IL Digital June2018

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SPECIAL

REPORT
CHEMICAL
LOGISTICS
THE PRICE OF SUCCESS

a company THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS • JUNE 2018

WHEN IT MAKES SENSE AND WHEN IT DOESN’T

ALSO IN THIS EDITION


75 Green Supply Chain Partners
Combat Cargo: Military
Logistics Challenges

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Shaping chaos
into order.
We transform today’s “information overload”
into guiding insights that help our customers
know earlier and solve faster. Addressing
complex problems with straightforward
solutions and translating the patterns and the
possibilities, we enable customers to grow
and change.

Lead Logistics Partner Transportation Management

Third-Party Logistics Supply Chain Packaging Services

Supply Chain Consulting Retail Consolidation & Requirements

Omnichannel Supply Chain Solutions Medical & Healthcare Logistics

Logistics Center Management Dynamic Supply Chain Leadership

dsclogistics.com

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DSC_ad0618.indd 1 6/8/18 10:07 AM
info snacks
BITE SIZED SUPPLY CHAIN/LOGISTICS INFORMATION

42% would rather be stuck in rush hour


traffic in Manhattan than not be
able to do their shopping online. 25% would rather sit behind
a screaming baby on
a plane.

—Respondents to a recent DHL poll of U.S. small businesses

“Parts is parts.”
Container
–Rob Hooper, CEO of Atlantic Logistics, costs are still
discussing how the logistics challenges of incredibly
domestic military and civilian shipments
are often comparable.
cheap; shipping
(See Combat Cargo, p. 62) a 40-ft. container from
the U.S. to Europe and back
costs about the same as storing
“Despite what they say when interviewed those goods at an Amazon FBA
by journalists, NGOs, or academics, the fulfillment center for one month.
majority of buyers choose not to pay more
for sustainable products when faced with — Freightos Baltic Indexes
the choice at the retail shelf. They generally
choose the cheaper product—even if it is
less environmentally sustainable than more
expensive options.” Vision and decisiveness
— Yossi Sheffi, author, The two most important
characteristics of a leader,
Balancing Green
according to Dan Curtis,
(See Clarifying the Business Case for
president, BNSF Logistics
Green Supply Chain Management, p. 38)
(See LeaderShip, p. 18)

June 2018 • Inbound Logistics  1

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COMBAT CARGO: 
THE CHALLENGES OF
MILITARY LOGISTICS
page 62

June 2018 • Vol. 38 • No. 6

INSIGHT INPRACTICE
8 CHECKING IN
GDPR: privacy, yes. Innovation, no? 20 Fresh, Fast, andTimCasual
READER PROFILE  Miller: Serving It Up
10 GOOD QUESTION
What supply chain-disrupting Tim Miller, vice president of supply chain with
technology would you speed up? Smashburger, is focused on streamlining the supply
12 DIALOG chain and looking at the most effective way to get
The ongoing conversation. products to restaurants.
14 10 TIPS
Implementing blockchain
technology.
18 LEADERSHIP INDEPTH
38 Clarifying
BNSF Logistics’ Dan Curtis
talks strategy.
the Business Case for 
30 SPONSORED 
LOAD AND EXPEDITE
Green Supply Chain Management
Knowledge Base by Crane For most companies, sustainability is not a simple case of “profits vs.
Worldwide Logistics planet” but people looking for jobs and inexpensive goods vs. others
32 SPONSORED 
who seek a pristine environment. Here’s how your supply chain can
SOLVED satisfy both motivations.
Partnering for Operational
Efficiency.................................32
Solution Generates Cost
45 75ChainGreen Supply
Partners
Savings....................................33
Inbound Logistics
34 IT MATTERS
Last-mile technology needs a
features its annual
radical rethink. G75—a carefully curated
list of 75 companies
36 CARRIER’S CORNER
4 ways to tell if your alcohol carrier that go above and
knows the hard stuff. beyond to ensure their
112 LAST MILE: THE BIONIC global supply chains
WAREHOUSE WORKER are sustainable, and
that their operations
are socially and
environmentally
friendly.

2  Inbound Logistics • June 2018

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CHEMICAL LOGISTICS: 
THE PRICE OF SUCCESS
page 66

June 2018 • Vol. 38 • No. 6

INFOCUS
1 INFO SNACKS
62 Combat Cargo: The Challenges of Military Logistics
If you really want to be all you can be, try moving difficult cargo into an
area with terrible infrastructure and hostile combatants.

66 Chemical Logistics: The Price of Success


16 VERTICAL FOCUS: CPG
22 NOTED JOINT SPONSORED CONTENT WITH CHEMICAL WEEK
24 TRENDS
Microsoft partners with OOCL to
develop AI in shipping; MIT CTL An active market creates special challenges for companies that need to
and Awesome offer supply chain transport chemical products.
scholarship for women; 10 ways to
drive supply chain performance with
big data.
86 Put Me In, Coach! Next-Gen Leaders are Ready to Play
As next-gen supply chain professionals set their career goals, mentoring
28 GLOBAL by seasoned professionals can help them up their game.
American Airlines becomes first U.S.
airline to begin Cuba cargo service;
Busy ports are witnessing rising
cross-border trade; CEVA and IMS
Worldwide enter strategic alliance
for Foreign Trade Zone services in
the United States.

INFO
96 SUPPLY CHAIN INSIGHTS
98 WEB_CITE CITY
104 IN BRIEF
108 CALENDAR
109 SUPPLY CHAIN SOLUTIONS
110 RESOURCE CENTER

Inbound Logistics (ISSN 0888-8493, USPS 703990) is mailed monthly to approximately 60,000 business professionals who buy, specify, or recommend logistics technology, transportation, and related
services, by Thomas Publishing Company LLC, 5 Penn Plaza, NY, NY 10001. José E. Andrade, co-chairman; Carl T. Holst-Knudsen, co-chairman. Periodicals postage paid at New York, NY, and additional mailing
offices. All rights reserved. The publisher accepts no responsibility for the validity of claims of any products or services described. No part of this publication may be reproduced or transmitted in any form or by
any electronic means, or stored in any information retrieval system, without permission from the publisher. POSTMASTER SEND ADDRESS CHANGES TO: Inbound Logistics, 5 Penn Plaza, New York, NY 10001

4  Inbound Logistics • June 2018

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QUICKBYTES ONLINE COMMENTARY


INBOUND LOGISTICS
PODCAST
What Does World-Class Supply Chain Planning
The IL Podcast provides the most Look Like?  bit.ly/SCPlanning
relevant and topical information Despite its criticality, most companies are poor at supply chain planning.
from the third-party logistics
and supply chain management
Here’s a recipe for implementing and executing world-class supply chain
world as presented by influential planning capabilities that can lead to competitive advantage.
thought leaders in the industry.
bit.ly/ILMagPodcastPage Productivity Boosters: Three Technologies Making
LOGISTICS & Maximum Impact bit.ly/ThreeTechnologies
SUPPLY CHAIN NEWS
These three technological innovations have already enhanced supply chain
For up-to-the-minute information,
and logistics effectiveness, lowered operational costs, and increased customer
bookmark the IL news page.
Enjoy opinions, commentary, and satisfaction.
links to the latest news to help
you stay on top of your game. How Blockchain Brings New Efficiencies
bit.ly/IL-news
bit.ly/BlockchainEfficiencies
WHITEPAPER DIGEST Blockchain allows shippers and other supply chain participants to
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bit.ly/IL_WPDigest SEE INBOUNDLOGISTICS.COM

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CHECKINGIN
Vol. 38, No. 6 June 2018
THE MAGAZINE FOR DEMAND-DRIVEN LOGISTICS
www.inboundlogistics.com
STAFF
by Keith Biondo | Publisher
PUBLISHER Keith G. Biondo
[email protected]
EDITOR Felecia J. Stratton
[email protected]
SENIOR MANAGER Lauren Muskett
CONTENT [email protected]
SENIOR ASSOCIATE Katrina C. Arabe
EDITOR [email protected]

GDPR: Privacy, Yes. CONTRIBUTING EDITORS


Sandra Beckwith • Merrill Douglas
Jason McDowell • Karen M. Kroll

Innovation, No? CREATIVE DIRECTOR Jeof Vita


[email protected]
MULTIMEDIA CONTENT Evelyn Klotz
DESIGNER [email protected]

I
DIGITAL DESIGN Amy Palmisano
f you spend too much time clearing privacy protection notices from your MANAGER [email protected]

email box, thank the General Data Protection Regulation (GDPR). But PUBLICATION MANAGER Sonia Casiano
[email protected]
what exactly is this regulation and how might it impact future supply CIRCULATION DIRECTOR Carolyn Smolin

chain technological innovation? PUBLISHING ASSISTANT Kathy Narvaez

GDPR is a new rule with the goal of protecting European Union residents’ PUBLISHING INTERN Charlotte Abate

personal data and adding privacy measures on web transactions that include SALES OFFICES
personal data–no matter where in the world that processing takes place. These PUBLISHER: Keith Biondo
new data privacy rules will negatively impact the development and use of 212-629-1560 • FAX: 212-629-1565
[email protected]
artificial intelligence in the EU and put European firms “at a competitive
WEST/MIDWEST/SOUTHWEST: Harold L. Leddy
disadvantage compared with their competitors in North America and Asia,” 847-446-8764 • FAX: 847-305-5890
says the Center for Data Innovation. [email protected]
Marshall Leddy
While the Center is concerned about competitiveness and AI advances, I’m 612-234-7436 • FAX: 847-305-5890
concerned about the full stop these new regulations may have on supply chain [email protected]
innovation. The regulations are described as chilling and ambiguous by many, SOUTHEAST: Gordon H. Harper
404-229-9691 • FAX: 404-355-2036
and impact all companies capturing EU personal data. The judicial overreach [email protected]
into areas outside the EU aside, GDPR’s vague nature should give pause to MIDWEST/ECONOMIC DEVELOPMENT: Joseph Biondo
any enterprise engaging in back-office, web, cloud-based operations. ICANN 516-578-8924
[email protected]
requires full personal details or won’t authorize DNS website credentials. Can
NORTHEAST: Rachael Sprinz
shady operators refuse to provide accurate domain details to ICANN now? 212-629-1560 • FAX: 212-629-1565
Here are more open questions about the rules: [email protected]
Article 22 says that companies must have a human review some AI-based MEXICO & LATAM: Guillermo Almazo
212-629-1560
machine activity. Does that render AI in e-commerce at risk in, say, voice [email protected]
ordering and other automated buying activities? What about blockchain pipes NATIONAL SALES ASSOCIATE: Nicole Mangray
that include personal data? 212-290-8757
[email protected]
Chapter 5 of the GDPR seemingly requires any company collecting EU
FREE SUBSCRIPTIONS
personal data to maintain data centers inside the EU. Will you need an
www.inboundlogistics.com/free
additional EU data center now?
Inbound Logistics supports sustainable best
Most experts agree the GDPR is complex, and conflicts with other EU practices. Our mission is rooted in helping companies
match demand to supply, eliminating waste from
regulations. And lack of compliance can draw a fine of four percent of a the supply chain. This magazine is printed on paper
sourced from fast growth renewable timber.
company’s global sales–or 20 million euros, whichever is greater. Inbound Logistics welcomes comments and submissions. Email us at
The quest to protect consumer privacy and data is admirable. But, [email protected]; call (212) 629-1560; or mail 5 Penn
Plaza, NY, NY 10001. For advertising or subscription information, call
unintended consequences alert here. GDPR vagueness needs to be clarified, (212) 629-1560, or e-mail [email protected]. Inbound
Logistics is distributed without cost to those qualified in North America.
Interested readers may subscribe online at bit.ly/get_il. Subscription
with carve outs for the WHOIS domain database, AI, IoT data, and blockchain price to others: in North America: $95 per year. Foreign subscriptions:
$229. Single copy price: No. Amer. $10, foreign $19, back issues $15.
operations. Let’s not protect privacy at the expense of supply chain and
technological innovation. n

8  Inbound Logistics • June 2018

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Good Question…
READERS WEIGH IN

If you could speed the development of


a supply chain-disrupting technology,
what would it be and why?
Artificial intelligence. It would
Heavyweight drones that move ocean
create new synergy and efficiencies
containers from a port to a distribution for both the buyer and supplier
center within 50 miles are well into side of the supply chain, while
development. Once integrated into air helping businesses anticipate risk.
traffic control systems, this technology Andrew Nichols
becomes a game changer for road Head of Procurement
congestion and cost containment. Tungsten Network
Jerry Critchfield
Senior Director, Transportation
Weber Logistics Telematics on commercial delivery
vehicles within transportation
management platforms for real-
Take traceability to the “each” one whole pallet at a time without time visibility to product delivery.
level by creating affordable breaking it down and scanning John Conte, PLS, CSSBB
product ID tags for every single each carton. It would speed Operations and Logistics Manager
manufactured product. This would receiving, an error-prone process. Holman Parts Distribution
provide 100-percent tracking, Tymish Halibey Holman Business Services
100 percent of the time throughout Operations Manager, Home Depot
the entire supply chain.
Harry Drajpuch Autonomous long-haul trucks.
CEO, Amware Logistics Data visibility. Having every vendor, They would provide gains in
customer, and third-party resource freight transit times, safety, and
conform to one method would fuel efficiency. Interstate-dedicated
Point-and-click photo recognition change how we make supply trucks are far more attainable than
software that matches up chain decisions. autonomous city delivery vehicles.
manufacturer specs and/or Kevin VanBelle Paul D’Arrigo
measures the dimension and Vice President, TSG Applications Vice President, IT
density of anything—big or small. Americold Spend Management Experts
Terese Kerrigan
Director, Marketing
Communications, FreightCenter Blockchain. If the internet was HAVE A GREAT ANSWER
filled with blockchain nodes, TO A GOOD QUESTION?
and the ELD mandate was fully Be sure to participate next month.
Reliable RF tag technology that implemented, then dollars spent We want to know:
identifies sellable “eaches” collecting data could shift to
and pack quantities to replace analyzing that data. Why do you use a 3PL?
barcodes. This would allow a Michael Dieter We’ll publish some answers.
Tell us at [email protected] or
scanner at a dock door to receive CTO, Transplace
tweet us @ILMagazine #ILgoodquestion

10  Inbound Logistics • June 2018

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INTEGRATED SOLUTIONS
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THE ONGOING CONVERSATION www.inboundlogistics.com/cms/podcast
@ILMagazine Drop us a line:
[email protected]

A Closer Look at Fuel How Would You Solve the


Truck Driver Shortage?
Re. LeaderSHIP: Doug Mueller, CEO,
Breakthrough Fuel bit.ly/fuelingbreakthroughs First, pay the driver more. Second, look for and allow
younger drivers to get into the business. Third, reward for
I read your profile of Breakthrough Fuel CEO Doug on-time delivery and safety. Fourth, treat them like you
Mueller with great interest. In my opinion, Breakthrough would want to be treated.
Fuel’s claims and stance are adversarial and alienating. David R. Hughes
The money shippers are paying Breakthrough for President, Dalor Transit
its work is an unnecessary expense—why not just
negotiate with the trucker and work it out? Drop the minimum age for a driver to 18 years old.
We asset-owners pick fueling locations based upon Large carriers should provide apprenticeship programs
many factors, such as supporting a truckstop that has to these young drivers. Place them in a rig with an
repairs or sit-down meals, showers or parking. experienced driver and allow them to drive daily and get
We also want to fuel at a good time, and with ELDs, hands-on training. This will ensure carriers have a good
this is even more important. We need to buy from places flow of incoming drivers.
that let us park (truckstops as opposed to fuel stops). Robert Paris
Additionally, Breakthrough Fuel uses unrealistically Coastal Forest Products
high mpg. It doesn’t account for mountains, stop-
and-go congestion, etc. Fuel surcharge is about more Dedicate one lane in our coast-to-coast interstate
than the point-to-point miles for the shipment. You network to trucks that pull multiple trailers at a much
have to account for deadhead, washout, out-of-route lower speed to ensure safety. These drivers would do
(construction) miles, trips to the shop, and other non- daily turns, allowing them to sleep in their own bed each
load-bearing issues. Breakthrough Fuel tries to say night. Additionally, regional pads will be used for drop and
shippers should only pay for that exact mileage. hook, allowing local drivers to deliver freight to the final
Trucking executive, name withheld destination within a daily turn of domicile. This improves
quality of life, and at the same time we are better utilizing
and compensating the industry’s most valuable resource.
Chris Cook
President, Domestic Freight Management
Where Do You Read IL? Ascent Global Logistics
On vacation!
-Ken Luthy, Owner, Suburban Improve collaboration between suppliers and
Warehouse, Randolph, NJ customers on ordering patterns. All too often, I see
underutilized trucks being loaded or unloaded at DCs.
Better cube/truck utilization equals more freight moving
on the same number of trucks, thus reducing the need for
more drivers and assets.
Michael Martinez
Vice President, Customer Service & Distribution
Jel Sert

12  Inbound Logistics • June 2018

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Got 3PL challenges?  Get free expert solutions at inboundlogistics.com/3pl
10TIPS
STEP-BY-STEP SOLUTIONS

Implementing Blockchain Technology


Blockchain technology creates a global and trustworthy history of
a product—from transaction to production to consumption. It has the
potential to revolutionize workflows across international borders, empowering
an automated, connected supply chain with simplicity and traceability.

1 FLIP YOUR 2 LOOK AT THE 3 CONSIDER 4 KNOW YOUR


THINKING TIME SAVED COMPLEXITY VARIABLES
Many consider Goods can sit in port Goods often get stuck in What is the possibility
blockchain a solution clearance anywhere clearance due to incomplete of goods being lost,
seeking a problem. from one to seven days. or missing documentation. damaged, or stolen?
It’s actually the Blockchain decreases this Blockchain creates a digital Similar to produce
answer to an array of to hours, with a guaranteed trail that can be fixed or freshness, we must
logistics challenges, clearance date. This reduces recreated seamlessly at any guarantee the quality
particularly for food time to sell and enables just- point in transit. of other goods, such as
and port clearance. in-time delivery. consumer electronics.
Using IoT technology,

5 KEEP PRODUCE 6 FIND THE RIGHT such as sensors and


RFID, blockchain
FRESH TECHNOLOGY PARTNERS provides real-time
visibility to assure
Blockchain assures freshness by Blockchain isn’t an operational platform. It’s a goods are where and
drastically decreasing transit time record-keeping system that spans enterprise as they should be.
and can eliminate the spread of resource planning systems, warehouse
foodborne illness. Blockchain can management systems (WMS), transportation
trace every machine and hand that management systems (TMS), and order
touched produce—from farm, to management. Look for WMS and TMS that 9 WEIGH
manufacturer, to carrier, to store. It store and interpret data from beginning to end. COSTS
is possible to pinpoint the source of These solutions should be flexible enough to
contamination within hours. adapt your unique workflow. Does implementing
blockchain justify

7 THINK ABOUT 8 UNDERSTAND THE PLAYERS the overhead costs?


Consider the cost
DOCK AVAILABILITY The value of blockchain is proportional of upgrading the
to participation across the industry, both workflow. This includes
Pickup can’t be scheduled until purchasing relevant
horizontal and vertical. Using perishable foods
goods pass clearance. Blockchain software and finding
as an example, each of the supplying farms,
makes it possible to predict this a blockchain platform
manufacturers, shippers, warehouses, and
timeframe, with carriers receiving provider. Furthermore,
stores must be on board and willing to foot the
notification from the port. This the infrastructure
updated workflow costs.
optimizes carrier scheduling while must be updated with
expanding dock capacity. visibility technology,
such as sensors inside
10 AVOID LIMITING YOURSELF TO COUNTRY facilities or outside on
containers or trucks.
VS. EXPORT-BASED INVENTORY CONTROL Lastly, think about the
Expiration dates dictate the goods we ship in and out of country due to port clearance. time and effort needed
Predictable clearance dates from blockchain overcome this to enable better inventory to build the ecosystem.
assignment for the best-possible shelf life of goods.

Contributed by Sean Elliott, chief technology officer, HighJump

14  Inbound Logistics • June 2018

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FOCUS
NEWS & TRENDS IMPACTING THE

CPG SUPPLY CHAIN


WHAT’S THE DIFFERENCE? MANAGING DISRUPTION
CPG, or consumer packaged goods: merchandise that From direct-to-consumer delivery to Internet of
customers frequently use up and replace. Examples Things-enabled appliances, the disruptive forces in the
include food and beverages, cosmetics, and cleaning grocery industry are hard for CPG suppliers to avoid,
products. according to a study by The Boston Consulting Group
and the Grocery Manufacturers Association.
DG, or durable goods: merchandise that is not
consumed or destroyed in use and is generally not The report highlights actions that CPG companies can
replaced until the merchandise experiences a problem. take to meet customers’ needs and adapt to a changing
Examples include cars, appliances, and furniture. environment. Among them:
- Seek efficiencies. CPG companies currently carry
A RAZOR-SHARP SUCCESS 60 percent of the cost of logistics and hold roughly
Online shaving and razor company Harry’s was 50 percent of inventory in the grocery supply chain.
started by two hopeful entrepreneurs who bought a They will need to refine their transportation networks,
defunct factory and wondered what to do with it. They reduce inventories, and lower costs to meet customers’
realized that a solution-driven approach could guide changing demands and new market conditions.
them. Consumers of both genders always need razors; - Capitalize on big data and digital. For 78 percent
ideally, they need them consistently, at a decent price. of participating CPG companies, end-to-end data
The founders decided to fill that need. They opened visibility—from point-of-sale data to GPS tracking
their factory doors—and their company books—and data on shipments—is a priority. Although they are
approached those consumers straightforwardly. accumulating more, and more valuable, data, most
Initially, the strictly online brand didn’t have much of a companies need to develop tools and systems to more
following. But eventually, the strategy of being genuine effectively analyze it.
and open with consumers worked. Today, Harry’s is a - Sell the benefits of collaboration. Channel proliferation
$100-million company with a significant base of loyal, makes accurate forecasting and planning all the
dedicated consumers. By letting consumers in on their more critical for CPG companies. Success requires
company’s journey, the founders turned their razors both technology and active engagement with their
into a lifestyle. distributors, retailers, and customers, especially when it
CPG companies can take tips from Harry’s to create comes to alternative and e-commerce channels.
a brand that truly speaks to, and connects with,
consumers. The key takeaways are:
NEW TECH ON THE BLOCK
■■ Share your story: Every brand, whether established
or new, has a story—and consumers want to connect CPG and manufacturing
with it. By encouraging consumers to interact with executives express
your brand, you create the relationship needed to the most bullish
keep them coming back. blockchain outlook,
according to a new
■■ See a need, fill a need: Razors are a fact of life for men
Deloitte survey. 42% are
and women. By seeing that need and filling it in a
planning
convenient and interesting way, Harry’s created a investment
niche presence within the market. of at least...

■■ Never underestimate the power of word of mouth:


Much of Harry’s’ business can be attributed to its SOURCE: New Tech on
...$5 million
the Block: Planning
willingness to connect with consumers via social for Blockchain in in the coming year
the Retail and
media and other online channels. Consumer Packaged
SOURCE: Shopkick.com Goods industries,
Deloitte study

16  Inbound Logistics • June 2018

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Thomas_ad0618.indd 1 6/11/18 3:16 PM
LEADERSHIP
Conversations With
The Captains of Industry
By Merrill Douglas

Dan Curtis
President  
BNSF Logistics

People and Culture First, Strategy Second

S OME YEARS AGO, DAN CURTIS TOOK A


crash course in logistics operations. It
started in 2002, when he joined Greatwide
Logistics Services as vice president of finance.
other partners I had encountered. His technical competency
was as high as the others’, but he led with a much more car-
ing approach that made the entire audit team feel included
and important.
He made a point of talking with each of us individually,
asking about our career plans and goals, how Ernst & Young
“We were a very acquisitive company,” he explains. “I was treating us, and what he could do to help. It was the first
immediately began working on the mergers and acquisi- of many experiences that shaped my belief that people and
tions transactions we were pursuing.” In the course of those culture are more important than strategy.
activities, Curtis examined the inner workings of dozens of
target companies. IL: What projects get most of your attention these days?
So by 2014, when Curtis assumed the role of chief operat- We’re investing heavily in technologies we believe will
ing officer at BNSF Logistics, he was thoroughly familiar with change the way we serve and add value to our customers,
the nuts and bolts of transportation and logistics. The new as well as greatly improve our operating efficiencies. We’re
job also expanded his responsibilities to encompass human using internal resources, but also engaging companies and
resources, sales and marketing, information technology, pro- specific data scientists to help us with algorithms and data
curement, and every other aspect of the business. lakes, incorporating new sources of data into artificial intelli-
In February 2018, Curtis became president of BNSF gence improvements within our operation.
Logistics, a subsidiary of Burlington Northern Santa Fe LLC. We’re also implementing new leadership and sales train-
Curtis spoke with us about his leadership strategies and pri- ing—a lot of things around the people side of the business,
orities in his new position. which includes diversity and inclusion programs, and culture
and volunteering opportunities.
IL: Tell us about an early experience that helped shape you
as a leader. Among the challenges your company faces today, what’s
IL:
When I joined the accounting firm Ernst & Young after one of the most interesting?
college, the partner who led one of my first audits was an I’m highly interested in all the new data available in our
engaging, people-focused leader, much different from the industry from the ELD (electronic logging device) mandate,

18  Inbound Logistics • June 2018

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and from other sources. It’s a challenge not only to get access examples of people in our organization who go above and
to all of this data, and analyze it and make it applicable, but beyond in their services, or instances when service wasn’t
it’s also an interesting integration into the core systems, to at its best. I also stay close to the inside and outside sales
see how much better you can get at predicting what’s going resources that interact daily with customers. And I meet with
to happen. We hope to gain insights, for example, into where our larger customers as much as their schedules allow.
carriers will be available at what cost, typical destinations
from those origins, and how to marry that information to Have you had an important mentor or role model?
IL:
loads we have. My predecessor as president, Ray Greer, played that role
as I worked for him in different areas for many years. He
IL: How would you describe your most important displayed a calm and consistency that influenced my view of
characteristics as a leader? how to respond to the myriad situations you face when you
The two most important to me are vision and decisiveness. run a business. And he allowed me to develop and prepare for
I have a new vision for the company, and a crucial part of that this role by increasing my responsibility in all areas.
is to communicate the how, why, and when so the whole orga-
nization understands, and we get there together. What’s one of the strangest assignments ever to come
IL:
I rolled out that vision in our annual management kickoff your way?
meeting, soon after I became president. We recorded my talk A few years ago at BNSF Logistics, we were asked to
and disseminated it to all our employees, and that got a lot of expedite an extremely rare and expensive car from Los
positive feedback. We’re doing more video interaction to get Angeles to London for the owner’s use, for one week. It was
people engaged and give them a better feel, in real time, for an odd and costly request. We did it—very carefully.
what the management team is thinking and why we’re doing
what we’re doing. IL:What makes you happy and excited to come to work?
One element of the new vision is to move much faster than I’m humbled by, and thankful for, the opportunity to lead
we have previously. That requires decisiveness from me. I love our organization. Knowing I can impact the quality of life
getting all the information quickly and then moving on it to of a large number of people by creating a fun, safe work
make decisions. For example, early on, I doubled the num- environment with plenty of opportunity for personal growth
ber of staff in our IT development group because we have so is deeply satisfying.
many IT initiatives. We need as many resources as we can
get to integrate those new technologies into our systems and When you’re not working, what do you like to do?
IL:
make them effective for shippers and carriers. I love spending time with my family. Our kids are all off to,
or graduating from, college now, so that’s going to be a bit of
What qualities do you look for in the people who report to
IL: a change. I also enjoy fishing and golf, when time allows.  n
you, and how do you nurture that talent?
I look for people who will further our culture and broaden
our diversity of thought, and who have an entrepreneurial Balancing Act
spirit. Even at our size, we have the attitude within the While making the transition from COO to president, the
company that we can get anything done. I nurture talent by hardest part of Dan Curtis’s job is finding balance among
engaging all my people in the strategic initiatives we have competing demands on his time—from both inside and
going, and giving them the space, staff, funds, and guidance outside the company. “It’s a different level of demand,”
they need to accomplish those initiatives. he says. “Prioritizing my time and how I’m going to meet
those demands has been challenging.”
IL: How do you stay in touch with customers’ needs and wants? Nearly as hard is the need to implement new initiatives,
We’ve been doing an annual survey of our customers for quickly, on top of existing projects. “There are things I
want to add to the business, or to do differently,” Curtis
years. It gives us valuable data points that we analyze every
says. “Balancing those with our existing priorities and
year and use to set goals and monitor progress. We also col-
organizational capabilities—that has been challenging
lect answers to open-ended questions, which provide real as well.”

June 2018 • Inbound Logistics  19

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R E A D E R
PROFILE as told to Karen M. Kroll

Tim Miller: Serving It Up


Fresh, Fast, and Casual

I
N 2017, OUR TEAM AT SMASHBURGER FOCUSED ON THE
cost of goods sold. We looked at every aspect of the products we
purchased–from commodities, to recipes, to our supplier base.
And we got creative.

