Global Logistics—April 2012

Global Logistics—April 2012

UPS Buys TNT Express, Shifting Global Balance UPS’ estimated $6.77-billion acquisition of Netherlands-based TNT Express puts to rest lingering speculation about the future of Europe’s number-two express mail provider following competition from FedEx and U.S. economic uncertainties. The move clearly places UPS in a new position of strength among its U.S. competitors and German expediter […]

Trends—April 2012

Trends—April 2012

Southern Accent: Supply, Demand Shifts Underline Southeastern Market A slow and steady stream of manufacturers and retailers has been feeling out the U.S. Southeast over the past decade. The trickle began in 2002 following the West Coast port strike, when many shippers swallowed losses and began exploring all-water alternatives from Asia to the U.S. hinterland. […]

Gaining More From 3PL Relationships

Whether your third-party logistics (3PL) service provider is a niche player or a global behemoth, you can take steps to draw more value from the partnership. Valerie Bonebrake, senior vice president at supply chain consulting firm Tompkins International, offers the following tips for getting your 3PL to do more for you. 1. Become an expert […]

Capt. Kazimir Kostrubala: Winging It

Capt. Kazimir Kostrubala: Winging It

Capt. Kazimir Kostrubala, USAF, is squadron operations officer and installation deployment officer with the 19th Logistics Readiness Squadron, 19th Airlift, at Little Rock Air Force Base (AFB) in Arkansas. He received the 2011 Beyond the Call of Duty: Logistician of the Year award for his work with the Institute for Defense and Business. Responsibilities: Supervising 550 […]

Trends—March 2012

Trends—March 2012

Nissan Rides Waves of Sustainability What could be more sustainable than a slow-steaming solar-powered ocean vessel transporting electric cars? Japanese automaker Nissan recently debuted the Nichioh Maru, a roll-on/roll-off coastal transporter ship that replaces traditional diesel-powered electricity generators found on most vessels with 281 photovoltaic solar panels mounted above deck. Global automotive manufacturers have been […]

Global—March 2012

Global—March 2012

New Zealand Port Tries to Strike Labor Balance As yet another reminder of how global labor strife can impact supply chains, the Ports of Auckland is trying to ease the pressure of three week-long strikes by the Maritime Union of New Zealand during the country’s busy export season. With an impasse expected to run through […]

Dan Lockwood

3PLs: Going Beyond Savings to True Value

Although shipping is an integral and expensive part of daily operations, other considerations often take priority. This may result in unhappy customers, increased shipping costs, and time wasted resolving issues. Companies looking to increase efficiency and maximize shipping dollars often turn to third-party logistics (3PL) providers, one-stop resources that facilitate shipping and logistics needs. 3PLs […]

Angela Yang

5 Ways to Excel in China

China and the wider Asia-Pacific market present an incredible opportunity for businesses seeking to manufacture products, source suppliers, or tap into end markets and sell products to consumers. But a strategic business shift into China takes careful consideration, especially when it comes to supply chain, warehousing, and distribution decisions. Here are five strategies for successfully […]

Daniel Griswold

Getting in the Zone: FTZs Fuel Improved Logistics

For decades, America’s foreign trade zones (FTZs) have provided a valuable platform for U.S. companies competing in global export markets. The FTZ program was established in 1934 to expedite and encourage foreign commerce. The nation’s 500 zones and subzones are secured areas, often near or adjacent to U.S. ports of entry, and are considered outside […]

Henry Hicks

Managing Supply Chain Disruptions

These are challenging times for supply chain managers. During the past few years, a range of events and natural disasters has severely disrupted global supply chains, causing far-reaching effects across diverse geographies and markets. Yet today’s logistics landscape also holds huge potential for supply chain technology developments that help organizations better manage catastrophic events, as […]

J. Anthony Hardenburgh

Understanding INCOTERMS 2010

An Inbound Logistics article in October 2003, “Understanding Incoterms,” does an excellent job of explaining the concept of Incoterms, why they are necessary and how they work. We’d like to bring this article up-to-date with a discussion of the changes to Incoterms that began in January 2011. To recap, Incoterms are an internationally accepted set […]

