ANNUAL TRUCKING ISSUETOP 100 MOTOR CARRIERS 2007 Deliver the Goods

www.inboundlogistics.com THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS • SEPTEMBER 2007

ANNUAL TRUCKING ISSUETOP 100 MOTOR CARRIERS 2007 Deliver the goods.

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THE MAGAZINE FOR DEMAND DRIVEN LOGISTICS

INBOUND TRAFFIC CONTROL September 2007 • Vol. 27 • No. 9 page 40 INSIGHT INPRACTICE 6 CHECKING IN The time is right to expand your  READER PROFILE Jim Calo: Under Armour’s Over Achiever inbound logistics efforts, and your Can a certifi ed public accountant really be a good fi t as a supply chain carriers can help. expert? 8 DIALOG Reader input and questions on  safety, global trends, and more. LIT TOOLKIT Targeting Replenishment New York electronic components distributor Arrow Electronics takes 28 CARRIER’S CORNER aim at higher customer service levels and scores a bulls-eye with its Helping good carriers fl ourish benefi ts you directly. Why don’t Customer Automated Replenishment System. more shippers keep this in mind when dealing with carriers?  DC SOLUTIONS Remembering The Alamo Group’s 33 IT MATTERS Inventory Tracking Success Standardizing your data Solid growth and a successful business model strained Alamo’s platform goes a long way toward implementing global SCM software distribution operations. Solution? Implement an automated, and strategies. enterprise-visible inventory tracking system. 34 VIEWPOINT DC SOLUTIONS North American retailers should page 89 take a peek across the pond for marketing, labor, and safety tips. 36 3PL LINE Anxiety over low-cost foreign competition motivates U.S. manufacturers to outsource, even if they’re not entirely ready. INFO 66 TRUCKING RFP 107 WEB_CITE CITY 118 CALENDAR 120 CLASSIFIED 122 RESOURCE CENTER

2 Inbound Logistics • September 2007

THE MAGAZINE FOR DEMAND DRIVEN LOGISTICS

September 2007 • Vol. 27 • No. 9

INBRIEF INDEPTH 12 10 TIPS Choosing DC locations.  Inbound Trafﬁ c Control 15 TRENDS Practicing inbound shipment control used to mean ﬂ ying under the radar Ports push U.S. economy…SMBs screen more often than not. Today, companies ranging in size from Pepsico express top concerns…Short sea to Pamida track every inbound blip on the screen. shipping questions and answers… Event management tools drive  next round of SCM advances Specialized Carriers: And Now for Something 22 GLOBAL LOGISTICS Completely Different Talking the talk in global com- Special services, special conditions, and special cargo all call for something, merce…UAE grows as regional well, special and different. Specialized carriers to the rescue! logistics hub…Picks and pans in EU contract logistics…RFID potential  grows in China. EXCLUSIVE RESEARCH Trucking Perspectives 2007 Our annual Motor Freight Market Insight Survey provides an in-depth 98 TECH UPDATE look at the trucking sector. Growth areas and challenges are addressed 102 NEW SERVICES by Inbound Logistics readers and more than 100 motor carriers. 128 THE LAST MILE: IMPORT SAFETY  Top 100 Motor Carriers Based on reader needs, Inbound Logistics offers its annual list of the Top 100 Motor Carriers. This resource gives you the decision support you need to maximize your carrier capabilities and relationships.

 SPECIAL ADVERTISING SUPPLEMENT Go Figure! Freight Payment Services Add Up Shippers say it costs them about $10 per invoice to process a freight payment transaction internally. THE LAST MILE Freight payment companies do it page 128 for one-tenth that amount. Here’s a compelling case for outsourcing freight bill payment and related management services.

4 Inbound Logistics • September 2007

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Vol. 27, No.9 September 2007 THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS www.inboundlogistics.com STAFF

PUBLISHER Keith G. Biondo by Keith Biondo | Publisher [email protected] EDITOR Felecia J. Stratton [email protected] SENIOR ASSOCIATE EDITOR Joseph O’Reilly CONTRIBUTING EDITORS Merrill Douglas Managing Inbound: John Edwards Lisa Harrington Amanda Loudin The Time Is Right Amy Roach Partridge Deborah Ruriani ost readers of this magazine know the value of managing the inbound Lisa Terry fl ow. “But most companies would readily admit they have less con- CREATIVE DIRECTOR Michael Murphy [email protected] trol over inbound shipments than outbound shipments,” notes Dan M PRODUCTION/DESIGN ASSISTANT Shawn Kelloway Cushman, chief marketing offi cer, Werner Enterprises. [email protected] That is changing, according to readers interviewed for this annual trucking PUBLICATION MANAGER Sonia Casiano issue. By managing inbound, companies aim to speed and reduce inventory, [email protected] better align demand signals to supply, reduce touches and related costs, and CIRCULATION DIRECTOR Carolyn Smolin combine inbound and outbound shipments with fewer carriers to gain better pricing and service. SALES OFFICES The capacity crunch of the past few years has added a new dimension to man- NORTHEAST: Keith Biondo (212) 629-1560 • FAX: (212) 629-1565 aging inbound – fi nding space. “When capacity was very tight, our customers [email protected]

said, ‘Vendors use multiple carriers to ship freight to us, and we don’t capture it. WEST/MIDWEST/SOUTHWEST: Harold L. Leddy If we got involved in inbound routing, we could capture that capacity demand (847) 446-8764 • FAX: (847) 446-7985 and optimize it across all our vendors. We could eliminate deadhead miles or [email protected] half-fi lled trailers, and everyone wins,’” says Werner’s Jim Schelble. Marshall Leddy (763) 416-1980 • FAX: (763) 201-4010 Managing the inbound fl ow gives you more touch points to work with your [email protected] carrier to help rationalize equipment and driver use – not only to fi nd capac- MIDWEST/ECONOMIC DEVELOPMENT: Jim Armstrong ity, but to share in the fi nancial rewards that optimization creates. Besides (815) 334-9945 • FAX: (815) 334-1920 helping carriers optimize, you can also boost their operating ratio by taking [email protected] away freight in lanes that are not profi table, and matching that freight with SOUTHEAST: Gordon H. Harper carriers who are looking for that business. Having the “big picture” of your (404) 350-0057 • FAX: (404) 355-2036 [email protected] inbound/outbound fl ow creates more opportunities for “freight engineering” with your carrier. MOBILE, AL: Peter Muller (251) 343-9308 • FAX: (251) 343-9308 Now that the capacity crunch has eased in some areas, many have the incli- [email protected]

nation to revert back to buying on price because of the so-called “soft market.” SPECIAL ACCOUNTS: Joseph T. Murphy Jr. “When capacity was tight, it was all about partnerships. Now it’s all about (203) 254-9595 • FAX: (203) 259-4447 price,” says the president of one mid-sized carrier I recently spoke with. “What [email protected] happened to all those partnerships?” SALES MANAGER: Rachael Sprinz (212) 629-1560 • FAX: (212) 629-1565 While it is true that having an abundance of capacity keeps rates lower, and [email protected] that gives some more inertia to doing business on price only, having plenty FREE SUBSCRIPTIONS of capacity gives you an opportunity to do something else, too – fi nally com- www.inboundlogistics.com/free mit to fully gaining control of your inbound fl ow. Here’s why. When capacity was tight your management bandwidth was Inbound Logistics welcomes comments and submissions. Contact us at 5 Penn Plaza, NY, NY 10001, (212) 629-1560, most likely tied up with getting capacity that you really needed. Some of that Fax (212) 629-1565, e-mail: [email protected]. management mind share can now be focused on the complex task of unbun- For advertising, reprint, or subscription information, call (212) 629-1560, or e-mail [email protected]. Inbound dling all the transportation costs from your inbound shipments. Logistics is distributed without cost to those qualifi ed in North America. Interested readers must complete and return the Here’s another reason. When capacity is tight you have fewer choices, or qualifi cation card published in this issue, or may subscribe at least a more diffi cult task in fi nding space, making a new inbound initia- online at www.inboundlogistics.com/free. Subscription price to others: in North America: $95 per year. Foreign subscriptions: tive more complex. Having beaucoup capacity gives you greater fl exibility to $129. Single copy price: No. Amer. $10, foreign $12, back issues really rock . The time is right to manage inbound. ■ $15. Periodicals postage paid at New York, NY, and additional mailing offi ces.

6 Inbound Logistics • September 2007 1 pallet of vacuum pumps from 250 MP3 Springﬁ eld, MO. players from Delivery Raleigh, NC. by 10:15 a.m. Delivery by 9:45 a.m.

24 tractor tires 2,000 from Moline, IL. DVDs from Delivery Huntsville, AL. by 10:35 a.m. Delivery by 500 laptops 9:50 a.m. from Shanghai, China. Delivery by 11:30 a.m.

4,000 candles from Guadalajara, Mexico. Delivery by 1 aircraft 9:22 a.m. engine from Los Angeles, CA. Delivery by 9:45 a.m.

10 rolls of carpet from New York, NY. 5 microscopes Delivery by from Denver, CO. 11:15 a.m. Delivery by 10:25 a.m.

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www.baxglobal.com 1 800 CALL BAX DIALOG LETTERS TO THE EDITOR

value to enterprising companies. Hiding in Plain Sight English is the common differentiator, While reading John Edwards’ particularly in logistics, and as such, excellent and informative article enterprises will migrate toward coun- Go Ahead…Pile It On (July 2007), tries that require as little cultural the accompanying picture on page assimilation as possible. 76 caught my eye. As a safety and Another important part of this quotient security professional, I immediately is the role of government in stewarding noted that access to the only visible progressive or regressive trade policies fi re extinguisher is blocked, and the and economic reforms. Governments dock door is not closed completely. such as China are really leveraging the With the level of oversight most organizations experience from OSHA, FDA, power of their people to drive change DOT, etc., these situations can easily lead to fi nes, penalties, or worse. while others, notably France, are losing Yes, these are minor infractions, and easy to overlook in an environment such foreign investment because their people as pictured where everything appears neat and organized; but it does illustrate that wield too much power dictating liberal in every organization there is always potential for improvement. Opportunities to labor laws. address issues that add to our employees’ and organizations’ well-being – as well So in calculating “people power,” as the bottom line – are often hiding in plain sight. Inbound Logistics takes into consideration Matt Prowse, United Natural Foods Inc. language and cultural commonalities, as well as the development of logistics and Tipping Point? and basis for this measure. supply chain education and government Chris Robson, via email leadership necessary to support grass- I was really impressed by the 2007 roots logistics growth. Global Logistics Guide (March 2007) and Joseph O’Reilly replies: The third I think it may prove useful for a piece component of the TIP Quotient – People of charity work I am doing, which Power – is arguably the most subjective Dean’s List involves assessing the distribution chal- given the lack of comprehensive data We just received the annual 3PL lenge facing a distributor of a vaccine that benchmarks labor productivity on a issue, which is an excellent resource. in the developing world. global scale. With respect to Keith Biondo’s on-tar- In seeking to grasp the TIP Quotient, One way to approach this is by looking get Checking In, I would add that the I understand the source of data for at cultural variants. For example, a U.S. two most important “engines” driving Transportation Infrastructure and company that is looking to set up a new 3PLs are technology and globalization. IT Competency. However, I am hav- distribution facility will fi nd the path of Unless someone believes that these ing trouble understanding the basis or least resistance in countries that share “engines” will signifi cantly slow down source of data for “People Power: The similar customs and language. English- or stop, then 3PLs of all tiers will con- strength and expertise of homegrown speaking countries, or those that have tinue to grow exponentially. logistics talent.” a diverse cultural base and/or an estab- Frank R. Breslin, I would appreciate any further guid- lished logistics education curriculum Dean ance you could give me on the source in their universities, present an added Institute of Logistical Management

8 Inbound Logistics • September 2007 There’s something about fragile shipments that fate ﬁ nds extra tempting.

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Under Armour’s Over Achiever

ctive people look to Under One challenge Calo faces at Under Armour’s clothing, footwear, Armour stems from the fact that most A and sports gear to help them of its clothing – known for managing stay at the top of their game. Since last body temperature and wicking away October, Jim Calo has been giving Under moisture – consists of man-made fab- Armour a similar boost. As the Baltimore firm’s first chief supply chain officer, The Big Questions Calo spends much of his time with the operations team, scouting for processes What do you do when you’re that don’t perform as well as they could not at work? and turning them into winners. Whenever I can, I spend time with Take the garment manufacturer who my wife and kids. needed a 98-day lead time to deliver Ideal dinner companion? product. “We wanted to reduce that to Apart from the family members and LIFETIME STATS 60 days, then 45, and ultimately 30,” friends who are my true ideal dinner Calo says. So early this year, he and his companions, I’d say Bobby Orr. It’s NAME: Jim Calo team started placing orders with that not just because he played for the Boston Bruins, but because he had a TITLE: supplier weekly instead of monthly. Chief supply chain offi cer, reputation—and still does in Boston— since 2006 With smaller, more frequent orders, for being an outstanding guy. He COMPANY: Under Armour, Baltimore the garment maker – and, in turn, the is a true team player and a humble fabric mills and trim manufacturers he individual, both great qualities. PREVIOUS Certifi ed public accountant, EXPERIENCE: relies on – can deal more effi ciently with troubled company consultant, What’s in your briefcase? customer demand fl uctuations. “It’s eas- A laptop cord; reading material; Coopers and Lybrand; divisional ier for them to make up for a 10-percent controller, vice president family photos; DVDs of our sales swing on a small number,” Calo says. presentation; my passport; Under of operations, Polo Ralph Calo started his career as an accoun- Armour catalogs, because someone Lauren; senior vice president tant, but an early job at a Polo Ralph always asks for one; a calculator; of operations, Nautica Lauren factory in Lawrence, Mass., new Under Armour sunglasses; and Enterprises, VF Corporation, an electrical adaptor for travel. Sportswear Coalition steered him toward a career in supply chain management. Although his man- Company motto? EDUCATION: AA in management, 1984, date was to manage the books, when he “Universal guarantee of perform- and BA in accountancy, 1984, expressed a desire to get more involved ance.” Universal means we don’t Bentley College; MBA, Carnegie in the business, the facility’s general make non-performance products. Mellon University, 1989 Every Under Armour product does manager was grateful for the help. something for you; it makes you “He let me work with him in dif- better. ferent areas,” Calo says. “I was given an opportunity to support customer If you didn’t work in supply chain management, what would service, IT, shipping, and the fab- be your dream job? ric department.” When Polo Ralph I’d be a professional athlete. It could Lauren closed that plant, Calo moved be in any sport—baseball, hockey, to Greensboro, N.C., to support one of football, golf. I like them all. its distribution centers.

10 Inbound Logistics • September 2007 rics. Import fees on these products seeks more transparency between the “Changes to the specs are highlighted are higher than on the largely cot- company and its suppliers. Calo’s plan as soon as they are made,” Calo says. ton apparel lines sold by Calo’s past is for Under Armour to commit to pro- “So the manufacturer doesn’t have to employers, Polo Ralph Lauren and viding a certain volume of business to go through the whole package again to Nautica/VF Corp. a supplier. In exchange, the supplier determine what might have changed.” “On some products, the duty runs as would calculate its prices based on Calo is excited by the kind of part- high as 32 percent,” Calo says. So an mutually agreed metrics, without a lot nerships companies can attain through item that costs $3 to manufacture in Asia of negotiation. greater openness, “where you extend actually costs Under Armour $4 with the As one step toward greater transpar- your company into your suppliers’ duty included. One possible solution is ency, Under Armour is developing a operations,” he says. “Suppliers, in “bringing products closer to the United Web-based system to provide complete turn, would forge similar bonds with States under the CAFTA and NAFTA trea- technical speciﬁ cations for products, their own vendors. ties, which can reduce costs,” he says. so suppliers can get all the informa- “This network is set up as though As he works to fine-tune Under tion they need to develop bids without your company owns it, but it doesn’t,” Armour’s supply chain operations, Calo exchanging myriad e-mails. he explains. “It’s virtually vertical.” ■

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Selecting a DC Location

ith the growth in global trade, developers, banks, and real estate ser- Thoroughly examine the region’s deciding where to locate your vice companies can guide you to the 7 economic stability. Choosing a W distribution centers is an right site selection consultant. state that is not economically sta- increasingly challenging process. Dr. ble could impact your entire operation. Jeffrey Karrenbauer, president and co- Know the labor force in a potential You may not be able to purchase the founder of INSIGHT Inc., offers these 4 location. Is there suffi cient labor? goods and services to operate that facil- tips for selecting the best sites. Don’t just opt for cheap labor; expe- ity properly. rienced labor is more important. Check Evaluate your supply chain network how wage structures compare among Examine the infrastructure carefully. 1 and create a plan. Look at what you various locales. You want this workforce 8 Adequate and reliable transporta- are doing now and where you want to have a good work ethic, and to wel- tion resources, along with good to be in fi ve, 10, or 20 years. Evaluate come learning and training. highways, airports, and seaports, ensure alternative operating strategies and that products can be delivered to meet their associated impact. Create a stra- Will executives relocate? Consider customer service requirements. tegic business plan and consider land 5 the desirability of housing and the requirements: will you need to expand environment around the facility Select close proximity to your cus- and do you have enough land? location. Will your executives want to 9 tomers and/or suppliers whenever relocate there? Investigate with a good possible. Transportation costs are Understand your site requirements real estate agent. 50 to 60 percent of total distribution 2 and throughput volumes. Prepare costs, so factor in the additional trans- accurate estimates of your inbound Consider tax advantages. You want portation expenses you’ll incur if your and outbound shipments, number of 6 favorable business tax advantages new facility is farther away from those SKUs, peak inventory levels, value- for foreign investments at the state in your value chain. Consider purchas- added processes, and reverse logistics and local government levels within ing a software package to examine requirements. Determine how much the United States. You also want to alternate scenarios. inventory you need to carry to get minimize import taxes for raw mate- products to market quickly. rials and expensive capital equipment, Employ a real estate attorney. as well as export duties. The tax con- 10 Once you identify and agree Consider hiring a consultant. If you sequences of a site decision, and the on the desired location, hire 3 don’t have the internal resources fi nancial incentives proffered by state an experienced real estate attorney to or qualifi cations to tackle site selec- or local governments, might factor establish a suitable acquisition of the tion alone, hire an expert. The local into the equation, perhaps even infl u- land, building and equipment, and draft Chamber of Commerce, industrial park encing how the deal is fi nanced. the appropriate contracts. ■

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SMALL PACKAGE PALLET DEDICATED ON-DEMAND HOME DELIVERY SUPPLY CHAIN SOLUTIONS TRENDS NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS by Amy Roach Partridge

Hot Topic Q&A: Short-Sea Shipping Begins to Make Waves ong adopted by Europe, short-sea of Charlotte, N.C.-based ocean carrier commercially viable. As currently con- Lshipping – deﬁ ned as the shipping Horizon Lines. Raymond, also a board structed, the Harbor Maintenance Tax of cargo for moderately short distances member of non-profit industry group (HMT) – a federal tax imposed on ship- or to nearby coastal ports – is making The Transportation Institute, has been pers based on the value of goods being waves in North America as a viable an outspoken short-sea shipping advo- shipped through ports – serves as a clear alternative to ground and air transpor- cate since 2003. disincentive for a coastwise service tation. As highways and airports grow IL: Why is now a good time for com- closer to bursting at the seams, short- panies to seriously consider short-sea sea vessels, which typically follow a shipping as a viable option? coastline, cross a channel, or travel an CR: Over the next decade, our nation inland body of water, offer a less-pop- faces a near doubling of container ulated route for getting goods to the imports to more than 30 million TEUs. point of consumption. It is impractical to consider building Short-sea shipping may also help hur- our way out of the looming inland dle looming congestion and capacity infrastructure crisis, a move that would issues. By 2020, domestic freight vol- require thousands of costly miles of umes will total 22.5 billion tons – almost both highway and rail track construc- a 10-million ton increase from 1998, tion. Instead, using existing waterways, according to a study done by the Freight short-sea shipping will improve the Analysis Framework – and current rail- flow of trade and help alleviate con- road and highway capacity will become gested intermodal gateways. The nation inadequate to handle such volume. also gains an environmental benefit Short-sea shipping boasts the ability from taking trucks off congested high- to reduce overall transportation costs ways, and using ocean transportation, and road congestion, increase national which continues to be one of the most transportation capacity, lower energy cost-effective and environmentally consumption per ton of freight trans- friendly transport modes. ported, and maintain a more positive IL: Why aren’t more companies explor- environmental impact in terms of pol- ing short-sea shipping? lution and safety, say supporters. Why, CR: We have some leg- then, hasn’t this seemingly no-brainer islative hurdles to idea gained more traction? cross to make Inbound Logistics recently discussed deployment of a the obstacles and payoffs of short-sea short-sea service shipping with Chuck Raymond, CEO for containers

Chuck Raymond, CEO of Horizon Lines, remains a devoted proponent of short-sea shipping.

September 2007 • Inbound Logistics 15 TRENDS NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS ‹ CONTINUED FROM PAGE 15 because it means cargo arriving in the examples of what even a half-day delay United States incurs a double taxation means to margins and the bottom line hit. HMT creates a competitive dis- when moving raw materials to fi nished THE CHAIN advantage for Jones Act operations as products. And, these impacts trickle PEOPLE ON THE MOVE compared to truck and rail cargo move- down to both investors and consumers. UP ments. I believe Congress understands The nation also gains from short-sea Matthew Schron has been promoted to this issue and will work on repealing shipping’s added safety, security, and general manager of Jergens Industrial HMT this year. environmental impacts, as well as Supply, a division of Jergens Inc., and IL: What other obstacles impede short- avoiding the tax implication Americans Ohio’s largest stocking distributor of sea shipping’s popularity? How can com- would face in absorbing the levels of metalworking products. In his new panies overcome them? new highway construction necessary position, Schron, who has been with CR: We need to create an amendment to handle the projected volumes. Jergens for 14 years, is responsible for to the HMT exempting intercoastal IL: How does inland short-sea shipping the company’s entire business opera- shipments. With immediate changes to compare with short-sea shipping up and tions. ■ Warner Bros. Interactive the HMT this year, we could begin to down the coast? What are some of the Entertainment has promoted Ron test the East Coast/Gulf Coast short-sea challenges? Scott (pictured) to senior vice president, shipping market as early as next year. CR: Each program has its own set worldwide sales and distri- The Title XI loan guarantee program is of challenges. The inland short-sea bution. In his new role, Scott critical to the development of a short- shipping model works well for bulk focuses on building a state- sea shipping solution for the United and barge operations. Shipping ocean of-the-art, direct-to-retail States and all Jones Act trades. We need containers via inland waterways, how- games business for Warner to make the program user-friendly to ever, does present some challenges Bros. Home Entertainment in all major global markets. promote the growth and moderniza- with cranes and other infrastructure He is also responsible for engaging and tion of the U.S. merchant marine and required at interior points to help facil- managing the company’s distribution U.S. shipyards. itate efficient transfers. The coastal partners. ■ Among the senior manage- IL: Who becomes the big winner if model claims the benefi t of existing ment changes at Spectrum Brands Inc., short-sea shipping takes off? infrastructure and port conditions; Andreas Rouve has been appointed CR: The nation as a whole will be allowing for deep-water ports to shut- managing director, Europe. Rouve the big winner. Congested ports and tle containers to a large number of assumes responsibility for supply chain intermodal gateways add cost: any more shallow-water ports using exist- management, sales, and marketing for logistics professional can provide ing assets. — Mark Rowan batteries and personal care in that region, in addition to his current role as the division’s senior vice president and chief IT Vendors Face New Challenges financial officer. ■ Scot M. McLeod, ompanies’ desire to better manage supply chain events and make informed currently vice president operations for Clogistics and transportation decisions based on reliable data has led to an Quidel Corporation, a leading provider of increase in the global supply chain management (SCM) software and services mar- rapid point-of-care diagnostic tests, has kets. New analysis from consulting fi rm Frost & Sullivan reveals that revenues in been promoted to senior vice president, this market totaled $6.5 billion in 2006, and are estimated to reach $11.64 billion operations. McLeod has served as vice by 2013. president, operations for the company “The growing need to provide suppliers and management with early warn- since 2001, having responsibility for the ings based on data obtained from internal enterprise resource planning and San Diego manufacturing facility’s perfor- other supply chain management systems acts as a major driver for the uptake of mance. ■ InnerWorkings Inc., a leading supply chain solutions,” notes Dushyant Mehra, Frost & Sullivan research provider of print procurement solutions, has named Brian Carlson vice president analyst and author of the report, World Supply Chain Management Software and of procurement. Carlson is responsible for Services Markets. managing the company’s sourcing efforts Event management and performance management applications are emerging and supply chain management. Most as competitive tools because they help companies manage highly complex supply recently, he served as senior manager in chains by reducing lead time and cost, explains Mehra. As a result, applications charge of A.T. Kearney’s Print Category that help coordinate supply chain activities will likely play a key role in the near Solutions group, where he helped clients future. These applications help companies detect, diagnose, and resolve perfor- implement process improvements and mance glitches before they become expensive problems. cost-saving measures. This increasing need for integrated solutions, however, represents a key challenge

16 Inbound Logistics • September 2007 YOU NEED TO KEEP STORE SHELVES STOCKED.

YOU NEED RUSS KRUEGER. When does Agility’s Russ Krueger consider a job done? When his virtual distribution center in Seattle expedites the processing of video-game consoles from Japan? When his Direct-to-Store program substantially reduces retailer stock outs? For Russ, and 20,000 more Agility employees in over 100 countries around the world, success isn’t measured in boxes loaded or shipments tracked. Success occurs when our partners achieve their goals. It’s an intimate approach to logistics that demands individual attention and personal ownership. It’s how Russ Krueger brings Agility to retail customers.

