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Going global in

2010

Pros share how to improve international supply chains Plus: The 2010 3PL Capability Guide and Directory Keeping your warehouse optimized The debut of our NEW Firefighter column

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Taking Stock

Learn more by doing more T

here’s no time better than the dawn of a new decade to shake things up. Fittingly, MM&D rang in 2010 with plenty of changes.

In January, I took on the title of editor of both MM&D and our sister publication, Purchasingb2b.

Emily Atkins, MM&D’s publisher and editor-inchief, is now also publisher of Purchasingb2b.

Our two magazines have worked together closely in the past, and it’s logical to align our resources.

Joining us on the team is managing editor Deanna Rosolen, who comes to us from Food in Canada. You’ll soon get to know her at industry events and through her contributions to our magazine, eNewsletters and website.

On the sales side, we recently welcomed Catherine Martineau to MM&D. Catherine brings many years of experience in the supply chain industry, most recently with Logistics magazine.

These changes don’t alter MM&D’s core purpose (to give readers relevant and useful information

about supply chain management in Canada). What they do mean is that we’re each balancing multiple responsibilities, many of which are new.

Interestingly, this puts us squarely in line with an emerging trend in the supply chain management profession. Across Canada, as companies trim the size of their workforces, those left on the job are called on to absorb more and more responsibilities.

Some might argue that when you overload people with different duties, you strip them of their core competencies and dilute the quality of their work. For instance, a person who’s used to planning freight routes might not be adept at negotiating supply contracts; if charged with dual jobs, he might end up doing mediocre work at both.

Whether or not you buy that argument, the industry appears—for the time being, at least—to be heading away from functional specialists. As companies strive to create truly end-to-end supply chains, they want people who see outside the silos.

This situation, born out of economic necessity, gives professionals the chance to deepen their skill sets and experience. It will help all parties understand more fully how the links in the supply chain work. It’s not a burden.

It’s an opportunity to embrace.

January/February 2010 | Volume 55 | Number 1

Contents Features

Columns

12 Going global in 2010 In this economy, what can international shippers do to make their supply chains more efficient? Our roundtable of experts weighs in.

29 Materials Handling Keeping up with change

18 The 2010 3PL Capability Guide and Directory Looking to outsource? We’ve got your match. Our index of Canadian third-party logistics (3PL) providers reveals which companies can provide you with the services you need.

MM&D | January/February 2010

30 NEW! Firefighter No data. Now what?

Departments 3 5 7 8 9 10

Taking Stock Supply Chain Scan Done Deals Global Focus Movers + Shakers Benchmarks

3

Tracking rail www.mmdonline.com Publisher/Editor-in-Chief: Emily Atkins (416) 764-1537 emily.atkins@mmd.rogers.com EDITOR: Deborah Aarts (416) 764-1538 deborah.aarts@rci.rogers.com MANAGING EDITOR: Deanna Rosolen (416) 764-1533 deanna.rosolen@rci.rogers.com ART DIRECTOR: Stewart Thomas (416) 764-1547 stewart.thomas@industry.rogers.com PRODUCTION MANAGER: Kristen Hrdlicka (416) 764-1692 kristen.hrdlicka@rci.rogers.com SALES MANAGER: Dorothy Jakovina (416) 764-1550 dorothy.jakovina@rci.rogers.com SENIOR ACCOUNT MANAGER: Catherine Martineau (647) 988-5559 catherine.martineau@rci.rogers.com CIRCULATION MANAGER: Celia Ramnarine (416) 932-5071 rogers@cstonecanada.com EXECUTIVE PUBLISHER: Tim Dimopoulos EDITORIAL ADVISORY BOARD: Shakeel Bharmal, Jack Bradley, Tracy Clayson, Belinda Junkin, Aaron Lalvani, Ruth Snowden, Amanda Tolhurst and David Wood.

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Shippers vent railway frustrations, while CN and CP report 2009 profits, page 6

Supply Chain Scan

Inside | Fine China, page 8

2009 port report With the exception of Prince Rupert, volumes at Canada’s major seaports were down

I

f there was any doubt that 2009 was a tough year for Canada’s ocean ports, the year-end numbers seal the deal.

First, the good news. The Port of Prince Rupert welcomed its highest volume of cargo since 1997, handling 12,173,672 tonnes, up 15 percent from 2008. Business was up across all the port’s areas of business, but the most dramatic increase was at its two-year-old Fairview Container Terminal, which handled 265,259 20-foot equivalent units (TEUs), a whopping 45.9 percent increase over 2008. Prince Rupert Port Authority president and CEO Don Krusel attributed the growth to increasing confidence in the port’s service among shippers and ocean carriers.

Things were less sunny further down the British Columbia coast. Despite a number of accomplishments—including the completion of the Deltaport third berth expansion project—Port Metro Vancouver recorded an overall drop in tonnage of 11 percent from 2008. At 2,152,462 TEUs, total container traffic was down 14 percent. That said, laden export boxes showed signs of strength, registering a one-percent improvement thanks to containerized forest products and specialty crops.

To the east, the Port of Montreal saw tonnage drop 12 percent to 24.5 million tonnes in 2009. A total of 1,247,690 TEUs passed through the port, down 15.3 percent from 2008.

At the Port of Quebec, which does not have an extensive container business, overall tonnage decreased 21 percent, largely because of slowdowns in the steel and construction industries.

Further east still, the effects of a fourth-quarter uptick in container traffic at the Port of Halifax were not enough to offset an overall downward trend. The number of TEUs dropped by 11 percent in 2009. Overall tonnage at the port dropped 6.2 percent from 2008.

Make www.mmdonline.com part of your workday Here’s a sample of recent daily headlines from our website: • Toyota recall rocks supply chain • Deltaport third berth opens for business • US CBP’s 10+2 rule takes effect • Despite the logistical hurdles, aid is getting to Haiti • Seaway’s cargo volume lowest in more than 40 years • Manufacturing continues growth trend • CN exceeds western grain revenue cap • Canada finalizes EU air deal We’d like www.mmdonline.com to be your first stop for Canadian supply chain news. Please write to Deborah Aarts at deborah.aarts@mmd.rogers.com with your feedback.

MM&D | January/February 2010

5

Supply Chain Scan

Railways frustrate customers, turn profits

H • Downsize Aisles • Gain Warehouse space • Increase Productivity

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ow do Canadian shippers really feel about rail service in this country?

According to a recent survey conducted by NRG Research Group for Transport Canada’s Rail Freight Service Review, they’re none too pleased.

When asked to use a scale of one to seven to rate their satisfaction (with seven being very satisfied), only 17 percent of the 262 shippers polled by the agency answered in the sixto-seven range. A total of 35 percent gave dissatisfied scores of three or lower.

Furthermore, 45 percent of respondents said their satisfaction levels had decreased over the past three years, and a whopping 62 percent reported suffering serious financial consequences because of poor rail freight service.

The dissatisfaction reported by shippers was linked to problems with on-time pick-up and delivery of cars, reliability of car supply, consistent transit times and the responsiveness of railways to problems.

A perceived lack of accountability is to blame for much of the frustration as well. More than half of the shippers interviewed said they feel there are no or very few measures in place to hold railways responsible for customer service.

Of Canada’s two Class 1 railways, CN was seen as being better at tracking shipments, moving traffic quickly and achieving consistent travel times.

By contrast, CP was considered better at employing professional and knowledgeable staff, responding when problems arise and offering frequent service.

Despite the undercurrent of frustration, the report wasn’t all negative. Survey respondents came up with a host of suggestions for the railways to improve service, including implementing better communications, providing more consistent travel times and improving infrastructure, among other measures.

The NRG release coincided with year-end earnings announcements from both CN and CP, and the numbers show that while the recession has left its marks, neither party is hurting from the lack of customer satisfaction.

CN saw its 2009 revenues decrease by 13 percent to nearly $7.37 billion. Operating expenses were down 11 percent.

All told, however, the company’s net income dropped two percent from 2008 to end the year at just over $1.85 billion.

Revenues at CP were also down, by 18 percent. That left the company with $4.3 billion in revenues in 2009.

Like CN, it saw operating expenses drop. But in total, the railway generated a net income of $612 million, up from $607 million in 2008.

