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Coming trends among 3PLs

Plus: The 2011 3PL Capability Guide ProMat 2011 sneak peek Accommodating older workers

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Taking Stock

At least one cheer for optimism T

he new year is a great time to re-evaluate. We seem programmed to assess the year that’s just past as we chart a course for the coming 12 months.

Take a look at our roundtable discussion (done via email) on page 12. We assembled a panel of experts who discussed the 3PL industry and looked at what lies ahead in the world of third-party logistics providers.

Taking stock was also on the mind of those at research company eyefortransport, which conducted a survey related to 3PLs last fall. Among survey respondents, 68 percent were 3PLs, 24 percent were shippers, while most others provided other transportation services.

Respondents were asked how they’ve experienced the economic slowdown over the past year.

In 2009, the majority of respondents—71 percent—

said they had been affected, while last year the majority—62 percent— reported they’ve been affected but their situations were improving.

In 2010, a notable number of survey respondents (43 percent) said they expected their growth to be “as strong as previously predicted,” while 50 percent expected slower growth. That’s an interesting contrast to 2009, when just over 10 percent expected the same kind of growth.

With more respondents saying their situations were improving, there seems to be a change in perception regarding economic conditions. Our roundtable panelists also thought the economy would improve in 2011. And a shift in perception can be a powerful thing.

A change in the economic mood towards optimism encourages companies to take risks, look towards previously unconsidered regions, or invest in talent and technology. Swings in the economic pendulum are just that, and conditions are bound to change. Upturns and downturns are always cyclical.

It is a good idea to keep that in mind, regardless of where the pendulum might be headed.

January/February 2011 | Volume 56 | Number 1

Features

Contents

12 The state of the industry Our virtual roundtable looks at current trends among third-party logistics providers.

18 The 2011 3PL Capability Guide If you’re looking to outsource, we’ve got the resource. Our Canadian third-party logistics (3PL) providers capability guide shows which companies match your needs.

31 Sneak peek at ProMat 2011 An advance look at some of the products you’ll see on the show floor at ProMat 2011 in Chicago.

MM&D | January/February 2011

Columns 34 Learning Curve Working with 3PLs. 36 Legal links Resolutions for third-party logistics providers.

38 Materials Handling Accommodating an older workforce.

Departments 3 5 6 7 9 11

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

3

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Talkin’ gateways Conference focuses on Canada’s trading gateways, page 6

Supply Chain Scan

Inside | Buckhorn’s 30, p. 10 www.mmdonline.com Publisher/Editor-in-Chief: Emily Atkins (416) 764-1537 emily.atkins@rci.rogers.com EDITOR: Michael Power (416) 764-1538 michael.power@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 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 PRODUCTION MANAGER: Kristen Hrdlicka (416) 764-1692 kristen.hrdlicka@rci.rogers.com CIRCULATION MANAGER: Celia Ramnarine (416) 932-5071 rogers@cstonecanada.com Rogers Publishing Limited President and Chief Executive Officer: Brian Segal Rogers Business & Professional Publishing Senior Vice-President: John Milne Vice-President, Financial Publishing, Brand Extensions & Online Services: Paul Williams Director of Audience Development: Keith Fulford (416) 764-3878 keith.fulford@rci.rogers.com Executive Publisher, Industrial Group: Tim Dimopoulos (416) 764-1499 Group Editorial Director: Lisa Wichmann (416) 764-1491 lisa.wichmann@rci.rogers.com Corporate Sales General Manager, Corporate Sales: Sandra Parente, (416) 764-3818 Web General Manager, Online Operations: David Carmichael, (416) 764-3820 research Senior Director, Rogers Connect Market Research: Tricia Benn (416) 764-3856 tricia.benn@rci.rogers.com events General Manager, Conferences & Events: Stephen T. Dempsey (416) 764-1635 steve.dempsey@mtg.rogers.com How to reach us: Materials Management & Distribution, established in 1956, is published 6 times a year by Rogers Media Inc. Rogers Publishing Ltd., One Mount Pleasant Road, Toronto, ON, M4Y 2Y5.

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2010 port report

By Deanna Rosolen

C

onfirmed and preliminary results show Canada’s major seaports weathered the storm that was 2009.

Yes, 2009 was a tough year. And it showed in that year’s port statistics.

But Canada’s ocean ports are showing signs of having weathered one of the worst financial crises in decades.

The 2010 results prove it.

The Port of Prince Rupert, for instance, recorded its strongest cargo volumes ever in 2010. Even in 2009, the port wasn’t affected by the downturn, reporting a 12-year high in cargo volumes that year. But in 2010 the port handled a record 16,424,512 tonnes of cargo—that’s up 35 percent over 2009 volumes and the first time it has surpassed 13 million tonnes since 1997.

The port says strong growth in coal volumes through Ridley Terminals Inc and continued growth in container volumes at the Fairview Container Terminal drove the increased cargo volumes.

The Port Metro Vancouver also saw sunnier figures in 2010. The port said it achieved record-breaking volumes in key sectors and a total tonnage increase of 16 percent, delivering 118.4 million tonnes overall. Its 2010 yearend report also shows that container traffic set an all-time record at 2.5 million TEUs. That’s up 17 percent, as demand for imported consumer goods continued and container exports returned to Asia with forest products and special crops. The total foreign tonnage increased 18 percent to 93.3 million tonnes, with increased foreign exports to growing Asian economies continuing to lead the way.

The Port of Montreal says it handled 1,331,351 TEUs in 2010—that’s up 6.8 percent compared to 2009. As well, the port handled 8,151,136 tonnes of liquid bulk, 3,204,076 tonnes of dry bulk and 2,380,863 tonnes of grain.

The Port of Quebec also entered calmer waters. The port said it anticipates its total annual tonnage to rise by 10 percent over last year, from 22.1 million tonnes to 24.3 million tonnes. This represents the third-best results in the port’s history after the record years of 2007 and 2008. The port said the strong resurgence of shipments of certain types of dry bulk cargo, such as iron and its derivatives, metallurgical coke, grains and fertilizers, has largely contributed to this increase.

Over on the East Coast, the Port of Halifax said its containerized cargo grew 26 percent over 2009. The port’s total throughput was 435,461 TEUs, versus 344,811 TEUs in 2009. Every cargo category (containerized, breakbulk and roll-on/roll-off)—with the exception of bulk cargo—saw growth in 2010.

The port says continued sluggishness in bulk cargo throughput was due to the weak US economy, which showed less demand for oil and gypsum.

MM&D | January/February 2011

5

Supply Chain Scan

Landoll Goes “Back to the Basics” Fields on Wheels conference dishes on trading gateways

New Landoll LSC Stand Up Ride Compact Lift Truck Works Dock, Bulk Storage, Drive In/Thru Rack Inside and Outside

A look at Canada’s trading gateways was on the menu during the 15th annual Fields on Wheels conference in Winnipeg last December.

The annual agribusiness supply chain event—put on by the University of Manitoba Transport Institute and the Western Transportation Advisory Committee (WESTAC)—looked at developments regarding Canada’s gateways and what the future holds for those trading routes.

The first of four panel discussions reviewed Canada’s gateways and corridors, as well as the benefits and challenges producers and shippers face. The panel provided an overview of international agricultural markets and examined how shifting tastes, changes in global supply routes and conditions within Canada’s gateways and corridors impact supply chains.

The second panel focused on the growth of the Pacific corridors and how this growth has led to challenges such as bottlenecks. A third session considered changes in markets and traffic, and how these changes impact the eastern corridor, including Thunder Bay and the St Lawrence Seaway.

The conference’s final session looked at southern grain corridors. This session included an overview of the rail industry and a review of food safety, traceability, exchange rates and issues surrounding market access.

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KWE Canada is celebrating the 20-year anniversary of its Windsor Customs Brokerage office, which is located on the Canadian side of the Ambassador Bridge. Since it was established in 1990, the office has grown to a staff of 10 and has expanded its services to support clearances throughout Canada, in addition to the local border clearance. The office is also now offering Customs consulting.

Schneider Logistics Inc has named Mississauga, Ontario-based TST Overland Express its Carrier of the Year. Schneider presents the award to third-party logistics carriers that serve a variety of transportation modes and excel in operational performance, service, safety and ease of conducting business. Carriers recognized for 2010 represent the top one percent of service providers moving freight on behalf of Schneider Logistics’s customers.

6

MM&D | January/February 2011

Supply Chain Scan FESCO Transportation Group carries forestry excavators to Russia FESCO Transportation Group has begun transporting Deere Hitachi forestry excavators from the Port of Everett in Washington to John-Deere Construction and Forestry in Russia.

Deere-Hitachi Specialty Products, based in Langley, British Columbia, moves approximately 20 to 30 excavators a year to locations in Russia, including Bratsk, Khabarovsk and Irkutsk.

“Our machines are big and heavy, and not many shipping companies can handle them,” said Jason Jia, supply management and order fulfillment supervisor for John Deere Hitachi Forestry Division. “But FESCO Transportation Group has a lot of experience of transporting heavy machines and their service is very good between the West Coast and Russian Far East.”

About 80 percent of the company’s Russian machines now go this route, Jia said.

Movers + Shakers Toronto-based Constellation Research Inc has added Jeff Ashcroft to its team. Ashcroft brings two decades of logistics and supply chain experience with major retail and third-party logistics companies.

David Bacon is senior vice-president, finance and CFO at Canada Cartage System in Mississauga, Ontario. Bacon has more than 20 years of business experience with public and private companies in the areas of strategy, corporate finance, governance and financial management.

The Canadian Institute of Traffic and Transportation (CITT) has elected Warren Sarafinchan, CITT, its new chair of the board. He replaces outgoing chair Andrew Dixon, CITT. Sarafinchan is supply chain director for Mars Canada.

Andy Giancamilli, CEO of Katz Group Canada Ltd and Dave Lemmon, managing director, Canada of Smucker’s Foods of Canada Corp have both joined GS1 Canada’s board of governors.

Innovative Automated Solutions

New York-based Alstom Transport has named Guillaume Mehlman its new managing director for Alstom’s North American Region, which includes the US and Canada.

Mehlman will be based in New York City.

Guillaume Mehlman

Keith Swiednicki is KOM International Inc’s new COO. KOM is based in Montreal and offers supply chain consulting. Swiednicki is responsible for the company’s food consulting practice.

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David Boyd has joined Viascan of Montreal. Boyd has more than 20 years of work experience in the auto ID community.

MM&D | January/February 2011

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Supply Chain Scan Done Deals Grimsby, Ontario-based RMT Robotics is supplying a large-scale robotic case picking solution for a North American beer distributor. The system, which has a footprint of less than 40,000 sqf, is designed to pick 300 SKUs at a rate of more than 250,000 cases per day. The project is scheduled to start later this year. More specific details of the contract are confidential.

Dole Food Company has selected Descartes’s Global Filer to manage its import and export Customs filings for the upcoming European Union regulations on advanced entry (ICS) and exit (ECS) summary declarations.

Global Filer can help organizations around the world meet current and long-term compliance mandates.

ICECORP Logistics has acquired Livingston International Inc’s event logistics business, Livingston Event Logistics. The business provides services for trade shows and other events. Livingston says the transaction will not affect its Customs brokerage, international trade consulting, international freight forwarding, vehicle transportation or managed services businesses.

DB Schenker Logistics has launched a global on-demand WMS service, called 3S-WMS, based on Softeon Inc’s lite version of its SCE solution. DB Schenker and Softeon have a license agreement with a commitment to offer the service at many of Schenker’s sites worldwide.

Daifuku Co Ltd of Japan and Knapp AG of Austria have formed a partnership to market material handling systems. Daifuku has also acquired an equity stake in Knapp. Daifuku specializes in large- and mid-size unit load automated warehouse systems, while Knapp is a supplier of piecepicking systems for fashion and pharmaceutical wholesalers. The two companies have outlined a partnership in sales and procurement, and both expect further growth given their complementary products and customers.

Vitran Corporation Inc of Toronto has acquired Tennessee-based Milan Express’s LTL business, which operates 34 facilities in the US and in 2010 generated revenues of US$70 million. Vitran offers less-than-truckload and supply chain services.

Innovative Warehouse Solutions

CN, Squamish Terminals Ltd, Tembec Inc, Canfor Pulp Limited Partnership (CPLP), West Fraser Timber Co Ltd (WFT) and Daishowa-Marubeni International Ltd have reached an agreement in principle on measures that will result in improvements in the export of wood pulp from BC pulp mills to markets worldwide. Under the agreement, CN will provide seven-day-a-week service to Squamish Terminals, which in turn will guarantee to unload pulp cars daily.

Tembec, West Fraser CPLP and Daishowa-Marubeni will work with both CN and Squamish Terminals to manage inbound traffic flows to match export vessel schedules.

Squamish Terminals is located on Howe Sound, just 32 nautical miles north of Vancouver, and is open to all major break-bulk shipping lines.

Squamish Terminals is a subsidiary of Grieg Star Shipping AS.

MM&D | January/February 2011

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Supply Chain Scan

Buckhorn Canada celebrates 30 years Company started in small office with single phone

By Michael Power The last 30 years have gone by in a heartbeat, says Buckhorn Canada vicepresident and general manager Jim Morrison.

“I can’t believe we’ve been doing it so long,” says Morrison. “We have so many nice customers—they’ve become like friends.”

This year, the reusable package supplier celebrates its 30-year anniversary.

Buckhorn Canada designs and manufactures pallets, bulk boxes, totes, trays, and other products. The company serves fields such as automotive,

electronics, agriculture, hardware, food processing and pharmaceuticals.

Morrison says he’s spent 30 of his 38 years in the business at Buckhorn Canada Inc, since it began in 1981 in a small office with a single phone in Brampton, Ontario.

It’s Buckhorn’s role as a solutions provider—one that produces long lasting quality products—that has kept the company in business for so long, says Morrison.

“I’m hoping to spend many more years helping people,” Morrison says.

Hamilton airport expansion plans to lift cargo business

By Michael Power Hamilton’s international airport has applied for $38 million in funding for expansion projects the airport says will help grow its air cargo business.

The airport is looking for $25.3 million from Ottawa and the provincial government for three initial projects, said Richard Koroscil, CEO of John C Munro International Airport. Provided the funding gets approval, the project could begin this spring or summer and wrap up by 2013.

“A big chunk of this is aimed at our cargo business,” he said. “In fact, we’ve been growing our cargo business here over the last several years.

In the last two years we’ve actually grown while many other airports have shrunk, and we’ve brought new operators into the airport.”

The first phase of the proposed project includes a $6-million cargo apron and taxiway to allow larger aircraft parking and maneuvering. That part of the expansion is geared towards the airport’s cargo carriers, Koroscil said.

Also included are a $12-million multi-tenant cargo facility and a 3,000-ft expansion of the airport’s secondary runway, which would cost $20-million.

“That (runway expansion) improves our reliability during certain

weather conditions,” Koroscil said.

The multi-tenant facility would include an 80,000-sqf crossdock, he noted. That facility would house refrigeration and freezer capacity the airport currently doesn’t have, allowing the airport to move products such as pharmaceuticals, blood products, flowers, fruits and vegetables.

Funding would be shared equally between the provincial and federal governments and TradePort International Corporation.

For the second phase of expansion, the airport plans to apply for funding for a $60-million expansion of the airport’s terminal. That project includes a second floor and loading bridges, as well as expanding some of the groundside areas.

The airport plans to apply for funding for that part of the project in the future, Koroscil said.

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Supply Chain Scan Global Focus CEVA Logistics expands In response to its growing customer base in the energy sector, CEVA Logistics has further expanded into West Africa and Central Asia.

The supply chain management company says it will manage the areas under its Southern Europe, Middle East & Africa (SEMEA) region.

In West Africa CEVA has incorporated its own subsidiaries, and in Central Asia has consolidated its presence and has created a network of offices.

Lufthansa serves Brazilian city Lufthansa Cargo has expanded its route network in South America by flying to the Brazilian city of Manaus. The expanded service began in January 2011.

The company says there will be two MD-11 flights per week, from Frankfurt to Manaus, on Mondays and Fridays. The services to the city in the Amazon Basin will include stopovers in both Dakar and Viracopos, São Paulo. The return flights from Manaus on Tuesdays and Saturdays will stop in Quito and Bogotá, with a technical stop in Curacao.

Interconnectivity key in supply chain One country where an interconnected transportation system is sorely lacking is the Philippines, a nation of 7,107 islands.

So explained Dr Patrick Sherry, executive director of the National Center for Intermodal Transportation at the University of Denver. Sherry gave the keynote address at the Conference on Intermodal and Global Supply Chain & Workshop in Manila late last year.

Sherry explained that in a country composed of so many islands, intermodal transportation can help it increase transportation efficiency and reduce negative environmental impacts.

The aim of the conference, which was the first of three on the topic, was to promote collaboration between public and private sector agencies and companies and emphasize the benefits of intermodal transportation in the supply chain.

Think-tank to optimize retailer’s supply chain Vocollect, Inc, a producer of voice-centric systems for mobile workers, has joined forces with Carrefour, the second largest retailer worldwide and largest European retailer, to optimize the performance of Carrefour’s global supply chain.

The partnership, Le Comité Innovation Logistique et Technologique au Service de L’Excellence Operationnelle (CILTEO), includes Vocollect, Carrefour, technology partner Zetes and experts who will share knowledge in trade and good business practices, as well as look ahead to the needs and opportunities for voice solutions that support operational and business objectives.

“Over a two-year period, Carrefour has launched a comprehensive transformation program,” says Luc Layec, Carrefour corporate logistics director.

“Our think-tank includes leading companies in their market, combining professional expertise and global coverage. Our objectives are common, to develop innovative solutions that enable everyone to improve operational efficiency, to reduce costs and to strengthen our market leadership.”

