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THE MAGAZINE FOR DEMAND DRIVEN LOGISTICS
December 2009 • Vol. 29 • No. 12 INSIGHT INPRACTICE 2 CHECKING IN Shippers get less lip service, more READER PROFILE Terri Sheely: Internal Combustion customer service. Terri Sheely, purchasing and traffi c manager for manufacturer Altronic, 16 CARRIERS CORNER faces the daily challenge of fi lling orders with six- to eight-week lead The road to economic recovery. times — when it takes six to eight months to get the components needed 20 GREEN LANDSCAPE to build the products. Achieving sustainability goals. INFO INDEPTH 54 WEB_CITE CITY 58 CALENDAR The Customer Service Connection No longer a straight line between logistics providers and 59 CLASSIFIED shippers, customer service in today’s retail supply chain 61 RESOURCE CENTER involves all players.
SNAPSHOT: FOOTWEAR INBRIEF Moving Shoes Is 4 10 TIPS No Easy Feat Selecting the right port. Dealing with shifts in global 9 IN FRONT manufacturing, limited product lifecycles, and inventory complexity 10 TRENDS keeps the footwear supply chain on its toes. New partnership good news for rail users…Companies keep inventories fl ush to beat recession. CAREER SOLUTIONS 12 GLOBAL LOGISTICS Where Are They Now? Electronics manufacturing shifts A Reader Profi le Reunion from China…South Africa struggles Since 2002, Inbound Logistics’ Reader Profi le column has introduced with sustainability. readers to more than 90 colleagues who work in logistics and supply 56 IN BRIEF chain management. Many of those professionals have since moved on 64 LAST MILE: LAND OF THE from the jobs they held when we visited with them. Let’s catch up. RISING BAR CODE
December 2009 • Inbound Logistics 1
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Vol. 29, No. 12 December 2009 THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS www.inboundlogistics.com STAFF PUBLISHER Keith G. Biondo by Felecia Stratton | Editor [email protected] EDITOR Felecia J. Stratton [email protected] SENIOR ASSOCIATE EDITOR Joseph O’Reilly [email protected] ASSOCIATE MANAGING EDITOR Catherine Harden [email protected]
CONTRIBUTING EDITORS Less Lip Service, Merrill Douglas • Cindy Dubin • Robert Malone Amy Roach Partridge • Deborah Ruriani More Customer Service CREATIVE DIRECTOR Michael Murphy [email protected] hen times are good, everyone says they are focused on customer ser- SENIOR DESIGNER Mary Brennan vice, but admittedly some of that is lip service. When times are bad, [email protected] W are carriers and service providers truly focused on providing you PRINT/WEB PRODUCTION MANAGER Shawn Kelloway good customer service, or are they cutting customer service corners? Are you [email protected] as concerned about customer service these days, or is it all just about price? PUBLICATION MANAGER Sonia Casiano [email protected] When I met with carriers, logistics service providers, and Inbound Logistics CIRCULATION DIRECTOR Carolyn Smolin readers at two recent industry conferences, I heard repeatedly that in a chal- lenging economy, customer service grows exponentially more important. It’s SALES OFFICES too expensive for service providers to acquire new customers if they lose your PUBLISHER: Keith Biondo (212) 629-1560 • FAX: (212) 629-1565 business. As one provider told me, “It’s time to hug our customers.” [email protected] Carriers and service providers are showing the love in different ways. WEST/MIDWEST/SOUTHWEST: Harold L. Leddy Some are increasing their use of shipment sharing. Even though they have (847) 446-8764 • FAX: (847) 446-7985 talked about it in the past, service providers say in a down economy they are [email protected] Marshall Leddy more willing to share to provide the best customer service. Others are con- (763) 416-1980 • FAX: (763) 201-4010 tinuing to invest in technology, despite tough times, to help them sort out all [email protected] the variables. MIDWEST/ECONOMIC DEVELOPMENT: Jim Armstrong And logistics partners are more actively managing vendors on shared distri- (815) 334-9945 • FAX: (815) 334-1920 [email protected] bution regimes. They are also more willing to invest in assets to get a project SOUTHEAST: Gordon H. Harper off the ground, such as strategically placed new facilities and project-specifi c (404) 350-0057 • FAX: (404) 355-2036 technologies. And many are much more willing to own inventory and collab- [email protected] orate with shippers/vendors in their quest to provide great customer service. MOBILE, AL: Peter Muller (251) 343-9308 • FAX: (251) 343-9308 It’s not purely economic reasons driving you to demand a higher level of [email protected] customer service from your carriers and service providers. As many 3PLs told NORTHEAST: Rachael Sprinz me, today’s business logistics managers are smarter and more sophisticated. (212) 629-1560 • FAX: (212) 629-1565 You know more about technology and what you want it to accomplish. You’re [email protected] more aware of strategic concepts, such as managing demand, and insist on FREE SUBSCRIPTIONS the service needed to accomplish those goals. www.inboundlogistics.com/free
But customer service is not a one-way street. Getting good customer service Inbound Logistics supports sustainable from your carriers and service providers enables you to provide good service best practices. Our mission is rooted in helping companies match demand to supply, to your customers, as you’ll learn in this month’s cover article, The Customer eliminating waste from the supply chain. This magazine is printed on paper sourced Service Connection (page 22). We call this the customer service supply chain, from fast growth renewable timber. where buyers of your products can only get good customer service if you have Inbound Logistics welcomes comments and submissions. Contact received it from all parties in your value chain. us at 5 Penn Plaza, NY, NY 10001, (212) 629-1560, Fax (212) 629- 1565, e-mail: [email protected]. For advertising, Carriers and service providers that demonstrate their commitment to cus- reprint, or subscription information, call (212) 629-1560, or e-mail tomer service through these initiatives and others need your support and [email protected]. Inbound Logistics is distributed without cost to those qualifi ed in North America. Interested collaboration. If they want to hug you, it’s time to hug them back by pro- readers must complete and return the qualifi cation card published in this issue, or may subscribe online at www.inboundlogistics. viding them access to information they need to keep their customer service com/free. Subscription price to others: in North America: $95 per year. Foreign subscriptions: $129. Single copy price: No. Amer. $10, commitments. foreign $12, back issues $15. Periodicals postage paid at New York, Then it will be more about customer service than lip service. ■ NY, and additional mailing offi ces.
2 Inbound Logistics • December 2009
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by Deborah Catalano Ruriani
Selecting the Right Port for Your Transport Needs
orts around the country vie to be movement. It should also have a plan for Prepare for the unexpected. Consider the first choice for shippers’ sup- handling periodic increased ocean and a port that offers alternative ser- P ply chains by providing a wealth intermodal volume. 7 vices to container transport, such as of intermodal connections, capacity, an ability to handle traditional break- and distribution facilities. Various mem- Know the port’s restrictions. Weight bulk cargo; oversized, over-dimensional ber seaports of the American Association limits for various cargoes vary by city project cargo; or roll-on/roll-off cargo of Port Authorities offer the following 4 and region. Overhead obstructions ranging from automobiles and tractors strategies for selecting a port to fit your (bridges, tunnels, pedestrian walkways) to military equipment. specific shipping needs. and dimensional restrictions (vehicle/ trailer length, width, and height) can Calculate the port’s savings potential. Consider proximity. You can cut trans- hinder port access, while routes into Determine if the port has processes portation costs by using a port located and out of ports might require trucks to 8 in place to reduce overall transporta- 1 near your trading partners. Also be encounter multiple traffic lights or drive tion costs. For example, is there adequate sure there are warehouse, distribution, through light commercial or residential capacity to eliminate congestion? Are and transload facilities nearby that can areas. procedures streamlined to reduce load- accommodate your containers and other ing/unloading times and prevent delays? cargo loads. Look for a stable, predictable reg- Ports with facilities for transferring fuel, ulatory environment. Consider a food, water, waste materials, and sup- Examine workforce availability. The 5 port that has a strong relationship plies all in one place can shave hours off port should have access to an expe- with and proven record of collaborating a vessel’s time – and costs – at dock. 2 rienced workforce with a reputation with industry, regulators, and legis- for reliability. Don’t just shop price – reli- lators – including on environmental Investigate the port’s container and ability and good service are equally, if issues – to benefit shippers. Make sure vessel tracking tools. What kind of not more, important. Make sure port the port is compliant with federal secu- 9 technology capabilities does it have? management has a good relationship rity initiatives. Can you also use those tracking tools for with its existing labor force. Internet access, e-mail, and text mes- Note Foreign Trade Zone (FTZ) sages? Does the port provide a toll-free Evaluate the port’s investment in access. If you are involved in number? its infrastructure. The port should 6 zone-to-zone transfers, exporting, 3 be taking steps such as enhancing international returns, or quality control Check the operating hours. Does its navigation channel access, reducing inspections, select a port that has an the port have convenient operating landside congestion, expanding ter- approved and active FTZ to take advan- 10 hours to access port services? minal capacity, and working on better tage of the cost reductions associated Investigate the dwell times between ship intermodal options for improved goods with these activities. and rail. n
4 Inbound Logistics • December 2009
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FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl READER PROFILE by Merrill Douglas
Internal Combustion
ne tricky aspect of Terri Sheely’s work communication among themselves, the sales is the way her company, Altronic, force, and suppliers, buyers usually manage to O manages inventory. “We don’t carry a match inventory with demand. “Very seldom lot of finished products,” says Sheely, purchasing are we unable to honor a customer delivery,” and traffic manager at the Girard, Ohio, firm she says. that makes ignition systems and digital Throughout her career, Sheely has proven instrumentation used in large engines that that she’s determined to get product where it pump natural gas. needs to go, even in the face of daunting obsta- But when a customer places an order, Altronic cles. While working for Houston, Texas-based needs to deliver fast. “We quote customers very automotive supplier Eastwood Manufacturing, short lead times,” Sheely says. “Six to eight she once had to get parts to a plant in Oklahoma weeks is typical.” The trick lies in the fact that it City quickly. She arranged for the parts to hitch often takes six to eight months to get the com- a ride on a Lear jet, then drove them to the local ponents Altronic needs to build its products. airport, only to find that the plane was already That means Sheely and the three buyers who taxiing for takeoff. So she drove her car onto work for her must predict which components the runway. they need to keep in stock to fill the orders they “The airport managers weren’t too happy with are likely to receive. Ready for “We don’t formally forecast,” Sheely says. Ignition But based on experience, and with continual The Big Questions
NAME: What do you do when you’re Terri Sheely not at work? TITLE: Purchasing and traffic manager, since 1988 My husband and I usually have a “do-it- yourself” project in progress at home. We COMPANY: Altronic, Inc., Girard, Ohio built a large garden shed last year and PREVIOUS Rate clerk, Commercial Lovelace Motor Freight; traffic department, we’re currently remodeling our kitchen. EXPERIENCE: General Motors, Lordstown, Ohio; rate clerk, White Star Trucking; In addition, I teach classes at Youngstown traffic manager, Eastwood Manufacturing; instructor, Youngstown State University for purchasing and supply State University. chain professionals who are preparing for certification exams. I also like to travel. EDUCATION: APICS-certified in capacity planning and inventory Ideal dinner companion? control; lifetime ISM- Albert Einstein. It would be interesting to certified purchasing find out his take on today’s technologies. manager and accredited purchasing practitioner. What’s in your briefcase? My computer, documents, a crossword puzzle book, an iPod, and some pens and pencils. If you didn’t work in supply chain management, what would be your dream job? Artist or landscape photographer. Business motto? Don’t ever say “I can’t” or “I won’t.”
6 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl me, but they did stop the plane and I got have forced the customer, a large manufacturer Hoerbiger has completed the parts on,” Sheely says. She couldn’t engine manufacturer, to shut down a its recent acquisition of Altronic. For one do that sort of thing in these less inno- production line. thing, the U.S. company will implement cent times, she concedes. Sheely worked with U.S. and Mexico the same SAP enterprise resource plan- More recently, a real criminal act Customs and the supplier to get the ning system its new parent uses. nearly halted a shipment to one of trailer released and hauled away by a Having gone through the implemen- Altronic’s customers. A truck carrying different tractor. The negotiations took tation of an enterprise solution before, critical parts from a Mexican supplier two weeks. Sheely says she looks forward to the was stopped for inspection at the border. The customer got by during that experience, even if it’s difficult. She’s The load itself was fine, but inspectors period, though, and didn’t impose any eager to use the new software. found every hollow space in the cab charges. “They understood that it was a “I’ve heard from many suppliers packed with drugs. hired truck and it wasn’t the fault of any- that if it doesn’t kill you while you’re “Inspectors threatened to hold the one involved in the move,” Sheely says. implementing it, you will grow to appre- truck at the border for three or four The drug bust was dramatic, but ciate the system’s capabilities,” she says. months while they tore the tractor Sheely anticipates adventures of a “There’s nothing like a good challenge apart,” Sheely says. The delay would more conventional sort now that Swiss to keep things interesting.” n
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FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND d@ta point “Manufacturing production INFRONT growth will decline 11.3% this year before rebounding to UP THE CHAIN Organic Alliance, a grower SVP Worldwide, the world’s 4.6% growth in 2010 and to and shipper of organic- largest sewing machine certifi ed, fair trade and company, named Rick 6% growth in 2011.” — MHIA conventional fresh foods, Kerrigan senior vice president appointed Christopher of supply chain. Bringing B. White director of global experience from Owens supply chain development. Corning and Formica Corp., White is charged with Kerrigan will be responsible expanding the company’s for leading global operations WINNERS international producer and supply chain, including Ocean Spray Cranberries presented network as well as managing research and development, Exel Transportation with its Special contract negotiation, quality engineering, and quality. Services Carrier Award for exceptional control screening, and export/ service and on-time delivery performance. During the evaluation import logistics. period, Exel delivered more than 3,800 loads as scheduled 98 percent of time. Thomas Andersson is Sears Holdings Corporation named Menlo Worldwide Logistics leaving Volvo to become a 2008 Partner in Progress for the second consecutive year and executive vice president and third time overall. In addition to transportation management head of the supply chain for Husqvarna and garment inspection services, Menlo handled the seamless — the world’s largest integration of fi ve cross-dock operations. producer of lawn mowers and chain saws. Previously head of the auto company’s engine and SEALED DEALS transmission manufacturing department, Andersson will Car care products company Turtle Wax has chosen LeSaint now oversee production, Logistics as its warehousing, fulfi llment, and transportation purchasing, and logistics. provider. The agreement will deliver cost savings to Turtle Wax through LeSaint’s end-to-end supply chain solutions, backed by real-time inventory tracking and control. MSC Industrial Direct, which John “Jack” D. Fish distributes metalworking has been named senior Halfords, the U.K.’s leading retailer of car parts, and maintenance supplies vice president of global bicycles, and travel solutions has selected to industrial customers, has operations at the Goodyear Manhattan Associates’ Distribution promoted Douglas Jones Tire & Rubber Company. Management suite to support its growing from senior vice president Joining the tire business distribution footprint, comprised of a new of logistics to executive vice from General Electric, Fish national distribution center and an existing president of global supply will oversee manufacturing DC in Redditch, which serve Halfords’ network chain operations. He will now and related supply chain of nearly 500 stores in the United Kingdom, be responsible for product activities throughout all of the Ireland, and Central Europe, as well as management and global corporation’s global units. fulfi llment for its online business. sourcing.
