November 2011 | Digital Issue
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SPECIAL SUPPLEMENT H.O.W. HELP ON THE WAY YU O R GUIDE to LOGISTICS BEST PRACTICES www.inboundlogistics.com THEMAGAZINEFORDEMAND-DRIVENLOGISTICS•NOVEMBER2011 ALSO IN THIS ISSUE: Who’s Who in Airfreight Forwarding Curing Healthcare Supply Chain Costs 3PL CHALLENGES? FREE EXPERT SOLUTIONS www.inboundlogistics.com/3pl RSC-RockClimbing Ad INBOUND LOG_July_2011:RSC-107 Skate-Tractor Inbound Log 5/11/11 12:08 PM Page 1 Achieve Peak Performance. Rise To The Challenge. Step Precisely. Know The Terrain. Execution Is Everything. SUPPLY CHAIN • DISTRIBUTION • TRANSPORTATION • CONTROL TOWER ©2011 Ryder System, Inc. All rights reserved. 1-888-887-9337 www.ryderscs.com FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl Ryder (QR Code).indd 1 11/7/11 4:08 PM THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS WHO’S WHO IN AIRFREIGHT FOrwardING page 43 November 2011 • Vol. 31 • No. 11 INSIGHT INPRACTICE 4 CheckING IN A new home delivery service turns READERPROFILE RyanGellert:ClimbingHigh consumers into inbound logistics practitioners. Ryan Gellert, vice president, supply chain management, at mountain 14 sports products company Black Diamond Equipment views helping 6 IN PerspectivE launch a new division in Asia as a pinnacle of his career. Supply chain management professional certifications CASEBOOK GettingaHandleonTransportationCosts help identify job candidate Plumbing fixture manufacturer TOTO Global Group taps a third-party skills, writes Associate Editor 79 logistics provider to benchmark freight spend. Perry A. Trunick. 8 Dialog Readers talk back. 12 10 TIPS INdEPTH Increasing warehouse productivity. 28 Viewpoint ExpeditedDeliveries: When it comes to freight TheFastandtheFurious 34 forwarders, are multiple partners Technology helps turbo-charged better than one? expedited carriers move goods 30 IT Matters for shippers with an extreme RFID technologies provide valuable supply chain visibility. need for speed. 32 SC Security Strengthening international air Who’sWhoin cargo security starts with identity AirfreightForwarding 43 verification and data analysis. Inbound Logistics’ annual guide 96 LAST MILE: CARGO THEFT helps shippers explore airfreight LEAves PresidENT partners that meet their unique ObAMA Speechless requirements. November 2011 • Inbound Logistics 1 FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl EXPEdITEd dELIveries page 34 THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS November 2011 • Vol. 31 • No. 11 INFO INdEPTH 82 WEb_CITE CITy HealthcareSupplyChainCosts: 86 WHITEPAPER dIGEST AToughPilltoSwallow 49 88 IN bRIEF Organizations all along the healthcare supply 92 CLASSIFIEd chain are taking a dose of smarter procurement and logistics practices to cure high costs and treat 93 RESOURCE CENTER ailments in other areas of the business. Special Supplement H.O.W. INFOCUS Need tips on evaluating a 3PL partner, 57 17 NOTEd improving maritime cargo security, or selecting an Alaskan airfreight carrier? You’ve come to 20 TRENdS the right place. Find out H.O.W. to handle these Urbanization shapes supply chain innovation…Ford focuses on challenges and others in our annual compilation green…Great Lakes shipping of logistics best practices. remains relevant to industry. Airportfolio SettoSoar The global supply chain relies on airport 73 facilities with the infrastructure and capacity to handle shipments safely and efficiently. The six U.S. airports profiled here are first-class all the way. 24 GLObAL Frankfurt Airport night flights ban hurts cargo carriers…Thai floods raise supply chain concerns…Air Healthcare SUPPLy cargo association calls for review CHAIN Costs of emissions regulations. page 49 2 Inbound Logistics • November 2011 FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl WHERE SUPPLY CHAIN SOLUTIONS ARE MOVING To move your business forward, you need to stay on top of the latest technologies and innovations for the supply chain, logistics and distribution industries. And there’s no better place to do it than at MODEX 2012, the industry’s newest expo designed to help you: • See, fi rsthand, the latest solutions from over 500 world-class suppliers • Connect and network with industry peers • Learn the latest trends and technologies from leading experts in three keynote addresses, over 70 show-fl oor seminars and collocated educational partner events • Gain valuable insights into manufacturing and distribution solutions for all areas of the supply chain At MODEX 2012, you will see solutions and fi nd answers. Attending MODEX 2012 is your best opportunity to make connections