MM&D | January/February 2011

11

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The state of the industry Looking at the future of 3PLs

By Michael Power

I

n business as in life, if something has always been done a certain way, it doesn’t mean it should always be done that way. The world of 3PL providers is no different. In some cases, courses must be corrected and new trends followed.

But knowing what course to chart requires expertise. To tap that expertise, MM&D magazine assembled a virtual panel of experts who shared, via email, their expertise in the third-party logistics industry, recent trends affecting 3PL providers, as well as how companies can best respond to those trends.

Participants were Steve Ramescu, president of Axsun Group; Douglas Harrison, president of Calyx Transportation Group Inc; Darren Fitzgerald, operations manager for Whirlpool Canada; and Al Leger, partner and practice leader with Supply Chain Alliance Partners.

Looking for true partners Before discussing where the industry is headed, our panelists first looked at the state of 3PLs today—including definitions of a 3PL and what services those companies provide.

“To me, a 3PL is a provider of customized logistics services—could be a single element or several,” said Harrison. Such providers must also offer a solutions-based approach to their enterprises, as well as develop a close relationship with the customer, based on analysis, logistics strategy and joint goals.

Fitzgerald emphasized the partnership aspect of a 3PL’s relationship with its client. “This partnership is built on a long-term, vested outsourcing commitment to drive long-term benefits to a mutual advantage,” he said.

For some panelists, the term 3PL has become overused. According to Ramescu, the industry has

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seen the rise of “camouflaged contenders,” or companies that bill themselves as 3PLs when what they really provide is load brokerage, warehousing or other services. Some companies offer fewer services than they say they do.

“Many say they do everything, however very few actually do, and hence they turn themselves into a 4PL,” Ramescu said.

Ramescu agreed that more and more customers are looking for a true partner in a 3PL. That role includes the ability to strategize, facilitate, help manage transportation and distribution and, increasingly, offer technical expertise. Recent years have seen a drop in the number of carriers and suppliers, he said, which presents a challenge to 3PLs that don’t offer more than one service.

The 3PL industry has become very competitive, said Fitzgerald. Like many companies, Whirlpool had developed a sourcing strategy that requires a blend of 3PL providers to manage the company’s North American network, he said.

But 3PL providers need to keep improving their services to compete in the marketplace. “In my opinion, we often see the ‘comfort’ phenomenon, where 3PLs become very comfortable and the focus on continuous improvement, productivity enhancements, and/or overall strategic initiatives seems to be less frequent,” Fitzgerald said.

The case for consolidation Panelists pointed to consolidation as a recent trend among 3PLs. Ramescu pointed to the aging executive teams of some companies as one reason for this shift.

Some senior players have sold their smaller, private firms since they feel daunted by the notion of making the changes to IT platforms and business practice required to stay competitive.

But consolidation makes good business sense, he noted, since the power of two (or more) is often stronger than the power of one.

“It [consolidation] facilitates in acquiring experienced people rather than trying to hire and expand at a slower pace,” Ramescu said. “By acquiring, expansion can be had immediately and having the new experienced group brought in allows the whole to be more educated and seasoned in handling many and more aspects of the total supply chain.”

An appetite for market share has helped drive consolidation among 3PLs, said Leger. He agreed that companies had much to gain by acquiring a competitor, such as added services, industry expertise, key management personnel and financial leverage.

Consolidation also drives innovation, since MM&D | January/February 2011

the process requires investment in people and systems. Ultimately, the customer benefits from the value created as a result of consolidation.

Consolidation of the 3PL industry is similar to other industries, said Harrison.

Usually, industries consolidate to add new services to their roster, extend their geographic reach and gain economies of scale. Acquisition is usually driven by the need for public companies to grow revenue and earnings, he said, also noting consolidation offered various advantages to customers.

“For a customer, an acquisition gives financial stability and leverage, new services, a stronger industry and—in some cases—greater geographic scope,” he said. “As customers are looking to consolidate their vendor base and deal more seamlessly through the supply chain with fewer handoffs, greater service capabilities of a provider allow for a more seamless solution.”

Does size matter?

Some panelists noted that while the industry was seeing more consolidation and acquisitions, there was also an emerging line between larger 3PL companies and smaller, more regional players. Ramescu saw a “changing of the guard” across the field, with smaller players becoming larger and some larger players shrinking or perhaps disappearing altogether. Size doesn’t always translate to being better, wiser or more able to make new changes— flexibility, vision, a qualified staff and the ability to use technology are more important, he pointed out.

For Harrison, segmentation was driven by the service and strategy of the 3PL provider. Such companies couldn’t be all things to all customers, he said, and companies need to focus on a specific segment in order to provide quality service and gain economies of scale.

“It’s difficult for a small player to match the service offering and scope of a major player,” he said. “That said, as a customer you can become forgotten with a major global provider if you aren’t a significant client. As well, a regional provider has more local market presence and expertise, which may be beneficial.”

For Leger, the division between larger and smaller players was based on capital and the access to capital. “The regional players will always be in existence, as they provide more tactical services on a variable cost scale, which is appealing to a segment of the marketplace,” he said.

Economic crisis and recovery There was agreement among panel members that the economy was improving. The later part of 2009 and through 2010 had been a challenging period for 3PLs, Leger said. Fewer opportunities meant more aggressive competition for the opportunities that did arise, he said. That in turn drove profit margins below industry norms.

“I suspect that 2011 will see a recovering trend, with activity levels closer to normal as companies are poised to address market opportunities within their respective industries,” he said, noting companies would continue working on reduced inventories and advance inventory strategies into the future.

But Fitzgerald felt there were still some challenges on the economic front.

Consumers had also become more price conscious as the economy improved, he said. “The economy has seen some improvement,” he noted. “We continue to see consumer confidence as a challenge impacting our overall business.”

Most 3PLs went into a defensive mode during the economic crisis, said Ramescu. Those companies hunkered down and stopped investing in technology and people. Others took an aggressive approach and made the investments at a fraction of what those investments would have costs during a better economy. Those companies are growing tremendously, he noted.

15

Harrison said while the economy had shown signs of improvement, Canada really had two economies: the resource sector in the west and manufacturing in the east. Manufacturers had been hit hard but had shown signs of recovering and learning to deal with the effects of a Canadian dollar that hovered at par (or higher) with the US currency.

“The logistics industry—transportation, warehousing and 3PL—has been hit hard from the recent downturn with volumes being off dramatically,” Harrison said. “There is a shift in trade patterns and lanes. More Asia import volumes are now being de-stuffed on the west coast and, rather than moved east to only be moved west again, companies are opening import DCs and redistributing to the west through these DCs.” The role of IT The world seems to be shrinking, and a 3PL’s Canadian customers no longer sell exclusively to the US. Companies must therefore invest in the proper IT and the need to adopt similar operating systems, has become more important for 3PLs, several panelists agreed.

“We’ll see in the next decade heavy spending being required to revamp systems and this will drive who stays and who disappears,” Ramescu said. “If you have made the investment you will be well rewarded. If the investment is still two or three years away, time might just be up for those who are sitting on the fence.”

According to Harrison, a solid footing in IT is not only necessary for success or competitive advantage—it’s the price of admission into the 3PL industry. Technology provides value and efficiencies, he said, allowing for more automation, as well as data analysis and capture.

“More and more, 3PLs are acquiring packages of software that are broadly available,” he said. “The competitive advantage comes from what you do with the software, the processes and the people.”

Industry leaders are those who can integrate their systems seamlessly with those of their clients, said Leger. Simply having tier one systems is not enough, he noted. Companies must use those systems to design flexible solutions for their customers.

“The point of differentiation is how these systems are deployed and the solutions that they support,” he said. “On their own, the systems are of little use. It’s much like a paintbrush without the artist. Systems help to magnify a provider’s intellectual design capability. The leaders are those who can create a conduit of solutions—proven and tested—which are appropriate and drive the highest value at the lowest cost.”

MM&D | January/February 2011

Keeping it green Like many industries, sustainability is an issue for 3PLs. But simply because something has always been done a certain way doesn’t mean companies should continue doing it if more environmentally friendly ways of doing business exist, said Ramescu.

“Shipping by truck 2,500 miles over the road doesn’t mean you need to keep doing this,” he said. “Shipping intermodal can save customers hundreds and sometimes thousands of dollars. Transit may increase by a day or so, but consumption of fuel is one-sixth of going over the road. Cost savings makes this a complete win-win situation.

“This is just one thing we can do,” he continued. “There are thousands of other things, and in time we all will keep getting better at it. Going green can be very profitable but in the end if we burn our resources and our planet, does profit really matter?”

A project or initiative that can call itself green must make good business sense before a company will consider investing in it, said Harrison.

“In many cases, green initiatives do add economic value, in others they do not,” he said. “Currently, while there is interest in green initiatives, it would be my view that the supply chain is unwilling (in a significant way) to pay a premium for this.”