6 12.01 GREEN SEEDS Most companies are introducing carbon-reduction solutions without understanding their carbon footprint. Th erefore, they are unable to measure the real impact those solutions have on their emissions. Only 10 percent of companies actively model their supply chain carbon footprints and have successfully C? implemented sustainability initiatives, according to Accenture survey fi ndings. Carbon
December 2009 • Inbound Logistics 9
RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl TRENDS
U.S. Domestic Intermodal: Stack’n The Box acer International and Union Pacifi c (UP) have entered a multi-year Parrangement that allows the intermodal company continued access to the railroad’s network. That’s welcome news to some rail users. Foremost, the announcement puts to rather than dually operating as an asset rest speculation about the company’s ten- broker in the intermodal marketing com- uous fi nancial position. Pacer will use the pany (IMC) space. by Joseph O’Reilly $30-million cash infusion received as part For its part, Union Pacific has been of the deal to reduce outstanding debt. In equally busy speculating new partnerships. return, UP will receive preferential pricing In June 2009, Hub Group transferred the for some of its business, and control man- bulk of its containers to the Omaha-based agement and pricing for Pacer’s assets. carrier, making the railroad its preferred More telling, the partnership estab- western intermodal carrier. Hub Group is lishes a new rate structure for intermodal in the process of migrating 8,400 boxes – users while pressing Pacer to focus on inte- 90 percent of its assets – from Burlington grated door-to-door services. This means Northern and Santa Fe’s (BNSF) network to the company will direct resources and ser- Union Pacifi c. The remaining containers vices specifically toward retail channels will stay with BNSF.
10 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS
In an interview with Inbound Logistics, Hub Group President and COO Mark Leaning on More Yeager said he anticipates a general stabi- ven with less freight in the supply lization of intermodal rates for shippers Echain and tepid consumer demand, as the railroad controls more intermodal companies are more inclined to keep equipment pricing and sells directly to inventories flush rather than lean, IMCs and rail users. according to Walt Rakowich, CEO of Hub Group’s own asset consolidation, Prologis, a Denver-based global provider which was previously split 60 percent/40 of distribution facilities. percent between BNSF and UP, will bring Speaking with journalists in New York greater simplicity to customers, added City recently, Rakowich explained that David Marsh, chief marketing officer, despite recessionary tactics, Prologis cus- Companies are reconfi guring supply chains Hub Group. “It creates operational effi - tomers are looking at their warehouse to manage more inventory in smaller distribution spaces closer to demand. ciencies with fewer terminals, faster box footprints to reduce total logistics costs. turnaround, and better equipment utili- “Companies are reconfi guring sup- smaller facilities closer to demand. zation,” he noted. ply chains to generate savings,” he said. “When the price of oil reached $140 Both arrangements with UP augur an “Some are increasing inventories and a barrel, our customer base was dramati- expected swing in U.S. domestic trans- adding distribution centers, locating cally impacted,” added Charles Sullivan, portation. As more shippers make a more inventory closer to the consumer head of global operations for Prologis. concerted effort to transition over-the- and reducing transport costs.” “Some realized they may not need one road freight to rail, capturing economies This shift follows distribution decen- million square feet of warehousing space of scale and reducing carbon footprints, tralization, as shippers transition from here, but rather 250,000 square feet here intermodal momentum will build. fewer big-box warehouses to more, and there.” ■ “Intermodal is a niche movement that is becoming mainstream,” said Marsh. “Domestic demand has held up even though imports have been down.” Even while control over assets is becoming more centralized, the U.S. rail network is expanding – and intermodal’s reach is downsizing. “Fifteen years ago, intermodal was appropriate for hauls longer than 1,000 miles,” Marsh said. “Today, it’s 500 miles or fewer. The mile- age band for intermodal has shrunk as its footprint expands.” One question is whether more favor- able rates from the railroads will match customer service expectations. The We transform logistics to handle anything. railroad’s increasing monopoly over assets and access will likely raise other concerns, especially as some captive Our flexibility and exceptional Client Concierge Service shippers lobby for more industry regu- transforms the concept of logistics into more than you lation. Alternatively, this shift will likely ever thought possible. Contact us today to find out how. raise the profi le of IMCs and rail-specifi c 1.800.787.2334 www.corporate-traffic.com/ILM service providers that can fi ll this niche and provide value-added capabilities.
December 2009 • Inbound Logistics 11
RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl GLOBAL LOGISTICS by Joseph O’Reilly
Electronics Manufacturing Switches Current utsourcing manufacturing to insourcing by original equipment manufacturing outsourcing has resulted OChina remains a viable strategy for manufacturers (OEMs) are slowing the in other countries – notably Mexico, many global companies. But the coun- migration of high-tech production India, and Vietnam – becoming more try’s developing economy, expanding to China, suggests a recent report by cost competitive,” says Eric Miscoll, consumer base, rising labor costs – and Charlie Barnhart & Associates, a Kihei, principal, Charlie Barnhart & Associates. increasing global competition – has Hawaii-based global electronics manu- “Mexico should benefi t from this trend, some industries reconsidering where facturing think tank. especially for goods destined for the they source product. “The rising cost of labor in the most U.S. market.” Labor costs, total landed costs, and popular destination for electronics Electronics manufacturers are also becoming more proactive in considering the total landed logistics costs of ship- ping product longer distances. They are now evaluating labor along with trans- portation, inventory, and other metrics. “A signifi cant, yet still minor, industry trend is that some OEMs are returning to a degree of ‘self-build,’” adds Miscoll. “Most OEMs maintained in-house man- ufacturing capabilities, even while outsourcing a majority of their printed circuit board assembly, which is the primary service of the electronic manu- facturing services industry.” Charlie Barnhart & Associates doesn’t expect the global outsourcing pendu- lum to swing back until 2012. By then, companies will likely be exploring low- cost countries such as India, Vietnam, Ukraine, Tunisia, and Macedonia.
Rising labor costs in China and pressures to bring manufacturing in-house are causing electronics companies to plug into new global outsourcing strategies.
12 Inbound Logistics • December 2009
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RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl GLOBALLOGISTICS ‹‹ CONTINUED FROM PAGE 12
Hitching a Ride on the Green Train Brussells Airlines tobart Group’s new intermodal service between Valencia, Spain and Dagenham, Sprouts In Africa SEngland isn’t your garden variety. The weekly offering, operated in concert with ufthansa subsidiary Brussells German rail carrier DB Schenker, provides a low carbon alternative for retailers and Airlines has found an consumers sourcing fresh Spanish greens and other produce. Lunlikely growth market in The service, which covers 1,100 miles, offers a novel approach to transporting per- an otherwise turbulent air ishable shipments in a more sustainable manner. cargo industry. The Belgian air “This service offers supermarkets and consumers a quicker and much lower car- carrier’s freight business from bon alternative than importing fresh fruit and vegetables from Spain by road,” says Europe into Africa is showing Andrew Tinkler, CEO of Stobart Group. “We will start the new service with one steady progress compared to train per week, but plan to develop this other international markets. In October 2009, the company into a daily service, increasing the effi - recorded the second-highest ciencies and environmental benefi ts by Green Thumbs Up monthly volume of cargo and a factor of fi ve.” The Stobart Group’s rail service mail traffi c in its history. Stobart is also exploring opportuni- between Spain and England ties to extend the train service from the features a number of notable current terminal in Dagenham to its achievements, including: multi-modal facility at Widnes, which The potential to eliminate 8.5 is an ideal hub for distribution through- million miles of road journeys out the UK heartland. per year, equating to 9,507 tons “An extension of the train to this facil- of CO2 emissions. ity would take more trucks off Britain’s The fi rst fully refrigerated crowded road network and increase the train service to transit the total carbon savings for the transport of Eurotunnel. Partnering with European oranges, lemons, and other Spanish fruit Cargo Services (ECS), a French and vegetables,” Tinkler says. The longest train journey in Europe by a single operator. sales and services agent, allowed “At Widnes, we also have extensive the carrier to generate 1,155 chilled warehouse and distribution facil- A faster journey time tons of southbound traffi c — a ities, adding further synergies as part than over-the-road, with 97-percent load factor — narrowly of our multimodal logistics offering to corresponding improvement missing the previous highest Stobart customers,” he adds. in produce shelf life. monthly volume of 1,194 tons in October 2008. ECS sells belly hold cargo capacity on Brussels Stobart Group’s new intermodal service between Spain and Airlines’ Airbus A330-300 fl ights England offers a timely, cost-effi cient, green alternative to moving to 14 markets across Africa. perishable products over the road. “Compared to other continents, Africa has been less affected by the economic crisis,” says Guy Hardy, head of cargo sales for Brussells Airlines. “We expect fi nal revenue for 2009 — a year of damage control for the air cargo industry — to be close to 2008 results.” As soon as Brussells sees signs of a sustained economic recovery in 2010, it will explore bringing additional capacity into the African network by either opening new destinations or increasing frequencies on existing routes.
14 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND South Africa Struggles With Sustainability hile many countries and businesses Terranova’s research reports that 41.3 percent of South African companies tak- Waround the world are debating the percent of participating companies have ing part in this survey to adopt new and merits of climate change policies, and no plans to incorporate metrics that important environmental KPIs is alarm- taking measured approaches to imple- measure their impact on the environ- ing, particularly in light of the country’s menting green best practices, others ment. The key performance indicators precarious energy situation,” observes haven’t even approached the table. (KPIs) listed in the survey include energy Graham Terry, head of the Offi ce of the Failing to apply and comply with green consumption and carbon emissions Executive President at the South African supply chain best practices can stress from supply chain operations; water Institute of Chartered Accountants. economic growth and recovery, a real- consumption from manufacturing oper- South African companies that want to ity that is unfolding in South Africa. ations; infrastructure simplifi cation; and get ahead of the competition and posi- More than 40 percent of surveyed reverse logistics. tion themselves for long-term growth companies in South Africa are not imple- Green non-compliance hampers the urgently need to start thinking green menting environmentally sustainable country’s competitiveness on a global and developing sustainable approaches business strategies – potentially jeopar- scale, the study suggests. South African to sourcing and supply chain manage- dizing their own long-term sustainability, companies manufacturing products for ment, adds Terry. notes a recent study exploring cross- export will fi nd it increasingly diffi cult “The competitive realities of the cur- industry sustainability efforts. to escape international pressure – par- rent economic environment demand The Supply Chain Intelligence Report ticularly from the United States and that companies proactively manage (SCIR) 2009, conducted by Terranova Europe – to monitor and report on their new customer needs and expectations, Research, an England-based market operations’ environmental impact. as well as increasing environmental reg- research company, surveyed more than “The unwillingness of more than 40 ulations,” he notes. ■ 200 senior company offi cials across all major industries in South Africa (see side- bar below). THE FINAL PIECE . . .
Environmental Compliance by Vertical South Africa’s well-entrenched natural resource industries are leading the way in terms of green best practices – but there is still much room for improvement. In terms of the percentage of respondents to Terranova’s survey who are not, nor plan to start, measuring environmental key performance indicators, here THE is a rundown of how South Africa’s key industries are performing: RIGHT FIT. 51% Awarded Top 100 Great Supply Chain Mining and Quarrying Partner by Supply Chain Brain magazine 45% Oil, Gas, and Chemicals Picking your logistics partner should be so easy. Corporate Office 36% Construction At the Laufer Group, we have been providing Laufer Group International Ltd. 36% Retail global logistics management solutions for 20 Vesey Street, Suite 601 34% the smallest of companies to the largest of New York, NY 10007-2913 Automotive corporations for over 60 years. T s F s LAUFERCOM 33% Fast Moving Consumer Goods Source: The Supply Chain Intelligence Report (SCIR) 2009, Terranova Research LAUFER GROUP INTERNATIONAL LTD. Getting it there just got easierTM
December 2009 • Inbound Logistics 15
RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl John A. Simourian is founder and chairman of Lily Transportation Corp. 781-449-8811 • [email protected] CARRIERS CORNER by John A. Simourian
On the Road to Recovery: Strengthening Our Transportation Infrastructure
lthough the Dow was recently needed at all government levels to repair National recovery is dependent on flirting with 10,000, there is and improve bridges and roads, accord- this tax increase, which will yield $120 A no celebration on Main Street. ing to Department of Transportation billion per year. The current federal gas- This is a jobless economic recovery, and and Association of State Highway and oline and diesel fuel tax is 18.4 cents and without job growth there will be no sus- Transportation Officials estimates. In 24.4 cents, respectively, and generates tainable economic recovery on either January 2009, Ernst & Young and the approximately $35 billion. Neither tax Main or Wall Street. Compounding the Urban Land Institute arrived at the has been increased since 1993. loss of jobs is the explosive economic same conclusion in their Infrastructure A permanent fi xed fl oor for fuel prices growth of China and its ominous effect 2009 Pivot Point report. Despite these needs to be created with taxes in order on U.S. debt, standard of living, and geo- expert reports, however, the American to attract investment in alternative political infl uence. Recovery and Reinvestment Act of 2009 energy and new fuel-effi cient technolo- While our government obsesses over includes only $27.5 billion for repairing gies for motor vehicles. To be sensitive to health care, Rome is burning. President bridges and roads. consumer pocketbooks, this tax should Obama and his advisors don’t seem to be pegged to the price of oil, not the understand that the overwhelming prob- SATISFYING THE SHORTFALL Consumer Price Index, so that when the lem that needs to be fi xed is the loss of Because the U.S. national debt will price of oil goes up, the tax goes down jobs. Furthermore, they don’t recognize exceed $12 trillion by the end of 2009, and vice versa. the critical path to economic recovery, the federal government will be con- energy independence, and world leader- strained from printing money and OUTLINING THE BENEFITS ship is bolting a national transportation increasing its debt load to plug the huge Political opponents argue that increas- infrastructure plan to a national energy shortfall in funding bridge and road ing fuel taxes is a non-starter because of plan. Like China, the United States maintenance. The shortfall must be sat- the state of the economy. But this reces- needs to recognize the strategic value of isfi ed by increasing federal fuel taxes 50 sion is precisely the right time to raise a national transportation infrastructure cents per gallon in 2010 and, thereaf- taxes because fuel prices are the lowest and energy master plan. ter, an additional 15 cents per gallon to they’ve been since 2002. In 2008, a minimum of $150 bil- replace the one-time $27.5 billion pro- Increasing fuel taxes to fund infra- lion per year for the next fi ve years was vided in the Stimulus Plan. structure construction provides the
16 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND More than 35,000 miles of highways and interstates are in NEW JERSEY
Johnson & Johnson , Campbell’s Princeton Power Systems ,IDT Shiseido Cosmetics America The company we keep, keeps getting better. sanofi-aventis U.S. ,Prudential Jaguar Land Rover North America Verizon ,COSCO Americas Inc.
New Jersey’s strategic location—halfway between Boston and Washington, D.C.— means overnight delivery to more than 100 million consumers who purchase $2 trillion in goods and services annually.
Programs & Services Although companies locate in New Jersey for many reasons, the ability to ship goods to Site Selection Assistance market quickly and efficiently is especially crucial. The state was recently ranked #1 in Permitting and Regulatory Facilitation the country for transportation, warehousing and highway connectivity and #2 for railroad State Program Coordination service.* New Jersey also has the largest port complex on the eastern seaboard with facilities Export Assistance Financing, Loans & Loan Guarantees in Newark and Elizabeth, supplemented by major ports on the Delaware River. These ports Incentive & Tax Credit Programs handle more than 620 million tons of freight, valued at over $850 billion annually. And, with two major airports—Newark Liberty and Atlantic City International—New Jersey serves as an intermodal gateway for trade across the country and around the world.
As the third largest industrial real estate market in the country (with nearly 800 million square feet of space), New Jersey offers a wide range of choices. The state has more than 23,000 establishments devoted to warehousing, logistics and distribution; 3,000 warehouse facilities have ceiling heights over 20 feet.
A number of major firms that store and move their products, as well as the thousands of logistics firms that serve them, are located in New Jersey. Contact us at 866-534-7789, we’ll put you in touch with one of our Account Executives so you can learn more about why New Jersey is the right place for your business.
*Expansion Management Magazine www.NewJerseyBusiness.gov s 866-534-7789
IL/1209
RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl CARRIERSCORNER ‹‹ CONTINUED FROM PAGE 16
foundation for a national transporta- U.S. motor vehicle industry and related as creating millions of jobs, reviving tion infrastructure and energy master manufacturing sectors. This will create the economy, increasing housing val- plan that can produce enormous bene- additional jobs. ues and alternative energy investment, fi ts, including the following: ■ A permanent fuel tax increase will boosting the stock market, recapturing ■ The taxes will fund basic infra- create a fi xed fl oor for fuel prices, giv- lost retirement fund wealth, and reduc- structure requirements for the next ing investors the confi dence to invest ing carbon emissions. fi ve years. in alternative energy: wind, solar, and The United States rose to world ■ Infrastructure construction will especially nuclear. This will not only leadership in the 20th century create more than six million jobs. Each create more jobs, but will be the catalyst because we had confi dent leaders who $1 billion invested in infrastructure will to wean the U.S. economy off oil and understood risk, accepted responsibility create 35,000 to 40,000 direct construc- put it fi nally on a path to energy inde- for tough decisions, and made sacrifi ces tion jobs that will cascade into indirect pendence. It will also eliminate the need that promoted the welfare of the country. jobs throughout the economy, accord- for complex cap-and-trade regulations. Today’s economic crisis presents a golden ing to Department of Transportation, opportunity to rebuild our infrastructure, Association of State Highway and A STRONGER TOMORROW restart our economy, and execute a plan Transportation Officials, and Ernst & If the government explains a fuel tax for energy independence and climate Young estimates. increase in these terms, the American change. Now is the critical moment for ■ A permanent fuel tax increase people will buy it enthusiastically. A 50 our leaders to choose this strategic course will attract investment in fuel-effi- cents per gallon increase in federal fuel to fi x our economy and secure our world cient vehicles to help revitalize the taxes will provide indirect benefi ts such leadership in the 21st century. ■
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Change Agents Periodic Table of 3PLs 3PLs Transform Business The Top 100 Providers: Who they are, what they do Analyzing 3PL Trends Exclusive Market Insight Supply Chain Reaction and Perspectives Readers Choose the Top 10 3PLs
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18 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND CRST INTERNATIONALONAL CRST VAN EXPEDITED | CRST DEDICATED SERVICES | CRST MALONE | CRST CAPACITY SOLUTIONS | CRST LOGISTICS
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CRST THE TRANSPORTATION SOLUTION
RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl Rich Becks is senior vice president, strategic demand-supply solutions, E2open. 720-304-3003 • [email protected] GREEN LANDSCAPE
SUSTAINABILITY by Rich Becks IN THE SUPPLY CHAIN
Eco-operation in Action: Collaborating to Achieve Green Goals
s a company with tens of thou- within the next year. Developing the answers to these ques- sands of suppliers around the The study, sponsored by industry tions remains an ongoing challenge. A globe, Walmart’s bold move group Acceleration of ECO-Operation, to promote a sustainability index also indicates, however, that 60 per- A BRIGHT HORIZON has planted new seeds across entire cent of companies have marginal, very The rise of global environmen- industries. It’s a significant event for low, or no visibility across their supply tal regulation and Walmart’s timely manufacturers, and has caused many chains, making carbon emissions or announcement have raised concerns businesses to take notice of new cus- resource reduction programs seem like everywhere about the ability of supply tomer aspirations and re-think their an incredibly daunting task. chains to gain reliable access to the data supply chain designs. The report offers insight into how customers require. Walmart’s efforts to reduce carbon supply chain executives are achieving The technology is available today to and resource footprints will drive a sig- greater environmental sustainability, help companies navigate multiple tiers nifi cant change throughout the industry and identifi es how to help improve visi- of their supply chains to aggregate and and ultimately the world. Thanks to its bility, collaboration, and accountability manage their environmental footprints. many trade partnerships, the company across global value chains. This new way of balancing environ- has the opportunity to not only improve Survey respondents indicate they are mental challenges with core business the quality of the products it offers cus- beginning to embrace the benefits of execution involves using environmental tomers, but also eliminate sources of better trading partner relationships by metrics – such as water usage, hazardous unnecessary cost within its partners’ seeking ways to improve supply chain materials, or carbon emissions – as driv- supply chains. visibility and working with trading part- ers to achieve operational excellence ners to reduce resource and greenhouse resulting in lower costs. SURVEYING THE FIELD gas emissions. With clear visibility into the whole Consumer awareness and increased The respondents note, however, that value chain, companies can identify regulation are placing added demands the implications for themselves and opportunities to eliminate waste, reduce on companies to drive green initiatives their partners are signifi cant. For exam- costs, and orchestrate the network to and effi ciencies into their supply chains, ple: How will they collect sustainability achieve their customers’ sustainability according to a recent study among data? What should they measure, and targets while also improving effi ciency. supply chain, fi nance, and operations what really matters? How good is the Walmart’s announcement to drive pro- professionals. In fact, two-thirds of com- quality of this data? How can they use cess transparency is yet another signal panies surveyed expect their customers the information to drive down costs that the ultimate measure of sustainabil- to ask for a product’s carbon footprint and thereby recover their investments? ity is lasting profi tability. ■
20 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND
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RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl THE CUSTOMER SERVICE CONNECTION
by Amy Roach Partridge
22 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND No longer a straight line between logistics providers and shippers, customer service in today’s retail supply chain involves all players – suppliers, manufacturers, 3PLs, and carriers. They are all connected, and they must all be satisfi ed. Here’s how.
hen pet food company WellPet received the 2008 Supplier of the Year award from the Pet Industry Distributors Association, the company had a long list of people to thank. At the top was its third-party logistics provider, Scranton, Pa.-based Kane Is Able. “Before we began working with Kane, we would notW have been considered for this award,” says Beth Wilson, WellPet’s vice president of operations. “The work we’ve done with our 3PL has made a big difference in the customer service we provide to our distributors.” WellPet turned to Kane Is Able in 2004 to help improve service to its customers, the network of distributors who bring the Tewksbury, Mass.- based company’s four pet food brands – Wellness, Old Mother Hubbard, Holistic Select, and Eagle Pack – to specialty pet retailers around the coun- try. WellPet and Kane Is Able visited the operations teams at WellPet’s distributors “to learn how we could improve our customer service by bet- ter understanding the distributors’ warehouse strategies, how they handled WellPet products, and what they needed to service the pet stores most effi - ciently,” Wilson explains. The Supplier of the Year award signals that these visits, and the service changes WellPet enacted as a result, paid off handsomely.
THE CUSTOMER SERVICE LOOP WellPet and Kane Is Able’s partnership exemplifi es the importance of the “cus- tomer service supply chain” – the idea that customer service is not a one-way street between logistics providers and shippers, but rather a group effort aimed at meeting and exceeding customer expectations for all players throughout the supply chain.
December 2009 • Inbound Logistics 23
RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl By providing reliable service, 3PLs ensuring that orders to its distributors Making sure that everyone in play a key role in giving shippers the were fi lled accurately and received on WellPet’s supply chain benefits was ability to provide stellar customer ser- time, without damage, so that distribu- part of Kane Is Able’s goal from the out- vice to their customers. Indeed, 59 tors could fulfi ll their delivery promises set. The company seeks to engage its percent of shippers say that their use to pet food retailers. Kane Is Able helped shippers on a strategic level and sees of 3PLs has a positive impact on cus- WellPet implement a variety of changes effective customer service as a means to tomer service, according to the 2009 aimed at meeting those goals. that end. Third-Party Logistics Study, an annual “We restructured our pallet config- “All Kane Is Able employees are, to report from the Georgia Institute uration because we learned it wasn’t some extent, customer service rep- of Technology. effi cient for our distributors, or for us,” resentatives,” Marlowe says. “Our Regardless of a shipper’s distribution Wilson explains. “As a result, we can ultimate goal is to become a partner model – whether customers are distribu- now store more product in our ware- to customers.” tors or intermediaries who bring their houses using the same amount of space, products to market, or end consumers and we can cube out our trucks more A STRATEGIC ASSET who buy their goods or services – they effectively, which reduces costs.” That goal meshed well with WellPet’s often depend on upstream 3PL partners WellPet’s distributors benefitted, willingness to treat Kane Is Able as a to make sure all parties in the down- too. “Changing the pallet configura- strategic asset, sharing with the 3PL stream supply chain are taken care of. tion allowed our distributors to utilize detailed information such as sales vol- To be true supply chain partners, 3PLs their space more effi ciently and to cube umes and future sales projections, and must operate with a focus not only on out their racking,” adds Curtis Mendes, plans for future corporate activities. their own customers, but also on their logistics manager for WellPet. “We view Kane Is Able as an exten- customers’ customers. With an eye toward improving dis- sion of our business,” says Wilson. “The best way to provide customer tributor satisfaction, Kane Is Able also “Providing strategic information helps service for shippers is to understand helped WellPet switch to a paperless, Kane understand our business so they their customers’ pain points,” says RF-enabled warehouse management can prepare to meet our future needs.” Mike Marlowe, vice president of cus- system that cut errors and streamlined While divulging strategic business tomer development for Kane Is Able. order processes to reduce order-to-ship- information to a third party is not “3PLs that can solve those pain points ment cycle time by 24 hours. always popular with corporate manage- for them and for their customers will “These changes have been a win-win ment, the willingness to treat 3PLs as be successful.” for all parties, extending service ben- true business partners and not merely WellPet’s pain points included efits all the way through our supply vendors is crucial to helping shippers increasing warehouse efficiency and chain,” Mendes notes. receive the customer service they need.
Organic fruit and vegetable juice producer Biotta Inc. holds regular conference calls and face-to-face meetings with its 3PL to facilitate customer service and forge a deep and communicative relationship.
24 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl Taking the time and effort to ensure who ship its juices to specialty natural and has tailored a solution that ensures that providers understand your business and organic food retailers – are demand- our animal feed products are trans- and your customers is key to creating ing about orders being filled on time ported safely and securely,” says the successful shipper-3PL relationship and complete, so Biotta depends on Jonathan Brown, senior associate, pro- that brings customer service excel- Langham to manage these demands on curement, Lilly. lence to the whole supply chain, says its behalf. By keeping in close commu- Part of that solution was a procedure John Langley, professor of supply chain nication with its 3PL, Pappas and his to quickly address and solve transpor- management at the Georgia Institute team know whether they are meeting tation issues. “Optimal transportation of Technology, and author of the Third- their customers’ fi ll rates, and what to and logistics procedures are important Party Logistics Study. tweak if they aren’t. to us, and should also be important to “When shippers and 3PLs create an “We have to be on the same page,” our logistics partners,” Brown notes. open, strategic relationship, there is Pappas says. “If Langham doesn’t under- He lauds Langham for adopting Lilly’s greater opportunity for the two com- stand what metrics and services are approach to transportation manage- panies to collaborate on the kind of important to our customers, how can ment, which has helped solidify their service package they want to deliver,” they handle our business correctly?” relationship and provides data that Langley explains. “For every shipper we work with, we allows the company to improve trans- Shippers understand the value these clearly document roles, responsibili- actions throughout the supply chain. strategic relationships deliver to servic- ing customers and improving supply chain effi ciency. Seventy-fi ve percent of survey respondents say that a more stra- tegic relationship with their 3PLs would reduce total landed and distributed costs, while nearly 60 percent indicate more strategic 3PL relationships would increase operational fl exibility as well as cut capital and labor costs, and oper- ational expenses. “When shippers engage in a strate- gic relationship with a 3PL, the parties share effective dialogue and can resolve problems more quickly,” Langley notes.
