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The 13th annual MM&D Third-Party Logistics guide P.26

January/February 2015 $15.00

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Turning on a

Publication mail agreement #40069240.

3PL Innovation Roundtable Page 20

Inside

4 Taking Stock 6 Supply Chain Scan 20 Innovation Roundtable 26 3PL Capability Guide 33 Guest editorial: E-commerce challenges 34 Problem? Solution! 36 Legal Link 37 Learning Curve 38 Materials Handling

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TAKING STOCK

Planning for the future N

imble and quick. Not a nursery rhyme, it’s a fact of life for third-party logistics providers in the e-commerce world. Welcome to our annual 3PL issue of MM&D. This is where we talk to service providers and their suppliers about the isssues that are keeping it interesting. This year we convened a roundtable of six panelists who all have businesses in the contract logistics realm. We sat down in January to discuss innovation. What is innovation? What creates it? And what does it look like? These are the questions we asked at our 3PL Innovation Roundtable on page 20, and the results are very enlightening. In fact, the conversation was so comprehensive that we ran out of space in this issue and will be running an extended version of the conversation online. Look for it in early March at www.mmdonline.com. Spoiler alert: we’ll be sharing lots of back-room secrets about reverse logistics! The second important piece of our third-party logistics coverage is the Capability Guide. This is the 13th year we’ve published this proprietary, Canadian information source. Starting on page 26 you’ll find a comprehensive listing of 3PLs that serve the Canadian market. What’s unique is our in-depth documentation of the capabilities and services each offers. Once you find one that has the services you require, turn to page 30 for an alphabetical directory of contact information for each one. We update this each year, so if your company missed out, please drop me a note. And that’s not all we have in store this issue. MM&D and friends presented our DC Cost Benchmarking study, along with a panel discussion on warehouse cost control, at the 2015 Cargo Logistics Canada conference in Vancouver in January. That report is on page 10. We’re also delighted to share guest editorials from Aaron Lalvani, of the Lalvani Group, on why it’s impossible to compete with Amazon, and from Kevin Squires at Konstant on how to make IT your best dance partner. It’s a great issue to kick off what we plan on making a great year from our new home at Newcom Business Media Inc. MM&D is proud to join Newcom’s group of publications and we are looking forward to sharing even more exciting developments as the year progresses.

Innovation

3PL Capabilities

Guest editorial

Turning on a dime: The 3PL innovation roundtable

The 13th annual MM&D Third-Party Logistics guide

Why fighting e-comm giant Amazon will never work

Problemsolution

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PUBLISHER/EDITOR-IN-CHIEF: Emily Atkins (416) 510-5130 EAtkins@bizinfogroup.ca ART DIRECTOR: Stewart Thomas (416) 442-5600 x3212 SThomas@bizinfogroup.ca SENIOR ACCOUNT MANAGER: Catherine Martineau (647) 988-5559 CMartineau@bizinfogroup.ca PRODUCTION MANAGER: Karen Samuels (416) 510-5190 KSamuels@bizinfogroup.ca CIRCULATION MANAGER: Barbara Adelt (416) 442-5600 x3546 BAdelt@bizinfogroup.ca

NEWCOM BUSINESS MEDIA INC. President • Jim Glionna Vice-President • Joe Glionna HOW TO REACH US: MM&D (Materials Management & Distribution), established in 1956, is published 6 times a year by Newcom Business Media Inc. EDITORIAL AND ADVERTISING OFFICES: 80 Valleybrook Drive, Toronto, ON, M3B 2S9; Tel: (416) 442-5600; Fax (416) 510-5140. SUBSCRIBER SERVICES: To subscribe, renew your subscription or to change your address or information, contact us at 416-510-5113 or 1-866-543-7888 ext. 3258, or visit our website: www.mmdonline.com/subscribe SUBSCRIPTION PRICE PER YEAR: Canada $84.95 per year, Outside Canada $159.95 US per year. Single copy price: Canada $15.00, Outside Canada $32.65 CDN MM&D is published 6 times per year except for occasional combined, expanded or premium issues, which count as two subscription issues. ©Contents of this publication are protected by copyright and must not be reprinted in whole or in part without permission of the publisher. DISCLAIMER: This publication is for informational purposes only. You should not act on information contained in this publication without seeking specific advice from qualified professionals. MM&D accepts no responsibility or liability for claims made for any product or service reported or advertised in this issue. MM&D receives unsolicited materials, (including letters to the editor, press releases, promotional items and images) from time to time. MM&D, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort. PRIVACY NOTICE: From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-800-668-2374, Fax: 416-442-2191 Email: privacyofficer@businessinformationgroup.ca Mail to: Privacy Office, 80 Valleybrook Drive, Toronto, ON M3B 2S9

January/February 2015  Volume 60  Number 01

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Printed in Canada Publications Mail Agreement #40069240, ISSN: 0025-5343 (Print) ISSN: 1929-6460 (Digital). We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage. MM&D is indexed in the Canadian Magazine Index by Micromedia Limited. Back copies are available in microform from Macromedia Ltd., 158 Pearl St., Toronto, ON M5H 1L3

Questions and answers from the industry

MM&D | January/February 2015

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SUPPLY CHAIN SCAN

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MM&D presents in Vancouver, p. 10

What to see, hear and do in Chicago, at this year’s materials handling extravaganza, p. 12

Ontario’s Ministry of Labour slaps safety offenders with fines, stop work orders, p. 15

The AV revolution Automated vehicles will have a significant effect on Canadian supply chains By MM&D Staff

new study from The Conference Board of Canada, in collaboration with the Van Horne Institute and Canadian Automated Vehicles Centre of Excellence (CAVCOE), Automated Vehicles: The Coming of the Next Disruptive Technology, estimates that self-driving cars could be on the roads by 2020-25 and economic benefits for Canada could total over $65 billion per year. “The potential scope for impacts of automated vehicles on Canada is profound,” said Vijay Gill, director of policy research at The Conference Board of Canada. “Self-driving cars could free up driving time, significantly reduce the number of car accidents, minimize road congestion and reduce the amount of fuel that we consume. However, these new vehicles will pose some economic and social challenges including possible job-displacement and required employment retraining.” The impact of AVs is significant with total potential benefits for Canada estimated at $65 billion. The cumulative potential benefits from the abovementioned factors are summarized as follows: • Fewer collisions - $37.4 billion • Saving drivers’ time - $20 billion • Fuel cost savings - $2.6 billion • Reduced traffic congestion - $5 billion There will also be wider economic and technological effects including substantial changes in land values as AVs increase sprawl and urban intensification. There is a strong likelihood that people will be willing to tolerate longer commutes if they are able to be productive in the vehicle, especially if it means trading a longer commute for cheaper housing. The study also suggests automated vehicles could play a significant role in preventing 1,600 of Canada’s current 2,000 annual road fatalities. “The future impact of this technology on Canada’s transportation system should be carefully considered,” said Peter Wallis, president and CEO of the Van Horne Institute. 6

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Volvo has already done significant road testing of its automated vehicle technology.

“Transportation in Canada is an enabler of our economy and future policy or legislative changes should encourage the deployment of this technology.” On the effects on freight transportation, the report states: “Road freight costs could be significantly reduced, while the efficiency of truck use could be greatly improved by removing driver working time restrictions. We anticipate a transition from the human driver 100 per cent of the time, to an “operator/driver” role where the truck takes on more and more of the driving task. This would likely be followed by a “chaperone” phase where one driver is initially responsible for a single truck before a single chaperone becomes responsible for multiple trucks in a convoy. After this, we anticipate that trucks will be driving unmanned. By far the biggest cost saving for trucking costs is the removal of the driver, as salary costs, expenses, health care, and insurance are removed or substantially reduced. Secondary cost reductions will result from improved fuel efficiency from the robot driver and reduced maintenance and repair requirements. This is because the truck will consistently drive as carefully as the very best human drivers do when they are at their highest level of performance. Overall, we estimate that 40 per cent of truck operational costs could be saved by automating the truck. In addition, it is possible that many truck operators will find that because the truck can work up to 20 hours a day, rather than being limited to 14 hours a day by a driver complying with working time regulations, an additional 43 per cent increase in vehicle efficiency can be achieved.” Jobs and trades will change as direct and indirect employment displacement MM&D | January/February 2015

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SUPPLY CHAIN SCAN tries related to the design and manufacture of sensors, software, etc. for AVs. self-driving vehicles While transit and transportation industries will being tested on the be directly affected, AV roll out will also impact road in Europe. any business involved in freight or passenger transportation: car-sharing, car-rental companies, insurance companies, retail and commercial building management (who provide large parking spaces). AVs will require active planning on the part of all levels of government and business. Leadership at the municipal, provincial and federal levels need may also occur for courier services, taxi and bus to incorporate the impact of AVs into urban planning, transit and the design drivers, auto insurance, driving instructors and of infrastructure projects and encourage the harmonization rather than parking attendants. fragmentation of such a huge undertaking. On the positive side, there will be new business The report suggests five potential priorities for Canada in anticipation of AVs opportunities for the auto and technological indus- entering mainstream use: • “Augment political leadership at the federal level, DONE DEALS comparable with what we see in other countries, Manitoulin Transport has purchased the less-than-truckload (LTL) division especially for the impact on vehicle standards, of Hi-Way 13 of Camrose, Alberta. Under the agreement, Manitoulin has the technology sector, the auto industry, and the acquired all Hi-Way 13 LTL division employees and related assets which include economy. Provincial and local governments are a fleet of trucks, tractors, dry and heated vans and a network of terminals in largely responsible for the delivery and operation Calgary, Edmonton, Provost, Wetaskiwin and Camrose. All freight will be of road infrastructure, but the federal government handled under the Manitoulin Transport banner. can play a coordinating role in order to encourage harmonization rather than fragmentation.” Manitoulin Global Forwarding has purchased Canfleet Logistics Ltd, of • “Enhance political leadership at the provincial Vancouver, British Columbia. Founded in 2005, Canfleet provides integrated and territorial level for transportation systems logistics solutions, ocean freight operations, and global supply chain manageand regulations. Transportation infrastructure ment to customers in the lumber, agriculture, scrap metal, and automobile investments are typically planned and impleexport industries. It also provides refrigerated transportation. All Canfleet mented based on forecasts of travel demand of employees, including its founder and former owner, and all assets have 30 years or longer. AVs will certainly be a reality transferred to Manitoulin Global Forwarding. well within that time frame.” • “Boost leadership at the municipal level to incorTrailer Wizards Ltd has acquired Bryant Trailer Services. With this purchase, porate the impact of AVs into urban planning, Trailer Wizards will add additional inventory, tooling, and mobile trucks, as transit, and the design of infrastructure projects— well as Bryant Trailer Services customers and 30 employees. The current and for the same reasons as above.” Bryant Trailer Services location on Rutherford Road in Brampton, Ontario, • “Measure the potential impact of AVs on Canadian has been closed. Trailer service for Bryant’s customers will continue at the businesses. For many, AVs will provide an opporTrailer Wizards’ Mississauga location at 1880 Britannia Road. Trailer Wizards tunity to reduce costs and do business more efficiently. Other businesses may be marginalized, assumes their current service agreements. unless they can adapt early enough to take advanSwissport will provide cargo and ramp handling services for Cargolux, Europe’s tage of the beneficial aspects of AVs.” largest all-cargo airline, at selected stations all over the world as the company’s • “Encourage the creation of a Canadian ecosystem to compete for a share of the global market for preferred supplier. The cooperation between Swissport and Cargolux covers a AV software, parts, and components—or at least five-year period and extends to stations in Europe and the US. ensure that we are not erecting barriers to this happening organically.” Egemin Automation Inc will automate the existing facility of a major snack The study was funded and received in-kind supfoods specialist in Mexico City, Mexico. Egemin will install 17 custom forklift AGVs, an automated battery exchange system, and Egemin’s Warehouse port from The Conference Board of Canada’s Management System. Transport will occur between shipping, storage, and Centre for Transportation and Infrastructure, The Van Horne Institute, and The Canadian Automated case-picking areas of the facility. The updated facility is capable of housing Vehicles Centre of Excellence (CAVCOE). The more than 20,000 pallets on gravity flow rack of up to five levels in height. fullreport can be downloaded free of charge from The project is scheduled to go live in autumn 2015. the Conference Board’s e-Library. A convoy of Volvo’s

