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November 2008 ALSO INCLUDES: NASCO NORTH AMERICA’S SUPERCORRIDOR COALITION H.O.W. HELP ON THE WAY www.inboundlogistics.com THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS • NOVEMBER 2008 EXPEDITED SERVICE: THE ULTIMATE TEST CRITICAL SHIPMENTS: Delivery Under Pressure Surviving Holiday Shipping PHARMA LOGISTICS: Prognosis Positive Don’t Push Y With Your Pu Make your business instantly more productive b that comes with the Verizon Wireless Network an coverage and 24/7 customer service. Verizon Wir Let Verizon Wireless make your job easier and b Call 1.800.VZW.4BIZ Click verizonwireless.com Your Luck ush To Talk. WANT MORE HARD-WORKING OPTIONS ON YOUR PUSH TO TALK PHONE? y choosing the only Push to Talk service nd its reliable voice service, coast-to-coast Field Force Manager to dispatch jobs, track reless. The smart choice for Push to Talk. timecards and more. VZ NavigatorSM for turn-by-turn directions. business more productive. Push to Talk is available only with other VZW Push to Talk subscribers; coverage m/pushtotalk Visit a Verizon Wireless store not available everywhere. Network details & coverage maps at vzw.com. Device capabilities: add’l charges apply. © 2008 Verizon Wireless. Is the wrong size company handling your international shipments? Smaller shippers are often under-equipped to handle your business. And mega shippers can’t offer you personalized service. That’s why Pilot Freight Services is the right fit. We’re large enough to offer shipping to 190 countries, customs clearance and import/ export capabilities, plus convenient online service that lets you get quick quotes, book, ship and track cargo 24/7. Yet we’re flexible enough to offer you many air, ocean and custom delivery options to precisely match your unique scheduling and budget requirements. Pilot isn’t just global shipping, either. We’re also the right fit for domestic deliveries, logistics, automotive and special services. Visit our website or call 1-800-HI-PILOT. When bigger isn’t better, and smaller can’t give you enough options, Pilot has the right size solution. 1-800-HI-PILOT pilotdelivers.com © 2008 Pilot Freight Services A HOLIDAY DEMAND STORY page 43 THE MAGAZINE FOR DEMAND DRIVEN LOGISTICS November 2008 • Vol. 28 • No. 11 INBRIEF INPRACTICE 9 10 TIPS Selecting pallets: wood vs. plastic. READER PROFILE Bill Justus: Home Sweet Home 12 TRENDS In his role as vice president of supply chain for Houston-based H.R. 4040 defi nes 3PLs…HP builder David Weekley Homes, Bill Justus launched the innovative announces suppliers’ emissions National Trading Partner Survey, a tool that gives manufacturers and data…The riskiest places to distributors constructive feedback on their products and services. do business…The Home Depot evaluates its inventory needs. DC SOLUTIONS Inventory Software Goes With the Flow 18 GLOBAL LOGISTICS U.S. regional economic Using the right tools to handle inventory, purchasing, forecasting, development groups court global and other enterprise functions helps keep start-up company investors…CN thinks long haul with Aguaworks’ head above water. shortline…Hanesbrands cuts costs with a new globalization strategy… Saudi Arabian companies hesitate LIT TOOLKIT to partner with third-party logistics Good Chemistry Yields Better Inventory Management providers. Chemical manufacturer Celanese experiments with a formula for curing 99 TECH UPDATE its inventory woes. 105 NEW SERVICES 114 LAST MILE: TRADING SPACES INDEPTH Expedited Deliveries: Going Critical When an item really has to get there — and fast — critical shipment service providers spring into action. November 2008 • Inbound Logistics 1 THE MAGAZINE FOR DEMAND DRIVEN LOGISTICS PHARMA LOGISTICS page 81 November 2008 • Vol. 28 • No. 11 INSIGHT INDEPTH 4 CHECKING IN 10 SC PERSPECTIVES All I Really Need to Know (About Finding the optimal route is the key Logistics) I Learned From Rudolph: to delivering goods effi ciently. A Holiday Demand Story 26 IT MATTERS Taking a lesson from a holiday hero with How to successfully manage a glowing red nose, retailers and suppliers long-tail inventories. embrace accurate planning, lean strategies, 30 VIEWPOINT and transportation effi ciency to guide their Negotiating the road to supply chain sleigh through any storm. sustainability. 32 RISKS & REWARDS SPECIAL SUPPLEMENT H.O.W. Are warehouse operators responsible when deliveries go Need to know the best way to manage wrong? risk? Negotiate contracts? Standardize fuel surcharges? Gain visibility? Develop infrastructure? You’ve come to the right place. Find out H.O.W. to handle INFO these questions and more in our annual 102 WEB_CITE CITY library of logistics best practices. 