Demonstrating the benefits of an environmentally friendly initiative can be a challenge for 3PLs, said Leger. Those benefits can be subtle, such as brand definition and market positioning, and the need to feed into the client’s business culture. Also, deciding whether an initiative will be profitable can be a challenge.

Some of the financial gains are hard to see and measure, such as reducing your electricity consumption by investing in efficient light fixtures, he said.

Or, investing in alternative fuel-burning equipment where the payback is measured over a longer time and some benefits don’t appear on the income statement.

“Profit measured how and when is the question to be posed,” he said.

“Arguments have been made that green initiatives will drive profitability.

The argument is when and how will it be measured?

“When all is said and done, the marketplace emphasis on green initiatives— supported by a willingness to invest in a shorter term—will impact the industry’s behaviour. Being ‘green with envy’ will drive others to follow those leaders within the industry that are being rewarded with sustainable business while supporting green initiatives.”

Attracting new talent Another challenge the group discussed was finding new talent. Canada’s low birth rates, the first wave of baby boomers retiring and an improving economy will mean a shortage of talented young workers to fill positions in the industry, Harrison said.

“The Conference Board of Canada has studied this for several years and has reconfirmed that Canada will face ongoing labour supply issues in the future,” he said. “The transportation industry is beginning to speak about driver shortages and, with new safety regulations introduced in the USA, this will be even more of a concern.”

Seeking and retaining new talent is very hard, said Ramescu, and the transportation industry has never really been a solid choice for university students.

In time, the industry may be able to attract new talent, he noted. In competing with other fields it must remain rewarding for young people looking to enter the workforce.

MM&D 17

3PL Capability Guide Welcome to MM&D’s ninth 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 through 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

Asset-based Legend A: Asset-Based N: Non Asset-based an: Both

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 FAST Licensed Custom s Brokers PIP

Areas Served Legend

A full 60 percent of shipper respondents to Capgemini Consulting’s 2009 State of Logistics Outsourcing study 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.

3PL Links Inc. G N • • • • • • • • • • • 3PLogix G AN • • • • • • • • • • • • • • • • • 80/20 Logistics C N • • • • • A.G.O. Transportation Inc. G • • • • • • • • • • • • • A.N. Deringer Inc. G N • • • • • • • • • • • • • • • • • • • • • • Affiliated Customs Brokers Ltd. G A • • • • • • • • • • • • • • • • • • • • Agility G N • • • • • • • • • • • • • • • All Connect Logistical Services Inc. G A • • • • • • • • • • • • • • • • • • • • • All Type Transport N • • • • • • • • • • • All-Can Distribution Centres Inc G A • • • • • • • • • • • • • • • Alliance Shippers Inc. N A • • • • • • • • • • • • • • • • • • • • • APL Logistics G N • • • • • • • • • • • • • • • ASL Distribution Services Ltd. N A • • • • • • • • • • • • • • • • Axiom Warehousing Solutions, div. Quik X C • • • • • • • • • • • • • • • Axsun Logistics Inc. G A • • • • • • • • • • • • • • • • BCG Logistics Inc. N • • • • • • • • • • • • • • BellvilleRodair International G N • • • • • • • • • • • • • • • • • • Bison Transport N AN • • • • • • • • • • • • • • • • Bolloré G AN • • • • • • • • • • • • • • • • • • • • • BTC Logistics G N • • • • • • • • • • • • C.H. Robinson Worldwide, Inc. G N • • • • • • • • • • • • • • • • • • • • • C.V. Logistics N N • • • • • • • • • C.W. Henderson A • • • • • • Canada Cartage System N A • • • • • • • • • • • • • • • • • • • • • • • Canadian Pacific Logistics Solutions N A • • • • • • Caterpillar Logistics Services, Inc. G N • • • • • • • • • • • • • • • • • • Cavalier Transportation Services Inc. N A • • • • • • • • • • • • • Celadon Canada N A • • • • • • • • • • • CEVA Logistics Canada ULC G N • • • • • • • • • • • • • • • • • • • • • • • Challenger Logistics G A • • • • • • • • • • • • • • • • • • • • • • ChemLogix LLC G • • • • • • • • • • • Churchill Logistics Inc. N A • • • • • • • • • • • • • • CN N A • • • • • • • • • • • • • • Confederation Freezers C • Customized Global Logistics G A • • • • • • • • • • • • • • Damco G N • • • • • • • • • • • • • • • Dart Logistics N N • • • • • • • • • Day & Ross Inc. N A • • • • • • • • • • • • DHL Global Forwarding (Canada) Inc. G N • • • • • • • • • • • • • • • • • • • • Dominion Warehousing & Distribution Services Ltd. N A • • • • • • • • • • • • • • • DTA Services Ltd. G • • • • • • • • • EGI Transportation Services N N • • • • • • • • • • • • • Erb Transport N A • • • • • • • • • • • • Exel N N • • • • • • • • • • • • • • • • • • • • Fargo Transportation Services Limited G N • • • • • • • • • • • • • • FedEx Trade Networks Transport & Brokerage (Canada) G N • • • • • • • • • • • • • • • First Canadian Logistics Ltd. C A • • • • • • First Choice Logistics - Div. of Thompson Ahern & Co. N N • • • • • • • First Team Transport C A • • • • • • • •

18

MM&D | January/February 2011

3PL Capability Guide

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 tr olled 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 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 26.

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-inchief Emily Atkins at emily.atkins@mmd.rogers.com.

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MM&D | January/February 2011

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19

3PL Capability Guide

C: Canada N: North America G: Global

Asset-based Legend A: Asset-Based N: Non Asset-based an: Both

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 FAST Licensed Custom s Brokers PIP

Areas Served Legend

Fraser Direct Logistics Ltd. G A • • • • • • • • • • Freightmate Inc. G N • • • • • • • • • • • • • • N N • • • • • • • • • • • • • • GENCO ATC Georgetown Terminal Warehouses C • • • • • • • • • • • • • • • Groupe Boutin - Transnat Express Inc. Hub Group Inc. N A • • • • • • • • • • • • • • • • • • • • • • • • • • Huron Services Group, CPC Logistics Company N N • • • • • • • • Hyphen Transportation Management Inc. N N • • • • • • • • • • • • • • • • • • • • • I to I Logistics Inc. G A • • Indis Inc. N • • • • ISG Transportation Inc. G AN • • • • • • • • • • • • • • • • IT Logistics Inc. G A • • • • • • • • • • • • • • • • • • • J.D. Smith N A • • • • • • • • • • • • • • J.P. Enterprises - Logistics Corp.

N AN • • • • • • • • • • Katoen Natie Canada G A • • • • • • • • Kelron Logistics N N • • • • • • • • • • • • • • • • •

Lomas Logistics Lomas Logistics delivers a sophisticated range of thirdparty logistics solutions to a wide range of industries, from food, to pharmaceutical, to industrial. Fifty years of listening and delivering has provided us unmatched insight into the realities of these supply chains. Our scope of services covers everything from dedicated warehousing and staging facilities to a multi-layered understanding of product applications and customer needs. If you’re interested in enhancing your supply chain and want to enjoy the benefits of partnering with a company that truly understands all facets of distribution, contact our talented team of supply chain professionals who are ready to deliver innovative, customizable and flexible solutions right at your doorstep.

A World Class WMS Solution RF Pathways is a functionally rich warehouse management system that automates distribution processes. Our system, combined with the recognized expertise of our staff, deliver first class operational benefits.

Contact us today for your free WMS assessment.

Toronto Montreal Vancouver www.lomaslogistics.com 800 575 3382

www.rfpathways.com T: 866.823.6114 A subsidiary of Automation Associates Inc

20

MM&D | January/February 2011

3PL Capability Guide 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 tr olled 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 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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One Source. One Promise.

Did we miss you?

If your 3PL company is missing or your info isn’t up to date, please contact Emily Atkins: emily.atkins@rci.rogers.com.

For nearly 30 years, Steve Ramescu has been in transportation, specializing in the North American Intermodal Industry. He began his career in 1984 in sales. He has held various senior positions and is now President and owner of the Axsun group of companies.

Through its three operating divisions, Axsun provides a complete transportation service offering including intermodal, trucking, ocean and air, and currently employs approximately 75 people. Mr. Ramescu has also been president of various organizations including serving as the youngest president of both the Traffic Club of Montreal and National Transportation Week (Quebec), as well as first President of the A.I.T.Q. and the Quebec Trucking Forum.

