Eric Joiner's Freightdawg.com - The Logistics and Supply Chain Blog!

DPWN Opens Idea Factory

Deutsche Post World Net Opens Future Lab

Deutsche Post World Net opened the DHL Innovation Center in Troisdorf, Germany on March 27, 2007.

The DHL Innovation Center’s goal and mission is to develop highly innovative products based on future logistics trends then bring them to market. In addition, the laboratory of the future forms an umbrella organization for all areas of technical innovation management within the DPWN Group. The Innovation Center plays a key role in the Group’s strategy to become the world’s most innovative logistics provider with Deutsche Post World Net as the No. 1 company in the global logistics market.

DPWN Chairman, Dr. Klaus Zumwinkel commented in his opening address that: “Today, we are the largest logistics company in the world. But size alone is no measure of success. What counts is our customers’ satisfaction. This is why we will amaze our customers with even newer and more future-oriented products.”

Inside the DHL Innovation Center

The projects developed at the DHL Innovation Center are in cooperation with global business partners including IBM, Intel and SAP. The DHL Innovation Center also conducts partnerships in research with the logistics institutes at the Massachusetts Institute of Technology (MIT) in Boston and Zaragoza, and the German Fraunhofer institutes.

In addition to serving as a laboratory of the future, the DHL Innovation Center also has a showroom where visitors can see the interrelationship of global product streams and logistics networks. Worldwide networks can be visualized on a round table that serves as a projection screen, enabling customers to examine individual streams of goods and information.  Representatives from politics, business or society as well as investors can obtain information on the latest developments in the logistics sector and experience them directly.

At the DHL Innovation Center, which is unique to the logistics industry, researchers and developers from all over the world can exchange their knowledge and design practical innovations for global use. The vision is to create synergistic networks for new ideas and accelerate their development from a prototype to Group-wide use.

Prototypes currently under development are showcased in the centers' exhibition area; these include a robot that can unload delivery vehicles by recognizing different sized packages, picking them up and placing them on a conveyor belt. In addition to the laboratory and showroom, the DHL Innovation Center has also been equipped with a conference area suitable for holding group meetings and exhibitions.

China: Georgia On My Mind

Georgia remains a key US investment target for China and vice versa. With Atlanta as a hub, and Delta Airlines as an enabler, business with China is expected to flow abundantly.   

Firms who got to know  Atlanta during the 1996 Summer Olympics are now exercising that knowledge in Beijing while still investing in Atlanta as an international travel, convention and business destination.

clipped from atlanta.bizjournals.com China will continue on Georgia's mind Atlanta role as international player to grow China will remain a prime target for Georgia investment, and vice versa, in 2007. Local experts also expect business to flow abundantly to and from at least 10 other countries. The reason Atlanta is on the radar for so many countries is that 10 years after the Olympics, Atlanta is a truly international city thanks to a series of strategic, synergistic moves and partnerships initiated by the business community, universities, chambers of commerce, the airport and Delta Air Lines Inc., said Sheb True, director of the International Center at Kennesaw State University's Michael J. Coles College of Business. Georgia remains a US investment target for China and vice versa. With Atlanta as a hub, and Delta Airlines as an enabler, business with China is expected to flow abundantly.

UPS announces Delivery Intercept Service

UPS today announced a new service called "Delivery Intercept" which allows disruption of packages in transit in the UPS network for any reason ranging from document version control to credit risk on a customer.  Expedited service conversion is also possible with diversion of parcels to UPS Sonic Air same day delivery.

Read the rest of the press release on the UPS site at the clipped link show below...

clipped from ups.com ATLANTA, March 26, 2007 – UPS (NYSE: UPS) today announced the launch of UPS Delivery Intercept, an automated   service that gives customers ultimate flexibility and control by enabling shippers   to intercept and reroute packages before they’re delivered. UPS Delivery Intercept is the industry’s only Web-enabled package interception   service. With UPS Delivery Intercept, a shipper simply uses a UPS package application   such as UPS WorldShip®, UPS CampusShip® or UPS Internet Shipping®,   clicks on the 1Z tracking number and requests a reroute. Interception requests   also can be made through a shipper’s myups.com account as well as via   UPS Signature Tracking®. Shippers can access the service 24/7 to request UPS to intercept packages being   shipped from and to anywhere in the United States and Puerto Rico. Building   on other established UPS technologies, customers who use Quantum View Notify™   can receive notification of the requested and successful interceptions. Receivers   also can view the intercept status when they track the package on any UPS visibility   system.