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Managing your warehousing costs MM&D presents at Cargo Logistics Canada 2015

Left to Right: John McKenna, Andrew Kirkpatrick, Emily Atkins, Ian MacKenzie

By Emily Atkins

M&D magazine was a media sponsor of the 2015 Cargo Logistics Canada conference and show in Vancouver, January 28 and 29. At the show we presented the results of the 2014 DC Cost Benchmarking study, MM&D’s original research conducted in the summer of 2014, and sponsored by BDO. This time around we were joined on stage by three supply chain practitioners with a wealth of experience in controlling and managing DC costs. They were: Andrew Kirkpatrick, director of sales for NFI Industries, Ian MacKenzie, head of logistics and distribution at Kit and Ace, and John McKenna, president of McKenna Logistics Centres. McKenna led off the panel discussion, using a clear plastic storage box and lots of tennis balls to illustrate his narrative on how a DC can evolve. With the balls just loose in the box, it was a basic warehouse. He demonstrated how easily slow-moving product can make you run out of space, and then some of the actions commonly taken to make operations more efficient. He made the point, however, that although making your warehouse operate more smoothly, many of these improvements will make your cost per unit stored rise, potentially bringing unwanted scrutiny from the bean counters. He cited a common example from the world of e-commerce where the number of units per order declines. “Well, now we need more staging area because 10

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we’re not shipping directly out of the truck anymore. So I get less product in the warehouse. Now I have to put carton labels on the pallets. Not just a full pallet label, it’s a carton label. And we have to wait for the LTL carrier to come and pick it up. We’re not just direct-loading it. So our costs go up again.” Next up, MacKenzie talked about the importance of labour management. A successful DC manager will spend a fair bit of time walking around and observing what’s going on, enquiring about what’s happening and why, recording data and generally being present for the staff. He recounted numerous efficiency gains that were achieved because this informal process revealed poor processes. He also discussed the role of technology in the DC, and advocated strongly for the simple, relatively inexpensive solutions that are user-friendly and easy to implement—smartphones, for example. “We have the most technologically savvy workforce in the history of the planet and when they get to work we ask them to turn these off and put them away and ask them to do an incredibly mundane, boring, go-pick-up-a-box-and-put-it-down, job…They live and breathe having one of these devices in their hand. They can do things faster with it than I can, yet we ask them to put them down,” he said. He cited the example of a 50-person company in California, that instead of buying a capital-intensive WMS, had an app developed and gave all the staff iPhones. The company’s complete supply chain is run with the phones. “So imagine when you hire a new employee and hand them an iPhone, do you think you need to give them very much training?” he added. The final panelist, Andrew Kirkpatrick, spoke about the importance of building and maintaining a good relationship between third-party warehousing suppliers and buyers. “More often than not, we see in our environment that incorrect assumptions and poor planning ultimately lead to higher costs. From a 3PL’s perspective the dialogue should begin long before the customer awards you the business,” he said.

The panel reacts to a question.

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SUPPLY CHAIN SCAN mitigation involved a rigorous confined space program, signage, atmosphere testing, policy changes and practiced rescues. The hazard was eliminated through rebuilding in the summer of 2014. Safety Driven was given Honourable Mention for their video on “Ground Guiding and Spotting”, a video overview of the essential things to know when guiding a vehicle that is backing up.

John McKenna illustrates the overflowing “warehouse”.

For more info on the DC Cost Benchmarking Study please visit www. mmdonline. com/features/ cost-uncertainty/

You have to ask a lot of questions, and don’t assume the customer knows the right answers: “We joke, in the 3PL environment, that there’s two types of customers: the ones that don’t know enough about their business or the ones that think they do, but they’re just not sharing the information with you.” A fundamental that is surprisingly overlooked, Kirkpatrick added, is that all business should have contracts in place. “All business being managed, whether you’re doing it yourself or you’re outsourcing, should have contracts in place. And I know it’s simple to say, but it amazes me when we talk to clients and we hear about business that’s happening and there is no real commercial agreement in place.” Finally, he said, you have to have the operating assumptions documented. It’s a challenge to go back to a client saying, “You know what? The business is different than what we expected. It’s changing and we need to sit down at the table and look at it.” “That’s where real partnerships grow,” he continued. “I’m a firm believer that shippers shouldn’t be outsourcing their supply chain to a third party to pass off their uncertainties or their customer or the retailer’s demands, it should be a partnership.” Awards of Excellence The Cargo Logistics Canada show was also host to the 1st Annual CLC Awards of Excellence. The awards offered an opportunity for the industry’s clients, vendors and supporters to recognize and celebrate BC’s best and brightest in logistics and distribution. Awards were presented in 15 categories including Safety, Sustainability, Supply Chain Woman of the Year and number of Best of Industry Suppliers. Voting for the majority of the awards took place online, while the Safety, Sustainability and Supply Chain Woman of the Year Awards were done by nomination. In addition, the awards’ managing partner, the Canadian Material Handling & Distribution Society (CMHDS) recognized their outstanding member of the year. CLC Best Safety Innovation - Tinhorn Creek Vineyards Tinhorn Creek Vineyards was recognized for their identification, interim mitigation and elimination of a confined space hazard. The interim www.mmdonline.com | January/February 2015

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CLC Sustainability Award – Gate Gourmet Gate Gourmet was recognized for their program of source separation, treating organics and diverting them to turf farms, using organic digesters for in-house waste treatment and conversion of waste to an alternate fuel. CLC Supply Chain Woman of the Year – Angela Talic (ILWU) Angela was recognized for her role in producing the video “Women on the Waterfront”. She accepted the award on behalf of all women who work on the waterfront. CMHDS 2014 Member of the Year – Hi-Cube Storage Hi-Cube Storage took the award for their support of the CMHDS in helping raise $5,000 for Canuck Place Children’s Hospice during the society’s 2014 Charity Golf Tournament. Online Voting Awards From November 2014 to January 2015 clients, followers and supporters logged on to vote for their preferred industry providers. Here are the winners. Distribution Awards Best Forklift Supplier – Williams Machinery Best Forklift Operator Trainer – Leavitt Machinery Best Pallet Racking Supplier – Redirack Best Industrial Battery Supplier – East Penn Canada Best Temporary Labour Supply – Adecco Employment Best Third Party Logistics Provider – C&D Logistics Transportation Awards Best Road Transport Provider – Day & Ross Best Maritime Cargo Provider – Austral Asia Line Best Air Cargo Provider – Westjet Cargo Best Rail Freight Provider – CN Rail Best Freight Forwarder – UPS 11

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SUPPLY CHAIN SCAN

ProMat 2015 People, solutions and resources By Kara Kuryllowicz

upply chain and manufacturing experts will visit ProMat 2015, which runs March 23 to 26, 2015 at Chicago’s McCormick Place, to find the information, systems, technology and even the people they need to stay profitable. It’s the perfect opportunity to see cutting-edge, constantly evolving technology firsthand and exchange ideas with more than 800 material handling and logistics providers from over 100 countries who are showcasing their latest solutions and equipment on a 300,000 sqf show floor. It will include material handling and logistics equipment and systems; packaging, containers and shipping equipment; dock and warehouse equipment and supplies; inventory management, information technology, and controlling technologies; automatic identification equipment and systems; logistics and supply chain management. A ProMat entry badge gives attendees access to one of the world’s largest supply chain trade shows, as well as Automate 2015, the leading robotics, machine

vision and motion-control event, which is co-located at McCormick Place. International visitors get the benefit of special interpreting services, meeting rooms and matchmaking tools, while everyone can benefit from the industryleading keynote speakers, the Workforce Summit – Find, Train, Retain, and more than 100 show-floor seminars, each of which fills a 45-minute block, at no cost. This year’s program spotlights future trends, workforce issues, technology and automation. A free online Show Planner tool helps you create a personal educational itinerary. In 2015, keynotes include Renée Niemi, director of the Android and Chrome Global Business, Google for Work on “Transforming Your Manufacturing Business for the New Digital Age”, while Whole Foods’ co-founder and CEO John Mackey addresses “Conscious Capitalism: Blueprint for a New System for Doing Business”. Apple co-founder and Wheels of Zeus founder, CEO and chairman Steve Wozniak looks at “What’s Next – the Future of Technology”. As well, George W. Prest, CEO, MHI and Scott Sopher, principal, Deloitte Consulting will offer a preview of the MHI 2015 Annual Industry Report, “Transforming Supply Chains”.

BENCHMARKS 125 years ago, August Kuehne and Friedrich Nagel founded a forwarding company in Bremen under the name Kuehne + Nagel. Today, Kuehne + Nagel has a logistics network that spans the globe and has around 63,000 employees at 1,000 locations in over 100 countries. On the occasion of the company’s anniversary, Kuehne + Nagel is sending two 40-foot containers on a trip around the world – one to the east and the other to the west. Inside, the containers hold four multimedia stations where visitors can discover information about the Kuehne + Nagel Group. The container will be presented at 14 locations around the world at national customer events. Hyster Company has earned recognition as a Partner-level supplier for 2014 in the John Deere Achieving Excellence Program. The Partner-level status is Deere & Company’s highest supplier rating. Hyster was selected for this honour in recognition of its dedication to providing products and service of outstanding quality, as well as its commitment to continuous improvement Crown Equipment Corporation has won a 14th GOOD DESIGN Award from the Chicago Athenaeum: Museum of Architecture and Design and The European Centre for Architecture, Art, Design and Urban Studies. Honoring the Crown GPC order picker with QuickPick Remote technology, the award program¹s jury recognized Crown

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for its dedication to design that challenges traditional thinking. In developing the Crown GPC, the company leveraged research showing that operator time spent off the forklift can be as much as 90 percent of the picking cycle. To help reduce fatigue and improve productivity, Crown designed its GPC order picker with QuickPick Remote technology to advance to the next picking location with the touch of a button on the wireless remote, removing the need for operators to climb repeatedly on and off the truck’s platform and keeping their hands free for actual order picking. Long-term tests by Crown customers found that overall productivity improved by an average of 10 percent, with some companies reporting up to a 25 percent improvement. Daifuku Webb Holding Company has changed its name to Daifuku North America Holding Company and will begin using the Daifuku logo in 2015. Incorporating the Daifuku logo better aligns Daifuku North America with other Daifuku entities across the globe. Daifuku North America oversees Daifuku America Corporation, Jervis B Webb Company, Wynright and Elite Line Services (ELS). While Daifuku North America will serve as the unifying brand umbrella, each company will continue to maintain its own name, customer base and product lines.

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SUPPLY CHAIN SCAN To celebrate MHI’s 70th anniversary, ProMat is featuring music, food, drinks and entertainment by comedian and impressionist Frank Caliendo on March 25. Tickets are $50. The MHI Innovation Award 2015 will go to exhibitors in two categories: Best New Innovation and Best Innovation of an Existing Product. Elmira, Ontario-based Engineered Lifting Systems & Equipment’s Restuff-IT (Booth 4214) is a finalist for the Best New Innovation. ELS will be exhibiting the Restuff-IT in its booth. Dematic (Booth 1203 & 1212 ) presents: “Variation on ‘Put to Order’ using a ‘Put Wall’” on March 23 at 3pm in Theater 1. Intelligrated (Booth 2903) is offering two seminars: “WMS + WCS = Fulfillment Execution” on March 23 at 3:45 pm in Theater J; and “10 Steps to Improve Operational Efficiency” (March 25, 11:15 am, Theater J). Intelligrated will be demonstrating its shuttle technology and conveyor and sortation products in its booth. Schaefer Systems International (Booth 2303) presents: “Combining Standard Solutions to Solve Complex Case and Piece Picking Challenges” (March 24, 11:15 am, Theater J); and “New Concepts in Multi-Channel Order Fulfillment” (March 25, 10:30 am, Theater C). Buckhorn Inc (Booth 1219), which provides reusable plastic packaging systems, will be showing its expanded series of BN4845 extra-duty bulk boxes which were designed in 25-in and 34-in heights, with 7-in and 10-in extension rings that can be used in any combination with those boxes to add a variety of heights.

