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| Global Logistics & Supply Chain Strategies |
— August, 2003 |
100 Great Supply Chain Partners
Readers Recognize Providers Who Improve Efficiency
Today’s best practices in supply-chain management all center on one basic concept: interdependence. Each participant in an extended supply chain has its core competencies. All must cooperate and collaborate to provide maximum customer satisfaction and to achieve optimal performance for the supply chain as a whole.
Furthermore, integrated processes and technology are increasingly critical bonds that link all partners, including suppliers, logistics providers, manufacturers, distributors, retailers, and ultimately, customers.
In short, it is all about depending on trusted partners to make the whole supply chain successful. This theme appears regularly in case histories and other articles in Global Logistics & Supply Chain Strategies (GL&SCS) — so often in fact that the editors decided to let all of its readers participate in a program that recognizes those partners whose day-to-day activities genuinely demonstrate the tenets of collaborative supply-chain management.
The following pages contain what we call the 100 Great Supply Chain Partners report. It is the result of a six-month poll of readers in which we asked logistics and supply-chain professionals to nominate vendors and service providers whose technology, logistics, transportation or consulting solutions have made a significant impact on their company’s efficiency, customer service and overall supply-chain performance. The purpose of the list in this report is to recognize those vendors that have so impressed our readers that they deserve to be singled out and to be held up as examples for others in the industry. In one sense, it is an opportunity to thank those providers who have helped our readers achieve better results, and to let the industry know who is making a genuine effort to be a supply-chain partner — not just another vendor. On a higher plane, the commentary in this report is intended to emphasize which services, technology, expertise and support our entire industry needs for all of us to be more successful.
The reader comments about various supply-chain partners on the following pages speak for themselves, but a number of important themes need to be emphasized:
First, size does not matter. Most “Top 100” lists of vendors consist of large companies that everyone knows and that gain most of their revenue from very large customers. Our list is quite different. While it includes quite a few of the prominent players in global supply-chain management, it also contains many vendors that most of us never heard of. Often, these smaller vendors were nominated by large customers. Not to take anything away from the large supply-chain vendors, but clearly customers are focused on whether or not a vendor can solve a particular problem — not on its annual revenues. Sometimes it is easy to forget that there are thousands of carriers, technology providers and third-party logistics companies that are thriving. Few will ever see themselves on the Fortune 500, but they often have special knowledge, regional expertise, talented employees and a drive for excellence that allows them to carve out a unique niche in a competitive marketplace.
Second, it takes all kinds of vendors and partners to make a successful supply chain. Given the subject matter of much of GLSCS, it is not surprising that most nominations received were for carriers, 3PLs and providers of logistics-related technology. However, in addition to logistics and technology-oriented vendors, we received nominations for suppliers of direct and indirect materials, original equipment manufacturers (OEMs) and large upstream retailers based on their logistics and supply-chain expertise. Clearly, good supply chains have no functional silos.
Third, technology is important — very important. Close to half the nominations received were for providers of supply-chain-related applications, business process software, integration tools and other technology, which as one reader stated, “provides the structure that all trading partners in our supply chain need to work as a team.” Furthermore, many of the carriers and 3PLs nominated were praised for their technology and ability to provide visibility and seamless integration.
Fourth, regardless of industry or size of company, there is tremendous commonality in what readers need and appreciate from their vendors. Indeed, a number of clear patterns emerged among the hundreds of nominations we received. Broadly speaking, we can group the reasons why vendors were nominated into 12 categories:
1. Reliability: Particularly in the case of carriers, dependable service that was on time, every time with no surprises was the key performance metric
2. Cost savings: Most readers are being measured on their ability to cut costs, so they appreciate vendors that help them in that regard
3. Inventory reductions and cycle time improvement: Supply chain improvement is primarily measured by lowering inventories and increasing their velocity, so software and services that support this effort are winners.
