Di s t r i b u t i o n Bu s i n e s s Ma n a g e m e n t Jo u r n a l

Volume 2, 2004 Price: $5.00

Lean, Smart, Supply Ch a i n s

RF I D : The Next Generation of Bu s i n e s s

Beyond Fill Rate: Perfecting the Perfect Order

DBM 2004 Directory and Reference Guide

DC Expo 2004 Ov e r v i e w

Kraft Foods: Sustainable Logistics Leads to Long-Term Pr o f i t a b i l i t y

Lean Thinking in Distribution Ma n a g e m e n t

The Learning Path to RFID at Ph a r m a v i t e

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Circle Number 66 Circle Number 67 DB M J Di s t r i b u t i o n Bu s i n e s s Ma n a g e m e n t Jo u r n a l

4 St a f f 21 The Learning Path to RFID at Pharmavite 4 Introduction: Special Focus on Lean, Smart, This special feature Supply Chains profiles an individual who has received special 5 Ed i t o r i a l recognition and status 7 Publisher‘s Letter through on going, educational efforts 9 Industry Rou n d u p and professional ac h i e v e m e n t s . 10 Using Lean Thinking in Distribution 27 DBM 2004 Exhibitor Ma n a g e m e n t Directory and Applying lean concepts Reference Guide to distribution systems and networks is a 45 Advertisers Index logical and powerful 46 DC Expo 2004 exercise that can Exhibitor Listing result in measurable im p r o v e m e n t s . 52 Kraft Foods: Sustainable 14 RF I D : The Next Logistics Leads to Generation of Business Lo n g -Term Businesses change as Pr o f i t a b i l i t y new strategies are Kraft recognizes that devised, different over the long term, some business practices sustainable practices can are put to use, and new increase product quality technologies deployed. and actually reduce cost. The way business is conducted is changing. 56 Spotlight on 17 Beyond FIll Rate: Education and Perfecting the Perfect Res e a r c h Or d e r Logistics education at Distribution centers Ohio State University is have worked hard to highlighted in this get their fill rates up - is s u e . often into the high 90th percentile – only 60 Customer Service: to find that customers The Key to a are still not happy. Successful Supply What companies are Chain doing to improve In the ever-changing food pe r f o r m a n c e . in d u s t r y , the dynamics continue to drive logistics professionals toward more creative, innovative supply chain solutions.

3 Di s t r i b u t i o n Bu s i n e s s In This Issue: Ma n a g e m e n t Jo u r n a l

Amy Z. Thorn Special Focus Publisher, Editorial Director Michael Schwartz Editor on Lean, Smart John T. Thorn Executive Publisher Ron Malec Supply Chains Director Creative Services Susanne Munford Administrative Manager Today, management at all Mike Hrabina‘s article. levels is expected to embrace Another major factor driving Editorial Advisory Board smart technologies, secure the U.S. economy in 2004 is Dr. Michael Crum their supply chains, and “think security and the war on terror- Iowa State University lean.“ This issue of the journal ism. In the U.S. post 9/11, busi- Dr. O. Keith Helferich proves that distribution busi- nesses have had to take a hard Central Michigan University ness management is no excep- look at their supply chain‘s Dr. Jezdimir Knezevic tion. It‘s all part of survival in security policy. Companies that MIRCE Akademy, U.K. the business world. Hopefully have met the challenge have Detlef Spee this issue will help you under- seen improved business per- Fraunhofer Institute, stand how to prepare for the formance measured in terms University of Dortmund, many technological, political, of cost reduction, operation Germany and ecological challenges that efficiency, and customer satis- lie ahead. faction. Up-to-date information Published quarterly by: There are some companies on this timely topic can be that have received awards for found in the article, Securing Distribution Business Management Association doing just this. Like the Circle the Food Supply Chain. of Excellence Award winner On the economic front 2938 Columbia Ave., Suite 1102 Kraft, a company that recog- there‘s been talk about manu- Lancaster, PA 17603 nizes that over the long term, facturing outlook. In the begin- Phone: 717-295-0033 some sustainable ecological ning of 2004 it looked bleak but Fax: 717-299-2154 e-mail: [email protected] practices can increase product recent data shows an upward www.DCenter.com quality and actually reduce trend. One reason for the co s t . recovery is that so many man- Distribution Business Management Journal A DBM Publication All businesses can learn from ufacturers are working leaner 2938 Columbia Avenue, Suite 1102 Lancaster, PA 17603 the food industry where the and smarter. Efficient supply Internet: http://www.DCenter.com necessity of the just-in-time chains may be the key to main- Journal Reprints: 717-295-0033 delivery at the lowest total cost taining a competitive edge in Distribution Business Management Journal (ISSN 1535- 1254) is published quarterly by DBM, Inc., 2938 requires a lean, streamlined, the global economy. A detailed Columbia Avenue, Suite 1102, Lancaster, PA 17603, phone 717-295-0033, fax, 717-299-2154, internet cost-effective supply chain, account can be found in Dr. http://www.DCenter.com. Periodicals postage paid at according to Rick Blasgen, V.P. Alexis Summers, refereed arti- Lancaster, PA and at additional mailing offices. Postmaster send address changes to DBM Journal, of Supply Chain at ConAgra cle on “Using lean thinking in 2938 Columbia Avenue, Suite 1102, Lancaster, PA 17603. Subscriptions in the U.S. $20.00 for one year, and this issue‘s thought leader- Distribution Business $35.00 for two years, single copies $5.00. Subscriptions ship author. Management.“ in Canada $25.00 for one year, $45.00 for two years, sin - gle copies $7.00. Outside the U.S. and Canada, $30.00 Modern businesses have also This issue also highlights the for one year, $55.00 for two years. International single copy $9.00. Send remittance in advance to DBM, 2938 relied heavily upon technology Annual Distribution Business Columbia Avenue, Suite 1102, Lancaster, PA 17603.

as a way to increase quality Management Conference co- Printed in the USA copyright©2004 by DBM, Inc. and reduce costs. A hot topic located with DC Expo at the No part of this publication may be reproduced or trans- in the press lately is RFID. In Navy Pier in Chicago. This mitted by any means without permission from the pub- lisher. Permission to photocopy for internet use or the this issue you can learn about years‘ event offers an interac- internal use of specific clients is granted by DBM Inc. technologies that are changing tive conference dedicated to for libraries and other users registered with the Copyright Clearance Center, CCC provided that a base our world like the Smart Chip education in the distribution fee of $1.25 per copy of the article plus 60 cents per page is paid directly to CCC, 222 Rosewood Dr., technology talked about in and logistics industries. Danvers, MA 01923 DB M J 4 DB M J Letter From the Editor

within the box, literally and knowhow is Michael Hrabina and fi g u r a t i v e l y . his “Smart Chip“ article. The Indeed, as we see companies future is here. As the personal and individuals meet the computer made a dinosaur of the challenges before them, success mainframe, so too may the most often comes from a fresh “Smart Chip,“ a tiny, wireless perspective on familiar material, device capable of transferring not from a mysterious ether of terra bytes of information without answers “outside the box“ as it its own power source, antiquate were. The answers are in the box the current supply chain with us already. Our task is to operation. become the Magellan of our own Dr . Alexis Sommers of the boxes. University of New Haven, brings Does a company measure what the thought of the East together it should when gauging its own with the business of the Wes t efficiency? How does a company with a concept known as, “Lea n ma k e environmentally friendly Th i n k i n g .“ Focusing on the initiatives and disaster relief cost distribution side of logistics, effective? Is the company Sommers explains how this Customer Service: conducting itself the best way Japanese concept seeks to Still The Bottom Line possible? Are we continuing to eliminate all waste from business, satisfy our customers while creating a “le a n “ company with a Lately I‘ve been giving the idea expanding that very base? robust profit margin. of “customer service“ more These are some of the Does a high fill rate alone thought than I ever had. Fir s t , questions facing business today necessarily correlate to satisfied because I‘m the new editor of and, thankfully, we need not tap customers? Kate Vitasek and Kar l Distribution Business the answer ether to solve them. Manrodt say no. Instead, they Management Journal, it‘s my job Kraft Foods, has at its propose a “Perfect Order,“ a to provide you, the customer, with foundation a commitment to measurement that brings into the most insightful, thoughtful, conserving resources and to account multiple metrics that and accurate journal possible. providing disaster relief to the more accurately reflect a Second and more importantly, victims of such events. Moreover, co m p a n y ‘s success in satisfying better serving your customers is Kraft holds that this concern its customers. your highest goal. Happy strengthens, not hurts the For more than forty years, Ohio customers, happy management. co m p a n y ‘s bottom line. State University has been at the Happy employees, solid business. Rick Blasgen, Senior V.P ., center of thought and innovation Solid business, solid profits. The ConAgra Foods, stresses the in the world of logistics. foundation of free market success basic need of a company to unify Ac c o r d i n g l y , OSU offers both boils down to one deceptively its structure from within to undergraduate and masters simple imperative: satisfy the ultimately turn the focus of the programs in Logistics, and cu s t o m e r . company and its employees continues to produce some of As the needs of the customer toward satisfying their customers. the most creative minds in the change, companies must adapt to This requires a planning and in d u s t r y . accommodate them. This means coordination that ensures that Businesses will need creative seeking out new technologies as everyone in the businesses minds to keep the customers of well as thinking more broadly. The benefit from the success of the the world happy. We at DBM are phrase “thinking outside the box“ wh o l e . grateful for those that have gets thrown about a great deal Ray Allen, in his piece, “RF and contributed to this edition. these days. This piece of modern BC Pic k i n g ,“ outlines a process by jargon implies a creative, innova- which a manufacturer of vitamins tive, and above all unconventional increases its efficiency and thought process. But we‘re still accuracy of shipping. By adopting talking about a process and radio frequency and bar code Supply Chain Logistics occurs in technologies, employees are able a box, be it a warehouse or a to produce more while reducing Michael Schwartz, boardroom. So perhaps the the possibilities for error. Ed i t o r solutions to new problems lie On the cutting edge of techno

5 Circle Number 68 DB M J Letter From the Publisher

your supply chain operations, professionals from the U.S. please customers, and boost and worldwide attend to the bottom line. learn about state-of-the-art Bound into this issue, is technologies presented in the the Distribution Business interactive Supply Chain Management’s 2004 Execution Lab. Conference Program and Next year’s annual DBM

Baltimore Convention Center, on Baltimore’s Inner Harbor, is the site of the DBM2005 Conference, June 7-9. For more details go to www.dcenter.com. Information – Your Most DC Expo Overview. This conference will be co-located Valuable Res o u r c e year’s event marks DBM’s with the Eastern Material twelfth annual interactive Handling Show from June 7-9, n today’s fast past conference. The DBM 2005 in Baltimore, Maryland. economy, one of the Conference offers a one-of-a- This issue’s focus on infor- Ibiggest challenges facing kind distribution lab featuring mation technologies is businesses is to keep abreast cutting edge solutions for the designed to help you map of all the technological supply chain industry. out strategies for achieving advancements designed to The event is co-located with logistics and supply-chain make operations more effi- DC Expo from May 18 – 20 at success in a technology- cient and profitable. the Navy Pier in Chicago, dependent business Whether you’re dealing with Illinois. The combined events environment. emerging technologies or feature more than 250 For our readers: We hope finding new uses for older exhibitors spanning the entire the Journal supplies just-in- ones, facing new business supply chain with special time industry specific practices, or changing cus- emphasis on Radio Frequency information when you need it tomer expectations, you need Identification (RFID) most. This has always been, a resource that will help you technologies. and remains, our chief focus. meet the challenges of our Realizing that time is a global economy. valuable resource, the DBM The DBM Journal is Conference covers the nuts- designed to do just that: and-bolts of supply chain Supply key information that management in three action- A m y T h o r n , you can use to streamline packed days. Top industry Pu b l i s h e r, Editorial Director

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Refereed Article:

dies from a lack of expertise and ownership. The challenge is to Using Lean find techniques that employees in the workplace and their front line, fi r s t -level supervisors, can put to Thinking in work. There are many lists and guidelines available in textbooks and journals, but it is essential in Di s t r i b u t i o n distribution to focus on tech- niques easy to implement and li k ely to produce real improve- Ma n a g e m e n t ments. This is called “separating the wheat from the chaff,“ and it Al e xis N. Sommers, Ph.D. is not easy. University of New Haven It is important to recognize that “lean thinking“ is exactly what it implies: the conscious effort, tightly focused, to objectively Ab s t r a c t stant and unrelenting pressure to examine one‘s own workplace Ja p a n e s e -inspired operations deliver the goods on-time and in and working environment in a analysis to eliminate all waste, good condition. Additional pres- search for waste, increased pro- and to improve productivity and sure for cost reduction, customer du c t i v i t y , lower total cost, and qu a l i t y , is now part of lean think- satisfaction, and inventory reduc- higher throughput. As part of this ing and its ally, theory of con- tion contribute to managerial cerebral search, one must look for straints. Management at all levels stress and frustration. On top of evidence of capacity-co n s t r a i n e d is now expected to “think lean,“ that, customers now find a myri- resources, a formal name for bot- and distribution business man- ad of different ways to stretch tlenecks, which limit output, cre- agement is no exception. out payments, expecting just-i n - ate unneeded inventory, and get Applying lean concepts to distrib- time service but giving wait-a n d - in the way of smooth, on-time ution systems and networks is a wait payment in return. Fac e d operations. While bottlenecks logical and powerful exercise that with these pressures, SCM man- may seem obvious and easy to can result in measurable improve- agers are taking a look at the spot, in fact many of them are ments. Several lean concepts are Ja p a n e s e -inspired “lean con- hidden and unrecognized. What described which are especially ce p t s “ to see if they offer tools many assume to be a bottleneck useful in distribution-related appli- which they can use in warehous- proves upon analysis to be an 1 cations, and case examples are ing and distribution . Allied with unconstrained resource, while presented which illustrate feasible “lean thinking“ is the “theory of output is actually throttled by a benefits. The concepts promote constraints,“ or TOC, which complex or slow process where se l f - examination, and, if incen- encompasses lean techniques in the impact was never fully tives are provided, encourage a its “thinking processes,“ which assessed. Quite often, a bottle- workforce to look for excess are powerful tools for addressing neck is a bureaucratic or paper- 2 in v e n t o r y , bottlenecks, excessive core organizational problems . work procedure and not a physi- de l a y , and long lead times on their Li k e so many theories and con- cal impediment. Using lean think- own initiative. Evolutionary rather cepts in business management, ing as a tool to assess one‘s own than revolutionary, lean concepts there exists a large gap between shop may generate surprises. The can become part of an organiza- conceptualization and implemen- wise person turns surprises into ti o n ‘s culture, resulting in lower tation to solve a “re a l - w o r l d “ opportunities. While pressures to costs and better customer-v e n d o r problem. Too often, SCM does improve are constant and unyield- re l a t i o n s h i p s . not have the intellectual man- in g , there are effective ways to po w e r , especially in a small com- find and implement improve- Everyday Pre s s u r e s pa n y , to digest theoretical con- ments and thereby turn pressure Nobody envies those who work tent and adapt it to the opera- into a constructive push for in the distribution side of logis- tional problems at hand. ch a n g e . tics. It lacks glamour and involves Consultants are always available, but, unless they properly educate Lean Concepts for warehouses, always the scene of Di s t r i b u t i o n bad things in cop movies. Too, in the necessary people, their con- the supply side of supply chain tributions to their client end The much-quoted word for management, or SCM, is the con- when they leave, and the project waste in Japanese is “muda.“ In DB M J 10 DB M J

seeking lean operations, waste in Creating a Culture and concepts and techniques. That all its forms must be observed, Setting the Stage task will take time, dedication, analyzed, and reduced or eliminat- One thing apparent from years mo n e y , and a demonstration of ed. This is easy to say, difficult to of observation is that attempts to personal managerial commitment. do. As many U.S . companies have operate a lean organization will At some firms, this has included discovered, Japanese culture has fail if the right supportive culture the banning of neckties, suits, an inherent distaste for waste and is not created in a timely fashion. reserved parking spaces, expen- unproductive effort, while This holds true especially in any sive corporate sedans, executive American culture has a high toler- unionized facility where “this too dining rooms, and elegant offices ance for both. Similar U.S . and shall pass“ is the sardonic mantra. for top managers. This does not Japanese companies, making Cultures do not change quickly or save much money, but it does similar products with similar ea s i l y . In one company in New signal managerial intent and com- equipment and costs, will have Haven, labor conflict endured for mitment, and its impact on productivity ratios differing by as over thirty years as an original morale may be priceless. much as a factor of three.3 A well- union organizer, still union presi- Kaizen Little Miracles educated workforce, well-trained dent, battled almost daily with the on the job to implement lean mi d d l e -aged son of the man who Once management has techniques, gives a Japanese tried to stop the unionizing effort achieved an informed workforce company a competitive advantage in the first place. The conflict ready to seriously address waste few U.S . firms can match. ceased when bankruptcy closed reduction in the name of lean Typ i c a l l y , in distribution as in man- the facility. This sad tale is not operations, trying so-called Kai z e n uf a c t u r i n g , a U.S . company must unique. Managements seeking to experiments is a good way to utilize employees with limited survive by becoming lean must seek some early successes. A educational backgrounds, little or plan cultural change and achieve Kaizen experiment is simply creat- no training in work methods and it. This effort is a team effort by ing a skill-diverse team to analyze productivity improvement, and both management and labor, and an operational problem on a full- poor work habits. On top of that, for unions too, if present. time basis over just three or four unionized workforces may be gov- In t e r e s t i n g l y , most unions are days. Drawn from various work erned by contracts which contain responsive to the lean objectives, areas or departments, a team of unproductive work rules, archaic since attainment strengthens the three, four, or five employees is quotas and performance stan- co m p a n y , securing jobs and mak- relieved of all other duties and dards, and practices which dis- ing wage and benefit increases charged with studying an courage teamwork, training, job more likel y . A slow but steady assigned problem, creating solu- fl e x i b i l i t y , and performance-b a s e d introduction of lean principles, tions or alternatives, selecting the incentives. Strong anti-manage- accompanied by lots of examples best one, and presenting its solu- ment attitudes may preclude par- and assurances that jobs and tion to a gathering of managers ticipation in joint efforts to adopt wages are not threatened, and fellow employees. lean operations. It falls to man- represents the best way to pro- Management then quickly imple- agement to create an environ- ceed. Once the workforce starts ments the solution, without judg- ment in which lean concepts will to understand lean concepts, then ing or criticizing it, and tests it for ta k e root, flower, and generate small improvements in operations performance and cost-ef f e c t i v e - the seeds for future organizational will likely occur as employees ness. The point of the experiment improvement. This leadership point out bottlenecks, constraints, or “Kaizen event“ is to demon- task is formidable, especially in inefficiencies, and those little bits strate that management respects cynical workforces that have of stupidity that they know cost and values the team‘s efforts, and endured years of primitive down- the company time and money. is prepared to honor the team‘s sizing and cost reduction. Many Management, of course, must solution by implementing it. managements embraced lean show its own commitment to Ob v i o u s l y , management takes a thinking only recently: the recog- lean concepts and recognize or risk here, but not a big one. If a nition must be that their labor reward employee participation. Kaizen team does a serious job forces will take years to develop a This is not the time for managers and improves an operational prob- culture that incorporates lean to receive expensive “perks“ or to lem or removes it, then the com- ideas and methods. If nothing brag about bonuses and stock pany is the beneficiary. If the else, the move towards lean oper- options. Setting the stage team does a poor job, then the ations requires managerial requires leading by example. implemented solution will prove patience combined with a gen- Ma n a g e m e n t ‘s task is to create ineffective and can be modified or uine commitment to give a work- the foundation of a culture that scrapped. In either case, an force the tools to do the job. will adopt and implement lean important message is broadcast

11 to all: management trusts the movements within a factory freeing the purchasing manager to employee teams to make deci- or warehouse. With this in hand, negotiate directly with common sions that will be implemented in all employees are asked to sug- carriers to handle inbound logistics, good faith. Kaizen is serious stuff, gest ways to streamline this may cut the cost of purchased and management is committed to movement, and to eliminate goods by as much as 5%. On a big making it work. This is power in movement wherever possible. budget, this represents a significant the workplace, but not all employ- Unnecessary transport is waste. savings. Retreats, special meetings, ees will respond to it. For those Once the picture is made, sug- and focused review groups can be who do, the sense of empower- gestions for improvement flow charged with looking at all con- ment must be real. In warehouses thick and fast. It is not unusual for straints, both real and imagined, to in Connecticut, employee Kai z e n total movement to be reduced by see if they can be reduced or elimi- teams have created an improved a third or more every time a chart- nated. In the process, hidden con- ba r -coding system, a fail-sa f e ing project is completed. Once straints may be dragged into the visual product identification sys- reduction is achieved, an aware- spotlight and thoroughly assessed. tem, and improved order-p i c k i n g ness of wasted movement sets Emerging constraints, especially procedures. These seemingly in. Over time, a steady reduction those imposed by regulatory bod- small improvements provide long- in total movement tends to devel- ies, can be studied beforehand and term savings and deliver a great op on its own momentum. their negative impacts blunted or deal of employee satisfaction. Management, of course, must removed. A periodic, close exami- They were not thought of by man- show its delight and reward initia- nation of perceived organizational, agement or by expensive consul- tive, and also provide incentives ma r k et, and supply chain con- tants. Home-grown, they were for future effort. straints, by a diversified and uncon- immediately adopted and their strained team, can validate, mini- creators recognized. The payoff is Constraint Assessment mize, and understand true con- therefore multidimensional. Emerging from Goldratt‘s “theory straints while jettisoning false ones. of constraints“ methodology, now A company will be the leaner for it! Movement Charting lumped under the acronym TOC, is Although TOC is sophisticated in One of the staples of old-fash- a new appreciation for the hidden its methodology, it can be mas- ioned industrial engineering was constraints that subtly shape an tered in its basic form by almost movement charting, the systemat- or g a n i z a t i o n ‘s performance and everyone, provided they receive ic study of how materials, prod- ability to change.5 Many con- sufficient training. A number of uct, vehicles, cranes, lift-t r u c k s , straints seemingly tie a company‘s small firms facing serious survival and people moved themselves or hands behind its back, yet upon problems have educated all their were transported from one place close scrutiny prove minor or even employees in TOC methodology, to another within a physical plant. irrelevant. Why must we stay in drawing all of them into teams to Extending this approach to an Connecticut? Why do we acqui- assess constraints and devise bet- entire supply chain, careful move- esce to our major customer‘s ter ways to do business. Lean tech- ment charting often gives new every whimsical demand? Is the niques integrate easily into TOC insight into a company‘s logistics union really inflexible on work analysis. The search for waste and re a l i t y , generating a few surprises rules? Why can‘t we get into the low productivity often reveals hid- and a lot of opportunities to die casting of magnesium? den bottlenecks and other con- become more lean and produc- Questioning constraints leads to straints. Creative solutions coming tive. This can be done on a grand lean operations if these constraints from focused teams typically scale, as reported by GM can be eliminated or reduced in improve customer service and cut Worldwide Purchasing at the TOC scope and impact. For example, costs. In distribution systems, solu- World 2002 Conference, or in the having suppliers pay for shipping tions tend to adopt policies that pull packaging and shipping depart- appears to save a customer inventory frequently from DC‘s and ment of a small company.4 mo n e y . The customer may insti- suppliers in small batch sizes, Movement charting takes time, tute a rule, which becomes a con- thereby reducing inventory buildup, and may even require videotaping straint, stating that suppliers must increasing inventory turns, and min- and work measurement tools, foot the freight bill. But a thought- imizing replenishment lead times. which puts it outside the scope of ful purchasing manager may con- These are all characteristics of lean a typical Kaizen project. Yet it is a clude that a supplier simply recov- systems, but emerge from TOC good project for employee ers the freight charge by hiding it analytical processes; all are means involvement: indeed, it is far less in the product‘s purchase price, to achieving the same end. threatening if non-management and may greatly inflate the freight people do the work. The goal is to charge to pad the margin.6 Future Success create a picture for all to see of Eliminating this constraint, thereby In global markets, one never DB M J 12 DB M J

knows where or when a competi- 4. Begin, R., and Ellis, P., Ca p i t a l i z i n g 6. Strozniak, P., Buried Treasure, tor will emerge to grab your cus- on the Momentum, TOC Wor l d Frontline Solutions, January, 2003, tomers. That competitor may be in 2002 Conference, Mohegan Sun, pp. 21-23. Asia, Brazil, South Africa, or Connecticut, November, 2002. 7. Sommers, A.N., Birth and Death Alabama, but that hardly matters. 5. Goldratt, E.M., It‘s Not Luck, Th e Processes in Die Casting, Di e A competitor will have some initial North River Press, Great Barrington, Casting Management, October, success, but then must face deter- Massachusetts, 1994. 2002, pp. 23-25. mined opposition, and the fittest will survive and prosper.7 Lean con- cepts give a company a powerful tool to constantly improve its costs and efficiencies. A motivated, edu- cated workforce whose culture supports continuous improvement in all its forms may fully utilize this tool. It may take years for a work- force to reach the experience level exhibited by companies in Japan. What is important is that a work- force understands and implements lean operations. Over time, it will become a formidable competitor and a low-cost, high-quality pro- du c e r . How else can one meet pre- sent and future competition? The path to lean operations, incorporat- ing fellow travelers such as TOC, is a hard one to start upon, but travel becomes easier with time and experience. A lean organization with steadily improving productivi- ty and unbound by any false con- straints will prove a formidable co m p e t i t o r . If that organization possesses state-of - t h e -art technol- og y , and has a complete under- standing of its customers and mar- kets, then its future is assured regardless of competition. It will enjoy a high probability of success. In an age of uncertainty, this is the best news of all.