TALKING POINTS Shippers continually cite effective and frequent communication with their For Eli Lilly and Company, great customer service comes in the form of a transportation 3PLs as keys to success in the customer management solution that Langham Logistics tailored to its specifi c requirements. service supply chain. But how best to achieve that goal? ties, and expectations for both parties,” “On the back end, Langham pro- Regular conference calls and face- says Cathy Langham, CEO of Langham. vides us with visibility to our materials to-face meetings has helped Biotta Inc., “Then we constantly review and evalu- in transit, and effective reporting that an organic fruit and vegetable juice ate what must be improved or changed helps us enact more effective decisions producer in Carmel, Ind., forge a deep to meet the needs of shippers and and makes us a better shipper for our and communicative relationship with their customers.” customers,” Brown says. its 3PL, Indianapolis-based Langham Those clearly defined customer Logistics Inc. Biotta points to this rela- service solutions and processes for PARTNERSHIPS GET PERSONAL tionship as the catalyst for its customer dealing with supply chain excep- For engine and generator manufac- service satisfaction. tions are what pharmaceutical giant turer Briggs & Stratton, peace of mind “We talk with Langham regularly Eli Lilly and Company (Lilly) sees comes from knowing its 3PL, GENCO, about our goals and how customers as the keys to its strong relationship has a team dedicated solely to its busi- measure our performance,” says Biotta with Langham. The company’s Elanco ness. This factor provides the logistics CEO George Pappas. “We make sure Animal Health division in Greenfi eld, base for Briggs & Stratton’s strategic, cus- we agree on our mutual needs, then we Ind., depends on the 3PL to optimize its tomer-service focused partnership with continually check in to make sure we distribution network and handle trans- GENCO. It also ensures that a human are on target.” portation management. response meets every call to GENCO’s Biotta’s customers – the distributors “Langham listens to our requirements, customer service department.
26 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl “Anyone in our supply chain who Briggs & Stratton has gained visibility inventory and keep making products,” needs to contact GENCO – whether a of inbound materials down to the part Sowatsky notes. “GENCO has been supplier trying to coordinate a shipment, level, enabling the company’s plan- crucial in helping us manage those situ- or a Briggs & Stratton employee seek- ning and production control groups ations and maintain customer service.” ing information – always reaches a live to plan for the goods en route and the body,” says Doug Sowatsky, director of materials its suppliers are planning to THE IMPORTANCE OF METRICS corporate logistics, transportation, and ship. “This visibility increases our pro- Despite all the good feelings and compliance for Briggs & Stratton, head- duction scheduling flexibility so we positive anecdotes generated by forg- quartered in Milwaukee. “We also have are more reactive to customers’ needs,” ing strong shipper-3PL relationships, a GENCO employee on site so we can Sowatsky says. quality customer service – and the effi - work with a single point of contact.” On the outbound side, Briggs & ciencies it brings to the supply chain – is Stratton counts on GENCO to provide a make-or-break aspect of logistics man- A DIRECT LINE its dealer network with accurate transit agement. Some companies desire more Pittsburgh-based GENCO, which times, and to ensure those times are met. concrete ways to ensure they are get- manages elements of inbound and out- This strategy means that when dealers ting what they need from their 3PLs. bound transportation, as well as carrier place an order with Briggs & Stratton, Witness the rise in popularity of cus- negotiation and freight tendering, for they know when they will receive the tomer service metrics in the supply Briggs & Stratton’s dealer network and product, and can provide that informa- chain. Used to measure a wide range mass retail market, believes this setup tion to customers farther downstream. of key performance indicators (KPIs) is key to its success as a customer ser- vice-driven 3PL. The company uses a Engine and generator manufacturer Briggs & Stratton receives personalized peer-to-peer mapping strategy to cre- customer service from its 3PL, which ate relationships between GENCO dedicates a team solely to its business. employees and its shippers’ employees at every level – executives are aligned with executives and account manag- ers with account managers, all the way down the line. As a result, shippers gain GENCO’s executive perspective on business strategy, as well as its func- tional perspective on ways to improve or enhance the partnership. GENCO’s emphasis on customer ser- vice starts at the top of the organization and extends to every level. “We mea- sure customer satisfaction religiously; it is core to everything we do,” says Dave Mabon, GENCO’s chief customer offi cer (CCO). “We even tie compensation to our customers’ satisfaction.” The company’s creative job titles are also a nod to its enthusiasm for cus- “If a consumer wants to buy a particu- that are essential to a shipper’s busi- tomer service – rather than CEO, Mabon lar unit from a Briggs & Stratton dealer, ness, metrics provide data that shows goes by CCO, and GENCO’s top oper- but it is out of stock, the dealer can tell whether a logistics provider is hitting ations executives are called customer the customer when they expect the unit expected service levels. service vice presidents. to be delivered to the store,” Sowatsky Behind the rise in customer service This elevated approach to cus- explains. “That is crucial for keeping metrics is the idea that the way a logis- tomer service is what helps Briggs & customers loyal.” tics provider measures its own internal Stratton improve its own service oper- That scenario holds particular success doesn’t hold much weight with ations. “GENCO has the right attitude, strength for Briggs & Stratton dur- shippers, says Curtis Bingham, presi- its employees take ownership to han- ing winter storms or electrical outages, dent of Littleton, Mass.-based Predictive dle issues that arise, and they suggest when its snowblowers and generators Consulting Group. To determine if improvements for adjusting to our cus- are in particularly high demand. providers are meeting shipper needs, tomers’ needs,” Sowatsky explains. “When these events occur, we need they should be measured by the ship- By using GENCO’s transportation to quickly ship goods, then switch gears per’s standards. management system, for example, to the inbound side so we can replenish Creating metrics that serve shippers’
28 Inbound Logistics • December 2009
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RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl interests and hold 3PLs to appropriate maintain replenishment.” standards can be done in a few steps. Sam’s Club also holds its providers to “When developing metrics, shippers high standards when it comes to carrier and 3PLs must agree on the expected management. While Sam’s Club devel- levels of customer service, and use ops and maintains relationships with that baseline to structure KPIs that are its carriers, the retailer expects its 3PLs measurable and can be reported regu- to ensure that those carriers are prop- larly,” says Georgia Tech’s Langley. “The erly executing on delivery service to second step is to create a process for cap- Sam’s Club’s DCs – and to take correc- turing and sharing that information tive action if they are not. and discussing it routinely; the third “On-time performance is a key cus- step is continuous improvement.” tomer service objective on the Sam’s Shippers and 3PLs should periodi- Club scorecard,” says Marlowe of Kane cally revisit expectations to be sure KPIs Is Able, one 3PL that works with Sam’s keep up with changing business needs. Club. “Every piece of the Sam’s Club supply chain has to be synchronized or SAM’S CLUB SETS HIGH STANDARDS the end customer will not get a quality “We expect a lot from our 3PLs. We product, on time, and at a competi- hold them accountable to a long list tive price.” of metrics – covering everything from Complementing Sam’s Club’s long operational effi ciency to accuracy and list of metrics is constant communica- quality,” says Geoff Sease, vice president tion with its logistics providers – which of logistics for Bentonville, Ark.-based Sease credits for achieving the collab- warehouse retail chain Sam’s Club. orative service it demands. “A daily much it cost to ship one particular unit “We apply the same expectations to our interactive feedback loop with our 3PLs to one customer this year, and what it 3PL-managed and self-operated DCs.” ensures that everyone is executing on cost last year and the year before.” One area of performance that is the plans we have laid out,” Sease notes. This type of data allows Sowatsky to crucial for Sam’s Club to measure is “We don’t wait for the end of the quar- keep a careful eye on cost savings, one how 3PLs assist with new store open- ter or year to evaluate our metrics and of the company’s most important logis- ings. “We depend on our providers to take action.” tics metrics. help us schedule deliveries to match “We analyze GENCO’s metrics the best flow of freight as we stock BRIGGS & STRATTON DEMANDS DATA monthly and meet with GENCO rep- new Clubs with products,” Sease “Without data, we can’t run our com- resentatives for quarterly updates explains. “Then, once a Club is up pany,” says Briggs & Stratton’s Sowatsky. on cost-reduction efforts,” Sowatsky and running and we can gauge the “GENCO provides us with data down to explains. To date, he says, GENCO has sell-through, we need their support to the transaction level. I can tell you how performed well on its metrics, exceed- ing its contractual obligations for cost-reduction efforts. While customer service metrics in logistics are clearly a shipper-driven trend, forward-thinking 3PLs have embraced metrics as a method for prov- ing the value of their services and as a way to clearly defi ne issues and goals with their shipper clients. “During our shipper meetings, we can use the metrics data to say, ‘Not only did we provide you with good ser- vice at a competitive price, but here are some opportunities for improvement in other areas where we could boost effi ciency or reduce costs,’” says Cathy Langham. “This helps us set and meet their future goals.” To provide exemplary service to its customers, Sam’s Club depends on its service providers A similar attitude prevails at GENCO, to schedule deliveries that match the best fl ow of freight as it stocks new stores. where customer service metrics serve
30 Inbound Logistics • December 2009
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The W. P. Carey School of The transaction-level data Briggs & Stratton receives from GENCO helps the manufacturer keep a careful eye Business offers three ways to on cost savings and identify areas for improvement. enhance your SCM knowledge as the basis for regular meetings with customers, and and skills online: as a way to incentivize internal employees. The com- pany surveys its customers quarterly, asking them to • MBA rate GENCO on a wide range of issues, including how • Graduate Certifi cate easy the company is to do business with; and how well it performs from a systems, operational, and bud- • Professional Certifi cate get perspective. “We follow up on items that arise in that survey, and create processes to make sure we meet those promises All courses are taught entirely online by by the next quarter,” says GENCO’s Mabon. “We then W. P. Carey faculty from our Supply Chain track those scores and use them to calculate bonuses Management program — ranked No. 5 in for the GENCO employees whose work directly impacts those shippers.” the nation by U.S. News & World Report.
INGREDIENTS FOR SUPERIOR SERVICE For more information visit GENCO’s approach touches all facets of what Geoff Sease defines as the recipe for an effective customer wpcarey.asu.edu/supplychain service supply chain: relationships built on trust and communication; clear expectations that are mea- or call sured regularly; and the integration of partners into (480) 965–8006 your business. “If these conditions are laid out for the provider, and the provider has those capabilities, you have all the ingredients for superior service and a great relationship,” Sease says. “But if you are fuzzy on your expectations, and if you draw a formal line between yourself, your 3PL, and your customers – then you’re going to have problems.” Keeping all players in the loop is the key to a strong – and unbroken – customer service connection. ■
December 2009 • Inbound Logistics 31
RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl 32 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND INNDUSTRY BEST PRACTICES IN FOCUS
SNAPSHOT FOOTWEAR
OVERVIEW Moving Shoes Is No Easy Feat Dealing with shifts in global manufacturing, limited product lifecycles, and inventory complexity keeps the footwear supply chain on its toes. by cindy h. dubin Apparel trends change rapidly, and each season spawns a new look. This is particu- larly true for footwear, a category of seemingly endless variety. From shearling-lined suede boots and bejeweled strappy sandals to retro-style sneakers and satin ballet fl ats, American consumers can’t seem to get enough. Shoppers’ shoe addictions are good news for the industry, but for footwear logistics managers the demand can be hard to meet and specifi c obstacles hard to overcome. First, footwear involves operating a global supply chain. Footwear manufacturers typi- cally source raw materials overseas from a variety of suppliers, and manufacturing often takes place abroad. Second, the products go through short life cycles and many seasons. Third, the number of styles and variety of sizes add to the complexity. To get a feel for how footwear companies are keeping pace with these unique supply chain challenges, come with us and walk a mile in their shoes.
Chinese Manufacturing on the Move Chicago-based quality and safety solutions Like many industries, footwear manu- provider Intertek. The Chinese government facturers have chased low-cost labor, raw is currently working to shift manufactur- materials and capital, as well as tax incen- ing sites from the coastal regions to internal tives and low-interest loans promised by provinces, and is enticing manufacturers countries trying to attract new business. with various incentives. As a result, footwear manufacturing has Eighty-six percent of all footwear sold migrated from Italy, the United Kingdom, in the United States comes from southern and North America to Asia, particularly China because huge ports located nearby China, explains Gene Rider, president of can accommodate the ships and shipment
December 2009 • Inbound Logistics 33
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volumes, says Nate Herman, senior director of international warns Matt Priest, president that move product to shelves trade for the American Apparel of Footwear Distributors and and consumers as quickly as and Footwear Association Retailers of America (FDRA), possible,” notes Priest. (AAFA), Arlington, Va. Washington, D.C. “Keeping new Although 75 percent of the This move away from coastal factories updated on safety issues U.S. population lives east of regions will also impact out- requires considerable effort.” the Mississippi, many prod- bound shipping, as it costs more Even in established factories, ucts enter the country through to transport product from these safety considerations require vig- West Coast ports, notes Bruce provinces to ships bound for ilance. “Footwear manufacturers Mantz, executive vice president U.S. destinations. need to ensure that production of Edison, N.J.-based third-party “A move to north and west factories comply with certain logistics (3PL) service provider China creates a logistics chal- specifications, and don’t use ADS Logistic Services. lenge because the territories are hazardous solvents and adhe- More manufacturers are farther away from ports and the sives,” says Rider. starting to bring in product on transportation infrastructure the East Coast, however, which doesn’t exist,” says Herman. Step in Time “makes more sense than bring- Transportation obstacles Inbound logistics plays a crit- ing product to the West Coast aren’t the only concern related ical role when final footwear and moving it across the coun- to the inland shift. “Adding new products arrive in the United try by truck,” says Mantz. production facilities has a pro- States. “The footwear sector Some footwear manufactur- found effect on product safety,” requires effi cient supply chains ers are adopting a two-point
CASE STUDY Steve Madden Stays in Step he world of high-end fashion promotes a sense of urgency in getting product to market as quickly as possible. “Speed to Tmarket is key in the footwear industry, where trendy styles and designs change constantly,” says Sanjeev Sahni, senior vice president of logistics for shoe designer and manufacturer Steve Madden Ltd. “The countless inventory turns make it critical to stay on top of the supply chain.” And staying on top of the supply chain is what Sahni does, overseeing everything from inbound logistics to warehousing, distribution, and outbound shipments to retail stores. To achieve the necessary speed on the inbound side, Steve Madden works closely with its ocean carriers to ensure the fastest possible service from China, where the majority of its products are manufactured. “We use carriers that can get products to our West Coast warehouses faster,” says Sahni. “We choose them specifi cally for their speed.” Meeting delivery schedules has not been a problem for Steve Madden, even during the economic slowdown. “Many carri- ers currently are moving less volume than in the past, giving shippers bargaining power,” says Sahni. “In addition, we are a year-round product shipper, not a seasonal customer, so carriers want to do business with us.”