4. Flexibility and problem solving ability: Few supply chains run smoothly, so the ability to adapt quickly to change without missing a step is highly prized, along with the ability to customize solutions to meet evolving needs
5. Visibility: Whether it is shipments, orders or inventory, companies want technology and service providers that can provide real-time information
6. Continuous improvement: Companies want help improving their own processes, and they expect vendors to constantly improve their own
7. Value-added knowledge and expertise: Consultants are paid specifically for their wisdom, but companies also expect their technology and service providers to offer special expertise and innovation
8. Ease of use: Both technology and service providers have to make their offerings intuitive so users anywhere can gain full benefits with little or no training
9. Can-do attitude: The greatest accolades were bestowed on those vendors that took on any challenge and found a way to accomplish a goal without complaints or excuses
10. Supply-chain integration ability: Technology and service vendors that can help extend the supply chain and make it as seamless as possible to internal and external users
11. Global coverage: While not a universal requirement among carriers and 3PLs, the ability to provide service backed by local knowledge anywhere in the world is important to large and small companies
12. One-stop shop: Particularly in the case of 3PLs and other logistics providers, companies appreciate vendors whose range of services covers as many needs as possible.
Finally, before presenting the reader nominations and their comments, please consider the following house-keeping points:
• The methodology for exactly how nominating supply-chain partners was conducted is presented in the adjoining sidebar. Very simply, the companies listed here are totally based on voluntary responses from readers. No one at GL&SCS had anything to do with which companies were nominated.
• We have included 100 vendors just because it is a manageable number. We actually received nominations for more than twice that number of vendors. The companies included just had more nominations than the others. The comments offered for these unmentioned companies clearly reflect their customers’ appreciation, but we had to draw the line somewhere. For better or for worse, the number 100 has become the standard for any list of this type.
• We think the supporting comments are at least as important as the fact that a partner has been nominated, so we have included a number of unattributed quotes from readers. Companies’ policies often prohibit their employees from publicly commenting on vendors, so many nominators requested that their comments not be attributed to them or to their companies. We have honored these requests. When we have included quotes from these nominators, we have identified the speaker only by title and industry. Fortunately, the majority of respondents were proud to identify themselves and their companies and their relationship with the vendors they nominated.
| Methodology for the 100 Great Supply Chain Partners |
The list accompanying this report is based entirely on the entries voluntarily submitted by readers of Global Logistics & Supply Chain Strategies and users of its sister web site, SupplyChainBrain.com, where the official nomination form has been posted since the early spring. Over the last few months, many GL&SCS readers received e-mails asking them to participate and directing them to the form. Other readers and users of the web site independently found a link to the official nomination form on the home page of SupplyChainBrain.com.
Nominations could only be made using the official web-enabled form that required nominators to identify themselves, their position, their company, their e-mail address and a phone number where they could be reached to verify their responses. If they chose, participants could elect to remain anonymous for purposes of being identified in this report. However, for their nomination to be counted, the participants had to provide adequate identifying information to verify their identify and their legitimate role in the industry. Nominations from participants selecting their own companies or closely allied entities were disqualified, as were multiple nominations from the same customer company.
Participants could nominate up to three companies and could support their nomination with as much or as little commentary as they wished. To provide more in-depth information for this report, some nominators were interviewed after they submitted their completed forms. The final list presented here includes the 100 companies that received the most nominations. In the case of ties, the nominations with the most detailed justification were selected.
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Great Partners Come in All Sizes, From All Sectors
Supply-chain applications and supporting solutions received the greatest number of reader nominations, clearly indicating the high importance that technology represents in our industry. As one executive for a large lubricant company stated while nominating Agilisys, “Software and service solutions are what is driving inefficiency out of the supply chain.”
Just about every type of supply-chain application was nominated, including planning, execution, sourcing and global supply-chain management, modeling, analytics and international trade logistics. There was a very interesting division in which titles and job functions nominated each type of solution. Large enterprise solution providers were generally nominated by IT professionals and support staff, senior level supply-chain executives or systems integrators. For example, a leading consultant that has done dozens of supply-chain implementations nominated SAP and Oracle, which he says, “both provide the most influential and advanced solutions in the entire industry.”
Internal supply-chain specialists tended to nominate modeling solutions. For example, Tracy White, senior supply-chain consultant with Hewlett-Packard, nominated Gensym for its rich capabilities as a supply simulation tool. This sentiment was echoed by the senior engineer for a global semiconductor fabricator, who uses the Gensym e-SCOR simulation tool to support the Supply Chain Council SCOR model.
“Our company recognizes that we must compete through our supply network capability on a global basis,” says the supply-chain engineer. “Our supply network group provides the assessment and planning of new strategies to be most effective. Our modeling and simulation results have been effective in saving millions of dollars in supply network improvement. The consulting personnel of Gensym have been highly competent in assisting us in making the most of the models in our complex supply nets. They have also been excellent partners in R&D activities to customize the tool for our special needs and in helping us leverage the underlying generic business process modeling tool.”
