October 2017 | Digital Issue
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a company THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS • OctobER 2017 A FRESH LOOK AT INTERMODAL ALSO IN THIS ISSUE THE ART OF THE STEAL: HOW SAFE IS YOUR CARGO? HOW OCEAN ALLIANCES AFFECT YOUR FREIGHT AND CONTRACTS Got 3PL challenges? Get free expert solutions at inboundlogistics.com/3pl HUNDREDS OF LEADING BRANDS RELY ON OUR 90 YEARS OF LESS-THAN-TRUCKLOAD SHIPPING EXPERTISE. EVERY DAY. LET US SHOW YOU WHAT WE CAN DO FOR YOU. With industry-leading on-time delivery service and a low cargo claims ratio, Saia LTL Freight is committed to delivering the best possible customer experience. See how we’re making it happen at saia.com/leading. SAI_2312 FA Final 4Pub_InbLog.indd 1 5/22/17 3:28 PM Saia_ad0617.inddGot 3PL 1 challenges? Get free expert solutions at inboundlogistics.com/3pl 6/14/17 9:43 AM info snacks BITE SIZED SUPPLY CHAIN/LOGISTICS INFORMATION How to Engage a Remote Workforce • Host “Driver Appreciation” celebrations Stolen featuring food, beverages, activities, and pictures. Moments • Recognize employees throughout the year, highlighting accomplishments or acts that reflect Most cargo theft your company’s core values. occurs in parking lots • Provide personalized company-wide and garages, docks/wharfs, achievement recognition for employees meeting and freight terminals, the FBI reports. The company milestones. top types of stolen cargo are food and drink, • Highlight select success stories in both internal home and garden products, and electronics, communications and social media platforms. according to SensiGuard’s Cargo Theft report. Source: A. Duie Pyle (See The Art of the Steal, p. 60) What’s the Loads of Love Big Idea? “Especially in the 3PL 2 Great Pyramids of Giza. sector, we’re only as good 4 Big Bens. as those individuals loading 8 Statues of Liberty. the trucks day to day.” Lay them end to end, and you’ve got the Denis Reilly, President and equivalent length of the CMA CGM Theodore Roosevelt, the largest CEO, Kenco Logistics capacity vessel to ever transit the Panama Canal’s expanded locks. (See LeaderShip, p. 16) (See Panama Canal Expansion Hits the Big Time, p. 29) PER $171,340 YEAR That’s how much the average U.S. business loses through clunky payment practices such as chasing purchase order numbers, processing paper invoices, and responding to supplier inquiries, says Tungsten Network. (See Facts About Friction, p. 27) October 2017 • Inbound Logistics 1 Got 3PL challenges? Get free expert solutions at inboundlogistics.com/3pl a company THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS INTERMODAL BENEFITS COME INTO FOCUS THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS page 46 October 2017 • Vol. 37 • No. 10 INSIGHT INPRACTICE 8 CHECKING IN WITH THE EDITOR LEADERSHIP Denis Reilly: Finding the The future of supply chain Right Strategy for Each Situation 16 management is in good hands. Taking the helm of Kenco Logistics in 10 GOOD QUESTION June 2017 as president and CEO, Denis Reilly What is the best piece of leadership describes his approach and first few months advice you ever received? on the job. 12 DIALOG The ongoing conversation. READER PROFILE Tim O’brien: 14 10 TIPS Exuding Star Power 18 Reducing Tim O’Brien, senior director of supply chain at specialty e-commerce parcel costs with retailer Purchasing Power, builds partnerships that give his packaging customer-centric supply chain the juice. tweaks. 32 SPONSORED KNOWLEDGE BASE INDEPTH The Last Mile – History Repeats Itself as Supply Managers Face A Fresh Look Peak Season 32 At Intermodal 46 Hazmat 101: Exceeding Safety and Intermodal is attracting Compliance Standards 33 a growing number Florida Seaports Weather the of shippers, thanks to Storm and Thrive Through Meticulous Emergency Response tightening truck capacity, Preparedness 34 new service options, and infrastructure improvements. Inbound Logistics (ISSN 0888-8493, USPS 703990) is mailed monthly to approximately 60,000 business professionals who buy, specify, or recommend logistics technology, transportation, and related services, by Thomas Publishing Company LLC, 5 Penn Plaza, NY, NY 10001. José E. Andrade, chairman; Carl T. Holst-Knudsen, president. Periodicals postage paid at New York, NY, and additional mailing offices. All rights reserved. The publisher accepts no responsibility for the validity of claims of any products or services described. No part of this publication may be reproduced or transmitted in any form or by any electronic means, or stored in any information retrieval system, without permission from the publisher. POSTMASTER SEND ADDRESS CHANGES TO: Inbound Logistics, 5 Penn Plaza, New York, NY 10001 2 Inbound Logistics • October 2017 Got 3PL challenges? Get free expert solutions at inboundlogistics.com/3pl THESE DAYS, THE PACIFIC NORTHWEST AND TEXAS FEEL A WHOLE LOT CLOSER. 