Ref e r e n c e s 1. Womack, James P., and Jones, Daniel T., Lean Thinking, Simon and Sc h u s t e r , New York, 1996. 2. Goldratt, E.M., What is this thing called Theory of Constraints and how should it be implemented? The North River Press, Great Barrington, Massachusetts, 1990. 3. Harvard Business School, Connecticut Spring and Stamping Co r p o r a t i o n , Case 9-698-039, Boston, Massachusetts, January 23, 19 9 8 . Circle Number 70

13 Feature Article:

well affect business at a strategic level as well. It can change what a RF I D : company sells and to whom they will sell. As a result of the chip‘s use, entirely new businesses will Th e Ne xt be created and those that fail to adopt it may find themselves at a significant competitive disadvan- Generation of tage. And all of this as a result of a tiny memory chip with as little as 96 bits of storage…a dozen Bu s i n e s s . bytes… just three computer words. Yet used as a pointer to a directory, Michael Hrabina, FEIG Electronic, GmbH it can access terra bytes of infor- mation; a trillion bytes of memory that could store hundreds of times more information than is presently ver time, businesses of the more recent clippings are housed in the Library of Congress. change as new strate- ta k en from the national newspa- In the last several years, the price Ogies are devised, differ- pers and have even received cov- of an RFID tag has declined to ent business practices put to erage on several nightly televi- ma k e something of the magnitude use, and new technologies sion news programs. The smart described above practical for imple- deployed. The way business is chip, as it is often called, is a mentation on the massive scale conducted evolves over time as wireless, memory storage device. planned. The largest retailer in the well. It must. It‘s all part of sur- It is a passive device in the sense world is in the process of imple- vival in a competitive business that it has no active, on board menting a scalable system archi- world. Significant transforma- power source, absorbing radiated tecture that has been researched, tions, marked by a fundamental energy passing through the air developed, tested, and piloted by change in how the business is from an antenna, activating its MIT‘s Auto-ID Center, sponsored by practiced, create an, “old way of processor to transmit data over a a consortium of companies second doing things,“ becoming inca- wireless interface. only in size to the World Wide Web pable of effectively competing Naturally espoused by the tech- Consortium. All of this activity is against the new business model. nology providers that developed leading us into the “Next Henry Ford accomplished this and market the smart chip, the Generation of Business.“ with his assembly line. This is a device has received endorse- As businesses progresses, tech- good example of a generational ments by major-end user initia- nology advances; breakthroughs change in manufacturing mass tives in retail logistics. It is being enable companies to overcome old produced products. Toy o t a thoroughly examined by integra- obstacles. For example, the first brought about a generational tors of IT and material handling generation of computers were change in regard to quality con- systems for expanded capability massive, room-sized machines that trol and Dell Computer did the for their information and control required skilled scientists to build, same by establishing the early systems. Val u e -added resellers program, operate, and maintain. benchmark for supply chain logis- are intrigued by the potential for They were so expensive that only tics. In each of these examples, new business opportunities that government agencies or very large technology was used to assist the Smart Chip offers. The corporations and universities could the generational change, but, to Uniform Code Council, the group afford to use them. These first be sure, change was first brought that manages the UPC number- machines evolved into business forth by a visionary idea. Another ing system, is commercializing its mainframes and mini-co m p u t e r s , such change is in the offing. use, forming a new organization yet even in this form, they still For a technology that has been called EPC Global to undertake required highly skilled program- around for a quarter century, the effort. This action is causing mers to run and time consuming Radio Frequency Identification alarm among privacy rights advo- key punch operators to enter data. (RFID) is getting a lot of new cates who see the potential for The second generation of com- press coverage. Although it is corporate misuse of personal puters emerged in the 1970‘s as common for trade journals, tech- information. the personal computer. If you were nology oriented publications, and The use of a smart chip is cer- around, you may recall the Rad i o industry newsletters to carry tain to change business at an Shack TRS-80, the first personal information on the subject; some operational level, yet it may very computer targeting the small busi-

14 ness and consumer market . boggle the mind. If you have ever unobtrusively links information and Everyone can easily recognize the had the opportunity to visit such an material movement, creating a quantum leaps in personal comput- automated facility, the sense that wireless network out of the items er technology since the TRS-8 0 . the system is in control, running themselves. Contemplate this mar- The second generation of comput- itself and the operation becomes riage between real time physical ing marshaled in the technology palpable. These systems exhibit movement of an item to vast revolution that led to huge increas- many of the traits of a third genera- stores of real time information es in productivity. With the advent tion computer. about the item in motion and you of standard operating systems, In large part these systems use a may get a glimpse into the next combined with a wide variety of bar code as the data capture generation of business. Creative, application programs, one no method. In the often used, cost cutting edge applications based on longer needed an engineering versus performance analysis, com- the unique data capture features of degree to operate a computer. pared to other automatic identifica- RFID to access previously inacces- Today everything is smaller and tion techniques, the bar code pro- sible information will form the foun- more powerful, as mobile comput- vides the low cost means to mark dation for intelligent systems to ing leaps from laptops, to PDA‘s, to an item with a machine-r e a d a b l e flow goods through a supply chain tablet PC‘s and web panels. So code. The scanning systems for li k e the high speed automated sort- no w , let me ask you this question: these bar codes also provide an ing systems that fly packages If the first generation of computers acceptable level of accuracy. through a distribution center, could only be run by highly trained Although these systems are, and metering the supply line and bal- individuals and the second genera- will remain the least expensive ancing inventories from the actual tion could be operated by mostly identification technology, they may point of demand instead of fore- anyone, what do you imagine the exact a higher cost in other areas. cast and trend. Whether applied to next generation of computers will Narrowly focused analysis meth- ju s t -in-time inventory control for a be like? The answer may surprise ods that measure financial justifica- manufacturer with hundreds of yo u . tion for a single point of use are suppliers, out-of - stock avoidance It ‘s probable the third generation being broadened to consider sup- for a giant retailer with thousands of computers may actually run ply chain-wide benefits with the of store locations, or managing themselves; intelligent systems realization that adding cost in one healthcare supplies between thou- that communicate, interact and area may lead to enormous overall sands of managed care providers, respond to the physical world savings to the enterprise. Data cap- the smart chip brings an unprece- around them. While this time ture is one area being re-r a t i o n a l - dented level of visibility of the sup- remains far away, the formative ized to consider the added capabili- ply chain to gain remarkable control stages are clearly underway, creat- ties of RFID, which is more expen- over asset management. Yet the ing a vision of what would be need- sive than bar code, but far more most significant benefit of the ed to accomplish something like capable. An RFID smart chip can smart chip may actually reside else- this. Computers would need to store more information, is more where. readily identify the things around accurate, and can be read at To some, the information of them. They would need a global greater distances that other Auto-I D material movement itself may infrastructure to communicate to technologies. One of the most sig- become a viable new revenue one another. They would need a nificant benefits is that large num- source. To others, responding to common definition to describe their bers of chips can be read when real time demographic knowledge world and it would require every- placed in the antenna field, making based on this information will lead thing to be uniquely identified with RFID much faster than other data to a positive impact on revenue. An readers being virtually everywhere. capture methods. More important- article tagged with a smart chip Automatic identification technolo- ly , RFID is a transparent and bi- lends itself to after-sale consumer gies play an important role in ware- directional form of automatic identi- uses for health, safety, and conve- house and distribution systems. fication. Transparent in the sense nience applications. Where previ- Nowhere is this more obvious than that radio waves are unseen and ous generational changes of busi- to witness a mechanized system pass easily through non-metallic ness affected the bottom half of enhanced with computer controls objects and bi-directional because the corporate P&L, with enormous and the ability to quickly and accu- a host system can query RFID read- increases in labor productivity and rately capture machine-r e a d a b l e ers to locate specific tags within production efficiency as well as information. The combination of the field of their antenna/reading quantum leaps in quality control automated materials handling with zone. No other form of automatic and reduced inventory levels, the automatic data capture allows the identification offers all these fea- next generational change will posi- tracking and sorting of packages at tu r e s . tively affect top line revenue as speeds and volumes that simply An item tagged with a smart chip well.

15 Circle Number 71 DB M J Industry Article:

tomer satisfaction in an effort to retain existing customers. As com- Beyond Fill panies drill down into their cus- tomer satisfaction, they are dis- covering that they lack sound Ra t e : operational measures to gauge customer satisfaction. Many com- panies use customer satisfaction Perfecting the surveys – often done annually or, at best, quarterly. However, they lack a true connection to hard, Perfect Order quantifiable, operational measures that more accurately reflect cus- By Kate Vitasek and Karl Manrodt tomer satisfaction. Worse, many companies have fallen into the fill rate trap and may find themselves In t r o d u c t i o n and suggest improvements to an erring in linking operational mea- already powerful metric. A look to Your company is achieving a sures to customer satisfaction. the past – and the emphasis 99% fill rate from its distribution Below are just a few of the real placed on fill rate – will help set ce n t e r . Is this good? Leading com- examples of how some compa- the foundation for the genesis of panies like Intuit are starting to nies have looked at their perfor- the perfect order. ask themselves this question and mance only to discover a bleaker are learning the answer more What Is a Perfect Order? reality than thought. often than not is “no.“ Distribution centers have worked hard to get A perfect order has typically On Time to in Stock their fill rates up - often into the been defined as on time, com- Company A receives an order on high 90th percentile – only to find plete, damage free, and having Mo n d a y . They do not have the that customers are still not happy. the correct invoice. While there ordered product in stock. They How can this be? are certainly variations on this do n ‘t drop the order to their distri- The answer is simple: Just theme, one of the benefits of this bution center unless they have because a distribution center definition is its simplicity and the product in stock. Company A gets shipped product on time does not intuitive approach of measuring product in stock on Thursday and mean that it got to the customer what is important to the customer. they drop the order to be filled on on time to their expectations. Nor The perfect order is calculated Fri d a y . Company A has a does it necessarily mean the 100% fill rate because they customer got the product they measure fill rate by when the ordered, in the quantity they order drops to their distribu- ordered. In addition, it does not tion center – not by when they ta k e into consideration the softer got the order. However, the aspects of customer satisfaction customer had to wait five such as damage free or being cor- additional days due to stock- rectly invoiced. As companies dig by multiplying the metrics. For ing issues. It is hard to believe, deeper in their efforts to increase example, if a firm were experienc- but we have seen more than one customer satisfaction, more are ing 95% on time delivery, fill rate, company define their fill rate met- learning that pleasing the correct invoice and damage free ric by whether or not they have customer requires much more shipments, the resulting perfect product in stock to ship. How can than simply having high fill rates. order index would be 81.4% (95% a company not achieve 99% plus What really matters in today‘s x 95% x 95% x 95%). Had each of fill rates when they only measure customer driven economy is, “Did the measures been 90%, the per- when they know they have prod- the customer get what they want, fect order index would drop signif- uct in stock? We found that mea- when they wanted it, how they icantly – to 65.6%. suring fill rate by in stock is espe- wanted it?“ In essence, fill rate is Have You Fallen Into the cially true when companies just one part of the overall cus- Fill Rate Trap? involve outsource providers to do tomer satisfaction equation. their distribution or fulfillment. Companies now have a new, Successful businesses, by defin- superior option, adopting a, ition, continually strive to meet the On Time to Commit vs. “P erfect Order“ philosophy. This needs of customers. This fact will Request article seeks to describe the per- not change and has led many Company B gets an order for a fect order, define its components, companies to try to increase cus- product on Monday. Their normal 17 when a company loads a truck Measuring Fill Rate vs. the but suffers driver issues. We Perfect Order have found many such instances Fill rate has typically been where companies show that they defined as a percentage of orders have shipped the product, yet the or lines filled relative to the total product has not left the dock. ordered. While this reflects a distri- On Time Shipment vs. bution center‘s effectiveness, it Delivered? does not capture the complete perspective of customer satisfac- Company D was reporting great tion with the order. The Per f e c t fill rates of their distribution center Order Index strives to close this to their major retail customers. gap. A perfect order expands the Ho w e v e r , customers were con- view of the order to include such stantly complaining to upper man- things as on time delivery, com- agement about the bad service plete orders, arriving damage free, they were getting. The and having the correct invoice Distribution Center kept saying, “It associated with the shipment. cycle time is three days from order ca n ‘t be – we have a 98.5% fill rate As a metric, the Perfect Order to shipment and the customer has of product to the retail cus- Index boasts several benefits: Fir s t as k ed for the standard delivery of to m e r s “. The problem? Even and foremost, it strives to capture Wed n e s d a y . However, Company B though the product left the distrib- the feelings of the customer – is experiencing high end-of -q u a r t e r ution center on time, it often did from their perspective. Misjudging orders and does not have capacity not get to the customer on their even one aspect of the customer to meet their usual three day service expected delivery date to meet experience can cause significant level so they quote the customer a their delivery window. When this losses. Second, it is easy to under- five day order cycle time with happened they had to reschedule stand; executives can see if the expected shipment on Fri d a y . Thus, their delivery appointment, pushing order was perfect or not. Third, it when they ship the product, they out product delivery one to three is based on metrics that most report a 100% fill rate because the days. Company D later began mea- companies should already be shipment took place when the com- suring on time by expected deliv- me a s u r i n g . pany said it would but not when the ery date and customer satisfaction The Supply Chain Council customer wanted or needed it. went up significantly. defines perfect order fulfillment as: “The performance of the sup- On Time “Shipped“ vs. “Left On Time ply chain in delivering: the correct the Dock“ (with expedited costs) product, to the correct place, at Company C is an outsourced Company E has fill rates up from the correct time, in the correct manufacturer that runs 24 hours a the low 70th percentile. condition and packaging, in the da y . They use a variety of LTL and Warehouse personnel were correct quantity, with the correct TL carriers to ship product to major charged with a “99% fill rate goal.“ documentation, to the correct cus- regional distribution centers nation- Bonuses would be given for the to m e r .“ While there are certainly wide. Cutoff for trucks leaving is achievement of this miraculous variations on this theme, the cen- usually between 6pm and 9pm. feat. The problem? Expedited ship- tral tenet is that satisfaction of the Production is behind and does not ments went up – costing the com- customer comes before all else. ma k e the cutoff for the truck to pany over $1 million. While expansive, the Supply Chain leave. However, they continue their The above are only a few exam- Council‘s definition does contain efforts to make product for ship- ples of how companies can easily some overlapping metrics. For ment and it gets down to the ship- fall into the fill rate trap. That is, example, if a product was shipped ping department. Shipping fills the thinking they are performing well to the wrong customer, it is con- manifests and the product goes on when in fact they are failing to ceivable (and probable) that it will a truck or on the dock only to sit meet customer expectations. We not be in the correct place or at until the next day because the propose companies expand their the correct time, or with the cor- truck already left the dock. The th i n k i n g , focusing more on cus- rect documentation. flaw? Company C‘s computer sys- tomer and process when selecting Our experience shows that com- tem shows the product as their measurements. The Per f e c t panies that have successfully “shipped“ even though the product Order Index philosophy represents adopted the Perfect Order philoso- never left the dock and they give the ideal means to achieve this phy have chosen to customize themselves a 100% fill rate. en d . their perfect order index to align Li k ewise, this same thing happens with their thinking of how they can DB M J 18 DB M J

best maximize customer satisfac- cause of the damage is imperative the correct price. If substitutions tion. We suggest that a company to making actionable improve- were made and agreed to by the not necessarily adopt all elements ments. cu s t o m e r , the invoice should show of the perfect order, but rather the substituted products, not the only those most germane to their Delivered Complete originally requested items. If an business. While some firms have Orders should be shipped com- invoice is correct and accurate in reported having over fifty compo- plete. This represents 100% fill all details, it can be easily nents in their perfect order, we rate for all products and all lines; processed and paid. recommend keeping the compo- no items shall be left behind. The ambiguity in defining an nents relatively simple. While a complete order may at “accurate invoice“ arises in defin- first glance appear to be straight- ing “shipment.“ If a product has to A Closer Look at Typ i c a l forward, substitutions should be be back-ordered, does the invoice Components of the Per f e c t addressed. reflect this? It is our contention Or d e r For instance, a customer may that the invoice should reflect the At first glance, using the Per f e c t order an item, only to find that it is actual shipment. That is, an accu- Order would seem straight for- out of stock. Instead of back rate invoice should not bill the cus- ward. And, for the most part, it is. ordering the item, they request a tomer for the back ordered units Yet, before implementing this met- substitute. The order could be on that invoice. ric, it would be wise to fully define defined as being complete, since each of the components to avoid the shipment includes all of the On Time Delivery to confusion. As “on time delivery“ products that the customer Requested Date Without contains the greatest potential for ordered. Yet, it doesn‘t capture the Ex p e d i t e s improvement, we will define it original intent and desire of the One of the hardest measures on last. cu s t o m e r . Nor does it capture the which to gain agreement is “on- lost sale for the original item. This time delivery.“ The reason is clear: Delivered Damage Fre e tends to skew the demand pattern there are too many variations on Defects or damage can happen for the substituted item, potential- how we define “on time.“ We rec- in various areas including manu- ly leading to more inventory being ommend that companies track fa c t u r i n g , the distribution center, held for this product, further com- their on time delivery to the date or the carrier. Often each area pounding the problem. For these requested by the customer with- focuses only on quality within their reasons, we believe that ship- out expedited processes (pick and walls and does not extend its view ments containing substituted pack or shipment). of defective or damaged product products should not be consid- This measures that product to include what happens once it ered “complete.“ shipped when the customer asked has left the dock. The customer Un f o r t u n a t e l y , not all situations – not when a company can ship. does not care if the product was are as clear cut as the one above. For companies that do not have damaged by the distribution cen- All of us have had customers who sophisticated systems or links into ter or the carrier – it is damaged will call to inquire what is on hand, the carriers, it may prove quite dif- and it causes them an inconve- and then order accordingly. ficult for them to measure on time nience or worse, an out-of -s t o c k Inquiries about what is in stock are de l i v e r y . For many customers, the situation. different than placing an order. If gap between on time shipment By extending the measurements customers can access inventory and delivery is very important. This of damage free product through levels over the Internet, it may holds true especially in the retail the carrier, it helps the company become impossible to efficiently sector where retailers schedule see damage from their customer‘s ascertain their initial intent and delivery appointments to ease vantage point. Tracking damage desire. Managers will have to their backend operations. Carriers throughout the process helps determine how to define an – especially the larger and more companies work with the different inquiry about inventory levels, and sophisticated ones – are offering areas where quality can be affect- whether these inquires lead to a delivery time information making ed – be it in manufacturing, distrib- substitution. this more feasible. And parcel ution or the carrier. It also helps a shipment carriers such as Fed E x company coordinate its various Accurate Invoice and UPS have been offering proof limbs to achieve a higher overall Defining this metric is fairly of on time delivery for years. quality level from a broad, cus- straightforward. Either the invoice As with complete orders, a com- tomer point of view. The various accurately reflects the shipment or pany faces the dilemma of its defi- departments can analyze root it does not. The invoice should nition differing from the cus- causes of error and work internally reflect the items ordered, the cor- tomer‘s understanding. For to remedy them, increasing overall rect quantity, correct terms, and instance, what does “on time“ qu a l i t y . Tracking down the root really mean? Each customer may 19 have its own way it measures on time delivery. To start, we recommend five steps: For one customer being on time for a 9 am delivery • Find out what metrics are currently being employed appointment may mean plus or minus fifteen min- • Define the metrics and communicate this definition utes. For another customer it could mean plus or across the organization minus two hours. For a third it could mean you can • Determine how often the metric will be calculated; deliver early and up to 1 hour late. As a general that is, by week, month, customer, etc. rule, the greater the flexibility as defined by the • Put someone in charge – and responsible – for the cu s t o m e r , the more flexibility the supplier has to me a s u r e meet customer expectations. • Set a realistic goal Second, the metric should take into account the original delivery date requested by the customer. Summary This takes place prior to any discussion or negotia- The satisfaction of the customer is the paramount tion with the customer service representatives. In goal of any successful business. Traditional metrics some instances, this date may be different than the for gauging this satisfaction often prove inadequate agreed delivery date, but hopefully not the actual and misleading. Many operational metrics such as delivery date. traditional fill rate simply are not aimed at linking As with complete orders, some customers may customer requirements to quantifiable operational “s h o p “ to find various possibilities with respect to measures. Companies have fallen into the fill rate trap a delivery date. Unfortunately, these are sometimes and often believe they are achieving high service levels our largest customers seeking preferential when, in fact, they have missed the bigger picture or treatment. Again, the requested date set by the are sub-optimizing performance through actions like customer should be the benchmark used by the expedites. firm. Some might argue that customers will be As companies dig deeper in their efforts to unreasonable, and continually request an unrealistic increase customer satisfaction, more are learning date. We disagree. Customers often know a firm‘s that customer satisfaction has far more nuance than a process capability and the process capability of simple fill rate number might have one believes. Wh a t competitors in terms of expected order cycle time. really matters in today‘s customer driven economy is Their insistence on what we would view as an “Did the customer get what they wanted, when they unreasonable request may not be viewed that wanted it, how they wanted it“ and not how well a way by a competitor. This should lead us to further di s t r i b u ti on center ships. analysis of our fulfillment process, and not a defining down of the metric. Fin a l l y , this metric must take into account whether or not the order was expedited. Failure to do so could lead to an exponential rise in expedited ship- ping and have a negative impact on profitability. The topic of expedited shipments leads to a dis- cussion of how firms should handle shipments that are expedited at the request of the customer. That is, the customer knows the lead time may be four days, but is requesting a two day delivery. Should the supplier (and the metrics) be negatively impact- ed by meeting the needs of the customer? Clearly, this type of situation is an anomaly, and should be treated as such. If the customer is willing to pay for the expedited shipment, then the shipment should be considered on time if indeed it is delivered in two days, since the need for an expedited shipment originated with the customer, and not with the su p p l i e r . Perfecting Your Company‘s Per f e c t Order There is good news and bad news associated with perfecting your perfect order. The good news is that many of the components are already being col- lected. The bad news is that the components may not have been well defined across the company. Circle Number 72 DB M J 20 DB M J Special Achievement Profile: The Learning Path to RFID at Pharmavite Each issue of Distribution Business Management Journal spotlights an individual who has received special recognition and status through his or her ongoing educational efforts and professional achieve- ments. In this issue we recognize Ray Allen, Methods & Technology Analyst with Pharmavite. An article based on his paper prepared for the DBM Specialist Diploma is presented here. Ray Allen – Pharmavite LLC