HP’s Tracy White also recommends Optiant for the modeling capabilities that have helped HP’s inkjet-supplies group understand its complex supply networks and identify improvement opportunities.
“This new generation of analytical capabilities has taken operations research out of the hands of consultants and academics and put it into the toolboxes of everyday practitioners,” she says. “Everybody can invent and everybody can add value.”
The manager of supply-chain engineering for a large discount retailer recognized Baan/Caps Logistics for the “flexibility and ease of use” offered by two of the vendor’s modeling applications — Supply Chain Designer and Coordinator.
“These solutions have allowed us to focus on making critical decisions in a short period of time with very few missteps,” says the engineer.
Aimee Brainard, a consultant with Applied Communications says that the supply-chain performance management solutions from SeeCommerce have allowed her company to identify areas of weakness in its supply chains. “We now understand the impact of issues within the supply chain, take action to resolve issues before they can affect top- and bottom-line results, and validate their processes, so that they can effectively replicate those changes to dramatically improve overall corporate performance,” says Brainard.
These same user-friendly benefits prompted several executives to nominate specialized analytic-tools providers such as Brio because they allow operating-level managers to make greater use of technology.
“Brio has meant a quantum leap forward in making information available to all logistics managers,” says a supply-chain systems director for a diversified technology company.
Prior to Brio, he says, most users relied on team members that could handle SQL queries and navigate through arcane screens. With Brio, the average user can construct a tailor-made database query in minutes with no confusion or misunderstanding. Professional results are easily transferred into charts and graphs or sent as attachments.
“Brio has made an impact and is imbedded in our day-to-day business operations,” says the internal consultant.
The modeling solutions that have made themselves user-friendly also earned recognition from operating managers. Peter Priepke, vice president of operations strategy of Mott’s, for example, nominated INSIGHT for its SAILS supply chain-modeling application. He says he learned to appreciate this application when Motts and Cadbury Schweppes merged, and the beverage companies used SAILS to rationalize the two companies’ supply chains.
“INSIGHT software and consulting provide optimization-based planning and scheduling to solve supply-chain management issues and most complex problems,” says Priepke.
Using SAILS, Mott’s also developed a tactical plan to address seasonality and to meet demand, as well as to model for new acquisitions, co-ops, contract manufacturing and packers, distribution centers and transportation networks.
“I chose INSIGHT over others because it is a mature product with good functionality for now and into the future,” he says, adding that SAILS contains a multi-period modeling solution for tactical configuration.
SAILS helps Mott’s decide how to manage take-or-pay contracts with co-packers, how to keep volume at certain levels, how to model a new factory or warehouse, how to make the best decision for sourcing to fulfill demand and whether to select TL or LTL carriers for specific shipments.
“Total savings have been 7 to 8 percent,” says Priepke.
Planning solutions received nominations from many levels of management. Higher-level managers tended to select their planning nominees based on bottom-line results. The vice president of supply-chain operations at a provider of high-speed telecommunications equipment, for example, selected i2 Technology’s solutions, partially for the vendor’s knowledge and consulting skills, but mainly for its ability to “reduce cycle time, decrease inventories, optimize shipments and integrate our overall processes across multiple service providers.”
Operating level managers, who have to implement and work with the solutions, tended to select solutions that integrated easily and performed without problems.
For example, the director of demand flow for a pet care company nominated Prescient for its leading-edge demand planning software and its “first class implementation team.”
Michael Griswold, business process leader, supply chain, with Shaw’s Supermarkets says that SmartOps offers an excellent combination of academic knowledge and business practicality.
“SmartOps provides a holistic view of forecasting and replenishment optimization,” Griswold says. “Their SmartSteps implementation methodology is excellent.”
The operations coordinator for a beverage distributor nominated IBS for its “highly complete package of supply-chain solutions, and its excellent performance over many years.”
Jerry Hodge, director of supply-chain planning with Hamilton Beach, credited Demand Management with streamlining his processes for demand and supply management.
“They allowed us to go from monthly planning to weekly planning and improve our data integrity,” he says.
The supply-chain technology leader for a printing company says Demantra has a “great demand planning product.”
Charles F. Sharp, director of information services for Aspen Pet Products, uses J.D. Edwards modules, such as Demand Planning, Demand Consensus, Supplier Workbench, and Buyer’s Workbench.
“These are exactly the type of functionality we are looking for,” says Sharp.
