Summer Reading Guide 2008

After you pack the picnic basket with sandwiches, potato salad, and lemonade, toss in one of these interesting summer reads. You’ll quench your appetite and your thirst for supply chain knowledge at the same time.

Growth and Structure of the Third-Party Logistics Industry

In these challenging economic times, it may be difficult to think of industries that achieve meaningful growth irrespective of the economic cycle. Historical trends, however, suggest that the third party logistics (“3PL”) industry has been able to accomplish just that. During the last recession, gross revenues for the domestic industry grew 17.8% from $65.3 billion […]

Determining When to Outsource Supply Chain Management Services

In today’s highly competitive and dynamic global business environment with vastly extended supply chains, companies can often be confused by the many logistics options and sources available to them when seeking to implement a highly visible supply chain management (SCM) solution. Before making a decision on how to best integrate advancing technologies into your company’s […]

Jose Flores: Zooming Right Along

On April 24, 2008, Jose Flores broke a record. That day marked his 45th year at Yamaha Corporation, and with that milestone he became the Japanese company’s longest-serving U.S. employee. Since Flores joined Yamaha in 1963, much of his work has had a strong logistics component. Currently, he’s administration manager in Yamaha Motor Corp. USA’s […]

A Matter of Life and Death

Q: I am a freight forwarder providing a service in which I deliver ISO tanks to my customer, who fills them with hazardous liquids and gas. Once the tanks are filled, I arrange to have them transported from my customer’s facility to their destination, usually in a foreign country. I recently read about a case […]

Fuel for Thought

The current fuel-cost crisis has U.S. truckers caught between a rock and a hard place. Any solution comes with a complex price tag, and has to reflect the common good. But who knows what the solution is? In March 2008, Americans drove 11 billion miles fewer than they did in March 2007, the largest drop […]

Simon Kaye

Incoterms Let Importers Control Their Destiny

Global import and export merchandise trade is currently valued at nearly $12 trillion, according to the World Trade Organization, some 75 times more than in the mid-1960s. Despite this growth, many companies still use the same trading contract terms and structure that were prevalent decades ago. As a result, importers are missing a major opportunity […]

Trends-July 2008

With Washington abuzz about the fall presidential election, the Federal Reserve dodging rumors of recession-fed inflation, and news outlets awash with images of flood-ravaged Midwest farms and independent truckers protesting rising fuel costs, this year’s annual State of Logistics Report echoed prevailing political and economic circumstances – with some difficult-to-swallow truths, easily digestible speculations, and […]

Global Logistics-July 2008

As European manufacturing capacity gradually migrates to cheaper locations farther east, once-prominent producers such as Germany are filling the economic void by developing transportation, distribution, and logistics capabilities. As a reflection of this shifting dynamic, Ernst & Young’s Location Germany 2008: Germany and Europe—International Manager Assessment report touts Germany as the top investment destination in Western Europe. […]

Managing Expedited Shipments

There are two kinds of expedited shipments: critical and time-sensitive. Knowing the difference between the two and understanding your customers’ supply chains can help you make decisions that translate into cost-effective expedited shipment strategies. Here’s some advice from Greg Humes, president of Detroit-based third-party logistics provider NLM. 1. Hire the right people. Employing a staff […]

3PL or Freight Forwarder: What’s in a Name?

After 30 years in the transportation business, I am still waiting for a clear, simple explanation of the differences between third-party logistics providers (3PLs) and freight forwarders or consolidators. Is 3PL just a fancy name for a freight forwarder, or do they actually provide services that an old-fashioned consolidator does not? Yes, there are differences […]

Learning for Life

Logistics professionals who pursue continuing education keep up with industry innovations and move ahead in their careers.

Chemical Logistics—June 2008

Chemical Supply Chain Comes of Age Chemical shippers now view supply chain management as integral to success. For years chemical supply chain managers have been trying to educate senior management that logistics is not just a line-item cost, but a vital part of the organization, as important as manufacturing and sales. Their mission is far […]

Autumn Bayles: Taking the Cake

Autumn Bayles has a big job, but it’s also a sweet one. Most people who grew up in the mid-Atlantic region know the Tastykake brand as a popular lunchbox staple. Bayles’ employer, the Tasty Baking Company, has been turning out snack-sized cakes and pies under that name in Philadelphia since 1914. During three tough years […]

Our Wiki, Wiki Ways

The best way to move forward in these challenging times is to innovate collaboratively – emphasizing the quality of openness and the values of networked connectivity, shared knowledge, and rapid information exchange. Humanity has generally been successful when “we the people” act in concert – but we didn’t arrive at the “we” factor overnight. Adam […]

Yard Guard

Armed with a powerful visibility tool, Continental Tire North America keeps watch over its trailers.