Keith Biondo

The Fifth P of Marketing

Why are the four Ps of marketing—Product, Price, Promotion, Place—important to logistics practitioners? Collaborating with suppliers and being tightly wired to customers and their demand signals helps craft the right Product. Reducing inventory, touches, and supporting infrastructure helps keep any Product’s Price lower. And when your Promotion materials arrive where they need to be, and […]

Broken Processes and Broken Promises

Commerce operates on promises. Some are formalized in contracts, others are informal agreements. The processes that allow your supply chain to keep those promises also need to be managed and controlled.

Improving the Order-to-Cash Cycle

When pursuing order-to-cash improvements, many companies try to speed receivables. Instead, they should focus on setting long-term goals and improving customer relationships. Scott Pezza, research analyst, the Aberdeen Group, offers the following tips for improving order-to-cash effectiveness. 1. Stay ahead of the game with pre-sales credit analysis. Identify potential problems early so you can either […]

Don Riley: Building for the Future

Don Riley: Building for the Future

Don Riley joined Denver-based ProBuild Holdings as executive vice president of supply chain and technology in November 2011. ProBuild is a leading supplier of building materials, with more than 430 locations nationwide. Responsibilities: Supply chain, manufacturing, information technology, enterprise resource planning (ERP) deployment. Experience: Developer, Singer-Link Flight Simulation; various positions culminating in account executive, Electronic […]

Trends–February 2012

Trends–February 2012

BNSF Lays Down Investment Plan Transportation infrastructure funding remains a hot topic on Capitol Hill while legislators continue to bandy about ideas to satisfy a long-overdue highway reauthorization bill. Out on the rails, however, the railroads continue to lead by example. BNSF Railway Company recently announced a planned 2012 capital commitment program of approximately $3.9 […]

Global Logistics–February 2012

Global Logistics–February 2012

UK University Engine Behind Carbon Tool The University of Sheffield has developed a supply chain environmental analysis tool (SCEnAT) to help manufacturers cut carbon emissions. The solution, which a number of international companies, including aircraft engine manufacturer Rolls-Royce, are already using, creates a database of carbon usage. It then arms businesses with ways to reduce […]

Software as a Service: Changing the TMS Landscape

Software as a Service: Changing the TMS Landscape

In 2009, a major cable manufacturer was faced with rising LTL costs, a disorganized supply chain, and a severe lack of reporting capabilities. The recovering freight market forced carriers to raise rates, and the manufacturer was told by its LTL carrier base it was at a "less than optimal operating ratio."  The shipper needed a […]

Elisha Tropper

The Truth Behind “Made in the USA”

Much talk across the American political and economic landscape centers around the importance of domestic manufacturing. Yet the issue and challenges of "Made in the USA" are so poorly understood that fatalistic hand-wringing and stump speech vitriol are obfuscating its rapidly emerging potential for near-term revitalization. Revitalization implies that there has been a reduction in […]

Tod Yazdi

Dealing With Daily-Deal Sites

New sales channels have enhanced supply chain complexity. Consumers who wish to buy a sweatshirt, for example, can make their purchase from the local mall; a big box retailer such as Walmart or Target; a catalog; a direct-response television ad or shopping network; or a Web site. Shoppers might also receive an email from Groupon, […]

Robert Byrne

Use Transportation Planning for Competitive Advantage

Learning to thrive in a volatile market goes beyond simply controlling its effects; successful companies must navigate challenges to create competitive advantage. Three factors add complexity for today’s transportation planners. First, the U.S. gross domestic product grew by two percent in the third quarter of 2011, with personal consumption up 2.3 percent. Increased spending creates […]

Wes Kemp: Portrait of a Leader

Wes Kemp: Portrait of a Leader

Wes Kemp recently retired after a 42-year career with LTL carrier ABF, where he rose from management trainee to lead the company as president and CEO. In this exclusive interview, Kemp shares his insights on the transportation industry, trucking regulation, technology, and his new role teaching the next generation of logistics leaders.