Nominations of supply management and sourcing solutions also tended to come from high levels in the organization, who could see across silos and functional areas.
Stephen O’Mara, vice president of J.F. Braun & Sons nominated Blinco Systems for its 3rdwave application that single-handedly provides the food trading company’s enterprise-wide global sourcing, trading and synchronized supply-chain execution solutions. As the leading importer and wholesaler of nuts and dried fruit in the U.S., Braun & Sons has been able to automate many trading, order management and logistics processes as well as gain accurate visibility into its entire global supply chain.
“Since we have been live with 3rdwave, we are better able to monitor and control long-term contract positions,” says O’Mara.
He says that he depends on the global food distribution and sourcing experience of Blinco’s management to deliver a highly business-process-driven, tightly crafted solution that accurately reflected the firm’s needs.
“In a high quality, highly competitive environment, our dedication to providing exceptional customer service to match the requirements of our food manufacturers and food service distributors that rely on us daily, it is imperative that we have a solution that provides a real-time 360-degree view of our customer,” he says. “We appreciate that [Blinco] is able to understand and translate our corporate vision into their 3rdwave solution and has given us the core and additional functionality we need to meet and even exceed our customers’ needs.”
What is most important to O’Mara is that Blinco Systems is there to provide J.F. Braun & Sons with the support and domain knowledge to help it achieve its future IT goals.
The director of supply chain for a global CPG company has gained “huge cost reductions and extraordinary efficiencies” thanks to the sourcing solutions from A.T. Kearney Procurement Solutions and the eBreviate application it provides.
The director of e-business for a lubricant manufacturer says that the sourcing solutions from VerticalNet have been the greatest factor in his company’s efforts to drive inefficiency out of the supply chain.
The nomination process showed that supply visibility was clearly a concern for all types of companies and all levels of management.
For example, BridgePoint is an alliance partner of the WorldWide Retail Exchange (WWRE), a B2B exchange for retail and CPG. According to Pete Plotas, director of strategic alliances for WWRE, he nominated BridgePoint because its supply-chain visibility has met the unique needs of 64 different global companies within the WWRE retail community.
BridgePoint’s established trading partner network captures critical data about the movements, status and availability of inventory anywhere in the world and is one of the key reasons why WWRE selected them.
“With their data quality, alerting, exception management and logistical reporting tools, the BridgePoint solution is best of breed,” says Plotas.
The director of logistics for a large distribution services company nominated Transentric because it supplied the company with shipment visibility, scheduling and customized performance reports that allowed objective carrier evaluation.
“In many cases, we rely completely on Transentric’s portfolio of solutions to design programs that meet our customer’s supply-chain needs,” says the logistics director.
Kevin Smith, senior vice president of supply chain and logistics with CVS/pharmacy, nominated both JDA and Descartes Systems Group for providing outstanding support in the development and implementation of CPFR and supply-chain visibility tools, respectively.
“These tools have allowed us to reduce inventories by tens of millions of dollars,” says Smith.
Nominations for execution solutions were often from hands-on managers who wrestle with day-to-day supply-chain challenges.
Peggy Winstead, director of systems planning for the logistics division of Saks Inc., says that Catalyst has jointly worked with the high-end retailer to develop a state of the art cross-docking system.
“Together, we continue to innovate by finding new ideas that will apply across the retail industry, instead of custom modifications for our corporation,” says Winstead. “Catalyst is willing to commit its resources just as we do.”
Reggie Thurn, business analyst with WaterPik Technologies, calls ClearOrbit a “strong business partner.” He says the technology vendor provides solid supply-chain execution solutions that increase efficiency in receiving, inventory, work in progress and shipping, as well as greater control of internal and external supply-chain activities. Moreover, the solutions integrate industrial devices directly to his company’s ERP system, which drives supply-chain efficiency.
“ClearOrbit provides us critical warehouse management capabilities without the licensing and integration costs of a full-blown WMS solution, which increases inventory accuracy,” says Thurn.
The supply-chain manager for an industrial products manufacturer credits Manhattan Associates’s execution solutions for “reducing our fulfillment inventory by several millions of dollars.”
The transportation planning and operations manager for a building products company says his company, using Logility’s transportation solutions, has achieved savings of more than $15m in transportation costs over three years. In addition, it has reduced transportation costs from 8.6 to 6.8 percent of sales, eliminated 120 hours per week of non-value-added work, and achieved better on-time shipments and increased customer service performance.
