Logistics Review Can Help NY Businesses Manage Transportation Spend

Jericho, NY (Vocus/PRWEB ) -- New York businesses spend anywhere from 10 to 50 percent of their operating budgets on costs associated with the transportation and delivery of goods. While costs can vary based on volume and complexity of logistics needs, almost without exception, transportation spend is one cost center regularly put under the microscope as business' look for ways to cut costs. Long Island-based Purolator USA recently compiled an overview of "expectations" that businesses can use to ensure that they are receiving maximum efficiency from their logistics provider.

"Many businesses don't realize that there can be a great deal of flexibility in putting together a logistics plan," says Purolator USA, Director of Transportation Michael Locke. "Businesses need to make sure that their logistics provider is working with them, understands their business and is taking advantage of every potential savings opportunity."

Consolidation can be a key factor in reducing transportation costs. A good logistics provider will have the capability to combine shipments so that trucks are traveling at near-to-full capacity. Consolidation can also help business' avoid costly and inefficient distribution stopovers. "For example, Purolator USA has access to deep distribution networks both in Canada and within the United States," Locke explains. "We use these extensive networks to consolidate shipments so they reach their end user without stopping at a DC. This saves improved service to the end customer by saving time and money, and also avoids the need for a business to maintain a separate inventory in a DC."

Consolidation can improve Canadian shipment efficiency. Last year, New York businesses exported more than $13 billion in goods to Canada. In most instances, a logistics provider will combine smaller shipments into one large shipment, and move the entire load across the border at once. This significantly cuts down on border crossing wait times, and minimizes regulatory paperwork.

Businesses can also reprioritize service levels. The cost of overnight air shipping runs an average 50 percent higher than ground service. Within the ground category, there are several options available, depending on delivery deadlines. Locke noted that many businesses send non-urgent shipments via next day overnight, because they've always done it that way, and they are simply unaware of the alternatives…. "With 75% of the Canadian population and business centers lying within 100 miles of the US border, many shipments moving by ground can be delivered next day without incurring the significantly higher expenses associated with shipping exclusively by air". He added that Purolator USA works with its clients to design custom tailored delivery programs, using both ground and air services to meet the delivery commitments made by their clients to their Canadian based customers.

"Given the current economic climate, it's very important for business owners to realize that they have choices when it comes to logistics services," Locke said. "Businesses can better manage their transportation spend by being aware of those choices, and ensuring that their transportation dollars are being spent as efficiently as possible."

For more information about Purolator USA, please visit www.purolatorusa.com.

Shipping and Business Services Retail Chain Committed to Future Growth

SAN DIEGO - In 1980, Mail Boxes Etc., Inc. (MBE) opened its first location in southern California. Nearly 30 years later,
The UPS Store® and Mail Boxes Etc.® network has expanded to 6,000 locations worldwide, a milestone that underscores the chain's status as the world's largest and fastest-growing shipping and business services outlet.

"The UPS Store and Mail Boxes Etc. network is 25 percent larger today than it was five years ago and we remain committed to continuing the growth and development of our brands around the world," said Stuart Mathis, president of MBE, franchisor of The UPS Store and Mail Boxes Etc. brands.

What started as an alternative to the post office is now one of the world's largest retail outlets, standing nearly one-and-a-half times larger than all of its competitors combined and covering more than 30 countries and territories. Entrepreneur magazine recently ranked The UPS Store and Mail Boxes Etc. as the No. 8 franchise opportunity in its 30th Annual "Franchise 500" and has consistently ranked it as the top postal and business services franchise for the last 19 years.

"We attribute our growth to the power and commitment of our franchisees and master licensees, who are building our brands worldwide," added Mathis. "Through their vision and actions, they create entrepreneurial opportunities for individuals around the world. Furthermore, I believe our global growth is a testament to the strength and adaptability of our franchising concept: a one-stop business services center."

In recent years, the organization's international growth has remained on pace with its domestic growth. Just over the past year, such milestones occurred as the celebration of the 500th location in Italy as well as 100 locations in Germany and the opening of the first center in Russia.

In the United States, The UPS Store and Mail Boxes Etc. locations are independently owned and operated by licensed franchisees of Mail Boxes Etc., Inc. Outside the United States, locations are owned and operated by MBE master licensees or their franchisees. For additional information, please visit www.theupsstore.com or www.mbe.com.


  • U.S. Commercial Trucks Cover 94 Billion Miles in 2007;
  • Transportation and Warehousing Revenues Grow
Truck transportation, couriers and messengers, and warehousing and storage revenues increased 3.5 percent to $325 billion in 2007, according to the U.S. Census Bureau.

The report, 2007 Service Annual Survey: Truck Transportation, Couriers and Messengers, and Warehousing and Storage, provides estimates of revenue, size of shipments, revenue by commodity shipped, and origin and destination of shipment and inventories of revenue-generating equipment for firms with paid employees.

“As the trucking industry moves toward expanding its services to include warehousing and storage, the Service Annual Survey is an important vehicle for measuring these industry changes,” said Mark Wallace, Chief of the Census Bureau’s Service Sector Statistics Division.

Truck transportation revenues saw a 3.2 percent increase from 2006, reaching $229 billion in 2007. General freight trucking contributed approximately two-thirds of all trucking revenue: $153 billion in 2007. The remaining $76 billion in revenue was from trucks transporting specialized freight that required equipment such as flatbeds, tankers or refrigerated trailers.

