Transportation Management News — October, 2007
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Pet-Supplies Manufacturer Replaces Manual Processes with TM System, Gains Efficiencies
From very small beginnings in 1961, Petmate Inc. has grown to be a market leader in the world of pet supplies, generating $300m in revenue and operating 1.5 million square feet of office, manufacturing, and distribution facilities. With brand names Petmate and Dogloo, the company is the nation's leading manufacturer and marketer of plastic kennels, pet carriers and structural foam doghouses, as well as a leading supplier of cat products, soft pet bedding, and feeding and watering systems. The Arlington, Texas-based company recently implemented Oracle Transportation Management, which eliminated manual processes and increased efficiencies across Petmate's logistics operations.

Wal-Mart Awards DHL Wide-Ranging Transportation Management Contract
Under a new contract, DHL will provide Wal-Mart with air express and ground shipping throughout the U.S., supporting the retail giant's 4,000 stores nationwide. The new contract nearly doubles the volume and revenue generated through the previously existing relationship.
Through the new agreement, DHL will continue its exclusive specialty product repair and return delivery service for Wal-Mart, and has also been awarded responsibility for all specialty product transportation for Wal-Mart stores and Sam's Clubs nationwide. In addition, Wal-Mart has added DHL as one of its primary carriers for its state transportation program for all outbound shipments from assigned states, including transportation between and among Wal-Mart retail stores, distribution centers and suppliers.
DHL also continues its exclusive management of several customized services for Wal-Mart, including its optical product logistics program; fulfilling major online holiday floral distributions such as Valentine's and Mother's Day; and handling all express transportation from Wal-Mart mailroom distribution centers.

Ryder to Manage All Transportation Functions for Italian Manufacturer's China Operations
Ryder System, which provides supply chain, warehousing and transportation management solutions, says that Merloni TermoSanitari, a leading Italian manufacturer of residential and commercial heating and water heating systems and services, has named Ryder to manage its supply chain operations in China.
"We selected Ryder because of their proven ability to design and manage solutions for complex supply chains," says James Zhang, director of logistics and supply chain for Merloni TermoSanitari (China) Co. Ltd.
Under the multi-year contract, Ryder will consolidate and optimize Merloni TermoSanitari's network from 18 distribution centers to one centralized and more than 10 regional distribution centers. Through a turnkey solution that includes Ryder vehicles, Ryder will manage all warehousing and distribution functions, including the network of third-party logistics (3PL) providers that supports outbound transportation from the distribution centers to more than 200 Merloni customer locations throughout China. A sophisticated Ryder warehouse management system will help optimize inventory levels, improve order accuracy and deliver visibility throughout Merloni's supply chain.

McLeod TMS/Comdata Interface Is Designed to Streamline Trucking Companies' Accounting
McLeod Software, which provides dispatch and accounting fleet management software to the trucking industry, says a new interface between its LoadMaster enterprise transportation management system and the Comdata MasterCard payment application will enable companies to streamline accounting and reporting processes for discretionary business expenses as well as enhance control and payment visibility in a single card program. Additionally, the system is designed to provide enhanced virtual card capability for safe, secure one-time payments.
These financial transactions are reviewed and allocated to the appropriate general ledger account through Comdata's Web site and then downloaded to LoadMaster at the end of a designated billing cycle. Organizations can choose to create a new accounts payable voucher or new general ledger distribution, along with reviewing a full history of transactions.
"Customers using the Comdata MasterCard payment application can leverage the LoadMaster interface to streamline accounting and reporting processes, eliminate redundant data entry and improve overall accuracy," says Robert Brothers, manager of product development at McLeod Software. " This integrated solution reduces paperwork and cycle time because the interface simplifies payment and the distribution of individual transactions to the general ledger. This application is a true cost-saver and the latest in a long list of LoadMaster capabilities that streamline operations for maximum competitive advantage.""Comdata introduced the concept of electronic payment disbursement to the transportation industry almost 40 years ago," says Brett Rodewald, president of Comdata. "By joining forces with one of the leading management software providers, we can now deliver seamless data integration to our customers. The new Loadmaster/Comdata MasterCard interface allows our customers to more efficiently manage business processes for optimum efficiency, support their drivers, and improve cash flow and profitability."