For example, we looked at the toma- implemented a hub-and-spoke model,


toes we use. We’d always chosen round where larger distribution centers acting
tomatoes in the past, but after testing, as the hub support smaller ones. We’ll
decided to move to Roma tomatoes. continue to evaluate our system and
They have a more consistent quality, implement this where it makes sense.
tested better, and reduced costs. When I was at Qdoba, I champi-
In 2018, we’re streamlining our oned a project in which we shifted
Tim Milleris vice president of supply chain and looking at the most from direct-store delivery of produce
supply chain with Smashburger,
effective way to get products to res- to consolidating deliveries through the
a fast-casual burger restaurant.
Based in Denver, Smashburger
taurants. Smashburger has a national main-line distributors that supplied
has more than 350 locations in footprint, and in markets where we most of the other food and paper items.
38 states and nine countries. don’t have a lot of density, we have To make this happen, we assembled
to get creative. In several regions, we a cross-functional team with operations
RESPONSIBILITIES
Commodity management, relationships
with suppliers and third-party
distributors, contract negotiations,
program management; item changes, The Big Questions
price validations, and distributor service
to the restaurants, including on-time What words do you live by? read the charts so you can get from
delivery and fill rates. There’s no “I” in team. Be humble. Point A to Point B. You also have to
Respect others and work together. be prepared for any eventuality.
EXPERIENCE
Vice president, supply chain, Famous What activities make you How would you describe your
Brands International; director, better at supply chain job to a five-year-old?
distribution and logistics, Jack in the management and logistics? We make sure you get all the fun
Box; director, supply chain, Qdoba; toys, foods, and snacks you want.
I grew up around auto racing and
director, distribution, Einstein Noah
Restaurant Group, Inc.; additional am building a track car now. You
supply chain management positions have to be analytical and know how Who is your hero?
with Burger King; Restaurant Supply to develop and solve problems. My grandfather. He survived when a
Chain Solutions, LLC; Yum Brands; and I’ve island-hopped in Greece German U-boat torpedoed his ship,
PepsiCo. and sailed the islands of the Great the USS Dorchester, and continued
Barrier Reef in Australia. In sailing, his service in World War II. He was
EDUCATION kind, caring, and giving.
as in supply chain, you’ve got to
B.B.A., Transportation and Logistics,
Iowa State University, 1993.

20  Inbound Logistics • June 2018

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and quality assurance, as well as exter- groceries. We reduced overall spend in different regions, and leverage that
nal players, including distributors, and improved operations. information to position inventory where
produce growers, and shippers. We laid The reduction in deliveries meant it best supports demand.
out the objectives and strategy, tested fewer invoices and payments in I feel fortunate to have managed
the program, reviewed the feedback, accounting. It also allowed general every aspect of different supply chains,
and then rolled it out nationally. managers at the restaurants to focus from managing commodities to two-
The supply chain we put together more on serving customers, because wheeling products through the back
improved food safety controls and they had fewer interruptions from plac- door of Pizza Hut, and every step in
resulted in more efficient distribution, ing orders and accepting deliveries. between. I went to work for PepsiCo
fewer deliveries, and less complex- Up next at Smashburger, we’re out of college and found I like working
ity at the restaurants. For instance, increasing our use of technology and for organizations that consumers know.
we previously averaged four produce data with our new business intelli- I was the kid who loved to read maps.
deliveries weekly to each restaurant. gence solution to refine our supply I also have a captain’s license and enjoy
We eliminated all four, and deliv- chain. We’ll use it to evaluate, for exam- reading sailing charts. My friends joke
ered the produce along with the other ple, how limited-time offers perform that I never get lost.  n

D OTS
MAB OTFR

ORAD SDA

Acronyms Aren’t Important, Execution Is.

CASESTACKCONSOLIDATION.COM

June 2018 • Inbound Logistics  21

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INFOCUS

NOTED
The Supply Chain In Brief

SEALED DEALS
Sports nutrition bar maker Active Nutrition International GOOD WORKS
GmbH launched e-commerce channels in Germany and Transervice Logistics
Austria using SaaS solutions helped The Book Fairies,
provider Descartes Systems a Long Island, New
Group’s pixi* WMS to support York-based non-profit
order fulfillment for its organization, battle
PowerBar and Dymatize sports illiteracy by collecting
nutrition brands. and donating more than
750 books, CDs, DVDs,
Mitsubishi Electric, manufacturer and marketer of electric and magazines to be
and electronic equipment, renewed its agreement with distributed to libraries, schools, and teachers in need
Yusen Logistics UK as its warehouse provider to continue throughout metropolitan New York. Transervice
to develop a bespoke logistics service. Yusen’s solution now Logistics employees filled 20 banker’s boxes full of
includes all inbound logistics, from palletized and handball donations to help the organization.
containers to picking product for dispatch, as well as
reverse logistics.
UP THE CHAIN
CASK Industries, a full-service
manufacturer and wholesale supplier John Leach was named chief
of wall tile, ceiling fans, vinyl flooring, executive officer by 3PL FLS
window coverings, door hardware, Transportation Services
and countertops, selected and Limited. Leach joins FLS from
deployed the Cloud Logistics TMS to Coyote Logistics, where he
manage transportation. CASK Industries shipped with the was chief commercial officer.
system within days of implementation.
m&a

Dormify, an online retailer for small-space furnishings,


ROAR Logistics, a domestic intermodal
selected Dotcom Distribution as its
marketing company, transportation brokerage,
e-commerce fulfillment and logistics
NVOCC, and U.S. licensed customs broker,
provider. Dotcom will provide fulfillment
acquired Integra Logistics Services. With this
logistics services for the brand’s suite
acquisition, ROAR extends its reach across
of products, including bedding, décor
North America with offices in eight major
pillows, accessories, and storage cubes.
markets and more than 120 associates.

Computer monitor and display maker iiyama entered into AFF Global Logistics, a domestic ocean
a long-term partnership with logistics service provider freight forwarder specializing in less-than-
GEODIS. GEODIS takes care of all customs handling, containerload freight shipments, acquired
the transport of products from Rotterdam to Venlo, The freight forwarder Alaskan Express. The deal
Netherlands, storage and sales order processing at the furthers AFF’s goal to strengthen its resources
GEODIS Campus in Venlo, and daily outbound transport to and deliver best-in-class capabilities, technology, and
final customers. services to the Alaska market.

22  Inbound Logistics • June 2018

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INFOCUS NOTED
The Supply Chain In Brief

SHOVEL READY
recognition
Dermody Properties, a logistics real estate Supply chain solutions provider NFI received
developer and manager, broke ground on a new Lowe’s’ 2017 Transportation Partnership Award
industrial park in Woodinville, Washington, east and was named its North Dedicated Carrier of
of Seattle. Known as LogistiCenter at Woodinville, the Year. Providing dedicated fleet solutions to the
the park will consist of two buildings totaling home improvement and appliance retailer, NFI was
409,500 square feet. LogistiCenter at Woodinville recognized for its commitment and support.
will feature a total of 92 dock doors, eight
grade-level doors, and a 32-foot clear height. Werner Enterprises, a transportation and logistics
Construction is expected to be complete in the provider, received the Partner of the Year Award
fourth quarter of 2018. The facility’s location and for 2017 from Dollar General. The retailer selected
truck maneuverability will complement distribution the carrier based on utilization, highest on-time
operations. service rates, and the best partnership.

Retail chain Sam’s Club gave logistics partner


LEGACY Supply Chain Services its 2017 Third
GREEN SEEDS Party Provider of the Year Award for excellent
service within its warehousing and transportation
network. LEGACY was recognized for best-in-
network productivity, reducing operating cost per
unit, and operating four facilities ranked in the top
six of the chain’s overall network operating index.

Shannon Vaillancourt, president and founder


of logistics software provider RateLinx, was
invited into the Forbes Technology Council, an
exclusive community for chief information officers,
chief technology officers, and other technology
executives.
Anheuser-Busch ordered 800 hydrogen-electric
powered semi-trucks from Nikola Motor Company, a  Dayton Freight
pioneer in hydrogen-electric renewable technology. Lines was named LTL
The brewer will integrate the zero-emission trucks, Carrier of the Year
designed to travel between 500 and 1,200 miles and by HNI Corporation,
be refilled within 20 minutes, into its dedicated fleet a manufacturer of
beginning in 2020. office furniture and
hearth products, in its
inaugural LTL awards
CHEP’s 40- x 24-inch pooled (shared and reused) presentation (pictured). Criteria for this honor
half pallets have achieved carbon neutral status. include on-time delivery and low claims.
CarbonNeutral certification is based on the
CarbonNeutral Protocol, a sustainability program.
Span Alaska Transportation garnered three
Further enhancing the solution’s sustainability, CHEP,
awards from the Alaska Trucking Association (ATA),
a Brambles company, calculates the carbon footprint
recognizing its commitment to safety. In addition to
of the platform, and then purchases carbon offset
the ATA/ConocoPhillips Safe Truck Fleet of the
credits from offset retailer Natural Capital Partners.
Year Award, Span Alaska was recognized for most
The credits benefit the Mississippi Alluvial Valley
improved truck fleet safety and most improved
Reforestation Project, an effort supporting a key
industrial safety.
North American ecosystem.

June 2018 • Inbound Logistics  23

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SHAPING THE FUTURE OF LOGISTICS

Digital Logistics: From Trend to Norm


Microsoft has entered a analytics to keep up with the technology-driven services. It
partnership with ocean will be hard to compete with Amazon’s costs or Microsoft’s
carrier OOCL to develop intelligence without any automation in place as the two lead
artificial intelligence (AI) the charge in digital supply chain innovation.
in shipping, with the goal
IL: What does the race to automate logistics look like?
of helping Microsoft better
Stoll: While there is no need to panic, competition in
understand and predict
automation is on the rise and will only continue to escalate.
shipping patterns and variables.
Amazon put the pressure on FedEx, USPS, and UPS, but it’s
This partnership comes at a
Microsoft that is now cranking up the heat. Legacy shipping
time when traditional players
providers need to embrace the new norm and overhaul their
Dan Stoll, senior technical in the logistics sector have
long-time logistics processes. The transition will not be quick
manager, Nintex worked to streamline and
or painless, but the payoff is in the time companies save
automate wherever possible
that would have been spent fixing predictable or avoidable
in hopes of becoming more efficient and competitive. As
issues. Microsoft seems to be one of the first to try and
these companies step into the business of digital logistics,
address these problems head on. Depending on what comes
supply chain automation is no longer a trend, but the
of the Microsoft/OOCL deal, we might see two Seattle tech
accepted norm.
companies in a shipping war.
To learn more about digital logistics, Inbound Logistics
spoke with Dan Stoll, senior technical manager at Nintex, an IL: What does it take to come out ahead?
Intelligent Process Automation company. He has spent the Stoll: To remain relevant, a plan to automate is critical.
past 10 years of his career helping organizations turn manual If logistics companies aren’t planning to automate in 2018,
processes into well-run automated ones. they are already behind. Until “Shipping with Amazon”
was announced earlier this year, automation was not a clear
IL: What is the current state of digital logistics?
priority for legacy shipping providers.
Stoll: Before Microsoft entered the race, companies
A recent study finds 43 percent of supply chain respondents
were already fighting to outdo one another in logistics.
partially use automation to run their businesses. But over
Walmart teed off against Amazon with its acquisition of
the next few years, more than half of those surveyed want
Parcel to make same-day deliveries in New York, while
to implement even more automated processes. While the
Amazon’s acquisition of Whole Foods is making the grocery
industry continues to make strides in automation and
middleman obsolete. Outside of supply chain acquisitions
intelligent adoption, logistics leaders can look to third-party
and announcements, robots and artificial intelligence are
automation experts for help.
also picking up steam.
IL: How does Microsoft’s announcement change this?
IL: Is there a clear leader at this point?
Stoll: Lost packages, broken cargo, and late deliveries
Stoll: What’s most notable about recent announcements
are a given in the current state of shipping. Microsoft’s
from Microsoft and Amazon is the fact that tech companies
announcement brings an often forgotten stakeholder in
are not leaving any sector, including logistics, untouched.
logistics: the customer. The Microsoft/OOCL partnership
Microsoft’s partnership with OOCL details that the two are in
will better address customer needs through technology
an 18-month research phase, while “Shipping with Amazon”
advancements and predictive analytics. The latest
is open for business. Once Microsoft and OOCL move out
announcement should act as a catalyst to not only
of the research phase, distributors will be faced with two
implement automation, but also to bring the customer to
powerful direct competitors. Until then, distributors need to
the forefront of conversations.
increase their investment in data optimization and predictive

What Drives Supply Chain Investment?


Trying to keep up with customer expectations is driving citing a resistance to change as a top impediment to
retailer investment, while agility and innovation are driving investment in the supply chain.
manufacturers’ investment in their supply chains, according to • Manufacturers view blockchain and autonomous
a joint survey of supply chain executives from JDA Software vehicles as the most disruptive technologies, with half of
and KPMG LLP. The 2018 Digital Supply Chain Executive the companies surveyed planning to test these in the next
Survey conducted by Incisiv finds one force remains constant 24 months.
across manufacturers and retailers alike: More than half • Retailers express the need for end-to-end traceability
identify the need for real-time product visibility as the leading (53 percent) with the ability to manage new fulfillment
driver in digital supply chain investment. nodes (50 percent).
Here are the key findings of the survey: • The top inhibitors for retailers include lack of management
• Manufacturers have the financial resources, but are commitment (70 percent), limited IT budget (60 percent),
struggling with internal decision-makers, with 57 percent and no integrated strategy (30 percent).

24  Inbound Logistics • June 2018

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SHAPING THE FUTURE OF LOGISTICS

10 Ways to Drive 5 Timely information.

Supply Chain Performance Through big data, we now build tools that disrupt some of
the traditional analyst’s functions that we’ve had in place

With Big Data for decades. In what formally took weeks and months for
an analyst to determine, we are able to use the underlying
IS MORE ALWAYS BETTER? When it comes to a shipper’s data and various software tools to give us decision-making
supply chain and big data, more data doesn’t necessarily information in minutes.
equate to better productivity. How you leverage and utilize
the influx of data is what’s key. Andy Moses, Penske Logistics Foundation going from descriptive analytics to
6
senior vice president of global products, offers these tips for measures that are predictive/prescriptive.
shippers hoping to utilize big data to drive performance in
their supply chains. Everyone is trying to go from reporting the news to being
able to predict the news.

1 Eliminate silos.
7 Cost.
With various divisions and subsidiaries, it can be difficult to
Companies that are most astute with big data find ways to
funnel important metrics and data into a single system, but
get there while also being mindful of the cost.
it’s important to be able to cut across the entire organization
and create the means to view data in aggregate. Otherwise,
you’re working in buckets. 8 Compatibility.
Being able to measure compliance with trading partners
Consider data needed from providers
2 such as carriers and suppliers within your supply chain is
and vendors. vital. Score carding and performance management of all your
suppliers can be a useful exercise. Identify those partners
Create a data strategy that works in an environment where whose process inefficiency is costing you and them money.
some functions are executed in house and some by third
parties. Facilities with multiple providers have trouble uniting
all this information. 9 Cost to serve.
This is a prominent conversation and a path successful
3 Process rigor. businesses are pursuing. The granularity in measurement of
supply chains can be served by big data and helps companies
You can have all the great systems in the world, but if you understand what vendors and/or customers cost the most.
don’t have process rigor you won’t have actionable data An effective big data strategy will enable you to work with
to work with. Strong process compliance allows the data your supply chain partners to take unnecessary costs out of
to become meaningful and timely. Executing day-to-day the system. Companies are getting better at incorporating
processes regularly across locations gives consistency and learned experience and big data into their pricing.
truth to the data.

10 Understand the what-ifs.


4 Consider a third-party logistics (3PL) company.
Quality data enables you to run what-if scenarios, and study
A 3PL is looking at a bigger picture and can find the network to see whether a proposed change will produce
opportunities that cut across various networks to bring a specific result, and therefore identify inefficiencies, uncover
opportunity to all. improvements, remove waste, and cut costs.

An Awesome Supply Chain Scholarship


To attract women who want to pursue graduate in their applications along with a one-paragraph essay.
degrees in supply chain management, the MIT Center MIT will review all applications and forward the top
for Transportation & Logistics announced a new three finalists to AWESOME to select one recipient from
scholarship in partnership with AWESOME the pool of candidates.
(Achieving Women’s Excellence in Supply Chain Application collection will begin in September 2018 and
Operations, Management, and Education), an the first AWE Scholarship will be awarded in March 2019.
industry-wide organization for senior-level women The recipient will attend the AWESOME Symposium in
in the supply chain field. either May 2019 or May 2020. In August 2019, the first
The AWESOME/MIT AWE Scholarship will offer an AWE Scholarship winner will attend MIT.
applicant to the MIT Supply Chain Management Program
For more information on the AWESOME/MIT Scholarship,
a 100-percent tuition fellowship for the first year — this
contact: Bruce Arntzen, executive director,
equates to approximately a $72,000 value for a student
MIT Supply Chain Program, [email protected]
of the class of 2020. Potential students wishing to be
considered for this award will announce their candidacy

June 2018 • Inbound Logistics  25

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SHAPING THE FUTURE OF LOGISTICS

TEACHING LOGISTICS seem far more directed in their career development. Many
of them know exactly what kind of role they would like to

EXCELLENCE assume and they leverage the extensive network of contacts


they develop in the program to create a concrete plan to
The talent gap continues to be a concern in the supply chain/ reach those objectives.
logistics sector. To help combat it, many universities and
IL: What advice would you give high school students
educational institutions are working to attract new students to
seeking a career in supply chain/logistics/transportation?
the sector, and provide appropriate training. One such school
Keough: Go out and get some real-life work experience
is the University of Washington, College of Engineering-Supply
to see if the field appeals to you. Firms such as UPS and
Chain Transportation and Logistics master’s program.
Amazon are always looking for bright people to work in their
Inbound Logistics recently caught up Bill Keough, the
distribution and transportation operations, particularly
program’s managing director and professor, to find out how
during the holidays.
the University of Washington is addressing the talent gap.
IL: Do you partner with any private businesses to help close
IL: What areas of interest are your supply chain students
the talent gap by training qualified candidates for the supply
most focused on?
chain workforce?
Keough: Most of our students are currently working in
Keough: We have several types of partnerships in this
the transportation and logistics field. The majority want to
effort. We work closely with a number of recruiting firms
acquire end-to-end knowledge about how excellence in
focused on filling senior roles in the supply chain field. We
transportation can contribute to optimizing a complex global
also have a large network of executive contacts in the supply
supply chain.
chain space who frequently contact us to identify top talent
IL: You’ve seen your supply chain program mature over the for positions that haven’t even been posted yet. We leverage
years. How do today’s supply chain undergrads differ from the expertise of the VP-level executives on our advisory board
previous years? to understand the skills and abilities they are seeking for their
Keough: Today we see more students who already have supply chain teams, to ensure our curriculum remains tightly
undergraduate degrees in the supply chain field. They also linked to the marketplace’s current requirements.

IoT, Robotics, Machine Learning to Transform the Supply Chain


Transport and logistics businesses are investing in Internet of Things (IoT)-based smart technologies to help them take
advantage of the wealth of opportunities the Fourth Industrial Revolution offers. The sector is prioritizing IoT, machine learning,
and robotics to increase efficiencies across the supply chain, according to research data collected by Inmarsat, a provider of
global mobile satellite communications.
Inmarsat’s report, featuring responses collected from 100
large global transportation companies, found respondents Which IoT-based solution/s has your
see IoT as the top priority in their approach to digital organization deployed? (%) (163)
transformation, with 36 percent having already deployed
IoT-based solutions, and an additional 45 percent expecting
to roll out the technology by 2019.
Transport companies are rapidly exploring a wide range of
other next-generation technologies in the pursuit of digital
transformation, the research reveals. The most popular are
machine learning (37 percent), robotics (37 percent), and 3D
printing (29 percent).
The supply chain looks set to be one of the biggest
beneficiaries of this drive toward digital technologies,
with 14 percent already reporting visibility and efficiency
improvements in their supply chains and another 65 percent
expecting to achieve this in the future.
“The industry is clearly making significant strides toward
digital transformation, with IoT-based solutions, used
in conjunction with robotics, automation, and machine
learning, helping to transform the way that goods are
manufactured, stored, and delivered,” says Mike Holdsworth,
director of transport at Inmarsat Enterprise. “Companies
that proactively invest in these technologies will be able to
facilitate more secure and profitable operations across their
supply chain.”
SOURCE: Inmarsat

26  Inbound Logistics • June 2018

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SHAPING THE FUTURE OF LOGISTICS

5 WAYS WAREHOUSING IS GOING GREEN


The future looks bright for warehousing. This is especially more time to commit to other things, which also means proj-
true when it comes to taking a green approach to ects will be done faster. As a result, profitability will also
procurement and manufacturing. Eco-friendly warehouses skyrocket thanks to this ideology.
present a tremendous upside for the planet and for your 4. Energy management systems. The best way to lower
pocket. If you are interested in these revolutionary changes, consumption is to manage it. Energy management systems
now has never been a better time to act. Tom Reddon, of autonomously oversee all the utilities one facility uses with-
BlueGreenTomorrow.com, offers five ways eco-friendly out much human intervention required. With the integration of
warehouses are revamping the industry daily: timers, thermostats, and gauges for all forms of electricity, gas,
1. Telematics increase fuel-cost efficiencies. These plat- heat, and water, energy management systems derive the best
forms revolutionize the way companies reduce overhead, practices to use what is needed without excessive waste. This
eliminate earmarks, and drive profitability. They are also is a fundamental component of eco-friendly systems, because
extremely eco-friendly. One way telematic software achieves it helps businesses lower usage of renewable resources while
this is through a proactive monitoring of fuel costs to allow also placing more money back in their pockets.
businesses to slash fuel expenses, according to TotalTrax. 5. Electric forklifts. Electric forklifts eliminate the need for
2. Lighting sustainability. Modernized lighting focuses more gas and oil. Not only is this good for the environment but it is
on providing a true illumination option at a resourceful rate. also safer for employees. Personnel no longer need to expose
This approach is also kind to the environment as it reduces themselves to dangerous chemicals such as battery acid, anti-
usage and consumption rates. freeze, or transaxle liquid. This can slash the level of incidents
3. Smartly located inventory. Smartly located inventory is related to hazardous materials handling, which, in turn, drives
a proven way to bolster efficiency and productivity because up the bottom line. Electric forklifts are as their name entails:
it requires workers to do less. As a result, personnel will have simply plug them in before and after operation.

The Logistics Long(er) Run Industrial Market Cycle Position, Q1 2018


The current expansion phase for U.S. industrial and
logistics real estate appears poised to surpass the
typical lifespan of an economic cycle due to demand
from e-commerce companies, according to a new
report from CBRE.
U.S. economic cycles tend to run for seven to eight
years. Yet the current expansionary cycle, which
started in 2009, already is among the longest on record
for the American economy. CBRE’s report highlights
two factors that likely will fuel the U.S. industrial
market even longer.
First, the industrial and logistics market—warehouses,
distribution centers, manufacturing buildings, and other
industrial facilities—tends to lag the broader economy by
a couple of years. For example, the industrial market’s
recovery didn’t begin until 2011, well after the broader
Rents declining, Rents still declining Rents rising at faster pace, vacancy Rents increasing at
economy had started its rebound. Thus, the industrial vacancy increasing, or stable, vacancy declining, and new supply additions slower pace, vacancy
market’s expansion isn’t as seasoned. and excess new
supply additions
increasing or
decreasing slowly, and
underway or on the horizon stable, and increased
new supply additions
Second, the rapid growth of e-commerce in recent limited or new supply
additions
years has created a permanent, structural shift in the CBRE Reasearch, Q1 2018
market as an increasing portion of U.S. consumer
goods is distributed to consumers through warehouses
rather than stores. Given that e-commerce still has While most top industrial markets are well into the expansion or
maturation phases of the current cycle, they could remain there for an
substantial room to grow within American retail sales, extended time if the economy stays strong.
that ongoing shift likely will continue to support the
industrial and logistics market’s expansion.
“There are few historical precedents for e-commerce’s effect on the industrial real estate market,” says David Egan, CBRE
global head of industrial and logistics research. “The market still is establishing its new baseline, though most evidence
indicates that expectations have reset at higher levels for the foreseeable future.”
Because of these factors, it’s feasible that markets that are further along in the current industrial and logistics cycle than
most—such as Houston, Milwaukee, Chicago, and Los Angeles — can continue to generate gains, according to the report.
Meanwhile, markets still in an expansion phase, such as Atlanta, Philadelphia, Phoenix, and Orlando, likely still have time to
continue on their trajectory.

June 2018 • Inbound Logistics  27

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THE WORLD AT A GLANCE

Ports Too Busy to Worry About Trade Tensions


Despite trade
tensions, port business in the United
States and Asia is booming, reports the latest Global Trade Balance: Latest Trends
Kuehne + Nagel Indicators (gKNi).
Country Status Trend Change*
U.S. ports are experiencing
increased container
volumes, with heavy traffic in Los Angeles, Long Australia positive change
Beach, and New York/New Jersey, according to Brazil positive change
real-time data collected by LogIndex, part of the Canada negative change
Kuehne + Nagel Group. Notably, inbound loaded China positive no
container volumes jumped, while the quantity of France negative no
outbound loaded TEUs tended to decrease. Germany positive change
To illustrate the strong import trend, the metric for United Kingdom negative no
inbound TEUs in Long Beach—a gateway for trans- India negative change
Pacific trade—is up 11 percent compared to the same Italy positive change
period in
2017 (April: 8.4 percent YoY), according Japan negative change
to LogIndex May estimates. Four months into 2018, Mexico positive no
the Port of Long Beach has moved 2.5 million TEUs, Netherlands positive no
17 percent higher than last year’s record pace. South Korea positive no
Overall, cargo and container throughput in the Spain negative change
world’s largest ports has risen by 3.2 percent year Sweden positive no
to date, with the biggest increase in Singapore Taiwan positive change
(+6.2 percent), reports LogIndex. To date, lingering United States negative change
trade tensions have not had a direct impact. *Change in the trend

Other import statistics imply it’s business as usual, SOURCE: LogIndex

at least at first glance. Iron and steel imports reached A downward arrow in cases of negative trade balances means the
an eight-month high in April (+75 percent YoY), situation is worsening, and vice versa.
based on LogIndex’s analysis of bills of lading. Some
observers suggest, however, that part of the strong which was digesting the high euro during the
growth is driven by trade tensions as anxious shippers first
quarter. The United States, Australia, and Canada
rush to get their cargo to overseas markets. are the fastest-growing Advanced Economies countries,
World trade is inching up, based on country forecasts posting a year-over-year rate of 4.7 percent compared to
available for May and June 2018. There are regional 16.1 percent of Emerging Market countries, according to
differences—Asia is dynamic in contrast to Europe, LogIndex’s May 2018 estimates.

Tech Drives Trade Growth, Say Upbeat SMEs


Small and mid-size enterprises (SMEs) struggling for come at the expense of SMEs and disproportionately
equal footing in the global economy increasingly look benefitted multi-nationals and other large businesses.
to cross-border trade for growth, seeing technology Three-quarters of SME executives surveyed believe
as a way past obstacles in shipping and compliance, businesses that operate internationally are more
according to new research from Shipa Freight. resilient. Nearly 80 percent say they use online
Shipa Freight’s global study of 800 SMEs from platforms for freight quotes and bookings.
developed and emerging markets shows smaller SMEs that view the UK as one of their top export
companies are remarkably upbeat about their ability to markets are looking elsewhere because of Brexit.
expand through trade. Britain’s vote to leave the European Union has
Eighty-nine percent of exporting SMEs surveyed say prompted 73 percent of respondents to prioritize
their export revenue will grow over the next three trade with other European countries. Sixty percent
years; 71 percent say they are concentrating more on of UK SMEs that export and 52 percent of UK SMEs
international markets than on their home markets. The that import say leaving the EU Single Market would be
Shipa Freight survey included exporters and importers “disastrous” for them.
from the United States, UK, Germany, Italy, China, India, Smaller companies clearly see technology as a way
Indonesia, and UAE. to close the gap with bigger competitors, cope with
Smaller companies account for an estimated documentation requirements, and access competitive
95 percent of all businesses and employ two-thirds shipping options. Eighty-six percent say technology is
of the world’s workers. Critics of globalization have leveling the playing field for SMEs to operate globally;
argued that decades of efforts aimed at easing the 89 percent believe technology is transforming the
flow of goods, capital, and jobs across borders have logistics sector.

