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New Order, New Opportunities on the Rise Page 28 logisticsmgmt.com ERP vs. best-of-breed 44 Expanding into emerging markets 48 Lift Trucks: Financing for July 2013 ® fl exibility 52 2013 STATE OF LOGISTICS New order, new opportunities on the rise Page 28 SPECIAL REPORT: Panama Canal expansion update 68S IT’S 10 O’CLOCK. DO YOU KNOW WHAT YOUR LIFT TRUCK IS DOING? iWAREHOUSE knows. For everything from compliance to warehouse optimization, your operations run smarter with iWAREHOUSE by Raymond®. As the industry’s most comprehensive fleet and warehouse optimization system, iWAREHOUSE automates truck and operator data-capturing. That means you get better productivity, less downtime and increased ROI. And, at the end of the day, a smarter warehouse. Run Better. Manage Smarter. Find out how at raymondcorp.com/iwarehouse. by Raymond Get your daily fix of industry news on logisticsmgmt.com management UPDATE AN EXECUTIVE SUMMARY OF INDUSTRY NEWS USPS remains committed to reducing topped the 1.0 mark since May 2010, when ship- financial burden. In a Webcast last month, ments moved above the 1.0 mark for the first United States Postal Service (USPS) Chief Finan- time since November 2008. And freight expen- cial Officer and Executive Vice President Joseph ditures at 2.383 were down 2.6 percent annually Corbett explained that the service’s financial and up 0.04 percent compared to April. The Cass outlook has “created a crisis of confidence” in Freight Index report observed how these mixed the eyes of the marketplace. He added that the results are an accurate reflection of the ongo- USPS “needs to, as quickly as possible, resolve ing stop and start nature of the economy, citing the issues underlying these losses and move declining employment and weak job creation, a forward from a position of financial strength and higher GDP than this time a year ago, a slowing continue to deliver mail in a quality way and gain manufacturing sector, eroding inventories, cou- the confidence of our customers and employees.” pled with increasing inventory-to-sales ratios and He explained that the USPS’ five-year plan, which increased container traffic at ports that’s in line was rolled out in 2012 and whose chief objec- with increased domestic shipments and up and tive is to reduce annual costs by at least $20 bil- down import and export activity. lion by 2015, is not stagnant by any stretch and that USPS’ efforts to become more efficient and Ag shipper’s survey. The results of the customer-focused are accelerating. Agriculture Transportation Coalition’s (AgTC) 2013 Ocean Carrier Performance Survey were FedEx set to retire selected aircraft. In a announced last month at the 25th Annual Meet- move geared to modernize its aircraft fleet and ing of the AgTC in San Francisco, with APL win- improve the global network of its FedEx Express ning top ranking. All annual survey responses segment, global transportation and parcel bell- were aggregated, and the individual responses wether FedEx said it has permanently retired or discarded, to ensure confidentiality of each ship- will accelerate the retirement of 86 aircraft and per’s response. This year’s survey was expanded 308 related engines. FedEx said that the aircraft to gain more insight into agriculture and forest and related engines being permanently retired products shippers who completed it, said Peter include: two A310-200 aircraft and four related Friedmann, executive director of the AgTC, add- engines; three A310-300 aircraft and two related ing that carriers were expected to be less tactical engines; and five MD10-10 aircraft and 15 related and more strategic in 2013. “Instead of looking engines. The company also said it will accelerate just to the next quarter, ocean carriers would do by several years the retirement of: 47 MD10-10 well to follow the railroads’ model of looking five aircraft and 172 related engines; 13 MD10-30 years out to the future,” said Friedmann. “Ocean aircraft and 55 related engines; and16 A310-200 carriers need to better understand the agriculture aircraft and 60 related engines. “We are modern- exporters’ business, the global demand for their izing our aircraft fleet by retiring older, less products, global competition for their exports, efficient, and less reliable aircraft and replacing and thus, have a better idea of the long term them with modern aircraft to build a fleet with demand for capacity.” higher reliability and better cost efficiency,” said David Bronczek, president and chief executive Panjiva reports strong global trade officer of FedEx Express. numbers. Data released by Panjiva, an online search engine with detailed information on global Mixed signals lead way for Cass report. suppliers and manufacturers, indicated that signs The most recent edition of the Cass Information of economic growth were prevalent. The firm Systems Freight Index showed that freight ship- reported that U.S.