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September 2011 SEPTEMBER 2011 WWW.LOGISTICSMGMT.COM ® LM EXCLUSIVE 20TH ANNUAL MASTERS OF LOGISTICS Navigating transportation’s Bermuda Triangle Page 26 + SPECIAL WEBCAST September 29, 2011 • 2:00 p.m. logisticsmgmt.com/masters11 EnviroScent’s perfect 3PL partnership 34 De ning visibility 40 Automation’s evolving role 48 SPECIAL SUPPLEMENT 54S EU logistics: Meeting new challenges SPECIAL REPORT: TOP 25 FREIGHT FORWARDERS 66S Fast forward toward recovery LM1109_Cover.indd 1 9/1/11 1:27 PM FREE Industry Resources Stay connected between issues. Email Newsletters Online Like us on Facebook Magazine Follow us on Twitter Customer Service RSS Feeds White Blogs Webcasts Papers P.O. Box 1496 • Framingham, MA 01701 SAN FRANCISCO, CA 6:42 P.M. We’ll show you the way. TransporTaTion s ervices p rojecT ManageM enT Dis TribuTion s ervices Managing a supply chain is complex. And your business is unique. Let UniGroup Worldwide Logistics design a solution tailored to your needs. We’ll show you the way to a more efficient logistics solution. UniGroup Worldwide Logistics is a new name, but the foundation of the company is well-established. It is built on the heritage of United Van Lines and Mayflower Transit, trusted providers of reliable specialized transportation and logistics services for more than 50 years. Based on a network of 1,300 service centers in 146 countries, we are a single source for customized supply chain solutions. Whether you are moving cargo domestically or managing an entire supply chain, UniGroup Worldwide Logistics manages a global network of resources to show you the way to seamless, dependable and efficient solutions. For more information, call (877) 545-8080 or visit us at ugwwlogistics.com UniGroup Worldwide Logistics, LLC LM0911_Ads.indd 2 8/30/11 3:50 PM SAN FRANCISCO, CA 6:42 P.M. We’ll show you the way. TransporTaTion s ervices p rojecT ManageM enT Dis TribuTion s ervices LM0911_Ads.indd 1 8/30/11 3:50 PM If it were easy, everyone would do it. “No carrier is perfect – but they should be accountable. That’s why I use Saia. When Jeff and I review my Customer Service Indicators® each month he addresses any issue up front. He explains how it was resolved and we discuss areas for improvements on both sides. I like knowing he’s not here to sell me… he doesn’t have to.” John Greason Logistics Manager, Houston, TX Saia’s Customer Service Indicators – Six key metrics that help improve the quality of our service to you, month after month. “Saia’s Customer Service Indicators are powerful tools. They’re for shippers who are serious about creating a productive partnership with their carrier. If I’m not using them to help improve John’s shipping effi ciency, I’m not helping either of us.” Now with our newest measurement – Exception-free Deliveries – we’re taking the most comprehensive commitment in the industry a step further. 1.800.765.7242 • www.saia.com Jeff Davidson Saia Account Representative, Houston, TX Customer Service Indicators On-time Pick-up • On-time Delivery • Exception-free Delivery • Claims-free Service • Invoicing Accuracy • Claims Settled within 30 Days LM0911_Ads.indd 2 8/30/11 3:50 PM Get your daily fix of industry news on logisticsmgmt.com AN EXECUTIVE SUMMARY OF INDUSTRY NEWS n Retailers remain positive. According to the retiree health benefits continue to hinder the monthly Global Port Tracker report released United States Postal Service (USPS). For its by the National Retail Federation (NRF) and fiscal third quarter, the USPS has a net loss Hackett Associates, import cargo volume at of $3.1 billion, with total mail volume falling the nation’s major retail container ports will to 39.8 billion pieces compared to 40.9 billion remain below last year’s levels for the remain- for the same period in 2010. Net losses for the der of the summer before seeing year-over-year nine months that ended June 30 amount to $5.7 gains this fall. “Cargo numbers have been billion in 2011 compared to $5.4 billion in 2010. down this summer, but that’s a reflection of last USPS officials said that even with significant year’s unusual shipping patterns more than the cost reductions and revenue growth initiatives, economy,” said Jonathan Gold, NRF VP for sup- current financial projections indicate that the ply chain and customs policy. “The economy Postal Service will have a cash shortfall and continues to face challenges, but job growth will have reached its statutory borrowing limit has been steady and retailers have been add- by the end of the fiscal year. ing jobs themselves as sales improve. Cargo figures for this fall clearly show that retailers n California exports rise. While the U.S. econ- are expecting a healthy holiday season.” omy may be languishing in inertia, California exporters racked up their 20th consecutive n Old Dominion opens up the ‘Vault.’ Less-than- month of vigorous growth in June. Export ship- truckload (LTL) transportation services pro- ments by California companies in June were vider Old Dominion Freight Line (ODFL) is get- valued at $13.83 billion, a gain of 13 percent ting into the third-party logistics (3PL) game, over the $12.25 billion reported in the same announcing last month that it has rolled out month last year, according to an analysis Vault Logistics, its new 3PL offering. ODFL said by Beacon Economics of foreign trade data that Vault unites several existing ODFL busi- released by the U.S. Department of Commerce. ness units into an independent operating divi- “Adjusting for inflation, California’s export sion comprised of warehousing, business solu- trade has firmly returned to its pre-recession tions, fleet and warehouse dedicated services, peaks,” said Jock O’Connell, Beacon Econom- and truckload brokerage units. Vault Logistics ics’ International Trade Adviser. “More impor- President Michael Venegoni said that the focus tantly, on a seasonally-adjusted basis, Cali- of Vault “is to understand its customers and fornia’s export trade remained on an upward engineer solutions that are customized to solve trajectory through the second quarter of 2011, specific business challenges.” despite the economic and financial tribulations several of our leading trading partners have n Solid logistics management pays off for been enduring,” O’Connell said. Wal-Mart. While diesel prices headed north throughout most of the first half of the year, Bill n U.S. exports slump. Things were less rosy Simon, president and CEO of U.S. operations at for the rest of the nation, however. President Wal-Mart, said that the company’s solid trans- Obama’s “National Export Initiative” of dou- portation and logistics management helped bling exports by 2015 took a significant hit last to ease the retailers pain at the pump. Simon month with the release of new figures by the explained that the Wal-Mart logistics team U.S. Department of Commerce. The report continued to drive routing and load efficiencies showed that U.S. exports of goods and services to minimize the “majority of headwinds associ- in June 2011 decreased 2.3 percent from May ated with rising diesel prices that impacted the 2011 to $170.9 billion. The monthly export value price of goods.” for U.S. consumer goods ($15 billion) was the highest on record. U.S. imports of goods and n USPS reports $3.1 billion loss. Financial services decreased 0.8 percent over this period struggles stemming largely from declining mail volumes and expenses related to future continued, page 5 >> September 2011 | WWW.LOGISTICSMGMT.COM LOGISTICS MANAGEMENT 3 LM1109_MngmtUpdate.indd 3 8/31/11 3:52 PM When it comes to transportation and logistics, Con-way helps you predict the future. The confi dence that things will go right — it’s what we offer our customers every day. With proven less-than-truckload, truckload and third-party logistics expertise and service excellence second to none, we deliver the reliability and certainty you need. When you work with Con-way, it’s easy to predict the future after all. Learn more about how we can ensure your success by putting Con-way’s companies to work for you — visit www.con-way.com. LM0911_Ads.indd 4 8/30/11 3:50 PM CWCM_14553_StopLights_LogMgmt_Print_Sept2011.FR.indd 1 8/16/11 11:34 AM Get your daily fix of industry news on logisticsmgmt.com continued to $223.9 billion, causing the U.S. trade deficit LaHood recently announced $417.3 million in to increase 4.4 percent since May 2011 to reach grants for projects including interstate main- $53.1 billion in June 2011. tenance, research, innovative bridge materi- als, and construction methods. LaHood said n Gasoline tax on the rocks? The federal gaso- these investments “will create jobs, increase line tax, which has not been raised since 1993 mobility, improve quality of life for all Ameri- and serves as the primary funding mechanism cans, and strengthen the national economy.” for national highway infrastructure repairs and The DOT said that the Federal Highway maintenance, is set to expire on September 30. Administration invited states to apply in June A New York Times editorial said that if the tax for federal funding from 14 grant programs. expires and does not get an extension of any kind, There were more than 1,800 applications, “it would bankrupt the already stressed Highway totaling nearly $13 billion—more than 30 Trust Fund, with devastating effects on the coun- times the funds available. try’s highways, bridges, mass transit systems and the economy as a whole.” While various pro- n Matson minimizes. In its quarterly state- posals have outlined ways in which the gasoline ment to investors, Alexander & Baldwin, Inc.
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