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For the CEO accustomed to surfing the Net, venturing onto the turf of his local intranet or extranet may seem all too familiar. After all, the language, the icons, the […]

Case Corporation's rejuvenation required a company transformation. Logistics has been at the center of it. When Case Corporation started down the road toward a financial turnaround, it decided it had [...]

General Motors Service Parts Operations (SPO) is contracting logistics to Schneider Logistics Inc. (SLI). SPO finds it difficult to maintain a mix of workforce skills and be update on the latest information tools in logistics. SLI views parts distribution as a career path. The relationship between SPO and SLI is a partnership. Joint teams are being created to re-engineer solutions. The key element in the arrangement is SPO's access to SLI's information systems., GM thinks Schneider can do a better job running GM's parts distribution network than the auto giant can. The reasons: Schneider's specialized personnel and information systems. When you're in the [...]

The new generation of logistics graduates needs to undergo training as they enter the real-world transportation. Since these new logistics professionals do not yet possess the expertise of older traffic managers in the areas of class rates, tariffs, liability, overcharges and regulations, operations may be affected during the transition. New graduates will find it difficult to step into the shoes of the older generation, as they were trained in a multidisciplinary process that covers transportation and distribution, inventory control, production costs, strategic planning and customer service., Corporations have cut back on training logistics graduates and instead rely on them to step right into most any transportation job. But are they ready for the real world? Gone [...]

For U.S. companies serious about doing business in Mexico, be warned: There are one or two things to get used to before cashing in. Foot Locker, the well-known U.S. sneaker [...]

U.S. Customs expects you to secure your cargo against smuggling. If you don't, you're going to pay the price. In July, U.S. Customs paid a visit to a Miami airfreight [...]

International Freight Systems (IFS)' commendable attitude of providing its customers' every need, no matter how unreasonable, won for it the Supplier Excellence Award from Texas Instruments (TI). According to Tom Foster, the Group Logistics Manager for TI's Custom Manufacturing Services, IFS has granted every request made by TI, despite their unreasonableness. IFS owner and Pres. George Schmid, however, says the award mirrors the company's complete devotion to its clients., International Freight Systems' employees have missed a few Thanksgiving dinners and logged many hours of overtime in earning a supplier excellence award from Texas Instruments. What does it take for [...]

Haggar Corp. needed the right partner to get into Europe. It found one that gave it a turnkey distribution operation. With an impressive 20% share of the American market for [...]

The rapidly growing footwear and apparel maker revamps its supply chain to handle burgeoning sales and geographic diversity. In 1979, an Italian distributor walked into The Timberland Company and expressed [...]

The federal government should exert more effort in promoting intermodalism. The observation was made by Michael P. Huerta, currently serving as office of intermodalism director of the US Transportation Dept. Huerta likewise added that an integrated framework must be worked out between public sector investments and private sector providers. To do so, Huerta pressed for the need to reauthorize the Intermodal Surface Transportation Efficiency Act, which discusses the amount of government funding for intermodal infrastructure projects., DISTRIBUTION caught-up with Michael Huerta at the Intermodal Association of North America meeting in San Diego. Following his prepared remarks, the intermodal czar spoke to us about the future of [...]

Housing manufacturers in the US have sought to expand their overseas markets in recent years because of an increasing demand for housing units in different parts of the world. In addition, overseas housing projects usually involved a large number of units which would mean better profits and asset utilization. Housing manufactures for overseas projects may be shipped out as knock-down houses, semi-collapsed modules or panelized and log housing. Panelized houses have been found to be most transport-efficient., Bridging the gap between supply and demand around the world Mexico is embarking on a massive housing program. A flood in Yemen causes an emergency demand for new housing. Four-hundred [...]

The logic for much of the original development of the application service provider, or ASP, model for technology delivery revolved around its ability to furnish sophisticated enterprise applications to smaller [...]

With the ascendance of computers networks, the IT market-research industry has grown from a kind of nerdy niche into a big business. Nowhere is that more apparent than at the […]

One bright morning, a CEO wakes up and realizes he is not in the business he thought he was in. That's what happened to Uwe Swientek, chief executive of BMG […]

Health care cost inflation has become one of the top issues for US companies, even after national health care reform failed politically. The attempt at reform by President Clinton focused the nation's attention on the growing problem, and companies now realize that they must act or it will become a political issue again. Health benefits are five times as expensive in 1995 as they were in 1986, and the most popular method of reducing such costs has become managed care., MANAGED HEALTH CARE IS DEFINITELY THE TRENT OF THE FUTURE. THE YOUNGER GENERATIONS OF WORKERS ARE ALREADY USED TO ITS BENEFITS AND LIMITATIONS. 'National health care reform may no longer [...]

The air cargo industry is expected to experience sustained growth as more shippers realize the advantages in using this form of shipping. During 1st qtr 1995, even as the economy slowed, the domestic industry posted a 3% gain, while growth in Asia was an impressive 27.1% and Europe posted a 9.5% gain. Only Africa did not register any gain, posting a negative 6.8%. Worldwide industry growth in 1994 was 11%., Earlier this year, it looked like the air cargo industry was going to defy the economic odds. In the first quarter, the industry in the US posted strong growth numbers, [...]

