When Business Growth Harms Transportation Network Efficiency
March 27, 2019

Growth is a primary goal of most organizations, but when your business relies on a transportation network to source raw materials or get your products to market, growth can harm your network’s efficiency. Whether you’re making a major acquisition, expanding operations, adding new customers, or altering product lines, ongoing changes can reduce your transportation network’s productivity, and your profitability.

But there are signs when a network becomes less efficient.  If your business is experiencing any of these symptoms, it may be time to review whether your network’s overall design has kept up with ongoing changes in your company.

STALE OR INCOMPLETE DATA

Older technology platforms may lack the power to capture growing needs for real-time delivery and operating information. This reduces your visibility and control and not only harms customer service, but cripples the opportunity to harness transportation data to improve your business beyond transportation.

 

MISALIGNED KEY PERFORMANCE INDICATORS (KPIs)

As companies grow, individual locations may begin to operate as independent businesses and measure KPIs that meet local but not company-wide needs. Without some degree of coordination local reporting of fleet statistics, carrier costs, customer service delivery, and safety may hide network-wide opportunities for improvement.

 

CONTINOUS IMPROVEMENT DEFICIENCY

The need to focus on managing growth in your core business can distract managers from identifying opportunities to improve your transportation operation. Transportation networks often receive short-term fixes that miss larger, network-wide solutions.  If your business has changed since your last transportation review, you may be missing opportunities to improve network efficiency, cost, and customer service.

Learn how a major manufacturer partnered with Cardinal to redesign its growing network

Identifying ways to optimize the transportation networks of dynamic businesses is a specialty of Cardinal. In this Q&A interview, Cardinal Vice President of Operations Support Services, Tim Johnson shares how proven processes can enhance service and productivity in growing and evolving transportation networks.

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