Wynright and parent Daifuku North America (Booth 1013) will be offering perspective on the latest trends in Big Data, automotive, airport baggage handling and automatic guided vehicles. Execs will be on hand to discuss omni-channel fulfillment, next-shoring, advancements in robotics and automation, the convergence of WMS/ WCS, the Industrial Internet of Things, and warehouse space efficiencies. Wynright also will discuss its recent acquisition of select assets of Blue Sky Logistics and what the transaction means for its software strategy. Raymond Corporation (Booth 3219) is announcing new products, services and system upgrades to address various customer and industry challenges: an LED-light display system; a Swing-Reach (turret) truck to triple pallet capacity; an innovative load carrier system; advances and updates to iWarehouse Gateway and iTrack. At booth 1247, Westfalia will show how the Savanna.NET WES streamlines materials handling and order picking, enabling manufacturers and distributors greater control over their warehouse.

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SUPPLY CHAIN SCAN

UniCarriers claims warranty is best in class Two years, unlimited hours offered Material handling equipment manufacturer UniCarriers Americas Corporation is offering a new standard limited warranty that covers two years unlimited hours on all Class I, IV and V forklifts ordered on or after November 1, 2014. The company claims the new warranty is the best one available in the industry. Previously, UniCarriers Americas’ basic limited warranty covered one year or 2,000 hours and its powertrain warranty covered two years or 4,000 hours. “We understand that our customers need to keep their businesses up and running. Our forklifts are engineered, designed and manufactured to withstand the harshest conditions, the toughest jobs and the longest hours in order to keep them delivering outstanding performance for years,” said Anthony Salgado, president, UniCarriers Americas. There are no SIC code limitations for the new warranty. The new standard warranty is also transferrable after one year, with approval based on oil analysis and review of service records. Warranty claims will continue to be handled using the same process as in the past. The new standard warranty will have the same exclusions and limitations for wear parts, normal service and parts that are

warranted by the original manufacturer. “Our new standard warranty is not a limitedtime offer or gimmick to temporarily boost sales,” said Salgado. “This new warranty is a re-flection of the uptime performance and reliability that is built into each and every forklift manufactured by UniCarriers.” UniCarriers Americas Corporation was formed in 2013, when Nissan Forklift Corporation, North America joined forces with TCM America. UniCarriers Americas Corporation is a division of UniCarriers Corporation headquartered in Tokyo. The merger positioned UniCarriers Americas as the fifth largest material handling equipment manufacturer in the Americas market. Nissan forktrucks are part of the UniCarriers brand covered by the new warranty

GLOBAL FOCUS Schiphol cargo up in 2014 2014 was another solid year for Amsterdam Airport Schiphol’s cargo traffic, beating 2013 by 6.7 percent. The final quarter of the year was once again its strongest. Total tonnage in OctoberDecember 2014 was 422,112—an increase of three percent over the same period in 2013. Contributing to the strong showing, Europe was up 11.6 percent, Latin America was up seven percent, Africa increased 4.8 percent and North America grew 6.4 percent. Asia fell by one percent in the quarter, while the Middle East saw a 1.7 percent reduction. Freighter movements grew to a total of 4304, up three percent on 2013’s final three months. For the year as a whole, tonnage was up 6.7 percent to 1,633,195. North America showed the best growth, up 14 percent over 2013. This was followed by Europe (up 12.5 percent), Middle East (up 6.1 percent), Asia (up 5.4 percent) and Africa (up 4.1 percent). Latin America meanwhile ended the year down two percent. Freighter movements in 2014 totalled 16,568—a growth of six percent on 2013, with a peak in movements in October and November. Panama member for WACO System Global independent freight network The WACO System has appointed General Cargo SA as its new member in Panama.

01MMD-News.indd 14

Based in the Colon Free Zone, with additional offices in Panama City, General Cargo has over 20 years experience in consolidation, transfer, storage, distribution and cargo handling. “We are pleased to have such a strong player to represent us in Panama,” said Richard Charles, Executive Director, The WACO System. “We are continuing to expand our global footprint, and Latin America, where we have just welcomed Universal Cargo as our Mexican member, is an important focus for us.” UTi and Changjiu partner in China UTi Worldwide Inc has entered a strategic partnership with Beijing Changjiu Logistics Co, Ltd, to serve the logistics requirements of global automotive original equipment manufacturers (OEM) and suppliers in the automotive market in China. Beijing Changjiu Logistics is a privately held company and is the largest independent automotive logistics company in China with a total turnover of $500M annual revenue. UTi and Changjiu will offerend-to-end service for automotive clients integrating freight forwarding, inland transportation, production logistics, order management, and Customs brokerage.” The partnership gives each company the ability to cross-sell each other’s core capabilities to automotive companies around the world and creates a Lead Service Provider (LSP) in APAC.

MM&D | January/February 2015

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SUPPLY CHAIN SCAN

Ontario MH safety blitz nets hundreds of violations By MM&D Staff

ntario inspectors issued almost five orders on average to each workplace visited during a recent blitz targeting material handling hazards. From September 15 to Octover 26, 2014, Ministry of Labour inspectors visited 701 plants, factories and other industrial sector workplaces across the province. Some of the workplaces were visited several times. The inspectors issued 3,263 orders for violations of the Occupational Health and Safety Act and its regulations. This included 130 stop work orders. As of December 19, 2014, 75 percent of the orders were complied with. “The safety of workers in Ontario is our top priority,” said Kevin Flynn, Minister of Labour. “Blitzes such as this one send a strong message that non-compliance will not be tolerated. We must all work together to prevent injuries and deaths. We want workers in Ontario to return home safe and sound after a hard day’s work.” The inspectors visited the workplaces to check that employers were taking appropriate action to assess and address possible material handling hazards. This workplace safety blitz was part of the government’s continued commitment to preventing workplace injuries and illness through its Safe At Work Ontario enforcement initiative. “Workers can be seriously injured or even die as a result of incidents involving material handling,” said George Gritziotis, Chief Prevention Officer. “We’re working to improve the health and safety of workers in Ontario. But we can’t do it alone. Everyone has a shared responsibility to keep workplaces safe.” Since 2008, ministry inspectors have conducted more than 345,000 field visits, and 66 inspection blitzes. Inspectors have issued more than 560,000 compliance orders in Ontario workplaces. www.mmdonline.com

01MMD-News.indd 15

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Packaging’s role in e-commerce Survey shows e-retailers need to rethink packaging By MM&D Staff

ith continued growth in e-commerce, retailers need to take a closer look at their packaging for fulfilling online orders, according to new data from the a 2014 Packaging for e-Commerce Success survey. Packaging not only tells consumers how much a retailer cares about them and the environment, but it’s also critical for protection of retailer reputations. In fact, 58 percent of consumers say that if they receive a damaged or broken product from an online order, they would either consider purchasing from a competitor or would not purchase from that retailer again. The survey was conducted online by Harris Poll on behalf of Sealed Air in August 2014 among over 2,000 US adults (aged 18+). Packaging expectations also extend to the length of time consumers are willing to wait for order fulfillment. A full 78 percent think orders should be packaged and processed for shipment within 24 hours after an online purchase. The average amount of time buyers think is acceptable for processing an online order for shipment is 23 hours. “In order to gain an edge in the world of e-commerce, retailers should be looking at every step of the online customer experience, and a key part of that is packaging and online order fulfillment,” said Ken Chrisman, president of the Product Care Division of Sealed Air. “With competition heating up in the retail industry, companies can differentiate themselves through better packaging solutions that enhance the customer’s experience with their products and even drive repeat business and positive retailer reputations.” How much does packaging actually influence consumers’ e-commerce experiences with a company? According to the survey findings, packaging plays the following role in consumers’ perceptions of their online orders: • Tells them how much the retailer cares about them and their order (66 percent); • Reflects the value of the shipment the better the packaging, the better the

product inside (48 percent). This viewpoint is more prevalent in younger purchasers those ages 18 to 34 years (59 percent) are more likely to say this than those age 35+ (44 percent); • Reflects a retailer’s environmental commitment (34 percent). The role of packaging is actually increasing, likely driven by the rapid growth of global e-commerce. Nearly seven in 10 (68 percent) say they are more conscious of packaging materials and design today than they were five years ago. Along with the rise in e-commerce, environmentally friendly packaging has been in the forefront of many consumers’ minds. According to the survey findings, 94 percent of consumers believe there are environmentally friendly packaging solutions, and 77 percent say that a company’s packaging should reflect their environmental values. Consumers have varying views on what constitutes environmentally friendly packaging. More than three quarters (78 percent) say it can be easily recycled or made from recycled materials (75 percent); 63 percent believe it can be reused for other shipments; 55 percent say it biodegrades or composts; and 31 percent believe it prevents them from having to return a damaged product. Other topics covered in the Sealed Air 2014 Packaging for e-Commerce Success survey include top e-Commerce purchases, impacts of broken or damaged products, views on over-packaging and consumers’ top packaging pet peeves. MM&D

MOVERS + SHAKERS Stephan Lauzon joins 99 Cents Only Stores as their senior vicepresident of supply chain network and infrastructure. Lauzon will be responsible for conceptualizing, optimizing and leading a worldclass supply chain organization. His initial projects will include the design and implementation of the new best-in-class warehouse/distribution centre in Los Angeles, as well as the optimization of existing facilities in California. Previously Lauzon was a partner with global consulting firm KPMG and the president and founder of Groupe 4L2, a supply chain management conStephen Lauzon sulting firm he sold to KPMG in 2011.

division, and will report to president and chief commercial officer George Abernathy. In his role, Kelly will be responsible for profit and loss (P&L) across the Canadian business unit, as well as supply chain operations. Kelly brings over two decades of experience to Transplace. He has held progressive senior roles over his career, most recently as president for Wheels Canada, a non-asset third party logistics (3PL) provider.

John Kelly has joined Transplace as president of its Canadian

Continues on page 19

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HighJump has appointed current senior vice-president and general manager of its supply chain execution software group Gary Nemmers to the HighJump board of directors. Nemmers will assist in developing the strategic direction for HighJump’s supply chain software business. Chad Collins will replace Nemmers as

MM&D | January/February 2015

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MM&D | January/February 2015

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SUPPLY CHAIN SCAN MOVERS + SHAKERS Continued from page 16

senior vice-president and general manager. Collins spent ten years at HighJump leading the supply chain software product strategy and three years in general management roles at Accellos. Thomas Alford has joined the board of Wajax Corporation. Alford is an independent businessman and former senior executive with over 34 years of experience in the western Canadian oil and gas industry. Most recently, he was president and CEO of IROC Energy Services Corporation, an Alberta oilfield services company. In addition to his appointment as a director, Alford was also appointed a member of the Human Resources and Compensation Committee and the Governance Committee of the Board of Directors. Wajax also announced that Richard Plain, senior vice-president, power systems, has elected to leave the corporation to pursue other opportunities and that Michael Gross has been appointed to succeed him. Gross has 30 years of experience in industrial sales, manufacturing and service. He began his business career

in 1984 with Siemens AG Germany, and held increasingly senior positions within the Siemens group of companies in Germany and Canada, including vice-president, global sales (traffic systems) and senior vice-president, finance industry (automation and drives). Most recently, Gross was a senior vice-president at Siemens Canada. Stärke Material Handling Group is expanding. With the recent hire of Michael Poeltl, Stärke’s new marketing and dealer development specialist, late in the fourth quarter of 2014, the company is expanding its marketing efforts throughout North America. Chuck Pascarelli, president of sales and marketing, Americas, has been promoted to president, Americas, for NACCO Materials Handling Group (NMHG). He will oversee sales, marketing, manufacturing, finance and pricing functions for the Hyster and Yale product lines, as well as their distribution networks across the Americas. His responsibilities will also encompass all NMHG products and lift truck services, financial services, fleet management, national accounts and dealer relations for the Americas.

PROFESSIONAL DEVELOPMENT DIRECTORY

www.mmdonline.com | January/February 2015

01MMD-News.indd 19

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dime

Turning on a

The 3PL Innovation Roundtable panelists, left to right: Ameet Sareen, Manager, Cargo Products, Air Canada Cargo, Greg Braun, Senior VP Sales & Marketing, C3 Solutions, Jim Jones, VP Solutions & Operations Excellence, Schenker Logistics, Ryan Persad, Director, Purolator Logistics, Joe Tersigni, Senior Director Of Sales, Ontario, Groupe Robert, John Panunto, President, PSI Engineering.

