What's Happening in Logistics

Outsourcing More to Less Recent studies confirm that companies are now outsourcing more of their logistics activities – and they are outsourcing to a fewer number of service providers. Therefore, the selection of your Third Party Logistics (3PL) provider is becoming increasingly important to empower effective and efficient supply chain ecosystems that are essential for [...]

With so many container lines out there to choose from it’s easy to forget that despite their numbers there really are fewer choices than it seems when you consider carrier alliances and vessel sharing partners. If you are large enough to deal in direct carrier contracts with container lines, then you would be wise to [...]

Unless you work for an ocean container line, there seems to be a lot of confusion regarding bunker fuel costs and how they play into ocean container costs and BAF (Bunker Adjustment Factor – fuel surcharge for container lines).  This is especially compounded when folks look at the headlines in regards to crude oil prices [...]

In developing markets, logistics activities involve a range of challenges and opportunities: Opportunities revolve around the fact that the developing markets are experiencing rapid economic growth and the resulting increase in trade and commerce drives increasing demand for logistics services. Challenges are many and varied, with the top three consistently being limitations in infrastructure, bureaucratic [...]

Hong Kong is one of the world’s leading logistics hubs. Its strategic location makes it both the Heart of Asia – half the world’s population are within a five hour flight, and China’s Gateway – providing access into and out of the world’s second largest economy and fasting growing consumer market. Business Confidence is High Complementing [...]

According to a company press release, German based company DB Schenker has announced a “strategic realignment” of their North American distribution operating model. Under the realignment, DB Schenker will transition its operations from an asset based model to a non-fixed asset model and will phase out their dedicated US based fleet. This portion of the [...]

Picture your medicine cabinet at home. Now open it. (If yours is like mine, it could use a lot of organization.)  Have you ever stopped to think about how those medicines and therapies arrived on your shelf? Specifically, I mean the path from how medicines go from manufacturer to being delivered safely to your local [...]

As a data specialist for UPS’s Industrial Engineering International Operations Support group, Candy Campbell finds fulfillment in helping her co-workers solve problems with international shipments. “I work on reports first thing in the morning that I send to the district coordinators,” she said. “The coordinators have to research the shipment and figure out what the [...]

Flowers are one of the most common expressions of affection on Valentine’s Day. Across the country, millions of wives and girlfriends (and husbands and boyfriends, too) will be surprised with fresh flowers on Feb. 14. Most of those flowers come from South America through Miami. As the largest air cargo carrier at Miami International Airport, [...]

Love is in the air … and on the road as UPSers gear up to deliver gifts of love for Valentine’s Day. While jewelry topped last year’s list of Valentine’s gifts, candy remains a popular option too. Online retailers will be busy, with 32% of U.S. consumers saying they plan to purchase their Valentine’s gifts [...]

UPS recognized as a leader in sustainability For the second time in 10 months President Obama visited a UPS facility to commend us for our innovations and commitment to sustainability. “UPS deserves extraordinary credit for being the best in its space,” he said. “One of the best businesses we have in the United States. But the [...]

A couple weeks ago, I had the privilege of attending Entrepreneur magazine’s 2012 Growth Conference in Long Beach, Calif., as a member of The UPS Store team, which sponsored the event. For the more than 850 entrepreneurs who convened at this year’s Growth Conference, there was an undeniable feeling of optimism and determination to learn [...]

The ongoing conflict between the Port of Los Angeles and the American Trucking Association may be finally drawing to a close.

Officials said that the contract between the companies is a long-term agreement at competitive market rates, adding that it encompasses the intermodal operations of APL, as well as those of APL Logistics’ auto-related activities in North America.

Logistics Management Group News Editor interviewed Bradley S. Jacobs, chairman and CEO of XPO Logisitcs about XPO's fourth quarter earnings and the company's growth and acquisition strategies.

MNX said that its acquisition of the Same Day Express/Next Flight Out business of AirNet will strengthen its global operations

Following a nearly 9 cent bump during the week of February 13, the price per gallon of diesel headed up 1.7 cents this week to $3.96 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

With their annual conference coming up in Miami next March, The Air Forwarders Association (AfA) will focus on a variety of concerns

As an indicator of the continued economic recovery of the manufacturing and supply chain industries, U.S. and international attendees registered in large numbers for the inaugural MODEX expo held February 6-9 in Atlanta's Georgia World Congress Center.

The Automatic Guided Vehicle Systems (AGVS) Industry Group of the Material Handling Industry of America (MHIA) announces that 2011 posted the strongest sales in many years of new, retrofit and expansion automatic guided vehicles (AGVs) and systems.

Material Handling Industry of America (MHIA) announces the formation of the Protective Guarding Manufacturers Association (ProGMA). ProGMA will join the 18 other Industry Groups operating under the umbrella of MHIA. ProGMA members are the Industry’s

MODEX 2012 attendees are registering in strong numbers for the event to be held February 6-9 in Atlanta's Georgia World Congress Center. When attendees register, they are asked to answer a variety of demographic questions indicating their industry, buying

Material Handling Industry of America (MHIA) announces the recent election of its 2012 MHIA Roundtable of Industry Leaders. The Roundtable includes the Material Handling Industry Board of Governors and the MHIA Directors At Large. The Board of Governors

Material handling equipment orders grew an estimated 15.2% in 2011 and are forecasted to grow 8.0% in 2012 and 12.0% in 2013, according to the latest Material Handling Equipment Manufacturing Forecast (MHEM) released by Material Handling Industry of America

Many organizations are shifting away from issuing their employees mobile devices and instead adopting policies allowing employees to use their own mobile devices for work purposes. I’d like to learn more about what employers are doing regarding BYOD. Please help us by completing this brief survey.