-bound waterborne shipments ments and expenditures were mixed. May ship- were up 8 percent annually in May and up 5 per- ments, at 1.132, were down 0.3 annually and cent compared to April. On a year-to-date basis, up 2.9 sequentially compared to April. May rep- Continued, page 2 resents the 34th consecutive month shipments WWW.LOGISTICSMGMT.COM JULY 2013 | LOGISTICS MANAGEMENT 1 Get your daily fix of industry news on logisticsmgmt.com management UPDATE AN EXECUTIVE SUMMARY OF INDUSTRY NEWS Panjiva said shipments are up 4 percent. The amount in a tightly constrained budget is a “posi- number of global manufacturers shipping to the tive step forward.” U.S in May was up 16 percent compared to May 2012 and up 5 percent compared to April. “I think Clean cargo imperative. As we’ve reported, these numbers are pretty good overall,” said Pan- sustainability strategies for leading ocean cargo jiva CEO Josh Green. “We have seen some sig- shippers include targets to dramatically reduce nificant fluctuation in these numbers from month carbon dioxide emissions from their global logis- to month, but the year-to-date shipment number tics networks and to prioritize working with like- is encouraging. Trade feels relatively healthy, and minded supply chain partners. BSR, a global the next interesting moment will be in the next consultancy with hundreds of international ship- month or two as corporate buyers start placing pers in its network, is advancing this mission their bets for the holiday season.” with its “Clean Cargo Working Group” (CCWG), an international business-to-business initiative TIGER grant funding remains in made up of leading cargo carriers and their cus- demand. The Department of Transportation tomers dedicated to environmental performance (DOT) said in June that applications for 2013 improvement in marine container transport. TIGER grants total more than $9 billion, which Registration is now open for the BSR Confer- crushes the $474 million DOT has allocated ence 2013 “The Power of Networks” that will for it. TIGER is short for the DOT’s Transporta- take place November 5-8 at the Hyatt Regency tion Investment Generating Economic Recovery Embarcadero in San Francisco. “We live in a net- (TIGER) program that has the objective to ensure worked world in which connections among busi- that economic funding is rapidly made available nesses, industries, and sectors are more power- for transportation infrastructure projects and that ful than ever,” said BSR President and CEO Aron project spending is monitored and transparent. Cramer. This round of TIGER nearly triples the $3.1 billion in funding doled out in the previous four rounds, Procurement pays. IBM recently reported which went towards 218 projects. DOT said that that companies with high-performing procure- during the previous four rounds, DOT received ment organizations are driving better bottom line more than 4,500 applications for TIGER, which results. According to the study, these organiza- cumulatively requested north of $105.2 billion for tions report profit margins of 7.12 percent as national transportation projects. compared to just 5.83 percent for companies with low-performing procurement organizations. Ports hope for reform. For the second Also, companies with top performing procure- year in a row, the U.S. House Energy & Water ment organizations report profit margins 15 Subcommittee, chaired by Rep. Rodney Frelin- percent higher than the average company—and ghuysen (R-NJ), has approved a $1 billion draw 22 percent higher margins than companies with from the Harbor Maintenance Trust Fund. The low performing procurement organizations. The money is for maintaining America’s deep-draft 2013 Chief Procurement Officer Study was con- navigation channels and harbors and is a part of ducted by the IBM Institute of Business Value the U.S. Army Corps of Engineers’ fiscal 2014 (IBV) and highlights the business impact that funding bill. If passed by the Senate and enacted Chief Procurement Officers (CPOs) can have on into law, this would be the largest regular annual a company’s competitive advantage and profit- appropriation for navigation maintenance. The ability. It explores how top-performing CPOs can bill by the House Appropriations Committee increase their influence over strategic business stated that, in prioritizing funding, the subcom- imperatives by driving efficiency and perfor- mittee chose to “invest in critical infrastructure mance, introducing innovative new processes projects to protect lives and property and support and uncovering new insight into supplier net- economic growth.” The American Association of works that have a real, measurable effect on the Port Authorities (AAPA) stated that this funding bottom line. Ⅺ 2 LOGISTICS MANAGEMENT | JULY 2013 WWW.LOGISTICSMGMT.COM One Contact, Multiple Solutions LANDSTAR’S GLOBAL & DOMESTIC TRANSPORTATION LOGISTICS SERVICES Truckload/LTL Rail Intermodal - 8,200 power units operated by - Contracts with major railroad Landstar business capacity owners transport and stack train operators - 14,000 pieces of trailing equipment - Competitive pricing on U.S.
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