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An executive summary of industry news

Staff -- Logistics Management, 9/1/2001

  • Top transportation officials from the three NAFTA countries will meet at a summit hosted by the University of Denver's Intermodal Transportation Institute Oct. 18–19. U.S. Secretary of Transportation Norman Y. Mineta, Canadian Minister of Transport David M. Collenette, and Mexican Secretary of Communications and Transportation Pedro Cerisola y Weber will discuss the growing shortage of rail, highway, and seaport capacity in North America. Other speakers will include high-level government and private-sector experts, who will participate in roundtables and panel discussions. Shippers, carriers, and other transportation stakeholders are invited to attend. For more information, call (303) 871-4702 or visit www.du.edu/transportation/summit.

  • Logistics careers can pay off. The median pay for top logistics management executives is $178,700 a year, according to a survey by human resources consulting firm William M. Mercer. The median pay for top supply chain executives is even better, reaching $195,700, while the median for top distribution executives is $130,000, the survey found. Transportation managers report a median pay level of $74,500, and warehouse managers average $59,300. Those figures are generally consistent with Logistics Management & Distribution Report's own annual salary survey, which showed an average salary for logistics managers of $71,200.

  • What, exactly, is supply chain management? A research team at the University of Tennessee, under the leadership of John T. Mentzer, Ph.D., has reviewed hundreds of articles and books and interviewed chief supply chain officers at 20 corporations in an effort to define the term. The resulting definition: "Supply chain management is the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain for the purpose of improving the long-term performance of the individual companies and the supply chain as a whole."

  • A group of maritime industry stakeholders believes it has a partial solution to the problem of port congestion in Southern California. The West Coast Waterfront Coalition, a Washington, D.C.-based group that includes shippers, carriers, terminal operators, intermediaries, and industry organizations, has proposed a pilot program that would move a significant amount of freight through the ports of Los Angeles and Long Beach at night. A working group that also includes representatives of labor unions and port authorities is now studying how best to implement the plan. Although switching to nighttime operations will be costly, says Executive Director Robin Lanier, "... the costs to business of doing nothing about port and road congestion are becoming unacceptably high in terms of lost productivity, a shorthaul driver shortage, and the prospect for legislative mandates that will not work for anyone."

  • Port and intermodal congestion is also the focus of a new U.S. Chamber of Commerce study that will look at the North American port system and related roads. The 14-month research project will be led by the National Chamber Foundation, the U.S. Chamber's public policy and research arm. Researchers from maritime industry academic programs and consulting firms will examine the impact of projected international trade growth on port capacity and related transportation infrastructure. The project's advisory panel includes former U.S. Department of Transportation Secretary James Burnley. Chamber President and CEO Thomas Donohue emphasized the importance of the study, saying, "If we don't improve the roads, rails, and ports to effectively move imports and exports, we will be faced with a global competitive disadvantage of almost unimaginable proportions."

  • A new investment group that specializes in transportation properties has some serious heft behind it. Greenbriar Equity Group LLC, a private equity investment firm, has announced the closing of its first fund, which raised approximately $700 million. Greenbriar (not to be confused with intermodal equipment manufacturer Greenbrier Companies) is led by Jerry Greenwald, Joel Beckman, and Regg Jones. Greenwald is the former chairman and CEO of UAL Corp., parent of United Airlines. Beckman and Jones both previously headed Goldman Sachs' global transportation business. The Rye, N.Y.-based firm will focus on transportation, logistics, and related sectors, including air freight, airlines, trucking, railroads, ocean shipping, trucking, and logistics, the principals said in an announcement.

  • If compliance with hazmat transportation regulations is one of your responsibilities, then consider attending "Managing Hazmat Compliance: Fact or Fiction," to be held Nov. 7–9 in New Orleans. The conference, organized by the Hazardous Materials Advisory Council (HMAC), will offer seminars on such topics as the effects of company structure on compliance, effective communication regarding hazmat requirements, the role of penalty actions in achieving compliance, and best practices in auditing, training, and risk control to improve compliance levels. HMAC President Alan Roberts, former administrator of DOT's Research and Special Programs Administration, will present "Lessons Learned From Investigation of Hazmat Incidents." Other highlights include a regulatory update for North America and a concurrent trade show. For more information, contact HMAC at (202) 289-4550, e-mail hmacinfo@hmac.org, or visit www.hmac.org.

  • Learn more about best practices in logistics in the supply chain age. Join Jim Tompkins and Dale Harmelink of Tompkins Associates, along with one of their shipper customers and aLogistics editor, for an online seminar on Oct. 23 at 1:00 p.m. EST. The seminar will kick off a three-hour Webcast that also will cover best practices in warehouse technology and materials handling. During the opening segment of the event, Tompkins and Harmelink will discuss key issues in integrating disparate operations into a successful supply chain, with a focus on fulfillment, customer satisfaction, and supply chain collaboration and visibility. Pre-registration for this event is required; sign up today at www.octwebcast.lmdr.com or visitLogistics Management & Distribution Report online at www.logisticsmgmt.com.

  • A special offer for Logistics Management readers comes from Thinking Cap Solutions, which provides our exclusive "Market Watch" column on transportation price trends. Seattle-area economists Elizabeth Baatz and Victor Maliar are offering their2002 ICE-Alert Annual Outlook Edition at a reduced rate forLogistics Management's subscribers. The 160-page publication will include data on 318 manufacturing industries, with quarterly forecasts through the end of 2002 for four critical planning concepts under Thinking Cap's proprietary ICE (industry cost escalation) model. Those concepts include escalation in average industry prices, changes in direct manufacturing costs, spending on manufacturing costs per $100 of product sold, and U.S. end-market growth. According to Baatz, the annual report will help users prepare business forecasts, anticipate market changes, and negotiate more effectively with suppliers. To order a copy of the2002 Outlook Edition at the special rate of $345 and get a specialLogistics Management supplement with quarterly forecasts for key freight transportation sectors, contact Elizabeth Baatz at Thinking Cap Solutions. Phone: (360) 452-6159, e-mail: ebaatz@ice-alert.com, or fax: (360) 457-2913. More information about ICE-Alert is available at www.ice-alert.com.

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