Trends-June 2008

In light of the recent and sudden news that New Jersey-based LTL trucking company Jevic Transportation terminated operations and filed for Chapter 11 bankruptcy, motor freight carriers will likely find the road noticeably more barren this summer. If the past is any indicator, the industry will be beset by further insolvency as trucking companies continue […]

Boosting Supply Chain Visibility

Improving supply chain visibility is a top priority of companies striving to maximize global operations performance. Nathan Pieri, senior vice president of marketing and product management for East Rutherford, N.J.-based Management Dynamics, a global trade management solutions provider, offers these tips for using technology to increase visibility. 1. Look at the big picture.Make sure your […]

Improving Fleet Management Performance

The nation’s trucks hauled 10.7 billion tons of freight in 2005, according to the American Trucking Associations’ truck tonnage index. This figure represents nearly 70 percent of tonnage, including manufactured and retail goods, carried by all domestic freight transportation modes. Yet many in the trucking industry have been slow to recognize the strategic importance of […]

Four Fast Ways to Cut Transport Spend

Transportation costs have become a bullish line item in virtually every corporate budget. Fuel costs have hit an all-time high and companies’ shipping needs are only becoming more complex. No wonder carriers are raising rates and transportation costs are rising. But the truth is, many companies simply lose control over transportation costs as shipping demands […]

Less Pie in the Sky And More Meat and Potatoes

When asked about the economy, Harry S Truman said he wished for a one-handed economic advisor so he could never say, “on the other hand.” In certain sectors, the economy is bad and likely to get worse. Why? Could it be that the decades without a national energy policy are coming home to roost as […]

A Sorted Tale

A new automated sorter helps AWBC get the right books to the right place and into the hands of eager bookworms.

Spokane: Hub of the Inland Northwest

Looking for easy access to major U.S. markets? A gateway for international trade free of traffic snarls? Inexpensive utilities and real estate with plenty of room to expand logistics or manufacturing operations? Spokane is just what you’re looking for.

Fred Clark: Just What the Doctor Ordered

In January 2003, Army sergeant Fred Clark was on leave at his home in Fort Hood, Texas, when his colonel called him into the office. Clark, a senior logistician, learned that the Army was moving him to a different unit, which would deploy to Kuwait in 10 days. For 48 hours, Clark and his new […]

Seattle’s Second-Best?

When people think of Seattle, they are reminded of its coffee, salmon, and fir trees. It’s also the hometown of American titans such as UPS, Boeing, and Starbucks. But as these companies grow, and take their operations elsewhere to compete globally, cities such as Seattle are losing a vital part of their economic identity. The […]

Technology Standards Hold the Key to Security

Since the advent of globalization, logisticians have sought a technology that provides real-time tracking of goods, documents, and information across supply chains. Considered a luxury for many years, the development of a Supply Chain Technology Standard (SCTS) has become an operational mandate to meet the need for heightened security. Unfortunately, no single technology creates real-time, […]

Global Logistics-May 2008

The allure of Central America and the Caribbean as a New World for exploration beguiled 16th-century European traders eager to exploit its wealth of natural resources and labor. Today, the region is attracting colonization of a new order and under its own terms—and U.S. trading partners are equally captivated. As China sourcing becomes more complicated, […]

Generating Accurate Global Documentation

Improper documentation can stop import shipments dead in their tracks and you may not even know they are stuck. Beth Peterson, president of BPE Global, offers advice for achieving fast, reliable customs clearance.

Selecting the Right Warehouse Management System

The typical warehouse buzzes with activity every day. Products arrive at the loading docks, forklift drivers shift pallets around the floor, automated retrieval systems pull goods for shipment. Warehouse management systems (WMS) provide tools for keeping track of all that action. Today, dozens of technology vendors – from well-established to relatively new – offer warehouse […]

Perfect Order Fulfillment: Getting it All Right

The journey through the supply chain is filled with constant movement and activity, and each step holds the potential for delays, wasted money, and errors. The complexities of an extended supply chain make the odds against fulfilling a perfect order overwhelming. The Supply Chain Council describes perfect order fulfillment as a discrete measurement defined as […]

Hanging in the Balance

If one theme threads its way throughout this issue – from cover illustration to featured articles to the logistics solution providers we have selected for our annual Top 100 Logistics IT Providers list—it’s balance. Businesses today routinely balance on the brink between too much and too little – whether it’s forecasting demand, carrying safety inventory, […]

Balancing Act: Matching Supply to Demand

Three companies at different stages of demand-driven sophistication use greater visibility, automated data flow, and real-time alerts to preserve the delicate balance between suppliers and customers.

