When companies conduct a transportation sourcing event—especially if it is a procurement driven sourcing event—there’s one thing that’s often overlooked: How much carriers value certainty.
A couple of years ago I was at United Airlines where I heard a presentation from their chief revenue officer about the importance of surcharges to airlines (e.g. fees for checking bags, changing reservations, etc...). When he noted that the airlines had taken in over $20 billion in the previous year, it underscored the importance of surcharges on airline profitability.
Through one of the president organizations I belong to, I’ve spent a lot of time looking at “Lean” and learning from great groups like the Lean Enterprise Institute. If you know anything about Lean operating principles, then you know the value and benefits your company experiences by eliminating waste.
