November 2011 | Digital Issue

SPECIAL SUPPLEMENT H.O.W. HELP ON THE WAY Yu o r Guide to Logistics Best Practices www.inboundlogistics.com THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS • NOVEMBER 2011

ALSO IN THIS ISSUE: Who’s Who in Airfreight Forwarding Curing Healthcare Supply Chain Costs

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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 READER PROFILE Ryan Gellert: Climbing High 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 Getting a Handle on Transportation Costs 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 Expedited Deliveries: When it comes to freight 34 The Fast and the Furious 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’s Who in cargo security starts with identity 43 Airfreight Forwarding 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 Healthcare Supply Chain Costs: 86 WHITEPAPER DIGEST 49 A Tough Pill to Swallow 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 57 Need tips on evaluating a 3PL partner, 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 Set to Soar 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

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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 and submissions. Contact us at 5 Penn Plaza, NY, NY 10001, (212) 629-1560, Fax (212) 629-1565, e-mail: also helps with customer service, loss, and returns expenses. [email protected]. For advertising, reprint, or subscription information, call (212) 629-1560, or e-mail publisher@inboundlogistics. Businesses have sought to link demand signals to supply, and orient oper- com. Inbound Logistics is distributed without cost to those qualified in North America. Interested readers must complete and return the ations to support that logistics philosophy. Visibility technology such as this qualification card published in this issue, or may subscribe online at www.inboundlogistics.com/free. Subscription price to others: in North acts as a force equalizer, enabling companies, large or small, to have the con- America: $95 per year. Foreign subscriptions: $129. Single copy price: trol required to drive world-class supply chain operations. Now consumers No. Amer. $10, foreign $12, back issues $15. Periodicals postage paid at New York, NY, and additional mailing offices. have the power, too. The world is truly becoming our warehouse. n

4 Inbound Logistics • November 2011

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Studio#: 162143.3 CLIENT: Citibank Name WC OK Date CMT1001_BNS_C.indd File Name: Bleed: None Colors: 4C VENDOR: MUNDOCOM NY Art Dir: Kat Saoyen CMT1001 BNS C ”Brand New Space” APP: CS5 7” x 10” - Job Desc: Trim: INK: Creat. Dir: “Brand New Space” Media Type: Magazine Live: None FONTS: SluggerSans Copy Wrtr: - (Bold; Type 1) Issue Date: 12.2011 Scale Ratio: - Interstate (Regular; Type 1) Traffi c: Rich Look Interstate-Bold (Regular; Creation Date: 10-13-2011 5:02 PM Output % 100% True Type) Prod: Rich Look LINKS: c160626_C_ Last Modifi ed: 10-13-2011 5:23 PM Actual Size: - Comp_v5.jpg Acct. Mnger: Troy Bell BusCom_logoF.ai INBOUND LOGISTICS Inbound_Logistics.png Publication: Proofreader: Citibank:Volumes:Citibank:Mechanicals:2011:CMT:301-5838CMT1001:Fulfi llm File Location: Studio: Freelance ent:Collected Jobs:10.13.11.1701:CMT1001_BNS_C Folder:CMT1001_BNS_C. indd AE OK Rel: 162292_1C_v1 None JOB#: 301-5838CMT1001 BNS C ROUND #:1 Notes: INPERSPECTIVE BY Perry A. Trunick Associate Editor, Inbound Logistics [email protected]

Are You Certifiable? Deciding what role supply chain and logistics certifications and designations play in the hiring process is enough to drive you crazy.

any fields quantify professional qualifications through indus- applicant with a degree in an unre- try-accepted designations earned by passing a certification or lated discipline who has some logistics licensing exam. The logistics and supply chain management experience? M It’s human nature to go with what sector is blessed – or cursed – with a multitude of such certifications. we know. And, if I share with the HR The abundance of certifications can the skills most senior supply chain department my perception of the top be very confusing for recruiters and managers are seeking in middle- and logistics schools or degree programs, human resources (HR) professionals; entry-level hires. who am I excluding? they might be certifiable for treatment If hiring managers have stud- And now there’s a new kid on the after trying to make sense of it all. But, ied supply chain management or block: the SCPro certification just it isn’t necessarily any easier for hir- obtained a professional certification, announced by the Council of Supply ing managers trying to find the right they can use their personal experi- Chain Management Professionals. supply chain skills and talent for a ence to gauge the qualifications of Don’t look for it to appear on resumes specific position. job applicants. If I have a CPIM cer- yet, but its developers say they have In my first article about careers in tification from the Association for worked to make the certification multi- logistics and supply chain manage- Operations Management, for instance, discipline and relevant. ment, back more years than I care to I know the content and rigor of the As a military veteran, I would be remember, I marveled at the diverse curriculum and exam. remiss if I didn’t add the challenge of backgrounds of logistics professionals But, what does it mean when an translating military experience into holding the top jobs. They had earned applicant has earned a CPSM certifi- civilian equivalents – or just adding degrees in everything from geology cation from the Institute for Supply some positive weight to a veteran’s to advertising, and everything in Management? How do I advise HR application. between – or they had no degree at all. to screen applicants when both pro- Despite the rise of supply chain But one thing they had in common fessional certifications enhance a job management degree programs, indica- was that they had not started out pur- applicant’s qualifications? And what tions are that the profession is facing suing a logistics, transportation, or happens if I mention CPIM certifi- a talent shortage. The need is more distribution career. They came to the cation to HR but neglect to mention critical on some levels and in some field almost by accident, became fas- CPSM? Do I miss interviewing some specialties than others. Schools, col- cinated, and stayed. highly qualified applicants? leges, universities, and professional Over the years, I’ve heard repeated There is another challenge when associations are working hard to pro- the three characteristics that make hiring for a supply chain position: vide resources. a good supply chain management the university experience. Which You can help guide that process. Tell professional. Analytical skills, prob- university, which degree, which pro- me your biggest concerns or solutions, lem solving, and communication are gram? And what about that talented and let’s get the dialog started. n

6 Inbound Logistics • November 2011

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl B:8.75 in T:7.75 in S:7 in

Introducing Sprint Direct Connect. Putting dispatch in the passenger seat with the next generation in push-to-talk. Shorten the distance between dispatch and your drivers with the next-generation network that offers an improved data experience. Change routes instantly with the push of a button, locate and assist drivers, and send and receive work orders from almost anywhere. And now with an Unlimited data plan, you can text, chirp and call any mobile as much as you want. All while on the Sprint network. Sprint Direct Connect makes communication so easy, it’s like you’re sitting shotgun. B:11.375 in S:9.75 in T:10.5 in

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For J.D. Power and Associatesates award Get it all while on the Sprint network. Requires a two-year Agreement per line. information, visit jdpower.compower.com Other monthly charges apply—see below.**

**Monthly charges exclude taxes, Sprint Surcharges (incl. USF charge of up to 15.3% [varies quarterly], Administrative Charge [up to $1.99/line/mo.], Regulatory Charge [$0.40/line/mo.] and state/local fees by area [approx. 5–20%]). Sprint Surcharges are not taxes or gov’t.-required charges and are subject to change. Details: sprint.com/taxesandfees. Sprint received the highest numerical score in a tie among full-service wireless providers in the proprietary J.D. Power and Associates 2011 U.S. Full-Service Wireless Purchase Experience StudySM Vol. 2. The study is based on responses from 9,190 consumers measuring 4 full-service wireless providers, and measures opinions of consumers who purchased a wireless product or service within the last 6 months. The proprietary study results are based on experiences and perceptions of consumers surveyed January–June 2011. Your experiences may vary. Visit jdpower.com. Phone requires a new-line activation (or an eligible upgrade) and a two-year Agreement. GPS reliability varies by environment. International services are not included. Sprint Business Advantage Messaging and Data Plan: Offer ends 1/7/12. Talk Plan: Additional Anytime Min.: $0.25/min. Nights: Mon.–Thurs. 7pm–7am; Weekends: Fri. 7pm–Mon. 7am. Partial min. charged as full min. Any Mobile, Anytime: Applies when directly dialing/receiving standard voice calls between domestic wireless numbers as determined when the call is placed using independent third-party and Sprint databases. Standard roaming rates/restrictions apply. Only available with select Sprint plans and while on the Nationwide Sprint or Nextel National Networks (excludes calls to voicemail, 411 and other indirect methods). Voice/Data Usage Limitation: Sprint reserves the right, without notice, to deny, terminate, modify, disconnect or suspend service if off-network usage in a month exceeds (1) voice: 800 min. or a majority of min.; or (2) data: 300 megabytes or a majority of kilobytes. Prohibited network use rules apply. See in-store materials or sprint.com/termsandconditions for speciﬁ c prohibited uses. Messaging: Includes text, picture and video for domestic messages sent or received. International messages sent or received from the U.S. are $0.20/msg., and from outside the U.S. are $0.50/msg. SMS voice messages may incur an additional data charge of $0.03/KB. Data: Premium content/downloads (games, ringers, songs, certain channels, etc.) are additional charge. Texts to third parties to participate in promotions or other may result in additional charges. Sprint Radio includes access to select radio channels and song downloads (cost varies). Sprint TV® includes select channels. Direct Connect: Nextel and PowerSource devices operate on the Nextel National Network. Sprint devices operate within certain EV-DO Rev. A coverage areas on the Sprint 3G Network. Group Connect (21 max. participants) currently operates between parties on the same push-to-talk network platform. International Direct Connect is not included. ©2011 Sprint. All rights reserved. Other marks are the property of their respective owners.

