Supply Chain Management and Logistics Blog. Posts are about end-to-end supply chain management and logistics in a time of challenging disruption. Tom provides leading supply chain management and logistics consulting and advisory assistance based on real-world experience. He brings authority and domain expertise to clients. Email Tom at: tomc@ltdmgmt.com Check Tom's profile at: https://www.linkedin.com/in/tomcraig1/
Friday, June 6, 2014
TRANSPORTATION & LOGISTICS SERVICES INDUSTRY
The key issue over the past 5-10 years for the transportation and logistics industry has not been sales growth. It is margin erosion. Chasing business using low prices negatively impacts profits and further commoditizes the industry. The percent of customers with a value proposition should be 25% of the business; low price/commodity service customers are the remaining amount and base activity. Value proposition business generates greater profits. The lower that percent, the lower the margin.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment