September 2008

SPECIAL SUPPLEMENT Freight Payment Services: DOLLARS & SENSE

www.inboundlogistics.com THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS • SEPTEMBER 2008

ANNUAL TRUCKING ISSUE GROUND TACTICS: OPTIMIZING TRANSPORTATION NETWORKS

ALSO: Charting the Top 100 Motor Carriers Surveying the Trucking Market IT SIPS. THE ALL-NEW 2008 DODGE RAM 5500 CHASSIS CAB. Have you seen the price of fuel lately? You’ll see it a whole lot less in a Dodge Ram 5500 Chassis Cab. The standard 6.7L Cummins® Turbo Diesel with 610 lb-ft of torque helps make this tough truck 14 percent more fuel efficient than Ford F-550 and 23 percent more than Chevy Kodiak 5500.* Combine that with the largest standard fuel tank and we doubt you’ll be running into your friends at the pumps anytime soon. Why suck when you can sip? For more information, go to dodge.com/chassis_cab or call 800-4ADODGE.

*Estimated fuel economy based on independent testing. When properly equipped. Cummins is a registered trademark of Cummins, Inc. Independent testing has proven Dodge Ram 5500 more fuel effi cient than Ford and Chevy Class 5 chassis cabs, helping you save. GROR UND TACTICS pagage 36 THETHE MAGAZINE MAGAZINE FOR FOR DEMAND DEMAND DRIVEN DRIVEN LOGISTICS LOGISTICS

September 2008 • Vol. 28 • No. 9

INSIGHT INPRACTICE 4 CHECKING IN  6 DIALOG READER PROFILE Navigating a Supply Chain Management Career Readers talk back. After 30 years in the business, Steve Schad, vice president of supply chain operations at TomTom Inc., moves materials and products from 10 SC PERSPECTIVES Intelligent planning could mitigate Point A to Point B with ease. the global problem of inequitable water distribution. 30 3PL LINE  CASEBOOK Urban Outfi tters Sound shipper-carrier relationships help deliver tangible Sales into the Wind and sustainable results. While many of its competitors struggle, this trendy apparel retailer struts its 33 IT MATTERS Combining elements of GPS and stuff through aggressive growth, a passive RFID technologies, RTLS unique customer perspective, and a solutions take advantage of both supply chain that pulls it all together. technologies’ strengths. 34 RISKS & REWARDS New cargo-screening regulations raise questions about the best approach to compliance. INDEPTH

INFO  GROUND TACTICS Optimizing Transportation Networks 98 WEB_CITE CITY While every transportation mode is affected by a struggling economy and record high fuel prices, trucking has the most far-reaching impact on 106 CLASSIFIED supply chain network design and strategy. How are shippers coping? 108 RESOURCE CENTER  EXCLUSIVE RESEARCH Trucking Perspectives 2008 Our annual Motor Freight Market Insight Survey provides an in-depth look at the trucking sector. Motor carriers and Inbound Logistics readers address growth areas and obstacles.

September 2008 • Inbound Logistics 1 THE MAGAZINE FOR DEMAND DRIVEN LOGISTICS

DOLLARS & SENSE page 66

September 2008 • Vol. 28 • No. 9

INBRIEF INDEPTH 9 10 TIPS How to safely import food.  Trucking RFP 14 TRENDS Get free, no-obligation advice, solutions, and information for all your Georgia-Pacifi c’s eco-friendly trucking challenges. package design… Which state ranks fi rst for manufacturing and  logistics activity? Show me!… Top 100 Motor Carriers JDA swallows i2 Technologies Shift gears, slow down, and take account of the motor freight carriers paving the road to innovation and change within the trucking industry.

 SPECIAL SUPPLEMENT Freight Payment Services: Dollars & Sense Freight payment services are no longer just about paying your carriers quickly. Today’s freight payment service providers have expanded their portfolios to offer an array of cost-cutting, productivity, and effi ciency benefi ts.  Purchasing Managers: Shop Talk Purchasing managers juggle a To-Do list of stressful, business- critical tasks — from striking the best deals to projecting demand 22 GLOBAL LOGISTICS to staying abreast of fi nancial and Mexico’s great FedExpectations… political changes worldwide. Listen Making commercial border in as four purchasing managers crossings easier… India’s Hyderabad International Airport… chat about challenges and shoot China’s port boom the breeze on strategy. 92 TECH UPDATE 95 NEW SERVICES 112 LAST MILE: WHEELED VICTORY

2 Inbound Logistics • September 2008 ST M THE expedited orpeakandfl ex shippingneeds. see how CRST can do the MOST for your see howCRSTcandotheMOSTforyour IN THEINDUSTRY. with thetruckconstantly, we’realsothe to go,we’llexpediteyourcriticalloads. ...TEAM DRIVERS periods. Visit www.crstvanex.com and our “Capacity Solutions” service offers our “CapacitySolutions”serviceoffers And becauseatleastonedriverstays most securewaytoship.Inaddition, With over3,500teamdriversready supplemental capacityforpeak CHECKINGIN

Vol. 28, No. 9 September 2008 THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS www.inboundlogistics.com STAFF

PUBLISHER Keith G. Biondo by Keith Biondo | Publisher [email protected] EDITOR Felecia J. Stratton [email protected]

SENIOR ASSOCIATE EDITOR Joseph O’Reilly [email protected]

ASSOCIATE MANAGING EDITOR Catherine Harden [email protected] The Short Loop is Better CONTRIBUTING EDITORS William Atkinson • Merrill Douglas • John Edwards Lisa Harrington • Amanda Loudin • Robert Malone uppose, for some unknown reason, the hot/cold water valves for your Amy Roach Partridge • Deborah Ruriani • Lisa Terry

shower were installed in the basement, next to the water heater. When CREATIVE DIRECTOR Michael Murphy S you wanted to take a shower, you’d have to go to the basement, turn the [email protected] water on, then walk upstairs to the bathroom. If you needed to adjust the water SENIOR DESIGNER Mary Brennan temperature or fl ow, you’d have to get out of the shower, wrap a towel around [email protected] you, and traipse back down to the basement, dripping water all the way. Having PRINT/WEB PRODUCTION MANAGER Shawn Kelloway [email protected] hot/cold valves at the water heater would be considered a long-loop control. PUBLICATION MANAGER Sonia Casiano Having them in the shower is a short-loop control. It’s obviously silly to have the [email protected] long-loop control in the shower, so why do we tolerate it in logistics? CIRCULATION DIRECTOR Carolyn Smolin In logistics, the fl ow of inbound product – like the water – starts far away, from across the country and around the world. If you don’t practice demand-driven SALES OFFICES logistics, the controls regulating product fl ow are located at the point of origin. PUBLISHER: Keith Biondo (212) 629-1560 • FAX: (212) 629-1565 Wouldn’t it be better if your supply control loop was located exactly at the [email protected] point of the demand fl ow instead of in another time zone, in a foreign language, WEST/MIDWEST/SOUTHWEST: Harold L. Leddy and with someone else’s hand on the control? Locating the hot/cold water valves (847) 446-8764 • FAX: (847) 446-7985 in your shower instead of the basement, you could fi nely adjust the product fl ow [email protected] to dovetail more effi ciently with what customers buy from you. Marshall Leddy (763) 416-1980 • FAX: (763) 201-4010 Practicing demand-driven logistics gives you the ability to fi ne-tune your [email protected] product fl ow exactly where the change signals emanate from. Selecting a carrier MIDWEST/ECONOMIC DEVELOPMENT: Jim Armstrong that can give you short-loop, pipeline control – exactly where you are, all the long (815) 334-9945 • FAX: (815) 334-1920 way back to the supply origin – would be one way to do this. [email protected] Many carriers offer this level of visibility and control, not just across the SOUTHEAST: Gordon H. Harper country, but around the globe. This being our annual trucking issue, it’s worth (404) 350-0057 • FAX: (404) 355-2036 [email protected] considering how you can engage carrier partners in a more intuitive way, lever- MOBILE, AL: Peter Muller aging their capabilities to gain better control of critical demand points all the (251) 343-9308 • FAX: (251) 343-9308 way back to supply sources. [email protected] U.S. shippers and consignees are beginning to recognize that greater control NORTHEAST: Rachael Sprinz over distribution loops – and in some cases, shortening these loops – goes a long (212) 629-1560 • FAX: (212) 629-1565 [email protected] way toward streamlining transport costs. Lisa Harrington’s article, Ground Tactics (page 36), examines how companies optimize distribution networks to rationalize FREE SUBSCRIPTIONS transportation movements and costs, and better meet customer demand. www.inboundlogistics.com/free

In Trucking Perspectives (page 45), you can familiarize yourself with the many Inbound Logistics welcomes comments and submissions. variables that comprise a demand-driven approach. Moreover, IL’s annual Top Contact us at 5 Penn Plaza, NY, NY 10001, (212) 629-1560, Fax (212) 629-1565, e-mail: [email protected]. 100 Motor Carrier directory (page 56) serves up trucking companies that can For advertising, reprint, or subscription information, call (212) deliver the goods and offer the premium services to help you better manage 629-1560, or e-mail [email protected]. Inbound Logistics is distributed without cost to those qualifi ed in North inbound movements. America. Interested readers must complete and return the If you don’t have processes and partnerships in place to anticipate and mit- qualifi cation card published in this issue, or may subscribe online at www.inboundlogistics.com/free. Subscription price to igate supply chain changes at a moment’s notice, variables are more likely to others: in North America: $95 per year. Foreign subscriptions: throw you for a loop, sending customer relationships and profi ts spiraling down $129. Single copy price: No. Amer. $10, foreign $12, back issues $15. Periodicals postage paid at New York, NY, and additional the drain. ■ mailing offi ces.

4 Inbound Logistics • September 2008

DIALOG LETTERS TO THE EDITOR

“a person who solely receives, holds, or AC/DC/SC Short Circuit otherwise transports a consumer prod- SOUND OFF Fundamentally, what could be more uct in the ordinary course of business but IL invites you to share your opinion on natural? Comparing the invention mav- who does not take title to the product.” this new 3PL defi nition for an upcoming erick [Thomas Edison] with the man To me, this feels like a definition article. Do you agree or disagree? How who revolutionized shipping [Malcom crafted by defense attorneys and is a might potential legal ramifi cations McLean] seems like a “no-brainer” (see step backwards. What should we call the impact a service provider’s ability to August 2008, Supply Chain Perspectives, structures that add value beyond this meet your outsourcing demands? Does Inventions Light the Way). narrow defi nition? this defl ate a 3PL’s value proposition? But when it comes to distribution, John Nofsinger, CEO, Please email your comments to: Thomas Edison short-circuited. Material Handling Industry of America [email protected] Edison didn’t change the world with his power distribution – he pushed direct current (DC), which we use to power Giving Away Thanks…and Some Prizes our appliances only. DC required local very year, we ask you to tell us a little about your company and the power generation because it could not Eservices you specify, as well as to cast votes for logistics service be transmitted well and required many providers you feel excel at what they do. The Top 10 3PLs you voted for more wires to deliver varying voltages. were featured in our July 2008 issue. Edison’s competitor Nikola Tesla, who Now it’s time to thank you. We received a record-breaking 5,100 votes was the real wizard of electricity, pushed this year, including more than 2,000 write-in comments. In keeping alternating current (AC), which made with our annual tradition, we randomly selected 10 readers to receive more sense for power distribution. prizes, including logistics reference books and gold Parker pens. Nathaniel Engelsen, To vote for the top third-party logistics providers of 2009, and put CIO, Interstate Transport yourself in the running for next year’s prize, please fi ll out our survey online at www.inboundlogistics.com/readsearch Many thanks to this year’s prize recipients: Spinning 3PLs • Steve Kapsner, Vice President Logistics, Smithfi eld Foods I wanted to take this opportunity to • Tim Adamczyk, Warehouse Manager, Perrigo Company send congratulations on the great July • Bill Keefer, Director of Distribution, Westlake Hardware issue and to share a view on a recent • Eric Myers, Manager of Logistics, Barilla America development that doesn’t square up, • Brenda Perry, Shipping Clerk, National Refrigeration Company given all the good work the asset-based • Jason Hervey, Sales Manager, Flying J 3PL industry has made to position its • Scott Wheeler, Director of Transportation, Ecolab value proposition. • Alex Luczak, Traffi c Manager, Morton Salt The term third-party logistics pro- • Francine Rice, Inbound Manager, Philips Consumer Lifestyle vider was defined in recent Consumer • Jon Stiffl er, Director of Warehousing, Sara Lee Product Safety Legislation (H.R. 4040) as

6 Inbound Logistics • September 2008 We’ll do more than help you take a load off.

Any trucking company can haul goods or materials. Put simply, we’re dedicated to making your job easier. By partnering with Ruan, you’ll enjoy supply chain solutions that bolster your efficiency and your bottom line. At the end of the day you’ll have less to worry about and more time to concentrate on other important matters.

s Dedicated Contract Carriage s Ruan Certified Brokerage Services s Bulk Transportation s Integrated Services

For more information, contact us at (866) RUAN NOW or visit our Web site, ruan.com.
   
   
 

                            !             "       #                 !     #                      

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

             
 10TIPS STEP-BY-STEP SOLUTIONS

by Deborah Catalano Ruriani

Importing Food Safely

ith recent incidents of food con- obstacles to obtaining timely release of provide sustenance or nutritional value tamination making headline your goods by the FDA. to humans or animals. W news, tracking the food supply chain has never been more important. Provide a product description. Use Make sure the shipment documenta- Here are some tips on ensuring food 3 laymen’s terms to describe your 7 tion states the number and types of import safety and accountability from product on the clearance document, packaging. When reporting quanti- Michael Lahar, food and drug admin- particularly when citing brand or trade ties to the FDA, your agent will provide istration team leader for A.N. Deringer names. a “base unit” of weight or volume. The Inc., a St. Alban’s, Vt.-based third-party documentation must also detail the logistics provider. Properly mark canned goods. When type of material comprising the pack- 4 importing Low Acid Canned Foods aging touching the product, as well as Verify your trading partners are reg- and Acidified Foods, you must the preservation method used to pack- 1 istered with the FDA. Every party that declare the Federal Canning Establish- age the goods. touches food products and dietary ment number to the FDA. Make sure supplements intended for consumption clearance documentation prominently Include the FDA product code on in the U.S. marketplace, with the excep- displays this number. 8 clearance documents. The product tion of carriers that have possession of code gives the FDA and your service the goods merely to facilitate transpor- Clearly mark Harmonized Tariff providers information about the goods tation, must register with the Food & 5 Schedule numbers. Make sure the being imported. Drug Administration (FDA). Registering clearance paperwork shows an accu- manufacturers/shippers, wholesalers, rate U.S. Harmonized Tariff number. Make sure the paperwork provided middlemen, third-party warehouses, Consult with your U.S. customs broker 9 is legible and complete. The misin- and cold storage facilities allows the to ensure that you are using the proper terpretation of one number or letter FDA to trace the product in the event of tariff number. could delay clearing your goods. a recall. Get familiar with the Bioterrorism Seek advice in advance. Ask your Know your manufacturer/shipper. 6 Act (BTA) of 2002. Most people 10 agent or broker questions before 2 Make sure the names and addresses importing and exporting food arti- products ship. Keep communi- provided for FDA clearance match cles to and from the United States are cation lines open and provide emergency the names and addresses on file with familiar with the BTA’s import require- contact numbers. This step can prevent the Food Facility Registration numbers. ments for food, but may not know delivery delays, storage and warehousing For products not originating in North it also covers dietary supplements. charges, angry clients, and unnecessary America, this can be one of the biggest These are defi ned as any products that inspections and detentions. ■

September 2008 • Inbound Logistics 9 SCPERSPECTIVES BY ROBERT A. MALONE Contributing Editor, Inbound Logistics [email protected]

Keeping Our Heads Above Water Intelligent planning, combined with executing a global supply chain based on accurate data, could mitigate the problem of inequitable water distribution.

ater is one of the world’s biggest challenges. There is to each area, and by what means. plenty of it, but it is often in the wrong place (favored 5. Select the water delivery method that makes the most sense based industrialized nations), at the wrong time (a hurricane W on location – pipeline, truck, or a or fl ood), and in the wrong form (polluted or invaded by salt). Poor combination. logistics, supply chain, and fi nancial management, with some polit- 6. Find and repair existing natural aquifers worldwide. ical issues thrown in, further complicate the problem. 7. Develop a sustainable set of sup- U.S. citizens use an average of 380 distributing water around the world ply chains that provides potable water liters of water daily; Germany uses 129 is creating a better set of global sup- to those most in need. liters daily, while developing countries ply chains with data that can be 8. Create sustainable funding and use up to 30 liters. Can countries like checked without political interven- maintenance of these supply chains. the United States use less water, or at tion. Organizing a plan to deliver 9. Locate people who can create least fi nd the means to share more? water by truck, boat, or pipeline is pre- water technology, study hydrology, Worldwide, every person needs more mature if the data is faulty. and plan continuous water resource than two quarts of drinkable water We also need to examine the para- measurements globally. daily, which equals 11 billion liters. dox surrounding the cost and delivery 10. Find a way to fund water re- Industrialized nations with a smaller of liquids. For instance, people in an search globally. percentage of the world’s population average U.S. city pay about $4 a gallon 11. Study desalination, bottled water use more than non-industrialized with for gasoline; truckers pay $5 a gallon distribution, and recycling. far larger populations. Global water for diesel. The average cost of bottled 12. Develop water conservation consumption is still increasing but the water is $6 a gallon. Bottled water and through intelligent control of indus- sources are diminishing. We are reach- at-the-pump gas have signifi cantly dif- trial and consumer pollution, and ing a breaking point. ferent supply chains. Why? recycling omissions. An estimated nine children die every The following series of steps is a 13. Study the use of empty contain- minute from water-related issues such start to addressing the water problem. ers moving back to China. Could they as dehydration, cholera, typhoid, and 1. Find out how much water is avail- deliver water? diarrhea. The highest-risk countries are able in each country. 14. Assemble a team of supply chain located in Africa, Asia, and Central and 2. Determine what resources are experts to plan and execute the use of South America. This widespread water available in each country. existing businesses and services that problem will wear away people and 3. Identify the barriers to delivering already distribute water. societies one drop at a time. water and increasing water use. Then sit back, enjoy a bottle of water One solution to more equally 4. Map out how water is delivered or Snapple, and relax. ■

10 Inbound Logistics • September 2008

READER PROFILE by Merrill Douglas

Navigating a Career in Supply Chain Management

s a college student studying busi- East to the customer’s hands.” ness management, Steve Schad With Schad managing inbound A thought a lot about links, but not transportation, TomTom ships product the ones in the supply chain. “I thought to a warehouse in Texas operated by a I’d be on the PGA tour,” says this avid third-party logistics provider. The 3PL golfer. “But that didn’t work out.” packages the basic navigation units with What did work out was a 30-year peripherals such as power adapters and career in supply chain management and operations. And for a man whose career has propelled him around the The Big Questions POINT A TO POINT B world, what better place to end up than What do you do when you’re at a company that helps drivers navigate not at work? NAME: Steve Schad all over the map? Schad is vice president I’m family-oriented and love TITLE: Vice president of supply chain of supply chain operations at TomTom working around the house. I also operations, since 2006 Inc., a leading vendor of personal navi- play golf, although not as much as I’d like. COMPANY: TomTom Inc., Concord, Mass. gation systems and software. Schad has been managing electronics Ideal dinner companion? PREVIOUS Director of general EXPERIENCE: since his fi rst job at Digital Equipment My father, who passed away in international area, Digital Corp., where he started out expediting December. Equipment Corp.; vice president of services supply parts to locations that urgently needed What’s in your briefcase? chain, Asia-Pacifi c, Compaq them. “I would source the parts, pro- My passport, business cards, Computer; vice president cure them, then deliver them,” he says. calculator, work papers, family of Europe, Middle East, and “I often drove around with parts in my photos, and index cards. Africa supply chain, Hewlett- car trunk.” If you didn’t work in supply Packard At TomTom Inc., the unit of chain management, what would EDUCATION: BS, business management, Amsterdam-based TomTom NV that cov- be your dream job? Lesley College, 1992 ers the United States and Canada, Schad To travel around the world as part of an organization that helps is responsible for supply chain, order underprivileged people. administration, customer support, and information technology. “I manage the Your idea of a successful day? operations process end to end,” he says. First, when our customer service organization has a good day, Schad’s biggest supply chain chal- because that means our customers lenge is bringing in just the right volume are happy. Second, when I get an of product from factories. “We’re cur- end-of-day report that all deliveries rently in a hot, growing market,” he says. are made, which means our other “So I’m constantly balancing inventory customers — the retailers — got their with supply. I’m responsible for forecast- product on time. ing and managing materials from the Far

12 Inbound Logistics • September 2008 printed instructions. Schad’s team then Throughout his career, Schad has upload the software into every unit’s handles retailer orders and outbound dealt with hurricanes, cargo that disap- memory. “We shipped Sunday night, transportation. “We manage shipments peared when a ship sank, and a variety and met the promised commitment on to the point where the retailer receives of other crises. In a past job, a memo- Monday,” he says. and signs for it,” he says. rable crisis arose as he worked to keep a That story aptly illustrates one of He’s also in charge of the returned commitment to deliver a popular prod- Schad’s favorite mottos: “We can do merchandise authorization process and uct to customers on a Monday morning this.” When faced with a challenge, the reverse logistics, as well as the sale of after the hardware arrived at the dis- easy way out is to say it just can’t be over- refurbished units into the secondary tribution center completely devoid of come, he explains. But staying ahead in market. software. a competitive market demands a more Schad points to one large source of “I had to rally the troops – the peo- positive response. pride in his job: This year, J.D. Power ple who worked for me and even people “I have to be the leader for my team and Associates’ Certified Call Center from other organizations – to drive to the in saying, ‘we can,’ even when I don’t Program recognized TomTom’s call cen- warehouse and set up an assembly line know how,” Schad says. “I don’t always ter operation for excellence in customer on picnic tables,” Schad recalls. have all the answers, but it’s a spirit I try satisfaction. A group worked over the weekend to to live by.” ■

SOMERSET, NEW JERSEY

Outstanding 324,337 sq. ft. facility on 27 acres

• Main building - 296,337 sq. ft. • Ceiling height 24’6” • Sixty dock-height doors and one 12’ x 14’ • All utilities drive-in door • 17,500 sq. ft. of modern, air-condition office space • Auxiliary building - 28,000 sq. ft. • Ideally located in Central New Jersey, just minutes to I-287 • Fifty-one dock-height doors and three 12’ x 14’ with strategic access to Interstates 78 and 95, the Newark drive-in doors Liberty International Airport and the Port of New Jersey-York • Loading area fenced in with guard house security • 520 automobile parking spaces For complete details contact: • 110 trailer stalls BINSWANGER 264 SOUTH STREET, BUILDING 2, SUITE 1A, MORRISTOWN, NJ 07960 • Expansion potential 973-292-1203 • FAX: 973-292-1208 • E-MAIL: [email protected] WORLDWIDE COVERAGE • WWW.BINSWANGER.COM/SOMERSET_NJ

September 2008 • Inbound Logistics 13 NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS

TRENDS

EXCLUSIVE: JDA SOFTWARE SWALLOWS I2 TECHNOLOGIES Big Pond, Fewer Fish by Ian Hobkirk n Aug. 10, 2008, JDA Software signed a defi nitive agreement to Oacquire i2 Technologies for approximately $346 million, uniting two key rivals in the transportation management system (TMS) space. While the implications for current customers won’t become manifest How will JDA’s until JDA releases its much-anticipated product roadmap, it is clear acquisition of i2 that the situation for mid-sized companies seeking affordable TMS impact technology just improved signifi cantly. buyers? IL invites an In the late 1990s and early 2000s, i2 and Transportation management is only a Manugistics were the two giants in the sup- portion of what these two supply chain industry analyst to ply chain planning and transportation giants offer – both companies provide strong cast some insight. management software market, fi ghting it supply chain planning, demand manage- out in the heyday of the tech bubble when ment, and retail planning products – but in globalization was an emerging concept. But today’s business climate, containing trans- when Manugistics fell behind technologi- portation costs is a key initiative for many cally and was acquired by JDA in 2006, i2 shippers. and Oracle assumed the dominant role as It remains to be seen what JDA’s strategy TMS providers for large, global companies will be going forward. JDA says the merger seeking greater control of logistics costs. will allow it to leverage each company’s This fi eld has once again contracted. key strengths in a single offering, with JDA

14 Inbound Logistics • September 2008 $/%39/52 '5!2!.4%% ')6%9/54(% %$'%/&

-OST,4,CARRIERSCANGUARANTEEON TIMEDELIVERY"UTLETSFACEITˆTHATDOESNT GIVEYOUANEDGE&ORNOADDITIONALCHARGE 3AIAS8TREME'UARANTEEšGIVES YOUGUARANTEESINONE4HEYCOVERWHATYOUCAREABOUTMOST FROMTHEPICK UP CALLTHROUGHINVOICING DELIVERINGCONFIDENCEFROMSTARTTOFINISH)FWEFAILONANY OFTHE YOURSHIPMENTSFREE3OWEREGOINGTODOITRIGHT)TSTHATSIMPLE 7HENYOUVEGOTTHEEDGE YOUVEGOTTHEBESTGUARANTEEINTHEBUSINESS