“The ROI has been remarkable,” he says.
Tom Poduch of Transervice Logistics selected Appian Logistics Software for its “solid customer service and reliability,” as well as for its proven transportation solution.
The senior business systems analyst for a large beverage retailer says that HighJump Software offers “highly tailored, integrated supply-chain software solutions with expert consultants, developers and customer support.
“They have delivered valuable, efficient and timely warehousing and transportation solutions for a complex industry with great success,” says the business system analyst.
Clifton L. Kjelgaard, director of transportation logistics with PACCAR, has deployed Manugistics’s web-based freight management system with the help of its consulting group with great success.
“The solution is extremely easy for our customers to use,” says Kjelgaard. “The deployment throughout our supply chain has been incredibly rapid.”
Many nominations for execution-type applications also came from IT managers, senior executives and consultants.
The IT supply chain leader for a tool manufacturer says that RedPrairie execution solutions have allowed his company to have greater “flexibility and adaptability to meet customer demands, while reducing costs and driving shareholder value.”
Steve Sherman, SCN strategy & EMS general management for Lucent Technologies, says the Optum Tradestream application has allowed Lucent Technologies to enhance its relationship with suppliers.
“Tradestream provides the tools we need to reduce inventory and improve on-time delivery,” says Sherman.
Consultants had their share of interest in execution applications as well. One such independent consultant specializing in supply-chain management implementations says that Americas Systems provides groundbreaking custom logistics software for all types of clients, from port authority community web sites to Wal-Mart’s bill tracking needs.
Tony Bozzuta, director of global logistics with Ingersoll-Rand says that Xporta international trade logistics solutions are “best in class,” especially for calculating total landed costs.
“They continually are developing these tools to further enhance performance,” says Bozzuta. “Xporta has provided us with the ability to quickly evaluate and compare alternative international sourcing solutions, so we can make the most advantageous decision the first time.”
The aftermarket manager for an automotive dealer network for one of the leading Japanese brands says that Servigistics’s parts management solution has helped dealerships tremendously with inventory planning.
“In conjunction with daily stock orders from the warehouse, this partnership with the vehicle manufacturer has been a tremendous asset within our inventory management systems,” he says. “Our inventory level has decreased while we have sustained much better part number coverage. Now, 91 percent of our parts inventory has an age of six months or less and we are tracking to do seven turns this year. Our dealership fill rate has increased, our technicians are kept busy due to better parts availability, and our profitability has gone up.”
A significant number of nominations were made for technology service providers that help user companies select, implement and integrate solutions. Such companies, which primarily include consultants and systems integrators, have grown in importance in supply-chain management in recent years as integration and time-to-value issues become increasingly critical.
For example, Scott Harrison, vice president of merchandising services with Food Lion, praises the consulting firms and technology service companies that helped him build supply-chain success.
“From strategy development to implementation, Kurt Salmon, Infosys Technology, and IBM all have played an important role in helping to shape Food Lion’s supply-chain strategies.”
John Lightner, superintendent of terminals for Amtrak, turned to Tunnell Consulting when he needed help with his company’s technology solutions.
“Tunnell Consulting provided solutions that improved efficiency while improving the bottom line,” he says.
When the packaging division of a very large consumer packaged goods company decided that it was time to modernize its warehouse management system, the company engaged ESYNC to assist with the entire process. ESYNC worked closely with the IT manager and his team to first understand current practices and needs, and then showed a broad understanding of the available WMS functionality and pricing.
“ESYNC helped prepare analysis and project an expected ROI estimate for the project,” he says. “This effort won management approval to proceed to the vendor and product evaluation phase.”
Continuing to work closely with the user team, ESYNC helped develop a list of qualified prospective vendors and a very detailed RFQ, provided advice and assistance during the review process and supported the final vendor selection.
“Throughout this process, ESYNC provided precisely the service we desired, always delivered in a highly professional manner and at a reasonable cost,” says the IT manager.
3PLs Aim to Please
The second-largest number of nominations were received for third-party logistics providers, including both the very large global players, as well as the regional and specialized providers. Regardless of size, qualities appreciated in all of the 3PLs nominated included a strong commitment to effective customer service, a sense of partnership and flexibility in handling unexpected operational challenges.
In the case of the large 3PLs, a wide array of services and technology, along with great geographic coverage, were a requirement.
