Page 15 - Final_AS-REP Citi 2012 v5

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S ec t i on 3 : Compar i son to Pr i vat e S ec tor Prac t i ce s
Transportation Management in the Federal Government
| Best Practices Report: 2012
The ultimate goal for the federal government should be to leverage its
size and budget to present a consolidated front to carriers.
research shows these practices can help companies rein in their
transport spend while they become a more desirable customer for
carriers. Beginning to achieve such an ambitious undertaking will
require agencies to look outside themselves for help with best practices
and search within the government to find areas of similar functionality.
The private sector, from this perspective, is well studied and presents
a strong contrast and comparison for the government sector, as well
as highlights some of the government’s strengths. One such strength
is freight payment, a common ground between all agencies due to the
auditing mandates. Since agencies are beginning to shine in this arena
already, it should serve as a consolidating force. Combining efforts on
a freight payment and auditing system should be used to create a
foundation for collaboration and addressing the issues called out above.
Section 3:
Comparison to Private
Sector Practices
American Shipper’s
research on transportation management and related
functions such as freight payment demonstrates a clear divide between
companies from different market segments or sizes. Simply put, best
practices are never universal. Accordingly, there will be a gap between
private and government sector shippers. However, our analysis of the
government sector shows there are a number of issues where these two
segments are on the same page. Perhaps more important are the issues
and trends where these two groups differ. If the government sector is
indeed 10 years behind the private sector as many agencies and carriers
report, certainly the agencies will want to understand these areas where
they can catch up.