February 2010

www.inboundlogistics.com THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS • FEBRUARY 2010

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LOGISTICS PLANNER RFP SOLVING 10+2 page3e 36 THE MAGAZINE FOR DEMAND DRIVEN LOGISTICS

February 2010 • Vol. 30 • No. 2

INSIGHT INPRACTICE 2 CHECKING IN Building the talent supply chain.  READER PROFILE Doing Fine, Moving Wine 6 IN PERSPECTIVE Kathy Zepaltas, director of logistics at Regal Wine Company, consolidated A national transportation policy her company’s logistics operations and transitioned from an insuffi cient turns good ideas into a plan. warehouse to an ultra-effi cient 650,000-square-foot DC. 16 IT MATTERS WMS solutions drive effi ciency.  CASEBOOK Finding the Perfect Fit 18 VIEWPOINT Online haberdasher Bonobos sells pants that fi t just right. Naturally, Keys to better 3PL relationships. it demands the same attention to detail from its third-party fulfi llment 20 3PL LINE partner. Warehouses play a new role. INBRIEF INDEPTH 4 10 TIPS  10 IN FRONT Logistics Education: More is Better Evolving to meet changing industry needs, 12 TRENDS logistics and supply chain education helps 14 GLOBAL LOGISTICS students hone their skills, gain a broader 56 IN BRIEF perspective, and bring bottom-line benefi ts to employers. 58 WHITEPAPER DIGEST 64 LAST MILE:  SPECIAL ADVERTISING SECTION UNCOMMON SENSE Career Solutions Resources to further your logistics INFO education and career. 52 WEB_CITE CITY  ISF Compliance: Solving 10+2 Take an inside look at how importers and exporters are answering the 10+2 60 CLASSIFIED equation driven by a new U.S. Customs and Border Protection security 62 RESOURCE CENTER regulation. (Hint: The answer is not 12.)

February 2010 • Inbound Logistics 1

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner CHECKINGIN

Vol. 30, No. 2 February 2010 THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS www.inboundlogistics.com STAFF PUBLISHER Keith G. Biondo by Felecia Stratton | Editor [email protected] EDITOR Felecia J. Stratton [email protected] SENIOR ASSOCIATE EDITOR Joseph O’Reilly [email protected] ASSOCIATE MANAGING EDITOR Catherine Harden [email protected] ASSOCIATE EDITOR Perry A. Trunick [email protected]

CONTRIBUTING EDITORS America’s Got Merrill Douglas • Cindy Dubin • Amy Roach Partridge • Deborah Ruriani Supply Chain Talent CREATIVE DIRECTOR Michael Murphy [email protected] SENIOR DESIGNER Mary Brennan very state says it wants to attract logistics business that can keep its [email protected] workforce employed. Florida is actually doing something about it. The PRINT/WEB PRODUCTION MANAGER Shawn Kelloway state has gotten behind the Talent Supply Chain, an association of state, [email protected] E PUBLICATION MANAGER Sonia Casiano local, education, and business organizations whose goal is to boost Florida’s [email protected] economy by encouraging and expanding workforce development, training, CIRCULATION DIRECTOR Carolyn Smolin and job retention across the state. While the association is supported by the SALES OFFICES state, its driving forces are the education and business communities. PUBLISHER: Keith Biondo Florida fully supports this association because it recognizes that creating a (212) 629-1560 • FAX: (212) 629-1565 business-friendly climate goes beyond low taxes, reasonable regulatory over- [email protected] sight, and “getting government out of the way of business to spur economic WEST/MIDWEST/SOUTHWEST: Harold L. Leddy (847) 446-8764 • FAX: (847) 446-7985 growth,” as Florida Governor Charlie Crist said at a recent jobs summit. [email protected] Developing a business-friendly environment takes a workforce equipped to Marshall Leddy meet the demands of businesses in a more global economy. (763) 416-1980 • FAX: (763) 201-4010 [email protected] And here’s the exciting part – one of the hottest segments of the Talent MIDWEST/ECONOMIC DEVELOPMENT: Jim Armstrong Supply Chain is actually the supply chain! According to labor market sta- (815) 334-9945 • FAX: (815) 334-1920 tistics, approximately 500,000 workers in Florida perform distribution and [email protected] logistics tasks – earning 33 percent more pay than the state average. When you SOUTHEAST: Gordon H. Harper (404) 350-0057 • FAX: (404) 355-2036 look at the future demand for logistics practitioners, the trend is up. [email protected] In Florida, logistics skills will be in demand for the foreseeable future. MOBILE, AL: Peter Muller Consider the coming expansion of the Panama Canal, current transport (251) 343-9308 • FAX: (251) 343-9308 infrastructure investments at the ports, the anticipated growth of trade and [email protected] NORTHEAST: Rachael Sprinz logistics activity, and the expected baby boom retiree inﬂ ux that will spur in- (212) 629-1560 • FAX: (212) 629-1565 state shipment activity. Tracking that growth is the investment in logistics [email protected]

training by the state, the education community, individual businesses, and FREE SUBSCRIPTIONS business organizations. www.inboundlogistics.com/free

The public/private collaboration of Talent Supply Chain members is not Inbound Logistics supports sustainable just concerned about today’s unemployment numbers; it has tomorrow’s best practices. Our mission is rooted in helping companies match demand to supply, numbers in sight. The Talent Supply Chain has developed a long-term vision eliminating waste from the supply chain. This magazine is printed on paper sourced and plan because they know that it takes years to bear solid results for busi- from fast growth renewable timber.

nesses and their workers, and they realize that the time to invest in logistics Inbound Logistics welcomes comments and submissions. Contact education is now. The association is working to create programs that ensure a us at 5 Penn Plaza, NY, NY 10001, (212) 629-1560, Fax (212) 629- 1565, e-mail: [email protected]. For advertising, next generation of skilled supply chain and logistics practitioners. reprint, or subscription information, call (212) 629-1560, or e-mail [email protected]. Inbound Logistics is distributed Can you apply Florida’s example to your career by using some of the logis- without cost to those qualifi ed in North America. Interested readers must complete and return the qualifi cation card published tics education resources in this issue? How about in your community by in this issue, or may subscribe online at www.inboundlogistics. allying with businesses, schools, and public resources? The time to build your com/free. Subscription price to others: in North America: $95 per year. Foreign subscriptions: $129. Single copy price: No. Amer. $10, own Talent Supply Chain is now. ■ foreign $12, back issues $15. Periodicals postage paid at New York, NY, and additional mailing offi ces.

2 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP YOU NAME IT

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SUPPLY CHAIN, WAREHOUSING & TRANSPORTATION SOLUTIONS

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner 10TIPS STEP-BY-STEP SOLUTIONS

by Deborah Catalano Ruriani

Implementing an RFID Solution

roper management and execu- Locate an RFID equipment vendor. totes or pallets, consider using them tion are key to a successful RFID 4 This can be as simple as calling your to simplify the process and reduce the P implementation project. Santa existing logistics software provider ongoing tag cost burden. Clara, Calif.-based semiconductor com- to fi nd out what readers are compatible pany Intel Corporation experienced with your current infrastructure. Trade Consider the capabilities of your sup- this fi rsthand when it deployed RFID shows, references from existing users, 8 pliers. If you plan to deploy RFID in at its factory’s receiving docks to track and online research are also common inbound logistics operations, your inbound chemicals. Scott Thomas, ways to locate vendors and resellers. suppliers may need help and guidance. senior engineer at Intel, shares what Do not expect them to switch to RFID he learned to help ensure your smooth Understand the costs associated with overnight. RFID implementation. 5 RFID. RFID hardware is only a frac- tion of the deployment cost. The real Be diligent with documentation. Evaluate tracking alternatives. money is in software, integration, and 9 Provide suppliers with a formal 1 Determine if RFID is the best solu- ongoing tag expenses. RFID is just a data request to begin RFID tagging, tion for your company by comparing collection tool. To realize the RFID proj- including a deployment schedule; a all the options, including bar-code labels ect’s value, focus on the systems and primer on RFID and how/where to place and other tools. The more important an processes that can use that informa- tags; minimum performance standards; asset is to your company’s success, the tion to improve supply chain indicators, IT requirements for data fi le transmis- more closely you should track it. such as lowering supply chain risk while sions; and requirements for tag encoding. reducing inventory levels. Most suppliers will also require tests to Bring suppliers on board early in make sure the program will run in their 2 the process. Work with your supply Buy at least one test unit early in the environment. chain partners to identify mutually 6 project. Run the test unit in an area beneficial process improvements the of the facility with the worst condi- Develop business processes for RFID initiative can deliver. tions for as long as possible to make sure 10 exceptions. Tags sometimes stop it will be reliable. working. Readers sometimes Select equipment carefully. Test fail. Networks go down. Power goes 3 multiple readers and tags from sev- Consider ways to reuse tags. In large out. Develop procedures and train eral manufacturers. The equipment 7 volumes, disposable tags are often employees to handle complications should conform to industry standards, the largest cost driver. Reusable tags and equipment failures. For example, such as ISO 19000-6C and EPC Gen 2. signifi cantly reduce this burden. If you consider using bar codes as a backup Any tag should work with any reader so currently use reusable totes or pallets, system in case tags or readers fail, and your enterprise does not get locked into this may be a great way to leverage reus- set up alternative read locations to cover a proprietary solution. able tags. If you do not own reusable reader failure. ■

4 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP (AVINGSUPERIORSUPPLYCHAINEXPERTISE ISLIKEHAVINGAGREATCOACH 9OU´REAHEADBEFOREYOUEVENSTART

9OUCANTRUST-ENLO7ORLDWIDE,OGISTICSTOGIVEYOUEVERYADVANTAGEBY APPLYINGPROVENPROCESSESTOSOLVETHEMOSTCOMPLEXSUPPLYCHAINPROBLEMS -ENLOHASALONG TERMTRACKRECORDOFMEASURABLERESULTSWITHSOMEOFTHE LARGESTGLOBALCORPORATIONS!NDTHATMEANSYOU´LLSTARTWITHABIGADVANTAGE 4OLEARNMOREABOUTTHEADVANTAGEYOURCOMPANYWILLGAININ0, 0,AND -ULTI CLIENT7AREHOUSING VISITWWWMENLOWORLDWIDECOMIL

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner INPERSPECTIVE BY PERRY A. TRUNICK Associate Editor, Inbound Logistics [email protected]

Assemble the Fragments A national transportation policy could help link some good fragments into a coherent plan.

he media love a good fi ght, and the Administration’s latest in an environment of tight credit, will budget satisfi ed their blood lust. But beneath the often bitter small businesses be able to qualify for loans to expand, then realize the hir- exchanges over bailouts and defi cits lie some important T ing incentives? Michigan is looking indicators for U.S. businesses. at increasing fuel taxes to help fund those stalled projects, creating some Opening the hearing before tax credit for job creation. of that burden in Senator Grassley’s the Senate Finance Committee, “All businesses will be eligible for warning. Senator Max Baucus (D-MT) cited a $5,000 tax credit for every new What we need, at least on the trans- Congressional Budget Offi ce numbers employee they hire in 2010,” he con- portation infrastructure side, is a suggesting last year’s Recovery Act cre- tinued. “An additional bonus amount coherent, carefully constructed, and ated between 600,000 and 1.6 million will be available to fi rms that increase effi ciently administered non-partisan jobs. He looked ahead to a job creation their payroll by adding hours or national transportation policy, not a tax credit for small businesses, incen- raising wages.” series of fragmented funding promises tives to small businesses for investment In addition, $30 billion from that can’t deliver. in plants and equipment, and increas- TARP will be available to “small and High-speed passenger rail sys- ing small business lending through the community banks,” ostensibly to tems, for instance, won’t help small Community Development Financial accomplish what the big banks did (or large) businesses increase exports Institutions network. “We must also not do with bailout funds – namely, and grow employment. They’re polit- push to open new markets to U.S. provide fi nancing for small businesses ical paybacks, and by defi nition they exports,” said Baucus. to grow. are good spending when they’re in Echoing some of the same hope for Then there are the infrastructure your district and wasteful if they’re small business growth, Chuck Grassley investments that were previously cited in someone else’s. They don’t build (R-IA) warned against direct and indi- as job creators. But recent reports a strong core capability to support rect taxes and penalties that would in states such as Michigan indicate stated policy goals of tripling exports result from the rising federal defi cit cash-strapped state governments have and creating long-term jobs. and strike at small businesses. “Don’t struggled to fi nd cash to qualify for Instead of promising to ride the bury recovering small businesses with federal matching funds on a number first high-speed train from Tampa new taxes and penalties,” he urged. of infrastructure projects. At least in to Orlando, President Obama should Treasury Secretary Timothy Michigan, many planned infrastruc- promise to deliver the fi rst paycheck Geithner took his turn and promised ture projects will be canceled. to a new worker whose job in a small to “extend Recovery Act business tax This adds up to the appearance of business was created as a result of relief, and to create a new, temporary funding where the need is great. But increased exports. ■

6 Inbound Logistics • February 2010

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RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner READER PROFILE by Merrill Douglas

Doing Fine, Moving Wine

athy Zepaltas began her career in logis- “Every night I went home with my legal pad,” tics one day in 1996 when her employer she says. “I just started doing the math.” Ktossed her a legal pad. Zepaltas was a She crunched the numbers so well that Regal sales assistant at Regal Wine Company, a subsid- soon named Zepaltas operations director. In iary of Santa Rosa, Calif.-based Jackson Family 2000, she joined the “mother ship,” taking a Wines. Regal distributed four Jackson Family job as manager of warehousing and transporta- brands within the state, but the winery’s own- tion at Jackson Family Wines. Today, as director ers had decided to give Regal its entire portfolio. of logistics, she’s responsible for distributing That move would boost Regal’s shipments to res- Kendall-Jackson and Jackson Family’s other taurants and retailers from 3,500 cases a year to brands to wine distributors worldwide. more than 100,000. It has been a whirlwind decade. In 2002, “I need you to ﬁ gure out what our infrastruc- Zepaltas closed a distribution center in Reno, ture should be,” said Zepaltas’s boss. He gave her Nev., and consolidated all of Jackson Family’s one week to devise a plan. logistics operations in one building in Santa The Big Questions

What do you do when you’re not at work? I am happily married to my high school sweetheart. We have 12-year-old twins, two dogs, and two cats (I call it our ark). I enjoy wine, cooking, home decorating, gardening, the outdoors, downhill skiing, and travel. My husband and I are big Green Bay Packers fans, and we run full- and half-marathons every few years. Ideal dinner companion? While Winston Churchill would be on my list, I’d enjoy dining with my entire PREMIUM family – from my husband and children to my parents, eight siblings and their spouses, VINTAGE plus nieces and nephews. NAME: Kathy Zepaltas What’s in your briefcase? Nothing. Everything is on or in my desk. TITLE: Director of logistics, since 2001 Business motto? COMPANY: Jackson Family Wines, Santa Rosa, Calif. Quality and pride. PREVIOUS Inventory control coordinator, Apperson Business Forms; accounting EXPERIENCE: If you didn’t work in supply chain assistant, BIW Connector Systems; recruiting specialist, S.L. Drown management, what would be your Associates Professional Placements; operations manager, Regal Wine dream job? Company; director of distribution, Jackson Family Wines I’d love to act or sing on the stage, EDUCATION: BA, business management, Sonoma State University of California, 1992 which I’ve done at small local venues. I’d also like to be an interior designer.