For example, Peter Haas of Northrop Grumman Electronic Systems, nominated Ryder System Inc. for its end-to-end supply-chain and transportation management approach.
“Ryder’s web portal enables Northrop Grumman ES to get the right product to the right place at the right time at the lowest delivered cost while providing online barcode receiving, automated freight bill audit-and-payment match, pro-active missed delivery reports, and online real-time carrier tracking by purchase order, delivery order or part number without having to know which carrier is being used,” he says.
Kelly Ingersoll, logistics manager with specialty vehicle manufacturer Hendrickson International, also selected Ryder System Inc.
“Ryder provided 3PL services, including carrier procurement, shipment optimization and freight bill audit-and-pay while exceeding our minimum net savings goal,” she says.
Philip Peterson, global customer service manager, for Motorola, says that Exel is a key partner in the company’s semiconductor operations. A logistics coordinator for a mid-sized healthcare company nominated C.H. Robinson as “an outstanding company.”
The senior transportation manager for a biotech company nominated UPS Supply Chain Solutions for providing the technology and service needed to “reduce cycle time, decrease inventories, optimize shipments and integrate our overall processes across multiple service providers.”
The logistics manager for an industrial materials company nominated USCO Logistics for “truly being a partner and contributing to our supply-chain success.”
Todd Ipson, customer service manager for Gambro, uses Airborne Logistics for aftermarket parts support.
“They have helped us to streamline our spare parts process, including off-hours shipping,” says Epson. “We have worked closely with them to customize our needs and their internal systems and processes.”
Dave Dwiggins, manager of international operations of Tropitone Furniture, says that the BAX Global Logistics’ web site has become an important tool for managing his supply-chain activity and global logistics. Specifically, the BAX Global web site provides custom reports of commodity flows, e-mail notification of delivery or problems, online document completion, hazmat shipping support, compliance assistance, classification assistance tools, status of goods clearing customs, and online billing.
“The technology they offer allows me greater flexibility in scheduling my day and greatly reduces the need for time-consuming phone calls,” says Dwiggins.
Gary Fuess, manager of purchasing and logistics for GEO Specialty Chemicals selected BDP International.
“I have worked with BDP International for 30-plus years and continue to recommend their services,” he says. “The personnel at BDP look after our merchandise as if it was their own.”
He points to extended partnerships that BDP has developed overseas that support door-to-door service, as well as its aggressive rate negotiations on behalf of its customers.
“The knowledgeable, professional and reliable personnel at BDP are the reason for their success,” says Fuess.
Randy Graves, purchasing manager of Beam’s Industries, says that DFDS Transport, the Danish-based 3PL, has improved his company’s ocean transit times from Europe by 24 percent over previous ocean service. Even more impressive has been DFDS Transport’s attention to service commitments.
“On two occasions, DFDS realized that a shipment was going to be delayed, so they paid for the expedited freight services out of their own pocket in order to maintain promised delivery dates,” says Graves.
Ginnie Schultens, logistics manager with Xerox, named Expeditors International as the 3PL that she most appreciates.
“Expeditors is our international partner and has done an outstanding job of being proactive in the rapidly changing international freight and distribution side,” says Schultens. “With priority fulfillment services, it has the information technology that allows us to meet our customers’ expectations.”
Hub Group’s “results-driven approach” is the reason that the director of transportation and logistics networks for a drugstore retailer nominated it, while a major forwarder serving the high-tech industry says that Menlo Worldwide Logistics is “our most reliable supply-chain partner.”
The international transportation manager for a packaging supplier recognized Panalpina for its worldwide network of offices, knowledgeable employees and global tracking and reporting.
“Panalpina has been invaluable in helping us to standardize international operations, while still taking into account local unique customs and practices,” he says.
The director of logistics for a high-end electronics company nominated northAmerican Logistics (a division of SIRVA) because “they provide a world-class consignment warehouse solution providing visibility to international shipments and managing shipments until final delivery in the U.S.”
While these large 3PLs received their due amount of customer recognition, the outpouring of support for regional and specialized 3PLs was just as strong. Food, chemical and electronics companies clearly appreciated the unique knowledge and capabilities of the 3PLs that specialize in their industries.
RMX Global Services “knows the food industry better than any other 3PL,” says a vice president of supply-chain management and operations for a large Midwest baker. The logistics manager for another bakery company nominated Americold for the same reasons, as well as for “its great coverage and consistent service.”
The director of global procurement and logistics for a specialty chemical company nominated Cendian for its excellent service to the chemical industry.