Russ Krueger Agility Sr. VP, Distribution Services

agilitylogistics.com TRENDS NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS ‹ CONTINUED FROM PAGE 16 for supply chain vendors. Due to rising chain visibility, says Mehra. Because them a vital part of our nation’s eco- supply chain complexities, the supply transparency of goods in the supply nomic fabric.” chain planning, execution, and coor- chain represents a critical factor in The study combined 2006 U.S. port dination components need to function maintaining optimal inventory levels, cargo statistics with thousands of port- together to achieve supply chain opti- supply chain visibility continues to sector interviews to examine aspects of mization, the report shows. gain signifi cance. port life ranging from jobs and wages Supply chain vendors will be Likewise, customization is slowly to business and tax revenues. Here are required to pay greater attention to gaining pace due to increasing demand some interesting fi ndings: product customization and supply from cost-conscious customers. ■ Of the more than 8.3 million Americans working for ports and port-related industries in 2006, nearly 7 million U.S. Ports Rev Up The Economy were employed by fi rms involved in han- f you’ve been to a U.S. port recently, you undoubtedly witnessed a place of high dling imports/exports, such as retailers, Iactivity. Thanks to the boom in imports from overseas manufacturing and sourcing, U.S. ports are posting tremendous growth, and having a lasting impact Ports Generate on the national economy. Last year, U.S. deep-draft seaports and seaport-related Economic Impact businesses generated approximately 8.4 million American jobs and added nearly JOBS $2 trillion to the economy (see chart, right), fi nds a new study conducted for The Port Sector American Association of Port Authorities (AAPA) by Martin Associates, a Lancaster, Direct 507,448 Pa.-based business consulting service. Induced 630,913 “The tremendous growth in overseas trade volumes moving through our ports in Indirect 306,289 the past decade has been a huge boon to the American economy,” says Kurt Nagle, Subtotal: 1,444,650 president and chief executive offi cer for the AAPA. “The jobs these imports and Importers/Exporters exports create are spread throughout the country, not just in port cities, making Direct, Induced/Indirect 6,952,651 Total Related Jobs: 8,397,301

WAGES / SALARIES (Billions) Port Sector Direct $25.30 Induced/Consumption $69.50 Indirect $12.30 Subtotal: $107.10 Importers/Exporters Direct/Indirect/Induced $207.40 Total: $314.50

ECONOMIC OUTPUT (Billions) Port Sector Direct $71.10 Local Purchases $26.30 Subtotal: $97.50 Importers/Exporters Direct/Induced/Indirect $1,879.00 Total: $1,976.40

TAXES (Billions) Port Sector Direct $8.30 Induced/Indirect $26.80 Subtotal: $35.00 Importers/Exporters Direct/Induced/Indirect $67.80 Total: $102.80 **Totals may not add due to rounding

18 Inbound Logistics • September 2007 YOU NAME IT

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SUPPLY CHAIN, WAREHOUSING & TRANSPORTATION SOLUTIONS

TRENDS NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS ‹ CONTINUED FROM PAGE 18 wholesalers, manufacturers, distributors, and logistics companies. ■ Businesses providing goods and services to U.S. seaports directly and indi- Logistics rectly paid $314.5 billion in total wages and salaries. Of this total, $207.4 billion came directly from businesses involved in handling international waterborne Help Wanted commerce. And, port-sector businesses generated a high rate of economic out- xperienced logistics professionals put–business revenues and the value of the goods and services they provided Elooking for jobs are in luck – they totaled nearly $2 trillion in 2006. are very much in demand these days, ■ In 2006, 507,448 Americans held jobs such as terminal operators, longshore- reports Don Riemenschneider, senior men, freight forwarders, steamship agents, ship pilots, tug and towboat operators, recruiter for executive search firm chandlers, and warehousemen, as well as jobs in the dredging, marine construc- Lucas Group, Supply Chain & Logistics. tion, ship repair, trucking, and railroad industries. These direct port-sector jobs Because supply chain and logistics has supported another 630,913 induced jobs due to purchases of food, housing, trans- become a more highly recognized and portation, apparel, medical, and entertainment services. implemented function in recent years, ■ Port-sector workers earn, on average, about $50,000 a year–$13,000 more per these positions are experiencing record year than the National Average Wage Index, as computed by the Social Security growth across nearly every industry, Administration. fi nds Lucas Group. “Companies are beginning to realize the importance and necessity of estab- lishing some version of supply chain Small Companies, Big Concerns organization,” says Riemenschneider. hat are small distribution and wholesaling companies worried about today? “Logistics positions, such as warehousing, WTaxes, the general state of the economy, and energy/fuel costs were their distribution, and transportation no lon- three leading concerns during the second quarter of 2007, according to the latest ger suffi ce alone. The interlink between Small Business Research Board (SBRB) study. all facets of the supply chain are just Not surprisingly, foreign competition also ranked high on the list for the own- as important, from the product devel- ers of distribution and wholesaling businesses who responded to the nationwide opment and procurement functions SBRB poll, which was co-sponsored by small and medium-size business consultancy through the delivery of the product to International Profi t Associates (IPA). the end user. As a result, certain posi- The quarterly poll also measures Top 5 Business tions are experiencing faster growth.” small distributor and wholesaler inter- As with nearly all things supply est in expanding operations over the Concerns, Q2 2007 chain today, globalization plays a key next 12 to 24 months. Only 31 percent While small distribution and role. Individuals with global sourcing of respondents intend to expand during wholesaling companies share experience – particularly those familiar this period; of those, 21 percent plan to many concerns with other U.S. with foreign factories and capabili- provide additional services, 20 percent small businesses, they are more ties, and those who can create working would expand current locations, and 19 worried about foreign competi- relationships between domestic pur- percent wish to add locations. tion than health care costs. chasers and foreign producers – are The business owners cite improving Concerns of all U.S. most desirable. Specialized managers, staff training as the key to productiv- Small Businesses especially those familiar with import/ ity improvements over the next 12 to 24 1. Taxes export, international logistics, customs months. Improving automation, adding 2. Economic conditions brokerage, and supply chain integra- staff, and increasing automation or tech- 3. Energy/fuel costs tion, are also seeing job growth, says nology rank second through fourth. 4. Other Riemenschneider. “Distribution and wholesaling com- 5. Health care costs The need for diversity in logis- panies are always striving to increase Concerns of Distribution/ tics positions means roles are productivity. They will be placing Wholesaling Companies changing – women and minorities are emphasis on improving staff training 1. Taxes becoming a larger part of the supply and upgrading their business systems 2. Economic conditions chain and logistics workforce. in order to meet their optimistic reve- 3. Energy/fuel costs “The supply chain world is chang- nue expectations and still maintain or 4. Other ing dramatically. Companies should grow their profi tability,” says Gregg M. 5. Foreign competition embrace these changes, or they will Steinberg, president of IPA. fi nd themselves at a competitive disad- vantage,” notes Riemenschneider. ■

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Global Commerce: Talking the Talk hile it seems that every supply multiple languages, the report shows. says Chris Boorman, chief market- Wchain is global these days, many Compared to European marketers, half ing ofﬁ cer for SDL, a U.K.-based global companies are struggling to “go global” as many American marketers say that information management firm that effectively. Navigating language barriers, their brand values are well represented commissioned the study. cultural differences, and brand consis- in all their supported languages. As a “The fact that so few U.S. companies tency can be challenging for even the result, only 24 percent of U.S. market- have effectively managed their brands most globally minded companies. ers say that their customer experience internationally – despite acknowledging One particularly troubling vari- is consistent across all languages, com- foreign culture as such a big stumbling able is making sure that the customer pared to 54 percent in Europe. block – reveals real pessimism on the experience is consistent across all lan- Overall, language and translation part of American business,” he notes. guages – and U.S. companies are not issues are cited by 37 percent of the “U.S. enterprises accept the difficul- faring well in this aspect, finds new survey’s total respondents as the main ties presented by foreign markets, but research from Forrester Consulting. barriers to effective global manage- seem unwilling to make the strategic In fact, fewer than one-quarter of ment. Another 35 percent list cultural decisions that are imperative for global U.S. companies are able to offer a con- differences as the top concern. commerce success.” sistent online customer experience in Considering these stumbling blocks, global commerce has become a double- edged sword for many U.S. companies,

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Francisco Angeles Michael Forchetti Dennis Lavallee Marc Schiff El Paso, TX Rockville, MD Hartford, CT Las Vegas, NV GLOBALLOGISTICS ‹ CONTINUED FROM PAGE 22

October will set another new record, Though Port Tracker recently rated the Deck the Ports Port Tracker predicts. ports of Los Angeles and Long Beach as The report estimates the following “moderate” because of a possible offi ce With Retail Traffi c cargo totals for the next three months: clerical union strike, the threat has been hough most of us only recently said 1.56 million TEUs for August, up 5 per- resolved, and the ports have returned to Tgoodbye to summer, the nation’s cent from August 2006 and beating last their previous “low congestion” rating. major retailers are already thinking October’s record of 1.51 million TEUs; about the winter holidays. To protect 1.52 million TEUs in September, up 2.1 against unforeseen supply chain dis- percent from last September; and 1.57 Ensuring Success ruptions and ensure their goods are million TEUs in October, traditionally on the shelves for the all-important the busiest month of the year, a 4.1-per- In the UAE holiday shopping season, retailers are cent increase from one year ago and a ne nation generating a lot of preparing for the peak shipping cli- new record. Oattention within the transporta- mate earlier than ever. “This pattern of new records being tion world is the United Arab Emirates As a result, traffic at the nation’s broken early shows that retailers are (UAE). The UAE – and the city of Dubai major retail container ports is expected bringing holiday season merchandise in particular – has become a leading to top last year’s record high for three into the country sooner than in the marketing and trans-shipment hub for months in a row beginning in August, past,” explains NRF Vice President and multinational companies serving the according to the monthly Port Tracker International Trade Counsel Erik Autor. Middle East and North Africa. Thanks report from the National Retail Despite the heavy volume, most to its location on the border of the Federation (NRF) and consulting fi rm retail ports are operating without con- Gulf of Oman, the Persian Gulf, Saudi Global Insight. gestion. U.S. ports covered by Port Arabia, and Oman, the UAE is strate- August totals should exceed the Tracker – Oakland, Tacoma, and Seattle gically placed as a regional hub and record set last October; September on the West Coast; New York/New gateway between Europe and Asia. will be slightly slower than August, Jersey, Hampton Roads, Charleston, U.S. imports into the UAE refl ect this but will still top last October; and this and Savannah on the East Coast, and ideal location: imports grew nearly 41 Houston on the Gulf Coast – are all percent from $8.5 billion in 2005 to currently rated “low” for congestion. $11.9 billion in 2006, making the UAE Highs and Lows in European Contract Logistics hink of hotspots for European contract logistics and Finland is not likely to be your fi rst Tchoice. But surprisingly, the Nordic region boasted some of Western Europe’s highest growth rates for contract logistics in 2006, according to European Transport and Logistics Markets 2007, a report from UK-based research organization Transport Intelligence. Finland in particular benefi ted from increasing trade with Russia, and is positioning itself as a gateway to fast-growing markets in the East. The United Kingdom also fared well in the contract logistics market last year. Its above-average showing was strongly infl uenced by positive international logistics activity, and domestic demand growth. Growth in some of Western Europe’s more developed nations, however, was slower. In Germany, low domestic demand resulted in below-average growth despite buoyant imports and exports, while Spain experienced a reversal of the factors that had driven growth in its contract logistics market—strong domestic consumption made up for relatively low levels of international trade. The Netherlands also suffered from weak domestic demand, but benefi ted from global trade due to its popularity as a location for European distribution centers, fi nds the report. Overall, the contract logistics market in Western Europe grew 6.7 percent in 2006 to reach $66.7 billion. “It was another strong year for the contract logistics industry in Europe,” notes John Manners-Bell, chief analyst at Transport Intelligence. “Most countries experienced solid growth, with markets at the periphery of the region enjoying the most signifi cant development, albeit from a smaller base.”

24 Inbound Logistics • September 2007 ity associated with understanding and As multinational companies leveraging FTAs requires devoted exper- continue turning to the UAE as a key link in their global supply tise, resources, and technology. It is chains, Dubai International essential for companies to identify peo- Airport benefi ts. The airport ple within their organization who can last year posted a 14.4-percent growth in fl ights. focus on FTA issues and opportunities. ■ Choose the right supply chain partner. A local supply chain/logistics expert with regional knowledge can help companies navigate the UAE’s economic landscape. Look for a partner possess- ing processes and systems that aid in employing state-of-the-art and regulatory-compliant trade operations. In addition, fi nding a partner with regional expertise is key to understanding local rules and regulations; properly assessing appropriate trade lanes; selecting qualifi ed service providers; and outlin- ing activities that reduce risk, improve compliance, and streamline the fl ow of regional cross-border shipments. RFID Eyeing Bright Future hough nagging doubt about RFID’s Tfuture persists among some naysay- ers, recent developments in the global the top U.S. export destination in the violating export regulations – uninten- RFID market suggest the technol- Middle East, according to the National tionally or otherwise–have reached ogy isn’t going anywhere. And RFID’s U.S.-Arab Chamber of Commerce. the $100-million mark. Be sure the key potential is particularly robust in As businesses increasingly export to supply chain players in your organiza- China, according to new research from the UAE or establish the country as a tion are aware of these fi nes. technology consulting fi rm IDTechEx. key link in their global supply chains, ■ Stay current on regional trade For the fi rst time, China has become what are some trends and issues that regulations. Because regional trade chal- the world’s largest market for RFID by companies should keep in mind to suc- lenges, trends, and regulations change value. In 2007, East Asia’s RFID spend ceed in the region? Len Casley, general quickly, it is often challenging to remain will reach $2.7 billion, and the major- manager of JPMorgan in Dubai, offers up to date. One key is to obtain real- ity of this – $1.9 billion – will come from the following tips for incorporating the world insight into actual Middle East China, shows the RFID in China 2007- UAE into your global supply chain. trade challenges and how other compa- 2017 report. China is spending the bulk ■ Educate key players on export nies are addressing these issues. of these funds on a 900-million-people controls. Nearly 25 percent of all goods ■ Leverage free-trade agree- national ID card system to be imple- imported into the UAE are then re-ex- ments. The UAE is currently pursuing mented prior to the 2008 Olympics. ported to regional markets. As a result, free-trade agreements (FTAs) with The country is also spending $.25 companies using the UAE as a trans- the European Union, Australia, New billion on other RFID tags and sys- shipment hub may face high fi nes or Zealand, and Japan; and is negotiating tems, largely related to transport, cash penalties if goods are re-exported to a bilateral FTA with the United States, replacement, and secure access cards countries or individuals that appear on bringing both challenges and oppor- (see chart, next page, for additional RFID international restricted party lists. In tunities to companies conducting applications in China). the United States, fi nes to companies business in the region. The complex- Though China’s spending on RFID

September 2007 • Inbound Logistics 25 GLOBALLOGISTICS ‹ CONTINUED FROM PAGE 25

RFID’s Potential in China will likely sink below the United States and Japan once it completes its ID-card END USER CATEGORY APPLICATION ANNUAL TAG VOLUME program, predicted RFID growth in sec- Food and Drug Financial security Anti-counterfeiting 1 billion+ tors such as supply chain applications, Administration safety drugs transportation, manufacturing, and the Major appliance Manufacturing Production line Hundreds of millions military will likely make up for this drop manufacturers management within 10 years, the report predicts. Of RFID suppliers in China, the lead- China Post nationwide Land and sea logistics, Mailbag tracking 100 million rollouts postal ing 12 companies account for $722 million of the Chinese RFID market Major seaport rollouts Land and sea logistics, Container tracking Tens of millions size in 2007, finds IDTechEx. Many postal suppliers are involved in the ID card Chinese Army Military Logistics Tens of millions project, but China also is home to Alcohol Retail consumer goods Anti-counterfeiting Tens of millions leading RFID suppliers to the semicon- alcohol ductor and chip design industries. Major motorbike Manufacturing Production line 10 million+ In addition, global companies manufacturers management are eyeing China’s RFID growth for their own market potential – Texas Major car manufacturers Manufacturing Production line Millions management Instruments, STMicroelectronics, lnﬁ - neon, EM Microelectronics, and Atmel, Container manufacturers Manufacturing Container yard 2 million+ for example, are investing in China’s management RFID market. ■

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Helping Truckers Survive and Flourish

hat is the biggest challenge fac- rience? No, not until carriers do due the ones knocking on your door trying carriers today? Pick one: diligence. We need to check new driving to save you $5 or $10 will not last. W the driver shortage, fuel prices, ers’ background, credit history, driving Somewhere along the line, loyalty has insurance costs, new equipment costs, history, medical history, and previous to be rewarded. shipper and consignee demands, cus- employment history – all within the toms delays, border delays, technology constraints of the Personal Information WHY AREN’T WE CHARGING? demands. And the list goes on and on. Protection and Electronic Documents Recently, one of the many transporta- Ask our company that question and Act (PIPEDA). tion companies we deal with every day we’d answer “drivers.” Insurance com- Who pays for all this? Who pays instituted an ACE surcharge, a fee the panies want us to only hire drivers who when carriers are requested to drop U.S. government is charging all carri- have three years of experience. Some their equipment and return at a later ers that cross the border. But one shipper insurance companies do not recognize date to pick it up? Who pays when who uses that transportation company overseas work as driving experience. goods move in-bond? Who pays when refused to pay the surcharge, and has Others let us recruit drivers from a driver is delayed at Customs? Who ceased using the carrier’s services. overseas. pays to help defray the costs of install- When the carrier asked why it ing and running C-TPAT-compliant wouldn’t pay the surcharge, the shipper CULTURE CLASH software? Who pays to help defray replied, “No other carrier is charging it, I recently attended a seminar spon- the cost of being an ACE-compliant why are you?” sored by an insurance company. The company? Who pays the added costs The carrier responded to the cus- key takeaway was this: a carrier’s cul- involved in staying ahead of security tomer this way: “We do not tell you ture has to change before it can change concerns on both sides of the border? what to charge for your product or the the driver. When people emigrate to The carriers. costs involved.” But the carrier’s second North America from other countries, Yet some shippers and consignees question was directed to the trucking they bring with them the will to work. continue to push the market into a industry: “Why are all the other car- The hardest adjustment is the mental- downward spiral through high-pres- riers not charging a surcharge to offset ity change required to work within the sure rate negotiations. the costs of ACE-compatible comput- North American infrastructure. Carriers To the reasonable shippers and con- erization, C-TPAT security regulations, who don’t clearly communicate their signees, as some of the larger companies fast certifi cation, new hours-of-service ideas, or try to do everything on their are, the trucking industry says, “thank regulations, and training, retraining, own, will go the way of the dinosaur. you.” Your goods will make it to market and updating drivers, offi ce staff, and On the other hand, should carri- and you have agreed to pay accordingly. equipment?” ers turn over their equipment and set Reputable carriers, load brokers, third- When both shippers and consign- new drivers upon the unsuspecting party logistics providers, and 4PLs will ees realize that everything they require public simply because they have expe- continue to fl ourish and grow, while of their carriers has an inherent cost

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Telephone: 1-866-695-6414 • Email: [email protected] • www.kelron.com CARRIERSCORNER ‹ CONTINUED FROM PAGE 28 involved, they are willing to pay accord- grow, and continue to grow. ingly. That will help good carriers, who Yes, trucking is Let’s continue to grow, prosper, and are in it for the long term, to fl ourish diffi cult and requires fl ourish as an industry by getting back and survive. So-called load brokers, who to basics. The trucking industry may take the money and run, do not have long hours. But it is also not be the most glamorous, or the surety bonds, do not care about the most high-tech. We may have trou- legalities of transportation law, put more exciting, challenging, ble attracting workers. Anyone who terms and conditions on the dispatch has been employed in this industry for sheet to the carrier than the trouble it is and rewarding. more than a few years may leave it, but worth to move the load, will not. once trucking gets in their blood they So much freight moves between business. Credit is not automatically always come back. Yes, it is diffi cult and Canada and the United States every day granted, it’s a privilege that has to be requires long hours. But it is also excit- that the companies and carriers doing earned. Third, exchange information ing, challenging, and rewarding. business there need to cooperate bet- on others within our industry. We should welcome anyone want- ter, self-regulate more effi ciently, and The old saying, “when in Rome do ing to break into our industry with increase information flow. They also as the Romans do” is one we should open arms. We should welcome the need to monitor and adjust credit in a take to heart. Why? Because all owners, recommendations of anyone who has timely and effi cient manner. managers, supervisors, drivers, dispatch- information that can help us operate What can carriers do as an industry? ers, dock workers, accounts payable/ smarter, more efficiently, and more First, operate safer, within the con- accounts receivable departments, and effectively. And we should help in any fi nes of the law. Second, don’t extend administrative support staff only want way possible those institutions that credit to 3PLs or 4PLs just because they one thing: respect. Carriers who com- want to educate or train transportation hang out a shingle and say they are in municate this from the top down will industry workers. ■

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30 Inbound Logistics • September 2007 How do we do it? AFN’s Goal is to provide our On average, ten percent of the cost of goods sold in the US Customers with a competitive advantage in moving their is directly attributable to the transportation and warehous- freight by matching their transportation needs with the many ing of product. AFN will move your toughest load, manage niche services of our select Carrier Partners. Daily buying and your entire logistics department, or provide you with any selling of capacity with special care given to each shipment level of service in between so you can optimize the value of ensures that every load ships The Best Way Everyday®. your logistics spend. AFN is a non-asset-based provider of logistics and trans- Whether you are looking to expedite a single piece of freight portation services throughout North America. Our focus is cross-country, set up dedicated routes, want to move your on full truckload and less than truckload brokerage and truckloads without the hassle of making 20 calls, or need logistics services. AFN aggressively matches your needs assistance optimizing and managing your entire logistics with the many niche services of our select Carrier partners. network, we’re the logistics provider for you.

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Data Fuels the Supply Chain

hen struggling to implement same thing; and handle formats and ure the data and documents you receive international supply chain codes that change over time. with the actual business process that W management software, it helps Other important dimensions to your triggered them. For example, does a set to focus on the importance of clean technology platform’s flexibility go of dates defi ning a ship window mean and usable data. Failing to get good beyond formats and codes. You may that you can’t invoice for any merchan- data into and out of your supply chain have standardized the data you receive dise delivered after midnight on the last management IT system is like fi lling a from partners for all supply chain date? Or does it mean that’s the broad Lamborghini with nail polish remover events, but what if it gets delivered in window a supplier should aim for? and expecting it to win the Grand Prix. a different order – say, purchase order Getting your data platform right How do you get quality supply information comes in after the packing puts you in a position to monitor data chain data? Start with your technol- list? You need a system that can park quality in a smart way, but it’s just ogy platform. information somewhere until it can link the beginning. You need to imple- Major global supply chains involve to other, more recent data. ment processes to monitor and resolve many partners with independently issues as they arise. You should be developed IT systems, using myriad KEYS ARE KEY running weekly and monthly reports data formats, as well as different codes Then there are “keys,” which are the to measure the data in your system: for locations, countries, and currencies. reason why you are asked for a SSN or a What percentage of locations were not Even if you wrap your arms around phone number when you go to a video mapped? What percentage of updates all that, partners, codes, and formats store. You need a technology platform came too late? Are you getting accurate, all change over time, making sup- that can deal with different partners complete, and timely messages? ply chain information management identifying documents using differ- These additional processes and grubby, complicated, and messy. ent keys. One partner might identify attention incur costs that are usually Many companies deal with the prob- a shipment with a TA number, while not factored into the system’s initial lem by insisting that all partners adhere another chooses a combination of price or implementation. It requires a to their format and codes. That’s one bill of lading and container number. dedicated team that might stretch your way to alienate partners and ensure that Solutions that have assumptions about in-house capabilities. But an on-de- software implementation takes forever. these keys buried in programming mand supply chain vendor can provide A much better approach is to make code are infl exible. Look for technol- this data service for you. sure you have a flexible technology ogy that lets you confi gure the keys by Whatever you choose, remember platform that can accept different document type and partner. that you need good fuel in your car, formats; deal with different partners Lastly, you need to consider your and you need good data in your sup- sending different codes that mean the technology platform’s ability to confi g- ply chain management system. ■

September 2007 • Inbound Logistics 33 Brendon Lowe is vice president, Aldata, North America [email protected] VIEWPOINT by Brendon Lowe

What North American Retailers Can Learn From Their European Counterparts

n a recent trip to a local grocery the United States have put food safety trip to the store, I also noticed the peo- store, I noticed the organic pro- in the public eye. Currently, U.S. reg- ple shopping around me – young, old, O duce section had doubled in ulations surrounding food safety are black, white, Asian, Hispanic – each with size. I also noted the challenges this poorly designed and diffi cult to enforce. unique shopping needs and habits. expansion presents to the retailer – the History indicates, however, that the The one-size-fi ts-all approach to retail- produce section had to be redesigned, food scares of the 1990s had a tremen- ing that was successful for retail giants in produce bags specifi cally for organic dous impact on Europe legislation and the 1980s and 1990s cannot be success- foods had to be developed, and a little increased food safety measures may not ful in a society with rapidly changing band with the word “organic” hugged be far off for the United States. demographics. European retailers have each individual fruit and vegetable. 2. Rising labor costs. The United a long history of creating and managing All this change underscored the real- States has long enjoyed lower labor costs multiple store formats and assortments, ity that retail continues to be the most than the EU. Lower labor costs, how- and have had great success in meeting dynamic business in the world. But ever, have led to a lag in the adoption of and profi ting from the demands of local how will U.S. retailers stay ahead of critical store and DC automation technol- markets ripe with diversity. ever-fl uctuating market drivers? ogies that reduce required labor hours. With leading U.S. retailers experi- When it comes to product trace- U.S. retailers have instead relied menting with smaller-store formats ability, workforce management, and heavily on hiring part-time employ- and re-arranging stores to match the merchandising, European retailers are, ees, a strategy with limited long-term geographic and demographic tastes in many ways, far ahead of their U.S. viability considering that the mini- of their locations, and top European counterparts. Some advancements are mum wage is on the rise. Rather than retailers entering the U.S. market, U.S. the direct result of legal, political, labor, add labor, retailers need to implement retailers must begin to pay more atten- and cultural factors that they have grap- strategies such as perpetual invention to market segmentation. Effi ciently pled with for decades – challenges we are tory and computer-assisted ordering, capturing and analyzing customer and starting to see in this country. Others which have helped European retail- sales data to ensure the right products are the result of pure innovation. ers free up labor from time-consuming are on the right shelves at the right Three challenges are emerging in the tasks to make them available for more prices will be key to success. United States that European retailers customer-centric functions. They With the technology available to have already tackled. Their experience have also reduced the need for costly, bring U.S. retailers in step with their and innovation can show U.S. retailers skilled labor by automating inventory European counterparts, there’s no rea- how best to succeed. management tasks so they can be per- son this country should lag behind – or 1. Food safety and traceability legis- formed by the less-costly labor force. why it can’t take the lead – in retail lation. Recent large-scale food scares in 3. Market segmentation. During my innovation. ■

34 Inbound Logistics • September 2007

Vicki O’Meara is president of U.S. Supply Chain Solutions, Ryder 305-500-4716 • Vicki_O’[email protected] 3PLLINE by Vicki O’Meara

Take a Deep Breath Before Diving Into Global Outsourcing

ver the past two decades, pro- production and distribution processes a critical foundation of planning. IT duction pioneers at automotive that they often replace. At worst, enter- implementation is complex because O and high-tech companies ing into a changeover without proper it involves many systems. A qualifi ed turned outsourcing into a baseline expertise and planning can result in a logistics provider, however, should be capability, significantly enhancing severe production disruption. At best, able to integrate the systems and cre- profi tability and productivity. it can leave substantial savings on the ate a seamless, consistent, and robust Today, manufacturers of all sizes in table and fail to optimize the benefi ts. communications infrastructure among every industry are properly exploring Outsourcing production to other all partners, allowing for the dynamic outsourcing options as they grapple countries is a complicated process that operation of the entire supply chain with the urgent need to reduce costs, lengthens the supply chain, involves from the point of customer order to enhance profitability, and increase more partners, requires complex man- the delivery of product. competitiveness. agement, and increases the possibility This is especially true in North of potential disruptions. Logistics and FINDING THE BALANCE America, where anxiety over low-cost/ inventory costs will rise, but opportu- Other cost and process challenges to high-quality foreign competition and ris- nities for effi ciency gains, especially as evaluate are fi nding fl exible and strate- ing labor costs is forcing manufacturers the supply chain matures, exist. gically located warehousing with the to take a deep breath and dive headlong Successful outsourcing requires that right capacity, and understanding how into outsourcing, ready or not. you engage internal stakeholders – sales, to balance supply and demand, prod- marketing, human resources, and cus- uct lead times, and inventory levels OPEN-HEART SURGERY tomer service – in the plan, as well as because global outsourcing lengthens The lure of lower costs in a range suppliers and logistics providers. Having the time between ordering and prod- of countries with impressive emerg- a strong team in place early in the pro- uct delivery. ing production capabilities may be too cess directly impacts the success or High-quality, technologically great to ignore. Serious complications failure of your outsourcing operation. advanced warehousing can reduce can arise, however, when a company Manufacturers should take a com- inventory costs and increase added- rushes into the corporate open-heart prehensive look at their operations value opportunities for manufacturers. surgery that we know as global produc- and objectives, and plan carefully Inventory levels usually rise for out- tion and supply chain management. before taking the outsourcing plunge. sourced manufacturers, but they can This process typically requires far Technology and communications offset much of this additional cost with greater planning, technology, new com- are critical components of integrat- skillful demand, production, and sup- petencies, and simultaneous integration ing, coordinating, and managing ply chain management. Collaborate capabilities than the domestic-oriented the physical supply chain and IT is with all partners in the supply chain.