1.888.99.AXSUN (29786) info@axsungroup.com

MM&D | January/February 2011

21

3PL Capability Guide

C: Canada N: North America G: Global

Asset-based Legend A: Asset-Based N: Non Asset-based an: Both

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 FAST Licensed Custom s Brokers PIP

Areas Served Legend

Kenco Logistic Services N • • • • • • • • • Kintetsu World Express Canada G • • • • • • • • • • • • • • • • • • N A • • • • • • • • • • • • • Koch Transport Limited Kuehne+Nagel Ltd. G • • • • • • • • • • • • • • • N N • • • • • • • • • • Lakeside Logistics Livingston International Inc. G N • • • • • • • • • • • • • • • • • • • • • Logisticworks N N • • Lomas Logistics G AN • • • • • • • • • • • • • • • • Lynden International Logistics Co. G • • Maisliner Transport G AN • • • • • • • • • • • • • • • • • Manitoulin Transport G AN • • • • • • • • • • • • • • • • • • • • • • • • • Mantoria Inc. G N • • • • • • • • • • • McKenna Logistics Centres G A • • • • • • • • • • McKesson Logistic Solutions N N • • • • • • • • • • • • • Menlo Worldwide Logistics G N • • • • • • • • • • • • • Metro Canada Logistics C N • • • • • • • • Metro Retail Supply Chain Solutions G AN • • • • • • • • Midland Transport N • • • • • • • • • • • • • • • • • • • Milgram & Company Ltd. G • • • • Mosaic Logistics N • • • • • • • • • • • • • • MSM Transportation Group G A • • • • • • • • • • • • • • • • MTE Logistix Group of Companies C A • • • • NAL Worldwide N N • • • • • • • • • • • • • • NYK Logistics G A • • • • • • • • • • • • • • • • Optimum Warehousing Inc G A • • • • • • • • • • • • • • • Optvia Logistics Inc. G N • • • • • • • • • • • • Pacific Overseas Forwarding Inc. G N • • • • • • • • • • • • • • • • • Panalpina Inc. G A • • • • • • • • • • • • • • • • • • • • • • • • Penske Logistics G • • • • • • • • • • PFSweb Canada C • • • • • • • • • • • Polaris Global Logistics Inc. N A • • • • • • • • • • Porter Warehousing and Distribution Ltd. C A • • • • Positive Fulfillment Services Ltd. G N • • • • • • • • • • • • Professional Distribution Services N A • • • • • • • • • • • • ProMiles Canada Inc. N N • • Propulsion + Consulting G N • • • • • • • • • • • • • Quik X Logistics G A • • • • • • • • • • • • • • • • • • • • • • Remco Forwarding Ltd. N • • • • • • • • • • • ReTrans Precision Logistics N • • • • • • • • • • • • • Ryder Canada G A • • • • • • • • • • • • • • • • • • • • • • • • Saddle Creek Corporation N AN • • • • • • • • • • • • Sameday Worldwide G A • • • • • • • • • • • Schenker of Canada Limited G N • • • • • • • • • • • • • • • • • • • • • • • • • Schneider National Carriers Inc. G AN • • • • • • • • • • • • • • • • • • • • • SCI Group Inc. N N • • • • • • • • • • • • Service Freight Systems & Warehousing N AN • • • • • • • • • • • • • • SGT 2000 Inc. N A • • • • • • • • • Sherway Group C AN • • • • • • • • • • • • • • • • SLH Transport Inc. N A • • • • • • • • • • • • • • • • • • Sotech-Nitram Inc. G N • • • • • • • • • • • • STI N A • • • • • • • • • • • • • • • Stonegate Logistics N N • • • • • • • • • • • Sylvan Distribution Sylvite Transportation Group N A • • • • • • • • • • • • • • • • Tandet Logistics Inc. N AN • • • • • • • • • • • • • • • • • • • The Fashion Distributors C Thomson Terminals Limited N A • • • • • • • • • • • • • • • • •

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MM&D | January/February 2011

3PL Capability Guide 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 tr olled 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 Wareho ent Syst use Man e ms ag e m e n Web-Ba t System sed Ship s ment Tra cking

Logistics

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

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

MM&D | January/February 2011

• • • • • • • • • • • • • • • • • •

• • • • • • • • • • • • • • • • • •

•

23

3PL Capability Guide

C: Canada N: North America G: Global

Asset-based Legend A: Asset-Based N: Non Asset-based an: Both

Company Name Total Logistics Group of Companies Trailcon Leasing Inc. Trans-Plus Logistics Inc. TransX Group of Companies Tri-Line Carrier LP Trigistix Warehousing and Distribution TST Overland Express UPS Supply Chain Solutions UTI-Unigistix Versacold Logistics Services Vitran Supply Chain Western Canada Express / Apex Motor Express Wheels Clipper XCD Logistics Solutions Ltd. XTL Logistics Inc. YRC Reimer

24

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 FAST Licensed Custom s Brokers PIP

Areas Served Legend

N AN • • • • • • • • • • • • • • • • • N A • • • • • • N AN • • • • • • • N A • • • • • • • • • • • • • • • • • • • • • N AN • • • • • • • • • N A • • • • • • • • • • • • • • • N A • • • • • • • • • • • • • • G A • • • • • • • • • • • • • • • • • • • • G N • • • • • • • • • • • • • • • • • G • • • • • • N A • • • • • • • • • • • • • C A • • • • • • • • G N • • • • • • • • • • • • • • • • • • • • • • N N • • • • • • • • • • • • • • G A • • • • • • • • • • • • • G A • • • • • • • • • • • • • • •

MM&D | January/February 2011

3PL Capability Guide 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 tr olled 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 Wareho ent Syst use Man e ms ag e m e n Web-Ba t System sed Ship s ment Tra cking

Logistics

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

• • • • • • • • • • • •

Logistics defined Lomas defines logistics as a constant evolution of uderstanding.

Fifty years of listening and delivering has provided us unmatched insight into the realities of supply chains. Our scope of services covers everything from dedicated warehousing and staging facilities to a multi-layered understanding of product applications and customer needs. Tell us about your logistics challenges.

You’ll like how we define ‘solutions’.

Toronto Montreal Vancouver

MM&D | January/February 2011

www.lomaslogistics.com 800 575 3382

25

3PL Capability Guide 3PL Links Inc.

Woodbridge, ON 905-850-9002 wgrossi@3pllinks.com www.3pllinks.com

3PLogix

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

80/20 Logistics

Burlington, ON 905-875-8020 rjackson@8020logistics.com www.8020logistics.com

A.G.O. Transportation Inc. Montreal, QC 514-631-6663 ago@agotrans.com www.actionago.com

A.N. Deringer Inc.

Saint Albans, VT 802-524-8110 marketing@anderinger.com www.anderinger.com

Affiliated Customs Brokers Montreal, QC 514-288-1211 affiliated@affiliated.ca www.affiliated.ca

Agility

Mississauga, ON 905-612-7561 canada@agilitylogistics.com www.agilitylogistics.com

All Connect Logistical Services Inc. Oakville, ON 800-388-7947 info@allconnect.ca www.allconnect.ca

All Type Transport Lachine, QC 514-737-1900 info@remco.ca www.remco.ca

All-Can Distribution Centres Inc Belleville, ON 613-966-0796 kellyn@allcandcs.com www.allcan3PL.com

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

ASL Distribution Services Oakville, ON 905-829-5141 khammel@asldistribution.com www.asldistribution.com

Axiom Warehousing Solutions, div. Quik X Transportation Inc.

Mississauga, ON 800-461-8023 x2087 rbakker@quikx.com www.axiomwarehousing.com

26

CEVA Logistics Canada ULC

Axsun Logistics Inc.

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

BCG Logistics Inc.

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

BellvilleRodair International

Mississauga, ON 905-671-4655 jeff.cullen@bellevillerodair.com www.bellvillerodair.com

Bison Transport

Mississauga, ON 905-564-5614 dsmith@bisontransport.com www.bisontransport.com

BollorĂŠ

Mississauga, ON 905-677 9022, Ext. 227

BTC Logistics

Arva, ON 1-888-241-9494 www.btclogistics.com

C.H. Robinson Worldwide, Inc.

Eden Prairie, 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

Etobicoke, ON 416-674-5826 x235 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

Mississauga, ON 905-672-3456 bruce.rodgers@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

Customized Global Logistics

Burlington, ON 905-319-3449 gtaylor@cglogistics.com www.cglogistics.com

Fargo Transportation Services Limited

Georgetown, ON 905-873-1199 jim@fargotransportation.com www.fargotransportation.com

FedEx Trade Networks Transport & Brokerage Canada-Inc.

First Canadian Logistics

Richmond, BC 604-270-1950 graham@first-canadianlogistics.com www.first-canadianlogistics.com

Hartland, NB 866-DAY-ROSS bdmorin@dayandrossinc.ca www.dayross.ca

DHL Global Forwarding

Mississauga, ON 289-562-6500 sales.dgf.ca@dhl.com www.dhl-dgf.com

Dominion Warehousing & Distribution Services

Toronto, ON 416-744-2438 dineen@godominion.com www.godominion.com

DTA Services Ltd.

Celadon Canada

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

EGI Transportation Services

Erb Transport

New Hamburg, ON 800-665-2653 contactus@erbgroup.com www.erbgroup.com

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

ISG Transportation Inc.

IT Logistics Inc.

First Choice Logistics Division of Thompson Ahern & Co. Ltd.

