Page 10 - Final_AS-REP Citi 2012 v5

Basic HTML Version

S ec t i on I I : T ran s portat i on S p end Managemen t Cha l l enge s i n t he Gov ernmen t S ec tor
Transportation Management in the Federal Government
| Best Practices Report: 2012
That isn’t to say audits aren’t happening—every agency that spoke with
American Shipper
is performing audits on every non-parcel shipment—
but the pure costs of transportation are often lumped into other
contract costs and fees.
Visibility is found in shipments that are managed, but two common
practices limit visibility to costs. These include when freight shipments
are not directly managed and transportation cost is considered part of
the fully landed costs, and second when the person or agency paying
for the freight either uses a non-transportation budget or a ledger code
that is not assigned to a transportation department.
Surprisingly, many federal agencies admit that resistance to change can
prevent progress, such as adopting newly available—and in some cases
free—systems or updating existing platforms. Resistance to change is
neither unique to the government sector nor private companies. This
tends to be the No. 1 inhibitor to technology adoption for both.
In the federal government, this resistance to change has fostered an
environment that generally lags private sector best practices, but for
some areas of the government this mindset is the norm. Agencies get
used to doing things a certain way, particularly those with a small
dedicated staff that is intimately familiar with a specific process. This
naturally leads to an aversion to change.
Lack of transportation-related education and training are other reasons
why some federal agencies have stayed away from adopting available
transportation and freight management systems. Simmering beneath
the surface may be the concern that automation and new procedures
may impact the jobs of those who are doing this work manually today.