'ETTHE8TREME'UARANTEEACROSS3AIAS  STATEDIRECT COVERAGENETWORK $OYOUHAVETHE%DGEOF 6ISITWWWSAIAXGCOM ORCALL   FORMOREINFORMATION TRENDS NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS ‹ CONTINUED FROM PAGE 14

addressing retailers, the old Manugistics portfolio covering process manufactur- Simon Says ing, and i2’s applications oriented to IL baited Manufacturing Insights’ Simon Ellis to assess how JDA discrete manufacturing. Talk to industry Software’s prize i2 catch will reshape the technology landscape. analysts, however, and the distinctions among the three companies are not so IL: What should existing i2 and JDA customers make of this news? clear. Ellis: There is no need to panic, but thinking through the alternatives and hav- “There is signifi cant overlap between ing contingency actions ready is wise. Once you understand your plan, monitor JDA’s offerings and those of Manugistics JDA’s progress toward the integrated decision environment. If you don’t see and i2; for example, both provide strong that progress, the safer and more logical route is to put your money with SAP or TMS products,” says Nari Viswanathan, Oracle. For companies requiring industry-specifi c capabilities, JDA will have to research director for The Aberdeen show it can improve its product along a number of vertical paths. Group’s supply chain planning prac- tice. “The question remains whether JDA IL: To what extent does continuing consolidation within the segment change will follow the path of companies such how smaller, best-of-breed IT vendors pursue new as Infor that have maintained separate customers? products for specifi c vertical industries, Ellis: Opportunities still exist for best-of-breed vendors, or if it will eventually provide a single particularly those with either a specifi c industry focus retail and manufacturing platform.” or high level of narrow functional expertise. While end No company wants to be stranded on users increasingly express concern about ease of inte- a platform that is no longer enhanced, gration, the reality is that in many areas best-of-breed which raises a red fl ag for current users. vendors still hold signifi cant functional advantages. While JDA competitors would not The evolution of service-oriented architecture makes go on record, they do express concern integration among different vendors easier. And the about users having to migrate to a new rapidly expanding global nature of supply chains, com- platform if their existing one is no lon- bined with massive energy cost increases, has restored ger being enhanced. “When users are some sensible balance to the need for advanced func- SIMON ELLIS leads tionality and visibility. The likes of SAP and Oracle have the supply chain forced to migrate to a new platform, the signifi cantly closed the functionality gap in recent strategies practice at developer can only do so much to miti- Framingham, Mass.- gate the pain,” says one product manager. years, so the long-term survivability of small, best-of- based Manufacturing breed vendors will depend upon their ability to retain Insights. “Licensing pain may go away, but re- industry-specifi c distinctions. implementation pain does not.” “Even when some enhanced function- IL: How does this new supply chain application megalith frame the existing ality might be available, most companies rivalry between SAP and Oracle? prefer to keep the application they have,” Ellis: Application vendors can be in one of three places: scale, niche, or in the says John Fontanella, vice president of middle. Scale vendors such as SAP and Oracle offer strong functionality, broad research for AMR. “The cost of switch- industry appeal, and the benefi ts of enormous scope and market traction. Niche ing is just too high.” vendors have the laser focus of specifi c functionality with narrow industry JDA CEO Hamish Brewer offered a appeal and the ability to be agile and responsive. Sitting in the middle, without glimpse into the company’s plan during SAP/Oracle scale, can be a dangerous place and will require JDA/Manugistics/i2 an investor call after the i2 acquisition to be very clear about where it focuses future strategic investments. announcement. “Our goal will be to The consolidation of one-time market leaders Manugistics and i2 may provide create one comprehensive offering that a viable alternative to the SAP/Oracle duopoly. But JDA will have to show a com- we can deliver across the entire manu- mitment to spending development dollars to maintain functional advantages, and marketing dollars to stretch beyond its retail comfort zone. The avenue to facturing market,” he said. “We’re not success may be in presenting a complete collaborative decision environment for going to look at it as two distinct solu- the supply chain domain – from strategic to tactical to operational decisions – all tion offerings.” integrated for complete closed-loop performance control. The technology Companies should not draw any con- enabler may be in a combination of product platforms – process mapping from clusions before the roadmap is rolled out, i2, scalable data handling from Manugistics, and advanced analytics from the cautions Larry Ferrere, JDA’s chief mar- JDA legacy. keting offi cer. “JDA has a strong record of supporting and enhancing parallel products simultaneously when it makes

16 Inbound Logistics • September 2008
 

     
                                          !                       
         !"!# !

   
   
   
 

        TRENDS NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS ‹ CONTINUED FROM PAGE 16 sense,” he notes. As an example, Ferrere cites E3 “Customers should lobby JDA and Manugistics’ demand manage- ment applications, both of which were heavily to enhance and innovate acquired by JDA. They have overlapping the platform they are using — and functionality, are actively sold and used, and are still on an enhancement track. do that lobbying now. JDA’s Mid-sized companies seeking a TMS promised roadmap is due solution will likely benefit from this in the next two months merger. LeanLogistics, MercuryGate, Sterling Commerce, and Transplace and pressure from large corporate currently dominate the market, and all users may infl uence the path the offer a rapidly deployable product on a Software-as-a-Service (SaaS) platform. company chooses.” i2’s FreightMatrix product line is also — Ian Hobkirk SaaS-based, providing the international transportation management functional- ity that many players lack. mid-market shippers and third-party marriage between a company with a “On-demand TMS projects are our fast- logistics companies globally.” product, and one with access to a key est growing area of business,” says Razat JDA, which uses both direct sales and market segment. Guarav, vice president, global trans- re-seller partnerships, claims many more Current customers are reluctant to portation and distribution group for i2 mid-sized clients than i2, but until now, comment on the record about how the Technologies. “We see growing demand JDA has not had a SaaS-based TMS to merger may affect them, but two large for this offering from both large and offer them. So here may be an excellent JDA clients say they see the merger as a means to access a broader suite of applications without the interoperabil- ity issues that can occur when working with multiple vendors. Another source notes that regard- less of whether a company is using one or the other’s applications, they should lobby JDA heavily to continue to enhance and innovate the platforms they’re using – and do that lobbying now. JDA’s promised roadmap is due in the next two months and pressure from large corporate users may infl uence the path the company chooses. Logistics Zen The merger will benefit both mid- Carlile is a proven leader in multi-modal market and large companies, provided transportation and logistics solutions. JDA doesn’t aggressively push users Whether it’s a pallet of tools headed to down a migration path that may not Tacoma or a 100-ton module destined be to their liking. And there’s no indi- for Alaska’s North Slope, Carlile has the cation that this will happen. “JDA did expertise, equipment and connections to deliver peace of mind, every time. exactly what it said it would do when it acquired Manugistics,” says AMR’s Fontanella, “so I’ll give it the benefi t of the doubt that it’ll do the same thing this time, too.”

www.carlile.biz l 1.800.478.1853 — Ian Hobkirk is director of supply ROAD - RAIL - SEA - AIR ALASKA I HAWAII I UNITED STATES I CANADA chain consulting for FORTE, a supply chain facilities and systems provider based in Mason, Ohio.

18 Inbound Logistics • September 2008 Accountability...Air...Alliance Carriers...Analysis and Design...Asset-Backed...Change

Management...China Distribution...Consolidation...Crosswe are Dock...C-TPAT...Customized Solutions...Dedicated...DocumentWERNER Management...Domestic Containers...Domestic Overseas The Leader in Freight Transportation Innovation Distribution...Execution...Expedited...Expedited Intermodal...Expedited Multimodal... READ Experienced Professionals...Export...Flatbed...Free Running...Freight Audit...Freight BETWEEN Forwarder...Freight Management...Freight Payment...Global Network...Global Trans Load... THE Global Visibility...Import...Implement Solutions...Information Management...In-House LINES Information System...Immediate Implementation...Inclusive Execution... Intermodal... Logistics provider, backed by global connectivity, assets, experience and financial stability. Internet Tracking and Tracing...Leading-Edge Technology...Liability Insurance...Licensed WHY NVOCC...Lightweight Trucks...Lightweight Trailers...Load Optimization...Logistic Solutions... SETTLE Long Haul...LTL Consolidation...Mode and Carrier Selection...NVOCC...Ocean...On-Site FOR Management...On-Time Delivery...Operations...Over Dimensional...Pop-Up Fleets...P.O. and LESS? Vendor Management...Power Only Trailers...Procurement...Proprietary Software...Reporting Anyone can make a promise. We deliver. and Analytics...RFPs...Route Optimization...Routing and Cost Management... Short Haul...

Import and export freight management programs | Licensed NVOCC #020343NF, freight forwarder and U.S. customs broker #23348 | P.O. and vendor management programs | Domestic overseas 800.228.2240 Single Point of Contact...Specialized...Sourcing...Supply Chain Management...Temperature- www.werner.com distribution | Information management and global visibility | North American delivery network | Customs-Trade Partnership Against Terrorism (C-TPAT) validated | ACE, FAST, PIP, IATA approved Controlled...TMS Integration...U.S. Customs Broker...Vendor Management...Visibility... TRENDS NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS ‹ CONTINUED FROM PAGE 18 Packaging a Punch rom small package redesigns that use lighter-weight materials with little visible Risky Fchange to major overhauls that introduce new items to store shelves, consumer goods companies are unwrapping new ways to capture consumer attention while Business towing the green line – all in an effort to keep inventory moving and sales rising. Georgia-Pacifi c, for example, recently introduced a major package redesign of its f you don’t think it can happen to Dixie PerfecTouch Grab ‘N Go insulated 12-ounce paper cups. Traditionally, stacked Iyour company, duck, then cover paper cups are wrapped in a polyurethane bag with little room for branding or your assets. Despite a seemingly graphics to grab the customer’s attention. In stores, this form of packaging is typi- endless string of product recalls, cally found on the very top or bottom shelves, out of the prime natural disasters, labor strikes, viewing area. and other contingency cues, To enhance the shelf appeal of its Dixie cups, Georgia- businesses are still vulnerable to Pacifi c redesigned the package to include a paperboard carton that provides more room for brand marketing. The potential supply chain mishaps. box’s rectangular footprint also allows for neater stacking Ninety-nine percent of companies on store shelves and in transit. experienced a supply chain Beyond designing its own innovative product packag- disruption during the past year ing, Georgia-Pacifi c is helping customers meet their own and 58 percent suffered fi nancial sustainability and profi tability goals with its Packaging losses as a result of those Systems Optimization (PSO) program. exceptions, according to a recent The PSO effort entails a fi ve-step process in which a survey of best-in-class companies team of packaging engineers analyzes a company’s entire packaging supply chain. The PSO team then delivers a across all major industries Georgia-Pacifi c is conducted by Boston-based think detailed report outlining areas where cost savings, profi t- rethinking packaging ability, and sustainability can be mutually achieved. with sustainability and tank The Aberdeen Group. In concert with its PSO program, Georgia-Pacific’s effi ciency in mind. Among the most frequent Innovation Institute simulates retail and packaging environments, allowing cus- supply chain disruptions identifi ed tomers to experience sustainable innovation and novel package design solutions in in Aberdeen’s study: action. By leveraging these resources, users can identify and reduce supply chain costs, increase shelf velocity, and measure sustainability factors. % Supplier capacity not 56 meeting demand Show Me the Manufacturing! Raw materials price 49% increase/shortage rue to its nickname, Missouri is put- categories including property, sales, and Tting its best foot forward as a major corporate taxes; unemployment insur- Unexpected changes target for manufacturing and logistics ance; crime; manufacturing share of the % in customer demand 45 activity, according to the 2008 National economy; and foreign direct investment. Shipment delayed/ Manufacturing and Logistics Report Card by By and large, manufacturing and logis- 39% damaged/misdirected Ball State University’s Bureau of Business tics industries across the country are Research. growing despite a general belief to the Faced with longer supply lines In addition to ranking fi rst among the contrary. and shorter customer leashes, 50 states, the Show-Me state earned stel- American manufacturers enjoyed companies need to consider risk lar grades for research and development a record year in 2007, with inflation- factors that cover the entire length efforts as well as relatively low long-term adjusted values higher than in any health care costs and health insurance previous year, according to Ball State of the supply chain, including premiums. High marks also went to University’s corresponding 2008 State source countries, suppliers, Utah, Florida, Alabama, South Dakota, of the Industry report. Nationally, pro- congestion and capacity, fuel and Indiana; at the other end of the duction growth continues to follow a price, and non-environmental grade curve, New York, Kentucky, New robust path, and even as the U.S. econ- catastrophic events, the report Jersey, Vermont, Rhode Island, Maine, omy began slowing in the fi nal quarter indicates. and West Virginia received an “F.” of 2007, industrial production rose at a The report card grades states in 19 rate of 2.8 percent. ■

20 Inbound Logistics • September 2008 THE SMART WAY

We help our customers improve their profits and the environment WE’VE REDUCED OUR TOP SPEED TO 60MPH. Resulting in: 6Reduced Fuel Consumption 6Reduced Carbon Footprint 6Improved Safety

LILY DEDICATED LOGISTICS SYSTEMS On-Site Management Dedicated Drivers Dedicated Equipment Customized Technology Continuous Improvement

LILY TRANSPORTATION CORP. 145 Rosemary Street, Needham, MA 02494 Phone: 800.248.LILY (5459) Fax: 781.449.7128 www.lily.com Contact John Simourian II, President and COO. ext.444

Learn how Lily and other carriers are working to conserve fuel and improve the environment at www.epa.gov/smartway/ GLOBAL LOGISTICS by Joseph O’Reilly

Mexico is FedEx Express’ latest next-day delivery conquest after successful ventures in China, India, and the United Kingdom.

Mexico’s Great FedExpectations FedEx’s commitment to Mexico’s long-term potential should act as a major uilding on successful efforts in for shippers doing business in Mexico, incentive for U.S. businesses exploring BChina, India, and the United demonstrating our continued commit- the country’s maquiladora sector for Kingdom, FedEx Express is introduc- ment to the market and our confi dence manufacturing and sourcing activities ing its fi rst domestic offering in Latin in its future growth,” says Juan N. and an expanding consumer market for America – FedEx Express Nacional. The Cento, president of FedEx Express, Latin new sell-in opportunities. new service, which debuts Oct. 6, 2008, America and Caribbean division. For Mexico’s nebulous transporta- provides domestic next-business-day The launch of a next-day shipping tion and logistics sector, FedEx’s cachet shipping, online tracking and tracing, solution comes as Mexico’s government and experience, coupled with speed and and a money-back guarantee to busi- continues its efforts to invest capital in service expectations, may stimulate a nesses across Mexico. the country’s developing transportation sea-change in how businesses move “Adding domestic service to our port- infrastructure and soaring fuel costs product – creating critical mass and level- folio of international products increases force U.S. businesses to consider sourc- ing standards between the United States our ability to further facilitate commerce ing options closer to home. and Mexico.

22 Inbound Logistics • September 2008 THE WINNING TEAM.

At Landstar, you don’t have to golf to win, you just have to be a pro in the supply chain game!

Be your own Matt Deakins boss, own your Professional Landstar own business, Agent and set your Fred Funk own earnings Eight-Time PGA Tour potential! Champion

PUT YOUR EXPERIENCE IN TRANSPORTATION AND LOGISTICS SERVICES TO WORK AS AN INDEPENDENT LANDSTAR AGENT!

888-489-5644 www.landstar.com LOGISTICS V MULTIMODAL V INTERMODAL V TRUCKLOAD V LTL V HEAVY HAUL/SPECIALIZED V EXPEDITED V AIR V OCEAN V WAREHOUSING GLOBALLOGISTICS ‹ CONTINUED FROM PAGE 22

Air Traffi c Quality Control he forecast for global airfreight transportation processes from shipper to movements and manages shipment Ttransportation is markedly clearer consignee. Members use a common data planning and tracking at the master air with a chance of increasing visibil- management platform (CDMP) to aggre- waybill level. Once a booking is made, ity, thanks to an innovative program gate and integrate individual information a plan is automatically created with a spearheaded by the International Air elements into unified quality reports. series of checkpoints against which the Transport Association (IATA) and grow- Partners can access the same data so transportation of every air cargo ship- ing reception from shippers and service that internal process improvements are ment is managed and measured. providers alike. jointly implemented, especially at inter- ■ Phase 2 manages shipment plan- Fraport, which operates Frankfurt faces linking partners. ning and tracking at the house air International Airport, is the newest The program offers transparency of waybill level and provides interactive member and fi rst airport operator to join quality control data for the entire air- monitoring of door-to-door movement. ■ Phase 3 manages shipment plan- ning and tracking at the individual piece level, plus document tracking. Cargo 2000 Appeal Cargo 2000 first published perfor- Increasingly, airfreight shippers are 2. REDUCE OPERATIONAL COSTS mance data in May 2005. At that time, › selecting Cargo 2000-compliant Decrease time spent manually it measured 148,795 route maps. In June companies as their preferred partners tracking and tracing shipments and 2008, it measured almost 1.05 million to help optimize supply chains in two managing exceptions route maps system-wide. ways: › Increase quality of warehouse and trucking operations because of 1. GROW REVENUE standardized processes and fewer › Enhance client retention and growth failures Crossing Over, through improved service › Facilitate the shift toward paperless › Increase new business based on shipping management Easier “preferred supplier” status provided he state governments of the United by quality performance backed by › Reduce claims reliable data T States and Mexico are working together to devise new protocols for reducing transit times and increasing security that will facilitate commercial traffi c across the border. The joint declaration is the result of collaborative efforts by the Logistics and International Crossings Worktable, a bi-national group of government offi - cials from 10 border states: California, Arizona, New Mexico, and Texas from the United States; and the Mexican states of Baja California, Chihuahua, Coahuila, Nuevo Leon, Sonora, and Tamaulipas. ▲ Frankfurt Airport The Logistics and International Crossings Work Table supports enhanced IATA’s Cargo 2000 quality system, an freight industry and ensures ongoing communications, coordination, and initiative involving approximately 60 air- service improvements for cargo cus- consensus building among the 10 states, lines, forwarders, general handling agents, tomers. In addition, continuous quality encouraging investment in modern and and information technology providers. optimization allows airfreight shippers effi cient infrastructure at ports of entry Cargo 2000 is a worldwide uniform to further reduce costs and increase to strengthen commercial exchange. management system that measures the revenues. The consortium has proposed three quality of the entire transport chain. The quality program is being imple- recommendations to help streamline The program helps air cargo carriers and mented in three phases: cross-border cargo movements: handlers re-engineer and streamline ■ Phase 1 includes airport-to-airport 1. Support U.S. Customs and Border

24 Inbound Logistics • September 2008 Our doors are wide open to Canada...

Do you need a reliable 3PL provider to serve your transportation, warehousing and distribution requirements? Look no further. Robert Transport offers capacity, coverage, and customization in meeting USA shippers’ complete transportation and logistics requirements for Canadian markets.

When you place your goods in our care, you’ll experience our personalized service, leading edge technology and commitment to on-time performance. Service highlights include:

>

2(&,$.,565
,0
64$052146$6,10
)41/
6+(
" 
61
06$4,1
$0'
7(%(&
/$4-(65 >

55(6
%$5('
!
$0'
!47&-.1$'
5(48,&(
8$05
$0'
6(/2(4$674(
&10641..(' >

2(&,$.,<('
(37,2/(06
,0&.7',0*
=
$6%('5
41..
6125
$0'
&746$,0
5,'(5
>

4;
&11.
$0'
)41<(0
5+146
$0'
.10*
6(4/
9$4(+175,0*
 
/,..,10
53
)6 >

,&-
$0'
2$&-
,08(0614;
&10641.
#


6(&+01.1*;
>

#(%
%$5('
 
$&&(55
6+417*+
($&+
2+$5(
1)
6+(
5722.;
&+$,0

www.robert.ca
7@%(&
!(.
  



!1..
4((
     06$4,1
!(.
 



!1..
4((
    GLOBALLOGISTICS ‹ CONTINUED FROM PAGE 24

Protection’s efforts to obtain funding crossings, such as the Otay Mesa East The airport’s Center for Perishable for additional border crossing inspec- Port of Entry in San Diego County, which Cargo (CPC), currently under the fi rst tors and, along with Mexico’s Institute uses alternative fi nancing mechanisms to phase of construction, will be able to of Migration, use available funding to help minimize border wait times. accommodate 16,000 tons of perishable immediately fill inspector vacancies cargo per year. Capacity will expand to at land ports of entry along the U.S.- 27,000 tons when the second phase of Mexico border. The consortium has also Cold Front development is completed by 2015. recommended that both agencies con- As the established hub for India’s sider current and future staffi ng needs Blows Into India pharmaceutical and biological indus- for expanded hours of operation, peak hippers moving perishable goods try, and with more than 3,000 tons of hours, double-stacked inspection booths, Sfrom Asia to the United States may import/export cargo expected annually, and additional port projects. fi nd themselves rerouting shipments Hyderabad’s CPC should draw strong 2. Reduce border wait times substan- through India’s newest transportation demand from research, electronics, and tially by 2013, and complete bi-national gem, Hyderabad International Airport. defense industries that require low-tem- state-to-state regional border master Situated within two hours’ fl ying time perature storage. plans among the 10 states within three of all major cities in India and three Elsewhere, the airport’s cargo com- years. The plans will facilitate regional to fi ve hours from all Southeast Asian plex is building out infrastructure to and infrastructure planning and strate- countries, the recently opened facility increase cargo-handling capacity to gic resource allocation in the U.S.-Mexico expedites perishable cargo movements more than 1.3 million tons. Ongoing border region. within India and connects Southeast development of a cargo logistics center 3. Support border states’ requests for Asia, the Middle East, Europe, and the will provide a fully integrated domestic a presidential permit for international United States. and global facility for freighter operators, freight forwarders, regulatory agencies, and shippers. China’s Port Boom Swings Full Speed Ahead hina’s infrastructure boom is in Cfull swing as efforts to expand cargo-handling capacity throughout the country continue at a robust pace and global shipping enterprises dig in for the long term. One example: The CMA CGM Group, a Marseille, France-based container ship- ping company, recently signed a 50-year concession agreement to build and oper- ate a container terminal at the Port of Tianjin in North China. The new termi- nal, which is expected to be operational in 2011, will feature a 3,600-foot quay and annual throughput capacity of 1.7 million TEUs. Located less than 100 miles from Beijing in the Binhai industrial zone, Tianjin is the natural maritime link to the Chinese capital. The port currently ranks 16th in the world in container

26 Inbound Logistics • September 2008 — chines ma If led you l-oi y r bus t wel our iness is abou war o. ehouse should be, to

When Reviva runs your warehouse, your business moves forward.

Put the horsepower of our 60 years in national warehousing, distribution, and reverse logistics services together with cutting edge EDI and there’s no stopping you. Call today to learn how you can gain effi ciencies when you partner with Reviva—starting with price transparency, reliability, and streamlined technology. We get you where you need to go—smoothly.

To learn how Reviva can improve your warehousing, call 800.578.6009 or visit our website at revivalogistics.com.

The right part. On time. Everytime. GLOBALLOGISTICS ‹ CONTINUED FROM PAGE 26

traffic, handling more than 7.1 mil- lion TEUs in 2007, a 19-percent increase Building a Bridge to China over 2006. So far in 2008, volumes have s yet another example of U.S. motor freight carriers expanding their grown 22 percent. Anetworks and value propositions to stateside shippers beyond bor- CMA CGM also maintains a pres- ders, YRC Logistics recently acquired Shanghai Jiayu Logistics Co., ence at the Chinese port of Xiamen one of the largest truckload and less-than-truckload service provid- and has acquired interests in China Rail ers in China. The agreement strengthens YRC’s position as a global trucker, Intermodal – a project to design, build, and helps it capitalize on increasing demand for experienced and capable and manage a network of 18 railway trucking services in an established manufacturing market and emerging container stations covering the entire consumer economy, diversify operational interests in light of a sluggish Chinese territory, including Tianjin. domestic market, and provide U.S. consignees with an end-to-end supply chain solution. This latest investment secures its strate- With more than 30,000 customers, 1,800 employees, 200 locations, and a gic base in Tianjin, which is poised to network served by 3,000 vehicles, Jiayu provides a complementary platform support continuing industrial growth in for YRC Worldwide to support the needs of both local Chinese customers and northern China. large multinational companies with transportation requirements in China. U.S. shippers and consignees will benefi t from having a one- Labor Daze stop, on-the-ground partner abor strife across the globe may give in China and the United States U.S. businesses pause as they con- that can seamlessly connect L sider both potential sourcing locations point-of-origin and last-mile delivery requirements. and supply chain contingency plans. A week-long transport workers’ strike Bill Zollars (left), president and in Pakistan recently bottle-necked roads CEO of YRC Worldwide, seals with cargo-laden trucks, left ports full the deal with Zhai Guoliang, general manager of Shanghai of import cargo, and had ships leaving Jiayu Logistics Co. port without loading export shipments. Workers were demanding a cut in die- sel prices in line with world oil prices, compensation against vehicles lost in last December’s riots, and a reduction in motor vehicle taxes. As a result of the strike, local busi- nesses lost export contracts because of missed deadlines, letters of credit expired as export cargo sat on roads and at ports awaiting entry, and many exporters were forced to air freight cargo to meet delivery obligations, according to The Karachi Chamber of Commerce and Industry. Elsewhere globally, South Africa’s transport sector recently came to a full halt as the Congress of South African Trade Unions took to the streets to protest soaring food, fuel, and electricity prices. The day-long strike paralyzed the transport, mining, manufacturing, and retail sectors, though adequate warn- ing enabled industries and businesses to take steps to minimize its economic impact. ■

28 Inbound Logistics • September 2008 









 $"
&"$*
&"
%&"$

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

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

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





 


  
 
    Kyle Alexander is general manager of the strategic carrier development group at Transplace. 479-770-7391 • [email protected] 3PLLINE by Kyle Alexander

Cultivating Healthy Carrier Relationships

eveloping robust relationships a service failure or outstanding perfor- the cost of landed goods, enhance service, with your carriers can be chal- mance, as well as the respective penalty improve the carrier’s margins, and often Dlenging, but it’s essential to and reward. It is no longer enough to improve your overall rate structure. establishing well-defi ned expectations. enforce service performance with puni- Capacity shortages and other carrier- tive measures and a paycheck. You can CREATING LASTING ALLIANCES related service issues will inevitably occur, set your company apart with a set of The nature of business relationships so you and your carriers must work unique, credible benefi ts and rewards does not always allow a win-win, but together to sustain a mutually benefi cial for excellent performance. creating an atmosphere where everyone relationship when times get tough. 4. Measure service parameters through obtains something of value can evolve The following best practices can help agreed-upon metrics. Using a standard- into a lasting business alliance. If the you maximize value within your strategic ized scorecard for carriers helps align various representatives can develop a carrier relationships. their goals with your requirements such non-adversarial relationship during crit- 1. Establish trust and credibility with as on-time delivery/pickup, invoice accu- ical or challenging interactions, they carriers. This will not happen overnight, racy, and order automation statistics. In enhance trust and allow more opportu- nor will it happen with all carriers and addition, obtaining feedback on how nities to present themselves, advancing service providers. The key is to identify carriers feel about their relationships and positive outcomes for all parties. and align yourself with carriers whose opportunities with your company can This give-and-take is no different from cultural values closely match those uncover areas where you can become any other type of lasting relationship. of your organization. You can then more effi cient and drive a higher level of Strong relationships survive the good reinforce these relationships through customer service. times and the bad, and continuously reliable volumes, open communication, 5. Create opportunities that maxi mize improve through transparency, sincer- and opportunity development. carrier networks while minimizing supply ity, and direct and open interaction. 2. Communicate specifi c expectations. chain costs. The relationship between a Instilling these values as a core compo- Conveying your strategic requirements carrier and shipper is about more than nent of the shipper-carrier relationship to the carrier’s executive leadership and service expectations, capacity, and rates. can result in a unique alliance built on operations team will develop a collabor- It is also about maximizing the carrier’s integrity and a commitment to success- ative atmosphere. Carriers often respond network value and effi ciencies. fully serving mutual customers. favorably and will build unique service Third-party logistics providers Sound shipper-carrier relationships offerings for valued shippers or share traditionally have a more complete trans- establish an understanding of what both solutions they have developed with portation network that both carriers parties want to achieve. Knowing how to other clients. and shippers can utilize to drive opera- effectively work with your carriers, and 3. Reward outstanding performance tional effi ciencies. Working together to realizing the impact of what each of and enforce established expectations. The understand how their collective behav- you wishes to achieve, will help deliver carrier should know what you consider ior impacts the supply chain will reduce tangible and sustainable results. ■

30 Inbound Logistics • September 2008 #
%"
"
 !  ""


 
 
 
 

$ "
 !  ""
 $!

#!"!
   
 "



#!"
 $
"

  "# 
" 
 "!

 &
! !
$ !'
 

!
 $!#!" 
 
"
 $!" 
   #!" !## !!#&"$#" %%% !!#&"$#" RELIABILITY IS EVERYTHING.

The right products, the right place, at the right time.

You won’t see us confusing wading pools with wheels. At WSI, we understand that optimizing your supply chain is much more than moving product. It’s about satisfying demand. Operating efficiently. Outperforming competitors.

Reliable, integrated solutions. For over 40 years, WSI has helped customers succeed by consistently delivering on our commitment to Condition, Count, and TimeSM – ensuring that products are delivered accurately, timely and soundly. Our fully integrated supply chain solutions include: LOGISTICS Extensive expertise and leading-edge technology allow us to develop customized logistics systems for increased efficiency and reduced costs. WAREHOUSING We manage more than 14 million square feet of warehouse space nationwide, with sophisticated inventory management and reporting. DISTRIBUTION Our strategic national network of distribution centers enables next-day service to the majority of the U.S. TRANSPORTATION We can negotiate the best rates and efficiently manage our customers’ transportation needs via rail, truck, LTL and intermodal transport. Would you rather worry about your supply chain, or depend on it? Choose dependability. Choose WSI.

[email protected] 800-999-2545 www.wsinc.com Michelle Meng-Hsiung Kiang is vice president of marketing at PINC Solutions. 510-845-4900 • [email protected] ITMATTERS by Michelle Meng-Hsiung Kiang

Real-Time Location Systems Cover Your Assets

he ability to track assets in a broad visibility in today’s globalized supply recognize trailers by the tags, and report geographic area, typically out- chains renders RTLS an indispensable the location data in real time. T doors, is key to transportation part of logistics technology investments. RTLS also enables management management. Satellite and cellular net- By combining elements of GPS and pas- to monitor yard operations’ key per- work-based technologies are often used sive RFID technologies, RTLS solutions formance indicators (KPIs) based on for real-time asset tracking outdoors. take advantage of both technologies’ quantifi able productivity metrics mea- But to track assets indoors – in factories, strengths. sured by the actions of the yard trucks. warehouses, or other controlled environ- Managers cannot reliably and accurately ments – Global Positioning Systems (GPS) TRACK STAR collect information such as average time and cellular-based systems lack suffi cient Mobile asset tracking in the yards per move and percentage of idle time by signal strength. Alternative techniques illustrates the unique use of RTLS, in manual tracking or other means. employing low-cost location labels such that the environment is outdoors, yet The benefi t of having real-time elec- as bar-code and RFID tags are often used within a contained physical space. tronic data for asset-location yard for indoor asset tracking. In the yard’s outdoor environment, activities extends beyond improving There is a supply chain visibility using proven technologies such as GPS supply chain visibility at a particular gap in the yards, however, where over- to monitor tractors’ speed and position locale. Not only do corporations gain the-road tracking ends but the assets eliminates the need to establish loca- actionable data to facilitate process have yet to enter the confines of the tion-detecting infrastructure. redesign and increase operational effi - warehouse. Until recently, manual, On the other hand, you can draw an ciency, they now also have information resource-intensive processes were typ- analogy between trailers in the yard and to drive best practices across all organi- ically used to track trailer and tractor pallets in the warehouse: They remain zations and sites. location and status in the yard. These immobile until hooked up to the equip- Finally, being able to share real-time methods leave data integrity vulnerable ment used to move them to the next visibility data within the enterprise as to human error and a lack of real-time destination. Passive RFID tags have lon- well as with supply chain partners is updates. Yard process ineffi ciency may ger read ranges than bar codes but don’t crucial for enabling collaboration and negate visibility gains from investments require direct line-of-sight to acquire transforming to a more responsive and in asset tracking during transportation data, making them one of the most eco- agile global supply chain. or in warehouses. nomical ways to obtain real-time trailer By minimizing the dependency on Real-time location systems (RTLS) position in the yard. infrastructure investment, the new technology determines an object’s Combining GPS and RFID leverages breed of RTLS-enabled yard manage- current position based on real-time existing yard processes. While yard ment solutions combines the cost and information gathered through a wireless tractors carry out their regular duties, availability advantages of passive RFID system. Increasing demand for real-time attached GPS-enabled RFID readers and GPS technologies. ■

September 2008 • Inbound Logistics 33 C. Daniel Negron is vice president, TT Club •201-557-7320 [email protected] RISKS REWARDS& ISSUES AFFECTING LIABILITY MANAGEMENT by C. Daniel Negron

A Behind-the-Screens Look at Air Cargo

I am an air consolidator and Certified Cargo Screening Program per facility. The TSA is also considering arrange to ship cargo to (CCSP) to meet the act’s requirements. alternative business models for inde- Q: domestic and international This program relies on the coopera- pendent facilities that could receive destinations. I understand that the tion of the air cargo industry’s many break-bulk cargo, provide screening ser- Transportation Security Administration stakeholders to ensure that screening is vices to customers, then assemble the is developing a system to subject 100 conducted in the early stages of the sup- goods into pallets for delivery to the air percent of domestic and international ply chain. carrier. cargo to security screening. Are you The program envisions designating For the foreseeable future, the CCSP familiar with this initiative, and how will Certifi ed Cargo Screening Facilities to will be confined to shipments origi- it affect my operations? inspect cargo before it is loaded onto nating in the United States because an aircraft. These facilities would be inspecting cargo in foreign countries Last year, Congress en acted operated voluntarily by air carriers, creates its own challenges. Foreign gov- “Im ple ment ing Rec om- manufacturers, shippers, indirect air ernments maintain their own security A: menda tions of the 9/11 carriers, and air cargo handling agents systems, which often differ from TSA Commission Act of 2007.” This act who meet the TSA’s established security standards, and they do not allow carriers requires the Transportation Security requirements and who agree to be sub- access to cargo that their own personnel Administration (TSA) to implement ject to periodic TSA inspections. have already screened and secured. The a system for physically screening The facilities would screen cargo using TSA has begun working with a number 100 percent of cargo transported on TSA-approved methods and implement of governments to adopt uniform mea- passenger aircraft by August 2010. the chain of custody measures necessary sures for screening cargo destined for Under its phasing-in provision, the to ensure the cargo’s security before it is the United States. system must be screening 50 percent tendered for transport. There is little doubt that if you intend of cargo by February 2009. to ship your cargo on a passenger aircraft, Approximately 12 million pounds MAKING PROGRESS it will be subject to security screening of cargo are transported each day on In a recent congressional hearing, as early as the beginning of next year. passenger aircraft in the United States, the TSA reported that it had made sig- In fact, your goods may already be reports the TSA, which acknowledges nifi cant progress with the CCSP, which subject to screening if you ship from air- that complying with this mandate has received support from the air cargo ports that have implemented the CCSP could prove burdensome to air carriers industry. To remain competitive, many program. and operators like you who ship goods operators are looking to participate in In light of these new security mea- through the nation’s airports. the program. sures, it’s wise to determine whether to Because carriers have to screen all But implementation expenses may seek authority to operate your own cargo cargo at the airport’s premises, delays, prove challenging to some; the new screening facility or use the services of congestion, and backlogs can result. technology required under the program your air carrier or another certifi ed facil- That’s why the TSA is developing the costs between $150,000 and $500,000 ity to conduct these inspections. ■

34 Inbound Logistics • September 2008 We Make Every Piece Fit In Your Logistics Puzzle

If the elements of your supply chain fail to work together smoothly, profitability suffers. Let the experts at BNSF Logistics find the best way to make the pieces of your logistics puzzle fit together seamlessly. We offer domestic and international services with a focus on environmental and financial sustainability. From single shipments to comprehensive supply chain management, you can be confident that our expertise will consistently deliver the right solution for you, at the right cost for your organization.

Environmentally & Financially Sustainable Solutions 36 Inbound Logistics • September 2008 BATTLE-WEARY SHIPPERS DESIGN STRATEGIC NETWORKS TO WITHSTAND MARKET CHALLENGES

by Lisa Harrington GROUND TACTICS OPTIMIZING TRANSPORTATION NETWORKS

he double whammy of a flagging economy and record high fuel prices is changing the economics T of transportation in the United States. While every mode is affected, the dynamics playing out in the truck- ing sector are likely to have the most far-reaching impact on supply chain network design and strategy. “The trucking sector is comprised of many small companies, and they are going bankrupt at a rapid rate,” reports Dan Van Alstine, senior vice president and general manager of Schneider National’s van/truckload division. “The number of small company bankruptcies triples weekly. And every other week, a large carrier – with 300 to 1,000 units – exits the business. Six to nine percent of the total population of truckload (TL) car- riers have left the business since the start of 2008.”

September 2008 • Inbound Logistics 37 “During the fi rst part of 2008, truck- The less-than-truckload (LTL) sec- fi nancially viable, and negotiating rate load fl eets that operated fi ve to 10 trucks tor has been similarly hard hit. This structures that smooth out spot-mar- went out of business,” notes Tom Barnes, year has brought two major bankrupt- ket volatility. This is exactly what New director of transportation for Menlo cies – Jevic Transportation and Alvan York-based Scholastic Inc., a publisher Worldwide Logistics, a 3PL based in San Motor Freight – with the potential for of children’s books including the sen- Mateo, Calif. “As we enter the third quar- three or four additional LTL failures in sationally successful Harry Potter series, ter, fl eets with 70 to 90 trucks are going the $100- to $125-million range. has done. out. And large carriers are taking trucks Both motor carriers and shippers “Scholastic has worked hard during out of service and putting them ‘on the believe a trucking capacity shortage is the past few years to negotiate fuel sur- fence’ to reduce capacity.” imminent, and that its impact will be charge ‘caps’ in many logistics supplier Since 2004, Schneider National’s signifi cant. “The high cost of fuel is driv- contracts,” says Tim VandeMerkt, vice cost per mile has increased by about 80 ing trucking capacity out of the market president, global logistics for Scholastic. percent, largely driven by fuel prices. more rapidly than people realize,” says “As a result, a signifi cant portion of our “The mile is our ‘widget’,” Van Alstine Derek Leathers, chief operating offi cer logistics spend is contractually protected

One way to ride out high fuel costs is to partner with reliable, fi nancially sound carriers. UPS Freight, for instance, helps Scholastic Inc. hold the line on transportation expenses by agreeing to a cap on fuel surcharges.

observes. “When costs go up so tre- of Werner Enterprises and president of against any material impact from higher mendously, we are forced to behave Werner Global Logistics, Omaha, Neb. diesel fuel prices. differently. For example, we rethink “Approximately 45,000 trucks left the “Our logistics partners, including Con- where we hire drivers so we don’t waste market in the fi rst quarter of 2008; more way Freight, DHL, UPS, YRC Worldwide miles getting them home.” will leave in the second quarter.” and its subsidiary YRC Logistics, have “Fuel is the killer for deadhead miles,” Schneider’s Van Alstine agrees. helped us weather this period of elevated notes Morgan Anderson, global director “Within 18 months, I expect to see a seri- fuel costs by living within the terms and of account management for Menlo. “Fuel ous trucking capacity crunch,” he says. spirit of our agreements,” VandeMerkt used to comprise 15 to 20 percent of a TL While these issues are foreboding, adds. “That is no small effort on their carrier’s costs; now it’s more than 40 per- shippers can take steps to reduce the part. It demonstrates their character and cent. In the past, carriers drove 50 to 100 impact on supply chain networks. integrity, as well as the long-term view miles to get a good load. Today, they can’t 1. Partner with carriers. Shippers are they have taken of our business.” recoup that cost, so they have reduced locking down long-term capacity solu- 2. Regionalize networks. To combat truck the deadhead threshold drastically.” tions, making sure their providers are capacity and fuel challenges, many

38 Inbound Logistics • September 2008 How do we do it? AFN’s Goal is to provide our On average, ten percent of the cost of goods sold in the US Customers with a competitive advantage in moving their is directly attributable to the transportation and warehous- freight by matching their transportation needs with the many ing of product. AFN will move your toughest load, manage niche services of our select Carrier Partners. Daily buying and your entire logistics department, or provide you with any selling of capacity with special care given to each shipment level of service in between so you can optimize the value of ensures that every load ships The Best Way Everyday®. your logistics spend. AFN is a non-asset-based provider of logistics and trans- Whether you are looking to expedite a single piece of freight portation services throughout North America. Our focus is cross-country, set up dedicated routes, want to move your on full truckload and less than truckload brokerage and truckloads without the hassle of making 20 calls, or need logistics services. AFN aggressively matches your needs assistance optimizing and managing your entire logistics with the many niche services of our select Carrier partners. network, we’re the logistics provider for you.

Start moving your freight The Best Way Every Day.® Call AFN now at 866-7MOVE-IT for our credentials.

Advantage Freight Network, LLC.  1435 Lake Cook Road  Deerfield, IL 60015 Toll Free: 866-766-8348  847-498-8885  Fax: 847-498-5575  [email protected] companies are re-thinking their physi- cal distribution networks. “Most supply chains and manufac- turing networks were designed in an COLLABORATING era when fuel prices were signifi cantly lower and transportation costs were rea- sonable and stable,” says Brooks Bentz, partner, supply chain management with global consulting fi rm Accenture. ROCK-TENN CO. “Companies aimed to consolidate ware- TO SAVE houses and manufacturing plants. “Today, with fuel costs rising so pre- When fuel costs began to skyrocket, Rock-Tenn’s fi rst response was to “control cipitously, they are pushing toward the impact on carrier pricing,” recalls Ben Cubitt, vice president of supply chain. having more facilities located closer to “We concluded that high fuel costs are here to stay, so we needed to build a strat- the customer,” he adds. “The point is to egy around them. We had to make our supply chain as effi cient as possible.” rationalize the network to shorten trans- Rock-Tenn, Norcross, Ga., manufactures packaging products, bleached and portation time.” 100-percent recycled paperboard, and merchandising displays. It operates 92 facilities in 26 states, as well as Canada, Mexico, Chile, and Argentina. SLOWING IT DOWN Reducing empty miles across the supply chain was one immediate goal. “We In addition to regionalizing their started identifying empty miles not just in our own network, but in our custom- ers’ and suppliers’ networks as well,” Cubitt says. “We looked at our customers’ networks, companies are slowing down dedicated truck fl eets and empty miles, and began matching our collective their supply chains to reduce transporta- inbound and outbound freight fl ows. By tying our internal moves with customers tion costs. They are forgoing high-priced, and suppliers, we reduced empty miles across the network.” high-service transportation and shifting Rock-Tenn met with customers and suppliers to explore these opportunities. to slower, lower-cost modes – switching “We started by helping fi ll empty miles on one customer’s dedicated fl eet,” Cubitt air to surface, and truck to intermodal reports. “We have also begun to match up our inbound and outbound loads.” or rail, for example. The manufacturer had examined fi lling empty miles with a few customers in “Cross-country truckload transit takes the past, with little success. “But today, with fuel prices so high and capacity fi ve days unteamed, rail-truck takes six constraints so imminent, our business partners are getting serious about these days, intermodal takes seven days, and efforts,” Cubitt says. boxcar a week or more beyond inter- Such collaboration is impossible to achieve without real-time visibility into sup- modal,” notes Anderson. “Companies ply chain activity. Rock-Tenn embarked on are deciding that adding a day or more a multi-staged approach to gain this visibil- to their transit times can work.” ity. First, it outsourced its manual freight Shippers are pursuing mode conver- payment to Cass Information Systems, a sion more aggressively than in the past, Bridgeton, Mo., payment and information agrees Leathers of Werner Enterprises. services provider. “By outsourcing freight “Shippers are showing signifi cant inter- bill payment, we gained access to data est in converting LTL to truckload,” he concerning our freight fl ows – a rear-view says. Truckload, in turn, is converting to mirror on what we ship,” Cubitt explains. intermodal. Next, Rock-Tenn outsourced transporta- Rail-truck intermodal is well-posi- tion management to Transplace, a non-asset-based third-party logistics provider based in Plano, Texas. “Using Transplace’s transportation management system tioned to handle the additional volume. and load management center in Arkansas, we gained the, technology, visibil- By most estimates, 10 to 20 percent of TL ity, carrier selection, and optimization tools we needed to fi rst link our internal freight could still switch to intermodal, inbound and outbound freight, then look for matches elsewhere in our supply Leathers reports. Part of the reason for chain.” intermodal’s increasing popularity is Although Rock-Tenn is only in the early stages of implementing these network that railroads have boosted train veloc- consolidation and optimization efforts, Cubitt is pleased with the progress. “If you ity by several miles per hour system-wide look at the impact of matching networks with individual customers, the results over the past two years. could be considered disappointing,” he says. “But if you look at it across 20 cus- The challenge of mode shifting – and tomers or suppliers, it makes a signifi cant difference.” buying transportation in general – lies in As for the future, Cubitt says he is “very concerned” about carrier capacity keeping service levels high while reduc- over the coming months. “We measure and watch carrier tender acceptance and on-time pickup and delivery performance very closely,” he notes. “Nationwide ing costs. capacity shortages are coming, and we’re worried. So we’re trying to align with The retail sector in particular – strong carriers that will survive and thrive.” known for its demanding service

40 Inbound Logistics • September 2008 IL_full_Sep08:Layout 1 8/6/2008 6:01 PM Page 1

A distribution solution that requires less time, less space and less labor with a fast ROI? What are you waiting for?

From analysis to design to implementation and beyond, Diamond Phoenix Integrated Solutions help you achieve business goals that boost your competitive edge. Highly productive facilities keep items moving through at faster rates, with higher accuracy and lower costs. Let us show you how you can:

� Increase throughput � Lower cost per order � Eliminate residuals completely � Reduce footprint size � Increase capacity � Improve order accuracy � Dramatically increase efficiency

Contact us today to learn how your facility can become leading edge. 1-888-233-6796 | [email protected] www.diamondphoenix.com/LEAN WERNER CO. “We are a truckload shipper, fi rst and foremost,” says David Conn, senior vice pres- ident of logistics and supply chain for Werner Co., Greenville, Pa., the world’s largest manufacturer and distributor of ladders and related climbing products. “However, we use more less-than-truckload (LTL) than we would like — 25 percent of shipments move via LTL,” a consequence of the small customers Werner serves. Werner has been hit hard by the impact of high fuel prices combined with revised driver Hours of Service rules. “Before the revised rules took effect, we lived in the world of LTL consolidation,” explains Conn. “We used to send fi ve or six separate cus- tomer orders on each truck.” The amended Hours of Service rules, however, now limit the number of stops per truck trip Werner can schedule. Drivers run out of hours and the economics of such scheduling are no longer favorable. So some of the company’s multistop freight has migrated, by necessity, to LTL. Alternatively, the company sends out lighter truckloads. To reduce transportation costs, Werner has retooled its distribution network exten- sively during the past fi ve years. Interestingly, this change runs counter to the network regionalization trend. Six years ago, Werner operated four domestic plants with distribution centers attached to each. As a result of a manufacturing strategy change, only one of the four plants is still operating. The bulk of the company’s production relocated to Juarez, Mexico, and certain products were offshored to China. Werner is in the fi nal stages of consolidating its full-service DC network to a single facility in El Paso, Texas, just across the border from its largest North American pro- duction plant. The manufacturer also operates a combined plant and DC in Merced, Calif., as well as a network of small warehouses to provide product availability in key RETOOLING THE RETOOLING metro markets for quick turnaround, will-call, and regional LTL shipment. NETWORK

requirements – will have to thoroughly month or longer,” Bentz says. “From freight, where they would like to have it, assess its cost and service tradeoffs. Mexico, transit time is one week. Some and where they need it. “Consumers do not want to walk into a companies are wondering if offshore “There are 700,000 trucking com- store and fi nd a $7 pair of fl ip-fl ops with sourcing is all it’s cracked up to be.” panies in this country,” Bentz says. a $2 fuel surcharge slapped on,” Bentz “Businesses aren’t picking up their “Shippers that match up their networks observes. whole sandbox and moving to Mexico with the carriers’ fl ows get the power 3. Weigh nearsourcing vs. farsourcing. yet,” notes Griffi th. But they are bring- of overlapping networks. If they get it Escalating fuel prices are beginning to ing some production back to this right, they reduce empty miles, give impact production strategy – causing continent – reeling in at least a portion carriers what they want, and earn bet- companies to take a fresh look at low- of their supply chain. ter service.” cost country sourcing. Several years ago, The declining value of the dollar Shippers should let carriers fi gure out fuel represented 35 percent of the cost of relative to other currencies is accelerat- which freight fi ts their networks, Bentz running a container ship; today, it com- ing this trend. “In effect,” Griffi th says, believes. This differs from the traditional prises 65 percent. Ocean freight rates “companies are building dual supply approach of putting specifi c lanes out have risen accordingly. points – bringing some closer to home to bid and seeing what carriers come up To conserve fuel, many ocean con- rather than relying solely on Asia.” with. It enables carriers to truly optimize tainer lines are slowing their vessel 4. Mesh transportation networks. A hand- their assets while providing shippers the speeds, which in turn lengthens transit ful of leading companies are changing best service. times. Longer transit times translate into the way they secure optimal transporta- higher carrying costs for shippers. tion service coverage for their network QUESTIONING EVERYTHING The convergence of higher ocean rates requirements. When it comes to the state of the U.S. with inventory carrying costs means “Shippers operate a network of trucking industry and its impact on cor- that some companies offshoring produc- inbound and outbound freight fl ows,” porate supply chain networks, there’s no tion to the Far East are not realizing the Bentz explains. “They also collect vol- such thing as status quo. “Companies benefi ts they thought they would. umes of data about where their freight are redesigning their distribution net- “Transit time from the interior of comes from and goes to. What they works in new ways,” Leathers says. “They China, Malaysia, or Myanmar to a con- don’t have is a view of carrier capacity. are questioning everything. There are sumer’s home in Chicago can take one Only the carriers know where they have very few sacred cows.” ■

42 Inbound Logistics • September 2008 The reason behind Werner’s DC network consolidation freight was plentiful, several LTL carriers walked away from is simple. “A 53-foot trailer full of fl at screen TVs or digital our business. And some don’t exercise the proper level of cameras can total $500,000 to $1 million worth of mer- care with our product, so we experience a high damage rate.” chandise,” Conn observes. “But the wholesale value of a Werner Co.’s closest transportation services relationship truckload of ladders is less than $50,000. We cannot afford is, coincidentally, with Werner Enterprises, a general com- extra freight cost because it eliminates our margins. modities truckload carrier based in Omaha, Neb. “Our goal is to handle product as little as possible prior to In addition to hauling a high volume of Werner Co.’s sale – which helps us from both a damage and cost perspec- freight, Werner Enterprises acts as a transportation broker tive,” Conn explains. “It costs $3,000 to move a truckload of in areas it does not serve. “Werner Enterprises maintains ladders from Juarez to the Erlanger, Ky., DC (now closing), relationships with thousands of carriers on lanes it doesn’t just to position it to move again to the customer.” run,” notes Conn. “Werner can match us up with a carrier “At one time we thought we could maintain stand-alone in the value-added network that wants to move our freight DCs,” Conn says. “But when we analyzed our total supply on backhaul. These rates are up to 30 cents a mile cheaper chain costs and looked at transportation prices, we than what we could get on the market. Werner Enterprises realized that model would not work. understands capacity availability and can “We have taken millions of dollars of cost out leverage it on our behalf.” by collapsing our DC network to As it looks to the future, the ladder com- match our manufacturing net- pany continually evaluates its mix of offshore and work,” he adds. North American production. “Because our prod- As for transportation, Werner Co. believes in uct is so freight-intensive, we recognize that we cultivating long-term relationships with carriers are always ‘on the bubble’ of nearsourcing our that meet its needs. Maintaining those relation- China production,” Conn explains. “In fact, ships, however, has not always been easy. in 2007 we brought certain core products “We’ve had our ups and downs with LTL back from China because the economics had carriers, in particular,” Conn notes. “When changed.” LogisticsCreativity

Salem Logistics doesn’t take a “one size fits all” approach to solving your logistics challenges. We offer creative solutions, customizing our services to meet your specific needs by utilizing the latest web-based tracking and reporting technology. And we add value to your supply chain logistics with our consulting services. So get creative – get Salem Logistics.