If logistics providers are notified outsourced manufacturing. tingency plan. Contingency planning is of orders as soon as they are placed, Culture also has emerged as a crit- critical to outsourcing’s long-term cost for example, then they can optimize ical factor in learning the attitudes and effi cient operation. capacity, which helps drive cost savings. and working methods of the manu- Take it from the automotive man- Logistics providers, utilizing their com- facturing country. Logistics providers ufacturers – outsourcing can yield prehensive networks, can transition possess local market expertise and in- great benefi ts if it is comprehensively imports seamlessly from international country cultural experience. With planned and managed. You can achieve line hauls to warehouses to domestic this knowledge, they can advise and a supply chain that runs effi ciently if distribution. This helps maintain a support businesses through the tran- you engage the help of qualifi ed logis- consistent supply of product to the cus- sition and help them gain their own tics providers early in the planning tomer as the supply chain transitions expertise. process. They are key sources of knowl- from domestic to international. edge, experience, and support in the Managing cross-border regula- EXPECTING THE UNEXPECTED outsourcing planning and implemen- tory issues and procedures is a core Like any well-thought-out plan, tation process. competency for experienced logistics something can go wrong inadvertently, Global logistics providers have the companies, and can help ensure the especially when charting unknown specialized skill set to negotiate goods safety and security of the supply chain waters. A domestic supply chain requires across borders every day, flawlessly, and its partners. Logistics providers have far less specialized knowledge to oper- with partners of different cultures. large networks to manage infrastruc- ate than an international supply chain. They will be qualified outsourcing ture inadequacies and the knowledge That’s why manufacturers, in collab- partners when you are ready to take and applications to assist companies in oration with their logistics providers, that deep breath and dive headlong managing the increased complexity of should develop a comprehensive con- into global outsourcing. ■

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38 Inbound Logistics • September 2007

40 Inbound Logistics • September 2007 Inbound Traffic Control Tracking inbound transportation used to ﬂ y under shippers’ radar screens. Today, however, companies as large as Pepsico and as small as Pamida know the position of every shipment headed their way. by Lisa Harrington

The concept of managing inbound transportation began to garner acceptance in the early 1980s, when leading companies sought to gain better control over their transport spend. The problem was, control was decentralized in functional silos and shared by companies and their vendors. Controlling inbound required a strategic view. Complicating the challenge, “shippers’ transportation activities were balkanized. A company might use inbound rail, inbound truck, inbound ocean, outbound truck, outbound rail, and outbound ocean,” recalls Brooks Bentz, a partner with consulting ﬁ rm Accenture. Often these functions were not centralized, so inbound might have been managed by the headquarters logistics group, and outbound managed at the distribution center level. “That was illogical,” he adds. “No matter what business you’re in, freight comes in and freight goes out,” Bentz continues. “Managing it holistically makes more sense. When you put all your transportation business out to bid simultane- ously, carriers can see the complete picture and offer better rates. You can develop your carrier base as a network of capacity that delivers the best price and service, at the best cost for carriers.”

September 2007 • Inbound Logistics 41 When Pamida separated from ShopKo in 2005, the retailer was left without a transportation management system. It decided to outsource distribution to third-party logistics provider Werner Enterprises. It also uses Werner’s Web-based TMS to manage inbound freight.

Taking a holistic view of managing employees. Pamida is a small-format Mulkay explains. “For purchases where freight also opens new opportunities regional retailer that operates 207 the costs are not unbundled, we still for competition. With the ability to stores throughout the U.S. Midwest. know the price of the transportation.” evaluate multiple price tiers and service But both companies share something As part of the unbundling process, options, you might discover rail lanes in common – they actively manage their PepsiCo uses an inbound routing guide that you hadn’t thought of using, and inbound motor freight transportation. to dictate to vendors which carriers shift truck to rail. Barry Mulkay, director of procure- they will use. The carriers bill PepsiCo “And, when capacity is tight, you can ment/carrier operations for PepsiCo, directly for their services. still drive improvements by moving procures all inbound and outbound “Unbundling transportation costs has the right freight with the right carri- transportation for the company’s U.S. been an evolutionary process,” Mulkay ers,” Bentz says. domestic movements. notes. “We are still working to get some As part of this trend toward treating PepsiCo spends approximately $1.6 products unbundled. In some cases, we freight holistically, companies began to billion annually on domestic transpor- have to wait until a contract expires. take inbound transportation manage- tation. “Transportation procurement is ment away from their vendors. But it’s centralized, but not managed in a vac- LEAVE IT TO THE EXPERTS still a patchwork quilt of control. uum,” Mulkay says. “We work closely “PepsiCo people are experts in buying “Today,” reports Bentz, “some compa- with every business unit – Quaker Oats, all our needed raw materials,” he adds. nies control 98 percent of their inbound. Tropicana, Gatorade, Pepsi Cola, and “Quaker Oats, for example, has experts They pay the freight, do the routing, FritoLay – to develop the best capacity, who buy plastic bottles for Gatorade. pick the carriers. Other companies – even service, and cost solutions.” While they’re geniuses at buying the large ones – only control a small portion In the past, the company’s transpor- bottles, they are not as knowledgeable of their inbound transportation.” tation costs were often built into the about transportation – what it costs to price of the raw materials. Today, how- ship bottles and caps from origin to the A TALE OF TWO COMPANIES ever, the majority of PepsiCo’s inbound manufacturing facilities. PepsiCo and Pamida couldn’t be transportation costs are “unbundled.” “The buyers would negotiate on the more different. PepsiCo is a world “We worked with the material pro- bottle price, pressuring vendors to leader in convenience foods and curement teams to unbundle freight reduce their prices, arguing that the beverages, with 2006 revenues of costs so we could fully understand and cost of plastic had declined so the more than $35 billion and 168,000 differentiate the cost of transportation,” delivered price should be lower. The

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Experience the POWER of OD. We are your ONE source. “ More companies are trying to wrap their PepsiCo’s transportation management system (TMS) optimizes all arms around better managing their inbound and outbound material fl ows to ensure Mulkay’s team makes the inbound. They are moving farther right mode selection – whether private or dedicated truck fl eets, point-to-point upstream in their purchasing trucking, or intermodal service. to control a much “The TMS runs multiple optimiza- relationships tions at the speed of light, and connects larger percent of that freight.” information to create a tour where we pick up a load from a supplier, deliver — Dan Cushman, chief marketing offi cer, Werner Enterprises it to a plant, then pick up a load from the plant or nearby facility. It repeats vendors would respond that transpor- transportation mode, truckload the process of picking up and deliver- tation costs had increased, so they had (TL) – which includes private and ded- ing loads,” Mulkay explains. to boost the bottles’ overall delivered icated fl eets, and point-to-point core PepsiCo’s TMS contains all the rate price,” Mulkay says. carriers – is king. All the business and cost information to help Mulkay The PepsiCo and Business Unit trans- PepsiCo delivers travels almost one bil- and his team compare private fl eet, ded- portation teams offered to help on the lion miles annually, “and that’s just icated fleet, and point-to-point motor transportation side of this equation. domestically,” Mulkay notes. carrier options. It solves for the most They compared the vendors’ quoted PepsiCo’s guiding principle is: “What cost-effi cient options available, and won’t transportation costs against PepsiCo’s the customer requires is delivered!” To connect a load to a tour unless it can meet benchmarked rates and current market live by this principle, Mulkay’s team the load’s delivery time requirement. conditions. has its own goal: to “own” everything “Some components of our inbound “We found some vendors were play- that moves. transportation might be different from ing material costs against transportation costs, and vice versa,” Mulkay says. That’s when PepsiCo decided to let the transportation experts manage freight costs, and the materials experts manage product procurement. “Most major U.S. companies are moving in this direction,” Mulkay adds.

MANAGING THE WHOLE When it comes to managing transportation, PepsiCo does not differentiate between inbound and outbound. “We manage them the same way,” Mulkay says. “It’s our job to ensure an uninterrupted ﬂ ow to the entire supply chain. That means all shipments – ﬁ n- ished goods and raw materials – required by our manufacturing facilities, co-packers, distribution centers, and customers arrive on time at the least landed cost.” FritoLay vendors, suppliers, and plant facilities enter inbound and outbound PepsiCo services 450,000 customers shipments into Werner Enterprises’ Web-based TMS. The system analyzes freight domestically, and supports and sup- parameters and assigns the mode, carrier, and cost. The TMS also monitors shipments for acceptance and compliance by FritoLay’s core carrier community. plies more than 200 manufacturing facilities and co-packers. The company delivers to approximately 1,600 distri- “We want to help make the best outbound, but that’s insignificant,” bution centers across the United States, transportation decisions for the com- insists Mulkay. “We manage transpor- and processes three million transac- pany,” Mulkay explains. “We act as tation to our customers’ needs. That tions annually while delivering about consultants and execute for anyone in boils down to when they need to ship two million loads. the organization who has any kind of the product and when they need to While PepsiCo uses every transportation need.” receive it.”

44 Inbound Logistics • September 2007

our attention so we can reduce or eliminate them,” Mulkay says. “Or they may have ideas on how to join some pick-up and delivery pairs with other shippers to eliminate empty miles.” One of PepsiCo’s core carriers is Werner Enterprises, Omaha, Neb. Werner has implemented PepsiCo’s proprietary TMS application for the FritoLay division, and extended its Web-based TMS to FritoLay vendors, suppliers, and plant facilities. These stakeholders are able to enter their inbound and outbound shipments into the system. The Werner TMS then analyzes the shipments’ parameters – including pickup and delivery schedules and altitude routing – and assigns the mode, carrier, and cost. The Werner TMS monitors these shipments for acceptance and compliance by the core carrier community. The Werner TMS also provides reports on shipment service levels and Sophisticated TMS tools and new Web capabilities offer increased visibility to transportation information. Shippers are now less dependent on carriers or reporting costing for trend analysis and provider services to provide data. scorecarding.

Mulkay’s group applies its expertise to everything we can to maintain appro- PAMIDA GETS A MAKEOVER providing customers with transportation priate relationships with our partners. In 1999, ShopKo Stores Inc., a options so they can choose the service If they have a service issue, for example, Fortune 500 company headquartered and cost that best suits their needs. it becomes our issue as well, and we try in Green Bay, Wis., purchased Pamida “We consider all the options,” Mulkay to help them solve the problem. and began operating the company as a says. “Our fi rst priority is to ensure that “It’s more diffi cult to replace a carrier separate division. we maintain an uninterrupted fl ow to than it is to help them solve a service ShopKo is a big box retailer; Pamida our supply chain. The second priority is problem,” he adds. is not (stores average 18,000 to 32,000 to ensure that we do that at better-than- market competitive prices.” Twice each year, PepsiCo benchmarks “ Because real-time shipment information its freight rates against other large U.S. retailers to determine what it is paying is readily available, both inbound for certain origin-to-destination pairs, and outbound partners can and to ensure it gains leverage for its transportation spend. It also uses the see what’s happening on the benchmark information to negotiate with carriers and service providers. other end.” “Because of the size of our domes- — Pat Lemons, vp operations, Yellow Freight tic transportation spend, we expect to get extremely competitive pricing,” Mulkay notes. PepsiCo maintains a weekly service square feet). Thus, Pamida struggled PepsiCo has had a core carrier pro- scorecard on all its carriers. At least with an ineffi cient inbound distribu- gram in place for 10 years, and values once or twice a year, the transportation tion network that was based on a big the relationships it has established with teams conduct face-to-face meetings box model. those carriers. with carriers to review past perfor- In 2005, Sun Capital Partners Inc. “We enter partnerships for the long mance and future opportunities. acquired ShopKo and decided to run its term, and prefer our carriers to share “Carriers may have seen us do things two retail operations as separate entities. our mission,” Mulkay says. “We do that are wasteful and can bring them to “My job was to break Pamida away

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Dart Advantage Logistics, 800 Lone Oak Rd, Eagan, MN 55121, 877-902-5728, www.backhauler.com “ Most companies would admit they have less control over inbound freight than they do over outbound.” — Dan Cushman, chief marketing ofﬁ cer, Werner Enterprises

from ShopKo,” recalls Ken Sutton, one less-than-truckload shipment. We to take place to get everything cleared,” director of logistics for Pamida Stores. changed the purchase order quantity to Lemons adds. “When we did that, Pamida was left 130, and unit costs dropped consider- While companies have made great without a transportation management ably. The LTL shipment was about half strides in managing inbound trans- system. So we decided to outsource the cost of the TL move, but we were portation services and carriers more distribution to a third-party logis- only picking up 30 more chairs.” effectively, “most would readily admit tics provider, Werner Enterprises. We Both PepsiCo and Pamida rely on they have less control over inbound underwent an extreme makeover.” a sophisticated TMS to manage their freight than they do over outbound,” As part of its distribution overhaul, inbound transportation and carriers says Dan Cushman, chief marketing the retailer developed a vendor partner- effectively. offi cer, Werner Enterprises. ship manual, which includes detailed “Today’s highly sophisticated TMS routing instructions for all FOB Collect make inbound freight management LOOK OUT THE WINDOW shipments to Pamida facilities. Pamida’s signifi cantly easier,” notes Pat Lemons, “To manage outbound freight, all traffi c department must individually vice president operations, Yellow they have to do is look out the window authorize all deviations from these Freight Corp. “The TMS tools and and they can see it leaving the dock,” standard routing instructions prior to new Web capabilities have provided he says. “But with inbound, they are shipment. Pamida buyers are not autho- new transparency to information and the recipient, and for a long time had rized to issue routing instructions. eased shipper dependence on carriers no visibility into what was coming in Each evening, the retailer down- or reporting services to provide data.” or what it cost. loads its vendor purchase orders (POs) This real-time availability of timely “But in the last fi ve years,” Cushman to Werner’s Web-based transportation information for both shippers and con- explains, “more companies are trying management system. Vendors then log signees “has elevated everyone’s game,” to wrap their arms around better man- on to the Werner TMS application to Lemons asserts. “Partners are more aging their inbound. They are moving enter their purchase orders, which are honest with each other, and, because further upstream in their purchasing validated against the PO fi le database. information is readily available, both relationships to control a much larger The orders are optimized and routed. inbound and outbound can see what’s percent of that freight.” happening on the other end.” Companies are trying to integrate CONSOLIDATE FREIGHT This information-intensive service their vendor communities to work with Werner’s system coordinates presents a unique challenge to motor carriers to deliver inbound goods at inbound shipments coming from mul- carriers trying to serve two custom- the lowest overall cost and highest ser- tiple vendors and routes them through ers – the shipper and the consignee. vice solution, according to Jim Schelble, a consolidation pool point, and con- “Their needs are so different, but we executive vice president sales and mar- solidates shipments on multi-stop have to satisfy both,” Lemons says. keting for Werner. truckload, intermodal, or less-than- On the inbound side, large ship- “In the past few years, when capacity truckload, reducing Pamida’s total pers might operate their own TMS was very tight, customers were saying, delivered cost and increasing velocity. with sophisticated capabilities. These ‘vendors are using any number of car- “This system provides benefits,” shippers typically trap large amounts riers to ship their freight to us, without Sutton reports. “We reduced order of inbound freight, for the most part us ever capturing that information. If turnaround time by two weeks. In the based on purchase orders they issue. we got involved in the inbound rout- past, we weren’t delivering to our stores “That creates an unusual require- ing, we could capture that capacity weekly, now we are.” ment for us as an LTL carrier because demand and optimize it across all our Pamida is also now more aware of we use a PRO or shipment number to vendors. We could eliminate deadhead how its merchants are buying, and track freight,” Lemons says. “The PRO miles or half-fi lled trailers, and every- tries to apply supply chain logic to their number seldom matches up with the one wins.’ purchases. purchase order number. So we adapt “That’s where the industry is head- “For example, our buyers were pur- our systems to trap that information ing,” Schelble concludes. “Companies chasing chairs from a vendor in and correlate the two types of data. are driving out transportation inef- Mississippi in lots of 160, but only 130 “Receivers typically unload those ficiency because they have visibility chairs fi t on a trailer,” Sutton says. “So large freight volumes – full trailer- into what’s moving. They are gaining they were ordering one truckload and loads – by PO, so a reconciliation has inbound traffi c control.” ■

48 Inbound Logistics • September 2007 Lily clients say the nicest things about the company named after mom. “I wanted to thank you and make you aware that the entire Lily team provided Whole Foods with outstanding service during Thanksgiving, our busiest time of the year. It is really a credit to your people that made this happen. Whole Foods broke records in product movement through the Cheshire DC each progressive day this week. We service 34 stores from Maine to NJ that get multiple deliveries around the clock. The additional equipment and drivers Lily provided to satisfy a spike in volume of 50% in a 2 week period was conquered by some special efforts from the Lily Team. In addition, Lily supplied the stores with temporary straight trucks and trailers to work out of for a couple of weeks.... The number of loads and drivers kept changing throughout the days and Lily not only met the challenge and kept it together but we had minimal issues surrounding deliveries. In fact we received several kind notes and words of praise from our stores on the flexibility we had to overcome, and on any issues that arose to keep our service levels high. Again, thanks for a job well done from all of us at Whole Foods Market, North Atlantic Region.” Rick Ballard, Associate Facility Team Leader, Whole Foods Market, North Atlantic

“I second Rick's appreciation for a job extremely well done. I can't tell you what a pleasure it is to have record volumes of products moving to our stores as smoothly as it has. It is a credit to your excellent planning, preparation and organization. Have a great holiday.” David Doctorow, VP Purchasing & Distribution, Whole Foods Market, North Atlantic

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50 Inbound Logistics • September 2007 Somewhere out there right now an 88-foot-long, 43-foot- high, 41-foot-wide, 275,000-pound flue-gas scrubber tower sits on a heavy-lift ship en route from Map Ta Phut, Th ailand, where it was fabricated, to the Port of New Orleans. When it reaches the United States, it will be transloaded onto a barge and hauled against the current and under the bridges to a refi n- ery up the Mississippi River. Once there, it will be lift ed off the barge and inched inland to the spot where it will be installed.

All in a day’s work for TransGroup Worldwide Logistics, Specialized or project cargo falls into three general Seattle, Wash., one of the highly specialized third-party logis- categories: tics providers that handle “project cargo.” ■ Special services, which usually cover value-added opera- Romance might be gone from the open highway, but there tions in handling conventional freight. is increasing business to be won where the road is not long ■ Special conditions, which usually cover both conven- and straight, or where there is no road at all. As sophisticated tional and unusual freight in unconventional circumstances. logistics practices have narrowed the competitive advantage ■ Special cargo can be long, tall, heavy, or delicate – even if between local and national operators, and as railroads have it moves only 100 miles down an interstate highway. recaptured signifi cant long-distance business, some line-haul Specialized services have grown quietly, but are becoming truckers are turning to complicated operations requiring spe- important profi t centers for third-party logistics companies. cialized equipment to differentiate themselves and to build To be sure, specialized equipment is more expensive to buy long-term business. or build and maintain. And while 3PLs can charge more for Such services encompass a wide array of operations. Some them, specialized services are not necessarily a major source major mainline highway haulers are pushing into the fi rst of premium profi t. The importance of specialized equipment and last mile, equipping conventional dry van trailers with and services is that they build long-term customer loyalty specialized cargo handling equipment. Other regional play- and often generate new volumes of non-specialized traffi c. ers are moving to second-generation power and trailers, Players say there is no way to quantify the volume of spe- custom-made new to replace general service units modifi ed cialized or project cargo; the market is too fragmented. But for specialized conditions such as poorly maintained high- the growth of TransGroup’s project division illustrates its ways or temperature extremes. potential.

September 2007 • Inbound Logistics 51 “TransProject was established nearly Getting carriers involved is often one “We had to pull in assets from four four years ago with one employee – me – of the last steps in the process. different truckers,” she says. “That is and grossed 2 million the fi rst year.” “We often start working with cus- the advantage TransGroup brings. If the says Sue St. Germain, director of proj- tomers when they are still trying to client had to canvass the industry for ects for TransGroup. “We are on track get the bid,” she says. “We support the the assets, the project might never have to gross $25 million to $30 million this bidding process, and advise them on been completed. We formed the task year. We now employ a staff of 11, and everything from purchasing to fabri- force, contracted with the motor car- are actively recruiting new people.” cation to engineering studies of roads riers, and chartered the ships. We also Therein lies one complication of proj- and bridges along the projected route. worked with the carriers overseas to get ect freight. The expense of acquiring By the time the client gets the bid, our the blades to their fi nal destination.” and operating specialized equipment, work is often half completed.” While moving turbine blades, and of training drivers, may be obvious. In one recent case, TransGroup refi nery units, or power-transmission But for a carrier or a specialized logis- moved 60 turbine blades for a wind equipment is the high-profi le and high- tics fi rm to be successful, it needs highly farm from a fabricator in North growth end of the specialized cargo trained workers at every level. Dakota to the Port of Duluth, Minn., business, slightly less exotic – but still “It is a difficult hiring market for where they were shipped overseas. specialized – hauling is also showing all carriers,” says St. Germain, “but it TransGroup got the bid the Friday signifi cant growth. is even more diffi cult for us. A mistake before Independence Day, and had two can be devastating for a customer. So we weeks to complete the job. Lightening the Load maintain very stringent requirements “Each blade measured 122 feet long,” One simple form of specialization is for joining the company, then train up recalls Shirley Castaing, TransGroup’s lightening a standard trailer so it can from there.” senior project manager. “We found a carry extra weight. Another complication is insur- way to put two blades, rather than just “It’s more likely to cube out a stan- ance. “Our carriers drive into working one, on each truck, and that made all dard 53-foot trailer before weighting it refineries or power plants, and onto the difference. But it was still a 24/7 job out,” says Brad Hicks, vice president and construction sites,” says St. Germain. for two weeks.” general manager of delivery services for “Some operators with the equipment While TransGroup owns and oper- J.B. Hunt, Lowell, Ark. “But if the ship- we need do not have the necessary ates some specialized trucks, it does not ment consists of soda or beer, you can insurance. So we established a process have turbine carriers, and no one com- reach the maximum gross weight before to qualify new trucker partners.” pany had enough. the trailer is fi lled. “We lighten the trailers through modifications such as aluminum wheels. Instead of the traditional 42,000 to 44,000 pounds of payload, we can get 48,000 to 50,000 pounds,” Hicks says. In J.B. Hunt’s dedicated division, specialized vehicle business is a strong growth center, and in the past few years has increased to about 40 percent of total dedicated work, Hicks says. Dedicated usually refers to a single client – and that represents the desirable long-term business. But it also refers in some cases to dedicated lanes, When it comes to moving oversized freight, or handling complicated regions, or types of service attracting logistics operations, shippers enough customers to justify equipment increasingly turn to specialized providers such as TransGroup and driver training investments. Worldwide Logistics, which handled “The capital investment can be con- this complex move in Astoria, siderable,” says Hicks, “so we need a New York. partnership, or at least the expectation of a partnership. While it can be just a transactional arrangement in a dedicated region or with certain equipment, we prefer a three-year contractual agreement. If that’s in place, we will acquire or modify any type of equipment.

52 Inbound Logistics • September 2007 *&

&!# &! (&#'%$&((!$###$)(!$#

Werner Enterprises began with one man, one truck and one vision – to do a simple thing very well. Embracing the mission of just one man’s vision more than 50 years ago, Werner Enterprises now achieves – one globe, one network and one system. As the leaders in transportation technology and innovation, we will continue to be a premier provider for logistic solutions globally while we remain customer focused and asset-backed. Through our commitment to our customers, leading-edge technology, and strategic focus we are able to implement solutions that meet and exceed our customer’s expectations. Import and export freight management programs | Licensed NVOCC #020343NF, freight forwarder and U.S. customs broker #23348 | P.O. and vendor management programs | Domestic overseas distribution | Information management and global visibility | North American delivery network | Customs-Trade Partnership Against Terrorism (CTPAT) certified | ACE, FAST, PIP, CSA, IATA approved

****&#&$" J.B. Hunt’s dedicated division handles creative equipment and services, such as residential deliveries. The carrier doesn’t just make the delivery, it goes into the home and uncradles, unpacks, places, and plugs in the merchandise.

equipment is driver training. Given the shortage of skilled truck drivers, time out of service for training is a major factor in the success of a specialized or dedicated operation. “Drivers become multi- skilled operators,” says Hicks. “They also become “For example, we have a fl eet of dump customer-service represen- trucks,” Hicks adds. “Most people would tatives of the manufacturer be surprised to learn that J.B. Hunt runs deliveries to sites without a forklift. and the seller, as well as the carrier. J.B. dump trucks.” Some specialized carriers that handle Hunt works with clients and equipment The logic is that specialized services furniture delivery and other high-value manufacturers to train drivers on safety and equipment have become one of the merchandise have developed a modu- and customer service.” few differentiators left in the industry. lar system of “demountable” half-length “Any carrier can haul a truckload of trailers. These trailers are loaded as a Facing the Competition cereal on a 53-foot dry van,” says Hicks. normal full-length dry van would be On the national level, Hunt com- “But the dedicated division handles the for the line haul from manufacturer petes with other major carriers as well creative equipment and services.” or port of entry. But then the halves or as local and regional operators. “We “pups” can be dropped separately onto face competition from the larger com- Losing Weight their own struts, where they are picked panies on easier business, but for the Vehicle weights are also being reduced up by a 20-foot straight-job chassis for more specialized services our com- to accommodate the addition of forklifts the delivery. petition comes primarily from local or lift gates that facilitate self-loading This modular system requires special- companies,” Hicks says. and unloading. “We use lift gates for res- ized demountable vans and dedicated “Regardless of the competition, we idential deliveries,” Hicks says. “A lot of chassis, and enables direct deliver- are motivated to go after specialized transportation has moved toward lower ies when no cross-dock is available or business because the tougher the ser- volumes with higher frequency. For more when reloading is not an option. vice, the more you endear yourself to traditional cargo, we have seen growth in Another popular modifi cation is to customers,” he adds. “The more inte- ‘last-mile, white-glove’ service, where we retrofit conventional 53-foot trailers gral you are to their operations, the don’t just make the delivery, but go into with adjustable but permanent horizon- harder you are to replace.” the residence, uncradle, unpack, place, tal load-bearing bars in the sidewalls. The growth in Internet commerce and plug in the merchandise.” Called captive beams, they allow the has also spurred an increase in special- Other specialized carriers extend the truck to double-stack irregularly shaped ized services. Take hot tubs, for example. same logic even further. Some operate or sized pallets that otherwise could not Hot tubs, or spas, used to be sold by local full-length fl atbed trailers with boom be so loaded. businesses in each community. Today, cranes – not just little hoists for unload- “The retrofit can be expensive,” a consumer in Maine can order a spa ing, but cranes capable of delivering admits Hicks. “But it works well for from a company in California, and the pallets of lumber to the roof of a six- cross-dock operations where ordinarily spa itself is manufactured in Georgia. A story townhouse under construction you would lose cube.” specialized carrier driver can handle the or renovation. In addition to added lift One important factor that any oper- trip from pickup to delivery, including gates and forklifts, trailers are also being ator or logistics provider must consider placement and connection in the con- equipped with electric pallet jacks for when offering specialized services or sumer’s home.

