Profiling Best Practices: An Explanatory Analysis of Box-Plant Trucking Logistics in the Paper Industry
Madariaga, Jessica Frances
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Firms in many sectors have achieved significant economies by taking advantages of opportunities made possible by innovation in trucking logistics. Transportation usually represents the single most important component in trucking logistics costs for most firms. Transportation costs are particularly important to the corrugated container industry. Averaging an estimated 12 to 20% of total costs, transportation costs are a vital factor in the geographical scope of the markets producer can serve in addition to affecting the prices of production inputs and outputs. A natural question for the corrugated container industry is how improvements in the trucking logistics impacts a firms overall operating rate. The literature contains very little information on the relative costs and benefits of alternative logistic operations, including outsourcing, long term contracts, and private carrier. This research seeks to identify practices in trucking logistics that box plants might utilize to obtain materials and disburse products more economically.