Keith Biondo

A Lost Art?

Strength of will. Toughness. The refusal to be deterred from the goal no matter what impediments stand in the way. Do we have much of that in our culture today? In our leaders? In our own businesses? Retracing the Trails of the Iron Horse takes us back to a simpler time in America’s past, where […]

Felecia Stratton

The Art of Integration

When supply chain disruptions occur, as they did last year during the Thailand floods, Japan earthquake and tsunami, and more, integration grows more important and grabs more attention. But the readers of this magazine have been practicing a higher form of integration for quite some time—demand-driven logistics. You try new modal mixes, new technologies, blending […]

Protesting Economic Ignorance

I’m a big fan of freedom of speech, the right to assemble, and peaceful protest to effect change. But when exercising these rights, protesters must be aware of unintended consequences and potential collateral damage.

Ensuring a Worry-Free ERP Implementation

The complaints most often associated with implementing an enterprise resource planning system (ERP) focus on flexibility, scalability, and upgrade and maintenance costs. To avoid snafus, do your homework before making a purchase. David F. Ross, senior manager, professional department, at APICS, The Association for Operations Management, offers this advice to guide your selection. 1. Consider […]

John Hodge: Feeding a Need

John Hodge: Feeding a Need

John Hodge is director of supply chain at Prince Agri Products, a global manufacturer and marketer of trace minerals and specialty feed ingredients to the animal nutrition industry. Based in Quincy, Ill., Prince Agri, a division of Phibro Animal Health Corporation, serves manufacturers, large integrated producers, and distributors/blenders in the livestock, poultry, and pet food […]

Aaron Baker

Global Supply Chain Strategy: Decision Points

As a former sea captain, I will never forget the first time I approached a junction buoy. This buoy is essentially a fork in the road, floating on the water, which marks where a waterway splits into two channels and indicates the preferred channel to transit. The options were: steer to the preferred channel and […]

Glenn Riggs

Responsive and Flexible Logistics Management Solutions for 2012 and Beyond

For many companies, the biggest challenge is that the world is changing, and they are asking, "How should we respond to the rapid growth in Asia and other emerging markets and manage the longer supply chains? And, how do we react to volatile fuel pricing and unpredictable demand, security issues and changing regulations affecting the […]

Danny Slaton

The Role of Cloud-Based LTL Content in Smarter Supply Chains

Cloud computing is quickly coming into its own: Its virtual, service-oriented, location-independent architecture is used across a whole host of industries to provide on-demand content for accurate decision making. The U.S. freight industry is quickly catching on to the value of actionable content delivered via the cloud, which easily lends itself to supporting effective supply […]

Eric Lail

Tough Economic Times Require LEAN Logistics Solutions

With economic pressures rising, companies must seek ways to evaluate their current state, and design a future state that surpasses their strategic goals and their customers’ expectations. Manufacturers, retailers and distributors are constantly working to improve their performance in quality, cost, delivery and service. With those goals in mind, forward-thinking organizations are pursuing LEAN assessments […]

Trends—January 2012

Trends—January 2012

Supply Chain Outlook: What’s Ahead? With the drop of the ball every New Year, it’s only natural to take out the Magic 8 Ball and divine what supply chain trends loom large on the horizon. Inbound Logistics editors and writers thumbed through their notes, clicked through their digital Rolodexes, and checked with sources to ascertain […]

Global Logistics—January 2012

Global Logistics—January 2012

Containers Aweigh The International Association of Ports and Harbors (IAPH) has joined the World Shipping Council, the International Chamber of Shipping (ICS), and the Baltic and International Maritime Council to encourage the International Maritime Organization (IMO) to amend the Safety of Life at Sea Convention (SOLAS). The measure would ensure that a ship and port […]

