Defense Transportation Journal

Focus on Safety

February 2013

www.ndtahq.com

A Department of Defense Mandate and the Global Supply Chain What Goes Around Comes Around Trends in Hospitality

How One Hotel is Finding New Ways to Care for Customers

An Afghan Odyssey: Gifts to Troops, Brave Ambushes, Bombs

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February 2013

FEATURES February 2013 • Vol 69, No. 1

A Department of Defense Mandate and the Global Supply Chain

8

By Dr. Jim Giermanski Publisher

LTG Ken Wykle, USA (Ret.) Editor

Kent N. Gourdin Managing Editor

What Goes Around Comes Around

By Bob Jaffin

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Sharon Lo | sharon@ndtahq.com Circulation Manager

Leah Ashe

Copy editor

Jeff Campbell Publishing Office

NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761 Graphic Design & Production ManAger

Debbie Bretches

Trends in Hospitality How One Hotel is 18 Finding New Ways to Care for Customers An Afghan Odyssey: Gifts to Troops, Brave Ambushes, Bombs

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By Maria Abi-Habib Photographs by Lorenzo Tugnoli

Advertising Account Manager

Jim Lindsey

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departments A-35 News | Lori Leffler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Editorial | Dr. Kent N. Gourdin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Defense Transportation Journal (ISSN 0011-7625) is published bimonthly by the National Defense Transportation Association (NDTA), a non-profit research and educational organization; 50 South Pickett Street, Suite 220, Alexandria, VA 22304-7296, 703-751-5011. Copyright by NDTA. Periodicals postage paid at Alexandria, Virginia, and at additional mailing offices.

Subscription Rates: One year (six issues) $35. Two years, $55. Three years, $70. To foreign post offices, $45.

Single copies, $6 plus postage. The DTJ is free to members. For details on membership, visit www.ndtahq.com.

Postmaster: Send address changes to: Defense Transportation Journal 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296

President’s Corner | LTG Ken Wykle, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 NDTA Membership form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Chapter spotlight | Jeff Campbell. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 professional development | Irvin Varkonyi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 honor roll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 chairman’s circle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Bookshelf Ideas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 index of advertisers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

A-35

NDTA Headquarters Staff LTG Kenneth Wykle, USA (Ret.) President

Looking to the Future and Remembering the Past

COL Mark Victorson, USA (Ret.) VP Membership Patty Casidy VP Finance

Lori Leffler, CTC, A-35 Chair

Lee Matthews VP Marketing and Corporate Development Leah Ashe Manager, Database Sharon Lo Manager, Meetings and Publications Jeff Campbell Manager, Chapter and Membership Support Rebecca Jones Administrative Assistant to the President Carl Wlotzko Coordinator, Banquet & Special Events For a listing of current Committee Chair-persons, Government Liaisons, and Chapter & Regional Presidents, please visit our Association website at www.ndtahq.com.

Editorial Objectives The editorial objectives of the Defense Transportation Journal are to advance knowledge and science in defense logistics and transportation and the partnership between the commercial transportation industry and the government transporter. DTJ stimulates thought and effort in the areas of defense transportation, logistics, and distribution by providing readers with: • News and information about defense logistics and transportation issues • New theories or techniques • Information on research programs • Creative views and syntheses of new concepts • Articles in subject areas that have significant current impact on thought and practice in defense logistics and transportation • Reports on NDTA Chapters Editorial Policy The Defense Transportation Journal is designed as a forum for current research, opinion, and identification of trends in defense transportation and logistics. The opinions expressed are those of the authors and not necessarily of the Editors, the Editorial Review Board, or NDTA. Editorial Content For a Media Kit and Archives, visit www.ndtahq.com/education_dtj.htm Dr. Kent N. Gourdin, Editor, DTJ Director of the Global Logistics & Transportation Program, College of Charleston, Charleston, SC 843-953-5327 • F 843-953-5697 gourdink@email.cofc.edu Sharon Lo, Managing Editor, DTJ NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761 sharon@ndtahq.com

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Global Government Strategic Manager, The Hertz Corporation

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s the Action 35 (A-35) Committee looks forward to 2013 and our future, it is vital that we remember our roots. The A-35 Committee was created in the early 1970s as the Under 30 (U-30) Committee. The committee was created because NDTA leadership recognized the need to reach out to young people and get them actively involved in the organization. This involvement was needed to assist young people with professional growth and to ensure the future of the association. As I understand the history, the Commanding General of the Military Traffic Management Command (MTMC) took the action of working with young people in his command to see how to get them more involved in NDTA. The task was assigned to then Army Captain now Colonel (retired) Denny Edwards who worked to establish the program.

The U-30 Committee was geared towards members 30 years old and younger.

However, as the Committee developed and expanded, its name was changed to the Action 35 Committee. This name change better represented the age of its members, the purpose of the committee, and the Actions it implemented. Just some of the A-35 accomplishments over the years include: • Established a National A-35 Committee seat on the NDTA Board of Directors to represent specific interests of young professionals • Successfully had annual dues for A35ers reduced • Established a regular A-35 Column in the Defense Transportation Journal • Executed mini-forums geared specifically to A-35ers • Made A-35 Panels, Presentations and Meetings a regular part of the National Forum program • A-35 Awards were established to recognize the importance of A-35 recruiting

February 2013

• A-35ers championed scholarship fundraising, including the A-35 Duck Race • An A-35 Executive Council was created to further the goals of the committee • A-35 Fun Run/Walks were introduced, quickly turning into tradition • The A-35 mentoring program was launched Many of these activities and programs are held at the National Level and in chapters, with the most notable being the LTG Edward Honor Mentoring Program.

The NDTA mentoring program is unique in offering opportunities for both military and civilian members to participate and gain mentorship from senior leaders working for different organizations.

The A-35 Committee has been fortunate to have had dynamic leaders throughout the years including Denny Edwards, Mickey Frank and Betty Yanowsky. Each A-35 Chairperson has brought insight and energy to the program as it continues to grow. Today’s active A-35ers benefit from the efforts of those who came before us, and we will continue to remember and thank them as we enhance our program. This year look for more networking and mentoring programs, more A-35 chapter activities, as well as an enhanced Duck Race and Fun Run/Walk at the Forum. DTJ

EDITORIAL Dodging a Bullet Dr. Kent N. Gourdin, Editor, DTJ Director, Global Logistics and Transportation Program College of Charleston

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he recently postponed strike by the International Longshoremen’s Association (ILA) once again highlighted the critical importance of transportation to the nation’s economy. Impacting East and Gulf Coast ports, a strike by dockworkers would have stopped the movement of all ocean cargo other than perishable commodities, automobiles and Department of Defense (DOD) goods.

The ramifications of such a stoppage are staggering. The West Coast lockout in 2002, when the economy was on firmer footing, lasted 11 days and cost the nation an estimated $1 billion per day.

We have become such a global economy that any interruption in transportation services is felt almost immediately whether it involves the movement of people, cargo, or both. There is no doubt, however, that our ports are especially critical given that they facilitate the transfer of goods between ocean and domestic transport networks. If the ports close, shippers have few options. Goods can be rerouted through other ports, but, in the case of a massive closure such as the one threatened, the options are few and involve major changes to a company’s supply chain.

Shifting to airfreight may be possible, but the cost is prohibitive. The other choice is to wait out a strike and risk stockingout customers whose on-hand inventories are depleted before a settlement. In short, higher costs, dissatisfied customers, and upended supply chains are inevitable.

Carriers suffer as well, not only while the ports are closed, but once they reopen. Ship lines run tight global schedules that cannot easily be changed, so rerouting vessels is extremely problematic. Similarly, if cargo cannot be off-loaded, more cargo cannot be on-loaded someplace else. During the West Coast strike mentioned above, ships sat offshore waiting for the strike to end and even, in some cases, returned to the Far East from whence they had come. The reality is that,

while some US-bound freight was moved through Mexican and Canadian ports, they simply could not handle all of the diverted cargo. Once a settlement is reached, those disrupted vessels (and their cargoes) must be reinserted back into their respective rotations and normal operations resumed. On the land side, railroads and trucking companies have idle capacity which may not be useful for anything other than, for example, moving containers. Once the affected ports reopen, these same carriers are immediately swamped with cargo that they simply cannot move in or out of their respective ports fast enough. This surge can prove especially problematic for the rail carriers because of their fixed routes, resulting in saturation that slows movements and leads to lost cargo. Clearly, the transport system can take weeks, if not months, to completely recover from the closure of even some of the nation’s major ports, let alone the number involved in the ILA dispute.

As I’ve opined before, I think the public has no idea how important and crucial our transportation resources, especially our ports, are, to our quality of life. I’m not sure how many people even know a port strike was narrowly averted and is, as I write this in early January, still a possibility. News of the impending labor action was sparse until days before the strike was about to happen. Most people don’t really know what longshoremen do anyway (I spent years in Charleston before I really understood what the difference is between longshoremen and stevedores), so their concern regarding a strike is minimal at best. Indeed, assuming the stoppage doesn’t last too long, people may not notice it all.

However, we’d certainly all notice a protracted loss of our ports or any other component of our transportation system. The events of September 11, 2001, provided a glimpse of how much we, as a society, depend on air travel and how difficult living without that resource can be, even for a few days. Our reliance on the movement of freight is no less important, just a lot less visible. Hopefully, we will never have to discover what life is like without that capability. DTJ

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February 2013

PRESIDENT’S CORNER Challenges for 2013 LTG Ken Wykle, USA (Ret.) NDTA President

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s we enter a new year, much of the uncertainty from 2012 remains.

The focus on the economy, national debt, increased taxes, regulation, and reduced defense budget continues.

Logistics and transportation companies doing business with the government and military will have significant challenges in 2013. The Department of Defense will continue to seek ways to reduce costs and increase buying power. The Under Secretary of Defense for Acquisition, Technology and Logistics published a memo, Better Buying Power 2.0: Continuing the Pursuit for Greater Efficiency and Productivity in Defense Spending, on November 13, 2012. This memo outlines 36 initiatives for improving the way the Department does business. Additionally, this year is the start of the Department’s actions to reduce the defense budget by $500 billion over 10 years. The potential remains for even larger cuts. With the continued drawdown in Afghanistan, a smaller force structure, reductions in major acquisition programs, and a smaller number of service contracts, there will be fewer business opportunities in 2013.

The reductions in defense spending combined with a recovering economy, an uncertain regulatory environment, and an almost certain increase in taxes, result in an extremely challenging business environment. While DOD is championing the desire to maintain commercial capability and readiness, the reductions in business and the uncertain environment will make it difficult to attain this goal.

The government business opportunities are shrinking. Those dependent on government business should resize their capabilities in anticipation of reduced requirements. Successful companies will leverage technology, seek operating efficiencies, explore partnerships, innovate, and seek new

business. As the focus of the US Government shifts to the Pacific Region, government logistics and transportation providers should closely examine the published US Strategy to identify potential opportunities. These may include the re-stationing of forces, support of more military exercises, or the forward positioning of materiel.

Expected business opportunities for 2013 include the return of troops and materiel from Afghanistan, the planned stationing/ rotation of Marine Forces in Australia, the sustainment of Forces in the US and those Forces currently forward deployed in Europe and Asia.

The articles in this issue of the DTJ center around safety: safety for employees, safety for customers, and safety for our Armed Forces. Two articles in this issue, by Jim Giermanski and Maria AbiHabib, remind us that while budgets are restricted, the work being performed is still vitally important. As we seek ways to reduce costs and restructure the way we are doing business, we cannot neglect safety. In spite of distractions such as sequestration, we must remain vigilant to keep our equipment and our people welltrained and ready.

The OMB, OSD, and Military Services recently published a series of memoranda that constrain military/government attendance at all conferences. As a result, the Surface Deployment and Distribution Command suspended their annual training symposium for 2013. Many of you have commented about the need for this symposium, and have asked about NDTA organizing another event to provide the training and sharing of knowledge offered by the SDDC Symposium.

We have examined several options, but have not identified a good alternative.

We are planning for the 67th Annual Forum and Exposition in San Antonio,

Texas, 7-11 September 2013. We are developing excellent training and educational sessions, identifying speakers, and scheduling professional events. It is our intent to include some content similar to that provided in the SDDC training symposium. This is shaping up to be the primary event during the year for the transportation and logistics companies to receive training and to share knowledge on policies, regulations, and budgetary topics that impact their operations. Plan now to attend, reserve your transportation and room early. For more information visit our website www.ndtahq.com.

Thank you for your confidence in the Association and the daily contributions each of you make in support of our nation’s economy and to our national security. DTJ

W EL C ME

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www.ndtahq.com | 7

A Department of Defense Mandate and the Global Supply Chain

By Dr. Jim Giermanski, Chairman, Powers Global Holdings, Inc.

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hank goodness for counterfeit products. Their proliferation from somewhat innocuous golf clubs, and clothing, to potentially dangerous pharmaceuticals and electronics, have awakened law enforcement, and finally forced a major department of government to address the issue by mandating what a contractor must do to sell a product to that department. Now, not only the exploding volume of counterfeit products coming into the United States from abroad, but also the risk connected to some of these products in failing to function, or in functioning in a manner which threatens the users’ health and safety, have caused multiple law enforcement agencies to recognize the threat.

The problem is so serious that a National Intellectual Property Rights Coordination Center (IPR Center) was created in an attempt to enforce laws regarding the importation and production of counterfeit products. The IPR is significant as indicated by its membership including the FBI, US Immigration and Customs Enforcement (ICE), Homeland Security Investigations, US Customs and Border Protection (CBP), Food and Drug Administration’s Office of Criminal Investigations, US Army Criminal Investigation Command, Defense Logistics Agency (DLA), Air Force Office of Special Investigations, US Naval Criminal Investigative Service, among others.

Each has its own mission and purpose in addressing the counterfeit epidemic.

However, the focus seems to be on catching and prosecuting perpetrators of coun-

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terfeit crime. There seems to be little positive or proactive steps, however, to prevent the proliferation of counterfeit products other than law enforcement and punishment. Additionally, there seems to be little attention paid to the supply chain and the control of its elements, or in mandating a process or type of technology to address the actual flow of counterfeit goods. While the players and procedures inherent in the global supply chain are many; manufacturer, shipper, carrier, movement control, consignee, and port time and control; each can be addressed and virtually secured with the use of current technology. Why then, don’t governments mandate the use of these technologies? Finally, one, the Department of Defense (DOD) has done just that. It has mandated responsibilities to contractors to address the counterfeit issue compelling them to address the role of the global supply chain in controlling the counterfeit threat. Controlling the product from origin to destination would not only protect the public, but also produce additional revenue for the controlling stakeholder.

My analysis will focus on solving some, if not most, of the vulnerabilities associ-

February 2013

ated with control and movement of goods within the supply chain, specifically: verification of container contents at origin, identification of the actual person who certifies the cargo at origin, access into it throughout its movement, movement monitoring, and authorized access at destination.

This is accomplished by using a chain-of-custody process that can be offered today with off-the-shelf (OTS) container security devices (CSDs).

DOD’s Mandate

DOD has policies in place to ensure that its contractors do not sell DOD counterfeit products or products containing counterfeit components. The policies and rules are contained in the National Defense Authorization Act (NDAA) for Fiscal Year 2012, specifically Section 818, Detection and Avoidance of Counterfeit Electronic Parts. The NDAA mandates a DOD procurement policy to ensure its contractors’ products are high quality, effective products that also reduce any potential harm to its military users. Those contractors who sell to DOD must make sourcing decisions “ensuring traceability of parts” (Subsection B2). Furthermore, Subsection B3 states that suppliers who fail to do “due diligence” in this regard can be suspended or debarred as a supplier. Subsection C2(A) makes contractors liable for the use of any product containing counterfeit parts. Subsection C3 states that DOD contractors and subcontractors at all levels must use “trusted suppliers” that

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ensure the authenticity of the electronic parts contained in a product purchased by DOD. Furthermore, DOD contractors must use “trusted suppliers that have appropriate policies and procedures in place to detect and avoid counterfeit electronic parts and suspect counterfeit electronic parts” (Subsection 3C). Because DOD contractors assume the authenticity of their products and parts, they must be able to define the standards and processes used with respect to a “trusted supplier.”

Other subsections require a reporting system to notify DOD of any potential counterfeit parts or shipments.

Under subsections 2(A)(B) these suppliers must establish policies and procedures to eliminate counterfeit electronic parts from the defense supply chain, which policies and procedures shall specifically address: (i) the training of personnel; (ii) the inspection and testing of electronic parts; (iii) processes to abolish counterfeit parts proliferation; (iv) mechanisms to enable traceability of parts; (v) use of trusted suppliers; (vi) the reporting and quarantining of counterfeit electronic parts and suspect counterfeit electronic parts; (vii) methodologies to identify suspect counterfeit parts and to rapidly determine if a suspect counterfeit part is, in fact, counterfeit; (viii) the design, operation, and maintenance of systems to detect and avoid counterfeit electronic parts and suspect counterfeit electronic parts; and (ix) the flow down of counterfeit avoidance and detection requirements to subcontractors; and (B) establish processes for the review and approval of contractor systems for the detection and avoidance of counterfeit electronic parts and suspect counterfeit electronic parts, which processes shall be comparable to the processes established for contractor business systems.

There is also a requirement of reporting issues involving counterfeit products and the DOD contractor.

Essentially, we now have a government mandate which will force contractors dealing with DOD to use technologies 10 |

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A mechanic from the 401st Army Field Support Brigade works on a vehicle at Bagram Airfield in Afghanistan.

Having genuine parts is key to vehicle safety.

and processes readily available in OTS container security products which not only protect the integrity of the container, but also provide a legal “chain of custody” providing visibility from a manufacturers’ origin to the DOD user destination.

Meeting the Mandate and Instruments of Control: Smart Containers1

Counterfeit products are either surreptitiously inserted at origin, or during movement, especially in-bond movements, at trans-shipment ports which lack adequate security, or at the port facilities themselves. Smart containers can protect against all of these risks. The use of CSD hardware can mitigate and eliminate threats to the integrity of a shipment of products. These solutions begin at the container’s stuffing, and remain through distribution to destination where the unloading is controlled. There are a number of different types of supply chain security measures that are implemented to combat counterfeiting, tampering and theft.

The smartest containers offer a unique chain-of-custody process which provides for the verification of cargo by an authorized, identified person, real-time monitoring of container movement, detection, and even reporting of a container’s internal environment, as well as integrity for stuffing and securing the container at origin to its opening at destination. Smart containers vary in their “smartness”, some being more intelligent than others because of how they are equipped and programmed. Each type provides a different benefit for varying users.

February 2013

For Department of Defense trusted suppliers, the knowledge of the electronic products used in products sold to DOD can be verified from their manufacture for inclusion in another product and the shipment of that final product in a secured, monitored shipping container anywhere in the global or domestic supply chain. These DOD shipments can be monitored for any deviation from a prescribed route of travel, called geofencing. For instance, a container programmed with geo-fencing detects a variance between where it should be and where it is, suggesting a hijacking, or that it’s being sent to the wrong consignee or the wrong location. Each benefit is programmed based on the specific needs of the shipper, carrier, or consignee. And all of the supply chain shipment data from origin to final destination will be available in servers used by the global control platforms of the CSD provider, making any required report to DOD, Customs, or other entities in the supply chain easily prepared and provided. In addition to CSD providers, there are new advances in

New shipping containers like Cakeboxx Technologies’ box without doors help maintain supply chain safety.

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www.ndtahq.com | 11

container design and construction. For instance, Cakeboxx Technologies offers a shipping container without doors. In fact, its uniqueness and applicability for all types of cargo was highlighted by the World Customs Organization in its October 2010 edition of WCO News.

No system is 100% effective, and one cannot depend on technology alone. Because technology often overshadows the role of humans in security systems, container security systems have to include the identification of the party responsible and personally accountable for final inspection of the cargo prior to the container’s sealing, dispatch and subsequent international movement to destination.

Someone must necessarily be identified and responsible for confirming the cargo on the bill of lading or booking sheet, for activating the smart container system, and for sealing the container doors.

This responsible party must be vetted with respect to integrity and competence.

Equally, there must be a counterpart at destination. Both parties are electronically connected by a unique identifier to the smart container to complete the system.

Therefore, at activation, the authorized party becomes an integral element in the smart container security system, and once the container is activated by using an electronic key protocol, the identity of the authorized party who verified the cargo, electronic shipping data describing the cargo, and container number are saved and carried in the container’s CSD and can be transmitted at almost any time during the container’s voyage by satellite communication along with any opening of or tampering with the container, even reporting its own hijacking.

When a smart container is opened at destination by an equally accountable person and cargo is missing, or is not the cargo identified at origin and there were no breaches detected, recorded and reported, the identified person at origin who verified the cargo can face either disciplinary action, or worse, criminal action by appropriate authorities. Worldwide control center offers the capacity to serve as a third-party electronic record of the transaction recorded automatically in its servers. Thus, smartest containers offer an electronic receipt of delivery, accomplished by the opening of the container by a person at destination who 12 |

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is approved and authorized to open the container, which is provided by another specialized electronic key protocol usable only with and by an authorized individual at the point of destination. In summary, a smart container provides the following benefits: • Electronically identifies the authorized personnel stuffing and securing the container, and accepts and reports information like container/trailer number, booking data; • Carries and reports logistics data, including container number; • Detects and reports a breach in any part of the container in real-time or close to real-time; • Tracks the container through the supply chain; • Identifies authorized personnel unsealing container; and • Accommodates disparate logistics programs in communicating critical data.2 So far, European Datacomm (EDC), and GlobalTrak in the United States can today provide these smart containers which offer the chain-of-custody process.

Who Pays the Costs of the Mandate: There Is No Cost

The DOD contractor can make money by using these smart containers which diminish the insertion of counterfeiting products, contamination, loss, fraud, and other supply chain inefficiencies. To show the value of container security, Customs and Border Protection (CBP) commissioned the University of Virginia to determine the cost/benefit outcome to taking security measures. Published in a 2007 cost/benefit survey report, CBP reported the following with respect to benefits of simply participating in it’s Customs Trade Partnership Against Terrorism (C-TPAT) program: 1. Fewer examinations (34.4% decrease) 2. Better supply chain visibility (29.4% better) 3. Predicting lead-time (24.3% better) 4. Tracking orders (22.2% better) 5. Disruptions in supply chain (28.9% fewer)3 Unfortunately, it seems that the return on investment (ROI) is either unknown to, unappreciated by, or not significant enough to the user, to employ smart

February 2013

containers. Or the user is simply focusing on the costs involved in using smart container technology, not weighing the bottom-line benefits of a visible supplychain, and the automatic positive impact on counterfeiting activities and other supply-chain related costs. The NDAA mandate will force DOD suppliers to improve their bottom line if for no other reason than the positive financial impact and savings through Customs expedited treatment of containers using smart container containers as defined in the SAFE Port Act. The benefits of expedited shipments, alone, vary from $600 to $700 per container per move (Bearing Point Study, 2003), and $1150 per move (AT Kearney Report, 2005). Therefore, if a smart container costs you an additional $100 from origin to destination, and you save $1000 on the expedited treatment, what was the cost? Costs are associated with the loss or delay of cargo; counterfeit products; diversions; increased insurance premiums; supply chain disruptions; increased labor to reship or replace the cargo; business downtime; loss or delay in medication release; or the loss of sales. Benefits include minimizing financial risks, reduced inventory carrying costs, protection against counterfeiting; reduced or eliminated diversion costs, reduced out of stock, and reduced insurance costs.

A recent Stanford University study revealed that quantifiable benefits of security controls and technology included: • Improved Product safety – 38% reduction in theft/loss/pilferage, 37% reduction in tampering; • Improved Inventory management – 14% reduction in excess inventory, 12% increase in reported on-time delivery; • Improved Supply chain visibility – 50% increase in access to supply chain data, 30% increase in timeliness of shipping information; • Improved Product handling – 43% increase in automated handling of goods; • Process improvements – 30% reduction in process deviations; • More efficient Customs Clearance – 49% reduction in cargo delays; • Speed Improvements – 29% reduction in transit times; • More Resilience – 30% improved response time; and

• Higher Customer Satisfaction – 26% reduction in customer attrition and 20% increase in new customers.4 Other sources offer different, but compelling benefits to using smart container technology to include the US Congressional Budget Office, in March 2006. In a 2006 A.T. Kearney survey report, respondents stated that “…they need real-time data for accurate visibility into their supply chains.”5 The report further revealed that the US Department of Defense, itself, is now utilizing smart containers even though they are not the smartest containers. These smart boxes “…reduced overall losses (military supplies) to less than 8 percent.”6 Conclusion

Using smart containers protects against insertion of counterfeit cargo during its loading at origin, during its movement, during its presence at any trans-shipment port, during an intended or unintended diversion, and reduces the risk of fraudulent hard documents by virtue of original electronic documents that were carried in

the CSD and transmitted to control platforms to be stored in their servers. DOD’s NDAA requirements may actually move the United States forward in global container security management. Certainly, the Department of Homeland Security (DHS) and CBP are not doing so. DTJ

1 For an expanded treatment of smart containers, see Dr. Jim Giermanski, Smart containers: their use, their payback, WCO News, October 2009, pp. 23-25; and for an expanded technical treatment see Dr. Jim Giermanski, Container Security: Is it working?, Logistics Management, October 2009.

2 Robert W. Kelly, JD, Containing the Threat: Protecting the Global Supply Chain Through Enhanced Cargo Container Secuity, The Refore Institute, October 3, 2007, pp.8-9.

3 Abdoulaye Diop, Ph.D., David Hartman, Ph.D., Customs-Trade Partnership Against Terrorism Cost/Benefit Survey Report of Results, Weldon Cooper Center for Public Service, University of Virginia, August, 2007, p. 47.

4 Barchi Peleg-Gillae, Gauri Bhat, and Lesley Sept, Innovators in Supply Chain Security The Manufacturing Institute, Stanford University, July 2006, p. 4.

5 Smart Boxes, A.T. Kearney, July 28, 2006, p. 1.

6 Smart Boxes, A.T. Kearney, p. 2.

A confiscated counterfeit version of Cisco’s Small FormFactor Pluggable (SFP), a compact, hot-pluggable transceiver used for both telecommunication and data communications applications.

Failure of counterfeit models of the US Army’s Combat Application Tourniquet, available online and on the open market, can be lethal.

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the point that many products need to be moved into secondary or tertiary markets after initial sales. In addition, new technologies and products have vastly increased risks and vulnerabilities for the entire commercial/retail marketplace because of things such as lithium-ion batteries, nickel metal hydride batteries, the increased use of ethanol in gasoline, and airbags that depend on explosive charges to deploy. Very real risks exist from consumer and commercial products in the post-production transportation environment. Between March 1991 and October 2012, 132 air incidents involving batteries were recorded.