6

MM&D | January/February 2010

Supply Chain Scan Done Deals Oak Brook, Illinois-based Federal Signal Corporation has acquired Toronto, Ontario-based RFID developer and manufacturer Sirit Inc. The transaction is valued at approximately $49.5 million.

A subsidiary of CPP Investment Board and Sterling Partners has completed its acquisition of Toronto, Ontario-based Livingston International Inc’s assets.

Hartland, New Brunswick-based Day & Ross Transportation Group has acquired G Edwards Enterprises Ltd, a Saskatoon, Saskatchewanbased truckload carrier. Day & Ross, which is a wholly owned division of McCain Foods Limited, plans to integrate the Edwards terminal into its Fastrax division.

Cyberfreight Systems Inc, a transportation and logistics management company with headquarters in Montreal, has completed the integration of its systems with the EDI-enabled INTTRA electronic commerce platform.

Greenville, North Carolina-headquartered forklift manufacturer Hyster Company is now using the EV Traction maintenance-free battery solution from Vancouver, British Columbia-based Discover Energy Corp in the manufacture of its forklifts.

Delmar International Inc, a Toronto, Ontario-based logistics service provider, has acquired Mississauga, Ontario-based The Federated Group of Companies, which includes Federated Customs Brokerage, Federated International Inc, JD O’Hearn & Co and Federated Freight Services. a.hartrodt USA Inc has acquired global logistics firm Cargo Alliance Ltd’s operations in Canada. Cargo Alliance has offices in Toronto, Ontario and Montreal, Quebec.

Contract packager GH Günther Huettlin Manufacturing Inc of Belleville, Ontario is now using Toronto, Ontario-based Nulogy Corporation’s PackManager contract packaging optimization software in its facility.

Dole Fresh Fruit, a subsidiary of Dole Food Company, has started using all-plastic pallets with embedded RFID tags from Intelligent Global Pooling Systems (iGPS) to ship of some of its products in North America.

Logistec USA Inc, a wholly owned subsidiary of Montreal-based Logistec Corporation, has entered into a long-term agreement with HRK Holdings LLC. HRK will develop a new distribution centre for Logistec’s fertilizer and bulk import customers in central Florida and will gain access to Logistec’s services at Port Manatee, Florida.

The merger between Diamond Phoenix and System Logistics is now complete. The company is now using the name System Logistics Corporation and operating under the Italian firm System Group SpA.

MM&D | January/February 2010

7

Supply Chain Scan

Opportunity knocks in China

By Deborah Aarts

M

any Canadian supply chain managers recognize the potential benefits of doing business with companies in China, but far fewer understand the ins and outs of doing so.

Those who have met with success have spent time on the ground working through the details.

SCL Canada is well aware of this, and has a memorandum of understanding with the Chinese Federation of Logistics and Purchasing (CFLP) to further the links connecting Canadian and Chinese supply chains. Last spring, a CFLP group toured the country and attended SCL Canada’s annual conference. In December, a delegation of trade logistics professionals from continued on page 10

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New logistics platform for China Waterloo, Ontario-based Descartes Systems Group has joined forces with New Trend International Logistics Technology Ltd (NTI), a Chinabased material handling technology provider. The aim is to create a logistics information management platform that enables participants to work together to automate multi-party business processes and share critical information.

Santé! Prost! Union toasts 10 years At first glance it may not be clear how a partnership between a renowned champagne producer and industrial tire manufacturer could be so appropriate.

But it is for French champagne producer Moët et Chandon and German-based Continental Industrial Tires. The two companies have worked together now for 10 years.

Continental Industrial provides its SC20 tires for Moët’s 90 forklifts.

Moët says it uses the tires because they do not contain materials that generate nitrosamines, so there is no risk of tire wear particles contaminating the beverages. The tire’s suspension is also a key feature when transporting the fragile bottles and ensuring that the corks do not pop prematurely.

Considering that the corridors in Moët’s wine cellars are roughly 28km in total length, it’s easy to see why good tires are critical.

Supply Chain, WarehouSing, TranSporTaTion & FleeT ManageMenT SoluTionS ©2009 Ryder System, Inc. All rights reserved.

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MM&D | January/February 2010

Supply Chain Scan Movers + Shakers

Curtis Davlut

Triumph Express Service Canada Inc has appointed two industry veterans to lead its full-service transportation and distribution logistics division, Triumph Express Transportation Solutions.

Curtis Davlut has been appointed vice-president, supply chain solutions. Davlut has more than 20 years of experience in transportation, freight forwarding and supply chain management.

Dave Mulligan has been named vice-president of transportation.

Mulligan has more than 30 years of experience in the transportation field.

Darlene Thibault has been appointed to the board of directors of Export Development Canada. Thibault is director of Scotiabank’s leasing division in Quebec.

Two other members of the board—Norman Betts and John Rooney—have been re-appointed.

Brian Stewart has been promoted to president and co-CEO of Jervis B Webb Company. Stewart, a 29-year veteran of the company, was most recently executive vice-president and chief operating officer. He replaces Ryuichi Kitaguchi, who is retiring.

Allan Robison has joined UPS Freight as a vicepresident of sales, leading the company’s Canadian sales efforts. Until his retirement last year, Robison worked as president of Reimer Express.

CN has announced changes to its leadership team.

Keith Creel is now executive vice-president and chief operating officer. Jean-Jacques Ruest is now executive vice-president and chief marketing officer. Kim Madigan is the new vice-president of human resources, assuming leadership of the labour relations and human resources functions. And Gordon Trafton—who was senior vice-president of strategic acquisitions and integration—will serve as a special advisor to the executive team until he retires at the end of 2010.

Intelligrated has promoted Jim Sharp to executive vice-president. Sharp will oversee the implementation of the synergy plan developed following Intelligrated’s acquisition of FKI Logitex last June. Previously Sharp served as vice-president, finance and chief financial officer of Intelligrated.

Intelligrated has also appointed Edward Puisis to the position of chief financial officer and executive vice-president.

In the November/December 2009 issue of MM&D, the wrong photo was published beside news of the appointment of Dan Davis to the new position of vice-president, operations at Oakville, Ontariobased Lakeside Logistics. Here is the correct photo. MM&D regrets the error.

Dave Mulligan

Dan Davis

Supply Chain Scan

Logistics booming in China continued from page 8

Canada returned the favour.

On the week-long trip, a group of Canadian shippers, service providers, government representatives and others visited several cities, including Beijing, Tianjin, Shanghai and Chongqing, an emerging logistics hub 2,800km up the Yangtze river.

In late January, a panel of trip participants shared their experiences at an SCL Canada dinner in Toronto.

SCL president Bob Armstrong explained the association’s goals in organizing the delegation. “We went to learn what their strengths and weaknesses are so we can find where the gaps are.”

What do logistics managers need to know about China?

According to Anne Waldes, president and CEO of Trade Link International Ltd, the Chinese logistics industry thinks large, moves quickly and does nothing in half-measures.

“Take the 32-km causeway that runs from the mainland to the Port of Shanghai,” she said. “It took them 18 months to build that, along with the port itself.”

In recent years, the government has invested vast amounts of capital to develop logistics-related infrastructure. Fleets are massive—it’s common for an average company to have 2,000 trucks on the road. Warehouses are huge, tall (often standing upwards of 30ft) and increasingly computerized.

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Waldes came away from the trip with great optimism about Canada’s opportunities in China. “Everyone there is hungry to make a connection. They’re hungry to see how we do things.

They want trading partners.”

China’s aggressive approach to development has generated criticism from some for its lack of ecological consideration.

Bruce Hodgson, director of business development at the St Lawrence Seaway Management Corporation, shared what he discovered about China’s attitude toward the environment.

“They said ‘[green] will be the next phase, and it will probably be mandated. The incentives will be put in to place and it will happen.’ So they will go green. It’s just not on the government’s radar at this point in time.”

John McPherson, senior advisor, global trade management at Export Development Canada, talked about the technological lessons learned on the trip. The notion of China as a country where low costs trump innovation is not entirely accurate, he reported. “We’re starting to see technology in certain areas that has evolved beyond what we’re doing in North America.”

Towards the end of the discussion, Armstrong stressed how enthusiastic companies in China are to do business with Canadian shippers and service providers. “If they can get their product in to North America in a cost-effective way, they’re willing to hear what we have to say.”