54 Inbound Logistics • September 2007 Sometimes the route, rather than the sleeper cabs, and can handle trips from equipment and personnel. manifest, dictates the specialized ser- Prudhoe Bay to West Barrow. Lynden “Last winter we handled about three vices. Just ask Lynden Transport, Seattle, has put two units into service, and four or four times our usual level of business Wash., a full-service logistics operation more are on order. thanks to leaks and operational problems specializing in handling truckload, LTL, along the Alaska Pipeline,” he says. flatbed, and temperature-controlled Traveling the Tundra As a multimodal operator Lynden has shipments to and from Alaska. The competition comes from rollogons also been the go-to carrier for extraor- The lanes Lynden travels are any- with big, bulbous tires that can roll over dinary movements. For instance, the thing but mundane. Any homeowner the tundra, even without snow. “Lynden’s company recently moved the huge com- in a U-Haul can drive from Houston to sweet spot is ice and compressed snow. ponents of a refi nery expansion from Dallas, but Dallas to Edmonton is a con- Without the big tires, tundra trucks can the fabricator in Bellingham, Wash., to siderable challenge. And Edmonton to move a little faster and be more cost Kenai, Alaska, acting as logistics plan- Prudhoe Bay, Alaska, is seriously spe- effective,” says Alex McKallor, president ner and road carrier, and working with cialized haul – essentially mainline of Lynden Transport. a charter fi rm for the marine move. The long-haul service over unimproved roads In this case, cost effective is a relative components were landed on the beach at with precious few fuel or repair options term. “Driving 500 miles on a dirt road is Kenai, and moved down the road more and radical swings in temperature and brutal on the equipment,” says McKallor. than fi ve miles to the Tesoro refi nery. weather. Lynden also handles ship- “It’s like sandblasting it with rocks.” The “This was a tough job,” notes ments from Los Angeles and the Pacifi c Houston-to-Prudhoe run is the longest McKallor. “Some of those components Northwest to Alaska by road, barge, and on the continent, McKallor notes, and is measured 30 feet wide and 30 feet high, marine roll-on/roll-off vessel. done with two-driver teams using con- and weighed 250 tons. The whole move Lynden’s service has grown to the ventional equipment as far as Fairbanks. took one month – two weeks on the point where the company has just While McKallor agrees with other water, then another two weeks from taken delivery of its fi rst custom-built specialized carrier executives that the beach to the refi nery.” “tundra trucks.” The new units, which long-term partnerships with shippers Just another reason why, when the cost about $400,000 each, include are the goal, he warns that being indis- going gets tough, the tough turn to spe- complete weatherization and full pensable can place heavy demands on cialized carriers. ■ LogisticsTechnology

Some people like technology for technology’s sake, but at Salem Logistics, we’re only interested in technology that meets the specific needs of our customers. We use on-board tracking/messaging systems, advanced desktop visibility applications, online inventory visibility at distribution facilities, and our own unique SCANEX system to offer unparalleled 360 degree awareness and customized reporting to fit your specific needs. At Salem Logistics, technology applies the right tool to the right solution.

See how Salem Logistics’ 21st century technology can help you. www.salemlogistics.com 1.866.800.9129

The smartest link in your supply chain.

Salem Logistics Transport Services, Inc. MC #335642. Salem Logistics Traffic Services, Inc. MC #188070. Salem Logistics, SCANEX and “The smartest link in your supply chain.” are service marks of Salem Logistics, Inc. © 2007 Salem Logistics, Inc.

September 2007 • Inbound Logistics 55 Focus on Your Goal We’ll Worry About Getting You There

You don’t have time for your organization to get sidetracked by logistics problems. BNSF Logistics can bring maximum efficiency to projects of all sizes. Our experts will streamline your operations and keep your projects on the right track. Whether you need us for a single shipment or a comprehensive supply chain overhaul, we’ll have a solution for you.

Practical Solutions. Practically Done. 877.853.4756 4700 S Thompson Springdale, AR 72764 www.bnsflogistics.com INBOUND LOGISTICSTRUCKING PERSPECTIVES 2007

AN IN-DEPTH LOOK AT MOTOR CARRIERS AND THEIR CUSTOMERS

September 2007 • Inbound Logistics 57 aving options is always a good thing. And in today’s TRUCKING domestic freight fray, over-the-road shippers, more than PERSPECTIVES anyone else, understand the importance and value of building fl exibility into their networks to accommo- 2007 date expected and unexpected fl uctuations in customer demand and carrier capacity. Given the past diffi culties of fi nding space and managing freight costs, transport buyers rely on motor carriers and third-party intermedi- aries to extend operational fl exibility beyond the loading dock. HA softening market, however, due to a downturn in the U.S. housing market and growing consumer pessimism has resulted in a surplus of equipment and capacity and decreasing consumer demand. And now, U.S. shippers are grateful for the opportunities and options they have available, as they become more judicious and strategic in selecting carriers and negotiating rates. For the time being, this buyer’s market is also forcing motor carriers to further accent their value and enhance their value proposition by investing in and developing innovative services and technologies to best serve both their core interests and customer demands. To give defi nition and shape to this shifting market, as well as a roadmap for where carriers are taking shippers and where shippers want to go, Inbound Logistics’ presents a two-tiered approach: our Motor Freight Market Insight Survey (MIS) and our annual Top 100 Motor Carriers list. The Motor Freight MIS captures the perspective of both shippers and carrier interests. First we polled motor freight carriers to see how they are expanding their service portfolios, geographical coverage, and IT capabilities to anticipate and meet the unique and diverse demands of their transportation customers. Second, we canvassed the shipper community, asking them to identify and comment on the challenges they face in today’s market, as well as the opportunities that have surfaced in a buyer’s market and how they are harnessing their carrier and intermediary partnerships to drive transportation innovation and effi - ciency within their respective enterprises. Complementing this end-to-end panorama of the U.S. domestic freight market is our annual Top 100 Motor Carriers list. This in-depth “who’s who” database of U.S.

Figure 1. Truckers provide varied services

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58 Inbound Logistics • September 2007 NO TWO SUPPLY CHAINS ARE ALIKE. THAT’S WHY WE APPROACH THEM ALL THE SAME WAY.

First, we get busy analyzing the way your goods and information ﬂow from here to there. Then we determine what, if anything, can be improved. Then, we improve it. Whatever the challenge, if it involves transporting goods across town, cross-country, or overseas, we’ll partner with you and together we’ll create solutions for your supply chain that are uniquely yours.

When pre-packaged solutions just won’t do, think red instead.

1-800 AVERITT www.averittexpress.com

> For case studies and more, visit www.averittexpress.com/ﬂexible/ib

THINK RED INSTEAD TRUCKING PERSPECTIVES 2007

over-the-road freight carriers presents a Figure 2. How carriers communicate Figure 3. How carriers capture track snapshot of the industry’s leading players, with drivers and trace information as well as a benchmark for the services and capabilities transportation buyers /( need to consider when looking for new .' partners or evaluating current ones. -/ -' -' -( CARRIER PERSPECTIVES ,' ,' Concurrent with last year’s data, +' +' +* shippers continue to dictate how car- */ riers go to market and expand existing *' *' service portfolios with innovative tech- )' )' nologies, logistics capabilities, and new (. (. coverage areas. Unlike 2006, however, (' (' motor freight companies have con- - siderably less leverage passing along I=@; fuel surcharges and other operating :GJ#\kZ%

As a result, over-the-road carri- SOURCE: Inbound Logistics Motor Freight Market Insight Survey, 2007 ers have been looking to expand their businesses. Across the board, an noting “increasing insurance costs and proposition beyond the norm. For overwhelming majority of trucking liabilities,” and 21 percent saying “new trucking companies that are specifi cally companies indicate they increased equipment mandates.” That carriers face trying to keep current shipping clients sales – 48 percent show an increase of increased pressures from competitors is happy, the need to grow and expand fi ve percent, and 26 percent show an quite clear, but smaller players with less service offerings is obligatory. increase of 10 percent. Freight carriers clout are fi nding the marketplace espe- To point, 81 percent of carriers polled are expanding their sales initiatives by cially diffi cult to navigate. provide truckload services, with nearly targeting new customers, with 70 per- Smaller carriers and owner opera- half offering LTL competencies as well cent indicating they grew their client tors have traditionally had less leverage (see Figure 1, page 58). As the diffi culties roster by at least fi ve percent (see Figure passing along fuel-related costs to their in managing end-to-end supply chains 6, page 64). customers. In today’s marketplace and become more challenging to shippers, What is striking, however, given the unlike their customers, they have even carriers are developing their capabilities efforts carriers are making to sell their fewer options. beyond just transportation. Value-added services to new customers, is how lit- When capacity was lean and truck offerings such as logistics services are tle they are recouping in terms of net rates were high, shippers invariably increasingly important to logistics-savvy profi t. The costs of operating in a soft played the “partnership” card to facili- shippers and consignees, and carriers are buyer’s market, and increased com- tate and manage these diffi culties. But meeting the challenge, with 64 percent petition among carriers, resulted in a now that capacity is fl ush, they are turn- reporting capabilities in this niche area. considerable discrepancy on the balance ing to the carriers that offer the lowest The obstacles of operating in a global sheets – only 16 percent of respondents rates – which places additional pressures marketplace, specifi cally the demand indicate revenue surpassing fi ve percent, on smaller players without the critical placed on businesses in the last few and a whopping 63 percent report break- mass and leverage of big carriers. As years to fi nd alternative strategies and even numbers or profi t loss. one trucking company executive com- means to deliver product reliably and Carriers cite myriad reasons for these mented: “Freight levels are the lowest economically, has forced motor freight increased operating expenses, with 74 we’ve seen in years. It’s just not there.” companies to expand their service percent indicating “rising driver-related While pricing has become increas- offerings in niche transport respon- costs,” 79 percent saying “price pressure ingly important to savvy shippers, sibilities as well. Shippers are turning from customers/competition,” 53 per- carriers are perhaps challenged even to intermodal solutions, mixing rail, cent citing “rising fuel costs,” 53 percent more with expanding their value road, and water services where possible

60 Inbound Logistics • September 2007 07 PE ES TRUCKING PERSPECTIVES 2007

to achieve better value. Carriers are information and resources. Figure 5. responsive to these needs, with 41 per- According to our polling, 76 percent Did you cent providing intermodal capabilities. of carriers offer Web-based track and switch P\j% carriers +)%0 One way carriers offset pricing pres- trace capabilities; more than half pro- recently? Ef% sure is to leverage their IT capabilities to vide activity management reports and SOURCE: Inbound ,.%( enhance value for existing and prospec- online claims filing; and 44 percent Logistics Motor Freight Market tive customers. Transportation buyers have pricing and routing information Insight Survey, 2007 understand the pricing pressures truck- on their Web site. ing companies face with increased Following on a trend seen elsewhere move product inbound from Asia. competition, but will still want more in the logistics and transportation As a result, the importance of coordi- “bling for their buck.” sectors, carriers are still overwhelm- nating freight transportation between And given the democratization of ingly wary about investing in RFID Canada, the United States, and Mexico Internet technology, small and large technology, with only 11 percent has only increased. Among carriers sur- carriers alike can leverage savvy invest- of respondents acknowledging sup- veyed, 32 percent operate throughout ments in communication and data North America, with 35 percent serving capture hardware and necessary back- Figure 4. the United States only, 25 percent target- Which is more important to you, your end systems to interface with in-cab relationship with your carrier or with ing the United States and Canada only, systems and create a better network for your broker/intermediary? and 1 percent offering service between sharing and communicating real-time the United States and Mexico only. shipment data. Compared to past years, there appears In terms of communicating with to be more parity among carriers serv- truck drivers, cell phones are all the :Xii`\i ing these niche geographic regions. -)%/ rage with 81 percent of respondents Of the surveyed carriers who serve reporting their use, while satellite text the United States only, 58 percent (61 percent), cellular text (38 percent),

62 Inbound Logistics • September 2007 07 PE ES TRUCKING 0 PERSPECTIVES P 2007 E

partner carriers, or ﬁ nd brokers capable Figure 6. Reported increases in sales Shippers identified numerous rea- of managing negotiations and arrange- and customers, 2006 sons for switching carriers, including: ments on their behalf. ■ Failure to live up to contract terms Perhaps resisting the urge to add J8C

64 Inbound Logistics • September 2007 ISO 9001:2000 CERTIFIED

Universal Truckload Services

sA recognized leader in the transportation industry

TRUCKLOAD SERVICES sTransportation and logistic services within the Specialized logistics solutions based on the unique handling United States, Canada, and Mexico and scheduling demands of manufacturers. Current fleet features flatbeds, vans, hotshots, and equipment operating in heavy haul and overdimensional business. sUniversal Truckload Services (NASDAQ-UACL) provides solutions for truckload customers, BROKERAGE SERVICES brokerage, and intermodal, both domestic and Freight Brokerage to carrier network throughout the U.S.A. international Our agents offer freight solutions to third party transportation providers, shipper owned and operated private fleets, as well as motor carrier fleets. WAREHOUSING SERVICES INTERMODAL SUPPORT Working directly with our customers, our ware- Storage, repair, and maintenance services for international housing solutions include inventory management customers through various U.S. ports and cities. Local and activities to support customer-specific manufactur- over-the-road transport provided for delivery to rail and ing or distribution requirements. Cross-docking and steamship containers at railhead or port. other value-added services also available.

Call toll-free 800-233-9445 or 586-920-0154 or visit www.goutsi.com

The Group operates under the brand names CrossRoad Carriers, Economy Transport, Great American Lines, Louisiana Transportation, Mason Dixon Lines, Mason Dixon Intermodal, NYP & Associates and Universal Am-Can. Universal Truckload Services offers transportation and logistics solutions throughout its network of carriers from local, regional, national, and international markets. INBOUNDTRUCKING LOGISTICS RFP/RFI 2007

Searching for trucking alternatives, or want to open a dialog with a quality carrier on a strategic level? Need extra capacity from time to time, or just longing for a long-term relationship with a carrier partner providing stability and reliability? Or maybe you need a solid regional performer that can plug into your existing network and still give you the pipeline visibility you are used to. Inbound Logistics’ Trucking RFP/RFI can help. What is the Trucking RFP/RFI? It’s your opportunity to have motor freight experts FAX TO THESE LEADERS look at your specifi c trucking challenges and needs, and give you free, no-obligation advice, solutions, and information specifi c to your request. You’ll get information AT 212-629-1565 not about the companies listed here, but about solutions to the specifi c challenges ❑ AFN—Advantage Freight Network you describe in the space below. Ask your questions, you’ll get answers. ❑ Averitt Express Your request is totally confi dential. Fax this RFP/RFI to Inbound Logistics at ❑ Bilkays 212-629-1565. For faster service, you can make your request online: www.inboundlogistics.com/rfp. ❑ Con-Way Freight ❑ Covenant Transport ❑ CRST NAME TITLE ❑ Dart Advantage

COMPANY ❑ FedEx ❑ FMI International ADDRESS ❑ Jevic Landair CITY, STATE, ZIP ❑ ❑ Landstar Global Logistics PHONE FAX ❑ Lily Transportation ❑ Lynden E-MAIL ❑ National Retail Systems ❑ Old Dominion Freight Line My motor freight challenge is: (attach separate sheet if necessary) ❑ Panther Expedited Services ❑ Penske Logistics ❑ Ryder ❑ Ruan ❑ Schneider National ❑ Universal Truckload Services ❑ Velocity Express ❑ Werner Enterprises

What if no one took the road less

CHARLES traveled? GOODYEAR

Charles Goodyear’s ingenuity and steadfast resolve resulted in the re-invention of the wheel. At Penske, we approach logistics management with that same dedication, and we’re fueled by a determination to help you achieve profitable growth. So from transportation management to integrated logistics, we’re always looking ahead, seeking new ways to find even greater efficiencies in our clients’ supply chains. To see how our dedication has helped others profit, visit PenskeLogistics.com. TOP 100 MOTOR TECHNOLOGY SERVICES

PPRIMARYRIMARY TTYPESYPES OOFF SSERVICEERVICE

CCOMPANYOMPANY NNAMEAME OOPERATINGPERATING

WWEBEB AADDRESSDDRESS PPHONEHONE AAREA(S)REA(S) LTL Truckload Package Expedited Services Logistics DCC .875Intermodal in Goods Household Bulk Carrier Vehicle Motor Refrigerated Car Tank Glove White Final Mile SPECIALIZATION

A. Duie Pyle 800-523-5020 US/Canada only ●● ●● www.pyleco.com 1 AAA Cooper US only ●● www.aaacooper.com 334-671-3153

ABF Freight System North America ●● ●● ●●● ●●●● www.abf.com 479-785-8700

Advantage Transportation North America ●● ●●●● ●●● www.backhauler.com 800-964-1209

Alvan Motor Freight US/Canada only ● www.alvanmotor.com 800-632-4172

Anderson Trucking Service North America ● ●●● www.ats-inc.com 800-328-2307

Arnold US only ● www.arnoldtrans.com 800-285-1810

Arrow Trucking Co. North America ● ●●● ●● www.arrowtrucking.com 800-759-2009

Averitt Express North America ●●●●●●● ● www.averittexpress.com 800-283-7488

Barr-Nunn Transportation US only ●●● www.barr-nunn.com 515-371-2252

Bison Transport North America ●●●●●●●●●● www.bisontransport.com 800-GOBISON

Boyd Bros Transportation US/Mexico only ● ●●● www.boydbros.com 800-633-1502

Bulkmatic Transport Co. North America ● www.bulkmatic.com 219-972-7630

Cardinal Logistics US/Canada only ●● ● www.cardlog.com 704-786-6125

Cargo Transporters US only ● www.cgor.com 828-459-3206

Carlile US/Canada only ●●●●●●●●●●●● www.carlile.biz 253-874-2633

Celadon Trucking Services North America ●●● www.celadontrucking.com 800-CELADON

Central States Trucking Co. US only ●●●● www.cstruck.com 630-595-9876

Challenger Motor Freight North America ●● ●●●● ● www.challenger.com 800-265-6358

Con-way Freight North America ●● www.con-way.com/freight 734-769-0203

© 2007 Inbound Logistics 68 Inbound Logistics • September 2007 CARRIERS 2007 TTECHNOLOGYECHNOLOGY SSERVICESERVICES DRIVER VISIBILITY ONLINE / WEB PRIMARY TYPES OF SERVICE COMMUNICATION CAPTURE SERVICES * CLAIMS RATIO Net claims payout divided by total revenue * FLEET SIZE Tractors only, does not include trailers DNR Did Not Report

CELLULAR SATELLITE

COMPANY NAME OPERATING CLAIMS ON-TIME FLEET NUMBER OF UNION PUBLIC OR Cell Phone Cell Satellite Codes Bar RFID Track/Trace Web Alerts E-mail Pricing/Routing Web Tools Web Logistics Codes Bar SKU/Pallet WEB ADDRESS PHONE SSPECIALIZATIONPECIALIZATION RATIO RATIO * DELIVERY SIZE * TERMINALS STATUS PRIVATE Voice Text Voice Text

Industrial & chemical DNR .34% 99.2% 635 14 N PRIV ●● ● ●●●●

Regional LTL 94.3% .61% 97.0% 2,200 81 N PUB ●● ●●●●

National & international 92.5% .93% DNR 4,000+ 290 U PUB ●●●● transportation solutions

Third-party logistics DNR 2% 98.6% DNR 27 N PRIV ●● ●●● ●●●●

Industrial & commercial 99.0% .26% 98.8% 375 14 U PRIV ●● ● ●●●●●

Dry van, pad wrap, ﬂ atbed, 92.0% DNR DNR 1,200 8 N PRIV ● ● ●●●● furniture consolidation

Regional & dedicated TL DNR .01% 98.0% 1,550 6 N PUB ●●●● services

Oilﬁ eld and oilﬁ eld-related 97.0% DNR DNR 1,400 6 N PRIV ● ● ● ●●● products

All markets DNR DNR DNR 4,300 100 N PRIV ● ●● ●●●●

Dry van freight – consumer 91.0% DNR 99.0% 680 3 N PRIV ●●●●● products, building materials

Paper, refrigerated & dry 94.0% .38% 96.0% 900 5 N PRIV ● ●●●● ●●● goods

Steel, building materials, 93.0% .80% 99.5% 1,006 6 N PRIV ●●●●●● cable, pipe, tubing, lumber

Rail-to-truck transfer 95.4% 1% 95.0% 473 42 N PRIV ●● ●

Dedicated, warehousing, 94.0% .30% 99.5% 1,802 124 N PRIV ●●●●●●● ●● ●● technology, logistics mgmt.

Dry van 98.0% DNR 98.0% 450 1 N PRIV ●● ●●

Transportation 95.0% <0.5% 95.0% 200+ 10 N PRIV ●●●●●●● ●●●●●

Transportation to/from 92.0% DNR 98.0% 2,900 15 N PUB ●●●●●● Mexico

FAK DNR DNR 96.0% 200 2 N PRIV ●● ●

Consumer goods, auto parts, DNR .92% 98.5% 1,500 6 N PRIV ● ● ●●●●● food & beverage, hazmat

DNR 95.0% .97% 98.0% 7,786 460 N PUB ● ● ● ●●●●

Information supplied by trucking companies. Where data was not provided, historical and web site information was used. September 2007 • Inbound Logistics 69 TOP 100 MOTOR TECHNOLOGY SERVICES

PPRIMARYRIMARY TTYPESYPES OOFF SSERVICEERVICE

CCOMPANYOMPANY NNAMEAME OOPERATINGPERATING

WWEBEB AADDRESSDDRESS PPHONEHONE AAREA(S)REA(S) LTL Truckload Package Expedited Services Logistics DCC Intermodal Goods Household Bulk Carrier Vehicle Motor Refrigerated Car Tank Glove White Final Mile SPECIALIZATION

Covenant Transport Group US only ● ●●● ● www.covenanttransport.com 800-974-8332

CR England US only ●● ● ● www.crengland.com 801-972-2712

Crete Carrier Corporation North America ●● www.cretecarrier.com 800-998-8000

CRST International North America ●●● www.crst.com 800-204-9607

Daily Express US/Canada only ● www.dailyexp.com 800-733-2459

Dart Transit US only ●●●● www.dart.net 800-366-9000

Daylight Transport North America ●●● www.dylt.com 800-468-9999

Dayton Freight Lines US/Canada only ●●● www.daytonfreight.com 937-415-1715

Epes Carriers US only ●● ●●● ● www.epescarriers.com 336-665-1553

Estes Express Lines International ● ●●●● ●● www.estes-express.com 804-353-1900

Evans Network of Companies US only ●●●● ● www.evansdelivery.com 570-385-9048

FedEx Custom Critical US/Canada only ●●● customcritical.fedex.com 800-762-3787

FedEx Freight International ●●● ● www.fedex.com 866-393-4585

FedEx Ground North America ● www.fedex.com 800-GO-FEDEX

FFE Transportation Services North America ●● ●●● ● www.ffeinc.com 800-569-9200

FLS Transportation Services US/Canada only ●●●● ● www.ﬂ stransport.com 800-739-0939

FST Logistics US only ● ●●● ● ● www.fstlogistics.com 614-529-7900

Gainey Corporation US/Canada only ●● ●● www.gaineycorp.com 800-859-4072

Givens Transportation US only ● ●●●● www.givens.com 800-446-8195

Gordon Trucking US/Canada only ●●●●● ● www.gordontrucking.com 800-426-8486

© 2007 Inbound Logistics 70 Inbound Logistics • September 2007 CARRIERS 2007 TTECHNOLOGYECHNOLOGY SSERVICESERVICES DRIVER VISIBILITY ONLINE / WEB PRIMARY TYPES OF SERVICE COMMUNICATION CAPTURE SERVICES * CLAIMS RATIO Net claims payout divided by total revenue * FLEET SIZE Tractors only, does not include trailers DNR Did Not Report

CELLULAR SATELLITE

Food & beverage, paper & 98.3% .18%97.0%3,675 11 N PUB ●●●●●● packaging, manufacturing

Refrigerated truckload DNR DNR DNR 2,600 6 N PRIV ● ●●● ●●●● shipments

Dry van freight services 93.3% DNR DNR 3,900 22 N PRIV ●●

Expedited, steel, brokerage DNR .45% 98.0% 3,333 17 N PRIV ●●●● ● ●● ●

Construction, energy, farm 92.5% 1.4% 98.5% 350 11 N PRIV ●● ● ●

General commodities, retail, 95.7% 1.7% 98.5% 2,800 5 N PRIV ● ● ● ●●●● personal products

Consumer electronics 91.8% .01%97.6% DNR 3 N PRIV ●● ●●●● ●●●●●

General commodities 89.6% .40% 98.5% 900 40 N PRIV ●●●●●●● ●●●●

Truckload 94.4% DNR DNR 1,200 10 N PRIV ●●

All services DNR DNR 97.6% 6,329 186 N PRIV ● ● ● ●●●●●

Containerized freight DNR DNR 98.5% 1,350 65 N PRIV ●

Expedited, general DNR DNR 98.0% 1,400 DNR N PUB ●● ● ● ●●●● commodities, hazmat

LTL DNR DNR DNR 14,000 470 N PUB ●● ●●●●●

Small package 85.5% DNR DNR 2,800 500 N PUB ●●●

Refrigerated 94.2% .20% 97.0% 1,600 21 N PUB ●● ● ● ●●●●

Retail, paper, steel, auto, DNR .01% 99.2% 385 17 N PRIV ●● ●●● ●●●●●● CPG

Pharmacueticals, retail, 93.6% .30%97.4% 105 4 N PRIV ●● ● ● ●●●●● foodstuffs

Blanket wrap, dry van, 93.6% .001% 97.8% 2,200 12 N PRIV ●● ●●● ﬂ atbed, refrigerated

Mass merchandising, DNR .60% 99.1% DNR 3 N PRIV ●● ●●● automotive

Consumer goods, paper, DNR .10% 96.0% 1,400 7 N PRIV ●●●●● building materials

Information supplied by trucking companies. Where data was not provided, historical and web site information was used. September 2007 • Inbound Logistics 71 TOP 100 MOTOR TECHNOLOGY SERVICES

PPRIMARYRIMARY TTYPESYPES OOFF SSERVICEERVICE

CCOMPANYOMPANY NNAMEAME OOPERATINGPERATING

Groendyke Transport North America ● www.groendyke.com 800-843-2103

Heartland Express US only ● www.heartlandexpress.com 800-451-4621

Highland Transport US/Canada only ●● www.highlandtransport.com 905-513-2014

Interstate Distributor Co. North America ● ●●●● ● www.intd.com 800-426-8560

J.B. Hunt Transport Services North America ●● ● www.jbhunt.com 800-643-3622

Jevic Transportation US/Canada only ●● www.jevic.com 888-GOJEVIC

KLLM Transport Services North America ●●●● www.kllm.com 800-925-5556

Knight Transportation US only ●● ● www.knighttrans.com 602-269-2000

Landstar North America ● ●●●● ●●● www.landstar.com 800-872-9400

Lily Transportation US only ●● www.lily.com 800-248-5459

Lynden Transport US/Canada only ●●● www.lyndentransport.com 206-575-9575

Marten Transport US/Canada only ●●●● ●● www.marten.com 800-395-3000

May Trucking Co. US only ●● ● www.maytrucking.com 800-547-9169

Mayﬂ ower Transit International ●●●● ● www.mayﬂ ower.com 800-283-5732

Megatrux Transportation North America ●●●● www.megatrux.com 909-652-5035

Melton Truck Lines North America ● www.meltontruck.com 918-234-8000

Mercer Transportation US/Canada only ● www.mercer-trans.com 800-626-5375

Milan Express US/Canada only ●●● www.milanexpress.com 731-686-7428

Miller Transporters US/Canada only ● www.millert.com 601-922-8331

National Retail Systems International ● ●●●● ● www.nrsonline.com 877-345-4NRS

© 2007 Inbound Logistics 72 Inbound Logistics • September 2007 CARRIERS 2007 TTECHNOLOGYECHNOLOGY SSERVICESERVICES DRIVER VISIBILITY ONLINE / WEB PRIMARY TYPES OF SERVICE COMMUNICATION CAPTURE SERVICES * CLAIMS RATIO Net claims payout divided by total revenue * FLEET SIZE Tractors only, does not include trailers DNR Did Not Report

