PARCEL
TOP 2011 COMPANIES GET TO KNOW YOUR SOLUTION PROVIDERS
Six ways to managing parcel carrier costs with automation. pg 20 Three steps to take before the holiday shipping season. pg 14 Getting started with exports to Canada. pg 6
AUGUST 2011
www.PARCELindustry.com
JULY-AUGUST 2011 | volume 18 | issue 3
PARCEL PUBLISHER Marll Thiede EDITOR Amanda Armendariz amanda.c@rbpub.com
DEPARTMENTS 06
Going Global
16
Getting started with exports to Canada BY TOM STANTON
08
10
Transportation ABCs
How Your Packaging Can Help You Eliminate Oversized Shipping Charges BY DENNIS SALAZAR
Update: 3rd Party Negotiator vs. FedEx & UPS BY ROB MARTINEZ
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Parcel Perspectives
18
Practical IT
Improving Online Security BY HIRAM KNICKERBOCKER
Summer Six-Pack BY PETER STARVASKI
12
Packaging
Regional Alternatives
Managing Parcel Carrier Costs with Automation
Here are six most popular automation strategies — which one works for you? BY MIKE PARRILLI
COLUMNISTS Editor’s Note Parcel Counsel
Claims for Concealed Damage: An Overview BY BRENT WM. PRIMUS, J.D.
23
Wrap Up
Times Are Good… Right? BY MICHAEL J. RYAN
TOP COMPANIES
Get to know your solutions providers! These companies cover every aspect of your shipping operation, from contract negotiation to warehouse management software, so check it out!
24 25 26 27 28 29 30
a2b Fulfillment, