www.inboundlogistics.com THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS • AUGUST 2007
PERISHABLES LOGISTICS:
ALSO: Managing Domestic Supplypp y Chains Forklift Buyer’s Guide Scott Watts Ross Garner Charles Septer Greg Logsdon Charlie Woodland Mohammed Khan Greg Baun Anchorage, AK Decatur, AL Mobile, AL Little Rock, AR Phoenix, AZ Tucson, AZ Irvine, CA
Gary Martin Brian Walton Tim Cohen Ray Paquette Ray Ramsey Karen Roderick Tim Sweeney Sacramento, CA Denver, CO Hartford, CT Hartford, CT Hartford, CT Hartford, CT Hartford, CT
Roland Bolduc AJ Phillips Randy O’Dell Luis Ramirez Gerald Keaton Travis Warner Cliff McConico Windsor Locks, CT Newark, DE Wilmington, DE Hollywood, FL Jacksonville, FL Boise, ID Kansas City, KS
Jeff Thompson Doug Adams Janet Hoard Brad Mertz John Willinger Todd Watson Xavier Theriot Kansas City, KS Hebron, KY Louisville, KY Louisville, KY Louisville, KY Baton Rouge, LA Shreveport, LA
Bill Anthony Dave Beaver Bill Pudney Larry Steffensen Paul Butkowski Steven McBride Robert Roth East Boston, MA Hagerstown, MD Minneapolis, MN Minneapolis, MN St. Cloud, MN Cape Girardeau, MO Columbia, MO
Randy Byrd Jason Matte John Smith Jim Butler Tom Miller Dean Eklund Scott Meyers Jackson, MS Jackson, MS Tupelo, MS Billings, MT Billings, MT Fargo, ND Fargo, ND Elmer Branzovsky Jimmy O’Neill Paul Robichaud Lester Beben Daniel Bruch Brooks Washburn John Bryant Omaha, NE Omaha, NE Londonderry, NH South Brunswick, NJ Albuquerque, NM Albuquerque, NM Las Vegas, NV
78 FedEx drivers. All in the driver’s seat. This year, a record 78 drivers from FedEx Express, FedEx Ground, FedEx Freight, FedEx Custom Critical and FedEx Global Supply Chain Services are going to the National Truck Driving Championships after winning fi rst-place honors in their states. To all the drivers who’ve shown superior driving skills, we
Randy Johnson just want to say congratulations. When it comes to “safety fi rst,” we’re glad you’re in the driver’s seat. Bob Workman Las Vegas, NV Las Vegas, NV
Craig Poupeney Gragg Wilson Jake Wallenbeck Scott Woodrome Jim Fisher Wade King Wade Wolfenkoehler Reno, NV Reno, NV Rochester, NY Dayton, OH Toledo, OH Oklahoma City, OK Oklahoma City, OK
Randy Reed Joe Peterson Ron Desorcy Tommy Winston Mike Whitehead Andy Bryant Ray Shelton Tulsa, OK Philadelphia, PA Providence, RI Greenville, SC Sioux Falls, SD Kingsport, TN Kingsport, TN
James Gelinas Hal Staley Scott Ambler Hector Novoa David Fountain Christopher Novak Thomas Whalen El Paso, TX El Paso, TX Salt Lake City, UT Chantilly, VA Williston, VT Williston, VT Williston, VT
Brent Glasenapp Scott Parks Guy Frederickson Chad Tanner Karen Tierney Gerald Pugh Milwaukee, WI Milwaukee, WI Oshkosh, WI Clarksburg, WV Morgantown, WV Parkersburg, WV THE MAGAZINE FOR DEMAND DRIVEN LOGISTICS
PERISHABLE GOODS August 2007 • Vol. 27 • No. 8 page 38
INPRACTICE
READER PROFILE Norbert Ore: The Creative Touch INSIGHT As group director, strategic sourcing and procurement for Georgia- Pacifi c, Norbert Ore knows the importance of creativity in sourcing. 6 CHECKING IN See how his strategy has paid off. The Minneapolis I-35 bridge collapse serves as another infrastructure wake-up call. But SUPPLY CHAIN TECHNOLOGY are government leaders hitting Complex Technology for Basic Concepts the snooze button? When basic business functions and advanced technology meet, 26 RISKS & REWARDS everybody wins. Is your ocean freight packaging “seaworthy?” LIT TOOLKIT Rock Around the Stock 28 VIEWPOINT Taking its cue from Quantum’s Q solution, Guitar Center’s forecasts and Transportation service providers need to become more agile to help inventory allocation now make beautiful music together. shippers meet their supply chain goals. 30 IT MATTERS Weatherproofi ng your supply chain with IT. INFO 58 WEB_CITE CITY 72 CALENDAR 74 CLASSIFIED 76 RESOURCE CENTER
2 Inbound Logistics • August 2007
THE MAGAZINE FOR DEMAND DRIVEN LOGISTICS
August 2007 • Vol. 27 • No. 8
DOMESTIC SUPPLY CHAINS page 32
INBRIEF INDEPTH 10 10 TIPS How to ensure loading dock Made in America: Managing Domestic Supply Chains security. Flying in the face of current trends, some forward-thinking consumer 16 TRENDS goods companies are going domestic. Keeping production, transportation, U.S. air freight/express companies and distribution in the United States allows them to profi t from their post revenue gains…New rules have proximity to customers. shippers seeing STARS…Hours-of- Service rules back in court. Temperature-Controlled Logistics: Provide or Perish Whether shipping fl owers, seafood, meats or any other perishable goods, transportation must be fresh, fast, and error-free. The experts share their cool secrets.
SPECIAL ADVERTISING SECTION 2007 Forklift Buyer’s Guide Looking to update your forklift fl eet? Rev up warehouse 23 GLOBAL LOGISTICS C-TPAT, European-style… productivity with any of the How global is global?...India lift trucks featured in this expresses its growth. special advertising section. 68 TECH UPDATE 70 NEW SERVICES 80 THE LAST MILE: RO/RO ROUNDUP
4 Inbound Logistics • August 2007
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Vol. 27, No.8 August 2007 THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS www.inboundlogistics.com
STAFF
PUBLISHER Keith G. Biondo by Keith Biondo | Publisher [email protected] EDITOR Felecia J. Stratton [email protected]
ASSISTANT MANAGING EDITOR Amy Roach Partridge Hitting the Infrastructure [email protected] EUROPEAN EDITOR Joseph O’Reilly Snooze Button EDITORIAL ASSISTANT Mark Rowan CONTRIBUTING EDITORS Merrill Douglas olks in our business didn’t need the Minneapolis I-35 bridge collapse to John Edwards Lisa Harrington serve as a wake-up call; we talk about maintaining infrastructure con- Amanda Loudin stantly. Just one morning before the collapse, I exchanged e-mails with Deborah Ruriani F Lisa Terry Doug Grane, president of Central States Trucking, who, in a recent guest edito- CREATIVE DIRECTOR Michael Murphy rial, wrote: “Most trucking company owners would agree that as long as taxes [email protected]
and fees continue to rise, earmarking those dollars specifi cally for infrastructure PRODUCTION/DESIGN ASSISTANT Shawn Kelloway improvements is critical to their future well-being. Unfortunately, transporta- [email protected] tion funds are too often diverted by politicians eager to support other initiatives PUBLICATION MANAGER Sonia Casiano and pet projects.” (Squeaky Wheel Gets the Political Oil, July 2007). [email protected] Grane recently testifi ed before Congress about how infrastructure relates to CIRCULATION DIRECTOR Carolyn Smolin our economic well-being. DOT estimates show the United States loses $168 SALES OFFICES
billion annually from highway congestion, and the nation’s trucking system NORTHEAST: Keith Biondo in 2004 lost 243,032,000 man hours due to traffi c delays. Grane and I agreed (212) 629-1560 • FAX: (212) 629-1565 [email protected] that certain state and local governments, such as Nebraska, understand the WEST/MIDWEST/SOUTHWEST: Harold L. Leddy economic and job creation impact of maintaining and expanding our trans- (847) 446-8764 • FAX: (847) 446-7985 port infrastructure. But many do not. [email protected] Later, at lunch, I had a spirited discussion with some Maersk executives about Marshall Leddy (763) 416-1980 • FAX: (763) 201-4010 the reasons government pays so little attention to transportation infrastructure. [email protected] The Maersk crew and I agreed that many federal, state, and local-level leaders MIDWEST/ECONOMIC DEVELOPMENT: Jim Armstrong seem to suffer from a special type of attention defi cit disorder – their focus is one (815) 334-9945 • FAX: (815) 334-1920 mile wide and one millimeter deep on the evening news’ topic du jour. [email protected] The next day, we all watched the news coverage of the bridge collapse. SOUTHEAST: Gordon H. Harper (404) 350-0057 • FAX: (404) 355-2036 Reports focused fi rst on the personal tragedies, but soon shifted to asking, [email protected]
“why did it happen?” and “what do we do now?” The cause of the collapse MOBILE, AL: Peter Muller may have been design-related, neglect-related, or a little of both. But the ques- (251) 343-9308 • FAX: (251) 343-9308 [email protected] tion of what to do next is limited to putting rebuilding on the fast track, and SPECIAL ACCOUNTS: Joseph T. Murphy Jr. trying to diagram alternative routes. (Go to www.inboundlogistics.com/35bridge (203) 254-9595 • FAX: (203) 259-4447 for an aerial view of I-35, showing workarounds are limited.) [email protected] This latest wake-up call has focused attention on the infrastructure issue. SALES MANAGER: Rachael Sprinz (212) 629-1560 • FAX: (212) 629-1565 “U.S. Transportation Secretary Mary Peters and several governors ordered safety [email protected] reviews for thousands of bridges, especially those similar to the steel-deck FREE SUBSCRIPTIONS truss span that collapsed in Minneapolis,” reported USA Today. “New Jersey www.inboundlogistics.com/free Governor Jon Corzine went further, promising evaluations of all 6,400 local, state, and federal bridges in his state, regardless of owner.” Inbound Logistics welcomes comments and submissions. Contact us at 5 Penn Plaza, NY, NY 10001, (212) 629-1560, Some politicians are apparent converts to the transport infrastructure issue. But Fax (212) 629-1565, e-mail: [email protected]. why did we have to pay a price as high as the I-35 bridge failure to attract their atten- For advertising, reprint, or subscription information, call (212) 629-1560, or e-mail [email protected]. Inbound tion? I can’t help but wonder if our leaders will treat this wake-up call the same way Logistics is distributed without cost to those qualifi ed in North America. Interested readers must complete and return the they treated past reminders. Will they hit the snooze button, resume their infra- qualifi cation card published in this issue, or may subscribe structure somnambulism, and wake only when the next alarm sounds? online at www.inboundlogistics.com/free. Subscription price to others: in North America: $95 per year. Foreign subscriptions: You can take action. Continually remind your representatives and local media $129. Single copy price: No. Amer. $10, foreign $12, back issues of the importance of infrastructure. Make sure no one dozes off again. ■ $15. Periodicals postage paid at New York, NY, and additional mailing offi ces.
6 Inbound Logistics • August 2007 www.crstlogistics.com READER PROFILE by Merrill Douglas
The Creative Touch
hen Norbert Ore looks back the enterprise, yielded $100 million in at his career, he recalls with supply chain savings. W special satisfaction a phase Reporting to GP’s chief procure- that started in 2001, when a job switch ment offi cer, Ore wears three hats: he’s took him from Chesapeake Corp. to in charge of procurement for the com- Georgia-Pacifi c (GP) LLC, Atlanta. His pany’s chemicals unit, for procurement new position, the one he still holds of chemicals across the whole company, today, was group director, strategic sourcing and procurement. Even for a supply chain veteran like The Big Questions Ore, Georgia-Pacifi c, a major producer What do you do when you’re IRON ORE of consumer and forest products, was not at work? a new world. Because its spend is 10 I have played tennis competitively NAME: Norbert Ore times as large as Chesapeake’s, GP has for 35 years; it’s very relaxing. I’ve TITLE: Group director of strategic a much easier time getting price con- always had an interest in photography, and I love to serve as the unpaid sourcing since 2001 cessions from vendors. That can make a procurement exec- photographer at family events. I’ve COMPANY: been active for many years in the Georgia-Pacifi c LLC, Atlanta utive lazy. “There’s a temptation to rely Institute for Supply Management PREVIOUS Contract administrator, U.S. Air just on leverage,” Ore says. EXPERIENCE: (ISM). And, as part of my work as Force; purchasing manager, But in his many years working for chair of ISM’s Manufacturing Business J.A. Jones Construction Co.; companies that were not large buyers, Survey Committee, I recently helped purchasing manager, director Ore learned the importance of creativ- the People’s Republic of China develop of purchasing, Sonoco Products ity in sourcing. To gain better prices, a business survey to measure the Co.; director of corporate buyers develop solid, long-term rela- growth of its economy. procurement, vice president tionships, and look for ways to help Ideal dinner companion? of purchasing and strategic suppliers get more effi cient at what they Thomas Jefferson. alliances, Chesapeake Corp. do. Or else, “you try to get concessions What’s in your briefcase? EDUCATION: BBA, Marshall University; with regard to product development,” Pens, Blackberry charger, required graduate of Air Force he says. “You’re more focused on try- and elective reading materials, a Procurement School; MA, ing to help the supplier create value.” Sudoku book, and a camera. organizational management, At GP, Ore takes a blended approach. First Web site you look University of Phoenix “The true challenge is not to rely on at in the morning? RECENT Winner of the 2007 J. Shipman leverage, but to use both leverage and Yahoo! Finance. I scan today’s HONOR: Gold Medal Award from the creativity together,” he says. “That gives headlines and the results of Institute of Supply Management you the strongest of all combinations.” yesterday’s fi nancial news. His strategy has paid off. Ore’s fi rst Business motto? project at GP, helping to integrate He never failed to ask! recently acquired Fort James Corp. into
8 Inbound Logistics • August 2007 and for GP’s Procurement Excellence Ore says. If demand spikes in one cor- “I am surrounded by bright and capa- activities. ner of the globe, companies elsewhere ble people who are on the front of the Like any fi rm with a global supply might suddenly face shortages. knowledge curve in supply chain activ- chain, GP must stay nimble to meet Luckily, Ore says, buyers now can ities,” Ore explains. “During my career, the challenge of a world economy use the Internet to help keep up with I have solved many of the problems that’s always in flux. Although com- rapid changes in the marketplace. “A they face. My challenge is to avoid giv- panies can buy materials and services buyer can fi nd a tremendous amount ing them the answers.” from multiple sources around the globe, of information in a short time,” he says. Instead, Ore solicits input from team U.S. companies compete with emerg- That gives buyers the kinds of advan- members, asks questions to stretch ing markets in Asia, Europe, the Middle tages that sellers have had all along. their thinking, and encourages them East, and Latin America. Along with the challenges posed by to develop their own solutions – even “Whether we’re buying from China, the global economy, Ore also deals with if they’re not the same solutions he Europe, or another country, we need a challenge much closer to home: giv- would have reached on his own. to be well aware of the supply-demand ing suffi cient autonomy to his diverse “When they make a decision,” he balance in those markets, because it team at GP. Or, as he calls it, “keeping says, “they’re much more committed can have a large effect on our business,” my mouth shut.” to it than when it’s my decision.” ■
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by Deborah Catalano Ruriani
Securing Your Loading Dock
ecuring your warehouse starts Safety Administration. These agen- lock-down security systems that keep at the loading dock. A secure cies’ guidelines and programs impact manual sectional doors secure. S loading dock protects your the supply chain, and drive the need warehouse, and expedites the fl ow of to tighten up areas of materials han- Keep doors closed, employees incoming and outgoing trailers. Walt dling – including the MTZ – that are 5 comfortable. Keeping dock doors Swietlik, customer relations manager susceptible to security threats. open on hot days is not always for Rite-Hite Products Corporation, a sound practice. Yet keeping doors Milwaukee, Wis., offers these tips to Conduct a security audit. Examine closed creates an uncomfortable and help button up your loading dock. 3 points of entry to see how easy – or unproductive environment during diffi cult – it is to gain access to your hot summer months. To remedy the Realize the loading dock is more facility via the loading dock. Remember, situation, retrofi t doors with stainless 1 than a dock. The loading dock is an you can easily connect overhead doors steel ventilation panels that are strong entry point into a facility. Many deci- and vehicle restraints to your facility’s enough to provide security, but at the sion-makers also view it as a Material security system. An alarm will sound same time allow outside air and light Transfer Zone (MTZ) and a critical part when a door is breached or a trailer is into the plant. Another idea is to better of the supply chain. The MTZ is where released without authorization. Security circulate air using technically advanced critical exchanges of raw materials and systems manufacturers offer plenty of High-Volume/Low-Speed (HV/LS) finished goods take place. It reaches information – and many provide free industrial fans. from a company’s drive approach well dock inspections. into the shipping/receiving/staging Lock landing gear. Often, a truck area, where raw materials and products Secure dock doors. Standard lock- 6 driver pulls a trailer up against an are exposed to terrorist acts and theft. 4 ing mechanisms on most manually open dock door, sets the trailer on operated, exterior overhead dock its landing gear, and drives away. Doing Get familiar with government doors can be easily broken, allowing so creates a security risk at an unat- 2 initiatives. Pay close attention to unauthorized entry into the plant. tended dock because the nose of the federal government initiatives Conventional slide locks also wear trailer can be raised or lowered to create from agencies such as the Department over time, and become ineffective if a space between the trailer and the open of Homeland Security; Food and Drug not repaired or replaced. Additionally, door. To avoid this unwanted access Administration; U.S. Department of these same locks are often improperly point, equip the trailer landing gear Agriculture’s Food Safety and Inspection used and security problems can result. with dependable locks that prevent the Service; and the Federal Motor Carrier Think about installing automatic trailer from being raised or lowered.
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Store Replenishment • Store to Store • Store to Home • Vendor Consolidation • Vendor to Store • Residential Pool Distribution 10TIPS ‹ CONTINUED FROM PAGE 10
Protect trailer contents during Protect the trailer. Use vehicle energy loss when a truck backs up 7 unloading. Use vertical storing 8 restraints to guard against trailer against a dock. Technically advanced hydraulic dock levelers to protect theft. Vehicle restraints, also seals also provide protection against against product tampering during the referred to as trailer restraints, latch the potential for dock fi res. It’s impor- unloading process. The levelers store in onto trailers to keep them from sepa- tant, however, that the specifi ed seals a vertical or upright position inside the rating from the dock during loading/ and shelters also provide the maximum facility behind the dock door. unloading. Some also provide a smooth level of security required. As such, a semi-trailer can back transition between the trailer and against the facility with the doors of the warehouse fl oor. Yet the safety devices Ensure proper sequencing. trailer closed to form a “seal” around also prevent trailer hijacking – espe- 10 Many dock systems use elec- the back of the trailer. Employees can cially because they can be connected tronic controls to operate various then open the dock door and sub- to building alarm systems. When con- dock components, including the dock sequently open the trailer doors to nected, the facility’s alarm system leveler, vehicle restraint, dock door, gain access to trailer contents. The sounds when a trailer is released with- and dock shelter. For security purposes, truck driver doesn’t need to stop 80 out authorization. it’s important to ensure the system is feet away from the dock, open the de signed to properly sequence inter- trailer doors, then back the rig up to Choose the right seal and shel- locked and interconnected components. the dock for unloading. Instead, the 9 ter enclosure. The primary role of A mishap in sequencing could lead to a semi-trailer doors remain closed until dock seal and shelter enclosures is damaged component, and, in turn, cre- a secure unloading environment is to protect the inside of a facility from ate a gap that serves as an unwanted established. the outside elements and guard against entry point into a facility. ■
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FORD COMMERCIAL TRUCK commtruck.ford.com TRENDS NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS by Amy Roach Partridge
Year in Review: U.S. Air Freight/Express Industry
espite stagnant traffic growth, the U.S. domestic air surcharge impacts,” he adds. Dfreight and express industry continues to register gains Traffi c volume for the industry totaled 15.21 billion ton- in revenue, shows U.S. Domestic Air Freight and Express Industry miles, up only 0.5 percent year-over-year from 2005, while Performance Analysis 2007, an annual report from Seattle- the number of domestic shipments moving through the based aviation consulting fi rm Air Cargo Management Group major express networks – 6.7 million per day – decreased 1.3 (ACMG). “U.S. domestic air freight and express industry rev- percent versus 2005, the report fi nds. enues reached $32.49 billion in 2006, a 3.8-percent increase Many of the changes that have taken place recently in over 2005 and a new record for the industry,” reports Robert the domestic market can be traced to consolidation in the Dahl, ACMG project director. express area, according to ACMG. Airborne Express, for “Gains in 2006, split about equally between the express example, was acquired by DHL in 2003; UPS snatched up and non-express segments of the industry, resulted from Menlo Worldwide Forwarding in 2004; and BAX Global rate increases implemented by express carriers and from fuel became part of Deutsche Bahn/Schenker in 2005. Last year, however, was void of major acquisition deals in this sector. U.S. Domestic Air Freight/Express Companies “No major developments of this type took place in 2006,” Post Revenue Gains in 2006 Dahl notes, “but in the fi rst half of 2007, DHL announced it is buying a stake in ASTAR Air Cargo, and ASTAR is attempt- As a group, integrated express companies generated nearly 90 percent of the industry’s total revenue in 2006. ing to acquire ABX Air. It remains to be seen how these Revenue % of Industry’s moves, if consummated, will impact the industry.” ($ millions) Total Revenue One element of the industry that has not been impacted is FedEx (FY07 including USPS) $13,770 42.4% FedEx’s position as the leader in the express market – in 2006, UPS $10,702 32.9% FedEx retained a 42.2-percent share of daily shipments. UPS came in a close second, with 37.5 percent of shipments, while DHL $2,950 9.1% DHL, which does not provide shipment count reports, is esti- $918 2.8% EXPRESS USPS Express Mail mated to hold a 16.3-percent share. BAX Global $750 2.3% The integrated express companies as a group generated Express Subtotal $29,090 89.5% $29.09 billion, or 89.5 percent, of the industry’s total revenue in 2006. Domestic freight handled by combination carriers Combination Carrier Freight $1,248 3.8% and freight forwarders amounted to $3 billion – 9.2 percent of the total revenue amount – and domestic mail (exclusive All-Cargo Carrier Freight $852 2.6% of the major USPS-FedEx contract) represented $399 million,
FREIGHT Freight Forwarders $900 2.8% a mere 1.3 percent of the total. Freight Subtotal $3,000 9.2% Partial-year results for 2007 indicate that this year is fol- lowing the same pattern as 2005 and 2006, with positive Combination Carrier Mail $317 1.0% fi nancial results despite fl at traffi c levels. “High fuel prices, and the surcharges that result, continue to inhibit air cargo MAIL All-Cargo Carrier Mail $83 0.3% growth, and encourage shippers to look at less-expensive Mail Subtotal $399 1.3% transportation alternatives now available in the form of expedited trucking services,” notes Dahl. The U.S. market, GRAND TOTAL $32,489 100.0% however, remains the largest single air freight/express mar- SOURCE: Air Cargo Management Group, U.S. Domestic Air Freight and Express Industry Performance Analysis 2007 ket in the world.
16 Inbound Logistics • August 2007 New Rules May Have Shippers Seeing STARS
n Aug. 1, 2007, a sweeping national defi nition of what is considered hazard- are shippers supposed to review truck Osecurity bill was cleared by a ous material,” says Tom Walker, director security? There are no specifi cs and no Senate-House conference committee of chemical markets and compliance at thresholds,” Walker explains. and sent to the White House for the LTL carrier A. Duie Pyle, West Chester, Another concern for both carriers President’s signature. The bill, H.R. 1, Pa. The bill makes several references and shippers are the costs – such as combines several pieces of legislation, to “fl ammable,” but vanilla extract, for those from record-keeping or additional including the Surface Transportation and Rail Security Act (STARS). When it becomes law, moving hazardous mate- Few object to the intent of the program, but carriers rials via highway and rail will be more complicated and expensive. warn that compliance will be laborious The new rules require carriers to and expensive, and that those costs will be passed define the routes hazmat shipments would take, track those shipments more back to shippers. closely, and work with shippers and all levels of government to develop secu- example, is a fl ammable commodity, equipment and electronics – associ- rity and emergency response plans. Walker points out. ated with the bill’s new compliance Few object to the intent of the The bill also includes provisions requirements. program, but carriers warn that com- for the Federal Motor Carrier Safety “The LTL sector has not invested as pliance will be laborious and expensive, Administration (FMCSA) to review the heavily in tracking equipment and and that those costs will be passed back hazmat plans of every shipper and car- software as bulk carriers. Security may to shippers. Another criticism is that rier, but does not say what FMCSA is be better served with a uniform route the bill’s terms regarding what com- supposed to be looking for. structure and complete dashboard to modities it covers are too vague. “This is a well-intended bill, but the desktop tracking, but it will be restric- “The bill does not contain a clear devil is in the details. On what criteria tive and expensive,” notes Walker. Part I of the STARS bill covers rail- roads. Rail carriers handling “high SOUNDBITE hazardous” materials will have to develop risk mitigation plans includ- This rail security pact takes a great step toward providing “ ing alternative routing and temporary greater protection to the citizens of the bi-state region. CSXT shipment suspension options. Railroads deserves credit for stepping up and serving as a model for a would have to use those options when collaborative public-private security initiative. We hope it is security levels are high or severe, or one that other private sector companies will emulate. when specifi c threats are detected. ” Part II addresses highway haulers. — JON S. CORZINE, New Jersey Governor, discussing a new rail security Under the bill, the U.S. Department of partnership between New York, New Jersey, and intermodal transportation Transportation (DOT) will be respon- company CSXT that allows local law enforcement offi cials to track CSXT sible for documenting existing and trains and the contents of its rail cars in a nearly real-time environment. proposed routes for radioactive and non-radioactive hazardous materials,
August 2007 • Inbound Logistics 17 TRENDS NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS ‹ CONTINUED FROM PAGE 17
and developing a framework for using a to examine potential routes to assess Geographic Information System-based security risks and explore alternatives. approach to characterize routes in the In addition, it will be required to THE CHAIN National Hazardous Materials Route assess the safety and national secu- PEOPLE ON THE MOVE Registry. The agency would need to con- rity benefi ts of existing requirements UP sider the concerns of the public; motor for route plans for explosives and radio- Specialty chemicals fi rm The E.T. Horn carriers; and state, local, territorial, and active materials. DOT also will require Company, LaMirada, Calif., has promoted tribal governments about the highway motor carriers hauling hazardous mate- Bob Ahn to vice president of its coatings routing of hazardous materials. rials to maintain written or electronic and building materials group. Ahn is Under STARS, DOT will also have to route plans. tasked with bolstering the company’s develop a tool that allows state offi cials — Gregory DL Morris diversifi cation efforts and strengthening relationships with partner suppliers. Since joining E.T. Horn in 1996, Ahn has helped Hours-of-Service Rules Back in Court the company engineer unique supply early two years after the Federal Motor Carrier Safety Administration (FMCSA) chain/distributor affiliations between Nissued the controversial hours-of-service (HOS) regulations, two key provi- key principals and customers. ■ Dean sions were voided by the U.S. Court of Appeals of the D.C. Circuit. In July, the Arneson has been named vice president, court agreed to overturn the 11-hour limit on driver time per day, reverting truck operations, at Behr America, a Troy, Mich.- drivers’ maximum allowable driving time to 10 hours. In addition, it ruled that based manufacturer of original equipment the 34-hour restart should be abandoned. for passenger and commercial vehicles. In According to the three-judge panel, the FMCSA “failed to give interested parties his new position, Arneson is responsible an opportunity to comment on the methodology of the crash-risk model the agency for all manufacturing locations, corporate used to justify an increase in the maximum number logistics, and corporate facilities manage- of daily and weekly hours that truck drivers may ment, as well as the implementation of drive and work.” The court’s rationale in reject- the Behr production system. ■ Healthy ing these provisions was similar to a dismissal beverage chain Jamba Juice has named of an earlier version of the HOS regulations Greg Schwartz to the newly created position of vice president, supply chain in 2004. management. Schwartz’s chief role is to In addition, the same court denied help the fast-growing, Emeryville, Calif.- a petition filed by the Owner-Operator based company develop and execute a Independent Drivers Association asking global supply chain strategy. He most that a split sleeper provision be eliminated recently served as vice president, global or altered because it was infl exible and procurement for Wal-Mart. ■ VHA Inc., would lead to reduced driver safety. a national health care alliance based in The FMCSA now has 45 days to Irving, Texas, has hired Jeff McLaren as petition for reconsideration. This is senior vice president for national supply the second ruling taken by the courts chain services. As part of the company’s against the FMCSA since it initially effort to implement logistics management tried to rewrite the HOS rules back and analytics tools that help members in 2003. reduce supply chain costs, McLaren is responsible for developing and guiding the VHA fi eld team members on supply chain improvement. ■ Marcie Peters has been appointed vice president, supply chain for Houston-based international chemical and pharmaceutical company Solvay Chemicals. Peters, who joined Solvay in 1995 as a marketing analyst, now heads the company’s logistics and customer service efforts. She most recently held the position of business director, soda ash for Solvay.
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SUPPLY CHAIN, WAREHOUSING & TRANSPORTATION SOLUTIONS
Amy Roach Partridge is assistant managing editor of Inbound Logistics. E-mail her at [email protected] SUPPLY CHAIN TECHNOLOGY by Amy Roach Partridge
Complex Technology Optimizes Basic Concepts
s supply chains continue to increase auctions, and lead-time reduction possi- in scope and complexity, the tech- bilities,” says one respondent to the study, A nology powering those supply Working Capital Optimization, which sur- chains likewise becomes more complex, veyed 400 companies. specific, and compartmentalized. Some companies, however, are realizing that in PHYSICAL MEETS FINANCIAL the quest for ultimate technology sophisti- Though supply chain activities have a cation, they may be overlooking some very huge impact on working capital, supply basic business concepts. chain and fi nance matters have tradition- Take working capital, for instance. A busi- ally been managed separately, a philosophy ness can boast cutting-edge technologies, that is detrimental to maximizing cash fl ow. When basic an amazing product, and state-of-the-art This has begun to change. distribution capabilities, but if its working “An evolution is occurring in terms of business functions capital is not in order, it is unlikely to suc- companies wanting to merge their physi- and advanced ceed for long. cal supply chain and their fi nancial supply This may sound like Business 101, but chain to boost working capital optimization. technology meet, as a recent Aberdeen Group report shows, This idea is not mainstream yet, but best-in- many companies using advanced technol- class companies are focused on bridging a everybody wins. ogy go back to basics and determine how collaborative approach between the two,” to optimize working capital. Indeed, two- says Nari Viswanathan, Aberdeen’s research thirds of survey participants place a “high director, supply chain management, and priority” on working capital optimization. co-author of the report. “The shortage of working capital to sup- Why this current focus on such a seem- port our business expansion is the main ingly basic business idea? Many factors are reason our company has increased its focus spurring this emphasis on supply chain on working capital. We are evaluating dif- fi nance: pressure from fi nancial executives ferent ways of reducing net working capital to improve key working capital metrics including inventory optimization, reverse (cited by 66 percent of respondents); a need
20 Inbound Logistics • August 2007 to meet customer service requirements tory optimization solutions that offer every company can convince its CFO through better inventory management the ability to calculate safety stock to invest in supply chain technologies (30 percent); and the sense that current inventory to ensure companies have aimed at improving working capital, inventory management strategies are the right amount of inventory at the companies can take baby steps toward too risky (29 percent). right place. Adopting these types of that goal. And technology is not always Not surprisingly, companies doing capabilities is often a fi rst step on the the holy grail, Viswanathan admits. the best job managing working capital road to working capital optimization. “Working capital optimization is are more likely to be using inventory Traditional advanced planning process-focused. Because so many optimization and collaboration, supply and scheduling tools – offered by ven- touchpoints exist in the supply chain, chain visibility, and cash management dors including Logility, Manhattan companies need a cross-functional tools, the report shows. Many compa- Associates, and JDA – are also a good approach and they need to prepare nies, however, are still struggling to choice. These solutions are not strictly to handle change management chal- adapt to current technology systems. multi-echelon, but they also offer good lenges,” he says. Most enterprise resource plan- capabilities for computing safety stocks, ning tools, for instance, don’t offer explains Viswanathan. THREE AREAS TO WATCH the advanced capabilities necessary Supply chain analytics tools are also Companies seeking to use tech- to manage multiple levels in the sup- useful for combating working capital nology to improve working capital ply chain so companies can perform ineffi ciencies. Survey respondent Akzo should carefully examine and incre- inventory optimization with an eye Nobel, for example, uses a customized mentally improve upon three areas, toward maximizing cash fl ow. reporting tool from technology firm Viswanathan advises: Supply Chain Consultants, Wilmington, ■ Inventory optimization: Best BEYOND TRADITIONAL SOLUTIONS Del., to help it identify obsolete or aged practices include using inventory opti- “Traditional solutions do not offer inventory. The chemical company then mization tools, inventory visibility and a good way of representing a compa- makes an effort to move this inventory collaboration technology, and multi- ny’s working capital. Companies need off the balance sheet by either selling echelon inventory optimization. technologies that can show imports in or remanufacturing the goods so they ■ Supply chain fi nance: Third-party terms of volumes or cash flow,” says again hold market value. Using this inventory fi nancing, working capital/ Viswanathan. approach, the company has improved cash management tools, supply chain For many, the solution is a bolt-on working capital fl ow substantially. network design tools, and platform approach, adding niche technologies Strategies such as Akzo Nobel’s are upgrades are all helpful. that help them better view inventory usually the result of a cross-functional ■ Cross-functional metrics and man- levels and strategically determine how team working together, analyzing how agement: Take a cue from best-in-class much inventory to hold, for how long, best to optimize working capital. And, companies, and measure and manage and where in the supply chain it should as with all technology projects, getting working capital via a cross-functional sit. Merely reducing inventory to take buy-in from the fi nance side is key. approach. cost off the balance sheet is not suffi cient, “One common characteristic among “It won’t catch on overnight, but says Viswanathan, because that can neg- companies that have been successful working capital optimization is the next atively impact customer service levels. implementing these types of technol- step toward creating a more holistic pic- Technology providers such as ogies is that the CFO is well engaged in ture of how to optimize cash fl ow and SmartOps, Optiant, i2, and Logic Tools the project,” Viswanathan adds. bring the disparate parts of the supply have developed multi-echelon inven- While it is not realistic to assume that chain together,” says Viswanathan. ■
August 2007 • Inbound Logistics 21 Zfe$kifc efle
(%Gi\m\ek`fef]k_\Õfli`j_`e^fijgi\X[f]jfd\k_`e^le[\j`iXYc\%)%DXeX^`e^k_\ cf^`jk`Zjf]kn\ekp$\`^_ki\]i`^\iXk\[j_`gg`e^ZfekX`e\ijf]j\\[c\jj^iXg\jn_\e`k nXjgXZb\[Xk]Xidj`e:_`c\#kiXm\c\[k_ifl^_k_\GXeXdX:XeXc#Xii`m\[XkE\nXib# Zc\Xi\[YpZljkfdj#]ld`^Xk\[f]]$j`k\#kiXej]\ii\[`ekfpfliZfc[jkfiX^\Z\ek\ij `ek_\Efik_\Xjk#Xe[[\c`m\i\[kfjkfi\jn_`c\dX`ekX`e`e^k_\k\dg\iXkli\Y\kn\\e **$*0=Çk_\fgk`dXck\dg\iXkli\]fi\ejli`e^dXo`dldj_\c]$c`]\]fi^iXg\j% >`iXc[X=Xidj *%:ljkfd\ij\eafp`e^]i\j_j\\[c\jj^iXg\j`eAXelXip% DX[`jfe#EA'.0+' N\\ejli\dXo`dldZfekifcfm\ipfliZfc[Z_X`eYpZXi\]lccpdfe`kfi`e^k_\ G10.*%,(+%,(/. k\dg\iXkli\f]ZfekX`e\ij#Zc\Xi`e^pfliZXi^fn`k_Zljkfdjgi`fikf`kjXii`mXc# =10.*%*..%.)(- dXeX^`e^]ld`^Xk`feXe[fk_\igifZ\[li\j#n_`c\gifm`[`e^k_\Y\jkZfc[jkfiX^\Xe[ [`jki`Ylk`fen_\i\pfle\\[`k%>`m\ljXZXccXe[Ôe[flk_fnk_\dfjkZfdgi\_\ej`m\ dX\ijbc`e\%Zfd j\im`Z\gifm`[\i`ek_\i\]i`^\iXk\[cf^`jk`Zj`e[ljkipb\\gjpfliZfc[Z_X`e`ekXZk% dX\ijbcf^`jk`Zj%Zfd GLOBAL LOGISTICS by Amy Roach Partridge
C-TPAT, European-Style s the United States did by launching the Customs-Trade Partnership Against which requires compliance with fi nan- ATerrorism (C-TPAT) in 2001, Europe is combating supply chain security cial and customs regulations; Security issues with a similar program. European companies can now apply to receive an and Safety, which expects companies Authorized Economic Operator (AEO) certifi cate from the EU Commission, signi- to comply with facility and cargo trans- fying that they and their supply chain partners operate in a customs-controlled, portation security requirements; and fi nancially responsible, physically secure manner. “Full” AEO, which combines elements Going live in January 2008, the AEO assessment and authorization initiative of both. Companies seeking AEO cer- extends customs authorizations to the fi nancial and security areas of corporate tification must demonstrate, among global supply chains, explains Dave Merritt, vice president, JPMorgan Global other things, a record of compliance Trade Services EMEA. with customs requirements, proven Traders can currently seek three types of certifi cation: Customs Simplifi cation, financial solvency, and appropriate security and safety standards. As with C-TPAT, European traders tend to believe that the costs of imple- menting AEO will be greater than the fi nancial benefi ts, reports Merritt. “But the prospect of being viewed as a ‘preferred trader,’ reducing customs delays, and gaining the ability to work confi dently with other AEO-certifi ed partners will undoubtedly appeal to the trading community,” he says, not- ing that a large number of companies are already formalizing assessment and application plans. “Assuming the discussions regard- ing the alignment of AEO and C-TPAT result in cooperation, companies con- ducting a signifi cant amount of U.S./EU trade volume will have an additional incentive to join AEO,” Merritt adds.
August 2007 • Inbound Logistics 23 GLOBALLOGISTICS
>CF98C How Global is Global? Shanghai Surprise: As part of its re global supply chains as global and the need to adapt to new source quest to become an important Asian shipping hub, Shanghai is pushing the Aas they appear? More than half are points, fi nds the study, which surveyed logistics industry to be one of its key not, according to a recent study con- supply chain professionals from the economic sectors. It plans to develop ducted by BDP International’s Centrix chemical, consumer goods, industrial, port transfer, manufacturing, inter- consulting unit and St. Joseph’s and retail industries. national transfer, purchasing, distri- University in Philadelphia. The study also examines the top chal- bution, and third-party logistics Of the 220 supply chain executives lenges global supply chain executives capabilities, according to the city’s surveyed, 60 percent of those from face. Sixty-four percent of respondents latest fi ve-year plan. Shanghai is also multi-national companies say they report on-time delivery is their biggest building logistics zones including the do not actually operate their supply concern, while total landed cost and Yangshan Deep-Water Logistic zone, chains on a global level. In addition, supply chain costs tied as the second- Waigaoqiao Bonded Logistics Park, Pudong Airport Logistics Park, 37 percent of respondents make supply greatest challenge at 39 percent. and Shanghai Northwest Logistics chain procurement decisions regionally, How are the companies addressing Park. ● Smoother Sailing in while 23 percent determine procure- these challenges? Most say they have Panama: The Panama Canal’s ment strategies on a domestic basis. increased inventory and embraced recently approved 2008 budget When it comes to global transpor- multiple-country sourcing to protect includes funding for ongoing invest- tation management, the landscape against global supply chain risks, the ments in technology, new equipment, is similar. Asked how they manage survey shows. and capital improvements. Projects their supply chain transportation net- Technology also plays a role in over- include widening the Gaillard Cut, works, only 35 percent of respondents coming global supply chain obstacles. deepening the navigational channel answered “globally,” while 49 percent In the past two years, nearly half – 42 in Gatun Lake, and constructing a new manage their networks from a regional percent – of respondents implemented a set of locks, which will double capac- ity and allow more traffi c and wider perspective. warehouse management system. Most ships. ● Hong Kong Lends These global companies list various participants list increased productivity, Helping Hand: Hong Kong is the reasons for managing supply chain improved service, and decreased lead- latest country to cooperate with the operations on a regional or local level, time as their reasons for selecting the U.S. Secure Freight Initiative, a pro- such as faster decision-making for technology. gram that uses radiation detection improved control of service and costs, — Mark Rowan and imaging equipment to scan mari- time cargo containers destined for the United States. The U.S.-Hong A Dallas-Mexico Connection Kong pilot encompasses U.S.-bound ith the aim of improving the flow of goods between Mexico and the containers leaving Hong Kong through the in-gate of a desig nated WUnited States, a Mexican inland port developer and U.S. real estate devel- terminal in Kwai Chung, and opment fi rm have partnered to promote a new trade corridor. The agreement will be scanned on a voluntary links Interpuerto, a Monterrey-Saltillo, Mexico-based logistics hub, and the Dallas basis. ● Romania’s Growth Logistics Hub, a 6,000-acre logistics park currently being developed by San Diego- Spurt: Strong GDP growth and based The Allen Group. increasing demand for high-quality The connection of the two hubs is part of a larger movement to improve cross- industrial warehouse and logistics border trade by expanding infrastructure to boost supply chain effi ciency. The facilities across Romania have peaked partners expect the new corridor to improve effi ciency, speed, and security, as well logistics developers’ interests. GE as the ability for the two hubs to compete on an international level. Previously, Real Estate Central & Eastern Europe ineffective transportation between the two countries prevented the hubs from and Helios Phoenix are developing serving companies importing products from around the world. seven Class-A logistics and distribu- tion warehouses — totalling 315,000 By adding a customs pre-clearance zone, imports can be cleared before leaving square meters — in key Romanian cit- the port of origin, which should expedite shipment fl ow and provide additional ies such as Bucharest, Timisoara, security for companies operating within the two hubs, says Ambassador Francisco Constanta, Brasov and Cluj. The loca- Javier-Aleko, executive coordinator for INVITE, the developer behind Interpuerto. tions boast access to highways, major Dan McAuliffe, president of The Allen Group, believes the partnership will pro- roads, and airports. vide faster delivery times, which may result in a new competitive advantage for companies in both Mexico and the United States. — Mark Rowan
24 Inbound Logistics • August 2007 India Expresses Its Growth s India continues its ascent as a shippers in the region, as they will have Ahigh-ranking source for global more reliable options for moving goods, manufacturing and distribution, its notes the Triangle study, Indian Express express and parcel shipping market Distribution Survey 2007. is reaping the benefi ts. The Indian The survey, which is based on 1,230 express market is set to grow at face-to-face interviews with both more than 20 percent annually international and domestic shippers over the next few years, fi nds a new in India, also investigates factors that report from global consultancy Triangle differentiate carriers in shippers’ eyes. Management Services. Respondents report key distinguishing This growth potential has caught the issues including customer care; problem attention of global express integrators resolution; the fl ow of information between who are making investments in Indian carrier and customer; and the importance companies. DHL, for example, now of a wide range of services — both maintains Indian subsidiary Blue Dart domestic and international . Shippers seek Express; TNT recently purchased road improvements from their service providers express company Speedage; and FedEx concerning loss and damage to parcels, the bought out its global service partner study shows. They also report receiving Prakash Air Freight. This infl ux of better pricing from local carriers than from experienced companies is good news for the major integrators.
Shipping Spree ince May 2007, container lines in Sthe Transpacific Stabilization Does your 3PL Agreement (TSA) have reported con- sistently high ship utilization numbers, deliver results... high monthly volume and utilization totals, and increased congestion at …year-over-year? Asian ports – notably Shanghai, Hong Kong, Singapore, and Colombo – thanks Then isn’t it time to consider TMSi Logistics – an award to busy summer trade. winning national logistics provider – whose performance Despite a slower than expected driven culture will result in sustainable cost savings and first quarter, global shipments have improved service levels, year-over-year. rebounded to healthy levels this sum- TMSi is your single source. mer. June liftings by TSA carriers, for • Distribution & Contract Warehousing example, totaled more than 370,000 • Transportation & Dedicated Contract Carriage 40-foot containers (FEU), up 16.4 per- • Technology Solutions & Engineering Services cent from the 318,000 FEU carried in June 2006. In addition, TSA lines Call today at 603 -373 -7235 currently average 95-percent vessel uti- for more information or lization or higher from Asia on all route visit www.tmsilog.com. segments. As a result, TSA carriers are expect- ing a potentially diffi cult peak season through October, with spillover effects likely heading into 2008. “There isn’t Distribution, Technology and Integrated Logistics a lot of margin for error in the system,” says TSA Chairman Ron Widdows. ■
August 2007 • Inbound Logistics 25 TMSI-037-DA 3PL Ad IL.indd 1 4/23/07 9:13:34 AM C. Daniel Negron is vice president, TT Club •201-557-7320 [email protected] RISKS REWARDS& ISSUES AFFECTING LIABILITY MANAGEMENT by C. Daniel Negron
Seeing the Value in ‘Seaworthy’ Packaging
My company is a logistics the generally accepted industry stan- refrigerated dry containers during an service provider. We recent- dards for packaging the type of unusually warm autumn season. On Q: ly shipped a container of commodity that is the subject of the arrival, the goods had suffered signifi - machine parts to Brazil under an claim; they examine the packaging of cant melting damage. The court denied arrangement that included the packing the damaged goods in light of those the confectioner’s claim against the and stuffi ng of six crates. We received standards. Courts also examine the cus- steamship line because it could not instructions from the customer that the tom and usage among operators in that determine with any certainty whether packaging needed to be “seaworthy,” particular trade, being especially mind- the damage occurred before or after the and we hired a subcontractor to perform ful of any prior dealings between the containers were delivered to the steam- the packaging and stuffing. When parties on similar shipments. ship line. complete, the subcontractor inspected Because your customer’s shipment the shipment and determined that the YOU SAID, THEY SAID was booked through your offi ce, you packing was suffi cient for transport. In this case, your customer claims the are primarily responsible to your cus- When the container arrived in Brazil, shipment was delivered to your subcon- tomer for the damage in question. But however, the machinery had suffered tractor free of corrosion, but was not your subcontractor is in the best posi- corrosion. The shipper is now holding us packed in a manner suffi cient to with- tion to address the suffi ciency of the responsible for the damage, claiming it stand the normal rigors of ocean transit. packaging. For this reason, I recom- resulted from “unseaworthy” packing. I Interestingly, your customer provided mend asserting a corresponding claim believe that we and our partners acted instructions that the packaging be “sea- against the subcontractor – its actions properly. What can we do to prove this? worthy,” which suggests the company will be judged in line with the stan- Do standards exist for this type of may have been concerned about mois- dards adopted by the courts. incident? ture damage to the machinery. If the machinery possesses particular attri- AVOID CONFUSION IN ADVANCE The general court rule butes that make it especially vulnerable It is also wise to consider placing your governing ocean shipments to corrosion, your customer has a duty ocean carrier on notice in case your sub- A: is that goods must be packed to inform you of that fact. contractor can demonstrate that it did, to “withstand the normal rigors of Because manufacturers maintain spe- in fact, deliver the goods to the carrier ocean transit.” Because this is a very cialized knowledge of their products, in good order and condition. general standard, and because each case courts pay special attention to the care You can avoid cases such as this by can differ substantially, courts examine they take in preparing their goods for agreeing on detailed procedures with various factors to determine whether transport. your customer and your subcontrac- shipment packaging is adequate in each In one case, a European confec- tor regarding the handling, packing, particular case. tionery company shipped chocolate and transportation of your customer’s Courts typically begin by considering products to the United States in non- goods before they are shipped. ■
26 Inbound Logistics • August 2007
VIEWPOINT
Gregory Mathy is a consultant with EDS [email protected] • 972-797-8100 by Gregory Mathy & Sundar Swaminathan is senior manager, EDS Global Sales and Marketing Sundar Swaminathan [email protected] • 972-605-3772
Creating an Agile Transportation Enterprise
ue to an increasing number of chain. These systems restrict providers’ is used to manage the process, orga- enterprises involved in global ability to develop the support infra- nizational, and technology changes Dlogistics, and a growing number structure required to serve shipper businesses must make to achieve the of logistics processing points, sup- needs in today’s competitive transport global process template. The IT trans- ply chains have become less agile. In marketplace. formation plan supports the business response, manufacturers and retailers To meet these challenges and achieve transformation plan and lays out are developing demand-driven supply a streamlined future operational state, the initiatives and programs needed chains, in which suppliers manufacture logistics providers and carriers must to transform applications and IT products in the shortest possible time transform themselves into agile trans- infrastructure. using the least amount of inventory. portation enterprises. They must acquire To achieve this goal for their shipper communications and information DATA AND ANALYSIS customers, transportation service pro- systems capable of capturing and pro- Real-time data is critical, but the abil- viders need to improve order visibility cessing large amounts of near real-time ity to analyze data, identify responses in the supply chain, reduce invento- data to plan and execute their services. to exceptions, and execute actions with ries, improve demand response up and Providers need a fl exible operational supply chain partners is even more down the supply chain, and improve environment that interfaces smoothly critical. To do that, enterprises need to the command and control structure with “edge” devices to monitor orders, develop collaborative platforms that within the enterprise to handle supply shipments, and moving assets. They enable them to quickly communicate chain exceptions. should also be able to integrate seam- actions to partners. lessly with business gateways that Edge computing devices can now be MULTIPLE OBSTACLES support real-time interfaces with used to capture and forward detailed Achieving these objectives may be shippers and carriers, and command information about shipment locations, diffi cult for transportation service pro- and control centers that provide vis- estimated delivery times, resource sta- viders who, because of growth through ibility to operational and financial tus, and other supply chain details. By acquisitions, now maintain multiple exceptions. more efficiently capturing and man- operating processes, multiple IT plat- Perhaps the hardest part of the jour- aging information on every aspect of forms, and predominantly manual ney to becoming an agile enterprise is transport operations – and by mak- processes. the transformation. To manage this ing that data easily and instantly These legacy platforms are diffi cult process effectively, organizations must available to shippers, suppliers, and to enhance, and don’t always interface develop an enterprise transformation partners – providers can pull the world with other internal enterprise applica- plan that encompasses both business toward their data chain and gain a keen tions and partner systems, resulting in and IT transformation. advantage over competitors. added costs and waste in the supply The business transformation plan Another step in establishing an agile
28 Inbound Logistics • August 2007 transportation enterprise is creating a competitive transportation organization accountable service and delivery stable, integrated, and fl exible technol- capable of responding effectively to cus- performance. ogy, applica tions, and business process tomer needs and market changes. Today’s transportation industry is infrastructure. This agile enterprise The agile enterprise enables trans- faster, and more global and competitive platform is based on an applications portation providers to align their IT than ever before. Shippers increasingly and technology infrastructure using services more closely to their under- seek out transpor tation providers who Service-Oriented Architecture (SOA), lying business goals. It also provides a can do more than just deliver effi cient which combines best-of-breed appli- fl exible yet stable infrastructure capa- service at a competitive cost – they now cations development, methods, and ble of anticipating and responding to a demand supply chains that are respon- tools; business insight; systems integra- dynamic transportation environment. sive, visible, and intelligent. tion expertise; and composite solutions This approach enables transporta- To compete in this environment, to deliver a proven, leveraged environ- tion companies to address compressed transportation service providers must ment for transportation providers. product life cycles and the challenges retool their organizations to be fl exible Transportation service providers can caused by international shipping and transparent. They need a compre- leverage the agile enterprise approach to congestion. In fact, organizations hensive, transformational approach that achieve true end-to-end supply chain in virtually any segment of the links IT to business objectives, automates capabilities for their customers. Agility transportation sector can leverage operations, accelerates the supply chain, translates directly into a faster, more these strategies to provide superior, and streamlines their business. ■
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Visit www.militarylogisticssummit.com or call 1-800-882-8684. Mention code INBLOG Jeff Cashman is senior vice president, business development, Manhattan Associates [email protected] • 770-955-7070 ITMATTERS by Jeff Cashman
Bouncing Back When Disaster Strikes
hen natural disasters strike, real-time tracking information helps different divisions. Companies can businesses often must franti- ensure product is rerouted to a nearby respond quickly, scheduling neces- W cally search for essential items facility or forward location. sary labor resources based on expected to deliver to beseeching customers. 2. Implement intelligence and respon- volume increases and planning for Adept use of sophisticated information siveness tools to anticipate and quickly asset replenishment back through the tools can help retailers and suppliers react to changing demand. Retailers supply chain. “weatherproof” their supply chains. and shippers need true responsiveness 4. Develop programs that allow for Diverting shipments, moving inventory to sense and react to customer demand. demand-shaping scenarios. Demand to forward locations, and anticipat- Product movement intelligence tools, shaping is essential to weatherproof- ing potential spikes in demand, can such as RFID, let retailers reallocate ing the supply chain. If a major storm help moderate the effects of natural product out of harm’s way, and help is predicted in one area, retailers need disasters. maintain top-line profi ts even during an the ability to increase sales at other The following tips can help you emergency. These tools also provide vis- locations to protect top-line prof- establish supply chain technologies ibility into product shipments and cost its. That may include developing an and procedures to operate effectively structures. Visibility to the exact loca- unscheduled promotion and diverting when a crisis occurs. tion of products on individual trucks certain non-essential products from 1. Ensure real-time information is vital. If a truck is rerouted, it will storm-affected areas to the promotion. sharing. Businesses can achieve the need to arrive at multiple destinations To shape this scenario, retailers must flexibility needed during a crisis by in the right order to facilitate effi cient know the true cost and delivery times sharing key supply chain data with unloading. Responsiveness tools help of products. They can then “shape” business partners. Information trans- companies anticipate demand changes demand based on the supply chain’s parency is critical to providing visibility and intelligently react in emergencies. capacity constraints, which differ for into product movement and under- 3. Drive the supply chain through a each company. standing operational impact. In a single point of demand. Responsiveness 5. Establish careful disaster planning weather-related emergency, a retailer means accurately anticipating demand in advance. Solid planning and a respon- is likely to face disruptions in receiving changes. In a natural disaster, demand sive supply chain can mitigate the products allocated to, from, or through can spike and shift unpredictably. Time devastating effects of natural disasters. affected areas. Accurate product track- to react is razor-thin. Establishing a Advanced planning and information ing and visibility enhances the ability single point of demand, instead of tools can help retailers and suppliers to locate products in the supply chain forecasting from several sources, can withstand the supply chain disloca- at any time. The ability for retailers, car- increase demand visibility. Time is not tions these events cause, and maintain riers, and suppliers to access the same wasted reconciling information from top-line performance. ■
30 Inbound Logistics • August 2007
he story of the Oneida factory in Sherrill, N.Y., is reminiscent of many other U.S. plants: the com- pany had been manufacturing flatware there since the late 1880s, but by the 21st century faced stiff competition from importers, changing mar- “We can produce here faster than Oneida can manufacture ket conditions, and labor policies that retained and ship goods by air from overseas,” says Gregory Owens, the most senior, expensive workers longest. co-founder with Matthew Roberts of Sherrill, a two-year-old, T Oneida Ltd. ceased North American manufac- privately held small fi rm, which also makes products Oneida turing operations in 2005. otherwise would have discontinued. “Our production is very Up from the ashes rose Sherrill Manufacturing, a $10-mil- automated, and we can manufacture cost-effectively.” lion independent contractor to Oneida that fulfi lls niche, Sherrill is just one example of a cohort of consumer goods fast-turn, and diffi cult-to-forecast orders. The company cur- manufacturers hidden behind headline-grabbing statistics rently accounts for 6 percent to 7 percent of Oneida’s total on the tide of U.S. manufacturing shifting overseas. Fully demand, serving as a hedge to its international produc- 90 percent of brand owners outsource some manufacturing, tion sources. and more than half expect to increase their use of con-
32 Inbound Logistics • August 2007 How consumer goods manufacturers leverage domestic supply chains for Managing fast cycle times that global outsourcing can’t match. Domestic by Lisa Terry Supply Chains
on close proximity to their U.S. customers by leveraging their supply chains to add value. The lower logistics costs associated with domestic opera- tions help these manufacturers balance out higher operations tract manufacturing over the next two years, according to costs. Without brokers, freight forwarders, ocean/air carriers, Strategic Manufacturing Outsourcing: How to Achieve a Return on and customs concerns to worry about, many factories rely on Relationship Investment, an October 2006 report from AMR long-standing relationships with a variety of domestic trans- Research, Boston. It’s a fair bet the lion’s share of that out- portation providers, often a combination of parcel, LTL, fl eet, sourcing will be to low-cost countries. and customer-provided transportation, to move goods from Companies maintaining a notable portion of domestic the distribution center to the recipient. production fall into a narrow niche of markets where the Many are also migrating to direct-ship services on behalf need for extremely tight cycle times, specialized skills, or of retail customers. A related trend is postponement, in local control means it makes sense to maintain at least some which product components are manufactured elsewhere, U.S. manufacturing operations, sometimes called on-shor- then shipped into the United States, where the fi nal man- ing. These consumer goods manufacturers are capitalizing ufacturing process occurs. This strategy, made popular by
August 2007 • Inbound Logistics 33 Dell, enables a high degree of control Boston-based New Balance. day’s manufacturing for its five U.S. and customization. The NBEE initiative dramatically plants to replace missing SKUs. New Balance Athletic Shoe is depend- reduces production time on the athletic That’s a key capability for a company ing upon strategies such as these with shoe styles it covers – about 15 percent whose competitive edge is offering three to fi ve widths in every size, com- pared to most competitors’ one. A single style of shoe may spawn as many as 75 SKUs, making it a challenge for retailers to stay fully stocked. It’s also important to satisfy New Balance’s target demographic: elite ath- letes and everyday baby boomers who value performance over trendiness. Retailers can place an order today and receive it tomorrow, via parcel ship- ments sent out from the New Balance warehouse – currently 40,000 to 50,000 pairs move under NBEE weekly. “This program allows us to maintain our loyal customer base,” says Spivak. “We don’t advertise the way Nike or Adidas does, and we’re not a fashion brand like Skechers or Puma. We need to compete on other criteria, including NBEE and the performance and qual- ity of our product.”
The Right Ingredients It takes a confluence of specific conditions to make domestic manufac- turing the right choice for a particular company. Although higher margins allow room for increased production costs, it’s not automatically high-end Oneida Ltd. is one of the world’s largest marketers of stainless steel silverware and fl atware. Although it ended North American manufacturing operations in 2005, it still relies on products that make the most sense independent U.S. contractors to make products it would otherwise have discontinued. to produce domestically, particularly because high-end can also mean high its New Balance Executional Excellence of New Balance’s line. The company labor input. program (NBEE), launched in late guarantees dealers that it will always Markets where companies can oper- 2006. Underpinning the program is have NBEE products on hand to replen- ate successful domestic plants share the strong commitment of owners Jim ish inventory – a capability unavailable common traits: fast cycle times are and Ann Davis to U.S. manufacturing; from fully offshore manufacturers with highly valued, the market seeks a large while New Balance also produces in six-month lead times. amount of variety and customization, Asia, many competitors source entirely To deliver on that promise, New and longer cycles mean too-costly risk. offshore. The company has spent years Balance creates initial assortments in “It doesn’t make sense for markets honing an approach that offsets the Asian factories, then replenishes retailer with high demand error to go offshore,” considerable disparity in labor, regu- inventory through domestic production. says Lora Cecere, research director, con- latory, and other factors between the To accomplish that without build- sumer products at AMR Research. United States and low-cost countries. ing up safety stock, New Balance cut The kitchen cabinet and furniture “We had to adopt a business philoso- U.S. cycle times on one pair of sneak- industries provide a textbook lesson phy that combines the benefi ts of U.S. ers from three weeks to one day using in the do’s and don’ts of creating and manufacturing with an approach that lean manufacturing techniques, includ- exploiting fast-cycle expectations, allows us to compete successfully, even ing streamlining processes to eliminate according to Conrad Winkler, vice though our costs are higher,” says Herb delays. Now, instead of manufacturing president of the operations strategy Spivak, executive vice president of dis- to forecast, the company checks ware- practice at consulting fi rm Booz Allen tribution, quality and sustainability for house inventory daily and plans the Hamilton, McLean, Va.
34 Inbound Logistics • August 2007 The furniture industry stood by as to replenish Asian-made large-run hats transit time for orders from Asia, but 30 percent to 40 percent of production with local manufacturing. The com- managing the supermarkets intelli- quickly shifted offshore, he says. By con- pany sometimes needs to modify the gently creates a shock absorber,” says trast, domestic kitchen cabinet makers design to reduce the number of produc- Spivak. “Although on any given day responded to the looming threat of tion steps – a key strategy for operating consumption may vary from forecasts, global production by sharply reducing in higher-cost locales. over time it tends to modulate and cycle times to as short as two weeks. The custom hat process takes New meet expectations.” “Speed and reliability is very valuable Era’s U.S. plants four to six weeks from But challenges remain. In apparel to builders and contractors. Companies order to delivery, a cycle the manufac- and textiles, “companies producing stuck with four-month lead times are turer is seeking to trim through lean in this country get squeezed out on vulnerable,” says Winkler. manufacturing techniques and reli- volume orders, but in order to gain col- Promotion cycles are another factor. ance on parcel and LTL providers to laboration with suppliers they need “If packaging or promotions change fre- speed shipments. volume,” says Geoff Krasnov, co-pres- quently, companies are often left with ident of Style Source Inc., Allentown, a large amount of throw-away or dis- Keeping Raw Materials Flowing Pa., which provides apparel and textile counted goods. That provides good local One significant hurdle for many sourcing and manufacturing services. producers a big advantage over those domestic manufacturers is ensuring a The challenges of sourcing raw materi- manufacturing farther away,” he adds. stream of raw materials to fully capi- als leave these businesses searching for New Era Cap is another consumer talize on their proximity advantage. In smaller domestic suppliers for whom goods manufacturer playing the prox- the food business, for example, a plenti- short runs have meaning. imity card to competitive advantage. ful supply of raw material exists in their Prioritizing raw materials sourcing The 87-year-old, Buffalo, N.Y.-based backyards – though as the farm belt in the larger context of production is baseball cap manufacturer began out- becomes the fuel belt, even food manu- crucial for domestic manufacturers. sourcing production to factories in facturers are seeking offshore sources. Mary Kay Inc., for instance, places its China in 2001, but it maintains three Other domestic makers, however, cosmetics plants directly in its markets U.S. plants for two key product catego- must devise nimble inbound supply across the globe. This helps the com- ries: the authentic 59FIFTY hats worn chains to ensure the right fl ow of off- pany minimize cycle times; market by major league baseball players, and shore components. New Balance, for proximity is a bigger deal than being custom-designed hats. example, cut its procurement cycle near suppliers, says Lane Burtz, vice The custom hats business grew as base- for Asian components and materials president of purchasing, package engi- ball caps transformed from souvenir to from 12 weeks to three. Those goods neering, and transportation for Mary fashion icon over the past decade. Rappers, are delivered to a U.S. “supermarket,” Kay, which operates a plant in Dallas entertainers, and other icons lend cache where they are picked and cut to size as well as Hangzhou, China. to the idea of trendy, unique caps. and spec as needed. “Raw materials are becoming truly New Era’s custom program allows “We still deal with four to fi ve weeks’ global,” Burtz says. “Serving our mar- retailers to design their own styles in kets well is more important than the small runs that help them stand out location of materials, so we usually from competitors, and enables New Era choose regional production and trans- port the materials from wherever the source may be.”
Committed to U.S. manufacturing, athletic shoe company New Balance adopted a business philosophy that allows it to compete successfully even though production costs are higher.
August 2007 • Inbound Logistics 35 Another important consideration is the chemical and energy consumption required for manufacturing. Fifty-fi ve New Era Cap plays percent of manufacturers in a recent the proximity card to competitive advantage. AMR Research study, The Hidden It maintains three Backbone of U.S. Manufacturing, say they U.S. plants to quickly supply two key product have “significant, direct dependence” categories: custom hats on chemicals for production. A full 90 and the authentic caps percent of respondents expect chemi- worn by major league baseball players. cal costs to rise, with 62 percent calling the increase “substantial.” In addition, 43 percent believe domestic chemical capacity will decrease, as compared to 20 percent who see it increasing. “On average, manufacturers will shift 25 percent of produc- tion abroad if pricing and supply issues are not solved,” the study notes. These issues, particularly the price of age Chinese manufacturing wage of 57 natural gas, put the resilience and com- cents per hour. petitiveness of U.S. manufacturing at Those attaining domestic production risk, according to AMR. success combine investment in auto- In addition, one presumed domes- mation and lean manufacturing with and compounds, and oper- tic advantage that is falling away is a frank explanation to workers of the ates a machine shop to create and the sophistication of manufactur- fi nancial hardship of producing domes- maintain equipment. It also leverages ing technology and equipment. As tically. At New Era, the need to boost excess warehouse capacity by offering manufacturers began eyeing offshore production capacity came just as hun- 3PL services. locations, technology investments in dreds of union workers at its Derby, N.Y., local facilities often waned just as low- plant undertook a nearly year-long strike, Overlooking an Opportunity cost countries ramped up to offer better pushing the wage issue to the forefront. Despite the hidden opportunities quality. Those seeking to revive shut- But by the strike’s close, the resulting domestic production offers companies tered plants now face the additional clear-eyed, open discussion of the com- such as Sherrill, New Era, New Balance, hurdle of upgrading the infrastructure. pany’s economic realities lifted the veil and Mary Kay, not all manufacturers of distrust in the management-union fully exploit the proximity advantage. Making it Pay relationship. Today, that “allows open “Even though a domestic factory is Labor costs fueled much of the initial and honest dialog about our challenges,” capable of extremely fast lead times, push to outsourcing, but savvy compa- says Jim Patterson, vice president, global many companies do not segment U.S. nies are now starting to evaluate total operations for New Era. factories from overseas factories,” says costs when making domestic vs. off- The company evaluates its manufac- Booz Allen’s Winkler. “So they end up shore manufacturing decisions. turing costs from a global perspective. with the same lead time.” “Companies now are thinking more While there is some room for give and For many companies, the information holistically about the supply chain,” take, “we aim for each business unit to technology to enable a more holistic, says AMR’s Cecere. “Instead of thinking be profi table, not to subsidize one oper- strategic allocation of production capac- in isolation, they’re analyzing trade- ation with another,” he says. ity already exists; the failure occurs in offs in total costs,” though discrete At Sherrill, the majority of workers management policy. “Enacting domes- manufacturers are further along in this came from Oneida. They presumably tic production takes sophisticated supply evolution than process manufacturers. reckoned that conceding on pay was chain, sales, and operations planning But that’s not to say labor isn’t a preferable to losing their jobs completely. processes,” says Winkler. looming issue. U.S. manufacturing Government credits and subsidies also Companies committed to doing businesses paid an average hourly help soften the blow. whatever it takes to enable domestic wage of $17.17 in May 2007, accord- Sherrill’s additional cost-cutting manufacturing are seeing the impact ing to the Bureau of Labor Statistics. A strategies include vertical integra- in their supply chains – and on the 2002 Bureau report estimates an aver- tion – the plant also makes its own buffs bottom line. ■
36 Inbound Logistics • August 2007
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Perishby Lisa Harrington
Whether shipping fruit, seafood, fl owers, or any other perishable goods, transportation must be fresh, fast, and error-free. “Consumer confi dence in our products is as fragile
as the tender leaves of That passion, as expressed by Terry Humfi eld, vice president of volunteer the freshest salads. We leadership relations for the Produce never have and we never Marketing Association, Newark, Del., is shared by all companies in the will take that confi dence increasingly complex perishables industry. In today’s world of global for granted.” sourcing – with perishables supply chains growing ever more geographi- cally diverse – the task of maintaining quality, security, freshness, and economy has never been more diffi cult. One overriding business constraint hampers the perishables industry: expi- ration dates. “The most important issue in perishable foods management is the ‘sell-by’ date. Once it has passed, we cannot sell the product,” says Stuart Yowell, direc- tor of demand planning for U.S. meat processor Smithfi eld, a subsidiary of Smithfi eld Foods. “The concept of overstock is very expensive because expired goods aren’t just downgraded, they’re worthless.”
August 2007 • Inbound Logistics 39 Smithfi eld and other leading food this growth, Smithfi eld realized it had spreadsheets and experience – for pro- companies are adopting a multi- to start at the beginning and improve fessionally developing forecasts.” pronged approach to managing their its forecasting processes. That changed several months ago, perishables supply chains. The basic “We needed to consolidate produc- however, when Smithfi eld invested in tenets of this approach include: tion forecasting and scheduling for all a demand planning/forecasting system ■ Forging closer-than-ever ties to, our trade channels under one orga- from John Galt Solutions, Chicago. and communi cation with, suppliers nization,” Yowell explains. “So about “The Atlas Planning Suite drives data and customers. one year ago, we established a cen- through 25 different statistical models, so ■ Relying more heavily on the tralized demand planning group for we get the best forecasting information expanded capabilities of third-party processed meats. we can,” Yowell says. “In the food busi- transportation and logistics providers. “Smithfi eld maintains extremely high ness, forecasts can never be 100-percent
Getting fresh fi sh from the sea to the table is increasingly complex, given the large distances between the demand and the supply. Services such as American Airlines’ AACool Perishables play a pivotal role in allowing fi sh to pass the ‘sniff test’ by even the most discriminating chefs.
accurate. Sometimes patterns just don’t fi t, so the system can’t be used blindly. But it does provide a comfort level.” The new system centralizes the ■ Adopting leading-edge tech- standards for order fulfi llment – more forecasting information flows for nologies such as RFID and real-time than 99.5 percent,” he continues. “Our Smithfi eld’s various product categories. visibility tools. president – and our customers – expect For example, three different busi- ■ Improving the overall process of us to perform to that level. We had to ness managers handle bacon: one sells perishables supply chain management. manage demand planning so we could retail for the Smithfi eld brand name, a Companies using this approach are deliver that service goal, while holding second sells retail under the Gwaltney having a positive impact, ensuring that the line on costs.” brand name, and a third sells to the perishables supply chains preserve and The shelf life of Smithfi eld’s prod- food-service industry. All three manag- protect the products that traverse them, ucts varies among product lines, but ers are responsible for their area’s profi t and do so economically while meeting is generally about 100 days. Carrying center. Hitting their profi t goals greatly customer service demands. more than fi ve or six weeks of inven- depends on new sales, but it takes time tory can be costly: the company is for the processing plant to generate A Need for Planning forced to sell “distressed” products to those new orders. Smithfi eld Foods, for example, has secondary markets for 50 percent or grown rapidly through expansion and less of the direct cost. High on the Hog acquisitions. With headquarters in “Not maintaining enough inven- That’s why it is critical that Smithfield, Va., it is the leading hog tory, or holding too much, carries a Smithfi eld have just one central loca- grower and one of the largest meat pro- huge penalty,” Yowell says. “It is an tion where each business manager feeds cessors in the United States. extremely fi ne balance. That’s where demand information, which impacts To manage its perishables chain as forecasting comes into play. In the past, production planning and monitoring effectively as possible while adapting to Smithfi eld never had a tool – other than raw materials availability.
40 Inbound Logistics • August 2007
“Hogs are our raw materials,” Yowell Smithfi eld can plan for both cyclical priate inventory stocks and increase notes. “So a big part of our forecasting and random sales surges. order fi ll rates,” Yowell states. “We’ll do challenge is determining how many “Hot dog volume shoots way up in a better job managing our business.” hogs we need to produce. the summer, for example,” Yowell “If, for example, we forecast how many notes. “The new system helps us recog- Managing Speed ham muscles we need for the coming nize those demand patterns, and send Getting products to market quickly year, we’ll know how many hogs to raise the appropriate signals back to the pro- is a critical aspect of controlling any to produce those hams. If we need an duction planning group to build or perishables supply chain operation. But estimated volume of ham in July, we deplete inventory seasonally.” that speed often comes with a price – work backward to determine when we The planning system also recognizes higher transportation costs. have to have the hogs ready – allow- demand anomalies. Last December, for “Managing cost trade-offs is part ing time for the sow to be bred and give example, several major grocery chains of moving perishables,” notes Larry birth, and for the pigs to grow. ran special discounts on bacon, boost- Landry of American Airlines. “If a com- “In addition,” he says, “hogs can ing Smithfi eld’s volumes higher than puter is delivered one day late, it retains weigh anywhere from 240 to 280 usual for that month. The Galt system its effective useful life. Flowers, how- pounds, so they generate different sizes has the ability to recognize this anom- ever, have a shelf life of only 10 days. of raw materials. Forecasts have to take aly. It will smooth the forecast out so Lose one day in delivery and you’ve all that into account.” the company doesn’t overproduce lost 10 percent of the effective shelf life, Centralizing demand information bacon next December. limiting the opportunity for the cus- from business managers also provides “The new forecasting system will tomer on the transaction’s back end to a consistent contact point, with vis- have a tremendous impact on customer sell the product.” ibility through all sales channels, so service – on our ability to maintain appro- Perishables are also extremely sen- sitive to transportation price increases. “Freight charges on perishables rep- resent a greater percentage of the shipment’s value than dry cargo,” Landry notes. “Any price increase is an issue for shippers.” American Airlines Cargo recently introduced a value-added program designed to extend product shelf life. AA Cool Perishables provides pre-cool- ing and expedited USDA and in-house customs clearance for fresh shipments on site at the carrier’s Miami hub facil- ity. AA Cool Perishables helps maintain product quality by utilizing pre-cooling services to restore proper temperatures before delivery in Miami, or transit to another fi nal destination throughout the world. The air carrier started this service on an experimental basis a few years ago, pre-cooling asparagus moving from Lima, Peru to Europe. “The product tra- ditionally was shipped to Miami, then sat 12 hours waiting for its connecting fl ight,” Landry recalls. “So we put the asparagus in front of forced air coolers to remove the heat.” Growth in disposable income creates sophisticated palettes and demand for more diversity in perishable products. Suppliers The Miami-based program has meet the growing demand by sourcing products globally to grown so much that last fall American achieve year-round availability where possible. The longer supply added new evaporators to its facility lines and demand diversity create freshness challenges that leading carriers and logistics providers strive to overcome. and began providing the service in- house, rather than using an off-site cooler facility.
42 Inbound Logistics • August 2007 © 2007 Ruan End-to-End Chain Visibility Giving fl owers with that wilted look can do more harm than good. That’s why fl ower wholesaler VistaFlora strives to maintain 36 degrees F/2-4 degrees Celsius for the entire three-day journey from harvest to retailer. But you never know what can go wrong in transit. Here’s a typical temperature fl uctuation range at each step in the supply chain. Preventing readings that go off the chart is what every partner in the cold chain strives to achieve. SOURCE: CSPTS DFM K flowers,” Cardona notes. “You never wholesaler to closely track shipments as know what to expect. Sometimes a they move to customers in the United fl ight is delayed; sometimes capacity is States. “We guarantee customers that Miami is also a major fresh flow- not available. By maintaining relation- every order will be delivered on time,” ers and produce transit hub for DHL ships with multiple airlines, DHL can Cardona says. “So shipment tracking Global Forwarding. help resolve these issues quickly.” information is critical for us.” DHL customer VistaFlora Corp., a DHL is working on an upgrade of fresh fl ower wholesaler based in Bogota, Security Matters VistaFlora’s Web site to enable the track- Colombia, ships 5,000 boxes of flow- Because its origin location is a major ing of every shipment and box. ers per week through Miami; each box drug-smuggling country, VistaFlora In addition to major service provid- contains multiple arrangements. But for must manage its freight very closely ers such as American and DHL, some major holidays such as Valentine’s Day when it comes to security. smaller, niche third-party logistics ser- and Mother’s Day, that volume soars to “We have to work diligently to ensure vice providers specialize in handling as many as 53,000 boxes. that our cold chain is unbroken, accu- perishables. PeriShip LLC, located in “We receive customer orders via EDI,” rate, and fully documented,” Cardona Branford, Conn., is one such provider. says Angela Cardona, VistaFlora’s plan- notes. “For example, we seal our pack- PeriShip works exclusively with ning and logistics manager. “We ship ages at the farm, not at the broker’s FedEx to manage the shipment of sea- orders the next day from Bogota; two facility. We double-check that the food, cakes, meat, cheeses, and other days later they arrive in Miami.” paperwork matches the number of perishable products from across the VistaFlora’s shipments must be boxes we are dropping – if the paper- United States. maintained at 36 degrees F/2-4 degrees work says 542 boxes, we have to drop “We provide shippers a high level of Celsius. DHL handles the shipment exactly 542 boxes or our shipment will customer support by monitoring those documentation, freight brokerage, be stopped.” DHL Global Forwarding shipments and immediately resolving customs paperwork, and clearance helps VistaFlora manage these types of any issues or problems that arise,” says processes. security matters. Luciano Morra, president and CEO of “Every day is different when you ship Finally, DHL works with the fl ower PeriShip. 44 Inbound Logistics • August 2007 “Until a few years ago, the large air- Beverly, Mass., a provider of cold chain lines and integrators treated perishables visibility information solutions. much the same way as other express Consider a truckload of fresh freight, particularly in issue resolu- produce that is subjected to high tem- tion,” Morra notes. “If a shipment of peratures while in transit. Product that expensive Pacifi c salmon to an upscale was once fresh and valuable is worth restaurant was delayed, the recourse less at the point of delivery, measured level and issue resolution was the same as a reduction in available selling price as if you were shipping books or cloth- and grade, weight, and/or shelf life. ing. The problem would get handled Perishables not transported correctly later that day, or the next day. also carry a greater risk of microbiolog- “But that’s not good enough for the ical contamination, and outbreak of chef who is counting on serving the food-borne illness. salmon that evening in his restaurant “If pharmaceutical products are only to fi nd out at 5 p.m. that it won’t exposed to temperatures outside the be there,” Morra says. acceptable range, they might be ren- dered unsafe or non-effective,” Darragh Detailed Shipment Scans adds. “Products must be withdrawn That’s where PeriShip comes in. It from sale; they are worth nothing. A has built a system that is strategically containerload of biologically derived aligned with FedEx so it can monitor drug products can be valued at more the progress of all its shipments mov- than $10 million. But, if drug products ing through the FedEx system. are in limited supply, not having that PeriShip also maintains high visibil- medicine available because it was mis- ity levels; its shipment scans are much handled may result in serious social more detailed than general track- cost, as well.” ing-level data. An XML application Better condition information pro- program interfaces with FedEx’s sys- vides a higher level of control, allowing tems to receive real-time snapshots of supply chain partners to know that shipments as they pass the origin ramp, incoming products are out-of-spec and destination ramp, and other points in must be replaced, or rerouted to a closer their progress. PeriShip’s monitoring location and promoted for quick sale also includes weather and fl ight status because of reduced shelf life. at all major FedEx hubs, allowing it to anticipate problems. The Old-Fashioned Way This level of status detail means Many perishables companies, It’s hard to know what to expect when peace of mind for shippers. “If a cus- shipping fl owers – fl ight delays and lack of however, still rely on 80-year-old tomer shipped 20 boxes the night capacity are common. That’s why many technology – paper-based strip chart before, he gets an e-mail from us the fl ower wholesalers turn to 3PLs for help. recorders – to monitor product temper- next morning notifying him that all ature in transit. the boxes are moving according to much coolant when it’s not necessary. “When the shipment is delivered,” plan,” says Morra. “And, because we That saves money.” Darragh explains, “someone opens fi x address problems en route in about Clearly, information is a critical ele- the recorder box, pulls out the tem- 23 minutes, a mislabeled box never ment in managing the perishables perature strip chart paper, looks at the wastes hours being returned to the sta- supply chain. But the perishables report, makes an ‘accept’ or ‘reject’ deci- tion. Most of the time, customers never industry requires more than just the sion, and staples the paper to the box.” even know there was an issue.” transaction and location shipment The company has to keep those paper PeriShip provides weekly or monthly information common with general records for up to 12 months. reports that help customers optimize freight supply chains. Perishables ship- In contrast, Sensitech’s electronic shipping costs. “A report may point out, pers also require information regarding and RF data collection technology and for example, that while we recommend the condition of their freight as it analytics provide the ability for users using 20 percent coolant during winter, moves through the supply chain. to bank the data and learn from it. “Is we noticed that 10 boxes used 35 per- “Different categories of perish- this shipment a good one? Was it well- cent coolant,” Morra says. “The shipper ables degrade at different rates,” says maintained? Perishables shippers can can go back to the packaging depart- Elizabeth Darragh, director of food look back across their shipment history ment and fi nd out why they’re using so strategic marketing at Sensitech Inc., and analyze the last 50 shipments, pin- 46 Inbound Logistics • August 2007 #&! ! $ &#& ! ' #& !"!"# !#!" #" &" $! $!& !"""#!$# #!" $!% "'"# " $! $ # $! $"#!' $"# ! "!% $! # # # $"# ! " $ # !! "##% "#" ## " pointing any problems,” Darragh says. “Some of our best practices are pretty its two produce warehouses in Rochester The data also can help managers simple,” Humfi eld says. “For instance, and Pottsville, Pa. – and the carrier is not decide how quickly to move products treat drivers with respect and dignity. at fault – the grocer works directly with to market. If a shipment of bananas is That sounds like a no-brainer, but it its vendor to resolve the matter. delivered, for example, and the data often doesn’t happen. Drivers are not If the carrier is at fault, it has two shows they have three days of salabil- given the respect shown to other busi- options. First, the product can be ity left, the manager can expedite the ness partners. So we recommend that reloaded on the trailer and the carrier shipment to the retail level. receivers and shippers put in place can attempt to sell it for some sal- “Without cold chain visibility, the practices that treat drivers fairly and vage value in a secondary market. Or, same shipment would still make it appropriately, and allow them to do Wegmans will hold the rejected load in through to retail, but because it was what they do best – drive. its warehouse for 48 hours while efforts not put on ‘rush’, the bananas may “Drivers make their money on the are made to fi nd a secondary market. be unsalable by the time they arrive,” road, not waiting in parking lots,” Wegmans assists the carrier in this Darragh notes. Humfi eld adds. “So our best practices endeavor. The carrier and wholesaler Starbucks is using Sensitech’s RF are aimed at enabling drivers to make can either make direct arrangements, technology to monitor third-party dis- or Wegmans can contact the whole- tribution of perishables to its stores. saler on the carrier’s behalf. Because “Sensitech monitors log the delivery Th e concept Wegmans’ overall approach is to view time and temperature, the software and carriers as business partners, it under- data hosting collects all the data, and stands that a rejected load is never a we send Starbucks daily compliance of overstock is good situation. Helping the trucker in reports,” Darragh says. “Then we do a these instances eases the carriers’ over- monthly review of what’s happening at all burden. each Starbucks distribution center, as very expensive Wegmans works to avoid shipment well as across its entire DC network.” rejections from either suppliers or carri- ers by carefully communicating optimal Making Perishables Attractive because expired shipping temperatures and pickup times. We take it for granted that perish- The retailer provides carriers with train- ables will be able to move in the supply perishables ing videos and pocket guides on details chain – that transportation is always such as how to distribute the perish- available. But what happens if it is not? ables load within the trailer, and how In 2003, members of the Produce aren’t just down- to maintain proper trailer temperature Marketing Association (PMA) began to to ensure product quality. report that transportation access and Finally, Wegmans has completely dis- availability was becoming a problem. graded, they’re continued lumping practices – where the “A growing number of members were driver hires outside loaders/unloaders – at experiencing a shortage of trucks,” says its distribution facilities. “We believe the the Association’s Terry Humfi eld. worthless. driver does not want to be in the lump- “When we investigated the issue, ing business and should not be. We want we discovered that the problem was money. They include establishing drivers to be drivers,” says Roy Winters, not so much a shortage of trucks as a advance loading schedules so trucks Wegmans’ manager of transportation shortage of drivers,” Humfi eld recalls. can get loaded and on their way as services. “Lumpers are not allowed on “So, in late 2005, we established a task quickly as possible.” our docks, and only Wegmans employ- force to study this issue. We began to The best-practice guidelines also ees can unload trucks.” hear repeated stories of loading dock include suggestions on handling appointment times not being honored, rejected products. “One issue carri- Ensuring Success long wait times at docks, frequent use ers have to deal with is arriving at the The processes and services of ‘lumpers’ to load and unload trucks, receiver’s dock with a load of products embraced by companies such as and related problems.” that don’t meet specs, through no fault Smithfi eld, Wegmans, Starbucks, and The task force came to the conclusion of the driver,” says Humfi eld. “What VistaFlora – and supplied by their that, in order to secure the transpor- steps do the shipper and receiver take transport and technology service pro- tation services the produce industry to dispense with the product?” viders – mean the difference between needed, the products had to be made The PMA suggests companies a profi table and safe perishables sup- more desirable to haul than other prod- develop formal processes to address ply chain and one that is not. They ucts. To that end, PMA developed a set this issue. enable manufacturers, growers, and of best practices for working with motor Wegmans Foods Markets Inc., based wholesalers to deliver not only fresh carriers. It published those guidelines in Rochester, N.Y., has done just that. products, but confi dence and trust to in October 2006. When unacceptable product arrives at their customers. ■ 48 Inbound Logistics • August 2007 # " $# ) " % ! &!' $ & ! ( ' % ) ! + ,' ' ' ! & ! " * + ( - ) , ' ./-- 0 ../-"1 $-% +20 3--3/ + 4 "" !55 2--- " " " ! ! "" " " " " ! ! " " # ! ! ! ! ! # # ! " " " " SPECIAL ADVERTISING SUPPLEMENT FORKLIFT INBOUND LOGISTICS BUYER’S GUIDE 2007 Whether you are looking for electric, gas, LPG, or dual fuel models, you’ll fi nd the lift trucks on the following pages are leaner, meaner, and greener. The companies featured in this special supplement offer the safest, best engineered, most ergonomic, effi cient, reliable forklifts available. (They look hot, too!) Pick up the phone, or navigate to the Web, to request more information from the companies profi led. Or, if you want Inbound Logistics to do the work for you, go online to www.inboundlogistics.com/ forklift. The forklift information you need will fi nd you in minutes. August 2007 • Inbound Logistics 51 FORKLIFT SPECIAL ADVERTISING SUPPLEMENT INBOUND LOGISTICS BUYER’S GUIDE 2007 866-216-7840 emissions, while running cooler due to an improved engine TCM www.tcmusa.com compartment airfl ow. The automatic transmission has cast iron cases; bigger shafts, gears, and torque converters; and clutch TCM PRO Class 5 Pneumatic Lift Truck packs for reliability and quiet operation. ៑ CAPACITY: 3,000 to 6,000 lbs. ៑ POWER SOURCE: Internal combustion, LPG, gas, and TCM PRO-CB 4 Wheel Electric Lift Truck diesel ៑ CAPACITY: 3,000 to 6,000 lbs. ៑ HORSEPOWER: 51.9 hp to 67 hp ៑ POWER SOURCE: Electric ៑ FREE LIFT: 6.1 inches to 6.3 inches ៑ FREE LIFT: 4.1 inches to 4.5 inches ៑ OVERALL LENGTH: 88.4 inches to 106.5 inches ៑ OVERALL LENGTH: 118.3 inches to 129.9 inches ៑ OVERALL WIDTH: 42.1 inches to 48.2 inches ៑ OVERALL WIDTH: 37.8 inches to 43.5 inches ៑ OVERALL HEIGHT (FORKS LOWERED): 81.5 inches to ៑ OVERALL HEIGHT (FORKS LOWERED): 85 inches 82.5 inches ៑ APPLICATION/ENVIRONMENT: Designed for close- ៑ APPLICATION/ENVIRONMENT: Ideal for heavy-duty use quarters load handling in warehouses and trailers on multiple surfaces, including gravel hese 100-percent AC-powered lift trucks are clean sheet he all-new TCM PRO Class 5 pneumatic lift truck’s design with features to increase their operating effi ciency and incorporates more than 58 years of materials handling T productivity. The AC motors replenish the battery during T innovation and experience. Every aspect of these 100- braking or whenever travel direction is reversed to deliver percent clean-sheet pneumatic fork trucks was evaluated and eight hours run time on a single charge. The truck’s state-of- optimized for reliability, power, and productivity. The Tier 3 the-art controller manages operating current draw and power compliant engines are fuel effi cient and produce very low regeneration. The four controller settings – travel speed, tilting speed, attachment speed, and power output – can all be adjusted. The lift truck’s instrument panel carries on-board self diagnostics to simplify troubleshooting and maintenance at the job location without handheld meters. TCM PRO Class 4 Cushion Tire Lift Truck ៑ CAPACITY: 3,000 to 6,000 lbs. ៑ POWER SOURCE: Internal combustion, LPG, gas, and diesel ៑ FREE LIFT: 4.1 inches to 4.5 inches ៑ OVERALL LENGTH: 83.9 inches to 96.9 inches ៑ OVERALL WIDTH: 38 inches to 43.5 inches ៑ OVERALL HEIGHT (FORKS LOWERED): 83.1 inches ៑ APPLICATION/ENVIRONMENT: Designed for close- quarters load handling in warehouses and trailers CM’s 100-percent clean-sheet cushion tire fork truck comes standard with Tier 3 compliant engines, TCM- T designed and built automatic transmissions, and TCM- designed and built masts. Operator comfort has improved with wider fl oors and steps to make entering and exiting the vehicle easy. Safety has also improved, with a restraint system built into the operator seat; a complete system of interlocks including weight sensing driver’s seat, neutral safety, tilt cylinder lock, and parking brake alarm; and high-mount brake lights with vibration-resistant bulbs. 