28  Inbound Logistics • June 2018

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THE WORLD AT A GLANCE

CEVA and IMS Team Up


For FTZ Services
American Airlines Says Hola to
A new alliance between CEVA Global Cuba Cargo
Logistics and IMS Worldwide (IMSW)
offers Foreign Trade Zone (FTZ) services Service
to U.S. shippers.
The FTZ program started in the United AMERICAN AIRLINES
States in 1934, and is in use across all BECOMES the first
states, particularly at large gateway U.S. passenger carrier
points such as Houston, Los Angeles, to begin cargo service
Miami, Dallas, Chicago, Phoenix, El Paso, to Cuba. The airline
and New Jersey. An FTZ allows shippers now offers mail
to lower, eliminate, or become exempt service, including
from federal taxes and fees. correspondence,
The partners will develop a parcels, and express
sophisticated Zone Managed Services mail, into and
American Airlines starts cargo operations to
offering that will analyze a shipper’s out of José Martí Havana, Cuba, becoming the first U.S. passenger
supply chain, and integrate certain International Airport airline to provide this service.
activities into FTZ environments. This (HAV) in Havana,
will help the shipper achieve improved Cuba’s capital city and leading commercial center.
efficiency, save on duties or import fees, Havana is American Airlines’ principal destination from the United
and improve cash flow through working States, with one daily flight from Charlotte Douglas International
capital reductions. Airport (CLT) and four daily flights from Miami International Airport
The collaborative alliance allows CEVA (MIA) scheduled to increase to five daily flights in October. The MIA
to expand its current FTZ offerings to its flights are operated with Boeing 737-800 aircraft and the CLT flight is
ocean and air gateways in North America, operated with the Airbus A319.
as well as utilize its contract logistics American is the leading U.S. airline in Cuba, with nine daily flights
expertise and footprint to offer additional to five destinations in the country. American has served Cuba
benefits to shippers within the FTZ. since 1991— with charter service for more than 25 years and with
The partners also plan to offer scheduled service since September 2016. The addition of mail service
e-commerce solutions and air cargo will further strengthen American’s commitment to serving the needs
forwarding. of customers in the U.S.-Cuba market.

SMEs Reveal Global


Trade Obstacles ONE OF THE LARGEST REFRIGERATED WAREHOUSES IN THE NORTHEAST

Small and mid-size enterprises


Modern inventory
(SMEs) face numerous international control system
trade obstacles, finds a Shipa
Freight study. Forty-two percent of 107,000 sq ft of expandable
respondents say the costs of shipping refrigerated warehouse space

abroad are too high, or they lack an


accurate picture of costs, while 40
percent find it difficult to understand
documentation requirements.
A significant minority say their If you are looking for innovative and effective management of
cargo has been held up in customs (39 your supply chain, look to CF Cold Storage.

percent) or lost in transit (27 percent). As a third-party logistics provider (3PL) operating one of
the largest refrigerated warehouses in the Northeast, we
SMEs based in emerging markets are dedicated to creating a partnership that focuses on
find export regulations onerous: integrated refrigerated logistics and distribution services for
your refrigerated foods. We also offer customized dedicated
67 percent identify export transportation solutions.
regulations as difficult, compared Let us show you what we can do for your supply chain.
with 44 percent of SMEs based in Contact us today!
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June 2018 • Inbound Logistics  29


CF_Cold_Revised_0618.indd 1 6/12/18 11:21 AM

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L O G I S T I C S
©

Tim Zubradt, Chief Sales Officer, Crane Worldwide Logistics


630-517-9528 • [email protected]

Load and Expedite

I
f you have spent any time in manufacturing logistics you perspective. Here are a few things as a freight forwarder we are
can appreciate the classic problem of ‘Load and Expedite.’ keeping a close eye on and you should too:
At Crane Worldwide Logistics®, we see the same thing all ■■ 301 tariffs with China: If these go into place there is
over the world with clients in nearly every industry. By not a significant chance manufacturing may shift locale.
having adequate logistics visibility, setting proper tolerance ■■ Trade agreements: The current administration has
levels and accurate production forecasting, companies are put these on the table and they have the ability to
being forced to rely on expedited freight to meet their manu- drastically impact duties and duty avoidance.
facturing demand. Even the most experienced companies ■■ Driver Supply/Prices: There is more freight than can
and logistics professionals can get this wrong, and the dirty be moved by the supply of drivers and they know
secret is it will not improve or become easier any time soon. that, price increases are coming.
The first thing to consider is the overall market. In gen- ■■ Ocean & Air Freight: This portion of the supply chain
eral, the economy and manufacturing, both domestic and is fairly stable and there should be no major change
abroad, are doing quite well. Where the norm has been in the supply of boats although there may be issues
around 3% growth, many industries are experiencing dou- with aircraft due to rising e-commerce demand.
ble-digit growth. This is stretching supply chains that are
already near capacity. The second market force to consider is Over time, all of these obstacles can drastically increase your
the driver shortage. The supply of drivers is decreasing while freight spend. There is no doubt the price of domestic freight
the demand is growing. These market forces considered is and will continue to go up over the next few years. This
separately are a headache, but when put together create increase makes it even more important for businesses to get
massive challenges and significant cost increases. these fundamentals right to drive better efficiency.
On the client/business side of the equation, as a global ■■ Ensure your logistics provider has a solid cross-dock
freight forwarder, we see several reoccurring problems that on footprint with local pick-up and delivery.
the surface seem innocuous but can easily snowball. The first ■■ Demand planning/forecasting for your tier 2, 3, 4 etc.
is demand projections for lower tier suppliers. Companies gen- suppliers are adjusting for growth and retraction.
erally give good production estimates for their top suppliers, ■■ Understand the macro factors that impact demand.
but quite often miss when it comes to their lower tier suppli- ■■ Clear visibility to your freight and understanding of
ers, resulting in the need for expedited shipments since these true raw-on-time percent.
smaller suppliers cannot keep pace with the growth demand. ■■ Build relationships with freight providers.
The second issue we see is visibility to accurate raw-on- ■■ Evaluate repackaging and consolidations to save
time numbers. When companies and carriers are not working valuable business days.
from the same definition of “on-time” it can cause significant ■■ Look at boxing/crating customizations.
shortages. Last but not least, companies and drivers are often ■■ Eliminate driver dwell time.
sitting on freight. While a driver waiting for a load for an hour ■■ Be honest with what you can and can’t do in house,
does not seem like a major issue, repeating this practice 4PLs are a valuable option.
hundreds or thousands of times during the course of a year
can add up to missed miles and increased inefficiencies. This There are a lot of moving parts in the production of a
scenario adds tremendous waste to the supply chain and product. The key is to value stream your supply chain to make
also irritates the drivers. sure everyone understands the risks and rewards. Sometimes
The last group of challenges to consider are changes in the leaning out the supply chain without considering all the
macro environment and anticipation of the future. It is critical, factors can cause serious issues. Taking recommended steps
when building a supply chain, you consider what is likely and utilizing best practices will not eliminate all ‘Load and
and unlikely to happen in the next year or two from a macro Expedite’ shipments, but they can reduce the frequency.

30  Inbound Logistics • June 2018

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Supply Chain Challenge?

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Partnering for Operational


Efficiency and Cost Savings
Transplace helped a frozen pizza business expand its transportation network to
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THE CHALLENGE locations. Transplace then


After acquiring a competitor’s established a defined schedule for
North American frozen pizza customer orders and deliveries,
business, Dr. Oetker, a family- helping bring consistency to
owned global food company, Dr. Oetker’s shipping operations
needed to optimize its newly and allowing them to reduce lead
expanded transportation times, carry less inventory at its
network, which now included facilities and utilize dynamically-
customer locations across routed, multi-stop loads.
Canada, production facilities in the Canadian market and proven By consolidating freight,
Atlantic Canada and New Jersey, ability to execute. Transplace reducing inventory stocks and
and sourcing points in Eastern worked with Dr. Oetker to establish implementing a shipping schedule
and Central Canada as well both pre- and post-acquisition with dynamic load building,
as Germany. The goal was to network baselines, incorporating Dr. Oetker was able to achieve
drive financial and operational transportation and warehousing cost savings of more than 7% and
efficiencies across their North costs and other factors in order deliver higher service levels to
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challenges of shipping in Canada. technology together to increase
operational efficiency and
THE SOLUTION maximize financial savings.
To achieve the results it desired This plan included converting
in the midst of a large supply warehouses into merging centers, REST EASY. WE WONʼT.
chain transformation, Dr. Oetker where shipments from various
To learn more about Transplace’s
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32  Inbound Logistics • June 2018

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When an industrial manufacturer needed to reduce supply chain costs, they teamed
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Crane Worldwide Logistics’ Working with the client, Crane area of opportunity with
client is a large global industrial Worldwide Logistics® completely manufacturing clients. The
manufacturer and they are redesigned the supplier pack with packaging manufacturers use for
under constant pressure to several goals in mind: shipments tend to have a number
reduce supply chain costs. Due ■■ Utilize the entire dimensions of of design issues that make them
in large part to recent legislation the ocean container. less than ideal for shipping and
in the transportation industry, ■■ Design the internal dunnage to transportation. We find if we
there has been a significant protect the components. are able to look at a specific
shortage in the supply of drivers, ■■ Maximize the number of parts application, and design something
drastically increasing the cost of per package. for the specific purpose, we are
transportation for our client. able to generate big cost savings.
Specifically, our client was The results were striking. Not In this case, the review and new
shipping high volumes of only were we able to accomplish design generated big results
powertrain components from all of our goals on the packaging because our client allowed us to
North America to Germany via side, we also exceeded our cost be creative and challenge their
the ocean. The supplier packaging saving expectation for the client. internal procedures.
did not go “wall to wall” so each ■■ Increased parts per box At Crane Worldwide Logistics®
unit load had to be blocked and by 100%. we believe in innovation and
braced. On average, the impact ■■ Reduced containers used solutions; not limitations!
of this package was a 60% (cubic annually by 50%.
average) underutilization rate for ■■ Reduced bracing per
each ocean container. container 60%.
■■ Created wall to wall bracing
while decreasing total box cost.
To learn more about Crane Worldwide
■■ Created a seven-figure cost
Logistics’® solutions, visit www.trycraneww.com.
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June 2018 • Inbound Logistics  33

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IT MATTERS

BY William Salter
CEO, Paragon Software Systems
[email protected] | 718-288-5833

Last-Mile Technology
Needs a Radical Rethink

W
e need to stop viewing last-mile logistics as solely a Delivery performance has become
delivery challenge. The broader challenge is ensur- a competitive differentiator, mak-
ing it a closely scrutinized end goal
ing processes and their supporting technologies at almost every departmental level.
work together to allow supply chains to meet the market’s Last-mile delivery performance is
insatiable appetite for faster, more precise deliveries. now inextricably connected to every
part of the business.
Supply chain management manually, any expert knowledge And yet, while the final mile is
technology is boldly exploring about peculiarities of loading docks, the most complex part of the sup-
sophisticated new developments special customer unloading require- ply chain, it is the last part to
such as driverless vehicles and the ments, and habitual traffic snarls be optimized.
Internet of Things. And yet, we’re tends to get lost because there’s no
still employing 1985 technology central place to collect it other than Automating the Process
when it comes to the last mile. in the planner’s memory. Automated routing and schedul-
That is astonishing in the ing ensures delivery route plans are
The Reality of Route Planning highly automated world of crafted to maximize delivery stops
Here is what delivery route plan- freight management. and minimize fuel while making the
ning and scheduling looks like at There’s a steep cost to the con- most of driver shifts and available
many businesses that manage their sequent inefficiency. Last-mile trucks. It can also collect critical
delivery fleets using manual methods: delivery costs in the B2C sector have information about the actual routes
A route planner gathers custom- ballooned to an estimated 30 per- driven that companies can use to
ers’ paper orders, assigns them to a cent of the total transportation cost; give customers accurate delivery
driver based on territory, arranges a similar figure could no doubt be times, and can feed back into the
them from first to last after eyeball- arrived at in the B2B sector. system to generate even better route
ing a map, and hands over the stacks The fully burdened cost of a truck plans next time around.
to drivers to deliver in sequence. mile is $1.59, according to the The last mile of the supply chain is
These plans can fall apart the American Transportation Research an integral, not stand-alone, func-
moment there’s a delay, and it’s dif- Institute. For a 50-vehicle private tion. Without great delivery route
ficult to quickly fix them manually. delivery fleet, where each vehi- planning and scheduling, all the
Inefficiencies hamper every route. cle racks up 50,000 miles per year, smart, powerful technology compa-
Deliveries are late or missed, cus- driving 20 percent more miles than nies invest to streamline sales, order
tomers lose faith in the supplier, and necessary means nearly $800,000 in management, marketing, product
truck routes often cross each other or lost profit annually. Customer satis- design, and customer service grinds
double up needlessly. When working faction suffers, too. to a halt at the final hurdle. n

34  Inbound Logistics • June 2018

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THE TRACKS
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CARRIER’S C
 ORNER

BY HAROON SYED
Vice President of Sales and Marketing, Schneider
[email protected] | 800-558-6767

4 Ways to Tell if Your Alcohol


Carrier Knows the Hard Stuff

T
ransporting alcohol is a time- and temperature- shippers make informed decisions
sensitive move that requires superior logistics. Selecting about the company they hire. While
even the safest drivers and carriers
a carrier that can meet the stringent requirements and have violations from time to time, a
provide value to a shipper’s business is crucial. shipper can see whether these inci-
dents are few and far between or
To demonstrate they would be a In most instances, enforcing a common occurrences.
good fit for your business, consider predetermined mileage blackout 4. Understand product stipulations.
alcohol carriers that: area, where carriers are prohibited When an alcohol delivery is made,
1. Know the law. Every state has from stopping before reaching that the product’s integrity can be
its own process for transporting and mileage amount, is common to pre- tracked back to the transportation
delivering alcohol, so distributors vent thieves from stealing the load. provider. External factors such as
must find a carrier that knows local To double down on loss prevention, weather and traffic delays can easily
laws and understands the require- a provider needs to be appropri- impact product quality. It’s criti-
ments from state to state. ately insured. cal for a transportation provider to
For example, some states require Another common request is to use understand the cargo’s sensitive
drivers to have the state’s original newer equipment to move alcohol. nature and get it to the destination
permits whether they’re driving Equipment that is too old–more than as quickly and safely as possible.
through or making a delivery. For eight to 10 years–may be a deal breaker.
these states, it’s necessary to domi- When assessing providers, deter- What Shippers Can Do
cile the permits at predetermined mine which requirements are When selecting an alcohol carrier,
locations so drivers don’t have to absolutes and which are negotiable. it’s critical to look at those that are
veer off route to get them. A trans- 3. Maintain a low CSA score. A equipped to handle the nature of
portation provider that accounts for reputable carrier and driver can the work and compliant within the
this makes shipping more efficient.    mean the difference between a industry. A provider that is well versed
2. Adhere to distributor-specific safe delivery and a tragic accident. in permitting laws, understands and
requirements. Shippers are bound to Evaluating the Compliance, Safety, reacts well to shipper requests, and
have certain requirements for their Accountability (CSA) data provided achieves impressive CSA scores can
products. Finding a carrier to meet by the Federal Motor Carrier Safety mean all the difference to the bottom
these needs is essential for a success- Administration identifies high- line—and the successful delivery of a
ful working relationship. risk carriers and drivers, helping good libation. n

36  Inbound Logistics • June 2018

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Choosing a
3PL Partner
Just Got Easier.

Create a database of prospective partners…prepare your


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with Inbound Logistics’ FREE online RFP service.
The 3PL RFP is your opportunity to have third-party logistics experts look at your
specific outsourcing challenges and needs, and give you free, no-obligation advice,
solutions, and information specific to your request.
Whether you need to outsource your entire logistics operation, or just one segment
of it, choosing the right third-party logistics partner can be a complex challenge. In
response to reader requests, Inbound Logistics offers an online 3PL RFP tool to help
simplify your selection process.

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3PL RFP Full-Pg Filler-MM.indd 1 11/9/16 3:46 PM
CLARIFYING THE
BUSINESS
CASE FOR

SUPPLY CHAIN
MANAGEMENT
By Yossi Sheffi

38  Inbound Logistics • June 2018

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For most companies, sustainability is not
a simple case of “profits vs. planet” but a
more subtle issue of people looking for jobs
and inexpensive goods versus others who
seek a pristine environment. Here’s how your
supply chain can satisfy these conflicting
motivations to achieve both economic growth
and environmental sustainability.

E
nvironmental sustainability is first and foremost a logistics and supply chain
management (SCM) issue. Supply chain activities such as procuring raw mate-
rials and transporting goods impact companies’ environmental performance.
Moreover, environmental groups rightly hold companies responsible not just for
their own actions as corporate citizens, but also for the actions of their suppliers.
Managing supplier relationships falls within the remit of the SCM discipline.
Given these pressures, it appears that companies have an explicit case for invest-
ing in supply chain sustainability programs–yet the case for making substantial
investments is far from clear and companies tend to do the minimum necessary to
support sustainability goals.
Much of the ambiguity springs from the rationale to pursue green supply chain
practices. One motivator is that companies tend to be put on the defensive by crit-
icism from environmental groups and need to respond. The sheer complexity of
greening supply chains is another reason for investing in green–albeit minimally.
But the main reason for corporate caution when it comes to green investments is
that consumers are unwilling to pay a premium for sustainable products.

June 2018 • Inbound Logistics  39

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F i r s t , l e t ’s l o o k a t w h y e n t e r -
prises have devoted–and continue
to devote–resources to green supply
chain initiatives.
Officially, companies often cham-
pion their environmental credentials
in glossy reports, speeches, and media
interviews. Behind the scenes, however,
many will admit that they do only the
minimum for three basic reasons.
1. Risk mitigation. Regardless of the
degree to which company executives
believe in the threat of climate change
or the ravages of environmental degra-
dation, many of their customers do, and
they need to respond to these beliefs
(even though the same customers are
not likely to be willing to pay more for
sustainable products). If they don’t, they
risk incurring the wrath of non-govern- An investment in software helped office supplies retailer Staples enhance environmental
mental organizations (NGOs) and the performance and reduce fuel consumption and emissions in its delivery truck fleet.
media, leading to reputational damage.
This class of supply chain risk pulled from the market,” says Carles offset any environmental impact savings
management can be termed eco- Navarro, president of BASF Canada. from reduced transportation.
risk mitigation: initiatives that aim to Although it was “the right thing to Another retailer, Staples, found a way
reduce the likelihood and magnitude of do,” sales suffered. Customers com- to cut costs and enhance its environ-
business disruptions caused by environ- plained, and competitors that still sold mental performance with a relatively
mental issues. In addition to the threat polyamide with the toxin gained market modest investment in software. In 2006,
of reputational damage, this type of risk share. It took two years for BASF to find Mike Payette, director of fleet opera-
also encompasses investor actions that a safe alternative material. On the plus tions, was investigating ways to reduce
trigger management changes and dis- side, the company was not subject to costs, fuel consumption, and emissions
ruptive government regulations. reputational costs or attacks from envi- on the office supply retailer’s fleet of
ronmentalists and the media when it delivery trucks.
Insurance Limits did not have product on the market. He changed the control software in
Unfortunately, unlike insurable events 2. Cost cutting. Investing in green one delivery truck to limit its top speed
such as natural disasters and accidents, initiatives can reduce supply chain costs. to 60 mph, monitored fuel consump-
risk managers have scant reliable actu- An example is reducing the number of tion for 45 days, and found that average
arial data for quantifying the likelihood empty miles, which can shrink carbon gas mileage climbed from 8.5 mpg
of NGO strikes, consumer preference footprint and capture transportation to 10.4 mpg–a reduction in fuel con-
changes, or adverse regulatory changes. cost savings. sumption of almost 20 percent. Payette
Consequently, the few available insur- Switching to local sourcing is a way estimates it cost only $7 per truck for
ance policies have limited scope and to take miles and cost out of a supply him to upload the new software in every
high costs. Thus, companies are left to chain and reduce the carbon footprint. vehicle yet the change yielded $3 mil-
manage these risks themselves using This is especially true for food, where lion in fuel savings annually.
“just-in-case” or scenario-based justifica- NGOs and environmental writers have 3. Hedging. The third incentive for
tions for risk mitigation. popularized the concept of “food miles.” modest investments in green is that
In the early 1990s, chemical com- Whole Foods, Walmart, and other companies need to gain relevant exper-
pany BASF learned of the potential retailers have programs to “buy local” tise just in case consumer taste and
toxicity dangers of using brome-based typically from suppliers in the same demand change. For instance, mil-
flame retardants in its polyamide plastic state or a modest distance away. lennial consumers tend to be more
line. If incinerated, the material could Local sourcing, however, does not environmentally conscious than the
produce highly carcinogenic dioxins always reduce a product’s total life baby boomer generation, and these con-
in the smoke. The company took deci- cycle carbon footprint. Factors such as victions may shape future markets.
sive action. “Less than six months after the carbon intensity of the local power In 2008, cleaning products maker
receiving an initial heads-up from man- grid or the need for energy-intensive The Clorox Company launched a line
agement, the product was completely production techniques can more than of environmentally friendly cleaners

40  Inbound Logistics • June 2018

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called Green Works, a family of 17 acquisition of BG Group PLC. The by the bitumen sands operation as well
green cleaning products designed with company was successful in its media as its overall economic contribution,
natural active ingredients that com- campaign to present the sale as a move and published reclamation data. The
peted with the company’s main line of away from fossil fuels. The media pro- Canadian people were somewhat less
cleaning products. pensity to highlight “green” helped. measured in their response; they orga-
Buoyed by a $25-million annual Shell’s strategy prompted newspaper nized a boycott of companies that were
advertising push in 2008 and 2009, the headlines about how the deal enabled quoted as avoiding Canadian fuel.
Green Works product line sales brought the company to distance itself from an Even when companies do the “right”
in $58 million a year in 2009. However, environmentally controversial venture. thing, they can be caught in the cross-
the price premium of the products fire when ideology and pragmatism
during a recession, and doubts over Plants vs. Profit (Really?) conflict. For example, Walmart worked
its efficacy, caused sales to fall to just The reasons described above moti- with various stakeholders to develop
$32 million in 2012. Clorox responded vate companies to invest in green supply seafood certification programs that
by lowering the product’s price and chain initiatives–yet many do only the support sustainability. In 2015, environ-
launching a rebranding campaign in minimum because they do not believe mental group Greenpeace contended
2013 to attract mainstream buyers. in the need for this effort, or more com- that Walmart was not doing enough,
Ultimately, Green Works proved to monly, that current initiatives do not whereas Alaskan fisherman and state
be a money-losing proposition, yet the meet any reasonable cost benefit test officials complained that the com-
company’s CEO Don Knauss insisted even if global warming is real and the pany was asking too much of them and
that “it was all about growth.” The ven- danger acute. endangering their livelihood.
ture enabled the $5.6-billion company Despite this skepticism, companies
to make a relatively small investment continue to align themselves with the Green Can be Challenging
in building its knowledge about sustainability movement in public. The challenges of green supply
green products. Why do they maintain this front? chain management also make the case
Many companies also tout cost cut- One reason is that many enterprises for large investments in sustainability
ting or other corporate projects that are put on the defensive when envi- dubious–and are a source of confusion
happen to yield environmental benefits ronmental sustainability is framed as a when environmental groups underes-
as mainly green projects. An example “profits versus planet” or “societal good timate just how difficult it is to meet
is when Shell sold its stake in Alberta’s versus corporate evil.” These narratives sustainability standards.
oil sand project to ease its debt bur- ignore the role of businesses and their For example, balancing supply chain
den, which soared after its expensive supply chains in both employing peo- sustainability with enterprises’ com-
ple and delivering improved standards mercial and societal obligations is far
Clorox sells its Green Works line of natural
cleaning products on the same store of living to humanity. from easy. Casting sustainability as a
shelves as its regular household cleaning All stakeholders need to recognize purely ideological struggle is a gross
products.
that even the most environmentally simplification of the balancing act that
responsible companies must man- enterprises must perform to reconcile
age their supply chains to satisfy sustainability with the rigors of running
growing demand and provide employ- successful businesses and the provision
ment opportunities. of employment and well-being for the
The real conflict is not “profits ver- communities in which they operate.
sus planet” but “(some) people” versus Consider aluminum producer Alcoa,
“(other) people.” More specifically, peo- a company that supports multiple
ple who believe in the importance of green initiatives. Between 2005 and
environmental stewardship vs. people 2015, the manufacturer improved pro-
who are looking for jobs and affordable duction efficiency by 4.2 percent and
goods. Both are right. reduced greenhouse gas emissions by
Occasionally, this realistic view 25.9 percent. In 2011, it ran 650 ini-
comes to light. tiatives to reduce energy consumption
An example is the controversy and emissions that led to cost savings of
caused by NGO ForrestEthics, when it $100 million, while meeting its green-
attacked retailers and logistics provid- house gas emissions targets.
ers that used trucking companies who Yet to remain cost competitive in
fuel their fleets with diesel derived from a global commodity business, Alcoa
Alberta’s bitumen sands. In response, needs to burn Australian brown coal as
Alberta’s government provided infor- a low-cost energy source–a strategy that
mation on the number of jobs created environmentalists have condemned.

June 2018 • Inbound Logistics  41

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not to pay more for sustainable products
when faced with the choice at the retail
shelf. They generally choose the cheaper
product–even if it is less environmentally
sustainable than more expensive options.
If their customers are not willing to
support sustainability through their
buying decisions, why should compa-
nies make substantial investments in
green products?

Voting With Their Wallets


While many consumers refuse to pay more for sustainable products, some retailers, such
as Patagonia, have cultivated customers who share a deep passion for green living, and will There are exceptions. Companies
support it with their wallets. such as Dr. Bronner and Patagonia,
which are fiercely devoted to high
In addition, evaluating the carbon carbon emissions levels, yet the reality standards of sustainability, have cus-
footprints of supply chains is fraught is far more complicated. This simple tomer bases that share these principles.
with difficulty, especially in today’s glo- product hides a bunch of complex The buying habits of these consumers
balized commercial world. issues, according to an assessment of the reflect their passion for green and the
Supply chain practitioners are inti- greenhouse gas emissions of the banana companies can invest in sustainability
mately familiar with the challenges supply chain carried out by the MIT efforts even when it increases their costs
associated with tracking product flow- Center for Transportation & Logistics. because these customers will pay for it.
ing through supply chains. But keeping A wide range of factors, such as the By and large, however, consumers
tabs on the carbon footprint at various amount of fertilizer used by grow- vote with their wallets.
points in the supply chain can be much ers and how bananas are transported And it’s not just price that drives
more onerous. during the long trip to supermarket these buying decisions; convenience is
For example, although Chiquita shelves, influences the size of the prod- another important factor. For example,
owns much of the banana supply chain, uct’s carbon footprint. Temporal and individuals order products online even
its operations account for a little less geographic variations of the underly- when these purchases have a large car-
than half of the banana’s total carbon ing supply chain further complicate bon footprint owing to activities such
footprint. This is actually a relatively the calculation. as truck deliveries that generate green-
high figure due to Chiquita’s “shallow” For example, researchers estimate house gas emissions, as well as wasteful
supply chain, which includes only two that 17 kg of carbon emissions is the packaging. The convenience of the
basic tiers, and the company’s direct average carbon footprint of a box of online channel is extremely compelling.
control over it. bananas grown by Chiquita in Costa To understand why it make sense for
For many companies and many sup- Rica and sold in the United States. In consumers not to pay extra for green
ply chains, the customers’ suppliers reality, each box of bananas has a very products one has to understand the lad-
and customers along the supply chain different carbon footprint depending on der of product attributes that consumers
contribute, on average, three times as where in the United States, or around consider in the purchase process.
much to a product’s carbon footprint the globe, the fruit is sold. Search attributes are obvious tangi-
as the company’s own operations. This ble properties; a blue versus a red car,
ratio is significantly larger for compa- Consumer Ambivalence for instance. Experience attributes such
nies such as Cisco, Apple, Microsoft, Such complexities, combined with as taste can be verified after a purchase,
and most retailers, who outsource most the need to respond to environmental such as the taste of the cup of yogurt.
or all manufacturing and transportation campaigners, motivate companies to Intrinsic credence attributes such as
activities. Moreover, in the consumer maintain a public alignment with sup- the level of noxious emissions gener-
discretionary product industry, the foot- ply chain sustainability. But the main ated by a car can be verified after the
print outside the company is 19 times reason for maintaining this public face, purchase but only by using special-
greater, on average, than the footprint while only affording minimal support ized expertise or equipment. Hidden
inside the company. for large green investments behind the credence attributes are not part of the
The sheer complexity of modern sup- scenes, is that consumers are not willing products and therefore can’t be verified
ply chains can also make it difficult to to pay higher prices for green products by the consumer. Examples include
evaluate operational carbon footprints. and services. the use of child labor to make a prod-
Consider the humble banana. One Despite what they say when inter- uct or the amount of pollution it causes
would be hard-pressed to find a seem- viewed by journalists, NGOs, or in manufacturing.
ingly simpler product to assess for academics, the majority of buyers choose To inform consumers of a product’s

42  Inbound Logistics • June 2018

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green credentials, companies often economic structures formed by compa- manufacturing, transportation usage,
affix labels to the item that attest to its nies that use the global supply of natural and disposal of all products that sustain
environmental credence. But this is resources to meet worldwide consumer and improve peoples’ lives.
far from a perfect solution. Attributes demand and provide employment for However, supply chain manage-
such as the trustworthiness or level of millions of people. ment processes also are caught in the
clarity of a label influ- crossfire between the
ence its effectiveness. tensions of economic
The sheer number of performance, natu-
available labels can ral resource stresses,
confuse consumers. societally acceptable
More importantly, the DO THE NUMBERS practices, and regu-
labels themselves vary lation. The debate
wildly in their rigor ADD UP? FINDING regarding the accept-
and trustworthiness.
When consum- HIDDEN SUPPLY able tradeoffs between
human standards
ers find it difficult to
distinguish between
CHAIN COSTS of living and preva-
lence of jobs on the
a high-quality prod- one hand, and lev-
uct and an inferior els of environmental
one, they will not pay impact on the other,
extra when a seller has already begun,
argues that their prod- and it will affect the
uct is superior–they constraints and oppor-
will only pay for aver- tunities that companies
age products. This already face.
is called the Akerlof Meanwhile, if we
Effect. The result is are to set and meet
that sellers of supe- supply chain sustain-
rior products leave the ability goals that are
market and the quality Gain a better understanding of your both realistic and
deteriorates over time total landed costs with Yusen Logistics. effective, it is vital that
until the market col- We can help you identify hidden we move away from
lapses. It follows that if sloganeering and carry
costs, improve visibility and reduce
consumers can’t judge out a sober assess-
the degree to which a inefficiencies throughout your supply ment of what we are
product is sustainable, chain. So while you focus on your core trying to accomplish,
they will not pay for competencies, we’re managing all how much it will cost,
“responsible” products. aspects of your logistics needs and whether the cost justi-
Given these ambi- delivering measurable results. fies the effort and any
guities, it makes perfect resulting dislocations,
sense for companies www.yusen-logistics.com and how we will go
to do the minimum about it.  n
needed to burnish
their sustainability cre-
dentials, to cut costs ABOUT THE
where possible and do AUTHOR: Yossi
the minimum to avoid Sheffi is Elisha
NGO att acks. Look Gray II Professor
behind many of the tri- of Engineering
umphant statements in Systems at MIT,
press releases, and you and Director
will find projects that of the MIT
are much more modest than
J82729 theGeneral
Yusen promo-Ad_Inbound The design and
Logistics_4x7.5.indd 1 management of Center for 3:58
3/22/18 Transportation
PM and
tional material suggests. supply chains plays a dominant role Logistics. Details about his book,
Sustainability is intimately con- both in creating and in mitigating the Balancing Green, are online at:
nected with supply chains, the complex environmental impacts of sourcing, mitpress.mit.edu/balancing

June 2018 • Inbound Logistics  43

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Sustainability
Promise.