CELLULAR SATELLITE

Petroleum, chemicals, acids DNR DNR 99.8% 982 34 N PRIV ●●

Consumer goods, retail, 78.2% .003% 98.5% DNR 11 N PUB ●● ● food, paper/plastic

General freight, automotive, DNR DNR 98.0% 600 5 Both PRIV ●●●●●● ●●●● beverages, chemicals

Specialized services DNR DNR DNR 2,500 10 N PRIV ●● ●

Retail, food & beverage, 88.8% .32%99.0%12,000 21 N PUB ● ● ● ●●●●● building materials

Manufacturing, chemical/ DNR .005% 98.0% 1,200 11 N PRIV ●● ●●● ●●●●● hazmat, retail, trade show

Perishables, low-altitude DNR DNR 98.0% 1,800 7 N PRIV ●● routing

General commodities 79.0% DNR 98.3% 3,661 35 N PUB ●● ●●

Manufacturing, retail, 92.4% DNR DNR 9,205 DNR N PUB ●● ●●● ● distributors/wholesale

Leasing, equpment rental DNR DNR DNR DNR DNR N PRIV ●● ●

Retail, oil ﬁ eld, building DNR <.01% 85.0% 150 21 Both PRIV ●● ●●●●● materials

Food & beverage, 92.1% .60% 98.0% 2,552 5 N PUB ●●●●●● pharmaceutical

High-cube dry vans, DNR 1.25% 98.0% 925 6 Both PRIV ●● ●●● refrigerated ﬂ eets

Pad wrap, high-value, trade 92.2% .29% 99.9% DNR 417 Both PRIV ●●●● ● ●● ● show/exhibit, artwork

General commodities 90.0% 1%99.0%225 8 N PRIV ●●●●●●●●●●●●●

Steel, HVAC, building DNR .001% 98.0% 1,000 6 N PRIV ●●●●● materials

Building materials, metal 93.4% .004% 98.1% 2,012 85 N PRIV ●● ● products, machinery

General LTL 97.5% 1.25%97.8% 1,200 37 N PRIV ●●●●●

Bulk 98.3% .01% 99.1% 410 17 Both PRIV ●● ●●

Retail DNR .50% 99.0% 2,200 31 Both PRIV ●●●●●●● ●● ●●

Information supplied by trucking companies. Where data was not provided, historical and web site information was used. September 2007 • Inbound Logistics 73 TOP 100 MOTOR TECHNOLOGY SERVICES

PPRIMARYRIMARY TTYPESYPES OOFF SSERVICEERVICE

CCOMPANYOMPANY NNAMEAME OOPERATINGPERATING

New Century Transportation US/Canada only ●●● ● www.nctrans.com 609-265-1110

New Penn US/Canada only ●● www.newpenn.com 800-285-5000

NFI National Freight US/Canada only ●●● ● www.nﬁ industries.com 800-922-5088

Oak Harbor Freight Lines US only ● www.oakh.com 253-288-8300

Old Dominion Freight Line North America ●● ●● ● ● www.odﬂ .com 800-235-5569

Panther Expedited Services North America ●● www.pantherexpedite.com 800-685-0657

Paschall Truck Lines US/Mexico only ●● www.ptl-inc.com 800-626-3374

Penske Logistics International ● ●●●●●●● ●● www.penskelogistics.com 800-221-3040

Pitt Ohio Express US only ●● www.pittohio.com 412-232-3015

Prime Inc. North America ● ●●● ● ●● www.primeinc.com 800-848-4560

Quality Distribution North America ● www.qualitydistribution.com 800-282-2031

R&L Carriers North America ●●● www.gorlc.com 800-543-5589

Roadway North America ●●● ●●● www.roadway.com 800-257-2837

Roehl Transport US/Canada only ● www.roehl.net 800-826-8367

Ruan North America ●● ● ● www.ruan.com 866-RUAN-NOW

Ryder North America ● ●●●●●●● ● ● www.ryder.com 888-887-9337

Saia US only ●● www.saia.com 800-765-7242

Schneider National North America ●●●● ● ● www.schneider.com 800-558-6767

Shevell Group US/Canada only ● ●●● www.shevellgroup.com 908-965-0100

Southeastern Freight Lines US only ●● www.seﬂ .com 800-637-7335

© 2007 Inbound Logistics 74 Inbound Logistics • September 2007 CARRIERS 2007 TTECHNOLOGYECHNOLOGY SSERVICESERVICES DRIVER VISIBILITY ONLINE / WEB PRIMARY TYPES OF SERVICE COMMUNICATION CAPTURE SERVICES * CLAIMS RATIO Net claims payout divided by total revenue * FLEET SIZE Tractors only, does not include trailers DNR Did Not Report

CELLULAR SATELLITE

Chemicals, foodstuffs, 92.5% .26% 98.0% 1,200 3 N PRIV ● ● ● ●●●● consumer commodities

Industrial, retail, hazmat, 94.2% DNR DNR 1,000 25 U PUB ●● ● ● ●●●● freezables

Food & beverage, retail DNR .001% 98.2% 2,762 30 N PRIV ●●●● ●●●

General commodities 98.0% .90% 97.9% 550 33 Both PRIV ● ● ●●●●●

LTL 90.3% 1% 97.8% 4,527 178 N PUB ●●●●●●●

Expedited & elite services 94.0% 1% 98.9% 500 DNR N PRIV ●●●●●●

Dry van 95.3% 0.10% 96.2% 1,390 6 N PRIV ●● ●●

Auto, chemical, pharma/ DNR DNR DNR 2,200 DNR Both PRIV ●●●●●● ●●●●● healthcare, electronics

Wholesale non-durable 94.5% .64% 98.0% 679 21 N PRIV ●● ● ●●●●● goods, general commodities

Refrigerated, ﬂ atbed, tanker 88.6% 1%98.7%2,427 3 N PRIV ● ●●● ●

Liquid & dry bulk 93.8% .80% 98.0% 3,500 160 Both PUB ●● ●●● ●●●●

Hazmat, express jet DNR DNR DNR 13,000 DNR N PRIV ●● ●● ●●●

Manufacturing, retail, gover- DNR DNR DNR 8,500 340 U PUB ●● ●● ●●●● nment, exhibit/trade show

Building, metal & paper 92.8% .01%98.4%1,850 10 N PRIV ●● ●● products, retail

Retail, manufacturing, food DNR DNR 99.4% 3,984 150 Both PRIV ●● ●●● ●● ●● & grocery, metals

3PL and supply chain DNR DNR DNR 56,100 821 Both PUB ●●●●●● ●● ●● management

General commodities 95.9% .40% 96.0% 3,392 151 N PUB ●● ● ● ●●●●●

Retail, manufacturing, bulk DNR DNR 97.0% 15,500 15 Both PRIV ●●● ●●●●● specialty chemicals

Retail, electronics, manufac- DNR .09% 98.0% 3,040 34 Both PRIV ●● ● ● ●●●●● turing, chemicals

General commodities 91.0% .77% 98.6% 2,400 74 N PRIV ● ● ●●●●●

Information supplied by trucking companies. Where data was not provided, historical and web site information was used. September 2007 • Inbound Logistics 75 TOP 100 MOTOR TECHNOLOGY SERVICES

PPRIMARYRIMARY TTYPESYPES OOFF SSERVICEERVICE

CCOMPANYOMPANY NNAMEAME OOPERATINGPERATING

Standard Forwarding US only ● www.standardforwarding.com 800-447-2012

Stevens Transport North America ●● www.stevenstransport.com 972-216-9000

Superior Bulk Logistics North America ●●● ● www.superiorbulklogistics.com 800-654-7707

Swift Transportation North America ● ●●● ● www.swifttrans.com 602-269-9700

Transport Corp. of America North America ●●●●●● ● www.transportamerica.com 651-686-2500

Trimac Transportation North America ● www.trimac.com 800-877-9374

U.S. Xpress North America ● ●●●● www.usxpress.com 423-510-3000

United Van Lines International ● ●●●●●●●●● ●● www.unitedvanlines.com 800-283-5749

Universal Truckload Services North America ●●● ● www.goutsi.com 586-920-0154

UPS Freight North America ● ●●●● www.upsfreight.com 800-333-7400

USA Truck North America ●● www.usa-truck.com 800-USA-TRUCK

USF Glen Moore North America ●● www.usfglenmoore.com 800-848-9695

USF Holland US/Canada only ●● www.usfholland.com 800-456-6322

USF Reddaway North America ●● www.usfreddaway.com 800-395-7360

Vitran Corporation US/Canada only ●●●● ● www.vitran.com 416-798-4965

Ward Trucking US only ●●● www.wardtrucking.com 800-458-3625

Werner Enterprises North America ●●●● ● www.werner.com 402-895-6640

Willis Shaw Logistics US only ●● ● www.willisshaw.com 479-248-7261

Wilson Trucking US only ●●●● www.wilsontrucking.com 540-949-3200

Yellow Transportation North America ●●● ●●● www.myyellow.com 800-610-6500

© 2007 Inbound Logistics 76 Inbound Logistics • September 2007 CARRIERS 2007 TTECHNOLOGYECHNOLOGY SSERVICESERVICES DRIVER VISIBILITY ONLINE / WEB PRIMARY TYPES OF SERVICE COMMUNICATION CAPTURE SERVICES * CLAIMS RATIO Net claims payout divided by total revenue * FLEET SIZE Tractors only, does not include trailers DNR Did Not Report

CELLULAR SATELLITE

Manufacturing 96.6% .03% 99.0% 350 15 U PRIV ● ● ●●●●●

Irregular route refrigera- DNR DNR DNR 2,100 14 N PRIV ●● ● ●● ted TL

Chemicals, food grade bulk DNR DNR 98.4% 1,200 52 Both PRIV ●●●● commodities

Truckload 90.7% .50% 97.5% 18,044 35 N PUB ●● ●●●

Grocery products, home/ 96.2% .01% 98.4% 1,421 12 N PRIV ●●●●●● ofﬁ ce furniture & supplies

Chemicals, industrial gases, 94.6% .10% 98.9% 3,800 110 Both PRIV ●●●● cement, sand, coal

TL, time-deﬁ nite delivery, 95.5% .09% 98.0% 7,698 12 N PUB ● ● ● ●●●●● FAK

Household goods, DNR DNR 99.8% DNR 450 Both PRIV ●●●●● high-value, trade show

Steel, machinery, furniture, DNR DNR DNR 4,000 764 N PUB ● ●●●● ● auto parts

General commodities DNR 1.50%97.0% 6,211 204 Both PRIV ● ●●●●

Truckload DNR DNR DNR 2,400 7 N PUB ●● ● ●●●●

General, industrial, hazmat 94.2% DNR DNR 850 2 N PUB ●● ●● ●● ●

Industrial, retail, hazmat, 94.2% DNR DNR 5,400 80 U PUB ●● ● ● ●●●● freezables

Industrial, retail, hazmat, 94.2% DNR DNR 2,200 91 Both PUB ●● ● ● ●●●● freezables

LTL, logistics 94.7% DNR 97.7% 2,292 127 N PUB ●● ● ●●●●●●●

All 95.0% .50% 98.0% 600 22 N PRIV ●●●●●● ●●●●●

General commodities 89.7% <1%99.0%9,000 12 N PUB ● ●● ● ●●●●●

Refrigerated, frozen food DNR .19% 97.2% 710 4 N PRIV ●●

General commodities DNR .68% 99.3% 1,100 43 N PRIV ● ● ● ●●●●

Manufacturing, retail, gover- DNR DNR DNR 9,000 336 U PUB ●● ●● ●●●● nment, chemical/hazmat

Information supplied by trucking companies. Where data was not provided, historical and web site information was used. September 2007 • Inbound Logistics 77 The cost-savings beneﬁ ts of outsourcing freight bill payment and audit are well-documented. But it’s the decision-support data these third parties provide that delivers the real payoff. GO FIGURE! Freight Payment Services

hippers say it costs an average of $10 to process a Third Party Logistics Study by Capgemini. That percentage will freight bill internally, according to an Aberdeen grow as shippers catch on to the impact such value-added Group report, Winning Strategies for Transportation services have on their business, predicts Clifford Lynch, Procurement & Payment, February, 2007. author, consultant, and principal of C.F. Lynch & Associates. A freight payment outsourcer can do it for one- Providers are racing to compete on the sophistication of their tenth that amount. technology and the insights it can provide. SThat no-brainer math has been a major reason shippers turn to freight payment providers to handle bill auditing and Mining for Minutiae payment. Such activity falls outside most shippers’ core com- To a billing clerk, the occasional address correction fee from petency and requires considerable staff. a parcel carrier may not be particularly noticeable. But a well- But it’s the ability to provide information, not just reduce oiled analysis tool may turn up the fact that a bad customer ZIP overhead, that’s currently driving growth in the freight pay- code is amounting to thousands of dollars each month in fees. ment outsourcing industry. “Those details fall through the cracks unless thorough “It’s more about providing business analytics,” says Adrian analysis uncovers them,” says Gonzalez. Gonzalez, director, Logistics Executive Council, for ARC Or, analysis may uncover potential economies by scrutiniz- Advisory Group. “Through the use of spreadsheets and ing trafﬁ c lane patterns for truckload shipments. Shipment online tools, freight payment companies provide good busi- data analysis can uncover new cost-cutting opportunities ness analytics to shippers, enabling them to look at how their and drive future procurement and contracting activities. costs break down and where variability is coming from.” Respondents to the Aberdeen Group Winning Strategies sur- Approximately 55 percent of shippers currently outsource vey say they want “better quality information and improved to freight payment providers, according to the 11th Annual visibility to exact audit and payment criteria from their

78 Inbound Logistics • September 2007 SPECIAL ADVERTISING SUPPLEMENT

Add Up

outsourcing providers.” Companies report they can shave an event management, shipment tracking, pre- and post-freight average of 8.8 percent off their overall freight budget by using bill audit, claims management, and load optimization, as well a more sophisticated procurement or payment/audit system, as benchmarking, modeling, and dashboards. Freight pay- whether in-house or outsourced, according to the report. ment providers can make real-time data available via a Web Leading freight payment providers are investing in pow- portal, and integrate with shippers’ back-end systems. erful transportation management systems and other tools that they can provide piecemeal to shippers as they need The Right Formula it. “With this approach, shippers don’t have to invest in 10 Shippers use freight bill providers in myriad ways. Some applications when they only need two,” says Lynch. “Freight combine their services with internal capabilities, and those payment providers can offer a menu of modules,” with of 3PLs and other supply chain providers, to hit on the right charges built into shippers’ transaction fees. formula for cost cutting and control. While some shippers have begun to invest in their own Even those companies that have moved to self-payment of freight transportation management systems and brought freight bills – negotiating rates with carriers and generating freight bill payment in-house, others are ﬁ nding a better their own payments based on proof of delivery rather than value in purchasing transportation management services waiting for an invoice – are using freight payment provid- à la carte, or combining an in-house TMS with outsourcing ers to make the calculations or to generate the check. Freight for the back end of the transportation cycle. payment outsourcers run the gamut from small shippers to A freight payment/supply chain provider’s value-added multinational ﬁ rms, and across all vertical markets. information services may include freight data consolidation, “Unlike other logistics services, outsourcing freight pay- EDI, manual entry, imaging, freight bill processing, bill conver- ment demonstrates a clear return on investment,” says gence, dispute resolution, carrier selection, order management, Lynch. “As industry tries to get more lean, freight bill

September 2007 • Inbound Logistics 79 GO FIGURE! SPECIAL ADVERTISING SUPPLEMENT Freight Payment Services Add Up

payment is one place they can look.” business, check out their fi nancial sta- can furnish the reporting and analysis Maximizing the benefits freight bility, and make sure they’re able to tools they’re seeking. payment providers can offer, however, operate in the different regions your Moving from paper-based to EDI and requires diligence on the part of the company operates in,” says Gonzalez. other electronic freight bill payment shipper. A rash of bankruptcies and He also advises talking to current cus- processes also helps boost payment less-than-honorable business practices tomers who can point to real benefi ts. accuracy and reduce the administra- uncovered in 2003 left some wary of Even shippers who process their own tive load, no matter who handles the trusting third parties with their freight freight bills are beginning to turn to out- payment reconciliation process. payment cash, but it also served to sourcers who can demonstrate secure “The learning curve is still moving in weed out poorly managed operations, process controls to ensure Sarbanes- this industry,” says Lynch. “Many com- notes Lynch. Oxley compliance. “Shippers need a panies are just now catching on to the Still, shippers are advised to thor- clear and accurate picture of fi nancial advantages of outsourcing freight bill oughly vet potential freight bill accounting,” says Gonzalez. “It’s crucial payment and audit.” payment partners. for compliance.” Still not convinced? The follow- “I recommend that shippers research Technology offerings vary among ing case studies illustrate the benefi ts their potential partner’s experience and freight bill payment providers, so ship- that leading freight payment providers the resources they have to support the pers must ensure their chosen partners bring to outsourcers. ■

NATIONAL TRAFFIC SERVICE Service’s mainframe system processes 800,000 freight bills each week, representing more than $40 million in freight expenses for Service Plus Software its 200-plus outsourcing clients. The company’s PC-based freight You may know that National Traffi c Service payment solution includes the same capabilities. WestPoint’s wish list included EDI capability, quality training invests thousands of dollars in creating and and support, sophisticated reporting, and seamless integration with its current in-house accounting and shipping systems. upgrading its state-of-the-art carrier rating soft- “National Traffi c Service’s Traffi cPro software is report- ware to support its industry-leading freight audit friendly,” says Bell. “We can easily pick a fi eld and defi ne records.” Other query types include carrier, account code, cus- and payment services. What you may not know tomer, vendor, and shipping lane. is that the same software is available to those WestPoint uses reporting to benchmark, forecast, and analyze all aspects of its logistics expenses to discover cost- who choose to process their payments in house. cutting opportunities at its facilities – the same methodology That’s just the tack WestPoint Home, a 200-year-old pre- National Traffi c used to save its customers more than $40 mil- mier manufacturer and marketer of bed and bath home lion in potential overcharges last year. fashions, took to manage the 2,000 to 3,000 truckload and “We can tell in minutes how many times a vendor ships to a less-than-truckload invoices it processes each month. facility or a customer, and consolidate those shipments,” Bell “The majority of our clients want freight audit and pay- says. With the system automatically matching payments to ment as a service, but some companies still choose to manage invoices, Bell and her colleagues can spend their time address- freight bills in-house,” says Garry Oswald, vice president, sales ing exceptions and performing analyses. and marketing for National Traffi c, Amherst, N.Y. “The freight bill payment company we used previously WestPoint had tried outsourcing freight bill payment to charged us by volume,” she says. “Some weeks we paid more, another provider, “but it didn’t work out well,” notes Denisa some less. With this system, we know exactly what our costs Bell, freight payment supervisor for WestPoint. “We book are.” National Traffi c also sets up EDI relationships on behalf of Traffi cPro directly to our general ledger, and it was hard to get other peo- users. ple to understand how invoices need to be processed.” Shippers choosing in-house payment can also benefi t from But the company still needed to replace its manual operations, National Traffi c’s 51 years of experience by tapping into the which were managed by two full-time staffers. So it made sense same technology used to process their own bills – performing to invest in a system that could effi ciently manage payments less work, saving money, and accessing a complete database and include the latest technical developments and updates, such of logistics information for future reporting, trend analysis, as fl uctuating carrier rates and fuel surcharges. National Traffi c and carrier negotiations.

80 Inbound Logistics • September 2007

GO FIGURE! SPECIAL ADVERTISING SUPPLEMENT Freight Payment Services Add Up

CASS INFORMATION SYSTEMS to Sarbanes-Oxley and other regulatory institutions requiring additional audits and security,” says Tom Zygmunt, manager Leveraging Data for Insight of marketing and business development for Cass. “That’s a big The secret to controlling freight costs is knowing difference between Cass and other providers.” Cass developed a customized solution, including a 100- how freight dollars are being spent. Using a third- page report documenting Rock-Tenn’s processes, standard operating procedures and rules of engagement. It integrated party freight bill audit and payment provider its services with Rock-Tenn’s fi nancial software, creating a is one way to easily attain visibility to freight three-way match for every invoice. “We communicate with the trading partner, they send back a tender, we send it to Cass, spending across the entire company. who rates it and sends it to us,” Cavin explains. That was the strategy behind Rock-Tenn Company’s deci- Cass handles both truckload and LTL payments for Rock- sion to turn to Cass Information Systems, St. Louis, Mo. Tenn, as well as parcel – a growing area of interest for many “We had just centralized our freight management processes customers. Cass is also expanding its international services for and wanted to gain a better understanding of freight spend and domestic companies operating in Europe. manage rising costs,” says Chris Cavin, director of transporta- The project unifi ed Rock-Tenn’s business processes and tion for Rock-Tenn, a packaging fi rm that maintains 85 sites, all established EDI invoicing and payment relationships with 25 making their own shipping choices for lanes across the United percent of its carriers to date. “We knew we’d save in bill pro- States using individual accounting systems and codes. cessing costs, but our main objective was to standardize and “We wanted a complete understanding of freight spend, and improve processes,” Cavin says. “The cost savings are defi nitely the impact of lane usage and fuel costs,” Cavin adds. there, and the audit savings easily cover what Cass charges us.” Cass software was already in place at fi ve plants the com- The implementation made it easier for Rock-Tenn to deploy pany had acquired, and came out on top through Rock-Tenn’s a transportation management system, integrated with the RFP process. Rock-Tenn also liked Cass’ extensive reporting Cass system. “Cass does a good job developing technology tools with customized views providing deep insight into ship- specifi cations for new processes, and advising us on industry ping patterns and sources of excess cost. best practices,” Cavin says. Shippers also fi nd such records helpful in attaining Rock-Tenn is more than pleased with the Cass system since Sarbanes-Oxley compliance. its implementation in December 2006, and particularly with the “As a publicly traded bank holding company, we are subject standardization of business processes and enterprise view of shipping activity. “It has been a great tool for us,” Cavin says.

Looking to Streamline and CT LOGISTICS Automate Your Freight Bill A Wide Breadth Payment Process? of Solutions Shippers often need help Our Traffi cPro Software Could be Just What You’re Looking For! managing the auditing and If you’re looking to audit and pay your freight bills yourself, our Traffi cPro System is processing of freight bills. But the product for you! many also need help fi nding Traffi cPro was designed to eliminate all duplicate payments and overcharges ways to drive those costs down for your truckload, LTL, parcel shipment and make more intelligent and airfreight bills. supply chain decisions. And customized reports are easily generated to allow you to track your logistics activity. Those needs are behind the full-service approach at CT Logistics, whose Contact us today! three divisions – The Commercial Traffi c 800-775-8253 ext. 206 Company, a third-party freight audit www.trafficprosoftware.com and freight payment fi rm; Commercial

82 Inbound Logistics • September 2007 All Freight Payment Services are Not Equal!

Financial Security Solving Providing Leading & Stability Complex Needs Edge Solutions

... the leader in freight bill rating, audit, payment and information services.

St. Louis, MO – Columbus, OH – Boston, MA – Greenville, SC For more information, call 314-506-5500 www.cassinfo.com GO FIGURE! SPECIAL ADVERTISING SUPPLEMENT Freight Payment Services Add Up

Transportation Services, which develops, sells, and sup- software they use internally, the way they want to buy it: ports its FreitRater software; and Commercial Transportation licensing it, hosting their own instance of the software at CT’s Management Services Inc., a 3PL offering on-site freight under data center, or providing software via the application services management, inbound freight coordination, control, and dis- model, for example. FreitRater software customers typically patching. The company is based in Cleveland, Ohio. recognize a quick two to three month ROI on their initial soft- Chalfant Manufacturing, a mid-size manufacturer of loading ware investment based upon the use of the system’s Least dock equipment, faced just those sorts of challenges. Chalfant Cost Carrier rating and routing capabilities. ships LTL to its dealer and end-user customers across the “The spectrum of how much or how little service we pro- United States, but volume wasn’t high enough to qualify for vide is up to the client,” says Allan Miner, president of CT favorable carrier rates. Logistics. “We’re not a cookie-cutter company. We customize The company was already using CT Logistics to provide pre- processes to fi t each client’s needs.” audit and payment services for its shipments, so it was the logical CT also offers access to its transportation management choice to help Chalfant negotiate better rates. Chalfant enrolled systems, relieving customers of the cost of purchasing the in CT Logistics’ TranSaver co-op buying program that lets com- software while enabling them to seek favorable carrier rates. panies leverage their collective freight tonnage and revenue to Clients such as Chalfant also access very detailed reporting to obtain premium discounts and rates. CT maintains relationships better anticipate and control their freight bills. Demand is also up with 24 carriers who bid on the combined business. for analysis of accessorials and data mining to better understand Along with freight audit and payment, the quick-response spending and pinpoint areas for improvement. bid service means CT saves the manufacturer considerable The pre-audit and payment processing services also freight costs. Pre-audit and freight payment customers have cleanse shipment data, so clients get an accurate picture of historically saved more than $6.50 per one dollar of service their costs. “Clients tell us they see a two-percent savings fees paid, based upon audit savings, duplicate payment detec- after due diligence,” Miner says. CT Logistics also offers con- tion, and administrative time, which amounts to a 550-percent sulting services to further drive savings, rounding out the return on investment. company’s full-service product suite. Such a broad array of services means CT Logistics customers can attain these savings in the way that makes the most sense. For example, some choose to outsource freight pay- TECHNICAL TRAFFIC ment, while others elect to perform this function in-house. CT Logistics enables these customers to buy the same FreitRater Maintaining a Tight Focus Eighty percent of Technical Traffi c customers come to the freight pre-audit and payment A Total Transportation fi rm after trying another Data Management System provider. Few leave, and it’s not un common for those who do to come back. The difference comes from a laser-like focus on the job at hand. “We have no For 33 years, Technical Traffi c Consultants ties to a third party, we’re not interested 33 YEARS has delivered to its customers the highest level of in controlling freight or infl uencing pay- 185 EMPLOYEES service with an uncompromising commitment to quality. We are an SAS 70-compliant company ment, we’re not brokers,” says John N. 300 CUSTOMERS providing transportation data management Mecchella, Esq., president of Technical services including freight bill audit, transportation Traffi c, based in Congers, N.Y. “Under database development, logistics consulting, Sarbanes-Oxley, that’s a confl ict of inter- customized client reporting, domestic and est.” The company is compliant with the international pre-audit and payment. SAS 70 auditing standard. Serving the Financial World of Transportation… Instead, the company has 185 With a World of Diff erence! employees, including nine full-time TTC Headquarters, Congers, NY 845-770-3510 | www.technicaltraffi c.com programmers focused on pre-audit, reasoning that quality pre-audit

84 Inbound Logistics • September 2007 CT LOGISTICS has been saving time and money since 1923.

Freight Payment

FreitRaterTM

3PL

SM TMS TranSaver

Pre-Audit

CT LOGISTICS believes there's always room for improvement, and that philosophy has made us a leader in freight payment for over 84 years. Since then we have been creating and refining money-saving innovations for each of our clients. So we're confident when we say talking to us will be worth your while. Our FreitRater™ software is exclusive, our solutions are customized, and our reputation is unsurpassed. ctlogistics.com Call 216-267-2000, today, for more about our Pre-Audit, Freight Payment, TMS software and other innovative ideas. Find out just how much more we can do for you.

