By Nancy Y. Moore, Mary E. Chenoweth, Elaine Reardon, Clifford A Grammich, Arthur M Bullock, Judith D M
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Additional info for Estimating DoD Transportation Spending: Analyses of Contract and Payment Transactions
Sample text
This prevents replacement of poor performers, rewarding of good performers, and identification of new suppliers. We have noted how records on claim settlement can provide some information on performance, 8 Leenders et al. (2002, p. 422) note, “Within 10 years of passage of the Motor Carrier Act of 1980, the number of carriers had more than doubled. The shakeout in the trucking industry continues into the early twenty-first century with bankruptcies and the consolidation of carriers. , LTL shipping, are, by their nature, designed to serve low and variable demand.
This helped us to learn the importance of DoD business to its leading transportation suppliers and to determine whether it is a significant or minor customer for these firms. A complete spend analysis would go beyond the data described here. Such an analysis would examine more specific purchases within transportation Product and Service Codes (PSCs). It would link individual shipments to specific modes, routes, and contracts and tenders and note special shipping requirements such as those for refrigeration or movement of hazardous materials and for time of year.
In the next chapter, we review broad trends in the transportation industry. Although this cannot suffice for the more detailed research described previously, it should provide the reader with some helpful background information in interpreting our similarly broad findings. CHAPTER THREE Changes in the Transportation Services Market Data on changes in the transportation service market vary by specific industry. S. Census Bureau offers annual data on revenues for selected transportation industries. We use these to examine recent changes in the industries of truck transportation (North American Industry Classification System, or NAICS, three-digit code 484), couriers and messengers (NAICS 492), and warehousing and storage (NAICS 493).