At Alliance Shippers Inc., we continuously work towards


providing cleaner and more energy-efficient transportation services
and solutions. Our 2018 Green Supply Chain Partner award
underscores our steadfast commitment to a greener environment. 2017 EXCELLENCE AWARD WINNER

To find out more: www.alliance.com

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ASI_ad0618.indd 1 6/13/18 9:50 AM
ALASKA AIR CARGO
alaskaair.com

Alaska Air Cargo


continues to find
innovative ways
to reduce the
environmental
impact of
services,
facilities, and equipment. Alaska

75 GREEN
Air Cargo’s environmental strategy
encompasses four main areas:
reduce emissions from planes and

SUPPLY
equipment, waste from flights and
other facilities, consumption of non-
sustainable resources, and energy use
in its buildings.

CHAIN
CURRENT GREEN INITIATIVES
❱❱ Reduce greenhouse gas emissions
❱❱ Reuse/recycling program
❱❱ Reduce energy usage

PARTNERS
NOTABLE ACHIEVEMENT
The airline’s 2020 goal is to reduce
mainline emissions 20 percent per
revenue ton mile over 2009 levels.
Inbound Logistics features its annual G75—a carefully curated list
of 75 companies that go above and beyond to ensure their global
supply chains are sustainable, and their operations are socially ARCBEST
and environmentally friendly. These companies have spent years
developing and implementing best practices to ensure the footprint arcb.com
they leave on the world is a positive one. In 1976, ArcBest LTL
carrier ABF Freight
began limiting its
trucks’ maximum
speeds to conserve fuel and reduce
emissions. The company’s new trucks
48FORTY SOLUTIONS have computerized engine shut-
offs to reduce idling and minimize
48forty.com fuel consumption. The company
48forty uses recycled pallets to offer follows an equipment maintenance/
customers sustainable pallet solutions. replacement program, so the average
The company repairs damaged pallets age of its linehaul tractors is rarely
and sends them back into the pool. more than two years.
48forty disassembles battered pallets and salvages boards that can be used in
CURRENT GREEN INITIATIVES
other pallets. It even chips the unusable bits and uses them as landscape mulch
❱❱ Reduce energy usage
or for biofuel.
❱❱ Reduce greenhouse gas emissions
CURRENT GREEN INITIATIVES NOTABLE ACHIEVEMENT ❱❱ Energy-efficient equipment
❱❱ Reuse/recycling program 48forty has 90 million pallets in ❱❱ Reuse/recycling program
❱❱ Sustainable packaging force. It uses and repairs each pallet
❱❱ Sustainably source materials about 10 times, ultimately shredding NOTABLE ACHIEVEMENT
❱❱ Waste minimization through them for mulch. ABF Freight has been a SmartWay
Lean manufacturing partner since 2006 and winner of the
2014 SmartWay Excellence Award.

June 2018 • Inbound Logistics  45

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AMERICAN AIRLINES AVERITT EXPRESS ALLIANCE SHIPPERS
CARGO
averittexpress.com alliance.com
aacargo.com
Aside from investing in newer and Alliance’s EverGreen refrigeration
Ever since employees led the Fuel cleaner technologies and equipment, units are equipped with two-way
Smart initiative in 2005, American Averitt helps shippers reduce their cellular tracking devices. They draw
Airlines has saved millions of gallons carbon footprint through strategies power from a battery source within
of fuel from being consumed by its that include returnable totes to the units, allowing them to always
aircraft and support vehicles, while replace corrugate waste and the use have a GPS location on assets as well
also cutting millions of pounds of of climate-controlled LTL units to cut as the ability to turn the refrigeration
CO2 emissions from being thrust into reliance on foam containers and dry unit on and off at any time. Solar
the atmosphere. ice. It works closely with companies panels allow Alliance to use the sun’s
to identify mutually beneficial supply energy to continuously charge the
CURRENT GREEN INITIATIVES chain strategies that are also green- batteries on its trailers.
❱❱ Reduce greenhouse gas emissions minded.
❱❱ Reuse/recycling program CURRENT GREEN INITIATIVES
CURRENT GREEN INITIATIVES ❱❱ Reduce greenhouse gas emissions
NOTABLE ACHIEVEMENT ❱❱ Reduce greenhouse gas emissions ❱❱ Alternative fuels/energy sources
American deploys more than 5,000 ❱❱ Reuse/recycling program ❱❱ Reuse/recycling program
reusable lightweight composite cargo ❱❱ Reduce energy usage ❱❱ Reduce energy usage
containers, reducing weight and ❱❱ Sustainable packaging ❱❱ Solar panels
saving more than one million gallons ❱❱ Energy-efficient lighting ❱❱ Energy-efficient lighting
of fuel every year.
NOTABLE ACHIEVEMENT NOTABLE ACHIEVEMENT
Since 2004, Averitt has lowered Alliance’s refrigerated trailers,
CANADIAN NATIONAL
CO2 emissions by about 27 percent, moved via the nation’s rail system,
(CN)
reduced nitrogen oxide emissions reduce CO2 output by 67 percent
cn.ca by 50 percent, and cut particulate versus moving the same goods via
emissions by 52 percent. highway trucks.
Canadian National’s (CN)
environmental strategy focuses on
emissions and energy efficiency,
waste management, biodiversity,
and land management. With
Precision Railroading, fuel-efficient
locomotives, and leading-edge
technology, CN achieved a fuel and
carbon efficiency improvement of
37 percent over the past 20 years.

CURRENT GREEN INITIATIVES APL LOGISTICS


❱❱ Reduce greenhouse gas emissions
❱❱ Reduce energy usage apllogistics.com
❱❱ Optimize yard performance APL Logistics continues to create programs to capture sustainability data and make
it available to customers. It engages with its community through new partnerships,
NOTABLE ACHIEVEMENT
and develops new products to reduce customers’ greenhouse gas consumption.
CN’s fleet uses 15-percent less fuel
per gross ton mile overall than the CURRENT GREEN INITIATIVES NOTABLE ACHIEVEMENT
industry average. ❱❱ Reduce greenhouse gas emissions
Over six months, APL reduced
❱❱ Alternative fuels/energy sources
emissions for a large retailer
❱❱ Reuse/recycling program
equivalent to driving 1.8 million
❱❱ Reduce energy usage
fewer miles or taking 150 cars off the
❱❱ Energy-efficient lighting
road annually.
❱❱ Collaborate with stakeholders to
reduce and recycle plastic bags in
retail businesses

46  Inbound Logistics • June 2018

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AAA COOPER TRANSPORTATION CELADON TRUCKING
aaacooper.com celadontrucking.com
AAA Cooper installs enhanced/full aerodynamic fairing packages; converts oil to A long-time member of SmartWay,
lighter-weight synthetic for better fuel economy; installs tire pressure systems Celadon keeps a current tractor fleet,
designed for drive tire position to enhance mpg; and installs next-generation and relies on the latest technology
skirting on van trailers with better airflow direction. The SmartWay partner to help reduce emissions and fuel
has new tractor placement with automated manual transmission with specific consumption. The trucker outfits
drivetrain modifications designed to increase mpg and reduce emissions. its tractors with speed limiters and
equips trailers with skirting. Celadon
CURRENT GREEN INITIATIVES regularly maintains its tractors to run
❱❱ Reduce greenhouse gas emissions at optimum efficiency.
❱❱ Reuse/recycling program
❱❱ Reduce energy usage CURRENT GREEN INITIATIVES
❱❱ Sustainably source materials ❱❱ Alternative fuels/energy sources
❱❱ Energy-efficient lighting ❱❱ Reuse/recycling program
❱❱ Use wastewater
NOTABLE ACHIEVEMENT ❱❱ Reduce energy usage
Continual reduced emissions ❱❱ Sustainable packaging
since 2013. ❱❱ Solar panels
❱❱ Energy-efficient lighting

NOTABLE ACHIEVEMENT
Celadon earned the 2017 SmartWay
BNSF Freight Carrier and Multimodal
Excellence Award.

bnsf.com
CRANE WORLDWIDE
BNSF created a Carbon Estimator
LOGISTICS
Tool for shippers to track the
carbon footprint of their rail craneww.com
CASESTACK
shipments. It also implemented
The 3PL’s Crane Cares initiative
locomotive management systems casestack.com
is composed of three specific
to reduce idling, fuel consumption,
branches through which it CaseStack’s retail consolidation
and emissions.
demonstrates commitment to the programs help conserve natural
CURRENT GREEN INITIATIVES environment (Green Worldwide), resources by reducing dock
❱❱ Reduce greenhouse gas emissions the communities in which we live congestion, improving warehouse
❱❱ Reduce energy usage and work (Give Worldwide), and efficiencies, and decreasing
❱❱ Energy-efficient lighting the health, wellness, and safety of the number of trucks on the
❱❱ Solar panels employees and their families (Live highway. The resulting supply
❱❱ Alternative fuel/energy sources Well Worldwide). chain consumes less energy and
produces lower amounts of carbon
NOTABLE ACHIEVEMENT CURRENT GREEN INITIATIVES emissions. CaseStack has been a
❱❱ Reuse/recycling program SmartWay partner for the past eight
Fuel efficiency has increased ❱❱ Use wastewater consecutive years.
10 percent since 2005. ❱❱ Reduce energy usage
❱❱ Energy-efficient lighting CURRENT GREEN INITIATIVES
❱❱ Reduce greenhouse gas emissions
NOTABLE ACHIEVEMENT ❱❱ Reduce energy usage
Crane Worldwide has been ❱❱ Energy-efficient lighting
recognized as a SmartWay Transport
Partner since opening its doors NOTABLE ACHIEVEMENT
in 2008. CaseStack’s consolidated truckloads
reduce carbon emissions by 58
million pounds of CO2 each year.

June 2018 • Inbound Logistics  47

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CSX TRANSPORTATION DHL SUPPLY CHAIN

csx.com dhl.com

CSX Transportation has a three-pronged approach to sustainability: reduce the DHL has set four interim
environmental footprint of operations, engage openly on sustainability issues, sustainability targets to achieve by
and support sustainability developments. In 2016, the company improved fuel 2025. Global target: increase carbon
efficiency by shutting down unused locomotive power whenever possible. The efficiency by 50 percent compared to
railroad is capable of moving one ton of freight 474 miles on a single gallon of fuel. 2007. Local target: deliver 70 percent
of its own first- and last-mile
CURRENT GREEN INITIATIVES NOTABLE ACHIEVEMENT services with clean pickup/delivery
❱❱ Reduce greenhouse gas emissions solutions. Economic target: more
Since 1980, CSX has improved fuel
❱❱ Alternative fuels/energy sources than 50 percent of sales incorporate
efficiency by more than 100 percent.
❱❱ Reuse/recycling program green solutions. People target: train
❱❱ Reduce energy usage 80 percent of employees as certified
GoGreen specialists.
CARGO TRANSPORTERS
CROWLEY CURRENT GREEN INITIATIVES
cgor.com ❱❱ Reduce greenhouse gas emissions
❱❱ Alternative fuels/energy sources
crowley.com As a SmartWay Partner Excellence
❱❱ Reuse/recycling program
Award winner in 2016, Cargo
Crowley’s new terminal ❱❱ Reduce energy usage
Transporters continues to spec its
management systems reduce truck ❱❱ Sustainable packaging
on-highway vehicles with the most
idling and turn times by 25 percent, ❱❱ Sustainably source materials
current aerodynamic equipment,
which reduces air impacts on the ❱❱ Solar panels
maximizing fuel efficiency. The
mainland and Puerto Rico. Two new ❱❱ Energy-efficient lighting
company invests in on-site
commitment class containerships ❱❱ Customer Go Green solutions
electrification for vehicles so hotel
will provide Puerto Rico service with
loads can be powered by shore power
38-percent per-container reduction NOTABLE ACHIEVEMENT
connections. It has invested in load-
of CO2 emissions, and near-total
sensing devices in trailers to avoid A carbon efficiency target to improve
SOx reduction. Crowley’s tank vessel
extra on-highway miles resulting by 30 percent over 2007 baseline
fleet carried 472 million barrels, and
from trailer checks. by 2020 was achieved in 2016, four
made 5,196 product transfers with
years earlier than planned. In 2017,
zero spills.
CURRENT GREEN INITIATIVES it improved by two index points to
❱❱ Reduce greenhouse gas emissions 32 percent.
CURRENT GREEN INITIATIVES
❱❱ Alternative fuels/energy sources
❱❱ Reduce greenhouse gas emissions
❱❱ Reuse/recycling program
❱❱ Alternative fuels/energy sources
❱❱ Reduce energy usage
❱❱ Reuse/recycling program
❱❱ Use wastewater
❱❱ Use wastewater
❱❱ Energy-efficient lighting
❱❱ Reduce energy usage
❱❱ Sustainable packaging
NOTABLE ACHIEVEMENT
❱❱ Sustainably source materials
❱❱ Energy-efficient lighting Installed additional 26 shore power
❱❱ Limit/eliminate plastic bottle parking spots for trucks, bringing
and other disposable beverage total to 50.
container usage

NOTABLE ACHIEVEMENT
Using the Clean Cargo Working
Group platform, Crowley launched
its first third-party verification
of emissions data for customer
assurance, receiving 100-percent
verification of its international liner
fleet’s CO2 and SOx emissions.

48  Inbound Logistics • June 2018

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CT LOGISTICS DUPRÉ LOGISTICS

ctlogistics.com duprelogistics.com

CT has invested in software developments specifically targeting the ability to Dupré’s green initiatives address
provide shippers the tools to make greener supply chain choices. Its Lion™ fuel efficiency, safety, and
software helps shippers drive energy efficiency with supply chain routing environmental performance.
analysis technologies. This software was built to maximize lane effectiveness Dupré’s fleet contributes to green
and facilitate more optimal/greener transportation mode selections. CT’s results with a top speed of 62 mph,
FreitWeb™ software aggregates small shipments to reduce costs and fuel. and the use of fuel-efficient tires.
This software enables shippers to choose environmentally conscious routings, Utilizing Omnitracs and Green Road
mode selections, and carriers with the shortest transit times to reduce fuel technologies monitors safety and
consumption and lower CO2 emissions. fuel economy.

CURRENT GREEN INITIATIVES CURRENT GREEN INITIATIVES


❱❱ Reuse/recycling program ENGLAND LOGISTICS ❱❱ Reuse/recycling program
❱❱ Use wastewater ❱❱ Reduce energy usage
❱❱ Energy-efficient lighting englandlogistics.com ❱❱ Energy-efficient lighting
❱❱ At least 40 percent of its six- The England Logistics team
acre corporate campus remains safeguards food and beverage NOTABLE ACHIEVEMENT
undeveloped and wooded shipments by utilizing a network Dupré strives to maintain the
❱❱ Intelligent thermostats are stocked with temperature-controlled environment within its operations.
utilized for all areas facilities and equipment, resulting
in fewer transportation risks. Using
NOTABLE ACHIEVEMENT optimization software also allows
CT saved more than 200,000 kWh the company to build an economic
strategy for each shipment, resulting
ECHO GLOBAL LOGISTICS
of electricity over the past year by
replacing all facility lighting with in reduced miles. These practices echo.com
LED lamps/bulbs. ensure each shipment is transported
By using technology, industry
in the most resourceful way possible,
expertise, its extensive carrier
with a minimized impact on
network, and multimodal
the environment.
transport options, Echo provides
CURRENT GREEN INITIATIVES clients with access to greener
CROWN EQUIPMENT ❱❱ Reduce energy usage transportation solutions.
❱❱ Sustainable packaging
CURRENT GREEN INITIATIVES
crown.com
NOTABLE ACHIEVEMENT ❱❱ Reduce greenhouse gas emissions
From product design to packaging, ❱❱ Reuse/recycling program
Crown reduces its environmental As a SmartWay partner, England ❱❱ Reduce energy usage
footprint through increased energy Logistics is committed to reducing ❱❱ Energy-efficient lighting
efficiency, lean business processes, carbon emissions in the environment.
reduced resource consumption, and NOTABLE ACHIEVEMENT
elimination of waste. Crown delivers high-quality, energy-efficient lift trucks that
Since 2010, Echo has partnered
use fewer parts, require less maintenance, and produce less waste.
with the SmartWay program to
measure, benchmark, and improve
CURRENT GREEN INITIATIVES NOTABLE ACHIEVEMENT
its environmental footprint.
❱❱ Reduce greenhouse gas emissions
Crown has achieved five zero-
❱❱ Alternative fuels/energy sources
landfill status facilities, three ISO
❱❱ Reuse/recycling program
14001-certified facilities, and is the
❱❱ Use wastewater
first company to have three facilities
❱❱ Reduce energy usage
receive the Ohio EPA’s Encouraging
❱❱ Sustainable packaging
Environmental Excellence
❱❱ Sustainably source materials
Gold Award.
❱❱ Energy-efficient lighting

June 2018 • Inbound Logistics  49

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DSC LOGISTICS FEDEX
fedex.com
dsclogistics.com
FedEx sustainability efforts include:
DSC’s sustainability programs include warehousing and transportation emissions managing its carbon footprint,
reduction. Its goals include reducing utility metrics across all locations by an establishing environmental policies
average of 8 percent year over year. The company’s network redesign features and procedures for employees to
better placed distribution centers and optimized transportation routes, resulting in follow, using natural resources to
a more sustainable network with a reduced carbon footprint. DSC is certified as a minimize waste generation, and
SmartWay logistics provider and carrier partner. establishing an EarthSmart program.

CURRENT GREEN INITIATIVES driven across all modes by up to


CURRENT GREEN INITIATIVES
❱❱ Reduce greenhouse gas emissions 700,000 miles monthly, and reduced
❱❱ Reduce greenhouse gas emissions
❱❱ Alternative fuels/energy sources carbon emissions by 12 percent
❱❱ Alternative fuels/energy sources
❱❱ Reuse/recycling program in 2017.
❱❱ Sustainable packaging
❱❱ Reduce energy usage ❱❱ Reuse/recycling program
❱❱ Sustainable packaging ❱❱ Solar panels
❱❱ Sustainably source materials
❱❱ Solar panels HUB GROUP NOTABLE ACHIEVEMENT
❱❱ Energy-efficient lighting
hubgroup.com By 2012, FedEx had increased its
NOTABLE ACHIEVEMENT global electric vehicle and hybrid
Hub Group’s LEED Gold-certified
electric vehicle fleet to 482 vehicles,
DSC’s transportation consolidation corporate headquarters features
logging more than 14.8 million miles
efforts for customers reduce mileage natural habitat landscaping, energy-
and saving 480,000 gallons of fuel.
efficient lighting, electric vehicle
charging stations, and rainwater
harvesting. A continuing initiative
GEORGIA PORTS JAXPORT
aims at reducing idle hours.
AUTHORITY jaxport.com
CURRENT GREEN INITIATIVES
gaports.com From designing cargo terminals
❱❱ Reduce greenhouse gas emissions
and using innovative technologies,
Moving to electric rubber-tired ❱❱ Alternative fuels/energy sources
to purchasing new equipment,
gantry cranes for container handling ❱❱ Reuse/recycling program
JAXPORT is committed to
reduces GPA’s carbon footprint by ❱❱ Reduce energy usage
environmental protection. Among
96 percent per crane. Savannah’s ❱❱ Energy-efficient lighting
the port’s efforts to preserve the
electric ship-to-shore cranes capture ❱❱ Rainwater harvesting
region’s natural environment are
enough energy lowering boxes to ❱❱ Satellite tracking for
championing the use of cleaner,
power themselves 18 minutes of each improved routing
alternative fuels, reducing engine
hour. GPA uses computer controls ❱❱ Day cab/lightweight
emissions from port equipment, and
and efficient fixtures that, adjusting sleeper investments
recycling oil used in cranes.
for the season, turn on lights as the ❱❱ New electric tractor purchases
sun sets. The project aims to achieve and platooning CURRENT GREEN INITIATIVES
$4.9 million in energy savings over
❱❱ Reduce greenhouse gas emissions
10 years. NOTABLE ACHIEVEMENT
❱❱ Alternative fuels/energy sources
Hub Group continues to educate, ❱❱ Reuse/recycling program
CURRENT GREEN INITIATIVES
develop, and implement intermodal ❱❱ Reduce energy usage
❱❱ Reduce greenhouse gas emissions
conversions in its customers’ supply
❱❱ Alternative fuels/energy sources
chains, resulting in savings of NOTABLE ACHIEVEMENT
❱❱ Reuse/recycling program
3 billion plus pounds of CO2 in 2017. JAXPORT helped construct an
❱❱ Reduce energy usage
❱❱ Energy-efficient lighting outdoor classroom at Oceanway
Middle School that features hundreds
NOTABLE ACHIEVEMENT of native plants, a freshwater pond,
and an elevated deck. Oceanway uses
Electrification efforts avoid the use
the facility to teach students science
of more than 5.8 million gallons of
and ecology.
diesel each year.

50  Inbound Logistics • June 2018

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KENCO KNIGHT-SWIFT
TRANSPORTATION
kencogroup.com knighttrans.com
Kenco commits to the environment by employing a full-time leader of sustainability Knight-Swift’s commitment to
to drive initiatives. The company aims to assist its customers in achieving offering sustainable solutions
environmental responsibility. Initiatives include: using hybrid automobiles in encompasses multiple efforts,
the company fleet, reducing paper and paper waste with technology, and using including: fuel-efficient tractors,
auxiliary power units to reduce idle time and fuel consumption. fuel conservation initiatives, lower
tractor emissions, energy-saving
CURRENT GREEN INITIATIVES solar farms, alternative-fuel R&D,
❱❱ Reuse/recycling program and aerodynamic trailer technology.
❱❱ Alternative fuels/energy sources LUFTHANSA CARGO
❱❱ Energy-efficient lighting lufthansa-cargo.com CURRENT GREEN INITIATIVES
❱❱ Reduce greenhouse gas emissions
NOTABLE ACHIEVEMENT Lufthansa Cargo’s environmental
❱❱ Alternative fuels/energy sources
strategy for continuous
Governing trucks and training drivers
improvement focuses on green
on progressive shifting techniques to NOTABLE ACHIEVEMENT
flying, green ground, environmental
promote fuel conservation. Knight-Swift’s more than 4,200
management system, innovation,
partnerships, data transparency, tractors operate with U.S. EPA2010 or
public relations, and green solutions. newer engines. Technology related to
Lufthansa Cargo operates five new these engines has effectively reduced
J.B. HUNT Boeing 777F—the most efficient the two primary emissions of the
freighter in its class—and invested in diesel engine—NOx and particulate
jbhunt.com
two more, which will be delivered matter—by 99 percent.
For the past 10 years, J.B. Hunt in 2019. Continuous investment
has been a SmartWay partner and in energy-efficient technology
received a SmartWay Excellence and buildings is as important as
Award each year. The company KANE IS ABLE
ongoing investment in new, lighter
engineers and designs customer loading equipment.
kaneisable.com
solutions with an emphasis on
energy efficiency. Other green CURRENT GREEN INITIATIVES KANE reduces
initiatives include LTL consolidation ❱❱ Reduce greenhouse gas emissions emissions,
and network optimization, ❱❱ Alternative fuels/energy sources pollution, and
mpg tracking and improvement ❱❱ Reuse/recycling program congestion with
maintenance, lightweight and ❱❱ Use wastewater smarter trucks
aerodynamic equipment, driver ❱❱ Reduce energy usage and delivery
training, and alternative fuel options ❱❱ Sustainably source materials methods. A
such as natural gas and biodiesel. ❱❱ Energy-efficient lighting Collaborative
Distribution program reduces
CURRENT GREEN INITIATIVES NOTABLE ACHIEVEMENT emissions by pooling inventory
❱❱ Reduce greenhouse gas emissions and shipments.
Lufthansa Cargo will replace all
❱❱ Alternative fuels/energy sources
standard containers with lighter
❱❱ Reuse/recycling program CURRENT GREEN INITIATIVES
variants by 2020. It has achieved
❱❱ Reduce energy usage ❱❱ Reduce greenhouse gas emissions
70 percent of this goal, resulting in
❱❱ Solar panels ❱❱ Reduce energy usage
CO2 savings of more than 6,800 tons
❱❱ Energy-efficient lighting ❱❱ Reuse/recycling program
per year.
❱❱ Energy-efficient lighting
NOTABLE ACHIEVEMENT ❱❱ Sustainable packaging
In 2017, J.B. Hunt reduced carbon
NOTABLE ACHIEVEMENT
emissions equivalent to removing
more than 700,000 passenger Since 2012, KANE has recycled 61.6
vehicles off the road for one year. tons of paper, 196.8 tons of plastic
and stretch wrap, 12,822 tons of
cardboard, 101.2 tons of cans/bottles,
14 tons of steel, and 149 tons of wood.

June 2018 • Inbound Logistics  51

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LYNDEN
lynden.com
Lynden is the first Alaska-based NOTABLE ACHIEVEMENT
transportation company to be Facility upgrades have saved
recognized by SmartWay and the first 3,535 MWh of electricity and 4.5
trucking company to earn the Green million BTUs of heating fuel/natural
Star Award for Alaskan businesses. gas annually. This equals the average
Despite operating in steep terrain energy used in 335 homes or 403
and extreme conditions, Lynden’s passenger vehicles each year.
❱❱ Energy-efficient lighting.
fleets consistently score among the
❱❱ Super-efficient reefer units,
most efficient in terms of CO2 per ton
mile as measured by the SmartWay
shore-side plug-in technology, MAERSK LINE
and electric forklifts save fuel and
Transport Partnership.
reduce emissions maerskline.com
CURRENT GREEN INITIATIVES ❱❱ LED lighting has improved safety
Maersk Line aims to reduce its
❱❱ Reduce greenhouse gas emissions and reduced energy use, and its
ocean shipping CO2 emissions by
❱❱ Alternative fuels/energy sources stormwater pollution prevention
60 percent per container transported
❱❱ Reuse/recycling program exceeds local requirements
between 2016 and 2020. It has
❱❱ Reduce energy usage already reduced CO2 emissions per
❱❱ Sustainable packaging container transported by 42 percent,
❱❱ Sustainably source materials MATSON and is investing more than $1 billion
matson.com in upgrading large container vessels
with new technologies to reduce
In 1993, Matson’s Zero Solid Waste fuel consumption, CO2, and sulphur
NORFOLK SOUTHERN Discharge policy, developed dioxide emissions by up to 20 percent
with Ocean Conservancy, set the per container transported. Technical
nscorp.com industry standard for environmental upgrades include advanced propeller
NS adopted a carbon-mitigation protection at sea. Its Greentainer systems, engine upgrades, and
strategy, Trees and Trains, that turns program uses a revenue slot on every hydrodynamic hull coatings.
its carbon footprint into a corporate sailing to collect all solid waste for
opportunity. Additionally, through transfer to recycling and waste-to- CURRENT GREEN INITIATIVES
its progressive locomotive rebuilding energy facilities on shore. ❱❱ Reduce greenhouse gas emissions
program, NS has developed a ❱❱ Alternative fuels/energy sources
new class of low-emission Eco CURRENT GREEN INITIATIVES ❱❱ Reduce energy usage
locomotives for railyard service now ❱❱ Reduce greenhouse gas emissions
used in Chicago, Pittsburgh, Atlanta, ❱❱ Alternative fuels/energy sources NOTABLE ACHIEVEMENT
and Macon, Georgia. ❱❱ Reuse/recycling program
❱❱ Reduce energy usage Maersk Line is taking delivery of
❱❱ Energy-efficient lighting the Triple-E, a modern vessel that
CURRENT GREEN INITIATIVES
is setting new standards in fuel
❱❱ Reduce greenhouse gas emissions
NOTABLE ACHIEVEMENT efficiency. Its Triple-E vessels reduce
❱❱ Alternative fuels/energy sources
both fuel consumption and harmful
❱❱ Reuse/recycling program Matson recently installed engine air emissions by up to 35 percent
❱❱ Reduce energy usage exhaust cleaning systems on its per container transported compared
Alaska fleet and will outfit its two to other vessels sailing on the same
NOTABLE ACHIEVEMENT new Aloha Class vessels, currently shipping route.
In its largest project, the company under construction, with dual-fuel,
invested $5.6 million over five LNG-capable engines.
years to reforest 10,000 acres in
the Mississippi Delta. Between 2016
and 2030, the trees will generate an
estimated 1.12 million carbon credits
that NS can use to offset its carbon
emissions or sell to others wishing to
offset their environmental impacts.