New start-ups are launching every day that change how consumers buy and how merchants sell. While most of us know Facebook, Foursquare and Groupon, I’ve put together a list of the six new companies that I’m most excited about. I’d also like your feedback. Which company do you feel has the greatest chance to impact retail?

The support team environment is a demanding one, where support agents can get easily burned out, leading to a high turnover rate. In this article, I focus on how adding gaming elements can can boost employee retention by providing help desk agents with a sense of accomplishment.

Current trends suggest that the status quo of long-distance food distribution may be primed for disruption. Increased consumer demand for locally-grown organic foods, coupled with a renewed interest in living in urban cores and rising gas prices, collectively suggest that U.S. food distribution networks will soon need to evolve.

Today there are more than 7,000 unique job titles in the facility management industry, according to an IFMA report. With input from several industry experts, I have narrowed down a list of the top 5 career opportunities you should know about, along with the degrees and accreditations necessary to achieve these roles.

While an acquisition in and of itself may not be cause for concern, how it impacts your organization is something leadership expects you to manage with care. Your executives will be coming to you with questions. You need to be prepared with some answers, and I’ve put together some suggestions on managing the uncertainty.

We’re proud to announce the start of our new corporate program, the Greater Good Initiative. At Source Consulting, we have a high standard of corporate and community responsibility, in which we believe of the need to place a sincere value in people and the environment. Continue reading →

There are many ways to reduce your shipping costs, but to do this, you need to be knowledgeable about smaller aspects of shipping you may have not been privy to before. Continue reading →

Shipping rates can vary quite a lot among carriers for any given package whether you ship few or many packages. For this reason, you should be utilizing a comparison tool to reduce your shipping costs! Continue reading →

Source Consulting is proud to announce a partnership with Global Logistics Media (GLM) in providing blog posts on cost-saving shipping advice along with discussions on the freight and transportation industry. Continue reading →

When carriers determine discounts and incentives for their customers, they may utilize some similar tactics, but overall, they do not have a singular system to differentiate between one company to the next. Continue reading →

"One efficient way of accomplishing this task is by improving one’s organization policies related to carrier service level selection for shipments." Continue reading →

Penske has expanded its veteran recruiting efforts by working with Milicruit, a website devoted to pairing U.S. military veterans with prospective employers through online employment fairs. This Thursday, Penske will partake in Milicruit’s national virtual career fair, hosting real-time chats with prospective employees from 11 a.m. to 4 p.m. ET. Veterans can log onto the [...]

Utility companies rely on well-maintained fleets to quickly respond to customer needs during emergencies. No matter the disaster, Penske Truck Leasing can help utilities succeed by ensuring service truck fleets are always in top shape, looking great and ready to respond. For more than 40 years, Penske has been a leading provider of truck leasing, [...]

The Federal Motor Carrier Safety Administration (FMCSA) is in the final stages of a new rule that will require truck drivers to have their physicals conducted by only medical professionals listed on the National Registry of Certified Medical Examiners (NRCME) – list of providers who have taken a federally mandated course and exam. The FMCSA [...]

A pilot project between the United States and Mexico that grants Mexican motor carriers the right to operate beyond the 25-mile border zone is underway, marking the next step in the Federal Motor Carrier Safety Administration’s (FMCSA) implementation of the North American Free Trade Agreement (NAFTA) cross-border long-haul trucking provisions.  The pilot will allow Mexico-domiciled [...]

Penske Truck Leasing and Penske Logistics plan to hire approximately 3,500 associates within their North American operations throughout 2012. Penske’s promising hiring outlook stems from the increasing demand for its services as the transportation sector continues to recover. Planned hiring is in line with 2011 hiring, which exceeded internal expectations by 74 percent over 2010 [...]

**This sale has been extended to March 31, 2012.** Penske Used Trucks is currently selling 12-foot and 16-foot box trucks across the U.S. that come with a special $1,500 discount and a complimentary 6-month extended warranty. Call 1-888-803-5675 and mention reference code HC1011BL for full details. Note that this offer is valid only on purchases [...]

GE Transportation today reported fourth-quarter 2011 revenues of $1.5 billion, up 43% year-over-year. Revenues for 2011 totaled $4.9 billion, a 45% increase from 2010.

Fourth quarter profits were $226 million, up from $73 million in 2010. Profits for 2011 totaled $757, up from $315 million in 2010.

“In 2011 we invested heavily in leading transportation products that drive sustainable infrastructure development in the rail, mining and other industries around the globe,” said Lorenzo Simonelli, President and CEO of GE Transportation. “We staffed for growth and expanded our manufacturing capabilities worldwide. We are well-positioned to help our customers succeed and to capitalize on growth opportunities in 2012.” 

GE Transportation has announced investments of approximately $400 million to upgrade and expand its manufacturing capabilities in the US to meet increasing domestic and global demand of rail and mining equipment.

Read the full press release here.

GE Transportation today announced the signing of a contract with Transnet SOC Limited for 43 GE Model C30ACi locomotives bringing the total number of GE locomotives ordered to 143 since December 2009.

