Industries
Transportation
The transportation industry is a dynamic mix of old and new. At MorganFranklin, we recognize the challenges and opportunities facing the industry. Globalization, the adoption of new technology in the supply chain, homeland security threats, and wildly fluctuating energy costs and dramatic changes in demand are some of the issues that management must face to manage risk and remain competitive in today's marketplace.
Global Supply Chains
Technological advances and expanded trade agreements have led to shortened turn-around times in the movement of goods and people. This has allowed businesses to tap into new sources of materials and markets. Increased globalization creates vast opportunities but challenges related to transportation and logistics impact the efficiency of the supply chain. A focus on reducing supply chain costs too much can actually lower margins, plus it can also increase risks and friction points. Bottom line, businesses that operate in global markets need to make smart sourcing decisions, collaborate well with customers and suppliers, and be prepared to respond to supply chain disruptions in order to protect brands and customer loyalty.
Information Technology
Advances in information technology have brought significant efficiencies to the sector. Manufacturers, retailers, and transportation providers are finding innovative ways to use technology to reduce transportation costs and improve delivery times, however, compatibility with existing systems, migration to newer technologies, security of networks and data warehousing, and retraining are just some of the challenges associated with the adoption of information technology in the transportation sector.
Security and the Homeland
The threat of terrorism has impacted security concerns surrounding the transportation industry. Although much attention has been paid to the airline industry additional efforts will be focused on other modes of transportation in the years ahead. Terrorism can impact key infrastructure components resulting in change or even damage to entire supply chains. To manage this risk, businesses will have to work effectively with existing government agencies that monitor and work to mitigate this threat. Adoption of risk management and security related technology to monitor and respond to threats is also becoming important. Transportation companies must be ready to respond with emergency response and disaster recovery plans to ensure continuity of critical transportation networks.
Energy
The search for renewable energy sources is vital. Wild swings in energy prices can put significant pressure on operations and justify new technologies. Legislation surrounding the adoption of clean sources of energy will be one of the investment drivers in infrastructure. The investigation and adoption of energy conservation and alternative fuels can greatly impact profitability and public opinion. Industries to be impacted by this trend include large energy users such as ground transportation, aviation, railroad, public transport, chemicals, and automobile industries. Investments in operational redesign will be necessary in order to respond quickly to adoption of newer sources of energy to reduce operations and transportation costs. Attention to competitors and their responses coupled with a thorough knowledge of ones own business processes is key to responding to this risk.How Can MorganFranklin Help?
MorganFranklin provides a wide range of solutions to help the transportation and logistics providers tackle some of the big challenges facing today's market. From business intelligence and homeland security consulting to process improvement and internal controls, our professionals have the expertise to help you navigate many of the challenges you face.Explore our capabilities