C onfidence T rust L eadership since 1923. GO FIGURE! SPECIAL ADVERTISING SUPPLEMENT Freight Payment Services Add Up

negates the need for post-audit. Solutions Division does heavy volume with Hong Kong and The high level of scrutiny that helps Technical Traffi c exe- maintains a large export business, in addition to domestic traf- cute on that mission appeals to Scholastic Corporation, New fi c. Alcatel-Lucent taps all modes – from air to ocean to LTL York, which needed to improve its visibility and management of and parcel – and needs a freight audit and payment fi rm that freight bills for parcel shipments to international containers. can support that breadth. “We worked closely with Technical Traffi c to put controls The ability to analyze costs is essential to clients such and measures in place to address those issues,” says Scott as Alcatel-Lucent. To enhance that capability, nVision, Eber, director of global logistics for Scholastic. Technical Traffi c McDonough, Ga., recently debuted a powerful, state-of-the- devised a custom solution to meet Scholastic’s needs, including art iDashboard that includes global mapping, so users can see Internet reporting designed to meet the publisher’s specs. graphic representations of their supply chains, then drill down “We use the Web site religiously for reporting and analysis into maps to activate reports and graph trends. of freight bill patterns,” says Eber. Scholastic also occasionally “It gives you the whole picture – a snapshot of what is going uses Technical Traffi c’s benchmarking service to confi rm that on that week,” says Omar Jubran, Alcatel-Lucent’s logistics it is attaining the best possible rates for its shipments. manager. “You can look at freight expenses from all angles, Customization extends to payments; payments to carriers are and determine your heaviest, most expensive lanes. Then you never commingled with those of another client and are timed can import as a PDF or Excel fi le and create reports.” according to individual needs. Each account is assigned to a pro- Such capabilities help nVision Global stand apart, Jubran cessing team that consists of a supervisor, senior and assistant says. “Any company can do freight payment. But nVision team leaders, and audit, clerical, and data entry personnel. This provides the tools to dissect and examine my costs in many dif- team is charged with the responsibility of not just paying a cus- ferent ways.” tomer’s freight bills, but also understanding their unique needs. iDashboard enables clients to gain a full view of their trans- Another distinguishing feature is the legal perspective portation expenses and patterns, allowing them to streamline that Mecchella brings to Technical Traffi c’s clientele, help- and optimize their supply chains, from major mode change ing them understand that transportation remains a regulated decisions to fi nding out the company is shipping separately, industry. Mecchella also seeks to help them gain a deeper overnight, to two fl oors in the same building. Solutions are understanding of issues such as contracts, which need to be customized to each client’s specifi c needs. structured in specifi c ways. Services may include drafting of nVision also provides consulting services. Jubran is cur- the addendum. rently engaging the fi rm to advise on open bidding to freight In addition to legal advice, Technical Traffi c offers custom- forwarders and carriers, helping the company do rate com- ers a variety of logistics consulting services, both domestic and parisons. Consulting services also include benchmarking, rate international. Technical Traffi c’s in-house transportation attor- negotiation, warehouse location studies, and load planning ney enables the company’s heavy emphasis on regulatory law. and optimization. In addition, the company offers brokerage Technical Traffi c clients typically save three percent to fi ve services, loss and damage claim software, and modeling appli- percent on freight bills. But perhaps the biggest benefi t is alle- cations to enable clients to do what-if scenarios related to viating the burden of staying educated on freight payment transportation history or payment. nVision Global also mar- issues and how to best process them. kets logistics and supply chain software. “Some companies using various freight payment providers nVISION GLOBAL have this data segmented,” says Keith Snavely, vice president of sales for nVision Global. “We’re a single source for all data, Tapping a Global Footprint so companies can better optimize their supply chain with a more global view.” As business grows increasingly global, so “Savings are a big part of the solution,” says Jubran. “In the too must the reach of freight audit and pay- freight business a carrier can quote a rate, but that’s just part of the price. The rest are accessorial charges. nVision controls ment fi rms. Maintaining a physical presence the charges via contracts with carriers, and if a rate seems out across the globe is a priority for nVision Global of the norm, they get backup paperwork or seek my approval before payment.” Technology Solutions, which has rebranded from nVision Global also prides itself on a high level of customer its prior identity, TSI Logistics, to place that service, which it maintains by catering to a relatively small roster of 120 clients. It’s a goal Jubran can attest has been reached. emphasis front and center. “nVision Global is highly refi ned and responsive. Its people As an international company, telecomm giant Alcatel- excel at providing the data I need,” Jubran says. Lucent shares that perspective. The company’s Enterprise

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by Amanda Loudin

Remember The Alamo Group’s Inventory Tracking Success

he Alamo Group is not a household name, but most people have seen its products in use at one time or another. The company is a leader in T the design, manufacture, and distribution of high-quality equipment for right-of-way maintenance and agriculture. The product mix includes tractor and truck-mounted mowing equipment, excavators, street sweepers, snow removal equipment, and parts. Alamo, based in Seguin, Texas, was founded in 1969 and has grown rapidly through the acquisition of numerous companies. Currently Alamo employs more than 2,290 workers, and produces and assembles products in 16 facilities worldwide.

The Alamo Group realizes Texas-sized returns after installing a new wireless inventory control system.

The Alamo Group’s main distribution center in Seguin, Texas, served as the pilot site for the wireless inventory tracking system.

September 2007 • Inbound Logistics 89 DCSOLUTIONS ‹ CONTINUED FROM PAGE 89

A SMART CHOICE. By implementing ICS Inc.’s RF-Smart wireless, mobile, and RFID software solution, The Alamo Group, which designs, makes, and distributes agricultural equipment, has boosted employee productivity. The system allows workers to conduct shipping, receiving, picking, and inventory transactions wirelessly.

Alamo products are marketed and sold IT. “We wanted to streamline processes a provider that could integrate directly through independent dealers. and make sure employees were working with its JD Edwards’ ERP system. as productively as possible.” “Only a few systems fit our needs, MANUAL LABOR Alamo is comprised of many differ- but we were able to fi nd one that pro- While the company’s business model ent divisions and several distribution vided all the features and integration has been a successful one, its distribu- centers. Its main DC, located at the we wanted,” says Vinyard. tion operations have not keep pace. An Texas headquarters, would eventually That solution is RF-Smart from ICS older, paper-based system kept Alamo serve as the pilot site for a new system. Inc., based in Jacksonville, Fla. RF-Smart from tracking inventory in real-time, One of Alamo’s most important goals is a brand of wireless, mobile, and RFID and slowed down operations. In addi- was to move from batched data entry software solutions designed specifi cally tion, the manual system increased the to real-time data collection in order to for the JD Edwards ERP system, mak- potential for human error. It was time provide up-to-the-minute information ing it a good fi t for Alamo. to modernize. on inventory, sales order picking and “With the manual system, our distri- shipping status, work-order status, and ALAMO GETS RF-SMART bution center workers walked around other peripheral data collection capabil- Alamo selected RF-Smart’s manu- carrying print-outs to direct them,” says ities. While many technology vendors facturing and distribution suites. The Keith Vinyard, Alamo’s vice president of provide these features, Alamo needed product’s adaptability to the company’s

90 Inbound Logistics • September 2007 Adding to the Mix he Alamo Group is not a company that sits still. Over Tthe past several years, it has shifted into major growth mode, accomplishing some of that growth through a series of acquisitions. “Alamo is always looking for companies with the potential to complement the ones we already have,” explains Keith Vinyard, vice president of IT. “We also look for companies that can give us a good geographic presence.” growth, along with its low total cost of ownership, were just Alamo also tries to continually offer customers a broader two factors that gave it the edge over other packages. range of products. Over the past several years, Alamo has “Part of Alamo’s growth has come through well-managed added GRADALL, VacAll, Nite-Hawk, and Henke domesti- acquisitions,” says Vinyard. “RF-Smart’s fl exibility helps us cally; its European division has expanded with the addition to prepare for and easily address those transitions.” of TWOSE and Spearhead, among other companies. Another priority in selecting the right package was fi nd- Adding new companies poses challenges from a techni- ing one that would allow the company to easily “take cal standpoint. “Every company is different,” says Vinyard. ownership” once the implementation was completed. “We try to adapt what the company does, and fi t it into our “Alamo was looking for an easy-to-use product that its existing systems whenever possible.” people could take responsibility for after we left,” explains Generally, Alamo tries to integrate new domestic acqui- Randy Patrick, customer advocate executive at ICS. sitions into its ERP system, along with the new ICS system. Before ICS began the formal implementation process at “The biggest part of the integration is mapping where they Alamo’s 250,000-square-foot DC in Texas, several Alamo are to where we are,” says Vinyard. employees traveled to ICS to learn the system. “We wanted With each new acquisition, Alamo also has to consider to be able to take over quickly after implementation, so whether or not to use the new company’s existing DC. training our people at ICS made sense,” explains Vinyard. “Sometimes we’ll incorporate new companies into our DC Implementing the ICS product required only minor “cos- system,” says Vinyard, “but sometimes we leave their dis- metic” changes on the front end in order for it to integrate tribution as is. It depends on where they are located, what smoothly with Alamo’s system. “It was a smooth process,” products they carry, and what makes the most sense.” Patrick says.

September 2007 • Inbound Logistics 91 DCSOLUTIONS I use it ‹ CONTINUED FROM PAGE 91

Vinyard agrees. “Some minor issues arose along the way, every day. but we handled them easily,” he says. “One example was that we hadn’t implemented our wireless network prior to the installation, so we had to work around that.” In addition, just prior to going live, Alamo made another acquisition. “We had to help them get the new division on board, but that wasn’t a big issue,” says Patrick. “We did the install, then worked with Alamo for an additional three or four weeks on the pilot, grad- ually increasing the number of processes migrating to the new system.” In all, Vinyard estimates that the pilot implementation took about two months. Since going live at that Of all the resources I use Select from more than 20 facility, Alamo has continued to roll out RF-Smart; a to make a difference in accelerated bachelor’s total of seven facilities in the United States are currently logistics today, the one degrees and 12 master’s online with it. I use the most is what degrees online including “The rollout has been easy,” Patrick says. “Once we these for Logistics implemented the system in the main DC, we were able I learned through professionals: to send our people out to implement the other facilities Bellevue University. • Bachelor of Science in rather quickly.” Logistics Management My degree gave me the WELL WORTH IT • MBA with a Alamo began operations with the ICS system using about knowledge and concentration in 15 wireless handheld devices from Psion Teklogix, along conﬁ dence to take the Supply Chain with several wireless printers. The system allows for man- lead in my job, making Management ual entry through a Web browser as well, and additional a difference every day. keyboard wedge scanners round out the new equipment. The ICS system allows Alamo to conduct shipping, receiving, picking, and inventory transactions in a wireless format. While it is still too early in the process to report any hard numbers, Alamo reports several improvements since making the change. Call 800-756-7920 “We have been able to substantially boost inventory to enroll today. accuracy,” says Vinyard. “We now have real-time, accurate information to work with, and that has also led to improved customer service.” In addition to achieving its goals with the new product, Alamo has been “discovering new ways to use it,” Vinyard says. The Alamo staff has embraced the new technology as well, recognizing that the system makes everyone more efﬁ cient. Moving forward, Alamo has two more acquisitions on tap to include in the implementation. “We still have to get the new companies online with the ERP system,” says Vinyard. “We’re also in the process of upgrading the Real Learning for Real Life ERP, so that slows us down slightly. But we anticipate an easy rollout once that is completed.” www.bellevue.edu Looking back, having more people trained on the system earlier on might have made the process even faster and easier, Vinyard says. “But overall, migrating to the new system has been an easy process, and we’re happy with the results,” he adds. ■

92 Inbound Logistics • September 2007

 

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by Merrill Douglas

Arrow Hits Replenishment Target

rrow Electronics aims at the wanted. Also, ofﬁ cials at Arrow no lon- heart of its customers’ needs. ger wanted to ask customers to load the ARather than wait until manu- software on their own computers. facturers place orders for new product, “We wanted to convert to a sys- the Melville, N.Y.-based electronic tem customers could access over the components distributor discovers what Internet,” says Robert Martin, Arrow’s customers require almost before they director of supply chain solutions. Arrow aims at know it themselves. Arrow had considered building a Since 1995, Arrow has offered the new system in-house. But ofﬁ cials ulti- One Network’s Customer Automated Replenish ment mately decided they could reach their System (CARES) to monitor the inven- goals faster and more economically if platform to recharge tory of certain components at customer they called in help. sites. As soon as a part runs low, the sys- “Rather than starting from scratch, its automated tem triggers a fresh shipment. we wanted a vendor that had already Last year, Arrow moved CARES to developed the software,” Martin says. replenish ment a new platform, developed by One Network Enterprises, Dallas. As a ONE NETWORK STANDS OUT program, and hits result of that move, CARES now is eas- Narrowing down an initial list of 15 the customer ier to implement and maintain, and contenders through an extensive pro- it provides additional functions. The curement process, Arrow targeted One service bull’s eye. enhanced technology also opens the Network. The solution’s cost and qual- door to new applications for Arrow in ity, and One Network’s personnel, were the future. deciding factors, Martin says. Since its inception, CARES has run One Network also stood out because on a computer in each customer’s man- its solution offered many functions ufacturing plant. The software hadn’t that Arrow wouldn’t use right away, but had a major upgrade in years, and it might want to tap in the future. “Many didn’t provide all the functions Arrow other systems we considered were more

September 2007 • Inbound Logistics 95 L.I.T.TOOLKIT ‹ CONTINUED FROM PAGE 95

narrowly defi ned,” Martin notes. carriers,” says Greg Brady, chairman system, an assembly worker takes parts Building a network to manage and chief operating officer of One from a bin until it’s empty. Then the replenishment and other supply chain Network. worker scans a bar code on the empty functions was not a novel prospect for The system automatically tenders bin, and starts pulling from a backup One Network. Founded in 2002, the loads to carriers and schedules pick- bin. The scan prompts CARES to trans- software vendor has created several ups and dropoffs, including loading mit an order for a new bin-load of parts electronic communities that automate dock appointments. Companies with to take the backup position. transactions and allow collaboration supermarket operations on this net- In the case of min/max, the system among trading partners. work include Safeway, Kroger, Publix, keeps track of how many parts a worker uses, and when inventory falls below a certain mark – say, 100 parts – it triggers a replenishment. After the contract was signed in early 2006, One Network offi cials got to work defi ning Arrow’s requirements. System development took about six months, and the system has been up and running for about one year.

AN EASY MOVE Migrating customers from the old platform to the new one was easy. “Because the system is Web-based, almost all the implementation can be done remotely,” Martin explains. Arrow gave each customer a bar-code scanner and a password for accessing the network via the Web. It also uploaded data such as part numbers, bin quantities, and bin sizes, and it set permissions for different users, giving them access only to the screens they are allowed to view. Operators use handheld scanners to keep track of inventory as they work. Periodically, they insert the scanners into holsters to upload the saved data to the network. The network now accommodates 325 companies, including Arrow, and about 60 original equipment manufacturers TAKE CARE. Electronic components distributor Arrow Electronics offers customers the and other suppliers that serve those CARES automated replenishment system. As soon as a component runs low, the system OEMs. Arrow has always allowed its triggers a new shipment, so customers always have the products they need. customers to use CARES with other sup- In the retail se ctor, for exa mple, Hannaford, and Food Lion. pliers, including competing electronics One Network operates a community One Network also operates a network distributors, as well as vendors in other that manages inbound transportation that the U.S. Department of Defense markets. “Customers can use the system for about 25 percent of the food trans- uses to replenish ammunition for the for their nuts and bolts supplier or their ported in the United States. Marine Corps, Brady adds. plastic supplier,” Martin notes. “One Network manages the inbound Customers use CARES in connec- As more OEMs bring in more suppli- transportation and schedules distri- tion with either a kanban or min/max ers, participation on the new network bution with buyers – retailers – and replenishment technique. In a kanban has snowballed. “The more suppliers

96 Inbound Logistics • September 2007 on the network, the Offi cials at Arrow are more OEMs say, ‘Why starting to discuss new would I do anything PLANO, TEXAS ways they might put else? All my suppliers DALLAS/FORT WORTH AREA One Network to work. are already on this sys- In the long term, Arrow tem,’” Brady says. might use the network Besides eliminat- to address the needs of ing the need to install a broad segment of its and maintain software customer base. locally, the move to “More immediately, One Network provides we’re thinking about Arrow with several how we can apply the other advantages. software specifi cally to “First, the system Prime, 528,000 sq. ft., fully air-conditioned, our most sophisticated gives all supply chain building on 26 acres customer’s complex partners access to crit- supply chain issues,” ical information, such Martin says. as inventory levels and • The facility has Dual Fed Electricity, two 2,500 KVA One goal might be actual demand, at any transformers, 277/480 volt, three phase, four wire, to gain a more com- time via the Internet,” 3,000 amp capacity plete view of parts Martin says. • Fiber optics are provided by Southwestern Bell, consumption, both In addition, it sup- by Arrow’s customers Verizon, Time Warner and AT&T ports new functions, and, in turn, by their such as the ability to • Steel columns spaced 40’ x 50’; ceiling heights to customers. use the system for mul- 32’ clear “We could see when tiple manufacturing • 3- 8’ x 10’ dock-high doors with levelers; 125- 8’ x 8’ customers sell the end locations and multiple dock-high doors with levelers; 30- 9’ x 10’ dock-high product that contained manufacturing cells doors with levelers and 1- 12’ x 14’ grade-level door our components, and within one location. gain visibility into how CARES on the One • A DGNO rail spur is located ¼ mile east of the facility; those components Network platform also an extension of the rail spur is possible, depending move through their is also suited to the on volume manufacturing pro- global manufacturing • Compressed air, two 50 HP compressors cess, as well as through environment because it their logistics chan- supports multiple cur- • 13,200 sq. ft. of modern office space nels,” Martin says. “And rencies and languages. • Provides convenient access to State Highway 190 we could get inventory For Arrow, one big (President George Bush Turnpike), I-635, I-35, I-20, information as well. benefi t stems from the I-30, Dallas North Tollway, Collin County Regional “This visibility would fact that One Network Airport and Dallas/Fort Worth International Airport allow Arrow to do a bet- has automated some of ter job managing their its processes. inventory pipeline, to “Orders are auto- For more information contact: make sure we meet their matically fed into our BINSWANGER demands, and that they system upon receipt,” 1200 THREE LINCOLN CENTRE, 5430 LBJ FREEWAY, DALLAS, TX 75240 won’t run out of parts,” Martin says. “We don’t 972.663.9494 • FAX: 972.663.9461• E-MAIL: [email protected] he adds. “Then, con- have to ask somebody WWW.BINSWANGER.COM/PLANO_TX ceivably, we could take to create a sales order that back to our suppli- manually. The system ers, so they could get has increased effi ciency for us, as well the supply chain. “We want to anticipate visibility to certain customers.” as for our customers.” problems proactively, rather than wait- From the way it targeted the One In the future, Arrow plans to use One ing until a customer needs a part and we Network solution, it’s clear that Arrow Network to gain further visibility into don’t have it,” Martin explains. CARES about its customers. ■

September 2007 • Inbound Logistics 97 TECHUPDATE THE LATEST IN LOGISTICS TECHNOLOGY

software tion requirements, it is particularly beneficial to large companies with Prophesy Transportation Software decentralized global logistics networks. NetSuite WHAT’S NEW: Enhanced truck ﬂ eet u www.bridgenetsolutions.com WHAT’S NEW: The ability to run business maintenance software. ✆ 312-492-7500 operations using the Apple iPhone. THE VALUE: FleetTrax Premier 2008 THE VALUE: The new SuitePhone offers the same functionality as the John Galt Solutions capability allows customers to log in to original version, but with these new WHAT’S NEW: A point-of-sale fore- their NetSuite accounts on iPhones so they features: assigning vehicles to one or casting module. can manage their business and logistics more sites; tracking parts, core, and THE VALUE: The module helps operations while they are away from their tire returns; a report browser window companies match supply to demand offices. Back-office users also can remotely for quick report selection and con- by creating a forecast of consumer access financial information such as invoicing figuration; and a Quick Work Order demand that can be compared to and accounts receivable. wizard, which allows users to quickly retailer/wholesaler forecasts for u www.netsuite.com/suitephone record vehicle maintenance. channel demand. The new POS fore- ✆ 650-627-1000 u www.mile.com ✆ 800-776-6706 casting module makes it easy to incorporate consumer buying pat- Oracle terns captured in point-of-sale data WHAT’S NEW: The wide availability into an overall supply chain plan. release of Demantra 7.1.1. demand u www.johngalt.com ✆ 312-701-9026 planning and management solutions. DHL THE VALUE: This software solution WHAT’S NEW: A software tool provides gives companies the ability to the ability to ship directly from vari- accurately predict demand, shape ous popular applications. profitability for their products, THE VALUE: ShipRush integrates and proactively manage com- with business software applications plex global supply chains. The Microsoft Outlook, QuickBooks, and new version supports Oracle eBay so customers can ship directly Fusion Middleware, and boasts to contacts within those applications improvements in planner without re-keying address data in a productivity, data loading different shipping system. ShipRush and export, and data security. allows for greater accuracy by elimi- u www.oracle.com ✆ 800-ORACLE1 nating the need for copy and paste. u www.dhl-usa.com/shiprush BridgeNet Solutions ✆ 800-CALL-DHL WHAT’S NEW: A global visibility software solution. FastPic Systems THE VALUE: BridgeNet’s Xonar software WHAT’S NEW: Inventory management is a network spend data analytics and and control software with a simple planning solution that uses advanced interface. optimization technology to man- THE VALUE: The FastPic4 solution age complex global supply chains. improves storage and retrieval effi- Because it allows for the quick analysis ciency without the need for extensive and assessment of global transporta- programming support. Companies

98 Inbound Logistics • September 2007 To learn more, contact these companies directly. Remember to mention this issue date and page to get the right information.

already using the SAP warehouse requirements and track operating per- electronically 24 hours prior to cargo module can easily move information formance across facilities down to loading. The application saves ship- between the SAP system and FastPic4. the individual associate and activ- pers, freight forwarders, and ship The software allows for more produc- ity. With productivity reporting, operators time and money. tivity and order processing efficiency, manpower planning, and utilization u www.tradetech.net ✆ 425-837-9000 while reducing item handling and tracking features, the system pro- improving inventory accuracy. vides users with essential tools for Central Transport u www.fastpicsystems.com managing operations and optimizing WHAT’S NEW: Real-time Web access to ✆ 207-854-8663 productivity and labor utilization. delivery receipts. u argentglobal.com ✆ 800-731-6388 THE VALUE: Central Transport has Management Dynamics changed the electronic format of WHAT’S NEW: A Web-native applica- web receipts to enable customers to view all tion that helps manage global trade. key delivery information, such as sig- THE VALUE: Version 14 of Trade Trade Tech natures, through the Web. Customers Collaborator allows companies to man- WHAT’S NEW: An online application also receive accurate and timely deliv- age import and export compliance that meets Mexico’s new 24-Hour ery information, as well as an easier and trade agreements. The application Rule Advance Manifest System (AMS). way to obtain proof of delivery. The fully automates related party transac- THE VALUE: Trade Tech developed paperless receipting process also cuts tions, which account for a good part of this cargo security filing solution to down on driver paperwork. today’s trade. Three integrated mod- address Mexico’s customs require- u www.centraltransportint.com ules automate and provide visibility to ment that all manifests be filed ✆ 800-4-CENTRAL the global clearance process. u www.managementdynamics.com ✆ 201-935-8588

Supply Chain Consortium WHAT’S NEW: An online benchmarking tool. THE VALUE: The Strategic Assessment Dashboard allows users to compare operations to their entire industry, to specific parts of their industry, and to supply chains in other industries. The new Dashboard’s updated interface allows users to gauge supply chain performance, and highlights multi- year trends as best practices evolve. u www.supplychainconsortium.com ✆ 919-855-5424

Argent Global Services WHAT’S NEW: The VantageRPM labor management system. THE VALUE: VantageRPM allows companies to calculate manpower

September 2007 • Inbound Logistics 99 TECH UPDATE THE LATEST IN LOGISTICS TECHNOLOGY To learn more, contact these companies directly. Remember to ‹‹ CONTINUED FROM PAGE 99 mention this issue date and page to get the right information.