A background in corporate management for distribution and various warehouses or stores. If manufacturing companies with experience in systems, information an item goes to their ware- systems, and industrial engineering, Ray Allen has provided the house, it may be shipped on pal- ability to lead the development of a state-of-the-art Radio lets; if it goes to a store it may Frequency and bar coding systems throughout all operations of a be shipped in a bundle. large manufacturing, warehousing and distribution company. • Ship method - Customers fre- quently specify how to ship the Ab s t r a c t process. In either case, it is the or d e r . These specifications Convert the current warehouse pi c k er‘s responsibility to pick the range from common carrier, manual case picking system from or d e r . When orders contain many their truck, or rail. a paper-based to bar coding and items, the likelihood of a picker • Shipping schedule - The cus- radio frequency system to provide error increases. Even with manual tomer may require a delivery more accuracy and expedite the verification as a separate function, date and even a dock time. entire picking, shipping and billing mi s t a k es, leading to poorer cus- • Special instructions - Any cus- process. tomer service, may result. tomer demands that differ from Pharmavite is a manufacturer of Replacing this manual process normal shipping practice. For vitamins. The process includes with a new radio frequency and example, “Don‘t deliver between purchasing the raw material, bar coding system will lead to July 1 and July 9 due to our weighing the ingredients, blending greater efficiency and accuracy. physical inventory,“ or, “Ship this the ingredients, compressing into More than ninety five percent of order to our main warehouse tablets, coating the tablets, filling, orders are received through this time only,“ etc. bo t t l i n g , packaging, storing, pick- Electronic Data Interchange (EDI). Once the order successfully in g , shipping, and billing. Quality Once the order is in the system, it completes these processes, it checking the raw material occurs goes through several steps prior becomes a “good“ order and is often - as it is received and during to any picking. These processes available for picking pr o c e s s i n g . may include: When a customer orders mer- • Credit check - The order is Requirements for chandise from a vendor, he or she ch e c k ed against the customers Improving the Picking Pro c e s s expects it to be shipped correctly credit file. Entire processes of and quickly. This is the most handling orders don‘t pass this After reviewing the current important customer service func- pr o c e s s . method of picking, I concluded tion of a company. The traditional • Terms check - Checks the order that we could improve the manual system involves receiving to see if the customer has spe- process using new methods and the order and, either picking the cial terms, promotions, con- te c h n o l o g y . Before I could start, I order from the customer‘s pur- tracts, etc. This may necessitate need additional information and a chase order, or keying in the order a change in pricing or handling. process that would assure a suc- so it can be sorted to warehouse • Ship to location - Some larger cessful implementation should we location to speed up the picking customers require shipments to decide to continue with the pro- 21 ject. The first hurdle would be to The physical properties of our pi c k ed by pallets only and some elucidate both the benefits and inventory are ideal for picking. All would be picked by both pallets expense to management. Those vitamins come in easy-t o- h a n d l e and cases. responsible for the new program, boxes. But what are the properties Our packaging department from the employees who receive of our inventory? First I looked at already applies bar code labels the order to the ones who ship it, our box size/weight: onto cases that contain both the would need to agree upon the Smallest box 3.75“ X 6.2“ X 9.1“ item number and the lot number. aforementioned pros and cons of Largest box 12.3“ X 14.5“ X 16.0“ This eliminates pickers applying implementation. Prior to present- Lightest box 2.4 pounds labels to cases, as in some picking ing the process, I needed to devel- Heaviest box 15.8 pounds op e r a t i o n s . op an overview of how a system using radio frequency and bar cod- Next I looked at how many cases Bar Code Printers, Laser ing may work in our environment. we order. This would prove impor- Printers and Bar Code This entailed laying out each step tant as I needed to know if orders So f t w a r e in as much detail as I could so would make up a pallet, multiple We would require bar code print- people could understand how the pallets, or just partial pallets. ers, laser printers, and some soft- process would work and realize Average order size 24,000 cases ware to implement the new sys- the potential benefits. 80% of order size 23,500 cases tem. We would also need bar Before I could do this, I realized I Largest order size 40,000 cases code printers to print labels. We needed more information to com- Smallest order size 200 cases were not yet sure what the printer requirements would be, though pare our proposed system to other From this I determined that most systems. How was our system not we did know that we would need orders would be shipped by pallet. laser printers throughout the ware- the same, why would we do some UPS ships the smallest orders in things differently, how could we house. Until we completed the bundles, not pallets. I was also design, however; we could not get the most from our new aware that some orders would be resources? specify the type or location. We

The Distribution Business Management Specialist Diploma

The importance of logistics management has increased as its significance to the global economy and individual corporate performance has become more widely recognized by the business community. Logistics‘ role in value chain management has further enhanced its stature in the corporate world. The result of logistics‘ rise in prominence is an increased demand for highly educated and trained logisticians. Because there are still relatively few university programs in logistics management, most logistics managers receive their educa- tion and training “on the job“ and/or through the professional development activities and training programs provided by corporations and professional organizations. DBM Association, along with many of the world‘s leading universities has taken the next step in the evolution of logistics management with the SDBM, Specialist Diploma in Distribution Business Management. This specialist diploma involves attending four annual conferences, during which, candidates are exposed to world-class networking and learn creative answers to their problems through educational seminars. In addition, they can see real world solutions in the Supply Chain Execution Lab, a world-renowned hands-on learning lab. Upon completing four conferences, each candidate writes a descriptive paper detailing how the knowledge gained from the program was applied to improving operations at their own company. This paper is supervised by one of DBM‘s educational board members. After the paper has been refereed and approved by academia the candidate receives their Specialist Diploma in Distribution Business Management. For more information about the program contact the DBM Association at 717-295-0033 or www.Dcenter.com DB M J 22 also believed that we might need delivers the merchandise to the and billing personnel. Lead ware- new bar coding software. Though picking area. This would require house people would be invited to unsure of specific necessities, the a new radio frequency system provide detail information as knowledge that we needed cer- that would direct the fork-lift dri- required. The project would be tain items helped focus our efforts ve r . The picker would then only supported and reviewed by man- in designing a process that took have the oldest lot in his picking agement at pre-de t e r m i n e d advantage of this type of equip- ar e a . stages. me n t . – Use real time online radio fre- quency terminals to pick mer- The Design Pro g r a m m i n g chandise. Copies of the overview were pre- The programming staff was well – Capture the picker , date and sented to the team. As expected, aware of the requirement and had time of the order picking onto a there was excitement, concerns the manpower available to pro- database file for analysis. and questions. ceed. The technical staff was – Give supervisors real-time infor- While the focus of the first meet- already familiar with the radio fre- mation as to picking status. He ing was to introduce and generate quency units, bar code printers, or she would be able to obtain thought and interest in the new the network, and scanners. What information regarding the status process, the goal of the next meet- they needed to do then was to of an order by the number of ing was to review the overview, estimate a time-line and cost. units to pick, the number of answer questions, and get the units already picked, who the design started. Over the next few Design a System Overview pi c k er is and what location is weeks the team accepted most of I now had enough information currently picking. the overview and added several to design an overview of a new – A supervisor would assign a bar other items that enhanced and process to present to a team. The coded picking document with expanded the system. basic design would be used by order number to a picker . The that group to construct the details pi c k er would scan the order Final Design of the system. Without a basic number on document, giving Sp e c i f i c a t i o n s design consisting of new meth- him all the information he need- Final design specifications were ods and technology, the team may ed, including the item number designed and reviewed with the have sought to just improve on and lot number to be picked, the team. By this time, everyone was the existing system using new location, and quantity. He would very familiar with the new equipment. This may have helped also be given the pallet number process. We knew there would be but I had a much larger goal in he is currently working on along changes as programming got mind. The overview would change with the pallet serial number. un d e r w a y , but everyone was com- the picking method as well as pro- – The picker would indicate a full fortable enough to proceed. vide valuable information to man- pallet by pushing a function key The design was then presented agement and supervisors. Some on his RF terminal, updating the to middle management and opera- new elements of the overview pallet he was working on. tions personnel. There were no we r e : Because of the various size substantial changes to the design – A radio frequency network that boxes and the fact that not all but mostly easily answered ques- connects to the company‘s pi c k ers palletize the same way, tions. We believed we now had a inventory software on the main this measure became necessary. winning design so we took the computer would be installed in The picker would be able to use next step: preparing a presenta- the warehouse. his RF terminal to make inventory tion and cost to upper manage- – Radio frequency computer ter- inquiries. This would prove neces- ment for financial approval. minals with real-time scanners sary when going to a location that A process flow chart was pre- would be connected to the com- di d n ’t have enough merchandise pared for management review. We pa n y ‘s computer. This would to fill his order or to inquire as to believed they would not be inter- allow picking and inquires by the the availability of this item number ested in the details of the system pi c ke r . The terminal would have before calling a forklift operator to but rather an overview of how the a sign-on screen for security and replenish the picking location. new radio frequency system allow the picker to open the would work. picking application. This would The Tea m also provide the opportunity to It was now time to put together Radio Fre q u e n c y Eq u i p m e n t capture information in real-time. the “Picking Team.“ The team con- – Move the responsibility for pick- sisted of the warehouse manager, Using the final design specifica- ing the oldest lot first from the information systems, warehouse tions, we were able to tell what pi c k er to the fork- lift driver who supervisors, and order processing radio frequency equipment we

23 needed. These specifications were connects to the IBM AS/400. We labels; the print on the label need- summarized in a hardware require- first looked at the current net- ed to survive harsh environment of ment list. works available to see if one of transportation and storage and Ge n e r a l l y , we needed radio fre- these would work. We found that glue that would ensure it would quency units with the following we had two possible kinds of net- stay with the carton. After evaluat- ch a r a c t e r i s t i c s : works from which to choose. One ing several manufacturers and • Portable, hand-ca r r y , or easy- was a token ring network used models, we decided on the Zebra mount on a picking vehicle. mostly for P/Cs and the other was line because they offered a large • Battery needed to last at least an ether-net system. After evaluat- variety that used the ZPL program- one shift before recharging. ing the systems and the compati- ming language and were all com- • Replaceable batteries. If one bility with the radio frequency sys- patible. This meant that we could went dead it could be removed tems, we decided to try the ether- program a bar code label and print and replaced with a fully charged net system. This would provide us it on several models of Zebra print- on e . ad d r e s s- a b i l i t y , speed, and a link to ers. We now could purchase the • Charger/conditioner for batteries. the AS/400. hi g h - speed printers for areas that We knew long term charging After many discussions with the had high volume and slower, less would eventually cause the bat- radio frequency vendor and the expensive printers where the vol- tery not to charge even though it et h e r -net network people, we ume didn‘t warrant a more expen- was still good. decided on the following: sive model. We would use thermal • Light weight for carrying. • The radio frequency equipment transfer for high quality and a print- would be 5250 terminals. The an d - t a k e feature for ease of remov- • Impact resistant in case AS/400 would process the data ing the label from the printer. dr o p p e d . as if it came from any other • Must have a scanner port. computer terminal connected to Laser Pri n t e r s • Some needed a serial port to be the AS/400. AS/400 program- We would need some laser print- used where bar code labels mers could develop programs ers that could print both text and would be printed. and screens as if this were a bar codes on standard size paper. • Needed an address so data standard terminal, except for the These would be used to print the could be captured for equipment screen size. bar coded picking schedule used ut i l i z a t i o n . • The network and radio frequency by a supervisor for scheduling • Programmable operating terminals would run on 902 to orders and pickers. We already op t i o n s . 928 MHz frequency. This would had several HP laser printers in the • Ability to communicate with our allow sufficient speed and would company and the P/C support peo- IBM AS/400 computer. require a minimum number of ple were familiar with them so this The bar code scanners would: antennas to be installed. was a natural choice. The printer • Match the scanner port specifi- • The network would use frequen- needed to be connected to the cations on the radio frequency cy hopping for security. AS/400 so they could print from un i t . • The network controllers would our new system. We found a pro- tocol converter that would convert • Be able to scan symbology 128, be installed in the IT computer the AS/400 twinax signal to parallel the standard developed for all room next to the AS/400 to allow for the printer. We tried this device internal processing. a direct connection. • The antennas would be at the and it worked fine, but found our- • Be configurable to scan other remote sites and attached to the selves with the problem of how to bar code types as required. radio frequency controller via print bar codes. We found another • Be powered from the radio fre- et h e r- n e t . device that would convert special quency hand held terminal, sav- • The controllers would look like data strings to bar code and fit ing the maintenance of addition- standard IBM 5394 devices to between the protocol converter al battery. the AS/400. No special connec- and the printer. After writing some • Rugged to survive dropping. tions or programs would be code to test this device, we found • Coil cord for safety. required. The IT staff was that it worked. The final task was • Light weight. already familiar with the IBM to put the special string of code in • Easy to use. 5394 units. AS/400 programs that needed to • Range would auto-se n s e . print bar codes. We wrote a few Bar Code Pri n t e r s programs to verify that everything Radio Frequency Bar code printers come in many wo r k ed, and it did. We now had a Ne t w o r k types, prices, and with varying proven way to print on an HP laser The radio frequency units would capabilities. We needed one that printer from the AS/400 with text need to work on a network that could print clean, high-qu a l i t y and bar codes. DB M J 24 DB M J

Bar Code Software for graphics portion of the program we could determine. We also the AS/400 with our item number as the key . needed the support of the team Writing bar code programs with- Now when we printed one of managers and in some cases their out some kind of utility is very dif- these item numbers it would print bosses. We got great support ficult. We found several that the Japanese graphics. from everyone at all levels in the co m p a n y . With all of the elements wo r k ed with P/Cs, but only one Pro g r a m m i n g would work with the AS/400. Any in place, we costed out the sys- bar codes we produced would Our warehouse management tem with the help finance. We need to come from our new system was on the IBM AS/400 so now knew as much as we could AS/400 system and existing any programming for a new sys- about the system, equipment, pro- AS/400 files. We purchased the TL tem would need be stored there gramming and cost. as well. Some programmers use Ashford package and tried it. It Management Pre s e n t a t i o n was one of the best software RPG and some program in packages we had tried. The inter- SY G N O N . Since all the programs, A two-hour Pow e r P oint and over- face between this program and with the exception of some inter- head presentation was made to our existing programs occurred face programs to the billing sys- management. Each team member easier than expected. The pro- tem, would be new, we decided presented the portion that would gram would support an unlimited they should be written in the be their responsibility. A manage- number of bar code labels and newer SYGNON language. This ment overview followed by the support all current bar code sym- language is quicker to write and project detail was presented to bologies. Bar code labels could be much faster to de-bug and main- each member of management. run in either batch or online and tain. This would also keep the pro- Many questions were asked, but we could design labels to print gramming cost down. none went unanswered. Management basically approved just from the software without an Timeline and Cost AS/400 program. This proved a the project on the spot. The paper handy feature for special and one A timeline was developed for the work for the expenses were pre- time labels. One important feature entire project by the team. Special prepared and given to them. All is its ability to process graphics. attention was placed on program- we needed was a signature. They We sell to Japan and the label for mi n g , one of the largest elements. had a separate meeting to discuss them must be printed in People outside the team were the project and in a few days we Japanese. We scanned in the invited to these sessions to ensure had the final approval. We were images and stored them in the that the time was as accurate as now ready to execute the project.

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25 Circle Number 73

26 DB M 2 0 0 4 Official Directory and Ref e r e n c e Gu i d e 25 Table of Contents/ General Information

Show Floor Plan and Supply Chain Execution Lab 29 Operational Description of the Applied Technology Lab 30 Conference Schedules 33 Conference Overview/Abstract for Sessions 36 Alphabetical Listing of Exhibitors 42

General Information Show Hours Wed n e s d a y , May 19, 2004 – 9:00 a.m. - 5:00 p.m. Th u r s d a y , May 20, 2004 – 9:00 a.m. - 3:00 p.m.

Conference Hours Tue s d a y , May 18, 2004 – 9:00 a.m. - 5:00 p.m. Wed n e s d a y , May 19, 2004 – 8:00 a.m. - 5:00 p.m. Th u r s d a y , May 20, 2004 – 8:30 a.m. - 3:15 p.m.

Registration and Show Information Terrace A East on Level Two of the Navy Pier

Conference Meeting Roo m s Ex ecutive Summit Keynote sessions in rooms 309/311, (Level Three) Software Solutions & RFID Track in rooms 309/311 (Level Three) Materials Handling & Operations Track in room 313 (Level Three) Supply Chain Strategies Track in room 314 (Level Three) Distribution, Logistics and Transportation Track in room 315 (Level Three) Applied Technology Course Track in the Supply Chain Ex ecution Lab in Hall A by Terrace A, East entrance

28 Supply Chain Execution Floor Plan

29 Operational Description of the Applied Technology Lab

The diagram on the preceding pages shows the Techniques for pallet movement, case movement and 2004 Applied Technology Lab. The Lab serves as an digital shipping documentation will be displayed. active educational environment where conference Keith Manufacturing will showcase their unique attendees can see a variety of technologies and tech- “walking floor“ device that allows a trailer load of pal- niques demonstrated in a simulated distribution cen- lets to be loaded or unloaded automatically without ter setting. Educational Stations, identified as stations the need for fork truck access into the trailers. Ke i t h #1-6, are located around the exterior of the lab and will show how loads are positioned and moved quick- serve as classrooms for registered attendees. At each ly and easily in the dock area. station, a selected number of suppliers will provide a Palletized loads are handled, obviously, on pallets. presentation of their technologies or capabilities, then But the pallet itself is usually treated as an expense direct the attendees to view the technology in the La b and seldom managed in a cost effective manner. IFCO to reinforce the educational experience. Systems presentation will focus on pallet manage- For a closer look at the technologies displayed, ment trends and challenges, challenges that are exac- attendees may be escorted within the Lab by suppli- erbated by continuing globalization and environmental ers when the educational sessions are not in concerns. The use of third-party pallet management progress. Alternately, the same technology (and oth- programs will be explored. ers) may be viewed at the various supplier booths The need to properly identify inbound product for located around the La b . use with automated internal systems continues to The following is an overview of the information that expand. On the outbound side, customer specific will be provided and the technologies that will be dis- labeling requirements continue to evolve. Often, pre- played at the Educational Stations. printing labels to apply during the picking or receiving process just isn‘t effective or efficient. PCM Image-Te k Educational Station #1 will demonstrate the speed and flexibility of printing The first station will discuss the importance of three and applying labels onto cartons as they move either major components of an effective distribution opera- into the facility or outbound to the dock or waiting tion - planning, systems, and labor management. t r a i l e r. There are many approaches and technologies avail- Lexmark International, Inc. will discuss the important able to apply to distribution center design, but the ke y trend to RFID tags, detailing how the tags can be to an effective process is choosing the appropriate used independently or in conjunction with traditional pieces for the type of product and services that the bar codes. Although RFID is receiving a lot of atten- distribution center will be required to provide. tion, there are still many other labeling and paper cre- Siggins Company will provide an overview of the ation concerns in the distribution center. Lexmark will types of issues that need to be taken into account demonstrate new digital documentation such as mani- when designing a facility. Numerous options are avail- festing and bills-o f - l a d i n g. Any company that has been able, but piecing together the appropriate elements - affected by the new “Hours of Service“ regulation will including dock space, material flow, material handling find this very important. equipment, and software/integration technologies - is critical to achieving the anticipated payback of a new Educational Station #3 or revamped facility. Softeon will discuss the value The work horse of nearly every distribution center or and functionality of a WMS and the manner in which warehouse is the fork truck. Although most everyone this technology is utilized. This presentation will high- is familiar with the standard sit down vehicle, numer- light the newer web-based architecture that is begin- ous types of trucks abound, as well as options for ning to emerge. Lean labor management will be the comfort or special handling requirements. Using the topic of discussion by Kronos, Inc. This company will right truck, with the right options, for the right job can show how the use of labor analytics tools can provide play a large role in receiving the productivity that was answers to operational performance, leading to oppor- anticipated. Jungheinrich and Prime Mover will have a tunities for continuous improvement and a strong ROI variety of vehicles on display, both in the lab and at for your company. their booths. In the lab, Jungheinrich will showcase some of its all-AC class 1 and class 2 trucks: a sit Educational Station #2 down counterbalance truck, an indoor/outdoor reach In this work station attendees will be viewing receiv- truck, and a Very Narrow Aisle (VNA) turret that will ing and shipping dock operations. Always an active traverse a 6‘ wide aisle. Prime Mover will demonstrate area of any distribution center, keeping the material both a man-up order picker vehicle and the versatile flow moving is critical to an efficient operation. powered walkie truck. All vehicles are equipped with DB M J 30 Refer to the diagram of the Applied Technology Lab on the preceding page

