The effect of capacity constraints will again become apparent in the coming years, partly due to the retirement of a large section of the driver and logistics employee population, with fewer employees entering the industry. Their expectations are that freight costs, including fuel costs, will show a steady rise but remain volatile. In their 2012 supply chain trends study (see ), Gartner recognized a further trend towards improving customer service and innovation, in contrast to focusing on operational cost cutting and efficiency improvements. The extent to which transport is outsourced from shippers to third-party logistics providers (3PLs) varies by country, but is showing an increase as companies explore the potential for further synergies. Additionally, the industry is characterized by a large number of smaller companies, although there is currently a strong trend towards further consolidation through mergers and acquisitions. The current environment for the transportation industry is recognized as challenging, given low margins, pressure on volumes and increasing fuel prices (see ). This article is based on best-practices applied at various midsize and international companies on multiple continents. We will conclude by providing some recommendations. ERP, WMS, TMS) and the opportunities and challenges faced by specific industries like postal & express, bulk & liquid and contract logistics and groupage. Subsequently we will explain the positioning of Advanced Planning and Optimization in relation to other IT solutions (e.g. In this article we will provide examples of reliable forecasts that lead to better strategic and tactical decisions, but also examples of actual orders that influence and optimize operational and real-time decisions which lead to improved efficiency and customer service.
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