The purchasing manager for a large electronics manufacturer, who said his company needs a “true supply-chain partner to compete,” nominated Avnet for its “good pricing, quality, delivery and great technical support.”
Users of regional and small 3PLs were extremely enthusiastic in their nominations. For example, George Steven, general manager of Mitsubishi Warehouse, selected Andlor Logistics Systems for its help in meeting day-to-day challenges.
“We live in a multi-client world where the demands of tracking goods and processes make any logistics business challenging,” says Stevens. “Andlor works with us to provide solutions that truly work in order to gain that competitive edge for us and our customers.”
Chris Susha with Rx-Logistix nominated Forward Logistics for its excellent distribution services, freight forwarding and solutions at “extremely” reasonable rates.
“Their customer relations management standards are extraordinary,” says Susha. “Operating in several domestic and international locations, they can also readily partner with other providers in practically any location worldwide that a client requires.”
Renee Vaughn-Goode, distribution manager of Syngenta Crop Protection, nominated Jacobson Warehouse for its outstanding array of services and for keeping the customer first and foremost in mind.
Richard Ewers, process improvement coordinator for Mead Johnson, says that Kenco Logistics Services brought his company’s warehouses into the 21st Century with accurate stock locator systems and initiatives that keep employees performing at their best.
“They work well with my company in a joint effort to resolve issues and view their position as being part of the team,” says Ewers.
Mark Slate, vice president of design and development for Wilderness Trail Bikes, says that Orion Logistics has been instrumental in getting his growing company on track with systems and ideas that will increase its profits based on better stock management and security precautions.
“Their expertise in handling bigger companies has been a benefit to us in looking at how we should grow and what we need,” says Slate. “The technology employed at Orion and the consulting they have provided has given us a target to aim for and ideas about global growth.”
Dwight Smith, director of logistics with the Murray Company, says Ozburn-Hessey Logistics is “good at warehousing, good at shipping, good at returns, and good at valued-added services, such as rework and repackaging.”
A logistics coordinator for a healthcare company calls Pacer Global Logistics “an outstanding company,” while a supply-chain and logistics manager for a industrial products company admires the “can-do” attitude of PBB Global Logistics and compliments its “great service and knowledge of what is going on in the industry.”
Rob Lewin, manager of global logistics with EDS, says Pegasus Logistics is an excellent partner because it brings “strategic thinking, flexibility and IT solutions to the table.”
A number of logistics and supply-chain managers at Rhodes Furniture praised Reich Logistics Services for its competency and professionalism.
“They have excellent supply-chain management expertise,” says Kaia Wright, logistics coordinator with Rhodes.
Richard Bower, vice president of logistics of American Woodmark, says that William B. Meyer, although primarily a household goods mover, has provided 3PL services in his company’s most difficult market — the Northeast.
“Their superior technology platform supports high levels of operating performance resulting in outstanding delivery service,” says Bower. “They have been innovative and forward thinking in designing processes to meet the needs of the customer.”
Carriers Come Through Strong
Transportation carriers of nearly all types also received their share of Supply Chain Partner nominations. Ocean carriers received the most recognition, generally because of ability to provide detailed visibility data and solve difficult international trade issues, as well as to provide reliable, trouble-free service.
For example, the international traffic coordinator for an appliance manufacturer nominated APL for its pioneering efforts in web-based information about shipments.
“They were the first, and I think still the best,” he says.
The senior buyer for an electronics manufacturer nominated Hanjin for its information-intensive approach to customer service.
“If there are problems with documents, they determine a corrective action and immediately advise us,” says the electronics buyer. “Shipping status is constantly updated.”
The freight manager for a fresh produce shipper recognized both NYK Lines and Matson Navigation for their “careful attention to perishable products.”
Peter Beklian, eastern branch manager for OIA Logistics, nominated Yang Ming Line for its “unwavering reliability.”
The director of supply-chain management for a global 3PL says P&O Nedlloyd has the most far-reaching network of intermodal and ocean services in the industry.
“This huge network helps me to coordinate all movements ex factory when orders are received from my vendors,” says the 3PL manager.
A handful of combination cargo-passenger airlines were nominated — virtually all of which were non-U.S. carriers. As one air forwarder quipped, “Only the overseas carriers understand that cargo is profitable.”
Beklian of OIA Logistics says that Korean Airlines gets four important things right: the right shipments to the right place at the right time and at the right price.