IT Perspectives 2008

Global supply chains are only as flexible as the technology that exists to support them—and thanks to an emerging class of logistics IT providers, and a new breed of sophisticated solutions, there are plenty of options to help enterprises respond more quickly and efficiently to shifting market dynamics.

One Good Turn (sponsored by SmartTurn)

Every business wants to grow, but rapid expansion presents challenges as flourishing companies struggle with more complex inventory and warehouse management operations. Osteogenics Biomedical recently faced this situation as it coped with breakneck growth, a small 2,500-square-foot warehouse, and an outdated management system. The Lubbock, Texas-based company is a leader in the development of innovative […]

Barry Schap: Pumping It Up

The United States is expected to produce 13 billion gallons of ethanol in 2008, according to the Renewable Fuels Association. Barry Schaps, senior vice president of logistics at VeraSun Energy in Brookings, S.D., moves most of that supply. By the end of this year, when it completes a merger with U.S. BioEnergy and opens some […]

Taking on One-Offs

Q: I operate a marine terminal, and I have an insurance policy with a $1-million limit to cover loading and discharge operations. A customer wanted me to discharge a heavy piece of machinery valued at $75 million. When I asked my insurance company to increase its limit just for this one operation, it refused to […]

Infrastructure Triage 101

The U.S. logistics system is the nation’s life and supply line and deserves our highest attention. A sobering assessment of our regard for America’s infrastructure is found in the American Society of Civil Engineers’ (ASCE) most recent report card. Here are the grades: Rail: C- Aviation: D+ Roads: D Bridges: C Navigable Waterways: D- It’s […]

Choosing a 3PL: Safety First

When negotiating transportation services with a third-party logistics provider (3PL), you may find that they emphasize efficiency, customer service, competitive pricing, and timeliness. Safety is rarely a selling point and may go unmentioned during discussions. When shopping for 3PL services, however, a good safety record should be at the top of your checklist. Contracting with […]

Trends-April 2008

Flipping through Backpacker‘s 2008 Gear Guide recently, I happened upon the magazine’s Zero Impact Challenge – a call to action for outdoor equipment manufacturers to design backpacks with “greener” footprints. In the spirit of environmental awareness, the magazine featured five brands in the process of developing new packs that are lighter, simpler in design, made of […]

Global Logistics-April 2008

Given Belgium’s proximity to mainland European markets; well-developed, multimodal transportation infrastructure; and highly skilled labor force, its potential as an offshore manufacturing, research and development (R&D), and distribution location far exceeds its geographical size. The Port of Antwerp, together with Liege and Brussels airports, places Belgium squarely among Europe’s top-tier cargo crossroads, incenting U.S. businesses […]

Easy Come, Easy Go: Keeping the Yard Running Smoothly

Some companies consider yard management a low priority, but an inefficient strategy can bleed dollars from the bottom line. Wilson Rothschild, industry and product marketing supply chain manager for Infor, an Alpharetta, Ga.-based warehouse management software company, offers these tips for making yard management a strategic imperative. 1. Lead an initiative to review yard management […]

Location-Based Services Put Efficiency on the Map

Enhanced productivity. Cost savings. Revenue increases. Improved customer relations. These are among the most important – and most widely acknowledged – benefits of deploying location-based service (LBS) tools such as geographic positioning systems (GPS) and street-level routing (SLR). Add one more benefit of emerging importance that will have significant impact over time: reduced emissions. Corporations, […]

Can We Create a Viable National Transportation Policy?

State and federal transportation departments, the White House, and Congress have failed to promote and fund a coherent and dynamic national transportation policy to meet the infrastructure demands of our 21st century global business environment. Today’s overburdened and congested infrastructure cannot meet the economic and energy demands of a population that has doubled since 1950. […]

Up and Atom

Some thought leaders, visionaries, and business gurus claim the United States is transforming from an “industrial” to a “post-industrial” economy. More guru-speak: “Wealth in the United States will be created more and more by electrons, and less and less by atoms.” In English, that means our information and service businesses will continue to grow (electrons) […]

Study Highlights Strategic Role for Logistics (Online Exclusive)

For all the operational advances that have been achieved in chemical logistics in the past few years, and for all the savings that have been realized by producers and shippers, large opportunities for gaining efficiency and saving money remain. The most important advance would be for logistics to be included in the strategic planning stages […]

