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| Global Logistics & Supply Chain Strategies |
— August, 2004 |
100 Great Supply Chain Partners
Readers Recognize Providers Who Improve Efficiency
With the 2004 Olympic games upon us, the whole world is celebrating those athletes showing individual excellence, an enduring will to succeed and the ability to bring out the best in their teammates. This second annual Global Logistics & Supply Chain Strategies 100 Great Supply Chain Partners report follows the same themes. Manufacturers, retailers and all other businesses competing in today’s demand global marketplace recognize partners that possess the skills they need and which have the customer commitment to help them achieve supply-chain success.
Like the Olympic games, the 100 Great Supply Chain Partners report is a worldwide event including competitors from small and large organizations with skills of many types. We received more than 2,000 nominations from five continents for more than 500 vendors of every conceivable type of supply-chain activity — from enterprise-wide planning systems, to global third-party logistics providers to highly specialized transportation services. The largest and most-widely known 3PLs and technology vendors were among the nominees, but so were regional transportation companies and small, boutique consulting firms. The recognition was for achievement — not for size or scope.
For those not yet familiar with the GL&SCS 100 Great Supply Chain Partners program, 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.
We received nominations for carriers in every mode of transportation. Most are represented on our final list, as are various outsourced logistics services and a wide range of supply-chain technologies. Today’s supply chains clearly require tremendous teamwork from many disciplines to bring home the gold.
Regardless of what type of vendor a reader nominated, there are clear themes within the commentaries that accompanied most of the ballots. As with our first report last year — and probably forever — the most common 10 qualities that users looked for in their vendors were as follows:
1. Cost savings and identifiable ROI — Most readers are being measured on their ability to cut costs and show returns on supply chain investments, so they appreciate vendors that help them in that regard.
2. Reliability and ability to meet commitments — Particularly in the case of carriers and other outsourced services, on-time performance, every time with no surprises was the key performance metric.
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’s 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. Ease of use — Both technology and service providers have to make their offerings intuitive so users anywhere can gain full benefits with no training.
8. 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.
9. 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.
10. Comprehensive service — Particularly in the case of 3PLs and other logistics providers, companies appreciate vendors whose range of services covers as many needs as possible.
Five additional themes were prominent among the justifications that users provided in their nominations, no doubt indicating new priorities within today’s supply chains:
1. Security orientation — Especially for ocean carriers, forwarders and 3PLs, shippers expect their vendors to meet or exceed international security guidelines and participate in voluntary programs such as Customs-Trade Partnership Against Terrorism (C-TPAT).
2. Collaborative capabilities — Technology and service vendors that can help extend the supply chain and make it as seamless as possible to internal and external users.
3. Customer knowledge and expertise — Consultants are paid specifically for their wisdom, but companies also expect their technology and service providers to offer ongoing support, integration assistance and special expertise.
4. Process orientation — Companies need to implement best practices and efficient processes into their business operations. They are turning to their vendors to help them.
5. Focus on execution — While innovation and good communications are important, there is no substitute for getting the job done right, every time.
Finally, before presenting the reader nominations and their comments, please consider the following housekeeping points:
• The methodology for exactly how the Supply Chain Partners program was conducted is presented below. Very simply, the companies listed here are entirely 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 500. The companies included just had more, and more in-depth 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 many quotes from nominations and follow-up interviews. Space does not allow us to reproduce anywhere near the total number of responses we received.
| 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 identity 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. We received more than 1,500 qualified responses nominating over 500 different companies. 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. |
Outsourcing Outpaces the Field
By far, the greatest number of nominations we received were for outsourced supply-chain services, which includes third-party logistics providers, carriers, brokers and consultants. Clearly, companies are looking for cost savings and rapid improvement in their logistics operations without having to invest in more people and technology.
For example, Phil Cox, president of CT Global, says that he has been impressed and highly satisfied with the relationship that he has built with UPS Supply Chain Solutions in just four months.