Many consumer products now routinely move from their original purchasers in a post sales environment back through the supply chain to manufacturers, repair facilities, for refurbishment, recycling facilities, and/or resale into secondary and tertiary markets. If one simply looks at eBay, donations to charitable organizations, and secondary market resellers, it is easy to find large quantities of goods being resold multiple times. Due to these shorter lifecycles and the higher content of hazardous (or potentially hazardous) material situations and conditions, both government and industry are being forced to re-examine everything from design to shipping, user warnings, and preparation of packaging for transportation. There is an increasing body of global regulations that place specific economic requirements and overall responsibility back on both OEMs and the prime production facilities. When one couples this with advances in science and technology that allow us to identify and measure many more of the specific materials that create environmental risks, the

ro

und

un ro

d

Com

By Bob Jaffin Author and Consultant

A

Wh a

es

T

oday the Transportation Corps motto “Nothing Happens Until Something Moves” has a corollary: hazardous material does NOT get created, used, and disposed of in a single location. That is why it is important to re-address lifecycle management of hazardous materials with a renewed focus on risk vulnerability and liability.

The first and most important function of Life Cycle Management of Hazardous Materials (LCMHM) is to reduce the need for or use of hazardous materials in a product, during production of that product, or by the end-user. The second function of LCMHM is to reduce the hazardous material and environmental impact (or footprint) of the entire production process. The third function is to minimize environmental impact on distribution, including all phases of packaging, handling, storage, and transportation. While previously recognized, the fourth and fifth functions have only recently become important. The fourth phase is to reduce the use of, and vulnerability/risks resulting from the use of, hazardous materials by purchasers, and planning for disposal of recycling materials. The fifth function is to explore ways to recover those materials to support both production and maintenance of the end product, as well as its successors.

DOD recognized some of these functions decades ago when it addressed initial deployment or fielding plans, and redeployment plans for major systems.

The initial fielding was to high profile fighting units, followed by fielding to less critical units and eventual replacement of systems in the active forces. Subsequent

t Go

es A

refurbishment (as necessary) and redeployment into the reserve component and/or into Foreign Military Sales followed. DOD, through DRMO and more recently Hazmat Pharmacies, has essentially “recycled into secondary and tertiary markets” everything from paint and lubricants, to locomotives and cranes.

While the DOD acquisition model has changed, and that approach is not necessarily the approach used today, the basic idea did capture the concept of secondary and tertiary markets. Over the last 40 years, DOD has addressed all of these, however, the last two functions have not received as much attention as necessary; the changing social and regulatory environment now make it necessary to refocus on the entire life cycle.

In the retail consumer electronics arena product life cycles have been shortened to

If one simply looks at eBay, donations to charitable organizations, and secondary market resellers it is easy to find large quantities of goods being resold multiple times. Due to these shorter lifecycles and the higher content of hazardous (or potentially hazardous) material situations and conditions, both government and industry are being forced to re-examine everything from design to shipping, user warnings, and preparation of packaging for transportation.

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end result is a more expensive and more restrictive environment.

In recent years, reverse logistics has grown into a field all its own, with at least one accredited institution offering graduate and undergraduate degrees in reverse logistics. The Reverse Logistics Association puts on a number of conferences across the globe, with a major focus on educational content. The main focus of the organization has been defining “reverse logistics”. Currently, that focus is concentrated on post-consumer aspects because a majority of the organization’s membership is part of the commercial marketplace (more specifically in the high-end consumer electronics segments).

That is not to say that everything down to juice drinks is not included in reverse logistics, but rather that the focus has been on the post original purchase aspects and the return of a product and/or packaging materials into the production stream.

It is the opinion of this author that reverse logistics really is much more than just post purchase product streams. One excellent DOD example dates back to the pre-Vietnam era. NAVCOMMSTA Adak took specific steps to recover heat from what at that time was all-electron tubebased electronics, to help reduce heating costs of the facility. A more recent commercial example in the commercial sector is found with Turbocam International, a company out of New Hampshire, which filters and recovers lubricating oils from its large precision machining operations itself for recycling. Given the company’s seasonal climate changes, it has also found a way to recover some of the heat value from those elevated temperature wastes to help maintain a comfortable working environment in the wintertime. Anywhere rotating machinery is used as part of production there are opportunities to recover lubricants and, in appropriate climates or at appropriate times of year, BTUs or heat value from lubricating products.

To paraphrase a line from Upton Sinclair’s masterpiece The Jungle, “meatpackers recovered everything but the ‘moo’ from a cow”. While this was written nearly a century ago, Sinclair’s concept of reclaiming/recycling hide, hair, fat, hooves, sinew, and bones perfectly captures the essence of life cycle management and hazardous material life cycle management. Today, rather than focusing solely 16 |

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A UPS Cargo jet is destroyed by lithium ion battery cargo, Philadelphia, PA, 2006.

SHORT LIST OF MAJOR AVIATION DANGEROUS GOODS INCIDENTS Location & Date

Incident

Cause

Chicago, IL 1986

American Trans Air DC-10 is destroyed

Still on the ground, oxygen generators are improperly placed in a forward cargo compartment causing a fire

Stewart AFB, NY February 1996

FedEx Flight 1406 crew forced to make an emergency landing after detecting smoke in the cargo compartment

Failure to declare a DNA Analyzer, which still contained small amounts of flammable liquids, as hazardous

Florida May 1996

ValuJet Flight 592 crashes in the Everglades

Oxygen generators are improperly packaged and stowed causing a fire which led to the plane crashing, killing 110 people

Dallas, TX 1998

DC-8 freighter aborts takeoff

Cockpit crew overwhelmed by carbon dioxide buildup from a cargo of dry ice

Los Angeles, CA April 1999

Fire on a NW Airlines flight destroys freight

120,000 CR2 batteries on two pallets from a passenger aircraft mishandled by ground personnel

Philadelphia, PA 2006

UPS 1307 Cargo Jet is destroyed

Fire caused by Lithium Ion Batteries

on initial use of an original production resource, one must also consider production and reuse, as well as packaging, handling, storage, and transportation.

This summer USDOT PHMSA promulgated HM 253 as an Advanced Notice of Proposed Rule Making (ANPRM). The rulemaking suggests that DOT will define and apply appropriate levels of regulation to reverse logistics. To date, the majority of

February 2013

comments and current basis for the eventual rulemaking, which will define “reverse logistics” is based upon inputs from the Reverse Logistics Association and its working definition of reverse logistics (based on consumer product post-purchase). While the rulemaking comment period for the ANPRM has closed, there is still ample continued on page 28

Design and Pre-Production

Disposal and/or Recycling

Hazardous Materials Lifecycle

Post-Purchase Use

Safety matches burst into flames during loading of a Continental Airlines flight in Panama, 1995.

Production

PHST

Batteries in audio visual equipment carried on to a Jetblue flight catch fire in an overhead bin.

An Apple iPhone with a bad lithium ion battery.

A FedEx DC-10 is destroyed due to a DNA analyzer with “trace quantities of flammable liquids�, Newburgh, NY, 1996.

An activated electric drill in a checked bag causes a fire during loading.

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Trends in Hospitality

I

n the hospitality industry having a good reputation is key to success. This is especially true in today’s environment, where all complaints have the potential to “go viral.” According to Forbes, this year in particular was a bad one for powers housekeeping staff to exceed custhe hotel industry, with consumer ratings tomer expectations in an entirely new way falling to their lowest levels since 2006. using the following cleaning tools: Several factors have a role in whether a guest has a positive or negative experi• Ultra violet (UV) sterilization wands ence, however nearly all sources point to – Wands from Purelight are used to hotel cleanliness as one of theAbout top guest the sterilize “high touch points” in the complaints. Traveler concerns over health Clean hotel such as telephones, clocks, light I Care Program issues over the past decade such as bedswitches, door handles and bathroom As part of its continued dedication to lead the hospitality industry bugs and outbreaks of the Norovirus havecare, Best Western® fixtures.International originated the I Care About the in customer compounded the need for those the that• brings Inspection black lights – These Cleanin program advanced cleaning technologies used black in hospitals, wands and hospitality industry to increase invest-such as UVlights are black usedlights. in Housekeeping the housekeeping staff at Best Western hotels in North will beindustry empowered As part of its and continued dedication to lead theAmerica hospitality ments in the best cleaning mainteinspection process to identify any bioto exceed customer expectations in an entirely new way using the in customer care, Best Western® International originated the I Care nance methods possible. matter, food particles following tools to clean logical guest rooms and common areas: and other program that brings advanced cleaning technologies used In response toClean this need, Best Western items that the human eye cannot see. in hospitals, such •as UVviolet wands black lights.