New DHL International Gateway in So. California

The article below is a press release excerpt from DHL Express.  Please visit the link below to read the rest of the clipping.

clipped from www.dhl-usa.com International Flight to Speed Deliveries of DHL Asia-Pacific Shipments MARCH 26, 2007 - DHL, the world's leading express delivery and logistics company, said it will open its new international gateway in Southern California today, to enhance service quality and meet the growing needs of DHL customers shipping to and from Asia-Pacific and the Western United States. To establish the new International Gateway operation, DHL has invested nearly $3 million at its West Coast Distribution Facility in Riverside, Calif., adding on-site offices specifically for providing customs-processing and clearance functions related to DHL international shipments upon arrival.  The newly expanded operation will come fully online with the arrival on Tuesday, March 27 of a flight from DHL's Central Asia SuperHub in Hong Kong into the facility. DHL's Riverside ground and air hub personnel will process letters and packages as they are off loaded from the Asia-Pacific flight and channeled directly into the DHL West Coast distribution network, making for faster door-to-door delivery of DHL customer shipments from Asia-Pacific to the Western U.S.  "Customers doing business in the world's fastest-growing markets need an efficient, reliable network that allows them to grow their shipments in the active U.S.-Asia Pacific trade lane. This new gateway will provide opportunities for continued growth between West Coast and Asian markets,"said John Cameron, executive vice president of Operations for DHL. "DHL is pleased to be able to leverage the resources of our network to provide West Coast customers with practical benefits in door-to-door service," Cameron added. DHL began operations at its West Coast Distribution Facility in 2005, following a $70 million investment in the lease and development of a new facility on the site of the March Air Reserve Base in Riverside. The facility is strategically located to offer greater connectivity within DHL's extensive domestic pickup and delivery network, for both DHL ground and air express services. According to regional trade policy experts, California's Inland Empire area has witnessed a profound increase in business with the Asia-Pacific region.

7 Tips for Sucessful Visibility Implementation

I originally posted the information below as a comment on Mike Stolarcyzks excellent "IT Factor" article that appeared here at Freight Dawg as well as in the Journal of Commerce yesterday.  However, I subsequently decided to publish it as its own article to extend Michaels comments on the need for supply chain visibility to a discussion on Supply Chain Visibility Implementation.   

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Seven Tips toward Successful Visibility Implementation.

In past lives I have been fortunate to have worked for a dot.com that sold supply chain visibility tools, a carrier / 3PL that marketed its own IT solutions and have implemented a purchased 3rd party commercial visibility suite (Tradebeam).  Once upon a time,  I also sat on the Information Systems Agreement (ISA) executive board for development of ANSI 300 series EDI messages in ocean shipping.

In every case, I found only one universal truth.  Each implementation of an IT solution is different!   Factors ranging from cost containment, trading partner capabilities, limits on customer legacy systems, etc., all present unique headaches.  Standards are a great thing, but without certain specific assets and understandings going into the implementation, the solution will fail. 

"All these experiences eventually lead me to create a list of clues for pain avoidance."

Believe me, these were "notes to self" to avoid future hassles. These are ideas and a few "realities" for streamlining and easing the implementation of any Visibility tools you choose.

1. There is no visibility without trading partners who can contribute the data elements. Write data compliance into your transportation contracts with clearly stated data transmission requirements and the data elements you need. Not all carriers will be able to give you the same info on the same timing. Thats a factor in carrier selection as a balance against rates and transit times.

2. Clearly determine what milestones are important for YOUR supply chain. They may be different depending on which of your product chains you are talking about.  Inbound raw commodities often have different requirements than outbound finished goods in most instances.

3. Determine the ability of all your vendors to provide that information. This will vary by market and mode. You may well get purchase order invoices hand coded in China for some visibility tool, but you will NEVER get them done in France or the Benelux. Too much complaining, incomplete data and big expense. It just won't happen.  (I have war wounds on this subject.)

4. Have a hard look at 3PL solutions for visibility. Make supply chain visibility tools provision be a cornerstone of your 3PL/4PL contracts. Make the 3PL provide the technology because their potential install base, and carrier integration points may be better due to volume. Technology and visibility should be a key element in 3PL selection.  Make sure to ask for referenceable clients, then call the reference and ask them if they would consider a demo of their implemented tool if it is not a commercial conflict.  (Be prepared to become such a reference if it all works out!  Its only fair.)