Avery Dennison WHAT’S NEW: Three new RFID inlay designs. THE VALUE: AD-430 Inlay, AD-630 Inlay, and AD-813 Inlay are all EPC Class 1 Gen 2- and ISO 180006 C-compliant and can be read across the range of global RFID frequency bands. AD-430 is designed to fit within a 4-inch by 1-inch label and is suited for RF-friendly, metal, and liquid contents. AD-630 can be read in any direction (face-on or edge-on) and designed for a 3-inch by 3-inch or 4-inch by 6-inch label. AD- 813 is designed for small, item- level applications and sized to fit in a 1-inch by 1-inch label. u www.averydennison.com ✆ 626-304-2000

rfid/wireless scanning, camera technology, and has developed the first high-preci- RFID are among the topics covered. sion differential GPS tag capable of BlueBean The handbook is available in print utilizing Wi-Fi or mesh networks for WHAT’S NEW: An RFID solution kit. and PDF formats. data backhaul. The SAVR SENTRY THE VALUE: BlueBean’s RFID Simple u www.accusort.com ✆ 800-BAR-CODE 500-D provides visibility to high- Dock Door Solution Kit includes a value assets, and to processes utilizing BlueBean RFID Simple Dock Door Metalcraft existing wireless networks, without portal, RFID reader, antennas, and WHAT’S NEW: An RFID windshield tag. the need for traditional RFID reader accessories. The RFID Simple Dock THE VALUE: Designed to deliver long infrastructure. Door Solution Kit contains every- read range for companies automating u www.savrcom.com ✆ 972-659-1626 thing needed to RFID-enable a dock vehicle access control to secure ware- door or choke point, making it easy to house areas and other applications, Confi dex track assets and manage inventory. Metalcraft’s RFID windshield tag uses WHAT’S NEW: RFID tags to support u www.bluebeanrfi d.com a passive KSW windshield RFID inlay. automotive industry applications. ✆ 800-966-7343 The 4-inch x 1-inch label can be read THE VALUE: Confidex has introduced at a range of more than 18 feet, and two new passive UHF EPC Generation Accu-Sort Systems through windshields. 2 RFID tagging solutions: the WHAT’S NEW: A comprehensive u www.idplate.com ✆ 800-437-5283 Confidex Corona and the Confidex auto-ID handbook. Cruiser. The tags provide discrete vis- THE VALUE: Auto ID in the Material SAVR Communications Inc. ibility of high-value, work-in-process Handling Industry presents an over- WHAT’S NEW: A high-precision active items in demanding automotive man- view of technologies used in auto-ID tag with DGPS and Wi-Fi. ufacturing environments. systems. Introductions to bar-code THE VALUE: SAVR Communications u www.confi dex.net ✆ 609-605-0670

100 Inbound Logistics • September 2007 DISCOVER THE GREAT VALUE OF UALITY TRANSPORTATION AND WAREHOUSING IN THE NORTHEAST. Bilkays / DWS now has two great locations for warehousing and shipping services in Elizabeth and Linden,NJ. BURLINGTON, VT With over 300,000 sq. ft. at the crossroads of the Northeast and the gateway to the world. Minutes from all NY bridge and tunnel crossings, plus NY ports and major railyards. A centralized location gives our customers prompt, PORTLAND, ME economical, quality service and ensures accurate, on-time delivery of your shipments. And our full EDI capabilities systems provide SYRACUSE, NY shipment status reporting, electronic invoicing, warehouse shipping MANCHESTER, NH ALBANY, NY notices, real-time inventory BUFFALO, NY and lot control. Bilkays Express sets the BOSTON, MA standard in shipping by which others are judged whose skills make us an industry leader in our field. BILKAYS EXPRESS PROVIDENCE, RI CUSTOMIZED SERVICE • DISTRIBUTION NEW HAVEN, CT • WAREHOUSING • BAR CODE SCANNING • DEDICATED CONTRACT SERVICE NEW YORK, NY • EDI PITTSBURGH, PA • LOGISTICS & ELIZABETHNJ • PIGGYBACK DRAYAGE HARRISBURG, PA LINDEN • REFRIGERATED SERVICES PHILADELPHIA, PA • POOL CONSOLIDATION • PROTECTIVE SERVICES • TAILORED DISTRIBUTION PROGRAMS BALTIMORE, MD

WASHINGTON, DC DELAWARE

CHARLESTON, WV

RICHMOND, VA

BILKAYS EXPRESS CO. DISTRIBUTION WAREHOUSE & SERVICE CORP. Elizabeth: 400 South Second Street, Elizabeth, NJ 07206 Linden: 2400 Bedle Place, Linden, NJ 07036 908-289-2400 • 800-526-4006 • Fax: 908-289-6364 908-486-9200 • 800-526-4006 • Fax: 908-587-0636 E-mail: [email protected] Visit our web site: www.bilkays.com NEWSERVICES YOUR BUSINESS LOGISTICS RESOURCE

China Ocean Shipping Company (COSCO) throughout the work cycle. The WHAT’S NEW: Calls at the new con- AC drive motors have no springs, tainer terminal in British Columbia, brushes, or wearable parts, which Canada. reduces maintenance. THE VALUE: COSCO is the first carrier u www.toyotaforklift.com ✆ 800-226-0009 to stop at the Port of Prince Rupert, Maher Terminal’s new container Hamburg Süd terminal. COSCO and Canadian WHAT’S NEW: Upgraded service National Railway Company (CN) between Asia and Australia/New provide rail service from the ter- Zealand. minal to various North American THE VALUE: The expanded Hamburg markets. The partnership gives Süd network includes five new 1,800- COSCO customers access to CN’s on- TEU chartered vessels, which replace Carrier Transicold dock, high-capacity, double-stack rail five smaller ships. Each ship features WHAT’S NEW: Industrial- network. Use of the new port cuts tran- 400 reefer slots and allows for more strength cargo security devices. sit time to some Midwest destinations ports of call to service seasonal cus- THE VALUE: These four new rugged by two to three days in comparison to tomer requirements. Hapag-Lloyd and locking systems provide a first line of current West Coast services. Tasman Orient Line are partners on a defense against theft. Sealock is a single- u www.cosco-usa.com ✆ 800-967-7000 slot-charter basis. use device for trucks and trailers; Enforcer u www.hamburg-sued.com ✆ 973-775-5300 is an adjustable and reusable lock made of Toyota Material Handling chrome-plated steel that fits around trailer WHAT’S NEW: An AC pallet truck line. TydenBrammall keeper bars; Enforcer Air Cuff encases the THE VALUE: The walkie pallet truck, WHAT’S NEW: A cargo bolt seal for air valves in the tractor cab; and the Enforcer tow tractor, center control rider pal- C-TPAT shippers. king pin lock prevents unauthorized hook- let truck, and end control walkie/rider THE VALUE: The Cargo Bolt II seal ups for dropped trailers. pallet truck are all part of Toyota’s ensures security and tracking accu- u www.trucktrailer.carrier.com new 8-Series product line. All trucks racy that complies with the C-TPAT ✆ 800-CARRIER feature a powerful AC drive system program for cross-border shipments. that allows for more battery life and The bolt’s solid steel shank is thicker maintains a high level of performance and stronger than most bolt seals in its price range, and the steel bolt and lock body are zinc-plated to resist corrosion. u www.tydenbrammall.com ✆ 260-665-3176

Wallenius Wilhelmsen Logistics WHAT’S NEW: A stake in North China’s largest Ro/Ro terminal. THE VALUE: The $98-million terminal, located in the Port of Tianjin, is a three-way venture among Wallenius Wilhelmsen, Tianjin Port Stock Co., and Nippon Yusen Kabushiki Kaisha. The terminal is designed to handle 500,000 vehicles a year and incor- porates two Ro/Ro berths for cars, as

102 Inbound Logistics • September 2007 To learn more, contact these companies directly. Remember to mention this issue date and page to get the right information.

Thermo King WHAT’S NEW: A forced-air heating unit for freeze protection intended for temperature-sensitive cargo. THE VALUE: The new Heat King unit uses a diesel-powered engine to heat liquid coolant in a radiator coil while a blower forces air across the coil and into the cargo area. The unit allows for safe, efficient, and dependable heat inside the trailer or container, no matter how cold it is outside and without using engine heat. u www.thermoking.com ✆ 952-887-2200

well as high and heavy Ro/Ro equip- into Seoul marks ment and static cargoes. The terminal its eighth location in Asia. a full-service logistics company, has plans to open one berth by the end of u www.ijsglobal.com ✆ 203-504-9760 opened a new office in Norfolk. The the year, and the entire terminal by TransGroup-ORF office provides October 2008. TransGroup warehousing and distribution, local u www.2wglobal.com ✆ 201-307-1300 WHAT’S NEW: The opening of an offi ce cartage services, and domestic and in Norfolk, Va. international transportation. Pittsburgh Logistics Systems (PLS) THE VALUE: Seattle-based TransGroup, u www.transgroup.com ✆ 757-464-1212 WHAT’S NEW: Truckload van service for general commodities. THE VALUE: The new service provides shippers access to PLS’ nationwide network of more than 3,500 carriers and service shippers on a load-by-load CONTINUING AND PROFESSIONAL STUDIES basis. PLS offers a suite of logistics services including outsourced logistics management, inbound transportation management, on-demand transportation management systems, brokerage, Baruch’s Weissman Center CERTIFICATES and consulting services. for International Business • Import Trade Operations & Procedures u www.pghlogistics.com ✆ 724-709-9000 and the Division of • Export Trade Operations & Procedures Continuing and Professional • Customs Broker License Preparation IJS Global Studies offer certificates in • International Supply Chain International Trade! Security & Compliance WHAT’S NEW: The launch of company- • International Entrepreneurship owned operations in South Korea. Beginning in the fall of 2007 courses THE VALUE: The new location in and certificates will also be available Seoul, South Korea, handles air and through the Online Learning Center! ocean imports and exports, distri- Register Today! bution and warehousing, customs visit us on the web: brokerage, domestic transport, project www.baruch.cuny.edu/caps cargo, and vendor-managed inventory or call : (866) 399-1529 services. The company’s expansion

September 2007 • Inbound Logistics 103 NEWSERVICES ‹‹ CONTINUED FROM PAGE 103

Agility carrier, has reduced its transit time SEKO WHAT’S NEW: A global network expan- by one day to and from select facili- WHAT’S NEW: Three dedicated, guar- sion to Australia. ties. Saia customers moving freight anteed charter ﬂ ights a week from THE VALUE: Agility, a global provider between Fontana and Orange, Hong Kong to Chicago. of integrated supply chain solutions, Calif., and various facilities in North THE VALUE: SEKO now offers connect- has expanded its presence in Australia Carolina, Texas, and Virginia, all ing service from Chicago’s O’Hare by incorporating LEP International in receive a one-day improvement in International Airport to final destina- Australia, LEP International in New delivery times. tions. This new air cargo agreement Zealand, and the related project logis- u www.saia.com ✆ 800-765-7242 was created in anticipation of increased tics company Pan Orient Shipping supply chain management demands Service. Agility has been working APL during the approaching peak shipping with LEP International in both the WHAT’S NEW: Suez Express service from season. SEKO also handles pickups in Australian and New Zealand markets South Asia to the U.S. East Coast. Hong Kong and at O’Hare Airport, cus- for 60 years. Pan Orient has partnered THE VALUE: APL’s new weekly service toms brokerage, and final distribution with Agility on many major projects, addresses global freight congestion through its network of local offices. especially in the mining industry. and provides fast ocean transit times u www.sekoworldwide.com ✆ 630-919-4800 u www.agilitylogistics.com ✆ 404-806-3600 from Asia to the U.S. East Coast through the Suez Canal. The Suez Priority Solutions International Saia Express service provides four U.S. WHAT’S NEW: The opening of a full- WHAT’S NEW: A reduction in transit ports of call, and connects nearly all service Minneapolis station. times from key terminals to the com- of South Asia to the United States by pany’s Southern California facility. feeder service. THE VALUE: Saia, a less-than-truckload u www.apl.com ✆ 800-999-7733 Massachusetts Port Authority WHAT’S NEW: Direct service to the Port of Boston from Halifax. THE VALUE: Eimskip, an Icelandic steamship company, has introduced the New England Canada Short Sea Service (NECA Express), which calls at Conley Container Terminal in South Boston every Monday and brings more options for New England shippers. The service helps eliminate truck congestion on U.S. interstate and Canadian highways, and gives shippers access to more than 100 ports around the world. u www.massport.com ✆ 617-568-5000

104 Inbound Logistics • September 2007 YOUR BUSINESS LOGISTICS RESOURCE ™ To learn more, contact these companies directly, and mention this issue date and page. ZebraNet Bridge Enterprise. Getting the most out of your printer upgrade. THE VALUE: The facility offers a broad Lines Limited have begun a fixed- range of logistics and transportation day weekly express service from services, ranging from international Hong Kong. The Japan-Thailand air and ocean freight to “hot shot” Express Service provides direct calls and deferred three- to five-day trans- at each port in the rotation: Hong portation. The 35,000-square-foot Kong-Tokyo-Yokohama-Osaka- climate-controlled facility provides Kaohsiung-Hong Kong-Ho Chi warehouse and fulfillment services, Minh-Laem Chabang-Hong Kong. with real-time tracking and a highly Evergreen provides two 900-TEU secured chain of custody. vessels; Wan Hai Lines provides one u www.prioritysolutions.com ✆ 800-257-4777 900-TEU ship. u www.evergreen-line.com ✆ 201-761-3000 Labelmaster What does it take to incorporate WHAT’S NEW: Updated editions of Hyperlogistics Group multiple thermal printers with different regulatory publications. WHAT’S NEW: A central Ohio facility at outputs, volumes, speeds, locations, THE VALUE: The newest Regulatory Rickenbacker Global Logistics Park. and types of applications? Today, all it Compliance Solutions catalog pub- THE VALUE: Hyperlogistics has takes is ZebraNet Bridge Enterprise from lished by Labelmaster features new become the first company to locate Zebra Technologies. With centralized editions of Early 49 CFR; consolidated in the new Intermodal Campus at the configuration and real-time management hazardous materials regulations; an Rickenbacker Global Logistics Park. of multiple printers, upgrading your emergency response guidebook; and Plans call for a new 407,000-square- printing solution has never been easier. A.I.R. Shipper, a shipper-friendly pub- foot warehouse, fulfillment, and • Faster, easier setup that’s right the first lication covering international air distribution facility. The site’s strategic time regulations for shipment of danger- location, adjacent to the new Norfolk • User-friendly downloads of firmware ous goods. Southern Intermodal Terminal within and label formats u www.labelmaster.com ✆ 800-621-5808 Foreign Trade Zone #138, will increase • Timely and actionable alerts overall freight capacity and reduce • Management across multiple, user- Averitt delivery costs. Additionally, the new defined groups WHAT’S NEW: The opening of a supply Rickenbacker Parkway is designed to Zebra also improves integration ease chain solutions facility on the Mexico handle overweight containers, allow- through successful alliances with major border. ing importers to move more freight enterprise technology companies such THE VALUE: The new 30,000-square- on fewer containers. as IBM and Motorola and embedded foot facility in Pharr, Texas, allows u www.hyperlog.com ✆ 800-533-0716 integrations with SAP® and Oracle® for greater speed to market and sup- software and other leading application ply chain efficiency. The facility is SAS Cargo and device management solutions. located less than one mile from the WHAT’S NEW: Expansion of an air Pharr Reynosa International Bridge, cargo terminal in Gothenburg, and four miles from the U.S./Mexico Sweden. Take a closer look. border, which allows Averitt to pro- THE VALUE: A 5,000-square-meter Find out how easily an on-demand cess freight and transload goods for expansion of SAS Cargo’s current ter- thermal printing solution upgrade from nationwide distribution faster than minal at the Gothenburg-Landvetter Zebra adapts to your enterprise with our before. Airport, scheduled for completion at free Black&White Paper, Managing u www.averittexpress.com ✆ 800-AVERITT the end of 2008, will provide air cargo Printers for Maximum Reliability, shippers high levels of efficiency, Performance and Value. quality, and security. The cargo ter- Call +1 800 423 0442 (Option 3) or Evergreen and Wan Hai Lines minal expansion is the result of an visit us at www.zebra.com/inblog. WHAT’S NEW: The introduction of agreement between SAS Cargo’s han- enhanced service between Japan and dling company – Spirit Air Cargo ©2007 ZIH Corp. All rights reserved. Thailand. Handling – and Nordic Airport THE VALUE: Evergreen Marine Properties. Corp. (Taiwan) Ltd. and Wan Hai u www.sascargo.com ✆ +45 2322 6733

September 2007 • Inbound Logistics 105

IN THIS SECTION: 3PLs

3PLS

Advantage Transportation Inc. • www.backhauler.com

Advantage Transportation and its affi liated companies have provided customers with industry-leading transportation expertise for more than 70 years. This fi nancially strong, stable, and growing company has helped countless organizations like yours move their products throughout the United States and Canada. Advantage Transportation has the capability to provide you with custom-tailored solutions to fi t your supply chain needs. This multi-modal company has offi ces strategically placed throughout the nation dedicated to providing seamless logistics solutions at local, regional, and national levels.

AFN-Advantage Freight Network • www.afnww.com

Advantage Freight Network focuses on customer needs, and applies analysis and ingenuity to ﬁ nd the answers that no one else can. AFN takes pride in providing customers and carriers with unmatched proactive and responsive customer service. That means you can rely on a collaborative partnership. AFN thinks around corners and moves beyond traditional reso- lutions to better manage your supply chain challenges. If you are looking to expedite a single piece of freight cross-country, set up dedicated routes, or just want to manage your supply chain more efﬁ ciently, talk to AFN today.

Agility Logistics • www.agilitylogistics.com

Let Agility manage the details of your international transportation. Choose from an array of highly conﬁ gurable air and sea freight options, and road freight services that span Europe, the Middle East, North Africa, and Central Asia with more than 1,000 scheduled, weekly departures. Agility offers global expertise in commodity classiﬁ cations and local government rules and regulations to ensure rapid clearance of your products through Customs.

FMI International • www.fmiint.com

FMI, a Summit Global Logistics Company, strives to provide integrated transportation solutions with service that’s as close to perfection as possible. FMI INTERNATIONAL provides national and international logistics services, warehousing and distribution; FMI EXPRESS provides nationwide linehaul services to retailers and manufacturers; FMI TRUCKING provides local and regional trucking services to the Northeast and New York City metro areas; FMI INTERNATIONAL CORP. (WEST) provides local and regional trucking services to the Los Angeles Basin area; and FASHION MARKETING provides ﬂ oor-ready services to retailers nationwide.

September 2007 • Inbound Logistics 107 IN THIS SECTION: 3PLs

Freight Center • www.freightcenter.com

Compare rates from top carriers for free and save up to 70 percent on freight with American Freight Companies’ new service at www.freightcenter.com. By negotiating discounts with the nation’s largest truckers and freight companies, as well as hundreds of regional, local and independent freight carriers, American Freight is able to provide access to hundreds of approved trucking companies, freight companies, common carriers and motor freight carriers serving the United States. Services include trucking and freight shipping for single items, pallet freight, LTL, TL, partial freight loads, and container freight. There are no size, location, or destination restrictions. Freight rates are provided free, instantly and without obligation.

Kelron Logistics • www.kelron.com

With its shipping and integrated supply chain expertise, network of elite logistics carriers, and ability to ship across all modes of transport throughout North America, Kelron is a leading transportation management solutions provider with demonstrated capability across all industry sectors. Through an innovative and proven 3PL operating model using Internet-enabled technology, Kelron delivers industry-leading on-time performance; extended North American reach; single-source transportation planning, execution, and ongoing management; and improved efﬁ ciencies across all aspects of your supply chain. Celebrating 15 years in business in 2007, Kelron designs its solutions for the challenges and opportunities unique to each client.

Landair • www.landair.com

At Landair, we put everything we’ve got into making sure you see results. From truckload and dedicated services to logistics, warehousing, and distribution services, we can custom-tailor a solution that fi ts your specifi c needs – making your company more effi cient and more productive. We call it “Solutions From the Ground Up.”

Logistic Dynamics • www.logisticdynamics.com

Logistic Dynamics Inc. (LDI) is one of the fastest growing, privately held 3PLs in the United States. LDI provides reliable and cost-effective full truckload, LTL and intermodal services to shippers both large and small throughout the United States, Canada and Mexico. At LDI, we understand and appreciate that customers attach their good name to every shipment they send, and we are committed to treating customer freight as if it were our own.

108 Inbound Logistics • September 2007 IN THIS SECTION: 3PLs — Auto ID

National Retail Systems Inc. • www.nrsonline.com

Since 1953, National Retail Systems Inc. has pioneered many of the retail logistics processes considered cutting edge today. The company operates a national network of logistics assets focused on one goal: delivering efﬁ cient, reliable distribution and transportation services to America’s leading brands. The NRS service offering includes full truckload and LTL transportation; distribution and warehousing; pool point services; consolidation; store delivery; and seamless factory-to-store solutions from China through an exclusive joint venture with Sinotrans called SinoNRS.

Port Jersey Logistics • www.portjersey.com

For more than 50 years, Port Jersey Logistics has been the number one choice for transportation, warehousing, and distribution on the East Coast. Port Jersey operates modern, state-of-the-art warehousing space, as well as in-house trucking and logistics services. Along with our wide array of value- added services and ﬁ rst-class customer service team, Port Jersey Logistics is your one-stop shop for all of your supply chain needs.

Ryder • www.ryder.com

Ryder provides a variety of leading-edge supply chain, warehousing, and transportation services including: 3PL, 4PL, ﬂ eet management, RFID operations, reverse logistics, supply chain management, third-party logistics, transportation management/freight management, truck rental, truck leasing, warehousing, lead logistics provider, lead logistics manager, service parts operations, and distribution center management.

AUTO ID

SATO America Inc. • www.satoamerica.com

SATO is a pioneer in the Automatic Identifi cation and Data Collection (AIDC) industry, and the inventor of the world’s fi rst electronic thermal transfer bar-code printer. It revolutionized the bar-coding industry by introducing the Data Collection System (DCS) & Labeling concept – a total bar-code and labeling solution providing high-quality bar-code printers, scanners/handheld terminals, label design software, and consumables. SATO is one of the fi rst in the industry to introduce a complete, multi-protocol EPC-compliant, UFH RFID solution. Turn to SATO for all your bar-code and RFID printing needs.

September 2007 • Inbound Logistics 109 IN THIS SECTION: Ocean/Land - Freight Bills

EXPEDITED OCEAN/LAND

Matson • www.matson.com

Matson is a leader in Paciﬁ c shipping and most noted for its long-standing service to Hawaii, Guam and Micronesia. Matson’s China – Long Beach Express offers premium, expedited service from Ningbo and Shanghai to Long Beach, including a guaranteed expedited service option to many U.S. destinations. Its subsidiary, Matson Integrated Logistics, is one of the nation’s leading logistics providers, with expertise in all aspects of U.S. mainland transportation: truck, rail, and air.

FREIGHT BILL AUDIT/PAYMENT

AIMS Logistics • www.aimslogistics.com

AIMS Logistics, a global freight payment and transportation management company, offers customized solutions and personalized customer service in each of its four divisions: AIMS Payables provides custom freight audit and payment solutions; AIMS Europe provides freight payment solutions for European locations; AIMS Solutions provides custom transportation management services; and AIMS Express offers nationwide truckload services and dedicated operations, truckload management, and brokered truckload services. For an overview of AIMS’ business units, please visit the web site.

Cass Information Systems • www.cassinfo.com

Cass is an information services company with a primary focus on transaction processing in the area of payables and payables-related services. Cass performs transaction processing at the highest levels in an integrated, efﬁ cient, systematic approach using proven core competencies: data acquisition, data management, information delivery, and ﬁ nancial exchange. Since its founding in 1906, the Cass organization has continually renewed and reinvented itself in response to a changing and challenging marketplace. Find out more at the Cass web site.

CT Logistics • www.ctlogistics.com

CT Logistics is a multi-faceted organization comprised of three distinct, yet closely related companies. Its core strength and expertise is centered on freight audit and freight payment as well as rating solutions. The Commercial Trafﬁ c Company (CT) is a third-party freight audit and freight payment company that performs pre-audit, freight payment, and post- audit services for hundreds of organizations dispersing billions of dollars annually for freight costs. Its premier service offering, AuditPay, capital- izes on the robust functionality of FreitRater™ to beneﬁ t client companies wanting a precise pre-audit and payment process performed.

110 Inbound Logistics • September 2007 IN THIS SECTION: Freight Bills - Forwarders

Freightgate • www.freightgate.com

The Freightgate team has developed and supported Internet solutions for the logistics community since 1994. After pioneering shipment tracking and tracing, the ﬁ rst multi-modal online freight exchange, and the Web service-enabled PLTX platform, Freightgate is continually evolving to ensure that customers enjoy a competitive advantage in every facet of the logistics management lifecycle – procure, optimize, execute, monitor/control, and audit/pay. PLTX provides a fully modular, scalable and integrated solution that adapts to the business needs of enterprises and service providers.

National Trafﬁ c Service • www.natrafﬁ c.com

National Traffi c Service is a leader in the freight audit and freight bill payment industry. It uses the latest technology, carrier rating programs, and information processing systems to perform the fastest, most accurate, and most complete freight audit in the industry today. Superior freight payment services, maximum freight bill audit savings, reduced internal administrative expenses, extensive Internet reporting tools, a wide variety of reporting formats, and UPS and FedEx parcel audits are just some of the signifi cant advantages National Traffi c Service customers have at their disposal. Find out more by logging on to the web site.

nVision Global • www.nvisionglobal.com

nVision Global offers complete Web-based freight bill audit and payment software, capable of capturing from 24 to 110 pieces of information from carrier freight bills and other related documents. Date veriﬁ cation is performed automatically to ensure the accuracy of crucial information on your freight bills by cross-referencing against bills of lading, purchase orders, and others. Pricing audits are also performed to verify freight bill prices based on your own negotiated carrier pricing agreements. Freight charges are also itemized to include accessorial charges and other shipping expenses. Tolerances based on dollar amounts or percentages can be set, and multiple allocations of accounting codes are possible.

FREIGHT FORWARDERS

Panther Expedited Services • www.pantherexpedite.com

Panther Expedited Services is the largest independent provider of ground expedite, special handling and air options for critical freight. With on-demand, single-source solutions, Panther offers direct service to and from any location in the United States, Canada, and Mexico. Through a combination of state-of-the art technology and unsurpassed customer service, Panther has developed a reputation for industry leading on-time performance.

September 2007 • Inbound Logistics 111 IN THIS SECTION: Global Trade - Ocean

GLOBAL TRADE

Werner Enterprises • www.werner.com

Werner Enterprises is a premier transportation and logistics company, with coverage throughout the United States, Canada, Mexico, and China. Werner maintains its global headquarters in Omaha, Neb., with offi ces throughout North America and China. Werner is among the fi ve largest truckload carriers in the United States, with a diversifi ed portfolio of services. Werner’s Value- Added Services portfolio includes freight management, truck brokerage, intermodal, and freight forwarding. Werner, through its subsidiary companies, is a licensed U.S. NVOCC, U.S. Customs Broker, Class A Freight Forwarder in China, licensed China NVOCC and TSA-approved Indirect Air Carrier.

LOGISTICS IT

myLogistics Inc. • www.mylogisticsinc.com

myLogistics™ provides quality technology solutions designed to meet the unique logistics needs of customers. Its core products, based on more than 15 years of development experience, include: routing, scheduling and optimization; Web-native TMS functionality; and ﬂ eet management including Automatic Vehicle Location (AVL) and online GPS tracking. In addition, a full- service mobile solution can be fully integrated to complement these services. Our comprehensive, yet affordable, offerings are driving immediate, real savings and efﬁ ciencies today with a number of top companies.

OCEAN/INTERMODAL

Matson • www.matson.com

Matson is a leader in Paciﬁ c shipping and most noted for its long-standing service to Hawaii, Guam, and Micronesia. Matson’s China – Long Beach Express offers premium, expedited service from Ningbo and Shanghai to Long Beach, including a guaranteed expedited service option to many U.S. destinations. Its subsidiary, Matson Integrated Logistics, is one of the nation’s leading logistics providers, with expertise in all aspects of U.S. mainland transportation: truck, rail, and air.

REVERSE LOGISTICS

Ingram Micro Logistics • www.ingrammicrologistics.com

Ingram Micro – a $31.4-billion Fortune 100 company and global leader in technology, distribution, and supply chain services – provides services to more than 1,400 manufacturers and 170,000 resellers in more than 100 countries around the world. Ingram Micro Logistics, the logistics engine behind Ingram Micro, has exhibited over 25 years of industry-leading expertise in delivering best-in-class logistics solutions, strong global alliances, exceptional economies of scale, and a solid focus on reducing supply chain costs. Services include retail and e-commerce fulﬁ llment, transportation and order management, customer service, returns processing, and kitting.

112 Inbound Logistics • September 2007 IN THIS SECTION: Site Selection — Transport Mgmt.

SITE SELECTION

Binswanger • www.binswanger.com

Binswanger is a global real estate organization uniquely positioned to provide a full range of cross-border services, including site selection. Its exceptional knowledge of states, communities, individual property owners, developers and the transactions they are willing to structure, enables Binswanger to analyze and compare the best alternatives available.

TVA Economic Development • www.tvaed.com

TVA’s GIS-based Web site helps businesses and site selection consultants identify the best properties available in the 80,000-square-mile TVA region. Search for available properties and buildings, ﬁ nd demographic data, and download maps at TVAsites.com. Your source for economic development information and services in the seven-state TVA region is TVAed.com.

SUPPLY CHAIN MANAGEMENT

Velocity Express • www.velocityexpress.com

Velocity Express Real Time Delivery. As America’s only national ground shipping provider dedicated exclusively to time-deﬁ nite regional delivery, Velocity Express meets the regional delivery needs of companies across multiple industries. Logistics and delivery services offered by Velocity Express include: small package delivery, pallet delivery, dedicated delivery, on-demand delivery, home delivery and supply chain solutions.

TRANSPORT/FREIGHT MGMT.

Arcline (2000) Inc. • www.arcline2000.com

Arcline (2000) Inc. develops advanced dispatch management software solutions for the transportation industry. Our objective and commitment is to provide a complete business solution for truck ﬂ eets and freight brokers that is reliable, easy to use, and affordable. We pride ourselves as being Partners for the Future with our clients; and employ a customer-driven development approach. Contact us now to schedule a personalized, online demonstration and inquire about our in-house ﬁ nancing and leasing.

September 2007 • Inbound Logistics 113 IN THIS SECTION: Trucking

TRUCKING

Averitt Express • www.averittexpress.com

Averitt Express is a full-service freight transportation and logistics provider, offering the best in LTL, expedited, truckload, dedicated, logistics, and international transportation services. Averitt operates more than 80 service centers and serves more than 50,000 direct points throughout the Southern United States, Canada, Mexico, and the Caribbean. Averitt also provides international transportation services to 100 different countries and more than 300 international destinations. See what Averitt can do for you, visit the web site today.