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Client Sprint Consumer Mechanical Specs People OK Job Number SPRNTB2B-510 B 8.75 in x 11.375 in Creative Director Mark Dunn/Mike Mazza Ad Number 006431 T 7.75 in x 10.5 in Assoc. Creative Director None Ad-ID Introducing Sprint Direct Connect. Putting dispatch... L 7 in x 9.75 in Art Director Phil Vo Job Title Q4 ‘11 SDC Verticals Print-Transportation & Distribution (A version) G None Copywriter Joel Lugar File Name SPRNTB2B-510_006431 Q4 ‘11 SDC Verticals Print_A_7.75x10.5.indd S 1 in = 1 in Proofreader Ryan/Jeff/Jen File Format Adobe InDesign Account Management Ashley Erickson/Megan Brown Start Date 9-26-2011 12:02 PM Notes *World Trade (Nov/10.7), Account / Operations Melissa Redada Color / Media 4/C Mag Commercial Carrier Producer Rachel Thomas (Nov/10.17), Heavy Duty Materials Due *see notes Product Specialist None Trucking (Nov/10.19), st 1 Insertion *see notes Logistics Mgt (Nov/10.21), Legal 09-29-11 mp 39911 Version:02 Vendor PDI Supply Chain Brain Digital Studio Kirsten Finkas @ 9-27-2011 11:39 AM Pubs *see notes (Nov/10.21), Supply & Demand (Dec/11.8). Printed at 100% Round 1 Released on 09.27.11

Prepared by The Digital Studio | Goodby Silverstein & Partners. All rights reserved. 415.392.0669 PACIFIC DIGITAL IMAGE • 333 Broadway, San Francisco CA 94133 • 415.274.7234 • www.pacdigital.com Filename:006431_Trans_A_775x105.ps_wf02 Operator:SpoolServer Time:21:37:42 Colors:Cyan, Magenta, Yellow, Black Date:11-10-05

NOTE TO RECIPIENT: This file is processed using a Prinergy Workflow System with an Adobe Postscript Level 3 RIP. The resultant PDF contains traps and overprints. Please ensure that any post-processing used to produce these files supports this functionality. To correctly view these files in Acrobat, please ensure that Output Preview (Separation Preview in earlier versions than 7.x) and Overprint Preview are enabled. If the files are re-processed and these aspects are ignored, the traps and/or overprints may not be interpreted correctly and incorrect reproduction may result. Please contact Pacific Digital Image with any questions or concerns. DIALOG

Drop us a line: LETTERS TO THE EDITOR [email protected] or send snail mail to Dialog, c/o Inbound Logistics 5 Penn Plaza, NY, NY 10001 Follow us: facebook.com/InboundLogistics twitter.com/ILMagazine linkedin.com/company/286008

Cover Story Outsourcing: A Last Resort The cover of your safety issue (September In response to your article Is U.S. 2011) is a bit of a contradiction. It is my Manufacturing Coming Back? (August understanding that traffic circles are all 2011), I say reshoring must become one-way, moving to the right so that all the rallying cry to ensure the future of traffic exiting the road completes right- America. Outsourcing product should hand turns. Your illustration shows be used when there is no available two-way traffic; therefore, some traffic capacity in our country. Today’s high must engage in left-hand turns to exit the unemployment and public protests circle. Any left-hand turns from a traffic against greed are factors to consider in circle would defeat the safety aspect of the decision to reshore. The time for the traffic circle. Made in the USA is now. When you attempt to focus on safety, — Scott Lefcourt I recommend that any future illustra- tions comply with safe travels in mind. — Michael A. Reynolds, Northwest Arkansas tweetlog

Revised cover tweeting it forward: shows one-way Editor’s note: Thanks to Michael and all the readers who pointed out traffic only! our gaffe. We revised the cover on our Web site and digital edition. Quintiq Quintiq is Global @ILMagazine — 3PL Perspectives 2011 — required reading for #3PLs. all U.S. parts and components (that bit.ly/pwGe4K The Costs of Compliance would be a bit of a stretch), a com- I read with interest your August 2011 pany would not have to deal with PradSam Pradheep Sampath article Is U.S. Manufacturing Coming the compliance costs of Customs- CSCOs are getting a seat at the table Back? Great article with some very good Trade Partnership Against Terrorism, RT @ILMagazine: The Rise of the reasons for moving factories back to the Importer Security Filing, Generalized #SupplyChain E x e c u t i v e — I n b o u n d Logistics: bit.ly/npvvxG United States. A conspicuous area of System of Preferences, Importer Self cost savings was not mentioned, how- Assessment, and other compliance pro- ever: compliance. cesses enforced by U.S. Customs and antonyfrancis50 Antony Francis @ILMagazine got it right — building It is difficult to calculate the cost sav- Border Protection. bench strength is as critical as ings of having a U.S. factory instead of Food for thought. succession plans — can replace leavers a foreign factory. By operating a fac- — Dennis Heck, Customs Compliance or quickly operate new business tory in the United States, and assuming Manager, Yamaha Corp. of America

8 Inbound Logistics • November 2011

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In 2011, Southwest Airlines Cargo was awarded Winner of the “Up to 199,999 Tonnes” category (Air Cargo World’s ACE Survey), “Domestic Carrier of the Year” (Airforwarders Association), “Domestic Airline of the Year” ©2011 Southwest Airlines Co. (Express Delivery & Logistics Association) and the “Quest for Quality Award” (Logistics Management Magazine).

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl Kevin McCarthy Transforming supply chains with analytics since 1984

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access your FrEE copy of the inbound white paper here! to download the Qr code reader, text “robinson” to 82350 from your smartphone. ® no smartphone? text “inboundTrans” to 82350 Discover the Power of Collaborative Outsourcing Request a free copy of our white paper, Identifying Opportunities With Your Inbound Transportation, at www.chrobinson.com/outsourceit or call 800.323.7587 to connect with one of our outsourcing experts.

IL_Inbound_KMac_Spread_Nov11.indd 1 FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3p10/12/11l 9:26 AM Kevin McCarthy Transforming supply chains with analytics since 1984

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Developing an inbound program can be easy. Want proof? Our customers identify their outbound networks as a quick and painless way to cut costs. But they often shy away from creating an inbound program, unsure of how to develop a solution that yields significant savings without the hassle. Rely on us to guide you through the entire process, from identifying freight allowances to converting sales terms to helping you manage your vendor relationships. The list of customers who are running successful programs through our Inbound Logistics solution is growing. Contact us to find out how our best practices can uncover savings in your inbound supply chain. access your FrEE copy of the inbound white paper here! to download the Qr code reader, text “robinson” to 82350 from your smartphone. ® no smartphone? text “inboundTrans” to 82350 Discover the Power of Collaborative Outsourcing Request a free copy of our white paper, Identifying Opportunities With Your Inbound Transportation, at www.chrobinson.com/outsourceit or call 800.323.7587 to connect with one of our outsourcing experts.

Increasing Warehouse Productivity

arehouse efficiency promotes a major U.S. manufacturer adopted a Educate your leadership to ask the productivity, which is essen- work measurement program to gauge right questions, gather necessary W tial to customer satisfaction. and report warehouse performance 7 information, make decisions, and Jason Minghini, senior director, best at the employee level. The facility take appropriate, corrective action. This practices, at Chattanooga, Tenn.-based increased productivity by 10 percent is vital to improving processes, prod- third-party logistics provider Kenco and reduced labor costs by 11.3 percent. ucts, and services. Logistic Services offers the following tips for creating more efficient, produc- Determine what drives processes Create a robust training program tive warehouse operations. to ensure the proper causal con- that incorporates cross-training. 4 nection between outcomes and 8 Break a job down and present the Communicate effectively. Clearly enablers. Key performance indicators operation to new associates. Allow communicating to workers your reflect the past; standardization and them to test their performance before 1 organizational goals and the pro- error proofing are the answer to pro- releasing them to the process. This is cesses to achieve them is one key to ductivity now. more effective than the traditional effective warehousing operations. sink-or-swim method. When managers fail to create an Use the DMAIC method to under- environment of open and clear com- stand the “why” of your operations, Incorporate the use of TAKT time munication, employee productivity 5 not just the “how.” This five-step to achieve a steady fulfillment flow suffers, resulting in high turnover and approach (Define, Measure, Analyze, 9 with standardized work instruc- wasted resources. Improve, and Control) reduces costly tions. By specifying the maximum process variations. The backbone of Six cycle time allowed to produce a prod- Standardize your processes by Sigma methodology, DMAIC ensures uct in order to meet demand, TAKT reducing potential variation in sustained, defect-free performance and time allows you to set targets by show- 2 areas such as unloading, accounts highly competitive costs. ing operators exactly where their work payable, shift scheduling, and facilities output should be at any given point. management. Standardization saves Involve, align, and empower your time and money, and reduces errors. associates. The people who do the Look at variation, not just 6 work every day are process experts averages, to increase productivity. Measure what matters for con- who know how to reduce or eliminate 10 This is the heart of Six Sigma: tinuous improvement in your waste. Aligning your managers and reducing variation – or variance – to make 3 processes. If an outcome is not staff to a company culture committed a process more stable and predictable. important to customers and sharehold- to inquiry, responsibility, partnership, Find a significant measure that reflects ers, don’t waste time measuring it. One and customer satisfaction can signifi- your process, then reduce the variability 3PL-managed distribution center for cantly impact warehouse productivity. of that process as much as possible. n

12 Inbound Logistics • November 2011

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl Geodis Wilson is the Airfreight Forwarder of the Year 2010 and 2011 ACW World Air Cargo Awards 2010 and 2011