5. Strongly consider use of XML as a data communication format rather than EDI. XML is much more flexible and it can be customized easily. Most big carriers and integrators vastly prefer it to use of ANSI or EDIFACT messaging because it is readily tweaked and is cheaper to develop.  XML is also a foundation element in "Web 2.0" capability, meaning the ability to put your data into multiple web ready formats and viewing appliances such as your web browser, PDA or mobile phone.  You may find this a key decision that allows for some sexy deployments to your own end customers due to the data flexibility later on.

6. Develop your own SDK (software Development Kit) for XML for use by your carriers and anyone else who wants, or contributes to, your data. Many integrators like UPS or DHL can provide these for their own tools. Decide what elements work for you, then ask all your carriers to develop to that standard.  XML can feed everything from ERP systems to Excel spreadsheets if managed properly.  Your company may also have clients who want data in XML format in order to embed it in their own systems.   Having a standard way to get your data is a good way to enable this.  Just think...you could become a god to your sales department!  I smell a raise coming here.

7. Avoid directly integrating to massive ERP systems like Oracle or SAP. Instead, think about having the messages go into some middleware database that can be easily hooked to a report writer, rather than trying to get special reports from SAP etc. Let the middleware feed SAP, but use a report writer against the database, not the ERP system.  I have found that asking ERP systems to turn nimble backflips on reporting isn't that easy.  So...be clever about it and feed a database first, then feed the beast second. Pull your custom reporting from  a  database report writer.  We can discuss it at the bar later when you deliver to that EVP who thinks "instant gratification takes too long"...his reporting early!

Eric

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Supply Chain Tech: The IT Factor

Michael Stolarczyk is a Senior Director of Business Development with Exel Contract Logistics.  Michael also runs one of the most cogent business blogs on logistics today. The article below will appear in the Journal of Commerce today.   Mike is a friend of mine and has contributed his excellent work for inclusion for Freight Dawg as well.  I highly encourage your regular visitation to his blog site called BlogOnLog. 

Michael may be reached at michael.stolarczyk@exel.com.

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Supply Chain Visibility: Not Just for Cargo

The globalization of commerce has made it necessary for companies both large and small to have a world view – a big-picture, global perspective that helps them see the possibilities for their business in their entirety.  It’s particularly essential for manufacturers whose markets demand that they source from overseas. 

A U.S. apparel company might source fabric from China, manufacture garments in Vietnam, send them to Italy for customer design work, then ship final product to a stateside warehouse for retail delivery.  There’s no pulling off that complex, unbelievably urgent piece of multi-party commerce without a world view – and some fairly sophisticated logistics technology. 

Pulling it off in an economical way – and I mean economical in every sense – comes down to far more than technology.  It comes down to having a world view of the supply chain.  A view that extends well beyond the physical means of moving products and considers the impact the supply chain has on corporate finance. 

Technology is a good place to start, though.  The need for advanced IT solutions may seem obvious, but The Aberdeen Group’s research suggests that a surprising number of companies still have a long way to go when it comes to having the kind of sophisticated global supply chain technology that can help them make crucial and timely financial decisions.

According to EyeForTransport’s 2006 Fortune 500 Supply Chain & Logistics Challenges Report, many Fortune 500 companies report their global supply chain technology is inadequate to provide the kind of timely information required for budget and cash flow planning.  They’ve got cargo visibility but no fiscal visibility, if you will. 

The global supply chain has been relatively ignored because it traditionally has been a small part of a company’s business mindset.  The world has changed, though, and companies now realize that neither their IT systems nor their fiscal models are set up to support globalization.

With international sourcing growing at a rapid clip, companies have been caught off guard and are now scrambling to close the technology gap.  Without fiscal models to account for costs throughout these systems, and, in most cases, without additional staff, global supply chain managers face the daunting task of managing this activity using makeshift systems, faxes and phones.

Because the supply chain technology void affects logistics managers’ ability to deliver crucial financial data, some CEOs and CFOs have noticed and are now joining the technology crusade.  This may open a window of opportunity for logisticians who can tie technology investments to a business case outside the supply chain in order to secure needed funding for global commerce tools.

After a company decides to invest in technology, the next question is whether to develop solutions in house or partner with a technology or logistics provider.  According to The Global Institute of Logistics Global IT Council, organizations are increasingly choosing to forego proprietary solutions and seek outside help. 