Specialized freight trucking increased 4.7 percent in revenue in 2007. Local specialized freight (excluding used goods) accounted for $33 billion.

U.S. commercial trucks traveled 94 billion miles in 2007. Long-distance general freight revenues increased 2.5 percent to $127 billion, while local general freight trucking revenues grew 2.1 percent to $26 billion.

Trucking within U.S. borders accounted for 96 percent, or $205 billion, of motor carrier revenue in 2007. Revenue generated from truck transportation with origins in Canada, Mexico and all other destinations was $5 billion.

Motor carrier revenues were up 3.1 percent to $214 billion in 2007. Local motor carrier revenue accounted for $73 billion, a 5.0 percent increase. New furniture and other manufactured products experienced a 6.6 percent decrease from 2006.

Couriers and messengers revenue rose 4.3 percent to $75 billion in 2007. These industries provide intercity and/or local delivery of parcels handled by one person without special equipment and are restricted to small parcels, which distinguishes them from the general transportation industry.

Warehousing and storage revenues increased 4.9 percent to $22 billion in 2007.

Farm product warehousing and storage revenue increased to $836 million in 2007, a 9 percent rise in revenue over 2006 figures.

The 2007 Service Annual Survey: Truck Transportation, Couriers and Messengers, and Warehousing and Storage, includes industries providing transportation of passengers and cargo, warehousing and storage of goods, scenic and sightseeing transportation, and support activities.

Excluded from this sector are establishments primarily engaged in providing travel agent services that support transportation and related establishments, such as hotels. Warehousing establishments in this sector do not sell goods and thus are distinguished from merchant wholesaling.

Establishments in these industries use transportation equipment or transportation related facilities as a productive asset. The type of equipment depends on the mode of transportation: air, rail, water, road and pipeline. The basic types of activities included in the sector are mode of transportation, warehousing and storage, and establishments providing support activities for transportation.

The estimates provided in this release are based on data from the 2007 Service Annual Survey, which use the 2002 North American Industry Classification System and apply only to employer firms. Estimates contain sampling and nonsampling errors. To keep the identity of an individual firm confidential, some estimates may be suppressed. Users making their own estimates, based on the survey estimates, should cite the U.S. Census Bureau as the source of the original estimates only. See for measures of sampling variability and other survey information.

North America's Largest Material Handling & Logistics Show will Address Supply Chain Workforce Crisis, Provide Leading-Edge Education, and Showcase the Latest Equipment and Technology Innovations for Manufacturing and Distribution

ProMat 2009

CHICAGO--With the current environment of economic uncertainty, manufacturing and distribution professionals need reliable information and solid advice to base their capital planning and investment decisions. They will come to Chicago this January for the upcoming ProMat 2009 event to find it.

The industry's largest U.S. trade show, ProMat 2009, will be held January 12-15, 2009 at Chicago's McCormick Place South. It is expected to draw tens of thousands of visitors from the United States and over 100 countries.

“Innovation is essential to the supply chain and as industry looks for new ways to increase productivity and cut costs, ProMat 2009 is their best opportunity in 2009 to see what's new,” says Hal Vandiver, MHIA Executive Vice President of Business Development. “People in manufacturing and distribution can't wait for the economy to improve to make capital equipment decisions for their supply chains and manufacturing operations. They must keep up with the latest and greatest innovations just to stay competitive. In this economy, they literally can’t afford to miss ProMat.”

ProMat will feature over 800 exhibits showcasing the latest equipment and technology innovations for the supply chain. The ProMat Educational Conference will feature a Keynote and 100 educational sessions outlining leading trends, best practices and state-of-the-art equipment and technology solutions. The solutions showcased at ProMat 2009 will help manufacturing and distribution operations cut costs and improve supply chain efficiency and productivity.

ProMat 2009 Keynote To Address Looming Supply Chain Workforce Crisis

The manufacturing and distribution industry is facing a workforce crisis. Baby boomers are retiring, setting the stage for major shifts in workplace demographics including a declining working population through 2025. The result is a shrinking workforce and an immediate loss of supply chain experience and manpower. The ProMat 2009 Keynote titled "Building The Workforce of the Future" will provide an in-depth look at this crisis and what companies can do to adapt to these changes, attract and retain the next generation of workers and take advantage of new competitive opportunities.

The ProMat Keynote will consist of a panel of four experts at the forefront of this important issue and moderated by renowned business journalist Forrest Sawyer. They will provide real-world perspective, detail how the workforce is changing and offer practical ideas that will help you adapt to this change as you build your workforce of the future.

ProMat 2009 Show Floor Educational Seminars

In addition to the Keynote, ProMat 2009 will feature 100 solution-focused educational seminars hosted by industry experts and conducted in specially designed theaters right on the show floor in the ProMat 2009 Knowledge Center. For complete information on the ProMat Educational Conference including session details and speaker information, visit http://www.promatshow.com/attendees/conferences.aspx.

ProMat is sponsored by Material Handling Industry of America (MHIA). MHIA is an international trade association that has represented the material handling & logistics industry since 1945.

Read more about this event on our Couriers.com Events Calendar.


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