PLUG IN & POWER UP:

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

Plottingg Rail’s Revival Navigating Maritime Trade

ALSO: SITE SELECTION What Acquiring Minds Need to Know INTRODUCING THE ALL-NEW 2008 DODGE RAM 4500 & 5500 CHASSIS CABS. YourYouru businessbusiiness is aaboutbboutut ttoo shshine.iine.e TThankshah nkks too a 66.7L.77L CCuCumminsummmiins® TurboTuru bbo DieselDiei ssel withwiwithh anan integratediinntteegrg attedd eexhaustxhhausts brakebrb akke andand 610616 0 lb-ftlbb-fft ofo torquetorquq e thatththatat comescomo ess withwith a 5-year/100,000-mile5-5 yey arar/1/1000,000000-mmile CumminsCuCummm ini s DieselDiiesesele EngineEngngini e LimitedLiimimitet d Warranty,WWarrr aanty, RaRamm 445450050000 aandndd 55500500 ChassisChhassiis CCaCabsabsb mmakeakke otherootheh r trucksttrrucks ppaleale in ccomparison.oompariison.n WithWiti h ccocommercialommerciialal ggrgradeadde peperformanceerfformaancn e anandd eenengineeringgiineeriing ttoo pproviderovide mmaximizedaaxiimiizedd uuptime,ptp iime,e iitt shshedshedds lilightight on a wholewhholle newnew waywaya toto wwowork.rk. ForFor moremmoree information,infformaatitionn, ggo ttoo dodge.com/chassis_cabddoddgge.e coom/m/chhassiis_ccaab oro ccallall 80800-4ADODGE.00-44AADODODGGE.E

The Cummins diesel engine is protected byby a separate Diesel Engine Limited Warranty covering the engine for 5 years or 100,000 miles, whichever comes first. See youryour DodgeDodge dealer for completecomplete details. Chrysler Financial is a business unit of DaimlerChrysler Financial Services Americas LLC. THE MAGAZINE FOR DEMAND DRIVEN LOGISTICS

LOGISTICS AT SEA LEVEL October 2007 • Vol. 27 • No. 10 page 42 INFO INPRACTICE 92 WEB_CITE CITY  READER PROFILE Greg Schwartz: Smooth Operator 96 CALENDAR Greg Schwartz, vice president, supply chain management at Jamba 98 CLASSIFIED Juice, gives supply chain procurement and sourcing a whole new fl avor. 100 RESOURCE CENTER  DC SOLUTIONS Blue Bell Creameries Licks Storage Shortage Hot demand for its 50 different ice cream fl avors compelled Blue Bell Creameries to look up to create more space in its refrigerated DC. A new INBRIEF automated storage retrieval system increases capacity and effi ciency and keeps customers wanting more. 12 10 TIPS Reducing expedited freight costs. LIT TOOLKIT 19 TRENDS  A New York Minute: Kids, Ships, and Creating Calm from Chaos Dolls…U.S. ports profi t from new A new warehouse management system green machine…The struggle for enables industrial hose distributor true supply chain collaboration. Red-L to create a more effi cient and 25 GLOBAL LOGISTICS employee-friendly warehouse. Global green ship mandate gets green light...Dubai plans a maritime logistics university… 3PLs enhance U.S/Mexico INDEPTH offerings…Tibet builds  new Qinghai-Tibet Railway Logistics at Sea Level logistics center. Ocean, rail, and intermodal leaders 84 TECH UPDATE discuss why capacity concerns, infrastructure inadequacies, and 89 NEW SERVICES a paucity of policy keep them up 104 THE LAST MILE: at night. RAISING CHURCHILL’S LAST RIDE  Rockin’ Rail For an industry with grassroots in the 19th century, and that hit its heyday in the mid-20th century, U.S. railroads are ready to rock and roll. DC SOLUTIONS page 77

2 Inbound Logistics • October 2007  
 



"
 
#
"!
"
 "!
 !!
 "
 
%'
 "
!
"
!'
"
"
'#
""
"
"
#
#
 '

! $

#
#
& "!
)

%"

#
)

%'
 "
"
#!#"


"
%
#"'

#"
"
""

3- 
4'
!



 



 
  


 

 


 

(

 ""'

!!
!

 "

!# !
'#
#!" !*
!"!"



'#



(
"
"
 "
!"

#
$" '
 '
!"!
%"
#
#!" '




" !"
"!

(
$
"
%"

"'

" 
!"!
#
 #!"!

 
(
&"'

  "
#!
%"
 
! $
" !
 !!
"
#" '

(
%'*!
# "
 $
!# !
'#
!"
%
 $

"

"*!

#!


'#

%'
 $
"

$!"
%%%%'"!11 THE MAGAZINE FOR DEMAND DRIVEN LOGISTICS

ROCKIN’ RAIL October 2007 • Vol. 27 • No. 10 page 52 INSIGHT INDEPTH 6 CHECKING IN Legislation heats up in Washington,  Drum Beaters pitting railroads and government After making slow progress against the traditional 55-gallon drum for interests against each other. Which side of the track are you on? moving small-volume liquid shipments, intermediate bulk containers (IBCs) and intermodal tank containers (ISO tanks) are starting to accelerate 10 DIALOG their gains. Reader input and questions on blogs, Latin America, and warehouse safety.  WMS Directory: Plug In and Power Up 16 KNOWLEDGE BASE: Whether your demands are vertical-specifi c, dictated by existing ERP AIR CARGO systems, or based on cost and complexity, WMS vendors are saturating the Sponsored by Mid-America market with a wide array of solutions. Search this directory to fi nd a WMS St. Louis Airport. solution that can recharge your supply chain. 30 ECODEV Understanding freight cost  Setting Sites on Tomorrow modeling can help economic developers land big business. A new DC can open up a company’s supply chain capabilities, or expose it to considerable risks. Third-party intermediaries and economic development 32 IT MATTERS interests are helping businesses look beyond the basics to fi nd sites fi t for Emerging Web services promise to revolutionize the way shippers today and tomorrow. and LSPs integrate. 34 3PL LINE Finding the right 3PL can be fraught with pitfalls. 36 RISKS & REWARDS Diversifying air cargo handling services requires a new protocol for obtaining insurance coverage. DRUM 38 VIEWPOINT BEATERS Softening truck capacity and page 60 lessening demand have the shipping empire primed to strike back. But can it succeed?

4 Inbound Logistics • October 2007

CHECKINGIN

Vol. 27, No. 10 October 2007 THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS www.inboundlogistics.com STAFF

PUBLISHER Keith G. Biondo by Keith Biondo | Publisher [email protected] EDITOR Felecia J. Stratton [email protected] SENIOR ASSOCIATE EDITOR Joseph O’Reilly Railroad RXR? CONTRIBUTING EDITORS Merrill Douglas John Edwards he nation is at a crossroads on how to handle the rail industry in the Lisa Harrington Amanda Loudin coming decades. While much attention has been paid to the state of the Amy Roach Partridge T nation’s highways in light of the I-35 bridge collapse, a new Association of Deborah Ruriani American Railroads study indicates that U.S. railroads need an overhaul, too. Lisa Terry The National Rail Freight Infrastructure Capacity and Investment study (www. CREATIVE DIRECTOR Michael Murphy [email protected] aar.org/newsroom/Capacity_Investment_study.asp) lays out in detail the need for PRODUCTION/DESIGN ASSISTANT Shawn Kelloway major investment – to the tune of $135 billion over the next 30 years – to aug- [email protected] ment freight capacity to meet an expected doubling of rail freight demand. PUBLICATION MANAGER Sonia Casiano Investments would go toward constructing new track, signals, bridges, tun- [email protected] nels and terminals. CIRCULATION DIRECTOR Carolyn Smolin One proposed remedy is the bipartisan Freight Rail Infrastructure Capacity Expansion Act, introduced on Capitol Hill in July 2006 by Trent Lott (R-Miss.) SALES OFFICES and Kent Conrad (D-ND), and still bouncing around Congress. The bill NORTHEAST: Keith Biondo (212) 629-1560 • FAX: (212) 629-1565 aims to legislate a 25-percent tax credit for any transport business – shippers [email protected]

included – investing in new rail track, intermodal facilities, rail yards, locomo- WEST/MIDWEST/SOUTHWEST: Harold L. Leddy tives, or other rail infrastructure expansion projects. (847) 446-8764 • FAX: (847) 446-7985 On the other side of the “how do we handle the railroads issue” is Rep. [email protected] James Oberstar (D-Minn.), chairman of the House Transportation and Marshall Leddy (763) 416-1980 • FAX: (763) 201-4010 Infrastructure Committee. Oberstar recently proposed legislation that would [email protected] re-regulate the railroad industry by introducing price controls and controlling MIDWEST/ECONOMIC DEVELOPMENT: Jim Armstrong access to shared networks to reduce costs for freight shippers – an appealing (815) 334-9945 • FAX: (815) 334-1920 proposition for some shippers with zero alternatives. [email protected] These converging and confl icting initiatives place rail shippers, specifi cally SOUTHEAST: Gordon H. Harper smaller players and captive shippers, between the rails. The promise of reduced (404) 350-0057 • FAX: (404) 355-2036 [email protected] freight costs in a market historically monopolized by a small number of large railroads spells welcome relief for some. But would reverting to pre-Staggers MOBILE, AL: Peter Muller (251) 343-9308 • FAX: (251) 343-9308 Act regulations stifl e or stimulate private sector investment? The AAR argues [email protected]

that such legislation would cost the industry $5 billion in lost revenue annu- SPECIAL ACCOUNTS: Joseph T. Murphy Jr. ally and impede efforts to increase capacity. And we all know how regulation (203) 254-9595 • FAX: (203) 259-4447 fared in the past. [email protected] Ultimately the railroad’s complacency over the past three decades since SALES MANAGER: Rachael Sprinz (212) 629-1560 • FAX: (212) 629-1565 deregulation is partly to blame for this current scenario. “Although the [email protected] railroads have been increasing their capital expenditures, most of that capital FREE SUBSCRIPTIONS is going to sustain existing capacity rather than toward expansion,” reports a www.inboundlogistics.com/free January 2007 position paper by the Railroad-Shipper Transportation Advisory Council (www.stb.dot.gov/stb/rail/railshipper_council.html). Inbound Logistics welcomes comments and submissions. Contact us at 5 Penn Plaza, NY, NY 10001, (212) 629-1560, That both of these bills are garnering bipartisan support in Congress has Fax (212) 629-1565, e-mail: [email protected]. laid down a gauntlet for the railroad industry. My view is that these initiatives For advertising, reprint, or subscription information, call (212) 629-1560, or e-mail [email protected]. Inbound are going nowhere while Bush is president. I think in 2008-09 we will be at an Logistics is distributed without cost to those qualifi ed in North America. Interested readers must complete and return the intriguing crossroads: to price-control railroads, give them tax credits, or both. qualifi cation card published in this issue, or may subscribe Let’s see who controls Congress and the executive branch next time around. online at www.inboundlogistics.com/free. Subscription price to others: in North America: $95 per year. Foreign subscriptions: On which side of the track do your loyalties fall? Let us know. Email: $129. Single copy price: No. Amer. $10, foreign $12, back issues [email protected] ■ $15. Periodicals postage paid at New York, NY, and additional mailing offi ces.

6 Inbound Logistics • October 2007 


 
   


!"!
#!!!!
"
"

""$
$"
# "
$" '
 !
)%!!
!!"
"

"(
%  
 #"$"'
 
 "
" !
"  !
"'
#"!
$
"!
&(
  
'
!' (
'#
" 
!#'


%
'"
$!"'

'#
!"!
 #
"
% 
!
'#

"# 
$


"
%"
"
# '
"
!
"
"
 #"
%'!
"!
"
"
"
"
!
#'

!"
"$'
!
!!
"!
#!"
"
%'
" 
#"!
"  !
"'

"


'#

  *

  
  
 

       

  

"
"&'


 
!" 

"

""

  
(

"
#"

! $
!
 
"
  "&

"
! "$
% !

) " 



"!
! $ Suppose you could find the ideal logistics partner th hatthat could get your products to market faster by a full day while reducing your costs?

You just did.

At Hyperlogistics Group, it’s all about creating competitive advantages for our clients. That’s why Hyperlogistics has joined the Intermodal Campus at Rickenbacker Global Logistics Park, one of the nation’s most advanced logistics hubs. Hyperlogistics’ 407,000 square foot import warehouse is strategically located adjacent to the new Norfolk 1.800.533.0716 Southern Intermodal Terminal, within FTZ 138. Designed and built by Duke hyperlog.com Realty, our new facility opens in early 2008. It’s just the kind of hyper- innovative approach today’s premier manufacturing, retailing and distribution organizations have come to expect from Hyperlogistics Group.

Rickenbacker Global Logistics Park, a joint venture of the Columbus Regional Airport Authority, Duke Realty and Capital Square Ltd., offers the capacity to adapt to your ever-changing market: • Landed containers ready for distribution within 72 hours • Roadways that accommodate overweight containers • Reduced import-related fees and duties 614.932.6000 • A one-day drive of 58% of the U.S. population dukerealty.com DIALOG LETTERS TO THE EDITOR

a country that everyone wants to be Mexico, page 26). We will also be certain Readers Log in on Blog’n in. But understanding it from a supply to include more information on the Every month I look forward to chain management and logistics angle LALC in our next Latin America supple- receiving Inbound Logistics. Many of remains diffi cult. ment coming in June 2008. the articles have helped broaden my — The Logbizindia Team, Mumbai, India understanding of the shipping indus- try. However, my job primarily involves Transportation ‘Rates’ outbound shipping. I was wondering L.A. Confi dential, No More Your articles are insightful, educa- if you knew of any monthlies or blogs I enjoyed the feature about Latin tional, and fun to read. My passion is that focus on that? America very much (Catching Up with transportation and there’s nothing bet- — Paul Cicchinelli, operations manager, Latin American Logistics, June 2007). ter than reading your articles, digesting The Tub Connection Most of us are guilty of thinking only them, then walking away feeling more horizontally about European and Asian well-rounded about the industry. Editor replies: For a list of logistics blogs, activities. Too few take the time to — Peter Brown, Northeast regional just navigate to inboundlogistics.com and think vertically and consider possibili- sales manager, PrePass type “blog” in the search box. You’ll see ties in Central and South America. We Amy Partridge’s great article featuring often don’t even think much about the more than 20 blogs spanning the logis- NAFTA realm. Safety in Numbers tics cybersphere. Also bear in mind that I was surprised, however, to find I wish to compliment Inbound Logistics Inbound Logistics articles cover all facets no mention of the Latin America on the June article, Warehouse Safety: It’s of the supply chain, from inbound to Logistics Center – www.lalc.org. This No Accident, by John Edwards. outbound and all points in between. After research organization, affi liated with One of the ways we combat ware- all, everyone’s inbound is someone else’s Georgetown University, is a primary house safety in the Lehigh Valley is outbound and driving effi ciencies at that source of up-to-date perspectives through a partnership I started between point of convergence is benefi cial for all on what’s happening south – and far OSHA, the Lehigh Career & Technical parties involved. south – of the border. Institute, Indiana University, Pa., and — Art Van Bodegraven, partner, local distribution centers. We meet We read with interest your informal The Progress Group every other month and advise each listing of logistics blogs (Logistics in the company on safety issues. Blogosphere, Feb. 2007). While inter- Editor replies: Thank you for pointing Walgreen’s DC was the fi rst company esting, we would like to draw your out to our readers a wonderful resource: to sign the partnership; today nine attention to logbizindia.blogspot.com, The Latin American Logistics Center, companies have joined. I believe there which we write. This blog covers sup- www.lalc.org. For inquiring minds, we is only one other partnership like this ply chain management and logistics also regularly feature articles and in the United States. in India – news, features, analysis, and global trends that highlight some of — David Rubright, data. We believe it is one of the bet- the rumblings south of the border (see workforce education coordinator, ter blogs on SCM and logistics in India, Logistics Providers Sharpen Focus on Lehigh Career & Technical Institute

10 Inbound Logistics • October 2007 Yeah, we go there. No matter where you need to ship the big stuff, no one goes farther than FedEx Express Freight. When you have an urgent need, we deliver to more places than ever backed by a money-back guarantee.* Whether it’s 1, 2 or 3 business days, you can always count on us to go the distance. Or if you need same-day or international shipping, we do that too. So when you’re shipping the big stuff to places like Last Chance, FedEx should be first on your list. fedex.com/goingfarther

29643 *For details on the FedEx Money-Back Guarantee, see Service Info at fedex.com. © 2007 FedEx. All rights reserved. 10TIPS STEP-BY-STEP SOLUTIONS

by Deborah Catalano Ruriani

Managing Expedited Freight Costs

oo much expedited freight can of changes regarding transportation improve forecasting, we can cut trans- turn profi table sales into losses. data, and meet with IT to make sure portation expenses in half.” TWhile most shippers expect to they understand the problem and take use some expedited service to meet cus- appropriate measures. Polish the crystal ball. If you had tomer requirements, the ultimate goal 8100-percent accuracy in your sales is to reduce that need. Thomas Phelps, Reduce fulfillment time. How forecasting, your expedited trans- president, Alloquor Consulting, Los 4 quickly can your warehouse get a portation costs might drop to zero. Angeles, Calif., offers these tips for man- fresh order out the door? Can the Although you may not have a crys- aging expedited freight costs. process be improved? If you cut order- tal ball that will predict sales demand to-ship cycle time, you can reduce with 100-percent accuracy, you can Determine why you need to expedite. expedited freight costs. strive to get as close as possible and 1 Take a good look internally. Is the reduce the need for expedited freight. use of some expedited freight due to Establish metrics. As the say- poor planning? If it is, work on improv- 5 ing goes, “what gets measured gets Get help. Some managers can’t pull ing the root cause of the problem. managed.” So start measuring to 9 themselves far enough out of day- start managing more effectively. If to-day activities to really focus on Challenge the status quo. Sales you’ve already established some met- strategic issues, such as finding the 2 and logistics management need rics, make sure they’re the right ones. true root causes of the need for expe- to work together. If sales insists If they’re not, make changes. dited transportation. Some managers that the customer expects immediate have done the work, but their sugges- delivery, how about asking the cus- Hire good people. Yes, this is obvi- tions have fallen on deaf ears. Consider tomer to work with you on reducing 6 ous. But it’s surprising how often hiring a consultant to conduct an inde- expedited shipments? Maybe the cus- this common-sense adage is not pendent analysis and provide some tomer could provide the order earlier, followed. Hire experienced and knowl- broader perspective on solutions that or would agree to non-expedited deliv- edgeable people, even if you have to will work. eries when acceptable. spend more to get them. Good employ- ees will nearly always save you more Get the proper systems support. Make sure you have good data. money than their additional salary. 10 Proper systems support will 3 Good analysis starts with good facilitate effi cient processes and data. If the data is not easily Share the metrics. Make sure manage workfl ow. If your current system attainable, or is full of inaccuracies, 7 senior management understands isn’t up to the task, start documenting then analyzing shipments to deter- how much money is spent on expe- the gaps. Present your fi ndings to your mine ways to reduce costs becomes dited transportation. Approach them IT staff and see if they can provide the an impossible task. Document a list with solutions. For example, “if we functions you need. ■

12 Inbound Logistics • October 2007


  




 
  
  

(0$#
.%
/+ 7(-&
'(#$
-#
1$$*
5(2'
2'$
-2$0-$2
$2
2'$

/2./.--$"2
 0#
-#
$ 1(+7
""$11
2'$
-2$0-$2
2
,.!(+$
!0. #! -#
1/$$#1
5'$-
7.30$
.32
.%
2'$
.%%("$
.-
2'$
0. #
5 7
%0.,
'.21/.21



$+(4$01
,.!(+$
!0. #! -#
1/$$#1
(-
,.0$
2' -

, ).0

, 0*$21
-#
,.0$
"(2($1
5.0+#5(#$
2' -
-7
.2'$0

" 00($0
$2
1
+.! +

/2./.--$"2
 0#
%.0
.-+7 

$-#
-#
0$"$(4$
$, (+
#.5-+. #
+ 0&$
 22 "',$-21
-#
""$11
".0/.0 2$
1712$,1
 2
,.!(+$
!0. #! -#
1/$$#1 5(2'
7$ 0
1$04("$
&0$$,$-2
.-
 2 .--$"2
/+ -1

.0
'(&'$0 

- !+$1
1$"30$
+ /2./
".--$"2(.-1
2.

0. #! -#.--$"2
-#

-$25.0*1



 12
-#
$ 17
1$2
3/

.0
,.0$
(-%.0, 2(.-
4(1(2
5555(0$+$11 22".,+ /2./".--$"2
.0
&.
2.
7.30
-$ 0$12

12.0$

  
&',
."$$
"&
$$
*+
 
 
,!*
'&","'&+
&
*+,*","'&+
(($0

'&,*,
&
*,
($&
*'!-*
'*
,"$+
-+*"*
%-+,
$".
&
!.

%"$"&
*++
/",!"&
  +
'/&
&,/'*#
'.* 
*
(
,'

,".,"'&

(($"+
)-"(%&,
(*"
&
."$"$",0
%0
.*0
0
%*#,
&
%0
&',

."$$
*'%
"&(&&,
*,"$*+
 
  

'&
"
&$$
"&
,!
"*+,

0+
,!* ,*

'%
 &,+
"%('+
","'&$
+
  
 
$-$,
+
'&
(*"
'
-&,".,
)-"(%&,
*,"&
%"$
+0+,%+
%0
*)-"*
","'&$
!*/*
&'*
+' ,/*
,'
++
*."
(*'."
0
 
'"$",0
1
 
&'/$ 
&,-*+
$$
*" !,+
*+*.
 
&
,!
 