34 Inbound Logistics • December 2009
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distribution system – bringing PTC, a PLM software provider in “In addition, the more volume product in on both coasts to Needham, Mass. footwear shippers move, the more be closer to distribution centers PLM also reduces costs by likely they are to get transporta- and customers. removing supply chain ineffi- tion discounts. And PLM helps But no system is foolproof. ciencies. “In today’s economy, avoid stockouts and overstocks,” he “No matter how carefully footwear manufacturers can’t notes. we plan overseas transporta- raise prices, so they save money Web-based solutions can also tion, complications arise,” says where they can,” says Herman. help global footwear supply chain Richard Kleinberg, vice pres- “They use PLM to squeeze cost partners stay connected and reduce ident, national accounts for savings out of the supply chain, costs. “The Internet evens the play- Gilbert USA, a 3PL in Chino, whether by consolidating a DC ing field, giving all parties in the Calif. “Once product arrives, it footwear supply chain the same has to turn quickly. 3PLs don’t level of technological sophisti- create the pressure situa- cation required for electronic tion, but, like fi remen, we integration,” says Esther Lutz, vice have to react to it and con- president of business development trol it.” for TradeCard, a supply chain col- Many footwear companies laboration platform provider based benefit from hiring a 3PL in New York. that understands port oper- Tools such as the TradeCard plat- ations, global regulations, form actively manage transactions and the critical nature of through the supply chain across their shipments. multiple parties. They also enable last- Tracking the Steps minute decisions, In addition to work- such as diverting ing with knowledgeable shoes from one 3PLs, footwear manu- retailer to another, facturers can benefit from or rerouting stock from collaborating with supply chain GREEN FOOTPRINTS. Wearers the United States to Europe, where can disassemble Timberland’s partners. One way to achieve Earthkeeper boots for recycling. a shoe might sell better. this goal is through Product “The goal is removing costs com- Lifecycle Management (PLM). network or locating DCs closer pletely, rather than pushing them PLM helps manage prod- to ports or major transportation along the supply chain,” explains uct information in one central crossways.” Lutz. location for real-time viewing “PLM’s bottom line is savings; by all footwear supply chain its top line is speed to mar- The Product Trail participants. “All partners gain ket,” says Michael Burkett, vice Another way footwear com- visibility into when footwear president of research for AMR panies attempt to control costs is goes into production, when Research, Boston. “Products get through radio frequency identifi ca- it is shipped, and when it will to market faster if shippers target tion (RFID) systems. The footwear arrive – all in an effort to meet their sourcing strategies, with sector’s critical product visibil- established timelines,” says fewer size and style variabilities. ity requirements and the transient Kathleen Mitford, vice presi- Less variability results in a less nature of inventory make it a prime dent of insight and strategy for expensive supply chain. market for item-level RFID and a
36 Inbound Logistics • December 2009
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CASE STUDY Rack Room Shoes: The Right Fit ust as children outgrow their shoes, retailer Rack Room Shoes, Charlotte, N.C., outgrew its warehouse space. In 1994, the J company was operating 200 stores, and space in the warehouse was at a premium. By 2004, the Rack Room chain had doubled in size, with locations in 24 states, including New Jersey, Florida, and California. Finally, in January 2006, Rack Room, a wholly-owned subsidiary of Deichmann Shoe of Germany, elicited help from a third-party logistics provider. It asked ADS Logistic Services, Edison, N.J., to take over all distribution operations from the 3PL’s DC in nearby Gaffney, S.C. “Footwear is a unique product comprised of four dimensions — color, style, size, and width,” says Dale Patterson, vice president of systems and logistics at Rack Room. “ADS understood how to fulfi ll our stores’ replenishment orders, giving them the right quanti- ties of each dimension so they have the shoes customers want when they come into the store.” Ensuring the right shoe winds up in customers’ hands, and on their feet, begins with an effi cient inbound logistics strategy. Rack Room product generally arrives at West Coast ports from China, and moves by truck or rail to the ADS distribution cen- ter. Because Rack Room is primarily a Southeast company, however, this process can add transit time. Patterson says the company has been exploring a new strat- egy of bringing product into East Coast ports to cut transportation time and costs. Once shoes arrive at the ADS facility, they are crossdocked to set a Today In-Today Out (TITO) process in motion. Small package carriers UPS and FedEx pick up the shoes at the ADS facility and deliver them to retail locations. The recipient’s signature is proof that the shoes were delivered. “Proof of delivery is critical for us because shrinkage is a big problem in the footwear industry,” says Patterson. “Tracking and tracing product from the DC through delivery has contributed to low- ering our shrinkage rate.” “Pair picking” at the DC lets each Rack Room While Rack Room’s shrinkage rates are going down, pick rates are going up. store receive a customized set of sizes. Luckily, ADS offers the ability to “pair pick,” allowing each store to receive a custom- ized set of sizes. For example, if one store needs three pairs of size 10 shoes and another store needs two pairs of size 11 shoes, a tilt tray sorter cases each store’s order in its individual lane and sorts by geographic region for delivery. Automation is also speeding up turnover rates for Rack Room’s northern-based Deichmann stores. “These stores require special attention because they are low price point, high-quality items,” explains Patterson. “Customers know the products are a good buy, so inventory doesn’t stay on the shelves very long.” Replenishing these stores requires ADS to receive orders daily at noon, process them, and have them ready for pickup by 7:00 that evening. “It’s currently a low-volume operation, so ADS is able to handle it,” says Patterson. “We’ll see what the future brings.” Whatever the future holds for Rack Room, it’s likely ADS will be involved. “Working with a 3PL allows us to expedite product in and out of the DC, so it’s available for consumers before our competitors have it on their shelves,” Patterson says.
breeding ground for product pilot testing at manufacturers technology’s impact on pro- innovation, according to New including Nine West and New ductivity, customer service, and York-based market research fi rm Balance, and retailers such as inventory accuracy. Results of the ABI Research. Rack Room, has been successful. study include a 21-percent sales “RFID can bring value to the In one RFID pilot, Jones increase, a 91-percent conver- footwear sector, which is fraught Apparel Group Inc. tested sion increase, and a 92-percent with inventory control issues,” item-level RFID in two Nine improvement in cycle time. says Michael J. Liard, ABI’s prac- West footwear stores during Charlotte, N.C.-based retailer tice director of RFID. Initial RFID August 2008 to evaluate the Rack Room Shoes uses RF source
38 Inbound Logistics • December 2009
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tagging for theft detection. The environ ment, it may seem manufacturing process,” says manufacturer places an RF tag counterintuitive to invest in Rider. “For instance, some com- inside the shoe as it is being technologies such as RFID,” says panies use ethanol, which can made. A store sensor activates an Priest. “But the time to explore either have a positive or negative alarm if someone leaves without ways to improve is when vol- carbon impact on the environ- deactivating the tag. umes decrease.” ment, depending on where it’s “This strategy is more cost- sourced.” effective than having store Footwear’s Footprint “Whether it’s making rub- personnel apply visible tags,” Like most manufacturers, ber soles from tires, recycling says Dale Patterson, Rack Room’s footwear companies are explor- packaging, eliminating hazard- vice president of systems and ing ways to “green” their supply ous chemicals, or ensuring the logistics. chains. These efforts include manufacturing process doesn’t While RFID can be a compet- choosing environmentally pollute the air and water, green- itive differentiator and enable friendly and recycled manu- ing the supply chain is about business process improvement, facturing materials. Premium brand reputation, and it’s a dif-
deployment in the footwear footwear brand Timberland ferentiator,” says Herman. sector is slow going. The market even offers a shoe that can be Addressing sustainability for RFID in fashion apparel and disassembled and recycled when concerns, shifts in global man- footwear is expected to reach the wearer is fi nished with it. ufacturing, rapidly changing $45 million in 2009, with foot- “Some products appear to demand, and inventory com- wear adoption accounting for be green, but a growing list plexity requires some fancy fi ve percent or less of the total. of chemicals are not envi- footwork, but the footwear “In today’s economic ronmentally friendly to the industry is staying in step. ■
40 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND INBOUND LOGISTICS READERSHIP SURVEY Dear IL Reader: Advertiser support enables us to deliver Inbound Logistics to you free every month. Readers tell us that they get useful information from the ads in every issue. Given the dynamic nature of the market — particularly your changing needs — advertisers want to 2010make sure that they are communicating their capabilities to you in the best way possible. You can help IL’s supporters ensure their services are the best they can be by taking a few moments to answer these survey questions. All responses will be kept confi dential. Your participation will help us continue to bring Inbound Logistics to you without charge. As a thank you for your time and eff ort, three respondents will be chosen at random to receive a 14k gold Parker pen. If you want to enter the drawing, be sure to include your name, phone number and e-mail address when you submit the survey so we can notify you if you win. And be sure to pass this survey on to your team! Th ank you, as always, for your help and support.
Keith Biondo, Publisher
Save time and paper! Submit your answers online at inboundlogistics.com/readsearch Or fi ll out the form on the next page and fax it to us at 212-629-1565
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RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl Save time and paper! Submit your answers online at INBOUND LOGISTICS inboundlogistics.com/readsearch READERSHIP SURVEY Or fill out this form and fax it back to us at 2010 212-629-1565 1 Please indicate your title: 6 How many people are at your location? 12 Should companies generally partner with 1,000+ 100-249 one 3PL or more than one? 500-599 1-99 Just One More than One 250-499 2 Please match your function 13 Regions where your company is (check the best one): 7 Please list three third-party logistics outsourcing (select all that apply)
Corporate Management companies that excel in meeting your Asia
Supply Chain / Purchasing / needs. Southeast Asia (including India) Supply Management Middle East/ North Africa
Transportation / Traffic Management #1 Eastern Europe/Russia
Logistics / Distribution Europe #2 Operations South America
Other #3 North America (US, Canada, Mexico) U.S. only 3 Please indicate your company type 8 Tell us why you think the 3PL companies (select best match) : you chose in the previous question merit 14 Name 3 publications that help you most in Manufacturer industry recognition. your job: Retail/Wholesale Carrier/Transport Intermediary/ 1. 3PL/Warehouse 2. Services Sector or Government Other 3.
4 Please indicate which transportation 15 If you are an IL subscriber, approximately or logistics services you currently 9 What are the most important challenges how many people read your copy of recommend, specify, approve, or you face today? (select all that apply) Inbound Logistics? purchase (check all that apply): Cutting Transport Costs Air Freight Services Reducing Inventory Ocean, Ocean Intermodal Reducing Labor Costs Small Package, Express Services Reducing Assets and/or Infrastructure 16 THANK YOU FOR YOUR HELP. Please Logistics Technology (WMS, SCEM, RFID, etc.) Expanding to New Markets provide your contact info below if you Warehousing Services Quality Control want to be entered into the drawing. Global Logistics Sustainability Name Motor Freight Services Business Process Improvement Rail, Rail Intermodal Vendor Management Phone Third Party Services Improving Customer Service Transportation Equipment Technology Strategy and Implementation Email Materials Handling Security and other Compliance Issues None 17 Would you like to start/renew a FREE subscription to Inbound Logistics? 10 Which is a more important criterion for 5 Your best guess on how much your measuring 3PL performance: Yes No company spent on transportation Cost Service and related logistics services and 18 If yes, please enter your contact technology in the last year: information below. 11 What is the number-one reason for a More Than $50 Million failed 3PL partnership? Name $10-$49 Million Poor Customer Service $1-$10 Million Cost Address $100,000-$1 Million More Competitive Options City Less Than $100,000 Loss of Control Cultural Dissimilarities State Zip Failed Expectations
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FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND CAREER SOLUTIONS WHERE ARE THEY NOW A READER PROFILE REUNION
Time fl ies, and careers evolve quickly. Since 2002, Inbound Logistics’ Reader Profi le column has introduced readers to more than 90 colleagues who BY MERRILL DOUGLAS work in logistics and supply chain management. Many of those professionals have since moved on from the jobs they held when we visited with them. Others still hold the same positions but have seen signifi cant changes in their work. Let’s catch up.