Agility + cost control = 3PL innovation By Emily Atkins

nnovation is the lifeblood of business. In the incredibly fast-paced world we inhabit, change is never-ending and disruptive. Those who don’t anticipate, adapt and create new solutions and ideas will be left behind, unable to keep up with changing demands. This is particularly true in the world of third-party logistics. That’s why we brought together a group of executives, who are well versed in keeping ahead of the curve, to talk about what innovation means and what some of the most interesting developments are in the logistics realm. Our roundtable panelists were: Jim Jones, VP Solutions & Operations Excellence, Schenker Logistics; Ryan Persad, Director, Purolator Logistics; Ameet Sareen, Manager, Cargo Products, Air Canada Cargo; Greg Braun, Senior VP Sales & Marketing, C3 Solutions; John Panunto, President, PSI 20

01MMD-Roundtable.indd 20

Engineering; and Joe Tersigni, Senior Director of Sales (Ontario), Groupe Robert.

What is innovation? To warm the group up and ensure we were all talking about the same thing, a definition of innovation was requested from the group. Jim Jones from Schenker Logistics made it easy by supplying one he had found on businessdictionary.com. It is: “The process of translating an idea or invention into a good or service that creates a value for which customers will pay.” The group agreed this is a good starting place for the discussion. C3 Solutions’ Greg Braun noted that adding value is a key part of the definition: “It has to be real value that people are actually going to pay for. You can do all these great things, but is there really a cost benefit there, and are people actually going to pay for it?” MM&D | January/February 2015

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How does it happen? With a definition agreed to, the group next tackled the question of how innovation takes place. When asked if innovation occurs because of customer demand, or internal push, the simple answer—from Purolator’s Ryan Persad—was an emphatic “Yes!” Kidding aside, he said, “It’s absolutely both. It takes a culture shift as well.” Ameet Sareen from Air Canada Cargo, elaborated: “When you’re innovating you’re probably doing something that’s going to give you results down the line, not something that brings you results just right away. It does take big time and leadership.” Persad looked at the way innovation starts: “There’s usually one or two champions within the organization. They have to lobby the executive team for months and socialize the change and innovation idea for it to be accepted. And finally one person within the senior executive team realizes that this has to happen for the future of the organization, and that’s the way it starts.” And how does the innovator convince a skeptical senior management? “It’s a business case,” said John Panunto from PSI Engineering. “Look at BlackBerry. They were the innovation superpower at one time and guess what happened to them? So if you use examples like BlackBerry in your presentation to management, the reference might indicate that maybe we ought to do something. “It’s all business. You could show numbers and everything else and people will be motivated. If you can’t present your case properly, it’ll be difficult to turn a big dinosaur.” Jones pointed out that it really takes two parts: “One is top-down, bringing ideas to the table, providing the justification. The flip side is spending time out in the operation listening to the people that do the work. Because if people that are on the floor feel like they’re part of the process, that drives the change.” www.mmdonline.com | January/February 2015

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For Braun, it comes down to the corporate culture being in place to accept change in a timely manner. “The time frames we’re dealing with are so short. When there’s a new idea or a concept that consumers want, if you can’t adapt to it very, very quickly, you’ve got huge issues. So if you don’t have that culture that can actually deal with that and accept those changes and ideas, it’s not good.” Joe Tersigni from Groupe Robert said another key is to immerse yourself in the culture of your customers. “Once you start dissecting the entire supply chain, you’ll find so many efficiencies” that can be implemented.

 MM&D’s 3PL Innovation Roundtable is an editorial feature, made possible with the support of the following companies. Their input was exclusively through participation in the panel discussion.

How IT has changed the environment At this point we asked the panel to talk about some of the specific, influential innovations they’ve seen in the contract logistics environment. Greg Braun focused on the particular impact that information technology has had changing the way third-party logistics gets done, perhaps more than in other areas. “Fifteen years ago you were not expected to bring IT solutions to the table,” he said. “But, in today’s world, software is a service. From the point of view of a 3PL, there are all kinds of solutions out there that are offered in the cloud, whether it’s TMS, ERP systems…so now, when 3PLs are adding value to their customer’s operation, they can very easily procure these types of systems. There’s no capital involved. Usually they’re pay-asyou-go, no long-term contracts.” He added that in the world of short-term contracts designed around flexible business needs, it’s almost impossible to justify large capital outlays on longterm solutions. Braun also pointed out that IT capabilities have meant a greater call for data integration. “In a 3PL situation you’ve got multiple entities: you’ve got the actual customer, you’ve got the shippers and the 3PL. That’s three, four different entities that have to be all on the same page at the same time. So no longer can you just rely on that one system behind the firewall.” This dovetails into what he calls “systems of engagement”. “We’re expecting everyone to be able to contribute towards any kind of a problem,” he noted. “So how do you keep everybody in tune?” It’s complicated, he said, but the technology is there— social media, imaging, Skype—these are all part of the innovation that allows for useful communication. “Systems of engagement are going to become the standard in a very, very short time frame. The speed of the Internet is such that all of these innovations are going to take the level of service that 3PLs are going to be able to deliver to the next level.” Jim Jones pointed out that “we used to have systems just to collect information and then we could deal with it. Now the point of collecting data is so that we can 21

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“3PLs have got to do it for less money, but then they’ve got to actually enhance the whole thing as well.” — Greg Braun take action on that data quickly.” Tersigni offered an example from his business. “All our drivers have BlackBerrys. And as soon as they complete a delivery, that information’s live right into our system. If there’s an issue with a delivery where there’s a shortage or something that happened, that information is fed live into our systems. Our customers have access to that information. It’s all real-time information to the point where we could actually plan the driver’s route on his way back to our facility.” Braun (who worked at Robert in the past), said: “Robert has been doing this for years. But that wasn’t for the faint of heart. Now the beauty of the innovation that’s taking place, is that any 3PL provider—it doesn’t have to be super-dedicated in providing information solutions—can get onboard and do this kind of thing. The solutions are there. You don’t necessarily have to be inventing them but you need to be bringing them to the table for your customers and just adding that extra value.”

Customer care Innovations to better serve the customer—whether a 3PL itself, or the end user—were a common theme for the panelists. Ameet Sareen discussed ways that Air Canada Cargo is adapting to meet customer needs. “We have such a highly regulated industry; and speed is our key selling point. So we have to try and meet those regulations and comply with them, and on the other side we have our customers who are looking for new ways to do business, new ideas, new products, new services.” He described how the company gained huge efficiencies between the warehouse and the plane by creating a simple-to-use dispatching tool. It alerts the drivers to where they need to go next, saving time and improving the workflow on the ramp. “When talking about pharmaceuticals, food com-

modities, live animals, you don’t want them to be exposed to the ramp for an extended period of time. And we have been able to reduce, significantly, that exposure time of those shipments, which affects greatly our customers and our 3PLs as well in delivering the added value. So they in turn are able to plan their product promise to the customer.” Also on the tech side, Air Canada has recently received regulatory approval to allow GPS tracking devices in its cargo. This is something customers use, independent of the airline, but it was Air Canada that had to jump through the regulatory hoops to allow it. This innovation is purely a customer benefit, Sareen said. “They procure it, they buy it and they put it on the shipment. They just have to declare to Air Canada what device is on that particular shipment.” Purolator’s Persad pointed out that this comes right back to Jones’s point about collecting data so it can be put to immediate use. “The customer wants to own the information to make the decisions,” he said. Joe Tersigni jumped in with examples of his company’s customer-focused innovation. In this case it was all about customizing solutions and essentially integrating operations with a food manufacturer so Robert was supplying ingredients and packaging materials on a just-in-time basis to the manufacturing line. “At the end of the day, it’s got to be cost-effective for the customer,” he said. “It certainly has to be costeffective and lean for us too. You’re providing a solution to some of the pain points that they’re having, but it has to make sense.” Persad looked at it from the perspective of the end

“Be realistic in how much you can change and how fast you can change.” —Ameet Sareen 22

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MM&D | January/February 2015

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“Listen to the customers. It’s so important that we really engage with the customers to find out what is going on in their world.” —Joe Tersigni customer. E-commerce, led by Amazon, has driven many changes into the home delivery business. Vendor-managed inventory, for example, has gone so far that the online customer makes an order and when it shows up three days later, they don’t know that it just landed in Vancouver the day before. The online retailers are “no longer keeping inventory or starting to keep inventory in large facilities, in blocks and then shipping out, or they’re keeping it at the manufacturer and then pulling it in just in time to bring it into the country.” Another area of change Persad pointed out is in distribution networks. Because of just-in-time, replenishment and returns demands many companies are using just 20,000 square feet in an 85,000 or 100,000 square foot facility they’ve contracted for five-years. “They don’t know what to do,” he said. “So they’re looking at the option of sharing through a 3PL, a multi-client warehouse, versus their own warehouse or owning the facility.”

Eco-friendly innovation Not all innovation comes out of customer demand or efforts to improve customer service. Some of it is purely focused on the bottom line, and ends up reaping other benefits, including better service, better rates and environmental responsibility. Technologies that benefit the environment through the reduction of CO2 emissions are an important part of business at Robert, Tersigni said. Trailer side skirts are one such development that the company takes credit for. They cut drag, thus saving fuel and reduc-

ing carbon emissions. The company has also adopted liquid natural gas (LNG) fuel, developing a partnership with a gas company for refueling stations. It also runs singlewide tires, and double trailer combos (LCVs) where permitted. All these translate into savings for Robert and savings for the customer, Tersigni said, and allow Robert to be a leader in sustainable transportation. This demand does still come from customers, Persad noted. “No matter where it’s going, they’re looking to consolidate the orders,” he said. Previously the solutions were, ‘Build a solution based on my customer,’ whether it’s a B2B or a B2C, ‘And then tell me how to get it there.’ That’s changing from a sustainability perspective to, ‘I want you to consolidate my orders and get them to the closest point that you possibly can to my end customer, and then create a final mile distribution model for that solution.’ Which is a cost-savings, green, everything that comes along with that and speed as well.”

Automation and labour John Panunto talked about the imperatives of high volumes, particularly with e-commerce operations, and how they will force companies to automate processes that were previously done manually. “With e-commerce, the little guys are doing things by hand. And before you know it, they went from 200 one year, they’re up to 2,000 the year after and they’d like to scale their business. “In order to get to the next levels of 20,000 orders a day you really have to automate because all those pack stations that you have in place today; it’s got to change.” With all the steps it takes to get products from the racks to the trucks, doing it manually will just cause errors and the costs add up. “Each box could cost you a minute and a half to

“Keep your eye on cost and reduce the steps that it takes to help your customer.” —John Panunto www.mmdonline.com | January/February 2015

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“It’s about data. It’s evaluating what the issue is, what the volumes are, what the time frames are and what’s the best solution to deliver for that particular need. Don’t try to cookie cutter solutions.” — Jim Jones process and when you add that up over 2,000 orders a day or when that gets to 20,000 orders a day, the numbers are staggering in terms of the cost to the end user,” Panunto said. “So, as a 3PL company, if you’re going to grow and really offer services you have to automate that whole line.” Jim Jones agreed. “Labour is an issue for several reasons. First of all, there’s a limit on how much labour is available in many of the markets. Second is the cost because there’s going to be pressure on wage rates over the next couple of years. And third is volatility in demand. “We have customers where a large portion of their demand comes within a very short timeframe which means you have to be able to respond to huge fluctuations of volume both seasonally and day-to-day. You can’t do that with an untrained labour force every day. “So how do you do that? You start to look at capital investments in automation where it makes sense. You look at simplifying the work.” Another side to that picture is the technology investments that need to be made in order to automate. “There are conveyors for some circumstances, AGVs where a piece of equipment’s doing all the work. And then Amazon thought that the Kiva idea, where they’re delivering pallet to a pick location, was so important they bought the company,” he said. “Now, there are other companies starting to do that, but that’s the type of innovation that makes sense because it’s relatively low capital investment; it has a very short payback.

“In our instance where we’re a 3PL operating in three- to five-year contract periods, we can’t make massive capital investments that take years to pay back. So we have to look at practical solutions within a short timeframe.”

The big picture Jones shared his perspective on some of the larger trends that are driving innovation. He talked about global network design, where in the last 30 years production followed technology, investment and low labour cost, primarily to Asia, but now it’s shifting again to Southeast Asia and back to Central America. With globalized supply chains there’s greater potential for natural and man-made disasters to disrupt business. Earthquakes, conflict, atmospheric events and labour problems are the kinds of disruptions that are forcing businesses to re-think distribution networks.