$' '
*
,*%*#+
'
 
&'/$ 
&,-*+
&'*
 
 "$",
'%(&"+ READER PROFILE by Merrill Douglas

Smooth Operator

n the smoothie business, hot weather is states, Jamba is constantly rolling into new a blessing; as temperatures rise, so does locations. Its rapid expansion gives Schwartz I demand. But when the sun blazes too long and his team plenty of opportunities to fi ne- over peach orchards or berry fi elds, it may ruin tune supply chain operations. the crops. Then, bringing in the fruit needed The main challenge is fi nding the right prod- to whip up a perfect healthy drink becomes a uct and securing the most effective distribution complicated puzzle. channels for the growing retail network. “The sec- That’s why Greg Schwartz, vice president, ond critical challenge is dealing with the weather, supply chain management at Jamba Juice, trying to remain fl exible, and having strong con- Emeryville, Calif., clicks the weather report on tingency plans in place,” Schwartz says. the Web every morning right after the fi nan- As the son and grandson of grocers, Schwartz cial news sites. has worked in the food business throughout his Schwartz is responsible for sourcing all food life. But his penchant for supply chain manage- and non-food products for Jamba Juice, and ment came as a surprise. “I grew up wanting to arranging to move these products to the com- work in marketing for a Fortune 500 food com- pany’s retail outlets. With 660 stores in 22 pany,” he says. A college internship with Kraft Foods – pull- ing data to help the sourcing group negotiate JUICY DETAILS contracts and choose suppliers – whet his taste NAME: Greg Schwartz for operations. Although he went on to earn an MBA in marketing, when he entered the work- TITLE: Vice president, supply chain management, since 2007 force, he crossed over to the supply side. One unusual challenge Schwartz encoun- COMPANY: Jamba Juice, Emeryville, Calif. tered on his career path involved working with PREVIOUS Buyer, senior buyer, purchasing Oscar Meyer/Kraft Lunchables, and similar EXPERIENCE: manager, division purchasing lunch products sold under the Safeway label, manager, Kraft Foods; director which bring together numerous components and vice president, strategic in a single package. sourcing, Safeway; vice “Lunchables might require 10 different suppli- president, global procurement, Wal-Mart. ers shipping their product to one location,” he says. “That location reassembles those compo- EDUCATION: University of Illinois, nents into a fi nal product,” which might include Champaign – BS, liberal arts an assortment such as crackers, cheese, turkey, a and sciences, economics, 1987; MBA marketing, 1989. sauce packet, a drink, and a candy bar packed into a tray covered with fi lm and an exterior carton. Getting all those products to converge in the right place at just the right time isn’t easy. “Having the appropriate systems, collaboration with partners, timely forecasts, and effective

14 Inbound Logistics • October 2007 scheduling are key,” Schwartz says. 5:30 a.m. He developed and received The Big Questions Schwartz is currently exploring a product order, and whipped up his ways to improve Jamba Juice’s processes, share of drinks. What do you do when you’re and beef up its technology on both the “I did lots of mixing, scooping, and not at work? sourcing and the distribution sides. shaking, all the way to providing the I spend a lot of time with my two kids. “I am especially interested in portals finished product to eager consum- I coach their soccer, baseball, softball, that can link the entire supply chain – ers,” he says. The experience gave him and basketball teams, and I drive them from the supplier’s supplier’s supplier to several ideas for improving the distri- to practices and tournaments all over Northern California. It almost makes the distributors to the stores,” he says. bution process. the logistics at Jamba Juice look easy. Besides examining opportunities to It also gave him a healthy respect for make improvements at the back end, the experts on the front line who whip Ideal dinner companions? Schwartz has taken a close-up look at up smoothies with impressive speed. My grandfather and my father. My how Jamba Juice works its magic on the “I had a hard time keeping up with grandfather started selling fruits and vegetables on a pushcart in Peoria, front end. In August, he spent several them at fi rst,” he says. “That’s when I Ill., then opened a corner market. days at a Jamba Juice store, starting at found myself washing dishes.” ■ The store was on the bottom fl oor, and they lived upstairs. My father earned his college degree and grew the business into a multi-store opera- tion, which is where I started to get MagicLogic’s interested in retail, specifi cally food. Their vision, dedication, and drive for Cube-IQ: success allowed us to have a good life growing up. the Ultimate What’s in your briefcase? Work, an empty slot for my laptop computer so I can take it home, some in Load Planning aspirin, and a reloadable Jamba Juice gift card. software. If you didn’t work in supply chain management, what would be your dream job? I would like to be an economics or mathematics teacher and coach, developing and improving the lives of kids. For information and to download a free trial version: www.magiclogic.com Favorite Jamba smoothie? www.magiclogic.com MagicLogic Optimization Inc. Strawberry Nirvana, extra thick, with Email: [email protected] the new Happy Heart boost. +1-206-274-6248 (GMT-8, International) 1-888-274-8616 (PST, North America)

October 2007 • Inbound Logistics 15 LOGISTICS knowledgebase © BY TIM CANTWELL Director, MidAmerica St. Louis Airport (618) 566-5240 • director@fl ymidamerica.com

A New and Different Kind Of International Air Cargo Facility

t MidAmerica St. Louis Airport, we are attuned to house/distribution and logistics center over the past 10 years. your international air cargo needs. We’re different; Minutes away are multimodal, truck-to-rail distribution centers. So Awe know what you want. is the Tri-City Regional Port District, which is home to Lock & Dam 27, ■ EFFICIENT AIR CARGO TRANSFER. You want an effi cient air and is the northernmost, ice-free lock & dam on the Mississippi River. cargo transfer system to get your goods from the aircraft to ground ■ UNCONGESTED AIR AND GROUND. We believe you want transportation as quickly as possible. We provide you with a one- to do business in an uncongested area in order to save time in the stop shop for air cargo. Our air-cargo facility wasn’t converted from a air and increase effi ciencies of distribution once your cargo is on the warehouse or hangar for use as air cargo. It was specifi cally designed ground. The airspace and ground transportation systems are not con- and built as an effi cient, 21st-century air cargo complex. We provide gested like similar facilities in other major American cities. Highway fast crossdocking for unloading aircraft directly to ground transporta- traffi c fl ows have improved due in part to more than $1 billion in tion, with easy access to nearby highway, rail, and barge transporta- highway transportation investments over the past fi ve years. No air tion connections. traffi c backups, no ground transportation snarls. ■ LOW OPERATIONAL COSTS. You want a facility that offers ■ FOREIGN TRADE ZONE. A major advantage of MidAmerica the lowest costs and helps maximize the profi tability of your opera- St. Louis Airport for international air cargo enterprises is our designa- tion. MidAmerica is a low-cost airport. Economic development incen- tion as a Foreign Trade Zone. You and your clients will directly benefi t tives are in place and available from the State of Illinois, as well as from the Foreign Trade Zone status in a number of ways, including: local and regional governments. The St. Louis region’s wages are rela- • Duty-free re-export of merchandise. tively low and productivity is higher than comparable American cities. • Duties to be paid only after merchandise leaves the Zone. ■ NEW AND MODERN WAREHOUSING. You want modern • No duty or reduced duty on scrap. warehousing facilities, so we give it to you. MidAmerica St. Louis • Waste or yield loss duty generally is not incurred. Airport recently opened a new, $6.3-million, 50,000-square-foot • New U.S. Customs building on ramp cargo facility to serve your needs. The facility is fresh, technology- • Designated Port 4581 ready, provides 10 air access doors, 37 truck docks, and is located on • 50,000 sq. ft. Air Cargo warehouse the airport apron. • Lower duties on foreign content applied to merchandise ■ ACCESS. We know that you want access to major U.S. markets manufactured in the FTZ, and other advantages. for distribution of your clients’ goods and commodities. Our loca- It’s like having a duty-free zone in the middle of the United States. tion in the heart of the Midwest provides fast and effi cient access In addition, on-site customs benefi ts all international air cargo compa- to a region of America that currently is underserved by international nies by increasing effi ciency of international air cargo transportation air cargo. MidAmerica St. Louis Airport is located in the Illinois por- ■ WORLD-CLASS AIRPORT. While I said we are different than tion of the St. Louis region, and is less than 25 miles from downtown what you may be accustomed to, we are similar in many ways to St. Louis. We are located within one-day truck service of 92,749,367 other world-class cargo airports: American consumers – almost one-third of the U.S. population. Major • 10,000-ft. and 8,000-ft. parallel runways. cities in that 500-mile radius include: Chicago; Kansas City; Memphis; • Unconstrained ATC/airspace environment. Indianapolis; Columbus; Cleveland, and Detroit. • Dual CAT I ILS with simultaneous instrument approaches. ■ CONNECTIONS. At MidAmerica St. Louis Airport, we give you • No nighttime or noise restrictions. immediate access to multimodal distribution centers unlike anywhere • We can accommodate the largest cargo aircraft in the world. else in the Heartland of America. On the ground, you will have access The real difference between success and failure in any business is to four of America’s major north-south and east-west interstate high- the attitude of the people you work with. This airport, MidAmerica, ways: I-70, I-55, I-64, and I-44. That is the reason major companies wants to be your international air cargo partner; to work with you to such as Dial Corp., Procter & Gamble, Kimberly Clark, Ford Motors, make your business a success. Hersheys, Anheuser-Busch and many other international companies That’s why we’re different. That’s why your choice should chose nearby Gateway Commerce Center for their Midwest ware- be MidAmerica St. Louis Airport.

16 Inbound Logistics • October 2007
         

                             

   

)*)'**+!( $! $(" !" #$!%&'$ NO TWO SUPPLY CHAINS ARE ALIKE. THAT’S WHY WE APPROACH THEM ALL THE SAME WAY.

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

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

1-800 AVERITT www.averittexpress.com

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

THINK RED INSTEAD TRENDS NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS by Joseph O’Reilly

A New York Minute: Kids, Ships, and Dolls hat a 40-foot container can fi t 25,000 Barbie dolls may not be all that impressive unless Tyou are a load planner or entertaining a group of 10-year-olds. Putting a new spin on career development, a consortium of public/private interests in New York City is fronting a program to introduce area youth to the Brooklyn waterfront and the world of maritime logistics. And Barbie dolls are a good place to start. Manhattan-based Working Harbor Committee (WHC) programs and tours for New York City youth in 2005. Ocean took youth groups from all fi ve New York boroughs on a carrier Maersk Line became a partner of the program in 2006 “Special Youth Hidden Harbor Tour” in mid-August to edu- and The Maritime Society of the City of New York is also a sup- cate children about the waterfront and its impact on the local porter. The tours are developed individually based on age, with economy, as well as to tease their interest in the types of programs for both elementary and high school students. employment opportunities available in the maritime ship- Meg Black, program director of the WHC, often uses a ping industry. crane arcade game to explain the container loading and “We want everyone to know about the benefi ts of the port – unloading process to children. Before each group takes the what it means and how important it is,” says Lucy Ambrosino Harbor Tour, Black conducts a workshop to prepare the stu- of The Port Authority of New York and New Jersey, a guest dents for the trip. Children assemble Maersk Lego sets, then speaker on the August 17 tour. Ambrosino highlighted the discuss what an ocean carrier is and what role it plays in driv- importance of staying in school and learning about the dif- ing the U.S. economy. ferent types of maritime jobs. A consortium of public/private interests in New York City is The WHC started in 2002, and thanks to a partnership steering a unique educational experience that teaches area youth with tour operator Circle Line 42, began offering educational about the maritime logistics industry.

October 2007 • Inbound Logistics 19 TRENDS NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS ‹ CONTINUED FROM PAGE 19

Betsy Haggerty, a WHC board mem- York Container Terminal and the With 239,000 jobs available in the ber who joined Ambrosino to narrate WHC mentors students about in- New York/New Jersey maritime indus- the tour, pointed out landmarks such house internships while also offering try, people with all levels of education as the World Trade Center site, and a resource for individuals to e-mail can fi nd employment. “The maritime asked children if they could spot ves- maritime employees with industry industry needs employees because of its sels that were on their checklist. She questions. The program also provides growth,” she adds. also explained to the group how a tug- interested students with a list of trade Students are showing signs they are boat is able to push multiple barges and schools, colleges, and scholarships equally receptive to the WHC’s mis- how to tell if a barge is carrying fuel or available in North America to help sion. On the tour, Ambrosino asked: not. In no time, children were scream- them get started in the industry. “Does anybody here like chocolate? ing and shouting in accomplishment “It’s extremely important to give Who drinks orange juice in the morn- as they located and identifi ed tugboats, youth options in life,” says Black. ing? Who has a cell phone? How do water taxis, and other vessels. “Many of them are not aware of what you think it gets here?” The children High School groups tour the New is out there.” shouted back, “China!” — Mark Rowan

U.S. Ports to Profi t From New Green Machine overnment and private sector efforts to green the supply chain and create a more effi cient environment for moving Gfreight have been bolstered by a recent project spearheaded by the Environmental Protection Agency (EPA). Plans to develop and test a new EPA-patented hydraulic hybrid technology on large equipment used to move products from ships to trucks (and currently utilized by some UPS vehicles) are moving full steam ahead at U.S. ports. Key partners in the project include The Port Authority of New York and New Jersey, A.P.M. Terminals, Kalmar Industries, Parker Hannifi n Corporation, and the Port of Rotterdam – with whom EPA will share project information. These heavy-duty diesel machines, called yard hos- tlers, contribute to air pollution generated in ports throughout the world. The hybrid vehicles feature a unique hydraulic hybrid power train that can generate, recover, store, and reuse braking power with very little air pollution. “We’ve made tremendous strides toward becom- ing an environmentally friendly port, but we need to do more if we are to continue to be recognized as a national leader in this area,” says Richard M. Larrabee, New York Port Authority port commerce director. “The new pro- gram – coupled with existing programs to preserve environmentally sensitive land, build new rail facilities that will reduce our dependence on trucks, and retro- fi t ferries with cleaner-burning engines – will allow us to maintain a sustainable port well into the future.” Specifi cally, the hybrid vehicles use a diesel-hydraulic system that combines the cleanest available diesel engine technology with components that use hydraulic fl uid com- pression to store energy. The hostlers feature hydraulic hybrid power trains to provide power to the drive axles. Kalmar Industries, which manufactures heavy-duty material Hydraulic tanks are used to store energy, in contrast to handling equipment, is among a group of maritime industry partners the less-effi cient batteries used in electric hybrid vehicles. that is piloting a new EPA-patented hydraulic hybrid technology to reduce diesel engine emissions at global ports. Like other hybrid systems, energy saved when applying brakes is reused to help accelerate the vehicle. The hydraulic hybrid technology is expected to improve the fuel effi ciency of yard tractors by 50 to 60 percent, reduce or eliminate emissions during idling, and decrease brake wear. The same hydraulic hybrid technology that has shown dramatic energy effi ciency improvements in delivery trucks can be applied to other equipment used to move goods. The UPS hydraulic hybrid truck, by example, shows potential savings of 1,000 gallons of fuel per year.

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

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

Practical Solutions. Practically Done. 877.853.4756 4700 S Thompson Springdale, AR 72764 www.bnsflogistics.com TRENDS ‹ CONTINUED FROM PAGE 20

fluctuating demand and supply, busi- Path to nesses that aren’t proactively investing in and growing supply chain partner- Collaboration ships are especially vulnerable. hile the progression toward sup- To help companies better understand Wply chain integration continues to the forces that are driving changes in break down operational and philosophi- supply chain collaboration, the study cal walls within enterprises, the promise provides a three-step process to identify, of true collaboration is fl eeting, fi nds a assess, and communicate a path toward new CAPS research study, Achieving collaborative advantage. These include: World-Class Supply Chain Collaboration: 1. Introspection: A company’s phi- Managing the Transformation. Managers losophy, which consists of two building are spending more time evaluating sup- blocks: customer orientation and sys- ply chain-enabled business models, but tems thinking orientation. have yet to fully grasp the nature of col- 2. Supply chain design: A corporate laboration or the concept of what it takes methodology including these fi ve steps: to achieve a truly collaborative environ- scanning, mapping, costing, compe- ment, the report suggests. tency/outsourcing management, and Supply chain collaboration remains rationalization. ad hoc and fragmented in all but the 3. Supply chain collaboration: Practices most mature supply chain relationships employed to drive transformation, which and companies are still not sure how to include relationship alignment, informa- piece them together into a coherent stra- tion sharing, performance measurement, tegic plan. Given the real potential for people empowerment, and collaborative global disruptions and the volatility of learning. THE CHAIN UP PEOPLE ON THE MOVE Berwyn, Pa.-headquartered Tyco Electronics named Michael Robinson (pictured) as the company’s senior vice president of operations. Robinson joins Tyco Electronics after a 27-year career at United Technologies Corporation (UTC), where he most recently served as vice president of operations for the Residential and Light Commercial International business at UTC’s Carrier Corporation. At Tyco he is charged with leading the company’s strategic purchasing, manufacturing, logistics, and quality assurance functions as well as Six Sigma and lean process improvements. ■ In an effort to roll out a company-wide strategy focused on centralizing and optimizing the operational and fi nancial performance of its supply chain, Hertz Global Holdings has appointed John Thomas as executive vice president, supply chain management. In his new role, he is responsible for procurement, including the world- wide car and equipment rental fl eets, as well as logistics, asset disposition, and real estate. Thomas joins Hertz from R.R. Donnelley where he most recently served as group senior vice president, business process outsourcing. Prior to R.R. Donnelley, he managed the supply chain for two General Electric subsidiaries, including the company’s fl agship Aircraft Engines business. ■ Collective Brands has promoted Darrel Pavelka to executive vice president, global supply chain. In this new role, Pavelka oversees all aspects of getting products to market – including product development, sourcing, logistics, merchandise planning, alloca- tion, and inventory management – for approximately 220 million pairs of shoes annually for the entire Collective Brands organization. Most recently, Pavelka served as senior vice presi- dent, global supply chain, for Payless ShoeSource.

22 Inbound Logistics • October 2007 =i\`^_kgXpd\ekjXglqqc\6

- ( +, / * , - ) ( / + . - - * . 0 ( + , ) . ) - 0 + , / .

FlkjfliZ\Xe[jfcm\`k]Xjkn`k_Gfn\iKiXZb%

C\kËj]XZ\`k#]i\`^_kgXpd\ekjZXeY\c`b\XJl[fblglqqc\% K`d\Zfejld`e^#kfl^_kfjfcm\#efk\Xjpkfi\ZfeZ`c\%N_`Z_`j \oXZkcpn_pjfdXepZfdgXe`\jflkjfliZ\k_\`i]i\`^_kgXpd\ekjkf Gfn\iKiXZb#k_\cXi^\jk]i\`^_kgXpd\ekYlj`e\jj`ek_\nfic[%N`k_ Gfn\iKiXZb#pflifi^Xe`qXk`feZXejXm\dfe\pn`k_\oZ\gk`feXcXl[`k Xe[gXpd\ek\]ÔZ`\eZp%Glqqc\jfcm\[%

?fndlZ_ZXepfljXm\6 :fekXZkGfn\iKiXZb]fidfi\`e]fidXk`feXe[k_\Xejn\ikfk_\ glqqc\XYfm\%M`j`knnn%gfn\ikiXZb^cfYXc%Zfd&,hl\jk`fej%Xjgo# ZXcc($/''$0),$+*)+fi\dX`c`e]f7gfn\ikiXZb%Zfd%

 Ÿ)''.Gfn\iKiXZbE\knfib -/+ ( , - ) ( * 0 . /,

('K_`e^jPflE\\[kf8jbPfli =i\`^_kGXpd\ekFlkjfliZ\i1

(% ?fndXepk`d\jn`ccpflY\Y`cc\[]fik_\jXd\`emf`Z\6

)%;f\jk_\jfclk`fegifZ\jj`eZcl[\Yfk_[fd\jk`ZXe[ `ek\ieXk`feXcgXpd\ekj6

*% N`ccpflY\XYc\kfkiXZb]i\`^_kZfjkjXkk_\JBLc\m\c6

+%N`ccpfl\c`d`eXk\(''f]gXg\i`emf`Z\j6

,%?fn[fpfliZXii`\ij]\\cXYflkk_\jfclk`fe6

=fik_\fk_\iÔm\hl\jk`fejpflj_flc[Y\Xjb`e^#ZXccljXk/''$0),$+*)+ fim`j`kljXknnn%gfn\ikiXZb^cfYXc%Zfd&,hl\jk`fej%Xjgo

=i\`^_kgXpd\ekjj_flc[eËkY\Xglqqc\%

- / + 0 / * + ( - ) , . , + / ( - - . * ( , 0 /, ) GLOBAL LOGISTICS by Joseph O’Reilly

U.S. Ports Get Green Light For Global Green Ship Mandate lans to ensure that the international ocean freight industry pilots a sus- Monteverde, the AAPA’s government Ptainable course for the future received a shot in the arm recently. At its U.S. relations vice president. Legislative Policy Council meeting in Norfolk, Va., the American Association of “What AAPA recommended, and our Port Authorities (AAPA) got the go-ahead from its member ports to advocate for members approved, is for the associa- setting new, tougher air emission standards for both foreign and domestic ships. tion to work with the Environmental The emissions-limiting agenda sought by AAPA follows a U.S. government pro- Protection Agency (EPA) to support its posal for more stringent international rules for ocean-going vessels. proposal to the International Maritime “As stewards of the coastal environment, our member ports feel strongly that Organization to adopt more stringent their seaport operations should be the cleanest they can be, so they have empow- vessel emission requirements as part of ered AAPA to advocate for limiting the emissions that ships produce,” says Susan the international MARPOL Annex VI treaty,” she adds. The recommendation calls for strict emission limits for particulate mat- ter and oxides of sulfur, beginning in 2011; limits on new engines to achieve oxides of nitrogen reductions of at least 15 percent beginning in 2011 (com- pared to existing emissions levels); and phased-in requirements on “leg- acy” engines (built before Jan. 1, 2000) to achieve a 20-percent oxides of nitro- gen reduction starting in 2010. The approach to cut emissions is through a combination of new fuel standards in certain coastal areas and new engine system standards. AAPA members agreed to sup- port the EPA in its quest to set new international standards for oxides of nitrogen for tier two and tier three ships’ engines, new standards for par- ticulate matter and oxides of sulfur for U.S. ports and the U.S. Environmental Protection Agency are steering the International all vessels, and standards for oxides of Maritime Organization toward adopting more stringent vessel emission requirements. nitrogen for existing vessels.

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

“Our member ports were clear that they want their association to take on the challenge of limiting ship emis- Dubai Goes to Maritime School sions worldwide,” adds Monteverde. apitalizing on its growing reputation as an intermodal global cross- “Considering that emissions from Croads, Dubai is taking elementary steps to growing its human logistics resources in the maritime sector. Dubai Maritime City (DMC), the world’s ocean-going ships are predicted to fi rst purpose-built maritime center, recently announced plans to construct grow by more than 70 percent over an academic center in concert with the International Association of Maritime the next 15 years with the expansion Universities (IAMU). On completion, the Maritime Education University will of global trade, our members believe it be a fully comprehensive education, training, and research institute for mar- is imperative to take a strong stand on itime science, and will play a key role in creating a labor pool for the global this issue.” maritime industry. “The shortage of qualifi ed manpower in the maritime industry today is of enormous concern, as it affects the industry’s seagoing, management, and Logistics educational components,” says Amer Ali, CEO of Dubai Maritime City. Tentatively, the university will offer an array of full-time and short courses, Providers covering at least 10 disciplines including maritime law, maritime engineering management, maritime IT and logistics, environment management, ship man- Sharpen Focus agement and operation, and ocean energy technology, among others. The 88,500-square-foot facility will also be affi liated with a research and develop- On Mexico ment institute to assist graduate students with their studies. he quest to reduce global transport Tcosts is causing stateside consign- ees and shippers to consider bringing outsourcing and procurement activ- ities closer to home. In anticipation of a race for the border, logistics pro- viders are expanding their services in Mexico. Some 3PLs have already created a foothold in Mexico to help shippers move products across the border into the United States more seamlessly and with fewer administrative and opera- tional headaches. At the same time, some supply chain experts are hinting that in the wake of China sourcing scares and increasing Offi cials from Dubai Maritime City and the International Association of Maritime Universities recently signed a memorandum of understanding to complete a feasibility logistics costs, Mexican suppliers may study for the construction of the Maritime Education University in Dubai, UAE. be seeing more business in the near future. In either case, logistics service pro- responds to growing logistics needs in border. The center’s proximity to viders are making clear efforts to the Rio Grande Valley and Northern Mexico enables Averitt to process cus- step up their offerings around the Mexico regions. tomer freight and transload goods for U.S.-Mexico border to facilitate trans- ■ Con-way Freight recently acquired nationwide distribution more quickly portation within the region. Among CFI in an effort to combine the truck- and effi ciently. recent press rumblings: load carrier’s network and expertise ■ FedEx has expanded its FedEx ■ DHL introduced a new cross-bor- with its own resources, as well as Transborder Distribution service for der service based out of Harlingen, Menlo’s in-country and border-based cross-border trade between Mexico and Texas, capable of handling triple the logistics operations. the United States by opening new facil- volume of its previous offering, as well ■ Averitt Express opened a new sup- ities in Ciudad Juarez, Mexico, and El as heavier palletized freight and non- ply chain facility in Pharr/McAllen, Paso, Texas, to help facilitate the fl ow conveyable material. The new service Texas – four miles from the U.S./Mexico of goods.

26 Inbound Logistics • October 2007 YOU NEED TO SOURCE FROM EMERGING MARKETS.

YOU NEED HANS MIEDEMA. When does Agility’s Hans Miedema consider a job done? When he successfully executes critical gas turbine shipments for his global energy customer? When he applies Lean Six Sigma Methodology to eliminate defects for his clients in Eastern Europe and India? For Hans, and 22,000 more Agility employees in over 100 countries around the world, success isn’t measured in parts assembled or products shipped. Success occurs when our partners achieve their goals. It’s an intimate approach to logistics that demands individual attention and personal ownership. It’s how Hans Miedema brings Agility to supply chain challenges.

Hans Miedema Regional Support Leader, Agility Global Account Team

agilitylogistics.com GLOBALLOGISTICS ‹ CONTINUED FROM PAGE 26

>CF98C Tibet Transportation Reaches New Heights Guess Who’s Rocking in the arking yet another major notch in tion materials, and commodity goods. Free World?: The world’s freest MChina and Asia’s expanding trans- “The northern part of Tibet is rich in economy for the 11th year running is portation and logistics infrastructure natural resources, and the Nagqu logis- Hong Kong, according to the Cato capabilities, Tibetan authorities have tics center will provide easier access to Institute’s Economic Freedom of the World: 2007 Annual Report begun building the region’s largest the resources, which will drive the . The study ranks 141 economies on policies that logistics facility to further exploit the area’s industrial development and trade, promote freedom in fi ve broad areas: potential of the Qinghai-Tibet Railway. and raise its self-development capabili- size of government; legal structure The logistics center, covering 1,317 ties,” says Lu Chunfang, vice minister and security of property rights; acres, is located next to a railway station of railways. access to sound money; freedom to at an altitude of 14,763 feet in Nagqu, The 1,215-mile Qinghai-Tibet Railway, trade internationally; and regulation northern Tibet. The facility is scheduled which opened in July 2006, links Tibet of credit, labor, and business. Hong for completion within 15 months, at a with the rest of China and has greatly Kong is followed by Singapore, New cost of nearly US $200 million, reports expanded the region’s economic pros- Zealand, and Switzerland. The United Hao Peng, executive vice chairman of pects. Tibet’s GDP posted 14.7-percent States ranks fi fth along with Canada the Tibet Autonomous Region. growth to reach US $1.84 billion in the and the United Kingdom. The study is The center will handle 2.23 million fi rst half of 2007, the highest increase in released in conjunction with Canada’s tons of cargo by 2015 and 3.1 million by the past decade, says the Tibet Regional Fraser Institute and the Economic 2020, including raw minerals, construc- Statistics Bureau. ■ Freedom Network, a group of inde- pendent research and educational institutes in 70 nations ● Orange Takes on Red Dragon: In an effort to grow its presence in China, Schneider Logistics recently pur- chased key operating assets of BaoYun Logistics. The acquisition allows Schneider to further expand its supply chain consulting and transpor- tation and logistics service offerings specifi cally focused on the domestic Chinese market ● UPS Digs Into Shanghai: Elsewhere in China, UPS and the Shanghai Airport Authority have broken ground on the new UPS air hub at Pudong International Airport. Located at the southern end of the West Cargo Terminal Area, the facility will cover one million square feet and be up and running by next year. With an expected sorting capac- ity of 17,000 pieces per hour, the hub will link all of China via Shanghai to UPS’ international network, including direct service to the Americas, Europe, and Asia. It also will connect points served in China by UPS through a dedicated service provided by Chinese all-cargo airline Yangtze River Express.

