I need help with a Management question. All explanations and answers will be used to help me learn.
Please review the article from 2014 on transportation cost: http://www.supplychainquarterly.com/topics/Logistics/20140311-the-real-impact-of-high-transportation-costs/
- The article lists 3 major supply chain shifts to offset increasing transportation cost. One of the key cost drivers is oil, which is now at less than 50% of pre-2014 levels.
- Which 2 key cost drivers (other than oil) to transportation do you think are most important?
- How have the value of these key cost drivers changed between 2014 and now?
If you would be asked today by your manager to reduce transportation cost, what recommendations would you make? Why?