost of transportation. Will we ever be able to decrease the price tag associated with the movement of product? Will alternative fuel sources make transportation more efficient and cost effective? Or is it transportation’s fate to be the largest cost center in the supply chain?