“I have visibility into electronic data throughout the supply chain,” says Beklian, “and the information is received in time for me to act on it.”
The director of logistics for a major retailer depends on Emirates Sky Cargo for “perfect service, follow-up on every shipment and competitive rates.”
Express carriers have always received high marks from customers for their reliable service, even for the most high-volume, far-flung distribution systems. For example the transportation manager for a very large direct seller of personal computers says United Parcel Service “always gets the job done right.”
But these express carriers have the ability to provide customized services as well.
The logistics manager for an entertainment products company says the suite of services from FedEx has provided tremendous flexibility and cost savings over other options.
“FedEx has personalized our customer service, allowing service levels consistently in excess of 99 percent,” he says.
Robert Proulx, director of worldwide logistics for Bell & Howell MMT, nominated Airborne Express for its unswerving support for his logistics operations worldwide. When unique operational or systematic solutions are needed, he says that Airborne never misses a beat in working with his internal logistics organization to design, implement and manage these solutions.
“They are an industry leader in working with customer designed EDI solutions,” says Proulx. “Where others say this is the way we do it, Airborne asks what is the optimal solution to fit your organizational need?”
Sandy Dodge, manager of customer service for St. Jude Medical’s cardiac surgery division, relies on Network Courier Services for consistent and reliable performance in time-critical deliveries of medical devices.
“Their knowledgeable customer service staff is available 24 hours a day and we consider Network Courier Services a valuable partner in our business,” says Dodge.
Trucking companies were not forgotten in the nominations. In fact domestically oriented companies predominantly nominated motor carriers and focused on quality service, rates and the knowledge of their sales force and customer service reps.
For example, Deon Hull of ATK Thiokol Propulsion, calls Landstar among the “best transportation companies in the nation” because of its excellent customer service.
“They will do anything in their power to get the product where it needs to be in the allotted time,” says Hull.
The traffic manager for a book publisher says that ABF Freight Systems’ sales force is knowledgeable and the drivers have a can-do attitude that reflects the spirit of the company.
The corporate logistics manager for a printer has found the technology infrastructure for the ConWay Transportation group of LTL carriers to be excellent and enhances the service and quality he and his customers receive.
A materials director for an electronics company says Old Dominion Freight Line has supplied his company with the superb service, reliability and logistics expected by a customer.
As with many manufacturers, heavy-truck manufacturer PACCAR has a constant inventory-balancing act. Clifton L. Kjelgaard, director of transportation logistics for PACCAR, credits Werner Enterprises with the proactive systems and expedited services that allow PACCAR to take on this supply-chain challenge.
“We continue to draw down inventories with confidence that we will have the required material to meet our production requirements,” says Kjelgaard.
Doug Joy, distribution manager with Brady Distributing, credits Wilson Trucking with helping his company enter the home-delivered market with their indispensable liftgate capabilities on most of their trucks, which they provide at no additional cost. Wilson provides Joy with what he calls “no-surprise service,” meaning deliveries that are on time and without damage.
“Their account executives are knowledgeable,” says Joy. “Their downloadable rate program is a great help.”
Tammy Rossi, transportation manager with Blue Diamond Growers, recognizes a variety of motor carriers and services: Yellow Transportation for its LTL services, FedEx Freight for its critical delivery services and CRST International for its TL services. All have “outstanding customer service and reliability,” according to Rossi.
Conclusion
We thank all of the readers of Global Logistics & Supply Chain Strategies who nominated their supply-chain partners. By voicing your appreciation for the vendors of technology and services that help you achieve your supply-chain goals, you not only give them the recognition that they deserve, but you point out to all vendors the qualities that you admire — and expect. That effort helps the entire industry. Thank you again, and we look forward to your participation next year.
Click here to view the 100 Great Supply Chain Partners list!
Case Studies:
HP Deploys Portal From Indura to Power Virtual Supply Chain
Land O’Lakes Uses Nistevo to Bring Transportation Management In-house
Mercedes Partners with Connextions to Meet the e-Commerce Supply-chain Challenge
Dole uses ICG Commerce as a Consultant in Its Strategic Sourcing Process
ImagePoint Integrates Sourcing and Manufacturing with SupplyWorks MAX
Provia ViaWare Is Focal Point for Owens Corning’s Logistics
Newly Recreated Horizon Lines Wins Big Plaudits
Schneider Logistics Helps Ford Improve Dealer Satisfaction
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