GE Transportation will produce 43 high value locomotive kits in its facilities in Erie and Grove City, Penn for Transnet Rail Engineering (TRE) who will assemble the locomotives in South Africa. These locomotives will save approximately 600,000 liters of fuel each year and significantly reduce emissions. Orders totalling 143 new locomotives will contribute to job creation in the U.S and provide infrastructure growth in South Africa.  

Read the news release here.

GE Transportation today announced the completion of its acquisition of software provider RMI from The Carlyle Group.  The acquisition significantly expands GE Transportation’s Software and Optimization Solutions business to serve railroad customers worldwide.  Terms of the deal were not disclosed.

RMI (www.rmiondemand.com) is a leading provider of transportation management software solutions for railroads, rail shippers, railcar leasing companies, and intermodal services in North America. RMI designs software to help its users improve efficiency and productivity while reducing costs.   

Read the news release here.

Earlier today, GE Transportation announced the construction of a new $35 million diesel remanufacturing plant in Grove City, Pennsylvania. In addition, GE Transportation will also invest $37 million in 2011 and 2012 in the existing Grove City facility for a total investment of $72 million.

 

The company plans to hire roughly 150 new employees for the new facility to join the approximately 100 employees who will transfer from the existing Grove City plant.

What’s the word from “down under”?

PowerHaul.

GE Transportation and our regional partner, UGL, introduced the PowerHaul Series locomotive for Australia this week at AusRail Plus 2011, the largest rail exhibition in the southern hemisphere with 5,000 attendees and over 300 exhibitors.

The PowerHaul Series is a 3700HP AC locomotive that is designed to be GE and UGL’s most fuel-efficient and emissions capable diesel-electric freight locomotive. The locomotive’s technical specification will meet both heavy haul and high speed freight requirements across the Queensland and Western Australian narrow gauge rail networks.

Oversupply of container vessels operating on the Asia – Europe trade lane has pushed Maersk Line’s container freight rates to unsustainably low levels.

Press reports suggesting that Maersk Line has ’ditched’ Daily Maersk are completely inaccurate.

Maersk Line has updated its organisation and set a new team of executive managers.

Maersk Line will switch to low-sulfur fuel while at berth for all of its containerships calling the Port of Virginia starting in February. This fuel switch program...

Notice to the General Meeting

Board of Directors of Konecranes Plc proposes employee share savings plan

Konecranes Board of Directors convenes Annual General Meeting 2012

Growth in orders and sales, operating profit on previous year's level

Konecranes Plc's Nomination and Compensation committee's proposal for composition and compensation of the Board of Directors

Konecranes publishes its 2011 Financial Statements Bulletin on February 2, 2012

NEW BREMEN, Ohio (December 6, 2011) – Crown Equipment Corporation, one of the world’s leading forklift manufacturers, today announced that eight of its facilities have received Lift Truck Operator Awards from the National Safety Council for outstanding safety practices. The award recognizes forklift operators for operator excellence in lift truck operations by operating lift truck [...]

NEW BREMEN, Ohio (November 17, 2011) – “Sleek. Ergonomic. Innovative. User friendly.” These are the words Fast Company magazine uses in a recent issue to describe products such as the Apple iPod, a Whirlpool washer, a Black and Decker drill and a Crown Equipment forklift. As part of a cover feature called, “The United States [...]

NEW BREMEN, Ohio (November 15, 2011) – Crown Equipment Corporation, one of the world’s leading forklift manufacturers, released today results of its proprietary Forklift User Survey. The survey, which was conducted in late summer, represents feedback from approximately 600 forklift users involved in the purchase of lifts trucks in the material handling industry on issues [...]

MUNICH (October 27, 2011) – Crown Equipment Corporation, one of the world’s leading forklift manufacturers, is celebrating 25 years of manufacturing lift trucks for European and global markets at its Roding, Germany, facility. Selected for its prime European location and skilled workforce, Roding has been home to Crown manufacturing in Germany since 1986. Original production [...]

The presentation examines Crown’s SafeSteps program, which uses employee observation, feedback and positive reinforcement, as well as management support, to focus on the behavioral aspects of safety. Since its inception in 2005, Crown’s SafeSteps program has created a culture of continuous improvement that has resulted in a significant reduction in both recordable and lost time injury rates. Last year, Crown was recognized with an Occupational Excellence Achievement Award from the National Safety Council, further supporting Crown’s tradition of safety excellence.

Crown Equipment Corporation, one of the world’s leading forklift manufacturers, today announced that it has built its 500th new forklift to be operated with fuel cells. This is in addition to the Crown forklifts already in operation that have been retrofitted during the last few years to accommodate fuel cells. The achievement represents a notable milestone signifying the increased adoption of this technology in the material handling industry.

Event organizers are set to trial a social-networking solution first tested by the UK & Ireland SAP User Group, and provided by Excelerated Apps, allowing LinkedIn members to share their "Likes" at breakout sessions and other presentations.

In addition, Paul Steinberg, Motorola Solutions' chief technology officer, will deliver a keynote address at RFID Journal's 10th annual conference and exhibition, to be held on Apr. 3-5, in Orlando, Fla.

The 10th annual conference and exhibition's preconferences and workshops will focus on RFID's use in various industries, including energy, IT health care, retail and apparel.

Sacred Heart Medical Center at River Bend is using a real-time location system from Versus Technology to track the PAR levels of assets, enabling the facility to ensure that equipment is always on hand where needed.

