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Title: Transportation Deregulation: Searching For The Gold
Author: Philip G. Williams
Source: American Gas Association 1988
Year Published: 1988
Abstract: A recent study cites transportation deregulation as one of the opportunities seized by purchasing professionals to help them assume an increased role in the corporate structure. Unfortunately, utilities continue to deregulate transportation responsibility to their vendors. Vendors dictate the terms of sale and select the carriers. Transportation costs are not usually a separate item in the bidevaluation procedure. Utilities are unable to predetermine freight costs and are generally unable to compare quoted freight charges either between vendors or against a known standard. Vendors view transportation as a profit center and are not obligated to pass negotiated rates and discounts on to the utility. Utilities must take charge of transportation rates and carrier selection. The potential savings are in the hundreds of thousands of dollars.

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