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Ryan Gellert: Climbing High

hile finishing work on my MBA in 1995, I moved west for the snowboarding, and soon got into rock W climbing as well. I applied for an operations job at Black Diamond (BD) because I wanted to work in an industry that was connected with one of my passions. When BD offered me a job in the population and prisoners. I also warehouse, I figured they must have wanted a chance to step away and fig- been looking at the wrong application. ure out my next career move. I spent But they told me that even if I started three years at school, including one out packing boxes, I’d get a chance to summer in Europe and one in China. network my way into bigger opportu- Based on that experience, I decided nities. And that was absolutely true. I’d like to work in China for a few years. Within two months, I was working So when the CEO of BD offered me a on a project with the vice president of chance to come back and do just that, operations, who is still my boss today. he got my attention. After finishing law After four years in various posi- school in 2005, I moved to China full tions at Black Diamond, I decided to time to launch Black Diamond Asia. Ryan Gellert is vice president, leave in 2002 to attend law school. I Helping BD put that business in supply chain management at got interested while doing some law- place is my proudest career accom- Black Diamond Equipment, a related volunteering with the homeless plishment. I started out alone: I had a mountain sports products company. Headquartered in Salt Lake City, Utah, Black Diamond operates manufacturing and distribution facilities there and in Southeast The Big Questions China; a sewing plant in Calexico, Who were your early influences? Calif.; a marketing office in Growing up as a surfer and skateboarder in a Florida beach town, I got to know Yokohama, Japan; and a sales, people who built their careers around doing things they loved. One of my first marketing, and distribution operation bosses, a skateboard manufacturer, was a lifelong skateboarder and surfer. People near Basel, Switzerland. like that had a strong impact on my decision to work at Black Diamond.

Responsibilities: Scariest career decision? Global demand planning, sales and Leaving Black Diamond in 2002 to attend law school. It gave me a chance to re- operations planning, global procurement, evaluate my career. It also helped me develop some skills that serve me well now, logistics, and in-house customer service. such as the ability to take a lot of diverse information, boil it down to its essence, Experience: and communicate it clearly. Managing director, Black Diamond How do you recharge your batteries when you’re not working? Equipment Asia; senior director supply chain I spend as much time as I can with my family and friends. I go rock climbing, management, Black Diamond Equipment. cycling, and snowboarding. I also try to make one or two international climbing Education: trips each year, such as my recent trips to Jordan and Mongolia. Univ. of N.C., BSBA, finance, 1994; Florida Near-term travel plans? Inst. of Technology, MBA, contract management, 1996; S.J. Quinney College of Iceland is high on the list of countries I’d like to see with my wife and son, and I’d Law, Univ. of Utah, JD, 2005. like to go climbing in Mali and Croatia soon.

14 Inbound Logistics • November 2011

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl hotel room, a laptop computer, a company credit card, and a goals that we’re fueling through organic growth in existing three-quarters-baked business plan. product categories and new ones, plus acquisitions. Currently, By January 2006, we had a business license, a site loca- our biggest project is branching out from technical hard tion, and a small staff. By April, we were starting to assemble goods into technical apparel. product. For a company our size, what we accomplished was That means working with new suppliers for components, ambitious, and it gives us a strong competitive advantage. branded materials, and cut-and-sew. They work differently I returned to Salt Lake City in 2010 to take on my current than our suppliers on the hard goods side. It also means role overseeing the global supply chain. Now that I’m no lon- moving into a new geographic region and developing new ger in Asia, staying plugged into that operation is the trickiest systems for managing the workflow. part of my job. It literally keeps me up at night because of One factor that sets Black Diamond apart from our com- conference calls and other communications across 15 time petitors is the breadth of product we offer, combined with zones. The challenge doesn’t so much involve making the our singular focus. Many competitors either offer a more calls or sending the e-mails as it does staying aware of what’s narrow range of outdoor equipment or divide their focus going on in the Asia operation. between equipment for sports and industrial applications. BD went public in May 2010, and we set some ambitious We’re proud to say that we focus entirely on sports. n

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November 2011 • Inbound Logistics 15

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl THE MISSING PIECES IN YOUR SUPPLY CHAIN PUZZLE LANDSTAR provides supply chain solutions and complete global and domestic transportation services. Landstar, a non asset-based company, identiﬁ es and fulﬁ lls shippers’ needs through our unique network of independent sales agents and third-party transportation and warehousing capacity providers.

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Heavy Haul – Specialized • One of the industry’s largest selections of equipment and qualifi ed business capacity owner operators. • Access to 1,700 stepdecks and 1,400 fl atbed trailers. Warehousing Expedited Ground • Established network of warehouse capacity owners – WMS technology, operations, reporting and • Cargo vans, straight trucks and tractor-trailers, personalized customer service. including air-ride. • Presence in all major markets. • Customized safe pick up/delivery. • Top regional providers. Air • Flexible and scalable. • Expedited air. • Value-added services like pick and pack, B2B/ • North American services. B2C fulfi llment, consolidation, cross docking, local pick up and delivery, drayage and more. • International air express or air cargo. • Air charter worldwide. Ocean Freight Forwarding • Import and export. Rail Intermodal • Full and Less-than-container loads. • Contracts with all major railroad transport and • Licensed NVOCC. stack train operators. • Ocean freight forwarding. • Competitive pricing for reliable door-to-door • Over-dimensional breakbulk. service throughout the United States. • Service extends into Canada and Mexico.

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NOTED The Supply Chain In Brief

GREEN SEEDS UP THE CHAIN Elizabeth (Betsey) Nohe joined Morton Salt Inc. in CN purchased 200 EcoTherm containers to help reduce energy consumption in the the newly created role of vice president, supply chain. temperature-sensitive intermodal market. The railroad also acquired 25 EcoRide Nohe leads Morton Salt’s chassis, which weigh 15 percent less than conventional chassis and are equipped with supply chain function across aerodynamic features such as side skirts and low-rolling resistance tires. Containers all company operations in delivered on EcoRide chassis consume eight to 11 percent less fuel than containers the United States, Canada, delivered on traditional chassis. and the Bahamas. Nohe joins Morton Salt from McCormick & Company, where she held logistics, warehousing, customer service, procurement, IT, and internal consulting positions.

Mary E. Blair was appointed senior vice The Massachusetts Port of the replacement cost – up Greatwide Logistics president, supply Authority and the U.S. to $25,000 – of older trucks Services, a transportation chain management for Environmental Protection that are a primary source of and third-party logistics Accuride Corporation, a leading supplier Agency established a port-related air emissions. services provider, deployed of components to program that incents truck three alternative-fuel the commercial a national owners servicing Conley PTG Logistics, vehicles in its fleet. Traveling vehicle industry. Container Terminal to provider of logistics and more than 250,000 miles a Blair is responsible replace older vehicles with dedicated contract carriage year, the fleet will support for Accuride’s global ones that are 2007 emission services, ordered 70 Greatwide’s Nordstrom activities in the SmartWay-certified 2012 areas of strategic compliant or newer. With Ontario operations and sourcing; logistics; Model Great Dane Composite a $500,000 EPA Diesel is expected to reduce 118 supplier quality and Emissions Reduction Act Plate Trailers, continuing its tons of carbon and 422 tons development; and investment in technology that inventory control and grant, a total of $1.5 million of CO2 emissions per year, will be available to provide improves fuel efficiency and saving approximately 38,000 planning. truck owners with 50 percent reduces its carbon footprint. gallons of fuel annually.

November 2011 • Inbound Logistics 17

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATIONFACING GUIDANCE LOGISTICS AND ADVICE CHALLENGES? www.inboundlogistics.com/3p USE IL’S 3PL EXPERTS ANDl RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl INFOCUS INFOCUS NOTED The Supply Chain In Brief

SEALED DEALS ProTrans International Global specialty eManagement solution recognition Inc. signed a multi-year chemicals company components of agreement to provide Elementis Specialties Manhattan Associate’s third-party logistics Inc. selected 3PL SCOPE portfolio to and transportation Transplace to handle its support logistics and consolidation services domestic transportation flow-through processes to International management, including in approximately 70 Automotive carrier management, warehouses. Components (IAC) truck tendering, and Group, Southfield, freight bill reconciliation. Network security Mich. ProTrans utilizes company Palo Alto its CORE supply chain The Bollore Group Networks selected management program, subsidiary SDV Flash Global Logistics which focuses on control, chose the Warehouse to handle its aftermarket Al LaCombe (center) accepts safety visibility, and reporting, Management and services. Flash Global will award from John Joines, Great West for IAC. Extended Enterprise manage the company’s Casualty (l.) and Tom Boelkel (r. ) , president and COO of Dupré. global spare depots that  Maui Jim Inc., a premium polarized sunglasses include mission-critical  Alfred LaCombe, logistics director maker, partnered with distribution consulting product replacements of safety and training for third-party and systems integration firmFORTE for supply as well as reverse global logistics provider Dupré, received the chain technology, process, systems, and facility logistics. 2011 American Trucking Associations automation solutions to support its five-year (ATA) National Safety Director of strategic growth plan. the Year award. The ATA recognized LaCombe for outstanding professional qualifications, safety programs, and achievements.

Mitch England, corporate vice president of C.R. England, was recognized as one of six SmartWay Champions by the Environmental Protection Agency’s SmartWay program. EPA recognized individuals and teams from SmartWay partner companies who have contributed significantly to creating and implementing green initiatives within their companies.