28 Inbound Logistics • October 2007 Look at your world through fresh eyes. Think Young.

You’ll see not just logistics as usual, but a flexible response to the unusual. Not just getting it there, but making sure nothing gets in the way. Not just the routine black and white, but all those gray areas in between.

This is the world according to DF Young. Look to us for a century’s worth of sophistication, experience and excellence in international logistics. By sea, by land and by air. Think Young.

Celebrating 100 years dfyoung.com

global reach solution oriented fortune 500 clients forward vision 360-degree flexibility technology driven worlds of experience Deane C. Foote, CEcD, is senior project manager for economic development and real estate services, Carter & Burgess. 602-253-1200 • [email protected]

ECODEV ISSUES AFFECTING ECONOMIC DEVELOPMENT

by Deane C. Foote

Know Your Freight Costs

arehousing and distribution continue to be the hottest sec- A Model DC Model W tors in site selection. In fact, hat goes into a good retail DC freight ■ Distance from suppliers when researching a fi ve-state region for Wmodel? Key components include: ■ Units per mode a client to determine the most active ■ Service radius defi nition — generally ■ Rates per mile industry sectors, warehousing and dis- in the 300- to 400-mile range Outbound parameters include: tribution topped the list. ■ Inbound and outbound ZIP code-to- ■ Sales This location pattern is taking place ZIP code data ■ Mode mix nationwide. It is a trend that will con- ■ Product volumes (cases, pallets, ■ Discount rates tinue as retail expansion drives more weight) ■ Units per mode ■ ZIP code, latitude, longitude, city and more warehousing and distribu- ■ Area allocation sales by mode populations tion center locations. ■ Weight per unit ■ Rail, LTL, TL, small parcel freight rates The economic development world ■ Product classifi cations is paying close attention to this trend. Inbound parameters include: Once the freight model is complete, What community wouldn’t want, for ■ Sales and if the right questions are posed, this example, the location of a one-million- ■ Transportation mode mix (rail, TL, important data should be available from square-foot distribution center (DC) with LTL, small parcel) the company seeking the location. its 600 to 800 jobs and $60-million to $80-million capital investment? As you might expect, competition ■ Labor ing to locate a warehouse or DC will among communities for these high-pro- ■ Freight not turn to an economic development fi le facilities is fi erce and incentive stakes ■ Land and building agency to provide a freight cost model. are high. ■ Taxes They do this internally, or turn to a Eager economic developers con- ■ Utilities professional logistics consulting com- stantly ask, “what drives DC location Most economic development groups pany for the answers. decisions and how can my region do a do a great job providing typical demo- But, to compete effectively for a project, better job of attracting good projects?” graphic information – work force, wages, economic developers do need to under- My answer: Understand the industry taxes, and utility costs – to companies stand freight cost modeling and the and sell toward your region’s strengths looking to locate. Many, however, do a differences between their area and other with the right tools. lousy job of understanding and provid- competitor communities. For exam- Part of selling toward your region’s ing meaningful information regarding ple, what costs do they need to make up strengths means understanding the transportation costs, the second most through rate reductions or incentives? costs that drive location decisions. important cost factor. Economic developers can learn all These costs include: Granted, most large companies look- this and complete the modeling with

30 Inbound Logistics • October 2007 What drives DC location decisions? How can regions attract good projects? Understand the industry and sell toward your strengths with the right tools. the help of a good logistics/site selec- ■ Overall inbound and outbound developers must have a good handle tion consultant. costs vs. select competitors on other operating costs, and have Many small distribution companies ■ Total costs by mode the ability to display these costs in a that have not done their own freight ■ Total costs by mileage range spreadsheet and report format. modeling, or need to verify their own ■ Weight and unit comparisons Data on competitors is also essential. model numbers, could benefi t from the ■ Insights into inbound costs Important comparison data includes: help of a savvy economic developer who ■ Sales volume (units monthly/ ■ Wages and salaries understands and can provide freight cost yearly) ■ Labor availability and quality modeling. This professional consultation ■ Mode volume and distances ■ Real estate availability and costs could mean the difference between win- ■ Mode rates ■ Taxes ning and losing an important project. ■ Insight into outbound costs ■ Utilities The results of your freight cost mod- ■ Mode mix ■ Cost of living/relocation eling will reveal a number of factors ■ Discount rates ■ Incentives that are valuable to economic devel- ■ Sources, distances, and modes Armed with this valuable arsenal of opers helping companies seek or verify ■ Sales allocations by region/mode information, professional eco nomic freight data and/or try to understand ■ Costs per pound/unit vs. com- developers are ready to go to battle to freight costs that they are competing peting regions win the best DC prizes. Freight model against. These factors include: Along with model data, economic tools may well make the difference. ■

O’Hare International Airport

513Express Center Dr.

On-Airport Facility With Direct Access to Tarmac 51 Exterior Docks 138,000 SF Ohare East Business Center Brian Carroll Senior Vice President 847.655.8435 Matthew Mulvihill Senior Vice President 847.655.8440 394,294 SF Divisible Only 3.5 Miles from South Cargo Entrance New Construction Available Now Owned and Operated by

Air Cargo/Freight Forwarding Logistics Facilities

October 2007 • Inbound Logistics 31 Mike Sadowski is CIO of Odyssey Logistics & Technology Corporation 203-448-3818 • [email protected] ITMATTERS by Mike Sadowski

Web Services Add Sizzle to Shipper — LSP Integration

merging Web services promise Before Web services, the shipper might not modeled in the ERP system) and in to revolutionize the way compa- have had to ask for a quote by phone, the real world are constantly changing. E nies and logistics service providers then wait for a response. Or it might The result is inaccurate delivery date (LSPs) integrate. I am not talking about have used an estimated rate stored in its promises to customers, possibly result- accessing a Web site using a browser, but ERP system. This could differ from the ing in lost business. secure system-to-system service requests real rate, resulting in surprises when the Using Web services, shippers can tap sent over the Internet that can link enter- bill arrived. At worst, the shipper might into the most current and accurate infor- prises, allowing a company to utilize have estimated conservatively, possibly mation provided by their LSP and give third-party Web services as a seamless jeopardizing a customer’s business with customers up-to-date transit time infor- part of its own business processes. an overpriced quote. mation. Manufacturers can also use this Using Web services, a shipper can information to improve the accuracy access an LSP’s functionality or data IMMEDIACY AND ACCURACY of material resource planning calcula- from within the ERP system and get a With a Web services-based integra- tions, which are also based on static, and reply, typically in less than one second. tion to their LSP, shippers can access an frequently conservative, lead-time esti- The shipper then has the fl exibility to accurate freight cost estimate when it mates stored in an ERP system. integrate the Web service into its busi- counts most – when they are talking to As these examples show, the emer- ness process. customers. Such an approach also allevi- gence of Web services gives logistics For example, a shipper’s customer ser- ates the need for shippers to store freight service providers new opportunities to vice representatives (CSRs) often need rates in their ERP system. Most ERP sys- provide value to their customers; and to quote freight costs. With an LSP’s tems are ill-suited for this purpose. shippers can more accurately and effi - freight cost Web service, the shipper can Perhaps more importantly, manag- ciently share this information with issue a call from its ERP’s order manage- ing a freight rates database is an onerous consignees. Web services allow the ment module to the service provider’s task that is not part of a shipper’s com- shipper-LSP partnership to grow more system. The LSP’s system replies with petency. This task is best outsourced to strategic by allowing shippers to inte- the estimate, which the CSR can quote the LSP who maintains accurate freight grate LSP-managed information at new to a customer. rates as a core business responsibility. points within their business processes. Additionally, the shipper has great Consider another question custom- These techniques can be used to flexibility in how it uses this data. If ers commonly ask CSRs: “When will my achieve improved customer service the shipper wants to apply a markup freight arrive?” Again, service reps typ- by providing timely and accurate data to the freight cost in its own system ically answer this question using static from the LSP to the shipper, while elim- before quoting the cost to the customer, data stored in their ERP system. Transit inating less-effi cient communication it’s easy enough to do so. times can vary across carriers (typically methods such as phone and fax. ■

32 Inbound Logistics • October 2007

John A. Fitzgerald is vice president, global sales and marketing, SEKO. 630-919-4800 john.fi [email protected] 3PLLINE by John A. Fitzgerald

Six Essential Strategies for Selecting a Global 3PL

oday’s complex global business 3PL’s price is seldom the only selection vice. If the two partners do not share environment – with its rapidly criteria; you must also consider total common capabilities and company T advancing technologies, emerg- supply chain costs. resources, a 3PL will not be able to ing world markets, and vastly extended 1. Cultural alignment. The biggest provide proper supply chain visibil- supply chains – places increasingly challenges shippers face today are ity, and the shipper will not obtain the critical decision-making demands on controlling international supply chain necessary capacity and services when logistics professionals. visibility, lead times, and total landed delivery of goods is required. If you In a world gone global, the chal- costs – including inventory carrying source from India, for instance, does lenges of providing seamless supply costs, obsolescence costs, and customer the 3PL have its own offices in the chain solutions across geographical service. So, selecting a third-party region to work with your suppliers? and cultural boundaries have increased logistics provider best suited to meet- 3. IT capabilities. IT capabilities exponentially. Overall logistical ing their specific and unique global work hand-in-glove with company requirements, vendor choices, and distribution needs, both culturally and infrastructure. If the shipper and 3PL other dynamic variables can make the operationally, is critical. cannot communicate on the oper- outsourced 3PL decision-making pro- Every shipper should ask: “Does my ating platforms they already have cess an exercise fraught with pitfalls if company and the 3PL we will work with in place – whether EDI, XML or the not conducted carefully and correctly. share the same values, such as ethics Web – and be responsive to each oth- Compounding the situation is the and responsibility; and can we under- er’s changes in IT structure, it is likely fact that global third-party logistics, stand and agree upon what the specifi c they will not be a good match. driven by increasing international nature of the partnership arrangement Real-time data sharing and ongo- logistics cost factors, is estimated to will entail?” If the two parties cannot ing timely responsiveness is crucial to be a $390-billion industry. There is agree on these points, the rest of the cri- providing a seamless supply chain. IT no indication the number of players teria become moot. compatibility is essential for providing providing these service offerings will 2. Company infrastructure. With global logistics services such as ship- diminish. This makes partnership globalization and new technologies, ment documentation, purchase order decisions for shippers even harder to it is critical that both parties have the visibility, cross-docking support, and grapple with. physical resources and accessibility to advanced services including forecast- With these caveats in mind, here shipment data to meet each other’s ing, inventory replenishment, and life are six critical essentials of global sup- needs. cycle management. How fast can the ply chain strategy you should weigh, In the age of customized one-to- 3PL respond to IT requests? analyze, and consider carefully before one marketing, supply chain solutions 4. Ease of doing business. A supply selecting your 3PL. Keep in mind: the become all about personalized ser- chain partnership will only be as good

34 Inbound Logistics • October 2007 as the skills and cooperation its partic- as the success of any supply chain items can be further enhanced if ipants bring to it. How fl exible is each partnership ultimately relates back both parties are able and willing to partner willing to be on items such as to customer satisfaction. This means jointly invest in their common suc- exceptions, scheduling, and services? that you and your 3PL partner must cess. It is vital that each partner fully If the supply chain is to be optimized, establish agreed-upon benchmarks for understand the meaning of “global it’s important that both partners work success, and frequently review mea- collaboration.” together to empower all participants. surement data to ascertain if the global As global trade and IT capabilities A third-party logistics provider that is logistics process is performing well or accelerate, and trade complexities right for you will customize services to needs improvement. increase with new cross-cultural regula- meet your specifi c supply chain needs. This process can involve measuring tions, it becomes even more imperative But it is essential that shippers work on-time performance, damages, cost- that you give great care to choosing a closely with their 3PL to share critical per-touch, total landed costs, and other global 3PL. Selecting the right supply shipment and forecast information that metrics. Your metrics should be the chain partner for your specifi c distribu- will enhance visibility and help opti- 3PL’s metrics. tion needs will dramatically enhance mize the total value chain process. 6. Partnership intangibles. Value- your worldwide supply chain manage- 5. Metrics. Cost is always important, added customer service-related ment results. ■

Seattle Phoenix Kansas City Dallas Houston Greensboro Laredo Chicago Indianapolis Detroit Cleveland Columbus Savannah Las Vegas Louisville Nashville Memphis Dalton Mobile Birmingham Greer Rochester Jacksonville Charleston Charlotte Tacoma Boston Norfolk Baltimore Atlanta New Orleans Philadelphia Newark Montreal Wilmington Harrisburg Vancouver Toronto Baton Rouge Oakland San Diego Find us here . . . and there and everywhere . . .

s.ORTH!MERICAN4ERMINALS s  /WNER/PERATORS s3TATE OF THE !RT)4 s#USTOMS"ONDED s7EB BASED4RACKAND4RACE3YSTEM s)NTERCHANGEWITH!LL3HIPPING,INES s7IRELESS$ATA4ERMINALFOR$RIVERS 2AILROADS s#ONTAINER9ARDS s(AZ-AT#ERTIlED Headquarters: s)3/ s# 40!4#ERTIlED #ARNEGIE"LVDs#HARLOTTE .# 3- s,OCAL,INEHAUL3ERVICES s!CTIVEWITH3MART7AY 4ELsWWWBTTINCCOM s&ULLY)NSURED C. Daniel Negron is vice president, TT Club •201-557-7320 [email protected] RISKS REWARDS& ISSUES AFFECTING LIABILITY MANAGEMENT by C. Daniel Negron

Your Services Are Expanding...Are You Covered?

I am the risk manager for and consolidating. They can also use warehousing, and other logistics activ- a global logistics company any means of transport – land, sea, or ities, they do share maritime parallels. Q: that provides complete air. Their operations and contractual In the marine world, forwarders con- door-to-door service. A large part of our relationships are multifaceted and com- solidate, warehouse, and transport operation involves shipping goods by plex. Add the need to insure their risks cargo. Terminal operators transport air. While we do have partners, our own through domestic policies in foreign passengers, operate lounges, provide employees perform most of our services, countries, and you can appreciate that ship catering, handle luggage, shuttle including airport consolidation and structuring a comprehensive program crews, clean septic systems, and pro- warehousing. We are insured through a creates a logistics problem of its own. vide other related activities. Ship agents global program that covers most of our Then mix airport ground handling provide husbandry, fueling, mainte- logistics operations. operations into the equation and you’re nance, and other vessel services to the My company is now expanding into bound to hit more obstacles. steamship lines. Although the regula- airport ground handling operations, and Airport ground handling operators, tory framework and verbiage may differ, I am fi nding it diffi cult to work this new typically called fixed-base operators these services are similar to those FBOs operation into our logistics insurance (FBOs), provide a mixed bag of services, provide. program. Can you explain why insurance including aircraft loading/discharge, companies see such differences in aircraft positioning and cleaning, cater- THE AVIATION/MARITIME DIVIDE these operations, and can you suggest ing, passenger boarding, ticketing, Insurance for these operations also a solution to my dilemma? and numerous other related activities. has its rough equivalents – hangar- The logistics industry has Virtually every airport has a need for keeper’s liability for aircraft push-back been undergoing a signi- these services, which are insured sep- operations, or a wharfi nger’s legal for A: fi cant transformation over arately from the risks of the airports ship mooring operations, for exam- the past few years. Through mergers themselves. ple. In the past, these risks were insured and acquisitions, many operators have While logistics industry risks are separately from each other, but this broadened the services they provide to generally insured in the marine insur- is changing. In an effort to provide a their customers. ance market, airport ground-based risks broader range of coverage, especially to This increase in services has brought tend to be insured through the aviation companies whose services cross multiple a corresponding change in the com- insurance market. Although aviation disciplines, some insurers have become plexion of risks that insurers have has its roots in the marine industry, specialists in international trade and been asked to cover. As an operation marine and aviation insurance oper- transport, and provide packages that increases its services, the risks it faces ate independently of each other. This straddle the aviation/maritime divide. tend to increase as well. might be part of the reason for your Ask your insurance agent to speak with Logistics operators can provide an dilemma. an international trade and transport spe- arsenal of services – forwarding, truck- But while airport ground-based cialist. This will help you fi nd an insurer ing, warehousing, packing, crating, operations differ from forwarding, who can satisfy your needs. ■

36 Inbound Logistics • October 2007 I need to know the location of my shipments.

OH count on us.TM

You’ll know exactly where your shipments are whether they’re on the water, in the air, in a warehouse, on a truck or on a train when you have OH Logistics as your global supply chain management partner. www.ohlogistics.com/countonus.html or 800-401-6400

Ozburn-Hessey Logistics and OH Logistics are the registered trademarks of Ozburn-Hessey Logistics, LLC. ©2007 Ozburn-Hessey Logistics Richard Metzler is chief commercial offi cer, Greatwide Logistics Services [email protected] • 972-682-2250 VIEWPOINT by Richard Metzler

The Shipper Empire Strikes Back

itting in the cab of a Class-8 recalibrated following the attacks, and transportation price increases of the truck provides a great real-time much like the overall economy, 3PL past several years. That shouldn’t be a Sview of the country’s landscape, providers enjoyed signifi cant growth. surprise, and is somewhat understand- as we saw in the American Trucking Until mid-2006, one main challenge able – “somewhat” being the key word. Associations’ (ATA) recent ad campaign. shippers faced was fi nding substantial If one accepts the overall cycli- Sitting across the table from a present truckload capacity, while worrying cal nature of the U.S. economy, or prospective shipper, however, may about potential cost and quality con- however, and that the national popu- present the best view of the future for cerns. Across town, trucking companies lation is not declining, then one fact both carriers and shippers. were focusing on expansion of overall remains – demand for trucking and Today, transportation buyers and capacity, driver supply, and other issues other 3PL services will increase over sellers are cautiously watching multi- to meet increasing customer demand. time. The ATA’s prediction of 111,000 ple indicators, trying to interpret how As every shipper vividly remembers, net heavy-duty truck driver vacancies market metrics might impact shipping the intersection of tight supply, high just seven years from now – requiring prices. demand, and wildly fl uctuating diesel 435,000 driver hires to cover the turn- Some point to a recent positive swing prices drove shipping costs up. over factor – may be low. Further, ATA of nearly four points in the Institute for Chief Economist Bob Costello predicts Supply Management Manufacturing TRUCKING DEMAND DROPS a 31-percent increase in freight traf- Index as a sign of better times to come More recently, this trend has decidedly fi c by 2017, despite the driver shortage, for trucking. Yet, a negative 580 basis reversed. Housing starts and consumer increased traffi c congestion, and stricter point drop in consumer confidence, confi dence have been down, and new Hours-of-Service (HOS) regulation. according to the Conference Board, car sales charts will look like a dead The heavy-duty driver shortage will suggests rough roads ahead for truck- man’s EKG until at least 2008. Diesel begin returning toward summer 2006 ing and 3PL providers. costs have risen signifi cantly, weather levels by the end of this year, and the sit- While history will not provide a guar- has been a rollercoaster ride, and some uation will get worse and never – let me anteed view of our economic future, it view a presidential election without an reemphasize – never get better in our life- does provide necessary perspective. incumbent as another uncertainty. time. You may think I also believe that The beginning of this decade was These conditions have collectively tighter capacity of this nature is good largely defi ned by the Sept. 11 terrorist reduced demand for a wide range of for truckers because it drives prices up. attacks. Beyond great personal tragedies, commodities and fi nished goods and, Prices probably will rise, to some degree. the general economy was impacted by by extension, for trucking. Yet, I believe what’s good for the shipper the level of shock and surprise that No question about it, shippers is what’s best for trucking. engulfed the country. Yet, the market are increasingly seeking to roll back Political pundit James Carville

38 Inbound Logistics • October 2007

VIEWPOINT ‹ CONTINUED FROM PAGE 38

made a brilliant point during President be able to clone and attitudinally repro- want their goods dependably and eco- Clinton’s first campaign when he ral- gram the white male 35- to 44-year-old nomically transported, regardless of 3PL lied his team around the mantra, “It’s demographic of today’s heavy-duty supply-and-demand variables. Logistics the economy, stupid.” Today’s economy drivers; that most of the “mossbacks” providers want predictable loads and is causing the shipper empire to strike who see the romance of the road can projectable revenue. Taking the longer back. C-levels are heavily pressuring be convinced to not retire; and that the view creates more shared wins. their logistics managers to exact a pound government will add massive highway This approach reduces the potential of fl esh from the trucking industry. capacity and ease emission and HOS for disruptions that could result when While not surprising, it may not be regulations. Anyone who believes all shippers lose preferential positions the way to optimize one’s position in of that should seek immediate medical in the transportation supply by mak- 2008 and beyond. You may not believe attention. ing one or more tactical moves to save that some shippers are trading part or It’s time to put aside uncontrollable money, only to be in a “first out, last all of their short-term rate concessions macro economics and have trucking in” situation when supply and demand for capacity commitments later on, but companies and shippers collaborate curves resync. For truckers and 3PLs, they are. on business and financial relation- more strategic customer relationships There are no silver bullets, but from ships that extend beyond the next hill. mean increased focus on innovative my perspective, I’ll settle for “sucking Committed relationships between ship- solutions that bring better efficiency less” than what we saw in early 2006. pers and transportation providers can and effectiveness to the table. Here’s what you have to believe to think facilitate movement from the generic, While the Rebel Alliance and the that capacity is not going to tighten soon commoditized low-value world to the Galactic Empire may make for exciting and forever: that there’s a fundamental collaborative, differentiated, and val- entertainment, the trucking and 3PL weakness in the U.S. economy; that we’ll ue-added shipping universe. Customers space is no place for battle. ■

PROVEN SOLUTIONS FOR STORAGE SPACE PROBLEMS Very narrow 64” (1.6M) Is a shortage of storage space a problem in Aisles vs wide 144” (3.7M) Aisles = your facility? Do you: 12 rows vs 8 rows = • Store loads at off site locations or outside in containers or trailers? 50% More Storage • Temporarily store loads in stacking aisles? • Have congested docks and passageways? • Constantly move loads around to make room for more? • Have storage aisles 9’ (2.7M) or larger? • Have too many underused specialized forklifts? • Need to add more space for consolidation or increased storage needs? • Need more manufacturing space? If the answer to any of the above is yes, Landoll can solve your space problem with its Proven Narrow Aisle Forklift Solutions. 80’ (24M) Landoll’s Bendi and Drexel very narrow aisle forklifts store loads from aisles as narrow as 56” (1.4M) to lift heights of 433” (11M). Electric, LP Gas and Diesel models are available with the latest technology in controls and fuel systems. Since 1993 Landoll’s Narrow Aisle solutions have paid for themselves with space savings and increased productivity. Look to the Proven Landoll Solution to solve your space problems. For more information call us at 800-428-5655, e-mail mhpsales@ landoll.com or visit our web site at www.landoll.com/mhp/.

40 Inbound Logistics • October 2007 THAT’S THE THING ABOUT CHICAGO. WE’RE ALWAYS THINKING. (Even this ad is sideways for a reason.)

An industrious Chicagoan once looked at the average hot dog bun and realized a lot more could fi t in there than just the

average hot dog. So in went mustard, onions, relish, tomatoes, peppers, even a pickle. It’s kind of like buying a hot dog and getting a free salad at the same time. Getting more – that’s Chicago style. A Al Capone is kind of a legend here. He sells a lot of T-shirts and postcards.

During Prohibition when alcohol was, well, prohibited, entrepreneurs like Al fi gured out how to meet consumers’ thirsty demand by, shall we say, circumventing certain government regulations. Though his methodology was dubious, his desire to put the client fi rst and his refusal to accept limitations are traits we can all admire. A During the 1968 Democratic National Convention, demonstrators gathered in Chicago to protest the war in Vietnam.