LXE RF terminals and scanners to interface with Vocollect will show how the same voice technology WMS tasking. can be used to direct replenishment from multiple Industrial batteries are a critical component to the totes back into the pick faces. The variety of ways in performance and productivity of an electric forklift which this “put“ approach can be used within a distri- truck. There are many choices of battery types, from bution center will be explored. n o-maintenance sealed batteries, to high capacity Overhead conveyance systems have a number of tubular flooded batteries. Each has their own benefits applications and are used extensively in many manu- and disadvantages which will be explained by repre- facturing environments, especially assembly applica- sentatives from EnerSys. Proper battery maintenance tions or where product sequencing is required. In this will extend the life of batteries providing more pro- station, IntelliTrak will demonstrate one application of ductive time with each vehicle. EnerSys will discuss how such a system might be used within a distribu- battery basics and identify ways in which to reduce tion center - delivering replenishment totes to an area the costs of these critical components. When batter- of a facility that may be hard to reach with traditional ies must be handled, safe and efficient processes conveyance systems. A variety of applications will be must be provided to protect both the worker and the discussed during the presentation to raise attendee environment. The pros and cons of fast charging will awareness of these clean and quiet, highly config- also be discussed. Battery Handling Systems will urable systems. demonstrate a system that provides both a fast and a In the carton flow pick zone, LXE will demonstrate safe process for exchanging and charging truck bat- how one scanner can be used to read either the tra- teries. Fork trucks will periodically visit this station ditional bar code or the embedded RFID information throughout the day. on the tote label. LXE will also discuss how antennas A major component to any palletized operation is mounted on vehicles can be used to automatically the racking. Although there are a variety of rack scan RFID carton labels during the picking process as options, the lab will showcase three types of rack lay- well as in a variety of other applications. Within the outs, including the two most common designs - sin- carton flow module, discrete order picking via RF gle deep selective rack and double deep racking. A pick technology will also be demonstrated. third type displayed will be decked racking with Unex Manufacturing, Inc. will describe the carton smaller rack openings, ideal for small case picking flow arrangement presented in this educational with man-up order picking vehicles. Atlas Material station. Carton flow (or gravity flow) is traditionally Handling has provided all the racking in the lab, and used for picking either full cartons or from open will discuss rack options available. In addition, Atlas ( b r o ken) cases and both of these approaches will will demonstrate a new technique to rack repair, one be demonstrated. The presentation will touch on that can be accomplished with the rack fully loaded. the appropriate application of this frequently used Educational Station #4 At this station, several picking techniques and technologies will be demonstrated - zone picking, multi-order (cluster) picking, and discrete order picking techniques will be accompanied by voice and RF picking tech- nologies. Once again, RFID and traditional bar code labeling will be included in the process. In addition, picking from carton flow racks and the use of both gravity and overhead conveying systems will be shown. Vocollect will begin the activity by demon- strating voice picking technology in both “pick“ and “put“ modes. First, an operator on a Prime Mover man-up order picker vehi- cle will be directed through a multi-o r d e r picking process, placing product into totes carried on the platform of the truck. When Circle Number the picking is completed and the totes have 74 been passed to the next picking zone, 31 Operational Description of Refer to the diagram of the Applied Technology Lab on the Applied Technology Lab the preceding page

t e c hnique. In addition, Unex will discuss the impor- Once an order has been picked completely, the shipping tance and use of gravity conveyor, which can be carton will discharged to powered accumulation convey- observed in several educational stations within the lab. or . Downstream, Bar Code Equipment Service Inc. will demonstrate two different high speed scanners - an Education Station #5 om n i - directional scanner for the bar code and a second This station will feature part-t o- p i c k er technology, a to read the RFID tag. Information about these scanners demonstration of fixed scanners reading traditional bar and similar products now available will be discussed dur- code labels and RFID, and the introduction of new parcel ing the presentation. manifesting technology and delivery vans. Also included The end of the process in this station simulates an will be a demonstration of printing labels with both RFID inline parcel manifesting operation. DHL Express will be inlays and bar codes. introducing some new techniques in parcel manage- Shipping cartons will be introduced into the carousel ment, including how RFID can be integrated into the picking operation with SATO America provided combina- process. In addition, DHL will use the show to introduce tion RFID and bar code labels. SATO will demonstrate a brand new delivery van design, an example of which how these labels are printed, discuss how the inlays are will be on display in the lab. embedded in the label, and describe how RFID data can be used for capturing and forwarding ASN information. Educational Station #6 The shipping cartons will be used by the Rem s t a r Within any distribution center or warehouse there are a International carousel personnel to pick product from the number of components that are included at the outset of two types of carousels on display. Remstar will describe the design process but then often ignored after that. the functions of both the vertical and horizontal Ho w e v e r , it is important to give due consideration to carousels, identify the proper application of both, and these elements as they impact worker safety, comfort, discuss the man-machine interface of these rotating and visibility to operations. Mezzanines, offices, and devices. safety equipment are all discussed at this station. In addition, two types of manual-assist palletizers will be de m o n s t r a t e d . Atlas Iron Works will present a discussion on mezza- nines. Often integrated with picking and sortation designs, mezzanines also play an important role in utiliz- ing valuable air space for offices, production areas, or storage that is often wasted in many facilities. Atlas will discuss the important characteristics to consider when utilizing mezzanines within your facility. The Starrco Company will present a variety of options for both pre- engineered modular office systems and exterior portable buildings that offer functionality, value and a esthetics for applications as diverse as shipping offices to clean room applications. Starrco‘s presentation will also identify the flexibility of using modular and portable buildings to meet constantly changing needs. The Rubbermaid Commercial Products Division will dis- cuss the wide variety of safety products available today. A sampling of these products will be visible throughout the lab. In addition to many products typically seen in a distribution environment, Rubbermaid will showcase some unique mobile, collapsible safety barriers and motion triggered, audio warning devices. Safely lifting and manipulating objects of a variety of sizes and weights is a constant safety concern. Pos i t e c h Corporation will demonstrate two different types of vacu- um-assisted manual palletizing systems. Pos i t e c h ‘s pre- sentation will highlight how these ergonomically designed systems can reduce handling related injuries, enhance the process flow, and improve product quality.

Circle Number 75 32 Conference Overview Day One – Tue s d a y , May 18, 2004

Tra c k Materials Handling Software Solutions Distribution, Logistics Supply Chain Th e m e & Operations & RFID Tec h n o l o g i e s & Tra n s p o r t a t i o n St r a t e g i e s Tra c k Central Michigan Golden Gate Iowa State University, Ohio State University, Ch a i r s Un i v e r s i t y , Un i v e r s i t y , Dr . Michael Crum Dr . Tom Goldsby & Dr . O. Keith Helferich Dr . Richard Dawe Auburn University, Dr . Brian Gibson 9:00 - 9:15 Welcome & Orientation: Amy Thorn, Executive Director, DBM Association 9:15 - 10:15 Panel - "RFID in the Supply Chain" Moderated by Dr. Richard Dawe, Golden Gate University. With Pan e l i s t s : Gil Bautista, Symbol Technologies, Vince Pontani, Defense Logistics Agency, Pete Kuzma, X-Indent and Daniel DeGross, General Manager, Crate & Barrel 10:30 - 11:15 “Supply Chain Security “RFID Tec h n o l o g i e s : Panel - “Supply Chain “Supply Chain Demand Demands: What Are The Future is Now” Ma n a g e m e n t : Mi s- M a t c h ” They and How to Alan Melling, Where is it Headed”? Kate Vitasek, Manage You r Symbol Tec h n o l o g i e s Dr . Thomas Goldsby, Supply Chain Vision Co m p l i a n c e ” Ohio State University Joel Web b e r , with John Caltagirone, Supply Chain The Revere Group and Advisors, LLC Robert Martichencko, Transfreight Logistics, LLC 11:30 – 12:15 “The Emerging Panel –“Supply Chain “Optimizing Distribution “Lean and Agile Supply Wor k f o r c e ” Information Systems: Strategies to Handle Chain Strategies” Robert Morgan, The Costs Vs. Outsourced Global Dr . Tom Goldsby, Sp h e r i o n The Pay o f f s ” Pro d u c t i o n ” Ohio State University Dr . Brian Gibson, Mi k e Kilgore, Auburn University Chainalytics LLC with Ken Michael, GM and Dr. Steve Rutner, Georgia Southern University 12:30 - 2:00 Lunch and Learn Sessions 2:15 – 3:00 “Improving Storeroom "RFID in Your "Do More with Less - “Applying Pro j e c t and Warehouse War e h o u s e " Align your Wor k f o r c e Management to Efficiency to Improve Kai Figwer, with the Wor k " Logistics: A Case Accuracy and Dollars” LX E Larry Cassella, St u d y ” Rick Titone, Kronos, Inc. Dr . David Menachoff, Why How Consulting University of London 3:15 - 4:00 "Centralizing a “Draining the Pap e r “The Supply Chain Game” “Returns Management: Warehousing Network” Sw a m p ” (part one of a two-part se r i e s ) How to Make Order Ho k ey Min, Tim Rowland, Lexmark Michael Jordan, Out of Chaos” University of Louisville Trade Dynamics A Case Study” with Don Chappell Chris Norek, and Cindy Britt of MEP Chain Connectors Management Services, Inc. 4:15 - 5:00 “Traceability Models “Beyond Fill Rate: “The Supply Chain Game” “Work Force for the Food Supply Perfecting the (part two of a two-part series) Re s u r r e c t i o n : Chain Industry” Perfect Order” Michael Jordan, Un l e a s h i n g – A Case Study Kate Vitasek, Trade Dynamics Pro d u c t i v i t y ” Dr . Keith Helferich, Supply Chain Vision with Don Chappell Patrick Kelley, Tru s e r v e , Central Michigan and Cindy Britt of MEP Ron Hounsell, Un i v e r s i t y Management Services, Inc. Tom Zosel & Associates

33 Conference Overview Day Two & Three

Wed n e s d a y , May 19, 2004 Tra c k Materials Handling Software Solutions Distribution, Logistics Supply Chain Th e m e & Operations & RFID Tec h n o l o g i e s & Tra n s p o r t a t i o n St r a t e g i e s Tra c k Central Michigan Golden Gate Iowa State University, Ohio State University, Ch a i r s Un i v e r s i t y , Un i v e r s i t y , Dr . Michael Crum Dr . Tom Goldsby & Dr . O. Keith Helferich Dr . Richard Dawe Auburn University, Dr . Brian Gibson 8:00 -9:00 EXECUTIVE SUMMIT KEYNOTE PAN E L : “The Impact Of Overseas Production On Distribution & Supply Chain St r a t e g y ” Moderated by Dr. John Langley, Georgia Tec h with Jim Molzon, Solectron, Dave Durtsche, Tranzact Technologies and Vince Pontani, Defense Logistics Agency 9:30 - 10:30 SCE Lab Part 1 – This is a six part, two-day series. 11:00 - 12:00 SCE Lab Part 2 – This is a six part, two-day series. 12:00 - 1:00 Lunch Break 2:00 - 3:00 SCE Lab Part 3 – This is a six part, two-day series. 3:15 - 4:00 “Using Theory of Case Study – “E-Business: Panel: “Hours of Service” “Impact of Supply Chain Constraints in a Lean The Evolution and Dr . Michael Crum, Strategies on the Distribution Environment” Strategy of Supply Chain Iowa State University Income Statement: Dr . Alexis Sommers, Systems Design” with Panelist Eric Ervin, A Case Study” University of New Haven Dr . Richard Dawe, JB Hunt Dr . Brian Gibson, Golden Gate University Auburn University 4:15 - 5:00 “Managing Seasonal "The Effect of Customer's “Lean Six Sigma Demand and Supply in Color Preferences on the Logistics ” your Supply Chain” Operation of Return Goods" Robert Martichencko, Mi k e Kilgore, Dennis Krumwiede, Transfreight Logistics, LLC Chainalytics, LLC Idaho State University

6:30 - 11:00 Circle of Excellence Award Dinner

Th u r s d a y , May 20, 2004

Tra c k Materials Handling Software Solutions Distribution, Logistics Supply Chain Th e m e & Operations & RFID Tec h n o l o g i e s & Tra n s p o r t a t i o n St r a t e g i e s Tra c k Central Michigan Golden Gate Iowa State University, Ohio State University, Ch a i r s Un i v e r s i t y , Un i v e r s i t y , Dr . Michael Crum Dr . Tom Goldsby & Dr . O. Keith Helferich Dr . Richard Dawe Auburn University, Dr . Brian Gibson 8:00 - 9:00 EXECUTIVE SUMMIT KEYNOTE : Panel: “The Critical Role of Technology in Securing Supply Chain Systems and Infrastructures” – Moderated by Dr. Keith Helferich, Dr. Keith Helferich, 9:30 – 10:30 SCE Lab Part 4 – This is a six part, two-day series 10:45 -11:45 SCE Lab Part 5 – This is a six part, two-day series 12:00 - 1:00 Lunch Break 1:15 – 2:15 SCE Lab Part 6 – This is a six part, two-day series 2:30 –3:00 Closing Remarks followed by Certificate Presentation 3:15 –5:00 Distribution Facility Tou r s : Crate and Barrel Distribution Center, PartyLite

34 Conference Overview Day Three – Thursday, May 20, 2004

Day 1: Tuesday, May 18, 2004 logistics though most view it more broadly. This session will 9:15 - 10:15 a.m. Sessions examine what supply chain management is and is not, how Panel – RFID in the Supply Chain leading companies are implementing supply chain management, Moderated by Dr. Richard Dawe, Golden Gate and what the future looks like. Expert panelists will provide key Un i v e r s i t y , with Gil Bautista, Symbol Tec h n o l o g i e s , insights on these questions and more. Vince Pontani, Defense Logistics Agency, Pet e r Panelist Biographies: Kuzma, President, X-Indent and Daniel DeGross, General Manager, Crate and Barrel John Caltagirone, The Revere Group There has been a lot of coverage of RFID technology, but what John is a strong leader of change, with over 30 exactly is Radio Frequency Identification and how is used? The years of experience in supply chain management, panel will discuss how RFID is being used today and some per- logistics and technology. He has a proven track spectives on how it will continue to evolve as an important ele- record of achieving positive change and measurable ment of future supply chain solutions. Finally, the panel will dis- results through strategic planning and execution, as well as the cuss the potential impact, challenges and opportunities that RFID implementation of modern supply chain programs. He has been presents to distribution operations of businesses. involved in developing supply chain and operational strategies, and directing the re-engineering effort of business processes, Day 1: Tuesday, May 18, 2004 with a focus on enhancing the value added component of each 10:30 - 11:15 a.m. Sessions task so that customer satisfaction levels can be increased. John is currently Vice President and National Practice Leader of Supply Chain Security Demands: What are They Supply Chain Strategy for The Revere Group, and previously held and How to Manage Your Compliance the position of Senior Vice President, Chief Logistics and Joel Web b e r , Supply Chain Advisors, LLC Operations Officer for Peapod, Inc., where he was responsible for Movement of freight and distribution has always distribution services, inventory management, purchasing, trans- been a regulated activity to some extent. But the last portation management, logistics engineering and customer ser- two years have seen a more rapid pace of change, more agen- vice. John has also held senior management positions with the cies making demands, and several distinct techniques for securi- following companies: Rand McNally, RR Donnelley & Sons, ty – and now for related purposes. Im r e x Computer Systems, and Ryder Integrated Logistics. What began as security requirements after September 11 is now a broader set of third party constraints on how manufacturers, Robert O. Martichenko, Transfreight LLC carriers and distributors shape their workflow. The challenge Robert Martichenko is the Vice President of Logistics consists of integrating the following into coherent business Operations for Transfreight LLC, headquartered in pr o c e s s e s : Erlanger Kentucky. Transfreight is a comprehensive Multiple regulatory demands from several agencies; Contract Logistics company who specializes in Lean A mix of security techniques varying by the mode, commodity Six Sigma Logistics techniques, including Logistics and geography in which your product moves; Strategy Development and Implementation. Supply chain collaboration for security and public safety – with In his corporate development role, Robert is responsible for government; and new non-government influencers of your distri- Business Development, Contract Operations and Product bution structure – RFID mandates (Wal-Mart, DoD), self-adminis- Development. Robert is a student of Logistics, Lean and Six tered safety measures (the Creekstone Farms case), and pilot Sigma, has published in several industry journals and con- programs for network-centric security. tributed the chapter on “Lean Six Sigma Logistics“ in Michael This presentation seeks to provide an overview. While relevant to George‘s book “Lean Six Sigma .“ The author of “Success in 60 the specific protocols to which an individual supply chain must Seconds“, Robert is the founder of the “Orloe Group“. The Orloe conform, the session will emphasize the forces moving these Group is a Leadership Thought Center and Think Tank commit- protocols, and what they tell us about running our businesses in ted to helping individuals and organizations reach their potential. this dynamic environment Supply Chain Demand Mis-M a t c h RFID Technologies: The Future is Now. Kate Vitasek, Supply Chain Vision Alan Melling, Symbol Tec h n o l o g i e s Many Distribution Managers are plagued with vari- EPC is at a critical point in its development cycle. ability in their supply chains. The variability chal- Widespread piloting based on broad mandates is lenge transcends industry and geographic location - pr o c e e d i n g , and is proving the basic value of the technology. As yet the answer remains elusive for most companies. we begin to move from pilot to implementation, however, an This presentation will show attendees an approach entirely new set of challenges must be faced and overcome. and framework that can help them address the common tradeoff Making EPC work is no longer the challenge - rather the focus between inventory and customer service levels by using SKU must be making the technology manageable and scaleable at the level variability profiles. A case study will also be provided to enterprise level. Real enterprise EPC solutions will require the show how two companies are conquering the variability chal- integration of EPC into a larger architecture capable of managing lenge and are achieving better a balance between inventory and a broad variety of data and devices in an seamless fashion. Mr. service levels. Results will be provided. Melling will speak about some of these challenges, and how an an EPC-Enabled Enterprise Mobility architecture can provide a Day 1: Tuesday, May 18, 2004 solution framework. 11:30 a.m. – 12:15 p.m. Sessions Panel – Supply Chain Management: Where is it Headed? The Emerging Wor k f o r c e Moderated by Dr. Thomas Goldsby, Ohio State Robert Morgan, Spherion University With Panelists: John Caltagirone, The Robert Morgan from Spherion Corporation, a leader Revere Group and Robert Martichencko, in HR and human capital management in the past Transfreight Logistics, LLC 20 years, will discuss the key workforce challenges Much confusion has surrounded the concept and that will confront employers in the next decade and practice of supply chain management (SCM) in how business sectors, specifically industrial, logistics and ware- recent years. Some people view SCM as simply another name for ho u s i n g , will adapt to these changes. He will discuss findings 35 Conference Overview/ Abstract for Sessions

from the recent Spherion Emerging Workforcesm Study, which is the fundamentals of the two concepts, illustrate their application, the third in a series of surveys conducted by Spherion and Harris and explore avenues for strategy development and practice. Interactive designed to provide a comprehensive portrait of changes in the American workforce in the context of on-go i n g Day 1: Tuesday, May 18, 2004 2:15 – 3:00 p.m. Sessions social and economic events. The 2003 workforce survey updates and expands on the previous workforce research published by Improving Storeroom and Warehouse Efficiency to Improve Spherion in 1997 and 1999. Building on the previously estab- Accuracy and Dollars lished themes of the traditional versus Emergent Wor k ersm, the Rick Titone, Why How Consulting 2003 research sought to further examine and define what drives Is your Warehouse or Storeroom a Profit Center or a Cost Center? and motivates these different groups of workers and their Do you know the difference? The question then becomes: “How response to economic and employment outlook. The results pro- can I turn my Cost Center into a Profit Center, or can my Cost vide valuable insight on recruiting, motivating and retaining tal- Center make money?“ And the answer is YES. But, how? en t . The answer to that question is through greater efficiency of oper- ations. While suchfacilities as Storerooms and Warehouses are a Panel – Supply Chain Information Systems: necessity of doing business, operating them efficiently and in a The Costs vs. the Pay o f f s cost effective manner can save money and therefore, create rev- Moderated by Dr. Brian Gibson, Auburn University enue. With Panelists Ken Michel, General Motors and Dr. This presentation explains the differences between Cost and Steve Rutner, Georgia Southern University. Big promises. Big costs. Companies remain leery of Profit Center facilities. It identifies the areas where improved effi- stepping back into the SC software market. This ciencies can convert Cost to Profit, and reduce operating costs. It session could address those concerns and audience concentrates in the four critical areas where costs reside. Those questions regarding spending, implementation, and being: Space, People, Equipment and Operations. Lastly it pro- the ROI of such investments. Which tools truly work? Where is vides for some very important tips and goals that attendees can the biggest bang for the buck? We‘ll let the audience ask the easily apply to their own operations. tough questions to this panel. OUTLINE OF THE PRESENTATI O N : Optimizing Distribution Strategies to Handle Outsourced • The differences between Profit and Cost center facilities Global Production • Can a Cost Center become a Profit Center? Mi k e Kilgore, Chainalytics, LLC • Methods of achieving that goal. Since 1970, manufacturing employment has • The necessity of Storerooms and War e h o u s e s . declined 22%, as firms move production to lower • The areas that require review and change. cost regions. But global instability and heightened • Some recommended changes required. security risks are increasing the risks and costs of LIST OF DELIVERABLES overseas business. When firms don‘t holistically Following this presentation participants will be able to: evaluate alternatives, the total costs of goods sold • Distinguish the difference between a Cost and Profit Center in often increases with outsourced production. If you‘re considering Ma n u f a c t u r i n g outsourcing manufacturing, we‘ll discuss the impact on overall • Identify the 4 critical areas in which to seek improvements, distribution strategies and the three things firms need to avoid those being: Space, People, Equipment and Operations. flawed analysis. We‘ll also discuss the technologies and strate- • Recommendations and tips for immediate application of the gies you need when evaluating overseas opportunities. topic‘s information 3 objectives: 1) Evaluate the impact that risk has on overall supply chain costs RFID Mechanics in Your War e h o u s e 2) Incorporate supply chain risk and overall global costs into Kai Figwer, Director of Systems Integration, LXE strategic and tactical supply chain planning issues. Developments with regard to EPC definition and 3) Deploy a framework for risk-adjusted strategic analysis when supplier mandates have increased the use of RFID in they choose to re-evaluating existing strategies or consider supply chain applications. Recent RFID implementa- new outsourcing opportunities. tions have raised the awareness of RF complexi t i e s and deployment considerations. Kai Figwer will pro- Ou t l i n e : vide a clear and concise overview of RFID and EPC basics and 1) Why manufacturing is declining hardware systems considerations, tailored to help you make 2) How firms decide to outsource production sense of RFID trends and ensure RFID deployment success in 3) What is the impact on distribution and logistics operations your warehouse. 4) The three common mistakes firms make when considering this opportunity Do More with Less – Align Your Workforce with the Wor k 5) How firms can make risk-adjusted supply chain decisions Larry Cassella, Kronos, Inc. 6) What factors must be considered strategically In today‘s economic environment warehouse distrib- 7) What technologies will assist this process utors are forced to “do more with less.“ In fact, a recent report on the productivity of American busi- Lean and Agile Supply Chain Strategies nesses states that US productivity posted its biggest Dr . Tom Goldsby, Ohio State University gain since 1950 in 2002. Since labor is the number Much interest has been directed to “Lean Thinking“ and “Lean one controllable expenses for warehouse distribu- Ma n a g e m e n t “ in recent years. Being “lean“ represents an ability tors, improving workforce efficiency and productivity will increase to meet customer demands with minimal waste in time, effort, pr o f i t a b i l i t y . But to accomplish this goal, many warehouse distrib- and resources. Another concept, “agility,“ refers to the flexi b l e , utors are adopting innovative business intelligence strategies, timely accommodation of diverse customer needs. While viewed which align the workforce with the organization‘s work, turning as distinct approaches to supply chain management, the two increased productivity into profit. This session will include case strategies share a common objective: satisfying end-use cus- studies discussing how warehouse distributors are optimizing tomers at the least total cost. It is in their application, planning, labor resources including one organization that experienced a 30- and execution in which the two differ. This session will review 40 percent increase in productivity by managing labor costs. DB M J 36 Conference Overview/ Abstract for Sessions