Jeff Vielhaber

Protecting Your Company Against Load Board Scams

Online load board scams have plagued the trucking industry for the past few years. Unfortunately, the lethargic economy means the problem will get worse before it gets better. Con artists are taking advantage of the fact that law enforcement has not made this issue a priority. Most scammers, in fact, are never prosecuted. On average, […]

Lynn A. Westmoreland

On a Roll: How a New Auto Plant Revived a Town

Six years ago, West Point, Ga., was on the brink of becoming a ghost town. More than 16,000 of the town’s factory jobs disappeared in the past 20 years, leading to high unemployment, a low standard of living, and a lost sense of community. But then, something amazing happened. In 2006, South Korean car company […]

Christian Rueckerl

Four Simple Questions for Improved Picking Performance

The process of receiving a product into inventory is just as important as picking or removing it from inventory. A solid slotting plan for receiving and storing products in a facility supports quicker and more accurate picking. Slotting is the concept of using data analysis to assign every part a location based on its specific […]

Dr. Oliver Hedgepeth

Online Education: An Ideal Medium for Logistics Professionals

Although continuing education offers logistics professionals many benefits, long hours, shift schedules, travel, and jobs in remote locations can make attending classes difficult. Online education has quickly emerged as a preferred learning method for logistics professionals. Today’s online classroom offers dynamic peer interaction, based more on real-world, practical applications than traditional theory. This focus enables […]

Karen Lobdell

Are You Effectively Managing Supply Chain Risk?

The events of Sept. 11, 2001, changed the way global businesses operate. The need for supply chain transparency has expanded beyond shipment tracking to include knowing trading partners’ background, the processes they handle, and the risk inherent at each stage of the supply chain from the factory floor to ultimate destination. Many regulations affect the […]

Brendan Lowe

5 Steps to Improving Food Product Traceability

Food safety represents a pressing concern for consumers and food retailers. Several high-profile incidents have cost billions due to sickened consumers, lost sales, and contaminated products. If these occurrences have taught U.S. retailers anything, it’s that the ability to react swiftly and appropriately to food-related issues is essential. The passage of the U.S. Food and […]

Trent Dye

How Carriers Keep Great Drivers Behind the Wheel

Motor carriers face a constant loss of qualified drivers, with some experiencing up to 150-percent turnover annually. Replacing a driver costs carriers $12,000 to $15,000 in separation, replacement, and training costs—a significant hit to their bottom line. High driver turnover also undermines carrier safety performance and customer service. To meet shipper demand, some carriers attempt […]

Sunny Nastase

Launching a Sustainability Initiative Can Be as Easy as 1-2-3

Over the past decade, sustainability has evolved from a buzzword to an established component of good business. While some organizations and industries may have operations that naturally lend themselves to sustainability efforts, all companies should be empowered to review their shipping and supply chain operations through the lens of sustainability. Sustainability programs are not one-size-fits-all […]

Integration: The Dawning of a New Era

Integration: The Dawning of a New Era

When baseball cap maker New Era’s business growth hit critical mass, it realigned its distribution operations, fusing Menlo Worldwide Logistics’ outsourced solutions with its global supply chain.

Integration: Call of the X-duty

Integration: Call of the X-duty

The X-duty trailer may look like traditional dry van equipment, but on the inside it’s a different story. Outside-the-box thinking allowed appliance maker Electrolux to connect its inbound and outbound shipment needs in one innovative transport solution.

Integration: Bucking Convention

Integration: Bucking Convention

Buck Knives’ lean integration has allowed the company to sharpen efficiencies in its manufacturing operation, increase output, and pull back production from China.

Tiger Grants: Road Work Ahead?

Tiger Grants: Road Work Ahead?

A third round of Transportation Investment Generating Economic Recovery (TIGER) stimulus, and arbitrary Department of Transportation distributions, demonstrate a long overdue need for U.S. freight transportation policy.