Cargo theft has become rampant especially in South Florida due to the NAFTA. Lack of manpower to carry out law enforcement has been reported to be the main reason for the failure in stopping this industrial crime. The volume of products stolen and lack of recovery indicates cargo theft to be a well-organized conspiracy. High value goods such as furs, perfumes and apparel are the most attractive to cargo thieves. The National Cargo Security Council is one organization which aims to fight cargo thefts., CARGO THEFT IS ENDEMIC AND ON THE RISE. BUT THERE IS A THING OR TWO THAT SHIPPERS CAN DO ABOUT IT. In Mexico, cargo thieves telephone the intended consignees to [...]

The expected deregulation of intrastate shipping is expected to increase the growth of large shipping companies and see the disappearance of many smaller companies. Shippers hope to obtain better rates by using fewer carriers and the carriers are enabled to provide better services at lower rates when they acquire small intrastate carriers. Following interstate deregulation in 1980, the 10 largest US carriers boosted their market share of approximately 5.% to 13% by 1993., Deregulation killed companies unable to compete but left the industry stronger as a whole. The advent of intrastate deregulation will see the demise of still more small carriers even as [...]

Copeland Corp.'s transportation department has played a major part in cost reduction; reducing work-in-process inventory by 90% and increasing inventory turns, and providing economical and customer-satisfying domestic and global delivery of products. Through face-to-face and electronic communications with suppliers, production and logistic personnel, the transportation department has provided efficient service and cost savings., Copeland Corporation's logistics department says it is not to be outdone by the company's world-class reputation for manufacturing quality and technological innovation. The Sidney, OH-based company is the world's largest [...]

US West has chosen CF MotorFrieght, Menlo Park, CA, as its national LTL carrier, one of four primary carriers chosen in different shipper areas, such as national small package delivery and national flatbeds. The aim was to reduce the overall number of carriers to develop better relationships with several, which were picked on the basis of their high quality in-house programs, the frequent use of high technology, and the ability to create integrated logistics strategies., US WEST, the Denver-based regional bell operating company that covers fourteen states west of the Mississippi, decided it had to revamp its transportation and logistics operations to better serve its [...]

Argonavis Trading Inc. engages in an unusual business: it disassembles Mitsubishi trucks for export to Brazil. The Miami-based trading firm imports the trucks from Japan and has them disassembled in foreign trade zones. The trucks are then reassembled in Brazil. This is a profitable business because Brazil imposes tariffs of 100% on imported vehicles, but only 25% is levied on imported parts. The project has realized tariff savings of $5 million., Disassembling trucks for export may seem ridiculous...until you find out how much money Argonavis Trading saved doing just that in a foreign trade zone. Under ordinary circumstances, it's not practical [...]

GTE Supply embarked on a campaign to reduce its transporation costs by consolidating its freight handling processes. GTE Supply is the logistics arm of the $27 billion firm GTE, the largest US local telephone firm. GTE Supply's transporation costs reached $84 million in 1993, prompting its management to form a task force to address the problem of streamlining. Aiming for daily savings of $40,000, GTE implemented a pilot crossdocking project to reduce cycle time, number of shipments and damage claims. GTE realized savings of $1.1 million in 1994., When the transportation group at GTE Supply got wind that its vendors were jerking the group around, it decided to make some changes. The GTE national logistics center in Westfield, [...]

When you're shipping 300-ton power plant components overseas, every movement is unique. A shipper and a freight forwarder have united to develop information systems for smooth project moves. 'Making project [...]

US corporations should seriously consider market expansion in big emerging markets (BEMs) rather than focusing on European and Japanese exports. The BEMs represent countries that are predicted to account for more than half of international trade growth after the 1990s. These markets include China, Indonesia, India, South Korea, Mexico, Argentina, Brazil, South Africa, Poland and Turkey., The under secretary of commerce for international trade explains why Uncle Sam thinks exporters should be focusing on 10 big emerging markets. Caveat: This strategy is not without its pitfalls. [...]

Consolidating multiple order processing systems will do a world of good for Bristol-Myers Squibb... and its customers. Companies that have grown through mergers and acquisitions will probably recognize this problem. [...]

A third party that performs its warehousing and distribution allowed Sun Microsystems Inc. to offer faster parts delivery service to its clients and at the same time reduce costs. The company chose USCO Distribution Services Inc., an asset-based third party logistics provider, because of its systems capabilities, warehousing management strategy and network of facilities. USCO's initial step was to assume control of Sun's two large distribution centers to monitor field inventory., Sun Microsystems developed a two-hour parts delivery capability. But they had to go outside of their company to do it. Sun Microsystems had a problem. 'We had to come up [...]

Improved access through dredging is the key to making the ports flow economically. But environmental waves are complicating the process. 'Access is the preeminent issue facing the ports of this [...]

A name change to reflect the exact nature of the benefits being offered to the end user would go a long way toward clearing up customer confusion among third-party logistics [...]

