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SPECIAL SUPPLEMENT RICKENBACKER INTERNATIONAL AIRPORT AN AIR CARGO INNOVATOR THEMAGAZINEFORDEMAND-DRIVENLOGISTICS•NOVEMBER2017 The Amazon Effect: No Phantom Menace Air Cargo: The Force Awakens Taylored Service Ad_Nov2017 HiRes.pdf 1 11/3/17 2:56 PM TayloredServices_ad1117.inddGot 3PL challenges? 1 Get free expert solutions at inboundlogistics.com/3pl 11/8/17 11:02 AM info snacks BITE SIZED SUPPLY CHAIN/LOGISTICS INFORMATION Warehouse Staffing: DID YOU KNOW... 60% of Fleets running between one and 1. Intellectual • That if a company does not pay its 100 trucks have yet to adopt payroll taxes, you could be liable to curiosity the U.S. DOT’s electronic pay them, even if you already paid the device (ELD) mandate 2. Strong payroll taxes to the staffing company taking effect in December work ethic as part of your agreement? 2017. 3. Courage • That if a staffing company does not procure, loses, or obtains faulty — CarrierLists survey of The three innate factors workers’ compensation insurance, nearly 2,000 carriers fundamental to success your company could be liable for at the executive level, paying claims that would have according to Brent otherwise been covered by the Beabout, Executive staffing company’s insurance policy? Vice President, Supply ZERO Chain, Nordstrom. Bottom line…Perform due diligence The number of customer (See LeaderShip, p. 16) on your staffing providers to ensure complaints about product you minimize exposure to these damage fun food maker Jel Sert received after potential issues. switching to a half- pallet program. (See bit.ly/StaffingYourWarehouse) (See Casebook, p. 69) MORE THAN HALF A CENTURY That’s how long UPS driver Tom Camp spent behind the wheel of a brown delivery truck without an accident, setting a company safety record. November 2017 • Inbound Logistics 1 a company THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS THE AMAZON EFFECT: NO LONGER A PHANTOM MENACE THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS page 44 November 2017 • Vol. 37 • No. 11 INSIGHT INPRACTICE 8 CHECKING IN Stop, look, listen. READERPROFILE MarianneMcDonald: StandandDeliver 10 GOOD QUESTION 18 What is the best business book Marianne McDonald, vice president, global you ever read? transportation for Avnet, doesn’t mind 12 DIALOG stepping out of her comfort zone. The ongoing conversation. 14 10 TIPS CASEBOOK NewPalletProgramBetterbyHalf Boosting warehouse productivity. Fun food manufacturer Jel Sert finds pooled half-pallets provide 69 16 LEADERSHIP full supply chain benefits. Meet Nordstrom’s Executive Vice President of Supply Chain Brent Beabout. 32 SPONSORED INDEPTH KNOWLEDGE BASE The New Era of Smart TheAmazonEffect: City Logistics 32 NoLongeraPhantomMenace 44 34 SPONSORED As Amazon continues to raise the bar, the SOLVED pressure on competitors to match consumer Making Strategic Carrier Decisions expectations set by the online behemoth is real. With a New TMS 34 Offering a Dynamic Supply TransportationTrends:TurnUptheAir Chain Solution 35 The airfreight market has been flying high, but 36 SPONSORED 48 headwinds persist. THOUGHT LEADERS API Trumps EDI 36 Who’sWhoinAirfreightForwarding Educating the Supply Chain 37 Inbound Logistics’ annual guide spotlights some of the airfreight 52 partners that help shippers soar. Inbound Logistics (ISSN 0888-8493, USPS 703990) is mailed monthly to approximately 60,000 business professionals who buy, specify, or recommend logistics technology, transportation, and related services, by Thomas Publishing Company LLC, 5 Penn Plaza, NY, NY 10001. José E. Andrade, chairman; Carl T. Holst-Knudsen, president. Periodicals postage paid at New York, NY, and additional mailing offices. All rights reserved. The publisher accepts no responsibility for the validity of claims of any products or services described. No part of this publication may be reproduced or transmitted in any form or by any electronic means, or stored in any information retrieval system, without permission from the publisher. POSTMASTER SEND ADDRESS CHANGES TO: Inbound Logistics, 5 Penn Plaza, New York, NY 10001 2 Inbound Logistics • November 2017 REASONS CUSTOMERS CHOOSE LANDSTAR • Single point of contact. • Independent agents are solutions providers and know the customers’ business as well as the customer does. • Flexible, scalable customer-focused transportation management solutions. My Landstar Advantage Freight Management Support TRUCKLOAD•LTL•HEAVY HAUL/SPECIALIZED•EXPEDITED•AIR•OCEAN•RAIL INTERMODAL•TRANSPORTATION MANAGEMENT SOLUTIONS www.landstar.com | [email protected] 1-877-696-4507 Follow us on Twitter @LandstarSystem www.facebook.com/Landstar System Follow us on LinkedIn/Landstar GotLandstar_ad0717.indd 3PL challenges? 