“UPS SCS executed what it promised, never lagged or dragged its heels, always found a way to move thorny issues out of our path and press forward in a cooperative manner. Its positive business attitude and style is exemplary.”
Cost reduction is among the most important goals for all supply-chain managers, and Dennis J. Defnet, corporate transportation manager for OshKosh B’Gosh, who found major savings with his 3PL, Averitt Supply Chain Solutions. He says that Averitt’s flexible service capabilities has helped his company reduce transit times by more than seven days and landed logistics costs by more than $700,000.
“Averitt’s internet-based document and reporting has resulted in a tremendous improvement in collaboration among all our partners,” says Defnet.
Savings also were the key issue for Dick Ward, director, logistics and transportation for Hughes Network Systems.
“Con-Way Logistics provides logistics cost reductions year after year on top of excellent service to our customers,” says Ward.
For many companies, the primary reason to outsource their logistics is to allow their people to focus on the core competencies. For instance, James Wenger, director of traffic and logistics for National Store Fixtures Companies finds that Eagle Global Logistics’ operational excellence and handling of his account allows his staff to concentrate on value-added activities.
The manager of North American distribution operations for one of the largest router manufacturers in the world says that Choice Logistics has allowed his company to provide overall better logistics support than his company could have accomplished internally.
Al Sinram, PC&L manager for Dynamic Manufacturing, says that TransGroup Worldwide Logistics’ easy-to-use tracking software allows his people to spend time taking care of customers and not worrying about our freight.
“Our production materials flow to our plants with little involvement by our staff, so we can do what we do best — make things,” says Sinram. “TransGroup has become more like a division of our company than a supplier.”
It is also clear from our readers that they now view their relationships with 3PLs as more than a short-term solution. They are looking for a strategic relationship. For example, Glenn H. Wood, director of logistics for Fujitsu Computer Products of America, says that Expeditors International put in the time and effort to develop a strategic partnership with his company.
“This partnership ensures that performance-based incentives are in place that cover key aspects of service,” says Wood.
Christoph Roeer, vice president of logistics for Wella, says that his company has worked with BAX Global on two projects this year.
“In both cases, they have proven to be a high quality solution provider and consultant, highly responsive, focused on tailoring their solutions to the customer needs,” says Roeer. “They combine a pragmatic approach for short-term solutions with long term strategic vision. BAX adheres to commitments and deadlines.”
Building the Partnership
Developing such a partnership usually requires a tremendous commitment of time and resources by the 3PL. Michael J. Duciewicz, vice president of supply-chain management for the Ricoh Corporation says that his company has been working with Menlo Worldwide Logistics for the past two and a half years, and they have become an extension of Ricoh.
“Menlo worked hard to understand our whole business, not just logistics,” says Duciewicz, adding that Menlo fits very well within Ricoh’s SCM culture of people, creativity and progression. “We have worked together to achieve a seamless business partnership.”
According to Duciewicz, Menlo worked hard to establish trust and respect from his company, and now builds on the relationship. From an operations standpoint, Duciewicz says that Menlo pays attention to a careful balance between levels of customer satisfaction and overall costs, not only for Ricoh but also for the customers being served. He also compliments them for first-rate technology.
“Menlo also understands that systems do not replace people,” says Duciewicz.
If a 3PL is going to be a close partner, that provider must share the same values as the company it serves.
Pattie McAlister, a Six Sigma black belt for the Dow Chemical Company, says that BDP International shares the same quality values as her company.
“BDP has the people and technology within their organization to contribute to a very mutually beneficial partnership,” says McAlister. “They are continually looking for ways to improve processes and drive down costs. They are very responsive to requests for information.”
Problem Solvers
The mark of a truly great 3PL for many readers is the ability and willingness to take on the problem-solving role with end-use customers. Handing over this customer-relations role is an act of trust that is not given lightly. For example, Mark J. Hogan, vice president, logistics for H&K Dallas, says that his company has been using Pegasus Logistics Group for three years, during which time the 3PL has grown its time-definite business with his company from 15 percent to about 90 percent.
“When a customer calls in with a problem, we can promise that Pegasus will take care of it quickly and efficiently with very little cost to my company or my customer,” says Hogan. “Due to their superior customer service, Pegasus has made pricing a much lower priority.”
Such deep partnerships allow companies to leverage the expertise of 3PLs to achieve benefits often beyond the capabilities of the companies themselves. For example, Patrick Sake, warehouse manager for City Brewery says that Total Logistics Control works very closely with its customers from start to finish. “They monitor our product forecasts, inventory levels, policies and space requirement in a very timely professional and courteous manner.”
Elisa Dailey, Xerox’s parts fulfillment manager says that Kuehne & Nagel’s USCO division “provides us with a virtually seamless logistics solution with very positive impact on our business and customers.”
John Butler, director of international logistics for Leapfrog Enterprises says that the experience and relationships that Commodity Logistics has in his industry has proven beneficial time and time again.
“They are completely committed to our project and goals,” he says.
For manufacturers with global operations, a 3PL with coverage of all their markets and customers has become an important selection criterion. For example, James Fernandes, international transportation manager for Sonoco Products, a global manufacturer of industrial and consumer packaging solutions with approximately 17,400 employees at more than 300 manufacturing and sales locations in 32 countries, needed a 3PL with true global logistics service.
“Panalpina has met that challenge providing service and support to our operations throughout the world,” says Fernandes. “Equally important, when issues arose effecting service, Panalpina has quickly devoted whatever resources were necessary to overcome problems and get operations back on track.”
Import & Export
Along with global coverage, there is also the need for a broad range of import/export services. Steve Garrett, vice president of global supply chain and logistics for Timex, says that GeoLogistics provides Timex with Customs services.
“We are also working on a vendor-managed inventory solution with Geo to support our Far East manufacturing and distribution operations.”
This year, we also received a number of nominations for freight brokers, who have clearly helped their customers find capacity and deal with carriers better than the companies could manage on their own.
One common challenge for outsourcing to brokers has always been maintaining good communications and information visibility, but Jeff Nianick, owner and sales rep for Ruby Robinson, says that Real Time Freight Services offers the best freight communication system he has seen during his 20 years in the produce business.
“Real Time Freight helps us streamline our freight information to all of our carriers, as well as our other three offices,” he says. “The software is so easy to use that everyone can use it. The value and return on our investment has been incredible. We plan on using their software and services as long as we remain in the industry. Real Time Freight has not only become a vital service for us, their staff and customer service is the best we have experienced.”
Carrier Connections
Perhaps the most basic type of outsourcing is transportation services, and in our program, carriers of all types also received their share of Supply Chain Partner nominations. This year motor carriers and package express companies received the most recognition, apparently because of their reliability and their expanding range of services and technology capabilities.
For example, Wendy Hedin, logistics manager for the global chemical company Special Materials Company, says that Jevic Transportation moves her company’s hazardous chemicals throughout the U.S.
“Jevic always knows exactly where my cargo is at every moment,” says Hedin. “Their service is swift and reliable. Their customer service is personal, personable and effective. Billing is accurate and fair.”
Keith Quick, purchasing manager, mechanical logistics for CSX Transportation, says that Overnite Transportation has continually come forward with win/win proposals on logistics cost savings for his company. As an example, he points to a truckload consolidation program for storage and distribution of high volume consumer materials.
“Overnite has handled this well,” says Quick, adding that CSX has begun consolidated and scheduled LTL pickups with key suppliers for mutual cost savings. “Overnite helped us reduce our costs for developing an internal logistics management system for shipment-by-shipment mode and carrier selection. Responsiveness has always been high all across our very large rail network. A valued business partner in every way.”
For Wallace L. Eslick, president of General Cordage & Packaging, reliability is the key. He says that Old Dominion Freight Lines is on time, has great rates and knowledgeable personnel in their local and corporate support locations.
