Transportation Cost

Transportation is one of the most substantial parts of overall costs of the products/ services daily delivered to us by different organizations. From this point of view, the simplification of price formation in transportation sphere is very important for the price making, thus for the level of expense spent on food and living. Business development depends on transport cost accordingly to the sphere and products it is specialized in.

Some businesses, especially wooden business in developing countries experiences the problems of overall transportation costs, which make almost the 30% from overall market cost of their product.

Earlier, before the internet connection has approached our life, the coordination and business efficiency of transportation companies was limited to telephone lines thus tough informational lack was an issue of many transportation service providers.

Nowadays, many things are accessible and manageable on line, thus the powerful coordinating centers for transportation have appeared on the market. Transport is one of the fastest growing business sectors from IT solutions point of view.

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Many well known IT vendors offer the solutions for managing the movement of goods, for efficient logistics and warehousing accounts, for transportation companies and enterprises that produce and service vehicles.

Nowadays, with the IT-support for all operations at all levels, the use of specialized business-minded decisions, regardless of its magnitude, has an opportunity to improve quality and increase the profitability of transportation for any group of products or services. IT technical care described above brings transportation on a new quality level, at the same time reducing price accordingly to reduced men power used for the operations performance.

Topic #2: Utilities

Modern Utilities sphere experiences the hard pressure on its operations and processes from customers’ side as well as from the regulative authorities. As a result the sphere needs to enhance its efficiency at a reasonable price, and at the same time, to monitor the existing infrastructure functioning throughout the organizations. In order to align the successful working strategies, to underline the necessary goals and standards in daily activities of the Utilities companies, and to reach the desired level of system performance many consultancy firms and KPI’s earlier were employed.

The cost of their services was included to users’ bills, so all the structure produced inefficient and expensive services. Solutions for Utilities offered by such giants as Oracle (Oracle Utilities) gave the opportunity to allocate costs and investments effectively within a strict monitoring matrix. New opportunity of operational reports delivery gave a firm ground for complex decision making in Utilities sphere, on the top, communication between the shareholders was crucially improved.

Summarizing the benefits received by Utilities sphere through efficient IT innovations’ usage, there is a need to make a stress on competition developed between the services providers for the share in this business niche during the last years, however the improvement of organizational performance and transparency of processes remain the priority one criteria for IT solutions in Utilities industry. Topic #3: Gas Prices The statistics of growing prices for gas from the year 2004 isn’t a big surprise for any gas user nowadays.

One of the most efficient ways to defend the gas customers from gas price races is increasing fuel and gas economy standards. It is quite obvious than current economic situation will not hit the gas users as it has already done earlier in 1980s, but still the stable situation can be achieved via usage of latest technological innovations in the sphere. The IT innovations in automotive industry help to decrease the fuel usage up to 40%, it means that even under condition of economic recession the consumers can save up to 40% of their income spent on fuel and gas for their cars.

Other high technological improvements currently used in fuel and gas industry allows to monitor the gas transportation and distribution with high accuracy allowing to build a useful statistics of the most risky parts of industrial process in the sphere. It goes without saying that IT technologies used for monitoring and transparency of price formation, gas distribution and logistics play a crucial role for price making, so the overall cost of the gas as a product. References Allen, T. , & M. S. Morton, eds. ( 1994). Information Technology and the Corporations. New York: Oxford University Press