The solution, provided by Asset Vue, using hardware made by RCD Technology and Element ID, enables Comcast's staff to conduct audits using RFID readers in mere hours rather than days, and to view the locations of servers on its database.

AeroScout, McRoberts Security Technologies announce Wi-Fi-based infant-security solution; Holland 1916 intros Pipe Tracker tag for oil and gas operations; Murata, Beta Layout collaborate on kit for incorporating RFID chips on printed-circuit boards; SkyRFID releases RFID-based weapons-management solution; rfXcel unveils portal for tracing and authenticating pharmaceuticals; Canadian inland port readies new RFID cargo-security system; BeanAir intros integrated wireless sensor for light, temperat

During the course of my interactions with a logistics company, the topic veered towards the growing requirements of the clients. The logistics company wanted to streamline its operations so as to meet expected standards and at the same time comply with the shipper’s visibility requirements. With their current information technology systems the company was unable [...]

With so much happening in terms of infrastructure development and a rapidly growing robust economy the Indian logistics sector is set to witness a period of sustained growth in the coming years, writes Amit Maheshwari, CEO and Founder of Softlink Global. The logistics industry in India is expected to grow at 15-20 per cent a [...]

The logistic industry remains fragmented yet the market ground for logistics is undeniably the largest in the world as observed in Asian countries and emerging global markets. The significant reasons behind this fragmentation were due to the following: Lack of resources in respect of capital and talent Non recognition as an established industry Constraints in [...]

The logistics sector is beset with serious problems that are undermining its ability to reach its potential. In my experience and my interactions with the logistics sector over all these years, the one underlining theme that keeps emerging is the poor quality of the manpower available. This is probably one of the most acute problems [...]

Logistics is more than just the management of flow of goods. Equally important is the flow of information. For improving the efficiency of operational mechanisms, it is essential to understand logistics. It aims to better the management efficiency and hence the customer satisfaction level. It is truly a valuable concept for any organisation irrespective of [...]

Mumbai, January 15th, 2011 — Softlink’s new solution for Customs Clearing — Live IMPEX is fast capturing the market attention, gaining wide acceptance. The advanced, web based solution has been expressly designed for managing today’s demanding business needs. Live IMPEX was developed to equip companies carrying out Customs clearing activity to keep pace with the [...]

LeanLogistics, will be a featured supplier at the TopSource 2012 Summit, which will bring together procurement professionals serving the retail industry.

LeanLogistics, a global solutions provider of transportation management system (TMS) applications and supply chain services, is pleased to announce its shared services partnership with JBF Consulting.

LeanLogistics, a global solutions provider of transportation management system (TMS) applications and supply chain services, and Keystone Foods will host "Shifting in the Driver's Seat: Taking Control of Transportation" on Tuesday, Jan. 24 at 2:15 PM EST produced by WTG Webinar.

Emerging technology platforms are accelerating the maturation of transportation and logistics solutions, particularly those that enrich and empower the user community by integrating partners and aggregating data. The Software-as-a-Service (SaaS) transportation management system (TMS) is a prime example.

LeanLogistics, a global solutions provider of transportation management system (TMS) applications and supply chain services, today announced it has been positioned by Gartner, Inc. in the "Visionaries" quadrant of the "Magic Quadrant for Transportation Management Systems."

LeanLogistics, a global solutions provider of transportation management system (TMS) applications and supply chain services, and Topco Associates LLC will host "Transportation Management: Shifting from Tactical to Strategic" on Tuesday, Nov. 8 at 2 PM EST.

The globally operating Kuehne + Nagel Group has implemented a worldwide cold chain education programme for which the company recently received the “Life Science Logistic Partner of the Year 2012“-award.

Kuehne + Nagel announced today that is has entered into an agreement to take over the specialised Australian freight forwarder Link Logistics International Pty. Ltd. The acquisition is in line with Kuehne + Nagel’s strategy to globally expand its activities in the field of perishables logistics.

The global pharmaceutical Group Roche has awarded logistics contracts for Greece to Kuehne + Nagel. The two companies have jointly developed an environment-friendly logistics solution which can substantially reduce CO2 emissions.

Worldwide medical equipment manufacturer, Hill-Rom Holdings, Inc., (NYSE:HRC) presented its “Emerging Global Partnership Award” to Kuehne + Nagel at its American Supplier Day Conference recently held in Indianapolis, Indiana.

Bonfiglioli Pvt. Ltd has selected Kuehne + Nagel to manage the warehousing operations for its new assembly plant in Chennai, India. The Bonfiglioli Group, based in Bologna, Italy, is a world leader in the supply of power transmission and control systems.

At the Dubai Airshow, Embraer and Kuehne + Nagel announced the extension of their global partnership to include the set-up of a logistics hub for the Middle East and Africa region. The hub will be located in Kuehne + Nagel’s logistics centre in Dubai Logistics City (DLC), offering spare parts logistics for the Embraer commercial aviation fleet.

The Hague – Eight out of ten women find that a little surprise, like a card with loving words or a box of chocolates, is the nicest thing to receive on Valentines Day. This fact emerged from PostNL’s research into Valentine gift giving behaviour. Over half of Dutch men (63%) said that they plan to give their sweetheart (or secret sweetheart) a little something on 14 February. Most of these men (36%) go to a shop to buy a present, but don’t spend that much time selecting this. One in four really go out shopping to find just the right gift. The same percentage prefer speed and convenience, buying the gift online.