Housekeeping (UV) sterilization wands – Wands from Purelight International recently implementedUltra its “I • and Clean remotes or wraps for remote arehotels used toin sterilize touch will points” the hotel such staff at Best Western North“high America be inempowered Care Clean” program that uses advanced control device door – These unique seamas telephones, clocks, light switches, handles to exceed customer expectations in an entirely new way usingand the cleaning technologies, similar to those used fixtures. less remote controls are designed spebathroom following tools to clean guest rooms and common areas: in hospitals such as UV wands and black black lights cifically to black makelights it are easy toin disinfect • Inspection – These used the housekeeping inspection process to identify any biological lights, into common•areas guest rooms. before each stay, providing a cleaner Ultraand violet (UV) sterilization wands – Wands from Purelight matter, food particles and other itemsguests. that the human eye A pilot program was are initially at seexperience used tested to sterilize “high touch points” infor the hotel such cannot see. lect properties. Results thatclocks, guest light• switches, Pillow and as showed telephones, doorblanket handleswraps and – Extra pil• Clean remotes or wraps for remote control device – satisfaction at these locations lows and blankets are wrapped in 100 bathroomsubstantially fixtures.

These unique seamless remote controls are designed increased, including a 13.3 percent increase percent andeach biodegradable specifically it easy torecyclable disinfect before stay, • Inspection black lightsto– make These black lights are used in the in “overall experience,” a 12 percent in- a cleanersingle-use material providing experience for guests. to ensure guests housekeeping inspection process to identify any biological that products have been crease in “cleanliness of room,” and a 12.4and blanketknow • Pillow Extrathese pillows and blankets matter, food particles and otherwraps items– that the human eye cleaned just for them. percent jump in “intent to recommend.” are wrapped in 100 percent recyclable and biodegradable cannot see.

The program is now being rolled outsingle-use at the material to ensure guests know that these products have for beenremote cleaned control just for them.

• Clean remotes or wraps device – The Purelight ultra violet sterilizahotel chain’s more than 2,100 properties These unique seamless remote controls are designed tion light wand has been tested by the across North America. The program em-

CLEAN

CLEAN

I Care Clean Program

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specifically to make it easy to disinfect before each stay, providing a cleaner experience for guests.

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February 2013

• Pillow and blanket wraps – Extra pillows and blankets are wrapped in 100 percent recyclable and biodegradable

FITI Testing Research Institute (Korea), KITASTO Research Center of Environmental Sciences (Japan), Q-LAB (USA) and the University of Milano (Italy).Test results confirmed a 99.9% sterilization rate for germs including E-coli, H1N1, Norovirus, Pneumonia, Salmonella, and How does tHeAureus.

PurelIgHt Staphylococcus Theultra anti-microvIolet sterIlIzatIon wand work? bial properties of UV-C light have been The since anti-microbial properties of UV-C light used the 1930s to kill germs (includhavebacteria, been usedtHe since PurelIgHt the 1930s kill ultra How does ing viruses, fungito and mold). germs (including bacteria, viruses, fungi vIolet sterIlIzatIon wand work?

While UV-C is invisible, given sufficient and mold). While UV-C is invisible, given intensity and exposure, it canit can killkillmost of sufficient intensity and exposure, The anti-microbial properties of UV-C light most of theresponsible germs responsible for causing the germs for causing illness. have been used since the 1930s to kill illness.

In addition to the “I Care Clean” progerms (including bacteria, viruses, fungi The Purelight has been tested by the FITI gram, Best While Western is exploring agiven collaband mold).

UV-C (Korea), is invisible, Testing Research Institute KITASTO orative service program that would allow sufficient intensity and exposure, it can kill Research Center of Environmental Sciences housekeeping staff and to the better serve guests (Japan), Q-LAB (USA)responsible University of most of the germs for causing by allowing guests choosea 99.9% the time Milano (Italy).Test resultsto confirmed illness. sterilization for room germs including: they want rate their cleaned (morning The Purelight has tested the FITI or and•been the level of by service they • afternoon) E-coli Pneumonia Testing Research Institute (Korea), KITASTO • H1N1 • Salmonella would like performed. Best Western-led • NorovirusCenter •ofStaphylococcus Research Environmental research showed that at times aureus itsSciences guests (Japan), Q-LAB (USA) and the University of perceive housekeeping as an inconveMilano (Italy).Test results confirmed a 99.9% nience during their stay. Best Western sterilization rate for germs including: hopes that this combination of programs • E-coli will increase guest satisfaction and give the • Pneumonia • H1N1a reputation•for Salmonella brand being at the fore• Norovirus • Staphylococcus front of caring for customers’ needs. aureus DTJ

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www.ndtahq.com | 19

An Afghan Odyssey Gifts to Troops, Brave Ambushes, Bombs

By Maria Abi-Habib Photographs by Lorenzo Tugnoli for The Wall Street Journal

G

ARDEZ, Afghanistan—Back home in Watertown, MN, Courtney Mittelstaedt selected her husband’s Christmas gifts with the care and sweet mischief of a newlywed.

She bought Legos, a plastic duck in a Santa Claus suit and Christmas treeshaped marshmallows, “his favorite candy,” said Mrs. Mittelstaedt, a 20-year-old hairdresser. She used Spider-Man wrapping paper to remind him of the last time they went to the movies, before her husband, Army Private First Class Cody Mittelstaedt, went to war 7,000 miles away.

“He’s gone and Christmas is so hard without him,” said Mrs. Mittelstaedt, who married last year. “Buying gifts and wrapping them up for him makes me feel like he’s involved and he’s here with me.”

Her husband’s presents will join 6.4 million pounds of mail the US Postal Service estimates it ferries in December from families, friends and kindly strangers to US

troops in Afghanistan. Senders pay roughly $15 to send an average-size package.

After Mrs. Mittelstaedt wrapped, sealed and addressed the gifts to Forward Operating Base Gardez, she took them to her Post Office, where the workers know her by name. She has become a regular customer, sending packages of letters, toys and candy at least once a week since her husband was deployed overseas three months ago.

A ’Pony Express’ crew gathers for a morning briefing in Kabul before heading out on a mission.

Trucks carrying mail to American soldiers leave the main warehouse, escorted by armored vehicles.

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The contractors who truck the mail across Afghanistan, braving Taliban ambushes and roadside bombs, call themselves the ‘Pony Express.’

“Everything is so serious there, it’s war,” she said.

“So when he gets the packages I want him to smile and not think about his day. I don’t know if it takes off the weight, and I’m sure it doesn’t work like that, but I can pretend, I guess.”

Postal Service offices across the US funnel packages to Afghanistan through its International Service Center in Newark, NJ. Then they travel by air— usually via Manama, Bahrain—to Bagram Airfield outside of Kabul, according to a Postal Service spokeswoman.

From Kabul, the delivery of Christmas letters, trinkets and toys to troops in combat bases is the job of private contractors, including Innovative Logistics. The Florida-based military contractor moves US mail by truck across some of Afghanistan’s

On this trip the convoy of trucks and armored vehicles was headed to Forward Operating Base Gardez, across Logar and Paktia, two dangerous provinces in eastern Afghanistan.

most dangerous terrain, braving Taliban ambushes and improvised explosive devices, or IEDs, planted on roadsides.

The men who carry the mail in heavily armed convoys—Americans, Bosnians, Afghans, Fijians—call themselves the Pony Express, in homage to the shortlived mail service that connected California with Missouri before the Civil War. “The US post service has rain, sleet or snow. We have all of that plus IEDs,” said Jeff Bedford, 38, as he rode in a mail convoy during a three-hour drive this month from Kabul to Gardez, capital of the insurgent-filled Paktia province.

A private security guard waits for his mail convoy to regroup outside another base on its way to Gardez.

Mr. Bedford’s convoy brought spare fuel canisters, and each crew member carried a medical kit. They also brought Pop-Tarts, beef jerky, water and Gatorade for the ride.

The mail, including Pfc. Mittelstaedt’s gifts, traveled in 20-foot cargo trucks, accompanied by an escort of gun trucks— fortified and bulletproofed bank trucks with roof-mounted machine-gun turrets.

Innovative Logistics took over its mail delivery contract from another contractor in May and retained some previous staff, including Mr. Bedford, a former Marine who has been injured twice on the job.

The combat mailmen are well compensated because the work is so dangerous. For one, they can’t count on immediate rescue or medevac help that US troops take for granted. Contract employees doing work for the military in Afghanistan generally earn more than $100,000 a year.

At the height of the summer fighting season, two out of the three mail convoys would be “hitting the panic button” to notify the company headquarters of an insurgent attack, said Dan Wildtraut, 55, a former Sarasota, FL, police officer who serves as Innovative Logistics’ country manager.

Last year, Mr. Bedford’s convoy was struck by a 500-pound IED after delivering mail to the dangerous province of Ghazni in the southeast. The explosion knocked him unconscious and killed three Afghans and a Bosnian contractor. A Fijian driver died after he was thrown out of his vehicle and pinned beneath a gun truck.

When Mr. Bedford awoke, his team was under heavy fire from insurgents.

He grabbed his gun and fought back, he said, his adrenaline masking the pain from two ruptured spinal disks. He and his men called for help but waited nearly five hours for a coalition quick-reaction force to arrive from Ghazni, about 13 miles away.

Lt. Col. Miroslaw Ochyra, spokesman for the Polish military that is responsible for Ghazni province, said the quick reaction force arrived at the ambush site “later than usual” because it was deployed five times that day, including a mission to assist Polish soldiers who had come under fire.