Benchmarks Toyota Industrial Equipment Manufacturing Inc’s Columbus, Indiana-based manufacturing plant has been awarded the Indiana Governor’s Award for Environmental Excellence for the second time in three years. The manufacturing plant is where the majority of Toyota lift trucks sold in Canada are made.

Through an energy reduction program, the company reduced electrical consumption by 12.3 percent and natural gas usage by 13.2 percent at the facility. All told, carbon dioxide emissions are down by more than 3,611 tons.

The Canadian International Freight Forwarders Association (CIFFA) has selected Toronto-based Claudia Ramirez, ocean imports team leader in Toronto at DHL Global Forwarding (Canada) Inc, as its 2010 Young Freight Forwarder of the Year.

Each year, CIFFA awards a cash prize of $1,500 to a young individual with the education, skills, knowledge and attitude to be an exceptional freight forwarder.

Ramirez—who has worked in various areas of freight forwarding and transportation—won for her dissertation on moving an oversize shipment from Edmonton, Alberta to just outside Santiago, Chile.

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MM&D | January/February 2010

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Going global in

2010

A panel of pros shares how to improve international supply chains

Canada has always been a trading nation. At some points it’s been easy for companies to import and export. During other periods— like the past two years—it’s been tougher. Deborah Aarts sits down with a group of experts to discuss the state of global supply chains.

I

n January, at the dawn of a new decade, MM&D hosted a roundtable discussion to determine how the trade landscape is changing for Canadian shippers. At the table were seven experts in global trade: Vincent Barboza (senior manager of trade products, global solutions at Royal Bank of Canada), Carol Buckton (senior director of trade logistics, Siemens Canada Limited), Jeff Cullen (CEO North America, Bellville Rodair International), Scott Gibson (manager of supply chain services, AstraZeneca Canada Inc), John O’Reilly (director of Customs and traffic, Toshiba of Canada Limited), Jim Ramsay (vice-president of air and ocean freight, UPS Supply Chain Solutions) and Steve Valentine (president of Cargo Alliance Ltd).

12

The group set out to answer two main questions: What new challenges have emerged for Canadian importers and exporters in the past two years? And what can be done to make their global supply chains work better?

Risky business It’s clear that Canadian shippers face some serious barriers in managing their international trade programs. The panellists aired a host of concerns, most of which related to the risks now associated with importing and exporting products.

One of the biggest areas of concern for the group was stricter border security measures, such as the US Customs-Trade Partnership Against MM&D | January/February 2010

Photography by Roger Yip

Sponsored by

Terrorism (C-TPAT) and the Canadian Partners in Protection (PIP) programs.

Cullen brought up the importance of keeping Canada’s import- and export-related regulations in line with those of the US. Otherwise, he said, “instead of being inside a North American fortress we’ll end up outside of the American vault. And since the US is the largest trading partner for Canada, that’s a very, very big threat.”

“Bureaucrats are telling us what we should be doing, but they don’t understand the practicality of what we have to work with,” Valentine added.

Differing Customs and security regimes create difficulties for shippers, according to Buckton.

“Each country seems to be coming up with its own plan on how it wants to receive information and how it wants to structure its border processes,” she said. “As a global company, it’s very difficult to harmonize and ensure we have one process to be able to move goods throughout the world.

“You have to understand the rules and regulations in every country in which you’re doing business. The penalties if you don’t—or if you make mistakes—are tremendous.”

Such rigidity and diversity in trade rules can block shippers from making quick supply chain alterations to keep up with the pace of business.

“We used to be able to move something from air to ocean very quickly, or from ocean to air,” Buckton said. “We can’t do that now, because once we’ve reported we can’t take it back.”

It falls on supply chain managers to find ways to keep compliant without hindering profitability.

As Gibson explained, doing so necessitates constant due diligence—both within the company and with service providers.

“We’ve done our darndest to stay current, as a company, with all the government regulations,” he said. “And we’re trying to make sure that gets cascaded down to those that carry our freight.

We’re trying to make them do what needs to happen to comply.”

Non-compliance is not the only service provider-related risk shippers have to contend with. Both Cullen and O’Reilly expressed concern with the trend among air and ocean carriers to curb capacity in attempts to drive up demand.

“That’s put a strain on the marketplace for Canadian product. It’s going to not only tighten the opportunities for people to secure space for their cargo, but drive up the price,” O’Reilly said.

Ramsay added that carriers are making major changes at breakneck speed. In this environment, it takes an “immense” amount of effort to keep on top of things, but failure to do so is perilous.

MM&D | January/February 2010

“You end up struggling, paying more and using the wrong mode of transportation to overcome some of the challenges.”

The risk extends to the other end of the supply chain, too. The volatility of the past year has dramatically increased the risk shippers face in dealing with their international customers, Barboza explained.

“A lot of companies have been faced with an issue of contract cancellation.

Say you’re making specialized equipment for a company, and production has been started. You realize the contract has been cancelled because your customer’s company has gone under. So you’re left with specialized equipment that you can’t sell to anyone.”

All these issues—strict regulations, capacity shortages, rate fluctuation, supplier/customer uncertainty—undoubtedly make work more challenging for supply chain managers. They also increase the costs associated with global trade programs, which, as Buckton pointed out, is difficult to explain at budget time. “All [corporate] wants to see is the reduction of costs. They’re not really that interested that you’ve done a good job [negotiating the challenges], because it’s always made it to the customer before.”

Focus on survival The aforementioned problems are not necessarily new, but the group agreed that they have been exacerbated by the economic downturn.

Buckton pointed out that the recession hit just as many of the most significant barriers—like border restrictions—were coming into effect.

Jeff Cullen

Carol Buckton

“New regulations were coming into play and having to be implemented at a time when companies were tightening their belts and having less money to spend on those types of programs. Also, they needed borders to be open so they could keep their businesses running rather than putting up barriers to trade,” she explained.

Ramsay picked up on this theme. “For the last year, a lot of companies have been focused on survival. When you’re focused on survival, you’re not necessarily looking down the road for what security is coming up, how you’re going to build technology, and how you’re going to look at financing longer term. You’re looking at ‘how am I going to get paid for this contract today?’ and ‘how am I going to get this shipment across the border today?’

“I think the recession shifted people’s longer-term supply chain focus to a much shorter term.”

Gibson agreed. While companies might have good intentions to implement security programs, day-to-day challenges take priority.

13

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“We do our best to stay compliant, but it comes at a cost. And it’s prioritized. Is the money there or not? If it’s not, then we’re not going to [launch a program] until it is, and it may take two years.”

Clearing the hurdles Given the paucity of resources currently available, it’s clear that transcending the risks involved in international supply chains is as tough as it’s ever been. But it’s not impossible. The roundtable participants shared some recommendations for strategies that have proved effective.

O’Reilly advocated a more hands-on method for monitoring supply chain partners. For example, he’s made it routine to go visit new plants overseas to ensure they are up to par when it comes to safety and quality. It’s an approach he said is now necessary when managing global supply chains.

“It’s not just a local thing anymore. You can’t just look in your own backyard. You have to go and visit other backyards and see what’s happening there,” he explained.

“When it comes down to it, it’s all about partnerships. You’re partners with your suppliers and carriers and forwarders and brokers and local guys.”

Barboza recommended another approach: hedging.

With the right precautionary measures, companies can protect themselves Vincent Barboza against situations like customer insolvency or broken contracts by suppliers. He used an exporter-based example to illustrate his point.

“If you’ve got receivables from companies globally and you’re worried about the possibility of those companies going under, you can go to an organization like Export Development Canada and get that insured.”

Ramsay suggested companies shift their relationships with agencies like the Canada Border Services Agency and US Customs and Border Protection from adversarial to friendly.

“Typically some of these regulatory agents don’t think of themselves as partners; they think of themselves as traffic cops,” he said. “Spend time— be relentless—working with them to make your supply chain seamless. If you find good contacts and work with them, you can actually make some huge inroads.”

MM&D | January/February 2010

For Buckton, the most effective way to thwart the obstacles is to employ a comprehensive risk management system across the entire enterprise. Her company has assembled a compliance team composed of people responsible for different aspects of security—including information technology, human resources, physical security, Customs and export controls—to make sure everyone is on the same page.

