Targeting_Market_Trends

Targeting Market Trends Jindel (2011) states, although the less than truckload (LTL) 2010 margins are a dramatic improvement over the negative 7 percent margins of a year earlier, the weak U.S. economy and uncertainty about the future continues to paint a somewhat gloomy picture. For the purpose of this discussion two trends in the motor carrier industry will be identified and discussed. Initially the two issues appear to be polar opposites. First is the CSA 2010 or as it is known now the Compliance, Safety, Accountability program or just CSA. The second is an increasingly important component of customer service, providing shippers and consignees with real time shipment information. Beyond initial examination the two topics are related to the bottom line, one by saving dollars the other by generating dollars through expansion of market share. In recent web casts by Anonymous (2011), the question of what the CSA regulations mean for the future of trucking and whether they will affect profitability in the third party logistics (3PL) industry is discussed. Heller (2010) then states, if implemented correctly CSA provides the tools necessary for carriers to improve safety weaknesses thus saving lives on our nation's highways and saving carrier dollars through safety management. Although saving carriers money is not a primary objective of CSA it has great potential in that arena. The second area, providing real time shipment information, is quickly becoming the expected norm with customers. Leading small parcel delivery companies UPS and FedEx began using communication technology several years ago and are continually updating both hardware and software to provide real time shipment information. In recent years each has acquired LTL divisions, Overnite Express and American Freightways respectively, thus blurring the line between small parcel and LTL freight carriers in the eyes of shippers and consignees. As reported by Business Editors (2002), with the merge of these two identities customer expectations in levels of service has grown, especially real time shipment information. In order to provide this service LTL carriers are expanding communication technology at the driver level. . Zuckerman (2007) concludes information regarding the real time location of a shipment has driven the current changes in the structure of LTL carriers. How these trends relate to a specific product will now be discussed. Hand held communication technology is and will be a necessary product for future growth of the LTL industry. With all the variable elements inherent to LTL the task of optimizing is staggering. Terreri (2010), discusses on-time deliveries, premium customer service and optimal utilization of equipment. The employer of the author Con-Way Freight is preparing for a second tier rollout with hand held devices which will enable the GPS and camera components. LTL is a service driven industry with customer demand for real time information increasing the expectation for driver level hand held computers. The other selling point of these devices is the ability to customize them to fit industry needs such as the medical field. The demand is growing and companies providing this product need to stay ahead of the pack by adapting and aggressively pursuing alternate industries. References Business Editors. (26 November). Motorola, FedEx Develop Wireless, Pocket PC for Couriers to Enhance Customer Service: [1]. Business Wire, 1. Retrieved February 12, 2011, from ABI/INFORM Dateline. (Document ID: 245953271). David Heller. (2010, July). Carriers must refocus. Fleet Owner, 105(7), 42. Retrieved April 11, 2011, from ABI/INFORM Global. (Document ID: 2072930521). Satish Jindel. (2011, January). Truckings Uphill Climb. Journal of Commerce. Retrieved April 11, 2011, from ABI/INFORM Global. (Document ID: 2231915151). Journal of Commerce Announces Webcast Series Addressing the 2011 Forecasts for 3PL, Container Shipping, Trucking, and Intermodal. (12 January). PR Newswire Retrieved April 11, 2011, from ProQuest Newsstand. (Document ID: 2236109561). Leone, D... (2010, December). LTL Doing More With Technology. Transport Topics,(3925), A4, A10-A11.  Retrieved February 13, 2011, from Research Library. (Document D: 2228164861). Terreri, A. (2010, May). Optimizing the LTL Industry. World Trade, WT 100, 23(5), 24-29. Retrieved April 11, 2011, from ABI/INFORM Global. (Document ID: 2032398831). Amy Zuckerman. (2007, June). Wireless Technology and Trucks. World Trade, 20(6), 26-28,30. Retrieved February 13, 2011, from ABI/INFORM Global. (Document ID: 1355666871).