Transportation Cost Analysis

Understanding fully the impact of overall transportation costs is of critical importance to food and other manufacuring companies. To assist in having the most comprehensive data available, we utilize tranportation companies in providing the data and alternatives needed to make the right decision for the location of new facilities.

Utilizing regional and national logistic companies, we obtain the most comprehensive transportation cost data available to assist in determining which locations will have the lowest long-term transportation costs for our clients. Data for both inbound and outbound freight costs, the availability of rail services, the proximity and capacity of ports are all factors in the detailed studies which we solicit on our clients' behalf. 

Increasingly, it has been our expereince that as a food company grows nationally, its distribution and transportation costs can begin to grow expotentially. Drawing on the experience of other national food companies, we compare alternative strategies as to possible locations for a second (or third) manufacturing plant to service different regions of the country. 

We have included excerpts from a Transportation Cost Analyis which was prepared for a West Coast company which we were advising, that was exploring the savings that could be achieved by locating a second food processing facility in the Eastern United States. From this study, the conclusion was reached that for a ten year period, distribution and shipping savings in excess of $8,000,000 could be achieved with opening an East Coast manufacturing plant in the best possible lcoation as indicated by the Transportation Cost Analysis.

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