Shippers and their service pro-
viders relied for years on low-cost
transportation to help keep inven-
tories lean. Now that higher energy
prices have made pure shipping
costs an item that can’t be taken for
granted, more logistics planners are
turning to advanced technology to

by William Hoffman

manage inventories by matching
the sophistication of supply chain
strategies to the basics of day-to-
day execution.
For shippers, the move to better
inventory management tools has
been the result of a shift over the
With shippers taking last five years in the balance of costs
throughout the supply chain to the
stock of rising costs, point where, from a financial stand-
point, it’s become more important
than ever to keep inventory at a
technology to manage minimum. Industry studies such
as the Council of Supply Chain
inventory is critical to Management Professional’s “State
of Logistics” report show inven-

changing supply chains

tory carrying costs making a steady
climb in recent years.