52 Inbound Logistics • August 2007 FORKLIFT SPECIAL ADVERTISING SUPPLEMENT INBOUND LOGISTICS BUYER’S GUIDE 2007 800-235-7200 RAYMOND www.raymondcorp.com Model 4100/4200 Standup Counterbalanced Lift Trucks ៑ CAPACITY: 3,000 to 5,000 lbs. ៑ POWER SOURCE: Electric; 36 volt ៑ DRIVE/LIFT: 4100 AC/DC; 4200 AC/AC ៑ LENGTH: 67.4/68.2 inches ៑ WIDTH: 41 inches ៑ OVERHEAD GUARD: 88 inches (standard) ៑ MAXIMUM SPEED: 6.8/7.2 mph (loaded) to shorter cycle time from dock to stock. Users also save money ៑ CONTROLS: Single-axis, multi-function control handle with longer brake life; oil cooled, these brakes last up to twice as long as dry friction brakes. A unique open view mast offers ៑ APPLICATION/ENVIRONMENT: Warehouse systems and exceptional visibility and multiple height/stage options. dock applications hese models tap the Raymond ACR System™ to provide more uptime, lower costs, and optimal performance. The Model 4700 Series 3-Wheel Sit-Down T proven reliability of these trucks improves your bottom Lift Truck line. Benefi ts include quick, clean attachment changes, and ៑ quick disconnect couplings, as well as tighter turns, greater CAPACITY: 3,000 to 5,000 lbs. HM; 5,000 to 6,000 lbs. control – stand-up profi le, and reduced turning radius. ៑ POWER SOURCE: Electric 36 volt/48 volt Operators enjoy exceptional comfort, with wide, roomy ៑ DRIVE/LIFT: AC/AC compartments, and a low 8-inch step height. The Model 4200’s ៑ unique open view mast offers excellent visibility. BRAKES: Oil-cooled disc brakes (most capacities) ៑ LENGTH: 75.9 inches Model 4400 3-Wheel Sit-Down Lift Truck ៑ WIDTH: 39.4 inches ៑ ៑ CAPACITY: 3,000 to 4,000 lbs. OVERHEAD GUARD: 88.9 (standard) ៑ ៑ POWER SOURCE: Electric; 36 volt/48 volt MAXIMUM SPEED: 9 mph (loaded) ៑ ៑ DRIVE/LIFT: AC/AC APPLICATION/ENVIRONMENT: A multi-purpose truck for heavy-duty dock operations, high-speed transport ៑ BRAKES: Oil-cooled disc brakes for supplying rack systems and moving orders to ៑ LENGTH: 75.1 inches packing and shipping ៑ WIDTH: 39 inches esigned with the operator in mind, ៑ OVERHEAD GUARD: 76.8 (standard) the Model 4700 lift truck features ៑ MAXIMUM SPEED: 9 mph (loaded) D semi-suspension, and standard adjustable seats and tilt steering. Operation ៑ APPLICATION/ENVIRONMENT: Multi- is faster, smoother, and more agile, as a purpose truck for loading and unloading, result of the Raymond ACR System (drive heavy-duty dock operations, or high-speed and lift). Thanks to oil-cooled disc brakes transport (most capacities), users enjoy more ess maintenance and lower costs uptime and lower costs. This model through the Raymond® ACR offers the highest maneuverability L System (drive and lift) are the main for the tightest turning radius, with advantages of the Model 4400. The truck dual, independent traction control. keeps operators comfortable and effi cient, Programmable performance suits with standard, fully adjustable seats almost any application, with up to six and steering; and natural, tactile, and pre-programmed performance speeds. intuitive controls. AC drive and lift leads A unique open view mast improves to powerful, programmable performance. visibility and offers multiple height/ The lift truck’s effortless agility translates stage options. 54 Inbound Logistics • August 2007 Productive. Versatile. Dependable. Raymond performance. From dock to stock. Depend on the Models 4100 and 4200 lift trucks to fit your application and help your operators do more on each shift. They’re part of the full line of Raymond ® trucks that are helping our customers make their operations more productive than ever. Choose the powerful Model 4200 for distribution centers and other high-productivity warehouse settings; the agile and cost-effective Model 4100 for dock applications. Both come with our exclusive ACR System™, the proven alternative to DC systems, and another reason why thousands of users are getting more uptime and lower costs with high-performing Raymond lift trucks. Put Raymond versatility to work for you. Contact your Raymond Dealer today. Visit www.raymondcorp.com or call 1-800-235-7200. ©2007 The Raymond Corporation, Greene, NY. FORKLIFT SPECIAL ADVERTISING SUPPLEMENT INBOUND LOGISTICS BUYER’S GUIDE 2007 609-860-0150 KALMAR www.kalmarind-northamerica.com Kalmar 11,000-20,000 lb. Lift Trucks ៑ CAPACITY: 11,000 to 20,000 lbs. ៑ POWER SOURCE: Diesel, LPG, or electric he Kalmar 11,000-20,000 lbs. is a unique series of forklift trucks where power and precision come together for T the best of both worlds, delivering a safe, yet fast truck. Get more out of your operators by making their jobs more effi cient. A whole series of selectable functions and integrated intelligence allows for more work while minimizing the risk of damaging goods. You can customize your forklift with a wide range of options, so fi nding the right truck is easy. the hoses and chains; placing the exhaust behind the rear, right-side pillar; and concealing the air fi lter under the cab – in order to give the operator a clean view of the work area. Kalmar 44,000-110,000 lbs. Forklift Trucks ៑ CAPACITY: 44,000 to 110,000 lbs. ៑ POWER SOURCE: Diesel ៑ APPLICATION/ENVIRONMENT: Ports, stone, and concrete handling, terminals, and steel mills he newest generation of heavy forklift trucks from Kalmar is specifi cally made for the most demanding labor. TKalmar has been making heavy things easier to handle for years, and these models are no different. Your operators will also be happy with the research Kalmar put into its driver environment. Operators can profi ciently perform throughout the work day without being held back by the lack of comfort or control. Kalmar trucks are easy to service, too. From accessible service points and inspection covers to easy access to the driveline, Kalmar knows the basis of an economical operation Kalmar 20,000-40,000 lb. Lift Trucks is the driver’s daily service. ៑ CAPACITY: 20,000 to 40,000 lbs. ៑ POWER SOURCE: Diesel, LPG ៑ LIFT HEIGHT (WITH FULL CAPACITY): 197 inches ith 13 models and a host of unique available features, it is no wonder that Kalmar’s W series of 20,000 to 40,000 lbs. lift trucks makes you feel in control. Smart handling and a new standard for visibility make for a safe and productive work environment. Kalmar made unique design decisions – such as repositioning 56 Inbound Logistics • August 2007 THE NEXT GENERATION HAS ARRIVED DURABLE, VERSATILE, POWERFUL FORKLIFTS Looking Good! But it’s what you don’t see that defines this next generation of forklifts. When it comes to the bottom line, our forklifts will give you the lowest possible lifetime cost. With a full range of quality forklifts for loads up to 110,000 lbs., it’s easy to find a Kalmar forklift that fits your needs today… and in the future. For more information about Kalmar Forklifts and other Kalmar products and services, or to locate your local Kalmar dealer, call toll-free 888.229.6300 or visit www.kalmarind-northamerica.com. 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 res- olutions 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. Atlas Cold Storage • www.atlascold.com Atlas Cold Storage delivers public refrigerated warehousing, transportation, distribution, and third-party logistics solutions to customers in major consumer markets. With more than 50 operational facilities located strategically across North America, every day Atlas’ dedicated professionals provide quality services to support the refrigerated and frozen food supply chain. As a member of the Eimskip group of companies, Atlas can connect customers to the world’s largest temperature-controlled logistics network. BAX Global • www.baxglobal.com The integration of Schenker AG and BAX Global has created a new global logistics and transportation solutions powerhouse. Enviable rankings in stra- tegic industry mobility and logistics service sectors include: No. 1 in European land transport, No. 2 in worldwide air freight, and No. 3 in worldwide ocean freight, and No. 3 in integrated heavyweight freight in North America. Cornerstone Systems • www.cornerstone-systems.com Cornerstone’s business is its people. The company’s proven professionals provide customers with the best transportation solutions available, backed up by the latest in technological services. Cornerstone’s rock-solid transportation solutions include: intermodal, truck, rail car, dedicated drayage/spotting, on-site logistics, warehousing/transloading, and special projects. Cornerstone maintains alliances with more than 5,000 over-the-road carriers and draymen, as well as all North American railroads and stack train operators. You’ll fi nd that dealing with Cornerstone is a pleasant experience, as well as a rewarding one. 58 Inbound Logistics • August 2007 IN THIS SECTION: 3PLs Fidelitone Logistics • www.fi delitone.com If you’re responsible for all or any part of your company’s supply chain functions, you can fi nally relax, and outsource to Fidelitone Logistics with complete confi dence. Fidelitone offers the best and most comprehensive supply chain services – from procurement and inventory management through distribution and return services. Fidelitone is big enough to support a large, complex program, and lean enough to provide the fl exible, customized, and personal service you deserve. LeSaint Logistics • www.lesaint.com Visit our newly revised web site designed to better serve your needs. Learn how to put LeSaint Logistics’ 3PL KnowHow™ to work for your business. As a Top 100 3PL provider, LeSaint Logistics has the expertise, experience, fl ex- ibility and service performance to power your supply chain. LeSaint delivers intelligent warehousing, fulfi llment and transportation solutions – supported by advanced logistics technology – to manage your supply chain, streamline effi ciencies, and boost your bottom line. At LeSaint, we make it our busi- ness to know your business. We deliver high-performance logistics solutions designed to meet your unique needs, measuring key performance indicators for continuous improvement of our processes. Log on today. Megatrux Inc. • www.megatrux.com Full-service freight delivery by any mode of transport. Professionals choose the best routes, negotiate the best rates, and arrange the best handling, upon your service preference. We can ship by truck, rail, air, intermodal, or container. Truckload, expedited, LTL, van, air ride, blanket wrap, dedicated lanes, e-track, trade shows, short-haul lanes, hazardous materials, deferred air freight, complete logistics management. Roadlink USA • www.roadlink.com RoadLink USA holds a network of operating companies focused on intermodal trucking, dedicated operations, and related logistics services. RoadLink USA also maintains a network of convenient service locations from coast-to-coast, and the combined capacity of more than 2,200 trucks nationwide, making it the largest company of its kind in North America. Expansion plans are in place to increase capacity and become a dominant player in every key intermodal market in North America. August 2007 • Inbound Logistics 59 IN THIS SECTION: 3PLs – Forklifts SMART Management Group • www.smartmanagementgroup.com Let SMART Management, part of the CTX Group, become your logistics partner and a vital part of your transportation and distribution network. SMART Management’s skills in operational logistics can help fulfi ll your supply chain demands. We have the systems, procedures, technology, and people to manage inventory, products, and vehicles to their destinations. Our track record of success stems from continuous collaboration and streamlined communication with partners, customers, drivers, and vendors. CHEMICAL LOGISTICS Canadian National (CN) • www.cn.ca CN, a North American rail industry leader, provides shippers with greater reach in the rapidly expanding market for north-south trade. CN ships a variety of chemical products; moving your goods safely is its number-one priority. Shippers can leverage CN’s scheduled railway and route/gateway agreements with other railroads to reach North American markets faster. FORECASTING RockySoft Corporation • www.rockysoft.com RockySoft provides the leading inventory management solution for mid-market distributors. RockySoft provides a powerful exception-based planning system to streamline collaborative forecasting, demand planning, automated inventory management, advanced replenishment planning, supplier management, sales and operations planning, and EDI-deployed Vendor Managed Inventory (VMI/EDI). Clients experience an increase in productivity and customer service levels, while reducing inventory an average of 25 percent. FORKLIFTS Kalmar Industries Corp. • www.kalmarind-northamerica.com Worldwide Reach – World-Class Moves. Kalmar is a global provider of heavy-duty materials handling equipment and services to ports, terminals and industrial customers. With its market-leading lines of Ottawa terminal tractors and industrial forklift trucks, Kalmar helps customers operate with a higher level of effi ciency. For more information, call 1-888-229-6300 or visit www.kalmarind-northamerica.com. 60 Inbound Logistics • August 2007 IN THIS SECTION: Forklifts – Logistics IT The Raymond Corporation • www.raymondcorp.com The Raymond Corporation is the North American leader in the design and manufacture of the best-built, best-performing, and most reliable electric lift trucks. Behind all Raymond products is its wealth of expertise and deep commitment to electric lift truck research and development. Raymond continuously focuses on improving customer operations and is dedicated to understanding your requirements. What features are important to your operation? How can we make your job easier? How can we make you more productive and effi cient? This philosophy positions Raymond at the forefront of the lift truck industry, pioneering leading-edge concepts. TCM Distribution USA • www.tcmusa.com Whether you need electric motor sit-down rider trucks; IC engine trucks; fork, counterbalanced, cushion or pneumatic tire trucks; TCM Distribution USA has the lift truck for you. The trucks feature powerful AC motors that deliver superior regeneration with less maintenance; onboard diagnostics and full instrumentation; extended run times with controllers that provide twice the battery life, and precise handling and load control. TCM has also introduced the FTB VII series of electric three-wheel forklift trucks. Need more information? Log on to www.tcmusa.com today. FREIGHT MATCHING Courierboard.com • www.courierboard.com Courierboard.com is the company-to-company online exchange, designed specifi cally for the messenger and courier industry. Looking for a car, van, sprinter, or small truck (up to 24 foot)? Courierboard.com is the place to fi nd a courier company, anywhere in the nation, to move your freight. Posting freight is always free on Courierboard.com. Register for our free Premium Account trial membership and enjoy all features including unlimited freight postings, vehicle searches, and e-mail alerts when available vehicles are posted in your area. Find a courier company meeting your delivery requirements on www.courierboard.com. LOGISTICS IT CDM Software Solutions Inc. • www.cdmsoft.com CDM WinFrt is a comprehensive, effi cient trade management system that includes quotes, bookings, air freight, ocean freight, imports, AES, billing and job costing, operational and management reports with integrated accounting. Options include Internet tracking and tracing, Sea AMS, and EDI with customers and air and ocean carriers (eSI). CDM Software Solutions Inc. is a certifi ed U.S. Customs (CBP) vendor and certifi ed on Inttra, Cargosmart, and directly with certain ocean carriers. Contact us at 312-428-4876 for more details and to schedule a software presentation. August 2007 • Inbound Logistics 61 IN THIS SECTION: Site Selection – Warehousing SITE SELECTION Columbus Chamber of Commerce • www.columbus.org Go ahead: locate and expand your business in Columbus. The Columbus Chamber offers full, no-cost site selection services that include labor market analysis, operating cost comparisons, tailored research, and site tours. Columbus has the people, the culture, the technology, the growth, and the location to bring value to your business. TRUCKING Central States Trucking Co. • www.cstruck.com Are you looking for more from small carriers who lack the resources and professionalism to get the job done right? Conversely, are you frustrated by the impersonal and bureaucratic approach frequently evidenced by the industry’s larger carriers? If so, experience the Central States Trucking (CST) difference. CST is a family-owned-and-operated company, with the corpo- rate philosophy to get the product mix “just right” – world-class service with the personal touch. CST specializes in container drayage, dedicated contract carriage, line-haul, and warehousing. Visit the web site to see how CST is changing the way companies think about transportation services. Schneider National • www.schneider.com Schneider National is more than just truckload services, it’s the leading provider of premium truckload and intermodal services. Schneider National creates transportation solutions for customers using the broadest portfolio of services in the industry. Schneider National has several divisions that provide transportation and transportation related services: One-way Truckload, Dedicated, TruckRail, OptiModal, Brokerage, and Expedited. Visit Schneider’s site to fi nd out more about the company and the services it provides. WAREHOUSING Atlas Cold Storage • www.atlascold.com Atlas Cold Storage delivers public refrigerated warehousing, transporta- tion, distribution, and third-party logistics solutions to customers in major consumer markets. With more than 50 operational facilities located strategi- cally across North America, every day Atlas’ dedicated professionals provide quality services to support the refrigerated and frozen food supply chain. As a member of the Eimskip group of companies, Atlas can connect its custom- ers to the world’s largest temperature-controlled logistics network. 62 Inbound Logistics • August 2007 GET IN GEAR With Inbound Logistics’ FREE online RFP service. Create a database of prospective motor carrier partners. Build your knowledge base. Prepare your RFP list. The Trucking RFP is your opportunity to have motor carrier experts look at your specifi c over-the-road challenges and needs, and give you free, no-obligation advice, solutions, and information specifi c to your request. To get started, go to inboundlogistics.com/rfp CELEBRATING 25 YEARS OF TRANSPORTATION EXCELLENCE When you connect with Torus, you truly connect with Canada and receive seamless service across our borders. We service all points between the U.S. and Canada...direct! Through our dedicated team of experienced customer service professionals, we provide flexibility, personalized care and cost effective transportation solutions. Our direct service approach reduces handling and improves transit times on LTL & Truckload requirements. Our ability to match up equipment for LTL & Truckload requirements has taken us from dry van to temperature control, flatbed and even heavy haul moves, with resounding success. Through distribution centers in Toronto and Vancouver, we are well positioned to handle the storage, inventory control, pick and pack and movement of product to any point in Canada. Connect with Torus...Connect with Canada! Toll Free: 800.463.3102 [email protected] L.I.T.TOOLKIT by Merrill Douglas Rock Around the Stock lues, rock, country, hip-hop, percussion instruments, keyboards, and salsa – American tastes in pop- professional audio and recording equip- B ular music run the gamut. And ment – amount to 7,000 SKUs. To serve the sounds that are big in El Paso this customers and keep profi ts high, the year might be totally different from the company must understand how each sounds that are hot in Brooklyn , or SKU performs in each store. A home- Nashville, or Spokane. grown forecasting system, developed So when your business is selling in Microsoft Excel and Access, wasn’t musical equipment, imagine how hard hitting the right notes. it is to keep each of 200 stores across the “The forecasting system operated at Taking its cue from the country stocked with the mix that’s in the chain level, but we really needed tune with the local music scene. to be looking at inventory at the store Q system, Guitar Center’s That’s what Guitar Center was level,” Hayden says. “We needed the wrestling with three years ago. ability to look at each one of our forecasts and inventory Part of its challenge stemmed SKUs, and each one of our stores, from the fact that its stores dif- and understand how they perform allocation now make fer greatly in size, ranging from differently from one another.” beautiful music together. 