December 2009 • Inbound Logistics 43
RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl BROWN KIM KIM
THEN: Materials manager, Hearth and Home Technologies, Lakeville, Minn. (profi led in March, 2004) IN-BETWEEN: Continuous Improvement manager, Hearth and A CHANCE TO BUILD FROM THE GROUND UP Home Technologies (2005-2006) NOW: Director of distribution, Quality Bicycle Products, Bloomington, Minn. (since 2006)
hen we last At Quality, Brown is responsible for checked in with all aspects of distribution – receiving standards and earned LEED Gold-level Kim Brown, she product from suppliers, fi lling orders certifi cation in 2007. was materials man- from independent bike shops and dis- “I did not know about LEED before ager at Hearth and tributors, and managing the DC. I came to this company,” Brown Home Technologies, Unlike many corporations in today’s says. Now, she’s so well-versed she a manufacturer economy, Quality is expanding. Along speaks about Quality’s environmen- of fi replaces and other home heating with its current DC in Bloomington, tal initiatives to groups such as the Wproducts. While in that job, Brown was Minn., Quality is strategically locat- Bloomington Chamber of Commerce. immersed in facilitating Continuous ing facilities around the United States As the company develops its new DCs, Improvement events at the company’s to bring product closer to custom- she’ll put that knowledge to work in manufacturing plants, distribution ers. “Our goal is to be two days away multiple locations. centers (DCs), and stores. from all our independent retail detail- If Brown could change anything She got so involved, in fact, that ers,” she says. The expansion presents about her career, she says she would Hearth and Home named her its Brown with the exciting opportunity have gotten involved in the import/ Continuous Improvement manager. to build a network from the ground up. export process sooner. The 10+2 rule That experience serves Brown well in Besides calling upon her skills in regarding security fi lings that import- her current job as director of distri- supply chain strategy and facilities ers must make to the U.S. Customs bution at Quality Bicycle Products, a management, the expansion also gives and Border Protection (CBP) agency bicycle parts, accessories, and apparel Brown a chance to exercise her interest is part of her work routine these days. distributor. Quality had already imple- in sustainable technologies. So is Quality’s participation in CBP’s mented a Continuous Improvement The Bloomington facility was Customs-Trade Partnership Against initiative when Brown arrived, but built according to the U.S. Green Terrorism program. “I wish I could she brought new tools, such as value Council’s Leadership in Energy have gotten in on the ground fl oor of stream mapping, to the program. and Environmental Design (LEED) these initiatives,” Brown says.
44 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND THEN: Director of supply chain/logistics, Apex Digital, Walnut, Calif. (profi led in November 2004) IN-BETWEEN: Director of supply chain/logistics, E&S International (2006-2008); CEO, Top Gun Distribution
(2008) ALEXANDER NOW: Global logistics manager, Anthony International, Sylmar, Calif. (since 2008) CRATE EXPECTATIONS DREW
rew Alexander is currently doors for the freezer and refrigera- increasing packaging costs. having fun on the job tor cases found in grocery stores, delis, Now, he’s pushing for similar results with packing crates. and convenience stores. He accepted in his new job. We fi rst spoke with the job as global logistics manager, “I took the knowledge I amassed and Alexander in 2004, when making him responsible for all imports, the resources I’d networked with over he was working as direc- exports, and domestic transportation the years, applied them to Anthony tor of supply chain and of materials and fi nished goods, and International’s door crating, and logistics at consumer electronics fi rm for the warehouse in Sylmar, Calif. revised the design,” Alexander says. DApex Digital. In 2006, he left Apex for That’s where the packing crates The rugged glass in Anthony’s doors another consumer electronics com- come in. At ESI, one of Alexander’s rarely breaks in transit, but cosmetic pany, E&S International (ESI). Then, in favorite projects focused on enhancing blemishes are always a concern. “We 2008, that job fell victim to the world the company’s packaging by reducing try to avoid having them rub together,” economic downturn. cosmetic damage to TVs in transit, fi t- he adds. Eyeing an entrepreneurial opportu- ting more product into containers and The redesigned crates reduce the risk nity, Alexander made plans to purchase trailers, and reducing the company’s of damage, and switching from solid Top Gun Distribution Services, a logis- environmental impact. wood to plywood for parts of the crates tics fi rm based in Rancho Domingo, Alexander worked with ESI’s fac- reduces their environmental impact. Calif. He was rounding up fi nancing tory in China to design more compact Now, Alexander is helping the com- and already serving as the company’s TV boxes, reducing their volume by as pany further refi ne the new design, as CEO when Top Gun’s owner decided much as 50 percent. “We almost dou- well as exploring the use of reusable not to sell after all. bled the amount of product we could crates to make the packaging even At about the same time, Alexander fi t in a container,” Alexander says. He more sustainable. received a job offer from Anthony also found ways to use recyclable mate- “This project is challenging and a lot International, a manufacturer of glass rials and soy ink in boxes without of fun to think about,” he says.
December 2009 • Inbound Logistics 45
RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl CUTLER
THEN: Vice president of logistics, Star Furniture, Houston (profi led in May 2004) BRUCE IN-BETWEEN: General manager, Advanced Logistics Services, Houston (2006-2007); Director, home delivery logistics, Restoration Hardware, Corte TURNING CHAOS INTO CASH Madera, Calif. (2007-2008) NOW: Vice president, logistics and operations, Masterworks International, Houston (since 2009)
ruce Cutler spent many them to consumers’ homes. Leaving years working at fi rms that job in 2006, Cutler became gen- Schlumberger at Advanced Logistics. that put products together. eral manager of Advanced Logistics “That was the fi rst time I sat on Now he manages an Services, a third-party logistics fi rm the service provider side of the table operation that takes that provided dedicated services for the instead of the shipper side,” Cutler says. products apart. Houston-area operations of oil fi eld ser- The experience taught him the nuts In spring 2009, Cutler vices giant Schlumberger. and bolts of providing dedicated ser- started a new job as vice president, Then, in 2007, Cutler went to work vice to a major client, knowledge he Blogistics and operations at Houston- as director of home delivery logis- calls on today as he helps Masterworks based Masterworks International, a tics for California furniture company satisfy HP’s needs. Hewlett-Packard authorized dis- Restoration Hardware. “I worked from As a vice president at Masterworks, tributor of HP computers and parts. home and traveled three or four days Cutler has the opportunity to hone Masterworks receives and breaks a week, visiting a different location new leadership skills. “I’m manag- down obsolete, excess, and refur- almost every day,” he says. Most of that ing the operation under me, and I’m bished systems, identifi es and tests the time was spent managing the com- involved in strategic business deci- components, and sells those parts to pany’s relationships with third-party sions,” he says. “I’m helping develop value-added resellers. “We turn chaos delivery partners. the company’s supply chain vision and into cash,” he says. The economic downturn put an determining how to achieve our goals.” Cutler is responsible for the fl ow of end to that job. Now, at Masterworks, Changing jobs several times in the products into the warehouse and out Cutler has returned to his roots in past few years has reinforced Cutler’s to customers, and for the sorting and the computer industry: he spent his belief in the value of fl exibility, espe- testing operations. early career at IBM, Computerland, cially in a tough economy. “It helps It’s quite a change from his 2004 and Compaq Computer. That back- that supply chain is a broad, horizon- stint as vice president of logistics at Star ground, plus a degree in engineering, tal function,” he says. “Taking a broad Furniture, where employees in the DC provide a solid foundation for his new approach makes it easier to weather assembled products before delivering job. But so does his experience serving this storm.”
46 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND THE OTHER SIDE OF THE FENCE Some of our Reader Profi le alumni have moved on from in-house supply chain positions to roles on the service side. They’ve brought their talents to third-party logistics services providers, consultancies, new business startups, and academia. Here’s what four of them have been up to.
When we featured his profi le in When we fi rst met Wayne Paul in February 2002, Michael Beaver was June 2002, he was serving as execu- senior director of supply chain at tive director of logistics at 7-11 Inc. Reichhold Inc. He left the job later Paul left 7-11 in October of that year that year to design, build, and oper- to become vice president of trans- ate a state-of-the-art beer distribu- portation at The Home Depot. In tion facility for a large Anheuser 2003, with the aim of better balanc- Busch distributor. He also was charged with planning and ing professional, family, and spiritual goals, he founded the executing the consolidation of four existing facilities into Paulway Group, a boutique supply chain advisory services the new DC. Completing that work in late 2004, he contin- company. He also completed a second master’s degree, in ued to operate the facility until 2005, when he was offered Biblical Counseling, and helped to start Christian Resource the chance to direct the operations of 23 DCs on the East Occupational Support Services (CROSS), a ministry to support Coast for Exel Direct. This business unit of Exel specializes in people going through mid-career job changes, unemployment, white-glove home and business delivery of large items such or underemployment, or looking for something they were no as furniture and appliances. In early 2006, Beaver moved to longer fi nding in corporate life. In addition, Paul serves as Exel Direct’s business development team as senior direc- director of operations for Simons Branch, a non-profi t organi- tor of business development. Although the current economic zation that coordinates short mission trips, and he lends his climate has created some of the biggest challenges of his ca- expertise to Filter Pure Inc., an organization that brings clean reer, he says, it also offers new opportunities, as more com- water systems to people in developing nations. panies are coming to understand the benefi ts of working with a third-party logistics provider.
Wayne Thompson was director of Soon after we profi led her in January global logistics and distribution at 2005, Cheri McCaslin left her job Pacifi c Cycle in Madison, Wisc., as domestic logistics manager at when we profi led him in March Academy Sports and Outdoors to 2005. Having earned an MBA work as a business analyst at Exel. from the University of Wisconsin, In 2006, she became transporta- Madison, he left the company in tion manager, using her experience 2007, fi rst to consult and then to found a new company, Kind in analysis and operations management to help in the tactical Bicycles. Thompson wanted to introduce new ideas about execution of her customers’ requirements and performance how to source, make, deliver, and market bicycles sustain- expectations. In 2007, Exel named her general manager, a ably. He would use his logistics expertise to shorten the strategic role focused on maximizing the performance of her supply chain, reducing costs while limiting the company’s team. Between 2006 and 2009, McCaslin and her team have carbon footprint. The recent credit crisis delayed plans for helped to increase productivity for one customer by 40 per- the launch, so Thompson has been teaching supply chain cent and boosted carrier compliance from 60 percent to 99 management, transportation, and other business courses at percent. “Our current challenge,” she says, “is to continue to Blackhawk Technical College in Janesville, Wisc., while laying provide new and innovative effi ciencies to benefi t our custom- plans to bring bicycles to market in 2010. ers and our own organization, especially in light of current economic conditions.”
December 2009 • Inbound Logistics 47
RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl NISHI MASAO MASAO THEN: Assistant vice president, supply chain management, Sysco Corporation, Houston (profi led in September 2005) VIEW FROM THE CENTER NOW: Vice president, supply chain management, Sysco Corporation, Houston
asao Nishi is still at full truckloads to the operating com- receive one-fourth of a truckload. “If Sysco Corporation, panies, or let one truck deliver to two we change that to ordering twice as where we found him companies in the same region. “We much every other week, we cut trans- in 2005. During the could not have employed that kind of portation costs,” Nishi explains. past four years, he has strategy when each operating company Managing transportation centrally seen his job evolve was taking care of itself,” Nishi notes. also helps Sysco save money by letting as the food service Encouraging the companies to it put freight out to bid regionally and distribution company developed an change their processes – getting two nationally, so carriers can compete for Menterprise logistics operation. Sysco companies 100 miles apart to the lanes they want most. In 2005, plans to consolidate logis- place orders with vendors on the same With retirement looming in a few tics for approximately 70 independent day, for example – is a challenge. The years, Nishi says he’s glad that he operating companies in the United operating companies focus intently on came to Sysco only after playing a States were just starting to unfold. the needs of their customers. variety of other roles, including engi- Sysco completed the transition in 2007; “Inbound transportation is not their neer and consultant, and working in it now manages shipments for all those top concern,” Nishi says. “But chang- several different industries. All that companies from Houston and three ing processes on the inbound side can experience has been invaluable dur- regional facilities. Soon it will bring 18 help keep costs down without affecting ing Sysco’s transition to a new supply operating companies in Canada under the customer at all.” chain model. the same umbrella. Besides coordinating shipments, “I was able to leverage the knowledge Centralization allows Sysco to better Sysco is working to better integrate and experience that I’ve accumulated balance lanes and ship more full truck- inventory management with transpor- throughout my entire working life,” he loads. The company can ship freight tation management. For example, an says. “It was a benefi t that I came to from multiple suppliers on single operating company might place an Sysco at this stage of my career, instead trucks, crossdock the freight and send order with a supplier every week and of right out of school.”
48 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND G RADUATE P ROGRAMS AT E LMHURST
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50 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND …Leading and Training Import/Export Managers in Global Trade
COURSE SCHEDULE January–June, 2010
Advanced Import/Export Establishing Import/Export Letters of Credit Operations, Documentation & Compliance Procedures 1 day Compliance Management 2½ days April 19 Newark 2 days March 22-24 Newark May 27 Newark January 18-19 Ft. Laudedale May 17-19 Newark March 1-2 San Jose Managing HTS (Harmonized April 12-13 Newark Hazardous Materials Training Tariff Schedule) June 22-23 Detroit 2 days 1 day March 24-25 Newark February 10 Orlando Best Practices in Managing April 15 Newark Export Licensed Transactions: Importer Security Filing (ISF) June 24 Detroit A Workshop for Brokers & Compliance & Related Global Forwarders Security Management PACMAN - Import/Export ½ day Procedures Compliance Certification February 26 Los Angeles 1 day Workshop & Exam May 14 Newark January 21 Ft. Lauderdale 2 days February 8 Orlando February 24-25 Los Angeles C-TPAT Certification Training March 4 San Jose May 11-12 Newark Workshop 1 day INCOTERMS & Related Global January 20 Ft. Lauderdale Trade Issues February 9 Orlando 1 day March 3 San Jose January 22 Ft. Lauderdale April 14 Newark February 11 Orlando PACMAN June 10 Chicago March 5 San Jose Annual April 16 Newark Drawback Workshop June 11 Chicago Meeting May 13, Newark 1 day June 25 Detroit April 13 Newark June 22 Chicago
Save 15% Tracy Lenok 877-265-0070 when you mention code IL3 [email protected] www.theworldacademy.com
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The M.A. in Global Logistics combines business skills with a strong emphasis on supply chain management in a global setting. • Complete your Master’s Degree in less than 21 months • Convenient evening classes • Networking opportunities • Scholarships offered by the Port of Long Beach Apply Now! Call for more information: (562) 985-2872 www.ccpe.csulb.edu/citt Reach Higher
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52 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND CAREERSOLUTIONS
Executive Education UniversityUniversity ofof Wisconsin-Madison When something’s not there, people notice. If a knowledge or skill gap is preventing you from tackling your challenges, take action. Gain shared knowledge, best practices, industry contacts, tools and frameworks by attending our expansive Supply Chain, Transportation and Purchasing programs. See what you’re missing at...
exed.wisc.edu/sc
UNF Transportation & Logistics Program s State-of-the-art supply chain technology lab. s Membership in SAP University Alliance provides faculty and students access to entire Enterprise Resource Planning (ERP) suite, including logistics and supply chain management modules. s Internationally recognized faculty engaged in leading edge research on third party logistics, global sustainability, performance measurement, reverse logistics, supply chain management and integration. s Ranked (13th) in the top 20 logistics and supply chain management programs in the nation. s Home to the UNF Center for Logistics & Supply Chain Management s Undergraduate curriculum certifi ed by the American Society of Transportation & Logistics s Located in Jacksonville, Florida – “America’s Logistics Center” For more information call (904) 620-1961
December 2009 • Inbound Logistics 53
RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl IN THIS SECTION: 3PLs
3PLs
3PD • www.3pd.com
Each year, 3PD makes nearly fi ve million deliveries (and counting) for some of the biggest names in business. That’s a lot of deliveries, a lot of doorbell ringing, and a lot of focused last-mile logistics experience that we can turn into a competitive advantage for you.