The Hague - The quality of consumer mail delivery in 2011 has achieved one of its highest in over 20 years scores with 96.1%. By law, PostNL must score at least 95% for the standard overnight delivery services within the Netherlands. This concerns the mail deposited in PostNL’s public postboxes. As a rule, these items must be delivered the next working day.

The Hague – Today PostNL is presenting two stamp sheetlets featuring historic Dutch country houses. 2012 is the Year of the Historic Country House, charming cultural heritage sites that are being celebrated by PostNL with the issue of stamp sheetlets Beautiful Netherlands Mattemburgh and Amstenrade. These heritage residences, surrounded by gardens or parks, were built between the 17th and 19th century by wealthy city dwellers in nearby countryside locations.

The Hague – January 1967 saw the launch of the single Land van Maas en Waal from the LP Voor de Overlevenden by popular Dutch singer-songwriter Boudewijn de Groot. Now, 45 years on, PostNL is issuing a stamp that lets you listen to his greatest hit using a smartphone.

The Hague – PostNL today issued Red Cross stamps on the theme of first aid. By purchasing these stamps people will help the Red Cross increase awareness of first aid in the Netherlands. The stamp sheetlet contains a special QR code that smart phone users can scan to download the Netherlands Red Cross’ first aid app for free. The app ensures that you always have the information you need to help a casualty.

The Hague – PostNL is helping small and medium sized enterprises collect invoice payments faster by means of a free online tool. More and more SMEs are having difficulty collecting invoice payments, with at least 1 billion euros being lost each year due to uncollectible invoices. Not being able to collect invoice payments is the major cause of one in four insolvencies in the Netherlands. Also, 60% of SMEs have customers who do not pay or who pay too late.

The U.S. and Korean governments announced Tuesday that the long-awaited free-trade agreement between the two nations will take effect March 15th. Congress approved the FTA in October after languishing for years along with similar agreements with Colombia and Panama, after changes were made to the original agreements.

The Colombia agreement was signed in 2006, and the Korea and Panama deals were signed in 2007, but they were never submitted to Congress for approval. Concerns over some of the terms, notably labor rights issues in Colombia and Panama, and access to the auto market in Korea, caused the delay in enactment.

The following is a statement from the U.S. Trade Representative:
United States Trade Representative Ron Kirk announced today that the U.S.-Korea trade agreement will take effect on March 15th, 2012. This announcement follows the completion over the President's Day weekend of work by the United States and Korea to review each other's laws and regulations related to the implementation of the agreement. The United States has exchanged diplomatic notes with Korea in which each side confirmed that they had completed their applicable legal requirements and procedures for the agreement's entry into force.

"In a few short weeks, the promise of the U.S.-Korea trade agreement - including tens of thousands of export-supported jobs with better wages - will start to come home for American businesses and working families," said Ambassador Kirk. "President Obama insisted that we get this agreement right by forging a better deal that led to strong bipartisan support in both houses of Congress. Entry into force of this agreement will open up Korea's $1 trillion economy for America's workers, businesses, farmers, and ranchers while also strengthening our economic partnership with a key Asia-Pacific ally."

On March 15th, almost 80 percent of U.S. exports of industrial products to Korea will become duty-free, including aerospace equipment, agricultural equipment, auto parts, building products, chemicals, consumer goods, electrical equipment, environmental goods, all footwear and travel goods, paper products, scientific equipment and shipping and transportation equipment.

Also on March 15th, almost two-thirds of U.S. exports of agricultural products to Korea will become duty-free, including wheat, corn, soybeans for crushing, whey for feed use, hides and skins, cotton, cherries, pistachios, almonds, orange juice, grape juice, and wine.

The agreement also includes a number of significant commitments related to non-tariff measures that will also come into force on March 15th, including obligations related to motor vehicle safety and environmental standards, enhanced regulatory transparency, standard-setting, technology neutrality, and customs administration. Strengthened protections for intellectual property rights benefiting American creators and innovators will also come into force on that day. Finally, commitments opening up Korea's $580 billion services market will also be in effect beginning March 15th.

These commitments are backed by the agreement's strong enforcement provisions, which will enable the United States to hold Korea to its promises under the pact.

If you have any questions concerning the US-Korea Free Trade Agreement, or want to know if your goods are eligible to receive benefits under this program, please contact OHL Trade Services at tradeservices@ohl.com.

On February 15, 2012, a working committee will meet with the Secretariat of CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) in Geneva, Switzerland, to discuss the promotion of utilizing electronic CITES documentation globally.  The same working committee is working to persuade US Fish and Wildlife to convert to fully electronic CITES documentation to expedite the time required to acquire documentation for trade in CITES merchandise. 

Mary Jo Muoio, SVP OHL Trade Services, will represent OHL and our customers on this working committee.  Should you have any specific questions of concerns that Mary Jo could raise on your behalf, or would like more information, then please don’t hesitate to contact OHL Trade Services.

According to CSMS # 12-000033, CBP is aware of a temporary disconnect between an ABI entry’s paperless release and its associated AMS bill on the mornings of January 19th, 25th, 26th, and 27th.

In the first hour of each of those days (from 00:00 to 01:00 EST) entries which received a Paperless Release selectivity result transmission did not trigger a release posting in AMS, the system recognized by carriers and port operators. CBP has manually posted the 1C release for the shipments; as a result, AMS users will see the 1C posted from the HQ port code (9900).

