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Transport Industry Must Re-Think Risk, Networks Post-Recession

Stocks in this article: MMC

The recession hit the transport and logistics industry hard, but opened opportunities for the smartest and most agile companies to grow.

Some companies are finding surprising ways to cut costs. Others are finding new ways to use the assets they already own to boost profit. Understanding and managing business risk is proving to be more beneficial than ever.

In the fall 2012 edition of Oliver Wyman’s Transport & Logistics journal, experts with the Surface Transportation Practice examine trends during and after the recession. Among their findings:

  • In the area of contract logistics, the economic crisis led to greater concentration on core business models and focus on industry-specific needs.
  • Logistics network managers are shifting away from the complex modeling that can cause information overload. Instead, collaboration between sales and operations departments is helping to meet customer needs.
  • For dense city cores, consolidating freight outside the city onto fewer trucks may be a way to boost traffic speeds, cut carbon dioxide emissions, and reduce the need for road construction.
  • Railway maintenance, often considered an expensive drag on operations, can be a source of added network capacity if done right.
  • In public transit, commuter and urban transport agencies are learning to trim costs through better life cycle cost modeling and procurement optimization for fleets.
  • Governments could free up more than $5 trillion by 2030 for other purposes by better managing the risks inherent in infrastructure investments.

The Oliver Wyman Transport & Logistics journal is available at www.oliverwyman.com/5852.htm.

For further information or to arrange an interview with one of the authors, contact Kevin Foy at kevin.foy@oliverwyman.com.

About Oliver Wyman

Oliver Wyman's Surface Transportation Practice is one of the largest consultancies in the world dedicated to the transportation industry. The practice has a professional staff of more than 100 partners and consultants worldwide. It provides a comprehensive set of services and capabilities to transportation carriers, and to the users and regulators of transportation services, across the full range of the transportation sector.

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