See how refreshingly creative Salem Logistics can be for you. www.salemlogistics.com 1.866.800.9129

SM

The smartest link in your supply chain.

Salem Logistics, SCANEX and “The smartest link in your supply chain.” are service marks of Salem Logistics, Inc. © 2008 Salem Logistics, Inc. Salem Logistics Transport Services, Inc. MC #335642. Salem Logistics Traffic Services, Inc. MC #188070.

September 2008 • Inbound Logistics 43

2008 TRUCKING PERSPECTIVES What can be written about the challenges facing the U.S. trucking industry that hasn’t already been chewed up and steamrolled over countless times? Rising fuel prices, green equipment mandates, shifting truckload (TL) and less-than-truckload (LTL) demands, mode competition, excessive capacity, and end-user demands have carriers checking their side-view mirrors for lost business, assets, and competitors discarded along the way. For an economy inherently tied to over-the-road commerce, these objects in the mirror are closer than they appear. Numerous failures, including Alvan Motor Freight and Jevic Transportation, have cast a pall over the trucking industry at large. But with time, distance, and perspective, carriers are managing these challenges and turning their attention to what lies ahead, chasing the tail lights of a sputtering economic engine that is showing signs of turning over. What hasn’t already terminally stalled truckers is making them leaner, greener, and better prepared for a return to normalcy. bby JoJosepho ph O’RO’ReilO’Re ly

September 2008 • Inbound Logistics 45 Stateside shippers and consignees navigate a less FIGURE 1 Reported Increases in predictable and potentially ominous road. Institutional Motor Carrier Sales and Profi tability, 2007 fuel costs and the threat of a capacity crunch when the economy picks up raise red fl ags about their ability to Sales Profits 2008 adapt and shift gears. Many motor freight carriers are 39% 39% restructuring go-to-market strategies, streamlining fl eets, and investing in value-added logistics offerings; others 30% 26% are vanishing into a fuel-induced ether. For shippers, the consequences are clear: capacity is disappearing fast; 17% and working closer with carriers, identifying strategic 9% supply chain process improvements, and building long- term partnerships are critical priorities. Inbound Logistics’ annual Trucking Perspectives brings these two unique viewpoints under one

microscope. First, we polled motor freight carriers to 5% Increase Break-even 5% Increase Break-even 10% Increase or Decrease 10% Increase or Decrease fi nd out how they are responding to market conditions SOURCE: Inbound Logistics Trucking Perspectives, 2008

PERSPECTIVES and shipper expectations, expanding and consolidating service offerings, geographical coverage, and IT capabilities to manage current and future demands. By contrast, 30 percent of surveyed carriers report Second, we canvassed motor freight buyers to identify profi t growth at fi ve percent, nine percent cite growth and comment on the challenges they face in today’s of 10 percent, and 39 percent indicate static or lost market as well as gauge their perspective on the profi ts. Importantly, eight percent of surveyed truckers importance of driving collaborative partnerships in the document losses in excess of 20 percent. face of cyclical economic U-turns. With diesel prices approaching $5 a gallon in certain Complementing this bilateral, end-to-end panorama of markets this past summer, dwindling access to credit, TRUCKING TRUCKING the U.S. domestic trucking industry, our annual Top 100 and lower freight volumes, cost pressures throughout Motor Carriers list presents a data-driven drill down of the supply chain took their toll on motor freight carriers. carriers we deem the best at delivering the goods. From Trucking companies overwhelmingly cite rising fuel regional, refrigerated LTL players to asset-based global costs (91 percent) and price pressures from customers logistics service providers, our annual directory presents and competitors (70 percent) as their two greatest a diverse class of trucking companies that can go to the challenges. Last year, price pressures (79 percent) ends of the earth or deliver direct to home, with unique and rising driver-related costs (74 percent) were top service and speed demands in mind. concerns for carriers. At the same time, increasing consumer and regulatory DIVIDED HIGHWAY BEGINS infl uences have legislated the trucking industry to Compared to previous years, shippers have had comply with new green standards. As evidence of markedly more leverage vetting and selecting carriers this emerging trend, 41 percent of carriers report given 2008’s soft market conditions. Sluggish environmental mandates – including new equipment, consumerism and freight demand have left plenty of speed restrictions, idling protocol, and bio-fuel capacity on the table, forcing many trucking companies usage – as a challenge, and 38 percent cite equipment to eat fuel and other operational expenses to attract costs as an obstacle they face. Insurance and liability existing and new business. costs (39 percent), driver-related costs (35 percent), and Building on last year’s data, when recessionary taxes, fees, environmental, regulatory, and compliance indicators began to manifest themselves in earnest, cost increases (26 percent) round out top concerns. this trend is borne out in a visible disconnect between While freight demand has waned and temporarily carrier sales and revenue growth. Thirty-nine percent mitigated capacity and labor shortages, fuel surcharges of surveyed trucking companies report growing sales by are equal-opportunity discriminators, impacting large fi ve percent, compared to 48 percent of respondents and small carriers alike. Smaller companies, however, last year; 17 percent increased sales 10 percent (26 have far less critical mass and resources to absorb percent in 2007); and 26 percent indicate break-even or or pass along rampant price hikes compared to larger negative growth (SEE FIGURE 1). operators that can fl aunt value-added service offerings

46 Inbound Logistics • September 2008 We approach your transportation solutions from every angle imaginable — utilizing a unique combination of resources, fl exibility, and expertise to continually move your business forward. For superior insight and defi nitive results, partner with Yellow.





TRANSPORTATION SOLUTIONS FOR BUSINESS: EXP 

 

   

 

  

 
  

 




 
as collateral. Regional and local FIGURE 2 Did you switch taking advantage of these third- haulers face the unenviable task carriers recently? party networks to identify more of eating fuel costs and profi ts competitive rates, as well as pick up simply to keep shippers in sight and backhaul capacity in markets with 2008 competitors at bay. a considerable imbalance between Still, more carriers documented inbound and outbound freight moves. price pressure as an outstanding 51% 49% Such a changing dynamic may also concern last year amid fears that an No. Yes. suppose that opportunities to fi nd impending economic downturn might better pricing (through brokers) give shippers more incentives and have momentarily trumped speed fewer reservations to shop around for and reliability (working directly with better freight pricing. This may have carriers) as primary considerations. simply been a gut reaction that never For example, businesses that have materialized as shippers became FIGURE 3 Which is more important greater visibility upstream in the acclimated to market conditions. to you, your relationship supply chain may be leveraging this Alternatively, it might suggest with your carrier or with control to more cost effectively and

PERSPECTIVES some carriers have found success your broker/intermediary? effi ciently match speed-to-market convincing customers to consider the demands with available capacity. effi cacy of long-term partnerships The fact that brokers say they can rather than short-term, price-driven 30% generally handle a wider variety of hookups. Regardless, this remains an Equally freight and are better attuned to ongoing challenge for carriers. important 53% the overseas freight segment may In fact, shippers are more likely to Carrier provide shippers better service switch carriers than they were last 17% and incentive than common carrier year, according to IL’s poll. Nearly Broker/ representatives, according to one TRUCKING TRUCKING half (49 percent) acknowledge intermediary shipper respondent. making a change recently, versus Despite this anomaly, the majority 45 percent in 2007, and less than SOURCE: Inbound Logistics of surveyed shippers still value direct 40 percent in 2006 (SEE FIGURE 2). One Trucking Perspectives, 2008 relationships with carrier partners. “I respondent reports that his company don’t like to use brokers because I dropped a carrier after it changed the freight class on cannot get the service I need from them. I have a supplier a frequent order, then retroactively re-billed for past that uses a broker and it continually scrambles to cover invoices. Those that changed trucking companies cite our loads,” explains another shipper. “When I deal poor service, high prices, and more innovation by other directly with a carrier I have access to a management carriers as a primary reason for making a swap. With team that has ownership in our mutual success.” transportation prices as they are, reliability and service While current market conditions favor shippers in expectations have risen accordingly, and carriers that terms of vetting carriers per their own price and service can’t deliver have become disposable assets. requirements, an economic rebound will likely push control back to the trucking industry. Over the past few POINT OF INTEREST years, carriers and shippers have taken turns playing Another interesting trend line diverging from last the collaboration card as supply chain bullwhips such year’s data is a growing shipper preference for brokers. as capacity, labor, and pricing oscillated according to While freight transportation buyers still overwhelmingly economic cycles. A sharp decline in available assets value their relationships with carriers (53 percent), has shippers wary of what freight capacity will be like this represents a near double-digit drop from 2007 when volumes pick up, with 61 acknowledging this as a (SEE FIGURE 3). In turn, 17 percent report a higher regard for relevant concern. By comparison, 70 percent of carriers partnerships with brokers/intermediaries (fi ve percent in believe their customers are aware of this emerging 2007), and 30 percent (32 percent in 2007) perceive capacity pandemic – which refl ects their sales pitch to both relationships as equally important. new and existing customers alike. Brokers generally prove their worth when capacity Convincing customers of how important it is to is tight. But in a fl ush market shippers are similarly establish partnerships for the long haul is “the toughest

48 Inbound Logistics • September 2008 NFI National Freight – In today’s economy, it’s important that your OTR and 76 Years Strong Dedicated freight company is structurally stable and will deliver what they promised. NFI National Freight We’ve been providing on-time deliveries through World War II, NFI Interactive Logistics a few stock market crashes, the fuel shortage in the 70’s and NFI Real Estate that messy recession in the 80’s. NFI National Distribution Centers NFI National Freight is a 76 year old, family run company, NFI RoadRail with a proud heritage of quality transportation and distribution NFI QuickPak expertise. The Brown family started with one truck in 1932 and NFI Consulting grew NFI into the premier logistics company that it is today. NFI Global We look forward to providing you with the top-rated customer NFI BioFuels service that our customers have come to expect from us.

Call us at 1.800.922.5088 www.nfiindustries.com contactus@nfiindustries.com FIGURE 4 Truckers provide varied services Other carriers perceive this challenge as an opportunity to generate new 78% SOURCE: Inbound Logistics business while building more grounded Trucking Perspectives, 2008 partnerships. “The ability to cross-sell

2008 66% 61% in both directions – vendor to customer, 58% customer to vendor – brings long-term 53% 50% benefi ts,” says one survey respondent. 43% While freight rates still remain a make-or-break deal for many shippers, carriers are expanding their operational 25% range and service capabilities to extend 20% value beyond pure pricing. In terms 17% 17% 15% 12% of geographical coverage, U.S.-based trucking companies are expanding 4% beyond borders with 39 percent serving all of North America, versus 33 TL LTL DCC Bulk PERSPECTIVES percent last year. This trend refl ects Package Tank Car Expedited Intermodal Final Mile Refrigerated White Glove the growing importance of NAFTA Logistics Services Household Goods trade, Mexico and Canada’s developing Motor Vehicle Carrier roles as manufacturing and distribution conduits, and demand for integrated job we have,” notes one carrier. “The current business trucking services throughout the continent. Also of climate does not allow for long-term collaboration note, seven percent of carriers identify themselves unless the customer can secure long-term, depressed as “international” in scope. Larger players continue rate assurances.” Trucking companies are therefore to acquire assets in other global markets (China, for TRUCKING TRUCKING challenged with helping customers see partnerships for example) to diversify their business interests and what they are not – a commodity that can be bought and provide U.S. shippers and consignees with end-to-end sold on the spot. transportation capabilities and reach. The demands of the current domestic marketplace similarly refl ect some nuanced changes in the types of transportation services truckers are 0ROVIDING4RANSPORTATION building into their networks. A decline in -ANAGEMENT6!,5% freight volume and poor economic climate ISOUR0RIORITY have forced some carriers to streamline s,OGISTICS/UTSOURCING their fl eets and invest in non-asset-based s4RANSPORTATION-ANAGEMENT infrastructure enhancements, including s0$)%$'%4ECHNOLOGY value-added services driven by technology s,OAD#ONTROL#ENTER innovations. The average fl eet size among s/PTIMIZATION carrier respondents fell to 2,725 trucks this s0OOL$ISTRIBUTION year, compared to 2,946 trucks in 2007. s-ULTI -ODAL3OLUTIONS The lion’s share of U.S. motor freight s,OGISTICS4RANSPORTATION carriers (78 percent) still provide truckload (TL) services. (SEE FIGURE 4). This refl ects a s&REIGHT"ROKERAGE3ERVICES slight downward turn from last year (81 percent) and is indicative of current price pressures moving long-haul cargo via road, #ONTACTUSAT the increasing effi cacy of rail/intermodal SOLUTIONS PDIPLCOM solutions, and a shift in DC network WWWPDIPLCOM designs to capitalize on shorter LTL moves. In turn, the number of trucking

50 Inbound Logistics • September 2008

companies providing LTL and FIGURE 5 How carriers capture shipments, 66 percent of carriers intermodal services grew slightly, track and trace information employ satellite devices such as with 53 percent and 43 percent of 66% GPS units, while 45 percent rely respondents, respectively, providing on cellular phones, and 12 percent 2008 these types of offerings. As further and four percent, respectively, use evidence that some shippers are bar codes and RFID (SEE FIGURE 5). 45% shifting heavier cargo to rail, the Complementing this in-cab percentage of truckers offering bulk connectivity, trucking companies transportation capabilities dropped are similarly “amping up” their to 15 percent, compared with 25 front-facing technology dashboards, percent in 2007. developing demand-driven services Beyond commodity-type 12% and Web portals to give shippers transportation management 4% and consignees greater control services, motor freight carriers are and visibility into transportation meeting customer demands for decision-making. RFID more specialized, time-sensitive Satellite For example, 87 percent of Cell phone Bar Code

PERSPECTIVES offerings as well. Sixty-six percent SOURCE: Inbound Logistics Trucking Perspectives, 2008 carriers provide Web track- of carriers provide logistics services, and-trace and 80 percent offer 58 percent expedited shipment capabilities, 20 percent email alert capabilities, empowering customers to be white glove services, and 25 percent fi nal-mile delivery preemptive and proactive in dealing with exceptions or options. conveying shipment information to consignees. Sixty-six percent of survey respondents give users logistics Web DEMAND SIGNALS AHEAD, PASS WITH CARE tools such as activity management reports and online Buttressing this value-added, go-to-market strategy claims fi ling, while 40 percent offer online pricing/routing is an arsenal of technology-driven solutions carriers are capabilities. TRUCKING TRUCKING bringing to their trucks and terminals to help bolster real- Compared to last year’s data there has been a time communication and visibility between customers considerable uptick in the number of carriers offering and drivers. SKU/pallet-level RFID support, with 20 percent In terms of connecting with fl eets and drivers in the acknowledging such capabilities (11 percent in 2007). fi eld, cell phones remain the option of choice, with 77 Meanwhile, 39 percent of trucking respondents provide percent of carriers using them for voice communication bar-code support at the SKU/pallet level, a notable and 49 percent for texting purposes. Satellite messaging jump from last year’s 31 percent. Bar-code applications, is fast gaining traction among carriers with 67 percent of however, may be nearing the end of their shelf life as respondents reporting its use, compared to 61 percent only 21 percent of truckers indicate their potential as a one year ago, while satellite voice communication is future investment, compared to 34 percent that have less utilized (19 percent). To capture data and track RFID on the horizon. ■

While carriers may be refl exively looking backward conducting personal interviews via phone and e-mail. to keep tabs on their assets, shippers are well advised IL’s annual Top 100 list offers a uniform guide that to consider what lies beyond the bend, as well as the dually refl ects the diversity of the U.S. motor freight trucking partners that can capably carry their loads and market and the unique demands of over-the-road expectations into the future. shippers, featuring large LTL and TL carriers with global THE TOP 100 Our Top 100 Motor Carriers list is a good reach and regional owner/operators with specialized MOTOR CARRIERS place to shift gears and scope out trucking services. companies that are paving new roads for Together, our Trucking Perspectives industry overview 2008 delivering your goods to market and new and in-depth Top 100 Motor Carriers list provide a holistic pathways of innovation that provide the necessary perspective of the trucking industry, from demand to visibility and control your supply chain demands. IL supply, and all editors pared down this year’s roster by evaluating points in between. nearly 200 surveys, poring over online research, and

52 Inbound Logistics • September 2008 DISCOVER THE GREAT VALUE OF UALITY TRANSPORTATION AND WAREHOUSING IN THE NORTHEAST. Bilkays / DWS now has two great locations for warehousing and shipping services in Elizabeth and Linden,NJ. BURLINGTON, VT With over 300,000 sq. ft. at the crossroads of the Northeast and the gateway to the world. Minutes from all NY bridge and tunnel crossings, plus NY ports and major railyards. A centralized location gives our customers prompt, PORTLAND, ME economical, quality service and ensures accurate, on-time delivery of your shipments. And our full EDI capabilities systems provide SYRACUSE, NY shipment status reporting, electronic invoicing, warehouse shipping MANCHESTER, NH ALBANY, NY notices, real-time inventory BUFFALO, NY and lot control. Bilkays Express sets the BOSTON, MA standard in shipping by which others are judged whose skills make us an industry leader in our field. BILKAYS EXPRESS PROVIDENCE, RI CUSTOMIZED SERVICE • DISTRIBUTION NEW HAVEN, CT • WAREHOUSING • BAR CODE SCANNING • DEDICATED CONTRACT SERVICE NEW YORK, NY • EDI PITTSBURGH, PA
• LOGISTICS
& ELIZABETHNJ • PIGGYBACK DRAYAGE HARRISBURG, PA LINDEN • REFRIGERATED SERVICES PHILADELPHIA, PA • POOL CONSOLIDATION • PROTECTIVE SERVICES • TAILORED DISTRIBUTION PROGRAMS BALTIMORE, MD

WASHINGTON, DC DELAWARE

CHARLESTON, WV

RICHMOND, VA

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

INBOUNDRFP/RFI LOGISTICS REQUEST FOR PROPOSAL / REQUEST FOR INFORMATION

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

COMPANY ❑ Lynden ❑ National Retail Systems ADDRESS ❑ NFI Industries CITY, STATE, ZIP ❑ Robert Transport

PHONE FAX ❑ Ruan ❑ Ryder E-MAIL ❑ Saia ❑ U.S. Xpress My motor freight challenge is: (attach separate sheet if necessary) ❑ Werner Enterprises ❑ Yellow Transportation

54 Inbound Logistics • September 2008 TRANSPORTING YOUR EXPECTATIONS TO A HIGHER LEVEL

At Platinum Logistics our philosophy is simple: build long-term relationships one customer at a time.

To achieve this, we’ve made it our mission to provide unparalleled customer service, one-on-one freight support and competitive prices.

Just ask our clients – we make customer service an art.

Customer Service Domestic Distribution & Warehousing t Our #1 Priority t Next Flight t Pick & Pack t 24/7 Award-Winning Customer Support t Next Day t Warehousing t A Platinum Certifi ed Organization t 2 Day Service t EDI: Electronic Data Interchange t Specialty Handling Services t 2-4 Day Service t MIS: Inventory Management t Customized One-On-One Service t Deferred LTL t MIS: Information Management t Truckload Service t On-Demand Delivery t Physical Inventory International Special Services t Just-In-Time Delivery t Next Flight t Consulting t Fulfi llment t Priority 2-3 Days t Hazardous Materials Certifi ed t Packaging t Standard 3-5 Days t Flatbed, Rigging, Blanket Wraps, t Assembly t Economy 5-7 Days Lift Gates, Inside Deliveries t Labeling t Air & Ocean (import or export) t Conventions & Residential t Priority Services t Door to Door/Port t Biological Materials Certifi ed t Records Storage t Free Domicile t Online Tracking & Booking System t Full Documentation Coordination t Letters of Credit

www.platinumlogistics.com | 619.661.8020 THE TOP 100

MOTOR PRIMARY TYPES OF SERVICE

CARRIERS 2008

COMPANY NAME OPERATING

WEB ADDRESS PHONE AREA(S) LTL Truckload Package Expedited Services Logistics DCC Intermodal Goods Household Bulk Carrier Vehicle Motor Refrigerated Car Tank Glove White Final Mile

A. Duie Pyle US only ●● ●●● ● www.aduiepyle.com 800-523-5020

AAA Cooper US only ●● www.aaacooper.com 334-671-3153

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

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

Arnold Transportation US/Mexico only ●●● www.arnoldtrans.com 800-388-8320

Arrow Trucking US/Mexico only ● www.arrowtrucking.com 800-759-2009

Averitt Express North America ●●●●●●● ● www.averittexpress.com 800-AVERITT

Barr-Nunn Transportation US only ● ●●● www.barr-nunn.com 515-999-3018

Bennett Motor Express US/Canada only ●●●● www.bennettig.com 800-866-5500

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

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

Bulkmatic Transport North America ●● ● www.bulkmatic.com 219-972-7707

C.R. England US/Mexico only ●● www.crengland.com 800-453-8826

Cardinal Logistics US only ●● ● ●● www.cardlog.com 678-612-2447

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

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

Celadon Group North America ●●● www.celadongroup.com 800-CELADON

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

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

Concord Transportation North America ●●●●● ● www.concordtransportation.com 800-387-4292

© 2008 Inbound Logistics 56 Inbound Logistics • September 2008 U Union TECHNOLOGY SERVICES N Non-union DRIVER VISIBILITY ONLINE / WEB COMMUNICATION SUPPORT & CAPTURE SERVICES FLEET SIZE Tractors only, does not include trailers DNR Did Not Report

CELLULAR SATELLITE

ON-TIME FLEET NUMBER OF UNION PUBLIC OR Cell Phone Cell Satellite Codes Bar RFID Codes Bar SKU/Pallet RFID SKU/Pallet Track/Trace Web Alerts E-mail Pricing/Routing Web Tools Web Logistics SPECIALIZATION DELIVERY SIZE TERMINALS STATUS PRIVATE Voice Text Voice Text

General 99.1% 810 16 N PRIV ●● ●●●●

None 97.0% 2,126 81 N PRIV ●● ● ● ●●

National and international transport DNR 4,000 290 U PUB ●● ●●●● solutions

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

Retail/paper products 98.0% 1,450 6 N PRIV ●● ●●●

Steel commodities/FAK 95.0% 1,400 6 N PRIV ●●●● ●

All markets DNR 4,150 100 N PRIV ●●● ●●●●

Air freight, consumer products, food/ 98.2% 653 4 N PRIV ●●● ●● grocery

Heavy haul, government, aerospace, 99.8% 650 176 N PRIV ●●●●● housing, recreational vehicles

Food, paper, retail, dry goods 98.0% 1,050 6 N PRIV ●● ●●●●

Building materials, steel, roofi ng, lumber, 99.4% 950 8 N PRIV ●●● ●●● metal, pipe

Dry bulk, liquid bulk, food, chemicals, 94.0% 550 45 N PRIV ●●●●● rail-to-truck transfer

Food 100.0% 3,640 6 N PRIV ●● ● ●●●●●●

Construction and building materials, 99.0% 1,686 137 N PRIV ●●●●●●● ● ●●●● automotive, retail

FAK/dry van 96.0% 450 1 N PRIV ●● ●●

All DNR 350 10 N PRIV ●● ●●●● ●●●●●●

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

FAK 97.0% 200 2 N PRIV ●● ● ●● ●

Consumer goods, automotive and parts, 98.5% 1,500 6 N PRIV ● ● ●● ● ●●●● food and beverage, hazmat

Retail, high-value electronics, 98.2% 200 24 N PRIV ●● ● ●● ●●●●●● entertainment, pharmaceutical

Information supplied by trucking companies. Where data was not provided, historical and web site information was used. September 2008 • Inbound Logistics 57 THE TOP 100

MOTOR PRIMARY TYPES OF SERVICE

CARRIERS 2008

COMPANY NAME OPERATING

WEB ADDRESS PHONE AREA(S) LTL Truckload Package Expedited Services Logistics DCC Intermodal Goods Household Bulk Carrier Vehicle Motor Refrigerated Car Tank Glove White Final Mile

Con-way Freight North America ●● ● www.con-way.com/freight 734-994-6600

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

Crete Carrier Corporation US only ●● www.cretecarrier.com 402-479-8770

CRST International North America ● ●●● www.crst.com 800-736-2778

Daily Express North America ●●● www.dailyexp.com 717-243-5757

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

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

Dayton Freight Lines US only ● www.daytonfreight.com 937-264-4060

Epes Transport System US only ● www.epestransport.com 336-931-9792

Estes International ●● ●●●● ●● www.estes-express.com 866-ESTES4U

Evans Network of Companies US only ● ●●●● ● www.evansdelivery.com 877-39-EVANS

FedEx Custom Critical North America ●●●●●●●● www.customcritical.fedex.com 800-762-3787

FedEx Freight North America ●● ●●● ●● ●● www.fedex.com/us/freightportal 866-393-4585