If you have determined that your entry went through selectivity in the time frames listed above and the carrier is still not seeing the release, we recommend checking the release status of the associated bills by querying the bill status via the ABI Query Current Entry Status transmission. If you have any questions concerning the release of your goods, please contact your OHL account manager. If you have any other questions surrounding entry and release processes, do not hesitate to contact OHL Trade Services at tradeservices@ohl.com.

According to CSMS # 12-000031, a new ISF Report is now available for importers and filers in ACE. Users will need to subscribe to the “Late ISF Importer Report (PDF)” by following the steps below –
1.    After logging onto the ACE Secure Data Portal, select the References Tab
2.    Select Launch ISF
3.    Select Reports
4.    Select Subscribe to Reports
5.    Select the Late ISF Importer Report (PDF)
Importers may designate OHL as a proxy user for ACE account management assistance. For more information concerning ACE account management using the proxy settings or ISF progress reports, please contact OHL Trade Services at tradeservices@ohl.com.

OHL has been named a 2011 Waste Reduction Awards Program award recipient. WRAP is administered by the California Department of Resources Recycling and Recovery, and demonstrates that businesses and nonprofits are instrumental in recycling efforts.

OHL’s Southern California region recycled 2 million pounds of materials, and prevented these materials from being dumped into a landfill. By instituting recycling initiatives in each of its warehouses in the region, OHL recycled cardboard, plastic wrap, plastic and metal banding, pallets, metal, paper, and other miscellaneous items thus keeping them  out of landfills. As a result of OHL’s recycling initiatives, the company earned $165,000 in recyclable revenues for four of its warehouses.

CalRecycle Director Caroll Mortensen said, “This year’s WRAP winners are evidence that businesses and organizations of all sizes are achieving significant waste reduction and recycling goals, all while helping protect the environment and preserve our natural resources. In 2011 we have 46 first-time winners, and many organizations that have come back year after year with new and stronger waste prevention programs.”

“At OHL, we are continuously looking for  ways to  improve our processes for our customers and for our communities,” said Irene Fogarty, Regional VP for OHL Inland Empire. “June Brown, OHL’s Inland Empire Facilities Manager, noticed that much of the waste we were generating on a daily basis could be recycled. With the help of our partners at Ability Counts and our OHL employees, we were able to prevent 2 million pounds of materials from entering landfills in 2011.  This is just a small example of what can be accomplished with great leaders that are filled with a passion for social responsibility. ”

OHL is committed to giving back to the community through partnership and participation with various organizations. The OHL Inland Empire region has not only been recognized as a WRAP recipient, but also as a United Way Top Partner, and the Company of the Month in December 2011 for Inland Empire United Way.

Under Armour has trusted OHL for 3 years with its customs clearance requirements in the U.S and Europe. Over the course of this relationship Under Armour has grown into a $1.3B company. As a result of this explosive growth, the brand can be seen in every facet of life, from gyms across the country to stadiums around the world.

OHL has worked with Under Armour to clear its shipments through customs timely and efficiently in order to accommodate this explosive growth. In celebration of a continued successful partnership, Under Armour and OHL joined forces  for a bowling night. Event participants saw their fair share of strikes and spares. Both teams donned Under Armour shirts reading “UA and OHL – A Striking Team.”

OHL looks forward to the continued partnership with Under Armour, as their expansion of high performance products continues.

As a friend of mine recently quipped, “This process allows your customers to do the talking and your inventory to do the walking.” She was referring to demand-driven supply chains (DDSCs).

This is not a fad. DDSC is a transformational strategy because it changes the way organizations think about the marketplace – replenishment, promotion management, markdowns, and so on, for the end-to-end supply chain. Demand-driven supply chains offer a way to get ahead of the competition by reducing inventory, satisfying customers, and taking care of your organization’s bottom line.

To prove my point about demand-driven, let me share an article with you that I read a couple weeks ago in Supermarket News, POS Drives Replenishment in Food Lion Test.

To summarize, Food Lion is working with is vendors, such as PepsiCo, to “replenish its distribution centers (DCs) and stores by offering them visibility into current and expected consumer demand as reflected by store-level inventory and sales.”

According to the article, “the results of the pilot were ‘staggering.’ Food Lion’s DC inventory was reduced between 12% and 27%, DC out-of-stocks were cut between 21% and 77% and store out-of-stocks were trimmed by 20%.”

Wow, the numbers speak for themselves. Why keep your capital held up in inventory?

It may require some upfront expenses to get your supply chain operating with demand-driven processes, but in the end you will see fewer headaches and higher profitability, along with better visibility for your end-to-end supply chain.

If you would like to get a fundamental grasp on demand-driven, download this new paper, Demand-Driven Supply Chains: Getting It Right For True Value.

Need further evidence? Look at the success of Apple, P&G, Amazon, Cisco Systems, and IBM – all have begun to recognize the opportunity that DDSC provides.

They have changed their operations strategies to focus heavily on demand-driven opportunities and transformed their processes, people, and technologies to execute in superior ways.

Is your supply chain demand-driven? If so, what benefits are you seeing? If you are moving in that direction, what tips can you offer other companies?

Go!Go!Go!

Jim

Resources

Demand-Driven Supply Chains: Getting It Right For True Value                               

Principles and Benefits of Demand-Driven Supply Chains

Photo Credit: jimmyharris

You’ve seen the opinions of Chris Ferrell, transportation expert and Director of the Tompkins Supply Chain Consortium, several times on this blog. Today, he shares his insight into how issues past, present and future affect the ever-evolving transportation industry.