Bilkays Express • www.bilkays.com

Bilkays Express sets the standards in shipping by which all others are judged. Businesses throughout the Northeast have come to depend on Bilkays’ accurate, on-time delivery for all their shipping needs. Why? Because we get the job done better for less by maintaining a modern state-of-the-art ﬂ eet so you can be sure your shipments are on the road to an on-time delivery. We provide overnight delivery to the greater New York, New Jersey, and Connecticut metropolitan areas. In addition, Bilkays provides extended overnight and second-day delivery to all of New England and the Middle Atlantic region. Find out more about how Bilkays can meet your transportation needs by visiting its web site.

Con-way Freight • www.con-way.com/freight

Con-way Freight provides day-deﬁ nite less-than-truckload freight delivery throughout the continental United States, Hawaii, Alaska, Puerto Rico, the Caribbean, Canada, and Mexico. With more than 450 locations, the company provides next-day direct service to more locations than any single LTL carrier in North America. To learn more about Con-way Freight, visit us at www.con-way.com/freight.

Covenant Transport • www.covenanttransport.com

Covenant Transport Inc. is one of the 10 largest truckload carriers in the United States and operates the industry’s largest fl eet of team-driven tractors. Covenant offers just-in-time and other premium transportation services, focusing on longer lengths of haul and selected traffi c lanes to enhance equipment utilization, improve operating effi ciency, and deliver the equipment availability demanded by major shippers. Track loads, locate trailers, and fi nd out more by visiting the Covenant web site.

114 Inbound Logistics • September 2007 IN THIS SECTION: Trucking

CRST • www.crst.com

When it comes to today’s complicated supply chain environment, it’s important to look at the big picture. Through its six divisions, CRST provides a broad array of transportation solutions, including Van and Flatbed as well as brokerage and transportation management services. CRST’s Operating Divisions are made up of CRST Logistics and CRST’s asset-based Carrier Group, which consists of CRST Van Expedited, CRST Malone, CRST Premier, CRST Dedicated Solutions and CRST Capacity Solutions. For more information, visit www.crst.com.

Erb Group of Companies • www.erbgroup.com

The Erb Group of Companies developed from a one-man operation in 1959 to an industry leader that currently employs over 1,200 staff and 140 owner/operators across a network of 10 terminals. Customers rely on Erb transportation for the smooth delivery of time- and temperature-controlled products to more than 24,000 consignees throughout most of Canada and all 48 continental states. Whether you visit the web site as a customer, potential employee, or just a curious guest … take some time to get to know Erb – the refrigerated transportation specialists.

Lily Transportation Corp. • www.lily.com

Lily provides dedicated contract carriage for companies that have time-, temperature- or customer-sensitive deliveries. Utilizing the Lily Platform for Continuous Improvement allows Lily to track, report, and take action based on data to continuously improve delivery results. Some customers: Whole Foods Markets, Lindt Chocolates, VersaCold, Legal Sea Foods and NAPA. Our people, process, and knowledge deliver exceptional results.

Lynden • www.lynden.com

Over land, on the water, in the air – or in any combination – Lynden has been helping customers solve transportation problems for almost a century. Operating in such challenging areas as Alaska, Western Canada and Russia, as well as other areas around the globe, Lynden has built a reputation of superior service to diverse industries.

September 2007 • Inbound Logistics 115 IN THIS SECTION: Trucking

Old Dominion Freight Line • www.odﬂ .com

Old Dominion Freight Line is a Super Regional motor carrier serving both regional and interregional markets. Check out its web site for online features including company information, chairman’s message to keep you up to date on Old Dominion activities, transit times, class rates, pickup requests, employment opportunities, the latest international services, and a customer secured area. By providing these online features, Old Dominion reinforces its commitment to becoming the premier transportation company in the industry.

Ruan • www.ruan.com

At Ruan, we understand what moves business: ideas. It’s a matter of vision, creativity, innovation and strong partnerships. In terms of transportation services, it’s about moving goods or materials to where they need to go, when and how it’s most efﬁ cient and proﬁ table. This is what we’ve delivered for our customers, day in and day out, since 1932. Find out why the right partner can drive costs out of your supply chain – call 866-RUAN-NOW or visit our Web site – ruan.com.

Schneider National • www.schneider.com

Schneider National is more than just truckload services, it’s the leading provider of premium truckload and intermodal services. Schneider National creates transportation solutions for customers using the broadest portfolio of services in the industry. Schneider National has several divisions that provide transportation and transportation-related services: One-way Truckload, Dedicated, TruckRail, OptiModal, Brokerage, and Expedited. Visit Schneider’s site to ﬁ nd out more about the company and the services it provides.

Universal Truckload Services Inc. • www.goutsi.com

With headquarters and administrative functions based in Warren, Mich., Universal Truckload Services Inc. (UTSI) is a primarily non-asset-based provider of transportation services to shippers throughout the United States and in the Canadian provinces of Ontario and Quebec. UTSI conducts its operations through operating subsidiaries under the brand names Mason and Dixon Lines, Mason Dixon Intermodal, Economy Transport, Louisiana Transportation, Great American Lines, CrossRoad Carrier, and Universal Am-Can. Find out how UTSI can meet your trucking needs by visiting the web site today.

116 Inbound Logistics • September 2007 If we say we can,WE CAN.

Lots of companies talk about integrated supply chain solutions.

At Landair, we don’t just talk about it…we get it done.

That’s why we custom-tailor each solution according to your company’s specific transportation and distribution needs. After all, our main goal is ensuring ultimate efficiency. And we do it by offering world-class services:

• Dedicated Services • Warehousing & Distribution • Truckload Services • Third-party Logistics

By combining any or all of these services, we provide exactly what you need—and nothing you don’t. It’s our way of staying flexible—adapting to your needs—and helping you keep your costs down and your profitability up.

Visit us online to see how one of Landair’s Solutions From the Ground Up can improve your bottom line. CALENDAR YOUR LOGISTICS DATEBOOK

Oct. 21-23, 2007, APICS International Nov. 7-9, 2007, Air Cargo Americas The symposium includes a plenary day, Conference & Expo, Denver, Colo. The 2007 Trade Show, Miami, Fla. The Air a ﬁ eld trip, and workshops. Some top- conference focuses on the importance of Cargo Americas International Congress ics on the agenda are dangerous goods vision as it pertains to individuals, orga- and Exhibition is the largest air cargo packaging; classroom methods; radio- nizations, and the industry. Attendees exhibition in the Western Hemisphere. actives for instructors; and regulations choose from 100 educational sessions The 2007 show offers excellent oppor- review. covering everything from industry stan- tunities for companies to market their 800-621-5808 x2350 dards to new advancements. products and services to leading manu- www.airregs.com/conferences 888-889-4674 facturers, exporters, freight forwarders, www.apics.org importers, and distributors. March 9-12, 2007, Council on Safe 305-871-7910 Transportation of Hazardous Articles Oct. 21-24, 2007, CSCMP 2007, www.aircargoamericas.com 2008 Annual Forum, St. Petersburg, Philadelphia, Pa. This year’s event fea- Fla. Expand your knowledge, sharpen tures new speakers, fresh topics, and Nov. 28-30, 2007, Dangerous Goods your skills, network, and share best all the latest information every supply Symposium for Instructors, Deerﬁ eld practices with hazmat professionals chain professional needs to know. Don’t Beach, Fla. Labelmaster sponsors this at COSTHA’s annual forum and expo. miss keynote speaker Carly Fiorina, for- unique, three-day symposium that The 2008 forum features an exhibit area mer Hewlett-Packard CEO. enables instructors responsible for dan- near the general sessions. 630-574-0985 gerous goods training to network and 703-451-4031 http://cscmp.org discuss important trends and issues. www.costha.com

educate. entertain. enlighten.

Make no mistake; your company’s success is directly linked to its ability to fulfill orders in a timely and efficient manner. And no event is more dedicated to providing you with the tools to accomplish this than… PARCEL Forum. Dedicated to covering every aspect of the small-shipment supply chain including; Order Entry, Fulfillment, Warehousing, Material Handling, Picking, Packaging, Labeling, ADC/Barcoding/RFID, Manifesting, Scheduling, Third-Party Logistics, Returns and Transportation — PARCEL Forum delivers the goods. Meet with 60 of the parcel shipping industry leading companies in our exclusive exhibitor showcase!

REGISTER BY OCTOBER 10th & SAVE! www.PARCELforum.com or call 866.378.4991 (9am – 5pm EST) T HALL IBI AD H M X I E S S E I SAVE O E

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TRANSPORTATION LOGISTICS/TRANSPORTATION GLOBAL SUPPLY CHAIN CARRIER ROUNDTABLE PUBLICATION $300 ON THE PARTNER MANAGEMENT PARTNER MANAGEMENT PARTNER SPONSOR PARTNER CONFERENCE Intermodal Expo & TransComp Join us this November for the 25th anniversary of the Intermodal Expo and the TransComp Exhibition, the year’s most valuable transportation industry event. November 11-13, 2007 in Atlanta, the South’s most dazzling city, at the Georgia World Congress Center.

LIMITED EXHIBIT SPACE AVAILABLE!

Visit the web site, www.freightexpo.net, for additional information and an updated floor plan, or call E.J. Krause & Associates at (301) 493-5500.

For more information contact:

Intermodal Association of North America The National Industrial Transportation League 866-438-3976 703-524-5011 [email protected] [email protected] www.intermodal.org www.nitl.org

The Intermodal Expo and TransComp are held in cooperation with NITL's 100th Annual Meeting, IANA's Annual Membership Meeting, and TIA's Fall Meeting. INBOUNDCLASSIFIED

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SEPTEMBER 17 - 18, 2007 HYATT REGENCY DFW • DFW AIRPORT, TX SSUPPLYUPPLY CCHAINHAIN &LLOGISTICSOGISTICS How are airlines, OEMs and MROs like YOU tackling supply chain challenges?

Register now to join the more than 25 VIP Airline decision-makers already conﬁ rmed to attend.

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120 Inbound Logistics • September 2007 Sovereign Logistics Licensed Customs Broker

Angel investor looking for a professional New York State licensed customs broker interested in a business venture. Investor looking to expand current business to include brokerage services.

Interested candidates please fax resume to Donna 845-229-8898

JON FRICKE TRANSPORTATION/LOGISTICS RECRUITER HIGH ROAD PARTNERS, INC. Leading the transportation, logistics, distribution and supply chain vertical by identifying, recruiting and placing superior talent.

PO Box 1627, Bentonville, AR 72712 • 479.271.0505 Ext. 113 www.snellingtrans.com • [email protected]

GET IN GEAR With Inbound Logistics’ FREE online RFP service.

Create a database of prospective motor carrier partners. Build your knowledge base. Prepare your RFP list.

The Trucking RFP is your opportunity to have motor carrier experts look at your speciﬁ c over-the-road challenges and needs, and give you free, no-obligation advice, solutions, and information speciﬁ c to your request. To get started, go to inboundlogistics.com/rfp

September 2007 • Inbound Logistics 121 RESOURCE 09.07 CENTER INBOUND LOGISTICS WORKS FOR YOU!

3PLs ■ DF Young pg. 27 When you look at the world through fresh eyes, ■ AFN pg. 31 you’ll see not just logistics as usual, but a fl exi- AFN offers logistics solutions to drive business ble response to the unusual. That’s how DF Young forward. As your strategic partner, AFN keeps approaches international logistics. goods moving with customized solutions to meet www.dfyoung.com 610-725-4000 your specifi c supply chain needs - every time. www.afnww.com 866-766-8348 ■ FMI International pg. 32 FMI’s experienced logistics professionals help ■ Agility pg. 17 retailers develop the most effi cient, cost-effective For Agility employees in more than 100 countries supply chains. around the world, success isn’t measured in boxes www.fmiint.com 732-750-9000 loaded or shipments tracked. Success occurs when partners achieve their goals. ■ Freightgate pg. 106 www.agilitylogistics.com 714-513-3000 Procure, optimize, execute, monitor and control, For a specifi c measure and fi ne tune, audit and pay - no matter response, contact ■ Averitt pg. 59 what your global business objective is, Freightgate these advertisers No two supply chains are alike; that’s why Averitt offers the best-in-class services. directly. Please tell approaches them all the same way. First it ana- www.freightgate.com 714-799-2833 them you saw their ad in lyzes the way your goods and information fl ow, Inbound Logistics. then determines how to improve it. Averitt creates ■ Kelron Logistics pg. 29 supply chain solutions that are uniquely yours. Other companies deliver freight, Kelron Logistics www.averittexpress.com 800-AVERITT For general delivers intelligent transportation. Working with questions about Kelron will optimize your transportation net- particular industry ■ BNSF Logistics pg. 56 work, improve your supply chain integration, and segments, use Don’t worry about getting sidetracked by logistics increase profi tability. Add Kelron to your intelli- the card between problems. BNSF Logistics brings maximum effi - gence equation. pages 32-33 and ciency to projects of all sizes. Focus on your goal, www.kelron.com 866-695-6414 pages 96-97. BNSF will get you there. www.bnsfl ogistics.com 877-853-4756 ■ Landair pg. 117 If Landair says they can do it, they will. For the For faster service, ■ CEVA Logistics pg. 35 best in warehousing and distribution, truckload, go online: TNT Logistics is now CEVA Logistics. CEVA is ded- dedicated or full 3PL services, Landair will get inboundlogistics.com/rfp icated to fostering continuous innovation and your costs down and customer service levels up. improving customer supply chains. This is what www.landair.com 888-526-3247 the new name represents. www.cevalogistics.com 904-928-1400 ■ Landstar Global Logistics pg. 63 No matter what your logistics challenge, Landstar ■ CRST Premier Transport Cover 3 Global Logistics’ seamless network of indepen- Get more regional capacity, more reliable deliv- dent sales agents, warehouse capacity owners, eries, and more customer service with CRST and third-party transportation capacity providers Premier Transport. will meet your changing needs. www.crst.com 800-736-CRST www.landstargloballogistics.com 800-867-4472

■ Dart Advantage Logistics pg. 47 ■ LeSaint Logistics pg. 11 Frustrated with your current logistics provider? Looking for a logistics provider that knows the Relax! Dart has you covered with comprehensive retail industry? Turn to LeSaint Logistics. LeSaint logistics solutions tailored to meet your speciﬁ c can hit the ground running with the operational needs. www.backhauler.com 877-902-5728

122 Inbound Logistics • September 2007 Use our Resource Center and let the information you need ﬁ nd you.

knowledge, system fl exibility, and service perfor- you a complete 360-degree view of your logistics mance levels critical to the industry, while improv- network. ing your bottom line. www.salemlogistics.com 866-800-9129 www.lesaint.com 847-783-4940 ■ SinoNRS pg. 93 ■ Lily Transportation Corp. pg. 49 National Retail Systems (NRS) has teamed up Many well-known companies have already come with Sinotrans, China’s largest integrated logis- to Lily Transportation for their dedicated logistics tics company, to offer a revolutionary solution for needs. Trust the company named after Mom. seamless factory-to-store import delivery. It’s the www.lily.com 800-248-LILY best of both worlds in one logistics partner. www.sinonrs.com 877-345-4-NRS ■ Lynden pg. 45 When it comes to moving your shipments to, from, ■ Werner Enterprises pg. 53 or within Alaska, all transportation companies are As the leader in transportation technology and not alike. Lynden’s Dynamic Routing service can innovation, Werner continues to be a premier pro- save you money by matching the mode to your vider of logistics solutions globally while remain- For a specifi c deadline and budget. ing customer-focused and asset-based. response, contact www.shiplynden.com 888-596-3361 www.werner.com 800-228-2240 these advertisers directly. Please tell them you saw their ad in ■ Penske Logistics pg. 67 Career Development/Education Inbound Logistics. Penske Logistics is fueled by a determination to help you achieve profi table growth. From trans- ■ Baruch College pg. 103 Earn a certifi cate in international trade from portation management to integrated logistics, For general Baruch’s Weissman Center for International Penske always looks ahead, seeking new ways to questions about Business and the Division of Continuing and fi nd effi ciencies in your supply chain. particular industry Professional Studies, N.Y. Certifi cates include www.penskelogistics.com 800-221-3040 segments, use Import/Export Trade Operations; Customs Broker the card between License Preparation, and more. ■ Ruan pg. 37 pages 32-33 and Ruan is more than just a nationwide transpor- www.baruch.cuny.edu/caps 866-399-1529 96-97. tation company, it’s an advocate for your bottom line. Whether your solution calls for logistics, ■ Bellevue University pg. 92 warehousing, intermodal, cross-docking, or vir- Get real learning for real life at Bellevue For faster service, tually anything else in between, Ruan can move University. Select from more than 20 accelerated go online: your supply chain forward. BA and 12 MA degrees online – including degrees inboundlogistics.com/rfp www.ruan.com 866-RUAN-NOW for logistics professionals. www.bellevue.edu 800-756-7920 ■ Ryder pg. 19 Name your product, and Ryder will customize a ■ Institute of Logistical Management pg. 38 supply chain for it. Unmatched experience, fl exi- Looking for distance learning in logistics best bility, and expertise make Ryder the one to turn to practices? The Institute of Logistical Management all over the globe. offers courses in many areas of logistics and sup- www.ryder.com 888-88-RYDER ply chain management. www.logisticseducation.edu 609-747-1515 ■ Salem Logistics pg. 55 Seeking logistics technology that fi ts your specifi c ■ Lion Technology pg. 99 needs? Salem Logistics employs SCANEX to give Lion’s unique online hazmat training brings your team up to speed on DOT regulations. www.lion.com/hazmat 888-546-6511

September 2007 • Inbound Logistics 123 RESOURCE 09.07 CENTER INBOUND LOGISTICS WORKS FOR YOU!

Events ■ Velocity Express pg. 14 As America’s largest national provider of ■ National Industrial Transportation League pg. 119 regional shipping solutions, Velocity Express is NIT League’s 100th Annual Meeting and big enough to be where your customers are, and Transcomp 2007 conference takes place Nov. 9-14, ﬂ exible enough to be there when your business in Atlanta. See the latest products, services and demands it. technology applications designed to enhance your www.velocityexpress.com 888-839-7669 company’s proﬁ tability. www.nitl.org 703-524-5011 Freight Payment Services

■ Parcel Forum pg. 118 ■ Cass Information Systems pg. 83 Meet with more than 60 parcel shipping industry All freight payment services are not equal. With leaders October 10 in Chicago. the most industry experience for implementing complex processing systems, Cass Information www.parcelforum.com 866-378-4991 Systems is the leader in customized freight bill audit, rating, payment, and information services. For a specifi c Expedited Air/Ground response, contact www.cassinfo.com 314-506-5500 these advertisers ■ BAX Global pg. 7 directly. Please tell With BAX Guaranteed Overnight, you have a guar- ■ CT Logistics pg. 85 them you saw their ad in anteed transportation solution that delivers goods CT Logistics’ FreitRater software is exclusive, its Inbound Logistics. throughout North America, time-defi nitely, or you solutions are customized, and its reputation is don’t pay. unsurpassed. Contact CT Logistics to fi nd out www.baxglobal.com 800-CALL BAX more about its pre-audit, freight payment, TMS For general software and other innovative ideas. questions about ■ DHL pg. 13 www.ctlogistics.com 216-267-2000 particular industry No one makes international shipping easier than segments, use DHL. Your next international trip can be easier, ■ National Traffi c Service pg. 82 the card between too. Receive Fodor’s 1,001 Smart Travel Tips free, If you are looking to streamline and auto- pages 32-33 and just for completing DHL’s survey. mate your freight bill payment process look at 96-97. www.yourdhl.com/fodorsX 800-401-5293 Traffi cPro from National Traffi c Service. Traffi cPro fi nds duplicate payments from all your TL, LTL, package shipments and airfreight bills. For faster service, ■ FedEx Express Freight pg. 21 go online: FedEx Express Freight now offers time-defi nite www.traffi cprosoftware.com 800-775-8253 inboundlogistics.com/rfp delivery to more places than ever before. FedEx can assist you in shipping to nearby places or far- ■ nVision Global pg. 81 away places. Count on FedEx to go the distance. nVision Global helps you focus on real oppor- www.fedex.com/goingfarther 800-GO-FEDEX tunties by providing operational business intelligence. Contact nVision Global for a personal presentation. ■ Panther Expedited Services pg. 39 Turn to the carrier that’s fi rst in secure and pro- www.nvgts.com 770-474-4122 fessional shipping, and trusted to deliver on-time, every time. Turn to Panther. ■ PowerTrack pg. 87-88 www.pantherexpedite.com 800-685-0657 Freight payments a puzzle? Turn to PowerTrack, the largest freight payment business in the world. With PowerTrack, your company can save money ■ Pilot pg. 25 with exceptional audit and payment effi ciency. When you need to track down the fastest route to Puzzle solved. anywhere, Pilot’s CoPilot online shipping naviga- tor helps you get the job done. www.powertrack.com 800-925-4324 www.pilotair.com 800-HI-PILOT

124 Inbound Logistics • September 2007

RESOURCE 09.07 CENTER INBOUND LOGISTICS WORKS FOR YOU!

■ Technical Traffi c Consultants pg. 84 Trucking For 33 years, Technical Traffi c Consultants has delivered the highest levels of service and quality. ■ Bilkays pg. 101 TTC is SAS 70-compliant, offering a full range of When you need a Northeast specialist, Bilkays data management services. Express is the expert you are looking for. www.technicaltraffi c.com 845-770-3510 Warehousing, logistics solutions, technology and transportation expertise all add up to make Bilkays your expert in the area. Insurance www.bilkays.com 800-526-4006 ■ Travelers Inland pg. 9 No one better understands your business’s unique ■ Carlile pg. 18 transit risks than Travelers Inland. As one of the With routes through Canada or the Port of nation’s largest commercial inland marine insur- Tacoma, Carlile has the know-how to move your ers, Travelers offers risk control services to review cargo to and from Alaska or inbound to the West your operations and specialized claims and inves- Coast and all across the United States. For a specifi c tigative services dedicated to logistics. www.carlile.biz 253-874-2633 response, contact www.travelers.com these advertisers ■ Con-way Freight pg. 5 directly. Please tell Logistics IT Con-way Freight’s legendary regional service and them you saw their ad in long-haul expertise – all with one pickup – makes it Inbound Logistics. ■ Sterling Commerce pg. 3 the undisputed champ. Your freight deserves the Only Sterling Commerce has business solutions best; get Con-way Freight in your corner. designed specifi cally to adapt to global transpor- www.con-way.com/combinations11 800-763-2222 For general tation demands. See how to knock down the barri- questions about ers to growth with Sterling Commerce. ■ Covenant Transport pg. 61 particular industry www.sterlingcommerce.com 800-299-4031 segments, use Covenant Transport’s regional, dedicated, temperature-controlled, and expedited long-haul services the card between Printers pages 32-33 and are ready to run for you. Whatever your shipping needs are, Covenant fi ts the bill. 96-97. ■ Zebra pgs. 94, 105 What does it take to integrate multiple thermal www.covenanttransport.com 800-974-8332 printers with different outputs (speed and vol- For faster service, ume)? All it takes is ZebraNet! ■ ERB Group pg. 26 go online: www.zebra.com/inblog 800-423-0442 Are you looking for a cool and sensitive carrier inboundlogistics.com/rfp partner? Trust ERB Group with your time-sensitive refrigerated shipments across the United Risk Management States and Canada. ■ TT Club pg. 30 www.erbgroup.com 888-768-1113 If you are looking for stability when seeking transportation insurance, be certain to consider what ■ FedEx pg. 23 TT Club offers. Four FedEx step van competitors took top www.ttclub.com 201-557-7300 honors in their state’s Step Van Class State Championships. Let FedEx’s professional drivers Site Selection deliver your next shipment. www.fedex.com 800-GO-FEDEX ■ Binswanger pg. 97 Looking for a great facility in the Southwest? ■ Jevic pg. 125 Check out Binswanger’s offering in Plano, Texas – If you are seeking small carrier attention with big a 528,000-square-foot fully air-conditioned build- carrier service standards you’ll fi nd that Jevic ing on 26 acres. offers the best of both worlds. www.binswanger.com/plano_tx 972-663-9494 www.jevic.com 800-GO-JEVIC

126 Inbound Logistics • September 2007 Use our Resource Center and let the information you need ﬁ nd you.

■ Old Dominion pg. 43 ■ Universal Truckload Services pg. 65 Old Dominion’s full range of products and services From truckload and brokerage services to offers solutions you can count on for domestic, intermodal support and warehousing, Universal global, and expedited transportation. Truckload Services is the one-stop shop for truck- www.odfl .com 336-889-5000 load shippers. www.goutsi.com 800-233-9445 ■ Schneider National Cover 4 Schneider doesn’t move loads; it delivers the bot- Trucks tom line. For the best in truckload, intermodal, expedited, dedicated, bulk, brokerage, or interna- ■ Ford Cover 2-page 1 tional put Schneider to work on your bottom line. Check out the bold, new look of the ‘08 Super www.schneider.com 800-298-2395 Duty. With a payload up to 7,830 pounds, and clean diesel technology that churns out 325 hp and 600 lb.-ft. of torque, this baby can deliver the goods. www.commtruck.ford.com 800-392-3673 For a specifi c INDEX response, contact these advertisers ADVERTISER PAGE ADVERTISER PAGE directly. Please tell AFN 31 Landair 117 them you saw their ad in Agility 17 Landstar Global Logistics 63 Inbound Logistics. Averitt 59 LeSaint Logistics 11 Baruch College 103 Lily Transportation Corp. 49 For general BAX Global 7 Lion Technology 99 questions about Bellevue University 92 Lynden 45 particular industry Bilkays 101 National Industrial Transportation League 119 segments, use Binswanger 97 National Traffi c Service 82 the card between BNSF Logistics 56 nVision Global 81 pages 32-33 and Carlile 18 Old Dominion 43 96-97. Cass Information Systems 83 Panther Expedited Services 39 CEVA Logistics 35 Parcel Forum 118 For faster service, Con-way Freight 5 Penske Logistics 67 go online: Covenant Transport 61 Pilot 25 inboundlogistics.com/rfp CRST Premier Transport Cover 3 PowerTrack 87-88 CT Logistics 85 Ruan 37 Dart Advantage Logistics 47 Ryder 19 DF Young 27 Salem Logistics 55 DHL 13 Schneider C4 ERB Group 26 SinoNRS 93 FedEx 23 Sterling Commerce 3 FedEx Express Freight 21 Technical Traffi c Consultants 84 FMI International 32 Travelers Inland 9 Ford Cover 2-page 1 TT Club 30 Freightgate 106 Universal Truckload Services 65 Institute of Logistical Management 38 Velocity Express 14 Jevic 125 Werner Enterprises 53 Kelron Logistics 29 Zebra 94, 105

September 2007 • Inbound Logistics 127 THELAST MILE THE SUPPLY CHAIN IN BRIEF

Overseas Outsourcing: Are you paying enough attention? P Policies Do you have procedures R to ensure corporate objectives are O Recalls followed? Origin Do you have a program to Do you identify and inform consumers and T M agencies of defects? verify product origin? Testing Management Do you test products Do you have commitment and (internally/externally) corporate objectives? and document/track I results? Inspections Do you inspect your foreign factories (announced/ unannounced)? Shout it Out The torrential problems facing today’s exports from China should serve as a wake-up call to all importers that the time to act is now: be proactive and not ILLUSTRATION: Guy Parsons / iStockPhoto.com reactive. Companies need to focus on their entire global supply chain, and know all that is necessary to ensure that the safety and quality of imported products is not inferior or somehow Y compromised. You Know your product and must exercise reasonable care S T to protect consumers. Suppliers Do you have quality/safety Training requirements in writing/ Do you train internal units acknowledged? A E and suppliers on product safety? Audit Examine Do you have a product Do you examine what’s safety audit plan? F going on with your product outside the U.S.? Follow Do you follow or benchmark what your competitors are SOURCE: Despina Keegan, doing or recommending? JPMorgan Global Trade Services, 2007

128 Inbound Logistics • September 2007