Findings in the 1993 Intermodal Index show that 37% of traffic managers are not aware of their company's inventory carrying costs. Meanwhile, about 36% revealed that they are unfamiliar with their company's inventory carrying cost percentage number. The statistics indicate that many traffic managers do not have ample knowledge on essential logistics information. The index likewise revealed that service and price are the two most important factors that influence carrier/mode decisions., Many traffic managers don't have a handle on essential information needed to make proper mode and carrier decisions. That's the clear implication of one of the findings in the 1993 [...]

The Toyota Vehicle Processors Inc. based in Northlake, IL, has developed an innovative just-in-time program that provides Japanese assembly plants with the necessary components sourced in the US hours before they are needed. The program follows Toyota's system of Heijunka, otherwise known as the leveling of production. This system, which concerns the efficient flow of product from the assembly line, hinges greatly on the smooth and consistent delivery of materials needed in production., Toyota's new information system delivers American parts to Japan just-in-time. The ultimate goal: Heijunka. Suppliers the world over are striving for just-in-time precision in their deliveries. Toyota Vehicle Processors, Inc. [...]

Xerox Corp. revamped its transportation system in 1987, in its effort to reduce costs and improve its overall service. The company is currently using four carriers, three of them dedicated fleets. Burnham Service Corp. and North American Van Lines Inc. are two of the dedicated carriers that provide fleets for Xerox Corp. These companies have efficiently moved products through Xerox Corp.'s distribution network., How Xerox transformed its transportation system by consolidating its fleet, cutting costs and improving overall service. Seven years ago, Xerox Corp. totally revamped its transportation system. Back then it used [...]

Advanced Micro Devices Inc is resuming full control of its distribution operations from Circle International, the third-party logistics firm it contracted in 1991. The move is in line with the company's new door-to-door delivery program which was begun in Asia in Jul 1993. The program, which will eliminate the company's three distribution centers, was enabled by the circuit maker's business partnerships with forwarders, couriers and carriers. The service will debut in the US in Jul 1994., AMD contracted out its distribution, then brought it back in-house by developing long-term relationships with airlines and forwarders. Advanced Micro Devices of Sunnyvale, Calif., wants to provide faster, cheaper and [...]

The International Standardisation Organisation (ISO) 9000 is a product related quality programme for the transportation industry. The ISO is a private group based in Geneva, Switzerland. It represents 80 countries who have their own official standards body. ISO 9000 offers 5 main standards. Registration is undertaken by auditing bodies called registrars which costs up to $250,000. An annual fee is also administered. ISO 9000 allows companies to pursue a quality-orientated business offering uniformity. It has been effective in Europe. Critics claim that it is too bureaucratic., ISO 9000 is probably the most ballyhooed quality program in the world today, but is it as useful as some would have you believe? 'I'm on the quality committee at [...]

Trade opportunities abound in EC because of the elimination of trade restrictions. However, investors should be aware of the impact of market unification on the costs of distribution, taxes and customs. It would be advantageous for US companies to engage in centralized distribution because this would cut administrative costs, import duties and other liabilities while enhancing the competitiveness. It would be even more advantageous to engage in third-party centralized distribution because this would improve cash flow and enhance inventory control as well as customer service., Strategies for starting and continuing business in the EC. Should you go for centralized distribution? How do you reduce your tax and customs burdens? Companies from large to small have [...]

Companies that ship products directly to consumers have a problem that conventional retailers don't necessarily have to consider: Their goods must withstand considerable punishment in a harsh transportation environment. Boxes [...]

Not every vendor needs to be managed. This might sound like an absurdity, but there is some truth to it. Some vendor relationships can run on automatic pilot, whereas others [...]

Byline: Peter A. Buxbaum 'Two heads are better than one.' That's probably the simplest way to describe the advantages of collaborative supply chain forecasting. Business processes, spurred on by Internet-based [...]

As a third-party logistics provider, Miami-based Ryder Systems Inc. offers a varied menu of services to its customers, from planning to trucking to warehousing, and all of them are powered […]

"Having been through the best-of-breed approach, we saw that it can be very costly and take a long time," says David Womeldorf, vice president for technical operations at IMI Bevcore […]

IT professionals face a major headache when it comes to procuring and implementing software: Should they go with the big-footprint vendors or the best-of-breed niche players? It really depends on […]

One of industry's leading real options practitioners came upon the methodology accidentally. 'We thought we were practicing supply chain management,' says Corey Billington, vice president for supply chain services at […]

Even before the jolt of the Sept. 11 terrorist attacks, the U.S. economy was on shaky ground. An impending recession and rigorous budgeting led many IT managers to seek focused […]

Energy exploration. Decision-makers must consider whether to continue exploration or begin development, size production facilities before productivity of a field is known and figure out the value of leases. Utilities. […]

What Are the Basics of B2B? A slowing economy and plummeting technology shares have led many to redefine B2B as 'back to basics.' But what are those basics? Do they [...]

By all accounts, strategic alliances are on the rise in today's economy. Attractive rates of internal growth are hard to sustain, and lower share prices in a down market make […]

As in a marriage, it's probably a good idea for both parties in an alliance to get to know each other well before tying the knot. To help make that […]