World Trade - August 2008 - (Page 52)

GREEN LOGISTICS The SmartWay Truck Tractor Strategies 12% Reduction Tractor Mounted Gap Reducers Idle Reduction Equipment A SmartWay Truck is 20 to 25% more efﬁcient than an average truck on the road today. Trailer Strategies 11% Reduction Trailer Mounted Gap Reducers Integrated Cab Reef Fairing Aero Mirror Aero Profuel Tractor US EPA Certified Trailer Rear Fairings or Boat-tail US EPA Certified Or 2007 MY Engine Aero Bumper 2007 Tractor 2007 Trailer Fuel Tank Side Fairings Low Rolling Resistance Tires Trailer Side Fairings Low Rolling Resistance Tires Lines, and charter carrier Schneider National, and shippers Dell, JC Penney, and Wal-Mart are all partners. SmartWay, by all accounts, has been among the most successful programs ever launched by the EPA; it operates on a small budget, which is a double-edged sword. Rising fuel prices are driving carriers to invest in fuel saving technologies and devices. Correspondingly, from 1 to 3 carriers per day are enrolling in the program, taxing administrative resources. The organization continues to grow, doubling in size every year since its inception, according to Mitch Greenberg, manager of the EPA SmartWay program; and shippers continue to express a tremendous amount of interest in the program. Shippers are now asking SmartWay to expand their program to include all modes of transportation from ocean, rail, to air as well as to port services with heavy truck trafﬁc transporting products from ports to distribution centers. Meanwhile, the EPA is proposing an ambitious project called the SmartWay Transport Supply Chain Protocol, which offers tools and methods to quantify and reduce their transportation supply chain carbon footprint. The project will enable industry stakeholders to better assess and reduce the emissions from multimodal goods movement. The EPA is also responding to a growing list of inquiries from overseas where foreign governments, trade associations and NGOs are looking to implement SmartWay sister programs in their countries. Many are offering to harmonize data collection and reporting methods and are looking to improve the sustainability of global supply chains. Beyond SmartWay egies that shippers can utilize to reduce their logistics related costs is to take advantage of available transportation management software (TMS) and strategic network analysis tools. Adrian Gonzalez, director of ARC’s Logistics Executive Council, says that growth in TMS sales stems from the fact that transportation has become more difﬁcult to manage, with smaller order sizes and shorter order-to-delivery cycles wreaking much of the havoc. Rising fuel costs and inventory-reduction initiatives are also pushing companies toward leaner, just-in-time operations. “As a result, transportation providers have no choice but to turn to technology as a way of reducing their costs. Carriers and shippers will also have to do a much better job of collaborating and working as strategic partners,” he observes. The Long and Winding Road No one knows for sure what the future will hold in regards to the price of oil or corresponding diesel prices, but many industry analysts are predicting sustained price increases for the near future. Programs such as SmartWay are easing the pain for over 870 companies who have chosen to seek out real-world solutions to their rising logistics costs. TMS technology can continue to provide much needed analytic and optimization capability for better network management and reductions in cost. Professor Zach Zacharia, Ph.D., Management, of Texas Christian University, argues that “collaboration accelerates innovation among companies especially during times of high stress.” The term “high stress” certainly applies to the present. WT Brittain Ladd is Director of Logistics and Project Management for a Dallas private equity ﬁrm. Although partnerships with organizations such as SmartWay have taught carriers and shippers how to reduce their fuel costs, the price of diesel fuel continues to cause anxiety. According to the logistics research organization ARC Advisory Group, one of the best strat52 WORLD TRADE AUGUST 2008 For reprints of this article, please contact Cindy Williams at williamsc@bnpmedia.com or 610-436-4220 ext. 8516.

Table of Contents Feed for the Digital Edition of World Trade - August 2008

World Trade - August 2008 Contents Weathering the Storm Helping the World’s Poorest Nations Benefit from Global Trade Supply Chain Watch Tradewinds World Trade’s Top U.S. Trading Partners LTL Shipping ‘On the Fly’ Air Cargo Flies a New Heading Getting More from China Sourcing Why 3PLs Need a Seat at the C-TPAT Table Performance-based Supply Chains Drive Total Lifecycle Value SmartWay Navigates Sustainable Transportation Around the World in 80 Days—Hours—Minutes

World Trade - August 2008

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