-- Jim 

Now that the Federal Motor Carrier Safety Administration (FMCSA) has made an announcement on its highly-anticipated Hours of Service (HOS) rule, one of the major points of uncertainty within the transportation industry has been removed. 

Whether or not the HOS decision was good is largely a matter of perspective.

From the carrier/shipper point of view, it is fair to say that while the new law is more restrictive than the current regulation, the final product isn’t nearly as limiting as what was originally proposed. The regulation officially hits the books this month, but it will not be subject to compliance until July 2013.

I’m not sure “it could have been worse” really counts as a victory for shippers and carriers. It does represent the elimination of a substantial amount of uncertainty which, in this economy, is enough to restrain investment in both capital equipment and long-term relationships.

So, with that significant hurdle crossed, what’s the next big item to watch for?

While professionals within the transportation industry may make strong, valid cases for driver shortage or equipment age, I believe the statistic to really watch will be fuel.

There is ample evidence to support the argument that when gasoline prices cross the $4.00 barrier, consumers begin to substantially scale back on other expenditures. And while the current national average has been hovering around $3.40 to $3.50, this has been largely due to weakened global demand during a prolonged and tepid economic recovery.

The other potential uncertainty with fuel is on the supply side of the Middle East. For more insight on this, refer to the excellent and succinct analysis of Logistics Management’s Derik Andreoli.

What does the future hold? Well, for one, the civil unrest which occurred during the Arab Spring of 2011 could once again wreak havoc on oil prices in 2012. When the events first occurred, average gas prices briefly spiked above the $4.00 barrier in May before President Obama tapped into the nation’s strategic oil reserves for the sole purpose of keeping the fledgling economic recovery on track.

Now, with Iran rattling sabers, Libya still picking up the pieces from a regime change, lingering unrest in Egypt, accelerated protests in Syria, and Iraq preparing for life without the presence of the U.S. Military, there is a lot of uncertainty that will need favorable outcomes to avoid any kind of supply disruption.

And beginning at a $3.40 price point, if the economy really starts to heat up, or if there is even a small problem in one of a number of OPEC nations, there is not a lot of room between current prices and the point at which consumers are compelled to divert all of their discretionary spending to fuel – a sort of self-imposed governor on the economic engine.

So pay attention to your price at the pump, knowing that the ramifications of fuel reach far beyond your pocket book or the transportation industry and into every corner of the economic recovery.

Also, let us know what you think will have the greatest impact on transportation in the next eight months – fuel, regulations, other?

- Chris Ferrell
 

More Resources

Transportation Report Reveals Industry Insights into Volume, Capacity and Pricing

Transportation Cost Reduction

The 12 Best Practices of Freight Bidding

Celebrations recently came to a close for the Chinese New Year. The Year of the Dragon has begun, making it a good time to reflect on what’s ahead for the country.

In China, 2012 will be a year of keeping economic growth steady, as well as employment. Trade is expected to continue to soften, just as it did in 2011. Western companies should anticipate some level of currency fluctuation as well.

Change in the political scene is also likely in China, as the country transitions later this year to new leadership when both the president and the premier step down from their party posts. Various policies in business taxation, intended to stimulate growth in some areas, will occur in 2012.

But what do these expectations mean in terms of profitable growth strategies for Western companies looking to move operations into China?

Michael Zakkour, who writes the China Business Blog and Podcast and is a Principal at Technomic Asia (a Tompkins International company), posted in his blog that China needs to continue to be the main focus of strategy for profitable growth.

Zakkour noted that one major adjustment to strategy for Western companies moving into China is the increased need to send the “A” game to the country. A typical move for Western companies is to try innovation and ideas in their home markets, then move them later into China as an afterthought. This includes people, processes and technology.

 To be competitive, Western companies must move the innovative people, processes and technology into China at the same time as markets in the West, or even as the first market entry point.

For more tips on market entry into China, see Zakkour’s entire post at http://www.technomicasia.com/blog/2012/02/08/top-8-trends-in-china-for-2012/

Is your company in China? If so, what are you seeing now and what changes do you expect throughout the year?  Be glad to compare notes.

Go!Go!Go!

Jim

More Resources 

Asia Supply Chain Excellence

 

Asia Supply Chain Excellence Report - January 2012

Photo Credit: L2F1 

A few months ago, we wrote that “2012 will be a return to full speed ahead for M&A.” Our Strategies to Transform Your Supply Chains in 2012 article noted that M&A growth is expected to be robust.

But at this point, deal activity is slow out of the gate. The Financial Times reports that “deal making has had its slowest start to a year for nearly a decade, as companies’ appetite for M&A remains suppressed by the uncertain outlook for the global economy.”  There is, however, a big caveat here – as the article later points out that company leaders are realizing that M&A needs to drive growth. 

So as cash flow becomes available, organic growth slows and boards demand growth, we still expect a peak in M&A activity this year. Will it surpass 2011? Possibly not, but the focus will still be on profitable growth.

And if you want to succeed in M&A for value creation in the upcoming year, there are two essential requirements: speed and due diligence.

1) Speed – As supply chain leaders, we want to capture maximum value from an acquisition and set the pace for results. Stakeholders, the marketplace, and competition all watch this speed of acquisition and will value the acquisition based on the speed at which results are achieved.

2) Due diligence – When engaging in M&A activity, there is no give-and-take between creating it quickly and doing it right. To do right simply means to pursue the three M&A due diligence processes: commercial due diligence, culture due diligence, and supply chain due diligence. All three provide opportunities for revenue growth, cost reduction and risk mitigation.