For air express services, Linda Petroline, logistics administrator for Sierra International, says that FedEx has “helped us establish shipping arrangements to our foreign customers that are both economical and efficient.”
Steve Garrett, vice president of global supply chain and logistics for Timex, says that UPS continues to be a strong partner with his company.
“We are jointly working on a trade direct air model for small package delivery that will allow Timex to complete U.S. retail store door deliveries from a ship point over eight thousand miles away,” says Garrett.
Counting on Consultants
Supply chain-oriented consultants received dozens of nominations, both for their technical expertise in helping implement new systems and for their ability to improve business processes. For example, Maj. Tim Hawkins, chief, purchasing and supply-chain management for the United States Air Force, says that IBM Consulting’s expertise is helping to transform the Air Force Materiel Command’s annual $5bn weapon system supply chain to adopt best commercial practices in purchasing and supply-chain management.
“IBM’s support helps us to meet efficiency and effectiveness goals to provide optimal support to our nation’s war fighters,” says Hawkins.
With the emphasis today on better business processes, consultants are clearly playing a more important role for companies seeking best practices and business transformation. Mark Hardison, director of global supply-chain management for Banner Pharmacaps, nominated Deloitte Consulting for demonstrating leadership in combining the Supply Chain Council’s SCOR model with its proprietary SPEED and Pharmaprint tools, which he says have guided his company through a business transformation initiative.
Along the same lines, Bill Shearer, demand chain manager for Akzo Nobel Surface Chemistry, says that Supply Chain Consultants’ forecasting work has made a significant improvement in his company’s S&OP processes.
“Their Zemeter software has also increased process visibility in compiling forecasts,” he says.
Ultimately, companies have to operate their supply chains without the help of the consultant, so high value is placed on making this transition as smooth as possible. For example, Frank Slaughter, director, production planning and inventory management for British Petroleum’s Fabrics & Fibers business unit says that Logistics Resources International works very hard in building the internal client capabilities.
Rather than just implementing a software solution, he says LRI helps clients establish initial process redesign, the proper organizational structure and supply-chain data metrics before software is even discussed.
“Clients capture immediate benefits, establish credibility and develop a pay-as-you-go philosophy,” he says.
Of course, one of the key roles that consultants play today is helping companies implement new technology to gain its full value as quickly as possible. John Goione, manager, logistics systems for BMW of North America, says that ESYNC has been an invaluable partner in preparing his company for a major WMS implementation.
“We consider ESYNC a strategic partner in our operations,” says Goione.
When very large implementations are the challenge, the role of the consultant is even more important. Larry Owens, principal engineer with Lockheed-Martin praises the supply-chain technology support his company has received from Unisys. As an example, he points to how Unisys tackled a challenging project on a very short schedule with a set of difficult deliverables that involved three different contractors.
“They exceeded all deliverables, beat the schedule by two months and came in under the project cost estimate,” says Owens. “I could not have asked for more.”
As a number of our readers noted, supply-chain outsourcing can go well beyond logistics, transportation and fulfillment. For example, Thomson Corporation outsourced its entire distribution center project to industrial developer, The Alter Group. Steve Gibson, vice president of real estate for Thomson, praises the Alter Group for its “incredible client focus, adaptability and superior performance in delivering our warehouse ahead of schedule and on budget.”
Technology Touted
Just about every type of supply-chain application was nominated, including planning, sourcing, global supply-chain management, transportation and logistics, warehousing, fulfillment, radio frequency identification, analytics and international trade logistics. Large planning oriented systems received their share of nominations from companies, primarily because their solutions provided a wide range of benefits throughout the supply chain. For example, Frank W. Reinig, supply network, global business process owner, for Procter & Gamble, says that SAP has allowed his company to provide significant collaboration capabilities and to define business processes.
“All of our business requirements are reflected in the platform solutions that SAP has provided,” says Reinig. “We are fully prepared to meet emerging supply network planning and execution challenges.”