Following this presentation, participants will be able to: hope, but the approach to reducing paper must not be rash. • Identify opportunities to improve productivity by aligning the Processes, both on the plant floor and in the general office, must workforce with the work be examined and improved with a clear strategy that will be • Adopt business intelligence strategies other warehouse unique to every organization. This talk will address successful distributors have embraced with successful lean initiatives approaches to managing the “paper swamp“ and suggest possi- • Articulate specific examples of successes achieved by peer ble solutions to this very costly aspect of all of our operations. warehouse distributors who implemented business intelligence strategies The Supply Chain Game (Part 1) Michael Jordon, Trade Dynamics Applying Project Management to Logistics: A Case Extending the Lean Value Stream is an accelerated St u d y learning experience designed to teach participants Dr . David Menachoff, City University, London how to practically apply Lean concepts to improve easyInternetcafé Ltd. (www.easyinternetcafe.com) is supply chain performance. The workshop uses a physical board- part of the easyGroup (www.e a s y g r o u p . c o . u k ) , based simulation as the primary learning instrument supported founded and promoted by the well renowned Greek by the integration of lecture and discussion. The simulation entrepreneur Stelios Haji-Ioannou (www.stelios.com). The other incorporates the roles of business customers, sales manager, companies in his group include easyJet, easyCar, easyCinema, plant workers, production scheduler, supply chain improvement ea s y .com, easyMoney and easyValue. He is also in the process of teams, corporate accountant, executive, suppliers, and service launching new companies such as easyBus, easyPizza, providers. During the workshop, participants will: easyCruise, and easyDorm. • Experience the frustrations inherent in a traditional Although the initial concept was large internet cafes, with hun- manufacturing supply chain dreds of computers in a friendly environment (including an 800 • Understand the business case for supply chain improvement computer café in Times Square), it quickly revealed itself as very as a way to profitably meet rising customer expectations in a uneconomical and a change in strategy was in need. The result volatile & globally competitive market is a shift towards a franchise arrangement with smaller stores of 8-20 computers. • Apply Lean principles to reduce total lead time & costs in the The challenge for easyInternetcafe during this franchise growth whole supply chain and to increase the speed & flexibility of phase, is making sure that the stores can open for business on a extended value stream swift schedule. Once the agreement is in place with the fran- Participants “optimize“ the flow of materials, information, and chisee, the key is to ensure that the store receives the correct fix- cash through the extended value stream of a manufacturer (the tures, furniture and computer systems on a timely basis. The Time Wise Company) by actually doing it. The performance logistics aspect involves shipping from several sources of suppli- objectives for the Time Wise Company, suppliers, and service ers throughout Europe. For example, the computer consoles and providers are to: chairs come from a Polish furniture manufacturer, while the com- • Consistently deliver all customer orders on-time puters are assembled in the UK currently. • Minimize operational costs This session looks at how they broke down each store opening • Maximize profitability into a manageable sequence of events using project manage- Participants are introduced to Flow Kaizen methodology, an ment techniques. Each store opening is considered an individual improvement approach that focuses on optimizing ext e n d e d “p r o j e c t “ in project management terms and the steps assist in flows by reducing total lead-time. In three rounds, participants determining the sequence of events that must occur for a suc- experience a traditional Make-t o -Plan System (Push), then a cessful store opening. Ma k e-t o -Su p e r m a r k et System (Pull), and then finally a Build-to- Order System (Mixed Model Lean). Day 1: Tuesday, May 18, 2004 A financial business case is presented that rationalizes and dri- 3:15 – 4:00 p.m. Sessions ves collaborative improvement with suppliers to achieve sustain- Centralizing a Warehousing Network able and continuous results. A performance scoreboard applica- Ho k ey Min, University of Louisville tion is used to show how supply chain improvements impact To take advantage of economies of scale, a growing financial performance. Financial statements are examined after number of firms have begun to explore the possibility each round of improvements to see how the improvements of integrating supply chain activities. The advent of affected net Income, asset turnover, operating cash flow, and such a possibility would necessitate the reconfigura- return on total assets. tion and centralization of a warehouse network. Typ i c a l l y , a Based on the discovery learning approach, the simulation pro- warehouse centralization problem involves the consolidation of vides participants with a dynamic and stimulating exp e r i e n c e regional warehouses into a fewer number of master stocking that promotes learning by simultaneously failing and succeeding points and the subsequent phase-out of redundant or underuti- – reflecting supply chain improvement in the real world. The lized warehouses without deteriorating customer services. This learning environment gives participants the opportunity to presentation sheds light on challenges and opportunities associ- improve their supply chain decision-making skills, strategic think- ated with the warehouse centralization problem. It also provides ing skills, and collaborative teaming skills. Many will be intro- practical guidelines for a warehouse network reconfiguration duced to systems thinking and the art of holistic problem solving. using a case study. Returns Management: How to Make Order Out of Chaos Draining the Paper Swamp Chris Norek, Chain Connectors Tim Rowland, Lexm a r k While companies focus significant on moving product out to cus- Most of us have given up the myth of the paperless tomers efficiently, they put little focus on handling product that office, but we shouldn‘t give up trying to reduce the comes back to them. In this returns process, there are significant overwhelming volume of paper driving our business. opportunities to not only reduce costs but to generate revenue as The volume is tremendous and poses many obsta- well. Increasing asset recovery by getting returned product back cles, but the more significant impact is the cost associated with in the sales pipeline holds tremendous opportunities for revenue ge n e r a t i n g , storing and retrieving paper documents. In addition, generation. workflow processes are gated by the speed of paper. There is This session will discuss the new perspective on handling returns

37 Conference Overview/ Abstract for Sessions

and how your company can identify hidden opportunities in improvement approach that focuses on optimizing ext e n d e d returns management. flows by reducing total lead-time. In three rounds, participants experience a traditional Make-t o -Plan System (Push), then a Day 1: Tuesday, May 18, 2004 Ma k e-t o -Su p e r m a r k et System (Pull), and then finally a Build-to- 4:15 – 5:00 p.m. Sessions Order System (Mixed Model Lean). Traceability Models for the Food Supply Chain A financial business case is presented that rationalizes and dri- Industry: A Case Study ves collaborative improvement with suppliers to achieve sustain- Dr . Keith Helferich, Central Michigan University able and continuous results. A performance scoreboard applica- Vice President - Integrated Strategies Incorporated tion is used to show how supply chain improvements impact Supply Chain Management Faculty Central Michigan financial performance. Financial statements are examined after Un i v e r s i t y . each round of improvements to see how the improvements Twe n t y -five years consulting in supply chain, logis- affected net Income, asset turnover, operating cash flow, and tics, and production on over 100 assignments in utility, manufac- return on total assets. turing and distribution companies. Past partner in two world- Based on the discovery learning approach, the simulation pro- wide consulting practices. Co-Founder of firm acquired by global vides participants with a dynamic and stimulating experience that co n s u l t a n c y . Responsible for development and application of promotes learning by simultaneously failing and succeeding – software decision support tools for such issues as distribution reflecting supply chain improvement in the real world. The learn- network optimization, vehicle routing and scheduling, inventory ing environment gives participants the opportunity to improve pl a n n i n g , facility layout, and forecasting. their supply chain decision-making skills, strategic thinking skills, and collaborative teaming skills. Many will be introduced to sys- Beyond Fill Rate: Perfecting the Perfect Order tems thinking and the art of holistic problem solving. Kate Vitasek, Supply Chain Vision Your company is achieving a 99% fill rate from its distribution Work Force Resurrection: Unleashing Productivity ce n t e r . Is this good? Distribution centers have worked hard to Co n s t r a i n t s get their fill rates up - often into the high 90th percentile - only to Patrick Kelley, Tru Serve and Ron Hounsell, find that customers are still not happy. How can this be? Tom Zosel Associates The answer is simple. Just because a distribution center Pat Kelley is the Director of Logistics for TruServ Corp, shipped product on time does not mean that it got to the cus- the corporate umbrella for three hardware Coops: True Val u e , tomer on time to their expectations. Nor does it necessarily mean Servistar and Coast to Coast Hardware. He has been with Tru e the customer got the product they ordered, in the quantity they Value and TruServ for 27 years, performing nearly every position ordered. In addition, it does not take in consideration the softer in the Logistics organization. In the early 90s he ran True Val u e ‘ s aspects of customer satisfaction such as damage free or a cor- Human Resources corporate department for four years, then he rect invoice. As companies dig deeper in their efforts to increase was forgiven and allowed back into Logistics. Currently he has customer satisfaction, more are learning there is much more five DCs report directly to him, with dotted line responsibility for than simply having high fill rates. the other eight DCs in Tru S e r v ‘s network of 13 DCs. This session will teach about the concept of the Perfect Order In 1999 he invented an iteration of GainSharing he calls In d e x - what it is, how to create one for your company. In addi- Simplified GainSharing, which he implemented throughout the tion, a case study will be provided. network, starting in 2000. He has written a book on these topics called “Workforce Resurrection,“ collaborating with Ron Hounsell The Supply Chain Game (Part 2) of Tom Zosel & Associates. The book is currently being read by a Michael Jordon, Trade Dynamics well-respected Logistics publisher. He asks that we keep our fin- Extending the Lean Value Stream is an accelerated learning exp e - gers crossed. rience designed to teach participants how to practically apply Where only last year he started writing in the field of Logistics, Lean concepts to improve supply chain performance. The work- Kelley is a widely published author of serious literature, with over shop uses a physical board-based simulation as the primary 1600 of his writings appearing in journals worldwide. He can be learning instrument supported by the integration of lecture and found in the periodicals of Georgia State University, Slippery Roc k discussion. The simulation incorporates the roles of business Un i v e r s i t y , the Air Force Academy, the University of Kentucky and customers, sales manager, plant workers, production scheduler, Kent State, to name a few. A three-time Pushcart Prize nominee, supply chain improvement teams, corporate accountant, exec u - he published two paperbacks and is the recipient of the Nassua tive, suppliers, and service providers. During the workshop, par- Review Poetry Award for 2001. ticipants will: • Experience the frustrations inherent in a traditional Ron Hounsell is Vice President, Marketing & manufacturing supply chain Business Development, Tom Zosel Associates. His • Understand the business case for supply chain improvement career of more than 20 years has included logistics as a way to profitably meet rising customer expectations in a management consulting work in government, for- volatile & globally competitive market profit and non-profit organizations in North America. • Apply Lean principles to reduce total lead time & costs in the In between those assignments, he held distribution whole supply chain and to increase the speed & flexibility of executive positions with organizations in the publishing and extended value stream apparel industries. Participants “optimize“ the flow of materials, information, and Mr . Hounsell has been a frequent presenter at national confer- cash through the extended value stream of a manufacturer (the ences in the industry since 1988 and has published many arti- Time Wise Company) by actually doing it. The performance cles in industry journals and trade magazines. He has also objectives for the Time Wise Company, suppliers, and service taught at Northwestern University and DePaul University, both in providers are to: Chicago, Illinois. • Consistently deliver all customer orders on-time He holds a bachelor‘s degree from the University of Wis c o n s i n , • Minimize operational costs Madison, and a Masters‘ degree from Northwestern University • Maximize profitability and is certified by APICS in Integrated Resource Management. Participants are introduced to Flow Kaizen methodology, an DB M J 38 Conference Overview/ Abstract for Sessions

Day 2: Wed n e s d a y , May 19, 2004 ment of the current state of supply chain systems competence to 8:00 –9:00 a.m. Session support the competency evolution, using research results and Panel – The Impact of Overseas Production on expert opinion. Lastly, the presentation will propose an out- Distribution and Supply Chain Strategy sourced model for supply chain systems development and a case Moderated by Dr. John Langley, study to demonstrate this approach in actual application, devel- Georgia Tech University with Jim Molzon, Solectron oped by the author from a study of two global third party and Dave Durtsche, Tranzact Technologies, Vince providers. Pontani, Defense Logistics Agency Participants in this presentation will have the opportunity to dis- This keynote panel session will address the need to transform cuss the theory of supply chain evolution, timing, and systems supply chains based on increases in overseas manufacturing of requirements from their own organizations and experiences. The finished products and components parts. Among the issues to case study will be discussed from the perspective of both the be discussed are: understanding the need for and move to over- supply chain manager and the provider of outsourced services to seas manufacturing; cost and value justification of allow each to become aware of the major issues, decisions, and overseas manufacturing; balancing cost opportunities with cus- challenges that each face in the future. tomer-related issues and concerns; and developing a long-term strategy for integration of overseas manufacturing with effective, Panel – Hours of Service efficient, and responsive supply chain strategies. Dr . Michael Crum, Iowa State University With panelist Eric Ervin, J.B . Hunt The Federal Motor Carrier Safety Administration‘s Day 2: Wed n e s d a y , May 19, 2004 new truck driver hours-of - service regulations went 3:15 – 4:00 p.m. Sessions into effect on January 4 this year. Trucking industry Using Theory of Constraints in a Lean Distribution experts say this is the most significant public policy change since En v i r o n m e n t economic deregulation occurred in 1980. Motor carriers and Dr . Alexis Sommers, University of New Haven their customers will clearly experience cost and service impacts As costs increase in distribution and transportation, from these changes. The focus of this panel is to clarify the new most companies attempt to adopt lean techniques to rules and their likely impacts, and to discuss how carriers and improve productivity, reduce manpower, and lower shippers/receivers can mitigate the adverse effects of the new their operating expense. While achieving some improvement, re g u l a t i o n s . many organizations find themselves facing obstacles and con- straints that seem to limit further progress with no obvious way Eric C. Ervin, J.B . Hunt to avoid them. More seriously, attempting to become very lean Eric C. Ervin has been a Director of Engineering Services with JB may threaten revenue, service levels, and customer retention. It Hunt Transport, Inc. in Lowell, AR since 2002. At J.B. Hunt he is is here that the use of the theory of constraints, or TOC, may pay responsible for the Integrated Management Sciences group that large dividends by suggesting ways to revise constraints, break supports J.B. Hunt‘s yield management and transportation plan- through them, or avoid them completely. For this to happen, TOC ning applications. He has previously worked as project manager must be carefully integrated into lean analysis in its early phases, implementing management science-based technology and con- and managers must be trained to recognize constraints and to sulting projects from 2001-2002 with QuestOne Decision assess their influence on the organization. For example, con- Sciences in Bethlehem, PA and from 1995-2001 at Accenture in straints created by collective bargaining, government regulation, Chicago, IL. The client list that Eric has worked with includes: and large customers may be viewed as monolithic and impreg- Johnson & Johnson, The U.S . Defense Logistics Agency, J.P . nable until they are carefully defined, probed for conflict or weak- Morgan, Bristol-Myers Squibb, Cincinnati Financial Corporation, ness, and creatively assessed for feasible change or modification. International Paper and Walgreens. Eric is currently working on Several case studies are presented as a base for examining TOC his MBA at the Sam M. Walton College of Business at the in the context of supply chains, and a participatory exercise for University of Arkansas. He received a Bachelor of Science in the audience is also presented. The value of TOC, including the Industrial Engineering from Iowa State University in 1995. He is use of its unusual ““thinking process,“ is explained from the member of INFORMS and IIE. His interests and experience in viewpoint of a manager who seeks a fresh way to achieve a lean business solutions span a range of industries and domains organization and a supportive employee culture. including pharmaceuticals, consumer goods, communications, electronics, supply chain management, transportation planning, Case Study: E-Business: The Evolution and Strategy of Supply and customer relationship management processes. Chain Systems Design Dr . Richard Dawe, Golden Gate University Impact of Supply Chain Strategies on the Income Statement: According to experts who are currently researching, writing, and A Case Study presenting on the topic of supply chain evolution, the need for Dr . Brian Gibson, Auburn University significant improvement in supply chain capability in the future A short case that I have developed and presented on the impact cannot be disputed; it‘s a fact. When it will be required and to of supply chain strategies on the Income Statement. It demon- what degree are the only relevant questions. The future resides strates the value of working on the “middle lines“ rather than in three main concepts: 1) strategy, 2) technology, and 3) out- focusing too heavily on the “top line“ revenue growth. It‘s some- so u r c i n g . This presentation will review the theory of supply chain what straightforward but it could be done within the short time- evolution at the crossroads of all three concepts and offer a case frame that we have for the breakout sessions. study of two companies who have taken steps towards the Day 2: Wed n e s d a y , May 19, 2004 application of the theory. Their success and failure give future 4:15 – 5:00 p.m. Sessions supply chain managers and outsource providers great food for Panel – The Critical Role of Technology in Securing Supply Chain thought as they form their own evolutionary plans, necessary to Systems and Infrastructures advance their organizations competency and their career skills. Dr . Keith Helferich, Central Michigan University The theory will identify business strategy and how it relates to Vice President - Integrated Strategies Incorporated appropriate supply chain strategy through the four levels of com- Supply Chain Management Faculty Central Michigan University petency evolution: 1) functional, 2) integrated, 3) collaborated, Twe n t y -five years consulting in supply chain, logistics, and pro- and 4) virtual. The presentation will present a baseline assess- duction on over 100 assignments in utility, manufacturing and

39 Conference Overview/ Abstract for Sessions

distribution companies. Past partner in two worldwide consulting a three-phase effort, looks at the effect that colors inaccuracies on practices. Co-Founder of firm acquired by global consultancy. e-commerce sites have on product returns. Phase one results and Responsible for development and application of software decision phase three plans are also discussed. An interactive survey instru- support tools for such issues as distribution network optimization, ment was designed to capture data necessary to pursue this vehicle routing and scheduling, inventory planning, facility layout, research. The effort involves studying the customer‘s perceptual and forecasting. differences of color between computer-generated color and that of the actual product itself. Managing Season Demand and Supply in Your Supply Chain Mi k e Kilgore, Chainalytics, LLC Lean Six Sigma Logistics Almost every industry has some form of seasonality. Wea t h e r , hol- Robert Martinchenko, Transfreight, LLC idays, and special events all contribute to short-term spikes in Lean Manufacturing relies on a Lean Logistics System to ensure demand and supply. Fluctuations in raw material and labor avail- that inventories are squeezed completely out of the inbound sup- ability can greatly influence production strategies. This session ply chain. Lean provides a tool kit for speed and flow, while Six will provide attendees with a leading approach for incorporating Sigma focused on reducing variation. Yet, how do these two ini- seasonality into supply chain planning, multi-period optimization. tiatives dovetail together for the logistician? How can Lean possi- Solutions for optimizing seasonal capacity, inventory builds, and bly be more efficient and cost effective than traditional inbound outsourcing strategies will be discussed. 3 objectives: logistics strategies, which take advantage of economies of scale? Join Mr. Martichenko as he discusses Lean Six Sigma logistics Ou t l i n e : and the components that make up total logistics costs within any 1) What impact does seasonality have on supply chain inbound logistics network. This session will discuss the integrat- op e r a t i o n s ? ed approach to a Lean Logistics Strategy and will provide a tool 2) Seasonality forces trade off decisions kit that will allow any logistician to question their current inbound 3) But existing approaches design to the average logistics strategy. 4) Tod a y ‘s strategies don‘t cut it 5) Firms need multi-period optimization (MPO) Participants will learn about: 6) How to incorporate MPO into strategic and tactical planning 1. What is Lean Six Sigma Logistics! pr o c e s s e s 2. How to finally look at and calculate “Total Logistics Cost“ 7) A case study: Issues 3. How to implement Lean Six Sigma Logistics 8) A case study: Solution 9) A case study: Results The Effect of Customers’ Color Preferences on the Operation of Return Goods Dennis Krumwiede, Idaho State University Return goods management, also referred to as reverse logistics, has become an important topic in recent years. As customers come to expect higher quality products, more items are returned as a result of product dissatisfaction. Further, as governments enact stricter regulations to preserve the environment, the dispo- sition of returned goods becomes a critical issue. Substantial research has been performed by European researchers to assess the impact of environmental protection. Significantly less research has been conducted involving the return of goods for other rea- sons than waste disposal and its effect on the supply chain. For example, scant research has been performed regarding the effects of product returns due to color inaccuracies from web purchases. This is becoming a critical issue because as the number of Internet purchases increases, the return of goods is also signifi- cantly increasing. The increase in returned goods adds new chal- lenges and opportunities for a company. This work, phase two of