Hyster Company was named Chemical bulk tank truck company TotalTrax Inc., the new Supplier of the Year by ZF Group Quality Distribution Inc.’s company formed via the July North American Operations, a global wholly-owned subsidiary, Boasso 2011 merger of Rush Tracking automotive supplier for driveline and America Corporation, entered into Systems and Sky-Trax Inc., chassis technology with 117 production a definitive agreement to acquire acquired the equipment companies in 26 countries. Hyster was Greensville Transport Company, monitoring product line of selected as the winner for indirect a leading provider of ISO tank ShockWatch Inc. As an material and services. container and depot services integrated company, TotalTrax with access to ports in Virginia, will continue to offer individual Memphis-based 3PL Mallory Maryland, and South Carolina. products, as well as integrated Alexander International Logistics The acquisition enables Quality solutions that include safety was recognized with the GATE Award Distribution to boost customer compliance, fleet management, for excellence in global trade. The award

m&a service and quickly expand its asset tracking, and reporting honors companies working to expand geographic coverage. tools. Tennessee’s role in global markets.

18 Inbound Logistics • November 2011 November 2011 • Inbound Logistics 18

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND InboundLogisticsRECEIVE - Full PageAR1.indd FREE NO 1 OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3p10/27/2011 3:08:56l PM TRENDS shaping the future of logistics

Urbanization Shapes Supply Chain Innovation ith the global population expected to soon surpass seven billion, Wurbanization is an inevitable reality and challenge for supply chains. Where consumerism is concentrated, infrastructure and capacity are often constrained, making it difficult to move product in and out of congested areas.

“For the first time in history, more elsewhere around the globe. than half of the world’s population lives One key takeaway is that shippers, carri- in cities and metropolitan areas. Rapid ers, and service providers are operating in urbanization is shifting the locus of global an increasingly urban environment, and by Joseph O’Reilly economic power,” according to a recent therefore have to adapt transportation and Brookings Institution study, Global Cities: distribution strategies accordingly. The Drivers of Economic Growth. It is this impetus that recently led DHL In China, for example, the urban pop- to introduce a new global solutions and ulation has reached the 50-percent mark, innovations (DSI) division that is spear- up from 20 percent in 1982, reports the heading a “City Logistics” competition. Washington, D.C., public policy think The contest invites businesses, academ- tank. In India, more than 350 million peo- ics, politicians, public authorities, and ple now live in cities, and that number is citizens to share ideas and recommen- expected to reach 590 million by 2030. dations for implementing sustainable Similar demographic shifts are happening logistics solutions in populated, urban

20 Inbound Logistics • November 2011

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TRENDS shaping the future of logistics

Ford Focuses On Green ord Motor Company has more than Ftripled the size of its greenhouse gas emissions collecting and reporting program in an effort to better understand and measure suppliers’ carbon footprints. The automotive manufacturer is surveying the energy use and carbon emissions of 128 global suppliers DHL challenges supply chain professionals to rethink the logistics network in urban areas (up from 35 in 2010) that account for and come up with creative approaches to sustainable, global, and efficient transportation. nearly 60 percent of its $65 billion annual purchases. The expanded group areas. Encouraging the use of creative The competition’s objective is to includes suppliers that provide vehi- and strategic thinking, DHL is seeking drive innovation, then share best prac- cle production parts and components, innovative ideas that will help reduce tices among shippers and partners in information technology, and logis- traffic congestion, promote green urban cities around the world. tics services. living, improve urban logistics, and “Our 30 electric and 50 hybrid elec- One key finding from the 2010 deliver efficient transport solutions. tric green delivery fleet in New York responses was variability in supplier The DHL open innovation competi- City is one example of best practices in readiness to measure and report green- tion focuses on three primary categories: city logistics, as are some of the tech- house gas emissions – 80 percent of 1. Logistics efficiency in urban nologies we use for route management,” respondents track their carbon emis- areas. How can the flow of goods and says Robert Mintz, manager of commu- sions, while 50 percent externally services be improved in and out of nications for DHL Express. report their emissions. Feedback pro- urban environments? DHL has also been piloting new proj- vided insight into risk management 2. Green city and urban living. ects and services in other parts of the opportunities for the broader automo- What defines a truly green city and world. For example, it operates urban tive supply base. what does it take to become one? consolidation centers in Mexico City In addition to establishing a baseline What are the key challenges cities and London; rolled out Smart Truck for its own supply chain carbon foot- face in the future, and what kinds of technology in Germany and India; and print, Ford is helping the automotive regulations must they adapt to face developed a Packstation solution in industry and Tier 1 suppliers develop a these challenges? Germany that provides 24/7 self-service guideline for estimating, collecting, 3. Digital logistics. What IT solu- parcel collection and dispatch. and reporting manufacturing facility- tions can improve logistics with respect Have a great idea for the City based greenhouse gas emission data as to warehouse management and traffic Logistics contest? Entry details are here: part of the Automotive Industry Action management and prediction? www.citylogistics-ideacontest.com Group (AIAG). Beyond that, the

November 2011 • Inbound Logistics 21

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl INFOCUS TRENDS shaping the future of logistics

manufacturer is one of two automotive to speed at pace, according to the 18th their revenue projections, compared companies (along with Rolls-Royce) Annual Survey of Third-Party Logistics with only 50 percent in 2009. participating in the Carbon Disclosure Providers, sponsored by Penske Logistics ■■In Europe, economic conditions Project, a global partnership that aims and authored by Dr. Robert Lieb, pro- continue to be challenging for third- to standardize green best practices fessor of supply chain management at party logistics companies. Only 55 across multiple industries. Northeastern University. percent of surveyed companies are The study analyzes responses from meeting or exceeding their revenue 36 3PL CEOs across North America, growth projections for the year. By 3PLs Focus Europe, and Asia-Pacific whose com- contrast, 90 percent of Asian 3PLs hit panies were responsible for generating their forecasts. On Long-term approximately $58 billion in revenue ■■Growth projections are most in 2010. optimistic in Asia, with companies Growth Key takeaways from this year’s sur- expecting to grow 15.8 percent in the he state of the global outsourcing vey include: next year, compared to 10.8 percent Tindustry is a tale of three continents, ■■3PLs experienced improved eco- in North America, and 8.4 percent with North American 3PLs faring bet- nomic conditions in 2010, with 88 in Europe. ter than their European counterparts percent of companies surveyed in ■■Twenty-five percent of North and Asian service providers catching up North America meeting or exceeding American 3PL CEOs report that some customers experienced a loss of sales in Japan due to the tsunami and earth- Manufacturing Supply Chain Excellence quake in the region. Thirteen percent of European CEOs cite similar experi- hree quarters of U.S. manufacturers see supply chain management (SCM) ences. The disasters in Japan impacted as important for the next five years, according toThe Next Generation half of surveyed 3PLs in Asia. Manufacturing Study commissioned by the American Small Manufacturers TCoalition, a trade association based in Washington, D.C. However, the study, which surveyed 824 manufacturers, also finds that despite Truckers Move its increasing importance, only 29 percent of companies believe they are at or are progressing toward world-class SCM status. In addition, the study reveals a significant split in the quality of supply chain Onward, Upward management between small and large organizations. Twenty-five percent of small espite an uncertain economy and manufacturers — businesses with less than $10 million in annual revenues— say they Dsluggish consumerism, motor are at or nearing world-class status, compared with 41 percent of large freight carriers have shown signs organizations (those with annual revenues in excess of $100 million). of progress in 2011, according to TransCore’s second-annual Carrier Importance to Your Organization’s Success Over the Next 5 Years Benchmark Survey. Carriers’ monthly revenue was $1,607 (10 percent) higher per 100 2009 2011 +0.2% -0.6% truck on average than in 2010, reports +1.0% the Portland, Ore.-based load board/ +4.0% freight solutions company. 75 +24.1% The increase is primarily due to a corresponding 10-percent uptick +4.1% in per-mile rates. Among other sur- 50 vey highlights: ■■For-hire carriers found 20 percent more of their freight on load boards in % OF RESPONDENTS 25 2011 than in 2010. ■■The average length of haul declined 2.6 percent year over year, from 903 to 880 miles one way.

Source: The Next Generation Manufacturing Study ■■Empty miles declined by an aver- Global Process age of one percent.

Innovation Supply Chain Sustainability HumanManagement Capital Management Engagement 22 InboundImprovement Logistics • November 2011 Customer-focused

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl The Great Lakes Stakes he legend of the Edmund Fitzgerald, a freighter that sank Tduring a storm on Lake Superior in 1975, has come to symbolize the fate of the Great Lakes shipping industry – a once-thriving trade swallowed by globalization. But the Great Lakes-St. Lawrence Seaway navigation system is still a relevant part of the U.S. economy, according to a new study conducted by Pennsylvania-based trade consultant Martin Associates, on behalf of U.S. and Canadian shipping and government authorities. The Great Lakes are still great, says a new survey, as shippers seek The study finds that maritime commerce supports 227,000 new transport options to cut costs and reduce carbon emissions. jobs and contributes $14 billion in annual personal income, marine shipping saves companies approximately $3.6 billion $34 billion in business revenue, $6 billion in local pur- per year in transportation costs compared to other land- chases, and $5 billion to federal, state/provincial, and local based alternatives. tax revenues. “This report validates what we have long contended – that North American farmers, steel producers, construction the Great Lakes-Seaway navigation system is vital to the firms, food manufacturers, and power generators depend on continued prosperity of the region,” says Steven A. Fisher, the 180 million tons of raw materials and finished products executive director of the American Great Lakes Ports that are moved annually through the system. More impor- Association. “A multitude of maritime jobs – on land and at tantly, especially as U.S. shippers explore intermodal options sea – work together to help ensure that goods and services are that reduce transportation spend and carbon emissions, enjoyed by a vast customer base.” n Do you need a logistics partner that will bend over backwards for you?