“Maybe the logistics manager knows things that aren’t making their way up to the executive level,” she pointed out. “We’re working to make sure that every aspect of the company is covered by the risk management program. We make sure we have everything noted on the risk register and that management understands clearly where the areas of risk are.”

Open up!

Collaboration as a means to improve trade programs proved popular with the panel. Gibson advocated joining industry groups to share ideas, while O’Reilly recommended observing the best practices of similar companies.

But collaboration is easier said than done. It depends on good communication, which can be hard to come by. In Valentine’s view, this is where many companies run in to trouble.

John O’Reilly

Scott Gibson

“Every single company seems to have this barrier around them. They will only filter a little bit of information, be it to the transportation provider or whomever. That’s where you end up with difficulties,” he said.

“If there was more open communication and people actually discussed their real needs in total rather than being frightened about giving information away, things would improve.”

For Canadian subsidiaries of international companies, the communication breakdown isn’t just with supply chain partners, but across international branches of the company as well. Decisions made overseas can affect operations here—often adversely. Gibson shared his thoughts on the reason behind this.

“I think a lot of countries try to push inventory on other countries to make their books look as good as they can. It’s how they track it and how they report it. And it’s kind of a game, because in the end the company’s paying for it.”

“Everybody thinks they can do a better job and get a better rate,” Buckton added. “But we know our business here, the geography and infrastructure here, and we always find that when [a contract is] negotiated somewhere else there’s usually a breakdown in the chain.”

15

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Her team has been able to convince Siemens’s German parent company to afford it some autonomy by proving the value of its input. “We’ve been very successful in making Germany see that they can’t negotiate for Canada without Canada being at the table,” she said.

“I definitely have more of a partnership with my overseas offices than I ever did in the past.”

O’Reilly has had a similar experience. “When I started at Toshiba, Japan was looking after all negotiations, freight, everything. But Canada’s completely different than Japan,” he said. So his team took the initiative to ask supply chain partners to provide Canada-specific services, to great success. “We’ve been able to prove that we’re able to get the best service for the dollar.”

O’Reilly’s point validated Valentine’s assertion about the importance of communication.

“That’s the only way to improve the supply chain.

If you’ve got everything on the table and there’s not that secrecy any more, you can really discuss the solutions that will work in the long term.”

All told, the consensus was that at a time when international logistics providers are clinging to life, the shippers relying on them should keep their viability in mind.

The bright side With green issues at the top of most corporate agendas, the group discussed the idea that the recession may prompt Canadian companies to repatriate manufacturing or source from near-shore markets to lessen carbon footprints. Ramsay shared his thoughts on the issue.

“We see a trend of shippers and importers becoming more in tune with the carbon footprint and looking for ways to become carbon-neutral,” he said. “But I think we’re still a little ways from that being a driver behind a decision to source from Mexico, say, versus Asia—I think there are other factors driving that, like risk and speed to market.”

Let’s get reciprocal For Barboza, better relationships depend on shippers and service providers all demonstrating flexibility in the face of tough market conditions.

He cited letters of credit as an example. Originally intended to facilitate trade, they often end up a barrier, thanks to the common practice of Steve Valentine Jim Ramsay stakeholders imposing additional clauses.

“What happens is elements get delayed, and the Despite this, globalization shows no signs of waning. When asked if the whole purpose of the instrument is defeated. It average Canadian shipper would be smarter to expand or curb international creates a lot of inhibitions in the supply chain.” trade efforts in 2010, none of the panellists chose the latter. The economic His solution? Let the documentation serve its benefits of international supply chains appear to outweigh the problems. core purpose, and reserve everything else for “There may be a day where manufacturing comes back to North America separate discussions. “Clauses should be discussed because lead times have become too long or transportation costs have outside of the letters of credit. Make it short and become too high,” Cullen acknowledged. “Not keeping your eye on it is a simple and workable for all.” recipe for certain death. The only thing I wouldn’t do is stay complacent.”

Barboza’s point brought up the issue of Going forward, the group agreed that shippers won’t be building global reciprocity in global supply chains. Cullen said supply chains haphazardly. The recession has bruised many companies that all parties in a partnership should acknowl- enough to instigate a more cautious path in the future. edge the needs of the others to make a profit. “[The recession’s challenges] make you look at your processes, fix them “If there was the ability to truly have now and come out stronger to be more competitive,” O’Reilly observed. transparency and trust, I’d be able to say ‘here “When times are good we tend to sit back and give ourselves a pat on the are my books. Understand this is what I make on back,” Gibson added. “Really, that should be the time for the most change.” my margin,’” he commented. “That is a very Barboza chimed in. “Those companies that survive will be leaner and different paradigm. It’s a very different level of better, more innovative, more efficient.” sophistication than someone saying ‘somebody Ultimately, to make global supply chains effective in 2010 and beyond, else gave it to me for three cents a kilo cheaper.’” shippers must be creative, flexible, knowledgeable and, in Buckton’s opinion, Buckton agreed. “It’s not in my interest to go ready to expand. into a tender keeping everything secret…I want “Not necessarily bigger, but beyond the horizons we’re looking at today,” them to know all the intricacies because I don’t she explained. “You have to consider all options, and you have to be wellwant in three months for them to come back and educated, because there’s a lot of money to be lost if you don’t know what say they can’t do it at the price we discussed.” you’re doing.”

MM&D MM&D | January/February 2010

17

3PL Capability Guide

2010 Third-Party Logistics (3PL) W

elcome to MM&D’s eighth annual third-party logistics (3PL) capability guide and directory.

Every year, we compile this list to provide you with a compendium of 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 sails though uneasy waters, many shippers are seeking ways to offset risk and remain focused on core competencies. They’re turning to 3PLs for help.

C: Canada N: North America G: Global

SPONSORED BY:

Company Name

Overview

Markets Served

Transportation

Customs

Areas Se rved A sset-Ba sed ISO Cert ified Distribu tors Manufa cturing Retail Service Industri es Air Bulk Dedicate d Contr act Carr Drivers iage Expedite d Fleet Ma na g e m e nt Hazardo us Mate rials High-Va lue Intermo dal Leasing LTL Ocean Rail Seaway Small Pa ck ag e TL ACE ACI C-TPAT CSA FAST Licensed Custom s Brokers PIP

Overview Legend

A full 60 percent of shipper respondents to Capgemini Consulting’s 2009 State of Logistics Outsourcing study (released late last year) said that current conditions are causing them to rethink their supply chains and their relationships with 3PLs. While in the past shippers have tended to hire 3PLs for principally tactical activities, many now recognize the value of deeper partnerships. Indeed, 75 percent of survey respondents said they felt more strategic relationships with 3PLs would help them cut total landed and distributed costs.

Trailcon Leasing Inc. N • • • • • • • 3PL Links Inc. G • • • • • • • • • • 3PLogix G • • • • • • • • • • • • • • • • • • C • • • • • 80/20 Logistics A.G.O. Transportation Inc. G • • • • • • • • • • • • • A.N. Deringer Inc. G • • • • • • • • • • • • • • • • • • • • Affiliated Customs Brokers Ltd. G • • • • • • • • • • • • • • • • • • • • • • G • • • • • • • • • • • • • • • Agility All-Can Distribution Centres Inc. G • • • • • • • • • • • • • • • • All-Connect Logistical Services Inc. N • • • • • • • • • • • • • • • • • • • • • • • • Alliance Shippers Inc. N • • • • • • • • • • • • • • • • • • • • • • G • • • • • • • • • • • • • • • APL Logistics APPS Transport Group ASL Distribution Services Ltd. N • • • • • • • • • • • • • • • • • Axsun Logistics Inc. G • • • • • • • • • • • • • • • BCG Logistics Inc. N • • • • • • • • • • • • • • • Bellville Rodair International G • • • • • • • • • • • • • • • • • • Bison Transport Inc. N • • • • • • • • • • • • • • • • • • • Bolloré G • • • • • • • • • • • • • • • • • • • • • • BTC Logistics G • • • • • • • • • • • • C.H. Robinson Worldwide, Inc. G • • • • • • • • • • • • • • • • • • • • • C.V. Logistics N • • • • • • • • • C.W. Henderson Transportation • • • • • • • Canada Cartage System N • • • • • • • • • • • • • • • • • • • • • • • • • Canadian Pacific Logistics Solutions N • • • • • • •

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MM&D | January/February 2010

Company Capabilities

Capability Guide and Directory In order to fully capitalize on this opportunity, you need to make sure you’re trusting your business to the right 3PL(s).