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

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

FLS Transportarion Services North America ●● ●● ● ● www.fl stransport.com 800-739-0939

Gainey Corporation North America ●●● ● www.gaineycorp.com 800-859-4072

Givens Transportation North America ●● ●●●● ● www.givens.com 800-446-8195

Gordon Trucking North America ● ●●● ● www.gordontrucking.com 800-426-8486

Greatwide Logistics Services US/Canada only ●● ●●●● ● www.greatwide.com 972-224-0072

© 2008 Inbound Logistics 58 Inbound Logistics • September 2008 U Union TECHNOLOGY SERVICES N Non-union DRIVER VISIBILITY ONLINE / WEB COMMUNICATION SUPPORT & CAPTURE SERVICES FLEET SIZE Tractors only, does not include trailers DNR Did Not Report

CELLULAR SATELLITE

ON-TIME FLEET NUMBER OF UNION PUBLIC OR Cell Phone Cell Satellite Codes Bar RFID Codes Bar SKU/Pallet RFID SKU/Pallet Track/Trace Web Alerts E-mail Pricing/Routing Web Tools Web Logistics SPECIALIZATION DELIVERY SIZE TERMINALS STATUS PRIVATE Voice Text Voice Text

General 98.0% 8,400 443 N PUB ●●●●●●●●

JIT, electronics, consumer goods, food 97.0% 3,500 32 N PUB ●● ●●● and beverage, manufacturing, packaging

Food/grocery, paper, retail, 98.0% 5,405 20 N PRIV ●● ●● manufacturing

Expedited, fl atbed, dedicated services 96.0% 3,650 85 N PRIV ●●● ●●●

Construction, agricultural, industrial 98.5% 350 10 N PRIV ●● ● ● ● machinery

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

Consumer electronics 97.6% DNR 3 N PRIV ●● ●●●● ● ●●●●

Chemicals, retail, general commodities 98.0% 926 40 N PRIV ●●●●●●●

Tobacco, home improvement, retail, 98.0% 1,000 5 N PRIV ●● ●● manufacturing

All markets 97.0% 6,325 197 N PRIV ●●●●●●●●

Containerized freight 98.5% 1,270 80 N PRIV ●

Expedited freight transportation 98.4% 1,300 0 N PUB ●● ● ● ●●

General freight 99.0% 10,968 328 N PUB ●● ●●● ●●●●

Small package DNR 20,000 500 N PUB ●●●●

Temperature-controlled TL and LTL, dry TL 98.5% 2,500 13 N PUB ●●●●●● ●●●●

General merchandise 97.4% 282 14 N PRIV ● ●●● ●●●●

Blanket wrap, JIT, FAK 98.6% 2,000 8 N PRIV ●● ●●●

Automotive, electronics, dedicated 98.7% 369 5 N PRIV ●● ●●● ● ● carriage

Food, retail, consumer products, paper 98.5% 1,420 9 N PRIV ●● ● ●●

Retail, food and beverage, grocery, DNR 6,000 39 N PRIV ●●●●● automotive, heavy haul, chemical

Information supplied by trucking companies. Where data was not provided, historical and web site information was used. September 2008 • Inbound Logistics 59 THE TOP 100

MOTOR PRIMARY TYPES OF SERVICE

CARRIERS 2008

COMPANY NAME OPERATING

WEB ADDRESS PHONE AREA(S) LTL Truckload Package Expedited Services Logistics DCC Intermodal Goods Household Bulk Carrier Vehicle Motor Refrigerated Car Tank Glove White Final Mile

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

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

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

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

KLLM Transport Services US/Mexico only ●●●● www.kllm.com 601-936-5633

Knight Transportation US/Canada only ● ●●● ● www.knighttrans.com 602-606-6200

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

Lily US only ●● ● www.lily.com 781-449-8811

Lynden International ●●●●●●●●●●●●●● www.lynden.com 888-596-3361

Market Transport US only ●●●● www.markettransport.com 503-283-2405

Marten Transport North America ●●●● www.marten.com 800-395-3000

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

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

Megatrux Transportation US/Mexico only ●● ●●●● www.megatruxtrans.com 800-374-0929

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

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

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

Miller Transporters North America ●● www.millert.com 800-645-5378

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

New England Motor Freight US/Canada only ●● ●●● ●● ● www.nemf.com 800-847-2728

© 2008 Inbound Logistics 60 Inbound Logistics • September 2008 U Union TECHNOLOGY SERVICES N Non-union DRIVER VISIBILITY ONLINE / WEB COMMUNICATION SUPPORT & CAPTURE SERVICES FLEET SIZE Tractors only, does not include trailers DNR Did Not Report

CELLULAR SATELLITE

ON-TIME FLEET NUMBER OF UNION PUBLIC OR Cell Phone Cell Satellite Codes Bar RFID Codes Bar SKU/Pallet RFID SKU/Pallet Track/Trace Web Alerts E-mail Pricing/Routing Web Tools Web Logistics SPECIALIZATION DELIVERY SIZE TERMINALS STATUS PRIVATE Voice Text Voice Text

Liquid bulk 99.6% 1,008 34 N PRIV ●●

Consumer goods, retail, food, paper/ 98.1% DNR 11 N PUB ●●●● ● plastics, manufacturing, automotive

General commodities 98.1% 2,600 3 N PRIV ●● ●●

Retail, food, beverage, building materials 99.0% 11,000 21 N PUB ●●●●●●●●

Produce, food, beverages, chemicals, 97.7% 1,400 5 N PRIV ●●● ●● pharmaceuticals

FAK 98.2% 3,800 29 N PUB ●● ●●●

Manufacturing, retail, wholesale, service DNR 8,993 DNR N PUB ●● ●●● ●● industries, government, time-defi nite

All DNR 453 DNR N PRIV ●●●●●

Oil and gas, mining, construction, retail, 95.0% 631 65 Both PRIV ●● ●● ● ●● ● manufacturing

Retail and paper products 98.5% 350 3 N PUB ●● ●●●●

Transportation 98.0% 2,392 6 N PUB ●●● ●

High-cube dry vans and refrigerated 98.0% 925 6 Both PRIV ●● ●●● fl eets

Pad wrap, high-value, trade show/exhibit, 98.9% DNR 417 Both PRIV ●● ● ● ●● ● artwork, museum, store fi xtures

48 states coast to coast 98.4% 225 8 N PRIV ●● ●●●● ● ●●●●

Steel, lumber, aluminum, HVAC units, 99.0% 1,000 7 N PRIV ●●● ●● machinery, roofi ng/building materials

Building materials, metal products, 98.0% 2,082 DNR N PRIV ●● ● ● machinery, equipment

General commodities 98.5% 1,300 37 N PRIV ●● ● ● ●●

Bulk commodities 99.0% 465 18 Both PRIV ●●● ●

Retail 99.0% 2,200 31 Both PRIV ●●●●●●● ●●●● ●

Grocery, retail, hazmat, chemicals, 98.7% 6,000 40 U PRIV ●●●● ●●●●●●●●● electronics

Information supplied by trucking companies. Where data was not provided, historical and web site information was used. September 2008 • Inbound Logistics 61 THE TOP 100

MOTOR PRIMARY TYPES OF SERVICE

CARRIERS 2008

COMPANY NAME OPERATING

WEB ADDRESS PHONE AREA(S) LTL Truckload Package Expedited Services Logistics DCC Intermodal Goods Household Bulk Carrier Vehicle Motor Refrigerated Car Tank Glove White Final Mile

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

NFI North America ● ●●●●●● www.nfi industries.com 800-922-5088

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

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

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

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

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

Pitt Ohio Express US only ●●●● ● www.pittohio.com 800-366-7488

Prime Inc. North America ●●●●● www.primeinc.com 417-866-0001

Priority Services US only ● ●●●● www.priorityservices.com 630-993-6000

Quality Distribution North America ●● www.qualitydistribution.com 813-569-7286

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

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

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

Ruan US/Canada only ●●●●●●● www.ruan.com 866-RUANNOW

Ryder International ●● ●●●●● ● ● www.ryder.com 888-887-9337

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

SCG The Select Carrier Group North America ●● ●●●● ● ● www.selectscg.com 281-227-5000

Schneider National North America ●●●●●●●● www.schneider.com 800-555-6767

Shippers Transport Company North America ● www.shipperstrans.com 615-726-8288

© 2008 Inbound Logistics 62 Inbound Logistics • September 2008 U Union TECHNOLOGY SERVICES N Non-union DRIVER VISIBILITY ONLINE / WEB COMMUNICATION SUPPORT & CAPTURE SERVICES FLEET SIZE Tractors only, does not include trailers DNR Did Not Report

CELLULAR SATELLITE

ON-TIME FLEET NUMBER OF UNION PUBLIC OR Cell Phone Cell Satellite Codes Bar RFID Codes Bar SKU/Pallet RFID SKU/Pallet Track/Trace Web Alerts E-mail Pricing/Routing Web Tools Web Logistics SPECIALIZATION DELIVERY SIZE TERMINALS STATUS PRIVATE Voice Text Voice Text

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

Beverage, food and grocery, CPG, retail, 99.5% 2,290 43 N PRIV ●● ● ● ●●●●●● technology, aerospace

General commodities 98.3% 550 33 Both PRIV ●●● ●●●●●

General commodities 98.3% 5,170 206 N PUB ●●●●●●●

All 98.5% 1,500 DNR N PRIV ●●●●●● ● ●●●●

Dry van 97.9% 1,150 5 N PRIV ●● ●●

Automotive, chemical, pharmaceuticals, DNR 2,544 DNR Both PRIV ●● ●●●●●●●●● ● healthcare, electronics

General commodities 98.0% 1,084 23 N PRIV ●● ● ●●●●

Reefer transportation 98.5% 3,490 8 N PRIV ●● ● ● ●●

Retail 98.0% 45 1 Both PRIV ●● ● ● ●

Liquid and dry bulk commodities 98.0% 3,200 135 Both PUB ●● ●● ● ●●

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

Manufacturing, retail, government, DNR 8,500 340 U PUB ●● ●● ●●●● exhibit/tradeshow, associations

Retail, consumer goods, paper products, 97.4% 1,894 4 N PRIV ●● ●●● wood products, foodstuffs

Food grade liquid bulk, retail, frozen and 99.6% 4,659 162 Both PRIV ●● ●●● ● ●● ● refrigerated, dry bulk, steel/metals

Automotive, aerospace, CPG, high-tech, 99.0% 51,703 680 Both PUB ●● ● ●●●●●● ● manufacturing, metals, mining, energy

General commodities 96.5% 12,214 147 N PUB ●● ●●●●

Technology, automotive, electronics, 98.2% 525 8 N PRIV ●● ●●●● ● ●●●● retail

Retail, manufacturing, bulk specialty DNR 12,900 24 Both PRIV ●● ● ●●●● chemical, fuel, automotive parts

General commodity, retail 95.0% 200 4 N PRIV ●● ●●●

Information supplied by trucking companies. Where data was not provided, historical and web site information was used. September 2008 • Inbound Logistics 63 THE TOP 100

MOTOR PRIMARY TYPES OF SERVICE

CARRIERS 2008

COMPANY NAME OPERATING

WEB ADDRESS PHONE AREA(S) LTL Truckload Package Expedited Services Logistics DCC Intermodal Goods Household Bulk Carrier Vehicle Motor Refrigerated Car Tank Glove White Final Mile

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

Standard Forwarding US only ● www.standardforwarding.com 877-744-7783

Suddath Logistics US/Canada only ●● ●● ●● ●● www.suddathlogistics.com 904-390-7183

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

Transport Corp. of America North America ● ●●●●● ●● www.transportamerica.com 651-686-2531

Trimac Transportation North America ●● ● www.trimac.com 281-985-0067

U.S. Xpress Enterprises North America ● ● ●●● www.usxpress.com 800-251-6291

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

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

UPS International ●●●●●●● ● www.ups-scs.com 800-742-5727

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

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

USF Reddaway US/Canada only ●● www.usfreddaway.com 888-420-8960

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

Ward Transport & Logistics North America ●● ●●●●● ● ●● www.wardtlc.com 800-458-3625

Werner Enterprises North America ●●●●●●●●●●●●●● www.werner.com 800-228-2240

Western Express North America ●●● www.westernexp.com 615-259-9920

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

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

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

© 2008 Inbound Logistics 64 Inbound Logistics • September 2008 U Union TECHNOLOGY SERVICES N Non-union DRIVER VISIBILITY ONLINE / WEB COMMUNICATION SUPPORT & CAPTURE SERVICES FLEET SIZE Tractors only, does not include trailers DNR Did Not Report

CELLULAR SATELLITE

ON-TIME FLEET NUMBER OF UNION PUBLIC OR Cell Phone Cell Satellite Codes Bar RFID Codes Bar SKU/Pallet RFID SKU/Pallet Track/Trace Web Alerts E-mail Pricing/Routing Web Tools Web Logistics SPECIALIZATION DELIVERY SIZE TERMINALS STATUS PRIVATE Voice Text Voice Text

Various 99.0% 2,400 76 N PRIV ●● ● ● ●●●●

Industrial 99.0% 350 15 U PRIV ●●●●●●●

Restaurant, retail, hospitality, healthcare, 98.8% 1,500 17 N PRIV ●●●● ●● ● ●● ● aerospace, telecom, high-tech

Truckload 97.5% 18,044 35 N PUB ●● ●●●

Grocery products, department store, 98.4% 1,300 11 N PRIV ●● ●● industrial, furniture, express, paper

Bulk chemicals, industrial gases, 99.0% 2,200 129 Both PRIV ●●●● ● ●● industrial minerals, dry bulk

Dry freight DNR 7,500 15 N PRIV ●● ●●●

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

Diversifi ed portfolio DNR 4,000 DNR N PUB ●● ●●● ●

Healthcare, retail, manufacturing, DNR 8,065 215 Both PUB ●●●●●● government, high-tech, automotive

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

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

Industrial, retail, hazmat, freezables DNR 1,400 68 Both PUB ●● ● ● ●●●●

LTL and logistics 97.7% 2,346 137 N PUB ●● ● ●●●●●●●●

Manufacturing, fi nished products, paper, 97.0% 650 22 N PRIV ●●●● ● ●●●●●● chemical, retail, pharma, food

CPG, retail, manufacturing, industrial, 95.0% 8,080 12 N PUB ●● ●●●●● grocery, logistics

Retail, building supplies, grocery 98.0% 1,728 7 N PRIV ●● ●

Frozen and refrigerated commodities, 96.0% 725 4 N PRIV ●●● ● specializing in food products

General commodities 99.4% 1,100 43 N PRIV ●● ● ● ●●●●

Manufacturing, retail, government, DNR 9,000 336 U PUB ●● ●● ●●●● chemical/hazmat, tradeshow

Information supplied by trucking companies. Where data was not provided, historical and web site information was used. September 2008 • Inbound Logistics 65 DOLLARS &SENSE

FREIGHT PAYMENT SERVICES

reight payment services have played a vital “Freight payment services are a necessity for role in logistics since the market’s beginnings shippers striving to implement lean management more than a half-century ago, when banks practices,” says Charles Popick, founder of Costa Mesa, and their business customers began seeking Calif.-based CPC Consultants, an independent fi rm an effi cient way to pay motor carriers within that helps large shippers establish and optimize trans- Ffederally mandated time frames. portation programs. In today’s more loosely regulated shipping envi- Freight payment service providers enable businesses ronment, freight payment service providers have to hand over a variety of functions that can be diffi - expanded their portfolios to offer an array of cost, cult and/or costly to handle in-house, including EDI productivity, and effi ciency benefi ts. communication with carriers, automatic general ledger

66 Inbound Logistics • September 2008 Special Supplement

KEEP AN EYE ON YOUR BOTTOM LINE

coding of freight transactions, freight strategic impact,” says Marketing Mana- and maximize supply chain effi ciency,” bill collection, rate auditing and dupli- ger Thomas Zygmunt. “We provide Zygmunt says. cate bill checking, data merging, freight process improvements, management While many types of businesses can bill payment, and freight bill inquiries, informa tion, cost reductions, and take advantage of freight payment ser- reports, and analytics. enhanced customer service.” vices, some stand to benefi t more than Cass Information Systems, a freight Cass enables its clients to reduce others, according to Allan Miner, presi- payment service provider headquartered and control transportation expenses dent of CT Logistics, a Cleveland-based in Bridgeton, Mo., strives to supply cli- through outsourcing. “Our goal is not third-party freight audit and payment ents with services that extend beyond just to duplicate existing systems but to company. fast bill payment. “Our services have a enhance the freight processing system “A manufacturer that procures raw

September 2008 • Inbound Logistics 67 FREIGHT PAYMENT SERVICES DOLLARS&SENSE

materials, ships them to a manufacturing plant, pro- for itself,” Popick says. duces a product, then ships it to a distribution center Pre-auditing may be the service with the greatest or client accrues more transportation costs than a potential to affect the bottom line. “Pre-auditing can retailer,” he notes. generate savings ranging from three to six percent of CT Logistics expands its market presence hori- the total cost,” Miner says. zontally each year by adding services that are either Consider a shipper using a parcel delivery service requested by clients or developed internally to meet a with a “next-day by 10:30 a.m.” delivery guarantee. perceived marketplace need. “We continually broaden “A freight payment services provider can identify the our footprint in the supply chain arena to address our shipments that were not delivered as promised and clients’ needs, both before and after the execution of need to be credited,” Popick says. “In some cases, a shipment,” Miner says. these service failure claims can equal or surpass the As a result of its expansion cost of the provider’s service.” efforts, CT Logistics is now deeply Freight payment services help involved in many of its clients’ LOOKING FOR A businesses in terms of both hard routine logistics operations. and soft dollars. “Hard dollars are “Not only do we handle freight FREIGHT PAYMENT identifi ed through the audit pro- audit payments and management SERVICES PROVIDER? cess,” Miner notes. “The client Start your search with these reporting, but we also enable cli- pays the carrier only the lowest leading players: ents to choose the right carrier amount that it’s legally obligated based on cost and service through Cass Information Systems to pay.” our Web site and FreitRater soft- Bridgeton, Mo. Historically, process complex- www.cassinfo.com ware,” Miner says. With the help ity, as well as federal and state 314-506-5500 of CT Logistics and its technology, regulations, made it difficult COGISTICS clients are able to tender loads to for businesses to pay the lowest Lakeland, Fla. designated carriers through a www.cogistics.com obligated amount. “But freight pay- central Web site, as well as print 863-647-9389 ment service providers are experts bills of lading and track and trace CT Logistics at arranging this,” Miner says. shipments. Cleveland, Ohio Businesses can also cut costs by www.ctlogistics.com outsourcing routine, time-con- ON AUTO PILOT 216-267-2000 suming, productivity-robbing, and Freight payment services tech- nVision Global cash-burning tasks. “Customers nology provides substantial and McDonough, Ga. can save on overhead, adminis- far-reaching benefi ts. The process www.nvisionglobal.com tration, back-office operations, 770-474-4122 eliminates the need for ship- bookkeeping, and bank fees,” says PowerTrack pers to handle carrier phone calls Miner. Minneapolis, Minn. while providing audited bills, auto- Many providers also offer to www.powertrackglobal.com mated general ledger coding, and 800-925-4324 scrutinize a client’s logistics oper- data collection for both reporting Technical Traffi c ations for specifi c processes that and logistics metrics – all at faster Congers, N.Y. can be improved or eliminated. speeds and with less overhead www.technicaltraffi c.com “Shipment history can be used for than handling it in-house. “In 845-770-3510 data mining and analysis,” Popick some cases, it is a service that pays says. “Data gives skilled analysts

68 Inbound Logistics • September 2008 traditional freightpaymentcompanies, withyou. andwe’llsharethedata get youthere? With PowerTrack, we’vegotproof. Overthepasttwoyears, How? we’vemergedwithtwo freightpaymentcompaniesactually claims many thecosts—buthow Everyone togetridofpaper—and claimCan yourfreightpaymentcompany kindofsuccess? that We doubt it. PowerTrack upto$262million*lastyear. customerssaved Learn HowTo Save from Aberdeen Group. from Aberdeen invoice-processing costs by91%. canlower automation for Winning Strategies Transportation Procurement&Payment, February 200 * conductedbythe According toarecentstudy Aberdeen Group, of$10toprocessapaper-based companiesspendanaverage freig www.powertrackglobal.com/treehuggeribl.aspx PowerTrack invoicesonceandforall. togetridofpaper Call 91%*. anestimated saves paper Go ahead,Eliminating embraceyourinnertreehuggerandcontact © 2008PowerTrack Network PowerTrack FreightPayments Internal Outsourced Freight Payment Option

at powertrackglobal.com/treehuggeribl.aspx at Inner Tree Hugger Embrace Your with PowerTrack Freight Payments! Get RidofPaper Invoices % ElectronicInvoices Small Parcel . 100% 100% 50% 1-800-925-4324 % ElectronicInvoices Motor Freight Shhh...we won’t tell. 99.9% ht invoice. Bestinclass enterprisesutilizing A/P 7 andE-Payables Benchmark Report, March2007 38% 6% orvisit

powertrack.com FREIGHT PAYMENT SERVICES DOLLARS&SENSE

the ability to perform distribution studies and evalu- ate whether to move or add distribution nodes.” “Pre-auditing freight bills can Data analysis can also be used to benchmark com- panies to see how the rates being charged compare to generate savings ranging from the rest of the market. “Numbers alone don’t tell the three to six percent of the total whole story,” Popick says. “Data is useless without the tools and expertise to analyze it and make actionable cost; those are hard-dollar recommendations.” “While we pre-audit and pay freight bills for clients, savings. ” we also offer information-based solutions,” says John Mecchella, president of Technical Traffi c Consultants, – Allan Miner, president, CT Logistics a freight payment services provider located in Congers, N.Y. “We could be the best auditors in the world, but “As a result, companies rely on outsourced services to if we don’t provide accurate, timely, and accessible provide not just pre-audit payments, but also soft sav- information, shippers will fi nd another company to ings from managing and using information to make do business with.” intelligent decisions.” Lean times are forcing more businesses to seek out- Many providers also focus on cost avoidance. side help. “In these times of ‘right sizing,’ one person Companies can sidestep unnecessarily or unfairly does what 15 people used to do,” Mecchella observes. high expenses by asking a freight payment services provider to handle cost rating and routing pre-planning. Although the transport provider may quote the cor- A Total Transportation rect cost for a particular shipment, there may also be less expensive ways Data Management System to move the freight. “Shippers won’t know their options until they use a freight payment ser- vice provider’s software, services, and Web tools,” Miner says. A freight payment service provider Technical Traffi c Consultants For 34 years, can also help create a more effi- has delivered to its customers the highest level of 34 YEARS cient business environment. Before 185 EMPLOYEES service with an uncompromising commitment to quality. We are an SAS 70-compliant company a company signs on with a provider, 300 CUSTOMERS providing transportation data management freight bills tend to be voluminous services including freight bill audit, transportation and paper-based, creating a business database development, logistics consulting, setting ripe for confusion and mis- customized client reporting, domestic and takes. “Companies usually ‘react’ to international pre-audit and payment. paying freight bills and expend a lot Serving the Financial World of Transportation… of effort to stay ahead of billings and With a World of Diff erence! TTC Headquarters, Congers, NY avoid relentless follow-up by the car- 845-770-3510 | www.technicaltraffi c.com rier’s accounts receivable department,” Popick notes.

70 Inbound Logistics • September 2008 Financial Security Solving Providing Leading & Stability Complex Needs Edge Solutions FREIGHT PAYMENT SERVICES DOLLARS&SENSE

As soon as a company decides to outsource its companies to deal with invoices and other docu- freight payment services, all bills, phone calls, and ments in foreign languages and currencies, making other productivity-sapping tasks and interruptions regulatory compliance diffi cult, perhaps even impos- are immediately directed to the provider. The pro- sible, without help. “When the Sarbanes Oxley Act vider establishes computer-based EDI integration was passed,” Snavely says, “shippers needed providers with carriers, enabling all billing information to be with global reach and the ability to process docu- exchanged electronically. Additionally, all pertinent ments and transactions in multiple languages. data on each freight bill seamlessly transfers into a “Invoices may not always be written in English, may payment database. need to be paid in a foreign currency, and sometimes, Once that raw data has been stored electronically, must be converted to U.S. dollars for reporting pur- the client can use it to develop reports or have the provider develop reports, such as freight spending by carrier or mode, freight bill exceptions, and out- “We could be the best auditors standing balance by carrier. “With the provider’s help, the client proactively manages its freight program,” in the world, but if we don’t Popick observes. It also helps to have clearly written contracts. provide accurate, timely, “There’s a right way and a wrong way to write a con- tract,” Mecchella says. “We always make sure to dot and accessible information, the I's and cross the T's, and remind clients that they shippers will fi nd another are working in a regulated environment.” Technical Traffi c takes steps to protect clients from company to do business with.” contracts that contain surprises or traps. “We put the intention of the negotiated agreement into contrac- – John Mecchella, president, Technical Traffi c Consultants tual form so that it becomes predictable,” he notes. “In any contract, both parties should know their obli- poses,” he adds. gations.” An expertly written contract benefi ts all Any business that hooks up with a freight payment parties, Mecchella believes. services provider must be prepared to commit to the project. A shipper that decides to use freight pay- GLOBAL CONCERNS ment services only for selected shipments is begging Globalization is another trend driving businesses for trouble. “It’s impractical because data comes from to outsource freight payment services. “Freight pay- disparate sources and auditing rules may not be uni- ment companies increasingly process invoices in formly applied,” Popick notes. “It is a best practice to Europe and Asia,” says Keith Snavely, vice president of have a consolidated program.” North American sales for nVision Global Technology Solutions, an Atlanta-based freight payment services WHAT TO LOOK FOR provider. “We currently process invoices from more Once a company decides to oursource, it’s time for than 190 countries and pay transport providers in 45 due diligence. To choose the right freight payment currencies.” services provider for your company, here are some fac- Increasing regulatory oversight of international tors to consider: transactions is also motivating companies to seek • The provider's management background and expertise. “Besides outside payment help. These days, it’s common for being fi nancially stable and sound, does the provider

72 Inbound Logistics • September 2008 CT LOGISTICS has been saving time and money since 1923.

Freight Payment

FreitRaterTM

3PL

SM TMS TranSaver

Pre-Audit

CT LOGISTICS believes there’s always room for improvement, and that philosophy has made us a leader in freight payment for over 85 years. Since then we have been creating and refining money-saving innovations for each of our clients. So we’re confident when we say talking to us will be worth your while. Our FreitRater™ software is exclusive, our solutions are customized, and our reputation is unsurpassed. ctlogistics.com Call 216-267-2000, today, for more about our Pre-Audit, Freight Payment, TMS software and other innovative ideas. Find out just how much more we can do for you.