Scrutinizing Supply Chain Security

Scrutinizing Supply Chain Security

New approaches, mandates, and technologies are key links in the quest for global supply chain security. Here’s an inside look at what the logistics sector is doing to root out hidden threats.

Behind the Buzz About Flexible Automation

Behind the Buzz About Flexible Automation

Thanks to e-commerce, many distribution centers are now fulfilling a greater number of smaller orders—leaving some conventional materials handling automation systems behind the times. Is flexible automation the next frontier?

Logistics Lets the Games Begin

Logistics Lets the Games Begin

Before the high-profile athletes and rabid fans arrive at a major professional sports event, superstar logisticians and planners perform their own feats of greatness to ensure the big game goes off without a hitch.

In Mexico, Rail is On a Roll

In Mexico, Rail is On a Roll

Increasing demand from manufacturers, improved infrastructure and service, and a campaign to grab more market share promise further growth for rail service within Mexico and across the U.S. border.

On the Docket

On the Docket

Key legislative and regulatory items on Capitol Hill will have a bearing on transportation and logistics in 2012 and beyond. Here’s a look ahead so you can comply—or adjust—to keep your supply chain running smoothly.

Keith Biondo

Delivering the Final Smile

It’s dangerous to take a "hands-off" approach to customer service. That’s the conclusion of a recent CAPS Research report authored by Mei Li, PhD at Lehigh University. Relying only on carriers and service providers to drive the final customer service experience, warns Dr. Li, puts you at risk of having service failures that can trash […]

Boosting Supply Chain Sustainability

Sustainable business practices and supply chains reduce waste, cut costs, and improve profit margins. Alan Amling, director of global logistics and distribution marketing at UPS, offers the following tips to help businesses improve supply chain sustainability. 1. Avoid reinventing the wheel. Minimizing waste is the first step in sustainability. Before investing in your own supply […]

Jill Hesselroth: Opportunity Knocks

Jill Hesselroth: Opportunity Knocks

Jill Hesselroth is vice president, global supply chain at Nortech Systems in Wayzata, Minn. An electronics manufacturing services provider, Nortech Systems produces wire and cable assemblies and printed circuit board assemblies, and provides diagnostic repair and integration services. Responsibilities: Analyzing the company’s supply chain to identify opportunities for improvement, then implementing those improvements. Experience: Various […]

Trends—December 2011

Trends—December 2011

Transportation Management Breaks Out Transportation management system (TMS) solutions and TMS-managed services have been evolving at hyper-speed over the past few years, largely driven by an economy in a tailspin, corporate mandates to reduce costs at all costs, and the emergence of Software-as-a-Service (SaaS) and cloud-connected networks. The facility with which companies can develop and […]

Global Logistics—December 2011

Global Logistics—December 2011

Japanese Ocean Carriers Mull Merger In a move reminiscent of Air China/Cathay Pacific’s recent joint venture cargo agreement, Japan’s three largest container lines are considering a merger to stave off rising costs and capture greater market share in the region. MOL, NYK, and “K” Line are in ongoing discussions to consolidate operations, reports French container […]

Anne Barry

Warning! Dangerous Lack of Support for Hazmat Professionals Ahead

It is often said that dangerous goods handling compliance becomes an issue only when a non-compliant situation is discovered. The better dangerous goods professionals perform, the less necessary they appear. Lack of recognition for dangerous goods management professionals’ contributions, increasingly complex global transportation regulations, and insufficient career development opportunities may prevent the most qualified management […]

Joe LaFergola

VMS Lifts Warehouse Labor Productivity

Tracking lift truck operator time can be a challenge for warehouse managers. The Occupational Safety and Health Administration (OSHA) requires lift truck operators to complete a pre-operation checklist before starting each shift. This inspection involves ensuring that the truck is working properly, and looking for signs of potential problems, such as hydraulic leaks. A recent […]