8 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP Rosa. But the business soon outgrew that opening the doors,” she says. wine, drive the shipments at least one facility, and the company started leasing In November 2009, Jackson Family hour away, unload them through a third-party feeder warehouses, trucking Wines moved the wine from its 11 feeder warehouse, and put them on a boxcar to wine up to one hour away for storage, facilities to the new 650,000-square- move across the United States,” Zepaltas then back to the DC as needed. foot DC in American Canyon, Calif. In says. Customers who take possession It was not an ideal solution. “It led January, it brought over its remaining of their wine in American Canyon and to additional transportation and ware- stock from Santa Rosa. load it into boxcars there can move the house handling costs,” Zepaltas says. With that project complete, Zepaltas product more efficiently and reduce She started developing a plan to build a says she’ll now have time to focus on their carbon emissions. bigger facility. big-picture concerns, such as customer Other opportunities are bound to Just as Zepaltas had to learn logis- service. One of her goals is to enable cus- arise now that Zepaltas no longer has tics from the ground up, she now had tomers to place and track orders online. to face the inevitable complications of to learn to supervise a major building She also wants to persuade more custom- shuttling product between facilities. “I project. “It took 11 months and two ers to use the rail spur at the new DC. will analyze our processes and see how weeks from the start of construction to “Currently, we build truckloads of we can improve them,” she says. ■

February 2010 • Inbound Logistics 9

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner soundbyte “By investing in America’s freight INFRONT transportation system

and developing UP THE CHAIN policies that facilitate Ricky Tai Jen Chan has been appointed senior vice president of Asian operations for Enesco, a global giftware and home and U.S. exports, we can garden decor company. Chan is responsible for supply chain management, production create jobs and achieve planning, order management, engineering, quality assurance, and quality control for the modern, navigable company’s Asia business. seaports that are safe Dan Hurdle has been named senior vice and environmentally president, retail operations and product management, for Caribou Coffee, the sustainable.” second-largest coffee chain in the United States. He assumes the retail operations — Kurt Nagle, CEO, American leadership role in addition to product Association of Port Authorities management responsibilities, which include oversight of supply chain and store development functions.

SEALED DEALS Dole Fresh Fruit iGPS’ has begun using all- Software outsourcing company Appian Logistics Software plastic pallets with embedded RFID tags to ship IACP Asia plans to merge with has acquired TruckStops products within North America. The non-porous French IT group Capgemini North America pallets prevent the absorption of liquids, to help both companies expand from MicroAnalytics, providing an extra margin of safety for food supply. Embedded RFID tags enable tracking of their businesses. It also marks strengthening its portfolio shipments throughout the supply chain. the fi rst step for Capgemini of automated fl eet routing to enter the Vietnamese and GPS solutions for the Chrysler has selected Wallenius Wilhelmsen market, where IACP Asia is transportation industry. Logistics to provide ocean transportation headquartered. Th e newly Th is transaction allows for two important trade lanes: North America merged fi rm will focus on the logistics IT vendor to to Europe, and North America and Europe to bringing advanced technology expand its reach to more Australia/New Zealand. The agreement covers to Vietnam and promoting the operators in North America. a variety of Chrysler models made in the United country’s industrialization and States and Canada, including the 300C, Charger, m&a Compass, and Nitro. modernization processes.

GREEN SEED Norfolk Southern recently joined the U.S. Green Building Council, a non-profi t organization that promotes the benefi ts of green buildings. As part of its proposed Crescent Corridor domestic intermodal route, the railroad has committed to seeking Leadership in Energy and Environmental Design (LEED) certifi cation for buildings that will be part of three proposed intermodal terminals in Birmingham, Ala., Greencastle, Pa., and Memphis, Tenn.

UPS has deployed 245 new delivery trucks in Colorado and California that are powered by compressed natural gas. Th e vehicles are externally identical to UPS’ signature brown ﬂ eet, but are expected to yield a 15-percent emissions reduction versus standard diesel engines.

10 Inbound Logistics • February 2010

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RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner Kraft Foods’ Avon, N.Y., manufacturing facility (beloww) is among the many local businesses that have beneﬁ ted from access to the Livonia, Avon & TRENDS Lakeville Railroad.

The Little Railroad That Did mall railroad communities used to be widespread across the United

SStates. Rural transportation and commerce were railroad-tied, each PETE SWANSON PHOTO: dependent on the other. In western New York towns such as Livonia, the past was very much aligned with the tracks. So is its future, thanks to a little foresight and determination.

Livonia, a town of 7,000 in the state’s chief for United Press International and Finger Lakes’ region, lays claim to 29 miles part of the 1964 acquisition and startup of track operated by the Livonia, Avon & effort. “We felt there was potential, and Lakeville Railroad (LA&L). Forty-ﬁ ve years we raised funds to cover the initial costs to ago, the Erie-Lackawanna Railroad decided get the railroad running. Then, we had to by Joseph O’Reilly to abandon its branch line to Lakeville. learn how to make ends meet with limited Recognizing the threat posed by perma- resources, and that was an eye-opener.” nently losing the shortline rail service, a Freight traffic in the initial year group of local business leaders with no amounted to a mere 50 carloads. To sup- railroading experience resurrected and plement sparse freight revenues, the reincorporated it as the LA&L. LA&L began running passenger excur- “It was an ‘all-in’ bet at the time, and we sions. But it kept chugging along. In the were not sure we could make it work,” says late 1970s, the railroad dropped passenger Gene Blabey, the railroad’s current presi- service in favor of targeting freight, which dent. Blabey was the Rochester, N.Y., bureau received a boost when the railroads were

12 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS

deregulated in 1980. “We had to be resourceful in the early years because revenue was meager, so P&G Explores B2C we came up with creative solutions to onversations among Procter and Gamble (P&G) and its retail keep things going. But our focus was customers are a little awkward now that the consumer always on service,” explains Vince C goods manufacturer — famous for its Tide detergent, Milliken, vice president of customer ser- Pampers diapers, and Gillette shavers — has entered the vice. “That paid off. As traffi c increased direct-to-consumer space. In a move that puts it in direct to approximately 5,000 annual carloads competition with retailers, P&G is bringing many of its popular in the past few years, we were able to brands to a Web site near you. reinvest to improve track, structures, The manufacturer plans to launch an eStore in spring and equipment.” 2010, following a pilot with 5,000 consumers early this year. Shortline railroads such as the LA&L Owned and operated by PFSweb, a Plano, Texas, multi-channel are all about customer service, and that outsourcing solutions provider, the online outlet will exclusively sell P&G products to U.S. consumers. builds long-term partnerships with local “As the growth in consumer Web commerce continues to businesses. Large domestic and inter- evolve, we see a strong trend toward broadening consumer national companies with production purchase interests into more product categories,” says PFSweb and distribution facilities on the LA&L CEO Mark Layton. benefi t from the railroad’s responsive “With each new product category comes the opportunity to develop and service and independent access to three test marketing, sales, and retention concepts,” he adds. “Working with P&G on Class I railroads. In 2008, Barilla, an our eStore, we look forward to uncovering new insights and innovations that Italian pasta manufacturing company, deliver on the potential of e-commerce as a powerful sales channel.” opened a $97-million facility in nearby P&G sees this venture as a way to capture more accurate point-of-sale Avon, joining a list of local rail shippers information — demand-side data that can help it better align new products including Kraft Foods, Archer Daniels and inventory with what buyers want. Given the impact of the economic Midland, Sweeteners Plus, Perdue, downturn, shopping habits have become unpredictable as consumers and Cargill. weigh the economies of less-expensive generic brands against established Today, the LA&L has grown to become name brands. The manufacturer plans to share this information with retail a regional system. With two affi liated customers, dispelling worries that it is trying to compete for shortlines, it covers more than 400 miles market share. of route in western New York and north- P&G will use the site as a consumer research western Pennsylvania. The railroad also lab, which Layton likens to a “giant sandbox for contributes to the regional economy brands to play in.” The eStore will test several by promoting economic develop- concepts — product pairings, social media links, ment – providing jobs, paying taxes, and environmental sustainability, and packaging purchasing goods and services. options — as it seeks to strengthen consumer relationships. “We started with very little and built a For P&G, growing a retail solid, long-term enterprise that provides presence may well be a way environmentally friendly, competitive to improve supply chain transportation services extending well responsiveness — with beyond the region,” notes Blabey. the side benefi t of For the town of Livonia, and others creating a potential around the country, the LA&L is a par- new sales stream. able that speaks to current economic development efforts as much as the past. If you think it, you can.

February 2010 • Inbound Logistics 13

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner GLOBAL LOGISTICS by Joseph O’Reilly

Middle East Logistics Heads North

he Middle East’s express, freight for- Despite recent problems in Dubai, the region to optimize its location as a Twarding, and logistics sectors are foundations are in place for buoyant regional transshipment hub. expected to weather a global depression growth once the global economy recov- Nowhere is this more apparent than and experience considerable growth ers, reports the study, which examines in the United Arab Emirates (UAE). The during the coming years, according to air, sea, road, and rail industries through- World Bank recently identifi ed the coun- Middle East Transport and Logistics 2010, a out the Gulf. Middle Eastern countries try as the best-performing logistics hot new report from Transport Intelligence, have invested in and built out trans- spot in the Gulf, ranking 24th in the a Wiltshire, U.K.-based research fi rm. portation infrastructure that will allow financial institute’s biennial Logistics Performance Index. UAE is followed by Bahrain (32), Kuwait (36), Saudi Arabia (40), Qatar (55), and Oman (60). Aside from its transport infrastructure – which includes Jebel Ali Port and UAE’s three main airports – the World Bank study also cites the country’s favor- able proximity to a market of four billion people within eight hours by air. Still, as Transport Intelligence points out, the oil-rich region has its problems. One example: Abu Dhabi had to bail out Dubai following the collapse of its construction and real estate markets. Regional reciprocity has been visible elsewhere in the Middle East as less-developed countries, such as Egypt and Jordan, capitalize on the benefi ts that port and airport development have brought to the economies of their ambi- tious neighbors.

Transportation and logistics facilities such as the Sharjah Inland Container Depot in the UAE (left) are sprouting up all over the Gulf region, building a foundation for continued economic growth.

14 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP Source-side Activity Inches Upward ecember 2009 was a surprisingly trade still falls well below pre-recession Flight or Plight? Dgood month for global trade, accord- activity. Reports of a robust or sustained ir France Cargo’s current ing to data gathered by Panjiva, a New recovery are premature, despite hints of Aplight serves as an example York City-based company that profi les a positive turn. of the challenges confronting offshore manufacturers and suppliers. the global airfreight industry. There was a three-percent increase U.S. Imports Responding to the economic downturn, France’s national in the number of global manufacturers Grow shipping to the U.S. market (compared carrier has made moves to rationalize its cargo capacity to a fi ve-percent drop in 2008), as well in an effort to bring its freight as a two-percent increase in the num- Nov.—Dec. 2008 3% business to break-even numbers ber of U.S. companies receiving ocean Nov.—Dec. 2009 for fi scal 2011-2012. shipments from global manufacturers. % Air France-KLM, the carrier’s Traditionally, these numbers decline 5 European holding company, from November to December. registered a net loss of $598 Still, Panjiva cautions that year-over- million from April to June 2009, year comparisons need to be considered largely as a result of sharply within the context of the recession – at U.S. imports increased three percent declining airfreight volume. In the between November and December 2009, same period, the airline recorded this time last year, global commerce was versus a fi ve-percent drop during the same a 22.7-percent year-on-year in a free fall. The absolute level of world period in 2008. slump in cargo traffi c, despite a 17.2-percent reduction in capacity. And the cuts keep coming. British Parcel Service Changes Hands More recently, the carrier opted ne year after stopping U.S. domestic deliveries, Germany’s Deutsche Post DHL Owill no longer operate its domestic parcel service in the United Kingdom. It sold DHL Day Defi nite Domestic, its U.K. domestic business-to-business (B2B) and business-to-consumer (B2C) parcel delivery operations, to Home Delivery Network Limited (HDN). Combining the businesses, which together deliver more than 180 million packages annually, will net HDN, the U.K.’s largest dedicated B2C service, annual sales of more than $974 million. “The growth of e-commerce has transformed our marketplace and our customers’ demands,” says HDN CEO Brian Gaunt. “Combining these businesses will enable us to offer shippers a wider variety of products and more effi cient service.” By the end of the fi rst quarter 2010, HDN will take on the business’ 4,700 employees, fi ve U.K. hubs, and 71 service centers. The company will retain the DHL Domestic brand in the short term. to sell off two of its yet-to-be- “It was important to us to divest our parcel business to a company that we trust,” delivered Boeing 777 aircraft says Ken McCall, CEO of DHL Express UK. “HDN is a strong and well-respected player to FedEx rather than replace in the B2C fi eld and complements the B2B-focused services we currently offer.” older assets. Air France Cargo currently operates fi ve Boeing The sale supports DHL’s move to focus on international express and freight ser- 747 freighters. vices, and does not include DHL’s U.K. international time-defi nite and same-day express services. – Catherine Harden ■

February 2010 • Inbound Logistics 15

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner Jim Burleigh is CEO of SmartTurn. 415-685-4135 • [email protected]

