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.
Oliver Wyman is a global leader in management consulting. With offices in 50 cities across 25 countries, Oliver Wyman combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. The firm's 3,000 professionals help clients optimize their business, improve their operations and risk profile, and accelerate their organizational performance to seize the most attractive opportunities. Oliver Wyman is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC). For more information, visit www.oliverwyman.com. Follow Oliver Wyman on Twitter @OliverWyman.