When the soldiers finally found the mail convoy, they asked Mr. Bedford if they could call in an Apache helicopter strike to destroy the two disabled gun trucks with a Hellfire missile. The convoys often carry registered mail, including classified documents, which can’t fall into enemy hands.

“I said, ‘Rock on, whatever works,’” Mr. Bedford recalled. “Typically, we burn them, but they wanted to use a missile.

Fine with me. Whatever got me out of there fastest.”

On this latest trip, Mr. Bedford’s convoy passed the site of two fresh IED explosions. One had blown a crater large enough to swallow the front half of a cargo truck.

The convoy then began a long climb to an elevation of 10,000 feet on rough, icy roads, at one point wedged between the mountainside and a sheer cliff.

A security guard checks the road from the gun tower of an armored vehicle.

The convoy passes the site of two fresh IED explosions; a crater created by one attack engulfs the front of a cargo truck.

Ensuring a Safe Journey >> Interview with Todd Wilcox CEO, Innovative Logistics

Where do you begin in preparing for these missions?

Training plays a crucial role in mitigating risk and keeping employees safe. A majority of Innovative Logistics’ employees (approximately 80%) draw on their training as former US Military Service Members (mostly USMC). In addition, all employees spend one day out of each week in training. This includes range fire, medical drills, task- and mission-critical skills training, training required by ISAF, as well as in-depth after action reviews.

Drivers deal with treacherous roads in addition to all the other dangers out there—how is their training different?

Driver training and safety are a top priority when traversing Afghanistan’s treacherous roads. We provide a full program of instruction for new drivers. This includes trips three to four times per week. Drivers ride-along at first, then undergo a 90-day probationary period. Drivers are expected to be respectful of the Afghani people and laws; aggressive driving is one driver behavior that we have had to curb since taking over the contract.

What sort of materiel do your missions require?

It takes a lot of specialized vehicles and equipment to maintain a safe convoy.

Cargo trucks, gun trucks and/or armored vehicles with specialized tracking and monitoring devices give us in-depth transparency. Personal protective gear and weapons, as well as basics such as medical kits, fire extinguishers, and extra fuel are standard necessities. We have three lines of communications on all convoys for redundancy.

What other safety measures do you take?

Concern over counterfeit parts prompted us to build our own secure supply chain for our trucks to ensure the motor pool is only restocked with genuine Ford parts.

The efforts have been so successful that we are often called upon to supply parts to other contractors.

While most of the work being done is not classified, information and operation security are always closely monitored.

Employees are briefed on what information they can and cannot share when communicating with family and friends. www.ndtahq.com | 21

The convoy traverses Afghanistan’s rough, icy terrain.

Soldiers sort through the new mail.

Convoy trucks regroup outside F.O.B. Shank.

A private security guard waits for his mail convoy to regroup outside another base on its way to Gardez.

Pfc. Mittelstaedt receives well wishes from home.

About a dozen workers have died and many more wounded in the past three years delivering the mail here. The most recent employee killed, an Afghan gunner, died in a Taliban ambush near the eastern city of Jalalabad in September.

The company uses about 100 employees for a delivery service that the US military might require a battalion task force of 1,200 troops, given the required ground and air support.

When the convoy reached F.O.B. Gardez, two cargo trucks unloaded roughly 10 tons of mail. Pfc. Mittelstaedt was as-

signed to retrieve his unit’s portion, which he loaded onto a pickup truck.

He parked in front of a badly cracked concrete basketball court, which is flanked on one side by the “Wall of Heroes” bearing the names of 32 troops killed in action. A carved wooden sign proclaiming, “No girls allowed” hung above the entrance to the unit’s living quarters.

The troops from Task Force Rakkasan 1-187 swarmed the court to collect their mail under a cold winter sun.

Pfc. Mittelstaedt, who is a sniper, stood in the truck’s pickup bed and threw pack-

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ages to his colleagues for them to divvy into piles on the court. “I’ll just tell you this once,” he joked, “this pile here, this pile is the snipers’ pile.”

The letters and packages came mostly from families and friends. But there also was mail from individuals and groups that send care packages to random soldiers.

These gifts usually include candy, hygienic supplies and, for some lucky troops, home-baked pies.

Pfc. Patrick Pease, a 21-year-old soldier from Indiana, got his lucky turn that day.

After three months in Afghanistan, he received two packages from the Blue Star Mothers of America, a volunteer group: Reese’s Peanut Butter Cups and M&M’s stuffed into Christmas stockings.

After dispatching his mail duties, Pfc. Mittelstaedt grabbed his Army-issued knife and slashed open his package. The 23-year-old smiled. He placed the Santaclad plastic duck on a shelf alongside Star Wars-theme Santa toys, previous gifts from his family. His rifle hung on nails in a plywood wall.

He also received a letter from a US family he didn’t know, Mr. and Mrs. Wendle of Spring Branch, TX. “Wishing you the most memorable Christmas yet, and wishing you home soon,” Pfc. Mittelstaedt read out loud. “From Donna.” He tossed the card on his Christmas shelf. “I don’t know ‘em,” he said.

Tuesdays and Thursdays—mail days— are “the best days ever,” he said.

Soon, the Pony Express riders were getting ready to head back down the treacherous road to Kabul, piling into their trucks as driver Miroslav Gogic, a 44-year-old former Serbian soldier blasted the music of pop singer Celine Dion, to the annoyance of his colleagues.

Medic Justin Perkins sat next to him in the passenger seat, shouting over the music and engine noise.

“There’s a lot of animosity between contractors like us and the Army,” said Mr. Perkins, 30, from Alaska. “They look down at us because we do the same job they do but get paid a hell of a lot more.”

On delivery days, there is no animosity, he said: “Everyone loves the mailman.” DTJ Reprinted by permission of The Wall Street Journal, Copyright 2012 Dow Jones & Company, Inc. All Rights Reserved Worldwide. License number 3071351364651.

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These events are conducted and attended by high-level military decision-makers, defense and other government officials, and industry leaders—the individuals who are setting and influencing the transportation, travel, and logistics agenda for the future.

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$400.00 – LIFE $99.00 – Regular (3 Years)

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$20.00 – SPECIAL RATE A-35 (35 years or younger) Military (Pay grade 03 & below + all enlisted grades) Government Civilian (Pay grade GS 10 & below) Retired (Not employed)

$6,895.00 – Chairman’s Circle Plus (Global or national company with multiple operating entities) $6,200.00 – Chairman’s Circle (Global or national operating company) $1,200.00 – Sustaining Member (National or Regional operating company)

$10.00 – Students

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www.ndtahq.com | 23

Chapter Spotlight NDTA Washington DC Chapter Jeff Campbell Chapter Liaison

“I

am loving MSC,” said Military Sealift Command Executive Director John Thrackrah, guest speaker at the DC Chapter’s November Luncheon. “It’s an exciting place all the time.”

This last Thursday in November (the chapter regularly holds luncheons the third Thursday of the month; November’s was moved to the next week due to the Thanksgiving holiday) fell right between two historic occasions for MSC. On November 13, MSC’s first Mobile Landing Platform ship, T-MLP-1, completed its first float out operation. Mr. Thackrah said this support ship is the first of three or four mobile platforms, which will provide vehicle and equipment transfers at-sea.

Just a few days later in an exciting example of partnership, MSC accepted delivery of the first joint high-speed vessel, USNS Spearhead (JHSV 1), which has kept the US Army-selected name after last year’s decision to transfer Army JHSVs to the Navy.

Mr. Thackrah discussed several other ships already at sea or on their way, including the USNS Wheeler, the SeaBased X-Band Radar (SBX), and the USS Ponce (LPD 15), which MSC converted to a staging base this year. Now AFSB-1, the Afloat Forward Staging Base is in the Persian Gulf.

How is MSC keeping up this pace?

“We have a very aggressive, cost-effective business model,” Mr. Thackrah said. “We see a very high potential for upward business for us.”

Mr. Thackrah finished his remarks by touching on MSC’s organizational changes, and pointed out that of the 9500 people at MSC, nearly 7000 are civilian mariners who go to sea. “I remind the rest of us, we’re here for them,” he said. “We’re all about our CIVMARs— that’s who we are.”

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Augustin Tellez, Executive Vice President of Seafarers International Union, thanked Mr. Thackrah for mentioning the crew members, especially for the work they did on the Ponce. “MSC has found a balance of spending enough money to get this ship in shape and living condition,” Mr. Tellez said. “The crews have had to overcome some major obstacles to get this going. To your credit—you and Admiral (Mark) Buzby (MSC Commander)—have acted accordingly, thank you.”

Maersk Line, Limited, Senior Vice President Bill Kenwell also noted that it’d been more than a year since Pakistan closed the ground lines of communication and “we (NDTA Industry and Government partners) haven’t missed a beat.”

Missed the Director’s presentation?

View slides at the NDTA website. To connect with the DC Chapter and find more information about upcoming events visit its website at www.ndtadc.org. DTJ

The NDTA Network expanded in 2012 as several NDTA Chapters formed, reformed, or grew. The NDTA Idaho and Shaw AFB Chapters held organizational meetings, and two new Southeast Region Chapters, Florida Pan Handle and Miami, are set to begin meeting this year. The All American (New Jersey), Mediterranean (Livorno, Italy), and New England (Massachusetts) Chapters reformed, and North Pole (Anchorage) grew from Category I to Category II. Find a chapter near you on the NDTA website (www.ndtahq.com).

