Media Coverage 1.99

Annual Transportation & Logistics Survey

The Race is On: Trends and Issues in Logistics & Transportation by Ernst & Young and the University of Tennessee Methodology

Today, information permeates our lives-both personal and professional. Efficient ways of maintaining connectivity to global customers and suppliers continue to multiply and develop. To be successful, one must adapt to the changes and take advantage of those that are most productive.

These are some of the reasons that motivated the research team to use the Internet as a significant means of collecting data for this year's survey. A dedicated web site was established where firms from all over the world could begin to share their knowledge with their colleagues. More than 2,400 letters were sent to logistics professionals inviting them to participate in the survey.

While the site - http://itlr.utk.edu (International Transport & Logistics Research) - is still in its infancy, respondents from the US, Europe, Canada, Mexico, and Hong Kong added their thoughts and expertise to this report and over 51% entered their responses on the web site. Manufacturers constituted the largest segment of the sample, at 51% of the total, followed by consumer products and retail companies at 19%. While the vast majority of the responses were from US firms, our hope is that this method can and will be used in the years to come to gather global information regarding trends and issues in logistics and transportation.

Executive Summary

The purpose of this report is to provide the reader with an overview of:

	The TMS market
	What people are doing with TMS tools
	How TMS tools can be used to better meet the needs of your customers

In this year's survey, technology emerged as a focal issue for four related reasons. First, in dollar terms, the transportation expenditure for most respondents' companies is rising. Second, technology, along with internal operating improvements, ranked highest as a means to productivity increases. Third, companies are expecting more from their transportation providers and are experiencing information technology-driven service improvements. Fourth, timely, accurate information is critical to company improvement initiatives, confirming technology's enabling function.

More specifically, the most important survey findings are as follows:

	As a group, the respondents' companies spent in excess of $21 billion dollars on transportation last year.
	64% saw the amount spent on transportation increasing next year.
	45% of the respondents' companies spent less than 2% of sales on transportation, with 21% spending more than 5% of sales on transportation.
	85% of respondents' companies can track performance improvements to the bottom line.
	As in 1997, technology was among the primary methods used by companies to achieve significant productivity gains.
	Those respondents recording the highest level of productivity gains are the most likely to be relying on technology as a means to reduce costs.

For more information and/or a copy of this report, please contact Christina Winquist with your shipping address and phone number.

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