Circle Number 76 DB M J 40 Alphabetical Listing of Ex h i b i t o r s

Advantage Transportation Systems from not only one manufactur- customized software and system solu- Booth #461 e r, but from many. Complete systems tions that automate every aspect of sup- 800 Lone Oak that include: bar code Printers, bar code ply chain and logistics management Eagen, MN 55121 printing software, labels, ribbons, within the distribution, logistical, and Tel: 651-683-1222 portable data terminals with data collec- other material handling sectors by lever- Fax: 651-681-6222 tion software, point of sale products, aging new and existing technology Web: www. b a c k h a u l e r. c o m cash registers, pole displays, receipt i n f r a s t r u c t u r e s . Advantage Transportation, Inc. offers printers, cash drawers, cash register DHL Express dependable and reliable transportation, software. Free technical support after throughout North America. Match your Booth #1159 the sale and during the warranty with (Industry Advisory Council Member) business with our transportation repair service even after the warranty 1200 South Pine Island resources and take your supply chain to expires. Systems to interface with your Plantation, FL 33324 the next level of efficiency. We can liter- cash register control gas pumps. New Tel: 954-888-7072 ally customize service to your unique automated repair of any printed circuit Fax: 954-888-7286 supply chain with technology and inno- board without drawings. Web: www. d h l - u s a . c o m vative practices. Advantage‘s ex p a n d e d DHL is the world‘s leading express and offerings include LTL optimization, Battery Handling Systems logistics company offering customers truckload, warehousing services, ex p e- Booth #378 (Industry Advisory Council Member) innovative and customized solutions dited ground transportation, logistics PO Box 28990 from a single source. With global ex p e r- management, and critical-time inter- St Louis, MO 63132 tise in solutions, express, air and ocean modal shipments. Tel: 314-423-7091 freight and overland transport, DHL Atlas Iron Wo r k s Fax: 314-423-6444 combines worldwide coverage with an Booth #661 Web: www. b h s 1 . c o m i n -depth understanding of local marke t s . (Industry Advisory Council Member) Battery Handling Systems has become a D H L‘s harmonized international network 4020 Geraldine Ave. world-renowned supplier of battery han- links more than 220 countries and terri- St. Louis, MO 63115 dling products and systems, offering tories worldwide. For more information Tel: 314-383-7200 design, sales and support to customers visit http://www. d h l - u s a . c o m . Fax: 314-383-7202 around the world. Included in the array Enersys Inc Web: www. a t l a s i r o n w o r k s . c o m of BHS product lines are: battery ex t r a c- Atlas designs, manufactures and installs Booth #806 tors, gantries, battery charging stations, (Industry Advisory Council Member) freestanding structural steel mezzanines compartment roller trays and acces- 2366 Bernville Rd and other custom structures for various sories. BHS remains committed to quali- Re a d i n g, PA 19612 material handling systems including t y, craftsmanship and meticulous atten- Tel: 610-208-1921 catwalks, conveyor/sorter line supports, tion to detail. Due to our expertise in Fax: 610-372-8628 crane runways, office/picking/storage this particular field of material handling, Exide Ironclad square tubular batteries platforms, and stairways. In addition, we are often called upon to assist in the are available only from Enersys. Atlas furnishes and installs custom fab- design of small and large battery charg- Wo r k h o g, Deserthog, Loadhog, and ricated structural steel for construction ing rooms. Superhog offer the highest discharge of commercial, industrial and institu- voltages and deliver more usable power tional buildings. Canterbury Technologies International, LLC over longer periods under load. The Atlas Material Handling Booth #1469 Exide line of chargers includes the Booth #810 310 Canterbury Ct L o a d h o g, Depth Charger, and the new (Industry Advisory Council Member) Oakmont, PA 15139 Express Fast Charger. General Battery 5050 N. River Rd Tel: 412-759-4284 brand industrial batteries and chargers Schiller Park, IL 60176 Fax: 412-828-1137 offering high quality and a great value. Tel: 847-233-7170 Canterbury Technologies International Fax: 847-678-1750 Harvard Battery specializes in connectivity and integrat- Booth #659 Web: www. a t l a s l i f t . c o m ing individual solutions to create PO Box 2622 Atlas Material Handling, Inc. is an inter- streamlined operations. We also develop Cherry Hill, NJ 08034 national manufacturer and distributor of innovative data communication prod- Tel: 856-424-9448 wire mesh decking, containers and pal- ucts such as the Blue Device program- Web: www. h a r v a r d b a t t e r y. c o m let rack accessories, including a full line mable controller, digital production dis- Harvard Battery Inc. (HBI) is the leading of rack repair products and services. We plays and Palm based software prod- supplier for replacement batteries and offer one of North America‘s largest ucts to assist in creating an integrated accessories for the hand-held comput- “Quick Ship“ inventories of both new environment and achieving specific ing and bar code scanning markets. HBI and previously owned material from operational goals. Canterbury is celebrating its 14th year in business. Illinois, Texas, California & Delaware. Technologies … Creating Competitive Nearly all products carry a one- y e a r Bar Code Equipment Service, Inc. Advantage through Integration. warranty and are guaranteed to meet or Booth # 1059 CODE Plus, Inc. exceed the Oem‘s specifications. Our (Industry Advisory Council Member) Booth #1459 knowledgeable staff has ex t e n s i v e 315 Third Avenue North 2810 Old Lee Highway, Suite 305 expertise in providing replacement bat- Jacksonville Beach, FL 32250 Fairfax, VA 22031-4376 tery packs, cables, portable printers, Tel: 904-249-3862 Tel: 703-846-0030 x 202 charging systems and much more. Wi t h Fax: 904-247-3862 Fax: 703-846-0031 HBI you‘re assured the finest products, Web: www. b a r c o d e s e r v i c e . c o m Web: www. c o d e- p l u s . c o m excellent customer service and stability Bar Code Equipment Service Inc. - CODE Plus, Inc. (CODEplus) provides you can rely on. HBI‘s customer base 41 Alphabetical Listing of Ex h i b i t o r s

includes all industries ranging from KEITH Mfg. Co. need and the personal attention you small entrepreneurs to fortune 500 Booth #367 and your cargo deserve. Many of our companies. Contact HBI today and (Industry Advisory Council Member) regular customers have realized sig- join the thousands of satisfied cus- 401 NW Adler St. / P. O. Box 1 nificant cost savings by utilizing our tomers who discovered why Harvard Madras, OR 97741 USA services. Outsourcing transportation Battery Inc. is The Educated Choice. Tel: 541.475.3802 is cost effective in terms of both fis- Fax: 541-475-2169 cal and human resources. Call us High Density Storage Web: www. ke i t h w a l k i n g f l o o r. c o m today and let us quote your nex t Booth #814 Streamline material flow in the ware- shipment full truck load or LT L. We (Industry Advisory Council Member) house/distribution center while will get it there safely and on time. 2938 Columbia Ave., Ste 1102 improving product throughput, Landoll Corporation L a n c a s t e r, PA 17603 reducing cargo damage and optimiz- ing available resources. The KEITH® Booth #1261 Tel: 717-299-3688 1900 North Stret Fax: 717-299-2154 WALKING FLOOR® Dock to Tr a i l e r ™ System integrates fully automates Marysville, KS 66508 IFCO Systems North America, Inc. the warehouse and transportation Tel: 540-582-3000 Booth #359 environments. Specialized pallet floor w w w. L a n d o l l . c o m (Industry Advisory Council Member) design includes a vertical movement, Landoll manufactures Bendi, 6829 Flintlock Rd keeping pallets positioned straight on PivotMast and Drexel Very Narrow Houston, TX 77040 the floor during conveying. WA L K I N G Aisle Forklifts for distribution Tel: 713-332-6162 F LOOR technology is a hydraulically- throughout the world. Models from Fax: 713-332-6146 driven, moving floor conveyor. 2,500 lbs. to 12,000 lbs. and Electric Web: www. i f c o s y s t e m s . c o m and Engine power are available. The IFCO Systems is a global logistics K R O N O S, Inc full line of trucks boast versatility systems and service provider with an Booth #278 being able to handle front loader jobs international network of more than (Industry Advisory Council Member) as well as work in the Very Narrow 150 facilities. IFCO Systems operates 297 Billerica Rd A i s l e s . round-trip container systems, which Chelmsford, MA 01824 include containers for consumer Tel: 978-250-9800 L exmark International, Inc. Booth #270 goods and pallet services. In North Fax: 978-256-5887 Web: www. K r o n o s . c o m (Industry Advisory Council Member) America, IFCO manages the second 740 W. New Circle Ro a d largest rental pallet pool and is the Kronos® Incorporated is a single- source provider of human resources, L exington, KY 40550 USA largest provider of recycled pallets Tel: Rick - 859.232.5383 Tom - and custom crates in North America. payroll, scheduling, and time and labor solutions. Kronos‘ best- i n -c l a s s 8 5 9 . 2 3 2 . 1 2 8 5 Jungheinrich Lift Truck Corp. Employee Relationship Management Fax: 859.232.6336 Booth #282 solution enables organizations to Web: www. l ex m a r k . c o m (Industry Advisory Council Member) reduce costs and increase productivi- L exmark provides software, hard- 5701 Eastport Boulevard t y, improve employee satisfaction, ware and services to help improve Richmond, VA 23231 align employee performance with productivity by streamlining process Tel: 804 737 6084 organizational objectives, and put through the elimination on paper. By Fax: 804 737 6136 real-time information in the hands of moving paper to digital format, we Web: www. j u n g h e i n r i c h . c o m decision makers. More than 40,000 can help customers store and The Jungheinrich Group is one of the organizations trust Kronos to solve retrieve documents via their Intranet. world‘s leading suppliers in the fields their employee-centric business chal- of industrial trucks, warehousing L X E, Inc. l e n g e s . Booth #1379 technology and materials flow tech- (Industry Advisory Council Member) Kross Transportation n o l o g y. For 49 years now, the com- 125 Technology Pa r k w a y p a n y, with its group headquarters in Booth #1460 PO Box 626 Norcross, GA 30092 H a m b u r g, Germany has been offer- Tel: 800-664-4593 ing products and services “for and in Tr o y, AL 36081 Tel: 334-566-8282 Fax: 770-242-9417 connection with the forklift“. The w w w. L X E. c o m rapid development of information Fax: 334-566-8122 Kross Transportation appreciates LXE Inc. develops industrial wireless technology and its worldwide use data collection and transaction pro- are gaining more and more impor- your time and consideration when assessing your transportation needs. cessing solutions including rugged tance in internal logistics. Global dis- computers, advanced auto-ID tech- tribution flows are on the increase: Our specialists bring a thorough understanding of various segments nologies, and wireless networking high mobility and flexibility charac- products that improve the perfor- terize the transport sector - with the of the transportation industry allow- ing you to put your shipping needs mance of supply chain exe c u t i o n result that made- t o-measure, all- applications. LXE also offers a full round solutions in our hands so you can get back to doing what you do best. We tailor range of turnkey services including are today replacing the classic prod- network design and installation. For uct range. Jungheinrich is respond- our service to the precise needs of your shipment based on variables of your free wireless data collection ing to this development with a mod- white papers including your 2004 ern, broadly-based product spectrum location, time equipment and special handling requirements. We take pride edition of “RF/Wireless Basics“ visit and the intensified expansion of its us at www. l xe . c o m . range of services. in using our extensive expertise to provide you with the service you DB M J 42 Alphabetical Listing of Ex h i b i t o r s

MacroAir Technologies, LLC Web: www. N ox -c r e t e . c o m ers. Sales and support are provided Booth #800 Concrete Hardener/Sealer/Dustproofer by a world-wide network of autho- 2 Corporate Drive and Floor Polish, Concrete Floor Joint rized dealers. Rugged and reliable, Shelton, CT 06484 Fillers, Concrete, Cleaners/ P r i m e-Mover trucks are the right Tel: 203-925-7726 Degreasers, Concrete Sealers choice for tough applications. Fax: 203-925-7725 Web: www. M a c r o- a i r. c o m OCS Intellitrak, Inc Q u e s t a We b We are the original inventors and Booth #267 Booth #459 (Industry Advisory Council Member) 649 Central Ave manufacturers of High Volume Low 483 Northland Blvd Wesfield, NJ 07090 Speed fans. With diameters up to 24 Cincinnati, OH 45240 Tel: 908-233-2300 feet, and moving up to 230,000 CFM Tel: 513-742-5600 Fax: 908-233-0706 in up to 20,000 square feet of space, Fax: 513-742-5609 Web: www. Q u e s t a w e b . c o m our MacroAir™ fans with Web: www. O C S i n t e l l i t r a c k . c o m Q u e s t a Web is a provider of integrated WhisperFoil™ anodized aluminum Intellitrak overhead conveyor systems w e b-native global trade management blades provide the most cost-e f f e c t i v e are low cost, low maintenance power software solutions. Its flagship prod- and efficient air movement systems & free conveyors that utilize rotating uct, Tr a d e M a s t e r Q W, pro- a c t i v e l y for cooling, ventilation, and heat tube technology to drive loads up to manages the export and import destratification compared to other 1000lbs through any number of processes for importers, ex p o r t e r s , H VAC solutions. Visit us to learn applications in a clean, quiet, inher- forwarders, and brokers, thereby more – we‘ll treat you right. ently safe manner. These modular, streamlining cross-border operations. M e c a l u x highly configurable systems incorpo- The TradeMasterQW business model Booth #804 rate driven and non-driven lines to unifies trade, logistics, compliance, 980 Via Ro d e o maximize efficiency. IntelliTrak - and financial processes promoting Placentia, CA 92870 Redefining Overhead Conveyors. worldwide collaboration. The central- Tel: 714-223-9590 ized global database maintains up- t o- Fax: 714-223-0824 PCM Image Tek (Industry Advisory Council Member) date import and export content, and Web: www. m e c a l u x . c o m 280 Clinton Street supports multiple languages, indus- Leading manufacturer of pallet rack, Springfield, VT 05156 tries, currencies, and time zones. drive in rack, pallet flow, push back, Tel: 802-885-6208 TradeMasterQW accelerates the flow carton flow, widespan and boltless Fax: 802-885-6210 of goods across the global supply s h e l v i n g. Our products can be PCM Image-Tek has been an industry chain, reduces inventory and shipped from Los Angeles, CA, leader in the design and manufacture of operational costs, and ensures Chicago, IL, and Dallas, TX. We offer Print and Apply Systems since 1982. compliance with ever-c h a n g i n g engineering assistance and can pro- The PCM Image-Tek product lineincludes c r o s s-border regulations. vide a quality product at a competi- high volume industrial printer applica- tive price. Remstar International Inc tors and thermal transfer printer lamina- Booth #1373 M e t z g e r / M c G u i r e tors. Image-Tek has supplied printer (Industry Advisory Council Member) Booth #559 applicator systems 1 Hollow Brook Rd Scott Metzger to large distribution centers, Fortune 500 Port Murray, NJ 07865 PO Box 2217 companies and the US Pos t a l Tel: 908-832-9337 Concord, NH 03302 Service since 1981. Located in Fax: 908-310-2875 Tel: 603-224-6122 Springfield VT our engineering staff can- Web: www. r e m s t a r. c o m Fax: 603-224-6020 design a custom printer applicator to Remstar provides high speed cost suit most any application. Web: www. m e t z g e r m c g u i r e . c o m efficient automated storage and Im a g e -Tek's line of high speed label Metzger/McGuire manufactures retrieval systems for picking, buffer- printer applicators and label industrial concrete floor joint fillers laminators, bring ease of use, economy i n g, consolidation, storage and sorta- and repair products. We specialize in and reliability to any companies tion. Remstar‘s automated order pick- rapid turnaround floor repair products logistics and warehousing applications. ing and fulfillment systems are and offer in-house maintenance per- designed to increase throughput up sonnel training and quality contractor Prime Mover to 550%, maximize productivity by referrals. Please stop by our booth to Booth #882 2/3 and reduce floor space require- discuss how we can assist you in (Industry Advisory Council Member) ments up to 75%. High value- l o w- r i s k restoring your industrial floor to maxi- 3305 North Highway 38 systems include carousels, VLMs, mum operational productivity. Muscatine, IA 52761 inventory management software and Tel: 563-262-7732 p i c k- t o-light. Call for your free space MK C Custom Broker s Fax: 563-262-7600 analysis today. 9320 South Lacienega Blvd Web: www. b t- p r i m e- m o v e r. c o m Inglewood, CA 90301 P r i m e-Mover is a leading manufactur- Rhino Aluminum Pa l l e t Tel: 310-645-0100 er of forklifts and materials handling 1111 13th Ave., SE Fax: 310-645-0111 equipment for the warehousing Detroit Lakes, MN 56501 N ox-C r e t e i n d u s t r y. Products include BT® Hand Tel: 218-846-2900 Booth #802 Pallet Trucks and Prime- M o v e r ® Fax: 218-847-4448 PO Box 8102 brand battery-powered pallet trucks, Omaha, NE 68108 walkie stackers, counterbalance Tel: 402-341-1976 s t a c kers, reach trucks and order pick- Fax: 402-341-9752 43 Alphabetical Listing of Ex h i b i t o r s

Rubbermaid Commercial Products Starrco manufactures modular pre- Un e x is the patented, original full-width Booth #759 fabricated interior office systems. roller carton flow track that drops into (Industry Advisory Council Member) Systems can be sued for offices, any pallet rack for unrivaled flow. Also 3124 Valley Ave equipment enclosures, break rooms, featured will be Roller Rack by Unex- Wi n c h e s t e r, VA 22601 clean rooms, environmental enclo- Sp a n - Track ready framework and Tel: 540-667-8700 sures and team centers. Speedway Gravity Conveyors by Unex. Fax: 540-542-8888 Web : w w w. r u b b e r m a i d c o m m e r c i a l . c o m Stratus Te c h n o l o g i e s V i d ex Rubbermaid Commercial Products Booth #1467 Booth #1 461 develops and manufactures innovative 111 Powdermill Rd 1105 Northeast Circle Blvd c o m m e r c i a l -quality products and sys- Maynard, MA 01754 Corvallis, OR 97330 tem solutions for safety, cleaning, Tel: 978-461-7637 Tel: 541-758-0521 material handling, waste, agriculture Fax: 978-461-3620 Fax: 541-752-5285 and food service markets. These prod- Web: www. s t r a t u s . c o m Web: www. v i d ex . c o m ucts drive higher levels of productivity Stratus Technologies is a global CyberLock® electronic lock cylinders in the workplace by helping the end- provider of fault-tolerant computer bring controlled access and a compre- user to Work Smarter. servers, technologies and services, hensive audit trail to padlocks and stan- delivering continuously available pro- dard lock hardware. Each user‘s access S ATO America cessing for applications that must not can be restricted to pre-specified dates Booth #261 fail. Stratus servers provide high lev- and times. A record of events is stored (Industry Advisory Council Member) els of reliability relative to the server in both lock and key. Locks cannot be 1 0 3 5 0 -A Nations Ford Rd industry, delivering 99.999% uptime picked and keys cannot be duplicated. Charlotte, NC 28273 or better. Stratus servers and support CyberLocks install in padlocks and lock Tel: 704-644-1650 services are used by customers for hardware on shipping containers, ware- Fax: 704-644-1662 their critical computer-based opera- house and office doors. Web: www. s a t o a m e r i c a . c o m tions that are required to be continu- Vo c o l l e c t Siggins Company ously available for the proper func- Booth #1385 Booth #374 tioning of their businesses. (Industry Advisory Council Member) (Industry Advisory Council Member) Transportation Concepts Inc. 703 Rodi Road, Suite 200 Victor Pe r e l m u t e r, President 216 Pleasant Drive Pittsburgh, PA 15235 512 E. 12th Ave Aliquippa, PA 15001 Tel: 412.829.8145 North Kansas City, MO 64116 Tel: 724-857-3130 Fax: 412.829.0972 Tel: 800-383-3218 Fax: 724-857-3114 Web: www.vocollect.com Fax: 816-421-2162 Web: www.t c i p a y. c o m With more than 50,000 users world- Web: www. s i g g i n s . n e t wide, Vocollect has pioneered and T r i E n d a Provides all products and services nec- deployed more integrated voice-d i r e c t- essary to design and build material han- Booth #959 N7660 Industrial Rd ed distribution systems than any other dling and storage systems for supply c o m p a n y. To g e t h e r, its Talkman® wear- chain, warehousing, and distribution. Portage, WI 53901 Tel: 608-742-5303 able computer and integrated software S o f t e o n Fax: 608-742-9164 suite, cut operating costs by eliminat- Booth #274 Web: www. Tr i e n d a . c o m ing errors and improving worker pro- (Industry Advisory Council Member) TriEnda is a member of the largest ductivity through “hands-free, eyes- 8133 Leesburg Pike, Ste 570 industrial plastics group in North free™“ operation. The company collab- Vienna, VA 22182-2706 America; making it a leader in indus- orates with a network of systems inte- Tel: 703-356-8727 trial single and twin sheet plastic grators and WMS providers to serve Fax: 703-356-8959 thermoformed packaging and materi- the grocery, general and mass mer- Web: www. s o f t e o n . c o m al handling products. Developing and chandise, foodservice, convenience ELITE, the only 100% web-based fully manufacturing material handling store, beverage, health and beauty, 3PL functional Supply Chain Execution products for markets as diverse as and medical/pharmaceutical industries. System. Functionality includes automotive, agriculture, government, Yale Material Handling Warehousing, Distribution, Order g r o c e r y, food processing, chemical, Booth #561 Management, Forecasting, Resource, pharmaceutical and textiles, Tr i E n d a 1400 Sullivan Drive Assembly/Kitting, Transportation and knows how and whether plastics are Greenville, NC 27834 Yard Management, plus Simulation & a solution for you. Tel: 800-233-YA L E Optimization. ELITE is platform and Fax: 252-931-7873 U n ex Manufacturing Inc database independent. No other solu- Web: www. y a l e . c o m tion provides the flexibility to adapt to Booth #818 (Industry Advisory Council Member) Yale Materials Handling Corporation your business needs while maintaining ma r k ets a full line of products and ser- the functionality and reliability required. 50 Progress Ave Jackson, NJ 08527 vices, including electric, gas, LP-ga s , S t a r r c o Tel: 732-928-2800 diesel and compressed natural gas-p o w - Booth #859 Fax: 732-928-2828 ered lift trucks; narrow aisle, very nar- (Industry Advisory Council Member) Web: www. u n ex . c o m row aisle and motorized hand trucks; 11700 Fairgrove Industrial Blvd Booth #818 – Unex carton flow prod- plus fleet management, service, parts, Maryland Heights, MO 63043 ucts make stocking and order picking financing and training. Yale trucks are Tel: 314-567-5533 ea s y , fast and reliable for increased manufactured in an ISO 9001:2000 reg- Fax: 314-567-7555 product throughput. Span-Track by istered facility and range in capacity Web: www. s t a r r c o . c o m from 2,000 to 36,000 p o u n d s . DB M J 44 In d e x of Advertisers The DBM Association Co m p a n y Pag e Circle Ad # would like to thank the CL M ...... 5 5...... 7 9 following companies for DBM 2004...... 50, 51 ...... 7 8 sponsoring the following DBM 2005 ...... 6 3...... 8 4 DH L...... B C...... 8 7 DBM2004 events! Enersys Inc...... 3 2...... 7 5 Global Storage Systems ...... 2 ...... 6 7 Baseball Sponsorship: GE / OMD USA...... 2 6...... 7 3 Lexmark International, Inc. In t e l l i t r a c k...... 3 1...... 7 4 Circle of Excellence Sponsorship: Jungheinrich Lift Truck Corp...... 1 6...... 7 1 Symbol Technologies Keith Manufacturing Co...... 6 4...... 8 5 La n d o l l ...... 6 ...... 6 8 Coffee Break Sponsorship: Remstar International, Inc. Lexmark International, Inc...... 7, 8 ...... 6 9 Ma c r o A i r...... 2 0...... 7 2 Registration Area Sponsorship: Me t z g e r / M c G u i r e ...... 4 1...... 7 6 Landoll Corporation NO W & F E ...... 5 8...... 8 0 Tennis Sponsorship: Pri m e- M o v e r , Inc...... 6 2...... 8 3 Atlas Iron Works Remstar International Inc...... IFC, 1 ...... 6 6 Transportation Sponsorship: Sm a r t S c a n ...... 6 1...... 8 2 Softeon Steel King ...... 6 5...... 8 6 Symbol Tec h n o l o g i e s ...... 4 9...... 7 7 Lunch and Learn Sponsorships: Lexmark International,Inc. Vocollect Ru b b e r m a i d ...... 5 9...... 8 1 Stratus Technologies LXE, Inc. UN E X Ma n u f a c t u r i n g ...... 1 3...... 7 0 Kronos, Inc.

