Peregrine Trucking Co
MGT 325 Transportation Management
William Barker
02/14/2012
Organizations are constantly being challenged to identify ways to reduce operating cost, increase equipment capacity and utilization. There are many variables in why we see continued increases. One of the major effects is raising fuel cost. Companies are constantly battling this variable. This is not the only issue facing companies today. But it is certainly a concerning one to companies who rely on fuel for their company to thrive. These challenges are aligned with rising material costs as well. The economics of transportation affects the lives of all U.S. citizens and citizens of other nations. The environmental and socially conscious groups are concerned with the impact pollution and carbon is having on the environment (Hardisty, P, Sivapalan, M, & Brooks. P, 2011). The demand for transportation is very critical and a pervasive element in our society, it also impacts every person directly or indirectly (Coyle, J. J, Novack, R. A, Gibson, B. J, & Bardi, E. J. (2011). If an organization is to survive in the today’s environment, it must create a business model that will address the pressures which continue to surface. The growing concern over the impact transportation is having on the environment is shifting beyond the idea of the greenhouse effect (Hardisty, P, Sivapalan, M, & Brooks. P, 2011). It has become such a major concern that the term green supply chain is being used all over the place (Coyle, J. J, Novack, R. A, Gibson, B. J, & Bardi, E. J. (2011). The Peregrine Trucking Company is no different than any other business facing this dilemma. Trying to find efficient and socially acceptable replacements that will yield cost reductions can be a major task. Transportation is such a vital part of the overall supply chain process that in order to remain competitive organizations must finds way to reduce operating