When the tear gas cleared, many people were able to see the war for the futile agenda it was. Having the conviction to create change is as much

Chicago as snow in March. A Looking to trump the Eiffel Tower unveiled four years earlier, organizers of the 1893 Chicago World’s Fair solicited ideas from the country’s brightest architectural minds. But it was an unknown local engineer who created the winning idea, a giant steel wheel that carried passengers on a joy ride. His name? George Washington Gale Ferris. A Until recently, road weight limits forced overseas companies shipping to the U.S. to break down and lighten containers at the coast. Meaning more containers. And higher costs. But now with the Chicago Land Bridge from Nexus, it’s like you can ship directly from overseas to Chicago. So it will save companies and managers like you millions of dollars. (We knew that would get your attention, too.) The Chicago Land Bridge. An innovation that will change the future of shipping by overcoming limits and giving you more. Glad we thought of it. Contact us at [email protected] to learn more.

Or call Jen Hansen at 800-536-5220. LOGISTICS AT SEA LE

42 Inbound Logistics • October 2007 by Lisa Harrington

Ocean, rail, and intermodal he U.S. intermodal container indus- try faces challenges that, if not met leaders discuss why capacity effectively, could negatively impact the nation’s long-term economic concerns, infrastructure well-being. inadequacies, and a paucity of TThe first challenge is managing the ripple effect caused by a signifi cant disparity in trade policy keep them up at night. with China, the rest of Asia, and many other global trading partners. “The United States’ large inbound container- ized trade, as opposed to small and lower-valued trade outbound, creates major imbalances in the fl ow of transportation assets,” notes Richard Bank, president, Millennium International Consultants, Washington, D.C., and counsel to Thompson Coburn LLP. The second challenge is the country’s increas- ingly inadequate domestic infrastructure to support long-term global trade growth. And third, the United States offers little in the way of a national intermodal infrastructure policy, coordination, strategy, or means for develop- ment – “and we are, and will be, suffering the consequences,” Bank says. Intermodal leaders have a lot to say about these issues. In a series of interviews, they share their thoughts, concerns, and opinions about the VEL present and future of the U.S. intermodal sector.

October 2007 • Inbound Logistics 43 Analysts predict that foreign imports will double by 2017.

are slam-dunk, easy solutions. But without improved pro- ductivity across the supply chain, the rails will not be able to handle increased freight volumes for the foreseeable future. As Rails Evolve, Infrastructure Lags STEVE BRANSCUM, Group Vice President, Consumer Products, BNSF Railway Less than one year ago, the hot topic in the rail indus- try was how to handle the tremendous explosion in trade. Supply Chain Today, we’re looking at a very different picture. The U.S. economy has slowed down, driven by a housing and automo- As a Team Sport tive downturn, and high fuel prices. Today, the hot question is: ‘How long, how deep is the slowdown?’ PETER KELLER, President, NYK Lines (North America) Despite the current economic downturn, intermodal’s How can the U.S. intermodal network continue to cope long-term prospects are bright. One major business driver with freight volumes that grow in excess of 10 percent each during the past fi ve years was the transition of manufac- year? Good question. turing to China thanks to low wage rates. A large disparity Unless we start to look at the supply chain as a team between wages in China and the rest of the world still exists, sport, we will not make serious progress in improving pro- creating a tremendous opportunity to better utilize the ductivity. We are all trying to run a supply chain that starts country’s huge work force for some time to come. The bene- in mid-China and ends in the mid-United States. We have to fi ts of China sourcing will continue for decades. do that as a team. With regard to U.S. transportation infrastructure, the It’s time to take a fresh look at how supply chain partners Minneapolis bridge collapse is a perfect example of what deal with one another and manage handoffs. When we bring we have been saying for some time — we are not spending containers off-ship, for example, we need the railroad right what we should on our infrastructure. The bridge collapse there, on the dock. That is much more productive than hav- will, in all likelihood, effectively block the trucking industry’s ing draymen haul individual containers to a container yard. efforts to raise truck weight limits or allow longer combina- Shippers have a stake in this team. They can’t continue to tion vehicles on more roads. This means that ultimately, to use the supply chain as a means to store inventory in transit. handle increasing cargo volumes, more freight will have to Suppose we have 10 containers coming in for a consignee. move by rail. We know they’ll arrive Tuesday, two weeks from today; the For many reasons, more long-haul trucking business consignee knows that as well. But when the containers are will shift to rail. Trucking will become more of a short-haul, delivered, the consignee does not vacate them for 10 days. pickup and delivery provider. Rail will play a bigger role in That creates problems for carriers and service providers providing linehaul service. trying to redeploy those assets. But the rails’ current capacity is not suffi cient to handle We are making progress, though. Organizations such as this evolution. the Waterfront Coalition, chaired by senior professionals We need to focus on how the United States will build the who have strong knowledge of the rails’ role in the supply infrastructure to support growth in transportation demand. chain, understand that without cooperation, the rails’ ability The U.S. Department of Transportation must better coor- to continue to fuel this economy is in jeopardy. dinate planning across modes. The rails also should pursue The entire supply chain needs to work harder to become mode-specifi c ideas for funding new infrastructure, and driv- as productive as possible. No one is suggesting that there ing productivity both in individual modes, and across modes.

44 Inbound Logistics • October 2007 A LOT GOES INTO OUR CONTAINERS.

Trust, reliability, reputation and of course “on-time” service. With Maersk Line and Maersk Logistics, you can be confident no matter what you put into our containers, because you know how much we put into them. Every container is supported by a customer service team using the most sophisticated technology backed by the most extensive global infrastructure in the industry. Our solution methodology will help develop the critical supply chain for all your needs. From selecting the service to consolidation to tracking and forwarding to final destination, you will always know where your goods are and when they will arrive. Maersk Line and Maersk Logistics – because you expect a lot from us. CREATING OPPORTUNITIES IN GLOBAL COMMERCE. The industry is trying to reduce the congestion that results when ships arrive at ports at the same time. Ports and railroads are working to develop more on-dock rail, and to eliminate or reduce truck drayage traffi c. What many fail to recognize, how- ever, is that U.S. port and freight activities are part of an immense network, and should be managed accordingly. This is not happening. Yet, in the face of all these chal- lenges, companies are getting smarter at managing risk. Companies that have been affected by risks such as hurricanes, trading scandals, earthquakes, and fi res are building simulation scenarios to understand how these supply chain disruptions could play out. They are modeling the effects of those events so they can improve decision-making. Forecast Calls for More Planning Manage the Network JEFF BRASHARES, COO, Pacer International’s Logistics Segment JADE RODYSILL, Senior Manager, Supply Chain Practice, Accenture To be more effi cient domestically, Forecasts show that many East Coast ports will hit capacity shortly after their intermodal providers need better West Coast counterparts. Charleston is predicted to be the third-most congested forecasting from customers about port by 2012. While added port development in Mexico and Canada will come consumer demand. Without good online over the next few years, creating additional capacity, that is an incremen- forecasting, service providers have no tal solution. effective way to plan box assets. One by-product of greater congestion is a decline in carrier on-time performance. Forecasting is diffi cult, but to A recent study shows carriers operated 46 percent on time in 2007 (Q1), compared to continue to take cost out of the inter- 57 percent on time in 2006 (Q1), an 11-percent drop year to year. modal supply chain, service providers This lack of predictability in a constrained environment will make matters have to fi nd better ways to forecast worse. The truck driver labor market is very tight, forcing carriers to pay more the use of assets. for drivers. Most carriers are not making as much money as they used to, so they Shippers are better at planning can’t invest in transportation infrastructure. now than they were Port facilities are constrained, and it takes longer to work the larger ships 20 years ago. But because they require more land and gantry crane time, often delaying departures. we have much less Many ocean carriers are making multiple port calls, and if they hit a constrained capacity today than port fi rst, the rest of the trip is delayed. we did in the 1980s and 1990s. Back then, a ship- per could call us Brashares One by-product of port congestion is an 11% and ask for 100 con- tainers over the weekend. Today, drop in carrier on-time performance from there aren’t 100 containers available. Planning has to improve or ship- 2006 (Q1) to 2007 (Q1). pers won’t get a box to move their products.

46 Inbound Logistics • October 2007

The Watchword? Capacity JAMES HERTWIG, ports to all-water services to the U.S. East Coast via the President, CSX Intermodal Panama and Suez Canals. Capacity continues to be the watch- Much of the intermodal service growth will come from word for the transportation industry industry expansion in Western China and the Indian penin- and intermodal sector. Hertwig sula. These operational changes could add three to four days Industry analysts predict that for- to the supply chain. Shorter inland transit times and reduced eign imports will double by 2017. Foreign-produced goods port congestion, however, could offset the lengthening chain. currently enter the United States via West Coast ports and Major intermodal interchange points for Class I rail carri- travel to the population centers of the East by rail and truck. ers will see even more rail and intermodal traffi c. Railroads An increased burden on West Coast port facilities, driver are currently working to increase capacity at these points shortages, and highway congestion — coupled with the through projects such as double-stacking containers, increasing cost of doing business thanks to higher port lengthening rail sidings, and double-tracking main lines. access fees, Clean Air Act compliance, port security, and Public-private partnership projects — such as CREATE in TWIC (Transportation Workers Identifi cation Credential) Chicago, which is designed to maximize the use of fi ve train cards — will cause steamship operators to change their busi- transportation corridors — also are addressing capacity ness models. Freight volumes will migrate from West Coast expansion.

THE RULE

In the dog days of the Washington, D.C., summer, ■ Fails to defi ne who is to purchase, operate, and maintain President Bush signed into law a piece of legislation with the technology. far-reaching ramifi cations for the ocean shipping commu- ■ Fails to address health and safety issues relating to the nity. H.R. 1: Improving America’s Security Act of 2007 states use of the scanning equipment. that within fi ve years, 100 percent of all containers bound ■ Fails to seek or obtain the necessary cooperation of for the United States must be scanned for weapons of mass other governments. destruction before they depart their port of origin. The ■ Fails to “practice what you preach” — the U.S. govern- containers also must be secured with a seal that meets stan- ment does not perform this function on export cargo, dards established by the Secretary of Homeland Security. scans virtually no U.S. export containers, and has no Ports that are unable to comply within the fi ve-year plans to do so. time frame could receive a two-year extension from the ■ Fails to defi ne the scanning requirement — for example, U.S. Department of Homeland Security. what to do with the scanning data generated, whether Just days after President Bush signed H.R. 1 into law, or when to transmit the data from the scanning equip- László Kovács, European Commissioner responsible for ment to the U.S. government, or who is to analyze the Taxation and Customs Union, condemned it, insisting that data generated. it will damage trade, place an unfair and signifi cant ■ Fails to address who is responsible for analyzing the fi nancial burden on European Union ports, and require scanning data. major restructuring of port operations. “These are fundamentally important issues with diffi - The World Shipping Council opposes the statute cult operating protocols and signifi cant costs associated as well, charging that it: with them — all of which the legislation does not address,” ■ Fails to defi ne who will perform the scanning. the World Shipping Council states.

48 Inbound Logistics • October 2007

side, however. It removes the on-dock intermodal rail option, puts additional pres- sure on container handling capabilities, and increases demand for truck services in ports and port areas. This generates additional concerns about highway con- Rails Turn gestion, safety, security, air quality, and other issues. The Corner BRIAN MCDONALD, Vice President- Intermodal, Union Pacifi c After struggling with capacity issues for the past few years, the rails have turned the corner on their ability to handle trans-Pacifi c trade by invest- ing heavily in infrastructure. Long term, trans-Pacifi c trade will see signifi cant growth. Short term, a continued need for inland point inter- modal service, and service growth projections, indicate the rails will enjoy a robust market. The railroads, ports, and ocean car- riers have focused on maximizing on-dock loading. Our priority is to keep on-dock facilities fl uid and resources fl owing. We develop rail schedules that coincide with vessel schedules, and work with ocean carriers to optimize train length and train slot utilization. At the same time, we see greater A Man on a Mission demand for transload service — the JOHN BOWE, President, APL Americas process of transferring product from The U.S. economy has undergone dramatic change in the past few years, par- ocean containers into domestic inter- ticularly regarding containerized imports, creating many challenges for the modal, or over-the-road trailers. intermodal transportation system. Marine container terminals are not expanding Transloading does have its down as fast as the demand for capacity, while governmental, environmental, and physi- cal factors limit their ability to grow. This has created a less reliable intermodal transport system for supporting a U.S. economy ever more dependent on foreign sourcing. As a result, East Coast ports have grown rapidly, with ships coming all-water from Asia through the Terminals are not Panama Canal. But the Panama Canal is just at capacity, marking yet one more route that has expanding as fast become congested and nearly saturated for handling containerized imports. More recently, APL and other ocean carriers have begun to use the Suez Canal as demand for as an all-water option; APL recently launched a Suez Express service covering southeast Asia through the Suez capacity, creating Canal. Broad consensus shows that the U.S. government will a less reliable not invest large sums to increase transportation fl uidity. But the federal government could take the lead through intermodal system tax policy to encourage private investment. for a U.S. economy Bowe To get this message out, we visited federal agencies such as the Department of Transportation and branches dependent on of the White House domestic policy group. We brought some large shippers with us — those with many employees and billions of dollars in sales, representing major foreign sourcing. parts of the U.S. economy. Our message was: ‘Something needs to be done. The lack of transportation fl uidity affects our ability to serve customers, and will ulti- mately drag down the U.S. economy.’

50 Inbound Logistics • October 2007 #2))
0-""!
%"!

/PU
POMZ
JT
UIF
1PSU
PG
.POUSFBM
UIF
NPTU
EJSFDU
SPVUF
CFUXFFO
/PSUI
"NFSJDB±T
JOEVTUSJBM
IFBSUMBOE
BOE
UIF
/PSUIFSO
&VSPQFBO
BOE
.FEJUFSSBOFBO
NBSLFUT
ZPV±MM
CF
BNB[FE
IPX
RVJDLMZ
XF
DBO
NPWF
ZPVS
DBSHP
XIBUFWFS
UIF
GSFJHIU
XIBUFWFS
UIF
TFBTPO

XXXQPSUNPOUSFBMDPN

/035)
".&3*$"±4 */-"/% 4&"1035

1035 0' .0/53&"- #6*-%*/(
 1*&33&%616: "7&
.0/53c"-
26c#&$ ) $
3 5&-
   '"9
   &."*-
."3,&5*/(!1035.0/53&"-$0. R For years the rails sang IN the blues. Now they rock around the clock. Could leader of the pack? rail transport soon be the

52 Inbound Logistics • October 2007 L

by John Edwards

or an industry with its roots in the 19th AIcentury, and that hit its heyday in the mid- 20th century, railroads are still showing lots of life. New customers, emerging technologies, and a refreshed physical infrastructure are all helping to inject new energy into an industry that not so long ago appeared to be rolling into history. F“The railroad industry is probably as healthy today as it has been in the last 30 years,” says Patrick Hiatte, general director of corporate communications for Burlington Northern Santa Fe Railway (BNSF), Fort Worth, Texas. Yet as the nation’s railroads ride the express track into the 21st century, they Ralso face a series of fresh challenges that threaten to derail recent advance- ments. A year-long traffi c slump, shipper complaints, and the threat of tighter regulations are among issues dogging rail carriers’ future. IN’ “The crystal ball is still cloudy,” says Deb Butler, executive vice president of planning and chief information offi cer for Norfolk Southern, Norfolk, Va.

October 2007 • Inbound Logistics 53 Why Rail? Commodity, volume, and geography typically mandate a shipper’s decision to use rail. “Rail is most often used to move bulk commodities such as coal, chemicals, and agricultural products shipped from origins and to destinations that are rail-served,” says David A. Riddell, marketing manager, RSI Logistics, a third-party logistics provider headquartered in Okemos, Mich. In recent years, improved intermodal service has made rail transportation a viable option for more products, help- ing rail carriers attract new customers. “Intermodal shipping can be utilized for all commodities, from consumer goods to bulk liquids traveling in specialized containers,” he observes. Likewise, an increase in transloading terminals has allowed rail carriers to service shippers who may have oth- erwise relied exclusively on truck transport. “Many shippers are not rail-served, but are able to utilize rail by going through transloading terminals,” says Riddell. Such terminals offer shippers the benefi t of long-haul rail combined with the speed and fl exibility of local truck deliv- ery, he notes. Cost is another major factor companies take into consider- ation when deciding whether to ship by rail. “There is a good chance that rail transit costs will be lower than truck for dis- tances greater than 600 miles,” Riddell says. “And, because of their weight or other handling requirements, many com- modities are better suited to being moved via railcar.” Railcars can hold up to 220,000 pounds while trucks are generally limited to 44,000 pounds. “Railcars can also act as temporary storage for large quantities of material,” he adds.

Riding High Thanks to decreased regulation, higher trucking costs, and increased Wall Street interest, railroads are basking in the glow of a new golden era. “Based largely on the effects of the Staggers Rail Act of 1980, railroads are able to get suffi cient ROI to continue investing in business,” says Hiatte. The Staggers Rail Act essentially deregulated the rail indus- try, replacing a byzantine regulatory structure that had existed since the 1887 Interstate Commerce Act. For the fi rst time in nearly a century, railroads were permitted to deter- mine where they ran trains and how much to charge. Yet it took railroads more than two decades to take full advantage of their deregulated market. Unlike the airline industry, which was deregulated just two years earlier in 1978, high up-front costs and limited profi tability potential spared established rail carriers from price wars with startups. Instead, the Staggers Act spurred rail carrier consolidation and helped the then-struggling industry’s remaining com- panies to control more miles of track and eliminate pesky competitors capable of driving down tariffs.

The promise of greater intermodal effi ciency and accountability has more shippers considering rail as a viable option for transloading container freight in and around congested ports.

54 Inbound Logistics • October 2007 B!!Dpnqfujujwfoftt Cbzqpsu!jt!qspkfdufe!up!usjqmf!uif!dpoubjofs dbqbdjuz!pg!uif!Qpsu!pg!Ipvtupo/!Qspwjejoh!fgß!djfou! boe!dptu!fggfdujwf!tfswjdf!up!dvtupnfst-!ju!vtft uif!nptu!npefso!à!ffu!frvjqnfou!up!ebuf!jo uif!joevtusz/!

C !Nffujoh!efnboe Cz!uif!foe!pg!3118-!Cbzqpsu!jt!fyqfdufe!up!ibwf sfbdife!b!dbqbdjuz!pg!511-111!UFVt/!Bu!gvmm!cvjmepvu CbzqpsuÖt!qfbl!dbqbdjuz!xjmm!cf!3/45!njmmjpo!UFVt/

D!!Sftqfdujoh!uif!fowjsponfou Cbzqpsu!pqfofe!bt!b!JTP!25112!gbdjmjuz-!tfuujoh!b ofx!tuboet!gps!tupsnxbufs-!opjtf-!boe!fnjttjpot gps!Hvmg!Dpbtu!dpoubjofs!gbdjmjujft/

C

D

Diboofm!boe!bekbdfou!up!Hbmwftupo!Cbz-!uif!Qpsu!pg!Ipvtupo! BvuipsjuzÖt!Cbzqpsu!Dpoubjofs!Ufsnjobm!bddfttjcjmjuz!up!sbjm! boe!ijhixbz!usbotqpsubujpo!tztufn!xjmm!nblf!ju!b!qsfgfssfe! qpsu!pg!dbmm/!CbzqpsuÖt!beejujpobm!qibtft!xjmm!cf!cvjmu!jodsf. nfoubmmz!pwfs!uif!ofyu!tfwfsbm!zfbst/ 2.911.799.4736]}!¦ xxx/qpsupgipvtupo/dpn In an effort to increase speed, throughput, and capacity, U.S. railroads such as BNSF are looking at doubling track in high-volume corridors and investing in and utilizing more double-stack container trains.

“Beginning in 2004, the demand recent years has amounted to several and alliances for Transplace, a 3PL for rail transportation exceeded the hundred million dollars, largely because based in Plano, Texas. ability of the railroad industry to pro- investing in rail infrastructure is now Most rail carriers have upgraded vide service, putting enormous pricing seen as a competitive use of funds.” their internal information technology power in the hands of the railroads,” systems, installed wireless tracking and says Robert G. Szabo, executive direc- Making Tracks communications technologies, and are tor, Consumers United for Rail Equity To boost both speed and capacity, now using advanced locomotive and (CORE). The Washington-based orga- railroads are currently on a track-build- railcar management systems to slash nization is a coalition of rail freight ing spree. “They are not covering new maintenance costs and extend equip- customers seeking changes in federal territory, but are doubling up on tracks ment lifetimes. law and policy that would require rail- in many areas,” says Anthony B. Hatch, “Technology currently touches nearly roads to provide competitive pricing a New York-based independent rail every aspect of rail operation, right and more reliable service. industry analyst. down to helping workers figure out Steadily growing revenue enabled BNSF, for example, is currently lay- where to repair tracks,” Menner says. the remaining major rail carriers – CSX, ing in the fi nal stretch of second track BNSF views technology as a key com- BNSF, Norfolk Southern, and Union on its Chicago-to-Los Angeles transcon- petitive tool. “We have implemented Pacifi c – to upgrade their physical and tinental line. technology that expedites shipments technological infrastructures, which “Two tracks cover the entire 2,200- at the hub centers, for example,” Hiatte were greatly neglected during the mile distance, with the exception of says. “Gate workers use handheld devices industry’s long dark period. about 50 miles,” Hiatte says. “We will that print tickets showing incoming “Improvements to tracks, railcars, ter- fi ll in that gap over the next few years.” drivers exactly where they need to drop minals, intermodal centers, and other Rail carriers are also moving off their trailer or container.” parts of the physical infrastructure quickly to catch up with technology. Outbound, drivers visit a kiosk to have contributed signifi cantly to rail’s “Technology is becoming prevalent receive a printout telling them where revival,” Hiatte says. “We’ve had some in the rail industry,” says Matthew they can fi nd their trailer or container room for expansion capital, which in Menner, senior vice president of sales for pickup. BNSF also uses a variety of

56 Inbound Logistics • October 2007

Though the economy’s downturn has reduced rail freight volumes, forecasted GDP growth of 3.4 percent for the second quarter of 2007 is an encouraging sign that traffi c will rebound.

Web-based e-commerce applications, RFID tracking, and a railcar ordering system protected by voice authentica- tion security. “Rail is going through a renaissance,” Menner says. “Not only has it become fashionable to use rail for coal, grain, and other traditional commodities, it’s also challenging trucking. Thanks to the evolution of intermodal, signifi cant volumes of freight – usually high- to moderate-value products – are now mov- ing at least part of the way by rail.” But not everyone is pleased by the railroads’ new prosperity. Take indus- try critic Szabo, for instance. “Today, the four major railroad com- panies are darlings of Wall Street simply because they possess the pricing power that comes when demand for rail ser- vice exceeds the ability of the railroads to provide that service,” he charges. Over the last few years, the four major railroads have spent $6 billion to buy back their stock. “Hedge funds are now buying into the railroads, and new aggressive investors are demand- ing that they double their rates in the next decade – because they have that kind of pricing power,” Szabo adds.