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45 DC Expo 2004 List of

Co m p a n y Website Address Booth # Su p p l y C h a i n Lo g i s t i c s Di s t r i b u t i o n Tra n s p o r t a t i o n WM S RF I D 3r d - P arty Logistics

3PL Software, A Division of Camelot Consulting, Inc. ht t p : / / w w w. 3 p l s o f t w a r e . c o m 11 5 2 XXXXXXX Acatech Solutions, Inc. ht t p : / / w w w. a c a t e c h . c o m 64 8 XX XXX AF M S, L L C ht t p : / / w w w. a f m s . c o m 43 8 XX X Alcazar Ltd. ht t p : / / w w w. a l c a z a r l t d . c o m 32 5 XXXXXXX ALK Tec h n o l o g i e s ht t p : / / w w w. a l k . c o m 82 9 X Americas Systems, LLC ht t p : / / w w w. a m e r i c a s y s . c o m 75 5 X X AM L ht t p : / / w w w. a m l t d . c o m 83 1 XXX X X Anteon Corporation ht t p : / / w w w. i s p e c . c o m 75 2 XXX X Appian Logistics Software, Inc. ht t p : / / w w w. a p p i a n l o g i s t i c s . c o m 34 1 XXXX Apprise Software, Inc. ht t p : / / w w w. a p p r i s e . c o m 10 4 5 X X XX Argent Global Services ht t p : / / w w w. a r g e n t g l o b a l . c o m 64 4 XXX Argos Software ht t p : / / w w w. a b e c a s i n s i g h t . c o m 75 0 Bar Code Supply, Inc. ht t p : / / w w w. b a r c o d e s u p p l y. c o m 52 7 XXX XXX Blue Horseshoe Solutions, Inc. ht t p : / / w w w. b h s o l u t i o n s . c o m 13 5 0 XXXXXX Blue Horseshoe Solutions, Inc. ht t p : / / w w w. b h s o l u t i o n s . c o m 13 5 0 XXXXXX Boomi, Inc. ht t p : / / w w w. b o o m i . c o m 95 0 XXXXXXX Br e v a d u m ht t p : / / w w w. b r e v a d u m . c o m 42 7 X XX BT A Digital Wor k s ht t p : / / w w w. b t a - u s a . c o m 12 4 0 XXX Business Technology Group, Inc. ht t p : / / w w w. b t g i . c o m 54 8 XXX XX C3 Solutions Inc. ht t p : / / w w w. c 3 t o o l s . c o m 22 5 XXXXXX CAMS Software Corporation ht t p : / / w w w. c a m s p r o . c o m 95 2 XXXX Ca r g o Te l ht t p : / / w w w. c a r g o t e l . c o m 12 4 6 XXXXXXX Carter & Burgess ht t p : / / w w w. c - b . c o m / d i s t r i b u t i o n 82 8 XXXXXXX Catalpa Systems, Inc ht t p : / / w w w. c a t a l p a -s y s t e m s . c o m 34 9 XXXXX Catalyst International, Inc. ht t p : / / w w w. c a t a l y s t i n t e r n a t i o n a l . c o m 23 4 XXXXXXX Cheetah Software Systems, Inc. ht t p : / / w w w. c h e e t a h . c o m 62 8 XXX CIBER Enterprise Solutions ht t p : / / w w w. c i b e r. c o m 83 0 X XX CMAC, Inc. ht t p : / / w w w. c m a c i n c . c o m 73 7 XXXXXXX Codeworks, LLC ht t p : / / w w w. c t c o d e w o r k s . c o m 85 2 XXXXX Commonwealth Business Media, Inc. ht t p : / / w w w. c b i z m e d i a . c o m 73 6 Consumer Goods Tec h n o l o g y ht t p : / / w w w. c o n s u m e r g o o d s . c o m 63 4 Control Solutions ht t p : / / w w w. c o n s o l u t . c o m 10 3 9 XXX XXX Cornerstone Solutions, Inc. ht t p : / / w w w. c o r n e r s t o n e s . c o m 43 3 XXXXX CT Logistics - Commercial Traffic Co. ht t p : / / ‘ w w w. c t l o g i s t i c s . c o m 44 6 XXXXX X da l y. c o m m e r c e ht t p : / / w w w. d a l y c o m m e r c e . n e t 35 1 X X X Data Ltd., Inc. ht t p : / / w w w. d a t a l t d . c o m 54 9 XXXXXXX Da t a 2 L o g i s t i c s ht t p : / / w w w. D a t a 2 L o g i s t i c s . c o m 43 9 XXXX DC Vel o c i t y ht t p : / / w w w. d c v e l o c i t y. c o m 11 5 4 XXXXXXX Demand Management Inc. ht t p : / / w w w. d e m a n d s o l u t i o n s . c o m 63 6 X X Distribution Group ht t p : / / w w w. d i s t r i b u t i o n g r o u p . c o m Pub/No Booth X X X XXX Distribution One Inc. ht t p : / / w w w. d i s t o n e . c o m 24 4 X X X Distribution Sales & Management ht t p : / / w w w. g o n p t a . c o m Pub/No Booth X X X DL OG GMBH ht t p : / / w w w. d l o g. c o m 83 3 XX XXX Donachie, Fenton and Associates ht t p : / / w w w. d f a - w m s . c o m 94 2 X DSA - Software ht t p : / / w w w. d s a s o f t . c o m 24 1 XXX XXX DSR Consulting ht t p : / / w w w. d s r c o n s u l t i n g. c o m 10 5 5 XXXXXXX en V i s t a ht t p : / / e n v i s t a c o r p . c o m 32 8 XXXXX Ep i c o r ht t p : / / e p i c o r. c o m 24 5 XXX X Equential Tec h n o l o g i e s ht t p : / / w w w. e q u e n t i a l . c o m 12 3 8 XXX XX ES Y N C ht t p : / / w w w. e s y n c . c o m 22 8 XXXXXX Express Pro m o t i o n s ht t p : / / w w w. e x p r o m o . c o m 84 7 Flextronics (SimFlex) ht t p : / / w w w. f l e x t r o n i c s . c o m / Va l u e A d d e d / 73 1 XX Si m F l e x / s i m f l e x . a s p fr e i g h t q u o t e . c o m ht t p : / / w w w. f r e i g h t q u o t e . c o m 45 2 XXXX X Frontline Solutions ht t p : / / w w w. a d v a n s t a r. c o m 10 4 8 XXXXXXX Ge n c o ht t p : / / w w w. g e n c o . c o m 65 2 XXXXXXX Gillani, Inc. ht t p : / / w w w. g i l l a n i . c o m 10 3 0 XXXXX X Global Logistics & Supply Chain Strategies ht t p : / / w w w. s u p p l y c h a i n b r a i n . c o m 93 9 XXXXXXX

46 Ex h i b i t o r s

Co m p a n y Website Address Booth # Su p p l y C h a i n Lo g i s t i c s Di s t r i b u t i o n Tra n s p o r t a t i o n WM S RF I D 3r d - P arty Logistics

Global Logistics Services, Inc. ht t p : / / w w w. g l s- i n c . n e t 10 4 3 XXXX X G-L o g ht t p : / / w w w. g - l o g. c o m 54 5 XX X X Heartland Computers, Inc. ht t p : / / w w w. h e a r t l a n d - u s a . c o m 12 9 XX XX HighJump Software, A 3M Company ht t p : / / w w w. h i g h j u m p . c o m 33 7 X XX Hi g h T ech Knowledge Inc. ht t p : / / w w w. h i g h t e c h k n o w l e d g e . c o m / g p a g e 3 . h t m l 55 2 XXX XX Honeywell Batteries ht t p : / / w w w. h o n e y w e l l b a t t e r i e s . c o m 84 2 XXXXXXX IBS (International Business Systems) ht t p : / / w w w. i b s u s . c o m 72 8 X X X Inbound Logistics Magazine ht t p : / / w w w. i n b o u n d l o g i s t i c s . c o m 10 5 0 XXXXXXX Infoscan, Inc. ht t p : / / w w w. i n f o s c a n . c o m 52 7 XXX XXX IN S I G H T , Inc. ht t p : / / w w w. i n s i g h t - m s s . c o m 45 5 XXXX Integrated Solutions/Business Solutions Magazine ht t p : / / w w w. c o r r y p u b . c o m 24 8 XXX X Integrated Warehousing Solutions ht t p : / / w w w. i w s- i r m s . c o m 54 6 X X XX In t e l l i Tr a c k ht t p : / / w w w. i n t e l l i t r a c k . n e t 72 9 X Interlink Tec h n o l o g i e s ht t p : / / i n t e r l i n k t e c h . c o m 82 7 XXXXXXX In t e r m e c ht t p : / / w w w. i n t e r m e c . c o m 83 9 XXXXXX Intermodal Association of Chicago 55 1 Irista, Inc. ht t p : / / w w w. i r i s t a . c o m 73 4 XXXXXXX IT t o o l b o x ht t p : / / w w w. i t t o o l b o x . c o m Pub/No Booth X X X X X X X John Galt Solutions, Inc. ht t p : / / w w w. j o h n g a l t . c o m 43 1 X Kom International Inc. ht t p : / / w w w. ko m i n t l . c o m 34 0 XXXXXX Kurt Salmon Associates ht t p : / / w w w. k u r t s a l m o n . c o m 32 7 XXX XX Labelmaster Software ht t p : / / w w w. l a b e l m a s t e r. c o m 11 4 9 X LeanLogistics, Inc. ht t p : / / w w w. l e a n l o g i s t i c s . c o m 14 7 XXXX Liberty Information Management Solutions ht t p : / / w w w. l i b e r t y i m s . c o m 74 6 XXX Lilly Software Associates, Inc. ww w. l i l l y s o f t w a r e . c o m 44 3 X X X X Loftware, Inc. ht t p : / / w w w. l o f t w a r e . c o m 25 2 XXXXXXX Lo g i c To o l s ht t p : / / w w w. l o g i c - t o o l s . c o m 45 1 XXX Lo g i l i t y , Inc. ht t p : / / w w w. l o g i l i t y. c o m 64 2 XXXXXX Lo g i M a x ht t p : / / w w w. i c s f l . c o m 745 & 747 X X X X X X X Logistics Management ht t p : / / m a n u f a c t u r i n g. n e t / l m / 12 2 9 XXXXXX Lowry Computer Products, Inc. ht t p : / / w w w. l o w r y c o m p u t e r. c o m 11 4 8 X XX LXE Inc. ht t p : / / w w w. l x e . c o m 34 8 XXX XXX LxLi International Ltd. ht t p : / / w w w. l x l i . c o m 74 2 XXX MagicLogic Optimization Inc. ht t p : / / w w w. m a g i c l o g i c . c o m 75 1 XXXX Magness Vertical Systems, Inc. ht t p : / / w w w. m v s v a r. c o m 12 4 9 XX X X Manhattan Associates ht t p : / / w w w. m a n h . c o m 43 5 XXXXXX Manugistics, Inc. ht t p : / / w w w. m a n u g i s t i c s . c o m 73 3 XXXX X MARC Global ht t p : / / w w w. m a r c g l o b a l . c o m 53 8 XXXXXXX Matrics Inc. ht t p : / / w w w. m a t r i c s . c o m 32 6 XXXXXXX MicroAnalytics Logistics Software ht t p : / / w w w. b e s t r o u t e s . c o m 63 9 X Mincron Software Systems ht t p : / / w w w. m i n c r o n . c o m 42 7 XXX X Modern Materials Handling ht t p : / / m a n u f a c t u r i n g. n e t / m m h 12 2 9 XXX XX National Highway Carriers Directory, Inc. ht t p : / / w w w. n a t i o n a l - h i g h w a y. c o m 64 7 XXXXXXX National Traffic Service ht t p : / / w w w. n a t r a f f i c . c o m 34 3 X Navis LLC ht t p : / / w w w. n a v i s . c o m 84 3 XXXXXXX New Millennium Management & Associates, Inc. 34 6 XXX X X Next Generation Logistics, Inc. ht t p : / / w w w. n e x t g e n e r a t i o n . c o m 54 4 XXXX X Noax Technologies Corp. ht t p : / / w w w. n o a x . c o m 52 5 XXX OA T ht t p : / / w w w. o a t s y s t e m s . c o m 11 3 9 X X Paragon Software Systems ht t p : / / w w w. p a r a g o n r o u t i n g. c o m 84 5 XXX Parcel Shipping & Distribution ht t p : / / w w w. p s d m a g. c o m Pub/No Booth X X X X Penton`s Logistics Today & Material ht t p : / / w w w. L o g i s t i c s TO D AY.com 62 9 XXXXXXX Handling Management & www.M H M o n l i n e . c o m Peo p l e S o f t ht t p : / / w w w. p e o p l e s o f t . c o m 62 5 XXXXXX Pinnacle Distribution Concepts, Inc. ht t p : / / w w w. f r e i g h t l o g i c . c o m 53 3 X Pitney Bowes Distribution Solutions ht t p : / / w w w. p b d i s t r i b u t i o n s o l u t i o n s . c o m 10 3 3 XXX PR I N T R O N I X ht t p : / / w w w. p r i n t r o n i x . c o m 64 0 XXXXXXX Production Modeling Corporation ht t p : / / w w w. p m c o r p . c o m 73 1 X Prophesy Transportation Software, Inc. ht t p : / / w w w. p r o p h e s y l o g i s t i c s . c o m 25 3 X X X Provia Software ht t p : / / w w w. p r o v i a . c o m 54 0 XX XXX DC Expo 2004 List of Exhibitors

Co m p a n y Website Address Booth # Su p p l y C h a i n Lo g i s t i c s Di s t r i b u t i o n Tra n s p o r t a t i o n WM S RF I D 3r d - P arty Logistics

Psion Tek l o g i x ht t p : / / w w w. p s i o n t e k l o g i x . c o m 74 3 X X QS S I ht t p : / / w w w. q s s i - w m s . c o m 32 5 XXXXXXX Quantronix, Inc. ht t p : / / w w w. c u b i s c a n . c o m 33 4 X XX X Red P oint Systems, Inc. ht t p : / / r e d p o i n t s y s t e m s . c o m 74 4 XXX XX Red Pr a i r i e ht t p : / / w w w. r e d p r a i r i e . c o m 23 0 XXXXXX RF - Depot ht t p : / / w w w. r f -d e p o t . c o m 94 4 XXXXXXX RHODIANA Corp. ht t p : / / w w w. r h o d i a n a . c o m 63 3 XXXXXXX Robocom Systems International Inc. ht t p : / / w w w. r o b o c o m . c o m 55 4 X XXX Royal 4 Systems ht t p : / / w w w. r o y a l 4 . c o m 55 4 XXX XXX RT Systems, Inc. ht t p : / / w w w. r t -s y s t e m s . c o m 43 0 XXX X X S3 Group, Inc. ht t p : / / w w w. s 3 g r o u p i n c . c o m 11 4 6 XXXXXXX Savant Software, Inc. ht t p : / / w w w. s a v a n t w m s . c o m 53 0 X XXXXX SCI International ht t p : / / w w w. s c i w w. c o m 10 4 3 X XX Secure Info Imaging ht t p : / / w w w. s e c u r e i n f o i m a g i n g. c o m 11 3 4 XXXXX X SmartLinc, Inc. ww w. s m a r t l i n c . n e t 24 0 XXXXXXX SM C _ ht t p : / / w w w. s m c 3 . c o m 63 7 XX X X So f t e o n ht t p : / / w w w. s o f t e o n . c o m 44 8 XXXXXXX Software AG, Inc. ht t p : / / w w w. s o f t w a r e a g u s a . c o m 10 4 0 X X Stratix Corporation ht t p : / / w w w. s t r a t i x c o r p . c o m 85 5 XXX XX Supply & Demand Chain Executive ht t p : / / w w w. s d c e x e c . c o m 64 5 XXXXXX Supply Chain Management Rev i e w ht t p : / / m a n u f a c t u r i n g. n e t / s c m / 12 2 9 XXXXXXX Supply Chain Systems Magazine ht t p : / / w w w. i d s y s t e m s . c o m Pub/No Booth X X X X X X X Su p p l y C h a i n M a r ke t . c o m ht t p : / / w w w. s u p p l y c h a i n m a r ke t . c o m Pub/No Booth X X X X XX Sw i s s l o g ht t p : / / w w w. s w i s s l o g. c o m 23 7 XXX XXX Symbol Technologies, Inc. ht t p : / / w w w. s y m b o l . c o m 42 5 XXXXXXX Systems Application Engineering (SAE) ww w. s a e s y s t e m s . c o m 65 0 XXXXXXX TCLogic, LLC ht t p : / / w w w. t c l o g i c . c o m 10 5 3 XXX Tecsys Inc. ht t p : / / w w w. t e c s y s . c o m 85 0 XXXXXXX Terra Tec h n o l o g y ht t p : / / w w w. t e r r a t e c h n o l o g y. c o m 10 5 2 XX The Argent Consulting Group, Inc. ht t p : / / a r g e n t c o n s u l t i n g. c o m 83 2 XXX The Internet Tru c k s t o p ht t p : / / w w w. t r u c k s t o p . c o m 22 7 X X The Kennedy Group ht t p : / / w w w. ke n n e d y g r p . c o m 35 5 X The LDS Corporation ht t p : / / w w w. l d s i n c . c o m 65 1 XXX X X The Traffic Club of Chicago tr a f f i c -c l u b . o r g 94 8 XXX X TOM ZOSEL ASSOCIATE S ht t p : / / w w w. t z a c o n s u l t i n g. c o m 34 4 XXXXX TOPS Engineering Corp. ht t p : / / w w w. t o p s e n g. c o m 52 8 XXXX Transportation Technical Services ht t p : / / w w w .ttstrucks.com Pub/No Booth X Trendset Inc. ht t p : / / w w w. t r e n d s e t i n c . c o m 10 3 6 X X Tre n S t a r ww w. t r e n s t a r. c o m 73 9 XXXX X Tri - Star Consulting, Inc. ht t p : / / w w w. t r i s t a r i n c u s a . c o m 12 5 0 X XX Truck Dispatching Innovations, Inc. ht t p : / / w w w. t d i n n o v a t i o n s . c o m 54 3 XXXX TSi Logistics, Inc. ht t p : / / w w w. t s i l o g i s t i c s . c o m 10 4 9 XX X X UB Computer, Inc. ht t p : / / w w w. u b c o m p u t e r. c o m 10 5 2 XX Unified Bar Code & RFID, Inc. ht t p : / / w w w. u n i f i e d b a r c o d e . c o m 53 0 XXXXXXX Unverisal Label Tec h n o l o g i e s ht t p : / / w w w. u l t b a r c o d e s . c o m 55 5 X X Varsity Logistics ht t p : / / w w w. v a r s i t y n e t . c o m 34 5 XX X Venture Research, Inc. ht t p : / / w w w. v e n t u r e r e s e a r c h . c o m 25 4 X X XX Vesatile Mobile Systems ht t p : / / w w w. v e r s a t i l e m o b i l e . c o m 93 6 XXX X Vizional Technologies, Inc. ht t p : / / w w w. v i z i o n a l . c o m 65 4 X Voc o l l e c t ht t p : / / w w w. v o c o l l e c t . c o m 63 0 XXX Vox w a r e ht t p : / / w w w. v o x w a r e . c o m 72 5 XX Waer Systems, Inc. ht t p : / / w w w. w a e r s y s t e m s . c o m 45 4 XX XXX Warehouse Equipment, Inc. ht t p : / / w w w. w e i n e t . c o m 25 4 XXX X Westfalia Technologies, Inc. ht t p : / / w w w. w e s t f a l i a u s a . c o m 73 0 XXX XX William Frick & Company ht t p : / / w w w. f r i c k n e t . c o m 84 8 X X Williams & Associates, Inc. ht t p : / / w a i o n l i n e . c o m 25 1 XX X WITRON Integrated Logistics Corporation ht t p : / / w w w. w i t r o n . c o m 74 8 XX X Working Machines Corporation ht t p : / / w w w. w o r k i n g m a c h i n e s . c o m 35 2 XXX XXX World Trade Magazine ht t p : / / w w w. w o r l d t r a d e m a g. c o m 83 4 XXXX XA TA ht t p : / / w w w. x a t a . c o m 83 6 X Yantra Corporation ht t p : / / w w w. y a n t r a . c o m 42 8 XXXXXXX DB M J 48 Circle Number 77 The Distr ibution Business Ma n a g ement Confere n c e Ma y 18–20, 2004 Hall A, Navy Pier,

Chicago, Illinois Circle Number 78 50

Industry Article:

prevent waste have successfully managed loss for itself and its Kraft Foods – customers with some tangible re s u l t s . Su s t a i n a b l e Two initiatives illustrate this: (1) Damage control for products in the supply chain Logistics Leads (2) Food bank donations A third initiative, disaster relief and preparedness, demonstrates to Long Ter m the company‘s understanding that sometimes nature or human error cause catastrophes that throw businesses and families Pr o f i t a b i l i t y into chaos. Here, Kraft uses its expertise to put in place an infra- he preamble to the Kraft It covers not just financial or eco- structure to be able to react Foods environmental poli- nomic performance, but also quickly when such an unexpect- Tcy states: “At Kraft Foo d s , social and environmental impact. ed emergency occurs. preservation and protection of In c r e a s i n g l y , companies will 1. Damage Control our natural resources and the find themselves reporting how Kraft has made a commitment environment are fundamental to much energy they consumed, as a leader in the industry to the success and sustainable what their CO2 emissions were, identify and adopt measures that growth of our business and to how much solid waste their prevent product damage that the health of our communities. packaging generated, the leads to waste. Product damage We will conduct our business in environmental and human rights is an ongoing problem for the an environmentally responsible impact of their supply chain, their food industry, from processor to ma n n e r .“ Specific guidelines for diversity statistics, the charitable store shelf, and these measures achieving this environmental contributions they make, etc., are intended to prevent product pledge follow the preamble. ad infinitum. becoming unsaleable, and This policy reflects that today, Kraft recognizes that over the ultimately wasted. the notion of accountability has long term, some sustainable In 2001, total unsaleable losses expanded. It extends upstream, practices can increase product in the warehouse delivered food through the supply chain, as well quality and actually reduce cost. and grocery distribution channel as downstream, across consumer The company‘s efforts to span totaled $2.5 billion, which usage and disposal of products. the value chain in its initiatives to represents approximately 1.14% of sales. Product damage com- prised 63%, or $1.6 billion, of the total. The remaining portion -- approximately $0.9 billion -- was due to out-of code, discontinued and seasonal product. Although these figures are significant, the good news is that 2001 results show a 4% improvement over 2000. Kraft is the largest food compa- ny in North America, with hun- dreds of shipping sites and thou- sands of people handling its prod- ucts. In an effort to define and solve the problem, the company lo o k ed at two primary avenues for reducing product damage: pack- aging and palletizing standards, (L to R) Keith Helferich, Ph.D., Michigan Central University, Rick Blasgen, V.P., Kraft Foods, North America Supply Chain, (at time of photo), Amy Thorn, Executive Director and Jack Thorn, Chairman, DBM Association. and in-transit shipping practices. DB M J 52 DB M J