5,000-square-foot shops to In addition to a system that 30,000-square-foot big box provided insufficient detail, locations. Guitar Center faced another “Also, the types of customers challenge when trying to under- we deal with vary widely depending stand the store/SKU relationship. The on demographic and geographical company’s forecasting team used one regions,” says Bret Hayden, director set of business rules to determine the of business process design at Guitar volume and mix of products to send Center, Westlake Village, Calif. to its distribution centers, while the The products that Guitar allocation team used a different set to Center carries – guitars, amplifiers, create the product mix for stores. August 2007 • Inbound Logistics 65 L.I.T.TOOLKIT ‹ CONTINUED FROM PAGE 65 “We would end up with merchandising strategy. a serious disconnect A popular product at be tween what forecasting a marked-down price thought was needed and plays the role of traf- what allocation thought fi c driver, Hrabe explains. was needed,” says Steve The margin is low, but it Johnson, Guitar Center’s draws in shoppers who might director of forecast, allocation make other purchases while and replenishment. they’re in the store. Another prod- Today, however, Guitar Center inte- uct, with a higher profi t margin, is a grates forecasting and allocation in a money-maker. Still another serves as single process, and is much better able an image item, bolstering the store’s to tailor each store’s product mix to prestige by its presence even though local demand. These changes came few people actually buy it. Think of about through the company’s work a giant screen TV in a consumer elec- with Quantum Retail Technologies. tronics store, he says. Guitar Center has served as a Products play different roles beta customer for Quantum, help- in different stores. “An image ing the Carlsbad, Calif., software item at the Best Buy in suburban firm develop its inventory opti- Minneapolis might be a money- mization solution, Q. The retailer maker at the Beverly Hills Best Buy,” ran a pilot implementation of Q Hrabe says. in late 2005 and early 2006; Demand for products also then entered a detailed design changes over time. As Q recom- and implementation phase mends inventory allocations to address its long-range fore- for different stores, it considers casting and product allocation the roles the company assigns to needs. That version went live in different products at those stores; then the third quarter of 2006. A third phase it tracks the products’ behavior to see of the implementation – adding com- have effectively eliminated much of how well they play their parts. modity products such as guitar strings the detail associated with how items More precise information about prod- and drumsticks – was due to go live in behave at the store level,” Hrabe says. uct demand and performance creates late June 2007. Ignoring the store-by-store detail greater effi ciency. “Retailers hold too obscures important information, such much inventory for fear of losing sales, TOO MUCH DATA as whether a store is stocking the right but over-inventory means lost profi ts,” Quantum developed Q to meet the product quantity, notes Chris Allan, Hrabe says. needs of retailers who, over the last few Quantum’s founder and head of prod- “Retailers have unbalanced inventory decades, have increasingly moved deci- uct strategy. because they use grade group averages sion-making responsibilities from store “A 98-percent in-stock of a certain and lose much of the detail. They end managers to home-office executives. product across the chain doesn’t really up with too much inventory at one Those executives base many decisions show a complete picture,” he says. “Some store, too little at another. Q directly on sales data pulled from the stores. locations may be out of stock for several addresses these issues,” he adds. But their enterprise resource plan- weeks; others may be overstocked.” At Guitar Center, the point-of-sale ning (ERP) systems can’t analyze such Q uses data from point-of-sale sys- system feeds data into a JDA Software a vast volume of information in great tems, ERP systems, and warehouse ERP system, which passes it along to Q. detail, says Mike Hrabe, Quantum’s management systems to track exactly Then, Q’s recommendations and alerts vice president of sales and marketing. how much inventory each store has, pass back to JDA and to the company’s Instead, they aggregate the data and how fast it’s selling, and how much Arthur Allocation system. look at average performance for cate- new stock is fl owing through the pipe- “As part of Phase 3, we will integrate gories of stores and items. line. In making forecast and allocation Q with our warehouse management sys- “Through that smoothing, averag- decisions, Q also considers the role tem, so we’ll have information regarding ing, and aggregating process, retailers each product plays in the company’s shipment delivery times,” Hayden says. 66 Inbound Logistics • August 2007 Each time Guitar Center adds a new product performance in real time and which serves the school band market product to its assortment, the buyer and tells planners when product perfor- through more than 90 stores. planner assign it a role and a strategy. mance doesn’t match the forecast. Since Guitar Center started using Q, “They can also set up other types of For example, Q notifi es planners if service levels and in-stock rates have parameters,” Hayden explains. “For an item is selling better than expected. increased, with a better inventory bal- example, they can plan for a display in The planners can then arrange to order ance across the chain. “We don’t have the store for that product, or set a ‘max larger quantities in the future. as many over- and under-stocks as we stock’ if the item is big and bulky.” had in the past,” Hayden says. The company could assign those rules THE MISSING PIECE Also, now that it’s monitoring per- to each product on a store-by-store basis, Company offi cials are contemplat- formance at the store and SKU levels, but executives have decided to move ing a possible fourth phase to the Q the company can generate more excep- one level higher, dividing stores into implementation, which would focus tion reports, and can measure forecast several “grades” based on their charac- on assortment planning. error. Those exception reports are teristics. Stores get different grades for “That’s the piece we’re currently important because they alert planners different product categories. missing in our suite of applications,” to problems or anomalies in parts of “One store could be an ‘A’ store for Hayden says. “We’re able to create strat- the operation that weren’t receiving drums, but a ‘C’ store for guitars,” egies for these items, but we don’t have enough attention. Hayden says. “We have the ability to good visibility to how that item fi ts in “Q helps maximize users’ time and manage inventory using those grades.” the whole assortment.” makes sure they spend their work hours Besides helping Guitar Center plan- Quantum representatives also have where they can add the most value,” ners determine what stock to order and been talking to executives in Guitar Allan says. And that’s music to Guitar how to allocate it to stores, Q monitors Center’s Music and Arts Center division, Center’s ears. ■ 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. 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. 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. Get started now at inboundlogistics.com/rfp August 2007 • Inbound Logistics 67 TECHUPDATE THE LATEST IN LOGISTICS TECHNOLOGY software and purchase orders with real-time visibility. The warehouse manage- Glacier Computer ment module helps users stay one step WHAT’S NEW: A customized and inte- ahead of demand by ensuring inven- grated solution for the Everest series tory levels and delivery capabilities of harsh-environment computers. are aligned with service goals. THE VALUE: Glacier Commander allows u www.cdcsoftware.com ✆ 770-351-9600 IT administrators to access vital forklift- mounted computer information from MOL their office PC using readily available WHAT’S NEW: An automated dispatch remote management programs. Users solution that connects ocean carrier can monitor system activity, program MOL and its house trucking line, in function buttons, and view detailed real time. reporting on current and past tempera- THE VALUE: The integration stream- ture and voltage readings. lines truck dispatch operations and u www.glaciercomputer.com ✆ 603-882-1560 enables container pickup and deliv- ery information to be automatically Accellos updated in MOL’s in-house equip- WHAT’S NEW: An integrated suite of ment management system, all with supply chain execution solutions for the truck driver pushing a single but- small to mid-sized businesses. ton on a GPS-enabled mobile phone. THE VALUE: The Accellos One software This solution was created by IAS- solution is available in five solution Trinium, a joint venture between areas: Warehouse, which increases ware- International Asset Systems and Intermec house productivity, efficiency, and Trinium Technologies. WHAT’S NEW: A handheld computer visibility; Logistics, to help logistics u www.molpower.com certifi ed to meet most global hazardous providers cost-effectively meet cus- environmental standards. tomer requirements; Transport, which rfid/wireless THE VALUE: The CK32IS provides the helps carriers, brokers, and shippers chemical, oil, gas, pharmaceuticals, grain, maximize planning, execution, and Tharo Systems textile, and mining industries a safe and reporting effectiveness; the Anywhere WHAT’S NEW: A solution for printing rugged handheld computer option. The series, focusing on mobile, services- bar-code and RFID labels using XML- computer carries an extensive list of global based, and collaborative solutions; and enabled enterprise systems. hazardous environmental ratings, and meets the Intelligence area, which reports on THE VALUE: Through the use of the requirements for flammable gases, vapors, key business trends and metrics. Easylabel XML Generator and XML liquids, dust, fibers, and flyings. The Windows u www.accellos.com ✆ 719-433-7000 Monitor, users can design label formats, Mobile 5.0-based handheld computer then print them by sending XML features an Intel XScale PXA270 processor, CDC Software files to a monitored folder or TCP/IP 128 megabytes of DRAM memory, and 64 WHAT’S NEW: A warehouse manage- port. The XML Monitor software auto- megabytes of non-volatile flash memory. ment solution. matically prints RFID and bar-code u www.intermec.com THE VALUE: The IMI Supply Chain labels as XML files are received, mak- ✆ 800-755-5505 Execution software helps users control ing the labeling process seamless. XML distribution channels and logistics Generator identifies how many labels to operations by capturing, sourcing, print and which printer to use. pricing, tracking, and settling sales u www.tharo.com ✆ 800-878-6833 68 Inbound Logistics • August 2007 To learn more, contact these companies directly. Remember to mention this issue date and page to get the right information. Cactus Commerce ALK Technologies Web-enabled cell phones. The mobile WHAT’S NEW: End-to-end RFID track- WHAT’S NEW: A Web application pro- version of the site allows members to and-trace solution. viding industry-standard map data search and post for loads by city, as THE VALUE: Cactus’ RFID Track & Trace and functionality. well as save searches for future refer- Solution allows companies to extend THE VALUE: PC*MILER Web Services ence and quick access. the benefits of RFID to manufactur- now shares PC*MILER information u www.getloaded.com ers of retail and consumer packaged through the Web – making it eas- goods. The solution improves work- ier to connect to the components of Ultra Logistics flow efficiency and inventory tracking PC*MILER necessary to enhance appli- WHAT’S NEW: An online demo of the by showing users exactly where their cation or system interface. The data UltraShip TMS software. products are at any given time. sent online is processed as either mile- THE VALUE: Ultra Logistics’ new Web- u www.biztalkrfi d.cactuscommerce.com age, precise toll costs, route maps, or as based TMS solution provides users ✆ 888-222-8870 dock-to-dock, street-level direction. with complete transportation vis- u www.alk.com ✆ 800-377-6453 ibility, allowing for a high level of Maersk Line customer service. Features include WHAT’S NEW: A wireless reefer con- Getloaded.com easy-to-use, customizable screens; tainer monitoring system. WHAT’S NEW: Core services of the Web EDI integration; load tendering capa- THE VALUE: Maersk now offers real- site are now available via cell phone. bilities; appointment scheduling; time container tracking to customers THE VALUE: Getloaded.com, an load tracking; and overflow load moving time-sensitive, high-value Internet load board for the transpor- management. refrigerated shipments. Using StarTrak tation industry, now offers service to u www.ultrashiptms.com ✆ 888-794-6642 Systems’ GenTrack monitoring devices, the system provides real-time visibility into the location and temperature set- tings of containers in North America. The tracking device allows Maersk to immediately identify equipment mal- CONTINUING AND PROFESSIONAL STUDIES functions or transport delays. u www.maerskline.com ✆ 800-854-6553 web Baruch’s Weissman Center CERTIFICATES American Airlines Cargo for International Business • Import Trade Operations & Procedures WHAT’S NEW: An online booking and the Division of • Export Trade Operations & Procedures enhancement, EZBook. Continuing and Professional • Customs Broker License Preparation • International Supply Chain THE VALUE: EZBook offers greater Studies offer certificates in International Trade! Security & Compliance access to premium flight capacity for • International Entrepreneurship shipments weighing 200 pounds and Beginning in the fall of 2007 courses measuring 75 cubic feet or less. The and certificates will also be available new functionality provides automatic through the Online Learning Center! booking confirmation and electronic Register Today! shipment notification to customers using AA Cargo’s Expeditefs express visit us on the web: www.baruch.cuny.edu/caps freight service. or call : (866) 399-1529 u www.aacargo.com ✆ 800-CARGO-AA August 2007 • Inbound Logistics 69 NEWSERVICES YOUR BUSINESS LOGISTICS RESOURCE Estes Express Lines WHAT’S NEW: A terminal in Atoka, Okla. THE VALUE: Regional and long-haul motor freight carrier Estes Express Lines now operates a new terminal in Atoka, Okla. This full-service terminal is the third Estes terminal in Oklahoma and replaces a driver-only location in McAlester, Okla. The Atoka facility allows Estes to provide enhanced next-day service solutions for shippers in eastern Oklahoma and the surrounding states. u www.estes-express.com ✆ 804-353-1900 Con-way Freight Epes Logistics Services vice facilities provide a combined WHAT’S NEW: The expansion of WHAT’S NEW: The opening of a fleet of more than 500 full-service a Freight Assembly Center in Laredo, Texas, offi ce. lease and rental units, as well as main- Montgomery, N.Y. THE VALUE: Epes Logistics Services, tenance and logistics services. The THE VALUE: Con-way Freight has based in Greensboro, N.C., has Canadian locations include fully opened its expanded freight assem- opened an office in Laredo, Texas. equipped truck repair shops to service bly center (FAC) in Montgomery, N.Y. The facility serves the border Ryder’s commercial fleet leasing and Completed in June 2007, the 67,000- area, Northern Mexico including rental customers. square-foot facility features 63 new Monterrey and San Luis Potosi, and u www.ryder.com ✆ 1-800-BY-RYDER dock doors and increases freight han- Mexico City. From this new office, dling capacity to 3.6 million pounds Epes provides LTL, truckload, and DHL per day – an addition of two million warehousing services, and handles WHAT’S NEW: A regional sort center pounds daily. Con-way FACs are stra- Mexico and U.S. border crossings. facility in Minnesota. tegically located, high-volume freight u www.epeslogistics.com ✆ 800-659-1117 THE VALUE: The new 79,049-square- handling facilities in the company’s foot facility doubles the size of DHL’s network of more than 440 service Ryder sort center operations in the region. centers nationwide. WHAT’S NEW: Service facilities in the The regional sort center provides u www.con-way.com/freight Greater Toronto area and Ottawa. one-day ground service for letters ✆ 650-378-5335 THE VALUE: These new Canadian ser- and parcels across Minnesota and 70 Inbound Logistics • August 2007 To learn more, contact these companies directly. Remember to mention this issue date and page to get the right information. into parts of Wisconsin, Iowa, and established a Center for Logistics and in capacity from four 4,000-TEU North and South Dakota. The new Transportation Policy. The Center vessels. With these changes, the facility is also located closer to the works with carriers, shippers, and CCX service offers a direct call from Minneapolis/St. Paul International regulators to develop solutions to Shanghai to Los Angeles, with a Airport than the previous, smaller transportation problems. Its close 10-day transit time. facility. proximity to the Port of Houston u www.nykline.com ✆ 201-330-3091 u www.dhl.com ✆ 800-CALL-DHL allows the Center to play a role in international trade. Viastore Systems Focus South Logistics u www.tech.uh.edu ✆ 713-743-4114 WHAT’S NEW: A high-performance WHAT’S NEW: The opening of a picking system. 200,000-square-foot, full-service Grand Alliance THE VALUE: An automated storage facility in Atlanta. WHAT’S NEW: An upgrade to the retrieval system for high-speed picking THE VALUE: This new facility is located Central China Express Service. is now available from Viastore Systems. less than 20 minutes from Hartsfield- THE VALUE: Grand Alliance members The High Performance Picking System Jackson International Airport, CSX Hapag-Lloyd, NYK Line, and OOCL (HPPS) can be integrated into virtu- and Norfolk Southern rail terminals, have restructured and upgraded the ally any system design. Through the and all of Atlanta’s interstate high- Central China Express Service (CCX). intelligent guidance of the picker, and ways. Combined with its short-haul Beginning in August 2007, Grand combined use of WMS software and capabilities, this facility enables Focus Alliance will adjust CCX’s port rota- a pick-to-light system, the HPPS picks South, a certified MBE, to provide an tion to Ningbo/Shanghai/Los Angeles/ customer orders quickly, efficiently, array of logistics services. Ningbo. Four 5,500-TEU vessels will and ergonomically. u www.focussouth.com ✆ 877-362-8756 be deployed in the service, an upgrade u www.viastore.com ✆ 585-421-8562 Ridge Property Trust and BNSF Railway WHAT’S NEW: A planned 2,000-acre business park in Illinois. THE VALUE: Ridge Property Trust and BNSF Railway Company have signed a Memorandum of Understanding for Ridge to develop a 2,000-acre, mas- ter-planned business park in Will County, Ill. The project, RidgePort Logistics Center-Chicago, will ulti- mately consist of more than 20 million square feet of industrial distribution space and rail-served industrial buildings. u www.rptrust.com ✆ 773-695-1250 University of Houston WHAT’S NEW: The Center for Logistics and Transportation Policy. THE VALUE: As an outgrowth of its Supply Chain and Logistics Technology degree, the University of Houston’s College of Technology has August 2007 • Inbound Logistics 71 CALENDAR YOUR LOGISTICS DATEBOOK Sept. 10-13, 2007, Military Logistics conference to network with and learn ranty management. Sit in on in-depth Summit, Adelphi, Md. IDGA’s Military from global supply chain leaders. More panel discussions and presentations Logistics Summit brings together logis- than 100 logistics vendors will also be by reverse logistics professionals from tics thought leaders and decision-makers on hand to demonstrate their products OEMs, ODMs, branded companies, to discuss the latest implementation and services in the “demo alley.” retailers, and academia. strategies and program initiatives to 800-817-9083 510-440-8565 ensure the fl exibility and preparedness www.iscea.com www.rltshows.com of the U.S. military’s future. 