Economy
Stop Watching Oil. Start Planning for Volatility.
Prepare for supply chain volatility as fuel prices fluctuate.
The 2:00 Minute Warning
Over the last three weeks, we've shared tips on how to build an accurate transportation budget for 2017. Here's our fourth and final tip.
Over the last three weeks, we have shared how you can build an accurate transportation budget for 2017. In previous weeks, we offered three important tips:
- Tip #1 – Look at the economy
- Tip #2 – What are you willing to change as a company?
- Tip #3 – Be aware of carrier changes
Here's our fourth tip: the "Oh shucks!" factor. I've given many talks on budgeting. When I do, people consistently come up and tell me that they are under enormous pressure to provide the lowest possible budgets, so they make a critical assumption--everything will go perfectly. There’s no "Oh shucks!" factor. In real life, we all know that things don't always go according to plan.
If you are looking for a recent example look at what happened when Hanjin filed for bankruptcy a couple of weeks ago; almost immediately other ocean carriers raised rates because there was a lot less than capacity in the marketplace--and that's just one example. There are many more, so I encourage you to make this a priority.
If you’re wondering how much of a factor to build in to your budget, or how to lessen your risk, get in touch with us about conducting a rapid assessment. This process helps you identify your vulnerabilities quickly and easily.
As with each and every Two Minute Warning we like to remind you: we're on your team, we're here to help, and we're passionate about seeing you be successful. If you have any questions or comments, please reach out to us at 630-833-0890 or at solutions@tranzact.com.