Turning on a dime Ultimately the panelists agreed that innovation is about the ability to adapt successfully to the pressures being created by changing conditions. The growing sophistication of IT and the ever-increasing flow of information, e-commerce, the need to control costs and pay attention to customer preferences; all these shape the business environment for third-party logistics. And they make it a volatile place to be. But with the right attitude, culture and tools, innovation is the differentiator that lets businesses thrive. MM&D

“We’ve had no choice in our world, we’ve had to change. In order to compete and keep up you have to be flexible.” —Ryan Persad Read the extended version online: www.mmdonline.com/features/adding-value, with an extra section on reverse logistics innovation 24

01MMD-Roundtable.indd 24

MM&D | January/February 2015

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3PL Capability Guide: Services MM&D’s 13th Annual Third-Party Logistics (3PL) Capability Guide competencies. They’re turning to 3PLs for help. While in the past shippers have tended to hire 3PLs for principally tactical activities, many now recognize the value of deeper partnerships. Indeed, many feel that more strategic relationships with 3PLs would help them cut total landed and distributed costs. In order to fully capitalize on this opportunity, you need to make sure you’re trusting your business to the right partner.

Every year, we compile this list to provide you with information about 3PLs operating in Canada. These companies exist to provide and/or arrange interconnected logistics services for shipper clients. They take on the work so you don’t have to. The appeal of outsourcing continues to grow. As the economy continues to show uncertainty, many shippers are seeking ways to offset risk and remain focused on core

MARKETS SERVED LEGEND

OVER- MARKETS VIEW SERVED

OVERVIEW LEGEND A: Asset-Based N: Non Asset-based AN: Both

COMPANY NAME

3PL Links Inc. G A52 Warehouse Inc. C Accuristix N Affiliated Customs Brokers Ltd./Global Logistics G AGO Transportation Inc. G All-Can Pro Logistics Inc. C All-Connect Logistical Services Inc. CN AN Deringer, Inc. G APL Logistics G ASL Distribution Services Ltd. N Axsun Inc. NA BCG Logistics Inc. CN Bison Transport Inc. CN Bonneau Freight Ltd. CN Bowden Transport NA Bulk Plus Logistics CN Canada Cartage System NA Cavalier Transportation Services Inc. N CEVA Logistics G CH Robinson Worldwide, Inc. G Challenger G CK Logistics CN Clarke Transport Inc. CN Cole International Inc. G Confederation Freezers C Consolidated Fastfrate Inc. C CW Henderson Transportation Damco G Day & Ross Transportation Group, The G DB Schenker G Delmar International Inc. G DHL Global Forwarding G DN Logistics Ltd. G Dominion Warehousing & Distribution Services Ltd. NA Ekkinox - Div. of Drakkar & Partners Inc. G Erb Group of Companies, The CN EveryPoint Logistics Solutions NA Expeditors Canada Inc. G Fargo Transportation Services Limited G FedEx Trade Networks Transport & Brokerage (Canada) Inc. G First Choice Logistics - Div. of Thompson Ahern Intl. G Fort Storage Warehousing & Distribution C Fraser Direct Logistics Ltd. NA Freightmate Inc. G Georgetown Terminal Warehouses NA

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MM&D | January/February 2015

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below. You’ll find the capabilities of each company indicated by bullets under the appropriate category headings. An alphabetized list of contact information for the firms starts on page 28. If you have any comments about this guide, or would like to apply to be included in next year’s edition, please contact MM&D’s publisher and editor-in-chief, Emily Atkins, at eatkins@bizinfogroup.ca.

This guide is meant to help you identify outsourcing partners with the capabilities to meet your specific requirements. Perhaps you need a firm that specializes in cross-border activity, or temperature-controlled shipments, or cross-docking—or all three. No matter how specific your needs, we’re willing to bet you’ll find at least one match in these pages. To use this guide, browse through the 3PLs listed alphabetically

WAREHOUSING

SPECIAL SERVICES

TECHNOLOGY

Carrier S election Cross-Bo rder Forw arding Inbound Logistic s Integrate d Lo Inventory gistics M a na g e ment Just-In-T ime Process Planning Product Lifecycle M a na g e Project C ment argo Service Parts Lo gistics Shipmen t Trackin g Tempera ture Con trolled Vendor M a na g e ment Wareho using Consolid ation/D econsoli Cross-D dation ocking Distribu tion Cen tre Man Fulfillme ag e m e n nt t Location Services Pick/Pac k Sub-A ssembly Vendor M a na g e d Invento Consult ry ing Delivery -To-Hom e Delivery -To-Store Finance H u ma n Resourc es Import/E xport/C ustoms Insuranc e Marketi ng/Cust omer Se Paymen rvice t Audit/P rocessin Quality g A ssuran ce Regulato ry Comp liance Reverse Logistic s Security Services Vehicle Mainten ance Advance Shippin g Notice Docume ntation ED I Real-Tim e Invento ry Visibil RFID Ca ity pable Satellite / Wireless Commu Transpo nication rtation M a na g e m e Wareho nt Syste use Man ms ag e m e n Web-Ba t System sed Ship s ment Tra cking

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3PL Capability Guide MARKETS SERVED LEGEND

OVER- MARKETS VIEW SERVED

OVERVIEW LEGEND A: Asset-Based N: Non Asset-based AN: Both

COMPANY NAME

Groupe Robert Highlight Motor Freight Inc. HTS Freight Logistics Hub Group Canada Hyphen Transportation Management Inc. I to I Logistics Inc. IDT Logistics IFS Logistics Ltd. J.D. Smith & Sons J.P. Enterprises - Logistics Corp. Katoen Natie Canada Keele Warehousing & Logistics Kenco Logistic Services Kintetsu World Express Canada KRG Logistics Inc. KTS Logistics Inc. Kuehne + Nagel Ltd. Lake Erie Warehousing Inc. Lakeside Logistics Inc. Lantrax North America Logistics Lean Supply Solutions Inc. Lynden International Logistics Co. Maisliner Toronto Manitoulin Transport Marc Vileneuve Inc. McKenna Logistics Centres Menlo Worldwide Logistics Metro Supply Chain Group Inc. Meyers Transport/MorTrans Inc/Mosaic Logistics Midland Transport Mighty Expedite Milgram & Company Ltd. MIQ Logistics Mosaic Logistics MTE Logistix Edmonton Inc. Muir’s Cartage - A Div. of Indis Inc. Mutual Transportation Services Inc. National Logistics Services Inc. NFI Ontario New England Express Optivia Logistics and Warehousing Inc. Panalpina Inc. Penske Logistics Pival International Polaris Transportation Group Porter Warehousing & Distribution Inc. Precision Total Fulfillment ProMiles Canada Inc. Propulsion + Purolator QRC Logistics (1978) Ltd. Quik X Transportation Inc. Remco ReTrans Canada Rodair International Ltd. RTL Reliable Transportation Link Ryder Canada Saddle Creek Logistics Services

01-3PLguide&dir.indd 28

TRANSPORTATION

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15-02-17 11:42 AM

WAREHOUSING

SPECIAL SERVICES

TECHNOLOGY

Carrier S election Cross-Bo rder Forw arding Inbound Logistic s Integrate d Lo Inventory gistics M a na g e ment Just-In-T ime Process Planning Product Lifecycle M a na g e Project C ment argo Service Parts Lo gistics Shipmen t Trackin g Tempera ture Con trolled Vendor M a na g e ment Wareho using Consolid ation/D econsoli Cross-D dation ocking Distribu tion Cen tre Man Fulfillme ag e m e n nt t Location Services Pick/Pac k Sub-A ssembly Vendor M a na g e d Invento Consult ry ing Delivery -To-Hom e Delivery -To-Store Finance H u ma n Resourc es Import/E xport/C ustoms Insuranc e Marketi ng/Cust omer Se Paymen rvice t Audit/P rocessin Quality g A ssuran ce Regulato ry Comp liance Reverse Logistic s Security Services Vehicle Mainten ance Advance Shippin g Notice D o cu m e ntation ED I Real-Tim e Invento ry Visibil RFID Ca ity pable Satellite / Wireless Commu Transpo nication rtation M a na g e m e Wareho nt Syste use Man ms ag e m e n Web-Ba t System sed Ship s ment Tra cking

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3PL Capability Guide MARKETS SERVED LEGEND

OVER- MARKETS VIEW SERVED

OVERVIEW LEGEND A: Asset-Based N: Non Asset-based AN: Both

COMPANY NAME

Sameday Worldwide Schneider National Carriers, Canada SCI Logistics SDV Logistics Inc. Sherway Group SLH Transport Inc. Sotech Nitram Inc. Spencer/Butcher Group of Companies Starship Logistics Inc. Stonegate Logistics Tandet Tec Freight Technicolor Global Logistics TFT Global Inc. Thomson Terminals Limited (Thomson Grp. of Companies) Total Logistics Group of Companies Trailcon Leasing Inc. Trans Plus Logistics Inc. Transpro Freight Systems Ltd. Triage Logistics Company TST Overland Express UPS Canada UPS Supply Chain Solutions UTi Worldwide Vandegrift Canada, ULC Vanguard - A Canada Cartage Company VersaCold Logistics Services Vimich Traffic Logistics Western Canada Express / Apex Motor Express Westmark Fashion Dist. Services (aka Westmark Warehousing) Wheels Group of Companies XCD Logistics Solutions Ltd. XTL Logistics Inc.

TRANSPORTATION

CUSTOMS

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G N C G C CN G CN CN N CN G CN G N CN CN CN CN G CN G G G G G G CN C G G N N

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3PL Capability Guide: Contacts 3PL LINKS INC. Woodbridge, ON 905-850-9002 wgrossi@3pllinks.com www.3pllinks.com

AGO TRANSPORTATION INC. Montreal, QC 514-631-6663 ago@agotrans.com www.actionago.com

APL LOGISTICS Etobicoke, ON 866-896-2005 inquiries@apllogistics.com www.apllogistics.com

BISON TRANSPORT INC. Winnipeg, MB 204-833-0131 ljohnston@bisontransport.com www.bisontransport.com

CANADA CARTAGE SYSTEM Mississauga, ON 905-564-2115 info@canadacartage.com www.canadacartage.com

A52 WAREHOUSE INC. Langley, BC 604-881-0251 seanm@a52.ca www.a52.ca

ALL-CAN PRO LOGISTICS INC. Belleville, ON 613-966-0796 info@allcan3pl.com www.allcan3pl.com

ASL DISTRIBUTION SERVICES LTD. Oakville, ON 905-829-5141 khammel@asldistribution.com www.asldistribution.com

BONNEAU FREIGHT LTD. Leamington, ON 519-326-0101 operations@bonneaufreight.com www.bonneaufreight.com

ACCURISTIX Oakville, ON 905-829-9927 info@accuristix.com www.accuristix.com

ALL-CONNECT LOGISTICAL SERVICES INC. Oakville, ON 905-847-6555 customerservice@allconnect.ca www.allconnect.ca

AXSUN INC. St. Hubert, QC 450-445-3003 info@axsungroup.com www.axsungroup.com

BOWDEN TRANSPORT Whitby, ON 905-665-1940 corey@bowdentransport.com www.bowdentransport.com

CAVALIER TRANSPORTATION SERVICES INC. Bolton, ON 905-857-6981 bledson@cavalier.ca www.cavalier.ca

BCG LOGISTICS INC. Mississauga, ON 905-238-3444 tmedeiros@bcglogistics.com www.bcglogistics.com

BULK PLUS LOGISTICS Burlington, ON 403-777-3545 ryoung@bulkplus.com www.bulkplus.com

AFFILIATED CUSTOMS BROKERS LTD./ GLOBAL LOGISTICS Laval, QC 450-681-4555 dpaquette@affiliated.ca www.affiliated.ca

01-3PLguide&dir.indd 30

AN DERINGER, INC. Saint Albans, VT 802-524-8110 www.anderinger.com

CEVA LOGISTICS Houston, TX 800-888-4949 kathleen.norris@cevalogistics.com www.cevalogistics.com