Laval, QC 514-339-1177 ydgagnon@itlogistics.com www.itlogistics.com

Mississauga, ON 905-677-3471 mjohnston@taco.ca www.taco.ca

J.D. Smith

First Team Transport

Mississauga, ON 905-897-6242 seamanj@firstteamtransport. com www.firstteamtransport.com

Fraser Direct Logistics Ltd.

Freightmate Inc.

Day & Ross Inc.

I to I Logistics Inc.

Delta, BC 604-777-1470 admin@i2ilog.com www.itoilogistics.com

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

Dart Logistics

Toronto, ON www.dartlog.com

Vaughan, ON 877-549-7436 patrickc@hyphenateit.com www.hyphenateit.com

Indis Inc.

Mississauga, ON 1-800-388-9479 ftn.fedex.com

Madison, NJ 973-514-5126 mark.byrne@damco.com www.damco.com

Cavalier Transportation Services Inc.

Kitchener, ON 1-800-265-6467 ckemp@celadoncanada.com www.celadontrucking.com

Hyphen Transportation Management Inc., member of the Calyx Transportation Group

Georgetown, ON 905-877-4411 customsbrokers@fraserdirect. ca www.fraserdirect.ca

Damco

Toronto, ON 416-487-3311 mgracey@dta.ca www.dta.ca

Bolton, ON 905-857-6981 rnorth@cavalier.ca www.cavalier.ca

Exel

Westerville, OH 800-272-1052 contactus@exel.com www.exel.com

North York, ON 416-633-4331 www.freightmateinc.com

Vaughan, ON 905-669-8980 khunter@jdsmith.com www.jdsmith.com

J.P. Enterprises - Logistics Corp.

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

Katoen Natie Canada

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

Kelron Logistics

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

GENCO ATC

Pittsburgh, PA 800-378-9671 solution@gencoatc.com www.gencoatc.com

Kenco Logistic Services

Chattanooga, TN 423-643-3401 info@kencogroup.com www.kencogroup.com

Georgetown Terminal Warehouses Georgetown, ON 905-702-7084 hvisser@gtwcanada.com www.gtwcanada.com

Kintetsu World Express Canada

Groupe Boutin - Transnat Express Inc.

Boucherville, QC 450-449-7373 www.boutinexpress.com

Mississauga, ON 905-677-8830 info@kwe.ca www.kwe.ca

Koch Transport Limited

Cambridge, ON 519-653-8530 bicharag@fastfrate.com www.kochtransport.com

Hub Group Inc.

Oakville, ON 905-820-2070 boneill@hubgroup.com www.hubgroup.com

Kuehne+Nagel Ltd.

Huron Services Group, CPC Logistics Company

Oakville, ON 905-845-4075 j.thomson@callcpccanada.com www.hurongroup.ca

Mississauga, ON 905-502 7776 info.toronto@kuehne-nagel. com www.kuehne-nagel.com

Lakeside Logistics

Oakville, ON 800-387-7108 michael@lakesidelogistics.com www.lakesidelogistics.com

MM&D | January/February 2011

www.glasvangreatdane.com 1.888.GLASVAN (1.888.452.7826)

BETTER EQUIPMENT. BETTER SERVICE.™

DOT and OFF ROAD shunt trucks in stock

Check out our Capacity Dock, port, yard and intermodal shunt tractors Why does Glasvan Great Dane think that Capacity is Better Equipment? Maybe it’s the off road, DOT, 4x4, tandem and heavy duty models used to handle the busiest and toughest shunting challenges with Glasvan’s standard harsh climate, driver comfort and safety packages. Or it’s the rental, leasing and maintenance support programs plus used and refurbished in-stock shunt trucks. And, maybe it’s the pluggable hybrid electrical terminal truck (PHETT™), Capacity’s latest hybrid technology that cuts diesel consumption by up to 60%. The PHETT™ hybrid electric eliminates noise in electric vehicle mode, reduces noise by 30% under diesel power and can reduce carbon emissions by more than 5000 kg per year.

Whatever the reasons, visit Glasvan Great Dane for Better Equipment backed by Better Service at our 5 Southern Ontario locations, including parts and maintenance. For more information, visit www.glasvangreatdane.com/phett Head Office: 1201 Aimco Blvd., Mississauga, ON L4W 1B3

3PL Capability Guide Livingston International Inc.

Toronto, ON 416-626-2800 info@livingstonintl.com www.livingstonintl.com

Logisticworks

Brampton, ON 905-792-6140 agallant@m-o.com www.m-o.com

Lomas Logistics

Brampton, ON 905-458-1555 solutions@lomaslogistics.com www.LomasLogistics.com

Lynden International Logistics Co.

Vaughan, ON 905-879-0114 salesinfo@lilco.lynden.com www.lilco.lynden.com

Maisliner Transport

LaSalle, QC 514-366-0336 jmaislin@maisliner.com www.maisliner.com

Manitoulin Transport

Mississauga, ON 905-670-8990 svalenzuela@ manitoulintransport.com www.manitoulintransport.com

Mantoria Inc.

Midland Transport

Dieppe, NB 506-858-5555

Milgram & Company Ltd.

Montreal, PQ 514-288-2161 sales@milgram.com www.milgram.com

Mosaic Logistics Peterborough, ON 800-462-7688 info@shipmts.com www.shipmts.com

MSM Transportation Group

Bolton, ON 1-800-667-4175 mmccarron@shipmsm.com www.shipmsm.com

MTE Logistix Group of Companies

Edmonton, AB 780-944-9009 mteinfo@mtelogistix.com www.mtelogistix.com

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

Optimum Warehousing Inc.

Montreal, QC 514-488-4004 info@mantoria.com www.mantoria.com

Laval, QC 450-688-7227 ydgagnon@optimumwhs.com

McKenna Logistics Centres

Guelph, ON 519-823-7860 scott@optvialogistics.com www.optvialogistics.com

Mississauga, ON 905-274-1234 sales@mckennalogistics.ca www.mckennalogistics.ca

McKesson Logistic Solutions

Oakville, ON 905-829-9927 marketing@logistics.ca www.logistics.ca

Optvia Logistics Inc.

Pacific Overseas Forwarding Inc.

Surrey, BC 866-535-4038 rates@pacificoverseas.ca www.pacificoverseas.ca

Panalpina Inc.

Mississauga, ON 905-755-4500 uwe.wicke@panalpina.com www.panalpina.com

Penske Logistics

Menlo Worldwide Logistics

San Mateo, CA 650-378-5200 info@menloworldwide.com www.menloworldwide.com

Metro Canada Logistics

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

Metro Retail Supply Chain Solutions

Etobicoke, ON 416-203-3339 ann.girvin@scm-canada.com

28

Reading, PA 1-800-529-6531 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

Porter Warehousing and Distribution Ltd. Edmonton, AB

780-453-5192 porterinfo@ porterwarehousing.com www.porterwarehousing.com

Positive Fulfillment Services Ltd.

Toronto, ON 416-213-0299 pisaac@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

Propulsion + Consulting

Laval, QC 450-688-7227 ydgagnon@propulsionplus. com

Quik X Logistics

Mississauga, ON 800-554-2264 award@quikx.com www.quikx.com

Remco Forwarding Ltd.

Brampton, ON 905-455-1500 info@remco.ca www.remco.ca

ReTrans Precision Logistics

Mississauga, ON 905-673-9522 lthompson@re-trans.com www.re-transcanada.com

Ryder Canada

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

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 sales.canada@dbschenker.com www.dbschenker.com/ca

Schneider National Carriers Inc.

Guelph, ON 519-826-7060 caccaros@schneider.com www.schneider.com

SCI Group Inc.

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

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

SGT 2000 Inc.

TransX Group of Companies Winnipeg, MB 204-632-6694 www.transx.com

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

St-Germain, QC 1-800-363-4216 info@sgt.qc.ca www.sgt2000.com

Trigistix Warehousing and Distribution

Sherway Group

Mississauga, ON 905-364-3300 sales@sherwaygroup.com www.sherwaygroup.com

Mississauga, ON 905-696-7020 eswift@trigistix.com www.trigistix.com

SLH Transport Inc.

TST Overland Express

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

Mississauga, ON 905-625-7500 www.tstoverland.com

Sotech-Nitram Inc.

Laval, QC 450-975-2100 www.sotechnitram.com

STI

Fort Wayne, IN 1-800-234-2788 marketing@stidelivers.com www.stidelivers.com

Stonegate Logistics

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

Sylvan Distribution

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

Sylvite Transportation Group

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

Abbotsford, BC 604-854-6633 acarbone@sylvite.ca www.sylvite.ca

Vitran Supply Chain

Concord, ON 416-798-4940 sales@vitranlogistics.com www.vitran.com

Tandet Logistics Inc. Oakville, ON 905-603-6291 rtilley@tandet.com www.tandet.com

The Fashion Distributors Lachine, QC 514-737-1900 info@remco.ca www.remco.ca

Thomson Terminals Ltd.