Traffi c Slowdown While rail’s long-term potential the fi rst quarter, is a hopeful signal of But higher tariffs may actually be appears bright to many observers, the a return to more solid expansion,” says contributing to the current slump. industry’s immediate outlook is some- Craig F. Rockey, vice president, AAR. “Truck transport rates have become what dimmed by declining traffi c. For the On the other hand, railroads aren’t more competitive over the past year, fi rst eight months of 2007, total U.S. rail hurting too much from the diminished and more shippers have converted carloads were down 3.5 percent, reports traffi c because they have a free hand lanes from rail to truck this year com- the Washington-based Association of to raise rates, particularly on coal and pared to previous years,” says Riddell. American Railroads (AAR). chemical shippers who have limited or But despite recent rate increases, rail Year-over-year traffic is down in no other transport alternatives. “These remains “the most cost-effective mode most commodity categories, including fi rms are literally held captive by the for transporting bulk materials over crushed stone, sand, and gravel (down rails,” says Szabo. long distances,” he says. 10.6 percent); coal (down 1.6 percent); Starting in early 2004, rail rates began and motor vehicles and equipment to rise. “They’re up because the railroads Return to Regulation? (down 6.7 percent). can raise the rates,” Hatch says. While rail carriers have been left to “While the current reluctant econ- But shipper complaints may be unjus- play free in the market since deregula- omy continues to soften rail traffic tifi ed because rates have stayed low for tion in 1980, some signs point to the volumes, a recent preliminary GDP fi g- a long time. “Companies were used to government taking more of an interest ure of 3.4 percent for the second quarter paying less, and now that they’re not, in the industry and its practices. of 2007, up from 0.6 percent during they have an axe to grind,” he adds. “Proponents don’t like to call it

58 Inbound Logistics • October 2007 ‘re-regulation,’ but it does come down changed the rail rate dispute process for tax credit for investment in expan- to imposing regulatory barriers,” says small and medium-size shipments. sion. Szabo describes the request as an Norfolk Southern’s Butler. “It would roll “Previously, only the largest shippers “unneeded bailout”; Hiatte calls it “a back the deregulation that came about could afford to bring disputes before necessary investment for the future.” in the 1980s, and add guidelines to the the STB,” Riddell explains. “That is no If rail carriers play their cards right, rates charged.” longer the case. One facet of this rul- they can make signifi cant gains on the But changes in government over- ing allows shippers of any size to use an trucking industry over the next few sight are already happening, including expedited resolution process with a $150 years, Menner says. “Rail still has a lot two signifi cant Surface Transportation fi ling fee to recover up to $1 million.” to offer,” he notes. “The United States Board (STB) rulings this year, and faces signifi cant roadway infrastructure more recently, Rep. James Oberstar’s Moving Forward, Not Backward challenges, as well as driver short- (D-Minn.) proposed legislation to intro- Despite these recent decisions and ages, fuel supply issues, EPA emission duce price controls and control rail Rep. Oberstar’s pitch, Menner doesn’t requirements for engines, and more.” network access. The fi rst STB decision see a return to the days of tight govern- But Szabo believes that the outlook declared that it’s unreasonable for rail- ment control over railroad pricing. for businesses that rely on rail shipments roads to compute fuel surcharges that “Railroads have come under increased isn’t quite so rosy. “The rail industry in do not correlate with actual fuel costs scrutiny over mergers and reciprocal the next few years is likely to look a lot for specifi c rail shipments. switching, and some shippers do feel like the current rail system unless there is “This ruling led carriers to adopt that the railroads ‘have their way’ with further consolidation, which will result mileage-based fuel surcharge programs them,” he says. “But I don’t think we in even less competition,” he says. for most publicly priced carload ship- are heading back to anything even For his part, Hiatte sees nothing that ments,” Riddell says. “While that made resembling the old days.” points to a reduction in demand for rail the system more fair, it also added an Still, one area where rail carriers services: “Considering the issues truckers administrative burden as shippers would like to see more government have to deal with – highway congestion, needed to build the mileages into their involvement is the distribution of land use, and air quality – it seems evi- freight cost models.” money. The railroads are currently dent there will be a continuing need to The second STB ruling on Sept. 5, 2007, asking Washington for a 25-percent rely on rail transportation.” ■ Bulk containers and 55-gallon drums continue to duke it out. Bulk containers are the heavyweight favorite, but the venerable drum has not yet gone down for the count. DRUMBEA by Gregory DL Morris

60 Inbound Logistics • October 2007 fter making slow progress against the traditional 55-gallon drum for moving small-volume liquid shipments, inter- A mediate bulk containers (IBCs) and intermodal tank containers (ISO tanks) are starting to accelerate their gains. To be sure, drums are still the prevalent form for chemicals, food ingredients, lubricants, and coatings. But more than two decades after being introduced, IBCs and ISO tanks now account for as much as one third of the market. Chemical producers say there are gains in safety, efficiency, and cost when they have to fi ll, move, and load fewer vessels. Distributors are also enthusiastically converting, at least ATERS for inbound logistics. Th e sticking point seems to be consignees, especially smaller companies that are set up for receiving and handling drums. Many see the logic and potential for operational savings, but are hesitant to spend the time and money to reconfi gure their plants and retrain personnel. Th e tipping point, say container manufacturers, may be that slow growth has reached the point where their economies of scale in production are starting to reduce costs. Over the next few years, those lower capital expenses may accelerate the conversion of drum handling systems to IBCs.

October 2007 • Inbound Logistics 61 “The 55-gallon drum is still our pri- says. “First, they learned how to safely leg up for container manufacturers is mary method for moving industrial handle the various containers that that economies of scale are starting to chemicals, accounting for about 80 distributors use daily. Second, they reduce costs. The entire IBC domestic percent of shipments, but we are mak- learned what to do when one is dam- market runs to about $1 billion, says ing a slow transition to IBCs,” says Tom aged. Twenty years ago, LTL carriers Mike Spurrier, vice president of sales Meulendyke, purchasing manager for didn’t know what to do with a leaking and marketing for Snyder Industries, packaging, third party, and transporta- drum. Today they not only know what Lincoln, Neb., one of the country’s larg- tion at Ashland Inc., Columbus, Ohio. to do, but have over-pack containers est IBC makers. “Choosing IBCs over drums is an available to mitigate any incidents.” economic, safety, and environmental That said, Byron notes that tote Many Happy Returns trend,” he says. “The volume of four tanks now play a an important role “We only make returnable containers, or five drums fit into an IBC, which in chemical distribution. “Where the which deliver the best cost ratio over reduces the number of drums moving standard-size drum leaves off, the tote their lifetime. In 20 years, one return- into the waste stream.” tank picks up the slack,” he says. able tote can make hundreds of trips,” Container integrity is of paramount Tote tanks are available in steel, poly- says Spurrier. importance to both chemical dis- mer, stainless steel, aluminum, single Returnable containers replace thou- tributors and carriers, even when the trip, and special shapes, sizes, and sands of drums, and save the time and contents are not hazardous. A drum capacities. They are easily tuned to a money to test, load, secure, and clean leaking a product as benign as corn customer’s exact requirements for batch them. And, because IBCs are usually used syrup, for example, can still contami- sizes. In commerce they are suitable in orbits – carrying the same commodity nate other shipments in a warehouse for re-use without testing for extended from the same manufacturer – they need or trailer. periods, and are less susceptible to han- less cleaning. dling damage. And, it is easy to track One of the most common IBC sizes Making the Choice a tote tank’s usage history, leading to is the 330-gallon unit. “It is equal to six As both a major producer of industrial improved quality control. chemicals, solvents, and lubricating oils, IBCs account for approximately 25 to and one of the largest chemical distribu- 30 percent of Canada Colors’ business, tors in North America, Ashland is a large Byron estimates, and could eventually motor freight shipper.Meulendyke works reach as high as 40 percent of the com- with his LTL carriers to decide what type pany’s total container traffi c. of shipping container to use. Specialized container makers are not “The choice is driven by econ- shy about promoting their products, omy – selecting the container that offers especially now that more shippers and the lowest cost to the shipper, and the carriers are familiar with them. Another most effi cient inventory management to the end customer,” he says. “Yes, IBCs and other large containers pro- vide potential cost savings. But often a small customer has been using drums for years and is not set up to handle IBCs. The container decision has to balance fl exibility and effi ciency, and be a win-win for both the shipper and customer.” Canada Colors and Chemicals, Don Mills, Ontario, is both a manu- facturer and distributor of industrial chemicals. “Chemical producers often assume responsibility for transport of their own materials in tankers, barges, railcars, and trucks; they rarely han- dle packaged materials,” notes Marty Byron, the company’s manager of west- ern operations. “Over the years LTL carriers improved Intermediate bulk containers (IBCs) are gaining two vital parts of their business,” he popularity among shippers for economic, safety, and environmental reasons.

62 Inbound Logistics • October 2007 

 
   

  

 

 

   
 




 
  
  



 

 









    drums,” explains Spurrier. “It fi ts on one have been adopted more slowly for For example, “a pallet of drums may pallet and can be handled by one fork- moving non-DOT-regulated materials be attached to the pallet with just shrink lift. It has a bottom drain, and can be such as foodstuffs and lubricants.” wrap,” says Neil Smith, vice president of stacked for safe handling and loading.” operations for Con-way Freight’s western Most disposable IBCs are made of Tanks Alot division. “That is usually not suffi cient. polyethylene, but reusable units are Schneider National Bulk Carriers, Our drivers are trained to surround the made of polymer with walls up to half- Green Bay, Wis., runs approximately sides and top of the load with plywood, an-inch thick. 1,500 tank trailers that have three or and to block and brace it. A lot more “Reusable units are approved by the four discrete compartments for LTL work is involved.” Department of Transportation (DOT) bulk liquid shipments. About 5,000 of The former custom of loading drums for hazardous materials,” says Spurrier, the carrier’s 84,000 annual loads are on pallets at the tail of the truck for safety “and are often used to carry corro- compartment-sized shipments. reasons has also been revised. “The tail sives, acids, and caustics. They are very “We move a variety of materials of the trailer is susceptible to forces three light compared to steel or composite; in those compartment trailers,” says times that of the nose,” Smith notes. that’s important when shipping heavy George Grossardt, vice president and “While the loads are easier to get to in products.” general manager of Schneider National the tail, we now load drums on pallets Rules covering IBCs have not been Bulk Carriers. “The compartments have in the nose to reduce jostling.” revised since the mid-1990s when a variety of linings, from steel to rubber. Con-way has seen slow, organic the DOT harmonized domestic rules We have also experimented with com- growth in liquid and dry bulk traffi c with United Nations regulations. The posite tank trailers, but they are very in recent years, from a small shipper European Union, however, has allowed expensive to buy.” base. “We do solicit some of this busi- some limited re-use of disposable IBCs. Drums or IBCs offer shippers more ness, but it depends on the shipper and “The returnables have been most flexibility than compartmentalized the region,” says Smith. popular for moving chemi- tank trailers, Grossardt acknowledges. cals, petrochemicals, solvents, But the trade-off is having a driver certi- ISO Will Grow paints, and electronics chem- fi ed and trained in handling hazardous One of the more interesting ideas icals,” Spurrier says. “They materials, and the economies of scale of in liquid containers has so far proven Schneider’s national, long-haul system. to be among the most challenging to While LTL carriers are happy mov- implement. The intermodal tank con- ing either IBCs or drums, some note tainer, or ISO, is a short, fat tank inside that drums require extra work to a steel frame that allows it to be moved pack and load. like any 20-foot box container. ISO tanks are common in Europe and Asia, Lightweight, durable, and corrosion- but have yet to make a breakthrough in resistant, IBCs can be made from either North America. plastic or steel, and are available in a variety of shapes and sizes. Still, growth has accelerated, and later this year the largest operator of ISO tanks, Stolt-Nielsen, will pro- mote its tank-container operations as part of a stand-alone subsidiary rather than its global tankers and terminals operation. “We estimate the size of the ISO global fl eet at approximately 200,000 tanks,” says Michael Kramer, managing direc- tor and soon-to-be president of Stolt Tank Containers, Houston. “The fl eet has been growing at an annual rate of about fi ve to six percent since 2000.” Tank containers average an 18- to 20-percent savings over drums. “The main advantage of a tank container is that it can handle more cargo weight in a 20-foot box, compared to drums,” Kramer says. “On average, a drum shipment weighs about 16 to 18 metric

64 Inbound Logistics • October 2007 tons, versus a tank container, which the railroad consolidations,” says Kramer. dictating strict terms and conditions for ranges from 20 to 24 tons.” “But we lost ground to trucks as service moving on intermodal stack trains, access In addition, tank containers “require on the rails eroded because we are com- to rail ramps, and a recent move to push signifi cantly less handling, are safer to peting in a just-in-time market with chemical cargo into trucks,” he adds. move, and offer more security,” Kramer very high standards. Once we managed As with any transport mode, equip- notes. “Tank containers ment is both generic also eliminate waste in ™ and specialized. Tank terms of lost product, PELICAN containers are no dif- and help reduce pollu- ferent. There are small tion because drums no tanks for very heavy longer have to be dis- SPEND ON SAVEWITH cargo; high-pressure posed of in land fi lls. or high-heat tanks for “Small containers, REPEAT PAID diffi cult cargo; gas and such as tote bins, are COST EVERY FOR IN electric tanks for cargo slightly more compet- CYCLE 2 CYCLES that needs to be heated; itive than drums, but and reefer tanks to han- tank containers still dle cargo that needs to represent significant be cooled. savings,” he adds. Another distinction Internationally, tank between IBCs and tank containers have been containers is that IBCs operating into and out are bought by the ship- of North American mar- per and used or reused kets since the early 1970s. by the shipper’s own Volume is substantial logistics department. and represented in every While some large chem- geographic region. ical producers also own Globally, the United or lease a fl eet of tank States represents If you’re involved with Reverse Logistics you already know containers, it is most approximately one- the name of the game is cutting costs and saving Money. common for the ship- third of total demand, So consider the benefits of a Pelican Protector™ Case with per to contract with a according to Kramer. a lifetime guarantee; one durable case that gives you an global ISO tank oper- That proportion has endless number of shipping legs and significantly reduces ator to buy a turnkey declined in recent years your packaging “cost-per-use” (when compared to transportation service. due to the increase in expendable packaging). In addition, Pelican Cases are “We own a majority activity in markets such crushproof and waterproof so you protect your assets by of our tank contain- as Asia, South America, eliminating shipping damage. And there are environmental benefits too as Pelican’s ers,” says Kramer. “We and the Middle East/ multiple use cases reduce packaging disposal and its associated waste. deliver the empty to Indian subcontinent. the customer, buy all A much different It’s simple math: how many shipments of expendable packaging will pay for a the services – highway, picture is painted in Pelican case? When you add together the total costs of expendable packaging rail, or steamship trans- North America. It has usage it’s an easy decision.” port – and deliver to the long been thought that To learn more, call us toll free at 866.823.3020 or visit us online at consignee’s schedule.” domestic tank contain- www.pelicanoem.com/ibl Some industry play- ers, moved by truck/ ers are surprised that rail/truck, could repre- ISO tanks have not sent a huge market and become more popular a means to meet cus- 23215 EARLY AVE., TORRANCE, CA 90505 • 866.823.3020 (TOLL FREE) in North America. 310.326.4700 • FAX 310.326.3311 • WWW.PELICANOEM.COM/IBL tomer requirements All trademarks and logos displayed herein are registered and unregistered trademarks “I think that people for shipments traveling of Pelican Products, Inc. and others. will begin to see the 3018 more than 500 miles. benefi ts for shipments Stolt-Nielsen has that are not time-sen- tried to grow the U.S. domestic mar- to regain service levels, rates became the sitive,” says Byron. “Our small branch ket since the early 1980s, with varying issue, with higher rail costs making inter- brings in about 20 or 30 ISO tanks a degrees of success. modal options less desirable.” year, and we save about $5,000 per unit “We made signifi cant progress prior to Additional obstacles include “the rails over road transport.” ■

October 2007 • Inbound Logistics 65 UASC We bring southern hospitality to liner shipping.

UASC vessel, Al Abdali, on her approach to the Port of Savannah David Smalls - photographer

Call our Savannah–based national booking offi ce at 1-800-GO1-UASC and experience the diff erence. www.UASC.net WMS PLUG IN & POWER UP

As U.S. businesses look offshore for new opportunities to expand their enterprise, they are faced with the challenge of ensuring that stateside distribution centers and warehouses are properly wired. The U.S. DC has become a vital sup- management and optimization capabilities ply chain conduit, capable of matching that can facilitate break-bulk consolidation demand currents to supply fl ows; or as the at a cross-dock facility. case may be, a supply chain circuit breaker ■ Or an e-tailer, operating a mega DC, that can detect demand fluctuations or might opt for a more robust warehouse inven- exceptions and locate alternate channels to tory system with sophisticated pick/pack and ensure seamless and effi cient product move- labor management capabilities to scale up for ment. To meet these emerging requirements, the holiday season. WMS vendors are engineering solutions with Whether demands are vertical-specific, the buyer in mind. So, for example: dictated by existing ERP systems, or based ■ An automotive component distributor, on cost and complexity, WMS vendors are with a lot of moving parts in its product line saturating the market with solutions and and within its supply chain infrastructure, can implementation services to steer and facili- choose a WMS that integrates with its ERP sys- tate warehouse investments. tem and can drive lean process protocol. At the same time, buyers need to be judi- ■ Brick and mortar retailers staging inven- cious and discrete as they research, pilot, and tory closer to supply may prefer a best-of-breed select the perfect WMS solution. solution that has inbound tracking capabilities To help provide some clairvoyance, Inbound and automatic alerts to aggregate information Logistics canvassed leading vendors to aggre- and drive effi ciencies in the truck, at the dock, gate an informational directory of WMS and on the pallet. solutions and capabilities. How can a WMS ■ Beverage distributors with high-volume recharge your supply chain? Turn the page throughput may require a WMS with load and fi nd out.

October 2007 • Inbound Logistics 67 WMS PLUG IN & POWER UP

COMPANY PRODUCT WHAT IT DOES Adonix Adonix Geode Meets the needs of mid-sized enterprises with large transaction volumes and sophis- Sewickley, Pa. Warehouse ticated warehouse practices. An incremental step for companies needing more adonix.com Management specialized functionality than available in standard ERP systems, but wanting to limit 724-933-1377 System the number of vendors used to obtain back-offi ce and warehousing capabilities.

ASC Software ASCTrac WMS Engineered to support the demanding requirements of warehouse distribution Dayton, Ohio and manufacturing operations, its modular design is an ideal fi t for any size orga- ascsoftware.com nization. ASCTrac interfaces to any fi nancial system and is capable of covering the 937-429-1428 whole supply chain cycle from order entry, through pick, pack, and ship operations.

Cadre Technologies Cadence WMS Helps manage receiving, put-away, location management, product/SKU management; Denver, Colo. lot, serial number, and date control; order processing; picking/packing; replenishment; cadretech.com cycle counting/inventory control; ERP interfaces; equipment interfaces to pick-to-light, 866-25-CADRE conveyor and sortation; and WMS Web access to warehouse performance.

CAPE Systems CAPE eWMS Allows users to incorporate best practices across all supply chain operations. South Plainfi eld, N.J. Provides real-time insight into all warehouse operations and inventory availabil- capesystems.com ity and is designed for deployment in any industry. The system includes integral RF 908-756-2000 support as well as support for the CAPE Systems Order Fulfi llment products.

Catalpa Systems Core2 — Warehouse Designed to effi ciently schedule and execute dock activities; receive and put-away Chicago, Ill. Management inbound shipments; pick and load outbound shipments; support and prioritize catalpa-systems.com tasks; and manage inventory across multiple warehouses. 312-663-3658 x208

Catalyst International CatalystCommand Manages all aspects of DC/warehouse operations from receiving and put-away to Milwaukee, Wisc. Warehouse order selection, picking, loading, and shipping. Built on an open, modular technol- catalystinternational.com Management ogy platform, the system features standard interfaces for easier installation and 800-236-4600 tighter integration between user systems, applications, and equipment.

CDC Software IMI Warehouse Plans, controls, and monitors all physical processes for warehouses or DCs. Atlanta, Ga. Performs all tasks in real time, adapting quickly to resource constraints and cdcsoftware.com priorities as well as coordinating interdependent warehouse and transportation 770-351-9600 activities.

Compliance Networks Retail Distribution Built from the ground up as a retail-specifi c warehouse management solution, Sugar Land, Texas Management rDMS features retail industry best practices to give users a single software platform compliancenetworks.com Solution (rDMS) providing 360-degree visibility into the supply chain. From vendor docks to the 877-267-3671 showroom fl oor, it provides the information retailers need to compete effectively.

Click Commerce Click Commerce Based on service oriented architecture (SOA), it allows companies to effi ciently Chicago, Ill. WMX integrate with third-party systems, reducing implementation time and costs. The clickcommerce.com solution incorporates confi gurable, rules-based business processes, which gives 800-899-2641 companies fl exibility to adapt their warehouses to changing conditions.

Datex International Datex EX WMS With its complete warehouse distribution operations functionality, it features RFID Clearwater, Fla. terminal support, extensive administration tools, and a drill-down approach to man- datexcorp.com aging labor and requirements forecasting. 800-933-4159

68 Inbound Logistics • October 2007 COMPANY PRODUCT WHAT IT DOES Epicor Software Epicor Warehouse Provides the basic tools to create warehouses within its iScala warehouse man- Irvine, Calif. Management agement function and manage goods within those warehouses. It extends this epicor.com capability by adding support for consignment and vendor-managed warehouses, 949-585-4000 containers, serial numbers, batches, quality control, bins and batch traceability.

HighJump, Warehouse Utilizes wireless and bar-code technology, such as RFID, for quick fulfi llment a 3M Company Advantage through directed, optimized workfl ow. It executes processes such as receiving, Eden Prairie, Minn. put-away/fl ow-through, inventory management, order processing, replenishment/ highjumpsoftware.com pick/pack, loading, and shipping. 800-328-3271

HK Systems HK Warehouse Addresses the needs of manufacturers, distributors, and their 3PL partners with New Berlin, Wisc. Management the capability to track and control the fl ow of raw materials and fi nished goods hksystems.com Software across both production and distribution operations. The system prioritizes, directs, 800-HKSYSTEMS and confi rms activities based upon real-time conditions and space constraints.

Infor Infor SCM’s Enables users to see what inventory is or will be available, organize work and align Alpharetta, Ga. Warehouse resources and labor to satisfy customer requirements, and optimize fulfi llment and infor.com Management distribution processes to ensure that products are delivered on time and in full. The 800-260-2640 result is supply chain management with end-to-end fulfi llment.

Infosite Technologies DM Warehousing Automates customer-specifi c charges by cycle; handles re-pack, cross-docking, Boisbriand, Quebec and storage; manages customer inventory, perpetual counts, annual counts, and infositetech.com adjustments; controls stock rotations; allows user-defi ned warehouse planning; and 888-395-0354 generates all documents – packing slips, bills of lading, etc.

Interlink Technologies WHSe-LINK Offers technology and functionality to support all warehousing activities. Perrysburg, Ohio (Warehouse Link) Specifi cally, it provides a turnkey solution that includes WHSe-LINK software, interlinktech.com system integration, hardware, training, and support. 800-594-5160

IntelliTrack IntelliTrack Available in three versions, it maximizes effi ciency and optimizes labor productivity Hunt Valley, Md. Warehouse in warehouses of all sizes. Each version provides the basic functions for warehouse intellitrack.net Management operations, including physical inventory, shipping, receiving, and picking, as well as 410-771-3060 System (WMS) management features such as queries, reporting, and bar-code labeling.

IQMS IQMS Wireless Simplifi es inventory management by eliminating time-consuming data entry. Users Paso Robles, Calif. Warehouse manage inventory movement with wireless technology so they can enter the trans- iqms.com Management action as it happens on the plant fl oor, on the forklift, at receiving, at shipping, or 866-FOR-ERP2 anywhere in between.

KNAPP Logistics KNAPP Warehouse Helps increase warehouse picking performance up to 30 percent by using pick-by- & Automation Logistics Software voice and innovative RF terminal solutions. Myriad off-the-shelf features optimize Kennesaw, Ga. all warehouse processes, and provide a standard interface to all common or home- knapp.com grown ERP systems to ensure short implementation time and fl exibility. 678-388-2880

LOG-Net LOG-Net Shipment Provides operational functionality to plan, receive, process, and invoice warehouse Red Bank, N.J. and Warehouse activities. It specifi cally facilitates: warehouse bookings, receiving, transfers, load log-net.com Management plans, and manifests; worldwide view of on-hand inventories; and over, short, and 732-758-6800 damage exception processing.

October 2007 • Inbound Logistics 69 WMS PLUG IN & POWER UP

COMPANY PRODUCT WHAT IT DOES Made4Net WarehouseExpert Enhances inventory accuracy, maximizes space utilization, and performs order ful- Paramus, N.J. fi llment to ensure customer satisfaction. It specifi cally tracks and manages every made4net.com unit from receiving to the warehouse through its storage, inventory management, 201-645-4345 replenishment/pick and pack, loading and shipping, and more sophisticated func- tionality such as billing, cross-docking, and RFID support.

Manhattan Associates MA WMS Improves warehouse facility layout; increases inventory accuracy; increases order Atlanta, Ga. fulfi llment and accuracy; calculates item velocity to ensure inventory is optimally manh.com located; provides picking, packing, and replenishment tools; increases billing accu- 770-955-7070 racy; and identifi es hidden costs of doing business.

Mincron Software Warehouse Offers a menu of capabilities that can reduce inventory, fi ll orders more quickly, Systems Manager improve accuracy, prioritize the movement of the most profi table goods, maximize Houston, Texas worker productivity, minimize wasted space, and ensure customer fulfi llment. mincron.com 800-299-7010

Motek Priya WMS Controls the entire operation of any warehouse from 100,000 square feet to two Beverly Hills, Calif. million square feet. Using radio frequency mobile computers, it can support 10 to motek.com 500 concurrent users, and is engineered to meet all the requirements for retail and 323-653-4333 wholesale clients, including food and non-food items.

Navis SmartTurn Automates manual-based processes from purchasing to shipping; integrates pur- Oakland, Calif. Inventory and chasing with user inventory control to reduce unwanted carrying costs; accelerates smartturn.com Warehouse the receiving and put-away process of goods from the shipping dock to preferred 888-667-4758 Management locations; provides real-time information on the quantity, location, status, and history System of every inventory item within the warehouse; and enables companies to commit to more orders and increase profi ts without increasing the cost of doing business.

Oracle Oracle Warehouse Automates and optimizes material handling processes to reduce labor costs, Redwood Shores, Calif. Management improve facility utilization, and increase order accuracy. Oracle Warehouse oracle.com Management supports inbound, outbound, and reverse logistics; fi nished, raw, and 800-633-0737 work in process materials; and manufacturing and distribution environments.