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Warehousing & Distribution • Transportation • Value-Added Services

November 2011 • Inbound Logistics 23

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl GLOBAL The World at a Glance by Joseph O’Reilly

Ban on Night Flights: The Sound of Silence

Frankfurt’s night skies will become increase capacity from 82 to 90 aircraft leave 12 hours later in the afternoon. noticeably quieter between 11 p.m. and per hour. It’s a significant weakness compared to 5 a.m. if a 2012 Federal Administrative The expansion won government competitors because we can’t offer the Court hearing upholds a provisional approval despite opposition from night jump – leaving late at night and cargo flight ban that went into effect local residents, but a shock ruling arriving early in the morning in the on Oct. 30, 2011. in October now leaves Lufthansa United States.” Lufthansa Cargo has been a leading Cargo re-evaluating cargo options If the ban becomes permanent, voice in an industry effort to publicize out of its hub. As it is, the night flight Lufthansa stands to lose up to 50 the importance of night flights at ban affects about 30 percent of the million euros. But the greater concern Frankfurt Airport. But this advocacy carrier’s freighter activity, forcing it to is the impact on German industry. appears to have fallen on deaf ears after restructure 80 percent of its services. “Frankfurt is the world’s seventh- the regional administrative court in Lufthansa has shifted flights to largest cargo airport and the only one Hesse responded to noise complaints daytime, canceled others outright, and among the world’s top 10 with a night- by the public with a decision to ban is working to re-route some services flight ban,” he adds. “This heavily all after-hours freighter activity. The through Cologne/Bonn Airport. This influences Germany’s role as a top repercussions for the German logistics adds another move – trucking freight to export nation and one of the world’s sector may echo much farther. alternative debarkation points. biggest economies.” Frankfurt Airport recently opened “We have an offer that is much The ban puts Germany at a a $1-billion fourth runway, which worse than before,” says Nils Haupt, competitive disadvantage. Companies connects to the rest of the airport by director of communications, Lufthansa will consolidate around cargo- taxiways crossing a highway and high- Cargo. “Our North Atlantic flights do friendly airports, and forwarders speed railway. The enhancement will not currently fly at night and have to will chase that freight. There is also

24 Inbound Logistics • November 2011

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TIACA Holds Court Over EU Emissions Scheme

The International Air Cargo approach, it believes, is in keeping Association (TIACA) is lobbying with the recommendations of The international businesses and Kyoto Protocol, which gave ICAO the GLOBAL governments to bring about a review of authority to set international aviation’s The World at a Glance by Joseph O’Reilly the European Union’s (EU) Emissions greenhouse gas policy. Trading Scheme (ETS). The move TIACA also highlighted a number follows the EU Court of Justice’s of key concerns about the ETS to the decision that including aviation commissioner, stating it is in violation in the scheme is compatible with of international law and treaties. Not international law. only would the scheme impose massive TIACA has previously proposed new taxes on aviation, it is also unlikely suspending the program’s to improve the environment – providing implementation in favor of developing evidence of how the scheme might a global agreement on aviation carbon encourage airlines to fly less-direct emissions by the International Civil routes and therefore increase aviation Aviation Organization (ICAO). This carbon emissions, the association says.

European 3PLs Face Integration Risk

Ban on Night Flights: The Sound of Silence A ban on night flights forced Lufthansa Consolidation and expansion Stobart – neither of which will have Cargo to revamp 80 percent of its has been rampant in the U.S. third- substantial operations in Europe. schedules on short notice. party logistics (3PL) market over Wincanton’s divestiture enables it to the past few years, with various focus on developing opportunities increasing competition from Mideast companies divesting, acquiring, and in the UK market, where it has scale transshipment hubs. concentrating resources and assets in and sees significant potential for Lufthansa Cargo has little recourse efforts to identify growth areas and profitable growth. realigning its network because so strengthen core transportation and Wincanton, which serves a who’s much of its “belly business” is tied to logistics activities. who of homegrown British companies Germany’s top passenger hub. Some The trend is equally visible in such as Sainsbury’s, WH Smith, Marks investments in assets and facilities Europe. But given the challenges of and Spencer, and Comet, entered the may be repurposed elsewhere or integrating companies across different European market through the purchase scrapped altogether. borders, cultures, and operating of P&O Trans European in 2003, Haupt expresses mixed optimism protocols, European 3PL acquisitions expanding its network with barge, whether the Leipzig Federal present a much greater risk. road transport, and contract logistics Administrative Court will overturn the For example, Somerset-based operations on the mainland. ban. But if the decision is upheld, one British 3PL Wincanton recently sold The move was precipitated by the thing is certain. its European business to German knowledge that UK manufacturing “Freight finds its way,” he says. rival Rhenus, marking the end of an and retail clients’ supply chains were “If shippers need a night flight out era for British logistics companies becoming increasingly cross-border. of Europe, they will no longer go to that once dominated the continental But the company was never able to Frankfurt. They will go to Amsterdam, outsourcing market. fully consummate the acquisition, and Paris, or Madrid. Frankfurt will Only two large UK logistics failure to integrate resources torpedoed lose significance.” companies remain – Wincanton and further expansion efforts.

November 2011 • Inbound Logistics 25

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl INFOCUS GLOBAL The World at a Glance

Race Across The Border Trio of Trade Agreements The new U.S.-Mexico cross-border Signed Into Law trucking program, which will provide October 2011 marked Colombia Mexican carriers permanent authority a major milestone in the Panama after an 18-month grace period, is off international trade community South Korea and running. But the Owner-Operator as President Obama signed Independent Drivers Association into law three long-awaited 600 (OOIDA), which supports independent trade agreements with owner-operators in the United States, 500 Colombia, Panama, and South criticizes the program. Korea. The agreements 400 The first Mexican permit for cross- are expected to increase border operations was delayed after the 300 job growth, as well as lower OOIDA raised concerns over a carrier’s TEUs (THOUSANDS) safety record and drivers’ English barriers to trading with the 200 three countries. The graph fluency. The association has similarly 100 voiced opposition to the manner in illustrates the trend of U.S. which a second “pilot phase” is being imports with those countries rolled out, with Mexican carriers for the past three years. 2009 2010 2011

receiving credit served toward the Source: Zepol Corporation 18-month trial period.

Managing a supply chain is complex. And your business is unique. Let TransporTaTion s ervices p rojecT ManageM enT Dis TribuTion s ervices We’ll show you the way. 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.

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For more information, call (877) 545-8080 or visit us at ugwwlogistics.com.

terra haute, IN 3:37 a.m. UniGroup Worldwide Logistics, LLC

Inbound_Log_Double_Half_WH.indd 1 10/28/11 9:23 AM FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl Thai Floods Precipitate Parts Drought Floods in Thailand are raising supply chain concerns for computer manufacturers and automotive companies as they assess the extent of disruptions in the kingdom. Apart from the human death toll, Flooding across central Thailand leaves car and computer manufacturers uncertain about more than 14,000 factories have ceased when crucial parts will be available again. operations, displacing 660,000 workers. Thailand produces one-quarter of the world’s hard disk used in Mac computers, according to Apple CEO Tim Cook. drives, and serves as the Southeast Asian production hub for “Our primary exposure is on the Mac because the number of Japanese carmakers. drives or drive components that are sourced in Thailand is a Western Digital, the world’s largest maker of hard disk significant portion of the total worldwide supply of drives,” drives, reports that its December 2011 quarter revenue will he said. fall 60 percent from one year ago. Meanwhile, Toyota has But, because Apple uses flash drives exclusively for suspended production of its Camry and Prius vehicles in some of its products, most industry observers expect PC the country. manufacturers such as HP and Dell will face the brunt of Thailand’s floods may also limit the supply of components component shortages and higher prices. [ ]

Whether your supply chain is domestic or international, 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.

terra haute, IN 3:37 a.m. UniGroup Worldwide Logistics, LLC

VIEWPOINT by Julian Keeling

Shipper’s Choice: One Freight Forwarder or Many?

any shippers rely on forward- With a single source, the shipper gen- shipping. Another may use intermodal ers as key building blocks in erally obtains consistent service transport for most of its cargo. With a M creating and implementing a throughout its supply chain. multi-agent approach, the shipper ben- logistics program. Some use a single for- ■■Centralized billing. Processing efits from forwarders’ specific skills. warder or third-party logistics provider vendor payments, adjusting charges, ■■Creating competition among to forge and maintain supply chain and correcting billing mistakes is far forwarders. Shippers with multiple con- links. Others choose a multi-forwarder simpler when dealing with one for- solidators on their logistics team can approach. Which is best for your team? warder rather than multiple agents, exert leverage for additional services particularly if international invoices and price concessions. GOING SOLO are involved. ■■ Reducing vulnerability. With many Advantages of using a single for- forwarders handling its cargo, the ship- warder include: THE MORE THE MERRIER per has back-up if one is not meeting ■■Accountability. Mistakes can be Advantages of using two or more for- planned logistics objectives. more easily pinpointed when they warders include: ■■Greater geographical coverage. emanate from a single source. More ■■Greater experience and knowl- Even the largest forwarders can’t be in importantly, errors can be corrected edge. No single forwarder has all the all places. They have a finite number of with far greater speed and with a mini- answers. One consolidator may have offices. With two or more agents, the mum of finger pointing. superior knowledge of local suppliers, shipper’s local coverage expands. There ■■Concentrated freight booking. With and a better feel for an area’s business is less need for independent agents who one forwarder handling all the ship- climate. Another forwarder on the ship- may be of varying quality. per’s cargo, contract goals can be met per’s logistics team may have close and more easily. Cost savings are maxi- long-standing relationships with local GETTING THE RIGHT FIT mized when using the forwarder’s management at air carriers and ship- Before building a logistics team, ship- preferred air and ocean carriers. ping lines. pers should know exactly what they ■■ Integrated technology tools. ■■ Meeting the shipper’s diverse needs. need. Do they want a simple transac- Coordinating technology between a Within shipper organizations, partic- tion from Point A to Point B handled shipper and a single forwarder is easier, ularly those that are multi-national, by a single forwarder? Or do they need faster, and less expensive than inte- separate operating units are common. a total logistics package from inventory grating multiple agents’ systems into a These units require particular knowl- control to customs brokerage capabil- shipper’s IT operation. edge and experience in moving their ities requiring multiple forwarders? ■■Single service standard. Service lev- products. One division may need sub- Defining these requirements will help els invariably differ among forwarders. stantial heavyweight or breakbulk shippers build a team that fits. n

