Does an uptick in the economy mean buyers should be looking for better pricing?

September 13th, 2010

Buyers should always be looking for better pricing. But an increase in spending may mean an increase in volume beyond the basics. So if you’re looking for an excuse to reduce costs now would be a good time to get on the train ride.

The reason for the train ride analogy is that one area we look at when trying to track the economy is the transportation sector and it associated costs. A few of the areas worth looking at are.

1. The amount of product moved which is normally referred to as tonnage.
2. The amount of air cargo shipped in and out of major airports.
3. The amount of non travel volume increase rail shipments.
4. The increase in trucking volume.

Most of these indicators are up according to an article in the Sunday September 12th issue of the Arizona Republic titled “Economy on the Move” by Betty Beard.

Maybe before you look at the products you are shipping you should look at shipping itself. Some questions to ask that might lead in the direction a decision.

1. Are you doing all of your shipping using a 3PL?
2. Are you leasing warehouse space?
3. Do you have your own fleet of trucks?
4. What are your current diesel costs?
5. How old are the trucks in your fleet?
6. Do you own or lease your warehouse equipment.

The good news is that once companies start to build their volumes again they also begin to look more aggressively for new business. All of the above areas are open for negotiation and have been sourced by SafeSourcing using low cost e-procurement tools during the last 12 months at great savings for our customers. Maybe you should get on the train. Maybe you should have already been on it.

We look forward to and appreciate your comments.

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