High fuel prices aren't the only factor that has air cargo carriers worried. Other types of costs, as well as traditional industry cycles, are a concern.

A conversation with Gene Long, president of UPS Supply Chain Solutions Consulting Services, Atlanta. Gene Long has spent most of his 32-year career on the shipper side of the supply chain fence, including service as director of worldwide logistics for Dell Computer. At Dell, Long was responsible for physical distribution, remote inventory and delivery activities in North and South America, Europe and Asia. He earlier served as vice president of global logistics for Burlington Air Express, where he created a third-party logistics company serving clients around the world. Since joining UPS in 2001, Long has been deeply involved with the company's strategy to expand its portfolio of supply chain services through targeted acquisitions.

Whether your company is a supplier, manufacturer or retailer, the supply chains you participate in are increasingly interdependent. No single company can succeed unless all supply chain participants operate as one seamless entity.

Changing market dynamics, particularly globalization of manufacturing and sourcing, are impacting the types of value-added services customers want from third-party logistics providers.