28 Inbound Logistics • November 2011

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl Ralph Lieberthal is principal, transportation and logistics, Motorola Solutions, 847-576-5000 • [email protected] ItMAttERS by Ralph Lieberthal

RFID and Supply Chain Visibility: You Can’t Manage What You Can’t See

mart companies are striving to operating costs, increase distribution readers for faster, more accurate auto- reduce costs, improve service, center throughput, maximize on-time mated yard management, cutting total S and increase return on invest- deliveries, and improve customer ser- costs by six percent. ment throughout the supply chain. vice and satisfaction. RFID is evolving in many intriguing Automation-based solutions can play a directions. Companies are increasingly crucial role in meeting those goals, and RFID At Work interested in using active RFID tags as many organizations consider radio-fre- Automated systems have helped sensors to ensure food safety by mon- quency identification (RFID) technology many companies optimize asset and itoring temperatures in different areas a major force in transforming global inventory management in internal or on refrigerated trailers. When an area supply chain automation and visibility. closed-loop solutions in which RFID gets too warm, the tag automatically It’s hard to manage what you can’t tracks assets, such as vehicles, equip- notifies the driver and master control see. End-to-end visibility helps stream- ment, and returnable transport items, so they can remedy the situation. RFID line the supply chain by promptly which stay within the company. Here sensors also help ensure traceability in detecting, reporting, and resolv- are two examples: the event of a recall. ing operational anomalies. It also ■■An international rail com- allows shippers to track assets and pany operates intermodal terminals Moving Forward shipment status in real time, with max- where shipping containers are moved Other advanced transportation imum traceability. between rail lines and truck chassis. uses include placing RFID tags inside RFID increases equipment, inven- Because private truckers use the equip- gas tanks to automatically record the tory, and business process visibility. It ment on a per-diem basis, the company amount of fuel dispensed and charge also increases efficiency by optimiz- needs 100-percent accuracy to ensure the transaction to the system, eliminating business processes and automating 100-percent revenue capture. A closed- ing the need for drivers to carry credit asset and inventory management. loop RFID tracking system cut cycle cards or cash. In addition, RFID tags The technology also streamlines times almost in half. and readers can help lower costs and ■ data-capture procedures and increases ■In a large production facility, eight reduce CO2 emissions by helping to accuracy by eliminating error-prone different departments were requesting optimize routing and reduce the num- manual processes, and helps reduce daily trailer moves. Trailer location, re- ber of costly re-deliveries. labor costs. It provides real-time, up- handling, and multiple moves wasted RFID technologies can play an to-date information across the entire significant resources. The company important role in helping shippers and supply chain. installed a complete RFID system with logistics service providers gain visibility RFID solutions can help lower fixed readers at gates and handheld into the global supply chain. n

30 Inbound Logistics • November 2011

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl Steve Vinsik is vice president of enterprise security, Unisys Corporation, 202-349-3866 • [email protected] SCSECURITY by Steve Vinsik

Strengthening International Cargo Security

he global supply chain is only While intelligence data gathering cargo from booking through delivery. as strong as its weakest link. and trusted shippers are vital for cargo This level of visibility would include T Shippers and service provid- security, physical security issues also details of the cargo’s booking, move- ers face a dynamic security landscape need improvement. At some cargo facil- ment, handling, storage, consolidation, subject to government regulations and ities in the United States and elsewhere, and loading/unloading. Integrating evolving risks. They need to focus on the division between the secure side these details into intelligence systems identity verification as a key first step to and public side of a facility is a painted would create more secure cargo han- strengthening cargo security. line in the middle of the floor. dling and movement. Positively identifying who is send- Priority must also be given to intro- ing a package provides vital data. Not ducing new technology that can screen Setting Standards every government and shipper can cargo for threats. Freight forward- Today’s carriers, airports, and sea afford advanced biometrics, such as the ers and carriers should be required to ports are under more pressure than ever Transportation Worker Identification implement an integrated approach to to handle increasing cargo volumes, Credential, but locations accepting controlling potentially weak security manage congestion, address chang- packages for delivery can easily check links in the delivery process. ing customer needs, and thrive in the the identity credentials presented by midst of intense competition. the shipper. Inexpensive card readers International Cooperation Shippers, governments, and other can verify driver’s license validity by Analysis tools, when combined with trading partners must play their role, too, examining security features such as targeted cargo screening, help iden- by expediting security data standard holograms and raised lettering. tify suspicious shipment patterns. creation and adoption to help manage Countries that don’t require this Countries around the world should this daunting task. Once security data type of credential validation, or com- expand the sharing of intelligence can be made actionable, governments panies that can’t meet this requirement, tools and standardized data to obtain should establish improved information should not be permitted to be part the visibility needed to detect and stop sharing practices to get intelligence to of the trusted supply chain. Those terrorist activities on the horizon. the front lines quickly. organizations should be subjected International standards could be It’s all possible with today’s technol- to additional scrutiny and security implemented to improve the detail ogy. We just need greater cooperation measures to validate shipment legiti- reported to Customs agencies globally, across national and organizational macy – even if it increases transit time. and ensure shipment data accompanies boundaries. n

32 Inbound Logistics • November 2011

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February 5-7, 2012 Why should you attend? The Cloister The people – Attended by thought leaders shaping the logistics Sea Island, Georgia industry for today and tomorrow The access – Opportunities to meet industry and non-industry leaders, share best practices and gain new perspectives The quality – The best program and participants for more than 40 years, making this a must for the shipping professional Don’t miss this opportunity to change your game. For more information or to register online, visit gaforeigntrade.com.

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11GA01521_GFTC_Ad_IL-102711.indd 1 10/28/11 2:15 PM FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl 34 Inbound Logistics • November 2011

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl Technology helps turbo- charged expedited carriers move goods for shippers with an extreme need for speed. by Amy Roach Partridge

n the adrenaline-fueled, high-stakes world of expedited deliveries, excuses don’t go over well. Shippers who choose expedited services have an urgent need for their freight to be in the right place at the right time, so if a provider misses a delivery window, the ramifications can be explosive. ITake the example of a tire retailer planning a weekend sale. Rather than incur the costs of stocking extra inventory and taking up valuable floor space to meet expected customer demand, the retailer will likely contract with an expedited provider to deliver tire shipments in time for the sale. If the provider fails to get the inventory there on Friday, the retailer will face the wrath of tire-less customers over the weekend.

November 2011 • Inbound Logistics 35

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl Con-way equips all trucks with Qualcomm units so drivers can communicate with the operations center, which uses the information to track shipments.

When it comes to expedited transportation, it’s fast – or So what exactly are today’s expedited providers offering furious. So how do expedited providers ensure that they can when it comes to technology? Inbound Logistics checked in offer quick, on-time deliveries and continue to meet shipper with five leading expedited carriers to see what technologies needs throughout the life of those shipments? Increasingly, they are utilizing and offering to freight buyers – and what the answer is technology. shippers can expect to gain from these high-tech investments. Expedited providers have widely embraced technology. As a result, internal systems that help carriers plan and manage Con-way Truckload: their expedited business; mobile solutions that enable surface Technology and airfreight operators to communicate while shipments are as Safety Net in transit; route optimization and navigation software; and customer-facing solutions offering tracking and tracing capa- hen you promise on-time bilities, have become commonplace. expedited service that is “second “Technology is a must-have for expedited shipments. to none” – as Con-way Truckload Shippers will not use an expedited carrier that doesn’t at least President Herb Schmidt describes utilize a Qualcomm system in their tractor-trailers,” says Paul his expedited offering, which Simmons, vice president, Team Expedited for Green Bay, Wis., Wmakes up 15 to 20 percent of the company’s business – you trucking company Schneider National, referring to the pop- need to make sure you can back up that claim. For Con-way, ular in-cab system that many providers use to communicate technology serves as that backup. “We utilize a variety of with drivers on the road. technologies as a safety net to make certain we are delivering The range of available technologies differs from provider the service we say we will,” Schmidt explains. to provider, but technology increasingly helps expedited The company’s technology safety net begins with carriers keep freight moving at full speed. For shippers, the Qualcomm units in every truck that allow two-way data key benefits these technologies bring include receiving interchange between Con-way drivers and the company’s more effective and proactive customer service; better on- centralized operations center – open 24/7/365 – in Joplin, Mo. time delivery rates; and the peace of mind that comes with Data transmitted through the Qualcomm units flows into improved cargo security. the operations center and, thanks to Con-way’s proprietary