Quality Software Powerhouse Improves inventory accuracy; decreases order processing time; improves customer Systems Inc. service levels; reduces put-away and picking errors; improves the use of human Oldsmar, Fla. and warehouse resources; reduces inventory carrying costs; increases return qssi.com on inventory investment; reduces shipping errors; and eliminates costly physical 813-855-9416 inventories.

Radio Beacon/Accellos Radio Beacon WMS Tracks movement of stock into, out of, and within the warehouse thanks to the Markham, Ontario combination of radio frequency and bar-code technology with a three-tiered, accellos.com Internet-based architecture. 905-695-9999

RedPrairie RedPrairie’s Optimizes every move enabling lean distribution operations. That means lower Waukesha, Wisc. Warehouse distribution costs and happier customers. The WMS offers task optimization capa- redprairie.com Management bilities, including embedded 3D mapping and mature SOA technology. 800-990-9632 Solution

RF Pathways RF Pathways A confi gurable, standards-based, open architecture design facilitates time-sensi- Mississauga, Ontario Warehouse tive, mission-critical, and high-volume environments. At home in food processing, rfpathways.com Management manufacturing, apparel and textiles, and distribution industries, RF Pathways is 905-565-6560 System suited to meet the unique needs and business processes of single-site manufactur- ing companies as well as multi-warehouse environments.

70 Inbound Logistics • October 2007 COMPANY PRODUCT WHAT IT DOES Robocom Systems RIMS (Robocom’s Satisfi es the requirements of virtually any warehouse operation. As a brows- International Inventory er-based system operating on a variety of platforms, it is an easily maintained Farmingdale, N.Y. Management application that incorporates the latest technology. It provides a rapid return on robocom.com System) investment, immediate cost savings, and increased productivity. 631-753-2180

Royal 4 Systems W.I.S.E. Features bar-coding and RFID technology, database, hardware, and operating sys- Long Beach, Calif. tem independence, real-time WMS transactions, multi-site capabilities, as well as royal4.com various inbound, outbound, and internal functions. 562-420-9594

Sage Software Sage Accpac WMS Automates inventory-handling and order-fulfi llment processes, and helps users Irvine, Calif. better manage the supply chain. It works as part of a complete distribution system sageaccpac.com by interfacing with radio-frequency hardware, bar-code technology, shipping sys- 800-975-5441 tems, and other warehouse automation equipment.

SAP America SAP Warehouse Offers item management and queries and lets users defi ne unlimited price lists and Walldorf, Germany Management associate them with each customer or vendor. The software also records prices for sap.com System unique customers or from unique vendors, and enables users to set quality-sensi- 866-379-4715 tive prices. Operates as a stand-alone WMS or in conjunction with SAP’s ERP.

Sterling Commerce Networked Manages fulfi llment and distribution across an entire network of diverse facilities, Dublin, Ohio Warehouse from regional distribution centers to behind-the-store stocking locations. It gives sterlingcommerce.com Management organizations the ability to see the location of all the inventory in their fulfi llment 800-299-4031 network, in real time.

Technology Group Enterprise WMS Stand-alone or fully integrated, handles environments ranging from electronic dis- International tributors to cheese manufacturers. The system architecture empowers users to Toledo, Ohio achieve improved productivity and accuracy, while at the same time maintain ease tgiltd.com of use. 800-837-0028

TECSYS EliteSeries Empowers companies to gain control over customer service levels, warehousing Montreal, Quebec Warehouse costs, order turnaround time, throughput volumes, and most importantly — profi ts. tecsys.com Management EliteSeries’ integrated real-time WMS enhances enterprise visibility, enabling the 905-752-4550 System warehouse to become an extension of the order desk.

Westfalia Savanna.NET Confi gurability allows users to choose only the material fl ow modules they require. Technologies Inc. Systems can be expanded incrementally with full or partial upgrades. Interface add- York, Pa. ons include pick-to-light, wireless/RF terminals, and pick-to-voice components. westfaliausa.com 800-673-2522

WITRON WITRON Offers fl exible implementation and comprehensive warehouse functions. Multi- Arlington Heights, Ill. Warehouse language support for user interfaces enables the same platform to be used witron.com Management internationally. Its data structure drives transparency between all warehouse loca- 847-385-6000 System tions, while still maintaining warehouse-specifi c conditions.

YRC Logistics YRC Logistics Improves warehouse operations and optimizes labor, while supporting an enter- Overland Park, Kan. Warehouse prise’s distribution strategy. It has full-function distribution capabilities, including yrclogistics.com Management fl ow-through, forwarding, and inventory management. And it is EDI, XML and FTP 877-246-4909 System compatible, and can interface with ERP and TMS.

October 2007 • Inbound Logistics 71 The Shape of Things to Come in Package Delivery. Introducing Real Time Delivery™ from Velocity Express. It’s a new way to deliver almost anything almost anywhere -- at virtually any time. Velocity Express is the only national ground shipping provider dedicated exclusively to regional delivery. This unique structure enables us to combine the high-touch service culture of a local delivery provider with the high-tech tracking and proof-of-delivery systems of a large-scale consolidator. Experience the difference for yourself. Talk to a Velocity Express representative today. Call 888-839-7669 or visit www.velocityexpress.com

TM

SMALL PACKAGE • PALLET • DEDICATED • ON-DEMAND • HOME DELIVERY • SUPPLY CHAIN SOLUTIONS SETTING

SITESON TOMORROW

Third-parties and economic HEN RESTORATION HARDWARE RECENTLY DECIDED TO RESTRUCTURE ITS DOMESTIC DISTRIBUTION NETWORK development interests can help W to coordinate increasing online sales with a new foreign pro- curement strategy, it began looking for a location to set up a new DC. businesses look beyond Following a profi table year, the Corte Madera, Calif.-based home furnish- the basics to fi nd sites fi t for ings and hardware specialty retailer wanted to move fast, integrating the new facility with existing distribution installations in Hayward and Tracy, today and tomorrow. Calif., and Baltimore, Md., while phasing out a third-party-operated DC in Nashville, Tenn. Restoration Hardware turned to CB Richard Ellis (CBRE), a global leader in real estate services, to manage the site search and vet potential locations.

October 2007 • Inbound Logistics 73 Partnering with a third party can help when conducting site selection due diligence. Case in point: CBRE helped Canadian food distributor Loblaw locate this DC in Toronto, Canada.

Because most businesses invariably 800,000-square-foot distribution center companies need to consider their best have a regional sense of where they in West Jefferson, Ohio. Construction options for bringing product inbound want to be, “we generally begin the will begin this fall and the facility to the United States, then outbound to process by evaluating states; then pit- should be up and running by next customers: whether they want a DC ting them against each other,” says summer. The DC will be used primar- facility located near a major inbound Robert D. Hutson Jr., fi rst vice president, ily for fulfi llment to the company’s East port, or a warehouse farther inland, CBRE global supply chain practice, Los Coast retail stores and its non-furniture closer to demand. Angeles, Calif. direct-to-customer business. While demand may dictate distri- The goal, Hutson adds, is to create “The decision to locate outside bution strategy, companies need to the ultimate competitive environment Columbus, Ohio, is a signifi cant step be equally judicious scrutinizing loca- with a minimum of two to three states, in the planned transformation of our tions through specific site selection two to three counties within each state, supply chain and infrastructure,” says fi lters. They need to consider “a bal- two power companies if possible, and a Ken Dunaj, chief operating officer anced evaluation of transportation minimum of three specifi c sites within of Restoration Hardware. “Over the network cost – both inbound and out- each locale. next three years, we’ll be executing a bound – and the effect location has Most site selection projects require sequenced plan to drive greater service on service levels and speed to market,” a minimum of two years to identify a and productivity in our supply chain says Hutson. location, build the facility, negotiate the and build a network that can support Aside from location and transporta- lease, and take care of other administra- our long-term growth objectives.” tion infrastructure, acquiring minds tive details. But Restoration Hardware should also consider the labor market wanted to push the deadline forward. Looking Past the Present and its fi t with the company ethos; tax CBRE began doing site analysis and Increasingly, companies such as incentives; and whether to lease, buy, identifi ed three locations – Memphis, Restoration Hardware look at invest- or outsource, among other factors. Tenn., Savannah and Atlanta, Ga. – and ments in new DCs with an eye toward Given these challenges, businesses began sending out RFPs in these respec- designing stateside distribution chan- often engage commercial real estate tive markets. nels fl exible and responsive to shifting companies such as CBRE, 3PLs, eco- At the same time, Restoration sourcing strategies and emerging con- nomic development corporations, and Hardware was conducting its own sumer markets. Businesses large and even regional utilities to assist in navi- internal audit of transportation costs small need to consider the fl exibility of gating risk and cost assessment. and impacts. In May 2007, the com- their U.S. distribution networks, and In Nebraska, for example, prospec- pany decided it needed to look farther this begins with individual sites. tive companies can tap Nebraska Public north to best match its global growth For retailers such as Restoration Power District’s (NPPD) economic initiative with domestic demand. CBRE Hardware, the stakes are greater because development team to research avail- rolled with the new requisition, found product fads and lifecycles are highly able properties, energy and labor costs, an appropriate site, then brokered the variable and unpredictable. Therefore, community information, and indus- lease arrangement. consumer drivers dictate where and try profi tability studies, says Dennis G. In August, Restoration Hardware how they locate warehouse sites. But Hall, economic development manager, signed a 15-year lease for a new given the high cost of transportation, Nebraska Public Power District.

74 Inbound Logistics • October 2007 The utility’s economic development and accessibility then become impor- more effi cient by reducing time on the consultants can key businesses in to the tant considerations. ground and cost of operations. state’s myriad tax incentives. NPPD also Mid-America St. Louis Airport has Currently, shippers are charter- hosts a free, interactive, online data- made it a point to sell prospective ing cargo fl ights into Mid-America St. base that provides community profi les customers on this account. Having Louis Airport to serve as a backup for featuring basic economic and demo- intermodal transportation access is more congested air cargo hubs. The graphic data for every incorporated becoming more important for ship- value proposition for alternative air- town in Nebraska. pers, notes Tim Cantwell, director of ports capable of handling international the Mid-America St. Louis Airport. freight as well as facilitating domestic Creating Contingency Options “People listen to multi-modal discus- distribution is considerable, and ulti- But one criterion that often slips sions,” he says. mately part of Mid-America St. Louis through the cracks in site selection is With four Class 1 railroads, immedi- Airport’s long-term growth strategy. contingency planning. “For example, ate access to I-64, I-44, I-55, and I-70, Shippers are equally eager to find what role will the new DC play in dif- and an emerging air cargo business, these sites. “Companies are looking for ferent disaster scenarios? How fl exible the St. Louis region offers shippers and a central distribution point with trans- is the overall network? Is there room consignees multiple options to move portation capabilities in place so they for expansion on the site? What if the product domestically and globally. can come in and saddle up to the exist- company’s foreign procurement strat- Given its central U.S. location, St. ing infrastructure,” observes Cantwell. egy changes– will this new facility still Louis has always been advantageous for But as Restoration Hardware can be useful and effi cient in that scenario?” businesses moving product in and out attest, maximizing the future potential asks Hutson. of the Midwest and contiguous markets of a DC yet to be seen requires a con- Especially today, businesses need in the East. Now it has the capabilities crete understanding of an enterprise’s to be particularly aware of how their to be an international transshipment long-term vision and, often, third-party DCs can respond to contingency point for air cargo as well. The debut expertise to provide objective due dili- sourcing strategies in case of a supply of a 3,600-acre foreign trade zone gence. Even then, plans can change. chain exception or unexpected spikes (FTZ 31) and an on-site U.S. Customs “Ultimately, you can’t cookie-cut site in demand. Transportation fl exibility Service make global air cargo transfer selection,” says Hutson. ■

October 2007 • Inbound Logistics 75 
 
      


 

   
  


 
"

 
" 
 
 


 
  

   








 
   

 
 

 

 "


  
 

 

! 
   !  

"
"
 



"  

 

  
"
 

 
 "



 

 
  

   
 
 "


! 

  ! 



"
 




 
 

  
 
" 


 
  


#
 


!
! 
! 

 !  
 
!#

  #

 



 !
"   

 
"   
" 
 
"  
   DCSOLUTIONS

by Amanda Loudin

Blue Bell Creameries Licks Its Storage Shortage

othing hits the spot on a hot and a big birthday bash at the com- summer day like a bowl of ice pany’s Brenham, Texas, headquarters N cream, and no one knows this round out the list. better than people living in the South. With such a popular product, Blue That’s what drove a group of Texans Bell has to keep its production and to establish the Brenham Creamery distribution facilities in top shape. So Company 100 years ago and begin when its main distribution center in producing ice cream for delivery to Sylacauga, Ala., needed to grow with A new ASRS helps neighbors by horse and wagon. the company, the search began for the In 1930, the company changed its right solution and technology. Blue Bell Creameries name to Blue Bell Creameries after the native Texas bluebell wildfl ower. THE COLD FACTS continue its long history as Since then, Blue Bell has become an The main Blue Bell DC covers the American success story, carrying more majority of a 15-acre campus. Some one of America’s favorite than 50 ice cream fl avors, numerous 200 employees work two shifts to frozen snack items, and sugar-free/low- move ice cream from the production ice cream producers. fat lines of ice cream. The company’s line to storage, then out to customers Here’s the scoop. products are available throughout the and 17 smaller DCs. Customers include South, totalling about 20 percent of supermarkets, convenience stores, and the nation’s supermarkets. Even with restaurants. Blue Bell provides direct- limited availability, Blue Bell ranks as store delivery, so the company has one of the top three best-selling ice control of the product all the way to cream brands in the country. the end customer. Blue Bell Creameries is celebrating As you would expect with an ice its 100th anniversary throughout the cream DC, the majority of the stor- year with a variety of activities. A trav- age space is kept extremely cold – at -20 eling exhibit, a fl avor-naming contest, degrees Fahrenheit. The DC aims to send special anniversary ice cream fl avors, orders out within two days of receipt.

October 2007 • Inbound Logistics 77 DCSOLUTIONS ‹ CONTINUED FROM PAGE 77

The DC was operating with about port pallets from the production area to The system is designed with two 3,000 pallet spaces. Those spaces, how- the ASRS in the freezer space. storage retrieval machines (S/RMs) ever, were quickly fi lling up with Blue In all, the conveyor system includes an operating in one aisle. Each S/RM oper- Bell’s growing volume. automatic label applicator, pallet trans- ates in its designated working half with “Because of the anticipated increase port and accumulation conveyors, and a safety zone mid-aisle to prevent col- in effi ciency, and our space constraints, a transfer car (T-car) that distributes pal- lision. This design provides the benefi t we knew that we needed to build up lets two at a time toward the ASRS or to of redundancy so that if one machine to gain more storage space,” says Kevin an existing conventional freezer. is down for maintenance the other can Wood, Blue Bell’s general manager. gain access to the balance of the aisle. “We already operated a crane system in GOING UP For this particular operation, each our Brenham production facility, so we After completing the conveyor S/RM transports pallets two at a time, were familiar with potential options for installation, Westfalia built the ASRS. which provides a throughput capacity increasing space.” “The system is nine levels high and of 100 pallets per hour per S/RM. Wood and his team decided to focus comprises more than 7,000 pallet stor- The system is also designed to handle on automated storage retrieval systems age locations in 14,000 square feet of multiple pallet sizes. Blue Bell’s pallets, (ASRS), and explored various providers freezer space,” says Hinchey. for instance, measure 36 by 40 inches, for the right solution. The combina- tion of automation and experience in a freezer environment helped Blue Bell select Westfalia Technologies, York, Pa., as its partner. The project was broken down into two phases. “The initial phase included a pallet conveying system, which was necessary to bridge the 400-foot distance between production and the new ASRS,” explains John Hinchey, vice presi- dent of sales, Westfalia. The conveyors trans-

THE BIG CHILL. It has been 100 years since Blue Bell Creameries began delivering ice cream to neighbors in the South. Today, the company has optimized its cold-storage space with a new ASRS from Westfalia Technologies.

78 Inbound Logistics • October 2007 while the Grocery changed the compa- Manufacturers ny’s productivity for Association (GMA) OUR QUALITY IS A REFLECTION the better, according pallets that also come to Wood. through the facility OF OUR HISTORY “We used to bring are 48 by 40 inches. product to the In addition, the sys- palletizer and shrink- tem was designed to wrapper, then place provide three points it on the conveyors,” of support for pallets he explains. “Then when products are in a forklift operator the rack storage. “That would pick up the adds a degree of reli- product and place it ability for Blue Bell in the racks.” because it eliminates Now, once the pallet deflection,” products have gone notes Hinchey. through the pallet The ASRS utilizes and shrink-wrap sta- Westfalia’s Satellite tions, they move to load transporta- the new conveyor, tion vehicle, which is which transfers them designed to store pal- to the ASRS and stores lets eight or 10 deep in them automatically. the racks for a total of When it comes time 7,000 positions. to pick, the WMS calls “This is a huge for the product, and improvement for us,” the ASRS delivers it to says Wood. “During the conveyor. our busy summer sea- “The system helped son we don’t use all of THINGS ARE EASY WHEN YOU HAVE THE BEST us reduce forklift traf- those spaces, but in TRUST THE WORLD’S NUMBER ONE TERMINAL TRACTOR fic by 80 percent,” the winter the extra says Wood. “There is storage capacity will also less product dam- be welcome.” We really do make things easy. Since 1958, our age and huge labor Running the number one goal is to be the industry leader in savings.” entire operation is quality and innovative trailer spotter solutions. In the future, Blue The Kalmar Team continuously invests in product Westfalia’s Savanna. developments to make terminal operations easier, Bell will further NET warehouse man- more cost efficient and more productive. With a full enhance its new sys- agement system, range of quality products, it’s easy to see why our tem with a wireless which controls, tracks, customers have helped us become the best material inventory solution for handling company in the industry. and records prod- its packaging material uct movement from For more information about Kalmar Terminal Tractors inventories. In addi- system entry to exit. and other Kalmar products and services, or to visit tion, the company will Savanna.NET replaced a local Kalmar dealer, call toll-free 888.229.6300 or replace manual pallet- Blue Bell’s legacy visit www.kalmarind-northamerica.com. izing operations with WMS, which operated a robotic palletizer. in the mostly manual Overall, Wood is environment. The happy with the new new WMS is modular, consisting of modules such as order picking. system. “This is an excellent solution,” a central “base” of logistics functions, The new system was installed seam- he says. “We will use it to push company which can be expanded and adapted lessly because it was an addition to Blue growth forward and increase sales.” to specifi c customer needs by adding Bell’s existing retrieval operation. It has And that’s a delicious ending. ■

October 2007 • Inbound Logistics 79

L.I.T.TOOLKIT

by Merrill Douglas

Creating Calm from Chaos

hen you’re shopping for logis- Delainey, the company’s operations tics software, should you manager. “It took a while to organize.” W choose a package that you But the effort paid off. “Inventory can mold to the way you do business? is easier to fi nd, and the warehouse is Or should you revamp your business more effi cient,” he says. to take advantage of a great technol- With the new capabilities Latitude ogy solution? provides, Red-L is accomplishing more As with most weighty questions, the in the warehouse with less effort. The By automating and answer depends on whom you ask. system also has helped create a cleaner, Many logistics software vendors tout safer, less stressful environment, mak- reorganizing its the fact that they can confi gure their ing it easier to recruit, train, and hold software to accommodate the way you on to good employees. warehouse, Red-L run your operation today; you don’t have to change a thing. GETTING HOSED Distributors cuts costs Yet, some businesses are ripe for Red-L distributes hoses and hose fi t- and creates a cleaner, change, and the people who run them tings to customers in Alberta, British are glad to move mountains – or racks Columbia, and Saskatchewan. It also safer, less frantic and bins – if that helps them operate fabricates hose assemblies and sells a more effi ciently. host of related products, such as hand work environment. That’s what happened when Red-L and power tools, lubricants, lubrication Distributors implemented the Latitude equipment, janitorial and sanitation warehouse management system from supplies, and skin care products. Its PathGuide Technologies, Mukilteo, customers include resellers, equip- Wash., at its distribution center in ment rental companies, and end users Edmonton, Alberta, Canada. in manufacturing, forestry, oil fi eld ser- “We had to reorganize to make the vices, oil drilling, and agriculture. warehouse match the software, so it Besides its main facility in Edmonton, would work more effi ciently,” says Jason Red-L operates from seven other

October 2007 • Inbound Logistics 81 L.I.T.TOOLKIT ‹ CONTINUED FROM PAGE 81 locations – each with a showroom and company’s chief executive offi cer. by Intermec and Motorola/Symbol warehouse – and from a mobile trailer PathGuide’s executives also have Technologies. PathGuide also can that delivers products to customers’ long experience working with auto- accommodate other brands as needed. work sites. mated data capture systems, such as the “As long as the existing hardware is con- Red-L offi cials implemented Latitude radio frequency terminals its custom- temporary and programmable, we do to complement Activant Prophet 21 (P21), ers use with Latitude. Allais spent 18 what we can to preserve it,” Allais says. an enterprise resource planning system years working in marketing at Intermec An important part of implementation for wholesale distributors that the com- Technologies. His father David served is a three-day training session PathGuide pany bought three years ago. It installed as CEO and later chairman at Intermec offers at its Mukilteo facility. “We set up P21 to replace a 20-year-old enterprise before founding PathGuide. a warehouse environment that simulates system that no longer provided all the PathGuide markets Latitude par- the customer’s own facility,” says Allais. necessary functions, says Guy Ludwig, ticularly to distributors with annual PathGuide developers integrate the WMS Red-L’s president of operations. revenues in the $30-million to $300- with the customer’s chosen ERP, so per- sonnel can practice using the system as they would at their own site.