C onfidence T rust L eadership since 1923. FREIGHT PAYMENT SERVICES DOLLARS&SENSE

understand and have expertise in the industry?” PowerTrack, a freight payment services provider head- Zygmunt asks. “Also evaluate whether it has the depth quartered in Minneapolis. “Make sure your prospective to handle your account, so you’re not relying on just a provider has a standard electronic interface for EDI few individuals who are running the service.” transactions with all the major carriers.” Although a standard EDI interface allows custom- • Communication channels. Beyond offering a specifi c set of ers to easily monitor and verify the providers’ carrier services, a provider should also be willing to maintain transactions, it remains a rarity in the freight payment strong and open communication channels. “Because services industry. “Most providers have multiple, one- freight payment services are a critical part of the logis- off interfaces with each carrier,” Langer says. tics process, shippers need to reach their providers at all times,” Zygmunt says. “If a key contact goes on vaca- • Payment strategy. “Negotiate a per-bill rate; don’t agree tion or is out sick, customers need a backup.” to a contingency-based contract,” Popick advises. Freight payment services buyers also need to stay • Business practice visibility. “Like any industry, there are alert for frivolous and unnecessary provider fees. many ways to do business, both above board and “Many providers charge transaction fees for second- below board,” says Rick Langer, general manager of ary bills, so there’s an incentive for them to create

A WINNING COMBINATION: THE 3PL/FREIGHT PAYMENT PERSPECTIVE ost freight payment service providers are either independent fi rms or affi liated with a bank or other fi nancial institution. COGISTICS is different. The Lakeland, Fla.-based company is a 3PL that also offers freight payment services. COGISTICS strives to give clients the best of both worlds – freight payment productivity and effi - Mciency benefi ts, and 3PL management and insight. “We use our freight bill audit and carrier payment process to create a better supply chain and logistics scenario for shippers,” says Ray Oberhofer, president. “Using our data collection expertise and supply chain engineering tools, we help reduce overall transportation costs.” COGISTICS’ activities extend beyond everyday freight payment data exchange and auditing services. “We go into the marketplace for clients to look for the best possible purchase on warehousing, trucking, or crossdock operations,” Oberhofer notes. A combined 3PL/freight services provider may not be an appropriate choice for all businesses, Oberhofer observes. “We might, for example, have a hard time justifying our services to a company spending less than $10 million on transportation annually,” he says. Inbound clients are best positioned to take advantage of a combo 3PL/freight payment services provider. “Our primary client is an inbound manufacturing company,” Oberhofer notes. "Not to diminish the importance of outbound, but shippers know where all their customers are and can control the game from one central place.” Consignees face a bigger challenge, however, because they rely on all their suppliers to treat freight correctly, choose the right carriers, and annotate bills of lading properly. “This demands negotiation and communications skills, insight, tracking abilities and careful work – that’s what we provide,” Oberhofer says.

74 Inbound Logistics • September 2008

FREIGHT PAYMENT SERVICES DOLLARS&SENSE

“Companies that have not looked at freight payment services before will feel pressure to examine ways of boosting effi ciency and productivity.” – Thomas Zygmunt, marketing manager, Cass Information Systems

exceptions,” Langer says. “The more exceptions you payment processes. CT Logistics, for example, will run have, the more secondary bills you create; the more a company's sample shipment documents through its secondary bills you create, the more fees the provider system to demonstrate the technology. “We are always can charge.” willing to do a free analysis for a prospective client,” Miner says. “It’s a way of letting them know how we • Float periods. A long fl oat period can cut costs by effec- can meet their needs.” tively delaying payments. “It’s important to know how Cass also works with prospective clients to illus- many days the provider will hold the money before trate the benefi ts of freight payment services. “We paying the carrier,” Langer says. “Providers should design an individual solution for each company we reduce transaction fees and get a signifi cant fl oat.” work with,” Zygmunt says. “Although we have clients in similar fi elds, each company has unique account- • Country list. Customers with international trans- ing needs and shipping methodologies. We design the actions should ask providers to supply a list of the process based on the client’s needs rather than trying countries they support. “The provider should be to fi t the client into a pre-packaged solution.” able to show – with documentation – that it has been approved by each country’s fi nancial institution reg- WORDS OF ADVICE ulatory body,” Langer says. The freight payment services market will continue to thrive in the years ahead. “As companies become • International and local expertise. International transactions leaner, they must outsource functions that are not can be diffi cult for a company to fi gure out on its own, core competencies,” Popick states. “The value propo- so it’s important to fi nd a provider that not only knows sition is that freight payment is a service that pays for how to handle multiple languages and currencies, but itself again and again.” has in-depth knowledge about local tax and tariff man- In this era of high fuel prices and galloping infl a- dates. “The governments within the various countries, tion, businesses are under increasing pressure to slash for example, often charge a goods and services tax or a expenses and boost revenue. “Companies that have value-added tax on each product or service,” Snavely not looked at freight payment services before will feel explains. “Many customers rely on us to allocate those pressure to examine ways of boosting effi ciency and taxes across all the products in a shipment.” productivity,” Zygmunt says. Popick’s fi nal words of advice are simple and blunt. • Patience. It’s critical to fi nd a provider that will take “If you do not currently outsource freight bill auditing the time to explain and demonstrate complex freight and payments, do it immediately,” he says. ■

76 Inbound Logistics • September 2008 When WE collect your transportation data...

YOU will recognize the difference!

YOU will save on your transportation spend! It's that simple!

Talk to our clients.

2525 Drane Field Road, Suite 25, Lakeland, Florida, 33811 863.647.9389 www.cogistics.com SHOP

78 Inbound Logistics • September 2008 TALK RESEARCHING. REVIEWING. CONSIDERING. RECOMMENDING. INVESTIGATING. NOW YOU’RE SPEAKING A PURCHASING MANAGER’S LANGUAGE

by John Edwards magine shopping for a living. That’s the basic job description for purchasing managers, but a shopping spree at the mall isn’t on their To-Do lists. Unlike people who shop for fun or to relieve boredom, pur- chasing managers fi nd themselves juggling an array of stressful, business-critical tasks. As they strive to strike the best deals for their companies, purchasing managers consider product cost, quality, availability, reliability, and support when choosing sup- Iplies and suppliers. In addition to highly refi ned negotiating skills, purchasing managers need in-depth knowledge of specifi c products or services and market con- ditions. They dedicate endless hours to studying sales records, evaluating inventory levels, projecting demand, researching foreign and domestic suppliers, and staying abreast of fi nancial and political changes that could potentially affect the supply of, and demand for, necessary materials. Listen in as four purchasing managers talk shop, chat about challenges, and shoot the breeze on strategy.

September 2008 • Inbound Logistics 79 located in Canada and the United States. “We source 95 ON THE ROAD percent of our products from North America, distributed between Canada and the United States,” Vanderlinde says. Scott Vanderlinde “And we buy a small volume of materials from Mexico.” Purchasing Manager, Doepker Industries Just because a supplier is located in North America Annaheim, Saskatchewan, Canada doesn’t mean that its parts or materials haven’t origi- Purchases: Custom and common components for nated in other places. “Many of our suppliers indirectly producing semi-trailers and grain haulers bring in products from overseas,” he says. This means he has to investigate the supplier’s opera- Challenge: Gathering background on parts bought tions to discover exactly who is providing the products, from North American suppliers that originated at overseas manufacturers and determine the potential for supply chain vulner- abilities that could cut off the source of a critical part Insight: Overseas sourcing is diminishing in favor of or material. “I need to understand where our prod- North American suppliers ucts come from and the diffi culties our suppliers face,” Vanderlinde says. s purchasing manager for Doepker Industries, Like many purchasing managers, Vanderlinde is a manufacturer located in Annaheim, seeing supply chains shorten as rising energy and Saskatchewan, Canada, Scott Vanderlinde transportation costs, combined with a weaker U.S. dol- acquires the basic materials the company needs lar, make it more expensive to import products. “The to produce its semi-trailers and grain haulers. ‘Made in China’ trend is diminishing,” he says. “Many A “I purchase custom and common compo- suppliers are considering locating development and nents, such as suspensions, tires, wheels, lights, and manufacturing in North America instead of China.” wiring, as well as raw materials, including steel and alu- Regardless of the distances involved, freight remains minum, which we use to either make parts in-house or an inevitable part of any product’s cost. To simplify pric- outsource for fabrication,” Vanderlinde says. ing management and gain more control over shipments,

“The ‘Made in China’ trend is diminishing. Many suppliers are considering locating development and manufacturing in North America instead.”

For Vanderlinde, an ideal workday is one when every- Doepker prefers to pay its own freight costs whenever thing rolls along as steadily and smoothly as the trailers possible. and haulers his acquisitions help create. His work is “Even though about 25 percent of our products arrive usually hectic, however. A typical day might fi nd him via prepaid freight, there’s still a cost to us,” Vanderlinde negotiating with a mill for sheet metal, a metal fabrica- says. “No supplier can ship for free.” tor for a specialized part, or a component supplier for a To manage procurement costs and expedite planning, specifi c nut or bolt. Vanderlinde relies on Doepker’s enterprise resource “Many components we use are standard in the indus- planning (ERP) software. The technology, supplied by try and easy to source,” Vanderlinde says. “But when we Indianapolis-based Consona, provides a rules-based design the part, we provide drawings and specifi cations system that enables Vanderlinde to plan and execute to a contract manufacturer.” procurement strategies by describing the company’s Because Doepker manufactures vehicles in an array of requirements. confi gurations, Vanderlinde sources thousands of parts The software streamlines routine tasks and helps and raw material types to meet the company’s diverse Vanderlinde stay on top of critical situations. Reordering, production needs. for instance, is now fully automated. “The system alerts Each purchase requires Vanderlinde to consider a us when we’re down to the last four weeks of inventory variety of factors. “I review the total cost, and how criti- on an item,” he says. All orders can be automatically cal the part is to manufacturing,” he says. “Also, when increased, reduced, rushed, pushed back, or even we source overseas, I have to consider factors other than canceled. transportation that add expense.” “Purchasing has evolved from the days when we han- Doepker sources nearly all its products from suppliers dled orders manually,” Vanderlinde observes.

80 Inbound Logistics • September 2008 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 needs,” Letsinger says. MAKING TECH WORK The purchasing group serves as a support team for operations. “As planning horizons close in, opera- tions needs to have the materials on hand, in the right Jon Letsinger amounts, at the right point,” he adds. Purchasing Manager, Western Electronics The Internet also helps purchasing managers do their Meridian, Idaho jobs faster and more effectively. Letsinger notes that a Purchases: Electronics components and raw growing number of suppliers are setting up purchasing materials for consumer and offi ce products portals on their Web sites. “This technology allows us to Challenge: Maintaining inventory to support an array log in, view costing information, and see the stock being of components required by a constantly evolving held for us,” he notes. “That visibility allows us to make production line more accurate delivery commitments to customers.” Insight: Visibility provided by suppliers’ online By giving businesses the ability to view critical part- purchasing portals enables more accurate delivery ner data in real time, the Internet expands purchasing’s commitments to customers geographic scope while shortening lead times. Instant data access also allows purchasing managers to collab- or the past 23 years, Meridian, Idaho-based orate with global suppliers 24/7, without picking up a Western Electronics has handled printed circuit phone or sending an email, by directly accessing their board assembly and packaging operations for partners’ inventory and billing systems. a variety of electronics manufacturers, creat- “It’s a worldwide economy, and the world is getting ing the “guts” inside a variety of consumer and smaller,” Letsinger observes. “It will help our business if F offi ce products. we can source from different parts of the world to satisfy As Western Electronics’ purchasing manager, Jon both our needs and, ultimately, our customers’ needs.” Letsinger understands the sourcing challenges a con- tract tech manufacturer faces, including an almost endless array of electronic components required by a constantly evolving production line. The parts run the PUMPING PURCHASES gamut of technology, including both cutting- and trail- ing-edge products. Ken Westfi eld “I handle everything from Strategic Sourcing Manager, The Gorman-Rupp electric motors and large trans- Company “I work with formers to sheet metal and Mansfi eld, Ohio copper wire to typical electronic Purchases: Parts and materials for industrial pumps the scheduling components, such as capacitors, team daily resistors, and integrated circuits,” Challenge: Coping with rising commodity prices and Letsinger says. transportation costs to determine Western Electronics sources Insight: Monitoring supplier performance and most of these materials, which relationships helps identify savings opportunities the operation’s are manufactured around the world, through large distribu- s a strategic sourcing manager, Ken Westfi eld short-term tors, including Avnet and Arrow keeps a steady supply of parts and other Electronics. The fi rm also deals materials flowing into The Gorman-Rupp needs.” with smaller distributors for spe- Company, an industrial pump manufacturer cialty products. Most of these located in Mansfi eld, Ohio. Gorman-Rupp partners are located within A manufactures pumps for a variety of markets, a three- to fi ve-day transportation window. Custom including consumer, municipality, wastewater, indus- metal products, however, are usually sourced from trial, construction, petroleum, and agriculture. The what Letsinger describes as low-cost geographies, such company operates seven manufacturing facilities in as Thailand and other parts of Southeast Asia. three countries: one each in Canada, The Netherlands, Like Vanderlinde, Letsinger relies on planning and Ireland; and four in the United States. software to help coordinate and monitor Western Westfi eld has worked at Gorman-Rupp for 14 years. He Electronics’ purchasing activities. He also depends on started in the company’s engineering department, where collaboration with co-workers. “I work with the sched- he spent six years as a computer-assisted design (CAD) uling team daily to determine the operation’s short-term operator and technical support engineer, among other

82 Inbound Logistics • September 2008 A Key Advantage

Turn to the pros at InterChez as your company prepares for the global market.

InterChez presents an extensive lineup of capabilities from state-of-the-art global logistics management to complete linguistics services. InterChez provides solutions that deliver measurable value to customers with competitive global advantage through logistics excellence. Don’t risk your bottom line before understanding the complete picture of international business.

3924 Clock Pointe Trail, Suite 101 Stow, OH 44224 USA Phone: (330) 923 5080 www.interchez.com “A Certified Minority Business Enterprise” Most of Gorman-Rupp’s suppliers are based in the United States. “We take pride in the fact that we buy domestically,” says Ken Westfi eld, strategic sourcing manager.

roles. He then moved into sales and, when the oppor- schedule from which we build purchasing plans,” tunity arose, became a corporate buyer. Westfi eld has Westfi eld says. worked in purchasing for the past fi ve years. The company scores its 80-plus suppliers on several In his current position, Westfi eld oversees purchasing key criteria, including delivery, quality, and pricing data. for Gorman-Rupp’s main plant in Mansfi eld. His job “We issue a quarterly scorecard to benchmark supplier tasks him with acquiring a variety of products, ranging performance,” Westfi eld says. “Last year, we held a ‘sup- from castings to diesel engines, as well as fabricated plier day’ to reward the best performers.” parts, electrical components, wiring, decals, paint, and The event serves to strengthen bonds and help both even nuts and bolts. parties better understand and appreciate each other’s Most of Gorman-Rupp’s suppliers are based in the needs. Gorman-Rupp presented the suppliers with awards and updated them on company news and plans. Like his counterparts at other companies, Westfi eld is battling rising commodity prices and transportation costs. “To minimize the impact of soaring prices, we’ve built more effi ciency into the assembly line and ship- ment consolidation process,” he says. While Westfield realizes that he has only limited control over shipping costs, he still wants to shave rates wherever he can. For instance, after learning that one carrier was moving about 80 percent of inbound freight on the suppliers’ terms, he called a meeting to address the situation. “I’m now working with the traffic coordinator to compile a list of carriers we have contracts with and determine which ones offer the most favorable terms,” he says. “And we’re working toward including specifi c carrier requests on the purchase orders.” Westfield says strategic sourcing – a procurement process that continuously improves and re-evaluates a company’s purchasing activities – also helps him buy THE SUM OF ITS PARTS. Ken Westfi eld’s strategic sourcing decisions help boost the bottom line at industrial products and materials on the best terms, while saving pump manufacturer The Gorman-Rupp Company. time and reducing overhead expenses. Westfi eld stays abreast of new technologies to fi nd United States. “We take pride in the fact that we buy ways to improve processes and cut costs. “We now domestically,” he says. release about 88 percent of our purchase orders elec- Westfi eld describes his purchasing department as a tronically,” he says. “That represents a lot of time – and “jobbing shop.” “We don’t buy large quantities of any postage – saved.” one product, but we do purchase volumes of different He’s also looking into the “supplier-managed inven- products,” he says. tory” concept, which requires key suppliers to assume Westfi eld feels that careful statistical analysis is vital responsibility for maintaining negotiated inventory lev- to coordinating Gorman-Rupp’s wide-ranging sourc- els. “This is an opportunity to shift some tracking and ing activities. “We base forecasts on history and sales management work to the supplier,” he says. reports,” he says. But Westfield doesn’t believe that more supplier The company’s sales information is stored in an oversight will diminish the purchasing manager’s role. AS-400 computer system running MAC-PAC ERP “Companies will always need someone to decide what to software provided by Columbus, Ohio-based TDCI. buy and who to buy it from,” he says. “That will never “Once the data is loaded, the system creates a master change.”

84 Inbound Logistics • September 2008 Odyssey Ad layouts 09.08.08 9/8/08 5:53 PM Page 1

Punctilious*

*punc til i ous \adj: marked by precise accordance with details \syn: careful, precise, process-disciplined, delivers value

Our clients are precision-driven, niche-targeted and absolutely focused when it comes to managing their global logistics to the highest standards.

So are we.

That’s because Odyssey specializes in managing complex logistics that few others touch.

www.odysseylogistics.com procured from U.S.-based vendors. Exceptions are some- GOVERNMENT WORK times made when availability or some other criteria suggests that it may be best to look to a foreign vendor for a particular part. Paul North “Through licensing, we can obtain approval from the Vice President of Procurement, Harris Corp. Rochester, New York State Department to source those components interna- tionally,” North says. “But some devices are not cleared Purchases: Custom-developed components and non- to be manufactured outside the United States.” critical parts for radio communications equipment Automation technology has signifi cantly lifted the Challenge: Servicing government agencies with burden from North’s purchasing team. “It used to take specifi c quality, source, and security requirements two days for a buyer to issue requests for quotations Insight: Custom software helps identify potential because we had to fi gure out what products were needed vendors and negotiating terms and in what quantities, determine the last supplier of choice, and do the engineering drawing,” he says. urchasing materials for a business with a cus- “Then we had to pull the package together by complet- tomer base composed almost entirely of ing, distributing, and collecting the RFQs, and manually government agencies poses a variety of spe- transferring the information into a decision matrix.” cial challenges. Paul North, vice president of Today, a custom software environment automates procurement for Harris Corp.’s Rochester, N.Y.- most of the process. “The software tools relieve the buy- P based RF Communications er’s responsibility,” North says. In fact, Division, is used to coping with the the system takes the fi rst step in the special purchasing requirements gov- procurement process by automati- ernment customers set for the type, cally matching required parts with quality, and geographic origin of “ We can look potential vendors. “When I arrive sourced parts. in the morning, the action messages “Our primary products are tactical at the metrics are waiting for me,” he adds. radio communications equipment,” and note where The system also facilitates online North says. “Our customers are the negotiations. “Our suppliers are U.S. government, including the we’re in control given a bid deadline, and they pro- Department of Defense, and various vide an electronic quote,” North international governments.” and where we says. “The data is then presented Intended for highly secure voice to the buyers for review.” The sys- and data communications, Harris need help.” tem also helps Harris meet export Corp.’s specialized radios offer reli- control mandates by making sure ability for high-security customers. confidential data isn’t acciden- “We develop the majority of products tally disclosed to parties who aren’t ourselves,” North says. “We identify custom- cleared to receive such information. “Protection is ers’ needs and create products that meet their built into the system to make sure the right people get requirements.” the right data,” North says. Such specialized radio equipment demands Harris recently implemented a software-based dash- expensive and often unique components. Unlike most board that helps buyers track critical procurements with manufacturers’ purchasing requirements, quality, source, a real-time status summary. “The system shows how and security considerations all trump price for the parts many outstanding RFQs the buyer has; how many are North procures. on time; and how many have been expedited, held, and “We pay close attention to security,” he says. “Working cancelled,” North says. “We can look at the metrics and with the State Department and other government agen- note where we’re in control and where we need help.” cies, we perform a technology review of components.” North’s purchasing team would be hard-pressed to The review tells the company’s buyers which products achieve comparable effi ciency and productivity without they may procure and how to source them. automation. “It has given us more time to work strategi- North sources non-critical parts conventionally from cally and stay focused on our key partners,” he says. vendors worldwide. “Some components are classifi ed as That visibility is a strategic commodity purchasing pure commercial devices,” North says. But many parts, managers can appreciate, whether their To-Do lists fea- mostly those using cutting-edge or militarily sensitive ture procuring raw materials from domestic suppliers or technologies, are considered “controlled” and must be high-tech components from overseas. ■

86 Inbound Logistics • September 2008

CASEBOOK RETAIL LOGISTICS

by Dan McCue

Urban Outfi tters Sales Into the Wind

or most of storefront America, to not only sail into the wind, but to do difficult macroeconomic head- so with gusto? Fwinds have ushered in a period Part of the answer is dedication to its of re-entrenchment. Starbucks, the mission of delivering a distinctive, rec- coffee shop on every corner, has been ognizable shopping concept, whether forced to take a deep breath and close a customer visits a brick-and-mortar some 600 stores. Ann Taylor, Zales, Pier store, goes online to the Web site, or 1 Imports, Gap, Talbots and many other makes selections through its mail-order well-known retailers have reined in and catalogs. Urban Outfi tters struts its shuttered growth or shifted into turn- More signifi cant, however, has been around mode. Urban Outfi tters’ ability to revamp its stuff through aggressive At a time when competitors are reeling, supply chain and logistics processes to Urban Outfi tters Inc. is rocking – sticking ably meet the demands of rapid growth, growth, a unique customer to a long-term plan of 20-percent annual laying the groundwork for a projected growth through its three brands: name- expansion that will add 500 stores in perspective, and a sake Urban Outfitters, Anthropologie, North America, Europe, and Asia. supply chain that pulls it and Free People. The Philadelphia-based company CLEAR STRATEGY AND VISION all together. is even expanding in new directions. Although many of Urban Outfi tters’ Earlier this year, it opened a home supply chain moves have been years décor and garden store called Terrain, in the making, the pace of change has near Chadds Ford, Pa. It also recently been particularly noteworthy during debuted Leifsdottir, a wholesale brand the past two years. for Anthropologie, that will be sold “We are not making these changes through department and specialty stores, in response to the economy,” affi rms including Nordstrom, Bloomingdale’s, Barbara Rozsas, Urban Outfi tters’ exec- and Bergdorf Goodman. utive director of sourcing. “We base all How has Urban Outfi tters managed our supply chain decisions on a clear

88 Inbound Logistics • September 2008 strategy of growth and a shared vision an idea called “concept to market” that Building throughout the organization. Rozsas and Ken McKinney, the retailer’s “Our supply chain strategies have all director of distribution, have champi- Brands That Suit been well-orchestrated,” she adds. “We oned for several years. The Customer do our due diligence, plan, then march “Given the company’s growth plans, accordingly.” which we were well aware of, it was ounded in 1970 when its As of the second quarter of 2008, sales essential to have a complementary sup- Ffi rst store opened at the averaged about $575 per square foot in ply chain strategy in place,” McKinney University of Pennsylvania, Urban its namesake stores, $760 per square says. Outfi tters is today comprised foot at Anthropologie, and a whopping Most importantly, the strategy of roughly 120 Urban Outfi tters $1,050 per square foot at Free People. required the company to design flex- locations, 110 Anthropologie The brand appears to be doing just as ibility into its scheduling process. It stores, 15 Free People sites, and a well in Web and catalog business, with accomplished that by putting dual sourc- single Terrain location. direct-to-consumer sales growing an ing strategies in place. Each of the brand’s stores is average of 48 percent since 2003. “We developed fabric and raw materi- built around a unique, boutique- als sources in alternate locations,” Rozsas like design, and each targets AN URGENCY TO BUY explains. “Doing that greatly com- different customers. The company attributes its strong presses our turnaround time in case of The Urban Outfi tters brand sales in part to a lean buying strategy a reorder. targets 18-to-26-year-olds who that creates a sense of urgency among “We manufacture an initial order in have “graduated” from their its customers, according to John Kyees, one location and the reorder in another,” parents homes to apartments or Urban Outfi tters’ chief fi nancial offi cer. she adds. “The ability to dual source college dorms, and are looking While many retailers plan to sell a lets us deliver less quantity up front. In to differentiate themselves from signifi cant percentage of their merchan- effect, our calendar fl exibility enables us their peers during the “dating and dise as markdowns, such thinking only to optimize inventory.” mating phase of their lives,” said encourages shoppers to wait eight weeks Every two weeks, Urban Outfitters’ John Kyees, Urban Outfi tters’ so they can buy at a lower price, Kyees supply chain team sits down with the chief fi nancial offi cer, at a recent believes. company’s other key executives to touch William Blair & Company growth “At the Urban and Anthropologie base, assess the fl uidity of a process that stock conference. stores, and Free People site, if custom- includes more than 1,500 vendors, and Anthropologie is targeted ers don’t buy it when they see it, odds discuss needed changes or adaptations. to well-educated and affl uent are they will lose their chance, because In the case of concept-to-market, the 30-to-45-year-old women with the sizes will be broken or the item will goal is to reduce the time from designer homes in the suburbs, he said, be sold out,” he told analysts at a recent concept to store shelf from 18 weeks while the Free People brand is William Blair & Company growth stock down to nine or 10. aimed at customers in their late conference. 20s or early 30s, who consider “We love selling out of items because FAR EAST FOCUS themselves more “bohemian.” that creates a sense of urgency,” he To do that, the company has focused added. much attention during the past two years Urban Outfi tters’ ability to ship lean, on the Far East, where it sources all its while remaining confi dent it can restock private brand merchandise from about shelves and keep up with rapid growth 15 different vendors. Private brands cur- in both stores and sales, springs from rently make up about 50 percent of the