There are also four very important strategies for creating value in M&A activity: business strategy, acquisition strategy, supply chain strategy and operational strategy. Our new white paper, Laying the Foundation for Successful M&A - A Supply Chain View covers the four strategies in more detail.

It appears that M&A this year will be more about driving growth and creating value than in previous years, and taking a supply chain view is the way to go.

What do you predict for M&A in the coming months? How do you see the supply chain fitting into the picture?

GoGoGo!
Jim

Resources

Mergers & Acquisitions Can Be Risky Business Without Supply Chain Due Diligence

Acquisition success thrives on supply chain integration

Mergers and Acquisitions in the Service Supply Chain Industry

 

I am betting that you could answer this question in a variety of ways. But if your answer is somewhere along the lines of “not so well,” here’s some information that should pique your interest.

You may have read about our new partnership with ArrowStream. We are working together to help clients find savings in their order-to-delivery processes.

And last week, a couple of our logistics/transportation experts, Susan Evans and Bill Loftis, presented a Supply Chaincast on Bridging the Gap Between Transportation and Inventory Practices. This webcast showcases an innovative approach to driving inbound logistics savings with the ArrowStream Inbound Transportation Management (ITM) collaborative technology solution.

As a partner, we provide operations strategies, process improvements, and implementation assistance to ensure early and sustainable payback.

The ITM solution helps optimize order patterns to satisfy inventory requirements and optimize transportation. It also allows complete visibility on product (or service) orders, as well as complete visibility on transport constraints, delivery requirements, or financial targets.

Some other benefits include:

• A shared planning system for collaboration between replenishment and transportation
• Improved performance: inventory turns, transportation cost, and service (fewer stock-outs)
• Improved operational issues: less miles and less dock congestion

If you’d like to dig deeper into this topic, download the on-demand webcast: Bridging the Gap Between Transportation and Inventory Practices.

Go!Go!Go!

Jim
 

Resources 

Tompkins Supply Chaincasts

Tompkins Associates, ArrowStream Partner to Provide Innovative Supply Chain Solution for Product Distribution (Press Release)

Transportation Solutions & Assessment

 

Global operations and strategies for companies in industries like retail, consumer products, and food & beverage are becoming more and more important to profitable growth. These emerging markets, particularly in China, provide major opportunities.

Having a China strategy is more important than ever in 2012, as “China for China” production by Western companies is creating great opportunities for companies to grow worldwide.

While there is a lot of buzz for various industries, logistics service providers should also make emerging global markets like that in China a priority this year. A newly published 3PL report showed that both shippers and LSPs see China, India, Brazil and Mexico as the biggest emerging markets for the industry.

Tompkins’ experts agreed in this article on the top priorities for LSPs in 2012 that success in these markets will hinge on having “the right strategy, the right structure, and the right partners” in place.

Though it is a challenge, the rewards for moving into these markets are great for LSPs, even if there isn’t as much buzz in the industry as compared to others out there. Expanded global capabilities are good for both LSPs and shippers to reduce costs while gaining competitive advantage.

See more on other priorities for LSPs in 2012 in this article.

GoGoGo!

Jim Tompkins

Photo Credit: FlyingSinger 

WATERLOO, Ontario, Feb. 21, 2012 (GLOBE NEWSWIRE) -- Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, announced that Chris Jones, Descartes' Executive Vice President Marketing & Services, has been named a 2012 Provider 'Pro to Know' by Supply & Demand Chain Executive magazine.

WATERLOO, Ontario, Feb. 8, 2012 (GLOBE NEWSWIRE) -- Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, announced that it was awarded the 2011 Intermec ISV Innovator of the Year Award for the United States. Of the numerous independent software vendors (ISVs) that Intermec partners with, the Descartes/Intermec alliance was chosen based on 2011 performance. As part of the alliance, customers can leverage Intermec's mobile technology and Descartes' comprehensive Routing, Mobile and Telematics suite to address a wide range of challenges faced by fleet managers.

WATERLOO, Ontario, Feb. 2, 2012 (GLOBE NEWSWIRE) -- Descartes Systems Group (TSX:DSG) (Nasdaq:DSGX), the global leader in logistics technology, is scheduled to report its fourth quarter and fiscal year 2012 financial results before market open on Thursday, March 8, 2012.

WATERLOO, Ontario, Feb. 1, 2012 (GLOBE NEWSWIRE) -- Today, Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG), the global leader in logistics technology, announced that Art Mesher, Descartes' Chairman and Chief Executive Officer, is scheduled to present at the Stifel Nicolaus Annual Technology & Telecom Conference. The conference takes place in Dana Point, California at the St. Regis Monarch Beach on February 7-9, 2012.

WATERLOO, Ontario, Jan. 23, 2012 (GLOBE NEWSWIRE) -- Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG), a global leader in logistics technology, acquired GeoMicro, Inc., a leading California-based provider of advanced geographic information systems (GIS) and commercial turn-by-turn navigation.

NEW YORK, Jan. 16, 2012 (GLOBE NEWSWIRE) -- National Retail Federation (NRF) 101st Annual Convention & EXPO -- Today, Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG), the global leader in logistics technology, unveiled significant extensions to its Logistics Flow Control solution. The new modules provide retailers with better coordination of supplier-managed shipments and synchronize commercial and logistics documentation required for accurate import duty filings.