52  Inbound Logistics • June 2018

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NFI NORTHWEST SEAPORT
ALLIANCE
nfiindustries.com nwseaportalliance.com
NFI develops and applies best practices to The partnership between the ports
improve environmental impact through of Tacoma and Seattle reduces port-
implementing technology and alternative related emissions through clean
energy across its operations, such as truck programs, shore power at
electric vehicles, solar power, and natural terminals, retrofitted cargo-handling
gas fleets. Currently, NFI runs electric equipment, and cleaner-burning
yard horse and lithium battery forklift ship fuels.
demonstration units, and is working
to develop class 8 battery electric and CURRENT GREEN INITIATIVES
hydrogen fuel cell vehicles. As an EPA SmartWay partner, NFI also uses AirTabs, ❱❱ Reduce greenhouse gas emissions
trailer skirts, battery-powered APUs, and speed limiters to improve fuel efficiency. ❱❱ Alternative fuels/energy sources
The EPA has awarded NFI the SmartWay Excellence Award three times. ❱❱ Reuse/recycling program
❱❱ Reduce energy usage
CURRENT GREEN INITIATIVES NOTABLE ACHIEVEMENT ❱❱ Energy-efficient lighting
❱❱ Reduce greenhouse gas emissions
With 100-percent low-emission
❱❱ Alternative fuels/energy sources NOTABLE ACHIEVEMENT
tractor fleets, NFI produces the least
❱❱ Reuse/recycling program
emissions possible and increased The alliance achieved a 95-percent
❱❱ Reduce energy usage
miles per gallon by at least 2 percent reduction in stormwater zinc and
❱❱ Sustainable packaging
each year for the past eight years. copper at terminal operations; and
❱❱ Solar panels
reduced diesel emissions 47 percent
❱❱ Energy-efficient lighting
from trucks, 51 percent from trains,
and 88 percent from ships.

PECO PALLET OLD DOMINION


FREIGHT LINE
pecopallet.com
odfl.com
PECO’s core business is built on a
Old Dominion Freight Line continues to
foundation of reusing and recycling
invest in its newest 2018 fuel-efficient
pallets to reduce waste. PECO cycles
fleet. It is retrofitting all 230 service
pallets an average of four times per
centers with LED lights. Other green
year and carefully maintains them to
initiatives include fully equipped technology, such as onboard computers that track
prolong their useful life.
mpg and tire inflation systems that increase fuel mileage and reduce emissions. Its
service center shops continue to convert to sole recycling water for drive-through
CURRENT GREEN INITIATIVES
truck washes, where more than 1,000 gallons of water are consistently on reserve.
❱❱ Reduce greenhouse gas emissions
❱❱ Reuse/recycling program
CURRENT GREEN INITIATIVES NOTABLE ACHIEVEMENT
❱❱ Reduce energy usage
❱❱ Reduce greenhouse gas emissions
❱❱ Sustainable packaging Old Dominion’s fleet is 100-percent
❱❱ Reuse/recycling program
❱❱ Sustainably source materials low rolling resistance, increasing
❱❱ Use wastewater
fuel efficiency and reducing
❱❱ Reduce energy usage
NOTABLE ACHIEVEMENT emissions. 100 percent of its trailers
❱❱ Solar panels
(roughly 23,000) are equipped with
PECO block pallets allow true four- ❱❱ Energy-efficient lighting
aerodynamic skirts to lower wind
way entry for more efficient stacking ❱❱ Moved from propane-powered
resistance and conserve fuel.
and transportation, which can to battery-powered maintenance
significantly reduce fuel costs and PM carts
reduce shippers’ carbon footprint.

June 2018 • Inbound Logistics  53

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ORBIS CORPORATION PENSKE LOGISTICS PERFORMANCE TEAM
orbiscorporation.com penskelogistics.com performanceteam.net

ORBIS analyzes a customer’s In addition to helping customers A SmartWay partner since 2008,
systems, designs a solution, and go green, Penske benchmarks Performance Team continues to
executes a reusable packaging sustainability efforts against its undertake green initiatives. PT’s
program for cost savings and competitors/customers, performs entire fleet has SmartWay-approved
sustainability. Using lifecycle an annual GHG emission inventory, tires and uses trailer skirts and under
assessments to compare reusable discloses its GHG emissions trays to improve fuel efficiency. PT
and single-use packaging, information to the Carbon Disclosure also utilizes on-demand packaging
ORBIS helps shippers reduce Project, and conducts energy audits/ and works with corridor recycling
environmental impact. analysis to identify opportunities to help recycle and reduce obsolete
to save money and reduce carbon hardware in its facilities.
CURRENT GREEN INITIATIVES footprint. The company upgraded to
❱❱ Reduce greenhouse gas emissions more efficient fluorescent and LED CURRENT GREEN INITIATIVES
❱❱ Reuse/recycling program lighting, and participates in the EPA’s ❱❱ Reduce greenhouse gas emissions
❱❱ Reduce energy usage Green Power Partnership to purchase ❱❱ Alternative fuels/energy sources
❱❱ Sustainable packaging renewable energy credits. ❱❱ Reuse/recycling program
❱❱ Sustainably source materials ❱❱ Use wastewater
CURRENT GREEN INITIATIVES ❱❱ Reduce energy usage
NOTABLE ACHIEVEMENT ❱❱ Reduce greenhouse gas emissions ❱❱ Sustainable packaging
❱❱ Alternative fuels/energy sources ❱❱ Sustainably source materials
ORBIS helps shippers leverage
❱❱ Reuse/recycling program ❱❱ Solar panels
lifecycle assessment
❱❱ Reduce energy usage ❱❱ Energy-efficient lighting
data to make
❱❱ Solar panels
sustainable supply
❱❱ Energy-efficient lighting NOTABLE ACHIEVEMENT
chain changes.
In the past seven years, Performance
NOTABLE ACHIEVEMENT
Team transloaded more than 340,000
The purchase of renewable energy containers. Using a 3:2 compression
credits resulted in avoiding more standard, this translates into
PORT OF LONG BEACH than 10,542 MT of CO2. Penske has approximately 230,000 outbound
reported a year-over-year reduction trailers and a carbon reduction
polb.com
in metric tons of CO2/mile for its footprint of 30 percent.
Guided by its award-winning Green fleet since 2012.
Port Policy, the port is reducing
harmful air emissions from port-
related operations, improving
water quality in the harbor,
protecting marine wildlife, and
PORT OF LOS ANGELES
implementing environmentally
portoflosangeles.org
sustainable practices.
Utilizing the tenets of sustainability, the
CURRENT GREEN INITIATIVES port works toward the best interests
❱❱ Reduce greenhouse gas emissions of the community, environment, and
❱❱ Alternative fuels/energy sources economy. It practices these principles through integral considerations during
❱❱ Reuse/recycling program planning, design, and construction, and throughout operations and maintenance of
❱❱ Use wastewater port facilities and structures.
❱❱ Reduce energy usage
❱❱ Sustainably source materials CURRENT GREEN INITIATIVES NOTABLE ACHIEVEMENT
❱❱ Reduce greenhouse gas emissions
To advance zero-emission
NOTABLE ACHIEVEMENT ❱❱ Alternative fuels/energy sources
technologies throughout the port
❱❱ Reuse/recycling program
The Port of Long Beach notched complex, the Port of Los Angeles
❱❱ Use wastewater
clean air records in its latest study partners with terminal operators
❱❱ Reduce energy usage
of air pollution emissions, including to apply for state and federal
❱❱ Sustainably source materials
an 88-percent reduction in diesel funding to demonstrate and deploy
particulate matter. cleaner technologies.

54  Inbound Logistics • June 2018

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PORT OF SAN DIEGO PITT OHIO PORT OF BALTIMORE
portofsandiego.org pittohio.com mpa.maryland.gov
All heavy-duty trucks accessing the PITT OHIO looks to see how it can The Maryland Port Administration
Port of San Diego maritime terminals do business differently by partnering (MPA) is committed to meeting
to pick up or drop off cargo must with customers, vendors, and obligations for improved air
comply with clean air requirements community members. The company and water quality, reduction of
under the State of California’s has uncovered innovations in impacts to the Patapsco River and
Drayage Truck Regulation. The port’s renewable energy over the past two the Chesapeake Bay, and sound
Vessel Speed Reduction Program years, and has installed eight wind environmental management for
is a voluntary strategy to reduce turbines and 700 solar panels in its dredging projects. MPA is working
air pollutants and greenhouse gas new Cleveland facility. Its long-term to reduce diesel emissions, manage
emissions from ships by reducing goal is to generate enough power to stormwater responsibly, become
speeds to 12 knots in the vicinity of charge electric trucks. more energy efficient, and offset
San Diego Bay. environmental impacts from port
CURRENT GREEN INITIATIVES operations with green projects that
CURRENT GREEN INITIATIVES ❱❱ Reduce greenhouse gas emissions meet stewardship goals.
❱❱ Reduce greenhouse gas emissions ❱❱ Alternative fuels/energy sources
❱❱ Alternative fuels/energy sources ❱❱ Reuse/recycling program CURRENT GREEN INITIATIVES
❱❱ Reuse/recycling program ❱❱ Reduce energy usage ❱❱ Reduce greenhouse gas emissions
❱❱ Use wastewater ❱❱ Solar panels ❱❱ Alternative fuels/energy sources
❱❱ Reduce energy usage ❱❱ Energy-efficient lighting ❱❱ Reuse/recycling program
❱❱ Sustainable packaging ❱❱ Wind power ❱❱ Use wastewater
❱❱ Sustainably source materials ❱❱ Reduce energy usage
❱❱ Solar panels NOTABLE ACHIEVEMENT ❱❱ Sustainably source materials
❱❱ Energy-efficient lighting In 2017, PITT OHIO reduced overall
electricity kWh by 6 percent, and NOTABLE ACHIEVEMENT
NOTABLE ACHIEVEMENT
specifically at its Pittsburgh facility, The port has removed all
The Port of San Diego was among the reduced consumption by 25 percent underground storage tanks,
first U.S. ports to adopt a Climate through implementing its DC retrofitted sand filters, wetlands, wet
Action Plan. powered, renewable energy micro- swales, and bioretention structures
grid. at several terminals, installed several
engineered stormwater quality
treatment technologies featuring
pretreatment and filtering systems,
and created hundreds of acres of
wetlands and wildlife habitat.

PORT OF PORTLAND

portofportland.com
The Port of Portland has reduced diesel
particulate matter by 76 percent from its 2000 level for operations it controls. It
recently installed an additional 42 electric pre-conditioned air units to keep aircraft
cool on hot days at Portland International Airport gates. Since 2005, the port has
fueled container-handling equipment with ultra-low sulfur diesel and improved
exhaust systems for cleaner emissions.

CURRENT GREEN INITIATIVES NOTABLE ACHIEVEMENT


❱❱ Reduce greenhouse gas emissions
Efforts to minimize idling vehicles
❱❱ Alternative fuels/energy sources
and traffic at Portland International
❱❱ Reuse/recycling program
Airport and other properties have
❱❱ Use wastewater
dropped carbon monoxide output by
❱❱ Reduce energy usage
more than two tons annually.
❱❱ Sustainably source materials

June 2018 • Inbound Logistics  55

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RR DONNELLEY
PORT OF OAKLAND RINCHEM
rrdonnelley.com rinchem.com
portofoakland.com
RRD continuously strives to improve Rinchem is actively working to
The Port of Oakland studies all the
global environmental health and replace lighting with energy-
impacts of a thriving economy
safety performance by using practices efficient resources at all warehouse
to mitigate unintended negative
that protect employees and the and administrative sites. A special
impacts, including pollution (air,
environment, including reducing focus on energy consumption
water, noise) and infrastructure
emissions, developing recycling and at administrative sites includes
wear and tear. As a result, the port
pollution prevention opportunities, sustainable office supplies and
is involved in dozens of innovative
and using paper, energy, and other overall energy consumption best
programs, thanks to an array
resources more efficiently. practices. Rinchem’s transportation
of creative, problem-centered
partnerships and collaborations that team adds only energy-efficient
CURRENT GREEN INITIATIVES solutions for new assets, and requires
work to identify, quantify, and meet ❱❱ Reduce greenhouse gas emissions
environmental challenges. its transportation partners to have
❱❱ Reuse/recycling program a green initiative in place before
❱❱ Use wastewater working with them.
CURRENT GREEN INITIATIVES
❱❱ Reduce energy usage
❱❱ Reduce greenhouse gas emissions
❱❱ Sustainable packaging CURRENT GREEN INITIATIVES
❱❱ Alternative fuels/energy sources
❱❱ Energy-efficient lighting ❱❱ Reduce greenhouse gas emissions
❱❱ Reuse/recycling program
❱❱ Use wastewater ❱❱ Reuse/recycling program
NOTABLE ACHIEVEMENT ❱❱ Use wastewater
❱❱ Reduce energy usage
❱❱ Sustainably source materials RRD is pursuing energy-efficiency ❱❱ Reduce energy usage
programs involving several different ❱❱ Sustainable packaging
NOTABLE ACHIEVEMENT technologies that it is installing in ❱❱ Energy-efficient lighting
plants worldwide. The company
The Port of Oakland’s energy- NOTABLE ACHIEVEMENT
reuses, repairs, repurposes, and
efficiency rebate program provides
recycles its process materials and Energy-efficient lighting installed
tenants the port serves as a municipal
byproducts to limit what enters the at Rinchem’s first site saved 118 tons
utility the opportunity to replace
waste stream. RRD works with clients of CO2 generated by fossil fuels.
their energy-inefficient electric
and suppliers to make packaging The energy-efficient lighting saves
equipment and fixtures. The port’s
environmentally responsible, and 248,230 kWh per year per site.
energy rebate program encourages
collaborates to help minimize their
the implementation of energy-saving
combined effects on the environment.
initiatives in the facility.

PUROLATOR
purolator.com CURRENT GREEN INITIATIVES NOTABLE ACHIEVEMENT
❱❱ Reduce greenhouse gas emissions
Purolator trains its drivers on eco- Purolator has the largest hybrid
❱❱ Alternative fuels/energy sources
driving practices, continues to electric vehicle fleet of any freight
❱❱ Reuse/recycling program
find new and innovative ways to and parcel solutions provider
❱❱ Use wastewater
reduce energy consumption, and in North America, and has been
❱❱ Reduce energy usage
offers environmentally friendly conducting an annual greenhouse gas
❱❱ Sustainable packaging
packaging options. The company inventory since 2007.
❱❱ Sustainably source materials
understands the need to meet
❱❱ Solar panels
regulatory requirements and ensure
❱❱ Energy-efficient lighting
environmental compliance.

56  Inbound Logistics • June 2018

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RAYMOND CORPORATION SCHNEIDER RYDER
raymondcorp.com schneider.com ryder.com

Raymond’s sustainability initiatives Recent accomplishments include: Ryder has added electric vehicles
include upgrading software and improving fuel efficiency 12.5 (EVs) to its fleet, and has leased
controllers to an automated logic percent since 2008; reducing fuel EVs to customers to assist them in
and lighting controls program consumption 500,000 gallons reaching their sustainability goals.
to zone and control factory and between 2015 and 2016; reducing The company has also equipped
office lighting, heating, and air CO2 emissions by 4 percent, NOx by several maintenance facilities
conditioning based on utilization; 7 percent, and particulate matter by across North America to meet the
incorporating occupancy sensors to 23 percent. Schneider is a charter service and charging requirements
eliminate wasted lighting in main member of the SmartWay program for commercial EVs. Ryder has also
and facility offices; using water and is an eight-time SmartWay achieved more than 200 million
reclamation from the powder- Award of Excellence winner. miles with its natural gas vehicle
coat paint system for utility water fleet operations.
requirements; and installing CURRENT GREEN INITIATIVES
supplemental active solar lighting. ❱❱ Reduce greenhouse gas emissions CURRENT GREEN INITIATIVES
❱❱ Alternative fuels/energy sources ❱❱ Reduce greenhouse gas emissions
CURRENT GREEN INITIATIVES ❱❱ Reuse/recycling program ❱❱ Alternative fuels/energy sources
❱❱ Employing five workers solely ❱❱ Use wastewater ❱❱ Reuse/recycling program
responsible for minimizing the ❱❱ Reduce energy usage ❱❱ Reduce energy usage
waste stream ❱❱ Sustainable packaging ❱❱ Energy-efficient lighting,
❱❱ Sustainably source materials
NOTABLE ACHIEVEMENT ❱❱ Energy-efficient lighting NOTABLE ACHIEVEMENT

Transitioning to propane from Ryder has strategic partnerships


#2 fuel oil for the main boiler can NOTABLE ACHIEVEMENT with several electric vehicle
eliminate the burning of up to Schneider is eliminating the need for manufacturers to provide
50,000 gallons of oil—almost twice idling by equipping every new solo distribution and maintenance
the CO2 emissions of propane. truck with auxiliary power units. services. The company has also
This will reduce fuel used during deployed EVs in its rental and
idling by 85 percent. lease fleets.

RUAN

ruan.com CURRENT GREEN INITIATIVES NOTABLE ACHIEVEMENT


❱❱ Reduce greenhouse gas emissions
Three-time SmartWay Excellence Ruan has run nearly 90 million
❱❱ Alternative fuels/energy sources
Award winner Ruan utilizes miles on natural gas power since
❱❱ Reuse/recycling program
lightweight trucks and trailers, 2011, including 55 million miles
❱❱ Reduce energy usage
proven aerodynamic solutions, using renewable natural gas from
❱❱ Energy-efficient lighting
auto-inflation tire systems, onboard biodigested cattle manure.
❱❱ Member of CA SB1383 Subgroup
monitoring, and auto-shift power
#2 (Fostering Markets for
units. Ruan also partners with
Digester Projects)
and contributes to the Clean Cities
❱❱ Customer on-farm methane
annual study on diesel reduction.
digester produces renewable fuel for
The company is one of only three
Class-8 CNG tractor fleet
for-hire fleets in the National Clean
❱❱ RNG fuel
Fleets Partnership.

June 2018 • Inbound Logistics  57

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SOUTH CAROLINA PORTS AUTHORITY SHIPPERS GROUP
shipperswarehouse.com
scspa.com
Shippers Group removed high-
SCPA strives to be the greenest port in
emissions forklifts from its fleet,
the Southeast through low gate turn
and removed 206 metric tons of
times for truckers and efficient terminal
non-greenhouse gas emissions from
operations; fully electrified cranes
the atmosphere. As part of its Zero
and terminal transloading equipment;
Landfill Initiative, it recycled 63 tons
reduction of idling on and near port
of cardboard, plastic, and paper, and
property; 100-percent compliance with
reused 4,703 units of dunnage and
air quality standards and voluntary air monitoring; and the Clean Truck Program,
air bags. Shippers Group’s Wilmer
requiring a 1994/newer engine for trucks entering the port. The port is a member of
DC is equipped with high-efficiency
the Southeastern Diesel Collaborative and Coalition for Responsible Transportation,
electric chillers and T5 lighting with
and supports local environmental groups.
motion sensors.

CURRENT GREEN INITIATIVES NOTABLE ACHIEVEMENT


CURRENT GREEN INITIATIVES
❱❱ Reduce greenhouse gas emissions
Development of an inland port ❱❱ Reduce greenhouse gas emissions
❱❱ Alternative fuels/energy sources
network consisting of two facilities in ❱❱ Alternative fuels/energy sources
❱❱ Reuse/recycling program
South Carolina—Greer and Dillon— ❱❱ Reuse/recycling program
❱❱ Reduce energy usage
that increase freight tonnage moved ❱❱ Use wastewater
❱❱ Sustainably source materials
by rail per gallon of fuel. ❱❱ Reduce energy usage
❱❱ Energy-efficient lighting
❱❱ Sustainable packaging
❱❱ Offer a food truck program on
❱❱ Sustainably source materials
terminal to reduce personal vehicle TRANSGROUP GLOBAL ❱❱ Energy-efficient lighting
trips during daytime meals LOGISTICS
NOTABLE ACHIEVEMENT
transgroup.com
Shippers Group has been part of the
TransGroup’s external and internal
Texas Emission Reduction Plan since
sustainability activities are
2007, and removed high-emissions
SEABOARD MARINE encompassed in its TransNeutral
forklifts from its fleet.
green program. TransGroup has been
seaboardmarine.com a SmartWay member since 2007.
Current initiatives include recycling Its internal company sustainability
used batteries and scrap metal from initiatives include energy
repaired containers, equipment, conservation, recycling, waste
and ships. Seaboard’s modern reduction, and paperless initiatives.
refrigerated container fleet uses
ozone-friendly refrigerants that CURRENT GREEN INITIATIVES
also increase energy efficiency. ❱❱ Reduce greenhouse gas emissions
The carrier continually evaluates ❱❱ Alternative fuels/energy sources
emerging technologies to reduce the ❱❱ Reuse/recycling program
environmental impact of its vessels, ❱❱ Reduce energy usage
such as adjusting and replacing ❱❱ Energy-efficient lighting
propellers and rudder bulbs with ❱❱ Paperless initiatives
modern designs. Seaboard Marine
NOTABLE ACHIEVEMENT
works exclusively with accredited NOTABLE ACHIEVEMENT
environmental firms for disposal TransGroup was the first third-
of used tires and any items or party logistics provider to become a Seaboard Marine recently added
substances that contain oil. SmartWay partner in 2007. 1,370 high cube refrigerated units
to its refrigerated container fleet, of
CURRENT GREEN INITIATIVES which 415 are equipped with special
❱❱ Reduce greenhouse gas emissions ❱❱ Reduce energy usage controlled atmosphere technology to
❱❱ Alternative fuels/energy sources ❱❱ Sustainable packaging meet the needs of perishable import/
❱❱ Reuse/recycling program ❱❱ Sustainably source materials export shippers.
❱❱ Use wastewater ❱❱ Energy-efficient lighting

58  Inbound Logistics • June 2018

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TRANSPORTATION INSIGHT TOTE MARITIME

transportationinsight.com totemaritime.com
Transportation Insight’s integrated Enterprise Logistics solutions leverage multi- TOTE Maritime spearheads
modal insight, expertise, and technology-driven data analysis to help clients many environmental initiatives,
improve supply chain performance. Employing Extended LEAN continuous including converting vessels to
improvement methodology for the end-to-end supply chain helps clients improve liquefied natural gas power. TOTE
and maintain operational efficiencies as market demands change. Transportation continually seeks ways to reduce
Insight is an ongoing participant in the SmartWay Partnership program. its environmental impact through
innovative programs, many of which
CURRENT GREEN INITIATIVES NOTABLE ACHIEVEMENT
stem from the ideas of its employees.
❱❱ Reduce greenhouse gas emissions
Transportation Insight engineers
❱❱ Reuse/recycling program CURRENT GREEN INITIATIVES
data-driven Enterprise Logistics
❱❱ Reduce energy usage ❱❱ Reduce greenhouse gas emissions
solutions that eliminate supply chain
❱❱ Sustainable packaging ❱❱ Alternative fuels/energy sources
waste and optimize routes.
❱❱ Energy-efficient lighting ❱❱ Reduce energy usage

NOTABLE ACHIEVEMENT
UNION PACIFIC RAILROAD In 2017, JAX LNG, TOTE Maritime’s
LNG supplier, received a Letter of
up.com
Acceptance from the U.S. Coast
Union Pacific continuously improves Guard for the operation of its
its management systems and waterfront LNG facility and the
operating efficiency, develops and approval to conduct barge-to-ship
invests in technology to reduce its LNG bunkering operations with TOTE
environmental footprint, and works Maritime’s Marlin Class ships and its
to increase fuel efficiency, reduce air LNG barge, Clean Jacksonville.
SEALED AIR emissions and energy consumption,
and recycle used materials.
sealedair.com
Sealed Air sets specific CURRENT GREEN INITIATIVES
environmental targets for energy, ❱❱ Reduce greenhouse gas emissions TRANSPLACE
greenhouse gases, water, and waste. ❱❱ Alternative fuels/energy sources
The company continues to improve ❱❱ Reuse/recycling program transplace.com
its plans to address environmental ❱❱ Reduce energy usage Transplace executed 12.8 billion ton
impact and cost reduction goals. ❱❱ Sustainably source materials miles on carriers registered with
❱❱ Solar panels the SmartWay program in 2016,
CURRENT GREEN INITIATIVES ❱❱ Energy-efficient lighting and procured 96 percent of ton
❱❱ Reduce greenhouse gas emissions
miles for managed transportation
❱❱ Alternative fuels/energy sources NOTABLE ACHIEVEMENT
business through SmartWay-
❱❱ Reuse/recycling program
Union Pacific set its best-ever fuel registered carriers.
❱❱ Use wastewater
consumption rate in 2017, improving
❱❱ Reduce energy usage CURRENT GREEN INITIATIVES
by 1.7 percent. Since 2000, it has
❱❱ Sustainable packaging ❱❱ Mode conversion/consolidation
saved nearly 2.9 billion gallons
❱❱ Sustainably source materials ❱❱ Alternative fuels/energy sources
of fuel.
❱❱ Energy-efficient lighting
NOTABLE ACHIEVEMENT
NOTABLE ACHIEVEMENT
Transplace helps shippers reduce
In 2017, Sealed Air reduced energy emissions through use of more
intensity by 13.7 percent, reduced fuel-efficient transportation
greenhouse gases by 21 percent, modes and the overall reduction
and reduced water intensity by in number of shipments needed
16.7 percent. It also diverted 71.3 through consolidation and co-
percent of landfill waste (reduction loading arrangements.
compared to 2012 baseline).

June 2018 • Inbound Logistics  59

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WSI (WAREHOUSE SPECIALISTS, LLC) VERSACOLD
wsinc.com CURRENT GREEN INITIATIVES versacold.com
❱❱ Reduce energy usage
WSI employs natural landscaping VersaCold’s environmental efforts
❱❱ Reuse/recycling program
and green space to minimize include retrofitting facilities with
❱❱ Reduce greenhouse gas emissions
stormwater runoff and surface high-efficiency lighting, roofing,
❱❱ Alternative fuels/energy sources
pollutants, and uses electric- and charging systems; installing
❱❱ Energy-efficient lighting
powered equipment when possible. rainwater and defrost condensation
An active recycling program at all collection systems and reduced flow
NOTABLE ACHIEVEMENT
facilities amounts to thousands of faucets; implementing recycling
tons of materials recycled each year. WSI received Responsible Care programs, and expanding the use
certification from the American of more efficient refrigerants, such
Chemistry Council for its warehouse as ammonia.
UPS
facility in Baytown, Texas, while
ups.com its overall chemical unit passed CURRENT GREEN INITIATIVES
UPS continues its progress toward program recertification. ❱❱ Reduce greenhouse gas emissions
environmental goals: reducing ❱❱ Alternative fuels/energy sources
absolute GHG emissions in global ❱❱ Reuse/recycling program
ground operations 12 percent WERNER ENTERPRISES/ ❱❱ Use wastewater
by 2025, using electricity from ❱❱ Reduce energy usage
WERNER LOGISTICS
renewable sources (25 percent by ❱❱ Energy-efficient lighting
2025), using alternative fuel as a werner.com
percentage of total ground fuel NOTABLE ACHIEVEMENT
A four-time SmartWay Excellence
(40 percent by 2025). Award winner, Werner has driven A partnership with Bullfrog Power
more than 17 billion miles since provides a renewable energy
CURRENT GREEN INITIATIVES implementing ELDs 20 years ago, purchase, allowing VersaCold to
❱❱ Reduce energy usage reducing out-of-route miles to save displace 54.8 metric tons of CO2
❱❱ Reuse/recycling program fuel and cut emissions. Running annually, or 4.6 metric tons of
❱❱ Reduce greenhouse gas emissions ELDs eliminated paper log books to CO2 monthly.
❱❱ Alternative fuels/energy sources save trees and reduce waste.

NOTABLE ACHIEVEMENT CURRENT GREEN INITIATIVES


As of ❱❱ Reduce greenhouse gas emissions
2016, UPS ❱❱ Alternative fuels/energy sources
reached ❱❱ Reuse/recycling program
one billion ❱❱ Reduce energy usage
cleaner ❱❱ Energy-efficient lighting
miles
through NOTABLE ACHIEVEMENT
its alternative fuel and advanced Since 2007, Werner has saved more
technology vehicles fleet. than 203 million gallons of diesel fuel
and reduced CO2 emissions by more
than 2.2 million tons.