September 2008 • Inbound Logistics 89 CASEBOOK ‹ CONTINUED FROM PAGE 89

product Urban Outfi tters sells. About 15 percent of the merchan- Typically, the merchandise process dise received at the facility goes into begins with the designer, moves on to reserve storage; the majority is cross- the raw materials merchant and the docked to a packing area where it is production person, then to an agent allocated to the stores the facility serves. who helps facilitate the production pro- As a result of the streamlined process, cess. Only then does it move on to the Urban Outfi tters has reduced turnaround factory. time from distribution center to store To tighten turnaround time on prod- from three to four days down to two days ucts, Urban Outfi tters has taken a closer Total Sales or fewer. “And we saved about $1.5 mil- look at its relationships with agents. lion in facility costs,” McKinney adds. “Although we have eliminated some 2002–2008 Opening the new distribution center (in $ millions) agents, we are not completely remov- also enhanced Urban Outfitters’ abil- CAGR +27.6% ing them from the process,” Rozsas says. ity to grow, allowing for more effi cient “Rather, we’re striving to ensure that staging of merchandise as new stores collaboration between our agents and open in a region, and ensuring that vendors is as effi cient and effective as “one DC isn’t absorbing all the pressure,” possible. Urban Outfi tters McKinney says. “Toward that end, we hold agent constantly fi ne-tunes its supply chain and logistics training sessions both domestically processes to meet RATIONALIZING IT FUNCTIONS and abroad to ensure everyone working continuing sales growth. At the same time that Urban Outfi tters within the brand is on the same page has revamped its supply chain partners in terms of aesthetics, goals, and objec- and processes, it has also been refi ning

tives,” she says. ((), its technology process. In instances where agents have been Toward that end, the company eliminated, Urban Outfi tters has begun launched a new wholesale informa- to work directly with its overseas facto- .,' tion management system in both its ries. “These changes are all about having Pennsylvania and Nevada distribution

partners on the ground who are aware *., centers earlier this year. of, and in sync with, what we want to “The beauty of the system is that it achieve,” Rozsas adds. allows me to choose from a menu Taking its direct involvement in the Far )'') )''* )''+ )'', )''- )''. )''/ of daily reports to assess our over- East one step further, Urban Outfi tters is all supply chain and distribution contemplating establishing a Hong Kong operations and determine what, if offi ce that will consolidate logistics func- any, situations we need to address,” tions overseas as the company expands SOURCE: Urban Outfi tters Inc. McKinney says. distribution there. “For instance, our direct-to-consumer channel is time sensitive,” he notes. “We TAKING A CHANCE ON RENO partner, but we just outgrew the rela- like to ship within 24 hours, or even Urban Outfi tters has also been restruc- tionship, which dated back to 1998,” faster if it’s an expedited order, and now turing its supply chain operations in McKinney says. I can get a daily report that tells me if we anticipation of continued growth. For “It became a situation where our vol- succeeded.” example, it opened a new West Coast umes were increasing and we couldn’t Other reports detail shipments by state, distribution center in Reno, Nev., ear- get the services we needed from our by weight, and by carrier. “It’s a lot of lier this year. 3PL without adding substantially to its helpful information that enhances how While the opening of the new dis- costs – and 3PLs are sometimes reluctant we manage the supply chain,” he says. tribution center ended a long-standing to take on additional labor and equip- But as satisfi ed as Ken McKinney is relationship with a West Coast third- ment costs when the customer could with the warehouse management sys- party logistics provider (3PL), it wasn’t a walk at any time,” he notes. tem, he’s already looking for ways to case of dissatisfaction with a long-time The new Reno DC relies on high-speed enhance it. partner. sortation and light-directed picking to In early June 2008, Urban Outfi tters “In fact, the 3PL was a very good speed up the supply chain. announced that it will implement a

90 Inbound Logistics • September 2008 merchandise lifecycle management suite “We like the software’s ability to pro- Because the system reveals supply from TradeStone Software Inc., a pri- vide us with product visibility at each chain problems in real time, McKinney vate-labels solutions provider based in point in the lifecycle,” he says. “The and Rozsas can respond as soon as issues Gloucester, Mass., across all its brands. system enables us to more effectively arise, eliminating the time wasted in To support the company’s sales manage exceptions and respond to learning about a snafu after the fact, growth, TradeStone’s technology pro- changing consumer demand.” then backtracking to fi x it. vides McKinney and Rozsas with full “The system reduces risk factors end-to-end supply chain visibility from FILLING THE GAPS and enables Urban Outfi tters to move design to delivery. Weighing heavily in TradeStone’s dynamically when it needs to,” says “Our selection of TradeStone’s technol- favor was the ability to layer its soft- Diamante. ogy is yet another example of how much ware on top of existing applications in Urban Outfitters plans to phase due diligence goes into every decision Urban Outfi tters’ facilities, notes Ann Tradestone’s software into its system we make,” McKinney says. “We looked Diamante, TradeStone’s senior vice pres- over a six-month period. at a number of systems over 18 months, ident and chief product offi cer. “There is a lot of pressure when you go and while some systems were stronger “In this instance, our software fills live so quickly, but if you don’t hold to a in areas I cared about and others were the gaps in Urban Outfi tters’ existing tight timetable, it’s easy to get derailed,” stronger in areas Barbara Rozsas cared system,” she says. “For example, we inte- Diamante says. about, this was the one system that had grate bar-coded labeling directly from The effort will be well worth it, if it most of what we both wanted.” TradeStone into the warehouse manage- fulfi lls Urban Outfi tters’ ultimate goal, TradeStone’s system places many ment system, providing a quicker, more Rozsas says, “ensuring that branded different attributes at decision-makers effi cient warehouse locator system than stores have what customers want, when fi ngertips, McKinney says. the company’s existing one.” they want it.” ■

B\P[[
P]S

TM

© 2008 Datamax Corporation. All Rights Reserved. www.datamaxcorp.com · 800.816.9649

September 2008 • Inbound Logistics 91 TECHUPDATE THE LATEST IN LOGISTICS TECHNOLOGY

volume shipments near their location quickly and affordably. u www.odfl .com ✆ 800-432-6335

partnerships ORTEC and TouchStar Technologies WHAT’S NEW: An alliance to create an oil and gas industry transportation planning and execution solution. THE VALUE: The solution, which covers telemetry, scheduling, mobile com- puting, and ERP interfacing, integrates ORTEC’s secondary distribution opti- mization software with TouchStar’s on-board vehicle computers. u us.ortec.com ✆ 678-392-3100 u www.touchstar.co.uk ✆ 44 0 1274 741860

hardware Brother WHAT’S NEW: Two handheld industrial labeling tools. THE VALUE: The latest additions to LXE Inc. web Brother’s P-touch EDGE series provide WHAT’S NEW: A pair of on-site, on-demand labeling for ware- mobile computers. FKI Logistex house and shipping applications. The THE VALUE: Designed for enhanced WHAT’S NEW: A multilingual Web site. PT-7600 and PT-7500 offer cost-effec- display visibility, LXE’s new models, the THE VALUE: Offering content in seven tive solutions for creating and printing handheld MX3Plus (pictured) and vehicle- languages, FKI Logistex’s enhanced labels with just a few keystrokes. For mounted VX3Plus, are available with two Web site provides product information larger applications, users can transfer a specialized display options. A high-contrast and quick access to sales and service database to the PT-7600 and search by indoor version, suitable for use in low- representatives around the world for keyword to insert a phrase or identifier light environments such as containers and personalized support, customized code into the layout function. warehouses, is five times brighter than information, and product details. u www.brother-usa.com ✆ 908-704-1700 the color displays on LXE’s MX3X and VX3X u www.fkilogistex.com ✆ 877-935-4564 models. A sunlight-readable version uses software transflective display technology, making it Old Dominion Freight Line suitable for direct-sunlight applications. WHAT’S NEW: An equipment-tracking SEKO u www.lxe.com service. WHAT’S NEW: A global vendor purchase ✆ 800-664-4593 THE VALUE: The Find Available order (PO) management application. Equipment application helps shippers THE VALUE: SEKO’s Supplier PO locate containers available for street- Management system facilitates man- turns and/or units available to haul aging multiple purchase orders from

92 Inbound Logistics • September 2008 To learn more, contact these companies directly. Remember to mention this issue date and page to get the right information.

multiple vendors by providing end-to- end visibility from the vendor to the SICK warehouse to delivery. All PO entries WHAT’S NEW: Two bar-code scanners. and changes are recorded and pre- THE VALUE: Compact yet powerful, SICK’s served, displaying the original entries, CLV620 (pictured) and CLV630 bar-code scanners current status, and changes made. suit a range of logistics applications such as u www.sekoworldwide.com ✆ 800-228-2711 distribution warehouses, high-speed packaging, and parcel/postal operations. Both scanners DHL offer onboard serial and EtherNet communication WHAT’S NEW: A global online tracking versions, as well as the ability to read poor, tool. partially hidden, and damaged bar codes. THE VALUE: Global ProView tracks and u www.sickusa.com ✆ 800-325-7425 monitors time-definite international (TDI) services and provides real-time to stop, the number of gallons to pur- fl eet operations software. global shipment status. Designed to chase, the current fuel price, and road/ THE VALUE: Using Microsoft Virtual meet the needs of shippers with a exit information. Earth maps, the upgraded mapping large number of TDI shipments, Global u www.mile.com ✆ 800-776-6706 application provides larger and more ProView provides access to information dynamic maps to help better track on all shipments with a password-pro- XATA Corporation exact vehicle location and improve tected account number. Available to WHAT’S NEW: Improved digital map- route details. the U.S. market since 2006, the tool is ping tools in XATANET on-demand u www.xata.com ✆ 800-745-9282 now accessible to shippers worldwide. u www.dhl-usa.com ✆ 800-CALL-DHL

Inovis WHAT’S NEW: Partner management software. THE VALUE: Inovis’ Actionable Intelligence software monitors electronic orders, ship notifications, and invoices against business rules and compliance guides to help suppliers and retailers quickly uncover problems and create solutions to fix the issues. u www.inovis.com ✆ 877-4INOVIS

Prophesy WHAT’S NEW: A fuel optimization fea- ture in Dispatch. THE VALUE: Prophesy’s Dispatch appli- cation now generates optimized fuel plans for dispatched loads and elec- tronically sends detailed information to the assigned driver’s cell phone or on-board computer, including where

September 2008 • Inbound Logistics 93     

                   

  
     !"#  $ %     %

'    (

                

 

                   

         ! "#$%         $&$ $!          !"# $%
&&!!

                   !       !  "  # NEWSERVICES YOUR BUSINESS LOGISTICS RESOURCE

Wildeck WHAT’S NEW: A pivot safety gate. THE VALUE: Wildeck designed its new safety gate to meet industry demand and pending code requirements for increased Globe Express Services (GES) MHF Supply Chain Solutions safety during forklift loading and off-loading WHAT’S NEW: A corporate offi ce in Los WHAT’S NEW: Door-to-door rail service. of material on mezzanines, elevated platforms, Angeles. THE VALUE: Carload Solutions bundles balconies, and rack systems. With the gate’s THE VALUE: GES Los Angeles serves rail, transloading, and trucking into an perimeter railing and integral 4-inch-high the Pacific region, providing core 3PL integrated service product under a sin- kickplate, loading and unloading areas are fully services such as ocean imports and gle invoice, simplifying multi-modal protected, reducing accidents and injuries from exports, air imports and exports, and transportation. falling material. customs brokerage. Additionally, the u www.mhfscs.com ✆ 877-452-9300 u www.wildeck.com office offers a full slate of warehousing ✆ 800-325-6939 and distribution solutions, including Emirates SkyCargo deconsolidation, transloading, and WHAT’S NEW: A low-cost solution for expedited trucking. moving temperature-sensitive cargo. u www.globeexpress.com ✆ 800-874-8827 THE VALUE: The lightweight,

September 2008 • Inbound Logistics 95 NEWSERVICES ‹‹ CONTINUED FROM PAGE 95

breathable, and reusable protective congestion, carbon emissions, supplier pharmaceutical-grade cold storage White Cover shields shipments from transportation costs, and transit time. facility near Plainfield, Ind., out- heat during transport. Available in two u www.casestack.com ✆ 866-828-7120 side Indianapolis. Opening in 2009, pallet sizes weighing 2.5 pounds and the facility will meet all U.S. Food 6.5 pounds, the insulated cover weighs Trinity Transport Inc. and Drug Administration and cur- one-tenth of comparable products on WHAT’S NEW: An offi ce in Dallas. rent Good Manufacturing Processes the market, making the additional THE VALUE: The expansion allows standards. shipping cost negligible. Trinity to extend its LTL and flatbed u www.mdlogistics.com ✆ 317-838-8900 u www.skycargo.com ✆ 800-366-6845 services in the southwestern United States. Con-way Inc. CaseStack u www.trinitytransport.com WHAT’S NEW: A multimodal division. WHAT’S NEW: A warehouse location in ✆ 800-846-3400 THE VALUE: Providing expanded freight Laredo, Texas. brokerage capabilities and services in THE VALUE: Beginning Oct. 1, 2008, MD Logistics the third-party logistics and multi- the new consolidation facility will WHAT’S NEW: An expanded pharmaceu- modal freight transportation business, support logistics from Mexican man- tical distribution operation in central Con-way Multimodal arranges carrier ufacturing companies to U.S. retailers, Indiana. services for over-the-road, intermodal, especially Wal-Mart. The facility was THE VALUE: MD Logistics plans flatbed, heavy haul, and specialized designed and sited to reduce dock to construct a 15,000-square-foot transportation for truckload shipments throughout North America. u www.con-way.com ✆ 734-994-6600

Lufthansa Cargo WHAT’S NEW: Non-stop fl ights to Toronto. THE VALUE: Twice a week, a Lufthansa MD-11F freighter flies from Frankfurt to Toronto. After a brief stop, the flight, which has a capacity of nearly 100 tons, returns to Frankfurt via Atlanta. u www.lufthansa-cargo.com ✆ 800-542-2746

APM Terminals, Port Elizabeth WHAT’S NEW: The addition of four new container cranes. THE VALUE: The new electric cranes, which bring the New Jersey port’s count to 15, can serve the largest ves- sels afloat with a reach of 22 containers across. u www.apmterminals.com ✆ 908-558-6000

4 Elements Inc. (4-E) WHAT’S NEW: A Kansas City, Kansas, Isuzu Commercial Truck of America branch. WHAT’S NEW: A series of low cab forward trucks. THE VALUE: 4-E’s 10th branch allows THE VALUE: The 2009 N-Series line’s data recording module provides a vehicle health report the logistics company to expand ser- showing the condition of the engine, transmission, emissions, and brakes, plus fuel economy and vices in the central United States driver operating habits. through increased carrier coverage and u www.isuzucv.com ✆ 866-441-9638 trip efficiencies. u www.4elogistics.com ✆ 888-616-0443

96 Inbound Logistics • September 2008 YOUR BUSINESS LOGISTICS RESOURCE

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

Solomon Consulting LLC Weber Distribution Estes Express Lines WHAT’S NEW: A trucking division. WHAT’S NEW: A facility in Portland, Ore. WHAT’S NEW: Terminals near THE VALUE: The division’s consul- THE VALUE: Located within the Minneapolis and Seattle. tants offer guidance on cost reduction main Pacific Northwest transporta- THE VALUE: The terminal in Mankato, opportunities, management controls, tion and warehousing corridor, Weber Minn., offers direct service to south- and process improvement to shippers Distribution’s 12,500-square-foot dis- central Minnesota and supports using outsourced services or operating tribution facility expands its coverage businesses in the Twin Cities metro- private fleets. in the region. politan area, while the Everett, Wash., u www.solomon-consulting-llc.com u www.weberdistribution.com facility supports northwestern U.S. ✆ 928-684-6168 ✆ 877-624-2700 trade and provides in-depth coverage to the Canadian border. NYK Line Grand Alliance u www.estes-express.com ✆ 804-353-1900 WHAT’S NEW: A restructured Atlantic WHAT’S NEW: Enhanced service North-South Express (ANS) service. between the Mediterranean and Asia. SEKO THE VALUE: Operating six 1,100-TEU THE VALUE: Valencia, Spain, has been WHAT’S NEW: An offi ce in Germany. vessels on a fixed-day weekly period, added as a port of call to the service, THE VALUE: SEKO’s headquarters in the service covers the main ports of the which originates and ends in Busan. Frankfurt and six facilities throughout east coast of South America, Venezuela, The route deploys eight vessels, each Germany offer international air and Dominican Republic, and the east coast with a capacity of approximately ocean freight services, warehouse man- of North America. 6,000 TEUs. agement, and customs brokerage. u www.nykline.com ✆ 888-695-7447 u www.oocl.com ✆ 888-388-OOCL u www.sekoworldwide.com ✆ 800-228-2711

COURSES NOW ONLINE Offering the Certified Logistics Practitioner Program (CLP) ■ Coursework Articulated with the University of Phoenix

Since 1923, ILM has helped more than 84,000 alumni

INSTITUTE OF navigate their supply chain and logistics careers. LOGISTICAL MANAGEMENT The Institute provides comprehensive knowledge to Tel: 1-888-ILM-4600 professionals who want to successfully compete in Fax: 609-747-1517 today’s complex logistics and supply chain industry. 315 W. Broad Street Burlington, NJ, 08016 Register today to become a part of the oldest www.logisticseducation.edu Logistics Distance Learning School in the world. [email protected] “ILM puts the LOGIC in LOGISTICS” – Staff Sgt. H. Jennings, U.S. Army

September 2008 • Inbound Logistics 97 IN THIS SECTION: 3PLs

3PLs

AFN-Advantage Freight Network • www.afnww.com

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

Diamond Logistics • www.diamondlogistics.com

As a third-party logistics company, Diamond Logistics offers a full range of quality, customized global transportation, logistics, and retail supply chain management solutions that afford customers a distinct competitive advantage. As a non-asset-based logistics provider, Diamond Logistics has the independence to make selections based on your needs alone. Let Diamond Logistics be proactive for you; visit the Web site today for more information.

Greatwide Logistics Services • www.greatwide.com

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

Jacobson Companies • www.jacobsonco.com

What can we do for you? When it comes to supply chain management, the answer is: Leadership, Innovation and Quality Solution. Everything we do: warehouse operations and management; freight management; full truckload and asset-based solutions; contract packaging and manufacturing services; total staffi ng solutions; and temporary services. We center these services around our companywide Can Do commitment to you.

98 Inbound Logistics • September 2008 IN THIS SECTION: 3PLs

Lynden • www.lynden.com

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

Reviva Logistics • www.revivalogistics.com

Reviva Logistics specializes in third-party warehouse and asset-based outbound and reverse logistics services for the automotive, tire, and general transportation industries. Reviva combines breakthrough innovation with day-in, day-out consistency and focus on inbound container/truckload receiving management; total warehouse management; outbound shipping management and freight carrier optimization; EDI integration capability with all OEM operating systems; and last mile nationwide outbound and reverse logistics capability. If you are interested in learning more about Reviva Logistics and exploring real-world success stories, please visit the Web site.

Robert Transport • www.robert.ca

Put Robert Transport’s strength to work to reduce your costs, whether you need full load, LTL, warehousing, distribution, specialized, or logistics services in the United States or Canada. Robert will meet your precise, pre- determined deadlines. The company’s attention to every detail ensures it delivers your order accurately and without complications, respecting your deadlines and preserving the integrity of your merchandise.

Sunteck Transport Group • www.suntecktransport.com

Sunteck Transport Group, a wholly-owned subsidiary of AutoInfo, Inc., is largely an agent-based provider of logistics services. With both brokerage and carrier operating authority, Sunteck’s portfolio of services includes full truckload brokerage, contract carrier/asset management, less-than-truckload, intermodal, expedited, government, and third-party logistics.

September 2008 • Inbound Logistics 99 IN THIS SECTION: Freight Bill Audit/Payment

FREIGHT BILL AUDIT/PAYMENT

Cass Information Systems • www.cassinfo.com

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

COGISTICS • www.cogistics.com

COGISTICS is the new standard in freight payment and audit. We have developed our PAY system from the ground up by listening to customers. COGISTICS offers extensive online reporting capabilities; 24/7 online inquiry with freight bill image lookup; weekend, month-end, and year-end freight accrual data; complete audit of customhouse brokerage invoices; currency normalization; and an interactive/searchable data/document image CD. To fi nd out how COGISTICS can turn your raw transportation data into business intelligence via our PAY process visit the Web site or call us: 863-647-9389.

CT Logistics • www.ctlogistics.com

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

nVision Global • www.nvisionglobal.com

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

100 Inbound Logistics • September 2008 IN THIS SECTION: Freight Bill Audit — Ocean/Land

PowerTrack • www.powertrackglobal.com

The PowerTrack Network effectively collaborates with customers around the globe to create solid links between physical supply chain events and fi nancial processes and payments. Since the beginning, PowerTrack has allowed its custom- ers to use supply chain data to make faster, more accurate payments for supply chain partners worldwide — vendors are paid within days, not months. The results are lower supply chain costs and increased fi nancial control and visibility. To learn more about how PowerTrack can help you, visit www.powertrackglobal.com.

INTERMODAL

Matson Navigation • www.matson.com

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

LOGISTICS IT

myLogistics • www.mylogisticsinc.com

myLogistics™ provides quality technology solutions designed to meet the unique logistics needs of clients. Its core products, based on more than 15 years of development experience, include: routing, scheduling and optimization; Web-native TMS functionality; and private and dedicated fl eet delivery solutions including online GPS visibility. A newly released, fully integrated mobile solution can be implemented to complement these services. The comprehensive, yet affordable, offerings are driving immediate, real savings and effi ciencies today with a number of top companies.

OCEAN/LAND

Matson Navigation • www.matson.com

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

September 2008 • Inbound Logistics 101 IN THIS SECTION: Site Selection • SmartWay

SITE SELECTION

TVA Economic Development • www.tvaed.com

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

SMARTWAY

EPA SmartWay • www.epa.gov/smartway

In 2004, EPA launched SmartWaySM — an innovative brand that represents environmentally cleaner, more fuel-effi cient transportation options. In its sim- plest form, the SmartWay brand identifi es products and services that reduce transportation-related emissions. The impact of the brand, however, is much greater as the SmartWay brand signifi es a partnership among government, business, and consumers to protect the environment, reduce fuel consumption, and improve air quality. All EPA SmartWay transportation programs result in signifi cant, measurable air quality and/or greenhouse gas improvements while maintaining or improving current levels of other emissions and/or pollutants. Find out what you can do to save fuel, money, and the environment with SmartWay.

Maryland Motor Truck Association • www.mmtanet.com

Maryland Motor Truck Association is a trade organization serving 1,000 members. MMTA strengthens the trucking industry by offering an array of services to its members. These include conducting compliance training programs, providing substantial discounts on business services and trucking supplies, keeping members informed on important issues, and serving as the voice of Maryland’s trucking industry on legislative and regulatory affairs.

New Jersey Motor Truck Association • www.njmta.org

The New Jersey Motor Truck Association (NJMTA) represents the trucking community serving the great state of New Jersey. NJMTA is the voice of New Jersey’s trucking industry before state and federal legislatures, government and regulatory agencies, the public and the media. Because the effi cient delivery of goods by truck is essential to New Jersey’s economy, when the NJMTA speaks out on trucking issues, we’re advocates for the interests of all our state’s businesses, institutions, and families.

102 Inbound Logistics • September 2008 IN THIS SECTION: Smartway — Trucking

Ryder • www.ryder.com

Ryder is currently a SmartWay® Carrier Partner for Ryder-owned vehicles and a Logistics Partner for its supply chain operations. Ryder provides end-to-end supply chain, warehousing, and transportation solutions including: third-party logistics (3PL), fl eet management, RFID operations, reverse logistics, supply chain management, transportation management/freight management, truck rental, truck leasing, warehousing, lead logistics provider, lead logistics manager, service parts operations, and distribution center management.

TRANSPORT MGMT. SOLUTIONS

Real Time Freight Services • www.realtimefreight.com

Real Time Freight is a proven technology leader in the freight transportation indus- try. Their complete offering of Web-based solutions streamlines communication among all participants involved with freight management. With Real Time Freight, comprehensive and time-sensitive load information is communicated to all available carrier companies in real time. Shippers and distributors of all sizes, in industries as varied as produce, meat, poultry, dairy, steel, plastic, equipment, lumber and more, are realizing the tremendous benefi ts of managing their freight through the Real Time Freight network. To learn more, visit www.realtimefreight.com today.

