Analyst Insight: Procurement has made steady progress in playing a more important role in the preparation and solicitation of transportation RFQs and carrier negotiations. This trend is good in those instances where transportation is viewed and managed as a commodity. However, in companies where transportation has a more strategic role and thus greater impact on the organization, procurement peers often do not have the depth of understanding needed to navigate the economics and operational distinctions found in transportation. - Karl B. Manrodt, Professor of Logistics and Supply Chain Management, Georgia College & State University

Analyst Insight: Today's strategies for managing suppliers are incomplete. Too much emphasis has been placed on using power to gain leverage over suppliers. But this strategy doesn't work in every situation and care has to be taken to architect the right kind of relationship. Power stymies the development of truly collaborative and strategic relationships. These relationships can produce outcomes well beyond what one firm can do by itself. - Karl B. Manrodt, Professor of Logistics and Supply Chain Management, Georgia College & State University

Analyst Insight: We have spent over a decade understanding what drives operational performance in DCs through the DC Measures Study. We've written that a DC's operations should reflect the firm's strategic direction. If the strategy is not communicated or understood, firm performance will be mixed at best. Combining over 2,000 respondents spanning five years of data, we've identified a common theme: the lack of alignment between the operational level and corporate strategy. -- Karl B. Manrodt, Professor of Logistics and Supply Chain Management, & Donnie Williams, Assistant Professor of Logistics and Supply Chain Management, Georgia College & State University

Analyst Insight: At the start of 2016, one quest remains unchanged: how to take cost out of the transportation process. The focus on greater efficiencies and visibility is critical for a well performing supply chain. Shippers, 3PLs and carriers need to embrace new data visibility solutions that reduce costs, serve customers more effectively, and improve operating performance for everyone. APIs are one such solution that will continue to gain traction. - Karl B. Manrodt, Professor of Logistics and Supply Chain Management, Georgia College & State University

Analyst Insight: Shippers have controlled the dialogue on rates and service for several years. This has now past, as several key factors now help carriers negotiate at the bargaining table. The could lead to a true "play or pay" scenario most shippers are not prepared to fully appreciate. – Karl B. Manrodt, Professor of Logistics, Georgia College & State University