ITMATTERS by Jim Burleigh

Web-Based WMS Solutions Drive Automotive Supply Chain Efﬁ ciency

he U.S. auto industry is facing raise transportation costs. Route consoli- time and fuel savings. It can also help the greatest adversity in its his- dation, which focuses on making more secure new business through higher T tory. One segment of the industry, pickups, but with less frequency, can service levels, and increase customer sat- however, has thrived – aftermarket auto also increase costs. isfaction with faster response times. parts. This segment has grown exponen- ■ As suppliers disappear, new sources Web-based WMS solutions also offer tially during the economic downturn, will likely be located farther away. an advantage in establishing supply as consumers have been forced to repair Overseas manufacturing growth means chain collaboration with new suppliers their aging vehicles instead of buying that component suppliers may now and customers, because they are acces- new ones. be located halfway around the globe sible over the Internet. In an industry where specialization instead of in the next state. Auto parts companies’ relatively sim- and customer service are keys to success, With these issues complicating after- ple inventory management and order effective supply chain management is market auto part supply chains, shippers fulfillment requirements are suited paramount for long-term sustainability. must plan now or pay later. For the after- to Web-based WMS solutions, which But several factors make this a diffi cult market parts business, where materials can handle functions such as purchas- time for automotive logistics. handling is as important to the bottom ing, receiving and putaway, inventory ■ Auto industry supply chains faced line as execution, planning now begins control, order fulfillment, shipping, consolidation. Component supplier with implementing a warehouse and integration, and mobile computing. mergers, acquisitions, and financial inventory management system (WMS). Web-based inventory systems work par- difficulties created a lack of available The development of Web-based or soft- ticularly well for online stores, which suppliers. This shortage impaired deliv- ware-as-a-service WMS solutions has tend to stock larger varieties of general ery, upgrade/repair time, and, ultimately, signifi cantly cut implementation time and specialty parts. profi t margin. and improved accessibility. Auto parts companies that have put ■ Inventory levels have dropped. Automotive component facilities oper- off implementing a WMS solution can Faced with inconsistent demand and ating without a WMS typically achieve benefit from a Web-based WMS that the need to reduce inventory carrying inventory accuracy of 90 percent and offers the right features and flexible costs, shippers have kept less inventory less, compared to 99-percent accuracy configurations at a lower cost. When in stock, relying on road transport and in operations using a WMS. Improving considering a WMS, no longer is it just route consolidation to make up for these shipping accuracy can lower labor costs, about what’s in the warehouse. It’s about shortfalls. Shipping parts via truck and reduce time spent re-creating shipping creating a complete supply chain execu- air for quick, local departures and deliv- documents due to errors, and present tion strategy that saves as much money eries closer to the manufacturing site can consolidation opportunities resulting in as it brings in. ■

16 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP

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RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner Chip Smith is president, CS Advisory Group. 612-868-6536 • [email protected]

VIEWPOINT by Chip Smith

Building Better 3PL Relationships

hird-party logistics (3PL) providers assets to serve you, and you entrust any judgments against it? If you’re are tremendously popular with them to select the appropriate carriers dealing with a broker, get a copy of its T shippers for surface transporta- to move your freight. At a minimum, surety bond to verify it is current and tion in North America. Freight brokers, they should verify operating authority offers adequate coverage. Many brokers forwarders, and intermodal market- and insurance, and assess each carrier’s now have bonds of $25,000, $50,000, ing companies offer capacity, expertise, safety rating. What process do they have or even $100,000. A certifi cate of insur- technology, and buying power on a scale to prevent unscrupulous carriers from ance shows the 3PL’s coverage for cargo, no shipper can replicate on its own. re-brokering your freight without con- liability, and errors and omissions. Be Not all 3PLs are the same, however. sent? Make sure they execute a written aware of “follow form” cargo policies, Here are a few tips to help you get the contract with each carrier that includes which are subject to the exclusions and most out of yours. clauses to protect you. terms in the underlying carrier’s insur- ■ Make sure your 3PL has the legal ■ Find out what technology tools ance. If any red fl ags are raised, ask for authority to provide the services it the 3PL offers that could help you work an explanation. is offering. Federal law requires any smarter, faster, and more efficiently. ■ Execute the correct type of 3PL company arranging motor carrier trans- Information is a 3PL’s greatest asset, contract. Many shippers mistakenly portation for compensation to either have and many invest heavily in IT systems use a motor carrier contract with 3PLs. a property broker license from the Federal designed to streamline information fl ow Unfortunately, these contracts include Motor Carrier Safety Administration and and access. Most 3PLs offer online tools many clauses that are not enforceable a $10,000 surety bond or be registered ranging from full logistics management with 3PLs and omit key protections. If with that agency as a domestic freight outsource platforms to standalone tools you use 3PL services from asset-based forwarder. This rule applies to warehous- for rating, optimization, tracing, and providers, make sure your contract with ing companies and motor carriers that document retrieval. If you have spe- them includes specifi c language address- broker shipments to other carriers when cial needs, some will even customize an ing those services. Don’t assume your short on equipment. If a claim or acci- application for you. Choosing the right relationship with the asset side of their dent occurs, don’t assume the insurance 3PL can save you costly IT investments business does. covering their business assets will cover a of your own. 3PLs are market makers and the nat- brokered shipment. ■ Check out the 3PL’s financial ural product of a free market economy. ■ Ask your 3PL how it qualifies health. Run a credit report. Is the 3PL They offer tremendous value – if you do carriers. 3PLs utilize other companies’ paying carriers on time? Does it have your homework. ■

18 Inbound Logistics • February 2010

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RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner Cliff Otto is president of Saddle Creek. 863-668-4435 • [email protected]

3PLLINE by Cliff Otto

Today’s Warehouse Plays a New Role

arehouses are no longer just environment accommodates shipping last minute to meet current demand. for storage. In today’s cost- peaks and valleys by balancing multiple Approximately 40 percent of manu- W conscious, efficiency-driven manufacturers’ requirements with com- facturers currently outsource some or environment, many manufacturers are plementary surges. all of their secondary packaging ser- reevaluating their definition of ware- To manage this arrangement, a third- vices, according to the 2009 Secondary housing. Anything that doesn’t lend party provider analyzes shippers’ space Packaging Outsourcing Report, sponsored itself to a high-speed, highly mecha- requirements and identifi es peak periods by Saddle Creek Corporation. Increased nized, low-labor environment is being of activity. Shippers with peaks at oppo- fl exibility and reduced costs are the top sent to the warehouse. site times of the year can be paired in a benefi ts reported. Driving this evolution is a desire to single facility. For example, a sunscreen Whether it’s assembling a back-to- take links out of the supply chain and manufacturer might be paired with a school point of purchase promotion, make sure that costs are optimized and holiday gift basket company. adding a colored face plate to a cell as close to the customer as possible. The companies’ operations are located phone, shrink-wrapping a rainbow pack at opposite ends of the building and ebb of sports drinks, or formatting computer INNOVATIVE WAREHOUSE USES and fl ow toward the middle as required. disks with the latest software, outsourc- As a result of this shift, manufactur- Both companies are guaranteed addi- ing secondary packaging services allows ers are gradually expanding the services tional overfl ow space, but only pay for manufacturers to meet customer needs they expect from their warehousing the space as they need it. They’re able and increase effi ciency without increas- providers, seeking ways to increase to meet maximum requirements and ing overhead. The move can also reduce flexibility, improve inventory con- accommodate business growth without transportation and labor costs, as well as trol, manage costs, and streamline the having to invest in permanent space costs associated with carrying and man- supply chain. and equipment. Locating the facility aging inventory. Three services, in particular, are draw- in an optimal location also helps mini- 3. Cross-docking. As manufacturing considerable interest: mize transportation costs and maximize ers seek ways to move products more 1. Shared space environment. responsiveness to customer needs. efficiently and cost-effectively, many Companies with dramatic seasonal or 2. Secondary packaging. Many man- are rediscovering cross-docking – mov- promotional fl uctuations face unique ufacturers also want to bring functions ing product directly from receiving to warehousing challenges. They don’t such as secondary packaging closer to shipping with little or no inventory want to invest in space that they can’t the customer to give them the fl exibility and minimal handling. The process is fill year-round, but they must accom- to accommodate seasonal fl uctuations resurfacing as a way to take costs out of modate business surges. A shared space or delay product confi guration until the the supply chain, accelerate inventory

20 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP velocity, and improve service levels. inbound loads daily but ship out just operations take place under a single roof, While historically used for durable twice a week, reducing transportation communication and planning improve, goods, high turn rates and reduced han- spend while making deliveries that meet helping to ensure performance qual- dling make cross-docking an effective end-user requirements. ity and timeliness. Effective 3PLs also solution for everything from perishable routinely review forecasting, schedul- products to high-value/high-security INVOLVING A 3PL ing, processes, equipment and other goods. The process helps get product to Many manufacturers are recognizing variables, looking for opportunities for market quickly and economically while that 3PLs are often better positioned improvement. reducing the need for warehouse space than their own internal operations to Demand for specialized warehouse and inventory carry costs. adapt to the expanded warehouse role. services will climb for the foreseeable Many companies are exploring Experienced 3PLs offer convenient future as manufacturers intensify their variations on traditional, “pure” cross- facilities with a skilled workforce, state- focus on core competencies. Fortunately, docking, integrating transportation of-the-art equipment and facilities, and third-party providers can provide strategies such as consolidation and established systems and processes for innovative, flexible solutions to help deconsolidation to maximize savings. peak performance. Because warehous- streamline their supply chains, increase For example, a company may receive ing, packaging, and transportation ﬂ exibility, and better manage costs. ■

AWEA Spring Events 2010

AWEA Wind Power Supply Chain Workshop Register by February 24 to save! March 17, 2010 4 Greensboro, NC Early Registration $295 before Feb. 24 Regular Registration $350 between Feb. 24 – Mar. 15 AWEA, the leading source for educational content On-site Registration $400 on the wind energy industry, is bringing its very after Mar. 15 successful supply chain program to the Southeast! Pre-Conference Seminar Mar. 16 $125 Discover how you can help increase domestic (optional add-on) manufacturing of wind turbines and their components, while growing www.awea.org/events/supplychain4/registration.html your company, staff and proﬁts. Workshop Location: Sheraton Greensboro Hotel at Four Seasons Interact with representatives from a diverse range of industries, 3121 High Point Road, Greensboro, NC international and U.S.-based wind turbine manufacturers, component Discounted rooms are available for $135 suppliers, service providers to the wind energy industry, and hear ﬁrst plus applicable taxes until February 19. hand the wind energy industry’s needs, challenges, and opportunities www.awea.org/events/supplychain4/hotel_and_travel.html for growth. Don’t miss this opportunity to network and share resources and best practices with industry leaders and experts, and your peers.

www.awea.org/events/supplychain4

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner 22 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP LOGISTICS EDUCATION MORE IS BETTER Evolving to meet changing industry needs, logistics and supply chain education helps students hone their skills, gain a broader perspective, and bring bottom-line beneﬁ ts to employers.

by Merrill Douglas

The more you know, the more you can shine. That makes education especially crucial in today’s tough economic climate. Whether you’re grooming yourself for a new position or striving to stand out in your current job, further instruction in logistics or supply chain management may offer the edge you need. And if you’re working to transform your supply chain operation into a powerful proﬁ t center, education for your team might make a critical difference. “Every company is under pressure to improve supply chain performance,” says Lei Lei, professor of supply chain management and marketing science, and director of the Center for Supply Chain Management at Rutgers University in New Brunswick and Newark, N.J. Institutions of higher learning nurture the talent that companies need to make those improvements.

February 2010 • Inbound Logistics 23

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner They also give individuals myriad OUTSOURCING EDUCATION University, Long Beach. ways to distinguish themselves. “The When is the right time to go to school Just as a fi rm might hire a third party more you learn, the more degrees and to study logistics or supply chain man- to manufacture products or run a ware- certifi cations you earn, the more doors agement? Just about any point in your house, companies increasingly turn to open for networking opportunities career will do. The era when people fi n- universities and professional organiza- to present themselves,” says Donald ished high school or college, took a job, tions to teach employees the nuts and Jacobson, president of Optimum Supply then learned all they needed to know at bolts of the supply chain. Chain Recruiters, Rutherford, N.J. the workplace has come and gone. Companies might pay higher-level Schools and professional associations Complex supply chains and a grow- employees to go through graduate continually refine their offerings to ing dependence on sophisticated school. For example, Theresa Foran, keep pace with evolving industry needs. information technology have rendered director of contract logistics strategy That’s true of traditional bachelor’s in-house training less attractive. at DB Schenker in Atlanta, won a seat and master’s degree programs, execu- “Companies began to realize that in Georgia Tech’s Executive Masters tive education programs, certifi cation not only could they not teach supply in International Logistics and Supply courses, and workshops that develop chain management on the job, they Chain Strategy Program (EMIL-SCS) employee skill sets in specifi c areas. didn’t have the time,” says Marianne through a sponsorship competition in Ready to boost your knowledge of Venieris, executive director of the her business unit. the current state of logistics and supply Center for International Trade and “Employees interested in being spon- chain education? Read on. Transportation at California State sored competed by writing an essay

Employers expect to get full value when they send supply chain and logistics professionals to off-site educational programs such as CSCMP’s Global Conference (left) and Georgia Tech’s Supply Chain and Logistics (SCL) Institute (below), where students learn from subject matter experts Harvey Donaldson, SCL’s managing director of executive education, and instructor Dr. Ed Frazelle.

24 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP Logistics Conference & Expo Topics covered: s #APACITY3HIFTS April 25-28, 2010 s/RLANDO &LORIDA53! s #ARRIER-ETRICS3CORECARDS s #OST2EDUCTION s )NBOUND,OGISTICS Learn the latest on the economy’s impact on operations, s 4OTAL,ANDED#OST-ODELS service levels, and capacity. s ,EGISLATIVE5PDATES Hear from top executives with trucking, expedited, intermodal, s (OURSOF3ERVICE and maritime providers. s 3ECURITY2EQUIREMENTS s )NFRASTRUCTURE Gain practical insights through shipper discussions, case s 'LOBAL4RANSPORTATION studies, and best practices. s %MERGING4RENDS s 4ECHNOLOGIES4-3 7-3 2&)$ Expand your network with transportation/SCM decision-makers s /UTSOURCINGPRACTICES and providers.

DIAMOND SPONSORS: Special Keynote: “Transportation Security: Asking the Right Questions” #OLONEL2ANDALL,ARSEN 53!&2ET AND%XECUTIVE $IRECTORFORTHE#OMMISSIONONTHE0REVENTIONOF7EAPONS OF-ASS$ESTRUCTION

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For details, to register, to exhibit or sponsor, visit www.NASSTRAC.org or call 952-442-8850 x208

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner As part of her coursework for the Georgia Tech Executive Masters in International Logistics and Supply Chain Strategy, Theresa Foran (third from right) traveled with a group to Shanghai, China, to participate in an intensive overseas program. outlining why we would be the best students from across the industrial employee returns to work,” says Stank. choice – what benefits sponsorship map, from aerospace to footwear to With that in mind, many Knoxville would bring to the company and to bulk chemicals. executive education programs now our own professional development,” “As a result, the knowledge will be very require students to grapple with real- she explains. generic,” says Ted Stank, Dove professor world supply chain challenges. An Besides providing fi nancial support, of logistics and associate dean for execu- instructor introduces a concept, then DB Schenker allowed time for Foran to tive education at the College of Business asks students to apply it – in a case study participate in the residential portions of Administration, University of Tennessee, or exercise – to challenges they’re facing the program, which took her not only Knoxville. “That’s why customized pro- at their own work sites. In a few courses, to Georgia Tech’s campus in Atlanta, grams are growing in popularity.” students work with faculty mentors but to Europe, Latin America, and Asia. to develop solutions for their compa- APPLY HERE nies, sometimes aiming for specific WORKERS’ ED As universities and associations edu- ROI targets. Along with programs for executives, cate employees, they try to do more Syracuse University’s Six Sigma- demand is heating up for courses geared than simply teach supply chain princi- Black Belt Program, part of the online to rank-and-fi le workers. “Companies ples. Students must know how to apply Supply Chain Executive Management are looking to increase warehouse work- what they learn. Certificate program, boasts precise, ers’ education levels,” says Kathleen “A good idea that you can’t implement tangible benefi ts to employers. All stu- Hedland, director of education and successfully isn’t helpful,” explains dents taking this course must complete research at the Council of Supply Chain John Langley, SCL professor of supply a project that yields money-saving Management Professionals (CSCMP). chain management, and director of improvements at their fi rms. Management wants those employ- the supply chain executive programs at “This program has saved 30 com- ees to understand how their work Georgia Tech’s H. Milton Stewart School panies more than $6 million,” says affects customers, and how it’s linked of Industrial and Systems Engineering. Patrick Penfield, assistant professor to company activities at other locations. These days, executive education at of supply chain practice and director Education also helps such workers move Georgia Tech places greater emphasis on of management executive programs up in the organization, Hedland adds. how to bring meaningful change to the at the university’s Whitman School Besides looking for courses that cover supply chain, Langley says. Instructors of Management. basic material, companies also are spend more time on best practices, suc- Bang for the buck also is a vital con- seeking courses tailored to their own cess stories, and pitfalls to avoid. cern for companies that take advantage business issues. Just because a fi rm out- Education needs to provide a clear of workshops and online courses offered sources logistics education doesn’t mean return on investment. “Companies are by CSCMP. it wants a one-size-fi ts-all curriculum. willing to send an employee for con- “Companies want their employees to A continuing education program tinuing education if they believe it will gain practical information, and to really with open enrollment may draw generate immediate benefi ts when the understand what they’re learning,” says

26 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP They’ve done their part. Can you do yours?