PHASING IT IN Generally, PathGuide installs the software at the customer’s site in two phases. The first phase covers base- level software and receiving functions. “That allows customers to label their product and bin locations and begin receiving product,” Allais says. In about 30 days, PathGuide returns to install phase two, typically a go-live scenario where the customer performs full putaway, picking, and shipping. Red-L and PathGuide spent nearly four months getting the system up and running; it went live on April 1, 2007. Reorganizing the warehouse was a crucial early step. The facility actually Before implementing the Latitude system, workers were forced to make multiple trips comprises three buildings, and in the old across three facilities to pick orders. Today, workers in one building can pick goods for days, pickers often had to make multiple numerous orders in a single trip, using handheld terminals. trips among all three to fi ll an order. “Forklifts were racing across the back Adding a WMS would help increase million range, Allais says. The system yard at the best speed they could do,” warehouse efficiency. “We knew we manages all core WMS functions, such says Rick Lafrance, Red-L’s vice presi- could do a lot better with the number of as receiving, putaway, cycle counting, dent of information technology. workers we have, and gain more effective picking, and shipping. Latitude organizes its facility into inventory management,” Ludwig says. When companies install the system, zones. Guided by the display on an Offi cials at Red-L chose PathGuide they usually deploy 60 to 70 percent Intermec handheld terminal, a worker to implement the WMS because of its of the functions just as they come out stationed in one building can pick goods experience integrating its system with of the box. For the rest, developers at for numerous orders in a single trip. P21. “There are other WMS vendors as PathGuide create custom functions, “Recently, a worker picked 15 orders well, but PathGuide seemed to be the which the company then incorporates at one time,” Ludwig notes. “In the past, best fi t,” Ludwig notes. into future releases. picking 15 orders would have required PathGuide specializes in providing “Once we develop a function for one 15 round-trips.” and tailoring systems for industrial dis- customer, we make it available to every- Because the software manages sup- tributors. “We understand the business, one,” Allais says. plier errors more accurately than the old, it’s all we do. We don’t sell into manu- Latitude operates with a range paper-based process could do, Latitude’s facturing,” says Eric Allais, the software of handheld terminals supplied receiving functions have helped Red-L

82 Inbound Logistics • October 2007 I use it improve its quality assurance program. Now, if receivers fi nd a shipment error, they send an instant message to the every day. appropriate person in the purchasing department instead of fi lling out a mountain of paperwork. “The purchaser can deal with an error before the order is even received, without the ineffi ciency of our receiver track- ing down someone who can handle it,” Delainey says. Other functions that Latitude has automated for Red-L include serial number tracking and lot tracking for prod- ucts that require it. By tracking serial numbers on drilling hoses, Red-L provides valuable information to custom- ers – for example, giving an inspector information on how a unit fared during factory testing. Lot tracking helps Red-L keep tabs on individual lengths Of all the resources I use of hose. If an order arrives for 15 feet of hose, and the sys- Select from more than 20 tem shows there’s a 15-footer in stock, staff can pull that to make a difference in accelerated bachelor’s piece, rather than cutting a 20-foot piece and wasting the logistics today, the one degrees and 12 master’s remainder. “We used to throw away about $100,000 a year I use the most is what degrees online including in industrial hose,” Lafrance says. “This year, I doubt we’ll these for Logistics throw out even $15,000.” I learned through professionals: With the increased effi ciencies that Latitude brings to Bellevue University. • Bachelor of Science in Red-L, the software should pay for itself within one year, Logistics Management Ludwig predicts. My degree gave me the • MBA with a SOFT BENEFITS knowledge and concentration in Along with hard benefi ts such as greater productivity confi dence to take the Supply Chain and inventory control, Latitude provides the softer, but no lead in my job, making Management less important, benefi t of improved working conditions. a difference every day. “Most days, the older system caused chaos,” Delainey recalls. “Employees were working themselves to the bone, because they were running around ineffi ciently. The envi- ronment was stressful and tempers were blowing because workers had a lot to do and little time to do it.” Today, employees work at a steady pace, and the greater Call 800-756-7920 sense of order has promoted a cleaner, safer environment. to enroll today. “Workers don’t feel pressured to cut corners,” Delainey says. “They actually have time to drive a forklift properly, or pull a product out safely.” Because Latitude promotes a pleasant work environment, and provides specifi c directions that make jobs easier to do, Red-L has also gained an edge in hiring and keeping good employees. Given Alberta’s booming oil industry, that’s no easy task. “You can’t drive down one street in Edmonton without seeing a Help Wanted sign,” Lafrance says. With a tool such as Latitude, employees don’t need exten- sive knowledge to do good work in the Red-L warehouse, he adds. And, because the software helps keep stress levels low, Real Learning for Real Life employees are more likely to stick with the company. For the future, Red-L expects to extend Latitude to the www.bellevue.edu warehouses in its branch locations. But fi rst, offi cials plan to explore Latitude functions they haven’t tapped yet, such as shipping, replenishment, and cycle counting. “We’ve only scratched the surface,” Ludwig says. ■

October 2007 • Inbound Logistics 83 TECHUPDATE THE LATEST IN LOGISTICS TECHNOLOGY

THE VALUE: ToolsGroup and INSIGHT Inc. have entered a partnership com- bining supply chain network and inventory optimization to drive value for large, global companies. ToolsGroup’s DPM inventory optimi- zation technology, integrated with INSIGHT’s SAILS supply chain plan- ning suite, enables companies to rationalize their end-to-end distri- bution network and simultaneously optimize inventory. u www.toolsgroup.com ✆ 617-494-0080 u www.insight-mss.com ✆ 703-366-3061

software Best Way Technologies Inc. WHAT’S NEW: ProShip ILS. THE VALUE: ProShip ILS enables fast, precise black-box implementation of shipping systems. ProShip ILS is FKI Logistex partnerships both an application and an applica- WHAT’S NEW: The addition of pick-to- tion programming interface. ILS, a light order fulfi llment capability to the Avery Dennison and RedPrairie .NET application, allows integrators to Warehouse Software Suite’s (WSS) Pick WHAT’S NEW: A partnership to create script and house a significant amount Manager module. an RFID solution for a pharmaceuti- of carrier and shipping business rules THE VALUE: Pick Manager now cal line. outside of a host-client black box. By coordinates order fulfillment operations THE VALUE: Avery Dennison’s communication through Web services using the FKI Logistex Trak3 pick-to-light Monarch 9855 RFID printer/encoder or a socket, ProShip ILS provides addi- system. WSS Pick Manager integrates and RFID supplies have been combined tional integration protocol options. Trak3 pick-to-light hardware with easy-to- with RedPrairie’s enterprise software u www.bestwaytech.com ✆ 312-203-3232 use planning, execution, and monitoring to provide a solution for a leading software tools. With built-in features pharmaceutical supplier. By integrat- Rand McNally for wave picking, pick-and-pass, and ing Monarch brand printers with WHAT’S NEW: Nearly 70,000 updates to productivity management, WSS allows RedPrairie software, the partnership IntelliRoute and MileMaker software. users to add pick-to-light capability ensures the supplier, and additional THE VALUE: To help shippers and car- that maximizes productivity, speed, and users, will have reliable RFID printing riers keep on top of highway changes, accuracy. and encoding capabilities. Rand McNally has enhanced its u www.fkilogistex.com u www.averydennison.com ✆ 626-304-2000 IntelliRoute and MileMaker software ✆ 877-935-4564 u www.redprairie.com ✆ 414-915-6016 products with nearly 70,000 updates to its road network, toll roads, truck ToolsGroup and INSIGHT stops, and weigh station information. WHAT’S NEW: A partnership to drive The 2008 update comes complete value for Fortune 500 companies. with new HHG miles and routes

84 Inbound Logistics • October 2007
   
   
 

                            !             "       #                 !     #                      

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

             
 TECH UPDATE ‹‹ CONTINUED FROM PAGE 84

based on the new Household Goods Mileage Guide rules established by the American Moving and Storage Association. u www.go.randmcnally.com/2008update ✆ 800-333-0136

Accu-Sort Systems Inc. WHAT’S NEW: FAST Suite Enterprise. THE VALUE: This Web-based software tool provides quick and easy access to critical operational data about auto- mated materials handling systems. FAST Suite Enterprise allows users to make informed decisions on how to Brady Corporation improve efficiency and throughput WHAT’S NEW: The IP Series printer system. by allowing access to operating infor- THE VALUE: Here’s a thermal transfer industrial printer that utilizes smart cell technology, mation about their sortation and enabling the printer, material, ribbon, and software to communicate together. With these production systems from anywhere in printing capabilities, users can load the material, click the software interface, and print a the world. variety of labels, tags, and sleeves. u www.accusort.com u www.bradycorp.com ✆ 800-541-1686 ✆ 800-BAR-CODE

Prophesy Transportation Solutions WHAT’S NEW: The addition of a real- tions. The Latitude slotting module its full line of inventory management time load-posting module to Prophesy identifies the most efficient location software products. Calls for technical Dispatch software. for inventory within the warehouse support are handled by its national THE VALUE: The addition allows users based on a number of product and call center, which dispatches a FastPic to post loads and equipment to mul- storage characteristics, as well as prod- software technician to handle the tiple third-party posting sites and uct demand. issue. FastPic Systems provides com- eliminates the time-consuming task u www.pathguide.com ✆ 888-627-9797 plete technical product support at no of re-keying the same information to charge during normal business hours, different sites. It also lets users flag SYSPRO 8 a.m. to 5 p.m. Monday through and automatically post and un-post WHAT’S NEW: Enhanced CRM Friday, as part of the software licens- their loads and equipment directly software. ing agreement. from the Prophesy Dispatch software. THE VALUE: Enterprise software pro- u www.fastpicsystems.com u www.mile.com vider SYSPRO has enhanced its ✆ 207-854-8663 ✆ 800-776-6706 Customer Relationship Management (CRM) solution. The upgrades enable Sage Software PathGuide Technologies manufacturers to more easily comply WHAT’S NEW: The release of Sage PFW WHAT’S NEW: The PathGuide Latitude with FDA regulations, in addition to ERP 5.6. 8.0 slotting optimization module. promoting ease-of-use, increased effi- THE VALUE: A new version of Sage PFW THE VALUE: PathGuide Technologies’ ciency, and added system security. ERP features key, customer-focused new slotting software module helps u www.syspro.com ✆ 800-369-8649 enhancements within its core busi- small to mid-sized distributors bene- ness management, distribution, and fit from increased pick productivity, FastPic Systems manufacturing modules. Sage PFW improved warehouse safety, and WHAT’S NEW: Optional 24/7 emer- 5.6 provides many new ways for small maximized inventory efficiencies gency technical support. and mid-sized businesses to improve traditionally reserved for large-scale THE VALUE: FastPic Systems now offers user efficiency, increase system per- warehouse management installa- 24/7 emergency technical support for formance, and better manage their

86 Inbound Logistics • October 2007 THE LATEST IN LOGISTICS TECHNOLOGY

To learn more, contact these companies directly. Remember to mention this issue date and page to get the right information.

operations, including new vendor and added a University of Phoenix link to users have immediate access to critical customer status and order hold fea- its Web site for members interested in information. SCM Demand Planning 6.2 tures; new user efficiency features; online classes and programs offered by also introduces Action Memos, which improved overall system performance; the largest private university in North provide an embedded workflow lead- and better auditing and data tracking. America. ISCEA members worldwide ing to faster resolution of events. u www.sagepfw.com now have access to various courses and u www.infor.com ✆ 866-244-5479 ✆ 800-477-5700 degree programs in business, global management, operations, supply chain hardware web management, technology, and more. Courses will be offered through the Advantech Jungheinrich Lift Truck Corporation University of Phoenix online format WHAT’S NEW: The release of the ARK- WHAT’S NEW: A free Web tool that at nearly 200 campuses and learning 1000 series of box computers. compares total cost of ownership centers. THE VALUE: The ARK-1000 series’ between various truck technologies. u www.phoenix.edu/info/iscea/00_Home.asp small, powerful all-in-one fanless sys- THE VALUE: To help prospective fork- tems are designed for rugged and lift buyers see the appreciable cost Infor space-critical applications in auto- advantages of owning an AC electric WHAT’S NEW: The availability of Infor mation control and wireless gateway truck over a vehicle operating on an SCM Demand Planning 6.2. applications. A solid, sealed alumi- IC engine (LPG/diesel) or DC electric THE VALUE: Infor SCM Demand num case offers vibration and water technology, Jungheinrich’s free, sim- Planning 6.2 is a Web-enabled, col- resistance. The ARK-1000 series pro- ple-to-use tool calculates total cost of laborative solution that provides an vides system integrators with a ownership. It further measures own- accurate picture of demand to drive turnkey solution and versatile appli- ership associated with various kinds production, inventory, distribution, cation development path without of forklifts over a five-year period. and buying plans across the enterprise. breaking the bank or missing time-to- u www.lift-truck-cost-tool.com The solution now includes role-based market deadlines. exceptions management to ensure u www.advantech.com ✆ 949-789-7178 National Motor Freight Traffi c Association (NMFTA) WHAT’S NEW: The latest version of the Use booking code ClassIT classifi cation product. 10389.002XY76 to register THE VALUE: ClassIT 2.0 is the latest Improving Force version of the National Motor Freight Effectiveness Through Classification (NMFC) online pric- Enhanced Logistics ing tool that evaluates and classifies all commodities shipped and han- How will your performance improve by attending dled by motor freight carriers moving Defense Logistics? in interstate, intrastate, and foreign ➔ You’ll gain a better understanding of commerce. The new release features how can you leverage commercial industry expertise to continue to meet enhanced capabilities including rapid your customers’ changing needs. And WHEN: November 26, 2007: response time, embedded search find out what strategies can you employ The Synchronized Supply Chain Day today to increase support levels. terms, expanded search options, page- November 27-28: The Main Program ➔ You’ll examine how to leverage the through capability of NMFC content, November 29: The PBL, Maintenance & aggressive implementation of Lean Six Sustainment Day Sigma principles and underline both and a single-item print function. successes and challenges along the way. u WHERE: The JW Marriott Pennsylvania www.nmfta.org ✆ 866-411-6632 Avenue-Washington, D.C. ➔ And finally you’ll expand the limits of your understanding of what is possible by focusing on future developments ISCEA and University of Phoenix that will have an impact on our logisticians and Warfighters. WHAT’S NEW: A dedicated Web site to support ISCEA programs. To register: Call: 888-482-6012 or 973-812-5153 Fax: 973-256-0205 THE VALUE: The International Supply Email: [email protected] Web: www.defenselog.com Chain Education Alliance (ISCEA) has

October 2007 • Inbound Logistics 87 Intermodal Expo & TransComp Join us this November for the 25th anniversary of the Intermodal Expo and the TransComp Exhibition, the year’s most valuable transportation industry event. November 11-13, 2007 in Atlanta, the South’s most dazzling city, at the Georgia World Congress Center.

LIMITED EXHIBIT SPACE AVAILABLE!

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

For more information contact:

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

The Intermodal Expo and TransComp are held in cooperation with NITL's 100th Annual Meeting, IANA's Annual Membership Meeting, and TIA's Fall Meeting. NEWSERVICES YOUR BUSINESS LOGISTICS RESOURCE

transportation management; and just-in-time or emergency response delivery. u www.menloworldwide.com ✆ 650-378-5418

Waltco Truck Equipment Co. WHAT’S NEW: The Waltco Direct Lift (WDL) Extra Tough (XT) rail-type liftgate. THE VALUE: New design features enhance the performance, reliability, and ease of use of the Waltco WDL-XT. The liftgates, designed for demand- ing applications, are available in four weight capacities – 3,500, 4,500, 5,500, and 6,500 pounds – and in both steel and aluminum platforms. u www.waltco.com ✆ 330-633-9191

China Shipping Container Line WHAT’S NEW: The fi rst of fi ve new ves- sels makes its maiden call at the Port of Los Angeles. THE VALUE: The Xin Ya Zhou is the first in a series of five new environ- mentally friendly vessels to join Nissan Forklift China Shipping’s fleet. The Xin Ya WHAT’S NEW: Low-emission Platinum II Zhou can accommodate up to 8,528 Series lift trucks. TEUs, including up to 700 refriger- THE VALUE: The Platinum II Series Menlo Worldwide ated containers. The ship joins China from Nissan Forklift delivers emission WHAT’S NEW: An expansion of opera- Shipping’s weekly Central Asia- results that far exceed EPA requirements tions in Amsterdam. America service with scheduled calls established for 2007. In addition, Nissan THE VALUE: Menlo Worldwide has at Los Angeles, Oakland, Ningbo, has expanded its family of diesel industrial opened a new 70,000-square-foot Nansha, Yantian, and Shanghai. engines with the QD32 diesel engine, facility at the AMB Douglassingel u www.chinashippingna.com ✆ 888-712-7811 available in larger-capacity pneumatic Distribution Center near Amsterdam’s Platinum II models. The powerful, clean- Schiphol Airport. The multi-client Schenker of Canada burning QD32 offers improved fuel center becomes the company’s new WHAT’S NEW: An increase in air consumption and emission levels below European headquarters. Primary ser- cargo capabilities and services across 2008 EPA diesel requirements. vices provided at the new facility Canada. u www.nissanforklift.com include: bonded warehousing; inven- THE VALUE: Earlier arrivals and later ✆ 815-568-0061 tory control and supply chain flow departures in each city currently management; receiving, storage, pick being serviced, and the addition of and pack, shipping, customer ser- a dedicated aircraft for the Schenker vice; product staging, fulfillment and hub in Vancouver, British Columbia,

October 2007 • Inbound Logistics 89 NEWSERVICES ‹‹ CONTINUED FROM PAGE 89

are among the improvements to 9 a.m., noon, or 3:30 p.m. All services Venezuela, Panama, and Colombia Schenker of Canada’s air fleet network are backed by USF Holland’s no-has- will follow in the near future. services. The improvements affect ser- sle, claim-free guarantee to be on time u www.ctsi-global.com ✆ 901-766-1500 vices to and from the United States and intact, or no invoice will be sent. and within Canada. u www.yrcreg.com ✆ 616-395-5000 New Age Electronics u www.schenker.ca ✆ 800-461-3686 WHAT’S NEW: The opening of an East CTSI Coast warehouse. USF Holland WHAT’S NEW: A global expansion. THE VALUE: Dayton, N.J., is home WHAT’S NEW: The launch of new guar- THE VALUE: CTSI, a supply chain to New Age Electronics’ fourth U.S. anteed and expedited services. information services provider, has warehouse facility. The new distri- THE VALUE: USF Holland, an established three new foreign offices bution center enables New Age to operating unit of YRC Regional to support increasing demand for maintain a greater quantity and Transportation, has launched new global solutions. These CTSI-owned- assortment of consumer electron- guaranteed and expedited service and-operated offices are located in ics products within the region, while offerings, including expedited next- Limerick, Ireland; Chenai, India; providing resellers with same-day, day service up to a 750-mile range, and Xiamen, China. The company next-day, and will-call delivery ser- and time-specific guaranteed delivery plans to open locations in Mexico vices. With the launch, New Age also on standard transit times before and Brazil in the next few months; provides increased staffing, transpor-

APM Terminals Virginia WHAT’S NEW: A 55-foot deepwater terminal in the Hampton Roads, Va., area. THE VALUE: APM Terminals has officially opened its $450-million, 291-acre container terminal to serve the Hampton Roads region. This maritime center — the third-largest container terminal in the United States — is capable of handling one million TEUs annually. New technology at the terminal is designed to keep workers and drivers safe, while expediting cargo movement through use of advanced handling equipment. u www.apmterminals.com ✆ 973-514-5202

90 Inbound Logistics • October 2007 YOUR BUSINESS LOGISTICS RESOURCE

To learn more, contact these companies directly. Remember to mention this issue date and page to get the right information.

tation, and inventory management 30 acres in authorized space, Bender The Evans Network of Companies services, along with 30,000 square can offer FTZ services to its existing WHAT’S NEW: A state-of-the-art truck- feet of dedicated warehouse space. and future clients operating in inter- ing terminal in Chesapeake, Va. u www.newageinc.com ✆ 888-234-0300 national trade while enhancing the THE VALUE: Unlike other transporta- growth of the Reno-Sparks and Lake tion companies that rent a facility or Saddle Creek Corp. Tahoe region. yard space, Evans now has a perma- WHAT’S NEW: The opening of a cross- u www.bendergroup.com ✆ 800 621-9402 nent home in Chesapeake, opening a dock operation in Florida. trucking terminal inside the Cavalier THE VALUE: Third-party logistics Allyn International Services Inc. Industrial Park. The facility is fully company Saddle Creek Corp. has WHAT’S NEW: The formation of a 3PL fenced with a self-propelled, gated completed construction of a high-vol- department within the logistics ser- yard providing access via ID card 24 ume cross-dock at its Lakeland, Fla., vices division. hours a day. The terminal also fea- headquarters. The 98,600-square- THE VALUE: Allyn’s new 3PL team tures an on-site repair shop. foot facility is designed to provide will initially focus on third-party u www.evansdelivery.com ✆ 570-385-9048 distribution services for a perish- transport and logistics, mainly able foods manufacturer. Designing servicing customers with special- Arpin International Group the new facility exclusively as a true ized cargo requirements. The 3PL WHAT’S NEW: The opening of a cus- cross-dock results in labor savings, as department offers a complete range tomer service offi ce in Houston. product is loaded continuously rather of trucking, rail, air, and ocean THE VALUE: Arpin, a global house- than being stored for several hours on transportion services. The cross- hold goods forwarder, has opened a the floor. functional 3PL team, with offices customer service office in Houston. u www.saddlecrk.com ✆ 863-665-0966 in Fort Myers and Prague, will work Driven by the company’s global closely with Allyn International expansion, the Arpin Houston office BDP Italia SpA offices worldwide to secure the best has been established as the first to WHAT’S NEW: A Malpensa, Italy, offi ce. transportation solutions for interna- accommodate clients in the Central THE VALUE: BDP Italia SpA, part of tional shipments. Time Zone. global logistics management com- u www.allynintl.com ✆ 239-489-9900 u www.arpinintl.com ✆ 281-880-4901 pany BDP International, has opened an office at the Avioport Logistic Park of Lonate Pozzolo-Malpensa (Varese). The office expands BDP’s Italian net- work with headquarters in Milan and branches in Bologna, Florence, Turin, and Vicenza, and leverages its strate- gic location to support the entire BDP Italia organization. u www.bdpinternational.com ✆ 215-629-8493

Bender Group WHAT’S NEW: The activation of a Foreign Trade Zone. THE VALUE: Third-party logistics pro- vider Bender Group has activated FTZ operations at its Reno, Nev., facility. The initial footprint cov- ers 191,125 square feet, of which Audiovox Electronics Corporation is using approximately 75,000 square feet for electronics, parts, and acces- sories. With potential to expand to

October 2007 • Inbound Logistics 91 IN THIS SECTION: 3PLs

3PLS

Agility Logistics • www.agilitylogistics.com

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

BNSF Logistics • www.bnsfl ogistics.com

BNSF Logistics creates, implements, and executes high-value logistics solutions for customers by utilizing experienced logistics professionals; leading logistics technology; multi-modal execution including LTL, truckload, intermodal, and rail; and a deep understanding of its clients’ business. Ultimately, blending these factors together enables BNSF Logistics to become your most valued partner – the most critical link in your supply chain. Visit www.bnsfl ogistics.com for more details.

Maersk Logistics • www.maersklogistics.com

At Maersk Logistics, we combine our international transport and logistics experience, innovative information technology, worldwide reach, and strong local operations to help you improve the effectiveness and effi ciency of your supply chain. To cater to your unique needs, we offer decades of industry-leading supply chain experience in the retail, wholesale, apparel, electronics, refrigerated goods, consumer health care, and furniture indus- tries. Our worldwide infrastructure includes over 20.6 million square feet of strategically located warehousing and consolidation space in Asia and Europe. Our acclaimed visibility solutions, offering end-to-end supply chain visibility, blended with our experience, bring you a truly effective product.

Schenker • www.schenkerusa.com

The integration of Schenker AG and BAX Global has created a new global logistics and transportation solutions powerhouse. Enviable rankings in stra- tegic industry mobility and logistics service sectors include: No. 1 in European land transport, No. 2 in worldwide air freight, and No. 3 in worldwide ocean freight, and No. 3 in integrated heavyweight freight in North America.

92 Inbound Logistics • October 2007 IN THIS SECTION: 3PL WMS – Ocean/Intermodal

3PL WMS

3PL Central • www.3plcentral.com

Introducing a WMS built exclusively for third-party logistics providers and public warehouses. Increase productivity, reduce costs, and enhance your customer service with 3PL Warehouse Manager™, the fi rst on-demand warehouse management system created for small and mid-size public warehouses. 100-percent Web-based 3PL Warehouse Manager requires no investment in software or IT resources, and can start transforming your business from the moment you subscribe. To learn how much money, time, and effort 3PL Warehouse Manager can save your fi rm, try it free for 30 days. Visit the Web site now to get started.

AIR/EXPEDITED

BAX Global • www.baxglobal.com

The integration of Schenker AG and BAX Global has created a new global logistics and transportation solutions powerhouse. Enviable rankings in stra- tegic industry mobility and logistics service sectors include: No. 1 in European land transport, No. 2 in worldwide air freight, No. 3 in worldwide ocean freight, and No. 3 in integrated heavyweight freight in North America.

MidAmerica St. Louis Airport • www.fl ymidamerica.com

Newest cargo airport in the Midwest. Located at the intersection of U.S. Interstates 70, 55, 64 and 44, near the Mississippi River and accessible to rail, the airport is an ideal intermodal location. MidAmerica features a 50,000-square-foot passenger terminal; 50,000-square-foot cargo building; 8,000- and 10,000-foot runways that are dual ILS approach capable. Visit www.fl ymidamerica.com for more information.

OCEAN/INTERMODAL

China Shipping North America • www.chinashippingna.com

China Shipping services more ports around the world and boasts more connections within China. Customers look to us for reliable containerized transport, refrigerated services, and inland transportation. This site provides a company profi le, sailing schedules, transit times, service maps, container tracing, tariff rates, and worldwide offi ce contacts. We open the door to China and give you the world. China Shipping: Well Respected. Well Connected.

October 2007 • Inbound Logistics 93 IN THIS SECTION: Ocean/Intermodal – Ports

COSCO • www.coscon.com

China Ocean Shipping (Group) Company (COSCO), the national fl ag carrier of the People’s Republic of China, is one of the world’s premier full-service intermodal carriers. The company utilizes a vast network of ocean vessels, barges, railroad, and motor carriers to link the international shipper with the consignee. COSCON’s 20 Main Line Services connect over 100 ports worldwide to reach more direct ports of call than any other carrier in the world, with weekly, fi xed-day service to many destinations. New AUM-Pendulum Service, Direct Ports of call: Tokyo, Qingdao, Shanghai, Yantian, Hong Kong, Charleston, Norfolk, New York, Boston, Valencia, Naples, Genoa and Barcelona.

Seaboard Marine • www.seaboardmarine.com

Seaboard Marine is an ocean transportation company that provides direct, regular service between the United States, the Caribbean Basin, and Central and South America. Convenient schedules, and an expanding fl eet of ships both commanded and managed by a company of dedicated professionals, have become our trademark. For more than 20 years, we have established a strong commitment to be the premier carrier in our trade lanes. We are prepared to meet the ever-changing challenges of our trades in the new millennium.

United Arab Shipping Co. • www.uasc.com.kw

In July 1976, United Arab Shipping Company was established jointly by the six shareholding states from the Arabian Gulf – Bahrain, Iraq, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates. As the largest ocean carrier of dry cargo to the Middle East, UASC offers a wide scope of services to the Arabian Gulf/Red Sea and the Indian sub-continent. By maintaining uninterrupted and regular shipping services to the Arabian Gulf, UASC proves its strong commitment to this important region.