Upfront investment and implementation costs are primary factors.  Maintenance is another.  So is speed to market.  Most supply chain departments don’t have the budget to buy external technology, and multi-party, collaborative practices are not a core competency.  They also can’t be confident that the technology solution they build today will support their needs five years from now.  They need to be able to combat supply chain inefficiencies now and into the future. 

How do they do it?  By having fiscal visibility within their supply chains.

It’s unrealistic to try to solve every problem at once.  For most organizations, achieving fiscal supply chain visibility should be both the immediate and ultimate goal, and it can be accomplished in steps.

First, pinpoint the area of the global supply chain that can benefit the most from a quick technology upgrade and make that change.  Keep in mind that technology is not the magic fix for global logistics problems.  Technology for technology’s sake is nothing.  It has to be accompanied by skilled people and efficient processes in order to work.  That may make it a larger investment, but it will reduce risk and improve return. 

The next and most important step is to fiscally account for the total supply chain – not just international inbound or domestic distribution, but every aspect from Purchase Order to Point of Purchase (PO to Pop).  Fiscal visibility, from PO to PoP, is the essence of supply chain efficiency.  It quickens cycle times and reduces inventory investment.  It also draws interest and excitement from CFOs, who invariably come knocking on logisticians’ doors asking, “What’s next?”

Michael

Airline Travel: How to Effectively Complain.

I travel every week.   Periodically, it gets ugly.  The article below is syndicated from the Wall Street Journal Online and gives good advice on how to effectively complain to major airlines.   

The key is to know where to go, and more importantly what you want in return for the inconvenience.

Never tell the airline you'll never fly with them again! What incentive would they have to compensate you then?   

Visit the link below from finance.yahoo.com to read the rest of the article.

clipped from finance.yahoo.com What Airlines Do When You Complain By Scott McCartney Friday, March 23, 2007 provided by Wall Street Journal Online Mike Wallace of San Francisco was so mad about recent travel   experiences and a lack of response to his complaints that he searched the   Internet for email addresses at UAL Corp.'s United   Airlines and fired off an angry letter to more than 60 company officials. No   response. A second email to all the addresses he could find that used   @united.com and @ual.com did get some attention. In all, after corresponding   with United a dozen different times about being stranded at airport hotels on   two different trips because of United flight problems, Mr. Wallace and his wife   got some measure of satisfaction: business-class upgrades for some future trips   and a $400 voucher. "It's a series of systems, policies and nameless, faceless people in place to wear you out. Most people just give up, but I pursued and pursued and pursued before I finally got something," said Mr. Wallace, an environmental consultant and elite-level United customer. A United spokeswoman says the airline's goal is to "satisfy our customers the first time they call, write or email us." After the aggravation of mechanical breakdowns, computer meltdowns, schedule changes, lost luggage, missed connections and long telephone or airport waits, many customers fire off angry complaints to airlines -- only to get less-than-satisfying responses. But there are ways to get more redress, airlines and travel experts say. (This week, The Middle Seat focuses on how airlines handle complaints; next week, the column will look at the Department of Transportation's role in addressing fliers' grievances.) A common mistake: Telling an airline you'll never fly them again. If so, then the airline no longer has an incentive to try to win back the customer, some airline officials say.

Leadership: China Hot Seat

China is the worlds factory floor.  Not only do global retailers source from China, but Chinese manufacturers source from the world in terms of finding competent managers to run factories. 

Especially rare are Human Resources executives who can help in screening, hiring and managing local talent in China. Chinese HR departments work hard at hiring western talent, as well as adopting western measurement skills in order to evaluate employees.

clipped from www.workforce.com HR on the Hot Seat in China Not only do HR departments at multinationals face intense challenges when it comes to leadership talent matters, but HR executives themselves are among the most sought-after professionals. By Ed  Frauenheim China these days, human resource leaders are on the hot seat—in more ways than one. Not only do HR departments at multinationals face intense challenges when it comes to leadership talent matters, but HR executives themselves are among the most sought-after professionals. Helen Tantau, senior partner with executive search firm Korn/Ferry International in Shanghai, says HR leaders and procurement officers are at the top of the list of the managers that companies in China need most. She says that overall, local Chinese leaders with good track records can expect salary increases in the 10 percent to 20 percent range. But talented HR managers are seeing raises of 20 percent to 30 percent. Part of the reason is a dearth of good business-focused HR professionals in China, Tantau says. Another factor is that companies are locating their Asian headquarters in China, and need regional HR executives. "Even for just the China roles, there are not enough good people to go around," Tantau says. Trouble finding and keeping capable HR execs exacerbates tricky leadership-related tasks at China operations—jobs that typically fall to human resource departments. Last year, the American Chamber of Commerce in Shanghai surveyed 274 U.S.-based companies with operations in China and found that the No. 1 business challenge in China was "human resource constraints, including attracting and retaining managers and workers." In the survey, 43 percent of respondents said the issue of recruiting capable Chinese managers had a strong negative impact on their business operations in China.