Hire a Veteran.

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RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner Hedland. In particular, employers want to liberate students from in-class lectures, throughout the curriculum, Speh says. CSCMP to test students’ knowledge leaving more time for give-and-take. To help students take charge of their when the course ends. “Teaching classes by lecturing in own learning, instructors in some front of students is no longer relevant,” courses at Miami professionally video- VIDEOS, BLOGS, AND WEBCASTS says Thomas Speh, James E. Rees distin- tape their lectures. Students view those While they’re answering demand guished professor of distribution and lectures online at their convenience, for a clear return on investment, senior director of the university’s MBA then come to class prepared to hold a schools also are exploring new ways programs. “Students learn better by discussion or work on a project. to teach. These innovations often fea- being actively engaged.” “Many times, the professor just guides ture technology. Miami’s program doesn’t offer a sup- that process, rather than being the cen- The MBA program at Miami ply chain concentration, but it does tral ﬁ gure,” Speh says. University in Oxford, Ohio, uses video emphasize supply chain concerns American Public University (APU),

The 12 students who enrolled this fall in Louisiana Tech WHAT ELSE IS University’s College of Business’ new interdisci- plinary Bachelor of Science program in Sustainable Supply Chain Management learned right away that this wasn’t a typical management curriculum. “We Fresh options for studying logistics start students NEW? out not just in and supply chain management abound. the College of Business, but in Biology,” says Tony Rutgers University introduced in the major last year, local Inman, Ruston Building and Miami University of Ohio’s MBA overhaul incorporated its undergraduate program in companies such as Johnson Loan endowed professor of a supply chain perspective, Supply Chain and Marketing and Johnson, Panasonic, and management in the school’s says program director Science last fall at its New L’Oreal had announced that Department of Management Thomas Speh. Brunswick, N.J., campus and they would provide a total of 14 and Information Systems. will add the same program scholarships, many accompa- From there, students move endowed professor in the at its Newark campus in fall nied by internships. on to classes that focus on the Department of Management 2010. The undergraduate offering usual array of supply chain and Information Systems, who By the time students in New follows the success of Rutgers’ and logistics topics, but always runs the new program with Brunswick started enrolling MBA program in the same with an emphasis on people Inman. “It will be an ongoing discipline, launched in 2001. and the planet, as well as on issue, as part of a strategy, for Thanks to close ties with cor- production and proﬁ t. decades to come.” porations in the New York-New Louisiana Tech developed Although the program Jersey region, that graduate the Sustainable Supply Chain currently offers just one intern- program placed 100 percent major in part to distinguish its ship, Inman and Birou intend of its students in internships program from other supply to add more as the economy and jobs in 2009, despite the chain degrees, says Inman. improves. Eventually, they weak economy. But its creators also believe hope to require an intern- that the program answers a ship in order to complete pressing business need. the degree. Rutgers University’s Lei Lei launched an undergraduate “Sustainability is a major supply chain program at the initiative for most large, lead- Popular demand spurred New Brunswick campus in 2009 and will expand it to the ing-edge corporations,” says Syracuse University to add Newark campus in late 2010. Laura Birou, Patricia I. Garland a course on ﬁ nance and

28 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP an online institution based in Charles and Logistics programs. “And they’re all and family obligations, Varkonyi says. It Town, W. Va., uses message boards and equal, because our online system allows also lets students in time zones around other Web-based tools to provide the individuals from around the world to the globe put their heads together in equivalent of classroom discussion for learn together.” class discussions. students who may be located anywhere APU serves students who are active In a typical class, the professor posts in the world. in or retired from the U.S. military and assignments and questions to an online “I teach students who are in the mil- public safety organizations, but it’s message board. Students complete the itary, based in Afghanistan and Iraq. expanding to educate students who assigned readings, then use the message Another works for a trucking com- work in the private sector. Web-based board to respond. pany in Hawaii,” says Irvin Varkonyi, technology that doesn’t require stu- “We have created the kind of dis- adjunct professor and marketing man- dents to convene in real time allows cussion that would result from a blog,” ager for the university’s Transportation them to fit studies around their jobs Varkonyi says. “From that comes a

accounting for supply chain manufacturing, purchas- Corp., and created a reverse logistics infrastructure and managers to its online Supply ing, and procurement,” says logistics strategy for a Dell human resources. Chain Executive Management Kathleen Hedland, CSCMP’s computer factory. Another new focus is Certifi cate program. And in director of education and information technology. SCL the school’s undergradu- research. “They help students The biggest news at Georgia recently introduced a four- ate and graduate programs, build on existing knowledge.” Tech’s Supply Chain and day course on IT for supply students can now earn certi- Logistics (SCL) Institute is its chain management. Later in fi cations from the American Business students at Miami new Trade, Innovation, and 2010, the Institute will open a Society of Transportation and University of Ohio are enjoy- Productivity (TIP) Center in technology showcase where Logistics (ASTL) by completing the results of a recent, San Juan, Costa Rica. Opened students and other visitors can ing the appropriate courses. “If complete overhaul of the MBA in August 2009, the research get a fi rsthand look at solutions students take certain classes, program. “We focused on what facility provides opportunities for managing the supply chain. ASTL will waive the exams,” we called the enterprise and for education and professional Information technology is says Patrick Penfi eld, assis- the extended enterprise. We development. crucial to supply chain man- tant professor of supply chain wanted our MBAs to under- “We will conduct execu- agement, but it’s also very practices and director of man- stand the whole picture of a tive education programs there, expensive, and many IT initia- agement executive programs corporation, as well as how and use it to recruit students tives fail. That’s a major reason at the university’s Whitman it interacts with partners to Georgia Tech,” says Harvey why Georgia Tech developed School of Management. in the supply chain,” says Donaldson, managing director both the IT class and the Thomas Speh, James E. Rees Georgia Tech’s The Council of Supply Chain distinguished professor of dis- Harvey Donaldson Management Professionals tribution and senior director of (right), pictured (CSCMP) made some recent the school’s MBA programs. with Dr. Oscar Arias-Sanchez, additions to its broad variety The courses emphasize president of the of online, self-study supply case studies and hands-on Republic of Costa Rica, helped develop chain courses. One new class learning, and each student the school’s new presents the basics of radio must intern with a company research facility in frequency identifi cation (RFID) once a week, each semester. San Juan. and explains how compa- At the end of the program, stu- nies incorporate it in their dents spend six weeks in either of the SCL at Georgia Tech’s showcase. “We hope to help businesses. Another recent Europe or Asia working in a H. Milton Stewart School companies better understand addition prepares students for global internship. In China, for of Industrial and Systems how they can increase the like- Lean Six Sigma certifi cation. example, interns have devel- Engineering in Atlanta. lihood of success with IT,” says CSCMP also is launch- oped performance metrics for Georgia Tech developed the John Langley, SCL professor ing a series of online courses a Penske Logistics distribu- TIP Center as part of a broader of supply chain manage- called Supply Chain Essentials. tion center, recommended initiative to help expand trade ment, and director of Georgia “These courses cover a changes to the sourcing of and economic development Tech’s supply chain execu- variety of topics, including packaging materials for Eaton in Latin America by improving tive programs.

February 2010 • Inbound Logistics 29

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner tremendous learning experience.” Two elective courses in Rutgers’ Management in Rio de Janeiro. As of The SCL Institute at Georgia Tech MBA program in Supply Chain and January 2010, the university was still added a new kind of distance learning Marketing Sciences focus on SAP. “After selecting partners in Western Europe to its executive education offerings this students take these two courses, they and Asia. year. In the past, the Institute offered its can take the SAP Consultant’s license Along with taking a broader view of World-Class Logistics and Supply Chain exam,” says Lei. the world, educational programs also Strategy course on campus and online. All students participating in Rutgers’ need to take a broader view of the sup- In February 2009, for the fi rst time, the undergraduate and graduate supply chain discipline. “Students need school also delivered the executive edu- ply chain programs must earn at least to learn about negotiation, corporate cation course, taught by Edward Frazelle, one professional certificate. Along culture, sustainability, collaboration, as a four-day live webcast. with SAP Consultant, students can leadership, and teamwork,” says Speh. “The webcast is a full-function, choose to pursue any of four other “We infuse those topics into many of HD-quality transmission of Dr. Frazelle’s certifications: Six Sigma Green Belt, our supply chain classes.” course,” says Harvey Donaldson, man- Project Management Professional, UNEXPECTED GAINS By providing skills in specifi c areas, conveying new knowledge, and impart- ing a wider understanding of the supply chain, educational programs can reveal a host of new opportunities. That’s true for students just embarking on careers, for front-line employees, and for high- level managers. For Foran, one of the most valuable aspects of her graduate study was see- ing the contrast between supply chains in the United States and abroad. The overseas experience built into her masters program made it easier to learn the ropes when DB Schenker promoted her in 2009. Her previous job as an Continuing education students, such as this University of Tennessee group touring a Kraft account manager focused on the United Foods facility in Buenos Aires, benefi t from each other’s cultural and professional diversity. States, while the new job covers all of the Americas. aging director of the SCL Institute. Green Supply Chain Leadership, and Foran headed to grad school expect- “Other than the day not being as long, Purchasing Professional. ing to gain a new sense of confi dence students have the full experience of sit- Another important focus for sup- and credibility, and to learn fresh ting in a classroom.” ply chain education is global trade. For perspectives that would benefit DB Students e-mail questions to the example: “What does it mean to work Schenker’s customers. “We could show professor, and he answers in real time. within Asia – in terms of culture, regula- them new – perhaps better – ways of tions, and business infrastructure?” asks operating,” she says. NEW SUBJECT MATTER Stank. In the executive MBA program What she did not expect was how Just as methods for delivering instruc- at Knoxville, and in some longer certifi - much she would gain from getting tion are evolving, so are the subjects cate programs, students travel abroad to to know her fellow students. “I met a covered. One trend is to give students study those issues, and others. diverse range of classmates – both cul- practical experience with enterprise In the same spirit, in 2011 the turally and in experience levels,” Foran resource planning (ERP) software. University of Tennessee will launch an says. She continues to network with “Three of our supply chain classes executive MBA program with a focus on them to this day. require students to do some out- global supply chain management. “The Like Foran, many other students fi nd side work utilizing SAP,” says Tony program will be delivered with four that an educational program in logis- Inman, Ruston Building and Loan global academic institution partners tics or supply chain management nets endowed professor of management in and offered on four continents over 15 more benefits than expected going the Department of Management and months,” Stank says. in. Institutions of higher learning are Information Systems at Louisiana Tech Two partners are Central European continually fi nding ways to help new- University. “When I tell recruiters about University in Budapest and the comers and veteran professionals alike that, their eyes light up.” Institute of Logistics and Supply Chain grow and shine. ■

30 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP G RADUATE P ROGRAMS AT E LMHURST

Master of Science in Supply Chain Management

Elmhurst offers The only program of its kind in the master’s programs in metro Chicago area. nine intriguing fields. •MBA • Master strategies for the new global marketplace • Supply Chain Management • Study with leading professionals in the industry • Professional Accountancy • • Industrial/Organizational For information, contact Complete hands-on, “real world” projects Psychology The School for Advanced • Enhance your skills at leadership and critical thinking • Computer Information Learning Systems (offered online) at (630) 617-3300 or • Build a great new professional support network • Nursing [email protected] • Complete your master’s degree in two years— • English Studies or visit in evening classes—on a beautiful, easy-to-access • Early Childhood Special www.elmhurst.edu/scm Education suburban campus • Teacher Leadership (for certified teachers)

The School for Advanced Learning 190 Prospect Avenue Elmhurst, IL 60126 www.elmhurst.edu

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner CAREERSOLUTIONS Advance your SCM expertise at a top- ranked program

The W. P. Carey School of Business offers three ways to enhance your SCM knowledge and skills online: • MBA • Graduate Certiﬁ cate • Professional Certiﬁ cate Get Your Career Rolling All courses are taught entirely online by W. P. Carey faculty from our Supply Chain Again With TIAU. Management program — ranked No. 5 in the nation by U.S. News & World Report.

SCM Certifi cate: Classes start March 1, 2010 MBA with SCM Emphasis: Classes start July 19, 2010 If you’re looking to advance your transportaƟon logisƟcs career, it’s Ɵme you checked out TIAU. Developed by the Transportaon Intermediaries For more information visit Associaon (TIA), the voice of the 3PL Industry. wpcarey.asu.edu/supplychain Instrucon from real-world professionals with years of industry success. or call (480) 965–8006 Internet based course offerings to fit in your busy schedule. Praccal, targeted, hands-on educaonal offerings developed specifically for 3PL’s. Stand out from the compeƟƟon when you register today at www.Ɵanet.org/Ɵau.

32 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP Education, Research, Outreach

Choose the program that works best for you: Global Logistics Specialist (GLS) • Master’s in Global Logistics • Radio Frequency Identification (RFID) • HazMat Programs • Marine Terminal Operator Superintendent • Customized Training • Conferences and Workshops • Online Classes Available

CITT is a partner in the Congressionally- designated METRANS Transportation Center.

California State University, Long Beach Center for International Trade and Transportation | www.ccpe.csulb.edu/citt | (562) 985-2872

Become a part of the Oldest Logistics Distance Learning School in the world that has helped over 84,000 Alumni navigate their careers in Supply Chain and Logistics since 1923!