NDTA DC Chapter President MG Charles Fletcher, Jr., USA (Ret.) and Chapter member, MSC Tanker Project Officer John Joerger greet MSC Executive Director John Thackrah (right).

February 2013

Your Professional Development It’s not free, but it doesn’t have to be expensive!

Irvin Varkonyi, President, Supply Chain Operations Preparedness Education (SCOPE) ivarkonyi@scopedu.com Learning Outcomes:

• Professional Development outcomes need motivated employees and committed employers.

• Planning your Professional Development requires specific goals clearly agreed upon between employee and employers.

• Careful cost planning will result in positive outcomes.

P

rofessional Development is evolving in its application and outcomes. Recent articles in business publications have pointed out both opportunities and hidden costs for organizations that recognize the need to enhance their workforce’s skills and knowledge through Professional Development. These articles have demonstrated both the value of learning and the means to overcome cost obstacles. Among the ways for employees to advance their Professional Development are: • Join a professional association • Attend conferences • Think locally available resources • Volunteer to use your skills and learn new ones • Utilize the internet (in balance with in person) for learning resources Some of these activities have costs, both significant and not, while some activities require good time management skills.

What is professional development?

“The process of improving and increasing capabilities of staff through access to education and training opportunities in the workplace, through outside organization, or through watching others perform the job. Professional development helps build and maintain morale of staff members, and is thought to attract higher quality staff to an organization.”1 Difficult economic times have motivated companies, organizations and individuals to conserve money; training and professional development is regarded by

many companies as areas where savings could be generated through postponing or reducing workforce training. Other options that are considered are to utilize less expensive learning such as selfdirected online programs. Measuring the impact of Professional Development or the lack thereof, has improved by utilizing quantifiable metrics such as sales, operational costs, quality, etc. where individuals are critical components of work processes.

Outside of the direct cost of paying for Professional Development, how could we consider indirect costs? Here are some suggestions in a recent Forbes Magazine article: 1. Time – Budget and measure the time you will give yourself for attending conferences. Consider dividing your annual work hours among travel, conferences, direct work and indirect work hours. Together with your management, allocate a minimum annual time commitment such as five percent. A 40 hour work week could provide two hours/week or 100 hours for the year.

2. Attention – Sharpen your focus on expected outcomes through research— “Professional Development encompasses general skills and specific skills.

The best professional development is based on your goals and your career opportunities. Do you know what skills and expertise will be valued by your company or ideal employers?”2 3. Opportunity costs – Prioritize your goals and the resources in a sequential order that will best achieve your goals.

As stated in the Forbes article, develop a pipeline of learning opportunities that enables reaching your goals. Use opportunity costs to compare choices and their intended benefits, allowing you to make the best choice. For example, what is the opportunity gained by attending a conference attended by your target audience versus not attending the conference?

How do you optimize resources to pay for your Professional Development? Consider the following, offered by Chrissy Scivicque in a US News.com article.3 1. Shift your focus – Professional Development is about your business, not just about you. Your company must see the benefit to them including the timing of their investment (the shorter the better.)

2. What’s in it for your organization?

– Describe the tangible, quantifiable benefits such as being able to take on more responsibility or save the company money by doing specific tasks in a more cost-effective way.

3. Give them options – Develop budgets for Professional Development which may include a split of costs between company and employer; or possible incentives for future production; or offer additional hours of work. A company will feel positive where employee and employer have a shared interest.

4. Be specific – When requesting financial support, be specific on the type, duration and expected outcome of a training course. Provide information via websites or hard copy marketing materials.

Seek, if possible, testimonials about courses from within your industry.

5. More bang for the buck – Tell your employer that you look forward to sharing your learning experience with others at your organization. The benefit of your professional development will go beyond yourself. Show this by offering a specific plan on how this will be done.

This will demonstrate your preparedness and ability to execute the plan.

6. Handle disappointment – Your initial request may not be accepted. It should not be regarded as personal. Seek more information about why your employer feels this way. Learn more about the organization’s expectations regarding training outcomes. Then continue your investigation of Professional Development options with improved focus. continued on page 28

www.ndtahq.com | 25

HONOR ROLL

OF

SUSTAINING MEMBERS AND REGIONAL PATRONS

ALL OF THESE FIRMS SUPPORT THE PURPOSES AND OBJECTIVES OF NDTA

SUSTAINING MEMBERS 1-800-PACK-RAT AAT Carriers ABF Freight System, Inc. Accenture ACTCO-Afghanistan Logistics Air Transport International, LLC Airlines for America AIT Worldwide Logistics, Inc. Al-Hamd International Container Terminal American Maritime Officers America’s Central Port Amyx Apex Logistics Group Arven Services, LLC Associated Global System Atlas International Baggett Transportation Company Blue Water Shipping US, Inc. Booz Allen Hamilton Engineering Services, LLC Boyle Transportation, Inc. C2 Freight Resources, Inc. Cardinal Transport, Inc. Carlile Transportation Systems Carlson Rezidor Hotel Group CGI Chalich Trucking, Inc. Chamber of Shipping of America Citigroup Comtech Mobile Datacom Corporation Covenant Transport Coyne Airways Crowley Maritime Corp.

CRST Logistics, Inc.

REGIONAL PATRONS Ace Doran Hauling & Rigging Acme Truck Line, Inc. AFC Worldwide Express dba R+L Global Logistics Agile Defense, Inc. AKA a division of Korman Communities Alaska Marine Lines Alaska West Express All-Lift Systems, Inc. Allswell Supply Company American Moving & Storage Association American Trucking Associations Association of American Railroads ATS Specialized, Inc. Avis Budget Group Benchmarking Partners, Inc. Blkbird, Inc. C.L. Services, Inc. C5T Corporation CakeBoxx Technologies Cargo Experts Corp.

Cargotec USA, Inc. The Cartwright Companies Cavalier Logistics

26 |

CWT SatoTravel DAMCO Dell, Inc. Delta Air Lines DHL Express Dollar Thrifty Automotive Group Door to Door Storage Inc Dynamics Research Corporation Enterprise Database Corporation Express-1, Inc. Fikes Truck Line Fluor GE Aviation General Dynamics NASSCO General Dynamics/American Overseas Marine GeoDecisions GID - Get It Done, LLC Greatwide Truckload Management Hilton Worldwide Hub Group, Inc. Intercomp Company Intermarine, LLC Intermodal Association of North America (IANA) International Longshoremen’s Association (ILA), AFL-CIO International Organization of Masters, Mates & Pilots Interstate International J. B. Hunt Transport, Inc. Kansas City Southern Keystone Shipping Co. Knight Transportation Krown1 Fzc KU Transportation Research Institute Kuehne + Nagel, Inc. Labelmaster

LMI Lockheed Martin Aeronautics M2 Transport Mack Defense Marine Engineers’ Beneficial Association Martin Logistics Incorporated Mayflower Transit McCollister’s Transportation Systems, Inc. McLeod Software Medallion Transport & Logistics, LLC Menlo Worldwide Logistics Mercer Transportation Company Military Officers Association of America MV Transportation, Inc. National Air Carrier Association National Van Lines, Inc. North Carolina State Ports Authority NYK Logistics Americas Ocean Shipholdings, Inc. Ocean Star International, Inc. Omega World Travel One Network Enterprises, Inc. ORBIS Corporation OSG Ship Management, Inc. Overdrive Logistics, Inc. Panalpina Parts Associates, Inc. Pilot Freight Services PODS Port of Beaumont Port of San Diego Pratt & Whitney Preferred Systems Solutions, Inc. Prestera Trucking, Inc. Priority Solutions International Priority Worldwide Services Qualcomm Incorporated Radiant Logistics Partners LLC

Ramar Transportation, Inc. Ridgeway International USA Inc. Roadrunner Transportation Systems Rockey’s Moving & Storage, LLC Sammons Trucking Savi Technology, a Lockheed Martin Company Seafarers International Union of N.A. AGLIWD (SIU NA) Sealed Air Corporation Sealift, Inc. SEKO Service by Air, Inc Southwest Airlines Co. SRA International, Inc. Teradata Corporation Textainer Equipment Management (US) Limited The Exchange The Parking Spot The Port of Virginia TQL Transportation Institute Transportation Intermediaries Assn. (TIA) Transportation Management Services Tri-State Motor Transit Co. (TSMT) Truva International Transportation and Logistics TTX Company Tucker Company Worldwide, Inc. Union Pacific Railroad United Airlines United Van Lines, Inc. UTi Aerospace and Defense Group Wagler Integrated Logistics, LLC Women In Trucking Association, Inc.

Center for the Commercial Deployment of Transportation Technologies (CCDoTT) Ceres Terminals Incorporated Chapman Freeborn Airchartering Chassis King, Inc. Colorado Technical University CR Transport & Logistics EADS North America Enterprise Holdings Erudite Company Estes Forwarding Worldwide, LLC Europcar Car & Truck Rental Federal IT Consulting (FEDITC), LLC FlightWorks FMN Logistics Fox Rent A Car Garner Transportation Group Green Valley Transportation Corp.