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.

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/ Export/C ustoms Insuranc e Marketi ng/Cust omer Se Paymen rvice t Audit/ Processin 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 Wareho ent Syst use Man e ms ag e m e n Web-Ba t System sed Ship s ment Tra cking

Logistics

To use this guide, browse through the 3PLs listed alphabetically 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 25.

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 emily.atkins@mmd.rogers.com.

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MM&D | January/February 2010

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3PL Capability Guide

C: Canada N: North America G: Global

SPONSORED BY:

Company Name

Overview

Markets Served

Transportation

Customs

Areas Se rved A sset-Ba sed ISO Cert ified Distribu tors Manufa cturing Retail Service Industri es Air Bulk Dedicate d Contr act Carr Drivers iage Expedite d Fleet Ma na g e m e nt Hazardo us Mate rials High-Va lue Intermo dal Leasing LTL Ocean Rail Seaway Small Pa ck ag e TL ACE ACI C-TPAT CSA FAST Licensed Custom s Brokers PIP

Overview Legend

Caterpillar Logistics Services, Inc. G • • • • • • • • • • • • • • • • • • Cavalier Transportation Services Inc. N • • • • • • • • • • • • • • • Celadon Canada N • • • • • • • • • • • • • CEVA Logistics G • • • • • • • • • • • • • • • • • Challenger Logistics G • • • • • • • • • • • • • • • • • • • • • • • • G • • • • • • • • • • • ChemLogix LLC Churchill Logistics Inc. N • • • • • • • • • • • • CN N • • • • • • • • • • • • • • • C • Confederation Freezers Customized Global Logistics G • • • • • • • • • • • • • • • Damco G • • • • • • • • • • • • • • • Dart Logistics N • • • • • • • • • Day & Ross Inc. N • • • • • • • • • • • • • • G • • • • • • • • • • • • • • • • • • • DHL Global Forwarding Dominion Warehousing & Distribution Services Ltd. N • • • • • • • • • • • • • • • • DTA Services Ltd. G • • • • • • • • • EGI Transportation Services N • • • • • • • • • • Exel N • • • • • • • • • • • • • • • • • • • • • • G • • • • • • • • • • • • • Fargo Transportation Services Limited FedEx Trade Networks Transport & Brokerage G • • • • • • • • • • • • • • • • First Choice Logistics - Div. Thompson Ahern & Co. N • • • • • • • First Team Transport C • • • • • • • • • Fraser Direct Logistics Ltd. G • • • • • • • • • • • G • • • • • • • • • • • • • • Freightmate Inc. Georgetown Terminal Warehouses C • • • • • • • • • • • • • • • • Groupe Boutin - Transnat Express Inc. Hub Group Canada N • • • • • • • • • • • • • • • • • Huron Services Group, CPC Logistics Company N • • • • • • • • Hyphen, member Calyx Transportation Group Inc. N • • • • • • • • • • • • • • • • • • • • • • • • I to I Logistics G • • • • • • • • • Indis Inc. N • • • • ISG Transportation Inc. G • • • • • • • • • • • • • • • • • IT Logistics Inc. G • • • • • • • • • • • • • • • • • • • J.D. Smith and Sons Limited N • • • • • • • • • • • • • • • J.P. Enterprises - Logistics Corp.

N • • • • • • • • • • Katoen Natie Canada G • • • • • • Kelron Logistics N • • • • • • • • • • • • • • • • • Kenco Logistic Services N • • • • • • • • • Kintetsu World Express Canada G • • • • • • • • • • • • • • • • • • Koch Transport Limited N • • • • • • • • • • • • • • • Kuehne+Nagel Ltd. G • • • • • • • • • • • • • • • • • • • • • • Lakeside Logistics N • • • • • • • • • • Livingston International Inc. G • • • • • • • • • • • • • • • • • • • • • Logisticworks N • • Lynden International Logistics Co. C • • • • • • • • • • Maisliner Transport G • • • • • • • • • • • • • • • • • Manitoulin Transport G • • • • • • • • • • • • • • • • • • • • • • • • • • McKenna Logistics Centres G • • • • • • • • • • • McKesson Logistics Solutions N • • • • • • • • • • • • • Megaliner Menlo Worldwide Logistics G • • • • • • • • • • • • • Metro Canada Logistics C • • • • • • • •

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MM&D | January/February 2010

Company Capabilities 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/ Export/C ustoms Insuranc e Marketi ng/Cust omer Se Paymen rvice t Audit/ Processin 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 Wareho ent Syst use Man e ms ag e m e n Web-Ba t System sed Ship s ment Tra cking

Logistics

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

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MM&D | January/February 2010

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3PL Capability Guide

C: Canada N: North America G: Global

SPONSORED BY:

Company Name

Overview

Markets Served

Transportation

Customs

Areas Se rved A sset-Ba sed ISO Cert ified Distribu tors Manufa cturing Retail Service Industri es Air Bulk Dedicate d Contr act Carr Drivers iage Expedite d Fleet Ma na g e m e nt Hazardo us Mate rials High-Va lue Intermo dal Leasing LTL Ocean Rail Seaway Small Pa ck ag e TL ACE ACI C-TPAT CSA FAST Licensed Custom s Brokers PIP

Overview Legend

Metro Retail Supply Chain Solutions G • • • • • • • • • Meyers Transport/MorTrans Inc./Mosaic Logistics N • • • • • • • • • • • • • • • • • Midland Transport N • • • • • • • • • • • • • • • • • • • • Milgram & Company Ltd. G • • • • MSM Transportation Group G • • • • • • • • • • • • • • • • • • C • • • • • • • MTE Logistix Group of Companies Muirs N • • • • • • • • • NAL Worldwide N • • • • • • • • • • • • • • G • • • • • • • • • • • • • • • • • NYK Logistics Optvia Logistics Inc. G • • • • • • • • • • • • Panalpina G • • • • • • • • • • • • • • • • • • • • • • • • • Penske Logistics G • • • • • • • • • • PFSweb Canada C • • • • • • • • • • • N • • • • • • • • • • • • Polaris Global Logistics Inc. Positive Fulfillment Services Ltd. G • • • • Professional Distribution Services N • • • • • • • • • • • • • ProMiles Canada Inc. N • • Quik X Logistics G • • • • • • • • • • • • • • • • • • • • • • • • N • • • • • • • • Remco Forwarding Ltd. ReTrans Canada G • • • • • • • • • • • • • • • • • • • • Ryder Canada G • • • • • • • • • • • • • • • • • • • • • • • • • • Saddle Creek Corporation N • • • • • • • • • • • Sameday Worldwide G • • • • • • • • • • • • • G • • • • • • • • • • • • • • • • • • • • • • • • • Schenker of Canada Ltd. Schneider National Carriers Inc. G • • • • • • • • • • • • • • • • • • • • • • • SCI Group Inc. N • • • • • • • • • • • • Service Freight Systems & Warehousing N • • • • • • • • • • • • • • • SGT 2000 Inc. N • • • • • • • • • • C • • • • • • • • • Sherway Group SLH Transport Inc. N • • • • • • • • • • • • • • • • • • • • STI N • • • • • • • • • • • • • • • • Stonegate Logistics N • • • • • • • • • • • Sylvan Distribution Sylvite Transportation Group N • • • • • • • • • • • • • • • • • Tandet Dedicated Logistics N • • • • • • • • • • • • • • • • • • • • • • Thomson Terminals Limited N • • • • • • • • • • • • • • • • • • Total Logistics Control N • • • • • • • • • • • • • • • • Trailcon Leasing Inc. N • • • • • • • Trans-Plus Logistics Inc. N • • • • • • • • TransX Group of Companies N • • • • • • • • • • • • • • • • • • • • • • • Trigistix Warehousing and Distribution N • • • • • • • • • • • • • • • • Tri-Line Carrier LP N • • • • • • • • • • TST Overland Express N • • • • • • • • • • • • • • • UPS Supply Chain Solutions G • • • • • • • • • • • • • • • • • • • • • • UTI-Unigistix G • • • • • • • • • • • • • • • • Versacold Logistics Services G • • • • • • Vitran Supply Chain N • • • • • • • • • • • • • • Western Canada Express / Apex Motor Express C • • • • • • • • • Wheels Clipper G • • • • • • • • • • • • • • • • • • • • • • XCD Logistics Solutions Ltd. N • • • • XTL Logistics Inc. N • • • • • • • • • • • • • • • • • • • • YRC Reimer G • • • • • • • • • • • • • • • • •