108 CLASSIFIED ECONOMIC DEVELOPMENT SUPPLEMENT 110 RESOURCE CENTER NASCO: North America’s SuperCorridor Coalition The multimodal transportation network known as NASCO runs through the heart of trade in the United States, Canada, and Mexico. Find out what makes this corridor unique and why companies are banding together to support it. SNAPSHOT Pharma Logistics: Prognosis Positive Pharmaceutical manufacturers, drug distributors, and health care providers are taking a double dose of technology and business process improvement to keep consumers safe and competition one step behind. 2 Inbound Logistics • November 2008 Anticipating Canada cross-border freight shipping hassles? FedEx eases the way. FedEx Freight and FedEx National LTL provide reliable regional and long-haul LTL (less-than-truckload) shipping solutions throughout the U.S. By teaming up with FedEx Freight Canada, you have a seamless cross-border solution with the reliability and service needed to quickly move your shipments between the U.S. and Canada. FedEx Freight and FedEx National LTL deliver: • Reliable cross-border service between the U.S. and Canada. • Streamlined, cross-border clearance. • Personal service from our knowledgeable Canada Solutions Team. • End-to-end shipment visibility across the border. • Next-day cross-border service to and from select locations. For more information, contact your account executive or call our Canada Solutions Team at 1.866.FXF.INTL (1.866.393.4685), and let FedEx help make your cross-border shipping easy. All services are subject to the terms and conditions of the FXF 100 Series Tariff. CHECKINGIN Vol. 28, No. 11 November 2008 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 [email protected] ASSOCIATE MANAGING EDITOR Catherine Harden [email protected] Getting All, Like, Demand-Driven CONTRIBUTING EDITORS William Atkinson • Merrill Douglas • John Edwards Lisa Harrington • Amanda Loudin • Robert Malone id you know that a 16-year-old girl in Spain is the logistics genius behind Amy Roach Partridge • Deborah Ruriani • Lisa Terry one of the most sophisticated and effective retail supply chain operations CREATIVE DIRECTOR Michael Murphy Don the planet? Neither does she. [email protected] The typical Zara demand signal – to buy or not to buy – sets in motion a SENIOR DESIGNER Mary Brennan demand-driven process that has the global apparel chain retailer, based in Spain, [email protected] growing in a down market. How is this possible? Zara also expects to open more PRINT/WEB PRODUCTION MANAGER Shawn Kelloway [email protected] than 600 retail units next year. How is that possible? PUBLICATION MANAGER Sonia Casiano Zara also uses expedited shipping, earning more in sales and saving on inven- [email protected] tory and touches to offset the extra transport cost. Even though Zara gets product CIRCULATION DIRECTOR Carolyn Smolin to market quicker than competitors, its logistics process, thanks to demand- driven commitment, is not so fast as to be unmanageable. SALES OFFICES Zara utilizes higher-cost Spanish and European labor to produce 75 percent PUBLISHER: Keith Biondo (212) 629-1560 • FAX: (212) 629-1565 of its line. The savings on containers from the East and inventory in transit, the [email protected] ability to build smaller marketed, targeted lots and eliminate the risk of cheaper WEST/MIDWEST/SOUTHWEST: Harold L. Leddy knock-offs fl ooding the market, plus the sales increase resulting from speed to (847) 446-8764 • FAX: (847) 446-7985 market, are more than enough to offset the higher costs of domestic and near- [email protected] sourced labor. Marshall Leddy (763) 416-1980 • FAX: (763) 201-4010 Near-sourcing smaller lots keeps inventory investment lower than competitors [email protected] and reduces the markdown risk when demand falls off. Zara uses a hub-and- MIDWEST/ECONOMIC DEVELOPMENT: Jim Armstrong spoke system located in Spain to ship to the world – even to New York and (815) 334-9945 • FAX: (815) 334-1920 Moscow – in 48 hours or less. [email protected] And it all starts with a 16-year-old and demand-driven dedication that reaches SOUTHEAST: Gordon H. Harper into her mind and all the way back to the design boards at Zara headquarters. (404) 350-0057 • FAX: (404) 355-2036 [email protected] Clothing retailers typically rely on designers to set style trends and predict what MOBILE, AL: Peter Muller consumers will want the following season. Zara relies instead on demand intel- (251) 343-9308 • FAX: (251) 343-9308 ligence – determining what is selling in stores and what is popular on the street, [email protected] then
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