Packaging and Pal l e t i z i n g ership (with incentives for which helped to maintain focus. St a n d a r d s im p r o v e m e n t ) When new products with a A cross-functional task force (3) Consistent training applicable unique set of handling needs convened in 1999 to improve cur- not only at Kraft, but with were introduced, a rapid response rent packaging designs and customers and carriers team applied the principles establish standards for palletiza- according to set standards for the Tools and Techniques: new products. tion. To improve packaging What works? designs, team members identified Program Offered to Others those products that experienced Simply put, this solution con- significant crushing or other types sists of identifying the best The very complexity and size of of damage to the outer case. means of protecting full truck- Kraft make its learning applicable Numerous improvements fol- loads of Kraft products from in- to others in the food industry. lowed the team‘s recommenda- transit damage, and then commu- Recognizing this, and the huge tions, including replacement of nicating these findings to the indi- impact this program could have if paperwrap with recyclable corru- viduals who need to apply these broadly applied, Kraft offers the gated, upgrades to existing box practices. However, for a compa- training film to customers, suppli- strength, new gluing or taping ny like Kraft, with many different ers, and other food businesses methods, and in some cases a types of products requiring differ- through GMA‘s publication center. complete packaging redesign. ent handling meth- In addition to packaging ods, standards improvements, the task force customized by established new palletizing stan- plant and dards to ensure proper palletiza- groups of prod- tion to prevent product damage ucts became during routine shipping and han- ne c e s s a r y . The dling activities. Specifically, Kraft standards were adopted a new internal policy for based on five prin- packaging and palletization, based ciples of load protec- on guidelines issued by Grocery ti o n . 2. Food Bank Donations Once formalized, the practices Manufacturers of America (GMA). Kraft believes there is no human were incorporated into a training In addition, Kraft eliminated the need more basic than hunger and video, which dramatically built the use of clamp trucks at some facil- that hunger relief is fundamental case for making changes to tradi- ities, and converted these opera- to ensuring human dignity. tional warehouse loading prac- tions to forklifts to prevent dam- Hunger in America is a problem tices through the use of visual age caused by clamping. These with a solution, but food banks displays of in-transit damage. new palletizing standards and and food rescue organizations practices have resulted in a reduc- Establishing Internal cannot realize it alone. As the tion of product damage for both Ow n e r s h i p na t i o n ‘s largest food company, Kraft and its customers. Initial resistance and unwilling- Kraft is committed to helping end In-transit Shipping ness to accept responsibility hunger in America. Together with Pra c t i c e s proved early obstacles to imple- its parent company, Altria Group, mentation. But with senior man- Inc., Kraft is the largest corporate In addition to the packaging and donor to hunger programs in the palletization task force, another agement support, new financial incentives to plants and distribu- United States. core team, of members with a In 2002, Kraft provided 23.6 mil- broad base of supply chain exper- tion centers together with new documentation practices over- lion pounds of food to food banks tise, convened in 1999 to pursue across the country. Additionally, solutions to reduce product dam- came the reluctance to deviate from the status quo. through grant making, Kraft age during shipping, or in-transit assists food banks and food res- damage. This team identified Consistent Tra i n i n g cue organizations with infrastruc- three key solutions to reduce in- Nearly every employee at every ture and capacity building, such transit damage and successfully as funds for refrigeration, trans- persuaded senior management to Kraft location from which prod- ucts ship viewed the video. It was portation, food handling, and implement their suggestions: other necessary equipment. (1) Tools and techniques to mini- also made part of new employee orientation. Progress charts, pho- To highlight the needs of food mize in-transit damage banks and to solicit engagement (2) Establishment of internal own- tos and success stories were posted or shared at each site, from food industry professionals,

53 Kraft supply chain leaders and Kraft has taken a leadership role disaster relief are channeled. Am e r i c a ‘s Second Harvest teamed in helping A2H spread the mes- A d d i t i o n a l l y, Kraft provides up to develop and present a sage: More donations and more assistance wherever possible hunger study with recommenda- efficient food banking operations with refrigerated trailers for relief tions for involvement. Tog e t h e r means more resources available efforts in areas without electrici- with America‘s Second Harvest, to feed the hungry. ty due to a weather emergency. Kraft has taken a leadership role in Lo c a l l y, employee volunteers fre- informing others in the food sup- 3. Disaster Relief and quently mobilize after a weather ply chain about a variety of oppor- Pre p a r e d n e s s i n c i d e n t . tunities to assist the “hunger sup- Kraft is actively involved in dis- With plants in communities of ply chain.“ One venue that reached aster relief through partnership various sizes across North across suppliers, processors and with the Red Cross, in the U. S. America, Kraft strives to develop customers was the 26th Annual and worldwide. Kraft provided working relationships with local Conference of the War e h o u s i n g approximately 600,000 pounds emergency responders. As part Education and Research Council, of non-perishable snack and bev- of this, Kraft properties often where both Kraft and A2H erage items for 16 different dis- host training exercises for fire- addressed participants. aster situations in the United fighters, hazmat teams and joint States, including tornadoes, drills to ensure preparedness. Food Access floods, and wild fires. Kraft Of course, there are costs to Processors, distributors, retail- provided similar food donations Kraft in implementing the activi- ers, and other potential sources of to the Red Cross for search ties cited above – damage pre- food must seek opportunities to efforts following the Columbia vention, food distribution to the provide wholesome food that shuttle disaster, tornadoes, and h u n g r y, and disaster prepared- might otherwise become waste: support for troop deployment ness and relief. But, the compa- - Food approaching the end of sites in the U. S. This assistance ny firmly believes that in the its useful code life occurs through an established end, a greater cost to Kraft and - Packaging or filling errors infrastructure within the compa- society would be incurred by fail- - Excess inventories, bulk food, ny through which all requests for ure to act and to lead. food ingredients As added encouragement, potential donors are told of sav- Congratulations to the 2004 Circle of ings possibilities on warehousing, Ex cellence Award Win n e r disposal and handling costs; tax deductions; an extensive tracking This year‘s prestigious Circle of Excellence Award is being system to help ensure that prod- presented to Dell for excellence in the computer industry. uct will not reenter the market ; The award ceremony will be held at the DBM 2004 Conference and protection for donors through on May 19, 2004 in Chicago, Illinois. the Bill Emerson Good Samaritan As a recognized symbol of quality, the Circle of Excellence Award Donation Act. is presented by the Distribution Business Management Association (DBM) to leading companies in various industries, Non-food Items, Space who represent the highest standards of quality and provide a and Expertise model for all businesses. Moreover, it signifies the important Boxes, bags, pallets and stretch attributes and characteristics of Consistency, Integrity, wrap can all contribute to an effi- Res p o n s i b i l i t y , Commitment, Leadership and Excellence which cient hunger supply chain. Many the people in an organization exhibit and uphold. businesses that could assist in Past award recipients include the following companies: this capacity are often unaware of their potential. Kraft and A2H rec- • 2003 Kraft Foods for excellence in the food industry. ommended that warehouses pro- • 2002 Lockheed Martin for excellence in government vide space for food donations and lo g i s t i c s . cr o s s -do c k i n g , if possible, trans- • 2001 Coors Brewing Company for excellence in the portation firms consider offering beverage sector. hauling to fill empty miles, and • 2000 Roadway for excellence in the trucking sector. consulting services offer assis- • 1999 Sears & Roebuck for excellence in the retail sector. tance to food banks with layout • 1998 UPS for Global Supply Chain Management. and set-up, as well as help find ways to streamline the movement • 1997 Mercedes Benz for Excellence in Manufacturing. of donations. DB M J 54 Circle Number 79 Spotlight On Education & Res e a r c h : A quarterly review of leading educational and research institutions in the field of distribution, logistics, and supply chain management. grams, or 93 doctoral programs. To date, the university has granted Logistics and more than 541,000 degrees. Among the University‘s fifteen colleges is the Fisher College of Supply Chain Business. Established more than 80 years ago, and named in honor Ma n a g e m e n t of alumnus Max M. Fisher in 1993, the Fisher College of Business rates among the world‘s top busi- Education at Ohio ness schools. The college is com- mitted to developing exceptional business leaders who meet the State University challenges of a changing global ec o n o m y . Along with its wide array By Dr. Thomas Goldsby, Assistant Professor of Marketing & of undergraduate degree pro- Logistics, Fisher College of Business, The Ohio State University. grams, the Fisher College of Business offers full-time, part-t i m e hartered in 1870 and offi- campus is located in Columbus, a and executive MBA, Master of cially opened in 1873, The thriving metropolitan area with a Ac c o u n t i n g , and Master of Lab o r COhio State University is a population of more than 1.5 million and Human Resources programs. comprehensive land-grant institu- people. The Columbus campus The undergraduate business pro- tion dedicated to advancing the has an enrollment of nearly 50,000 gram was ranked 14th in the well-being of the people of Ohio students coming from all corners nation in U.S . News and Wor l d and the global community through of the world. Students may earn Rep o r t ‘s 2003 annual survey of the creation and dissemination of degrees in any one of 174 under- Am e r i c a ‘s Best Colleges. The MBA knowledge. Ohio State‘s main graduate majors, 111 master‘s pro- program was rated 19th in the nation in that same report. The program is recognized for its renowned faculty, state-of - t h e- a r t facilities, challenging academic curricula, and small, intimate class sizes. Logistics Degree Pro g r a m s at OSU For more than four decades, The Ohio State University has been a center of academic excellence in business logistics. The objectives of the Logistics program are twofold: • To offer a world-class logistics educational experience to our undergraduates, MBA students and doctoral students, as well as participants in executive educa- tion programs; and • To conduct innovative logistics research with leading-edge firms and institutions to advance learn- ing within the discipline and ensure the vitality and validity of the curricula. One of the first academic institu- tions to offer courses and degree programs in Logistics, OSU has maintained its presence as a

56 DB M J

leader in logistics research and career field and to provide a back- • Operations Management education. The undergraduate pro- ground against which students Information Systems gram was ranked 3rd among may realize the practical import of • Strategic Design of Logistics and Supply Chain classroom work in real world situa- Op e r a t i o n s / L ogistics Systems Management programs in the tions. Students may also gain valu- • Customer Driven 2003 U.S . News and World Rep o r t able experience through the activi- Manufacturing in the Global rankings. The MBA Logistics pro- ties of the Transportation and Ma r ke t gram enjoys comparable renown. Logistics Association (TLA). The • xQuality Management Housed in the Department of TLA (www.osutla.com) is the stu- Li k e the undergraduate program, Ma r k eting and Logistics, logistics dent organization dedicated to full-time MBA students are strong- degrees can be earned at the helping students understand the ly encouraged to pursue internship undergraduate, graduate, or doc- changing ideas, roles, and values opportunities between the first toral level. Undergraduates may of logistics in the post-co l l e g e and second years of the program. earn a Bachelor of Science degree business environment. Students may gain additional per- with a major in Transportation and MBA students may also select spective through involvement in Logistics (T&L). Logistics as a core area of study. the Operations and Log i s t i c s The principal focus of the major The Operations and Log i s t i c s Management Association (OLMA), is the management and design of Management (OLM) major at OSU the MBA student organization ded- systems to move goods and peo- is offered jointly by the Operations icated to providing students with a ple. Primary emphasis is placed on Management and Logistics faculty. broader understanding of the understanding how transportation, By assuming a combined opera- opportunities, career paths, trends, inventory management, warehous- tions/logistics perspective, the pro- and current issues in the business in g , materials handling, purchas- gram shows how the flow of all environment. The OLMA in g , communications systems, and goods within and between firms (h t t p : / / s t u d e n t . c o b . o h i o - facility location must be coordinat- can be effectively and efficiently state.edu/olm) provides guest ed to enable firms to minimize the managed. This integrated focus sp e a k ers from industry, faculty costs of obtaining supplies of mirrors the approach that success- interaction, tours, seminars, and materials for their own use and to ful firms use to manage their busi- social events for student mem- meet their customers‘ service nesses. Study in OLM prepares bers. In addition, a resume book requirements. In addition to the students for careers in manufactur- is prepared each year to facilitate core courses of the Business pro- in g , materials management, ser- job searches for internships and gram, Transportation and Log i s t i c s vice operations, merchandizing, full-time employment. majors are required to take the fol- third-party logistics, and manage- In addition to the undergraduate lowing three courses: ment consulting. The curriculum and MBA programs, Ohio State is • Logistics Management provides an appropriate blend of one of the few schools to offer a • Analysis and Design of theory and principles, tools and Ph . D . in Logistics. The doctoral Logistics Systems techniques, and hands-on experi- program prepares candidates for • Transportation Management ence that equip the student to deal careers at other top academic with the challenges of manage- Students may then select two institutions, pushing the bound- ment in this quickly evolving field. courses from the following list to aries of knowledge in the disci- These goals are met through the complete the program: pline and preparing future busi- use of lectures, case analyses, • Logistics Decision Making ness leaders in the field. co m p u t e r -based exercises, execu- • Supply Chain Management tive guest lecturers, on-site visits, • Quality Management Ex ecutive Education in and field study projects. • Geography of Transportation Logistics and Supply Chain Students pursuing an OLM • Locational Analysis Ma n a g e m e n t major take a required course in • Marketing Research Educational opportunities in Logistics Management, and then • Corporate Fin a n c e Logistics and Supply Chain select either Operations Planning • Intermediate Microeconomic Management at OSU are not limit- and Materials Management or Th e o r y ed to the degree programs Analysis and Design of Log i s t i c s described above. The Ohio State In addition to the curricular Systems as their second base faculty offer several non-credit pro- guidelines above, T&L majors are course. Students then take any grams each year for managers and strongly encouraged to seek three of the electives listed below: executives interested in advancing internships during their junior and • Field Problems in Log i s t i c s their knowledge of theory and senior years. This professional • Supply Chain Management leading practices in Logistics and experience is designed to enhance • Service/Quality Management Supply Chain Management. The the student‘s understanding of the

57 following courses are scheduled The Department of Market i n g ducts relevant business research for 2004: and Logistics is home to two valuable to supporting organiza- research organizations devoted to tions, students, and faculty. Their • Logistics Management Logistics and Supply Chain work focuses on increasing Program (July 12-16, 2004) Management. The Global Supply knowledge in the public domain • Transportation Management Chain Forum, directed by in the form of working papers, (September 21-23, 2004) Professor Douglas M. Lam b e r t , presentations, and publications. Programs may also be custom provides the opportunity for lead- Supporting organizations have designed to serve the needs of ing practitioners and academics immediate access to findings and individual companies. More infor- to pursue the critical issues relat- viewpoints through working mation on open enrollment or ed to customer satisfaction and closely with the specifically- customized programs at OSU can operational excellence indepen- ta s k ed research teams. be found at: dent of specific functional exper- While OSU has long been a ht t p : / / f i s h e r .osu.edu/exec or by tise. The Forum supports leader in Logistics education and contacting Susan Davis at 614- research and publications research, the program strives for 292-0917. focused on real-world applica- ever greater achievements in Executive education programs tions and experience of particular knowledge creation and dissemi- are also offered jointly with the relevance to its corporate mem- nation in the future. University of North Florida on the bers, who are senior executives following topics: of firms recognized as being on For More Information • Supply Chain Management the leading edge of their respec- For more information regarding (April 26-30, 2004) tive industries. The Supply Chain logistics education and research • Measuring Performance in the Management Research Group, at The Ohio State University, con- Supply Chain (May 12-14, 2004) led by Professors Bernard J. La tact Thomas Goldsby Information on these programs Londe and James L. Ginter, con- (g o l d s b y @ c o b . o h i o -state.edu). can be found at: ht t p : / / w w w. u n f. e d u / d e p t / l o g i s t i c s / or by contacting Marian Kuhn at 904-620-2588. Research and Outreach The Ohio State Logistics faculty conducts theoretical and applied research in several critical areas. The program is highly regarded for its thoughtful, discipline- advancing contributions. Several faculty members have received international recognition for their research. The diverse studies of the faculty offer comprehensive coverage of topical areas in logis- tics and supply chain manage- ment. OSU faculty have pub- lished articles recently on the fol- lowing topics in top journals: sup- ply chain management process- es, supply chain collaboration, supply chain mapping, logistics ou t s o u r c i n g , merge-i n - t r a n s i t mo d e l i n g , effects of retail stock- outs, and logistics research meth- ods. In addition, The Ohio State University edits and publishes The International Journal of Logistics Management (w w w .ijlm.org).

Circle Number 80 DB M J 58 Circle Number 81 Thought Leadership Article:

partners, have to find a better way to work together. Cu s t o m e r The genesis of a far-reaching sup- ply chain initiative must be centered squarely on the customer. This is Se rvice: where major victories will be scored. Through it all, we experience our share of successes and failures, but Key to a the lessons learned are invaluable. We learn what it really takes to implement a supply chain manage- Su c c e s s f u l ment process. We also learn that it consists of much more than sys- tems and functional sandboxes. We learn that SCM is about moving Supply Chain from being internally focused and functionally driven to being external- ly focused and process driven. We by Mr. Rick D. Blasgen, Senior VP Integrated Logistics, ConAgra Foo d s K discover the true meaning of perse- verance and the gut-wrenching feel- hat a wonderful time to the way of variety, and are buying ing of having to hold back just when be in the Logistics and food from several channels. you want to push ahead. We learn WSupply Chain profes- Customers have consolidated, that passion is critical if we are to be sions. In the ever-changing food driving efficiencies in their supply su c c e s s f u l . in d u s t r y , the dynamics continue to chains, which has led to manufactur- Satisfying customers must always drive logistics professionals toward er consolidations as well. remain the unwavering objective. more creative, innovative supply Customers also demand cus- Above all, SCM begins with a vision chain solutions for our customers. tomized products and services as and core values. From this platform, We must continue to satisfy the they focus on differentiating them- we define supply chain manage- needs of our customers at the low- selves from competitors. The result ment as, “a business practice that est total delivered cost, and do this is an increase in the need for collab- begins with the customer, integrat- while reducing the costs and inven- oration and flexibility. Manufacturers ing systems and business process- tory our supply chain consumes. are under huge pressure to reduce es from forecasting through To say the food industry is dynam- costs, increase supply chain agility, demand planning, resulting in an ic is an understatement. Consumers and improve speed to market. We, effective integration of purchasing, are continuing to demand more in both internally and between trading order management, manufacturing, and transportation to the customer.“ We also state clearly that our objec- tive is to be the low cost supplier, not just manufacturer, to our cus- tomers. Effective Sales and Operations planning process are crucial. The business process begins with a fore- cast. Representatives from produc- tion planning, sales, operations, ma r ke t i n g , finance, plant manage- ment, and logistics must formally meet monthly to ensure that agree- ment exists with regard to the fore- cast plan. The focus here is on align- ing the availability of materials/pack- aging supplies and production capa- bi l i t y . The team scrutinizes the pro- motional calendar and any changes in timing to identify potential trouble spots such as line conflicts, availabil- ity of ingredients, and machine

60 DB M J

ca p a c i t y . The logistics group has grated systems and metrics. All key internal processing time into inven- complete control, however, to deter- supply chain participants have to r y -in-motion. This will provide a mine the forecast that is sent over access to real (or near real) time more focused network that takes to the Distribution Req u i r e m e n t s data that influences the perfor- advantage of scale, resulting in Planning (DRP) system, and mance of the supply chain. This is lower total supply chain costs. becomes the foundation for produc- critical if we wish to measure our In summary, the term supply tion scheduling and deployment to performance as one supply chain, chain management does not ade- the distribution center network. driven from a common data source quately describe the complex chal- Weekly operational meetings take with fully linked performance indica- lenges faced in providing the cus- place where key participants jointly tors. The technology also provides tomer with value-added products resolve conflicts that might exist the ability to perform enterprise- and services while concurrently between the recommended produc- wide supply chain modeling, a must meeting a company‘s goals and tion schedule and manufacturing given ever-changing portfolios. objectives. Given all of the elements capabilities. The team understands Opportunities continue to develop involved: technology, communica- that unexpected problems can occur within the supply chain. This is a tions, corporate cultures, internal and that they must communicate journey that evolves continuously, goals, customer requirements, the these issues without delay so that given the speed at which techno- dynamics of SCM often prove mani- an alternative plan can be agreed logical advances and market p l a c e fold and complex. Not surprisingly, upon. Common goals and objectives dynamics materialize. For example, failures will occur. Through it all, drive the incentive system, ensuring the successes the industry achieves ho w e v e r , the benefits from a suc- all participants do not operate with on finished goods management can cessful supply chain journey are conflicting measurement systems. be transferred to raw materials and substantial and sustainable. When Tod a y , through new introductions packaging supplies. We can employ nurtured and assimilated, SCM can and a general proliferation of prod- radio frequency technology to more yield remarkable rewards. ucts, manufacturers manage many effectively and more individual stock keeping units efficiently manage (S K Us) than in the past. Although inventories and manufacturing capacities have the flow of infor- improved, there has not been a cor- mation. We can responding increase in the manu- develop trans- facturing flexibility due to the portation strate- required capital investment. Many gies that link the manufacturing facilities operate with inbound flow of high speed equipment intended for in g r e d i e n t s / p a c k - long runs, with few changeovers. aging and the out- Ad d i t i o n a l l y , progressive cus- bound flow of fin- tomers are operating with fewer ished goods, inventories than in the past. They leveraging trans- have altered their buying cycles and portation capabili- are presenting manufacturers with ties and ultimately smaller orders requiring more fre- providing lower quent deliveries. This requires plan- costs and ning to become more intense and- improved service. time constrained, with a true cus- Given improved tomer and lowest landed cost supply chain link- focus. We must focus our supply ages, we then can chain to respond to customers eliminate internal ordering more items in smaller order cycle time quantities with less lead-time. The and turn that time best way to accomplish this without over to transporta- huge capital expenditures may be tion, which allows through improved planning. us to minimize To that end, the progressive total distribution approach is to establish a technolo- costs. The cycle gy foundation that provides end-to- time reduction end, common integrated systems may allow us to and functionality. This technology constrict our net- foundation is built on common, inte- work and convert Circle Number 82

61 Circle Number 83 62 Start making plans to attend DBM2005 Ba l t i m o r e At the Inner Harbor, June 7-9, 2005

DBM co-locates with the Eastern Material Handling Show for an industry double-header at the Baltimore Convention Center. If you’re in the Distribution and Logistics industry don’t miss the 13th Annual Conference, DBM 2005! For more information about exhibiting or attending DBM 2005 call 717-295-0033 or visit our website at www.DCenter.com

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