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MM&D | January/February 2010

Company Capabilities 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/ Export/C ustoms Insuranc e Marketi ng/Cust omer Se Paymen rvice t Audit/ Processin 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 Wareho ent Syst use Man e ms ag e m e n Web-Ba t System sed Ship s ment Tra cking

Logistics

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10:00 A.M. Our warehouse just caught fire and we need to unload 2,000 skids of freight I need to rent 80 trailers NOW

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3PL Capability Guide – Company Listings 3PL Links Inc. North York, ON 416-742-3362 wgrossi@3pllinks.com www.3pllinks.com

Bison Transport Inc. Winnipeg, MB 204-833-0131 marketing@bisontransport.com www.bisontransport.com

3PLogix Vancouver, BC 604-315-7186 dmalinowski@sylvandc3.com

BollorĂŠ Mississauga, ON 905-677-9022, x227

80/20 Logistics Burlington, ON 905-875-8020 rjackson@8020logistics.com www.8020logistics.com A A.G.O. Transportation Inc. Montreal, QC 514-631-6663 ago@agotrans.com www.actionago.com A.N. Deringer Inc. St. Albans, VT 802-524-8110 marketing@anderinger.com www.anderinger.com Affiliated Customs Brokers Ltd. Montreal, QC 514-288-1211 affiliated@affiliated.ca www.affiliated.ca Agility Mississauga, ON 905-612-7561 canada@agilitylogistics.com www.agilitylogistics.com All-Can Distribution Centres Inc. Belleville, ON 613-966-0796 kellyn@allcandcs.com www.allcan3PL.com All-Connect Logistical Services Inc. Oakville, ON 905-847-6555 peter_whiteman@allconnect.ca Alliance Shippers Inc. Mississauga, ON 905-568-2006 kwinters@alliance.com www.alliance.com APL Logistics Etobicoke, ON 866-896-2005 inquiries@apllogistics.com www.apllogistics.com APPS Transport Group Brampton, ON 905-861-2773 lnorman@appsexpress.com www.appsexpress.com ASL Distribution Services Ltd. Oakville, ON 905-829-5141 khammel@asldistribution.com www.asldistribution.com Axsun Logistics Inc. St. Hubert, QC 450-445-3003 sramescu@axsungroup.com www.axsungroup.com B BCG Logistics Inc. Mississauga, ON 905-238-3444 tmedeiros@bcglogistics.com www.bcglogistics.com Bellville Rodair International Mississauga, ON 905-671-4655 jeff.cullen@bellevillerodair.com www.bellvillerodair.com

BTC Logistics Arva, ON 888-241-9494 www.btclogistics.com C C.H. Robinson Worldwide, Inc. Eden Prarie, MN 647-688-6767 shane.cretney@chrobinson.com www.chrobinson.com C.V. Logistics Rosemere, QC 450-965-8251 derekvincent@cvlog.com www.cvlog.com C.W. Henderson Transportation Etobicoke, ON 416-674-5826 dhardy@cwhenderson.ca www.cwhenderson.ca Canada Cartage System Mississauga, ON 905-564-2115 skolbuc@canadacartage.com www.canadacartage.com Canadian Pacific Logistics Solutions Calgary, AB 403-319-7487 David.Walker@cpr.ca www.cpr.ca Caterpillar Logistics Services, Inc. Morton, IL www.catlogistics.com Cavalier Transportation Services Inc. Bolton, ON 905-857-6981 rnorth@cavalier.ca www.cavalier.ca Celadon Canada Kitchener, ON 800-265-6467 ckemp@celadoncanada.com www.celadontrucking.com CEVA Logistics Jacksonville, FL 904-928-1400 julie.palus@cevalogistics.com www.cevalogistics.com Challenger Logistics Cambridge, ON 519-653-6226 jamesg@challenger.com www.challenger.com ChemLogix LLC Blue Bell, PA 215-461-3828 www.chemlogix.com Churchill Logistics Inc. London, ON 519-649-0008 cchurchill@churchill-logistics.com www.churchill-logistics.com CN Concord, ON 905-760-5061 bingeman@cn.ca www.cn.ca Confederation Freezers Brampton, ON 905-791-1564 www.confederationfreezers.com

MM&D | January/February 2010

Customized Global Logistics Burlington, ON 905-319-3449 gtaylor@cglogistics.com www.cglogistics.com D Damco Madison, NJ 973-514-5126 mark.byrne@damco.com www.damco.com Dart Logistics Toronto, ON www.dartlog.com Day & Ross Inc. Hartland, NB 866-DAY-ROSS bdmorin@dayandrossinc.ca www.dayross.ca DHL Global Forwarding Mississauga, ON 905-405-9300 hugh.mcmaster@dhl.com www.dhl-dgf.com Dominion Warehousing & Distribution Services Ltd. Toronto, ON 416-744-2438 dineen@godominion.com www.godominion.com DTA Services Ltd. Toronto, ON 416-487-3311 mgracey@dta.ca www.dta.ca E

G Georgetown Terminal Warehouses Georgetown, ON 905-702-7084 hvisser@gtwcanada.com www.gtwcanada.com Groupe Boutin - Transnat Express Inc. Boucherville, QC 450-449-7373 www.boutinexpress.com H Hub Group Canada Oakville, ON 905-820-2070 boneill@hubgroup.com www.hubgroup.com Huron Services Group, CPC Logistics Company Oakville, ON 905-845-4075 j.thomson@callcpccanada.com www.hurongroup.ca Hyphen, member of the Calyx Transportation Group Inc. Vaughan, ON 877-549-7436 x6024 shannonk@hyphenateit.com www.hyphenateit.com I I to I Logistics Delta, BC 604-777-1470 info@i2ilog.com www.itoilogistics.com

EGI Transportation Services London, ON 519-686-6290 isk1@sympatico.ca

Indis Inc. Mississauga, ON 905-501-7732 sales@indis.com www.indis.com

Exel Westerville, OH 800-272-1052 sarah.jackson@exel.com www.exel.com F

ISG Transportation Inc. Brampton, ON 905-799-1300 spencer@isgtransport.com www.isgtransport.com

Fargo Transportation Services Limited Georgetown, ON 905-873-1199 jim@fargotransportation.com www.fargotransportation.com FedEx Trade Networks Transport & Brokerage (Canada) Inc. Mississauga, ON 800-388-9479 ftn.fedex.com First Choice Logistics Division of Thompson Ahern & Co. Ltd. Mississauga, ON 905-677-3471 mjohnston@taco.ca www.taco.ca First Team Transport Mississauga, ON 905-897-6242 seamanj@firstteamtransport.com www.firstteamtransport.com Fraser Direct Logistics Ltd. Georgetown, ON 905-877-4411 customsbrokers@fraserdirect.ca www.fraserdirect.ca Freightmate Inc. North York, ON 416-633-4331 www.freightmateinc.com

IT Logistics Inc. Laval, QC 514-339-1177 ydgagnon@itlogistics.com www.itlogistics.com J J.D. Smith and Sons Limited Vaughan, ON 905-669-8980 khunter@jdsmith.com www.jdsmith.com

Kintetsu World Express Canada Mississauga, ON 905-677-8830 info@kwe.ca www.kwe.ca Koch Transport Limited Cambridge, ON 519-653-8530 jschneider@kochtransport.com www.kochtransport.com Kuehne+Nagel Ltd. Mississauga, ON 905-502 7776 suzanne.broadbent@kuehne-nagel. com www.kuehne-nagel.com L Lakeside Logistics Oakville, ON 800-387-7108 michael@lakesidelogistics.com www.lakesidelogistics.com Livingston International Inc. Toronto, ON 416-626-2800 www.livingstonintl.com Logisticworks Brampton, ON 905-792-6140 agallant@m-o.com www.m-o.com Lynden International Logistics Co. Vaughan, ON 905-879-0114 jwaller@lynden.com www.lilco.lynden.com M Maisliner Transport LaSalle, QC 514-366-0336 sales@maisliner.com www.maisliner.com Manitoulin Transport Mississauga, ON 905-670-8990 svalenzuela@manitoulintransport. com www.manitoulintransport.com McKenna Logistics Centres Mississauga, ON 905-274-1234 sales@mckennalogistics.ca www.mckennalogistics.ca McKesson Logistics Solutions (Name to change March 1) Oakville, ON 905-829-9927 marketing@logistics.ca www.logistics.ca

J.P. Enterprises - Logistics Corp.