Guard Transport, Inc. Hanjin Intermodal America, Inc. Hawaii Air Cargo, Inc. Holiday Inn Virginia Beach-Norfolk Hotel & Conference Center Hyatt Hotels & Resorts IdenTrust, Inc. Image Branding Group Innovative Green Solutions, LLC JAS Forwarding

K & S Trucking, LLC Kalitta Charters, LLC LMJ International Logistics, LLC Load Delivered Logistics, LLC LTD Hospitality Group Marriott International MCR Federal, LLC Meyer Trucking, Inc. Mi-Jack Products Military Sealift Command (MSC) Miramar Transportation Morten Beyer & Agnew M-Pak Incorporated Naniq Global Logistics LLC National Motor Freight Traffic Association, Inc. NCI Information Systems, Inc. NFI NovaVision, Inc. Numerex Corp Oakwood Extended Stay Lodging Overwatch, Inc. (A division of Avalon Risk Management) Owner-Operator Independent Drivers Association Pak Shaheen Freighters (Pvt) Ltd. Patriot Contract Services, LLC Payless Car Rental System, Inc. Philadelphia Regional Port Authority

PITT OHIO Port of Port Arthur Portus Professional Home Staging and Design, LLC Reckart Logistics, Inc. Royal Trucking Company Ryan’s Express Transportation Sea Box, Inc. Seabridge, Inc. Seatac Marine Services Semper Veritas Maritime Security Solutions SkyLink Air and Logistics Support (USA), Inc. SLT Express Way, Inc. SR International Logistics, Inc. Stratos Jet Charters, Inc. Tapestry Solutions, a Boeing Company TechGuard Security Tennessee Steel Haulers Trailer Transit, Inc Trans Global Logistics Europe GmbH TRI-STATE Expedited Service, Inc. Triton Systems, Inc. Tydenbrooks – Security Products Group U.S. Bank US Door & Building Components, LLC Utley, Inc. The Virginian Suites YRC Freight

Defense Transportation Journal

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February 2013

A Team Logistics LLC Aeroscraft American Roll-On Roll-Off Carrier Best Western International BNSF Railway Booz Allen & Hamilton CSX Transportation DB Schenker

DHL Global Forwarding Evergreen International Airlines, Inc. Global Aviation Holdings Inc. Hertz Corporation Horizon Lines, LLC IBM Innovative Logistics, LLC International Shipholding Corporation

CH

AN’S CIRCLE RM P AI

S LU

N’S CIR RMA CL AI E H C

AAR CORP. + PLUS Agility Defense & Government Services + PLUS American Shipping & Logistics Group + PLUS APL Limited + PLUS Atlas Air Worldwide Holdings + PLUS Bennett Motor Express, LLC + PLUS Bristol Associates + PLUS CEVA Logistics + PLUS Choice Hotels International + PLUS Coyote Logistics + PLUS Cubic Global Tracking Solutions, Inc. + PLUS Echo Global Logistics, Inc. + PLUS FedEx + PLUS Final Mile Logistics + PLUS Hapag-Lloyd USA, LLC + PLUS InterContinental Hotels Group Americas + PLUS Landstar System, Inc. + PLUS Liberty Global Logistics-Liberty Maritime + PLUS Maersk Line Limited + PLUS McLane Advanced Technologies + PLUS National Air Cargo + PLUS Omni Air International + PLUS Panther Expedited Services, Inc. + PLUS Ports America + PLUS Rock-It Cargo USA, LLC + PLUS Science Applications International Corp. (SAIC) + PLUS Supreme Group USA, LLC + PLUS TOTE, Inc. + PLUS Universal Truckload Services, Inc. + PLUS UPS + PLUS

KGL Holding Lockheed Martin Matson Navigation Company Inc. Norfolk Southern Corporation The Pasha Group R & R Trucking Raith-CTS Logistics SkyBitz, Inc.

These corporations are a distinctive group of NDTA Members who, through their generous support of the Association, have dedicated themselves to supporting an expansion of NDTA programs to benefit our members and defense transportation preparedness.

www.ndtahq.com | 27

Sharon Lo

DOD Website: USTRANSCOM Special Report

A

s the title suggests this section of the DTJ is supposed to recommend good books for NDTA readers. However, last month DTJ Editor Kent Gourdin recommended a video series on building the Alaskan Highway.

This issue’s pick is also not a book—you will have plenty to read, but it is all online.

I promise to get you back flipping pages soon, but for now, I want to recommend that you take a look at the Department of Defense’s website and its Special Report on the US Transportation Command.

USTRANSCOM served as host to American Forces Press Service writer Donna Miles for three days in October. Her goal was to write a full catalog of comprehensive articles for a Special Report, focusing on the new command strategy. I think you will agree that the Special Report is well done and truly captures the new command strategy, spirit of partnership, as well as the incredible mission that is so important to all of us.

continued from page 25

So far, we have discussed non-accredited Professional Development courses.

Learning and gaining skills beneficial to you and your employer can also come from earning degrees at institutions of higher learning, including community colleges and universities. These may have higher overall costs though, as the cost of university tuition has risen significantly.

Many employers cover accredited, university education, but may not cover the costs in full. This can lead to significant outlays by you, which should be looked at as we would a cost/benefit analysis in any business activity. What are options to manage your out of pocket costs? Take note of a new, relatively unknown Federal program enacted in 2009, the Pay as You Earn Repayment Plan: “Pay As You Earn will also provide significant relief to working people who returned to school for retraining during the recession. An online application makes it easier for borrowers to enroll and also al28 |

Defense Transportation Journal

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>> View the US Transportation Command Special Report at: http://www.defense.gov/home/ features/2012/1212_transcom/ lows them to compare . . . repayment programs. Borrowers who adhere to the payment arrangement can have their loans forgiven after 20 years and can qualify for forgiveness in 10 years if they hold publicservice jobs.”4 This program strives to reduce potential student debt which forces immediate repayment, regardless of job or earning status.

This column has shown some of the tools available to you to improve your capabilities and performance at your organization. Professional Development never ends. How and where you pursue it depends on you and your employer, on your motivation to succeed, and the commitment of your employer to maintain motivated employees who will lead the organization to corporate and organizational success. DTJ 1 www.BusinessDictionary.com.

2 Caroline Ceniza-Levine, Forbes Magazine, Oct 3, 2012.

3 Chrissy Scivicque, US News.com, Oct 4, 2012.

4 New York Times, Dec 31, 2012.

February 2013

continued from page 16

opportunity for public comment, and it is likely to be some time before the actual proposed rule making is published in the Federal Register. When the rulemaking is published there will definitely be another period for public comment.

The DOD, the entire commercial transportation segment, and all DOD contractors need to become aware of this and participate in the undertaking. If a new and broader definition of reverse logistics is promulgated it may allow “company owned material” and “materials of trade” that remove goods and materials previously handled as “waste”, (which require additional levels of regulation effort and cost), to be reclassified as reverse logistics streams, which may be treated as hazardous materials rather than as hazardous wastes.

Given the vast challenges of unit movements, especially returning or redeploying units, a proper, more inclusive, and broader definition of reverse logistics may prove extremely valuable in helping to bring better visibility and control of such movements, as well as in the redeployment of materiel from theater to theater or unit to unit. Since actual movements involve organic assets, as well as commercial assets, it behooves the entire NDTA membership to examine some of these issues to determine if there is a way to participate in defining reverse logistics and in helping define what regulatory strictures and/or relief can be written into the regulations. DTJ

DTJ Index of Advertisers APL......................................................C3 ARC...................................................... 19 Bennett International Group........... 15 Boyle Transportation.......................... 6 Budget................................................ 13 FedEx...................................................C4 Fluor.................................................... 11 Landstar..............................................C2 Maersk Line, Limited.......................... 1 TOTE...................................................... 9 UPS........................................................ 2

In a war fought with stealth fighters, smart bombs, and night vision, the most important weapon could well be thermal socks.

For more than 160 years, APL has been working to ensure our service men and women always have what they need to get the job done. Our unparalleled experience in ocean transportation and in-country logistics sets us apart from the competition. APL’s successful, long-standing relationship with the military proves that we have the resources and know-how to deliver when it counts. We won’t let you down, and more importantly, we won’t let down the troops who rely on the supply chain. We pride ourselves on being the mission critical link to success for our military yesterday and today, and we’ll be there for our troops tomorrow.

To learn more about how we serve those who serve, visit www.apl.com/usflag.

U.S. Flag Services

© 2011 FedEx.

It’s always good to hear that your shipment is arriving earlier.

FedEx now offers the fastest package service from the U.S. to Afghanistan. By using our FedEx Boeing 777 aircraft, we are able to take advantage of FedEx connectivity in the Middle East. Which means FedEx International Priority® and FedEx International Priority® Freight shipments now arrive in Afghanistan in only 4 days. Rely on our expertise for an earlier delivery of your shipment. fedex.com/international