Mark Hardison, director of global supply-chain management for Banner Pharmacaps, praises PeopleSoft for continuing to develop their own supply-chain technologies as well as to enhance the capabilities of the J.D. Edwards applications it recently acquired.
Providing software is not enough today, especially for complex systems. Users expect their technology suppliers to make sure the implementation goes well, and then provide ongoing support whenever needed. Alison Guest, a Six Sigma black belt with Caterpillar Logistics Services in the U.K., says that Logility’s flexible forecasting and inventory planning system is easy to control and to adapt to the 3PL’s changing business needs.
“Logility provides timely, relevant support from friendly and highly skilled consultants,” she says.
Just as software users expect after-sale support, so do buyers of all types of machinery, vehicles and high-tech devices. The need for after-sale parts support has become a critical component in business success. Not surprisingly, many readers nominated vendors of solutions for best-in-class after-sale support, especially if they also provided cost reductions and inventory savings. For example, Paul Smith, materials manager, global logistics for SGI, says that Baxter Planning Systems help the company maintain high customer satisfaction while managing inventories in over 300 inventory locations worldwide.
“The combination of Baxter’s Prophet software, its support team, and SGI’s experienced service personnel have enabled us to shrink the worldwide inventories by more than 34 percent,” says Smith. “SGI has realized immediate and sustained savings in repair activities, and showed substantial increases to our service levels.”
Similarly, Thomas H. Walter, director of purchasing and strategy for Parts Now! LLC, says that within six months of implementing Servigistics parts management software, his company was able to reduce its inventory investment by 25 percent while simultaneously improving its parts availability.
The group manager of maintenance for one of the largest truck rental companies in the world credits PartsRiver for providing knowledge, data, system capacity, and proprietary search engines enabling the reduction of redundant part numbers used to purchase repair parts by a factor of six. The normalization of SKUs enabled target pricing and target sourcing resulting in a 9.7 percent reduction in parts acquisition cost, netting more than $10m in savings.
“Our ongoing relationship with PartsRiver gives us time-sensitive pricing, supersession and obsolescence updates for all parts,” says the truck maintenance manager.
Measuring Up
Of course, the ultimate test for whether a software vendor is a great partner is how well the application measures up to what was promised.
Chuck Franzetta, chief executive officer for consulting firm Franzetta & Associates, nominated RedPrairie because it passed this test with flying colors. Not only does RedPrairie provide effective logistics software at an affordable price, according to Franzetta, but also it “actually works when it’s installed.” He says competitors’ products work in “customized presentations during sales presentations, but not when actually installed.” He also points to RedPrairie’s guaranteed installation within a specified timeframe, often three months, at the price initially quoted.
“RedPrairie is continuously investing in an improved-performance, easier-to-use product, which provides the CRM benefit that logistics software is supposed to deliver,” says Franzetta.
Similarly, Dave Niemann, a director with Electronic Arts, says that he nominated Irista for two reasons: its agility in deploying this best of breed solution at his company, and because of its commitment to customer success.
For Al Mazany, manager, transportation and logistics for FMC Technologies, the measure of a great partner is a willingness to customize the software to meet his needs. He praises TransportGistics for helping it to establish entirely new systems and procedures for his company’s traffic needs.
“It isn’t rare that most suppliers enthusiastically discuss new procedures, regardless of the implementation difficulties,” he explains. “But it is rare to have those requests meet with no resistance at a fair price, and implemented with expediency.”
Supply-chain Execution
We received the most nominations for execution-oriented applications, which include transportation management, warehousing management, fulfillment and similar applications that can provide quick cost savings and return on investment. For example, Amit Kalra, a business analyst with Best Buy, says that Yantra has the best product in the marketplace for order management and fulfillment.
“Yantra has shown vision and great depth in its solution,” he says.
