Gartner Research

How to Manage Transportation Costs While Mitigating Capacity Challenges

Published: 03 June 2019

ID: G00381226

Analyst(s): Greg Aimi, Courtney Rogerson, Bart De Muynck

Summary

Logistics leaders are struggling to establish budgets and plan for reliable transportation service in what has been a volatile 12 to 18 months in the freight markets. This research identifies methods that supply chain leaders in logistics are using to secure capacity and constrain costs.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Constrained Transportation Capacity Creates a Market Where Carriers Pursue Better-Paying Freight
  • When Transportation Supply Is Constrained, Shippers Are Forced to Align Their Carrier Portfolio and Be More Collaborative With Carriers
  • Carriers Would Typically Add Capacity to Offset the Supply-Demand Imbalance but Are Challenged by the Driver Shortage

Gartner Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.