Management Update

An executive summary of industry news

By Staff -- Logistics Management, 8/1/2006

Our 15th Annual Masters of Logistics study goes live on September 28. That’s when Chief Editor Michael Levans, Dr. Mary Holcomb of the University of Tennessee, and Dr. Karl Manrodt of Georgia Southern University will put the findings of this annual research project into perspective in a live webcast. The study, which benchmarks distribution costs and logistics practices, found that shippers are redesigning their networks and forming new collaborations to combat rising costs and concerns about service quality. Logistics Management sponsored the study, which was conducted by Georgia Southern University, the University of Tennessee, and consultancy Capgemini. An overview of the results will appear in LM’s September issue, but for more on what the findings mean for shippers, be sure to tune in on Wednesday, Sept. 28. To register, go to www.logisticsmgmt.com.
Canadian and Mexican hazmat truckers had better be FAST. Effective August 10, commercial truck drivers who are licensed in Canada and Mexico may not transport hazardous materials or explosives within the United States unless they have passed a background check under the Free and Secure Trade (FAST) program. FAST, a cooperative effort among U.S. Customs and Border Protection (CBP) and the governments of Canada and Mexico, speeds clearance of cross-border shipments for companies that have met specified security and technology standards. Drivers who have already received a FAST card will not need to go through an additional background check. U.S. shippers that rely on Canadian and Mexican carriers to bring hazmat across neighboring borders will now be limited to hiring those that are in compliance with the new rule.
Hill gets the nod as FMCSA administrator. The U.S. Senate has confirmed John Hill to head the Federal Motor Carrier Safety Administration (FMCSA). Hill had been serving as acting deputy administrator since Warren Hoemann resigned in May; he replaces Annette Sandberg, who resigned in February. Hill previously served as FMCSA assistant administrator and chief safety officer. Prior to joining the agency, he held various positions in law enforcement and commercial vehicle safety, including stints at the Indiana State Police and the Commercial Vehicle Information Services Committee. At his confirmation hearing, Hill told senators that he would get to work on implementing the motor carrier provisions in SAFETEA-LU (the federal highway funding legislation), improving the commercial drivers license (CDL) program, and granting statutory relief from the hours-of-service (HOS) rules.
ATA President and CEO Bill Graves says “Thanks, but no thanks” to speculation that he was in line to replace Norman Mineta as U.S. Secretary of Transportation. In a letter to the American Trucking Associations’ board of directors, Graves said that he was flattered to be considered, but he is committed to his role at the ATA. Graves added that he is looking forward to working with President Bush on his economic agenda and assisting the next transportation secretary. As of press time, a replacement for Mineta, who resigned in June, had not been named.
Is there ROI on security investments? Yes, says a new study conducted by Stanford University for the National Association of Manufacturers. Companies that invest in supply chain security can expect to see benefits that outweigh the cost of security implementation, according to the authors of Innovators in Supply Chain Security: Better Security Drives Business Value. The report quantifies the collateral benefits achieved by 11 manufacturers that are considered to be “innovators” in supply chain security. Researchers found that these companies reduced their customs inspections by 48 percent; improved on-time delivery to customers by 30 percent; and saw a 29 percent reduction in transit times. Go to www.nam.org for more details.