Mississauga, ON 905-949-0046 jponeill@jpent.com www.jpent.com K

Megaliner Brampton, ON bclahane@titangroup.ca www.titangroup.ca

Katoen Natie Canada St. Bruno, QC 450-653-0445 canada@katoennatie.com www.katoennatie.com

Menlo Worldwide Logistics San Mateo, CA 866-466-3656 info@menloworldwide.com www.menloworldwide.com

Kelron Logistics Mississauga, ON 800-668-3785 kmatthews@kelron.com www.kelron.com

Metro Canada Logistics Concord, ON 905-738-5577 info@metrocanlogistics.com www.metrocanlogistics.com

Kenco Logistic Services Chattanooga, TN 423-424-4122 info@kencogroup.com www.kencogroup.com

Metro Retail Supply Chain Solutions Etobicoke, ON 416-203-3339 agirvin@metroretailscs.com

25

SPONSORED BY:

3PL Capability Guide – Company Listings Meyers Transport/MorTrans Inc./Mosaic Logistics Peterborough, ON 888-291-4442 sdearman@meyers.ca www.mosaiclogistics.com Midland Transport Dieppe, NB 506-858-5555 Milgram & Company Ltd. Montreal, QC 514-288-2161 sales@milgram.com www.milgram.com MSM Transportation Group Bolton, ON 800-667-4175 mmccarron@shipmsm.com www.shipmsm.com MTE Logistix Group of Companies Edmonton, AB 780-944-9009 mteinfo@mtelogistix.com www.mtelogistix.com Muir’s Cartage Limited Concord, ON 905-761-8251 deanj@calyxinc.com www.gomuirs.com N NAL Worldwide Addison, IL 800-316-6860 info@nalworldwide.com www.nalworldwide.com NYK Logistics Mississauga, ON 905-502-8892 warren.evans@nyklogistics.com www.nyklogistics.com O Optvia Logistics Inc. Guelph, ON 519-823-7860 scott@optvialogistics.com www.optvialogistics.com P Panalpina Mississauga, ON 905-755-4500 uwe.wicke@panalpina.com www.panalpina.com

Penske Logistics Reading, PA 800-529-6531 logistics@penske.com www.penskelogistics.com PFSweb Canada Markham, ON 888-600-6661 pfsinfo@pfsweb.com www.pfsweb.com Polaris Global Logistics Inc. Mississauga, ON 905-671-3100 larry@polaristransport.com www.polaristransport.com Positive Fulfillment Services Ltd. Toronto, ON 416-213-0299 info@positivecan.com www.positivecan.com Professional Distribution Services Mississauga, ON 905-502-1098 pdonalds@professionaldist.com www.professionaldist.com ProMiles Canada Inc. Bowmanville, ON 888-736-4537 info@promilescanada.com www.promilescanada.com Q

S Saddle Creek Corporation Lakeland, FL 863-666-0966 info@saddlecrk.com www.saddlecrk.com Sameday Worldwide Mississauga, ON 905-676-3750 roger.morton@sameday.ca www.sameday.ca Schenker of Canada Ltd. Mississauga, ON 905-676-0676 fabiana.varela@schenker.ca www.dbschenker.com/ca Schneider National Carriers Inc. Guelph, ON 519-826-7060 caccaros@schneider.com www.schneider.com

Stonegate Logistics Mississauga, ON 905-671-9072 wayne@stonegatelogistics.com www.stonegatelogistics.com

Tri-Line Carrier LP Rocky View, AB 403-279-7070 triline@triline.ca www.contrans.ca

Sylvan Distribution Richmond, BC 604-207-8929 dmalinowski@sylvandc3.com

TST Overland Express Mississauga, ON 905-625-7500 www.tstoverland.com U-Z

Sylvite Transportation Group Abbotsford, BC 604-854-6633 acarbone@sylvite.ca www.sylvite.ca T Tandet Dedicated Logistics Oakville, ON 905-603-6291 stilley@tandet.com www.tandet.com

SCI Group Inc. Toronto, ON 416-401-3011 business.development@scigroup. com www.scigroup.com

Thomson Terminals Limited (Thomson Group of Companies) Toronto, ON 416-240-0897 sales@thomsongroup.com www.thomsongroup.com

Service Freight Systems & Warehousing Burlington, ON 905-319-6565 randys@servicefreight.com www.servicefreight.com

Total Logistics Control Vaudreuil-Dorion, QC 450-424-1700 jzeppetelli@totallogistics.com www.totallogistics.com

Quik X Logistics Mississauga, ON 800-554-2264 award@quikx.com www.quikx.com R

SGT 2000 Inc. St-Germain, QC 800-363-4216 info@sgt.qc.ca www.sgt2000.com

Remco Forwarding Ltd. Brampton, ON 905-455-1500 rcohen@remco.ca www.remcogroup.com

Sherway Group Mississauga, ON 905-362-9070 sales@sherwaygroup.com www.sherwaygroup.com

ReTrans Canada Mississauga, ON 905-678-9522 lthompson@re-trans.com www.re-transcanada.com

SLH Transport Inc. Kingston, ON 888-854-7548 micampb@slh.ca www.slh.ca

Ryder Canada Mississauga, ON 905-812-2396 Catherine_Luzena@ryder.com www.ryder.com

STI Fort Wayne, IN 800-234-2788 marketing@stidelivers.com www.stidelivers.com

UPS Supply Chain Solutions Burlington, ON 905-315-5500 marketingca@ups.com www.ups-scs.ca UTI-Unigistix Brampton, ON 905-789-6211 clepore@go2uti.com www.go2uti.com Versacold Logistics Services Vancouver, BC 604-255-4656 info@versacold.com www.versacold.com Vitran Supply Chain Concord, ON 416-798-4940 sales@vitranlogistics.com www.vitran.com Western Canada Express / Apex Motor Express Concord, ON 905-738-2106 bpoe@apexltl.com www.westerncanadaexpress.com

Trailcon Leasing Inc. Mississauga, ON 905-670-9061 aboughton@trailcon.com www.trailcon.com

Wheels Clipper Mississauga, ON 905-602-2700 info@wheelsgroup.com www.wheelsgroup.com

Trans-Plus Logistics Inc. Mississauga, ON 905-362-0821 sam@trans-plus.com www.trans-plus.com TransX Group of Companies Winnipeg, MB 204-632-6694 michael.banville@transx.com www.transx.com Trigistix Warehousing and Distribution Mississauga, ON 905-696-7020 eswift@trigistix.com www.trigistix.com

XCD Logistics Solutions Ltd. Thornhill, ON 647-669-1257 skopyto@xcdlogistics.com www.xcdlogistics.com XTL Logistics Inc. Mississauga, ON 416-742-3883 craig.germain@xtl.com www.xtl.com YRC Reimer Mississauga, ON 905-670-9366 frank.washburn@yrcw.com www.yrc.com

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MM&D | January/February 2010

27

85th ANNUAL

PMAC NATIONAL CONFERENCE JUNE 9-11, 2010 REGINA Be enlightened and inspired by these four acclaimed keynote speakers:

Join us at Canada’s premier event for supply chain management professionals Harness the Winds of Change as we gather in Mighty Saskatchewan, the booming heart of the Canadian west!