800-882-8684 Sept. 24-27, 2007, LogiChem 2007, Oct. 21-23, 2007, APICS International www.militarylogisticssummit.com Scottsdale, Ariz. LogiChem, the lead- Conference & Expo, Denver, Colo. ing chemical logistics and supply chain This year’s conference focuses on the Sept. 17-19, 2007, LogiPharma 2007, conference, shows you how to struc- importance of vision as it pertains to Philadelphia, Pa. LogiPharma presents ture effi cient end-to-end supply chains individuals, organizations, and the three days of useful knowledge-sharing to achieve excellence and exploit global industry. Attendees can choose from and ideas exchange on the challenges opportunities; effectively streamline and more than 100 educational sessions and issues surrounding pharmaceutical connect your global inventory man- covering a variety of topics that are rel- supply chain management. LogiPharma agement systems; develop data-rich evant to the issues facing professionals 2007 kicks off with the Distribution and and highly visible supply chains for today and in the future. From industry Transportation Management Forum on adaptability to unforeseen events; and standards to new advancements, there’s Sept. 17, followed by the Pharmaceutical collaborate with suppliers and customers something for everyone, regardless of Supply Chain Summit on Sept. 18-19. for increased forecasting accuracy and career level or industry. 888-482-6012 responsiveness to changes in demand. 888-889-4674 www.logipharma.com 888-482-6012 www.apics.org www.wbresearch.com/logichemusa Sept. 18-19, 2007, IDTechEx RFID Oct. 21-24, 2007, CSCMP 2007, Europe, Cambridge, UK. IDTechEx RFID Oct. 3-4, 2007, Benchmark NOW!, Philadelphia, Pa. This year’s event fea- Europe, now in its eighth year, covers Chicago. Attend this unique two-day tures new speakers, fresh topics, and fast-growth RFID sectors, and offers full session geared toward distribution all the latest information every sup- technology analysis and unrivaled mar- executives and you’ll walk away with ply chain professional needs to know. ket insight. Leading RFID users such a strategic performance plan for your And don’t miss keynote speaker Carly as Sony, Ahold, Manchester Airports company based on benchmark compar- Fiorina, former Hewlett-Packard CEO. Group, CityLink, BP, Marks & Spencer, isons. This fast-paced course teaches the 630-574-0985 Hong Kong Airport, and many oth- “how” and “what” of benchmarking. http://cscmp.org ers share their insight and experience. Either bring your company data so you Explore the full range of technologies – can actively apply a real benchmarking Oct. 29-31, 2007, Parcel Forum, from smart tickets and cards to real-time effort for your company, or mock data Rosemont, Ill. The 5th Annual Parcel locating systems and sensor networks. will be provided if you prefer to learn Forum is the only event focused on cov- +44(0)1223-813703 the process to apply later. ering the entire small-shipment supply www.idtechex.com/rfi deurope 630-990-0001 chain and the one place where pro- www.werc.org fessionals who share a common bond Sept. 20-21, 2007, Supply Chain & can come together and get a fi rsthand Logistics Conference and Exposition, Oct. 2-4, 2007, Reverse Logistics look at where the industry is going, and Dubai, United Arab Emirates. Hosted Association Conference & Expo, more importantly, how to get there fi rst. by the International Supply Chain Singapore. What better way to network Attendees will get the unique opportu- Education Alliance, this year’s expo- in the reverse logistics and aftermarket nity to look “under the hood” of leading sition takes place in the fast-growing supply chain than with a community companies to learn the secrets of their logistics and transportation hub of of worldwide professionals? This con- successful small-shipment strategies. Dubai. Managers from major multi- ference provides an inside look at topics 203-378-4991 national organizations can attend the relevant to service logistics and war- www.parcelforum.com 72 Inbound Logistics • August 2007 Intermodal Expo & TransComp Join us this November for the 25th anniversary of the Intermodal Expo and the TransComp Exhibition, the year’s most valuable transportation industry event. November 11-13, 2007 in Atlanta, the South’s most dazzling city, at the Georgia World Congress Center. LIMITED EXHIBIT SPACE AVAILABLE! Visit the web site, www.freightexpo.net, for additional information and an updated floor plan, or call E.J. Krause & Associates at (301) 493-5500. For more information contact: Intermodal Association of North America The National Industrial Transportation League 866-438-3976 703-524-5011 [email protected] [email protected] www.intermodal.org www.nitl.org The Intermodal Expo and TransComp are held in cooperation with NITL's 100th Annual Meeting, IANA's Annual Membership Meeting, and TIA's Fall Meeting. INBOUNDCLASSIFIED UNITED STATES HISPANIC CHAMBER OF COMMERCE Do You have the Technology to Compete? Bridging Plan to Attend Commerce • If you had the right freight and warehouse software tools in AMONG THE AMERICAS this Historic Event! place, could you grow your business? :PVS1SPmUT Meet representatives from • Multi-modal, multi-station, worldwide, web and browser, Corporate America, leading U.S. e-mail alerting, easy to implement, customer accessible 24/7. 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Delivery available.Tire test data is available upon request. F.E.T. And any applicable taxes are not included in above prices. 74 Inbound Logistics • August 2007 Join us for supply chain’s ™ premier event! NO REGISTRATION RATE INCREASE! You pay 2006 rates in 2007! Things To Do: The 2007 CSCMP Annual Conference kicks off on October 21st in Philadelphia. Join your colleagues in this historic city and take advantage of all that CSCMP 2007 has to offer! See what’s new this year—new speakers, fresh topics, and all the latest Register information every supply chain professional needs to know. And, with no registration rate increase from today! 2006, it’s that much easier for you to attend! What did last year’s conference attendees have to say about their Don’t miss keynote speaker experiences? Carly Fiorina “It would be difficult to find a more cost- Former Hewlett-Packard CEO effective way to interact with so many clients and colleagues, not to mention the educational value of the various tracks.” “This conference was well beyond my expectations. With the constantly changing business environment, it’s important to hear new ideas regularly.” RESOURCE 08.07 CENTER INBOUND LOGISTICS WORKS FOR YOU! 3PLs save you money by matching the mode to your deadline and budget. ■ Averitt pg. 13 www.shiplynden.com 888-596-3361 No two supply chains are alike; that’s why Averitt approaches them all the same way. First it ana- lyzes the way your goods and information fl ow, ■ Maersk Logistics pg. 22 then determines how to improve it. Averitt creates Maersk keeps your cold chain intact by carefully supply chain solutions that are uniquely yours. monitoring container temperatures, clearing cus- toms, and managing fumigation and other proce- www.averittexpress.com 800-AVERITT dures while providing the best cold storage and distribution where you need it. ■ BNSF Logistics pg. 3 www.maersklogistics.com 973-514-5187 With expansive knowledge and integrated technol- ogy systems, BNSF Logistics puts your logistics pieces in place so you can focus on business. ■ National Retail Systems (NRS) pg. 47 National Retail Systems (NRS) offers the power For a specifi c www.bnsfl ogistics.com 877-853-4756 supply chains need. NRS is proud of what it does response, contact for many of the world’s largest retailers. these advertisers ■ CRST Logistics pg. 7 www.nrsonline.com 877-345-4-NRS directly. Please tell Get more cost-cutting options, more fl exible ship- them you saw their ad in ping, more customer service, and more roads to Inbound Logistics. success with CRST Logistics. ■ PSS Warehousing & Transportation pg. 12 PSS offers a world-class network of strategically www.crstlogistics.com 800-736-CRST located distribution centers so you can position For general inventory within minutes of your clients’ door. ■ FMI International pg. 50 questions about www.pssdistribution.com 732-274-1333 particular industry FMI’s experienced logistics professionals help segments, use retailers develop the most effi cient, cost-effective supply chains. ■ Ruan pg. 43 the card between Ruan is more than just a nationwide www.fmiint.com 732-750-9000 pages 8-9 and transportation company. It’s an advocate for pages 72-73. your bottom line. Whether your solution calls for ■ LeSaint Logistics pg. 37 logistics, warehousing, intermodal, cross-docking, Looking for a logistics provider that knows the or virtually anything else in between, Ruan can For faster service, retail industry? Turn to LeSaint Logistics. LeSaint move your supply chain forward. go online: can hit the ground running with the operational inboundlogistics.com/rfp knowledge, system fl exibility, and service perfor- www.ruan.com 866-RUAN-NOW mance levels critical to the industry, while improv- ing your bottom line. ■ Ryder pg. 19 www.lesaint.com 847-783-4940 Name your product, and Ryder will customize a supply chain for it. Unmatched experience, fl exi- bility, and expertise make Ryder the one to turn to ■ Lily Transportation Corp. pg. 49 all over the globe. Many well-known companies have already come to Lily Transportation for their dedicated logistics www.ryder.com 888-88-RYDER needs. Trust the company named after Mom. www.lily.com 800-248-LILY ■ TMSi pg. 25 TMSi is your single source for distribution and warehouse support services, engineering services, ■ Lynden pg. 27 dedicated contract carriage, freight management, When it comes to moving your shipments to, from, and warehouse and transportation management. or within Alaska, all transportation companies are not alike. Lynden’s Dynamic Routing service can www.tmsilog.com 603-373-7235 76 Inbound Logistics • August 2007 Use our Resource Center and let the information you need fi nd you. Career Development/Education ■ Pilot pg. 17 When you need to track down the fastest route to ■ Lion Technology pg. 71 anywhere, Pilot’s CoPilot online shipping naviga- Lion’s unique online hazmat training brings your tor helps you get the job done. team up to speed on DOT regulations. www.pilotair.com 800-HI-PILOT www.lion.com/hazmat 888-546-6511 ■ Velocity Express pg. 11 ■ Baruch College pg. 69 V-Trac, a proprietary, activity-based shipment Earn a certifi cate in international trade from tracking system from Velocity Express ensures Baruch’s Weissman Center for International that every unique package is delivered to the right Business and the Division of Continuing and destination at the same time. Every time. When Professional Studies, N.Y. Certifi cates include you need things to go right at retail, you can’t go Import/Export Trade Operations; Customs Broker wrong with Velocity Express. License Preparation, and more. www.velocityexpress.com 888-839-7669 www.baruch.cuny.edu/caps 866-399-1529 For a specifi c Lift Trucks response, contact Events these advertisers ■ Kalmar pg. 57 directly. Please tell ■ CSCMP pg. 75 When it comes to the bottom line, Kalmar fork- them you saw their ad in The 2007 CSCMP Annual Conference kicks off lifts will give you the lowest possible lifetime cost. Inbound Logistics. Oct. 21, 2007, in Philadelphia, with new speakers, With a full range of quality forklifts for loads up to fresh topics, and the latest information every 110,000 pounds, it’s easy to fi nd a Kalmar forklift supply chain professional needs to know. that fi ts your needs today, and for the future. For general http://cscmp.org 630-574-0985 www.kalmarind-northamerica.com 888-229-6300 questions about particular industry ■ National Industrial Transportation League pg. 73 ■ Raymond pg. 55 segments, use NIT League’s 100th Annual Meeting and Thousands of users get more uptime and lower the card between Transcomp 2007 conference takes place Nov. 9-14, costs with high-performing Raymond lift trucks. pages 8-9 and in Atlanta. See the latest products, services and They depend on the powerful Models 4100 and pages 72-73. technology applications designed to enhance your 4200 trucks to fi t their applications and help company’s profi tability. operators do more on each shift. Put Raymond versatility to work for you. For faster service, www.nitl.org 703-524-5011 go online: www.raymondcorp.com 800-235-7200 inboundlogistics.com/rfp Expedited Air/Ground ■ TCM Lift Trucks pg. 53 ■ DHL Global Forwarding Cover 4 Regardless of capacity, TCM’s forklifts are reli- With unlimited service combinations, plus a host able, powerful, and productive. And its competi- of value-added benefi ts from cargo insurance tive pricing helps deliver maximum profi tability to to security management, you can rest assured your bottom line. that however large your shipment DHL Global Forwarding will always deliver a solution, both www.tcmusa.com 866-216-7840 locally and globally. www.dhl-usa.com 800-426-5962 Logistics IT ■ Sterling Commerce pg. 31 ■ FedEx Cover 2-pg. 1 Only Sterling Commerce has business solutions Seventy-eight FedEx drivers are going to the designed specifi cally to adapt to global transpor- National Truck Driving Championships after tation demands. See how to knock down the barri- winning fi rst-place honors in their state. They are ers to growth with Sterling Commerce. all in the driver’s seat; well done! www.sterlingcommerce.com 800-299-4031 www.fedex.com 800-GO-FEDEX August 2007 • Inbound Logistics 77 RESOURCE 08.07 CENTER INBOUND LOGISTICS WORKS FOR YOU! Real Estate Logistics Trucking ■ USAA Real Estate Company Cover 3 ■ Con-way Truckload Services pg. 5 Don’t break ground on a new logistics project Con-way Truckload Services provides shippers without USAA Real Estate Company. Let USAA be exactly the right equipment to the right location your capital partner on your next development at the right time: 53-foot dry vans, fl atbeds, reef- transaction. ers, specialized equipment, intermodal service – www.usaarealco.com 877-256-8722 whatever it takes to get the job done. For regional, inter-regional, transcontinental, and intermodal services tailored to your needs, call Con-way. Ports www.con-way.com/il1 800-763-2222 ■ The Port of Baltimore pg. 45 Closest in proximity to two-thirds of the U.S. popu- ■ Torus Freight Systems pg. 64 lation; connected to major markets by an excellent Let Torus Freight Systems connect your business highway network; and home to two Class 1 rail- with Canada. Torus serves all points between the For a specifi c roads, the Port of Baltimore is your best choice. United States and Canada - direct. response, contact www.marylandports.com 800-638-7519 these advertisers www.torustraffi c.com 800-463-3102 directly. Please tell them you saw their ad in Temperature-Controlled Logistics Trucks Inbound Logistics. ■ Atlas Cold Storage pg. 41 ■ Ford pg. 14-15 For integrated refrigerated warehousing, distribu- Ford wishes someone would pass a law prohibiting tion, transportation, and logistics services, turn to For general guys with desk jobs from using the phrase “tough Atlas Cold Storage. As a member of the Eimskip questions about day at work.” See how hard Ford trucks can work group of companies, Atlas provides door-to-door particular industry for you. global supply chain solutions via ocean, land, and segments, use air, for poultry producers and retail manufacturers. www.commtruck.ford.com 800-392-3673 the card between pages 8-9 and www.atlascold.com 888-642-3333 pages 72-73. INDEX For faster service, ADVERTISER PAGE ADVERTISER PAGE go online: Atlas Cold Storage 41 Maersk Logistics 22 inboundlogistics.com/rfp Averitt 13 National Industrial Transportation League 73 Baruch College 69 National Retail Systems (NRS) 47 BNSF Logistics 3 Parcel Forum 07 9 Con-way Truckload Services 5 Pilot 17 CRST Logistics 7 The Port of Baltimore 45 CSCMP 75 PSS Warehousing & Transportation 12 DHL Global Forwarding Cover 4 Raymond 55 FedEx Cover 2 Ruan 43 FMI International 50 Ryder 19 Ford 14-15 Sterling Commerce 31 Kalmar 57 TCM Lift Trucks 53 LeSaint Logistics 37 TMSi 25 Lily Transportation Corp. 49 Torus Freight Systems 64 Lion Technology 71 USAA Real Estate Company Cover 3 Lynden 27 Velocity Express 11 78 Inbound Logistics • August 2007 Choosing a 3PL Partner Just Got Easier. Create a database of prospective partners…prepare your Request for Proposal list…build your knowledge base… with Inbound Logistics’ FREE online RFP service. The 3PL RFP is your opportunity to have third-party logistics experts look at your specifi c outsourcing challenges and needs, and give you free, no-obligation advice, solutions, and information specifi c to your request. Whether you need to outsource your entire logistics operation, or just one segment of it, choosing the right third-party logistics partner can be a complex challenge. In response to reader requests, Inbound Logistics offers an online 3PL RFP tool to help simplify your selection process. Get started now at inboundlogistics.com/rfp THE SUPPLY CHAIN IN BRIEF THELAST MILE Ro-Ro Roster f your overseas cargo has Top 20 US Top 20 World wheels – trailers, forklifts, Ports of Call, 2005 Ports of Call, 2005 I cars — it likely moves on a Port Calls % of Total Port Calls % of Total Roll-on/Roll-off (or Ro/Ro) ship. Baltimore 717 13 Zeebrugge 1,915 3.5 Built-in ramps allow cargo New York 573 10 Rotterdam 1,234 2.3 to effi ciently roll on and roll off the vessel when it's Jacksonville 437 8 Singapore 1,204 2.2 docked in port. LA/Long Beach 345 6 Yokohama 1,152 2.1 Overseas, Belgium’s Miami 318 6 Antwerp 992 1.8 port of Zeebrugge leads Tacoma 283 5 Nagoya 950 1.8 in total number of Ro/Ro Brunswick 219 4 Immingham 898 1.7 vessel calls, according to Port Hueneme 218 4 Bremerhaven 882 1.6 the U.S. Department of Transportation’s Maritime San Juan (PRI) 214 4 Leghorn 860 1.6 Administration. Columbia River 199 4 Southampton 849 1.6 The Port of Baltimore is Savannah 195 3 Lubeck 834 1.5 tops in the United States, Charleston 194 3 Gothenburg 776 1.4 handling 717 Ro/Ro vessels in San Francisco 191 3 London 756 1.4 2005. The port takes its Philadelphia 189 3 Baltimore 717 1.3 Ro/Ro leadership role seri- Houston 183 3 Toyohashi 599 1.1 ously. Every year, it hosts a Ro/Ro Rodeo, which offers San Diego 178 3 Ulsan 597 1.1 training in the operation of Honolulu 167 3 New York 573 1.1 the newest Ro/Ro cargo types Virginia Ports 160 3 Tees 552 1.0 moving through the port. Port Everglades 105 2 Piraeus 502 0.9 Anchorage 94 2 Barcelona 501 0.9 Top 20 Ports 5,179 91 Top 20 Ports 17,343 32.1 80 Inbound Logistics • August 2007 ¼ ?=BEE FHE:K9JI" 9EHF$"A7JO" J;N7I ?]beeFheZkYji9ehfehWj_edi[b[Yj[Z9EH;H[Wb;ijWj[BB9WdZKI77H[Wb;ijWj[ 9ecfWdojeZ[l[bef_ji/'*"'/+igkWh[\eejcWdk\WYjkh_d]"be]_ij_YiWdZ[n[Ykj_l[ ^[WZgkWhj[hid[Wh>ekijed$ :[if_j[j^[i_p[e\j^[jhWdiWYj_ed" j^[j[Wccel[Zgk_Yabo jefhel_Z[?]beem_j^\_dWdY_Wbh[iekhY[iWdZYh[Wj_l[iebkj_edijefhe`[Yj_iik[i$ >\_]^ ^RO ObZO\^] K^ ?=++ 9PPSMO aK\ORY_]O NS]^\SL_^SYX KXN \O^KSV NO`OVYZWOX^ .OL^ KXN O[_S^c MYWWS^WOX^] Z\Y`SNSXQ _Z ^Y YP \O[_S\ON MKZS^KV 0VObSLVO MYVVKLY\K^SYX aS^R ObS]^SXQ ZK\^XO\] KXN SXZVKMO ^OKW WOWLO\] MOVING YOUR BUSINESS FORWARD. GLOBALLY. DHL Global Forwarding consistently meets the ever changing needs of businesses both large and small. As you’d expect from the market leader, our extensive product range lets you balance both speed and financial efficiency, enhancing your commercial advantage each and every day. With unlimited service combinations including air and ocean freight, plus a host of value-added benefits from cargo insurance to complete security management, you can rest assured that however large your shipment, we’ll always deliver a solution both locally and globally. Move your business forward today – contact DHL on 1-800-426-5962