36 Inbound Logistics • November 2011

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl internal software, transmits the information to rolling ETA Next up on the provider’s tech list are two tools that will screens so dispatchers can monitor driver progress. improve customer service capabilities: selective geofenc- “We track every load in our system from origin to destina- ing – its planners are automatically notified if a trailer strays tion, and if a driver begins to run behind schedule, we see a outside a preferred route – and tracking devices embedded in warning on the screens in our ops center,” Schmidt explains. trailers to provide extra safety for high-value loads. Schmidt “We contact the driver to see what is going on, and we can expects to have both technologies in place in 2012. notify the customer if there will be any delays.” Con-way also uses technology to make its expedited data Con-way planners use another operations screen to ensure available directly to shippers via a Web portal where they can that any trailer decoupled from a tractor – over a holiday or a watch their loads move across the country. The portal can weekend, say – is re-dispatched within a predetermined time. be customized to specific shippers’ needs and most shippers The company also relies on internal technology solutions to access the site to get regular updates, Schmidt notes. determine if it has the proper lane density to accept an expe- “But many of our customers don’t bother with it because dited shipment in the first place. they know we are monitoring every load and will contact “You have to have a Plan B when you’re moving expe- them if there is a problem,” he explains. “Shippers don’t want dited goods. You can’t rely on delivering a shipment in a lane to spend a lot of time watching loads – they want the provider where you can’t recover the load if there is mechanical fail- to do that, and to pick up and deliver on time as promised. If ure or driver illness,” Schmidt says. “We need to make sure we can’t do it, they will find someone else who can.” we have a lot of trucks in those lanes so if an exception does occur, the nearest truck is not 250 miles away.” FedEx Custom Critical: Con-way also utilizes route optimization and navigation Unified Technology software. But while the carrier uses these tools to suggest Yields Results routes and fuel stops, the drivers – who work in teams for expedited deliveries – decide the final route. Schmidt has not aking good on its old slo- yet found a commercial navigation and routing system that gan “Relax, It’s FedEx,” FedEx doesn’t run into pitfalls, such as sending a driver under a Custom Critical uses a wide range of bridge that is not tall enough to accommodate a truck. technologies to retain tight control The company has also switched drivers from manual to over its expedited shipping options. electronic logs as a way to monitor hours of service and MThe company maintains a unified technology backbone that improve driver safety. The logs also provide a benefit for ship- provides support across all its expedited offerings, which pers, because the data allows Con-way to know at all times include surface, air, and white-glove services. the number of hours a driver has available. “It prevents us “Our internal system allows us to reach across all the FedEx from accepting a load that could put a driver out of compli- companies to determine the best option to meet a ship- ance and potentially delay the shipment,” says Schmidt. per’s expedited needs,” explains Jason Frederick, managing

A centralized technology system lets FedEx leverage its extensive expedited network, giving shippers the best transport options.

November 2011 • Inbound Logistics 37

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl director of operations for FedEx Custom Critical, based in 99-percent on-time rate. Green, Ohio. Through its Expedited Freight Services (EFS) “And, we can ping drivers tool, FedEx Custom Critical can quote shippers on sev- through Qualcomm to deter- eral different expedited options to see which time and cost mine their location so we parameters make the most sense. can communicate to ship- “EFS also allows us to see where we can book space on pers exactly where a truck is FedEx trucks or planes,” he adds. “It keeps all the informa- at all times.” tion under one umbrella, and lets us be sure we can deliver To better serve what we promise to shippers.” verticals such as the phar- Using advanced planning technology also helps the com- maceutical industry, where pany understand where its assets are, where its customers are temperature-sensitive expe- shipping to and from, and how to marry that information. “It dited shipments are the is very difficult to always have trucks located exactly where norm, FedEx Custom Critical a shipper needs them, so we use our technology to be as effi- uses AmeriScan units in all cient as we can, and try to plan as best we can to provide its temp-controlled trucks. quality service to our customers,” says Frederick. The units monitor the tem- In addition, FedEx’s unified technology helps it better perature in the trucks and serve shippers when issues do occur. If a load begins as a reg- communicate the data to ular shipment via FedEx Freight but runs into bad weather, Custom Critical servers, for instance, a customer service agent can intervene by trans- ensuring that shipments ferring that shipment to the Custom Critical division, and remain in specified temper- expediting delivery. “We can navigate electronically through ature ranges during transit. all our divisions to give shippers the most up-to-date infor- Shippers can track temperature data online, and, upon deliv- mation possible,” Frederick notes. ery, can receive a printout showing temperature information The company also employs technology to provide what throughout the life of the shipment – critical information for Frederick calls “custodial control” over its shipments. Using FDA compliance, Frederick notes. satellite- and cell-compatible Qualcomm units in each truck, Ultimately, FedEx Custom Critical views technology as a FedEx Custom Critical monitors shipments continually and competitive advantage and a way to boost shipper satisfac- proactively contacts shippers and consignees if a delivery is tion. “We continue to look for new technologies that will running more than 15 minutes late. update our business and improve the expedited service we Custom Critical also uses the Qualcomm units to send can offer to shippers,” Frederick says. audio and video messages to its 100-percent owner-operated fleet, to track drivers’ hours-of-service status, and to provide Old Dominion freight line: origin and destination addresses and directions. High-Tech Means “We’ve seen great efficiency gains from the built-in navi- High Visibility gation system,” Frederick says, noting the company’s nearly f expedited carriers don’t have the technology offerings that shippers need to help manage their supply chains and customer expectations, then they simply cannot deliver a fully integrated expedited solution,” says Chip Overbey, senior vice Ipresident of marketing, pricing, global, and strategic development for Old Dominion Freight Line. Delivering that fully integrated expedited solution is key for the Thomasville, N.C.-based carrier, which offers a wide range of expedited specialties, including guaranteed, on- demand, white-glove, trade show, and airfreight services. “Technology also allows us, as a provider, to manage internal systems effectively and stay ahead of the communication curve,” Overbey adds. One way Old Dominion does that is by giving shippers ample access to shipment information via its secure ODFL4ME portal. Shippers can log on to originate and track

Navigation systems in each truck let FedEx Custom Critical monitor shipments continually and notify shippers and consignees if a delivery runs more than 15 minutes late.

38 Inbound Logistics • November 2011

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl information fed electronically to their system so they can update their own internal reporting,” explains Overbey. The carrier also utilizes a slew of what it calls “operational technologies” that help support the communication, visibility, and planning of its expedited operations. The lineup includes handheld computers that drivers use to capture real- time information during pickups and deliveries; a Descartes routing system that helps reduce transit times; RFID tags that help the company monitor equipment location and freight movement; and a dock yard management system that transmits the status of any shipment moving through Old Dominion’s system at any given time. “Our state-of-the art technology enables us to manage equipment and shipments more efficiently while consistently providing shippers with on-time, safe service and access to real-time information so they can deliver on the promises they have made,” Overbey notes.

Schneider National: Technology PLUS Processes EQUALS Technology allows Old Dominion to provide daily on-time deliveries, Security and guaranteed deliveries within normal transit times, and time- specific deliveries, including air service, tailored to shipper needs. Satisfaction chneider National takes a slightly an expedited shipment, create documents and specialized different approach when it comes to the reports, and send and manage shipment communications. importance of technology in expedited Old Dominion also provides expedited shipment data in shipping. The carrier, which utilizes a two- numerous formats that are compatible with shippers’ legacy driver team for every expedited delivery, systems, transportation management system products, and Sviews technology as a way to enhance service safety and reli- other software solutions. “Many shippers like to have freight ability – but knows that technology alone is not enough.

Two drivers, one truck, and a sense of urgency is how Schneider National describes its expedited service for time-critical shipments and high-value loads.

November 2011 • Inbound Logistics 39

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl “What allows us to best serve shippers is the way we use we have an easy way of finding the trailer,” Simmons says. our technologies internally. Technology is great, but with- “We have recovered pilfered loads due to our trailer-track- out good processes, procedures, and execution, it may not ing technology. mean a whole lot,” explains Paul Simmons, vice president, “Having technology that allows us to communicate at any Team Expedited. “We couple our advanced technology capa- time with the driver in the truck and lets us track where bilities with disciplined processes around how we manage every tractor is, gives shippers a level of comfort and aware- the business.” ness that their product is in safe hands and that we will pick Before an expedited freight shipment goes out, for instance, up and deliver on time without loss or damage,” he adds. team leaders, drivers, and customer service representatives Schneider also utilizes the popular electronic on-board have a discussion to make sure everyone understands the recorders to log driver hours and information, which again details of the delivery. helps the company boost safety – for drivers and for ship- In addition, data collected from the customer on each ments. In addition, Simmons says the company constantly shipment is sent to drivers via the Qualcomm units in evaluates new security technologies such as high-tech trailer Schneider’s trucks, and is visible to dispatch and customer locks and tracking devices to be sure it can offer shippers the service groups at headquarters, as well as to driver managers, most updated security tools. who are located in the field. “Our driver managers are held accountable for under- UPS: standing where their drivers are and what is happening with Technology each load,” Simmons notes. “And because we all use the Across Modes same tool and see the same information, it is easy to communicate about shipments and be proactive if we need to ho hasn’t shipped or notify shippers.” received a package via UPS? The Schneider also takes that communication directly to cus- company’s integrated approach to tomers, offering an online portal where shippers can access technology means that the experi- tracking and tracing information on expedited shipments. ence for individual consumers and Simmons views the team-driver approach as another smart Wmultinational corporations shipping expedited freight across process that works hand-in-hand with technology to ensure the globe is pretty much the same. safety for high-value expedited loads. “Safety is a huge focus “We continue to invest substantially in technology to make the shipper experience seamless,” says Scott Aubuchon, director of international airfreight marketing at UPS. “Whether they ship a letter or a 1,000-pound pallet – via ground or air – shippers can access the same options, service, and technology.” That integrated approach to technology appears throughout UPS’ numerous expedited options, which include express, time-definite, and critical services for surface freight; and express and critical airfreight options. Regardless of the expedited option a company selects, it can access the Atlanta-based delivery giant’s wide lineup of customer-facing shipping systems. Options include WorldShip – a downloadable software application that allows users to book shipments, generate shipping labels, and send e-mail notifications;ConnectShip , a more advanced solution for multi-carrier expedited shipping; and CampusShip, a secure, Web-based shipping system that lets companies with multiple facilities ship documents, In-cab technology delivers a variety of electronic tools to improve driver safety, productivity, and e-mail connectivity. packages, and heavy freight from any location and offers shipment data that integrates with a company’s backend systems and processes. In addition, users can book and track for shippers. Having two drivers in the truck means when single expedited shipments via UPS Internet Shipping. they stop to refuel or use the restroom, the cargo is never left These customer-facing technologies also help UPS gain unattended,” he explains. internal efficiencies. “Our solutions automate the shipping On the technology side, Schneider uses Qualcomm units process for shippers, and generate notifications internally to in the trucks and tracking devices on each truck and trailer our systems so we know when a new order has been created, so it knows where its drivers, assets, and cargo are at all and when shipments are ready for pickup,” says Aubuchon. times. “If a truck is stolen and disconnected from the trailer, Once an expedited pickup order is initiated, UPS’ internal