ADS Logistic Services (ADS) • www.adslp.com
ADS Logistic Services (ADS) is an award-winning, full-service 3PL provider offering public and contract warehousing, distribution, and fulfi llment services designed to move your product with maximum speed, accuracy, and cost effi ciency. ADS proudly received Inbound Logistics’ prestigious Top 100 3PL Providers award for many years. With more than 15 years of experience, ADS has the cutting-edge technology, extreme cost contain- ment strategies, and high level of expertise required to solve any logistics challenge. Visit www.adslp.com or contact Bruce Mantz at [email protected].
ATC Logistics & Electronics (ATCLE) • www.atcle.com
ATCLE delivers 3PL services, specializing in forward logistics, reverse logistics, asset recovery, test and repair, kitting and packaging, and value- added services for high-value, serialized devices in the wireless, broadband, electronics, automotive, and medical industries. ATCLE’s knowledge, expertise, IT capabilities, and 99.5-percent service and quality levels enable its customers to streamline supply chain effi ciency and enhance growth and profi t. ATCLE raises the standard for quality, service, and performance for customers including GM, LG, Nokia, Palm, Pantech, and TomTom.
BDP Project Logistics • www.bdpprojects.com
BDP Project Logistics is a leading, privately held project logistics and transportation management services company operating global logistics centers throughout Asia, Europe, Africa, the Middle East, and the United States, with a network of owned offi ces, strategic partner- ships, and agencies in more than 120 countries. The company provides customized logistics solutions that support engineering, procurement and construction companies, mining, oil and gas, power generation, and other infrastructure projects. It utilizes a variety of transport modes to deliver over-dimensional cargoes to their often-remote destinations.
54 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND IN THIS SECTION: 3PLs — Windpower Logistics
C.H. Robinson Worldwide, Inc. • www.chrobinson.com
Founded in 1905, C.H. Robinson Worldwide, Inc. is one of the largest third-party logistics companies in the world, providing multimodal transportation, fresh produce sourcing, and information services to more than 32,000 customers globally, ranging from Fortune 500 companies to small businesses in a variety of industries. For more information about our company, visit our Web site at www.chrobinson.com.
EDUCATION
Elmhurst College • www.elmhurst.edu/scm
Elmhurst College offers the Chicago area’s only graduate program in supply chain management. In this program, you’ll gain a sound technical foundation and hone skills that are absolutely critical for today’s profes- sional: communication, negotiation, team building, information technology, analytical thinking, working in diverse business environments, and sound business decision-making. All course work maintains a balance between current theory and its real-world application.
George Mason School of Public Policy • http://policy.gmu.edu/tpol
Earn your Master of Arts in Transportation Policy, Operations, and Logistics from George Mason’s School of Public Policy. This degree takes a multidisciplinary approach to prepare graduates to work effectively in today’s logistically integrated intermodal transportation systems. Students study such issues as “smart growth,” congestion, supply chain manage- ment, and intelligent transportation systems. Our program offers broad training in fi nance, law, security, the environment, and policy-making that is required to advance in nearly every transportation organization.
WINDPOWER LOGISTICS
BDP Project Logistics • www.bdpprojects.com
BDP Project Logistics is a leading, privately held project logistics and transportation management services company operating global logistics centers throughout Asia, Europe, Africa, the Middle East, and the United States, with a network of owned offi ces, strategic partner- ships, and agencies in more than 120 countries. The company provides customized logistics solutions that support engineering, procurement and construction companies, mining, oil and gas, power generation, and other infrastructure projects. It utilizes a variety of transport modes to deliver over-dimensional cargoes to their often-remote destinations.
December 2009 • Inbound Logistics 55
RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl IN BRIEF NEW SERVICES & SOLUTIONS
OCEAN CMA CGM CMA CGM added the new vessel Christophe Colomb to its fl eet. The 13,344-TEU containership, one of the world’s largest vessels, operates on CMA CGM’s French Asia Line in partnership with Maersk Line. The ship integrates environmental technologies such as the Fast Oil Recovery System pollution prevention technique, a twisted rudder designed to reduce energy consumption and carbon emissions, and a hydrodynamic hull design. www.cma-cgm.com 757-961-2100
3PLs Simple Commerce Solutions Laguna Hills, Calif.-based logistics services facilitator Simple Commerce Solutions announced a logistics services program targeted to help small and mid-sized businesses cut costs associated with order fulfi llment, including inventory receiving, storing, and shipping. simplecommercesolutions.com 866-537-2077
FreightCenter.com FreightCenter.com, a third-party logistics provider and Web-based freight solutions PACKAGING company, launched a new brokerage ▲ Sealed Air logistics division, offering a larger base The PackTiger Hybrid system produces a choice of custom-length, pad-like paper of carriers and enhanced solutions cushioning or void-fi ll material from sheets of single-ply kraft paper. The compact for truckload, air, intermodal, and design of the table-top model allows it to be used on demand in decentralized table-top international shipments. environments or online for increased effi ciency. www.freightcenter.com 800-716-7608 www.sealedair.com 800-648-9093
Exel Direct and Hanover, Md. From these facilities, prior to delivery. On the outbound side, Exel Direct, the Exel business unit Exel Direct teams manage inbound and Exel Direct delivery teams load trailers and delivering large items such as furniture outbound inventory including unloading execute home and business deliveries to and appliances to homes and businesses, trailers; inventory management; and end user specifi cations. opened two new facilities in Edison, N.J., staging, inspecting, and repairing product www.exel.com 877-272-1054
56 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND SOFTWARE FedEx Ground WEB Newgistics A new FedEx Ground distribution Management Dynamics Newgistics’ OneShip warehouse control facility opened in Medley, Fla. The Management Dynamics launched Trade system now includes undeliverable 217,015-square-foot operation, which Wizards 10.0, a Web-based portal to trade shipment services, which provide dynamic supports a workforce of more than 340 content from 122 countries that facilitates change of address, address correction, employees and contractors, is double the the research of complex trade questions. move update, undeliverable mail handling, size of the facility it replaces. The new The new release makes it easier for and forwarding services for shippers facility provides processing rates of up to companies to classify products, calculate utilizing the United States Postal Service’s 15,000 packages per hour, additional load landed costs, and perform document Parcel Select ground delivery service. and unload doors, and more scan tunnels determination at the Harmonized www.newgistics.com 512-225-6000 and sorters. Schedule level. www.fedex.com 800-GO-FEDEX www.managementdynamics.com 201-935-8588 HARDWARE FreightScan The new FS100P automated dimensioning system for cargo scanning was designed for small cargo and package operations that need to quickly capture dimensions and images. The FS100P can measure cargo in a scan area of up to four feet by four feet, accommodating smaller units such as skids, individual pieces, parcels, and conveyable freight. www.freightscancargo.com 760-579-4044 Get it done with EXPEDITED GROUND the best forklift Lone Star Overnight (LSO) Lone Star Overnight, a Texas-based for your business regional overnight package delivery company, introduced a multiple-package Looking good and getting it done. But it’s shipment rating option for packages what you don’t see that defines a Kalmar forklift. When it comes to the bottom weighing 100 pounds or more. Shippers line, our forklifts will give you the lowest may choose LSO’s new Multi-Pak possible lifetime cost. With a full range pricing for shipments destined for the of quality forklifts for loads up to 55 tons, same address. The Multi-Pak option is it’s easy to find a Kalmar forklift that fits available on all qualifying ground domestic your needs today… and in the future. shipments throughout the LSO delivery area, which includes Texas; Oklahoma; western Louisiana; eastern New Mexico; www.cargotec.com and Texarkana, Ark. www.kalmarind-northamerica.com www.lso.com 800-800-8984
December 2009 • Inbound Logistics 57
RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl CALENDAR YOUR LOGISTICS DATEBOOK
January 19-20, 2010, SMC3 Winter Association, and the Express Delivery April 25-28, 2010, NASSTRAC Conference, Atlanta, Ga. Presented by and Logistics Association, includes ses- Logistics Conference and Expo, Orlando, SMC3, this event spotlights the latest sions addressing topics such as branding, Fla. Attendees at the National Shippers economic, political, and business trends security, and business operations. Strategic Transportation Council’s affecting supply chain and logistics pro- 703-361-5208 annual conference get updates on the fessionals, with actionable ideas for 2010. www.aemca.org economy’s impact on operations, service A sustainability panel highlights how levels, and capacity from top executives businesses are blending environmental March 30-April 1, 2010, U.S. Bank with the leading trucking, expedited, impact initiatives with corporate respon- Financial Supply Chain Conference, intermodal, and maritime providers. sibility policies to green their operations Orlando, Fla. Attendees learn to maxi- 952-442-8850 and bottom line. Attendees can connect mize cost savings, automate payments, www.nasstrac.org with key decision-makers and peers at enhance working capital, improve over- various networking functions. all visibility, reduce risk, and automate April 26-29, North American Material 800-845-8090 reconciliation and reporting. Handling Logistics Tradeshow (NA www.smc3.com 866-274-5898 2010), Cleveland, Ohio. Sponsored www.usbankconference.com by the Material Handling Industry of January 19-21, 2010, SCOR Users America, NA 2010 focuses on the pro- Seminar, San Diego, Calif. The SCOR April 25-28, 2010, COSTHA Annual ductivity solutions provided by material Users Seminar is an annual event orga- Forum and Expo, St. Petersburg, handling and logistics. The educational nized by the Supply Chain Council to Fla. This year’s Council on Safe program covers topics such as labor opti- share how the Supply Chain Operations Transportation of Hazardous Articles mization strategies, storage equipment, Reference-model (SCOR) is used to forum, Beyond the Basics of Dangerous network visibility, and supply chain risk. streamline business processes. The edu- Goods Compliance, includes information The conference spotlights several areas cational event, designed for a broad sessions on new and emerging technolo- driving business change, including sus- supply chain audience including man- gies and regulatory requirements, as well tainability, workforce training, and the agers and directors with responsibility for as briefi ngs and legal trends. In-depth global supply chain. At the conference’s all aspects of supply chain management, seminars cover topics such as Canada trade show, more than 500 exhibitors features speakers who are in various trans-border compliance; European road demonstrate the latest material handling stages of implementing SCOR. regulations; and safe, compliant trans- and logistics equipment, systems, and 202-962-0440 portation of batteries. technologies. www.supply-chain.org 703-451-4031 800-345-1815 www.costha.com www.nashow.com January 20, 2010, Trade Asset Reallocation/Resource/Regulation Plan (TAR3P), Torrance, Calif. Doing more with less is the subject of TAR3P, WEBINARS the American Association of Exporters and Importers (AAEI) western regional Inventory Hazmat Supply Chain seminar. The program includes two 10+2 Management Compliance Collaboration panels, each comprised of government or January 21, 2010 February 2, 2010 February 24, 2010 industry representatives. It also includes 11 a.m. — 12 p.m. EST 11 a.m. — 1 p.m. EST 12 p.m. — 1 p.m. EST export, import, and legislative updates. Implementing best Assuring regulatory Developing internal 202-857-8009 practices for receiving, compliance when and external strategies. www.aaei.org labeling, storing, and shipping lithium Presented by picking. Presented by batteries (HMT C54). TradeBeam. March 14-16, AirCargo 2010, SmartTurn. Presented by Lion www.scmworldlive. ChampionsGate, Fla. This event, spon- www.smartturn.com Technology. raptureworld.co.uk www.lion.com sored by the Air and Expedited Motor Carriers Association, the Airforwarders
58 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND @E9FLE;:C8JJ@=@<;
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Ryan Friederich 303-913-1571 Same Day Transportation [email protected] and Distribution Solutions Up-and-comer seeking a Supply Chain Demand-WAREHOUSING Analyst or like position in the Denver area. Supply Chain Management education provides a strong "ÛiÀÊÎx]äääÊõÕ>ÀiÊviiÌÊUÊ,>VÊEÊ ÕÊ-ÌÀ>}i foundation from which to build upon with more experi- ->Ê*>ÀÌÃÊ ÃÌÀLÕÌÊUÊ ÀÃÃÊ VÊ>VÌÞ ence and the right opportunity. One year of experience -iVÕÀi`ÊEÊ ÌÀi`ÊÓ{ÉÇ with Oracle and Query Builder, running Supply Chain related reports, and leading various projects. Contact for Not Just Another Delivery Service more information or to speak about a position. CSCA. iÛiÀÞÊEÊ ÕÀiÀ Ý«i`Ìi`ÊÀi} ÌÊ>`} ÃÌÀLÕÌÊEÊ }ÃÌVà Elizabeth Morris 303-775-9758 [email protected] 404.249.9000 or 800.328.6078 vJiÝiVÕÌÛiVÕÀiÀ°VÊÊÊÊÊÜÜÜ°iÝiVÕÌÛiVÕÀiÀ°V Transportation Professional Seeking Leadership Position in Logistics, Supply Chain, or Transportation Highly accomplished, networked, and successful transportation professional seeking mid to upper level position. 16+ years rail experience including 9 years expertise in Car Hire and 12 years in accounting/finance. Effective communicator at all levels, management experience, understands business practices, priorities, OHIO RACK, INC. and goals of the company. Able to relocate. %! $% " %) %$%"' Joseph Solano 949-573-5126 #$ # !"$ $ # [email protected] $ # $ $" # Experienced Logistics/Operations Director Multi-Lingual, Experienced Director of Logistics/Opera- !" !" !" $ ! 800-344-4164 tions, Shipping, Receiving, Inventory Control, Process ( *!"& # $!%"'# $$ Flow, Part Tech-Geek, and Part Politician. ### Brian Stowers 303-720-8960 [email protected] An accomplished and experienced Transportation and Trade Compliance professional Seasoned in managing and directing both imports and exports as well as classification, licensing, tariff engi- neering, duty drawback, regulatory compliance and all appropriate documentation. I have a thorough under- standing of all Export Administration and US Customs Regulations and have successfully integrated sound trade requirements into global business processes.