that will position your company for future success. Now is the time to streamline your operations, improve visibility, maximize effi ciency and cut costs. Now is the time for MODEX 2012 – be there! REGISTER TODAY FOR MODEX 2012 Visit www.modexshow.com to learn more and register for free admission to the MODEX 2012 exhibits and educational conference. Sponsored by: Find us on: Use your smartphone code reader to learn more: FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND 10124-MHIARECEIVE MDX_Attend_Supply_IL.indd FREE NO 1OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3p9/13/11 l 1:53 PM Modex_(placed)ad.indd 1 9/15/11 12:25 PM CHECKINGIN Vol. 31, No. 11 November 2011 THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS www.inboundlogistics.com STAFF PubliSher Keith G. Biondo [email protected] ediTor Felecia J. Stratton [email protected] ASS ociate MAnAging EdiTor Catherine Harden [email protected] Senior wriTer Joseph O’Reilly [email protected] @e hom With ASS ociate EdiTor Perry A. Trunick [email protected] demand-driven Logistics cno TribuTing ediTorS Merrill Douglas • Dan McCue recently got into a discussion with a reader about the most important Amy Roach Partridge • Deborah Ruriani developments in logistics during the past decade. “Mainstreaming of the creATiVE DIRECTor Michael Murphy i term ‘logistics’ by UPS ranks right up there,” he said. [email protected] “Civilians” just don’t understand what you do, the complexity of the chal- SENIOR DESigner Mary Brennan [email protected] lenges you face, or the intelligence, dedication, and hard work you put into PrinT/web ProducTion MAnAger Shawn Kelloway the seamless – and almost magical, instantaneous – appearance of whatever [email protected] product they want when they want it. But that is changing. PublicT A ion MAnAger Sonia Casiano Remember the scene in The Wizard of Oz when Toto reveals the truth [email protected] behind the magic and the Wizard commands, “Pay no attention to the man circulation DirecTor Carolyn Smolin behind the curtain!”? UPS, with its ubiquitous “We Love Logistics” commer- SAleS OFFiceS cials, has pulled back the curtain and introduced the consuming public to PUBLISHER: Keith Biondo (212) 629-1560 • FAx: (212) 629-1565 the importance of logistics in their lives and the economy. [email protected] Readers of this magazine know how important it is to use speed and reli- W/Mest IdWESt/SoUthwest: Harold L. Leddy ability to hit delivery windows. It’s important to consumers, too. (847) 446-8764 • FAx: (847) 305-5890 [email protected] UPS is trying to mainstream that concept with a new service called UPS My Marshall Leddy Choice. The service, started on Oct. 3, 2011, “helps avoid the disappointment (763) 416-1980 • FAx: (847) 305-5890 and hassle of missing a home delivery by empowering the consumer to take [email protected] control of UPS deliveries the day before arrival,” according to UPS. Demand- MS IdWE t/EconoMIc dEvELoPMEnt: Jim Armstrong (314) 984-9007 • FAx: (314) 984-8878 driven at home? [email protected] UPS My Choice offers consumers the same type of control inbound logis- SoUtheast: Gordon H. Harper tics practitioners require by “increasing the likelihood of a successful delivery (404) 350-0057 • FAx: (404) 355-2036 [email protected] on the first attempt by providing delivery alerts, specific delivery time frames, MoBILE, AL: Peter Muller reroute options, visibility tools, and electronic delivery release.” All of this (251) 343-9308 • FAx: (251) 343-9308 can be accomplished via desktop, tablet, or smartphone. [email protected] There are two levels of service, My Choice and My Choice Premium, both noRtHEASt: Rachael Sprinz (212) 629-1560 • FAx: (212) 629-1565 with fees attached. Phone, email, or text alerts arrive one day in advance, [email protected] providing the confirmed delivery window (two or four hour). Consumer Free SubScriPTionS “inbound logisticians” can even reroute shipments in transit – for example, to www.inboundlogistics.com/free the office, another residence, or the local UPS store for pickup later. Inbound Logistics supports sustainable best Given the continued growth of direct-to-home shipments, despite the practices. Our mission is rooted in helping companies match demand to supply, eliminating economy, UPS expects the service to grow. It is already popular with retailers waste from the supply chain. This magazine is printed on paper sourced from fast growth such as QVC, “because it allows consumers to get their deliveries on the first renewable timber. attempt,” says UPS Chief Marketing Officer Alan Gershenhorn. No doubt that Inbound Logistics welcomes comments