U.S. XPRESS ENTERPRISES ❱❱ Reduce energy usage


❱❱ Energy-efficient lighting
usxpress.com ❱❱ Installed white roof on corporate
As an EPA SmartWay member since headquarters to reflect UV and
the program’s inception and a two- cool building
time SmartWay Excellence Award
winner, U.S. Xpress has consistently NOTABLE ACHIEVEMENT
operated the newest, most efficient, U.S. Xpress has worked with Nikola
and safest equipment available. The CURRENT GREEN INITIATIVES Motor Company, supporting efforts
company looks across its entire ❱❱ Reduce greenhouse gas emissions to design, develop, and produce
operation to identify areas to reduce, ❱❱ Alternative fuels/energy sources hydrogen fuel cell/electric trucks.
reuse, and recycle. ❱❱ Reuse/recycling program

60  Inbound Logistics • June 2018

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XPO LOGISTICS
YRC WORLDWIDE
xpo.com yrcw.com
XPO was awarded “Objectif CO2” by the French government and committed YRC Worldwide companies are
to reducing its French fleet emissions by 6 percent, starting in 2016 and ending past recipients of the SmartWay
in 2018. Many XPO Logistics facilities are ISO140001 certified. The 3PL recycles Environmental Excellence
millions of electronic components and batteries annually through reverse logistics Award, and the EPA named its
operations, and monitors emissions from forklifts at logistics sites, with protocols team a SmartWay Champion. The
in place to take immediate corrective action if needed. Drivers are trained in company’s fleet strategy centers on
responsible eco-driving and fuel usage techniques. XPO is experimenting with equipment use, cleaner-burning
diesel alternatives, such as diesel-electric hybrids. fuels, and fuel-efficient engines.
YRC has self-imposed restrictions
CURRENT GREEN INITIATIVES on power-unit idling to reduce
❱❱ Reduce greenhouse gas emissions YUSEN LOGISTICS emissions and save fuel, and it uses
❱❱ Alternative fuels/energy sources biodiesel fuel, which burns cleaner
yusen-logistics.com
❱❱ Reuse/recycling program than petroleum-based diesel. A
❱❱ Reduce energy usage Yusen Logistics (Americas) upgraded priority continues to be replenishing
❱❱ Sustainable packaging its Carson, California, facility with the fleet with clean diesel trucks
❱❱ Sustainably source materials energy-efficient lighting and a while testing other options.
❱❱ Solar panels white roof. Previously installed
❱❱ Energy-efficient lighting in the warehouse, the company is CURRENT GREEN INITIATIVES
❱❱ Network optimization expanding the LED system to include ❱❱ Reduce greenhouse gas emissions
the office and exterior yard. The ❱❱ Alternative fuels/energy sources
NOTABLE ACHIEVEMENT white roof keeps the warehouse ❱❱ Reuse/recycling program
cool by deflecting up to 80 percent ❱❱ Reduce energy usage
XPO is 90 percent compliant EuroV,
of sunlight, resulting in significant ❱❱ Energy-efficient lighting
EEV, and EuroVI. Its average truck age is
energy savings. Yusen Logistics is
2.5 years. The 3PL invested $90 million
rolling out lithium-battery powered NOTABLE ACHIEVEMENT
in new trucks in 2018 (North America);
forklifts in Carson, as well as at its
and used the first LNG-powered Since the beginning of 2015, YRC
Sumner, Washington, facility. The
trucks in Paris suburbs. It is targeting a has replaced 20 percent of its
lift trucks produce zero byproducts,
20-percent reduction in CO2 emissions. approximately 14,000 tractors and
resulting in fuel and repairs
15 percent of its approximately
cost savings.
44,000 trailers. About 70 percent
of line-haul vehicles will be three
YALE MATERIALS CURRENT GREEN INITIATIVES
years old or newer by mid-2018.
HANDLING ❱❱ Reduce greenhouse gas emissions
All 53-foot and 28-foot trailers
❱❱ Alternative fuels/energy sources
yale.com entering the fleet are equipped with
❱❱ Reduce energy usage
aerodynamic skirts and fuel-efficient
Yale’s lift truck power solutions ❱❱ Solar panels
tires. And, YRC caps speed below 65
reduce emissions and waste. A ❱❱ Energy-efficient lighting
mph on all units, which reduces fuel
lithium-ion battery pack lasts up consumption and emissions.
to five times longer than a lead acid NOTABLE ACHIEVEMENT
option, reducing recycling waste. An investment in more than 30
Hydrogen fuel cells offer a 33-percent lithium-ion battery powered forklifts
savings in greenhouse gas emissions will result in an average energy
compared to lead acid batteries savings of 16 percent per truck.
charged from the electrical grid.

CURRENT GREEN INITIATIVES


❱❱ Reduce greenhouse gas emissions NOTABLE ACHIEVEMENT
❱❱ Alternative fuels/energy sources Yale is one of the largest
❱❱ Reuse/recycling program volume producers of zero-
❱❱ Reduce energy usage emissions electric lift trucks
❱❱ Energy-efficient lighting in North America.

June 2018 • Inbound Logistics  61

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Combat Cargo:
The Challenges of
Military Logistics
Think you’re a project cargo master? If you really want to be
all you can be, try moving difficult cargo into an area with
terrible infrastructure and hostile combatants, something
military logisticians do every day.

By: Jason McDowell

62  Inbound Logistics • June 2018

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E
veryone wants to be a POG, until there’s POG stuff to from trucks,” Barthen says. “We practiced on American con-
be done. That’s an old–but accurate–military joke. In tractors and foreign country nationals. The language barriers
the U.S. military, officers and enlisted personnel filling and various operational states of their equipment made it a
non-combat roles are jokingly referred to as POGs: Persons unique challenge, which we addressed well.
Other Than Grunts.
Military logisticians—or loggies—may be POGs, but preparing for the unexpected
they face constant disruptions and supply chain threats. And “We constantly rehearse expected issues to improve our
these days, being a POG doesn’t mean you won’t see combat. response time,” he adds. “For example, tires pop and vehi-
Keeping installations and troops supplied, especially in hard- cles break down. Leaders and maintenance personnel have
to-reach areas, takes intense training and no small amount little time to assess the situation and decide to repair on the
of grit. spot or recover to a better, often safer area to address the bro-
The Wisconsin National Guard’s 32nd Infantry Brigade ken equipment. Other soldiers take up defensive positions
Combat Team served extensively in the Operation Iraqi and secure the area, which often requires communicating
Freedom combat theater. They quickly became adept at mov- with people of a different culture and language, to maintain
ing hazardous shipments through potentially dangerous areas. a situation safe enough to remedy the problem and continue
“We routinely ran convoys of fuel tankers from Kuwait the mission.
north through Baghdad, and to Balad, and even farther north “Where we are exposed to small arms fire, improvised
and east into more remote places of Iraq,” says Major Bill explosive devices, or indirect fire from mortars, artillery, or
Barthen, brigade S-4 and logistics officer for the 32nd. “It aircraft, those battle drills become critical in maximizing time
wasn’t that the cargo was too difficult, but our anxiety over our to save lives, recovering damaged equipment, and protecting
vulnerability to possible attack and how to segregate potential the cargo,” Barthen says. “Cargo such as fuel and ammuni-
fires kept us on our toes.” tion can make the situation even more difficult.”
Proper training is crucial to successful operations in dan- The government also enlists assistance from contractors
gerous areas. Between deployments at home and between such as government services firm KBRwyle, which provides
missions while overseas, troops train extensively so they know a wide range of supply chain management, transporta-
what to do when the worst happens. tion, and other professional services to the Department of
“We practiced how to quickly extract vehicle operators and Defense (DoD). Contractors also train to ensure the safety
passengers, whether they were conscious or unconscious, of their crews.

June 2018 • Inbound Logistics  63

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Security and safety concerns were thoroughly addressed before this Wisconsin Army National Guard convoy security deployment moved
to Logistics Support Area Anaconda, near Balad, Iraq.

“Safety is always the priority concern,” hoc staff continued to advise our com- must be moved between military instal-
says Ella Studer, senior vice president mander—the instructor—that we lations, or by highway or rail to ports for
for KBRwyle’s logistics business. “We needed smaller, wheeled vehicles, and shipment overseas. While U.S. infra-
have safety processes for any environ- even boats to be successful in that envi- structure is arguably better than the
ment or operating condition. ronment,” says Barthen. average war or disaster area, it isn’t always
“Screening and vetting of local ven- “Conditions such as steep dirt roads convenient for moving over-sized cargo.
dors and subcontractors is critical,” she that became impassable in the frequent
notes. “In Iraq, Iraqi nationals must rains made the situation difficult,” he SPECIAL ASSIGNMENT
first obtain a Prime Minister National adds. “Congestion on narrow roads with “Three assignments come to mind,”
Operation Center (PMNOC) letter two-way traffic, sharp corners, low power says Rob Hooper, CEO of third-party
from the Iraqi government to obtain lines, and bridges that could not sustain logistics company Atlantic Logistics,
clearance into certain sites. Security the weight of our loaded vehicles made which provides specialized hauling
experts perform assessments and report it challenging to find suitable routes for services to the DoD. “The first two
their findings, with recommendations delivering humanitarian aid to villages are movements of Sikorsky SH-60
to KBRwyle leadership. damaged by typhoons or suffering food Seahawks for the U.S. Navy within the
“We t ake appropriate measures security and potable water issues.” state of Florida, on removable goose-
to mitigate any security concerns,” Bad roads, crumbled airstrips, or lack neck (RGN) trailers.
Studer adds. “Security considerations of port access aren’t the only problems “The helicopters are 52 feet long,
sometimes include military or con- that can arise. Complications can vary 11 feet wide, and 12.5 feet high,” he
tractor-provided escorts and aerial widely in specific areas of the world. explains. “The over-dimensional length
surveillance to ensure the safety of per- “KBRwyle adapts to each situation of the helicopters required three-axle
sonnel and equipment.” with knowledge of the geographical expandable lowboy trailers.
areas and operational conditions,” says “The third is a Logistics Vehicle
Off the Road Again Studer. “Challenges include obtaining System Replacement cargo truck
Direct threats aside, critical ship- qualified employees to execute each moved from Florida to South Carolina,”
ments often move through areas with scenario, obtaining equipment dura- he says. “The truck measured 432 x 101
little standing infrastructure. The 32nd ble in the operating environment, and x 106 feet and weighed 53,500 pounds.
recently conducted classroom training coordinating deliveries with receiv- We used a three-axle step-deck as a less
where logisticians were asked to over- ing entities that are likely to have expensive solution to an RGN.”
come obstacles that might obstruct competing priorities depending on In the United States, project cargo
humanitarian aid in a fictional disaster operational conditions.” moves aren’t uncommon. Pipeline sec-
area in the Philippines. Even in the United States, military tions, large equipment, zoo animals, or
“The scenario mandated we use shipments come with complications. any number of other obscure shipments
mine-resistant vehicles, but our ad Tanks, helicopters, and other large freight move through the U.S. transportation

64  Inbound Logistics • June 2018

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network every day. The logistics chal-

PHOTO: Pailton Engineering


lenges of domestic military and civilian
shipments are often comparable.
“There’s an old expression that is
sometimes true in the logistics busi-
ness: parts is parts,” Hooper says. “The
mechanics of the processes are often
similar, but the shipping requirements
are often different. They are more intri-
cate when you have to coordinate a
helicopter on a specialized trailer.”
On top of the usual challenges,
however, DoD contractors must
overcome myriad licensing and secu-
rity roadblocks.
“The scrutiny you’re put through to
become an approved services provider
is generally greater than that in the pri- Pailton engineers test the equipment it sells to the military to make sure it meets exacting
vate sector,” says Hooper. “Base access standards and capabilities.
is also a challenge, because virtually
all bases require extensive driver back- “Right now, we are in the process ordering additional spill containment
ground checks. This slows the process.” of identifying qualified re-fuelers materials and coordinating with com-
Even when military units move to receive bulk fuel from a Defense mercial landowners to conduct our
their own domestic shipments, logisti- Logistics Agency (DLA) vendor, then refueling operations on their property,”
cians face significant regulatory hurdles. distribute it at points along a 400-mile he adds.
Loggies frequently travel to obtain convoy route,” says Barthen. “Each Military logisticians solve compli-
proper certifications on location at mil- operator needs to be certified by unit cated problems quickly, are trained to
itary installations, and participate in leadership and validated by DLA before overcome any challenge, and keep a
training through online modules and the vendor will schedule delivery. cool head under pressure. That’s valu-
classroom instruction within their units. “To enable the operation, we’re able in any logistics operation. n

Carrying the Load


Military vehicles have come a long way vehicles with a top speed of 50 to 55 mph.
from the jeeps and cargo trucks we see In addition to performance, quality is also
in old episodes of M.A.S.H. The trucks that crucial. An equipment failure in a combat zone
move freight across war zones can’t just be isn’t just an inconvenience—it can mean life
functional, they must also be tactical. or death. Fortunately for our troops, we now
“Armored vehicle capabilities have live in a world of big data, and information
continued to take huge strides,” says Eric gathered in the field and through tier one
Sonahee, design and development engineer manufacturer testing can be used to design
for Pailton Engineering, a provider of steering and build stronger, more reliable equipment.
systems for armored military vehicles. “With enough vehicle data from our
“Fuel economy, suspension, and armor are customers, we are able to compile a block
just three examples of areas that have testing program on our test rigs that match
significantly taken off in recent years.” the same loads and frequencies of the
Technological advances in vehicle real-life conditions,” Sonahee says. “This
manufacturing have contributed to safer, demonstrates the importance of collaboration,
more efficient vehicles. For example, communication, and sharing data.
Pailton collaborated with tier one vehicle “Success in the industry has been driven
manufacturers to provide lightweight by the vital collaboration between tier one
steering systems that enabled a top speed of manufacturers and suppliers as part of the
70 mph for some tactical vehicles. The weight design and testing process,” he adds. “We
of components and armor left older military should celebrate this.”

June 2018 • Inbound Logistics  65

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—JOINT SPONSORED CONTENT FROM—

Chemical Week

Chemical Logistics:
The Price of Success
These are good times for chemical manufacturing in the
United States. But an active market creates special challenges
for companies that need to transport chemical products.
66  Inbound Logistics • June 2018

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Chemical Logistics: The Price of Success

T he U.S. chemical industry is going strong, according to American


Chemistry Council (ACC) figures released in late 2017. U.S. chemical
production volume for 2017, excluding pharmaceuticals, would be
0.8 percent higher than in 2016, finds the ACC’s annual industry
study. ACC predicts further growth of 3.7 percent in 2018, 3.9 percent in
2019, and 3 percent in 2020.
president, chemical and oil and gas
at Boston-based consulting firm
Maine Pointe.
Companies that transport
chemicals, or manage chemicals
transportation, saw a spike in
Continued access to inexpensive creating a $32-billion trade business in 2017 in the wake of
shale gas, used for feedstock in surplus for chemicals, excluding several major hurricanes, including
the manufacturing process and pharmaceuticals, in 2017. Chemical Harvey, which ravaged southern
for energy, gives U.S. chemical exports totaled $127 billion, and Texas in August of that year. “Some
manufacturers an advantage over imports rose by 2.8 percent over of the production facilities we were
competitors in other locations, 2017, reaching $96 billion. working with sustained damage,”
says the ACC. Companies have Along with low-cost feedstock, recalls Adam Kroupa, general
announced nearly 320 new the U.S. chemical industry manager of the ChemSolutions
chemical production projects in benefits from the strength of the business at third-party logistics
the United States, with a total general economy, which is driving (3PL) provider C.H. Robinson in
value of more than $185 billion, greater demand for plastics and Eden Prairie, Minnesota.
the organization says. Foreign many other products made from As companies transferred
investment accounts for 62 percent chemicals. “We’ve seen a sustained production to alternate facilities,
of that value. upward trend that has continued they needed to move component
The ACC also notes an increase to build steadily and progressively,” chemicals or arrange for suppliers
in exports from the United States, says Mark Montanari, vice to deliver to the new locations. “We

June 2018 • Inbound Logistics  67

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Chemical Logistics: The Price of Success

Miller Intermodal Logistics Services provides well-maintained, efficiently priced equipment, and responds quickly to
shippers who need to lease bulk tank trailer storage and equipment.

were able to help those companies boutique manufacturing that’s hours of service (HOS) regulations
with their supply chain, and close to customers,” says Chuck with electronic logging devices
adjust their transportation needs,” Breinholt, president of Rinchem, (ELDs), and a healthy economy,
Kroupa says. an asset-based 3PL in Albuquerque companies shipping all kinds of
On top of those temporary that specializes in chemical and gas products find it hard these days
changes, the chemical industry supply chains. to secure transportation capacity
has seen some longer-term Like companies that supply in popular lanes. For chemical
adjustments to shipping strategies components to auto manufacturers, shippers, the challenge is even
since the Panama Canal reopened these chemical firms try to locate greater.
in 2016. plants in the same cities as some That’s partly because so
“Imports from China that used of their large customers, vastly many chemicals are classified as
to hit the West Coast are being reducing the need for outbound hazardous materials (hazmat). In a
delivered to Texas, where a lot of transportation. tight market for drivers in general,
refining and chemical production “This move doesn’t necessarily the subset of drivers with hazmat
facilities are located,” Kroupa says. benefit us as a 3PL,” says Breinholt. certification is even tighter.
“Many shipments are going to the “It is smart business, however, if “The driver shortage is more
East Coast as well.” Those changes manufacturers can figure it out and acute because of the additional
mean less demand for over-the- can comply with and control safety training that’s required to
road or intermodal transportation and quality issues.” haul chemicals,” says Michael
for chemicals from California, but Notarangeli, executive vice
more for tanker truck capacity near president, logistics, at Maine
the ports of Texas, Georgia, and The Big Squeeze Pointe. “Usually drivers in the
the Northeast. While greater demand for chemical industry have more
Another trend is a move among chemicals is good news for tenure, because they have more
some chemical manufacturers to companies that sell and use those training and a good safety record.”
develop a more distributed supply products, and for their logistics Such requirements make it
chain. “Instead of operating major partners, the strong market also tough to find new drivers for
plants that produce and source creates a big challenge—a serious chemical loads when demand
from one or two locations globally, capacity crunch. surges.
some companies are trying to Thanks to the ongoing driver Making the situation tougher
figure out how to create smaller, shortage, tighter enforcement of still, a federal regulation

68  Inbound Logistics • June 2018

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rinchem_placed_ad0115.indd 1 1/23/15 12:21 PM
Chemical Logistics: The Price of Success

established several years ago those containers exceeds 1,000 The ELD mandate, which took
requires some drivers who haul gallons, you’re required to get effect in December 2017 and came
hazardous chemicals in van trailers a tanker endorsement,” says under full enforcement in April
to add tanker endorsements to Greg Umstead, vice president of 2018, has not only tightened up the
their commercial drivers’ licenses transportation management at 3PL hours when drivers are available to
(CDLs). Transplace in Frisco, Texas. “A lot of work, but has also knocked some
“If a shipment includes liquid chemical shippers move large totes. capacity directly out of the market.
or gaseous containers larger than If more than two of those totes are While many carriers adopted
119-gallon capacity, and the on the trailer, you need a tanker ELDs years ago, the industry as a
aggregate combined volume in endorsement.” whole did not fully embrace the

Regulatory Relief
W
hile some regulations make life harder for help shippers eliminate the ‘lumpiness’ over a delivery
chemical companies, several recent moves by week,” Forbes says. “We need to consider programs that
the federal government could give the industry influence end users to accept loads on broader time
a boost, according to Adam Kroupa, general manager tables, versus an ‘8 a.m. Monday’ standard.”
of the ChemSolutions business at third-party logistics In the ongoing quest for greater logistics efficiency,
provider C.H. Robinson in Eden Prairie, Minnesota. information technology continually offers new
One helpful development is the Ozone Standards capabilities, such as “being able to anticipate and better
Implementation Act of 2017, which modifies the provide predictability,” Forbes says. “More and more,
National Ambient Air Quality (NAAQS) standards in the predictive analytics are becoming a component of
Clean Air Act. decision making.
“If shippers in the marketplace don’t collaborate “In the past, what we called ‘real-time data’ wasn’t
quickly and efficiently with service providers, we actually real time; it had a lag to it in most situations,”
will only run into other problems, especially in a Forbes says. “Now, some of the applications collect and
contracting driver market,” notes Mike Forbes, vice share data in actual real time. You can make predictions
president of logistics solutions at Kenan Advantage from that data, to change and anticipate different
Group (KAG) in North Canton, Ohio. KAG provides tank scenarios, which makes all parts of the supply chain
truck transportation and logistics management services more efficient and lean.”
for companies that ship fuel, chemicals, industrial gases, New mobile apps for operations, sales, and customer
and food-grade products. service also deliver benefits for chemical shippers and
Collaboration can take many forms. At industry their transportation partners.
meetings, shippers and service providers have been “For example, the apps let drivers provide more timely
sharing ideas about how to improve efficiency. Those information about shipments or unplanned events that
discussions lead to specific initiatives that might involve could impact cost and service,” Forbes says. “Mobility
several shippers or even several carriers. also extends sales and customer service activity any
For instance, in some cases, KAG and other bulk liquid time, anywhere.”
carriers can establish programs to use each other’s
facilities to wash out their tanks after deliveries. “Not
all carriers have wash stations at every location or key
market,” Forbes says. Such cooperation helps carriers
bring greater value to their customers.
In other cases, a carrier and shipper might join
forces to eliminate empty miles in the supply chain
by tying outbound finished product shipments
to inbound raw materials. “A lot of best-practice
sharing and problem solving goes on through these
collaborations,” Forbes says.
Chemical shippers and their partners also need to
think more broadly about their transportation options.
“Everyone should continue to look for situations that

70  Inbound Logistics • June 2018

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Transplace_ad0618.indd 1 6/13/18 9:53 AM
Chemical Logistics: The Price of Success

devices. Some trucking companies The company also offers to want a 450-mile load—requiring
and drivers were not able to equip specialized services, such as a one-day trip—than a load that
their trucks, and were hoping that transporting goods in totes via has to move 750 miles, which takes
stricter enforcement of HOS rules dedicated less-than-truckload about a day and a half.
would never actually come to pass, (LTL) or full truckload. “We in the trucking industry
says Steve Haskins, president and Carriers cannot solve capacity are selecting the loads that give us
CEO of Miller Intermodal Logistics issues on their own, Haskins the highest productivity,” he says.
Services, Inc. (MILS), based in notes. Chemical shippers and “Those in-between ranges are not as
Ridgeland, Mississippi. receivers must come to the table desirable.”
Carriers and drivers who with changes in the way they Shippers that can’t avoid those
anticipated government consume drivers’ time. “We must 750-mile runs pay a premium,
intervention, or who chose not to collaborate for better use of truck Dupré says. Shippers are also
spend the capital to equip their and driver resources, and invest working with carriers to eliminate
fleets, vanished from the market. in plant infrastructure and site those awkward runs.
“With that void, the industry improvements for safer and more “Some shippers are positioning
suddenly felt a vacuum of eight to efficient handling of trucks,” he inventories into regions and
10 percent fewer trucks that simply says. “This, along with better getting those regional depots
aren’t on the road today,” he says. scheduling, will bring the needed supplied by either barge or rail,”
The regulations have hit capacity results.” he says. “And then they’re doing
bulk tank transportation— more local deliveries via truck. But
including the transportation of a ‘local’ delivery could still be less
chemicals—particularly hard. Different Dynamics than 500 miles.”
Drivers transporting bulk loads Stricter enforcement of HOS Dupré Logistics focuses largely
are experiencing significant dwell regulations hasn’t had the same on the chemical and energy
time waiting to load and unload. effect across the board, but rather industries with three levels of
“Many drivers’ Department of has changed the dynamics for service. The first level offers spot
Transportation (DoT) hours of shippers tendering loads to carriers, transportation via the company’s
service are consumed with waiting says Reggie Dupré, CEO of Dupré own fleet and through its trucking
in staging areas to load and unload Logistics Services in Lafayette, brokerage. The second provides
at chemical industry plant sites or Louisiana. Given the limit on the managed transportation, and the
tank farms,” Haskins says. number of hours a driver can work third provides dedicated contract
Haskins suggests that chemical in one day, a carrier is more likely services.
shippers could assist with DoT
compliance if they would be
more flexible in their schedules. KAG provides employees with exceptional training, development, and inspiration
to deliver on its mission: to take every load, deliver it on time, without incident.
“Shippers expanding loading and
delivery times with off-hour, night,
or weekend options would provide
additional windows for drivers to
load and unload,” he says.
MILS provides transportation
and logistics services with its own
fleet of tank trucks, dry vans, and
dedicated freight. In partnership
with other carriers, MILS offers
services that include a strong
emphasis on tank truck, van, rail,
and intermodal transportation. It
provides supply chain management,
order fulfillment, inventory
management, a transload and
warehouse facility, equipment
leasing, and maintenance.

72  Inbound Logistics • June 2018

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Landstar_ad0618.indd 1 6/13/18 9:52 AM
Chemical Logistics: The Price of Success

While strategies such as the strategic in the way they use

The Form Factor use of regional depots can help


shippers avoid some problems
dedicated capacity and brokerage
services. Consider a firm that uses
in over-the-road transportation, dedicated capacity to handle its

A
lthough chemicals companies may also run up against regular volume, but then sees a
often move in bulk other capacity challenges, ranging surge in demand due to a sales
containers, they from congested ports to scarce campaign. Rather than pull
may also move in barrels, space on the rails. “Domestic trucks from its contracted fleet or
totes, or custom-made logistics services are at their capacity from its traditional carrier
packaging. The size and maximum right now,” Dupré says. partners to handle this extra
shape of these packages “The collision between the increase volume, the company might make
can make a significant in demand and the restricted spot buys through a broker.
difference in transportation supply is the biggest challenge that “In the past, larger companies
and storage costs. we and our customers face.” had a fleet that traveled the same
“Sometimes the packages In part, today’s capacity routes every day,” Clark says. “Now,
are light, but tall, and cannot shortfall springs from an they’re responding to the market
be stacked,” says Chuck overabundance a few years back, much more quickly and creatively.”
Breinholt, president of 3PL when the economy was weak.
Rinchem in Albuquerque. “Everybody was forced to reduce
“And sometimees the their assets and service offerings Longer Lead Times
configuration is too wide, to some extent because capacity Because capacity is so tight,
so they cannot be placed levels were higher than demand,” especially for companies that need
side by side on a truck,” he Dupré says. Now, service providers bulk tankers, shippers must start
adds. “Or once they make in all modes are scrambling to their transportation planning
it to a warehouse, their accommodate greater volumes. earlier. “Large bulk shippers used
unique size doesn’t fit the Yet another factor complicating to have to give carriers three to
racking configuration.” access to capacity for chemical five days notice,” says Bob Daymon,
Container sizes and shippers is the proliferation senior vice president of operations
packaging configurations of mergers and acquisitions in at Transplace. “They’re now being
can lead to ineffective space the industry. “A lot of mid-level required to give 10 days notice.”
utilization, and wasted companies are joining up together,” Chemical shippers and their
space costs money. So when says Michael Clark, executive vice service partners use various
companies source or design president, logistics, chemicals, and strategies to beat the capacity
packaging for chemicals, specialty products at KAG Logistics crunch. For instance, they use
they need to think about in North Canton, Ohio. “The strong information technology to
how the packaging will keep getting stronger. And, in anticipate the shipper’s upcoming
cube in transit, as well as in some cases, they demand a little needs and locate capacity that
storage and at the ultimate more from their supply chains.” meets specific requirements.
destination. Larger companies with well- “We’re investing more than
“That can help them designed supply chain strategies $150 million in technology in
drive out unexpected and have an advantage when it comes 2018 alone,” says Kroupa. Those
potentially significant costs,” to capacity, Clark says. For example, information systems help
Breinholt says. rather than serve customers from ChemSolutions find available
one supply point, today a big trucks and match the right
company might ship product from equipment to the right jobs.
multiple facilities. “Our technology can look at
“Big companies can take freight that’s being shipped and
advantage of capacity, where it make sure it aligns with customer
is, at any given time in the cycle,” needs,” he explains. “There’s also
he says. Big companies also have a security aspect to align tank
greater clout in the marketplace. requirements with any commodity
In addition, larger chemical controls the customer has in place.”
companies are becoming more ChemSolutions uses its

74  Inbound Logistics • June 2018

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075_Dupre_ad0618.indd 1 6/15/18 10:58 AM
Chemical Logistics: The Price of Success

transportation management
system (TMS), called Navisphere,
to spot trends and understand
where capacity is available. “If we
have capacity from a carrier in
a specific area, for example, we
can relay that information to
customers and try to get ahead
of things,” Kroupa says. “We can
secure that equipment for them
ahead of someone else.”
In addition, the company uses
data analytics to understand
customers’ shipping patterns and
make preparations even before the The KAG Logistics support center serves all its drivers, field operations personnel,
customer places its orders. and customers.
Shippers also use technology
to forge closer relations with customers, not only for pack- far more transportation than a
carriers and 3PLs, so they can work aged chemicals, but also with bulk small chemical shipper, allowing it
together on challenges such as truck,” Umstead says. to strike better deals with carriers.
securing capacity. “Companies now In a third strategy, Transplace And it may be better equipped to
have the ability to more tightly has created a preferred shipper pro- spot opportunities.
manage the supply chain with their gram for chemical clients. The 3PL “Smaller companies sometimes
partners, through the availability surveyed carriers to find out what lack the broader network knowl-
of data and better collaborative they do or don’t like about serv- edge about what’s going on across
capabilities,”says Montanari. ing particular shippers and then all the chemical networks,” says
sent the results to its chemical cus- Clark at KAG Logistics. Some also
tomers. The survey shows, among lack the technology to take advan-
Planning Ahead other things, that carriers like to tage of that knowledge.
Transplace uses technology to take loads from shippers that: get
anticipate the needs of chemical drivers in and out of their facilities
shippers, start the planning pro- fast; offer amenities such as wi-fi, In the Know
cess early, and find opportunities lounges, and bathrooms; and let As a subsidiary of Kenan
for continuous moves. “We want to drivers park their trucks overnight. Advantage Group, KAG Logistics
know where the capacity is going, “Some shippers have taken steps has access to its company’s own
and how we can leverage it in a con- here to better accommodate driv- bulk liquid tankers, as well as a
tinuous loop,” Daymon says. ers,” Umstead says. large network of outside carriers.
Predictive analytics help The advent of ELDs is forcing KAG Logistics provides dedicated
Transplace anticipate seasonal shippers to become especially cre- transportation, managed logistics
demand spikes, or shorter spikes ative about eliminating driver services, truckload services, and
due to upcoming storms. “We waiting time. Shippers need to supportive services such as
usually know two weeks out if a establish drop trailer programs, or transloading from rail to truck and
hurricane is coming. How do we else implement sophisticated load inventory management.
prepare for that?” Umstead says. rack scheduling, Umstead says. In “We know what’s going on in
Obviously, that strategy applies load rack scheduling, a company the marketplace, and we have
to all kinds of commodities. “But pre-loads trailers before drivers processes and technology in
I see a lot of it specifically with arrive to pick them up, or times its place that smaller companies
chemical shippers,” he adds. loading to get the driver back on can leverage,” Clark says. The 3PL
Also, Transplace works with the road as quickly as possible. can also help smaller chemical
carriers to lock in capacity for For smaller chemical companies companies optimize their supply
shippers who need it regularly. competing for capacity against the chains.
“We’ve established several dedi- big guys, a partnership with a 3PL “They may not have enough
cated fleets among our chemical can help. A service provider buys volume for a large dedicated

76  Inbound Logistics • June 2018

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AMPLIFY YOUR EXPECTATIONS.