1 Get free expert solutions at inboundlogistics.com/3pl 7/10/17 9:39 AM TRANSPORT TRENDS: TURN UP THE AIR page 48 a company THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS November 2017 • Vol. 37 • No. 11 INSIGHT INDEPTH 38 LEAN SUPPLY CHAIN Sometimes it’s better not SPONSOREDH.O.W.(HelpontheWay) to be so pushy. Looking to turn data into supply chain 57 40 E-COMMERCE action? Wondering how to manage your 5 steps to an efficient carrier relationships after the ELD mandate? fulfillment center. Trying to transform the supply chain for 42 VIEWPOINT omnichannel retailing? Find out H.O.W. Using KPIs to optimize to handle these challenges in our annual transportation data. compilation of logistics best practices. 88 LAST MILE U.S. primed for SPONSOREDInnovationintheAirCargoSpace Amazon HQ. With an emphasis on speed and service, Rickenbacker International 64 Airport helps shippers move freight with speed, care, and efficiency. INFOCUS 21 NOTED 25 TRENDS Young professionals find happiness in supply chain careers; industrial companies face a gap between the Internet of Things and ERP; U.S. Bank launches a new barometer for assessing the U.S. shipping INFO industry; the right strategy can help retailers of any 72 WEB_CITE CITY size meet customer shipping demands. 76 WHITEPAPER DIGEST 29 GLOBAL Shippers are keeping a close watch on Cuba, and analyzing market and product gaps 80 IN BRIEF waiting to be filled; Chilean multinational logistics agency Agunsa has teamed up with Japanese shipping firm K-Line to form a dedicated automotive logistics company, KAR 84 CALENDAR Logistics; UPS and SF Holding joint venture receives regulatory approval in China. 85 CLASSIFIED 78 PRODUCT SPOTLIGHT 86 RESOURCE CENTER Highlighting the latest forklift innovations. 4 Inbound Logistics • November 2017 Alaska is everywhere. As the fifth-largest airline in the U.S., we now serve more than 100 destinations across North America. Plus our new, all-cargo freighters provide more capacity than ever. No matter what you ship and where you ship it, Alaska Air Cargo will make it happen. For more information or to book your shipment, visit alaskaair.com/cargo or call us at 1-800-225-2752. GotAlaskaAirCargo_ad1117.indd 3PL challenges? 1 Get free expert solutions at inboundlogistics.com/3pl 10/17/17 3:51 PM HOW SUPPLY CHAIN MANAGERS CAN USE ARTIFICIAL INTELLIGENCE bit.ly/SC_Artificial_Intelligence QUICKBYTES ONLINE COMMENTARY INBOUND LOGISTICS PODCAST Staffing Your Warehouse: The IL Podcast provides the most Addressing Hidden Risks bit.ly/StaffingYourWarehouse relevant and topical information Staffing is key to your warehouse’s ability to grow and handle peak season from the third-party logistics and supply chain management demand. Here’s how to minimize your exposure to potential labor issues. world as presented by influential thought leaders in the industry. How Supply Chain Managers Can Use bit.ly/ILMagPodcastPage Artificial Intelligence bit.ly/SC_Artificial_Intelligence LOGISTICS & With more companies hopping on the AI bandwagon, the technology will SUPPLY CHAIN NEWS affect supply chain planning across industries. Find out which verticals For up-to-the-minute information, bookmark the IL news page. have the most to gain and how supply chain managers can make smarter Enjoy opinions, commentary, decisions. and the latest news to help you stay on top of your game. Why the Rise of the 4PL is Good News bit.ly/IL-news For Your Business bit.ly/RiseOfThe4PL WHITEPAPER DIGEST Some shippers find the 3PL model doesn’t go far enough. Here’s how to Looking for insight into supply make 4PLs work for you. chain best practices and trends? Want to review the latest logistics sector research? Our whitepaper database is packed with up-to-date information on all aspects of FOR MORE NEWS, TRENDS, AND COMMENTARY supply chain operations. bit.ly/IL_WPDigest SEE INBOUNDLOGISTICS.COM AIRFREIGHT RESOURCES Keep up to date with Find an Airfreight Airfreight Request for the very latest: Forwarder bit.ly/AirfreightDST Proposal bit.ly/AirfreightRFP bit.ly/ILMagPodcastPage Facebook “f” Logo CMYK / .eps Facebook “f” Logo CMYK / .eps Inbound Logistics’ Air Forwarder Decision Use this Airfreight Forwarder RFP to have facebook.com/InboundLogistics Support Tool allows you to select the time-definite solutions experts look at your @ILMagazine services that match your needs, then expedited challenges and needs, and give linkedin.com/company/ generate a list of qualified airfreight you free, no-obligation advice, solutions, inbound-logistics forwarders that match your selections. You and information specific to your request. youtube.com/user/InboundLogistics can also submit an RFP automatically. 6 Inbound Logistics • November 2017 For next-day delivery with a smooth finish. Reliable next-day delivery from an industry leader. Reddaway is the full-bodied leader