With Acquisition, Menlo Worldwide Instantly Enhances Position in China
Chic Logistics, a Shanghai-based 3PL and transportation management services provider, has been snapped up by Con-way's global logistics subsidiary, Menlo Worldwide.
Chic has a full-service portfolio and network with 130 operating sites in 78 cities, ranging from the highly industrialized eastern sectors as well as the mainland's interior provinces.
"Chic Logistics is highly respected within China as a superior operator with an excellent service reputation among customers," says Robert L. Bianco Jr., president of Menlo Worldwide. "This is the most strategic acquisition in Menlo's history. With Chic Logistics' domestic capabilities and network, we immediately become a major player in the intra-China market--the next great growth engine for transportation and logistics."
Johnson Shen, CEO of Chic Logistics, says: "Distribution and logistics management is an exceptionally dynamic market in China. Joining with Menlo will help us to accelerate growth, introduce more services for customers, and quickly build into new markets with international capabilities. Our clients see this as a logical and welcome step for Chic Logistics and our employees. It is a good match of two successful businesses with complementary individual strengths. Together we will offer a new, stronger business value to the market."
Menlo's China operations will be based at Chic Logistics' headquarters in Shanghai.

Capgemini Transportation Report Focuses on Role of Software Solutions for the Industry
The creation of integrated software solutions is a persistent trend within the transport sector, according to Transportation Report 2007 from Capgemini.
Based on research among 38 important software suppliers in Europe and America, the report offers an extensive analysis of the software solutions that are available worldwide to the transport sector. In addition, the most significant trends and challenges are described, and pointers are provided on how to operate efficiently in an increasingly complex market.
Within the transport sector, integration of software appears to be even more important than in previous years. In particular, the integration of transport software with ERP, CRM and related software packages is high on the suppliers' agendas. Seventy-six percent of the participating suppliers says this is an important development. Integration with mobile solutions, such as board computers, is also mentioned frequently. The persistent trend towards integration, according to the researchers, mainly owes to the increasing complexity within the transport and logistics sector.
Luc Scheidel, principal transport and logistics service provision consultant at Capgemini Netherlands says: "The planning and execution of transport is becoming increasingly complex, partly owing to globalization, the growing demand for flexible supply chains and shareholders demanding operational excellence. In order to deal with the complexity, it is very important to be able to operate flexibly and to communicate with different systems. This is only possible if applications and systems are integrated."
According to 40 percent of suppliers, service-oriented architecture and RFID are playing important roles.
Besides analysis of important trends and challenges, the Capgemini says the Transportation Report throws light on a number of current strategic themes: the role software can play in the rising trend of offshoring, how the planning of FTL/LTL can be set up as efficiently as possible, and how the use of standard software can deliver a competitive advantage to an organization.
To download the report:

SkyBitz Trailer Tracking Technology to Aid Stagecoach Cartage Operations in Mexico
Stagecoach Cartage and Distribution, an El Paso, Texas-based transportation services provider, has received approval from the Mexico Secretaria de Comunicaciones y Transportes to operate in Mexico.
With its truckload fleet of 350 trailers outfitted with tracking technology from SkyBitz, Stagecoach should have real-time visibility to every trailer in the fleet--whether they're in the U.S. or Mexico.
"With the SkyBitz GLS tracking technology on our trailers, we can pinpoint the exact location of all our assets so that we know immediately if a trailer is in a different location than it should be," says Scott McLaughlin, president of Stagecoach. "This capability is especially important for trailers that are operating south of the border. The SkyBitz solution allows us to enhance security and operate more efficiently with fewer assets."

In Europe, Once-Ignored Airports Now Viewed as Attractive Airfreight Markets
Not so long ago the conventional wisdom in Europe was that the big central cargo hubs on the continent--Frankfurt, Amsterdam, Paris, Brussels and maybe Luxembourg--would see the most cargo growth. But freighter operators, once focused entirely on the major cargo hubs, now are exploring new markets on the periphery of the continent.

CXT Software, Psion Teklogix Jointly Target Courier, Delivery Industries
A co-marketing agreement between Psion Teklogix, solutions provider for mobile computing, wireless data collection, imaging and RFID, and CXT Software, which offers courier software and mobile resource management technology, should enable each to provide advanced mobile computing solutions to the North American courier and delivery industries.
X Dispatch, CXT's flagship product, is an enterprise-level software package that accommodates unlimited rating schemes, includes address validation, and provides a comprehensive dispatch module with intelligent dispatching capabilities, the ability to locate and track drivers using real-time data, and automatically communicate proof of delivery information. X Route manages routed deliveries and offers complete route management, including contract billing, scheduled stop control, route details, barcodes, driver manifests, and more. The distribution component allows for automatic shipping notification and over, shortage and damage reporting, all in real time.
X Dispatch and X Route will work in tandem with Psion's Workabout Pro handheld computers.

Past Transportation Management News Issues:
August, 2007

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