Supply Chains in Space!

Leave it to the brainiacs at the Massachusetts Institute of Technology (MIT) to think about the provisioning of interplanetary fixed base stations.   Engineers at MIT's Space Logistics Project, Olivier de Weck and David Simchi-Levi have created a tool called SpaceNet, which models movement of freight between Earth and stations on the moon.  This is the kind of project Neil Armstrong would love!

With transit times of up to 9 months on a mission to Mars, supply chain execution in space would be difficult.  The graphic at right shows how nodes within a space supply chain network might work.   Launch locations from Florida, Guyana, Kazakhstan, China and the International Space Station are included as staging areas to serve the Moon.  The Moon could then serve as an intermediate point for Mars missions. 

Now how long until FedEx or DHL start advertising interplanetary Express services?   

When it absolutely positively has to get there...in 10 months!

clipped from web.mit.edu Engineers create SpaceNet--the supply chain Network of nodes could ensure delivery to moon Deborah Halber,   News Office Correspondent March 19, 2007 If you think shipping freight from Cincinnati to El Paso is challenging, imagine trying to deliver an oxygen generation unit from the Earth to a remote location on the moon. By 2020, NASA plans to establish a long-term human presence on the moon, potentially centered on an outpost to be built at the rim of the Shackleton crater near the lunar South Pole. To make such a scenario possible, a reliable stream of consumables such as fuel, food and oxygen, spare parts and exploration equipment would have to make its way from the Earth to the moon as predictably as any Earth-based delivery system.  Or more predictably: One missed shipment could have devastating consequences when you can't easily replenish essential supplies. To figure out how to do that, MIT researchers Olivier L. de Weck, associate professor of aeronautics and astronautics and engineering systems, and David Simchi-Levi, professor of engineering systems and civil and environmental engineering, created SpaceNet, a software tool for modeling interplanetary supply chains. The latest version, SpaceNet 1.3, was released this month. The system is based on a network of nodes on planetary surfaces, in stable orbits around the Earth, the moon or Mars, or at well-defined points in space where the gravitational force between the two bodies (in this case, the Earth and the moon) cancel each other out. These nodes act as a source, point of consumption or transfer point for space exploration logistics

Inbound Logistics: Port of NY/NJ sets Cargo Record

In a press release dated March 20th, 2007 The Port Authority of New York and New Jersey reported record cargo throughput for the 2006 calendar year. Buoyed by increased inbound trade with Asia, Northern Europe and South America, the port handled more than 5500 vessel calls through the Bi-state port complex.

Port Authority Port Commerce Director Richard M. Larrabee said that in 2006, the total container volume (loaded and empty) handled in the Port of New York and New Jersey was 5,092,806 TEUs, a 6.4 percent increase over the 2005 total of 4,785,318 TEUs and a new annual record. The total value of all cargo handled in 2006 – more than $149 billion – surpassed the previous record of $132 billion, Mr. Larrabee said.

The Port Authority plans 2 billion dollars in port infrastructure improvements in the next 10 years, including harbor dredging, off port roads and an Express Rail on-dock rail facility.  The Port Authority is run as an independent agency and receives no funding from either state.  It is the largest port complex on the east coast of the United States.

clipped from www.logisticsmgmt.com NEW YORK—International cargo volumes in the Port of New York and New Jersey hit record levels in 2006, Port Authority Chairman Anthony R. Coscia and Port Authority Executive Director Anthony E. Shorris announced yesterday at a press conference. Healthy growth projections have prompted the Port Authority to plan $2 billion in seaport investments over the next 10 years. Chairman Coscia said at the press conference: “During the past 10 years, our cargo volume has doubled and our rail volume has nearly tripled.The dramatic increases require us to take immediate steps to ensure that our port continues to grow and prosper.We’ve made a substantial $2 billion commitment to the port that not only will allow larger ships to call on port terminals, but will enhance the flow of cargo on and off the port.These investments will ensure that the port remains a leading generator of jobs and economic activity.”