Mode Shifting Dos, Don'ts and Benefits

摘要

Mode shifting can lower costs, but it is important to consider all of the ramifications of the choices. Supply chains everywhere are adjusting their transportation mix to cut spending without sacrificing service and quality. New technology and improved service make mode shifts feasible for pharmaceuticals, produce, flowers and other sensitive goods, but the decision to switch involves more than choosing ocean over air or rail over truck. The ramifications extend throughout the company and the supply chain. According to a December study by the National Shippers Strategic Transportation Council (NASSTRAC), nearly 69 percent of its 100 respondents shifted freight to different modes during the past 12 months. Nearly 37 percent shifted to rail and intermodal, and just over 12 percent shifted to full truckload. Nearly 5 percent shifted to less-than-truckload (LTL), according to Brian Everett, executive director. "We didn't ask what they shifted from," he adds. "In 2013, more than 57 percent anticipate a modal shift in their transportation strategy."