Toronto, ON 416-240-0897 solutions@thomsongroup.com www.thomsongroup.com

Total Logistics Group of Companies

Western Canada Express / Apex Motor Express

Concord, ON 905-738-2106 bpoe@apexltl.com www.westerncanadaexpress. com

Wheels Clipper

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

XCD Logistics Solutions Ltd.

Toronto, ON 888-827-8521 rnuez@totallogistics.com www.totallogistics.com

Thornhill, ON 647-669-1257 skopyto@xcdlogistics.com www.xcdlogistics.com

Trailcon Leasing Inc.

XTL Logistics Inc.

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

Trans-Plus Logistics Inc. Mississauga, ON 905-362-0821 sam@trans-plus.com www.trans-plus.com

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.co

MM&D | January/February 2011

Logistics makes the wheels of commerce spin more swiftly.

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ProMat 2011 Preview

ProMat 2011 sneak peek From March 21 to 24 in Chicago, ProMat 2011 will showcase the latest in supply chain solutions. This year’s show boasts over 700 material handling and logistics exhibitors. Deanna Rosolen rounded up a selection of the products you can see.

Akro-Mils Inc and Buckhorn Visitors to the Akro-Mils booth will see new offerings such as the InSight Ultra-Clear Bins and Indicator Two-Toned Bins. The company will also unveil the new size and accessories for its SuperSize AkroBin line. Akro-Mils offers a range of durable plastic containers and metal systems.

Buckhorn will introduce a new plastic collapsible container system, which offers an alternative to cardboard and plastic corrugated bulk boxes.

Booth #1219 Creform Corporation Creform’s CA-A50060-NSB AGV drives under a stationary cart equipped with a hitch, extends a tow pin to engage the cart and moves it to a predetermined location. It includes new safety and operational features and programming options. The new Creform 42mm pipe and joint system can be used to create heavy-duty structures without the need for excessive bracing. The company’s new Placon Roller Conveyors provide stability and smooth material handling flow. The conveyor’s three-inch wide rollers offer extra support and can ensure smooth product or box transfer.

Booth #4814 EnerSys EnerSys will introduce its NexSys battery and charger system, which it says can provide a flexible, maintenance-free energy solution for small traction applications. The battery can increase cycling performance and high-rate recharging capability. The company will MM&D | January/February 2011

also highlight its General battery, Ironclad battery, Enforcer chargers and Express fast charge charger and battery lines.

Booth #1203 Intelligrated Inc Intelligrated will unveil the latest additions to its IntelliSort line of sorters, the IntelliSort CB and IntelliSort TT cross-belt and tilt-tray sorters. Intelligrated’s cross-belt and tilt-tray sorters work for high-volume distribution centres, parcel hubs and fulfillment operations.

Both cross-belt and tilt-tray technologies can be used in applications with a variety of product sizes and shapes that demand high throughput and accurate sorting. They are compact and modular for use in new construction or retrofit applications, the company says. The company also offers Alvey palletizers and robotics, Real Time Solutions order fulfillment systems, warehouse control software and advanced machine controls.

Booth #2903 Interlake Mecalux Inc Interlake will showcase its EasyWMS warehouse management system (WMS) software. The company says EasyWMS was designed to deliver high performance while meeting the logistics needs of any warehouse at a low cost and with minimal implementation time. The software can support operating systems up to Windows 7 and software updates are released regularly. Features include the display of real-time statuses of stock levels, locations, productivity and shipments.

Booth #2012 Intralox LLC Intralox’s solutions include the Dual-Angled Roller Belt Sorter, which performs 90-degree sorting at 200 cases per minute; the Series 7000 Sorter, which offers high-speed sorting of most package types, with bi-directional divert and tight divert centreline capabilities; and the Pallet Layer Descrambler, which offers automatic descrambling, singulating and orientation of products from pallet layers into single file.

Booth #1537 Kardex Remstar LLC Kardex Remstar will introduce its new generation of vertical carousels. The Megamat RS vertical carousel features reduced lifecycle costs, an improved 31

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Collocated with ProMat 2011

ProMat 2011 Preview structure with interchangeable carriers and multiple control options. The company will highlight its automated storage and retrieval solutions, which are designed to increase productivity and maximize storage space. Visitors will also find information on its parallel picking method, an order picking technique used in industrial material picking operations when standard picking methods become too constrictive.

Booth #2919 Ohio Gratings Inc Ohio Gratings is showcasing its MGB PressLock bar grating, which is manufactured from carbon steel, and the crossrods and bearing bars are mechanically locked together under 300 to 500 tons of pressure. The product is available in a variety of mesh openings and is suitable for applications such as mezzanines, platforms, catwalks, pallet rack decking, and open mesh shelving.

Booth #1834 Presto Lifts Inc Presto Lifts will introduce its new DXL Series Compact Scissor Lifts. The company says the highperformance, industrial-duty lifts feature smaller footprints than standard lifts and offer a full 2,000lbs of lifting capacity. The lifts are suitable for work positioning, assembly, repair and inspection applications in factories, warehouses, retail stores, and repair shops. A double scissor mechanism allows for a low six-inch collapsed height while providing a 42-inch raised height.

Booth #1831 The Raymond Corporation Operators working in tough dock environments and travelling over uneven floors require lift trucks with maneuverability and a clear line of sight.

Raymond Corporation says it designed its models 4150 and 4250 stand-up counterbalanced lift trucks with these operators in mind. The models provide greater visibility, more agile steering, a shorter head length and dual steer tires. They also MM&D | January/February 2011

come with ComfortStance suspension to maximize operator comfort. The company will also highlight its reach-fork trucks, order pickers and swingreach trucks.

Booth #3219 RMT Robotics The Grimsby, Ontario-based company will highlight its ADAM Material Handling Mobile Robot—or Lean Machine. ADAM (autonomous delivery and manipulation) is an intelligent robot that independently performs random origin to random destination transport of work-in-process materials and finished goods in lean manufacturing and assembly applications.

Booth #3503 RMT Robotics is also highlighting its automated case and layer picking systems that can reduce the footprint of standard pick modules, pick in exact order sequences, minimize labour and provide traceability.

Booth #3821 Sealed Air Corporation Sealed Air will highlight its brands such as Bubble Wrap brand cushioning, Jiffy protective mailers, Instapak foam-in-place systems and Cryovac packaging technology.

Booth #3919 Southworth Products Corp Visitors can learn all about the new Dura-Dock Series loading-dock lifts from Southworth Products. The dock lifts can help transfer loads quickly and safely from truck bed to any dock height. They are available in 5,000-lb and 6,000-lb capacities and feature corrosion-resistant, galvanized base and legs. The company is also exhibiting adaptable lifting, levelling, tilting, turning, rotating, inverting, upending and transporting product solutions.

Booth #403 Yale Materials Handling Corp Yale Materials Handling will feature its newest generation of electric sitdown rider lift trucks, narrow aisle reach trucks, order selectors, ICE pneumatic tire trucks and walkie rider electric trucks. The company will also highlight its brand re-launch.

Booth #1003 MM&D 33

Learning Curve | Tracy Clayson

The value of relationships What to consider when dealing with 3PLs

T

appropriate measurement tools are being used.

Even with the serious hit the economy has taken in recent years, the supply chain field still faces a troubling talent shortage. Human capital remains a key competitive advantage and landing top performers in all areas of logistics requires a good internal recruiting team, as well as help from experts in the talent search.

From financial control, market position, IT advancement, space optimization and seamless movement of materials, each component of the business requires a suite of experts and a team of top players to keep businesses thriving and growing.

The talent search is only part of the requirement.

Companies need to continuously invest and engage the supply chain talent. Determining retention risks should certainly remain a top priority for any company looking to stay ahead. Supply chain professionals need to be challenged and rewarded for their innovations, dedication and efforts. Bear in mind, job satisfaction and commitment are driven by management and company culture.

Like many industries, logistics experts are in contact with a large pool of clients, suppliers, competitors and colleagues. They can therefore easily access leads on professional opportunities and employment offers. The wealth of networking opportunities in the supply chain has intensified through social networking pages like LinkedIn, along with blogs, podcasts, web postings, association job boards and other recruiting tools.

Companies that train and develop their teams, expand their technology use, provide efficiencies for workplace mobility and communication and offer access to higher learning are helping to enrich their workplaces.

When working with third-party recruiters, companies should supply them with the same orientation and training material employees see.

A critical step in avoiding low performance and hire failures is to address any information disconnect between user and provider in search, selection, employment offer and position outlines. MM&D

hird party logistics (3PL) providers continue their huge presence in the supply chain world this year, as they work to build specialized global networks that meet the range of markets in the manufacturing sector.

Companies need a large amount of trust—as well as a great deal of control—if they plan to rely on outsourced solutions. When doing business with a 3PL, companies must consider the risk of revenue loss due to supply chain mishaps, as well as rising costs as they work to tap new markets for sourcing, distribution and demand.