COURSES NOW ONLINE

■ Coursework articulated with the ■ Earn while you Learn, University of Phoenix currently offering 16 Courses Transferable to other ■ Recognized by other Leading Universities for college Credits Degree-Granting Institutions. ■ Certificate program with INSTITUTE OF ■ Certified Logistics Practitioner potential college credit LOGISTICAL MANAGEMENT (CLP) Accredited by DETC ■ Approved for VA and MGIB Tel: 1-888-ILM-4600 ■ Our Accrediting Commission as well as by dantes Fax: 609-747-1417 (DETC) is recognized by 315 W. Broad Street the U.S. Secretary of Education Burlington, NJ, 08016 NEW CERTIFICATION PROGRAMS [email protected] www.logisticseducation.edu/contact 8 New Combinations of Professional and Educational Programs ■ 4 Practitioner Tracks ■ 4 Certification Tracks

“ILM puts the LOGIC in LOGISTICS” – Staff Sgt. H. Jennings, U.S. Army Ret.

February 2010 • Inbound Logistics 33

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner CAREERSOLUTIONS

Transportation and logistics professionals need strategic, critical thinking skills to navigate multiple disciplines. With APU’s online undergraduate and graduate degree programs in:

• Transportation and Logistics Management • Homeland Security • Information Technology • Management • And more!

We help you succeed regardless of where life takes you.

Learn more at: www.apu.apus.edu/Transportation-Logistics

Respected. Affordable. Online. | 877.777.9081

APU is a member of the regionally accredited American Public University System

PROFESSIONAL EDUCATION TRANSPORT Your Career to a Higher Level

The ITI Executive Masters Program offers a rigorous curriculum and a hands-on approach for developing advanced management skills for working professionals in Program Contact Information the transportation and supply-chain industries. For additional information and to discuss the University of Denver ITI Executive Masters Program, ■ Master of Science in Intermodal Transportation Management. please contact the following: ■ Designed for working professionals based anywhere. ■ 18-month program with 5, one-week Denver residencies and a travel seminar George C. Woodward ITI Board President to an international location. ITI Board of Directors ■ ITI scholarships may be available for those who apply and qualify. 215.247.2162 [email protected] ■ Accepting applications for classes beginning in September 2010. ■ Apply online: www.du.edu/transportation/exc_masters_program.html Cathryne C. Johnson ITI Executive Director ITI Oﬃce 303.871.4702 Intermodal Transportation Institute - University of Denver [email protected] 2400 South Gaylord Street - Denver CO 80208-1300

34 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP Master of Arts in In Transportation and Logistics What Separates You From the Pack? Certify with AST&L Because Your Career is Worth It Transportation Policy, Operations and Logistics ● Industry Knowledge EARN A DEGREE THAT takes a multidisciplinary approach to prepare graduates to work effectively in ● Speaking the Language of Your Customer today’s logistically integrated intermodal transportation ● Valuable Contacts systems. Study such course topics as transportation ● policy and planning, transportation and land use, Top-Notch Credentials international transportation systems, and intelligent ● Relevant Experience transportation systems. ● Professional Certiﬁcation from AST&L s3MALLCLASSESTAUGHTBYWORLDRENOWNEDFACULTY s#ONVENIENTLYLOCATEDINTHEMETRO7ASHINGTON $#AREA s&ULL TIMEORPART TIMESTUDY s!FFORDABLECOSTS

TO LEARN MORE, visit policy.gmu.edu or call 703-993-8099 For More Information Contact American Society of Transportation & Logistics (202) 580-7270 www.astl.org ® [email protected]

E AZVgcbdgZ/lll#Wjh#bhj#ZYj$hjeeanX]V^c$bhhXb H^bean>cXdbeVgVWaZ

Ad\^hi^XhBVcV\ZbZci DeZgVi^dchBVcV\ZbZci HjeeanBVcV\ZbZci Hjeean8]V^cHigViZ\n I]ZBVhiZgd[HX^ZcXZ^cHjeean8]V^cBVcV\ZbZci ccdkVi^dcVcYIZX]cdad\n BVcV\ZbZci As you compare options for getting a master’s degree in supply chain management, make sure you talk with us. >ciZ\gViZYEaVcc^c\ Because at Th e Broad School, you can have the best of everything:

r A master’s degree from one of the top-rated supply chain management programs in the world. r An innovative learn-while-you-earn program…you keep your job and career moving forward. r Attend four intensive 12-day on-campus sessions over two summers, supplemented with web-based classes. r Earn 36 credits in 19 or 31 months, giving you the fl exibility to keep your work-life balanced. r Choose from three tracks: logistics management, operations management or supply management. r Learn from leading-edge researchers, teachers and practitioners in the fi eld of supply chain management. CVcXnIVnadg!9^gZXidgiVnadg5Wjh#bhj#ZYj *&,#)('#+)*-

February 2010 • Inbound Logistics 35

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner 36 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP ISF COMPLIANCE Solving

Importers and exporters must make sure CBP’s new 10+2 equation adds up. Here’s the formula for successful compliance. BY AMY ROACH PARTRIDGE

mporters and exporters have spent a lot of time trying to ﬁ gure out 10+2 I lately – and they are not practicing basic math skills. They are working toward complying with a new U.S. Customs and Border Protection (CBP) cargo security regulation. The Importer Security Filing (ISF) regulation, enacted in 2008, but put into full effect on Jan. 26, 2010, is commonly referred to as the 10+2 initiative because it requires importers/exporters and ocean carriers to provide trade data – 10 elements and two elements each, respectively – for all non-bulk ocean cargo shipments arriving into the United States.

February 2010 • Inbound Logistics 37

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner Under the new rule, before merchan- Understanding 10+2 Data Element Requirements dise arrives by vessel into the United States, importers – or their customs broker or freight forwarder – must submit 1 Seller (or owner) name and address certain cargo information to CBP in the form of an ISF. Importers/exporters 2 Buyer (or owner) name and address must now send CBP 10 data elements; Importer of record number/foreign trade fi le the fi rst eight no later than 24 hours 3 zone applicant identifi cation number before the cargo is loaded on its U.S.- Must be fi led no later 4 Consignee number(s) bound vessel; and submit the last two than 24 hours before no later than 24 hours prior to the ship’s the cargo is loaded on 5 Manufacturer (or supplier) name and address arrival at a U.S. port. Carriers must also the U.S.-bound vessel. submit two elements. 6 Ship-to name and address Screening for Security 7 Country of origin While providing this new data has caused headaches for many importers Commodity Harmonized Tariff 8 Schedule number and exporters, the reasoning behind IMPORTER/EXPORTER OR BROKER/FORWARDER the regulation is sound: CBP wants to Must be fi led no later improve its ability to identify high-risk 9 Container stuffi ng location than 24 hours prior shipments in order to prevent smuggling to the ship’s arrival 10 Consolidator (stuffer) name and address and ensure cargo safety and security. at a U.S. port. “We can’t physically examine every load of cargo, so we have to rely on + data to help us screen and filter out shipments most at risk,” explains Rich Must be submitted no 1 Vessel stow plan DiNucci, CBP’s director of the secure later than 48 hours after departure from freight initiative. “Having accurate data 2 Container status messages helps CBP determine what action to CARRIER the last foreign port.* take to mitigate whatever risk might be * For voyages shorter than 48 hours, carriers must fi le the data before the ship arrives at a U.S. port. associated with a shipment.” Based on what the data indicates about a particular shipment, a CBP transporting the cargo? At what point supply chain when merchandise leaves screener might, for example, decide to do certain parties touch the cargo and a manufacturer’s factory until a freight X-ray the container, perform a radiation the container? forwarder takes possession of the goods,” detection test, conduct a physical exam, “With the new ISF regulation, we says Virginia Thompson, director of or request more information from the know who sold the goods, who import/export operations and interna- importer. The additional data that bought the goods, where the con- tional trade compliance for furniture importers provide as a result of 10+2 tainer was stuffed, and if the goods are and home furnishings chain Crate & will help CBP refi ne its process of deter- sold in transit, among other informa- Barrel. mining cargo risk. tion,” DiNucci explains. “It provides “By requiring us to gather more infor- “We always look to improve our greater transparency.” mation about that time frame – who is screening and security procedures,” But is what’s good for CBP also good putting the goods in the container, and DiNucci says. “10+2 came about as a for importers and exporters? Opinions where and when that is happening – the result of our internal reviews, as well as vary, but many shippers fi nd that com- ISF regulation has provided additional Congressional oversight.” pliance has its benefi ts, even though it supply chain visibility,” she contin- The specific data elements that has proved challenging. One example: ues. “Now, if we encounter a shortage importers must now provide are sur- some importers have discovered addi- or damage, we know more quickly and prisingly simple and equip CBP with tional supply chain visibility as a result easily how to resolve the situation and transaction basics such as: What is the of obtaining the data that CBP requires. identify the liable party because we actual cargo? Where did the cargo orig- “Many importers must deal with have to compile that data.” inate? Who are the parties involved in a black hole – from the point in the The additional data also helps the

38 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP Aankhen Inc.

Asset Tracking & In-Transit Visibility For Global Supply Chains & Defense Logistics

Aankhen Inc. - Command Center

Security & Environmental Monitoring Using GPS & RFID to see Where in the world is your stuff ?

Make your supply chain better, faster and smarter

Visit www.aankhen.com for a thought provoking white paper on Supply Chain 2.0

[email protected] ph:408-387-0083 Aankhen Inc.

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner company control transit times, and iden- Integration Point in early 2009. and strategy for Integration Point. “We tify consolidation opportunities among Integration Point 10+2 facilitates Crate also maintain Crate & Barrel’s ISF fil- its many overseas manufacturers. & Barrel’s ISF fi ling while allowing the ing records.” retailer to retain control over the process. While the process sounds fairly sim- Crate & Barrel Catches On When overseas vendors are ready to ple, getting all the various supply chain Crate & Barrel imports approximately ship an order, they send Crate & Barrel players in line has been a complex task. 7,500 40-foot equivalent units annu- an advanced shipment notice (ASN), Crate & Barrel asked its vendors to pro- ally – about 60 to 65 percent of what the which contains traditional data such as vide ASNs at least three days before a company carries in its Crate & Barrel, what items are being shipped and when. vessel sails so the company has enough CB2, and Land of Nod stores. The It also contains new information, such time to receive the information into its retailer deals with more than 30 coun- as stuffi ng location, that the company system, validate the data, and resolve tries of origin and more than 600 active needs for ISF fi ling. Crate & Barrel then any questions or issues – no easy feat. import vendors. It also boasts a grow- uses that information to build the ISF “We depend on vendors to provide ing export business, as it begins to open fi le in its enterprise resource planning the correct information when we need international locations. system and sends that fi le electronically it,” Thompson explains. “But they are To help wrestle this large import/ to Integration Point. still confused about what informa- export business into ISF compliance, “We then marry the different data tion they have to supply and where Crate & Barrel selected an ISF sys- streams, validate the information, and they need to input it. We’ve spent a lot tem from Charlotte, N.C.-based global transmit the ISF data to CBP,” explains of time auditing the ASNs and going trade management software provider Melissa Irmen, vice president, product back to the vendors to explain what we need.” Once the vendors are better educated and accustomed to using the system, Thompson expects it will only take about 10 man hours a week to fi le its 7,500 annual ISFs.

Yamaha’s A-ha! Moment ISF fi ling can get even trickier when an importer based in the United States is part of a company headquartered in another country. Such is the case for Yamaha Corporation of America, the world’s largest manufacturer of musical instruments and a leading producer of audio/visual products. In order to comply with the 10+2 regulation, Yamaha had to fi nd a way to encompass the roughly 1,700 to 1,800 annual ISF fi lings to be done by its headquarters in the United States and Japan, as well as 14 Yamaha and OEM factories, in addition to some 30 other shipping agents. Adding to the complexity, the company’s numerous corporate units use different codes for Yamaha’s various musical instruments, electronics, and professional audio products. “We have our own item numbers in the United States, but our parent com- Home goods retailer Crate & Barrel set the table for ISF compliance by investing in global pany in Japan and factories in China, trade management software. Malaysia, Indonesia, and Japan use a

40 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP THE MANY FACES OF ALAN

Join us. Support humanitarian relief.

A corporate executive making an online donation. A truck driver delivering critical supplies. A volunteer offering a bottle of water to a thirsty child. These are just some of the faces of the American Logistics Aid Network — ALAN.

Our goal is to bring supply chain professionals together — helping others in need, ﬁnding solutions in times of crisis. We provide a central point of contact during natural disasters and an effective process for distributing donations... putting resources in the hands of those who need them as efﬁciently as possible.

Our website provides a convenient portal to facilitate donations. Whether you can provide logistics expertise, supplies, vehicles to haul them, or local warehouse space to store them, we can match your resources with regional needs.

Become one of the many faces of ALAN.

As a non-proﬁt organization, we depend on people like you to continue our good work. We need your help — with product or service donations, the gift of time or talent, or ﬁnancial support. Sponsorship opportunities are available at a variety of levels. Learn more at www.ALANaid.org.

www.ALANaid.org

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner The data provided to CBP through the 10+2 initiative helps customs ofﬁ cers identify high-risk shipments. Checking a suspicious container’s contents by physical inspection, X-ray, or radiation test helps promote cargo safety and security.

global material code (GMC),” explains filing, and pushes the data electroni- Assessing the Damage Juna Kim, import/export director cally to CBP.” So what can importers and exporters for Yamaha. “The biggest challenge for ISF filers expect now that the Jan. 26, 2010, dead- When the company searched for a has been gathering the information in line for ISF fi ling has come and gone? vendor to provide an electronic ISF fi l- a way that works best for them,” says CBP can issue liquidated damages of ing solution, the ability to marry those Wayne Slossberg, vice president of sales, $5,000 per violation to importers fi ling diverse codes topped the list of criteria. QuestaWeb. “The system is flexible an inaccurate, incomplete, or untimely “Another compliance requirement was enough to work for both the fi lers and ISF fi ling. that each factory could access only its their outside vendors.” CBP may also withhold the release, own product and client information,” Thanks to this method, Kim did unloading, or transfer of cargo that Kim says. not worry about meeting the January arrives in the United States without an 2010 deadline. “Yamaha has been 10+2 ISF fi ling; and could also subject non- A Custom Solution compliant since we filed our first ISF compliant cargo to “do not load” orders It found the solution from QuestaWeb, shipment in June 2009,” she notes. at the point of origin. The agency a global trade management software In addition, she has benefi ted from will be using a graduated approach to provider in Westfi eld, N.J. The compa- the system’s reporting capabilities and enforcement, however, to give import- ny’s products operate on a Web-based, the increased data she now has at her ers and exporters a chance to adapt to modular architecture that offered fi ngertips. “I can run reports to see how the new regulation. Yamaha important customization. many shipments each factory is creat- “We know some importers/exporters “QuestaWeb created an upload pro- ing, and what kind of product they are are facing fi ling challenges and we’ve gram that lets our parent company in bringing in,” Kim explains. made it clear that we will not jump Japan and our Asian factories use the “Though ISF has been complicated all over them with claims and penal- GMC codes, and the system automati- for many importers, compliance has ties immediately after Jan. 26,” CBP’s cally fi nds the matching U.S. item code,” helped them automate and improve DiNucci says. explains Kim. “It then extracts all the visibility to their entire supply chain,” “But shippers can expect to hear from necessary information we need for ISF says Slossberg. us if they are not fi ling.” ■

42 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP A new beginning...... that goes Beyond Distribution Lydall Transport is now CrossGlobe

WAREHOUSING DISTRIBUTION TRANSPORTATION MANAGEMENT PORT DRAYAGE

Monson, MA Glen Allen, VA Newport News, VA

Portsmouth, VA

Charleston, SC (opening soon) 800.365.9186 Ext 394 or 395 Savannah, GA 804.550.1993 Houston, TX www.crossglobegroup.com [email protected]

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner Software and Services 10+2 SOLUTIONS for ISF Compliance

COMPANY PRODUCT DESCRIPTION

ASCI of Miami Streamlines ISF data entry via user interface or EDI. Provides reporting Miami, Fla. ISF (10+2) capabilities and internal editing to ensure compliance. 305-554-1325 Procedures asciofmiami.com

Artemus Group Provides global access, customer and vessel proﬁ les, customized reporting, Virginia Beach, Va. Artemus Customs arrival notices, and direct access to responses from U.S. and Canadian 866-744-7101 Reporting System Customs. Includes performance reports, multiple transmissions for artemus.us consolidated shipments, and full EDI message capabilities.