In the case of Darice Inc., the requirement was far more than just execution software. As Michael Birkholm, chief operating officer for Darice explains, the company needed a redesign of its entire distribution process. TECSYS was a key partner in the project.
“Our goal was to fully integrate a WMS, TMS and material handling control system,” says Birkholm. “The challenges and obstacles were great, but by persevering with us, TECSYS has allowed us to go live on a process that will carry us into the future.”
For example, Ralph Alleman, purchasing director, logistics, for Lucite International, explains that his company initiated a relationship five years ago with Cornerstone Systems. Initially, it moved all of its TL and intermodal freight to them for sourcing and operations. Next, Alleman established point-to-point rates and state-to-state rates for over-sized and dimensional (OD) flatbed, flatbed, van and intermodal.
“We began sharing the savings with Cornerstone when they were able to find backhauls and other lower cost carriers on a quarterly basis,” says Alleman.
Lucite was thrilled to be able to make such progress with its outsourcing relationship with Cornerstone and was able to gain better reporting metrics, but Alleman says the company had even more ambitious goals in mind. In early 2004, the company worked with Cornerstone to control its outbound packaged freight in the Memphis area, its largest shipping location. The goal was to lower total outbound freight costs. By better consolidating loads, Lucite improved its weight per load 8.5 percent for flatbed, OD flatbed and regular truckload van service. The consolidation for TL alone lowered effective freight costs by 3 percent.
“As we saw the value increase, Cornerstone pushed an IT solution which would link our IT order system with their developing freight management software,” says Alleman. “We see continued opportunities in this area.”
Chuck Adams, chief information officer and vice president of distribution for Hibbett Sporting Goods, provides specific details about his favorite partner, Manhattan Associates. He calculates that Manhattan’s applications lowered distribution center costs from 2.18 to 1.99 percent of sales, decreased delivery time from an average of 23 to 10 days, increased accuracy from 94 to 99.4 percent, increased cross-dock percentage from 41 to 79 percent over two years, and enabled a 24 percent growth in units processed while headcount was reduced from 119 to 102.
John Horvath, a supply-chain specialist with the Boeing Company, explains that for six years, Catalyst International has provided an outstanding warehouse management system for Boeing’s implementation on the Air Force C-17 program.
“This implementation has contributed to cost reductions in the flow of production parts to the final assembly line,” he says. “We’re currently working together on improvements in upstream supply-chain processes using additional WMS functions and fully expect to realize cost reductions in this area as well. We have a strong partnership with Catalyst and believe they’re in with us for the long haul.”
While direct cost savings are probably the most often mentioned benefit from execution applications, readers also pointed to improvements in efficiency and productivity. Joe Stannard, vice president of logistics at CooperVision, nominated Voxware because it has proven to be a very successful voice picking technology for “ eaches.”
“This system has allowed CooperVision to improve picking rates by 50 percent,” he says.
Rob Shafer, manager of carrier alliances for The Dial Corporation, says that Nistevo’s transportation management solution has provided an opportunity to truly manage its transportation needs with broad functionality, system flexibility, enhanced visibility, and the ability to manage costs while driving service improvements.
“I’m not sure how we managed our business before the Nistevo implementation,” says Shafer.
Similarly, Lance Pratt, president of Advantage Logistics, says that Tranzact Technologies’ rating and routing tools and management reporting gives him the visibility he needs to manage all of his inbound and outbound transportation.
For Charles H. Kerr, equipment control manager for NYK Logistics, productivity is definitely the key measure of a great partner. He says that his company installed WhereNet’s RTLS system in its Long Beach, Calif., yard that has 1,350 parking slots. The WhereNet system has increased velocity of the yard, visibility and productivity.
“The productivity of yard tractors has increased by 50 percent and carriers now spend less than 20 minutes in the yard for a double transaction. Drivers do not have to get out of their cab except to lower and raise their landing gear.”
Measures of Greatness
For other readers, easy implementation and ease of use is extremely important. Chris Hunt, IT manager for Peake Printers, says that he was able to replace carrier specific shipping systems with the Pitney Bowes TMS system, which also provided him with central reporting and one platform to support all users on training.