Shippers are finding many challenges related to 3PL management, starting with selection. The RFP process is important in the early stages of the relationship between shippers, suppliers and logistics service providers. The importance of a working agreement is not just setting the framework for the operational process, but as information that can find its way into a courtroom if the service failures and claims grow beyond acceptable levels. The bid process requires expectations to be outlined with clear guidelines, as well as open communication between procurement and supplier groups.

Companies regularly review practices in 3PL management and seek to develop better relationships with 3PL providers. Usually, these efforts are driven by problems somewhere along the supply chain. Some companies have narrowed the selection of suppliers to make sure the process goes smoothly and to reduce the risks that come when too many parties get involved. Shippers are also sourcing providers that specialize in each market area, as these providers bring a wealth of knowledge and experience in their areas.

Successful partnerships with 3PLs may involve more interaction between client and supplier, where the supplier’s expertise is used in more of a consulting role. By jointly developing a model of the requirements, both the shipper and supplier have a vested interest in succeeding. They also have— right from the start—more shared knowledge of the expectations and challenges their involvement in the process will require.

The ongoing assessment of the working arrangement with the 3PL requires consistent and integrated performance reporting. Both sides must provide feedback through structured, scheduled meetings and through dialogue Tracy Clayson (tracy@in-transit.com) is on daily issues. Reports and score cards can be burdensome, but there’s a managing partner, business development, of need to ensure the 3PL is meeting goals on service expectations, and that Mississauga, Ontario-based In Transit Personnel.

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MM&D | January/February 2011

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Legal Link | Marvin Huberman

Happy New Year, 3PLs!

A resolution for third-party logistics providers

R

Risk Management Third-party logistics providers should get professional advice when it comes to decreasing the costs and risks of claims for: • copyright, trademark, and unauthorized use of confidential information; • delay claims for late shipment delivery; • hazardous material; • insurance coverage; and • negligent hiring or oversight brought by customers claiming to have suffered losses caused by service providers hired or overseen by a 3PL. Third-party logistics providers can better manage operational risks by: • developing an excellent management team; • building more comprehensive networks with a greater capital base from which to launch the business.

Companies can better control risk by: • transferring some of that risk to insurance companies; • s elf-insuring other risk; BE IT RESOLVED THAT: •u sing provisions in their contracts; and Competitive Advantage • avoiding or limiting some service offerings to • 3PLs will identify and analyze the forces that affect supply chain managecustomers. ment and their business relationships; • t hey will set realistic forecasts; and Corporate Governance • t hey will meet their customers’ demands for customized solutions and A greater focus on effective corporate governance better service levels. should include: Some strategies for achieving this include: • preparing company mission statements and • offering enhanced logistics services, coordination and the reorganization strategic plans; of activities to bring about supply chain integration; • striving for transparency and open com• developing a better inventory management strategy for their customers; munication; • developing strategic plans to strengthen relationships with stakeholders; •m aking clear the duties and responsibilities of • 3PLs should look to developing collaborative and durable business models boards of directors; that help them reduce costs, improve the reliability of their services, expand • p roper human resource management; and to new markets, improve their offerings, and restructure to boost their • looking at assessment and control systems. These financial performance; include accounting and bookkeeping records, • 3PLs should push for better cost-cutting measures, IT integration, forecomplaint procedures, compliance audits and casting and inventory management. performance evaluations of members of the They should also improve their revenue growth projections through: board of directors.

• expansion of select services; The undersigned, being all of the directors of third• hiring talented managers and operational staff; party logistics providers, pass the foregoing • exploring ways to take advantage of market growth in outsourcing oppor- resolution.

MM&D tunities; and • avoiding unintended legal consequences by effectively managing opera- Marvin Huberman, LLM, is a Toronto lawyer. tions and risk. www.marvinhuberman.com. esolutions are as much a part of a new year as buying a calendar. Here is a resolution—with a legal twist and focusing on competitive advantage, risk management and corporate governance—that providers of third-party logistics can use to start 2011 off right.

Whereas: • 3PLs wish to minimize their risks and costs, as well as fulfill service requirements to their customers through consolidation and other policies.

Collaboration and integration with their global partners is important, as is a business model that includes the use of information technology; and • it’s in the best interest of 3PLs to focus on creating a seamless supply chain, which will help them get competitive advantage; • volatility in the global economy, uncertainty and the recession have created significant challenges for 3PLs; and • several other factors have led to fundamental changes in the logistics industry, including deregulation, the increased use of the internet, more sophisticated and demanding customers, a new and increasingly complex playing field, and a highly litigious business environment. This has exposed 3PLs to liability risks which, if not addressed effectively, may lead to serious consequences; • in the new year, 3PLs should commit themselves to achieving their goals while complying with applicable laws and operating in a fiscally prudent, profitable, and efficient manner.

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MM&D | January/February 2011

The evolution of a respected professional designation.

Certified Professional Purchaser

to

Supply Chain Management Professional The new SCMP designation better reflects all the disciplines within supply chain management by integrating procurement, operations and logistics.

An SCMP delivers innovative leadership, strategic thinking and brings the most advanced skills to add value to your organization in a changing global marketplace.

TM

For more information, please visit pmac.ca

Materials Handling | Dave Luton

Accomodating boomers

Warehouse safety for a mature workforce

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ike many people in Canada I was born between 1946 and 1964. That makes me a baby boomer—one of those born in the 20 years after the Second World War. I entered the workforce at the beginning of the 1970s and, like many boomers, I am now approaching retirement.

At one time, society expected employees would retire once they hit 65, or possibly earlier than that. But these days, because of anti-discrimination rules, reaching that age is no longer enough to force people to retire.

Tougher economic times means people stay in the workforce longer.

Couple that with an aging population, as well as union rules that say job reductions are governed by seniority, and many companies today are faced with a workforce that’s getting older.

One concern regarding this older workforce is employees past a certain age might be more injury-prone than their younger counterparts. But data from the US reveals workers over 55 generally do not see an increase in age-related safety performance issues. In fact, older workers have fewer avoidable absences, a lower turnover rate and fewer work-related accidents.

The highest accident and absentee rates are among young workers.

This suggests older workers are not likely to take it easy on the job. Although older workers face additional obstacles to performing their tasks, those obstacles can be offset through experience and knowledge. Throw in a strong work ethic, and more mature employees make a valuable addition to the workforce.

To keep productivity high and take advantage of that knowledge and experience, it’s important to allow for the physical changes and increasing limitations associated with age. Changes to the work environment, equipment and processes can add very little to costs, and yet the return on investment is potentially very high.

Hopefully, some changes should already have been made decades ago.

If not, management may have been negligent in some responsibilities in this area.

To increase warehouse safety it is important to recognize that with age comes a reduction in physical and sensory ability. As years pass, people tend to lose height and gain weight. Muscle strength also decreases. Hearing— especially for higher pitches—also diminishes, as does vision.

In many warehouses older workers are often predominantly male, since women have only recently joined the ranks of warehouse workers. When it comes to pure physical strength, women are often weaker than men. That said, basic changes to accommodate that integration should have been made long ago and should be less of an issue than in the warehouse of 40 years ago.

Facilities should also be ergonomically smart and use proper processes and equipment. The basic strategy is to eliminate heavy lifts, bending, elevated work from ladders and long reaches. There is no shortage of equipment available to accommodate these objectives for just about any material handling task.

Automation can play a key role. For example, use equipment such as carousels or a mini-load AS/RS that brings the work to the picker, not the other way around. Even without changing equipment, a simple slotting exercise 38

within static shelving to put high movers between knee and shoulder height can greatly reduce stretching and bending.

It can also help to assign tasks intelligently. Job rotation can reduce the risk of repetitive motion injury, particularly if combined with reduction of static standing times.

Don’t overlook the importance of operator comfort, such as rubber matting at standing work stations or proper seating that cushions a sit-down fork truck operator. As well, enhancements such as skid-resistant material for flooring—especially for stair treads—can significantly reduce slips and falls.

Accomodating many of the physical changes that come with age is relatively modest and inexpensive. Ensure lighting is sufficient; there should be enough lighting for both the general warehouse and a higher lighting standard for workstations.

The increased operating costs of higher quality lighting can be offset by using motion sensors to switch off aisle lighting when nobody is there.

As well, try adding colour contrast or increased reflective capability by painting walls. Employees can’t avoid what they can’t see, so buy operatorfriendly equipment like fork trucks with high visibility masts and design aisles properly. To keep corners safe, equipment such as concave mirrors can help avoid blind spots.

As computer hardware costs continue to fall, I advise buying larger-sized computer monitors and video displays. Software design that eliminates clutter from control screens is also a good idea.

To accommodate employees with reduced hearing, use modified audible alarms on mobile equipment for activities such as backing up. In general, it’s a good idea to lower the pitch of sound systems, such as on alarms, to make them easier to hear.

Regardless of age, proper training goes a long way towards reducing injuries. Allow employees time to practice tasks and develop familiarity with them. Finally, encourage them to work as a team and help each other with tasks such as heavy lifting.

MM&D Dave Luton is a consultant in the greater Toronto area. Email him at dluton@cogeco.ca.

MM&D | January/February 2011

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