MM&D | January/February 2015

15-02-17 11:42 AM

WAREHOUSING

SPECIAL SERVICES

TECHNOLOGY

Carrier S election Cross-Bo rder Forw arding Inbound Logistic s Integrate d Lo Inventory gistics M a na g e ment Just-In-T ime Process Planning Product Lifecycle M a na g e Project C ment argo Service Parts Lo gistics Shipmen t Trackin g Tempera ture Con trolled Vendor M a na g e ment Wareho using Consolid ation/D econsoli Cross-D dation ocking Distribu tion Cen tre Man Fulfillme ag e m e n nt t Location Services Pick/Pac k Sub-A ssembly Vendor M a na g e d Invento Consult ry ing Delivery -To-Hom e Delivery -To-Store Finance H u ma n Resourc es Import/E xport/C ustoms Insuranc e Marketi ng/Cust omer Se Paymen rvice t Audit/P rocessin Quality g A ssuran ce Regulato ry Comp liance Reverse Logistic s Security Services Vehicle Mainten ance Advance Shippin g Notice D o cu m e ntation ED I Real-Tim e Invento ry Visibil RFID Ca ity pable Satellite / Wireless Commu Transpo nication rtation M a na g e m e Wareho nt Syste use Man ms ag e m e n Web-Ba t System sed Ship s ment Tra cking

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CH ROBINSON WORLDWIDE, INC. Eden Prairie, MN 800-323-7587 solutions@chrobinson.com www.chrobinson.com CHALLENGER Cambridge, ON 519-653-9770 sales@challenger.com www.challenger.com CK LOGISTICS Saint-Laurent, QC 514-856-7580 info@cklogistics.ca www.cklogistics.ca

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CW HENDERSON TRANSPORTATION Etobicoke, ON 416-674-5826 dhardy@cwhenderson.ca www.cwhenderson.ca

COLE INTERNATIONAL INC. Calgary, AB 403-262-2771 nicole.gordon@cole.ca www.cole.ca

DAMCO Madison, NJ 973-514-5126 www.damco.com

DHL GLOBAL FORWARDING Mississauga, ON 289-562-6500 michelle.walker@dhl.com www.dhl-dgf.com

DAY & ROSS TRANSPORTATION GROUP, THE Hartland, NB 800-561-0013 custservice@dayandrossinc.ca www.dayrossgroup.com

DN LOGISTICS LTD. Maple Ridge, BC 604-380-3000 info@dnlltd.com www.dnlltd.com

DB SCHENKER Mississauga, ON 905-676-0676 sales.canada@dbschenker.com www.dbschenker.com/ca

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CONSOLIDATED FASTFRATE INC. Woodbridge, ON 905-893-2600 wyssl@fastfrate.com www.fastfrate.com

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DOMINION WAREHOUSING & DISTRIBUTION SERVICES LTD. Toronto, ON 416-744-2438 bdineen@godominion.com www.godominion.com

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EKKINOX - DIV. OF DRAKKAR & PARTNERS INC. Montréal, QC 514-917-4575 ygagnon@ekkinox.ca.com www.ekkinox.ca ERB GROUP OF COMPANIES, THE New Hamburg, ON 800-665-2653 contactus@erbgroup.com www.erbgroup.com EVERYPOINT LOGISTICS SOLUTIONS Pointe-Claire, QC 514-426-3043 sales@everypoint.ca www.everypoint.ca EXPEDITORS CANADA INC. Mississauga, ON 905-290-3804 ric.condello@expeditors.com www.expeditors.com

15-02-17 11:42 AM

3PL Capability Guide: Contacts FARGO TRANSPORTATION SERVICES LIMITED Georgetown, ON 905-873-1199 jim@fargotransportation.com www.fargotransportation.com FEDEX TRADE NETWORKS TRANSPORT & BROKERAGE (CANADA) INC. Mississauga, ON 9056777382 www.ftn.fedex.com FIRST CHOICE LOGISTICS - DIV. OF THOMPSON AHERN INTERNATIONAL Mississauga, ON 905-677-3471 mjohnston@taco.ca www.taco.ca FORT STORAGE WAREHOUSING & DISTRIBUTION Winnipeg, MB 204-488-9774 alan.s@fortstorage.com www.fortstorage.com FRASER DIRECT LOGISTICS LTD. Georgetown, ON 905-877-4411 ext. 253 lfraser@fraserdirect.ca www.fraserdirect.ca FREIGHTMATE INC. North York, ON 416-633-4331 www.freightmateinc.com GEORGETOWN TERMINAL WAREHOUSES Georgetown, ON 905-702-7084 hvisser@gtwcanada.com www.gtwcanada.com

GROUPE ROBERT Boucherville, QC 800-263-0022 caroline.lacroix@robert.ca www.robert.ca HIGHLIGHT MOTOR FREIGHT INC. Concord, ON 905-761-1400 kirk@highlightmotor.com HTS FREIGHT LOGISTICS Bolton, ON 905-951-2119 dispatch@htsfreight.com www.htsfreight.com HUB GROUP CANADA Oakville, ON 905-820-2070 boneill@hubgroup.com www.hubgroup.com HYPHEN TRANSPORTATION MANAGEMENT INC. Concord, ON 905-695-3817 lisa.pierce@hyphentmi.com www.hyphentmi.com I TO I LOGISTICS INC. Mississauga, ON 905-362-1603 mdocherty@i2ilog.com www.itoilogistics.com IDT LOGISTICS Ayr, ON 519-536-7058 ghopley@idtlogistics.com IFS LOGISTICS LTD. Brampton, ON 905-453-0888 gkell@ifslogistics.ca www.ifslogistics.ca J.D. SMITH & SONS Vaughan, ON 905-669-8980 info@jdsmith.com www.jdsmith.com J.P. ENTERPRISES - LOGISTICS CORP. Mississauga, ON 905-949-0046 jponeill@jpent.com www.jpent.com KATOEN NATIE CANADA Mississauga, ON 905-821-0514 canada@katoennatie.com www.katoennatie.com KEELE WAREHOUSING & LOGISTICS Brampton, ON 905-789-9991 james@keelewarehousing.com www.keelewarehousing.com KENCO LOGISTIC SERVICES Chattanooga, TN 800-758-3289 info@kencogroup.com www.kencogroup.com

KINTETSU WORLD EXPRESS CANADA Mississauga, ON 905-677-8830 info@kwe.ca www.kwe.ca

MOSAIC LOGISTICS Peterborough, ON 888-291-4442 gmarsh@shipmts.com www.shipmts.com

RETRANS CANADA Toronto, ON 416-213-0131 lthompson@re-trans.com www.re-transcanada.com

KRG LOGISTICS INC. Mississauga, ON 905-501-7277 kbartlet@krglogistics.com www.krglogistics.com

MTE LOGISTIX EDMONTON INC. Edmonton, AB 780-944-9009 mteinfo@mtelogistix.com www.mtelogistix.com

RODAIR INTERNATIONAL LTD. Mississauga, Ontario 905-671-4655 jeff-cullen@rodair.com www.rodair.com

KTS LOGISTICS INC. Vaughan, ON 866-270-7773 sales@kts.ca www.kts.ca

MUIR’S CARTAGE - A DIV. OF INDIS INC. Brampton, ON 905-494-4774 ted.brown@muirscartage.com www.gomuirs.com

RTL RELIABLE TRANSPORTATION LINK Concord, ON 905-660-7766 compellingsolutions@goreliable.ca www.goreliable.ca

MUTUAL TRANSPORTATION SERVICES INC. Oakville, ON 905-339-3889 c.chapin@mutualtransportation.com

RYDER CANADA Mississauga, ON 800-565-8495 cluzena@ryder.com www.ryder.com

TRANSPRO FREIGHT SYSTEMS LTD. Milton, ON 905-693-0699 www.transprofreight.com

NATIONAL LOGISTICS SERVICES INC. Mississauga, ON 905-696-7278 www.nls.ca

SADDLE CREEK LOGISTICS SERVICES Lakeland, FL 888-878-1177 sales@sclogistics.com www.sclogistics.com

TRIAGE LOGISTICS COMPANY Ste-Anne-de-Bellevue, QC 514-457-7667 tbrule@triagelogistics.com www.triagelogistics.com

SAMEDAY WORLDWIDE Mississauga, ON 905-676-8960 kal.atwal@dayandrossinc.ca www.sameday.ca

TST OVERLAND EXPRESS Mississauga, ON 905-625-7500 www.tstoverland.com

KUEHNE + NAGEL LTD. Mississauga, ON 905-502 7776 info.canada@kuehne-nagel.com www.kuehne-nagel.com LAKE ERIE WAREHOUSING INC. Simcoe, ON 888-455-2622 jasonm@lakeeriewarehousing.com www.lakeeriewarehousing.com LAKESIDE LOGISTICS INC. Oakville, ON 905-338-4000 jeff@lakesidebesmart.com www.lakesidebesmart.com LANTRAX NORTH AMERICA LOGISTICS Surrey, BC 604-526-8729 rod@lantraxlogistics.com www.lantraxlogistics.com LEAN SUPPLY SOLUTIONS INC. Toronto, ON 416-748-8982 info@leansupplysolutions.com www.leansupplysolutions.com LYNDEN INTERNATIONAL LOGISTICS CO. Vaughan, ON 905-879-0114 salesinfo@lynden.com www.lilco.lynden.com MAISLINER TORONTO Toronto, ON 416-767-1700 noah.maislin@maisliner.com www.maisliner.com MANITOULIN TRANSPORT Mississauga, ON 905-670-8990 svalenzuela@manitoulintransport.com www.manitoulintransport.com MARC VILENEUVE INC. Vaudreuil, QC 450-424-4616 m_villeneuve@mvilleneuve.ca www.mvilleneuve.ca MCKENNA LOGISTICS CENTRES Mississauga, ON 905-274-1234 sales@mckennalogistics.ca www.mckennalogistics.ca MENLO WORLDWIDE LOGISTICS San Mateo, CA 630-449-1084 www.menloworldwide.com METRO SUPPLY CHAIN GROUP INC. Concord, ON 905-738-5577 rcranwill@metroscg.com www.metroscg.com MEYERS TRANSPORT/MORTRANS INC/ MOSAIC LOGISTICS Mississauga, ON 888-291-4442 csood@shipmts.com www.mosaiclogistics.com MIDLAND TRANSPORT Dieppe, NB 506-858-5555 www.midlandtransport.com MIGHTY EXPEDITE Burlington, ON 905-332-9900 info@mightyexpedite.com www.mightyexpedite.com MILGRAM & COMPANY LTD. Montréal, QC 514-288-2161 sales@milgram.com www.milgram.com MIQ LOGISTICS Mississauga, ON 905-542-7525 contact_us@miq.com www.miq.com

NFI Mississauga, ON 866-578-8956 andrew.kirkpatrick@nfiindustries.com www.nfiindustries.com ONTARIO NEW ENGLAND EXPRESS Milton, ON 905-876-3996 sales@oneforfreight.com www.onefreight.com

TOTAL LOGISTICS GROUP OF COMPANIES Vaudreuil-Dorion, QC 450-424-1700 jzeppetelli@totallogistics.com www.totallogistics.com

SCI LOGISTICS Toronto, ON 888-755-1528 business.development@scilogistics.com www.scilogistics.ca

PANALPINA INC. Mississauga, ON 905 755-4500 patrick.donalds@panalpina.com www.panalpina.com

SDV LOGISTICS INC. Saint-Laurent, QC 514-956-7870 n.painchaud@sdv.ca www.sdv.com

PENSKE LOGISTICS Reading, PA 800-529-6531 logistics@penske.com www.penskelogistics.com

SHERWAY GROUP Mississauga, ON 416-420-3257 www.sherwaygroup.com

POLARIS TRANSPORTATION GROUP Mississauga, ON 905-671-3100 larry@polaristransport.com www.polaristransport.com PORTER WAREHOUSING & DISTRIBUTION INC. Edmonton, AB 780-453-5192 porterinfo@porterwarehousing.com www.porterwarehousing PRECISION TOTAL FULFILLMENT Woodbridge, ON 905-850-5044 admin@precisiongroupag.com www.precisiontotalfulfillment.com PROMILES CANADA INC. Bowmanville, ON 888-736-4537 info@promilescanada.com www.promilescanada.com PROPULSION + St-Colomban, QC 514-917-4575 ygagnon@propulsionplus.com