TRUCKING

Averitt Express • www.averittexpress.com

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

Bilkays Express • www.bilkays.com

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

September 2008 • Inbound Logistics 103 IN THIS SECTION: Trucking

Lily Transportation • www.lily.com

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

Ruan Transport Corporation • www.ruan.com

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

Ryder • www.ryder.com

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

Saia • www.saia.com

Saia’s Web site offers a contemporary look, enhanced features, and easy navigation. Under Saia Secure, you’ll fi nd customer-specifi c information such as imaged documents, service reports, customized reports, a rate quoter, and shipment tracing. Saia’s service coverage is shown with terminal transit maps, and there’s help from Saia Direct, as well as partner and offshore information.

104 Inbound Logistics • September 2008 IN THIS SECTION: Trucking

UTXL • www.utxl.com

Whether you need a core transportation service provider or a resourceful backup “relief valve,” turn to UTXL. UTXL handles truckload and multiple-stop shipments (consolidated LTL) between any points in North America, and can arrange service to or from any state with satellite and/or cellular equipped teams and single drivers for your van, reefer, fl atbed, or oversized shipments. Shippers nationwide rely on UTXL for reliable service and economical prices; you can, too. Check out the Web site for all the details.

V.M. Trucking • www.vmtrucking.com

Newark, N.J.-based V.M. Trucking specializes in intermodal trucking; container depot services; expedited shipments; and dedicated contract carriage. With V.M. behind the wheel, surprises are virtually eliminated. Everyone on V.M.’s team – from safety-minded drivers to experienced logistics professionals – is dedi- cated to making sure your goods and materials get where they need to go as quickly, safely, and cost-effectively as possible. Find out more about V.M. Trucking by visiting the site today.

Werner • www.werner.com

Werner Enterprises, Inc. is a premier transportation and logistics company, with coverage throughout the United States, Canada, Mexico and China. Werner maintains its global headquarters in Omaha, Neb., offering 24/7 service 365 days a year. Werner is among the fi ve largest truckload carriers in the United States, with a portfolio of services that includes long-haul, regional and local van capacity, temperature-controlled, fl atbed, dedicated and expedited. Werner’s value-added services portfolio includes import and export freight management, PO and vendor management, truck brokerage, intermodal, load/mode and network optimization, and global visibility. Internationally Werner provides freight forwarding and customs brokerage services, and is a licensed NVOCC.

Yellow Transportation • www.myyellow.com

You rely on Yellow Transportation for its full suite of solutions: expedited, cross-border, retail, global, specialized solutions, exhibit services, and standard ground. Now, Yellow offers even more of what you need for any transportation priority: more next-day, two-day and three-day services; faster transit times in more than 15,000 lanes; more than 9,000 new two-day lanes, and more than 3,000 new three-day lanes. Find out more by visiting www.myyellow.com today.

September 2008 • Inbound Logistics 105 INBOUNDCLASSIFIED

9dNdj=VkZi]ZIZX]cdad\nidHjXXZZY4 :ciZgeg^hZVcY=dhiZYHdaji^dch Special people ● AIA$IgjX`$6^g$ ● 8Vgg^ZgAVcZ6cVanh^h  DXZVcFjdi^c\$H]^ee^c\ ● 9dbZhi^X$>ciZgcVi^dcVa Special company ● LBH$8gdhh9dX` ● ;Vm$HXVc$>bV\^c\ ● :bV^aCdi^ÒXVi^dc ● BdYZHeZX^ÒX9dXjbZci PROVIDING LOGISTIC SERVICES WORLDWIDE ● >ciZaa^\ZciGViZH]de  8jhidbZg$8Vgg^Zg ● 8jhidbZgHZa[HZgk^XZ 800-283-8888 8dbeaZiZhd[ilVgZiZX]cdad\nhdaji^dchidbZZindjghVcYndjgXjhidbZghÉ ZkZgX]Vc\^c\gZfj^gZbZcih# www.mainfreightusa.com 8VaaidYVn-%%",*-"+%+*m&'&lll#lZW[gZ^\]iegd#Xdb THE JUDGE GROUP Recruiting Excellence in the Food/Beverage Manufacturing The #1 Logistics Job Board Specializing in: & Distribution Industries for over 35 years! Supply Chain Distribution PERMANENT PLACEMENT FOR ALL LEVELS Transportation Warehousing CONTINGENCY & RETAINED SEARCHES 4VQQMZ
$IBJO
r
.BUFSJBMT

1VSDIBTJOH
r
-PHJTUJDT
r
8BSFIPVTF
r
5SBOTQPSUBUJPO
3PL Freight Forwarding 'MFFU
.BJOUFOBODF
r
&)4

5SBJOJOH
r
)VNBO
3FTPVSDFT
r
*OWFOUPSZ
$POUSPM
r
-PTT
1SFWFOUJPO Manufacturing TO SUBMIT RESUMES OR ENGAGE SEARCHES, PLEASE CONTACT: Engineering JOHN CYLC, ACCOUNT MANAGER www.jobsinlogistics.com 
FYU

r
%JSFDU
'BY
 +'$!+VEHFDPN
r
XXXKVEHFDPN

Freight claim management myEZClaim.net on the A TranSolutions Company The Future of Web-based Claims Management Internet, Anytime, For a free demo, call Anywhere. 480-473-2453 That’s how we find the best candidates world-wide or go to TranSolutions, Inc. Since 1970, Lucas Group’s 22015 N. Calle Royale www.myezclaim.net Scottsdale, AZ 85255 expertise covers plant [email protected] IT development and management, production, www.transolutionsinc.com programming services available engineering, supply chain/ logistics, operations, quality assurance, product develop- ment and a variety of other Xe[ disciplines. At all levels LG>I8;< @DGIFM< and on a nationwide basis, Lucas Group has proven its pfli ability to locate candidates cf^`jk`Zj who make immediate, JB@CCJ bottom-line impact. Gi\gXi\]fik_\]lkli\%I\hl\jk=I<<`e]fidXk`fe ]ifdcf^`jk`Zj\[lZXk`fe\og\ikjfec`e\Xk nnn%`eYfle[cf^`jk`Zj%Zfd&i]g

J`eZ\(0/(%%%k_\ÔijkJ:D dX^Xq`e\Xe[jk`cck_\Y\jk Contact Lucas Group at 800.466.4489 or www.lucasgroup.com/silp

106 Inbound Logistics • September 2008 Attend CSCMP’s Annual Global Conference in Denver, Colorado, from October 5-8.

Connect

Compete

Profi t

Keynote Speaker: Fran Townsend

Choose from over 200 educational Fran will share her insights gained sessions covering topics from global from front line crisis management and infrastructure challenges to emerging unprecedented visibility to US leaders. technologies. Known for its 300 days of sunshine a Learn how to cut supply chain costs year and the serene Rocky mountain and improve profi t, connect with landscape, Denver is a great location colleagues from all over the world, and to learn how to improve your supply discover new and innovative ideas that chain. And, traveling to Denver is will keep your career and your supply convenient! More than 1,400 fl ights chain competitive. go in and out of Denver International Airport every day. This year’s keynote speaker, Fran Townsend, will discuss geopolitical Register online at cscmp.org. issues and their impact on your supply chain. Formerly Assistant to the President for Homeland Security and Counterterrorism from 2004 to 2008,

The World’s Leading Source for the Supply Chain Profession. RESOURCE 09.08 CENTER INBOUND LOGISTICS WORKS FOR YOU!

3PLs ■ Lily Transportation Corp. pg. 21 Lily helps shippers improve profi ts and the envi- ■ AFN pg. 39 ronment. It has lowered its top speed to 60 mph, AFN offers logistics solutions to drive business resulting in reduced fuel consumption and carbon forward. As your strategic partner, AFN keeps footprint, and improved safety. goods moving with customized solutions to meet www.lily.com 800-248-LILY your specifi c supply chain needs – every time. pgs. 5, 11 www.afnww.com 866-7MOVE-IT ■ Lynden When it comes to moving your shipments to, ■ Averitt Cover 4 from, or within Alaska, all transportation com- You need customized solutions that will reduce panies are not alike. Lynden provides the most costs and increase the velocity of your network. extensive coverage with integrated air, marine, Averitt offers fully integrated, built-to-fi t pro- and truck services. grams for effective sourcing, manufacturing, www.shiplynden.com 888-596-3361 order fulfi llment, and transportation services. pg. 49 www.averittexpress.com 800-AVERITT ■ NFI NFI provides transportation, fulfi llment, and tech- ■ Bilkays Express pg. 53 nology solutions – a completely integrated supply chain solutions company. Find out how you can For a specifi c Discover what Bilkays Express can do in the Northeast. Warehousing, inventory control, and join its list of satisfi ed customers. response, contact the latest technology blended with transportation www.nfi industries.com 800-922-5088 these advertisers effi ciency adds up to a winning combination. directly. Please tell pg. 85 www.bilkays.com 800-526-4006 ■ Odyssey Logistics & Technology them you saw their ad in Chemical and process companies turn to Odyssey Inbound Logistics . ■ BNSF Logistics pg. 35 Logistics & Technology for their transportation BNSF Logistics puts your logistics pieces in place needs. Odyssey is one provider serving all modes, For general so you can focus on business. Combining expan- all over the world. questions about sive knowledge with integrated technology sys- www.odysseylogistics.com 203-448-3900 tems, BNSF streamlines your organization. particular industry ■ Platinum Logistics pg. 55 segments, use www.bnsfl ogistics.com 877-853-4756 Platinum Logistics strives to build long-term the card between ■ Carlile Transportation Systems pg. 18 relationships one customer at a time by provid- pages 8-9 and Carlile is a proven leader in multi-modal trans- ing unparalleled customer service, one-on-one pages 104-105. portation and logistics solutions. Whether it’s a freight support, and competitive prices. pallet of tools to Tacoma or a 100-ton module to www.platinumlogistics.com 619-661-8020 Alaska’s North Slope, Carlile has the expertise, For faster service, equipment, and connections to deliver peace of ■ Priority Distribution Inc. pg. 50 go online: mind, every time. If selecting the best transportation 3PL is puz- inboundlogistics.com/rfp www.carlile.biz 800-478-1853 zling to you, PDI can provide the perfect fi t. PDI is a full-service transportation and supply chain ■ InterChez pg. 83 solutions provider. InterChez presents an extensive lineup of capa- www.pdi3pl.com 732-234-1919 bilities from state-of-the-art global logistics management to complete linguistics services. ■ Priority Solutions International pg. 31 InterChez provides solutions that deliver mea- Priority Solutions International offers domestic surable value to shippers with competitive global and international transportation; warehousing advantage through logistics excellence. and distribution; and reverse logistics solutions. www.interchez.com 330-923-5080 Anytime, anywhere, they’ll get it there. www.prioritysolutions.com 800-257-4777 ■ Landstar Global Logistics pg. 23 Aiming to win the supply chain game? Get pro- ■ Reviva Logistics pg. 27 fessional help. Call Landstar when you need safe, When Reviva runs your warehouse, your business reliable transportation, logistics, and warehous- moves forward. Call today to learn how you can ing services. gain effi ciencies when you partner with Reviva. www.landstargloballogistics.com 904-390-1078 www.revivalogistics.com 800-578-6009

108 Inbound Logistics • September 2008 Use our Resource Center and let the information you need fi nd you.

■ Robert Transport pg. 25 Career Development/Education Robert Transport offers capacity, coverage, and customization in meeting U.S. shippers’ complete ■ Institute of Logistical Management pg. 97 transportation and logistics requirements for Become a part of the oldest logistics distance Canadian markets. learning school in the world that has helped www.robert.ca 800-361-8281 more than 84,000 alumni navigate their careers in supply chain and logistics since 1923. The ■ Ruan pg. 7 Institute of Logistical Management offers dis- Ruan is driven to move you forward. With more tance learning in many areas of logistics and sup- than 75 years of experience, Ruan continues to ply chain management. think of new ways to help shippers maximize the www.logisticseducation.edu 609-747-1515 bottom line. www.ruan.com 866-RUAN-NOW ■ Lion Technology pg. 93 For more than a quarter century, Lion Technology ■ Ryder pg. 17 has been the leader in regulatory compliance Name your product, and Ryder will customize a training. Lion’s unique multimodal dangerous supply chain for it. Unmatched experience, fl ex- goods training brings your team up to speed. ibility, and expertise make Ryder the one to turn www.lion.com 888-546-6511 to all over the globe. For a specifi c www.ryder.com 888-88-RYDER Environmental Partnerships response, contact ■ Salem Logistics pg. 43 ■ SmartWay Transport pg. 8 these advertisers Seeking logistics technology that fi ts your spe- The EPA’s SmartWay Transport program helps directly. Please tell cifi c needs? Salem Logistics employs SCANEX shippers reduce emissions, while giving the aver- them you saw their ad in to give you a complete 360-degree view of your age truck a fuel savings of $2,000 per year. Inbound Logistics. logistics network. www.epa.gov/smartway 734-214-4767 www.salemlogistics.com 866-800-9129 Events For general ■ SinoNRS pg. 29 questions about National Retail Systems (NRS) has teamed up ■ CSCMP’s Annual Global Conference pg. 107 particular industry with Sinotrans, China’s largest integrated logis- At the Council for Supply Chain Management segments, use tics company, to offer a revolutionary solution for Professionals’ annual conference, Oct. 5-8, 2008, the card between seamless factory-to-store import delivery. It’s the in Denver, Colo., learn how to cut supply chain pages 8-9 and best of both worlds in one logistics partner. costs and improve profi t, connect with colleagues 104-105. www.sinonrs.com 877-345-4-NRS from all over the world, and discover new and innovative ideas that will keep your career and ■ Werner Enterprises pg. 19 your supply chain competitive. For faster service, go online: Werner Enterprises, a logistics provider backed www.cscmp.org 630-574-0985 by global connectivity, assets, experience, and inboundlogistics.com/rfp fi nancial stability, offers local logistics knowledge ■ TransComp & Intermodal Expo pg. 94 applied worldwide. Nov. 16-18, 2008, in Fort Lauderdale, Fla., www.werner.com 800-228-2240 NITL and IANA host educational sessions on intermodal strategies, freight security, and trans- ■ WSI — Warehouse Specialists Inc. pg. 32 portation fi nancing. For more than 40 years, WSI has helped shippers www.nitl.org 703-524-5011 succeed by consistently delivering on its com- www.intermodal.org 866-438-3976 mitment to Condition, Count, and Time – ensuring that products are delivered in an accurate, timely, Forklift Accessories and sound manner. pg. 91 www.wsinc.com 800-999-2545 ■ Datamax Tough enough to withstand forklift vibration, sim- Air Cargo ple enough to learn in minutes, and small enough to mount where you need it, the MP Compact4 ■ National Air Cargo pg. 28 Mobile printer is the world’s only printer designed Need to ship anything, anywhere, anytime? to be installed directly on a forklift. National Air Cargo delivers. www.datamaxcorp.com 800-816-9649 www.nationalaircargo.com 800-635-0022

September 2008 • Inbound Logistics 109 RESOURCE 09.08 CENTER INBOUND LOGISTICS WORKS FOR YOU!

Freight Payment Services Materials Handling ■ Cass Information Systems pg. 71 ■ Diamond Phoenix pg. 41 With the most industry experience in imple- From analysis to design to implementation and menting complex processing systems, Cass beyond, Diamond Phoenix Integrated Solutions Information Systems is the leader in customized help you achieve business goals that boost your freight bill audit, rating, payment, and informa- competitive edge. Highly productive facilities tion services. keep items moving through at faster rates, with www.cassinfo.com 314-506-5500 higher accuracy and lower costs. www.diamondphoenix.com 888-233-6796 ■ COGISTICS pg. 77 Does saving big money appeal to you? COGISTICS Real Estate Logistics/Site Selection can show you how to reduce your transportation and inventory carrying costs simultaneously. ■ Binswanger pg. 13 www.cogistics.com 863-647-9389 Binswanger delivers global real estate solutions, including its newest facility in Somerset, N.J. – an ■ CT Logistics pg. 73 outstanding 324,337-square-foot space on 27 CT Logistics believes there is always room for acres. improvement – a philosophy that has made the www.binswanger.com/somerset_nj 973-292-1203 For a specifi c company a leader in freight payment for more response, contact than 83 years. ■ Netherlands Foreign Investment Agency these advertisers Insert (32-33) www.ctlogistics.com 216-267-2000 (NFIA) directly. Please tell The NFIA facilitates North American companies’ them you saw their ad in ■ nVision Global pg. 75 direct investments in the Netherlands. Companies Inbound Logistics . All freight payment companies are not the same. can obtain information, strategic perspective, Let nVision Global show you a company that and practical assistance from NFIA’s business consultants. For general works for you. questions about www.nvisionglobal.com 770-474-4122 www.nfi a.com 212-246-1434 particular industry ■ PowerTrack pg. 69 ■ Hampton Roads Economic Development segments, use Get rid of paper invoices with PowerTrack Freight Alliance pg. 44 the card between Payments. The PowerTrack network collaborates Virginia’s Hampton Roads delivers a mid-Atlan- pages 8-9 and with customers around the globe to link physical tic location, the second-busiest port on the East pages 104-105. supply chain events and fi nancial data. Coast, and many ground and airfreight options. www.powertrackglobal.com 800-925-4324 www.hreda.com 757-627-2315 For faster service, ■ Technical Traffi c Consultants (TTC) pg. 70 go online: Trucking For 34 years, Technical Traffi c Consultants has inboundlogistics.com/rfp delivered the highest levels of service and quality. ■ CRST Van Expedited pg. 3 TTC is SAS 70-compliant, offering a full range of With more than 3,500 drivers ready to go, CRST data management services. Van Expedited will handle your critical loads. Its www.technicaltraffi c.com 845-770-3510 Capacity Solutions service offers supplemental capacity for peak periods. Lift Trucks www.crstlogistics.com 888-204-9607 ■ TCM Lift Trucks pg. 26 ■ Saia pg. 15 Regardless of capacity, TCM’s forklifts are reli- Most LTL carriers can guarantee on-time delivery. able, powerful, and productive. And its competi- But that doesn’t give you an edge. For no addi- tive pricing helps deliver maximum profi tability to tional charge, Saia’s Xtreme Guarantee gives you your bottom line. six guarantees in one. It covers what you care www.tcmforklifts.com 866-216-7840 about most, from the pick-up call through invoic- ing, delivering confi dence from start to fi nish. www.saiaxg.com 800-765-7242

110 Inbound Logistics • September 2008 Use our Resource Center and let the information you need fi nd you.

■ U.S. Xpress pg. 51 ■ Yellow pg. 47 From its award-winning dedicated contract car- You will out-think, outperform, and outshine riage to multimodal rail service, U.S. Xpress the competition when Yellow takes care of your is committed to meeting your transportation transportation needs. demands. www.myyellow.com 800-610-6500 www.usxpress.com 800-251-6291 Trucks ■ UTXL pg. 87 UTXL handles truckload and consolidated LTL ■ Dodge Cover 2 between any points in North America. Shippers The all-new 2008 Dodge RAM 5500 Chassis Cab nationwide rely on UTXL for reliable service and has the largest standard fuel tank and is 14 per- economical prices. cent more fuel effi cient than its competitors. www.utxl.com 800-351-2821 www.dodge.com/chassis_cab 800-4ADODGE

INDEX ADVERTISER PAGE ADVERTISER PAGE For a specifi c AFN 39 Netherlands Foreign Investment Agency (NFIA) Insert (32-33) response, contact Averitt Cover 4 these advertisers 49 Bilkays Express 53 NFI directly. Please tell Binswanger 13 nVision Global 75 them you saw their ad in BNSF Logistics 35 Odyssey Logistics & Technology 85 Inbound Logistics. Carlile Transportation Systems 18 Platinum Logistics 55 Cass Information Systems 71 PowerTrack 69 For general COGISTICS 77 Priority Distribution Inc. 50 Priority Solutions International 31 questions about CRST Van Expedited 3 particular industry CSCMP 107 Reviva Logistics 27 segments, use CT Logistics 73 Robert Transport 25 the card between Datamax 91 Ruan 7 pages 8-9 and Diamond Phoenix 41 Ryder 17 104-105. Dodge Cover 2 Saia 15 Salem Logistics 43 Hampton Roads Economic Development Alliance 44 For faster service, SinoNRS 29 Infotek Consulting 106 go online: Institute of Logistical Management 97 SmartWay Transport 8 inboundlogistics.com/rfp InterChez 83 TCM Lift Trucks 26 JobsInLogistics.com 106 Technical Traffi c Consultants 70 The Judge Group 106 TransComp & Intermodal Expo 94 Landstar Global Logistics 23 Transolutions 106 Lily Transportation Corp. 21 U.S. Xpress 51 Lion Technology 93 UTXL 87 Lynden 5, 11 WebFreightPro 106 MainFreight 106 Werner Enterprises 19 MyEZclaim.net 106 WSI – Warehouse Specialists Inc. 32 National Air Cargo 28 Yellow 47

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

September 2008 • Inbound Logistics 111 THE SUPPLY CHAIN IN BRIEF THELAST MILE

Wheeled Victory

ugust 2008 was a month carriers maneuvered nine types of fierce competition, of trucks – from straight trucks A the culmination of years to auto transporters – through of training and dedication to obstacle courses that tested achievement. We’re not talk- their abilities to judge distances, ing about the Summer Olympics maneuver in tight spaces, and in Beijing, even though that event guide vehicles with precision. received a bit more media coverage than 2008 Grand Cham pion honors went to the 71st annual National Truck Driving Dennis Shirar, a driver for Indianapolis- Championships (NTDC), held in Houston on based Heritage Transport LLC. Shirar, who August 19-23. For professional truck drivers, the also won the individual straight truck category, NTDC, known as the “Super Bowl of Safety” to insiders, has logged more than three million miles over the past was the preeminent contest of the dog days. 30 years – without accident or injury. Sponsored by the American Trucking Associations, The NTDC Grand Champion may not get his picture the competition tested 375 of the country’s best driv- on a Wheaties box, but Shirar and his fellow drivers ers on safety knowledge, equipment expertise, and can take pride in bringing professional excellence to driving skills. Representatives from all the major U.S. highways.

112 Inbound Logistics • September 2008 NXi\_flj`e^Nf\j6EfNfii`\j G`Zb`e^GifYc\dj6G`\Z\f]:Xb\ >f`e^>cfYXc6>fkZ_X:fm\i\[ :ifjjÆ[fZb`e^6:ifjj`kF]]PfliC`jk Cffb`e^=fiCKC6CffbEf=lik_\i Glk@eYfle[Cf^`jk`Zj kfNfibfePfli:_Xcc\e^\j

@eYfle[Cf^`jk`Zji\X[\ijk\ccljk_\pXi\i\nfib`e^k_\`icf^`jk`Zj e\knfibjkff]]j\ki`j`e^kiXejgfikXk`feZfjkj%8i\pfl6N\ZXe_\cg CXjkp\Xi#dfi\k_Xe,''ZfdgXe`\j]fle[nfic[ÆZcXjjjfclk`fej kfk_\`ijlggcpZ_X`eZ_Xcc\e^\jk_ifl^_@eYfle[Cf^`jk`Zj%8dfe^ k_fj\ZfdgXe`\j1 JdXik=lie`kli\ :_XdY\icX`e>iflg 9fi[\i=ff[j@eZ% 8g\o@ek\ieXk`feXc :\c\YiXk\

eYfle[Cf^`jk`Zj_XjXjj\dYc\[Xk\Xdf]\og\ikjn_fXi\feZXcckf_\cgjfcm\ @pflicf^`jk`Zj#kiXejgfikXk`fe#Xe[jlggcpZ_X`eZ_Xcc\e^\j%Fli\og\ikjn`cc \mXclXk\pfli`jjl\jXe[e\\[j#Xe[^`m\pfl]i\\#efÆfYc`^Xk`feX[m`Z\#jfclk`fej# Xe[`e]fidXk`fe% @kËjjf\Xjp%Aljkcf^fekfnnn%`eYfle[cf^`jk`Zj%Zfd&i]g%8ejn\iX]\nYi`\] hl\jk`fej#Xe[c\kk_\`e]fidXk`fepfle\\[Ôe[pfl% nnn%`eYfle[cf^`jk`Zj%Zfd&i]g Kf1 @eYfle[Cf^`jk`Zj JlYa\Zk1 Cf^`jk`Zj:_Xcc\e^\

DPCF>@JK@:J:?8CC<@J1:_fZfcXk\Xe[jeXZb]ff[ ZfdgXep`ej\XiZ_f]X*GCgXike\in`k_k_\]fccfn`e^ XY`c`k`\j1K\dg:fekifcYkne-'$-,[\^NXi\_flj`e^& ;fZb#G`ZbGXZb#I\$GXZb#GFGJ_`gg\i;`jgcXp GXZbflk#GXcc\k;`jgcXpGXZb`e^%CKC=KCCf^`jk`Zj K?<D8>8Q@E<=FI;@JK@:J i\cXk`fej_`g#=lcÔ ccd\ek#<;@:XgXYc\#:fdgc\k\@em\ekfip dXeX^\d\ek%=XZ`c`k`\j:\ekiXccpcfZXk\[ F_`ffi@cc`ef`j gi\]\ii\[ % IN AND OUT OF THE SOUTH SHORT FOR TEXAS TO TOKYO AND SHANGHAI TO SAVANNAH

Tennessee

Your best choice for moving freight In and Out of the South > THINK RED INSTEAD Simple supply chain solutions. Customs made easy. 1-800-AVERITT Sharp-dressed drivers. averittexpress.com

Doing business here? Visit averittexpress.com