Discuss emerging trends and issues as our economy begins to recover Network at Canada’s largest conference for supply chain professionals Stay current on best practices you can adapt for competitive advantage

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1. Jim Bottomley, Futurist The Age of Innovation: Improving the Organization 2. Jim Hopson, President & CEO, Saskatchewan Roughriders Creating Excellence: How the Roughriders Became the Powerhouse of the CFL 3. Heath Slawner, Expert on the Science of Influence & Persuasion The Power of Persuasion 4. Darci Lang, Entrepreneur, Speaker and Trainer Motivating Others: Be the Leader They Want to Remember

Gain valuable knowledge from 24 education sessions that include: • Cost reduction management • Sustainable purchasing • Pandemic preparedness • Consulting service agreements • Supplier diversity • Lean supply chain management • Supplier development

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Get ahead by starting with an intensive pre-conference seminar: Negotiation Master Class or Procurement Law Update.

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Materials Handling | Dave Luton

Keeping up with change

Get your warehouse in line with your business

T

he start of a new decade is a good time to reset the clock and revisit long-term plans.

When it comes to warehouse management, this means reviewing your operations to make sure the form and function of your facility are properly matched to business needs and that your operations are running smoothly.

At this point, you’re probably thinking “but that’s what I do every day!”

That’s true, in a sense. But the problem with day-to-day management is that if you’re not paying close attention your efforts can slowly drift out of synch with the overall efficiency of the facility.

This happens because the purpose of the distribution centre is always evolving. Periodically, you need to conduct a review at the macro level.

What is the best way to keep the broader view?

Let’s go back to Warehousing 101. At the most basic level, a warehouse exists to provide storage and facilitate handling activities.

To optimize the performance of a distribution facility, you have to strike a balance between good storage layout (form) and sound handling activities (function)—and that balance must be flexible enough to meet the changing demands of the business.

Keeping up with changes Supply chains evolve, and warehouses must evolve with them. But when change happens over long periods of time, it can be very difficult to plan around. If you’re not taking stock of its effects you may find yourself missing the mark when it comes to costs and services.

An example: many supply chains have lengthened in the past decade. Companies that once operated only in Canada now commonly source or distribute overseas. This can mean dramatic fluctuations in activity. Thanks to strict ocean and air schedules, an intense period of shipping or receiving is often followed by a quiet period.

Some companies have been coping with wide volume swings by using a common dock face for both shipping and receiving, which creates much more flexibility when activity surges.

MM&D | January/February 2010

Others have mandated that forklifts must travel loaded both ways—from the receiving docks to storage, and then from storage to shipping docks—to eliminate wasted trips. This capability can be enhanced by a good WMS coupled with a radio frequency system.

Others still reset rack beams to accommodate more palletloads.

These are all good, inexpensive ways of adjusting warehouse operations to better meet business demands.

Eye on the KPIs Many capacity-related issues for both storage and handling first manifest themselves in either increased costs or operational performance issues.

Because of this, warehouse managers should always be monitoring whether a capacity ceiling has been breached.

For example, you don’t want to find yourself running out of space. This happens to warehouse managers surprisingly often, and is caused by a range of factors—there might be an influx of partial pallets, say, or new lot control standards. Such changes can creep up gradually, and drastically affect the performance of the warehouse.

How can you ensure your warehouse operations are in line with the trajectory of the business? Robust key performance indicators can serve as effective early warnings. Using such benchmarks, areas of substandard performance can be identified and their causes investigated. If performance in a key sector—picks per hour, for example—starts to drift away from established norms, it will become apparent that something is wrong.

Hopefully, you’ll spot the problem in time to take corrective action before things veer too far out of control.

Sometimes deteriorating budget performance can also warn you that your operations are out of step, particularly if it’s caused by excessive overtime or added labour costs.

Of course, properly documenting the financial and operational performance of your warehouse has other benefits as well. Solid numbers can help you justify the investment needed to take corrective actions. But numbers alone won’t get you ahead. I’ve been in plenty of warehouses over the years with reams of statistics that served no practical purpose.

Sometimes the old-fashioned methods work well in cases like this.

Managing by walking around worked well for generations of warehouse managers in the past. It’s still a good way to keep on top of things. Note the day-to-day details, but also keep your eyes open for broader signs. Is the facility becoming too crowded? Does your staff have enough to do? Is your equipment doing all it should be?

Your warehouse exists to serve a business, and as time goes on business can change. It’s worth stepping back every once in a while to make sure your operations are keeping in step. mm&d Dave Luton (dluton@cogeco.ca) is a consultant in the greater Toronto area.

29

Firefighter | Silvia Castellarin and Ana Gallo

No data. Now what?

When the network is cut, prior planning pays off

W

hat happens when a company is literally cut off from its network connections, driving business in the warehouse to a halt? What mechanisms does it have in place to respond to the immediate crisis while addressing the problems that caused it?

This exact scenario happened to us at Johnson & Johnson Medical Products (JJMP) and the story below outlines our response to the crisis.

At 3:25pm one Friday afternoon in September 2009, the network connection was suddenly lost at the JJMP facility in Markham, Ontario.

Immediately, all online systems activity was suspended, including all orderprocessing activity from data entry to shipping.

Since the product lines sold are medical and pharmaceutical in nature, the impact on customers—many of which are hospitals and private clinics— could be severe. The internal teams had to work quickly through three steps: communicating the issue, establishing a contingency mode and recovering from the disconnect.

By the end of business on Friday, BCP leaders developed another strategy. Since it was uncertain whether the connection would be re-established before start of business on Monday, we agreed that the CRT would continue to provide hourly status updates to the core BCP team.

We started to consider plans for additional offsite support if the problem was not resolved by Monday. Additional plans were created for weekend support staff, allowing them to address open orders and complete systems transactions for manual activity once system access returned.

We established deadlines for when additional contingency plans would be put in place. Key contacts agreed to remain on standby throughout the weekend. The network infrastructure provider Continuity planning in action continued to work to repair the cut fibre cable.

Right after the outage, key teams and leaders took action, immediately Thankfully, those plans were not needed. The proving the benefits of business continuity planning (BCP) and training. cable was repaired on Saturday. By 8:30am on The situation was confirmed as a systems outage and escalated to the Sunday, systems connection had been fully reCritical Response Team (CRT), which is part of the company’s global established, tested and confirmed operational. information technology infrastructure. By 4:03pm, the CRT had engaged Once the green light was given, the weekend our network service provider and issued the first of several hourly internal warehouse team went into full swing, processing communications. By 6:20pm the root cause had been established as a cut orders to catch up on Friday’s business. By fibre cable isolated to the Markham area.

12:00pm Sunday, they were caught up on all the The CRT contacted the network infrastructure provider, which outstanding work. The crisis was officially over. immediately placed top priority on repairing the cable. A repair team was JJMP was able to manage through the crisis on-site before 7:30pm. Senior managers for both the network service and because of three main factors. infrastructure providers worked closely with the CRT to assure there was First, we had a good BCP and trained staff. no delay in correcting the problem.

Second, the CRT quickly engaged the right people In the meantime, the operations department leads zeroed in on business and teams. Third, the outside business partners resumption. Recognizing that customer orders needed to be processed, involved responded swiftly. leaders from the customer care, information technology and distribution Ultimately, overcoming the crisis depended teams quickly assembled. After establishing that employees were not at risk, on the commitment, determination and the leaders moved forward with a round of triage on the situation. knowledge of the people involved. It was the From training, the assembled team knew the importance of having a smooth integration of all these critical elements point person to co-ordinate activity and communications during such a that kept the business running without any frenzied time, so it quickly appointed a team leader. Next, the team did a serious interruption. mm&d risk assessment to determine where orders were in the processing cycle and how they would be managed, to prioritize new and in-process orders based Silvia Castellarin is manager, logistics and Ana on product criticality and to learn the effects of the outage on customers. Gallo is business relationship manager, IT at Using controlled manual processes, the team managed the priority orders Johnson & Johnson Medical Products. set to ship that evening.

Our contingency plans with off-site staff members also came into effect. Firefighter is a forum for practitioners to explain Off-site personnel were able to access the ERP system remotely. They how they helped solve an unexpected supply supported the order-picking function by looking up inventory availability chain crisis. To share a story, contact Deborah and storage locations and communicating the information to us.

Aarts at deborah.aarts@mmd.rogers.com.

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MM&D | January/February 2010

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