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RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl LOGISTICS CONFERENCE 2010
February 21-24 • Gaylord Palms Resort & Convention Center • Orlando, FL If you go to just one event in 2010, make it RILA’s Logistics Conference. Why? Because RILA’s Logistics 2010 is the best single gathering of top supply chain executives from retail and consumer products companies. ■ Its educational sessions are focused on both current issues and forward-thinking solutions. ■ Its attendees are from the largest and most innovative retail companies. ■ Its size makes it the best networking forum in the business. ■ And its format ensures you’ll get maximum ROI for your investment. Featured Speakers ■ Dollar General Chairman & CEO Rick Dreiling will share his perspective on the crucial role of the supply chain in retail operations in a time of economic uncertainty. ■ UPS Chairman & CEO Scott Davis will address the economy and its affect on retail. Rick Dreiling Scott Davis Chairman & Chief Executive Officer Chairman & Chief Executive Officer Dollar General Corporation UPS ■ U.S. Trade Representative Ambassador Ron Kirk will make his first appearance before a retail community on the state of trade. ■ University of Arkansas Professor Matt Waller, Ph.D, will explore the future trends in the retail supply chain.
Ron Kirk Matthew Waller, PhD ■ Editor of Newsweek International and CNN Host Fareed Ambassador Professor of Marketing & Logistics U.S. Trade Representative University of Arkansas Zakaria will give the international perspective on the future of retail. ■ NFL Hall of Famer, Actor and FOX Sports Analyst Howie Long will use his past experiences in overcoming obstacles as motivation for attendees.
Fareed Zakaria Howie Long Editor, Newsweek International NFLHallofFamer Columnist & CNN Host Actor & FOX Sports Analyst Register today at www.rila.org/logistics.
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FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RESOURCE 12.09 CENTER INBOUND LOGISTICS WORKS FOR YOU!
3PLs ■ Landstar pg. 29 Call Landstar when you need safe, reliable trans- ■ ADS Logistic Services Cover 3 portation, logistics, and warehousing services. Let ADS drive down cost and speed your product to market. Get acquainted with ADS’ customized www.landstar.com 800-440-2890 distribution and fulfi llment service offerings. ■ Laufer Group International pg. 15 www.adslp.com 877-ADS-1330 Laufer Group International has been providing global logistics management solutions for more ■ ATC Logistics & Electronics pg. 21 than 60 years. ATC Logistics & Electronics’ proven, world- class solutions help you exceed your customers’ www.laufer.com 212-945-6000 expectations. ■ Lynden pg. 27 www.atcle.com 800-466-4202 A full-service freight forwarder, including air, ocean, and customs brokerage, Lynden connects ■ BNSF Logistics pg. 35 you with hard-to-reach locations. BNSF Logistics handles any level of complexity and builds simple solutions. www.lynden.com 888-596-3361 For a specifi c response, contact www.bnsfl ogistics.com 877-853-4756 pg. 37 ■ Regal Logistics these advertisers Regal Logistics delivers faster replenishment ■ C.H. Robinson Worldwide pg. 3 directly. Please tell cycles, better store shelf stock rates, lower logis- C.H. Robinson is one of the world’s largest third- them you saw their ad in tics costs, and superior customer service. party providers of freight and transportation Inbound Logistics. logistics, fresh produce sourcing, and information www.regallogistics.com 253-922-2250 services. ■ Ryder pg. 5 For general www.chrobinson.com 800-323-7587 Unmatched experience, fl exibility, and expertise questions about make Ryder the one to turn to all over the globe. ■ Cardinal Logistics Management pg. 25 particular industry When your fi rst choice is Cardinal, you won’t give www.ryder.com 888-88-RYDER segments, use a second thought to other 3PLs. Cardinal’s experi- the card between ence, technology, and service can add up to prof- Career Development/Education pages 8-9 and pages 56-57. its for your company’s bottom line. ■ American Public University (APU) pg. 50 www.cardlog.com 800-800-8293 APU offers bachelor’s and master’s degrees in transportation and logistics management entirely For faster service, ■ Corporate Traffi c Logistics pg. 11 online, designed to fi t the busy schedule of logis- go online: Corporate Traffi c Logistics focuses on your needs, tics professionals. inboundlogistics.com/rfp offering logistics services including dedicated con- www.studyatapu.com 877-777-9081 tract carriage, warehousing, and distribution. www.corporate-traffi c.com/ilm 800-787-2334 ■ Arizona State University pg. 31 Earn your MBA with a supply chain management ■ CRST International pg. 19 emphasis, or pursue a professional or graduate From van expedited to fl atbed, short haul to dedi- certifi cate in supply chain management. Arizona cated fl eet, or total logistics management, CRST State University’s W.P. Carey School of Business has the resources and is ready to roll for you, offers both programs online. today and for years down the road. www.wpcarey.asu.edu/supplychain 480-965-8006 www.crst.com 800-736-CRST ■ California State University, Long Beach pg. 52 ■ J.B. Hunt Transport Services Cover 4 Earn a Master of Arts in global logistics in less J.B. Hunt is an industry leader in transportation than 21 months at California State University, management, handling everything from large- Long Beach. scale construction projects to seasonal surges. www.ccpe.csulb.edu/citt 562-985-2872 www.jbhunt.com 866-516-7305
December 2009 • Inbound Logistics 61
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■ Elmhurst College pg. 49 provide access to a state-of-the-art supply chain With Elmhurst’s Master of Science in Supply Chain technology lab, top faculty, and leading-edge Management, you’ll gain a sound technical founda- research. tion while honing the skills you need to succeed. www.unf.edu/coggin/trans_logist 904-620-1961 www.elmhurst.edu/scm 630-617-3300 ■ University of Wisconsin–Madison, ■ George Mason University pg. 50 Wisconsin School of Business pg. 53 Earn a degree that takes a multidisciplinary Gain shared knowledge and industry contacts by approach to prepare graduates to work effectively attending Executive Education programs in supply in today’s logistically integrated intermodal trans- chain, transportation, and purchasing. portation systems. Study course topics such as www.exed.wisc.edu/sc 608-441-7357 transportation policy and planning, transportation and land use, international transportation sys- Events tems, and intelligent transportation systems. pg. 60 www.policy.gmu.edu 703-993-8099 ■ Logistics Conference 2010 Presented by the Retail Industry Leaders For a specifi c ■ Institute of Logistical Management pg. 7 Association, Feb. 21-24, in Orlando, Fla., Logistics response, contact The Institute of Logistical Management offers dis- Conference 2010 helps you develop strategies to these advertisers tance learning in many areas of logistics and sup- drive supply chain performance in a volatile eco- directly. Please tell ply chain management. nomic environment and a rapidly changing world. them you saw their ad in www.logisticseducation.edu 888-ILM-4600 www.rila.org/logistics 703-600-2039 Inbound Logistics. ■ L.I.F.T. Training pg. 50 ■ SMC3 Winter Conference pg. 39 L.I.F.T Training provides forklift training and indus- Get a jump start on the challenges and opportuni- For general trial safety courses such as crane, aerial work ties of 2010 at the SMC3 Winter Conference, Jan. questions about platform, and skid steer loader training. 19-20, 2010, in Atlanta, Ga. You’ll get an all-encom- particular industry www.lifttraining.com 877-756-8631 passing view of the critical issues that could segments, use impact your company in 2010, as well as solutions the card between ■ Lion Technology pg. 52 for future success. pages 8-9 and For more than 25 years, Lion Technology has www.smc3.com/go/conference 800-845-8090 pages 56-57. been the leader in regulatory compliance training. www.lion.com 973-383-0800 Lift Trucks For faster service, ■ Kalmar pg. 57 go online: ■ Syracuse University, Whitman School of Management pg. 52 Whether it’s positioning 55 tons in a tight space, inboundlogistics.com/rfp or delivering the lowest possible lifetime cost, Whitman is supply chain – it runs the oldest sup- Kalmar forklifts stand out from the crowd. ply chain management program in the nation, offering comprehensive bachelor’s, master’s, www.kalmarind-northamerica.com 888-229-6300 MBA, PhD, and executive programs, as well as Six Sigma training. Logistics IT www.whitman.syr.edu/scm 315-443-3751 ■ Cheetah Software Systems pg. 8 Take the fastest route to success with Cheetah ■ pg. 51 The World Academy Software Systems. Cheetah provides real-time The World Academy leads and trains import/ LTL and delivery software that increases profi t export managers in global trade through a variety margins, effi ciency, and productivity. The soft- of classes and workshops. ware comes in easy-to-use customizable versions www.theworldacademy.com 877-265-0070 that any delivery, LTL, or 3PL company can use. www.cheetah.com 888-CHEETAH ■ University of North Florida, Coggin College of Business pg. 53 UNF’s Transportation and Logistics undergradu- ate, graduate, and executive education programs
62 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND Use our Resource Center and let the information you need fi nd you.
Mobile Communications Site Selection/Real Estate Logistics ■ Sprint pg. 13 ■ State of New Jersey pg. 17 Nextel Direct Connect helps keep your entire fl eet Situated at the center of the Northeast Corridor, on schedule and in touch so you can deliver the New Jersey is easily accessible to more than 100 goods. Nextel Direct Connect is available only on million consumers through an extensive transpor- Sprint’s Now Network. tation infrastructure that includes ports, roads, air, www.sprint.com/nextel 800-NEXTEL-9 and rail systems. www.newjerseybusiness.gov 866-534-7789 ■ Verizon Wireless Cover 2 Verizon Wireless, owner of the nation’s larg- est Push to Talk Network coverage area, offers America’s most reliable voice network. www.verizonwireless.com/distribution 800-VZW-4BIZ For a specifi c response, contact these advertisers INDEX directly. Please tell them you saw their ad in ADVERTISER PAGE ADVERTISER PAGE Inbound Logistics. ADS Logistic Services Cover 3 Landstar 29
American Public University (APU) 50 Laufer Group International 15 For general Arizona State University 31 Lion Technology 52 questions about particular industry ATC Logistics & Electronics 21 Logistics Conference 2010 60 segments, use BNSF Logistics 35 Lynden 27 the card between pages 8-9 and C.H. Robinson Worldwide 3 Regal Logistics 37 pages 56-57. California State University, Long Beach 52 Ryder 5 Cardinal Logistics Management 25 SMC3 Winter Conference 39 For faster service, Cheetah Software Systems 8 Sprint 13 go online: inboundlogistics.com/rfp Corporate Traffi c Logistics 11 State of New Jersey 17 CRST International 19 Syracuse University, Elmhurst College 49 Whitman School of Management 52 George Mason University 50 The World Academy 51 Institute of Logistical Management 7 University of North Florida, Coggin College of Business 53 J.B. Hunt Transport Services Cover 4 University of Wisconsin-Madison, Kalmar 57 Wisconsin School of Business 53 L.I.F.T. Training 50 Verizon Wireless Cover 2
Inbound Logistics (ISSN 0888-8493, USPS 703990) is published monthly for 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 offi ces. 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
December 2009 • Inbound Logistics 63
RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl THE SUPPLY CHAIN IN BRIEF
THELAST MILE
Land of the Rising Bar Code
hat’s red and white and read all over? A Japanese bar code, naturally. Even with the still-emerging promise of radio-frequency W identification (RFID) and the potential of nanotechnology, the popular and ubiquitous scanning label plays a vital role in managing inventory from store shelves to the factory fl oor. But in Japan, it isn’t enough to simply use generic black-and-white tags to capture data. Companies such as D-Barcode are capturing the consumer’s attention with bar-code color and creativity, combining technological practicality with marketing gimmickry. From fl ower motifs to railroad tracks to piano keys, D-Barcode has been crafting customized bar codes for Japanese customers since 2005. Now the company is taking its product global. Starting at $1,500 for the design, and $200 a year for licensing, companies can create their own bar-code labels to make SKUs sell and information stick. Can you do that with RFID?
64 Inbound Logistics • December 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND RECEIVE FREE NO OBLIGATION GUIDANCE AND ADVICE www.inboundlogistics.com/3pl Aljkfe\f] dXep_Xkj n\ËccY\ n\Xi`e^%
KfkXckiXejgfikXk`fejfclk`fejÆ`kËjnfik_pf]XZ\c\YiXk`fe% And the fun really begins in 2010 when we roll out even more innovative technologies that will drive efficiencies and add value to every load. There’ll be additional sustainability breakthroughs that will ensure our fleet remains one of the greenest on the road, and we’ll complete work on a nationwide network of cross docks that will serve 98% of the U.S. households. When you’re ready to get down to business, remember the transportation company that brings the most solutions to the party: J.B. Hunt.
@EK :fekXZkljXk($/--$,(-$.*', fi\$dX`cljXkmXcl\X[[\[7aY_lek%Zfd nnn%aY_lek%Zfd N_XkËjpflie\okdfm\6 3PL CHALLENGES? FREE EXPERT SOLUTIONS www.inboundlogistics.com/3pl