Year 2006 Report on Trends and Issues in Logistics and Transportation.

Capgemini, Georgia Southern University, and the University of Tennessee, in partnership
with Oracle and Intel, present the 15th Annual Report On Trends and Issues on
Supply Chain, Logistics, and Transportation. This report builds on a 6-year effort
to review the major drivers of supply chain excellence.

As early as 2000, Capgemini advocated the value of transforming the organization
to a more adaptive, flexible entity. Never has the need been greater than in 2006
as the global supply chain pressures have created a set of business drivers and
competitive requirements that severely stretch the logistics and supply chain
operations capabilities of most enterprises. The challenges currently facing logistics,
transportation, and supply chain managers such as fuel surcharges, lack of transportation
capacity, increased variability in order-cash cycles, and on-time deliveries that
declined for every mode in 2006, are to a large extent out of their control.

The findings of the 2006 study indicate that much work remains to be done to
develop adaptive supply chains. The challenges require an examination of strategy
and planning to optimize the firm’s efforts. Execution alone won’t accomplish
the objective of maximizing effectiveness and efficiency in the supply chain.
Optimizing strategy, planning and execution will enable firms to transform themselves
from independent actors composed of independent parts and independent goals into
collaborative parties in pursuit of a fully consumer demand driven supply chain.