CargoSmart Limited Offers an online platform for importers and logistics service providers to San Jose, Calif. streamline data collection and submit fi lings. Dashboards, reports, and fi ling 408-325-7600 Cargo Smart ISF history search help shippers monitor their fi lings. Other features include cargosmart.com templates, an address book, and Harmonized Tariff Schedule codes.

CargoWise Delivers an integrated data collection and ﬁ ling solution with Web-generated Schaumburg, Ill. ISF ﬁ ling; system alerts when ISFs are created; shipment search and lookup; 847-364-5600 EdiEnterprise electronic storage of CBP messages and other documentation related to the cargowise.com ISF; and reporting capabilities.

CDM Software Solutions Provides a Web-based solution with a shipment copy feature and the ability Chicago, Ill. to receive ISF data via EDI or API from third-party software. Automated ISF 312-867-8778 CDM ISF Solution acceptance response sent via e-mail includes ISF receipt. isfsoftware.com

Descartes Systems Group Helps manage legally required containerized shipment information to Waterloo, Ont. Descartes 10+2 ensure compliance with CBP ISF programs. Deploys solution across user’s 800-419-8495 Importer Security organization and integrates it with existing technology. descartes.com Filing Service

eCustoms Collects required 10+2 information, veriﬁ es Harmonized Tariff Schedule Buffalo, N.Y. numbers, and submits the information to CBP. 877-328-7866 Visual Importer ISF ecustoms.com

Freightgate Supports importers, customs brokers, freight forwarders, and ocean Huntington Beach, Calif. carriers in import security compliance and trade data reporting to CBP. 714-799-2833 Compliance-Trek! Re-usable templates eliminate duplicate data entry by storing parties, items, freightgate.com Harmonized Tariff Schedule numbers, and other pertinent information.

GT Nexus Allows importers to create ISF ﬁ lings online and submit them directly to CBP. Oakland, Calif. Collects response and status advisories from CBP and presents them to 510-808-2222 GT Nexus Easy ISF users in a central dashboard. gtnexus.com

44 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP COMPANY PRODUCT DESCRIPTION

IES Facilitates acquiring ISF, purchase order, commercial invoice, and booking Midland Park, N.J. data elements from the global supply chain. Provides tools to ensure data 201-639-5000 E-Cellerate and business relationship conﬁ dentiality. Supports collaboration, EDI, iesltd.com visibility, and compliance.

Integration Point Compiles data from various parties involved in an import transaction into Charlotte, N.C. a single database and provides tools to assist the importer with correctly 704-576-3678 Integration Point 10+2 completing and submitting an ISF. integrationpoint.com

International Trade Systems Prepares data and documentation for ﬁ ling to CBP. Includes Web-based Portland, Ore. tracking tools. 888-861-7227 ITS4ISF its4abi.com

Kewill Automates and accelerates the import clearance process for brokers and/or Chelmsford, Mass. Kewill Customs importers clearing their own shipments. 978-482-2500 Brokerage kewill.com

Livingston international Allows importers to manage and monitor their own ISF ﬁ lings. Features Bensenville, Ill. custom forms and templates to simplify data entry and has built-in 630-766-0202 Insight ISF Solution compliance and security features. livingstonintl.com

LOG-NET Web-based solution links directly to CBP and provides ﬁ ling results in Red Bank, N.J. LOG-NET Importer seconds. Supports various levels of automation – from manual templates to 732-758-6800 Security Filing integration with electronic master data, purchase orders, or shipping data. log-net.com

Management Dynamics Automates compliance to prepare and submit all ISF data reporting East Rutherford, N.J. requirements directly to CBP or to a designated agent for ﬁ ling. After 201-935-8588 Customs 10+2 receiving an advanced shipment notice, the system leverages shipment managementdynamics.com transaction data to perform all ISF-related validation and ﬁ le preparation.

NetChb Provides importers, customs brokers, and freight forwarders ISF ﬁ ling Tucson, Ariz. 10+2/Importer Security ﬂ exibility through Web-based shipment data recording. 520-577-6801 Filing Module netchb.com

Netwin Solutions Facilitates ISF creation through defaults and templates. Transmits data to Westminster, Calif. CBP via a secure VPN tunnel to ensure data security and timely ﬁ ling. 714-903-2121 GTKonnect ISF netwinsolutions.com

February 2010 • Inbound Logistics 45

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner Software and Services 10+2 SOLUTIONS for ISF Compliance

COMPANY PRODUCT DESCRIPTION

NG Jensen Enables multiple parties to input the required 10+2 data, helping users Minneapolis, Minn. instantly view, correct, and manage ISFs. 888-645-9777 ISF Express ngjensen.com

QuestaWeb Facilitates information gathering and data submission and supports use Westfi eld, N.J. QuestaWeb 10+2 in either a manual or an automated mode. Allows fi rms to build ISFs 908-233-2300 (ISF) module automatically from purchase orders and commercial invoices, and ties the questaweb.com fi nal entry information back to the ISF fi ling for recall when needed.

SmartBorder Allows shippers to input ISF data through an online portal, while customs Niagara Falls, N.Y. ISF Importer brokers and freight forwarders can ﬁ le using a standalone ISF service center 800-572-2734 Security Filing module. smartborder.com

TradeBeam Assists in preparing, ﬁ ling, and maintaining ISF data records as part of San Mateo, Calif. Import Management import compliance documentation. 650-653-4800 Solution tradebeam.com

TradeCard Compiles data from purchase orders and packing and shipping documents, New York, N.Y. The TradeCard and links all necessary transaction parties through a global network. 212-405-1800 Platform Provides access to all 10 data elements and automates transactions tradecard.com/10plus2 between buyers, vendors, manufacturers, agents, and factories.

TradeMerit Allows importers to submit the required ISF data elements directly to CBP Boston, Mass. and receive ISF status updates. Saves drafts to ensure data accuracy before 866-322-2816 ISF Enhanced submission to CBP and maintains a record of every ISF ﬁ ling along with its trademerit.com version, time, and the name of the user who edited it.

Trade Tech Creates automatic importer security fi lings for CBP and a virtual back offi ce Bellevue, Wash. Importer Security of personnel located in major port cities around the world, facilitating timely 425-837-9000 Filing Solution data fi ling. tradetech.net

TRG Direct Allows importers to self-ﬁ le ISF data and customs entries directly to CBP. Bozeman, Mont. 10+2 Importer Features include templates for repetitive entries, spreadsheet upload, parts 847-852-3170 Security Filing table upload, multiple users, and vendor access. trgdirect.com

Xtheta Supports all ISF requirements and provides online access to all reports Skippack, Pa. and notiﬁ cations issued via email. Importer proﬁ les enable quick entry of 610-584-1262 ISF Module repetitive information. xtheta.com

46 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP Central, Connected, Capable Joplin, Missouri! Your Supply Chain Link

• A strong, central location creates easy access to regional, national and North American markets. • Efficient, cost-effective transportation routes connect Joplin to both coasts, as well as Canada and Mexico. • More than forty trucking firms, three Class-I and short-line railroads, and air passenger and cargo services provide the capability to move products and people to and from key markets. • A large, hard-working labor force has the capabilities to meet the highest level of customer demands.

Central location, market connections and a capable workforce are key links Joplin oﬀers your supply chain system. Join us today at one of these great Joplin locations:

• 670 acres Crossroads Business and Distribution Park on I-44 • 1500 acres Wildwood Ranch development, rail served • 50,000 square foot shell building, expandable to 100,000 square foot • 139,000 square foot shell building, seven docks, 4,000 sq. ft. of ofﬁce

FOR MORE INFORMATION Rob O’Brian, CEcD/President Joplin Area Chamber of Commerce 320 East 4th Street, Joplin, MO 64801 www.joplincc.com * [email protected] (phone) 417.624.4150 (fax) 417.624.4303

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner @eYfle[Cf^`jk`Zj [\c`m\ij`e]fidXk`fe XepnXpXe[Xepn_\i\ i\X[\ijnXek`k

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LOGISTICS PLANNER RFP INPRACTICE

| Casebook by Joseph O’Reilly

E-FULFILLMENT Finding the Perfect Fit

here’s a ﬁ ne line between almost and just right. It’s a degree of detail that Bonobos, a New York City-based “e-tailor,” has T aligned its fortunes to. The company peddles pants that suit the average man better than average. “We sell pants that trump ﬁ t as the distinguishing factor,” explains John Rote, “ninja manager” for Bonobos.

The idea for a “haberdasher-e” inventory and distribution in-house Online haberdasher sprang in 2007 when two Stanford was bunching like competitors’ Business School roommates with a slacks. Bonobos focuses on sewing machine decided to spool dis- “We were a typical startup that had dain for baggy trousers into a new a lot of learning to do,” says Rote. “The details to guarantee venture. As Rote’s job title suggests, warehousing, inventory management, the company branded its internal job and shipping functions were a distrac- pants that fi t. Naturally, functions with the same creativity it tion. Our small staff was doing many brings to its broader mission of saving different jobs. A computer program- it demands the same the Congolese Bonobo primate. Its mer might be working as a janitor and pants deliver to a similar civility. customer service representative at the diligence from its “The cut is more fitted than most same time.” third-party fulfi llment pants on the market,” says Rote. So Bonobos decided to add a new “Instead of targeting 100 percent of the thread to its supply chain by outsourc- partner. male population with a product that is ing distribution to Quiet Logistics, less fi tted, we’re targeting a portion of an Andover, Mass.-based third-party the population with a product that is logistics (3PL) provider that has been more fi tted.” stealthily making some noise of its Bonobos’ made-to-suit pants took own. off. But by summer 2009, the e-tailer Bonobos’ business is signifi cantly recognized its capacity to manage Web-driven. “We’re the intersection

February 2010 • Inbound Logistics 49

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner INPRACTICE Casebook CONTINUED FROM PAGE 49 of good product, service, and technol- operations, including stints at Office Quiet Logistics’ materials handling ogy,” says Rote. So when this junction Depot and drugstore.com. system brings eaches, cartons, or pallets became too busy to direct internally, it Pairing this industry pedigree with to work stations where employees can turned to Quiet Logistics’ outsourced a proprietary warehouse management receive and stock units. “Product fl ows fulfi llment solution. system (WMS) and Kiva’s innovative to the worker,” says Riggs. Bonobos was operating out of a New robotics materials handling solution The system works as effi ciently on the York City offi ce split between adminis- created the foundation for a unique, cus- outbound side. The drive units (robots) trative and storage space. Its staff was tomer-driven e-fulfi llment operation. pull storage pods to pickers who build also sharing functional roles beyond orders for fulfi llment. The system intui- creative and marketing. The e-tailer had A QUIET SOLUTION tively grabs multiple orders at the same one in-house employee responsible for Quiet Logistics’ fulfillment system time, and can prioritize items by spe- handling fulfillment and another to provides a completely transparent multi- cific characteristics such as next-day manage inventory – which was essen- tenant WMS and transportation parcel air, fi rst-in fi rst-out, and specialized VIP tially making sure boxes were neatly system that integrates with its custom- shipments – all while eliminating human stacked on shelves. ers’ platforms. But most visible is the movement between storage space. “Our expertise was in marketing and 3PL’s automated, and quiet, warehouse The 3PL has also greatly increased branding the product, not packing operation. the capacity of its distribution facility. boxes,” notes Rote. “And we couldn’t Quiet Logistics currently operates two Storage pods are squeezed into a much afford full-time warehouse staff to man- DC facilities in the Andover area, one of smaller area because there is no need for age peak season demand.” which is supported by Kiva’s automated walk space – and pods can move around At the same time, the popularity of storage and retrieval technology. With at will along the warehouse grid. Quiet Bonobos’ products was growing rap- the robotic element in play, receiving Logistics can hold three times more idly – as was SKU complexity. Managing and putaway, picking, packing, and inventory than a traditional warehouse. inventory, shipping, and exceptions, shipping are fully automated. Perhaps the only thing more strik- while also capitalizing on new ing than the robotic automation marketing efforts, presented both is the lack of ambient noise. “It’s a challenge and an opportunity. a 180-degree turnaround from “We had been struggling with warehouses with five-mile-long the decision of when to outsource,” conveyor systems,” says Riggs.

says Rote. “But when we met with PETER MCBRIDE PHOTO: The hush of the facility chal- Quiet Logistics, we knew imme- lenges a common misperception. diately it was the company we “People often associate produc- wanted to partner with.” tivity with noise,” Riggs says. But Bonobos has an avant-garde Quiet Logistics is more than will- business culture. So does Quiet ing to demonstrate the difference. Logistics. The 3PL has built its value proposition around an INTERLACING WITH DEMAND automated fulfillment solu- In the world of e-commerce, tion developed by Kiva Systems, “each picks” drive fulfi llment, and Woburn, Mass. Quiet Logistics’ Quiet Logistics’ DC is tailored to robotic materials handling setup that demand. Companies such as was the perfect foil for Bonobos’ Bonobos want product care, speed, progressive business acumen. and accuracy so they can deliver “When we started the busi- that service to customers. ness in January 2009, we wanted With traditional conveyor sys- to take our warehouse expertise tems, orders often fall out of directly to the customer with this sequence. ABC-type warehouse technology piece,” says Jacqueline processes add touches to prod- Riggs, vice president of operations, uct handling and are also labor Quiet Logistics. The company’s intensive. leadership came from both sides “In our DC, one person fulfi lls of the third-party warehousing orders instead of multiple handlers New York City-based Bonobos has a hip business divide. Riggs brings more than 25 culture defi ned by its signature slacks. Quiet Logistics’ and processes,” explains Riggs. years of experience in distribution unique fulfi lment solution provides the perfect match. “We can also more easily increase

50 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP and decrease staff based on workfl ows.” This effi ciency helps improve turns and reduce errors. Quiet Logistics currently manages all of Bonobos’ fulfi llment and shipping. Since the partnership began, efficiencies on the distribution side have had an impact on the e-tailer’s customer-facing operations. “Our error rate has dropped signifi- cantly,” acknowledges Rote. “We can also handle orders later in the day, so we are pushing our cutoff from 3:30 p.m. into the evening. If a customer places an order, we can say it will ship in one hour. We have greater fl exibility to meet customer demand.”