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supply chain uncertainties.
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the peace of mind that we are doing what we do best for you –
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KAG_ad0518.indd 1 5/30/18 11:24 AM
Chemical Logistics: The Price of Success

wait two weeks to get one. “We’re


asking our customers to look at
how they set up loads, when they
place orders, and when they ask
their customers to place orders,”
Dupré says.
Many chemical companies
promise customers shipment
within 48 hours, or sometimes
even 24 hours. “It’s very difficult
to meet that demand right now,”
Dupré says. Shippers are critically
aware of the capacity shortage, but
they haven’t yet responded with
In 2017, Rinchem expanded its chemical distribution center in
new processes, he adds.
Pyeongtaek, South Korea. The new site provides four additional warehouses
capable of storing a wide variety of materials including flammable, toxic,
corrosive, oxidizer, and miscellaneous dangerous goods with strict temperature
requirements. Inventory Management
Just as 3PLs are helping
customers in the chemical industry
fleet, but we can help give them “Today’s chemical shippers want secure the capacity they need,
dedicated-like service by marrying it their way,” says Haskins. Each those service partners can also
up some of their capacity demands shipper that tenders a load has help chemical companies manage
with other customers’ capacity,” he precise specifications for the inventory more effectively. To
explains. equipment the carrier will provide. that end, Rinchem has recently
Sometimes, a carrier has a truck made some new investments
available to carry a load, and it’s in its Chem-Star warehouse
Getting the Meter Running just a few miles from a shipper, management system (WMS). The
At MILS, one additional solution but can’t fill the need because 3PL has upgraded its solution to
available to shippers who want that truck doesn’t meet every one provide simple, low-cost links
to use capacity more efficiently is of the shipper’s requirements. “If with suppliers and customers,
employing metered tank trucks. shippers would collaborate more providing visibility that helps
Usually, a bulk liquid is transported with carriers to ask, ‘What can I do chemical companies make better
in a “single barrel” tank trailer or to make my freight fit your truck decisions about how they manage
in a compartmented tank trailer. and your truck fit my freight?’ that and transport inventory, Breinholt
Those options limit a shipper’s would help us free up more capacity explains.
flexibility when it comes to the size resources in the market,” Haskins One new feature, called Easy
of the loads it can deliver, Haskins says. Link, integrates Chem-Star with
explains. Dupré agrees that collaboration shippers’ own management
About 15 years ago, MILS among shippers and service systems. “Now we can easily
worked with a meter manufacturer providers is becoming essential. automate advanced shipping
to install meters on its tank trucks. “We’re all trying to solve the same notifications, order receipt
Now, a shipper can provide a series problem,” he says. “If we come at confirmations, inventory
of multi-stop deliveries in variable it adversarially, we won’t be using reconciliations, and all sorts of
amounts to its customers. “This the available brain power of all the data links so companies don’t
helps customers get their goods teams.” have to worry about whose system
to market more efficiently while One more area where they’re working in,” Breinholt says.
optimizing shipment orders via collaboration could pay off is the Rinchem uses business
best routes for cost-effective in the timing of shipments. In intelligence technology to extract
deliveries,” Haskins says. the petrochemical industry today, valuable information from the
Chemical shippers could also carriers are wrestling with such data and then to recommend
find more capacity if they were a big backlog that a shipper who alternative supply chain options to
more flexible in their requirements. calls to book a truck often has to the customer.

78  Inbound Logistics • June 2018

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MILS_AD_0618.indd 1 6/11/18 10:32 AM
Chemical Logistics: The Price of Success

with platform equipment and


van trailers, not tanks, so the
company’s chemical business
focuses on product transported
in drums and totes. Although
Landstar offers transportation for
a wide range of commodities, it
insists on hazmat certification for
all its drivers. This helps to ensure
that when a customer needs to
move a hazardous load, there will
be a driver available.
“If a driver is in the middle of
New Mexico, and we need them to
pick up a hazmat load nearby, we
know they are certified to haul that
load,” Cobb says. “We don’t need to
Landstar focuses its chemical business on product transported in drums and have another driver deadhead 400
totes, such as this shipping container, which contains class 7 radioactive
materials. or 500 miles to pick that up.”
Landstar hauled more than
200,000 hazardous loads in 2017,
Breinholt cites an interesting leased to the company must be Cobb says. The company has
insight that emerged from the certified to haul hazmat. established a hazmat department
data belonging to one of Rinchem’s “We put owner-operators to make sure everything runs
large customers. “For a certain through live training and smoothly, and that all drivers
product line, they had about 8,000 orientation,” says Mike Cobb, get recertified on schedule.
SKUs [stock-keeping units], and Landstar’s vice president, safety The department also ensures
among those SKUs, more than and compliance. “At the end of that Landstar’s independent
80 percent hadn’t moved in the the training, they are required sales agents maintain hazmat
past five months.” This is crucial to complete an in-depth hazmat certifications, so all agents bring
information, given chemicals’ course online. And then we the necessary safety knowledge to
finite shelf life. recertify them every three years.” their work.
“Once chemicals age, it’s difficult Landstar’s nearly 10,000 Furthermore, the hazmat
to find a primary or secondary use contracted owner-operators do department functions as a help
for them, and then they become most of their hazmat hauling desk. “If an operator is picking
hazardous waste,” he says. “The
whole idea is to figure out how to
reduce inventory, put it in the right
places, and make sure decision
makers know what is going on.”

Training for Safety


Because many chemicals are
hazardous materials, chemical
shippers and their logistics
providers must work diligently to
keep their products safe and secure,
both in transit and while in storage.
At Landstar Transportation
Logistics, based in Jacksonville,
Florida, safety efforts start with a Because Miller Intermodal Logistics Service is committed to maintenance and
requirement: every owner-operator quality service, its equipment is in top condition and DoT compliant. Drivers are
experienced and undergo continuous training.

80  Inbound Logistics • June 2018

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CLXLogistics_ad0617.indd 1 5/31/17 1:20 PM
Chemical Logistics: The Price of Success

up a load and something on the


paperwork doesn’t look right,
and it’s not something they feel Who’s Responsible?
comfortable correcting or speaking

I
with the shipper about, they can dentifying a hazardous material is the shipper’s first step, and
call our number 24/7/365,” Cobb frequently the most difficult. Of all the shippers’ responsibilities,
says. An employee will provide the requirement to properly classify a hazardous material
whatever assistance the owner- is critical. The other requirements are based on the proper
operator needs. identification of the hazardous materials.
On top of its certification HAZARDOUS MATERIALS SHIPPER RESPONSIBILITIES:
requirement, Landstar participates
in Responsible Care, a program ■■Determine whether a ■■Shipping papers
the ACC developed to promote material meets the definition ■■Emergency
health and safety. “A lot of the of a “hazardous material” response information
tank carriers are Responsible Care ■■Proper shipping name ■■Emergency response
certified, but many typical van ■■Class/division telephone number
transportation providers are not,” ■■Identification number ■■Certification
says Cobb. ■■Hazard warning label ■■Compatibility
Every year, a third-party ■■Packaging ■■Blocking and bracing
Responsible Care auditor visits ■■Marking ■■Placarding
Landstar to evaluate its processes ■■Employee training ■■Security plan
with an eye toward safety, When moving hazardous materials, many carrier and shipper
compliance, risk management, and responsibilities frequently overlap. When a trucker performs a
loss prevention. “Fortunately, we shipper function, the carrier is responsible for performing that
have met the standard every time,” function in accordance with 49 CFR. The cargo space of the vehicle
Cobb says. should be suitable for the material being shipped. The vehicle
No matter how careful its itself must be in sound mechanical condition. The carrier must
transportation partners are check to ensure that the material offered by the shipper is properly
about safety, ultimately a shipper described and packaged. In addition to the provisions of 49 CFR
is accountable for any mishaps Parts 100-180, interstate motor carriers of placarded loads must
involving its hazardous products. comply with the hazardous materials requirements in 49 CFR P.
“When you manufacture the
chemical, you can have the best HAZARDOUS MATERIALS CARRIER RESPONSIBILITIES:
safety protocols, the best people, ■■Shipping paper ■■Blocking and bracing
the best training, the best record,” ■■Placard and mark vehicle ■■Incident reporting
says Notarangeli. “But as soon as ■■Loading and unloading ■■Security plan
it leaves your direct control, your ■■Compatibility ■■Employee training
entire supply chain has to be
Source: Federal Motor Carrier Safety Administration
subject to those same standards.
That adds complexity, cost, and a
pretty steep layer of governance
and due diligence.” set of guidelines, he adds. controls for ground-level access,
Close collaboration is the Along with the safety issues which greatly mitigate slip and fall
key to getting safety right when attached to hazmat transportation, incidents, Haskins says.
working with service partners. many chemical shippers also With their eyes always fixed on
“The carrier has to have access to contend with safety issues that safety issues, while also searching
the same information the shipper are specific to bulk transportation, for new ways to improve capacity
has in terms of safety sheets and where loading and unloading can utilization, chemical shippers and
safety protocols,” Notarangeli be complex processes. MILS has their partners have a lot to watch
says. Ideally, service providers alleviated some of those concerns out for. If the chemical market
would join the chemical company’s by making a commitment to continues to heat up, they’ll be
employees for safety training, so redesigning the trailers in its watching even more intently, and
everyone is working from the same tanker fleet to include fixtures and needing to work even smarter.

82  Inbound Logistics • June 2018

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CONS UM ER S SEE SC PO RTS S E ES

A dynamic
business
partnership
that maximizes
shipping
predictability,
flexibility and
efficiency while
minimizing risks
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problems to create
a streamlined
supply chain so
your resins can
A plastic suitcase. be delivered
seamlessly to
customers faster.

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1/31/18 3:41 P
Chemical Logistics: The Price of Success

Chemical Logistics Resource Guide


These chemical logistics partners offer supply chain solutions that help
shippers move chemicals and hazardous materials safely, quickly, cost RINCHEM COMPANY
effectively, and as efficiently as possible. www.rinchem.com
505-345-3655
C.H. ROBINSON WORLDWIDE Rinchem provides customized
KENAN ADVANTAGE GROUP logistics solutions to
www.chrobinson.com
www.thekag.com manufacturers of chemicals and
800-326-9977
800-969-5419 gases. Rinchem manages and
The company’s ChemSolutions
Kenan Advantage Group offers coordinates all logistics-related
team connects shippers with
a network of integrated hauling activity, evaluating costs, modes
reliable, safe, and compliant
solutions to meet custom needs. of transport, customer service
carriers. ChemSolutions experts
Its chemical transport solution levels, and opportunities for
help shippers establish and
applies strict safety and security consolidation. Rinchem’s Chem-
refine stringent carrier scorecard
measures to provide chemical Star warehousing management
requirements and pair them
shippers with reliable hauling module offers real-time inventory
with trained drivers to ensure
service and guaranteed capacity. visibility and the use of RF
the safety of chemicals and
dangerous materials during technology to improve receiving
LANDSTAR SYSTEMS and picking speed and accuracy.
transit. www.landstar.com
800-872-9400 SOUTH CAROLINA
CLX LOGISTICS Landstar agents understand
www.clxlogistics.com PORTS AUTHORITY
the complexity of the chemical
800-288-4851 www.scspa.com
supply chain. The company
Its ChemLogix division 843-723-8651
constantly monitors shipment
provides chemical logistics The port’s Supply Chain
temperatures throughout
expertise—from regulatory Authority team works across
the transportation lifecycle
compliance to safety and security port functions—operations
to maintain product stability
considerations—for smooth and terminals, commercial
and integrity. Landstar’s
outcomes, risk reduction, and and economic development,
transportation services utilize a
cost savings. The ChemLogix information technology—to
range of specialized equipment.
team and solutions focus solely provide a customer-centric
on chemicals, helping companies process to meet chemical
MILLER INTERMODAL
find ways to streamline and shippers’ unique logistics
optimize their logistics networks. LOGISTICS SERVICES (MILS) challenges.
www.mils3pl.com
DUPRÉ LOGISTICS 601-709-8000 TRANSPLACE
www.duprelogistics.com MILS offers metered tank trucks www.transplace.com
337-237-8471 to help chemical shippers use 866-413-9266
Dupré provides transportation capacity more efficiently. This Transplace helps chemical
and site logistics, ranging from lets shippers provide a series of shippers streamline operations
truck transportation to yard multi-stop deliveries in variable and realize greater visibility of
management, for chemical amounts to their customers. In the entire shipment lifecycle,
producers. Its team of industrial addition to transportation and optimizing and tracking
engineers maps the process for logistics services, MILS provides shipments in real time while
chemical shippers to ensure peak supply chain management, providing status updates to
efficiency, with a focus on safety. order fulfillment, inventory customers. Electronic tendering
management, a transload and capabilities provide a clear view
warehouse facility, equipment of shipment tenders. n
leasing, and maintenance.

84  Inbound Logistics • June 2018

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YOUR SUPPLY CHAIN
AND OUR EXPERTISE
DO AMAZING THINGS

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As next-gen supply chain professionals set their career goals, mentoring by seasoned professionals
can help them up their game.
By Sandra Beckwith

PUT ME IN, COACH!


NEXT-GEN LEADERS ARE READY TO PLAY

M
ichael Curran-Hays clearly remembers a challenging
situation early in his career with global management
consulting firm Kepner-Tregoe. He was meeting with
an unusually intense client who squeezed a stress ball so hard
it popped out between his fingers.
“He also asked questions I wasn’t sure I knew how to answer,
so I called my mentor afterwards for advice,” recalls Curran-
Hays, now a global practice leader at the firm. “Being able to
get his input was huge.” It’s one reason he mentors junior col-
leagues today.
Senior supply chain professionals have long mentored less-
experienced colleagues and students informally or through
new-hire orientations or leadership development programs. But,
as the profession has grown and become better defined, the
mentor’s role has become even more important.
The field has expanded significantly beyond basics such as
purchasing, inventory management, fulfillment, and shipping
to include positions ranging from supply chain analyst to sus-
tainability manager. With the increase in job types comes a
more formalized career path that didn’t exist until recently.
“Supply chain is becoming a more mainstream career path
out of school,” says Tisha Danehl, a vice president at staffing
firm Ajilon in Chicago, with experience in filling supply chain
positions. “If you talk to anyone who has been in the field for
more than 10 years, they’ll tell you they fell into it after work-
ing in marketing, finance, or another area. But that is changing.”
The logistics boom and the resulting need to fill more jobs
with qualified applicants has contributed to increasing interest
in supply chain mentoring programs that help give high-poten-
tial but less-experienced employees and students a head start.
Industry associations APICS and the Council of Supply Chain
Management Professionals (CSCMP) offer two of the largest
mentoring programs. Just a few years ago, both began offering
supply chain mentoring programs that pair seasoned pros with
students or members who are new to the field.

June 2018 • Inbound Logistics  87

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As part of BlueGrace Logistics’ Executive Forum program, director-level mentors meet informally with small groups from outside their
area to discuss issues and address questions.

The CSCMP program began mod- Feedback reveals that pairs meet as vice president of New York City
estly without the benefit of technology. needed via email or Skype, and that Transit’s Division of Supply Logistics.
Mentors and mentees complete ques- many pairs try to connect in person at At BlueGrace Logistics in Florida,
tionnaires that association volunteers industry conferences, too. where there are several in-house men-
use to make appropriate matches based toring programs, the process tends to
on desired industry, location, position, GETTING FACE TIME be face-to-face. A senior manager men-
and other factors. The program is cur- When three of APICS mentor Gary tors all new employees at the company’s
rently transitioning to a technology Smith’s student mentees were selected 11 locations as part of their orientation.
platform that will use algorithms sim- as APICS conference scholarship recip- One mentor usually has several men-
ilar to Match.com’s to pair veterans ients last year, he was able to meet with tees from different disciplines who often
with novices. The APICS program has them face-to-face for the first time. meet initially as a group to learn more
always used a technology platform but “That was exciting. Most of the time about the company and its culture
recently implemented a more power- we communicate with email because before eventually transitioning to email,
ful system. they’re all over the world,” says Smith, in-person, or telephone conversations
Their investment in more sophis-
ticated technology underscores the
value of their programs to respec-
tive members.
“Mentorship and career develop-
Coaching vs. Mentoring
ment are so important to APICS, and What’s the difference between coaching and mentoring? The biggest is
we wanted this program to give mem- that mentors are usually senior people who help those with less experience
bers value,” says Kathleen Schroeder, either navigate the company or develop their careers, while coaches help
APICS director of membership. people with a specific challenge. Coaching often includes training, while
“When we saw our program double mentoring is focused on advising.
every year since we started it in 2015, Are you a coach or a mentor? Take this short quiz.
we knew it was something big,” says 1. Do you meet or communicate on a flexible schedule that responds to
Heather Wood, CSCMP director of the other person’s need for information?
conference and event content. 2. Is your goal to help the other person acquire a specific skill?
3. Is there a significant experience or age gap between you and the
PLAYING MATCHMAKER person you’re assisting?
Both organizations provide an infra- 4. Is your relationship based on the fact that you do something very
structure that includes not only a well that the other person wants to learn how to do?
mentor-mentee matching service, but
also resources that help facilitate con- If you answered “yes” to questions 1 and 3 and “no” to 2 and 4, you’re a mentor.
Your role is to help develop the individual’s talent and guide a career path rather than
versations and recommendations for
teach them how to do something specific.
how to structure the mentoring rela-
tionship. The rest is up to participants.

88  Inbound Logistics • June 2018

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Call 855-286-1244 to speak with a rep. or visit
msuonline.com/scmlogistics to learn more.

There is a growing demand for supply chain and logistics experts.


The importance of issues like disaster recovery have been highlighted
by recent events, while new topics such as big data and blockchain
technology now demand attention.

Who will fill the demand?


SPARTANS WILL.

Michigan State University’s supply chain/logistics


graduate and undergraduate degrees are ranked #1 by
U.S. News & World Report. Certificate programs offer
highly focused specialties, including:
• Supply Chain Management and Logistics
• Global Supply Chain Management
• Procurement Management
• Supply Chain Management and Operations
• Integrated Supply Chain Management

Visit msuonline.com/scmlogistics to learn more.

The big data provided by blockchain technology enhances the safety and efficiency of
the food supply chain by allowing us to see an integrated flow for any item, regardless of
where it came from. We can go back to the start or right to the end. This increases safety
by keeping the entire supply chain visible; we’re able to track products through every step
of the process. It also boosts efficiency by helping us follow products all the way to the
consumer, so we know what people are actually buying.

Dr. David J. Closs, MBA, PhD


John H. McConnell Chaired Professor of Business Administration
in the Department of Supply Chain Management at Michigan State University

Powered by Bisk, on behalf of Michigan State University, ©2017 Bisk.


Company, products and service names may be trademarks of their respective owners.

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MSU_BISK_ad1217.indd 1 12/4/17 4:50 PM
a small group of while providing an opportunity to build
people from out- a stronger connection with company
side the mentor’s leadership. We talk about anything and
area. The groups everything,” he says.
of five to six As a mentor, Butler finds the pro-
meet informally gram rewarding.
to ask questions, “Mentoring is truly a two-way
learn more about exchange. I gain valuable insights from
other areas of the mentees through their comments, ques-
c o m p a n y, a n d tions, and ideas, too,” he says.
get feedback. At AIMMS, a supply chain software
Sean Butler, platform provider, mentoring initiatives
t h e c o m p a n y ’s support customers as well as college stu-
chief human dents. In both cases, AIMMS sets the
resources officer, stage for other parties to mentor, then
Michael Curran-Hays (behind table with glasses) mentors
employees at Kepner-Tregoe in part because he appreciates how meets with his steps back.
much mentors helped him early in his career. group of six twice The company is expanding its suc-
each month for cessful in-person customer gatherings
as needed to address specific questions. about 30 minutes. The mentees drive in Europe to the United States, having
After six months, the new employees the discussion topics. hosted its first domestic half-day event
may also enroll in the Executive Forum, “The small group forum empow- earlier this year in the Chicago area. At
which gives those at the director level ers employees and encourages them these executive roundtables, custom-
and above an opportunity to mentor to share new ideas and any concerns, ers meet for peer-to-peer education
and discussion.
“Our customers love that they can
When Mentee Becomes Mentor talk face-to-face and learn from each
other,” says Narasimhan Krishnan,
The Supply Chain and Analytics Student-Executive Mentoring program customer account manager.
at the University of Missouri-St. Louis connects high-potential undergradu- The company also provides access
ate and MBA students with local logistics and supply chain professionals who to its software through the A.T.
serve as industry mentors. Kearney student lab at Carnegie
Started in 2016, the program helps students develop a professional network Mellon University in Pittsburgh.
they can leverage for advice and job search connections. The program connects MBA stu-
Industry professional Masao Nishi, a member of the program’s Supply dents with industry mentors who
Chain & Analytics Advisory Board and a mentor, appreciates having the help them solve problems. AIMMS
opportunity to help students understand the range of career opportunities. extended that collaboration last year
“I enjoying sharing what I’ve learned over the years if it can help to a half-day lab session at an ana-
someone just starting out,” says the semi-retired principal of M. Nishi lytics conference, where it paired
Strategic Advisory. students with the company’s client
One of those who have benefited from the program’s mentoring is Sarah experts who could mentor the stu-
Rizzo, now an export logistics specialist with Anheuser-Busch InBev. Rizzo dents as they solved a problem.
found the program so helpful she’s now looking to pay it forward.
“The experience helped me be better prepared to join the workforce, partic- CULTURE CLUB
ularly as a woman entering a male-dominated field,” Rizzo says. At Kepner-Tregoe, each new
She has since instigated a Supply Chain and Analytics Young Alumni Board employee is assigned a mentor who
mentoring program at her alma mater to help those about to start their helps them understand the com-
career better understand what to expect from an entry-level position. pany and its culture. The mentoring
“The executive mentoring program offers a high-level perspective that’s relationship, which begins about six
helpful,” she says. “Now we’d like to add a peer-to-peer level component.” months into employment, continues
“Those who have just started their careers will be able to share their ‘what for about three months.
I wish I knew sooner’ experiences with students so they have a better sense In addition to participating in that
of what to expect from that first job,” says the program’s faculty advisor, Jill program, Curran-Hays also mentors
Bernard Bracy, supply chain and analytics assistant teaching professor at employees interested in moving into
the university. his field from another part of the
The new program launches in fall 2018. company. “It often starts with a casual
conversation where they’re showing

90  Inbound Logistics • June 2018

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June 2018 • Inbound Logistics  91

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Mentoring and the talent pipeline
At Western Illinois University in Macomb, Illinois, faculty In addition to faculty and student presentations
and students in the supply chain management program at schools, the program includes Jennings’s annual
are informal mentors to area high school students. tour of DOT Foods, a redistributor, with students and
They participate in a high school and community col- their teachers.
lege ambassador program created by Barton Jennings, “So many students want to stay in the area but don’t
professor of supply chain management, to help local think there are any jobs,” he says. “This tour helps us
employers find supply chain talent by introducing younger show them options and gives us a chance to talk to them
students to supply chain job opportunities. about careers.”
“DOT Foods in particular needs more talent every Global food processing company Archer Daniels
year than there are students graduating from local high Midland, headquartered in Decatur, Illinois, supports the
schools,” Jennings says. outreach with $90,000 donated to the program three
Jennings is also interested in recruiting students to years ago.
Western Illinois’s supply chain management program, but “We’re trying to educate high school students about all
the outreach isn’t necessarily geared to that. the potential opportunities out here in this field,” says
“I recently spoke to a group of high school students Kim Ekena, vice president of ARTCO, the company’s trans-
about non-college degree jobs that include truck drivers portation subsidiary.
and forklift operators, which often pay better than they “We have inserted ourselves in the human resources
might expect,” Jennings says. supply chain to get local jobs filled,” Jennings says.

interest in what I do, but if it looks like informal situation, the value of men- Just as importantly, though, is how
they actually want to explore a change toring to the firm with about 100 it allows senior consultants to share
more seriously, I ask them to approach employees spread around the world institutional knowledge in a meaning-
their manager first. If it makes sense for is significant. ful way.
the individual and the company, we’ll “We don’t all work together at a cen- “If I had to sit down and talk with
continue the conversation,” Curran- tral location, so having these sessions you about how to put together objec-
Hays says. where we meet by Skype or in-person tives with measures and standards for a
Whether it’s an official new hire at a client location is huge for relation- supply chain engagement, you would
mentoring relationship or a more ship-building,” he says. be bored,” Curran-Hays says. “But if my
mentee called and asked for help with
a specific proposal, just the process of
working on it together more informally
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Executive recruiter Danehl sees
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“Having a mentoring program helps
Your guide to the global logistics environment, companies continue to keep top supply
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• Make a case for “going global”
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• Involve the whole business able you are.”
• Understand cultural differences It’s also good for the mentors.
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ple move ahead in their careers,” says
• Participate in global disaster relief Smith. “Sometimes they need some-
• Recover from losses/theft body in their life who’s an objective
third party to give them a straight story.
We can do that for them.” n

92  Inbound Logistics • June 2018

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June 2018 • Inbound Logistics  93


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Insights THE LATEST FREE WHITEPAPERS, VIDEOS,
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While raising wages is often presented as the solution to 1. Optimizing Networks to Improve Efficiency
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96  Inbound Logistics • June 2018

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June 2018 • Inbound Logistics  97

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IN THIS SECTION:

3PL – Chemical Logistics

3PL

Echo Global Logistics • www.echo.com


Echo Global Logistics, Inc. (Nasdaq: ECHO) is a provider of technology-
enabled transportation and supply chain management services. Echo
maintains a proprietary, Web-based technology platform that compiles
and analyzes data from its network of more than 30,000 transportation
providers to serve its clients’ needs. Offering freight brokerage and
managed transportation services across all major modes, Echo works to
simplify the critical tasks involved in transportation management.

Interstate Logistics • www.moveinterstate.com


Interstate Logistics provides end-to-end logistics and supply chain solutions
for businesses across the globe. With 6.5+ million square feet of warehousing
and distribution facilities, Interstate’s infrastructure supports the management,
transportation and handling of more than $1 billion of equipment and goods.
Our seamless, customized solutions serve our 10,000+ clients through our
unique asset management, warehousing, and distribution programs.

Transplace • www.transplace.com
Transplace is the leading provider of transportation management services and
logistics technology, helping manufacturers, retailers and distributors optimize
supply chain operations and increase financial performance. Offering a complete
suite of transportation management, strategic capacity, and cross-border and
global trade services, Transplace’s customizable logistics solutions and best-in-
class technology give businesses greater control of their transportation operations
and enhanced visibility of shipments and overall supply chain performance.

CHEMICAL LOGISTICS

C.H. Robinson Worldwide, Inc. • www.chrobinson.com


Founded in 1905, C.H. Robinson Worldwide, Inc. is one of the largest
third-party logistics companies in the world, providing multimodal
transportation, fresh produce sourcing, and information services to more
than 32,000 customers globally, ranging from Fortune 500 companies
to small businesses in a variety of industries. For more information
about our company, visit our website at www.chrobinson.com.