40 Inbound Logistics • November 2011

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl UPS’ integrated technology systems do everything from identifying space requirements on a truck to notifying the consignee at the shipment’s final destination.

operational systems kick-start the various behind-the- scenes tasks that go into every shipment, such as identifying space requirements on a truck or a plane; dis- patching a driver; and notifying the appropriate party at the arrival destination. Once an expedited shipment is in motion, additional technology keeps things moving smoothly. The ubiquitous handheld devices that UPS drivers carry – officially known as Delivery Information Acquisition Devices (DIADs) – communicate a plethora of customs brokerage and scheduling information. information back to UPS. “Quantum View gives shippers a dashboard for small pack- “As soon as a driver picks up the freight and punches age, airfreight, ground, and ocean shipments; they gain the information into the DIAD, we know its exact size and visibility to exactly where their shipments are at all times weight,” explains UPS Freight spokesperson Ira Rosenfeld. through that portal,” explains Aubuchon. “So before the driver gets back to the terminal, we’ve already Companies sending expedited shipments via UPS can also planned how we will load the truck, where we will place use mobile technology solutions to track shipments, receive the shipments, and how we will move them as quickly rate quotes, and find UPS shipping locations. The company as possible.” offers downloadable mobile apps for BlackBerry, iPhone, and “Meanwhile, as a shipment moves from the shipper’s Android, as well as a mobile Web site with the capability dock to our operation to the airport, those become mile- to create and track shipments, and estimate rates and tran- stones that are visible in our tracking and tracing systems,” sit times. Aubuchon adds. “Ultimately,” Aubuchon notes, “our goal is to use technol- Expedited shippers can log on to the UPS Web site for ogy to enhance expedited shipping and make the process as tracking and tracing information, or can use Quantum View, seamless and efficient as possible for shippers, who depend UPS’ Web-based visibility platform that gives users visibil- on expedited transportation to remain competitive in their ity to both inbound and outbound shipments, as well as own business.” n

November 2011 • Inbound Logistics 41

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl OVERNIGHT BIO-SCIENCE TECHNOLOGY

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FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl Who’s Who in Airfreight Forwarding

he airfreight industry continues to adapt and grow in the face of economic crisis, cargo security threats, natural disasters, and changing supply and demand patterns. Airfreight forwarders are Tpositioned in the middle of this fluid global airfreight network. Shippers, carriers, and consignees rely on their forwarding partners to access and book capacity, streamline shipment documentation and Customs compliance, preserve visibility, secure chain of custody, and provide additional value-added logistics capabilities. To connect airfreight buyers with forwarders that can meet their business demands, Inbound Logistics editors compiled this list of some leading service providers – ranging from small, non-asset-based agents to global integrators – to help shippers explore airfreight partners that meet their unique requirements.

November 2011 • Inbound Logistics 43

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl Who’s Who AIR FREIGHT SERVICES OTHER SERVICES WEB SERVICES D * ASE

in Airfreight Forwarding ator

-d oor to time Value - Company Name F reight vy q uotes ate b ro k er ustoms ustoms d onsoli Web Address Phone ogistics clearance * mpliance CO H ea H a z mat Door - P erisha b le ernight Ov OUT FLIGHT NEXT C harter H igh O cean C C L ASSET- OR ASSET- B NON-ASSET- C value-added Services and specialties R R eal k ing trac * Documents Other Web Services Certifications

Agility 714-617-6300 B Chemicals, project logistics, fairs and events E-government solutions ISO, IATA, C-TPAT, Lean, Six Sigma, Hazmat www.agilitylogistics.com 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

AIRSCHOTT 703-471-7444 N Customs brokerage, duty drawback Shipment tracking ISO, IATA, C-TPAT, Hazmat www.airschott.com 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

In-home, pharmaceuticals, government, EDI, purchase order and AIT Worldwide Logistics 800-323-6649 N IATA, SmartWay, C-TPAT, Hazmat www.aitworldwide.com 0 0 0 0 0 0 0 0 0 0 0 0 0 0 automotive, energy, oil and gas 0 0 0 inventory management

AN Deringer 888-612-6239 N Purchase order management Purchase order management C-TPAT, IATA, Hazmat www.anderinger.com 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Shipment tracking, export Associated Global Systems 516-627-8910 B Customized logistics solutions IATA, SmartWay, C-TPAT, Hazmat, TAPA www.agsystems.com 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 compliance portal

ISO 9001:2000, C-TPAT, DGAC, Six BDP International 732-572-2248 N All services relating to international air freight Global reporting system www.bdpinternational.com 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sigma, ACC Responsible Care

Global trade resources, quote C.H. Robinson Worldwide Inc. 800-323-7587 N Supply chain consulting, managed TMS IATA, SmartWay, C-TPAT, Hazmat www.chrobinson.com 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 requests, shipment tracking

Contract logistics, end-to-end solutions, Shipment scheduling and booking, ISO, IATA, SmartWay, C-TPAT, CEVA Logistics 800-888-4949 N www.cevalogistics.com 0 0 0 0 0 0 0 0 0 0 0 0 0 consulting and solutions design 0 0 forms, online payments Lean, Six Sigma, Hazmat

Concert Group Logistics 630-795-1300 N Time-critical, hotshot, LTL, FTL, asset recovery, trade show Shipper's letter of instruction IATA, SmartWay, C-TPAT, Hazmat www.cglship.com 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Dachser Transport of America 516-561-7800 N Food logistics, chemical logistics, contract logistics www.dachser.com 0 0 0 0 0 0 0 0 0 0 0 0 0 0

ISO, IATA, SmartWay, C-TPAT, Damco USA 973-514-5126 N Supply chain development, consulting Email alerts, GPS tracking www.damco.com 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Lean, Six Sigma, Hazmat

DB Schenker 800-225-5229 N Logistics management, warehousing, European rail, ground Shipment scheduling and booking ISO, IATA, SmartWay, C-TPAT, Hazmat www.dbschenkerusa.com 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

E-billing, pickup and DHL Global Forwarding 800-426-5962 N Express services, warehouse management ISO 9001:2000, TAPA www.dhl-dgf.com 0 0 0 0 0 0 0 0 0 0 0 0 0 booking requests

Oversize shipment logistics, trade show EA Logistics 800-863-5948 N Shipment quotes and tracking IATA, SmartWay www.ealogistics.com 0 0 0 0 0 0 0 0 0 0 services, rollout, warehousing 0 0 0

Expeditors 206-674-3400 N Distribution, insurance, order management, project cargo Quote monitor, shipment booking ISO 9000 www.expeditors.com 0 0 0 0 0 0 0 0 0 0 0 0 0

Pickup scheduling, POD FedEx 800-463-3339 B Time-definite, expedited services www.fedex.com 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 capture, claims, reporting

Time and price information, Geodis Wilson 877-469-0510 N Integrated supply chain solutions ISO, IATA, C-TPAT, Hazmat, CCSF Facilities www.geodiswilson.com 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 electronic booking

Online pickup requests, custom Hassett Air Express 800-323-9422 A Full ground options ISO, SmartWay www.hassettair.com 0 0 0 0 0 0 0 0 0 tracking and report detail, EDI

Hellmann Worldwide Logistics 305-406-4500 B Road freight, contract logistics, e-commerce Shipment tracking C-TPAT, TSA, AES, ISO 9001, ISO 14001 www.hellmann.net 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Online reporting, purchase IJS Global 203-504-9760 N Trade consulting services, project cargo and management ISO 9000:2000 www.ijsglobal.com 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 order management

44 Inbound Logistics • November 2011

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl * KEY: Asset- or Non-Asset-Based: A = A s s e t - based; N = Non-asset-based; B = Both AIR FREIGHT SERVICES OTHER SERVICES Compliance: Shipments comply with WEB SERVICES government, security, and trade regulations Documents: Shippers can book/create D * ASE customs or import/export documents online

ator

-d oor to time Value - Company Name F reight vy q uotes ate ro k er b ustoms ustoms d onsoli Web Address Phone ogistics clearance * mpliance CO H ea H a z mat Door - P erisha b le ernight Ov OUT FLIGHT NEXT C harter H igh O cean C C L ASSET- OR ASSET- B NON-ASSET- C value-added Services and specialties R R eal k ing trac * Documents Other Web Services Certifications