VALUE-ADDED BENEFITS Outsourcing fulfillment and shipping also allows Bonobos to build out its SKUs and grow the catalog. It used to sell pants with different waist sizes. Now it sells pants with different waists and in- seam lengths. Not one to sit on the seat Quiet Logistics’ robotic warehouse fulfi llment operation, powered by Kiva Systems, of its signature slacks, Bonobos also sells enables fully automated receiving, putaway, picking, packing, and shipping. polo shirts, shorts, and swimwear. “Quiet Logistics’ DC eliminates presentation should mirror that quality. size boxes are most effi cient for a spe- touches, which helps us reduce order Now we can tailor materials to what’s in cifi c product – then leverage packaging fulfi llment time,” Rote adds. “Customers an order.” volume to drive down pricing and share aren’t just ordering one product, they are those economies with the customer. purchasing one unit in different styles, MEASURED APPROACH TO GROWTH Bonobos is also becoming more sometimes in a few different sizes, to Together, Bonobos and Quiet Logistics sophisticated in managing transpor- fi nd what fi ts. The cost and time to ful- are exploring opportunities to stretch tation, from consolidating shipments fi ll orders has improved markedly.” their respective businesses. and batching orders to communicating Because of its automated system, and Bonobos currently sources most of its better with carriers and consequently the fact that inventory is pulled to work apparel from local garment manufactur- providing real-time shipment visibility stations, Quiet Logistics has the fl exibil- ers in New York City. “But we don’t want to customers. ity to scale from one-unit orders to 20 at all our eggs in one basket; we need scale,” “Our partnership with Quiet Logistics the same time – depending on demand. Rote explains. The e-tailer is already has helped us grow up in terms of orga- This effi ciency presents other value- awaiting its fi rst shipment of product nizing product delivery,” says Rote. added opportunities. It allows Bonobos from overseas. “When we were doing it ourselves, we to dedicate packaging materials to spe- Quiet Logistics is looking to build on were always tempted to rush things cific customers. For example, it can its early success, too, eyeing expansion through. Now that we are feeding a provide a catalog to fi rst-time buyers or into the U.S. Southeast. sophisticated system, we are more disci- include special promotions for VIP cus- Bonobos benefi ts from its partner’s plined in how we get product.” tomers to inform them about related distribution experience and warehouse For a company that places so much products and give them the option fl exibility. Quiet Logistics, in turn, con- value on making sure its product meets to make another buy. In this manner, tinues to build its customer portfolio customers’ specifi c needs, fi nding a logis- packaging and fulfillment efficiency and leverage economies of scale to pro- tics service provider that brings a similar enhances marketing efforts. vide even greater total value. attention to detail was important. “We’re expanding products to dif- For example, the 3PL is using Kiva’s Bonobos has a thing for perfect seams. ferent types of customers,” says Rote. technology to drive packaging improve- But with Quiet Logistics, it has discov- “Our product is nice, and we think ments, letting the system dictate what ered a seamless solution. ■

February 2010 • Inbound Logistics 51

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner IN THIS SECTION: 3PLs

3PLs

3PD • www.3pd.com

Each year, 3PD makes nearly ﬁ ve million deliveries (and counting) for some of the biggest names in business. That’s a lot of deliveries, a lot of doorbell ringing, and a lot of focused last-mile logistics experience that we can turn into a competitive advantage for you.

C.H. Robinson Worldwide, Inc. • www.chrobinson.com

Founded in 1905, C.H. Robinson Worldwide, Inc. is one of the largest third-party logistics companies in the world, providing multimodal transportation, fresh produce sourcing, and information services to more than 32,000 customers globally, ranging from Fortune 500 companies to small businesses in a variety of industries. For more information about our company, visit our Web site at www.chrobinson.com.

CRST Logistics • www.crstlogistics.com

If you are ready to start moving, CRST Logistics is ready to start driving – driving signiﬁ cant costs from your supply chain. We’re a third-party logistics resource, providing transportation brokerage services and freight management to complete transportation outsourcing. We leverage our buying power to ﬁ nd the fastest, safest, most innovative ways to move your products. Anywhere. Visit our Web site to explore our transportation management and supply chain strategy. And let’s get going.

Greatwide Logistics Services • www.greatwide.com

Dallas, Texas-based Greatwide Logistics Services is one of the nation’s leading non-asset-based transportation, third-party logistics, warehouse/distribution, and truckload brokerage solutions providers. By operating four primary business units — dedicated transport, truckload management, truckload brokerage, and distribution logistics — Greatwide Logistics Services can provide its customers with a fully integrated range of transportation and logistics management services.

52 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP IN THIS SECTION: 3PLs – Education

Saddle Creek Corporation • www.saddlecrk.com

Saddle Creek Corporation is a nationwide third-party logistics company providing integrated logistics services — dedicated and shared warehousing, transportation, and contract packaging. Our turnkey logistics solutions can help you increase supply chain efﬁ ciency, streamline business, and manage costs.

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.

DUTY DRAWBACK

Dutycalc Data Systems • www.dutycalc.com

Drawback software and services from a drawback company makes good sense. Dutycalc’s Drawback.NET software package is recognized as the number-one Drawback Management System nationally. More than 300 system users beneﬁ t from our 30-plus years of drawback expertise. Additional services offered include application prep, rulings, claims prep, ABI drawback claim ﬁ ling, audit assistance, compliance assessment, and more. Whether your needs are software or services, Dutycalc is the logical choice. For a free online system demo, email [email protected], or call 530-637-1006 (PST).

EDUCATION

Elmhurst College • www.elmhurst.edu/scm

Elmhurst College offers the Chicago area’s only graduate program in supply chain management. In this program, you’ll gain a sound technical foundation and hone skills that are absolutely critical for today’s professional: communication, negotiation, team building, information technology, analytical thinking, working in diverse business environments, and sound business decision-making. All course work maintains a balance between current theory and its real-world application.

February 2010 • Inbound Logistics 53

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner IN THIS SECTION: Education – Liquid/Dry Bulk

Michigan State University — Masters in Supply Chain Management www.bus.msu.edu/supplychain/msscm

Michigan State has been at the forefront of supply chain education since the 1950s with unparalleled research and teaching programs. We offer four specialty tracks – logistics, operations management, purchasing and rail management – matching your interests and your career. MSSCM classes provide speciﬁ c deeper knowledge of supply chain practices and technologies and the program structure allows you to keep working full-time while earning your graduate degree.

The World Academy • www.theworldacademy.com

The World Academy offers a myriad of seminars, both in-house and at selected venues, dealing with logistics, supply chain issues, and import/export compliance. Our teachers are all experienced professionals from the logistics industry with a minimum of 19 years of hands-on experience. We offer classes on certiﬁ cation for shipping dangerous goods, C-TPAT workshops, import/export compliance management, and many others. Please visit our Web site at www.theworldacademy.com to view our course offerings.

University of Denver www.du.edu/transportation/exc_masters_program.html

The University of Denver’s Intermodal Transportation Institute’s Executive Masters Program is the only graduate program of its kind in intermodal transportation. The program is delivered through a combination of on-site residencies and off-site distance delivery follow-up, so students can work full- time, from anywhere, while earning a graduate degree. The program includes: ﬁ nance, management, and leadership studies; U.S. and international law and global trade courses; an intermodal business planning project; a personal leadership development planning project; a travel seminar to an area with intermodal facilities; and team projects and study groups.

LIQUID/DRY BULK

Bulk Connection Inc. • www.bulkconnection.com

Bulk Connection Inc. (BCI) specializes in providing transportation services for liquid/dry bulk, truckload, and LTL shippers nationwide. Recognizing the transportation needs of its customers, BCI has also established strategic alliances with airfreight, intermodal, and international freight organizations. Through its network of carrier partners, BCI has used its ability to mobilize and coordinate large numbers of equipment in emergency situations to help customers get the job done on time and in budget.

54 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP IN THIS SECTION: Logistics IT – Warehousing

LOGISTICS IT

Magaya Logistics Software Solutions • www.magaya.com

Miami-based Magaya Corporation has been developing logistics software solutions for international freight forwarders, consolidators, warehouse providers, air and ocean lines, NVOCCs, export/import companies, wholesalers, and distributors since 2001. These solutions automate your entire organization and provide award-winning communication features. All software is designed for the global marketplace — multi-currency, and multi-language. Whether you are a small operation or a large multinational organization with multiple ofﬁ ces, Magaya has the products you need to automate your business and provide superior customer service.

TradeCard • www.tradecard.com

TradeCard provides hosted technology, online services, and a global network of trade experts to connect buyers, suppliers, and their service providers. This unique offering ensures members have the data and tools needed to automate and optimize transactions and control their extended supply chain. Find out how TradeCard can help you rapidly connect, transact, and proﬁ t. Visit the Web site today.

SITE SELECTION

Ameren Corporation • www.ameren.com

St. Louis-based Ameren Corporation is a Fortune 500 company dedicated to generating electricity, delivering electricity, and distributing natural gas to 3.2 million customers throughout Illinois, mid-Missouri, and the St. Louis Metropolitan Area. Ameren’s professional development team serves as a complete source for business assistance services. For more information, visit Ameren’s Web site: www.ameren.com.

WAREHOUSING

Ryder • www.ryder.com

Ryder provides end-to-end supply chain, warehousing, and transportation solutions including: third-party logistics (3PL), ﬂ eet management, RFID operations, reverse logistics, supply chain management, transportation management/freight management, truck rental, truck leasing, warehousing, lead logistics provider, lead logistics manager, service parts operations, and distribution center management.

February 2010 • Inbound Logistics 55

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner IN BRIEF NEW SERVICES & SOLUTIONS

OCEAN 3PLs CaseStack Intermarine Associated Global Systems (AGS) Partnering with manufacturers and Industrial Echo, Intermarine's new A new trade show and special events retailers, CaseStack launched a retailer 456-foot-long, heavy-lift vessel, features service provides delivery, set-up, takedown, consolidation program in its Chicago dual 275-ton cranes. The ship carries and returns for conferences, trade shows, warehouse. The service combines multiple project cargo from Hamburg, Bilbao, and media events, and commercial fi lm and less-than-truckload shipments headed to Gijon to Brazil and Uruguay. video productions. the same retailer distribution center on www.intermarineusa.com 800-229-8701 www.agsystems.com 800-645-8300 one truck, reducing cost and increasing effi ciency for all three parties. www.casestack.com 866-828-7120 ▼ Materials Handling: Raymond Corporation The new Model 4450 three-wheel sit-down counterbalanced lift truck features a short Fetch Logistics head length that reduces turn radius, making it suitable for tight spaces, such as manufacturing and warehousing facilities, and loading docks. The lift truck handles A new offi ce in Chicago provides full capacities up to 4,000 pounds. truckload and rail transportation services. www.fetchlogistics.com 800-964-4940 www.raymondcorp.com 607-656-2311 Hermann Services At its Port of Houston container freight station, Hermann Services now provides transload warehouse services. The 100,000-square-foot transload facility has a 12-acre concrete yard to handle import and export cargo moving through the port. Hermann’s transload capabilities include on-site and off-site container staging, container stuffi ng and stripping, direct discharge container transload, and refrigerated transfer with plug-in capability. Rail-sided within the port gates, the facility can accommodate hopper car, conveyor, and bulk truck transloading, as well as outsize storage and oversize cargo handling. www.hermanntds.com 800-524-0067

EXPEDITED FedEx FedEx International DirectDistribution consolidates multiple packages or freight into one shipment to help reduce costs,

56 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP bypass distribution centers, and streamline clearance through customs before distributing individual shipments directly to their ﬁ nal destination. www.fedex.com 800-GO-FEDEX

PARTNERSHIPS Smiths Detection, Lufthansa Cargo, and Covenant Aviation Security LLC The three companies announced plans to provide all-in-one TSA-approved security service for the U.S. freight forwarding, air cargo shipping, and logistics segments. Services include ground handling, security screening and equipment, warehousing, training, and transportation. www.smithsdetection.com 973-830-2100 ▲ Air: AeroLogic www.lufthansa-cargo.com 800-LH-CARGO Expanding its network following delivery of two additional aircraft, AeroLogic introduced www.covenantsecurity.com 407-327-7480 daily fl ights from Leipzig, Germany, to Hong Kong and weekend fl ights from Frankfurt to Atlanta and Chicago. GAC Transfer Services and MariFlex www.aerologic.aero 49-03-4204-4430 GAC Transfer Services, a division of Dubai- based third-party logistics provider Gulf Agency Company, and Rotterdam-based to and from Alberta, British Columbia, WEB ship-to-ship transfer services (STS) fi rm Manitoba, and Saskatchewan, Canada. INTTRA MariFlex created an alliance to offer STS www.milanexpress.com 800-231-7303 Act Track and Trace 2.0 is an online for dry and liquid cargo such as crude www.cavalier.ca 800-263-2394 solution to track in-transit container events oil, petroleum products, and liquefi ed gas www.kindersleytransport.com 800-667-8556 provided electronically by carriers on the throughout Europe, Asia, the Arabian Gulf, INTTRA platform. Shippers and freight and the Indian Ocean region. forwarders can search by container, bill www.gac.com 713-533-3200 PRINTING SOLUTIONS of lading, carrier booking number, carrier www.marifl ex.net 713-534-7100 Tharo Systems Inc. name, and date range. Filtered results The PA1200fa front-apply label printer/ facilitate multi-carrier container tracking. Milan Express, Cavalier applicator creates and affi xes labels to www.inttra.com 973-263-5100 Transportation Services, and the leading side of a product moving Kindersley Transport down a conveyor. Labels can range from A.N. Deringer Partnering with Cavalier Transportation three inches by one inch to 4.5 inches by A new automated online tool, Deringer Services, Milan Express offers LTL service eight inches. The PA1200fa works with Dispatch Shipment Tracking, allows between the U.S. Midwest and Southeast Tharo H-Series direct thermal or thermal shippers to track ground freight shipments regions and Ontario and Quebec, Canada. transfer printers with 203 or 300 dpi and request, track, and save freight quotes Milan Express also partnered with print resolutions. from Deringer's carrier network. Kindersley Transport to provide LTL service www.tharo.com 800-878-6833 www.anderinger.com 802-524-8110

February 2010 • Inbound Logistics 57

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner WhitePaperDigest Industry experts amass supply chain management best practices and skill sets, WhitePaperDigest and invest in new research and evaluation tools. Now you can benefit.Inbound Logistics has selected this collection of whitepapers that will give you a jump on important supply chain issues. For more information on any of these whitepapers, visit the Web sites listed below.