98  Inbound Logistics • June 2018

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IN THIS SECTION:

Chemical Logistics

CLX Logistics • www.clxlogistics.com


CLX Logistics is a global provider of comprehensive logistics management,
technology, and supply chain consulting services to a broad base of industry
verticals. From chemical and energy to manufacturing, retail, agriculture,
automotive, and heavy haul, we help clients in nearly every industry to realize
sustainable supply chain value by employing a mix of managed services,
on-demand global TMS technology, and comprehensive transportation
management services to improve performance and reduce cost. CLX Logistics
is dedicated to solving its customers’ most vital logistics challenges.

Dupré Logistics • www.duprelogistics.com


With specific emphasis in the chemical, consumer products, and
beverage industries, Dupré’s unique solutions provide expertise in
dedicated fleets, transportation management/brokerage, materials
handling, and reverse logistics. Dupré works to understand your
business and measure how our system meets your expectations.

Keenan Advantage Group (KAG) • www.kaglogistics.com


As North America’s largest provider of liquid bulk transportation and logistics
services to the petroleum, chemical, merchant gas, and food industries,
KAG Logistics works closely with organizations of all sizes to develop
effective logistics solutions. KAG has experienced people, proven processes,
technology, and assets to take your business where you want to go.

Landstar Systems, Inc. • www.landstar.com


Landstar’s network of independent sales agents and transportation capacity
providers offers greater flexibility and a local presence that has a global
reach. The Landstar network is unmatched in the industry. With more than
1,100 independent agents, 9,000 leased owner operators, 14,000 trailers
and 44,000 other available capacity providers, we have the flexibility
and experience to find a solution to your transportation challenge.

June 2018 • Inbound Logistics  99

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IN THIS SECTION:

Chemical Logistics – Cold Storage

CHEMICAL LOGISTICS

Miller Intermodal Logistics Services • www.mils3pl.com


Miller Intermodal Logistics Services is a proven leader in logistics and
transportation management serving the United States, Canada and Mexico.
Its key offerings include bulk tank truck transportation, dedicated fleet
operations, supply chain management, transload distrubution, and equipment
leasing. MILS, Inc. provides customers with exemplary delivery performance
while maintaining a strong commitment to safety and public responsibility.

Rinchem Company, Inc • www.rinchem.com


Rinchem is a leading provider of chemical management services to the
semiconductor, chemical manufacturing, and pharmaceutical industries.
We are an asset-based logistics company that streamlines customers’
supply chains, resulting in increased efficiencies and reduced costs.
Since 1976, Rinchem has provided comprehensive services including
chemical warehousing, chemical and waste transportation, waste stream
management, and safety and regulatory training and consulting.

WSI (Warehouse Specialists, LLC) • www.wsinc.com


Reliability is everything. At WSI, that has been our approach to integrated
logistics and supply chain solutions for over 50 years. Our promise of Condition,
Count & Time ensures accurate, timely, and sound performance—every time.
Recognized as one of the top 3PL providers in North America, WSI delivers
custom solutions for warehousing/distribution, fulfillment, transportation,
import/export, information technology, and customer support services. Depend
on WSI for increased efficiency, reduced costs, and absolute reliability.

COLD STORAGE

CF Cold Storage • www.cfcoldstorage.com


CF Cold Storage is a third-party logistics provider (3PL) in Haverhill, MA and
offers integrated refrigerated logistics and distribution services for refrigerated
foods. Our facility offers 107,000 square feet of expandable refrigerated
warehouse space; fully racked with a modern inventory control WMS system,
EDI capabilities, and customer interface. We offer transportation services
that include LTL pool consolidation, full trucking and brokerage services,
shuttle services and cross-docking. Our team has over 30 years of experience
and can develop customized logistics and transportation solutions.

100  Inbound Logistics • June 2018

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IN THIS SECTION:

Freight Forwarding – Project Logistics

FREIGHT FORWARDING

Alliance Shippers • www.alliance.com


Delivering The Perfect Shipment® from pick up to destination. With
operating facilities in the United States, Canada and Mexico, Alliance
Shippers Inc. combines excellent customer care with state-of-the-art
rail, highway, ocean and air transportation solutions. Additional services
include warehousing, distribution, customs clearance, equipment/driver
leasing and expedited transportation. For cost-effective logistic solutions
tailored to your company’s exact needs, contact Alliance Shippers Inc.

HAZMAT

Continental Expedited Services • www.continentalexpedited.com


Continental Expedited Services (CES) is one of the largest and fastest-
growing providers of premium transportation services in North America,
accommodating a full range of transportation solutions with one-call,
door-to-door services to and from almost any location in the world. CES’s
24-hour service center can provide, within minutes, a competitive price
and response time for your time-sensitive freight. When you have a critical
shipping emergency, call CES for the most reliable expedited service
throughout the United States, Mexico, Canada, and now around the world.

PORTS

South Carolina Ports Authority • www.port-of-charleston.com


In a world where speed to market, seamless processes, and flexibility are essential,
South Carolina’s ports deliver. Home to the Southeast’s deepwater port, the
South Carolina Ports Authority is the industry leader in productive operations,
big ship handling, efficient market reach, and environmental responsibility.

PROJECT LOGISTICS

Interstate Logistics • www.moveinterstate.com


Interstate Logistics provides end-to-end logistics and supply chain solutions
for businesses across the globe. With 6.5+ million square feet of warehousing
and distribution facilities, Interstate’s infrastructure supports the management,
transportation and handling of more than $1 billion of equipment and goods.
Our seamless, customized solutions serve our 10,000+ clients through our
unique asset management, warehousing, and distribution programs.

June 2018 • Inbound Logistics  101

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IN THIS SECTION:

Retail Logistics – Sustainability

RETAIL LOGISTICS

Performance Team • www.performanceteam.net


Performance Team (PT) is an industry-leading third-party logistics company
with nearly 30 years of experience in warehousing, distribution, consolidation
and transportation. PT has 12 domestic hubs (and nearly 7 million square
feet of space) strategically located near major ports, interstate highways,
and intermodal rail lines, allowing us to provide the retail and manufacturing
industries with flexible B2B and B2C solutions for the movement, handling,
and distribution of goods. PT also offers a full suite of retail, wholesale,
e-commerce, and omni-channel distribution and transportation services.

SUSTAINABILITY

Crane Worldwide Logistics • www.craneww.com


Crane Worldwide is a full-service air, ocean, trucking, customs
brokerage and logistics company built on the belief that we challenge
the norm through our five Crane Worldwide value propositions: Our
People, Our Service Execution, Our Information Technology, Our
Compliance & Quality Programs, and Our Account Management.

DSC Logistics • www.dsclogistics.com


With experience, knowledge, and IT — as well as supply chain capabilities
that are adaptable, versatile, and focused on changing customer needs —
DSC Logistics helps companies reach their business goals. DSC provides
supply chain analysis and design, strategic solutions-based consulting,
systems integration, process improvement, and management of logistics
operations such as warehousing, transportation, packaging, and fulfillment.
In today’s business environment, filled with rapid and unpredictable
change, DSC manages change and information in the supply chain by using
a strategy called sense-and-respond and by being ready for anything!

Lynden • www.lynden.com
Over land, on the water, in the air—or in any combination—Lynden has
been helping customers solve transportation problems for almost
a century. Operating in such challenging areas as Alaska, Western
Canada and Russia, as well as other areas around the globe, Lynden
has built a reputation of superior service to diverse industries.

102  Inbound Logistics • June 2018

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IN THIS SECTION:

TMS – Warehousing

Ruan • www.ruan.com
With Ruan, you can take advantage of door-to-door shipping solutions without
the hassles and overhead associated with owning and operating your own
fleet of trucks. We have more than 5,200 employees operating, servicing and
coordinating some 3,400 power units and 5,600 trailers out of more than 100
locations throughout the continental United States. But you get more than just
drivers and equipment — we become an extension of your team, advocating
for your bottom line. Find out why the right partner can drive costs out of
your supply chain — call 866-RUAN-NOW or visit our Web site — ruan.com.

TMS

nVision Global • www.nvisionglobal.com


nVision Global is a leading international freight audit, payment, and logistics
management solutions provider. With locations in North America, Europe, and
Asia, our staff is fluent in more than 25 languages, and processes and pays freight
invoices from more than 190 countries worldwide. Over the years, our customers
have come to rely on our prompt, accurate Sarbanes-Oxley-compliant freight
payment services, as well as our leading-edge information management analytical
tools including global mapping, graphing, benchmarking, modeling, and network
optimization analysis to help them manage their overall supply chain costs.

TRUCKING

Old Dominion Freight Line • www.odfl.com


Old Dominion Freight Line is a less-than-truckload carrier providing
complete nationwide service within the continental United States. Through
its four product groups, OD-Domestic, OD-Expedited, OD-Global, and
OD-Technology, the company offers an array of innovative products and
services to, from, and between North America, Central America, South
America, and the Far East. The company also offers a broad range of
expedited and logistical services in both domestic and global markets.

WAREHOUSING

Interstate Logistics • www.moveinterstate.com


Interstate Logistics provides end-to-end logistics and supply chain solutions
for businesses across the globe. With 6.5+ million square feet of warehousing
and distribution facilities, Interstate’s infrastructure supports the management,
transportation and handling of more than $1 billion of equipment and goods.
Our seamless, customized solutions serve our 10,000+ clients through our
unique asset management, warehousing, and distribution programs.

June 2018 • Inbound Logistics  103

Got 3PL challenges?  Get free expert solutions at inboundlogistics.com/3pl


INBRIEF NEW SERVICES & SOLUTIONS

Maersk Line launched a transatlantic


service, expanding its coverage in
Canada and Europe. The new weekly
service is a five-vessel rotation
stopping in Salerno and La Spezia
(Italy), Fos-sur-Mer (France), Algeciras
(Spain), Montreal and Halifax (Canada),
and Valencia (Spain).

// Services //
SEKO Logistics expanded its White To accommodate intermodal rail Crowley Logistics opened an
Glove delivery offering by adding a cargo volume growth, South expanded warehouse in Miami,
full-assembly, nationwide service for Carolina Ports Authority (SCPA) consolidating the company’s Medley
heavyweight and bulky business- opened Inland Port Dillon, its and Doral facilities in Florida. The
to-consumer e-commerce products. second inland facility in the state. 180,000-square-foot warehouse
The new option includes installation, SCPA expects Inland Port Dillon features more than 5,000 pallet
setup, syncing smart devices, and to convert an estimated 45,000 rack positions and 95 container
removing packaging. Supported container movements from truck to parking spots along with a single-
by a 24/7 customer service center, rail in its first year of operation. direction truck flow to prevent
SEKO monitors deliveries around cross-traffic.
the clock.

104  Inbound Logistics • June 2018

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Pilot Freight Services, a provider  Honeywell Intelligrated, a provider
of transportation and logistics of materials handling solutions and
services, expanded its El Paso, software, launched TechSight, a real-
Texas, station to 40,000 square time augmented-reality maintenance
feet. Receiving authorization as a solution for distribution centers.
Foreign Trade Zone, the Pilot facility Designed to reduce repair time and
runs new inventory and security operational disruption, it leverages
systems to document and track smart glasses and a videoconferencing
products and materials held on site platform to connect on-site technicians
until they are ready to be shipped to with remote technical support experts,
Mexico. enabling live service instruction via two-
way audio and visual communication.
Expanding on its freight audit and
payment and TMS offerings, CTSI-
Global launched a full managed
services solution. The new solution // Transportation // DHL Global Forwarding, the air
gives shippers visibility through and ocean freight arm of Deutsche
in-transit tracking, including United Airlines and Lufthansa Post DHL Group, deployed a second
proactive visibility to all exceptions Cargo launched an air cargo dedicated Boeing 747-400 freighter
such as late deliveries and joint venture to manage sales to connect the United States,
damaged freight. It also provides and booking of standard and Europe, and Asia. With a capacity
expected delivery date and time, express shipments on routes of 100 tons, the aircraft provides
for improved resource planning. between Europe and the United freight space on the transpacific
States. The carriers will expand the route from Shanghai Pudong
geographical scope in the coming Airport to Cincinnati, from where it
months. returns to Incheon, South Korea.

A new Gold Star Line (GSL) service Bansar, a freight forwarder in


now operates on a weekly rotation, China, now provides rail freight
providing a direct connection service from China to Europe,
between China, South East Asia, Russia, and Central Asia. The new
and South Africa. The SA1 service service includes customs clearance,
has a 63-day rotation comprising loading, inspection, and packaging,
eight 3,300-TEU vessels. GSL also and offers shippers three transport
offers intermodal services to inland options: FCL, LCL, and rail.
areas of South Africa, primarily via
Durban.
 Night Tech Gear, a creator of // Technology //
industrial shoe lighting systems, Supply chain solutions provider
launched Night Shift Shoe Lights, Panalpina added Querétaro, FR8 Revolution, creator of the
designed to help workers identify Mexico, to its charter network, FR8Star.com marketplace for
potential hazards and reduce which also connects Mexico City shippers and open deck carriers,
workplace falls. The product and Guadalajara with its airfreight unveiled a Price Lock feature
has two ultra-light shoe lights gateway in Huntsville, Alabama. that allows shippers to obtain a
illuminating the space ahead of the Panalpina’s 747-8F operates this guaranteed fair market rate and
worker, while rear-facing lights keep route to Querétaro International immediately book freight for legal
the wearer visible to other workers
Airport. and permitted flatbed and open
or vehicles from all angles.
deck freight.

June 2018 • Inbound Logistics  105

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INBRIEF

 Artificial intelligence company and // Products //


robot maker Geek+ launched the
P800 picking robot equipped with laser Pallet supplier Litco International
navigation technology that allows it to introduced the Exporter, an
follow floor markings or navigate point to engineered molded wood pallet
point. The P800 has a maximum load of providing a sustainable unit-load
more than 2,200 pounds and can operate solution for one-way and export
in temperatures ranging from -22 degrees shipping. Nail-free and with curved
to 122 degrees F, making it ideal for corners, Exporter pallets are
handling refrigerated goods or working in approved for export as-is per ISPM
non-air-conditioned spaces. 15a.

AeroVironment, a supplier of
TMS software provider 3Gtms PayCargo, an online payment charging solutions for electric
teamed up with 10-4 Systems, a platform and provider of electronic forklifts, introduced PosiCharge
supply chain visibility technology invoicing and settlement solutions, ProCore OC, the newest addition
provider, to expand visibility and and Gemini Shippers Group, an to its intelligent charging family.
automation capabilities for its association of importers and It charges all forklift batteries,
users. The partnership lets 3Gtms exporters, unveiled an integrated regardless of type, chemistry,
customers track freight through a payment solution for shippers. The voltage, or size.
carrier integration or using 10-4’s new solution allows Gemini Shippers
mobile tracking solution. Group members to view, audit, and Rugged mobile device maker
pay freight invoices directly from its Xplore Technologies introduced
TMS provider Kuebix introduced platform. the Xplore M60, a 6-inch handheld
SupplierMAX, a program designed Android device for materials
to increase the efficiency of BDP International, a logistics handlers. Weighing 0.81 pounds, the
inbound freight operations. With and transportation services M60 is easy to grip for long periods.
SupplierMAX, companies manage company, updated BDP Smart It’s available with a built-in barcode
all or a portion of their inbound Tower to streamline visibility scanner.
freight and increase warehouse and maintenance of ISO tanks.
and distribution center efficiency The improved platform makes The latest solution from forklift
through strategies such as compliance easier and offers a maker The Raymond Corporation
consolidating LTL shipments into precise view of available assets increases productivity by weighing
full truckloads. when they are approaching a product directly on the walkie
warning stage where inspection is pallet fork. The Raymond Model
required. 8210, with an integrated mobile
weigh scale, is available in two
configurations: a legal-for-trade
configuration in adherence to
the National Type Evaluation
Program (NTEP) or in a non-NTEP
configuration.

 Plastic pallet maker One Way Solutions introduced a stackable light-


duty three-runner plastic pallet, offering high capacity, low tare weight, and
reinforced perimeter for increased impact resistance. The 40-inch by 48-inch
pallet weighs 18 pounds and provides 2,800 pounds of dynamic capacity.

106  Inbound Logistics • June 2018

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NEW SERVICES & SOLUTIONS

Rite-Hite’s redesigned RHV-4100  Reflective insulation


Vertical-Storing Hydraulic Dock maker TLX Cargo
Leveler helps protect workers from introduced a cargo
injury and improves efficiency and cover/thermal blanket
security at the loading dock. With that incorporates phase
this interior dock configuration, change material (PCM)
trucks back up to the loading dock into its structure to offset
with their doors closed. When they temperature spikes when
are secured at the dock, the doors the pallet is off-loaded onto
are then opened into the building, the tarmac at hot locations.
ensuring cold-chain integrity. TLX PCM cargo covers
have an outer surface that
reflects 97 percent of
thermal radiation.

in Partnership with

Multimodal Americas is a new event for the North American Supply Chain,
Logistics and Transportation industries alongside TIACA’s Air Cargo Forum
In one huge hall - over three action packed days - with
meetings, conferences, 1-2-1s, over 300 exhibits, networking
events and site visits - ACF and Multimodal Americas will be
the place to be in fall 2018.
Sponsors

Run by Clarion who have a wealth of expertise in this market - running


over seven annual events worldwide, including the flagship Multimodal UK.

WWW.MULTIMODALAMERICAS.COM
T: +1 610 486 6525 T: +44 (0)20 7384 7968 T: +44 (0)20 7384 7962
E: [email protected] E: [email protected] E: [email protected]

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June 2018 • Inbound Logistics  107

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CALENDAR YOUR LOGISTICS
DATEBOOK

Midwest Association of Rail Shippers SEPT 30 – OCT 3  Nashville, Tenn.

2018 Summer Council of Supply Chain Management

JUL Meeting
Professionals (CSCMP)

16
CSCMP EDGE Supply Chain
mwrailshippers.com  |  Lake Geneva, Wis.  |  JUL 16-17, 2018 Conference & Exhibition
cscmpedge.org
AUDIENCE: Rail shipping executives
FOCUS: Railroad operating practices; resolving AUDIENCE: Supply chain management
transportation and freight car supply issues; professionals
innovations in transportation and legislative matters; FOCUS: Real-world strategies to maximize
the North American oil & gas and petroleum supply and transform supply chains; global
chain and its latest impact on rail supply chain best practices; increasing
visibility; integrated business planning

CONFERENCES SEPT 24-26  Chicago, Ill.


OCT 16-18  Toronto, Canada
PARCEL
Clarion Events/Urban Expositions
SEPT 11-12  New Orleans, La. PARCEL Forum 18 Multimodal Americas
IWLA parcelforum.com
multimodalamericas.com
IWLA Technology & AUDIENCE: Supply chain professionals
AUDIENCE: Stakeholders in the North
Operations Solutions for FOCUS: Evaluating distribution center
American supply chain, logistics, and
Warehousing Conference efficiencies; the labor market and
transportation sector
its impact on DC site selection; how
bit.ly/IWLAtech FOCUS: How blockchain will deliver smart
e-commerce companies can succeed
AUDIENCE: Warehouse IT and operational
and secure su pply chains; adapting to
in fulfillment; parcel optimization for
professionals warehouse robotics and the changing face
small- and mid-sized companies; effective
FOCUS: Addressing operational challenges
of retail; exploring the possibility of a fifth
analytics for controlling your spend
in the warehouse; increasing warehouse industrial revolution
productivity and efficiency; measuring
SEPT 24-27  Philadelphia, Pa.
and improving return on investment and OCT 22-24  Nashville, Tenn.
International Quality & Productivity Center
tracking new efficiencies Worldwide Business Research
Cold Chain Global Forum 2018 Consumer Returns
coldchainglobalforum.com
SEPT 11-12  New Orleans, La. consumerreturns.wbresearch.com
IWLA AUDIENCE: Cold chain professionals
AUDIENCE: Reverse logistics and returns
FOCUS: Adapting cold chain processes
IWLA Safety & Risk management professionals
and increasing collaboration to satisfy
Conference new user and regulatory requirements;
FOCUS: Trimming costs through return
bit.ly/IWLAsafety reduction strategies and optimizing the
building an agile and flexible supply
reverse supply chain; partnering pre-
AUDIENCE: Warehouse managers, safety chain while minimizing risk; creating
sale to reduce returns; ensuring brand
managers, and operations personnel with supply chain synergy across the global
integrity while utilizing secondary market
risk responsibility marketplace
alternatives and channel partners;
FOCUS: Best practices and strategies to
identifying and preventing return fraud
minimize on-the-job risks and improve SEPT 30-OCT 2  Chicago, Ill.
the bottom line; assessing the strengths American Production and Inventory
and weaknesses of safety protocols; HR Control Society SEMINARS & WORKSHOPS
trends and challenges; creating a culture
of safety; OSHA updates
APICS 2018 NOV 15-16, 2018  Cambridge, Mass.
apics.org/annual-conference
MIT Sloan Executive Education
AUDIENCE: Supply chain, operations, and
SEPT 16-18  Long Beach, Calif. Supply Chain Strategy
logistics management professionals
Intermodal Association of North America
FOCUS: Best practices to drive supply
and Management
Intermodal Expo 2018 chain innovation; key strategies to create bit.ly/MITsupplychainstrategy
intermodalexpo.com more sustainable, strategic, and value- AUDIENCE: Logistics and supply chain
AUDIENCE: Intermodal freight stakeholders driven supply chains; optimization in professionals
FOCUS: The future of intermodal terminals; complex manufacturing operations; FOCUS: The next big trend in supply chain
dealing with tight trucking capacity; building the next-gen high-technology strategy, and the key skills required to be
intermodal network capacity in the face supply chain; how supply chain successful; guidelines for making strategic
of unpredictable demand; what brokerage management is being transformed by sourcing and make-buy decisions;
means for intermodal; the implications of blockchain integrating e-business thinking into supply
the next generation of smart equipment chain strategy and management
on intermodal

108  Inbound Logistics • June 2018

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SUPPLY CHAIN SOLUTIONS

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Cloud-based software as a Service (SaaS)

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3PL Staffing Firm


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• CEO’s, COO’s, CFO’s, CIO’s, • Carrier Sourcing Managers
CMO’s, CLO’s • Freight Brokerage / Branch Managers
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Logistics
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[email protected] • www.paradoxsci.com

June 2018 • Inbound Logistics  109


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RESOURCE 06.18
CENTER INBOUND LOGISTICS WORKS FOR YOU!

3PLs Michigan State University Online pg. 89


CaseStack pg. 21 msuonline.com/scmlogistics 855-286-1244
www.casestackconsolidation.com 855-638-3500
Washington University in St Louis pg. 91
Crane Worldwide Logistics pg. 30, 33 www.wustl.edu 314-935-9494
www.trycraneww.com 832-925-3132
Western Illinois University pg. 93
DSC Logistics Cover2 www.wiu.edu/SCMDay 309-298-1535
www.dsclogistics.com 847-635-4952

Echo Cover 4
Chemical Logistics
www.echo.com/vote 888-514-8376
C.H. Robinson pg. 85
Lynden pg. 3 www.chrobinson.com 800-323-7587
www.lynden.com 888-596-3361
For a specific CLX Logistics pg. 81
response, contact Performance Team pg. 7 www.CLXLogistics.com 800-288-4851
these advertisers www.performanceteam.net 866-775-5120
directly. Please tell Dupré Logistics pg. 75
them you saw their ad in RR Donnelley’s DLS Worldwide pg. 9 www.duprelogistics.com 866-686-5478
Inbound Logistics. www.dls-ww.com 877-744-3818
Kenan Advantage Group pg. 77
Ruan pg. 11 www.kaglogistics.com 877-203-3283
For faster service, www.ruan.com 866-782-6669
go online: Landstar pg. 73
inboundlogistics.com/rfp Yusen Logistics pg. 43 www.landstar.com 877-696-4507
www.yusen-logistics.com 800-414-3895
Miller Intermodal Logistics Services pg. 79
www.MILS3PL.com 601-709-8000

Associations Rinchem pg. 69


SOLE - The International www.rinchem.com/inbound.aspx 888-3PL-CHEM
Society of Logistics pg. 92
www.sole.org Transplace pg. 32, 71
www.transplace.com 866-413-9266

Career Development/Education
APICS pg. 93 Cold Storage
www.apics.org 800-444-2742 CF Cold Storage pg. 29
www.cfcoldstorage.com 978-912-7480
Cal Poly pg. 91
www.gradbusiness.calpoly.edu 805-756-2637

JobsinLogistics.com pg. 94
Events
www.jobsinlogistics.com 877-562-7678
CSCMP Annual Conference pg. 35
www.cscmpedge.org 630-574-0985

110  Inbound Logistics • June 2018

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Use our Resource Center and let the information you need find you.

Multimodal Americas pg. 107 Industrial Products Platform


www.multimodalamericas.com 610-486-6525 Thomas pg. 17
www.thomasnet.com 800-699-9822
Parcel Forum pg. 15
www.parcelforum.com 866-378-4991
Site Selection
Pharr International Bridge pg. 13
Intermodal www.pharrbridge.com 956-402-4660
Alliance Shippers pg. 44
www.alliance.com 800-222-0451
Trucking
Old Dominion Freight Line pg. 5
Ports www.odfl.com 66-637-7333
South Carolina Ports pg. 83
For a specific
www.scspa.com 843-723-8651 response, contact
these advertisers
directly. Please tell
INDEX them you saw their ad in
Inbound Logistics.
ADVERTISER PAGE ADVERTISER PAGE
Alliance Shippers 44 Miller Intermodal Logistics Services 79 For faster service,
APICS 93 Multimodal Americas 107 go online:
inboundlogistics.com/rfp
C.H. Robinson 85 Old Dominion Freight Line 5

Cal Poly  91 Parcel Forum 15

CaseStack 21 Performance Team 7

CF Cold Storage 29 Pharr International Bridge 13

CLX Logistics 81 Rinchem  69

Crane Worldwide Logistics 30, 33 RR Donnelley’s DLS Worldwide 9

CSCMP Annual Conference 35 Ruan 11

DSC Logistics Cover2 SOLE - The Int’l. Society of Logistics 92

Dupré Logistics 75 South Carolina Ports 83

Echo Cover 4 Thomas 17

JobsinLogistics.com 94 Transplace 32, 71

Kenan Advantage Group  77 Washington University in St Louis 91

Landstar 73 Western Illinois University 93

Lynden 3 Yusen Logistics 43

Michigan State University Online 89

June 2018 • Inbound Logistics  111

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LOGISTICS OUTSIDE THE BOX

THE LAST MILE


The Bionic Warehouse Worker
Brace yourself for some mechanical marvels that could punch up DC and factory
productivity. Fighting gravity, strain, and injury, these mechanized support systems give
warehouse and assembly line workers near-superhero strength and Iron Man-like stamina.

Bold Shoulder
shoulderX is an industrial
arm exoskeleton developed
by US Bionics in collaboration
with UC Berkeley. shoulderX
reduces gravity-induced
forces at the shoulder level,
enabling the wearer to
perform chest- to ceiling-
level tasks for longer
durations and with less
effort. It can be tuned for
different levels of support
and can help with tasks
Firm Grasp
such as picking, inspecting,
paneling, and overhead With potential uses in
assembly. materials handling and
Put Your Back Into It manufacturing, the
E x o sk e l e t o ns — e x t e r nal RoboGlove increases the
braces providing lower-back wearer’s strength and
Instantly Seated endurance. Researchers at
support—are already being
put to work by logistics provider Extra-long warehouse shift? No problem. Swiss company Noonee the NASA Johnson Space
GEODIS at its warehouse in developed the Chairless Chair, an exoskeleton for workers’ legs Center, in collaboration
Venlo, the Netherlands. Using that lets them sit at the push of a button. The aluminum and with General M otors,
a spring system that acts as a carbon fiber exoskeleton weighs about 4 pounds, so it doesn’t designed and developed
counterweight, the exoskeletons impede workers’ movements. When they want to sit, the chair this lightweight robotic
supp o r t w o r ker s’ lo w er stiffens, giving them a spot to rest wherever they are, keeping glove with pressure sensors
backs as they lift and carry their backs straight and saving on the floor space that a chair that give users a sense of
objects during pick- and-pack would have taken up. touch or haptic feedback.
activities. When the employee The glove is compact and
bends over, the spring pushes self-contained; actuators,
back, reducing the load on the pressure sensors, and
back by 40 percent. While this synthetic tendons are
exoskeleton is passive, GEODIS embedded.
is looking into an active version
that would support employees’
arms as well.

112  Inbound Logistics • June 2018

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October 22 - 24, 2018 Sheraton Grand Nashville, TN
Reducing Returns, Unleashing Profitability

Consumer Returns is the premier conference for Reverse Logistics


and Returns Management professionals. From consumer electronics,
fashion and apparel, furniture and appliances, CPGs, even food and
drug – whatever your industry. if you’re involved in the returns of your
company’s products, you belong at Consumer Returns.

Register TODAY and get 20% off with code CR18INBOUND!


Visit www.consumerreturns.wbresearch.com for more information.
*Please note that discount applies only to Retailers/OEMs/Manufacturers/Resellers/Remanufacturers

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