TRANS PLUS LOGISTICS INC. Saint-Laurent, QC 514-332-5020 vincent@trans-plus.com www.trans-plus.com

UPS CANADA Mississauga, ON 905-364-5941 svitale@ups.com www.ups.ca

SCHNEIDER NATIONAL CARRIERS, CANADA Guelph, ON tumberd@schneider.com www.schneider.com

OPTIVIA LOGISTICS AND WAREHOUSING INC. Guelph, ON 519-823-7860 scott@optvialogistics.com www.optvialogistics.com

PIVAL INTERNATIONAL Dorval, QC 5146841600 mlabarbera@pival.com www.pival.com

TRAILCON LEASING INC. Mississauga, ON 905-670-9061 mkrell@trailcon.com www.trailcon.com

UPS SUPPLY CHAIN SOLUTIONS Burlington, ON 905-315-5500 marketingca@ups.com www.ups-scs.ca UTI WORLDWIDE Brampton, ON 589-562-3000 yto@go2uti.com www.go2uti.com VANDEGRIFT CANADA, ULC Toronto, ON 416-213-9093 brodgers@vandegriftinc.com www.vandegriftinc.com

SLH TRANSPORT INC. Kinston, ON 800-661-2146 marlena.singh@slh.ca www.slh.ca

VANGUARD - A CANADA CARTAGE COMPANY Mississauga, ON 905-670-9300 mbates@vanguarddelivers.com www.vanguarddelivers.com

SOTECH NITRAM INC. Laval, QC 877-664-8726 ventes@sotechnitram.com www.sotechnitram.com SPENCER/BUTCHER GROUP OF COMPANIES Windsor, ON 519-944-9200 gspencer@butcherent.com www.spencerbutcher.com

VERSACOLD LOGISTICS SERVICES Vaughan, BC 800-563-2653 sales@versacold.com www.versacold.com

STARSHIP LOGISTICS INC. Georgetown, ON 800-465-7827 francisr@starshiplogistics.ca www.starshiplogistics.ca

VIMICH TRAFFIC LOGISTICS Tecumseh, ON 800-284-1045 ron.heinz@vimich.com www.vimich.com

STONEGATE LOGISTICS Mississauga, ON 905-671-9072 wayne@stonegatelogistics.com www.stonegatelogistics.com

WESTERN CANADA EXPRESS/ APEX MOTOR EXPRESS Concord, ON 905-738-2106 bpoe@apexltl.com www.westerncanadaexpress.com

TANDET Oakville, ON 905-603-2310 lwoodruff@tandet.com www.tandet.com

WESTMARK FASHION DISTRIBUTION SERVICES (AKA WESTMARK WAREHOUSING) Toronto, Ontario 416-749-5255 info@westmarkwarehouse.com www.westmarkwarehouse.com

TEC FREIGHT Mississauga, ON 905-828-8132 info@tecfreight.com www.wesolveit4you.com PUROLATOR Mississauga, ON 905-712-1084 purologistics@purolator.com www.purolator.com

TECHNICOLOR GLOBAL LOGISTICS Camarillo, CA 805-445-3093 supplychain@technicolor.com www.technicolorgloballogistics.com

WHEELS GROUP OF COMPANIES (WHEELS INTERNATIONAL; WHEELS MSM; WHEELS LOGISTICS) Mississauga, ON 905-602-2700 jgrush@wheelsgroup.com www.wheelsgroup.com

QRC LOGISTICS (1978) LTD. Mississauga, ON 905-791-9004 giamonaco@qrclogistics.com www.qrclogistics.com

TFT GLOBAL INC. Tillsonburg, ON 877-220-0395 info@tftglobal.com www.tftglobal.com

XCD LOGISTICS SOLUTIONS LTD. Thornhill, ON 647-669-1257 skopyto@xcdlogistics.com www.xcdlogistics.com

QUIK X TRANSPORTATION INC. Mississauga, ON 905-565-8811 info@quikx.com www.quikx.com

THOMSON TERMINALS LIMITED (THOMSON GROUP OF COMPANIES) Toronto, ON 416-240-0897 sales@thomsongroup.com www.thomsongroup.com

XTL LOGISTICS INC. Mississauga, ON 416-742-3883 craig.germain@xtl.com www.xtl.com

REMCO Lachine, QC 514-6351033 ext 209 jcohen@remco.ca www.remco.ca

Don’t see your company listed? Send a note to Emily Atkins (eatkins@bizinfogroup.ca) to request a sign-up form. Once we have your info we’ll add you to the online directory, and you’ll receive the update reminder next fall. 32

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MM&D | January/February 2015

15-02-13 10:56 AM

GUEST EDITORIAL

Two e-commerce challenges T

here is nothing more exciting than taking your business into the realm of e-commerce and nothing more disappointing than finding e-commerce success isn’t quite as easy as you hoped it would be. There are the physical challenges. Everyone pays lots of attention to the dream of selling online, but once you start selling, implementation can expose problems with logistics from a variety of different angles. But what is often forgotten in the rush to get on the Web is a brand must maintain that insubstantial, all-important customer experience.

E-commerce works when you plan for both challenges The physical challenges e-commerce creates are enormous. Poor inventory management, selecting the right third-party logistics partner(s), and even something as simple as aligning current inventory and replenishment models with a new e-commerce platform can be a costly revamp for large enterprise retailers. Add in poor workflow or business methods and the e-commerce challenge is going to expose that you weren’t ready for this big step, and your infrastructure in general may need a little tuning. All of the above is going to equal higher labour costs, plus increased IT resources. The physical challenge is to solve these problems, as each represents a major cost point. You need to have control of your data (cloud-based solutions offer flexibility and speed of deployment); workflow changes and method changes may need to be implemented. One thing is for sure: if e-commerce is to work, the key is to do it a little bit faster and a heck of a lot cheaper than it is being done today.

Don’t let the Web wash you away The Web is enormous and you have very little time to catch your visitor’s attention; 10 to 20 seconds is one estimate (see below). The unexpected fact is if you Here are the can hold a visitor for half ruthless facts a minute they will spend about how long time on your page (it’s still people stay on only a couple of minutes). a web page, Why do they stay? and a concluBecause you provide an sion that might experience that holds surprise you: their interest. http://tinyurl. Why do visitors leave? com/kcvp7cb One safe bet is you didn’t match expectations. www.mmdonline.com | January/February 2015

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Your store is a mess, shelves not stocked, staff are negative and no one comes to help you when you need it. Now put that on the Web and watch it magnify. As bad as all of the physical problems sound, nothing matches the reality of a frustrated customer feeling their online experience doesn’t match their physical experience with your brand.

Aaron Lalvani

Don’t compete with Amazon Your brand does not have to aim at knocking off Amazon or the other major names on the Web in order to be a success story. The reality is no one can compete with Amazon’s profit model or cost structure because Amazon doesn’t make a profit!

Loren Padelford, head sales scientist for Shopify, recently said, “What retailers need to understand is that e-commerce is not about being like Amazon. It is about understanding how and why your customers buy products online and giving them an experience that creates value. Chasing Amazon is a recipe for failure.” There’s a lot more to e-commerce than processing credit card payments and uploading a storefront of SKUs, although both represent very important functionality. (That’s another article.) Companies that succeed manage both logistics and the customer experience. It’s not all physical. MM&D Aaron Lalvani, of Lalvani Group, helps trucking and manufacturing companies perform better. It’s not all about the top line; it’s about delivering exceptional customer service by eliminating non-productive activities. aaron@lalvanigroup.com 33

15-02-13 2:53 PM

PROBLEM? SOLUTION!

Making IT a valuable dance partner A Kevin Squires

fter a week of more than normal discussions with my peers on all things IT, I am somewhat surprised that so many of my colleagues focus on the “enablement” technologies; to help enable the business to be more efficient, productive.

Sounds good, right? It does. And it is definitely an important part, but I see IT as more. Much more. IT doesn’t just need to talk to the business; they need to be PART of the business. To truly know the nuances that will generate real value, IT needs to embed themselves into the business units—eat the same food, breathe the same air—figuratively of course. It’s a lesson I learned from Sav DiPasquale (2010 Canadian CIO of the Year— and for good 34

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reason.) He never saw IT as a technological end game, but as an extension of the unique business unit with specific skills that could be used in non-traditional ways to help break down obstacles and clear the path for true value and innovation; a conduit to allow the business to break free from “normal” methods and experience new growth. Unfortunately, there is an Achilles heel to this match made in heaven. Oddly enough, the business has to “want” to innovate, they have to “want” to move forward, they have to “want” to be successful. As silly as it may sound, sometimes the business is happy with the status quo and resists change. It is this all-to-common situation where the challenges of IT truly begin. “Good is the enemy of Great.” IT needs to help the business see the vision and understand that, together, they can change the game and approach old problems with new solutions. To be a leader and a catalyst for change and growth. In the end, the actual solution and technology is the easy part. IT’s real power comes from using technology to strike that perfect balance between enablement and differentiator; enabling the business by helping them to define and open a new door–then adding real value by not only ensuring they are the best dressed person at the party when they walk through the door but that the party is all about them. And everyone wants what they are selling–a true synergy that works when IT isn’t on the outside looking in, but inside, working with the business on the best way to look out. So, easier said than done, right? Well, believe it or not, it isn’t as difficult as you would expect. However, like dancing, it takes time, discipline and, most of all, practice to have it become second nature. There are two elements vital to the success of IT in any organization. The first critical element is ensuring that you have a resource dedicated to each business unit. Yes, dedicated. The sole purpose of this resource is to get into the trenches and help dig. There are too many IT departments who see the trench, stand up top and put together a project focused on how to develop a better shovel algorithm–since that is what they believe the business might want. MM&D | January/February 2015

15-02-13 2:38 PM

PROBLEM? SOLUTION! Although that can yield some adequate results, if you want true breakthroughs on creating business value on multiple fronts, IT needs to jump down into the trench, grab a shovel and dig. Get dirty, sweaty and muddy and experience the pain. That is when IT will fully understand what is truly going on with the business. That understanding, more often than not, in an innovative solution that can catapult the business forward, drive growth and increase IT’s credibility in the boardroom. A dedicated IT resource is the key to this understanding. If your IT shop is lean, then your resources may have to jump in more than one trench. But the rewards are worth it. The second critical element is the IT project portfolio; specifically, the creation of the portfolio. There isn’t a better way to create a prioritized, balanced and credible IT project portfolio than ensuring your IT resources and business representatives are all in the same room, tasked with the responsibility of forging this document through a robust, educated discussion. It has been my experience that allowing the business to participate in setting the projects and project priorities usually results in a very passionate and dynamic discussion that, in the end, clearly outlines the prioritized projects while establishing business buy-in and strengthening the bond between IT and the business units. Of course this approach requires a good deal of pre-work by IT, but the results are generally outstanding and demonstrate that IT is clearly making the needs of the business the true driver. To wrap it all up, you have your dedicated IT resource then present the portfolio to their individual business units, clearly showing what IT will work on during the year and how it will measure success. Then, at the end of the year, they do the same presentation to show what they said they would do and what they did and how successful they were at doing it. Total alignment between partners is crucial to success; from the Waltz, to the Pasodoble to the Tango, you need to be in sync with your partner and ensure you are dancing to the same rhythm. The same can be said for IT and the business: you have to both hear the same music, dance the same dance so that, in the end, you both finish to the resounding applause of the shareholders. MM&D Kevin Squires has led IT for over twenty years in the Pharmaceutical Industry with Novo Nordisk and GlaxoSmithKline and most recently in the Manufacturing sector as the Vice President, Business Technology for Konstant (RediRack). www.mmdonline.com | January/February 2015

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Meeting energy savings targets Problem: Meeting climate protection objectives Hermes Fulfilment, a company that manages four logistics centres, introduced a master plan on climate protection in 2006. In the field of modern logistics, the areas of materials handling, storage and order picking are often responsible for approximately 50 percent of the energy costs of plants with a high degree of automation. Heating, ventilation and lighting account for more than two thirds of the other 50 percent, and lighting for around 15 percent. This means internal logistics offers significant energetic optimization potential. Solution: 24-volt conveyor drive technology As part of its energy-saving program, the company is replacing its conventional 400 volt technology with energy-saving 24 volt drive technology from Interroll. Initial measurements have shown energy savings of about 25 percent thanks to the Interroll drive technology. Michael Schekatz, head of the technical services department at Hermes Fulfilment and responsible for sustainability, is impressed: “We installed this technology in order to save energy. At the same time, however, we noticed in trials how quiet it is. This is a success we never really expected and are quite pleased about. Furthermore, we have found that maintenance has become much easier now.” The technical service department of Hermes Fulfilment is upgrading the first logistics centre step by step during operations. But only four hours per day are available to do this. Thanks to the ease of configuring and wiring the Interroll ConveyorControl system, it can be installed and put into operation very quickly. A system driven by RollerDrive always has a decentralized structure. The drives are installed in all of the individual conveyor zones. This means they can be switched on or off separately. Movement throughout the entire conveyor takes place only when goods are actually transported with zero pressure. Only those RollerDrives that are needed to transport the goods to be conveyed are actually driven. This offers enormous potential for energy savings and noise and wear reduction. The logistics centre has approximately 54 hectares of surface area, and is the most modern site that Hermes Fulfilment operates. 170 million articles are moved here per year and up to 300,000 shipments leave the centre each day. Approximately 1.2 million cartons are stored in two high-bay warehouses. The length of the conveyor line that all products here are transported on is 30 km from goods receipt to goods issue. The drives clearly play an important role because they reduce the energy consumption in conveying the products.

