Management Update
An executive summary of industry news
By Staff -- Logistics Management, 9/1/2003
Out of work or looking for a new job in warehousing or distribution? Then check out the new online job board set up by the Warehousing Education and Research Council. Located on the organization's Web site (www.werc.org), the job board is designed to connect employers with potential employees. Employers can post positions for a nominal fee, while job seekers can post confidential resumés online. Job seekers also can sign up to receive e-mail alerts about positions that match specified criteria.
Two more carriers merit a place in the Quest for Quality Hall of Fame. In our August issue, we listed carriers that have won Logistics Management's quality awards for the past decade. But the honor roll should have included two more motor carriers: USF Reddaway and USF Holland. In 1996, the former TNT Reddaway and TNT Holland were renamed as part of a restructuring of their parent company's regional LTL network. We apologize for the oversight.
Where does your company stand on the supply chain evolutionary ladder? CSC Consulting and our sister publication, Supply Chain Management Review, recently surveyed nearly 150 logistics and supply chain managers to find the answer. The survey findings revealed that most companies have integrated their internal supply chain functions, and some have begun collaborative initiatives with a few external partners. But relatively few have advanced beyond those early stages of evolution to create a true network of upstream and downstream trading partners that are seamlessly connected by Internet technology. The survey report can be accessed at www.scmr.com. The findings also will be presented at this year's annual Council of Logistics Management conference (Track 06 A2).
A transportation workers' strike may be dampening South Korean shippers' enthusiasm for outsourcing. In remarks to the media about the latest strike by unionized truck drivers, Lee Suk-young, vice chairman of the Korean International Trade Association, said manufacturers that outsourced their transportation operations have been virtually paralyzed during the strike. Some of those companies, he said, now are considering whether to bring transportation in house again, even if it means higher costs. For more on the Asian market for logistics outsourcing, turn to the story on Page 41.
CFOs say corporate supply chains need stronger links with more accountability. More than 60 percent of the 247 senior financial executives who took part in a survey conducted for UPS Consulting said that supply chain management is crucial to their companies' success. These managers look to their supply chains to reduce operating costs and improve customer service. But many expressed dissatisfaction with traditional decentralized management of supply chain activities. Only 17 percent, moreover, said they were satisfied with their ability to measure supply chain costs. The complete survey results have been made available online at www.ups-consulting.com/research.
To mark the Transportation Consumer Protection Council's 30th anniversary of providing educational programs, TCPC will offer a three-day series of seminars on transportation legal issues in October and November. Seminars will cover freight claims filing and recovery (Day 1); contracting for logistics services (Day 2); and transportation, logistics, and the law (Day 3). Instructors include longtime Logistics Management contributor William J. Augello, Esq. Locations include Taunton, Mass.; Stamford, Conn., Memphis, Tenn.; Columbus, Ohio; Elmhurst, Ill.; Portland, Ore.; and Long Beach, Calif. For more information on Day 1 and 2 programs, go to www.tcpcinc.com or call 631-549-8988. For information about the Day 3 program, go to www.transportlawtexts.com/seminars or call 1-800-310-2814.
Consolidation continues to sweep the supply chain software market as another leading software maker has been sold. Chicago-based SSA Global Technologies Inc. will buy EXE Technologies of Dallas in a deal reportedly valued at around $47 million. Formed from the 1997 merger of Dallas Systems and Neptune Systems, EXE is best known for its warehouse management software. SSA also recently bought Baan, the giant Dutch enterprise resource planning (ERP) software provider.
Gen. Wesley K. Clark will give the closing address at the National Industrial Transportation League's 96th annual meeting. Press reports indicate that Clark, the retired U.S. army general and former Supreme Commander of NATO, is exploring entering the presidential race. NITL will meet this year in Fort Lauderdale from November 15–19. To register for the educational event and concurrent Transcomp trade show, go to www.nitl.org/annual.htm.
Given the size and scope of Bacou-Dalloz USA's "Project One" initiative to pare down its supply chain, detailed in the cover story that begins on Page 26, it's not surprising that the company turned to logistics consultants for help. But instead of hiring a single consulting firm, Vice President–Supply Chain Peter Moore worked with http://logjobs.com to create his own teams of consultants with the necessary expertise. By dealing with that network rather than with big firms and their big fees, Moore says, Bacou-Dalloz reduced the cost of logistics consulting services by 30 to 40 percent below the market rate.
Shippers' growing need for security tools has led two global trade software vendors to team up. GT Nexus and Open Harbor, both headquartered in California, will integrate their products into a comprehensive, Web-hosted trade management platform. GT Nexus provides supply chain modeling, shipment visibility, and order, event, and contract management tools. Open Harbor is a purveyor of global trade management applications, including product classification, trade documentation, and trade process automation. The joint solution will allow shippers to control and track their imports and exports worldwide while ensuring compliance with government trade security programs.
The American Association of Exporters and Importers (AAEI) is looking for a new leader. John Simpson, the former Treasury official who has led AAEI for the past two years, cited personal and professional reasons for his decision to leave the trade group last month. During his tenure, Simpson focused on revitalizing the group's membership and structure, and was successful in raising its profile and influence in Washington.
Collaboration on inbound logistics can be a springboard to supply chain success, says a leading market research firm. The Yankee Group said in a new report that U.S. companies could reduce their monthly inventories by between $117 and $293 billion if they work together to optimize inbound logistics management. Such collaboration could reduce transportation costs, shrink inventory levels, and increase replenishment frequencies while boosting sales by $83 to $166 billion in the bargain, the report says.
Supply chain software vendors are flocking to the APICS International Conference and Exposition. More than 110 leading providers of supply chain management, logistics, ERP, and manufacturing applications will be on hand for the trade show segment of the event, which will take place Oct. 7–8 at the Las Vegas Convention Center. The educational conference, which begins Oct. 6, features sessions on forecasting, analysis, technology, project management, and other topics related to operations, inventory, and supply chain management. For more information, go to www.apics.org.
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