Tom Sanderson

The Safety Measurement System: A Flawed Assessment of Motor Carrier Conduct

Developed to support the Federal Motor Carrier Safety Administration’s (FMCSA) Compliance, Safety, Accountability (CSA) initiative, the Safety Measurement System (SMS) methodology is intended to monitor motor carrier and commercial motor vehicle driver safety performance. It must pass rigorous review before it becomes law. Under the Administrative Procedure Act, the FMCSA must consider the effect these […]

Lorcan Sheehan

Safeguarding Your Supply Chain Against Rising Fuel Prices

Rising fuel prices have affected most supply chains through fuel surcharges or increased component and operating costs. By planning ahead and evaluating where your supply chain activities are performed, as well as your current processes, you can face these challenges head-on and reduce the impact on your operations and the bottom line. Prepare your supply […]

Rob O'Brian

Joplin is Rebuilding and Open for Business

On May 22, 2011, the most devastating, deadly single U.S. tornado in six decades ripped through the city of Joplin, Missouri and the neighboring village of Duquesne. With winds of nearly 300 miles per hour, the tornado carved a path 10 miles long and nearly one mile wide through the two communities. The death toll […]

Mitigating Supply Chain Risk

Mitigating Supply Chain Risk

Today’s logistics and supply chain managers grapple with volatility, risk, and uncertainty. Learn what you can do to prepare for the unexpected.

Supply Chain Graduates: Now What?

Supply Chain Graduates: Now What?

Top-performing supply chains focus on attracting and retaining talent—both technical ability and leadership. Here’s how to find and nurture true supply chain competency.

Dedicated Refrigerated Fleet Helps Food Distributor Keep Its Cool

Dedicated Refrigerated Fleet Helps Food Distributor Keep Its Cool

THE CUSTOMER: United Natural Foods Inc. (UNFI), Providence, Rhode Island UNFI is a U.S. independent national distributor of natural, organic, and specialty foods and related products, including nutritional supplements, personal care items, and organic produce. THE PARTNER: Cardinal Logistics, Concord, North Carolina The third-party logistics (3PL) provider serves multiple industries nationwide with dedicated contract carriage, […]

Keith Biondo

@Home With Demand-Driven Logistics 

I recently got into a discussion with a reader about the most important developments in logistics during the past decade. “Mainstreaming of the term ‘logistics’ by UPS ranks right up there,” he said. “Civilians” just don’t understand what you do, the complexity of the challenges you face, or the intelligence, dedication, and hard work you […]

Trends—November 2011

Trends—November 2011

Urbanization Shapes Supply Chain Innovation With the global population expected to soon surpass seven billion, urbanization is an inevitable reality and challenge for supply chains. Where consumerism is concentrated, infrastructure and capacity are often constrained, making it difficult to move product in and out of congested areas. "For the first time in history, more than […]

Are You Certifiable?

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

Increasing Warehouse Productivity

Increasing Warehouse Productivity

Warehouse efficiency promotes productivity, which is essential to customer satisfaction. Jason Minghini, senior director, best practices, at Chattanooga, Tenn.-based third-party logistics provider Kenco Logistic Services offers the following tips for creating more efficient, productive warehouse operations. 1. Communicate effectively. Clearly communicating to workers your organizational goals and the processes to achieve them is one key […]

Ryan Gellert: Climbing High 

Ryan Gellert: Climbing High 

Ryan Gellert is vice president, supply chain management at Black Diamond Equipment, a mountain sports products company. Headquartered in Salt Lake City, Utah, Black Diamond operates manufacturing and distribution facilities there and in Southeast China; a sewing plant in Calexico, Calif.; a marketing office in Yokohama, Japan; and a sales, marketing, and distribution operation near […]

Global Logistics—November 2011

Global Logistics—November 2011

Ban on Night Flights: The Sound of Silence Frankfurt’s night skies will become noticeably quieter between 11 p.m. and 5 a.m. if a 2012 Federal Administrative Court hearing upholds a provisional cargo flight ban that went into effect on Oct. 30, 2011. Lufthansa Cargo has been a leading voice in an industry effort to publicize […]