Up Front
Staff -- Logistics Management, 10/1/2002
Our annual "Quest for Quality," which presents readers' rankings of carriers and service providers, is one of our best-read articles every year. But if you're looking for more detail than we were able to provide in our August issue cover story, you can order research reports that include results for all of the carriers that were measured, including those that did not take top honors. Individual reports are available for the less-than-truckload, truckload, rail and intermodal, air freight, ocean shipping, and third-party service sectors, priced at $99 each. Or you can order the complete set of six for $550. To order research reports, visit www.logisticsmgmt.com/quest.
A safe logistics operation is a productive operation. That's what the NFI family of companies, which includes NFI National Freight, NFI National Distribution Centers and NFI Interactive Logistics, found after its new safety program led to a significant increase in productivity and a 34-percent drop in injuries in just 10 months. SAFENET, as the program is called, is in place at all of NFI's 110 distribution centers, transportation facilities and on-site customer locations. Among the program's features are daily workplace and equipment inspections and weekly conference calls to discuss safety information, prevention methods and any incidents that may have occurred. According to company officials, equipment downtime and maintenance needs have been reduced, and employee confidence and morale are at an all-time high since SAFENET went into effect.
The Surface Transportation Board (STB) is proposing new regulations that would expedite the resolution of some railroad rate challenges. The proposals would apply to "large" rate cases, where significant sums of money are in dispute. First, the board wants to expedite discovery, the lengthy procedure during which parties seek information from each other, by limiting the types of information that would be admissible in such cases. The STB also proposed allowing informal conferences between agency staff and the parties to facilitate the resolution process. Finally, the proposed rules would require a shipper seeking relief in a large rate case to engage in non-binding mediation prior to filing a formal complaint. The board would assign and pay for a mediator to try to reach a settlement within 60 days. If the parties failed to reach an agreement, the shipper could then file a formal complaint.
At the same time that it is making the resolution of rail rate challenges cheaper and easier, the STB plans to raise the cost of resolving other complaints. According to the National Industrial Transportation League, the board proposes to establish 22 new fees for services for which it currently does not charge a fee. For example, the new fees would apply to services provided prior to the commencement of a proceeding, such as a request for clarification or a request for the waiver of certain requirements. The STB also wants to raise existing fees that do not cover the agency's costs for some services, although it also is proposing to set the fee for a railroad rate-complaint case filed by a small shipper at a below-cost level of $150. The STB is expected to publish a complete list of its proposed fees in the Federal Register soon. Comments will be due within 30 days after publication.
The Council of Logistics Management (CLM) continues to expand its international presence. In July, CLM's Executive Committee approved the establishment of the first CLM roundtable (as the regional organizations are called) in Hong Kong. And in May of 2003, CLM will host "Seminar of the Americas," the first-ever gathering of roundtables from North America, Central America and South America. That program, slated for May 19–20 in Miami, will focus on logistics and trade operations in the Americas. For more information about CLM, visit www.clm1.org.
Everyone understands the need to improve security in distribution centers and warehouses, but where to start? A new report from the Warehousing Education and Research Council (WERC) addresses that timely topic by offering a blueprint for protecting DCs from various types of crimes. Security Best Practices: Protecting Your Distribution Center From Inventory Theft, Fraud, Substance Abuse, Workplace Violence, Cybercrime and Terrorism outlines the security risks and challenges associated with warehousing and distribution operations. The 76-page report also presents proven strategies for avoiding those risks. The author is Barry Brandman, president of Danbee Investigations and a specialist in logistics facility security. The book is available for $30 for WERC members and $60 for non-members. To order, contact WERC by phone at (630) 990-0001, by e-mail at wercoffice@werc.org or visit www.werc.org.
A new multimodal service from United Parcel Service offers an economical alternative for importers that want to deliver directly to customers. UPS Trade Direct Ocean brings in consolidated containerloads of packages from China, Hong Kong and Brazil through its UPS Ocean Freight Services subsidiary. Containerloads are broken down for direct delivery via UPS ground or air service to individual customers. UPS provides end-to-end tracking of shipments at the item, carton or shipment level. By introducing packages from ports directly into UPS's domestic system, the service minimizes the need to handle merchandise at shipper-owned warehouses or other distribution centers. Customers who tested the new service reported time savings of between two and 20 days, according to UPS officials.
Next month's "Developing Opportunities to Reduce Rail Expenses" conference will offer many ideas on how to control rail freight costs and improve railroad service. The conference, sponsored by railroad experts Escalation Consultants Inc., is slated for Nov. 4–5 in Houston. Sessions will focus on avoiding rail rate increases, cutting rail freight costs, legal and regulatory issues affecting rail shippers, strategies for rate negotiations, structuring contracts and more. Seminar leaders include Escalation Consultants' president, Jay Roman, and director of financial analysis, Shade May, as well as transportation lawyer Martin Bercovici. For more information, send an e-mail inquiry to seminar@EscalationConsultants.com or call (301) 977-7459.
The recent national agreement between United Parcel Service and the International Brotherhood of Teamsters didn't cover every union member. Several regional agreements that are critically important to Big Brown's ability to provide service to its customers are still being ironed out. One example is the pact recently signed with Teamsters Local 2727 in Louisville, Ky., which represents 1,140 aircraft mechanics, flight simulator technicians, utility workers and maintenance personnel who work for UPS Airlines. Last month, UPS and the local signed a five-year contract that will be retroactive to Aug. 1, 2001, and will run through Nov. 1, 2006.
Most manufacturers want you to throw away used items so you'll buy more of whatever it is they're selling. But not the members of the Reusable Pallet and Container Coalition (RPCC). The three-year-old group of container and pallet makers is trying to make it easier for companies to reuse and recycle their products, which they say would eliminate millions of dollars of solid waste and improve productivity. RPCC also is active in promoting fire safety, educating businesses about waste management, and lobbying state and federal governments to ensure that public policy favors reusable transport packaging. Of course, if recognizing the environmental benefits of reusable packaging should lead shippers to buy more reusable pallets and containers, RPCC wouldn't object ...
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