Navy's less-than truckload cost factors
Long, Frank M.
Brown, David G.
Boger, Dan C.
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Historically the Navy's less-than-truckload transportation costs have been higher than DLA and the other Armed Services according to Military Transportation Management Command's (MTMC) Financial Information System (FINS) data. A sample of the FINS database was analyzed attempting to isolate factors causing the Navy's higher costs. Working with the FINS data to determine how the summarized data was prepared, numerous questions concerning input, procedures, and data manipulation led to questions of data validity. During the sample period, more than 50% of the Navy's LTL shipments were carried by QUICKTRANS, and not considered by the FINS data. Navy users of FINS data should be aware of its limitations. The FINS data indicated the Navy's higher LTL costs may be attributed to a higher percentage of ammunition and explosive shipments than the other services. Additionally, it was found that the Navy utilized the guaranteed traffic program far less frequently than DLA. Factors including weight, distance, and rates were also explored.