PORTS

Port of Houston Authority • www.portofhouston.com

Visit the Port of Houston’s Web site and choose from a menu of items. Check out facilities, shipping and service directories, frequently asked questions, and transportation and shipping links. The site also features the latest economic impact information, container and booking information, and trade statistics. The Port of Houston, the world’s eighth-largest port, is a 25-mile-long complex of public and private facilities, just a few hours of sailing time from the Gulf of Mexico.

94 Inbound Logistics • October 2007 IN THIS SECTION: Ports – Trucking

Port of Montreal • www.port-montreal.com

Of all the ports along the North American East Coast, Montreal is the one that offers, year-round, the fastest, most direct, and most economical access to major markets in Central Canada, the U.S. Midwest and the U.S. Northeast. Ships need only stop at one port – Montreal – to access these vast markets. Nearly all shipping lines offering regular services to the Port of Montreal fully unload and load their vessels here, offering their customers considerable time and money savings. Transcontinental Atlantic rail and road links effi ciently interconnect at the Port of Montreal to shorten distances and reduce door-to-door transportation costs.

Port of Oakland • www.portofoakland.com

We, the Port of Oakland, invest our resources in quality facilities and services for our airport, real estate, and seaport tenants and customers, so that through their activities we create economic vitality, jobs, and waterfront enjoyment for Oakland and the region while generating earnings to reinvest in our activities. The Port of Oakland’s Web site offers users resources, news, and product updates on its maritime, aviation, and real estate divisions, as well as information on port meetings and events. Visit the site to learn more.

RAIL/INTERMODAL

Hub Group, Inc. • www.hubgroup.com

Hub’s extensive service network – built over many years – enables it to provide innovative transportation solutions that are versatile, fl exible, and designed to deliver maximum effi ciency. With this advantage, Hub Group is able to collaborate with customers daily to help them meet their transportation challenges. With intermodal, highway, and logistics transportation offerings, the Hub Network is your single source – coast to coast, border to border. Visit the Web site to learn what Hub can do for you.

TRUCKING

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

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

October 2007 • Inbound Logistics 95 CALENDAR YOUR LOGISTICS DATEBOOK

Nov. 1-2, 2007, Optimizing Your Transportation League’s 25th TransComp Dec. 6-7, 2007, Supply Chain & Logistics Technology Investment: Supply Chain exhibition and 100th annual meeting, Summit North America, St. Augustine, Execution Systems and Automation, and the Transportation Intermediaries Fla. Key topics include driving your Austin, Texas. This Warehousing Association’s fall meeting. fi nancial supply chain to boost prof- Education and Research Council seminar 301-982-3400 its and cut costs; developing a green offers a comprehensive overview of sup- www.intermodal.org movement; and maintaining visibility ply chain information systems, including through transparent best practices. how to evaluate and select the right sys- Nov. 26-29, 2007, Defense Logistics 416-214-3400 tem based on functional requirements. 2007, Washington, D.C. Improving www.scmna.worldtradeco.com 630-990-0001 force effectiveness through enhanced www.werc.org/education logistics is the theme of this year’s con- Jan. 24-26, 2008, Operation Stimulus, ference. Attendees will learn how to Denver, Colo. The Denver Transportation Nov. 10-13, 2007, Intermodal Expo, leverage commercial industry exper- Club’s annual forum features student Atlanta, Ga. IANA’s 2007 Intermodal tise to meet customers’ changing needs, debates about transportation topics. Expo and annual membership meeting gain an understanding of Lean Six The event also provides networking offers informative educational sessions, Sigma principles, and look to future opportunities, allowing students to and showcases the latest intermodal developments that will impact logisti- learn more about day-to-day issues fac- equipment, service, and technological cians and warfi ghters. ing the transportation industry. innovations. The Intermodal Expo is 888-482-6012 303-398-4522 co-located with The National Industrial www.defenselog.com www.denvertransportation.org

REAL WORLD EDUCATION FOR WORLD-CLASS EXECUTIVES

TODAY’S COMPANIES NEED TO: • Increase supply chain efficiencies. • Move to a global supply chain strategy. • Groom their rising stars. • Expand collaborative relationships. LEARN to improve supply chain efficiencies by grooming your executives in Georgia Tech’s Executive Master’s in International Logistics (EMIL) Program. EXPERIENCE real-world results by learning best practices from the world’s leading experts in EMIL’s five 2-week residences at key locations around the globe. For more information, visit BUILD a team that can deliver measurable www.emil.gatech.edu/inbound or call 404.385.2538 results by linking finance with global supply chain management.

96 Inbound Logistics • October 2007 RETAIL INDUSTRY LEADERS ASSOCIATION Logistics2008

February 10-13 I Gaylord Palms Resort & Convention Center I Orlando, FL

Attend the premier educational event FEATURED KEYNOTE SPEAKERS for retail and consumer productmakers’ Mike Duke, Vice Chairman, International Division supply chain professionals. At the Retail of Wal-Mart Yossi Sheffi, Author of the Resilient Enterprise Industry Leaders Association’s (RILA) Logistics Stuart Varney, FOX News Economist Conference, you’ll participate in engaging James Carville & Mary Matalin, Political Pundits workshops on issues critical to supply chain FEATURED TOPICS operations and efficiency — a key determinant I The Green Supply Chain I to retail success. Labor Trends I Forecasting Behavior & Execution I Reverse Logistics I Economics of Infrastructure Title Sponsor: I The Emerging Use & Benefits of Carbon Credits I Homeland Security & Supply Chain Implications I State of the Ports I Distribution Benchmarking I Integrating Global Sourcing I Premier Sponsors: Distribution Models—Europe vs. U.S. I Planning Cycle and Visibility of Direct Imports/ Private Label

For more information, contact Bridget Anderson at 703-600-2038 or [email protected].

Register today at www.rila.org. INBOUNDCLASSIFIED

Do You have the Technology to Compete? • If you had the right freight and warehouse software tools in place, could you grow your business? :PVS
1SPmUT • Multi-modal, multi-station, worldwide, web and browser, e-mail alerting, easy to implement, customer accessible 24/7. • Quoting to invoicing with integrated auto rating, document generation, imaging, solutions customizable to your business. The Northwest Louisiana Chapter of $POUBDU
VT
UPEBZ
UP
HSPX
ZPVS
CVTJOFTT
NPSF
QSPmUBCMZ the American Red Cross in Shreveport, XXXXFCGSFJHIUQSPDPN
PS
 Louisiana is seeking the donation of several electric three wheel personnel carriers. The personnel carriers will be used at the large hurricane evacuee shelters and must be operational for immediate use. Transportation of the donated carriers will be provided by a national trucking company from any location in the United States.

for more information contact: Don Brummett 318-470-8136 [email protected]

United States Postal Service Statement of Ownership, Management and Circulation (Required by 39 USC 3685) Average No. Average No. Copies Each Issue Copies of Single 1. 15. of Circulation Issue Published Publication Title: Inbound Logistics Extent & Nature During Preceding Nearest to of Circulation 12 Months Filing Date 2. Publication No.: 703-9903 a) Total No. Copies 64,228 64,238 3. Filing Date: October 2007 b) Paid and/or Requested 4. Issue Frequency: Monthly 60,128 60,337 Circulation 5. Number of Issues Published Annually: 12 c) Total Paid and/or 60,128 60,337 6. Annual Subscription Price: Request Requested Circulation 7. Complete Mailing Address of Known Offi ce of d) 1. Free Distribution by 2,012 2,187 Publication: Five Penn Plaza, New York, NY 10001 Mail 8. Complete Mailing Address of Headquarters or d) 4. Free Distribution 950 1,078 General Business Offi ce of Publisher: Five Penn Plaza, Outside the Mail New York, NY 10001 e) Total Free Distribution 2,962 3,265 9. Full Names and Complete Mailing Addresses of: f) Total Distribution 63,090 63,602 Publisher — Keith Biondo, Five Penn Plaza, g) 1. Copies not Distributed 1,138 636 New York, NY 10001 2. Return from News —— Editor — Felecia Stratton, Five Penn Plaza, Agents New York, NY 10001 h) Total 64,228 64,238 10. Owner: Thomas Publishing Company LLC Percent Paid and/or 95.31% 94.87% Five Penn Plaza, New York, NY 10001 Requested Circulation C.T. Holst-Knudsen, Five Penn Plaza, New York, NY 10001 J. Andrade, Five Penn Plaza, New York, NY 10001 17. Signature and Title of Editor, Publisher, Business Manager or Owner: Keith Biondo, Publisher

98 Inbound Logistics • October 2007 Choosing a 3PL Partner Just Got Easier.

Create a database of prospective partners…prepare your Request for Proposal list…build your knowledge base… with Inbound Logistics’ FREE online RFP service.

The 3PL RFP is your opportunity to have third-party logistics experts look at your specifi c outsourcing challenges and needs, and give you free, no-obligation advice, solutions, and information specifi c to your request. Whether you need to outsource your entire logistics operation, or just one segment of it, choosing the right third-party logistics partner can be a complex challenge. In response to reader requests, Inbound Logistics offers an online 3PL RFP tool to help simplify your selection process. Get started now at inboundlogistics.com/rfp RESOURCE 10.07 CENTER INBOUND LOGISTICS WORKS FOR YOU!

3PLs Secure the equipment you need, when you need it, with Hub Group. Guaranteed. ■ Agility pg. 27 www.hubgroup.com 800-964-2515 For Agility employees in more than 100 countries around the world, success isn’t measured in boxes ■ Hyperlogistics Group pgs. 8-9 loaded or shipments tracked. Success occurs Hyperlogistics has joined the Intermodal Campus when partners achieve their goals. at Rickenbacker Global Logistics Park, one of the www.agilitylogistics.com 714-513-3000 nation’s most advanced logistics hubs. That’s just the kind of hyper-innovative approach you have ■ ATC Logistics & Electronics pg. 17 come to expect from Hyperlogistics Group. By using ATC Logistics & Electronics’ proven, www.hyperlog.com 800-533-0716 world-class solutions, you will exceed your cus- tomers’ delivery and service expectations. ■ Kane is Able pg. 80 www.atcle.com 800-466-4202 When it comes to 3PL services, Kane is Able is your execution specialist. ■ Averitt pg. 18 www.kaneisable.com 800-845-KANE No two supply chains are alike; that’s why Averitt approaches them all the same way. First it ana- ■ Lynden pg. 33 For a specifi c lyzes the way your goods and information fl ow, When moving shipments to, from, or within response, then determines how to improve it. Averitt creates contact Alaska, all transportation companies are not alike. supply chain solutions that are uniquely yours. these advertisers Lynden’s Dynamic Routing service can save you directly. Please tell www.averittexpress.com 800-AVERITT money by matching the mode to your deadline them you saw their ad in and budget. Inbound Logistics. ■ BNSF Logistics pg. 21 www.shiplynden.com 888-596-3361 Don’t worry about getting sidetracked by logistics problems. BNSF Logistics brings maximum effi - For general ■ Nexus Distribution Corporation pg. 41 ciency to projects of all sizes. Focus on your goal; questions about Warehousing, transportation, and logistics - where BNSF will get you there. particular industry do they all come together? At Nexus Distribution segments, use www.bnsfl ogistics.com 877-853-4756 Corporation. the card between www.nexusdistribution.com 800-536-5220 pages 24-25 and ■ ClearPointt pg. 59 ClearPointt gets to know you and your business pages 80-81. ■ Ozburn-Hessey Logistics pg. 37 so it can stay in front of every shipment and keep You’ll know exactly where your shipments are things moving. ClearPointt doesn’t just move when you have OH Logistics as your global supply freight, it carries your trust. For faster service, chain management partner. go online: www.clearpointt.com 866-894-8399 inboundlogistics.com/rfp www.ohlogistics.com 800-401-6400 ■ DF Young pg. 29 ■ SinoNRS pg. 39 When you look at the world through fresh eyes, National Retail Systems (NRS) has teamed up you’ll see not just logistics as usual, but a fl exi- with Sinotrans, China’s largest integrated logis- ble response to the unusual. That’s how DF Young tics company, to offer a revolutionary solution for approaches international logistics. seamless factory-to-store import delivery. It’s the www.dfyoung.com 610-725-4000 best of both worlds in one logistics partner. www.sinonrs.com 877-345-4-NRS ■ FMI International pg. 76 FMI’s experienced logistics professionals help retailers develop the most effi cient, cost-effective Airports supply chains. ■ MidAmerica St. Louis Airport pg. 16 www.fmiint.com 732-750-9000 MidAmerica St. Louis Airport is attuned to your international air cago needs, and wants to work ■ Hub Group Cover 3 with you to make your business a success. Hub Group’s fi rst-of-its-kind program lets you lock www.fl ymidamerica.com 618-566-5240 in committed capacity ahead of surging volumes.

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

Career Development/Education ■ Velocity Express pg. 72 Real Time Delivery from Velocity Express is a new ■ Bellevue University pg. 83 way to deliver almost anything, almost anywhere – Get real learning for real life at Bellevue at virtually any time. University. Select from more than 20 accelerated www.velocityexpress.com 888-839-7669 BA and 12 MA degrees online – including degrees for logistics professionals. Forklift Trucks www.bellevue.edu 800-756-7920 ■ Landoll Corporation pg. 40 ■ Georgia Institute of Technology pg. 96 Is shortage of storage space a problem in your Learn best practices from the world’s leading facility? That’s no problem for Landoll with its experts at Georgia Tech’s Executive Master’s in proven narrow-aisle forklift solutions, which can International Logistics (EMIL) program. store loads from aisles as narrow as 56 inches to www.emil.gatech.edu 404-385-2538 lift heights of 433 inches. Look to Landoll to solve your space problems. ■ Lion Technology pg. 91 www.landoll.com/mhp 800-428-5655 Lion’s unique online hazmat training brings your team up to speed on DOT regulations. ■ TCM pg. 22 www.lion.com/hazmat 888-546-6511 TCM PRO Class 1 lift trucks move more goods For a specifi c faster, for a full eight-hour shift, no charge. response, contact www.tcmusa.com 866-216-7840 these advertisers Environmental Partnerships directly. Please tell ■ SmartWay Transport pg. 85 Freight Payment Services them you saw their ad in The EPA’s SmartWay Transport program helps Inbound Logistics. shippers reduce emissions, while giving the aver- ■ nVision Global pg. 28 age truck a fuel savings of $2,000 per year. nVision Global helps you focus on real opportu- For general www.epa.gov/smartway 734-214-4767 nities by providing operational business intel- ligence. Contact nVision Global for a personal questions about presentation. particular industry Events segments, use www.nvgts.com 770-474-4122 the card between ■ National Industrial Transportation League pg. 88 pages 24-25 and NIT League’s 100th Annual Meeting and the ■ PowerTrack pg. 23-24 80-81. Transcomp 2007 Conference take place Nov. 9-14, Freight payments a puzzle? Turn to PowerTrack, in Atlanta. See the latest products, services, and the largest freight payment business in the world. technology applications designed to enhance your With PowerTrack, your company can save money For faster service, company’s profi tability. with exceptional audit and payment effi ciency. go online: www.nitl.org 703-524-5011 Puzzle solved. inboundlogistics.com/rfp www.powertrack.com 800-925-4324 ■ Retail Industry Leaders Association pg. 97 At the Retail Industry Leaders Association’s logis- Global Trade tics conference, Feb. 10-13, Orlando, you will par- ticipate in workshops on issues critical to supply ■ DHL Global Forwarding Cover 4 chain operations and effi ciency. With unlimited service combinations, including www.rila.org 703-600-2038 air and ocean freight, plus a host of value-added benefi ts, you can rest assured that however large your shipment, DHL Global Forwarding will always Expedited Air/Ground deliver a solution, both locally and globally. ■ FedEx Express Freight pg. 11 www.dhl-usa.com 800-426-5962 FedEx Express Freight now offers time-defi nite delivery to more places than ever before. FedEx can assist you in shipping to nearby places or far- away places. Count on FedEx to go the distance. www.fedex.com/goingfarther 800-GO-FEDEX

October 2007 • Inbound Logistics 101 RESOURCE 10.07 CENTER INBOUND LOGISTICS WORKS FOR YOU!

Logistics IT Packaging Solutions ■ IES pg. 5 ■ Pelican Products pg. 65 IES offers one integrated software solution for Pelican Protector Cases give you an endless num- all your complex transportation needs. IES grows ber of shipping legs and signifi cantly reduce with you. your packaging cost-per-use when compared to www.iesltd.com 201-639-5000 expendable packaging. The cases pay for them- selves within two cycles. ■ MagicLogic Optimization pg. 15 www.pelicanoem.com/ibl 866-823-3020 Magic’s Cube-IQ Load Planning software helps you optimize your inbound and outbound shipments. Ports www.magiclogic.com 888-274-8616 ■ Port of Houston pg. 55 The Port of Houston delivers the goods, including Ocean general cargo and containers, grain and other dry ■ China Shipping pg. 63 bulk materials, and project and heavy lift cargo. The Port also has expansion plans and ship chan- With the youngest international fl eet in the world, nel upgrades in the works. and unmatched access to the Yangtze and Pearl For a specifi c Rivers, China Shpping is the carrier that really www.portofhouston.com 800-688-3625 response, contact knows China. It’s in their name. these advertisers www.chinashippingna.com ■ Port of Montreal pg. 51 directly. Please tell Not only is the Port of Montreal the most them you saw their ad in ■ COSCO pg. 49 direct route between North America’s indus- trial heartland and the Northern European and Inbound Logistics. Let COSCO help your ROI by expediting transpor- Mediterranean markets, you’ll be amazed how tation through the congestion-free port of Prince quickly it can move your cargo, whatever the Rupert, and dedicated CN rail service to many freight, whatever the season. For general North American points. questions about www.port-montreal.com 514-283-7050 particular industry www.cosco-usa.com 800-242-7354 segments, use ■ Port of Oakland pg. 57 ■ Maersk pg. 45 the card between At the Port of Oakland, the future is in new termi- From selecting the service to consolidation to pages 24-25 and nals, giant cranes, increased capacity, and deeper tracking and forwarding to fi nal destination, you 80-81. channels. The Port of Oakland is strategically posi- will always know where your goods are and when tioned to be your global gateway to America’s they will arrive when you trust your freight to consumer markets. For faster service, Maersk Line and Maersk Logistics. www.portofoakland.com 510-627-1100 go online: www.maerskline.com 973-514-5187 inboundlogistics.com/rfp ■ Seaboard Marine pg. 47 Site Selection Seaboard Marine’s commitment to building strong ■ Grubb & Ellis pg. 31 partnerships ensures your cargo gets the best Scouting for sites for your air cargo/freight for- service available. warding logistics facility? Let Grubb & Ellis show www.seaboardmarine.com 305-863-4444 you its facilities available at Chicago’s O’Hare International Airport. ■ UASC pg. 66 www.grubb-ellis.com 800-877-9066 UASC brings southern hospitality to liner ship- ping; call its Savannah-based national booking ■ Nebraska Public Power District pg. 75 offi ce for more information. You’ll experience Need comprehensive business development the difference. information on Nebraska? Look no further than www.uasc.net 800-GO1-UASC sites.nppd.com, a site to see. sites.nppd.com 800-282-6773

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

Trucking ■ Kalmar Industries pg. 79 Using an Ottawa Kalmar truck is always a good ■ Bridge Terminal Transport pg. 35 move. You get improved productivity, plus access With 44 terminals throughout North America, you to Ottawa’s network of support resources that will fi nd Bridge Terminal Transport here, there, keep your truck – and your business – moving. and everywhere. This ISO 9001-2000 certifi ed www.kalmarind-northamerica.com 888-229-6300 carrier offers Web-based tracking and tracing, local and linehaul services, and interchange with all shipping lines and railroads. Wireless Solutions www.bttinc.com 877-622-5528 ■ AT&T pg. 13 Tired of playing hide-and-seek with the Internet? ■ Con-way Freight pg. 3 Get the AT&T LaptopConnect Card and easily Con-way Freight’s legendary regional service and access the Internet at mobile broadband speeds long-haul expertise - all with one pickup - makes it when you’re out of the offi ce, on the road, or away the undisputed champ. Your freight deserves the from hotspots. best; get Con-way Freight in your corner. www.wireless.att.com/laptopconnect www.con-way.com/combinations11 800-763-2222 ■ Motorola pg. 7 Trucks Motorola’s Enterprise Mobility Solutions synchro- For a specifi c nize your entire supply chain and allow anytime response, contact ■ Dodge C2-pg. 1 visibility of your shipments around the world so these advertisers The all-new 2008 Dodge RAM 4500 & 5500 Chassis you can capture, move, and manage data with directly. Please tell Cabs shed light on a whole new way to work. real-time accuracy. them you saw their ad in www.dodge.com/chassis_cab 800-4ADODGE www.motorola.com/supplychainmobility 800-722-6234 Inbound Logistics.

INDEX For general questions about ADVERTISER PAGE ADVERTISER PAGE particular industry Agility 27 Lion Technology 91 segments, use AT&T 13 Lynden 33 the card between ATC Logistics & Electronics 17 Maersk 45 pages 24-25 and Averitt 18 MagicLogic Optimization 15 80-81. Bellevue University 83 MidAmerica St. Louis Airport 16 BNSF Logistics 21 Motorola 7 Bridge Terminal Transport 35 National Industrial Transportation League 88 For faster service, China Shipping 63 Nebraska Public Power District 75 go online: ClearPointt 59 Nexus Distribution Corporation 41 inboundlogistics.com/rfp Con-way Freight 3 nVision Global 28 COSCO 49 Ozburn-Hessey Logistics 37 DF Young 29 Pelican Products 65 DHL Global Forwarding Cover 4 Port of Houston 55 Dodge Cover 2-1 Port of Montreal 51 FedEx Express Freight 11 Port of Oakland 57 FMI International 76 PowerTrack 23-24 Georgia Institute of Technology 96 Retail Industry Leaders Association 97 Grubb & Ellis 31 Seaboard Marine 47 Hub Group Cover 3 SinoNRS 39 Hyperlogistics Group 8-9 SmartWay Transport 85 IES 5 TCM 22 Kalmar Industries 79 UASC 66 Kane is Able 80 Velocity Express 72 Landoll Corporation 40

October 2007 • Inbound Logistics 103 THE SUPPLY CHAIN IN BRIEF THELAST MILE

Raising Churchill’s Last Ride he railroad car that deliv- Tered UK Prime Minister Winston Churchill to his grave in 1965 recently got a new lease on life when it arrived in Southampton, England from Port Hueneme, Calif. The 1931 South Railway parcels and luggage van had been sitting in rel- ative obscurity as a theme attraction at a Los Angeles resort, before a consortium led by the UK-based Swanage Railway Trust appealed to the Los Angeles City of Industry for its return home. The six-week journey 1 2 5 on Wallenius Wilhelmsen Logistics’ ro/ro ship, MV Tamberlane, traveled 8,000 miles through the Panama 3 4 6 Canal. The van will be restored in Somerset and the Swanage Railway Trust will provide 7 a new home for it in Dorset, West of England.

1-3 On arrival in Southampton, the roll trailers carrying the wheel 8 chassis and carriage were placed in a warehouse for protection. 4-6 On the day of transfer, the wheel chassis was removed from the roll trailer and placed on a truck 9 10 using a forklift. 7-12 Utilizing a 50-ft. forklift and spreader to evenly balance the weight, the carriage was carefully 13 lifted and placed back onto its wheel chassis. 13-15 Finally, the unit was covered in tarpaulin and lashed to

the truck for transfer to Somerset. 11 12 14 15 Photos courtesy ofwilliams-pics.com Bruce D. Williams/

104 Inbound Logistics • October 2007  

   

 

  
 

 
 '
%
!)
!$ 
#'* 
%""$%

$! &$&
#'"  & '$ &
"$!$ 
(

!$
&

)
 ! & $%
&!
!'$
,&
  
*!'
&!
%"
)&
! + 
&%
%%!  '%
+$%&!&% 
"$!$
&%
*!'
!

! &&
"&* 
!
%'$ 
(!' %
&
"'&%
&
#'"  &
*!'

)  
)$
*!'

&
'$ & 
& 
%
$&
! &&
'
&!*
*
 
    
!
$
!$
!  
!
&!
)))'$!'"! "&*

®

® MOVING YOUR BUSINESS FORWARD. GLOBALLY.

DHL Global Forwarding consistently meets the ever changing needs of businesses both large and small. As you’d expect from the market leader, our extensive product range lets you balance both speed and financial efficiency, enhancing your commercial advantage each and every day. With unlimited service combinations including air and ocean freight, plus a host of value-added benefits from cargo insurance to complete security management, you can rest assured that however large your shipment, we’ll always deliver a solution both locally and globally. Move your business forward today – contact DHL on 1-800-426-5962