Congress Plans Changes to Chemical Regulations (Online Exclusive)

Within days of the January 2008 deadline for chemical producers and distributors to file their "top screen" hazard-assessment questionnaire to the Department of Homeland Security, a Congressional subcommittee approved legislation to further tighten handling, transportation, and reporting rules for hazardous materials. Chemical producers, distributors, and carriers responded with a quick and loud call for legislators […]

Brenntag Acquires Schoofs, Names New Regional President (Online Exclusive)

Global chemical distributor Brenntag is not just California dreaming; it has just acquired West Coast specialty chemicals distributor Schoofs, Inc., based in Moraga, Calif. It also named Steven M. Pozzi as president of Brenntag Pacific, based in Santa Fe Springs, Calif. No price was disclosed for the acquisition. The Schoofs operation will become part of […]

Tracking Totes Turns to Technology (Online Exclusive)

As totes and intermediate bulk containers (IBCs) become more sophisticated and more expensive, chemical producers and distributors are seeing them more as a fleet like rail cars or tank trailers rather than as a disposable cost of doing business. Also, strict new rules on tracking and tracing hazardous materials make it imperative for shippers to […]

Globe Spinning

As the world flattens, global sourcing invariably becomes more dynamic. Sophisticated technologies and an emerging crop of offshore suitors are forcing today’s intrepid explorers to balance reason with instinct.

Snap Shot: Furniture Logistics

Will the shift to global sourcing – combined with an economic downturn, housing slump, high fuel costs, and lack of visibility – unseat the furniture industry?

Michael Strauss: Putting Military Training On the Line

In the early 1990s, artillery officer Mike Strauss was leading an Army convoy down a German country road in the middle of the night when he got word of a breakdown three-quarters of the way back in line. The stopped vehicle blocked the road so completely that nothing behind it could squeeze past. One of […]

Hamilton on Wry

One misty day, I wandered about the graveyard at Trinity Church in lower Manhattan. I spotted a figure sitting on the steps of a square granite box with four urns at its corners and a truncated pyramid in its center. It was the tomb of Alexander Hamilton (1755-1804), who for many Americans is merely the […]

Trends—March 2008

10+2: Anything But Elementary The Importer Security Filing mandate proposed by Customs and Border Protection (CBP) has been a hot topic of late – as much for speculation about its loose provisions as for its underlying purpose of tightening offshore supply chain links. When CBP announced its Notice of Proposed Rule Making (NPRM) in early […]

Global Logistics-March 2008

China’s rapid economic growth and recurring spikes in consumer prices could give U.S. manufacturers and retailers more reason to consider alternate sourcing locations. Inflation rose to its highest level in more than 11 years in January after devastating snowstorms exacerbated food shortages throughout the country. Consumer prices climbed 7.1 percent from the same month last […]

Clearing Customs Quickly and Efficiently

Efficient customs clearance requires technical knowledge and respect for procedure, as well as an ability to understand the game, speak the language, and build good relationships throughout the supply chain. Mike McCarron, managing partner, MSM Transportation, offers 10 tips for fast, reliable customs clearance. 1. Focus on what you can control. When you ship globally, […]

Community Developers: Take the Intermodal Initiative

My Sears vacuum cleaner, made by Panasonic in Japan a decade ago, quit working recently. Replacing the original relay with a part now made in Indonesia fixed the problem. Clearly, it’s not just America that is outsourcing. Manufacturing worldwide has morphed into production sharing, where companies assemble and sell products made from subassemblies sourced around […]

With SaaS, You Make the Rules

Most companies spend 40 to 80 percent of their annual transportation budget on moving inbound shipments from suppliers. Despite these whopping costs, businesses boast relatively little control over their selection of inbound carriers or their service levels. Instead, most depend on suppliers to correctly assign carriers, then provide tracking information to the buying organization. This […]

Reverse Logistics: It Pays to Do It Right

Returns management and reverse logistics represent a significant source of untapped profitability for many organizations. Specifically, reverse logistics is rapidly emerging as a core driver of competitive advantage and financial performance among leading manufacturers, according to a recent Aberdeen Group report, Revisiting Reverse Logistics in the Customer-Centric Service Chain. Optimizing reverse logistics operations also can […]

Training Daze

The importance of logistics education is often overlooked and underrated, not only here in the United States, but abroad as well. A reader alerted me to a Financial Times article skewering the state of logistics training in the United Kingdom: “Poor productivity and high staff turnover in the UK’s logistics industry are undermining the competitiveness […]

Most Likely to Succeed

From an undergrad learning the fundamentals to a Ph.D candidate conducting groundbreaking research, meet the students pursuing supply chain education at all levels.