15-02-13 2:38 PM

LEGAL LINK

When directors go to jail T Marvin Huberman

he duties and liability of directors of corporations have dramatically expanded over the past century. Recognizing that directors govern and oversee the activities of corporations, the law now imposes a broad range of duties and liabilities on directors. Founded on the principles of good faith, stewardship, and accountability, these principles are established by case law and are prescribed under Canadian federal and provincial legislation. Given that they exercise control and management over the corporation, directors bear significant personal responsibility for their conduct and decisions. Directors are required to exercise their power with the level of care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. They must also act honestly, in good faith, and in the best interests of the corporation. Directors can be held responsible for: Employee income tax deductions which the corporation fails to remit for two years following ceasing to be a director, and any related interest or penalties, under the Income Tax Act; Insider trading; Securities Act offences; Contraventions of dangerous goods and transportation legislation; Violations of provincial Pesticide Acts and Water Resources Acts; Competition Act offences; Violations of the Bankruptcy and Insolvency Act; and Numerous provincial offences and violations of the Criminal Code. If a director breaches his or her duty, the law provides for several remedies, including, but not limited to: • Injunctions or declarations of rights; • Damages or compensation; • Accounting of profits; • Restoration of the corporation’s property; • Rescission/setting aside of the pertinent contract, director or shareholder resolution, or other document; • Removal/dismissal as a director; • Penalties/fines/imprisonment.

It’s time to wake up A recent Ontario Provincial Court decision serves as a clear message to employers and corporate directors that the court will not only levy a heavy fine against the employer for Occupational Health & Safety Act violations but will also impose prison sentences on the corporation’s directors. The judge levied a $250,000 fine against an importer and retailer of furniture and accessories, New Mex Canada Inc, and sentenced two of its directors, Baldev Purba and Rajinder Saini, to 25-day prison sentences, following the 2013 death of a forklift operator who 36

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sustained a fatal trauma to the head when he fell from an order picker which was modified with an additional platform that did not have a safety guard rail. A Ministry of Labour investigation found multiple violations of Ontario’s Occupational Health & Safety Act at the Brampton workplace, including failure to provide health and safety training to workers, lack of fall-protection equipment and safety harnesses, and multiple other health and safety hazards. The two corporate directors were charged with failing as directors to take reasonable care that the corporation complied with the Occupational Health & Safety Act and with Regulation 851 (Industrial Establishments). Both pleaded guilty. They each received a 25-day jail sentence and were ordered to attend a health and safety course within 60 days. The employer was fined $250,000, plus a 25 percent victim fine surcharge required by the Provincial Offences Act, which is credited to a special provincial government fund to assist victims of crime. It pleaded guilty to failing to provide training and supervision to a worker regarding fall-protection and/or working from a height, and failing to ensure the safety measures required by law were carried out.

Importance of the decision In light of this decision, corporate directors should: • Conduct themselves, and make considered decisions, in a careful, honest, prudent, independent, and diligent manner; • Take all reasonable care to ensure that the corporation complies with the applicable statutory and regulatory requirements; • Be proactive in managing and supervising the business and affairs of the corporation in order to satisfy the criteria for proper governance and oversight of the corporation; • Be aware of the various contractual and statutory (and common law) limitations of liability/damages and defences that are available; • Seek professional advice on the appropriateness and availability of director’s and officer’s errors and omissions insurance, and carefully review the exceptions, exclusions, and limitations of coverage; and • Obtain indemnities, if possible, recognizing they may not be enforced by the Court in certain situations. MM&D Marvin J. Huberman, LL.B., LLM, is a Toronto trial and appellate lawyer, mediator and arbitrator. www.marvinhuberman.com. MM&D | January/February 2015

15-02-13 2:39 PM

LEARNING CURVE

Technology report The Internet of seeing, making and moving everything

decade ago, the idea that a 3D printer could quickly generate prototypes of prosthetic limbs, concept models of automotive and aerospace parts and complete vehicles–including the NASA Rover– seemed like science fiction. Today it’s a reality. Today the pace of innovation in commercial applications, including in the automotive and aerospace sectors and in the consumer products and health care industries, is staggering. Those who are quick to see the benefits of these technology leaps have the chance to realize business efficiencies and financial rewards. If your business is a successful early adopter of new technology, it can also bring an immediate competitive advantage. Granted, such rapid-fire developments can be tough to spot–and even tougher to prepare for. Yet technology advancement is a given, and prepare for it we must. In the spirit of this awareness and preparation effort, here are a number of important developments to keep an eye on. At the North American International Auto Show, held in Detroit in January, a completely 3D-generated car was rolled out, with its production plans already scheduled at a plant in Maryland for later this year. As automated manufacturing continues to evolve, mobile applications and increased collaboration abilities have significantly improved design, development and costing processes for manufacturers. And, as with manufacturing, transportation is seeing dramatic developmental changes. For example, Mercedes Benz recently released details of its future, self-driving truck—called 2025—that is poised to change the face of over the road transportation. Connectivity for such trucks will inevitably enable such features as onboard computers and mobile devices offering GPS, vehicle function and operation details. This is expected to facilitate RF scanning of goods, paperless logs, trailer and freight tracking too. Logistics companies might also be interested in the use of warehouse equipment, including a new 3D vision-enabled unmanned pallet truck which does not require any changes to the design of a company’s warehouse or stacking systems. The fully programmable pallet truck unit can be trained to know the precise layout of the warehouse, the rules of the warehouse movement allowances and more. In the world of railways–for public transportation– the Transport for London (the local government body responsible for most aspects of the transport system in Greater London) is working with a design firm to www.mmdonline.com | January/February 2015

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roll out a driverless Tube Train for a 2020 launch. In Japan and China, the Magnetic Levitation (MagLev) or bullet trains use magnetic materials to create lift and propulsion. MagLev trains use mechanics that operate completely free of the conventional design of tracks and trains–and therefore friction. The Central Japan Railway Company test of its Shinkansen train saw speeds over 500km/hr. In North America, Union Pacific tested a 3.5-milelong freight train with new distributed-power configurations (DPUs), which add extra locomotives between or behind freight cars on extremely long trains in order to haul heavier loads without derailing. The DPU has historically been used for hauling coal through mountains, but there is a proposal to use monster trains which push-pull 6,000 ft of double-stacked container cars. Looking upward, unmanned aerial vehicles–otherwise known as drones–are already a reality, used in military surveillance, combat and border patrol. But there is growing interest from the public and from industry for recreational and commercial applications. Meanwhile, the US military is working with a tabletoperated helicopter, the Autonomous Aerial/Cargo Utility Systems (ACCUS)-built chopper, which can ferry supplies to otherwise unsafe and inaccessible areas. Obviously, the march toward complete technological accessibility will continue. While certain innovations may be delayed or halted by government restriction, public criticism or lack of resources, there will always be leaders willing to take risks to develop new technology. A case in point: augmented reality (AR) devices such as the wearable Google Glass. The prototype was recently withdrawn from the market, and the company has moved it to product development. There’s no doubt that the capability of AR holds major promise, adding and enhancing physical reality with layered computer content such as virtual text, graphic, GPS, sound and even scent. Google Glass displays information in a smartphone-like hands-free format (through a set of glasses). Wearers will communicate with the Internet via natural language voice command. As demonstrated by these many examples, it’s clear that manufacturing, retail, vehicle operation and the supply chain are taking on a more futuristic look. Will you be ready? MM&D

Tracy Clayson

Tracy Clayson is managing partner, business development of Mississauga, Ontario-based In Transit Personnel. tracy@in-transit.com 37

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MATERIALS HANDLING

The returns headache W Dave Luton

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hile Canada is considered somewhat of a laggard in the ecommerce world the problem of returns is a headache that has reached epidemic proportions in countries with more mature ecommerce . A recent column in the Financial Times showed how bad things have become in Britain: “Across ecommerce, returns average 15 to 20 percent, although fashion e-retailers see much higher rates of up to 50 percent. CollectPlus, the parcel delivery operator, has estimated that 31 percent of goods purchased online this Christmas will be returned.” In a Wall Street Journal article a UPS spokesperson noted that in some areas apparel returns can reach approximately 50 percent, and that e-commerce returns can be up to three times that of in-store purchases. The same article noted that two thirds of consumers who now purchase online returned at least one item in the last year. What is more worrying for retailers and manufacturers is that for some product classes such as electronics or apparel, a product may not be defective but will still be returned, with some cases bordering on consumer fraud. Use and return is a growing retail problem ranging from wear-and-return for apparel and use-and-return for electronics (for example, using a large screen TV to watch the Superbowl and then returning it.) From a logistics perspective the increasing volume of returns creates the need for a dedicated returns handling process and network. The best network is dependent on the existing outbound customer logistics system. The two main types are sale through retail outlet, or via e-commerce. Whichever the network used, the operational requirements for handling returns are the same. These include the following: Phase 1 – Initial Processing and Disposition • Provide procedure to authorize returns. • Determination of cause of return, initial inspection and handling, including repair, replacement, and/ or customer credit. • Returns follow-up processing; classifying for followup action, packing and packaging for disposal or return to main returns processing facility (e.g. warranty return to manufacturer) including use of economies of scale like batch returns. Phase 2 • Receipt at main returns processing centre(s); • Returns follow-up inspection for onward processing and handling; • Processing and repair for reuse, recycling or disposal of non usable items.

The location and handling of the initial phase depends on the location and size of the outbound logistics network supplying the customer. In a retail environment the customer goes to the location that initially sold the merchandise. This also has the advantage that it may allow to resolve the cause of the return in the case of non defective product. There is a large savings opportunity here as surveys have found that product with no defects account for the majority of returns in some industries such as consumer electronics. This also allows the product to be offered for resale in case of non-defective product. For retailers returns prevention offers a significant advantage that e-commerce companies often find hard to match by providing customer assistance in the product functionality and better customer fit. With their closer accessibility to the point of first use, retail outlets can ensure their customers get better set up with their new goods. In effect they are weeding out potential returns. In e-commerce, with the lack of customer-accessible outlets, this initial phase has been handled at the main fulfillment centres or a centralized returns processing operation for larger operations. The problem is there is often increased in transit damage because of improper returns packaging and increased fraudulent or non-authorized returns. With Internet capability e-commerce companies can offset this advantage by providing time-efficient customer support and use of modern video technology. It is interesting to speculate that some companies, in their desire to cut accessible customer support costs, they may be increasing their returns volume. Recently, with increasing volume of e-commerce shipments and associated returns, many of the larger courier companies are establishing returns processing capability to help their customers. These include regionally located facilities like the UPS Store which can do initial returns processing for e-commerce clients. In this role they can provide a cost-effective initial returns screening and processing for their clients much like that of a triage nurse in a hospital emergency room. They can even do initial repairs on small defects (are the batteries working?) Truly defective returns requiring more complex repairs can be directed to company repair sites for proper follow-up handling. MM&D Dave Luton is a consultant in the greater Toronto area. dluton@cogeco.ca MM&D | January/February 2015

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