TMSi Logistics

TITLE: Are You Ready for a Third-Party Logistics Provider? LENGTH: 3 pages DOWNLOAD: www.tmsilog.com/FileAccess/FileAccess.aspx SUMMARY: Outsourcing your supply chain is a big step. Many companies have built their logistics alongside their business, keeping supply chain management in-house. The right 3PL partner will maintain and strengthen your relationship with your clients and customers, while improving your bottom line. Don’t know the right questions to ask? This TMSi Logistics whitepaper provides the answers.

Saddle Creek Corporation

TITLE: 2009 Secondary Packaging Outsourcing Report LENGTH: 12 pages DOWNLOAD: www.saddlecrk.com/whitepaper/welcome.asp SUMMARY: Increased flexibility and reduced costs are two top reasons why manufacturers are outsourcing their secondary packaging services, according to a new study sponsored by Saddle Creek Corporation and Contract Packaging magazine. Based on an online survey of contract packaging users, the 2009 Secondary Packaging Outsourcing Report explores these benefits, as well as common practices and emerging trends in the outsourcing of secondary packaging.

58 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner Ryder Supply Chain Solutions

TITLE: Optimizing DC Networks for Global Sourcing LENGTH: 9 pages DOWNLOAD: www.ryder.com/lms_outsource.shtml SUMMARY: Flexibility in DC networks is the competitive edge your company needs to be successful in an economy where the global supply chain grows more complex every day. Outsourcing DCs provides companies the flexibility to add new products, markets, sources of goods, and capabilities while keeping their focus on their core business. To learn more about how outsourcing distribution centers offers more flexibility and less risk, download Ryder’s whitepaper.

C.H. Robinson

TITLE: Identifying Opportunities With Your Inbound Transportation LENGTH: 8 pages DOWNLOAD: www.chrobinson.com/AboutUs SUMMARY: With the right processes and visibility, companies of any size can improve the inbound segment of the supply chain. In this whitepaper, C.H. Robinson focuses on how visibility and business processes can drive improved savings and service. The paper discusses common inbound logistics gaps, where to find inbound savings, how to start an inbound program, ways to take a proactive approach to managing an inbound program, and steps to discovering new opportunities in inbound logistics.

SAP

TITLE: Optimal Service-Parts Management LENGTH: 16 pages DOWNLOAD: www.sap.com/solutions/business-suite/scm/brochures/index.epx SUMMARY: By combining best-in-class processes and planning techniques supported by an appropriate IT infrastructure, organizations of all sizes can gain efficiencies and boost the success of their service parts management businesses. In the first of a five-part series, this whitepaper describes how Cat Logistics implements demand planning and leverages its experience to support service-parts logistics needs. It also illustrates how Cat developed best-in-class processes that it can apply across industries.

UPS Supply Chain Solutions

TITLE: Inventory in Motion: A Direct Alternative to Global Fulfillment LENGTH: 9 pages DOWNLOAD: www.ups-scs.com/solutions/whitepapers.html SUMMARY: Logistics visionaries have talked for years about eliminating or at least reducing the role of inventory in modern supply chains. What is appealing in this vision is the reduction in logistics costs and the fulfillment cycle. Download this whitepaper to learn how a direct-to-store or distribution bypass approach to global fulfillment can lead to a leaner supply chain.

Share your whitepaper with IL readers! WhitePaper Digest is designed to bring readers up-to-date information on all aspects of supply chain management. We’re building a database of SCM whitepapers, and you can help. E-mail us with whitepaper recommendations: [email protected]

February 2010 • Inbound Logistics 59

LOGISTICS PLANNER RFP RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner INBOUNDCLASSIFIED

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Same Day Transportation and Distribution Solutions Demand-WAREHOUSING "ÛiÀÊÎx]äääÊÃµÕ>ÀiÊviiÌÊUÊ,>VÊEÊ ÕÊ-ÌÀ>}i ->Ê*>ÀÌÃÊ ÃÌÀLÕÌÊUÊ ÀÃÃÊ VÊ>VÌÞ -iVÕÀi`ÊEÊ ÌÀi`ÊÓ{ÉÇ Not Just Another Delivery Service iÛiÀÞÊEÊ ÕÀiÀ LG>I8;<Xe[@DGIFM< Ý«i`Ìi`ÊÀi} ÌÊ>`} pfli ÃÌÀLÕÌÊEÊ}ÃÌVÃ cf^`jk`ZjJB@CCJ 404.249.9000 or 800.328.6078 Gi\gXi\]fik_\]lkli\%I\hl\jk=I<<è]fidXk`fe vJiÝiVÕÌÛiVÕÀiÀ°VÊÊÊÊÊÜÜÜ°iÝiVÕÌÛiVÕÀiÀ°V ]ifdcf^`jk`Zj\[lZXk`fe\og\ikjfecè\Xk nnn%èYfle[cf^`jk`Zj%Zfd&i]g

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COMING IN MARCH 2010 America’s Emerging NebraskaLogistics Center Inbound Logistics has researched and will report on the beneﬁ ts of considering the Nebraska region when reconﬁ guring your supply chain. If you have facilities in the Midwest you will want to promote them to our 100,000+ business logistics leaders. To participate, email Jim Armstrong at [email protected] or call him at 815-334-9945.

To view a sample Nebraska supplement go to www.inboundlogistics.com/digital/Nebraska07.pdf

60 Inbound Logistics • February 2010

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RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner RESOURCE 02.10 CENTER INBOUND LOGISTICS WORKS FOR YOU!

3PLs n California State University, Long Beach pg. 33 Looking for both face-to-face and online instruction n C.H. Robinson Worldwide pg. 7 by leading industry experts? Enroll at the Center for Trust C.H. Robinson’s tools and talent for the best International Trade and Transportation at California combination of service and price. State University, Long Beach. www.chrobinson.com 800-323-7587 www.uces.csulb.edu/citt 562-985-2872

n CrossGlobe Transport pg. 43 n Elmhurst College pg. 31 CrossGlobe Transport provides fast, efficient, Elmhurst’s Master of Science in Supply Chain trusted transportation services to producers of spe- Management gives you a sound technical founda- cialized products. tion while honing the skills you need to succeed. www.crossglobegroup.com 800-365-9186 www.elmhurst.edu 800-581-4723

n CRST International pg. 19 n Institute of Logistical Management pg. 33 CRST is ready to roll for you – today and for years The Institute of Logistical Management offers down the road. distance learning in many areas of logistics and www.crst.com 800-736-2778 supply chain management. www.logisticseducation.edu 609-747-1515 n Menlo Worldwide Logistics pg. 5 For a specific You can trust Menlo Worldwide Logistics to give n Intermodal Transportation Institute (ITI), response, contact you every advantage by applying proven processes University of Denver pg. 34 these advertisers to solve complex supply chain problems. The ITI Executive Masters Program is an 18-month directly. Please tell www.menloworldwide.com/il 650-378-5200 program with five one-week Denver residencies and them you saw their ad in a travel seminar to an international location. n Ryder pg. 3 Inbound Logistics. www.du.edu/transportation 303-871-4702 Unmatched experience, flexibility, and expertise make Ryder the one to turn to all over the globe. n Lion Technology pg. 9 For general www.ryder.com 888-88-RYDER For more than 25 years, Lion Technology has been questions about the leader in regulatory compliance training. n Spectrum Logistics Cover 3 particular industry www.lion.com/shiphazmat 888-546-6511 Spectrum Logistics’ services deliver the informa- segments, use tion, visibility, and decision support necessary to the form on page 61. n Transportation Intermediaries ensure you remain informed and in control. Association (TIA) pg. 32 www.spectrumlogistics.com 800-745-1225 Advance your transportation logistics career with For faster service, TIA’s practical, targeted, hands-on educational go online: Career Development/Education offerings developed specifically for 3PLs. inboundlogistics.com/rfp n American Public University (APU) pg. 34 www.tianet.org/tiau 703-299-5700 APU offers bachelor’s and master’s degrees in n Whitman School of Management, transportation and logistics management entirely Syracuse University pg. 32 online, designed for busy logistics professionals. Whitman is supply chain – it runs the oldest supply www.apu.apus.edu 877-777-9081 chain management program in the nation. n Arizona State University pg. 32 www.whitman.syr.edu/scm 315-443-3751 Earn your MBA with a supply chain management emphasis, or pursue a professional or graduate cer- Expedited Air/Ground tificate in supply chain management — both pro- n FedEx SmartPost pg. 11 grams are available online. FedEx SmartPost International service to Canada, www.wpcarey.asu.edu/supplychain 480-965-8006 part of the FedEx Crossborder Solutions portfolio, addresses the key challenges of shipping a package n Broad Graduate School of Management, from the United States to Canada. Michigan State University pg. 35 www.fedex.com/us/smartpost/canada 800-GO-FEDEX Get a master’s degree from one of the top-rated supply chain management programs in the country. www.bus.msu.edu/msc/msscm 517-432-6458

62 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner Use our Resource Center and let the information you need find you.

Freight Payment Services Mobile Communications n J.P. Morgan pg. 17 n Sprint Cover 2 J.P. Morgan’s solutions help manage your entire Nextel Direct Connect on Sprint’s Now Network physical supply chain so you can deliver goods, helps keep your entire fleet on schedule and in materials, and a reliable financial performance. touch so you can deliver the goods. www.jpmorgan.com/visit/fpa 703-661-9006 www.sprint.com/nextel 800-NEXTEL-9 Logistics IT Real Estate Logistics/Site Selection n Aankhen Inc. pg. 39 n Joplin Area Chamber of Commerce pg. 47 Aankhen Inc. delivers asset tracking and in-transit In the heart of America — Joplin, Mo. — you’ll find visibility for global supply chains and defense great road, rail, and air access, plus a business com- logistics. munity eager to help you succeed. www.aankhen.com 408-387-0083 www.joplincc.com 417-624-4150

n Magaya Logistics Software Solutions Cover 4 n Netherlands Foreign Magaya’s Supply Chain Solution software covers Investment Agency (NFIA) (Insert 24-25) For a specific the complete logistics process of merchandise The NFIA facilitates North American companies’ response, contact delivery from seller to buyer. direct investments in The Netherlands. these advertisers directly. Please tell www.magaya.com 786-845-9150 www.nfia.com 212-246-1434 them you saw their ad in Inbound Logistics.

INDEX For general Advertiser Page Advertiser Page questions about particular industry Aankhen Inc. 39 Joplin Area Chamber of Commerce 47 segments, use American Public University (APU) 34 Lion Technology 9 the form on page 61.

Arizona State University 32 Magaya Logistics Software Solutions Cover 4 For faster service, AWEA 21 Menlo Worldwide Logistics 5 go online: Broad Graduate School of Management, Netherlands Foreign inboundlogistics.com/rfp Michigan State University 35 Investment Agency (NFIA) (Insert 24-25)

C.H. Robinson Worldwide 7 Ryder 3

California State University, Long Beach 33 Spectrum Logistics Cover 3

CrossGlobe Transport 43 Sprint Cover 2 CRST International 19 Transportation Intermediaries Association (TIA) 32 Elmhurst College 31

FedEx SmartPost 11 University of Denver, Intermodal Transportation Institute 34 Institute of Logistical Management 33 Whitman School of Management, J.P. Morgan 17 Syracuse University 32

Inbound Logistics (ISSN 0888-8493, USPS 703990) is published monthly for approximately 60,000 business professionals who buy, specify, or recommend logistics technology, transportation, and related services, by Thomas Publishing Company LLC, 5 Penn Plaza, NY, NY 10001. José E. Andrade, chairman; Carl T. Holst-Knudsen, president. Periodicals postage paid at New York, NY, and additional mailing offices. All rights reserved. The publisher accepts no responsibility for the validity of claims of any products or services described. No part of this publication may be reproduced or transmitted in any form or by any electronic means, or stored in any information retrieval system, without permission from the publisher. POSTMASTER SEND ADDRESS CHANGES TO: Inbound Logistics, 5 Penn Plaza, New York, NY 10001

February 2010 • Inbound Logistics 63

LOGISTICS PLANNER RFP RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner THE SUPPLY CHAIN IN BRIEF What’s up? I’m still on the LAST ground. MILE I'm Don't blinded by touch me! the light!

I’m Russian to Togo with It’s some China. getting hot in here!

Uncommon Sense

f shipments could talk, what might they say? The technology is also multi-modal, so FedEx This stretch of the imagination is a little less customers can monitor conditions in the air Ielastic thanks to FedEx’s new SenseAware and on the ground, for single shipments or solution. The sensor information-sharing palletized cargo. platform combines a GPS device and a Web- The solution was beta-tested with input from based portal to collect and disseminate vital healthcare and life science industry customers statistics about freight in transit. who demand better visibility to critical Shippers and consignees who need sensitive information about high-value and time- and and intuitive information about products temperature-sensitive shipments. But FedEx in the supply chain can use the SenseAware expects the solution will prove beneficial to system to track temperature readings, identify shippers across different verticals. a shipment’s exact location, and receive Getting to know your shipment a little bit tampering or exposure to light alerts. better just got a whole lot easier. ■

64 Inbound Logistics • February 2010

LOGISTICS PLANNER RFP Multimodal Transportation t Consolidation / Deconsolidation Warehousing & Distribution t Inventory Management t Import-Export Services

SPECTRUM LOGISTICS provides a full array of logistics services to meet your supply chain needs. Whether your needs involve a simple move across town, an oversized project that requires special permits and planning, or a full scale supply chain solution that spans international borders, requires multiple transport modes, and entails warehousing & inventory management, you can rely on the experienced professionals at Spectrum Logistics. In addition to the various services and resources employed to effectively handle and move your goods, Spectrum provides you with the information, visibility, and decision support necessary to ensure you remain informed and in control. SPECTRUM LOGISTICS – LEVERAGING KNOWLEDGE AND RESOURCES.

direct: 904.855.4314 - toll free: 800.745.1225 - www.spectrumlogistics.us

RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/planner Magaya Magaya Magaya Magaya Supply Chain Solution

Let stress soar up and away when you have Magaya logistics software working for you

www.magaya.com [email protected] Logistics Software Solutions

FREE EXPERT SOLUTIONS LOGISTICS PLANNER RFP www.inboundlogistics.com/planner