Industry Snapshot: Electronics

Is the latest gadget a hit or just hype? Will that newfangled gizmo be cutting- edge for a year or obsolete in a month? Fickle buyers and unpredictable lifecycles can short-circuit the consumer electronics supply chain.

Kathy McCurry: A Wild New Ride

More people would swap their cars for motorcycles if only they knew what to wear. That’s the premise behind Classy Rider Apparel, a business that makes motorcycle jackets with mainstream appeal. In the five years she has been running Classy Rider as a one-woman operation, Kathy McCurry has learned to manage suppliers in China, coordinate […]

The Perils of Trucking: It Takes a Thief

Q: I am expanding into Central and South America and need trucking insurance to cover my cargo. Can you help me? A: This is a common question from shippers who cannot obtain cargo insurance, from forwarders who are unable to get liability insurance, and even from truckers who are required to secure cover before any […]

Logistics Managers Earn Job Security

As recently as a decade ago, most U.S.-based companies’ supply chains were predominantly domestic, and providing manufacturing support to U.S. factories was a booming business. Today, however, global supply chains dominate and the number of U.S. plants to support is dwindling. As a result, many North American supply chain professionals are concerned about how their […]

Trends-February 2008

The push for green compliance is slowly permeating the logistics sector as businesses find greater incentives for designing and constructing distribution and retail facilities with sustainability guidelines in mind. As an example of this emerging trend, ProLogis, the world’s largest owner and developer of distribution facilities, recently introduced a directive mandating that all new developments […]

Global Logistics-February 2008

While many eyes remain fixed on Far East sourcing and offshoring activities, Central and Eastern European (CEE) countries are stealing glances as steady growth in logistics investment and development continues. The logistics industry in CEE and Russia is expected to grow rapidly over the next five years, according to recent Datamonitor research, with nominal logistics […]

Shipping Hazardous Materials Safely

Shipping hazardous materials requires more attention to detail than transporting regular goods. The changes in paperwork and procedures since Sept. 11 have further complicated an already convoluted process. The U.S. Department of Transportation (DOT) and the International Air Transport Association govern hazmat shipping at the federal and global levels, but transport buyers may encounter additional […]

Combating Congestion: Consider Moving Out

Americans have seen tremendous technological advancement in the past 50 years. We operate and communicate at a faster pace, with one glaring exception: the physical movement of people and products. We still move goods on the same transportation infrastructure that President Eisenhower created in the 1950s. Back then, infrastructure was created to accommodate the growth […]

Shipping Perishables Without Going Bananas

Perishables. It’s a word that can make any shipping manager or logistics provider cringe. The loss of perishable goods in transit means lost revenue. But a host of technologies and new solutions take the fear out of shipping perishable goods such as pharmaceuticals, food, and plants. Choosing the right type of packaging and testing it […]

Tracing the Genealogy of a Food Recall

Anyone who has ever tried to trace their roots back more than a few generations knows how challenging that task can be. Unless you’re of royal lineage, the path back through history tends to be lined with false leads and dead ends. If you do find any information, it’s often on handwritten notes that you […]

Who Ruined the Inventory?

If you got a call from a customer complaining that the temperature-sensitive goods you shipped were ruined, would you be able to track down where and how it happened? If the problem was on their end, could you prove it? What if a supplier sent your company decayed goods? Nobody needs disputes like this wreaking […]

Message On a Bottle

Thanks to new pedigree technology, pharmaceutical manufacturers and sellers no longer find establishing chain of custody a bitter pill to swallow.

The Evolution of Inbound Logistics–Inbound’s Early Adopters: Survival of the Fittest

For a few practitioners, the flow of transportation changed direction, going exactly the opposite way. Push mutated into pull. Soon after, Inbound Traffic Guide magazine materialized, recognizing the paradigm shift from traditional push-oriented ideas. Following demand signals, controlling inbound transportation, and targeting the needs of the stateside consignee were heretical concepts that defied prevailing business […]

Dirty Jobs

It’s a job and somebody has to do it. Meet the guys who have stepped up to the task.

Ask the Experts

Leading C-level execs* with 260 years of combined logistics and transportation experience address tough industry questions. Their advice, words of caution, and strategic vision can help you face the challenges of 2008 and beyond.

Sustainability: Green is the New Black

It’s not easy being green. But, driven by impending regulations, consumer pressure, and mandates from corporations such as Wal-Mart, more and more companies are forging ahead with supply chain sustainability efforts.