“I can also compare rates with just three clicks of the mouse,” says Hunt. “The backend is a Microsoft SQL database, so I can use Crystal Reports to extract data with ease.
For companies operating globally, the need is for comprehensive capabilities that ultimately deliver competitive advantage. For John Wells, vice president, import traffic, for Phillips Van Heusen, his company’s partnership with GT Nexus met the challenge. The requirement was to centralize the management of global ocean freight operations.
“Effective ocean services management is critical to our supply chain,” says Wells. He credits GT Nexus for introducing more efficiency, standardization and control to his company’s ocean freight process — from initial service procurement through bid tender, analysis, negotiation, optimizing service agreements, allocating freight strategically with ocean carrier partners, and managing contracts and continual updates in a single online system.
“We can design and execute customized ocean transportation solutions that meet the unique cost and service requirements of each operating group,” he says. “Ultimately that helps us gain the most value from our investment in transportation and reduces the cost of managing a worldwide ocean freight network.”
Supply-chain visibility is among the key features that companies look for in technology solutions of all types. Herman Stiphout, the recently retired executive vice president and chief financial officer for Efficient Networks, says that he found the visibility his company needed with Dynamic Cycle-time Reduction Associates.
“DCRA helped us design a new supply chain and implement an automated sales and operating procedures tool that provided supply-chain visibility from customer orders to ultimate deliveries,” says Stiphout. “They saved us millions in operating costs and reduced obsolescence in 2003.”
William Parr, vice president of logistics for Giant Eagle, echoed this idea. He nominated G-Log, which he says will become the foundation for supply-chain visibility.
“Its ability to provide and document events along the supply chain to companies both inside and outside of our network, with different levels of technology truly provides end-to-end visibility,” says Parr. “They have also met every time line committed to on each phase of the project. This nomination is not so much what they have done today as it is for what we will now be able to accomplish with them.”
An area of tremendous interest in this year’s Supply Chain Partner’s program is RFID and similar automatic identification technology. Companies need to understand the technology, the true value and how it can fit into their supply chains. Roy Gallagher, director of business systems for Doskocil Manufacturing, says that ClearOrbit’s rich history of successful implementations across multiple ERP systems made it the obvious choice to provide Doskocil’s RFID and barcode inventory management solutions.
“With the clear success of the project to date, we write to nominate them for the 100 Great Supply Chain Partners list,” he says. “Barcode compliance labeling and guided picking were areas where we needed rapid implementation of a flexible, trouble-free system that didn’t require custom coding and costly maintenance, and ClearOrbit has performed beyond our expectations. Their RFID platform will enable us to meet upcoming tagging requirements without moving to a separate system.”
Of course, RFID is not just about software. The hardware involved is equally important. Barry Craver, senior application development manager for Old Dominion Freight Line, nominated two automatic identification vendors: Symbol Technologies and Intermec Technologies.
“The Symbol handhelds we use in our pickup and delivery operations have significantly improved ROI in these operations,” says Craver. “Intermec’s data collection devices support our dock operations and have shown excellent ROI. Both of these companies are great to work with and are very responsive to customers’ issues.”
Of course, the ultimate purpose of all supply-chain technology is to share vital information, so readers offered kudos to technology suppliers that are helping to make communication faster, cheaper, and better. For example, John Streff, EDI administrator for Milwaukee Electric Tool, says that Inovis has substantially reduced costs for its EDI program.
“Both their VAN and EDI Trusted Link 400 products are excellent,” he says. “Their customer support solves our problems quickly and correctly the first time.”
Conclusion
We thank all of the readers of Global Logistics & Supply Chain Strategies magazine who participated in the 2004 100 Great Supply Chain Partners program. 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 in next year’s 100 Great Supply Chain Partners program.
Click here to view the 100 Great Supply Chain Partners list!
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