17BNSF-CP11730 Our intermodal service from the PNW to Texas is a day faster than any other provider. BNSF Railway, the largest intermodal carrier in the world, now offers intermodal service between Seattle/Portland and Dallas/Fort Worth. Comparable to single-driver, over-the-road trucking options, our Pacific Northwest-Texas service operates 5 days a week and is the fastest intermodal service in the industry. With access to the largest markets in Texas, it’s the most efficient way to ship throughout the Lone Star state. To see our Pacific Northwest-Texas schedules, go to BNSF.com/PNW-TX. 4110_17BNSF-CP11730_PNW_IL.indd 1 8/1/17 1:58 PM BNSF_ad0917.inddGot 3PL 1challenges? Get free expert solutions at inboundlogistics.com/3pl 9/5/17 10:24 AM a company THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS HOW OCEAN ALLIANCES AFFECT YOUR FREIGHT THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS page 52 October 2017 • Vol. 37 • No. 10 INSIGHT INDEPTH 36 E-COMMERCE Forming an Alliance with Ocean Shipping Leverage holiday fever with After the 2016 Hanjin Shipping bankruptcy, carriers banded together to collaborative supplier management. 52 form alliances. Today, these alliances dominate ocean cargo shipping. Here’s how they affect your shipments and contracts. SPONSORED Thought Leaders Supply chain leaders offer their perspectives on the logistics 58 challenges and opportunities impacting your business. 38 IT MATTERS Buying a cloud-based WMS? Get grounded. Cargo Security: The Art of the Steal Keeping your cargo safe from theft is a bigger challenge than you 40 VIEWPOINT 60 might think. Follow these steps to reduce the risks that make your Reliable rail service hinges on reform. company a target. 42 SPONSORED SMOOTH SAILINGS WWL explores the benefits of Roll-on Roll-off. 44 SPONSORED SOLVED Creating an omnichannel approach INFOCUS for a sporting goods maker. 21 NOTED 25 TRENDS Companies struggle to solve the urban logistics puzzle; manufacturers turn to Industrial IoT; clunky payment processes INFO cause supply chain friction. 64 WEB_CITE CITY 70 WHITEPAPER DIGEST 72 IN BRIEF 29 GLOBAL The Panama Canal expansion hits the big time; 76 CALENDAR retailers around the globe are slacking in the returns 77 CLASSIFIED department; global demand for temperature-controlled food heats up; unmanned surface and underwater 78 RESOURCE CENTER vessels to dominate maritime activity in Europe. 4 Inbound Logistics • October 2017 Got 3PL challenges? Get free expert solutions at inboundlogistics.com/3pl The average U.S. cargo theft is $233,000*. What’s more surprising? You’re probably not protected. Most companies assume it won’t happen to them. But in the U.S., more than 800 of them are proved wrong every year. And they’ll need a lot of new sales to cover just one bottom-line loss. Bad guys are plotting, but so are we. UPS Capital Insurance Agency, Inc. will customize a policy for your business and even cover losses to the full retail value. Better yet, with more than 100 years of supply chain expertise, we can help prevent them in the first place. Protect yourself. upscapital.com UPS Capital insurance Agency, Inc., and its licensed affiliates are wholly owned subsidiaries of UPS Capital Corporation. Insurance coverage may not be available in all jurisdictions. Insurance is underwritten by an authorized insurance company and issued through licensed insurance producers affiliated with UPS Capital Insurance Agency, Inc., and other affiliated insurance agencies. ©2016 United Parcel Service of America, Inc. UPS, UPS Capital, the UPS brandmark and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved. *FreightWatch International, Supply Chain Intelligence Center: Annual Cargo Theft Report 2014. UPSCapital_ad1017.inddGot 3PL challenges? 1 Get free expert solutions at inboundlogistics.com/3pl 10/5/17 2:10 PM www.inboundlogistics.com HOW SHIPPERS CAN PREPARE FOR THE ELD MANDATE bit.ly/ELDready QUICKBYTES ONLINE COMMENTARY LOGISTICS & SUPPLY CHAIN NEWS 3 Signs of a Siloed Supply Chain— For up-to-the-minute information, And How to Fix Them bit.ly/NOtosiloes bookmark the IL news page. Retail supply chains must be faster and more agile than ever. Siloed systems Enjoy opinions, commentary, and the latest news to help you bog down the process, causing customers to take their business elsewhere. stay on top of your game. Here are three signs of siloed supply chains and what to do about them. bit.ly/IL-news How Shippers Can Prepare WHITEPAPER DIGEST Looking for insight into supply For the ELD Mandate bit.ly/ELDready chain best practices and trends? The upcoming electronic logging device (ELD) mandate affects more than Want to review the latest logistics sector research? Our whitepaper just the carriers and owner/operators that will be directly responsible for database is packed with up-to-date using the devices in their trucks. Here’s how shippers should adjust their information on all aspects of truckload strategy. supply chain operations. bit.ly/IL_WPDigest Supply Chain Commentary: Leveraging WEB_CITE CITY® Mobile Commerce bit.ly/M_commerce The most comprehensive and Mobile commerce is expected to become a $250-billion market by 2020, clutter-free online directory of supply chain websites—organized with an increasing number of sales being done via smartphone apps.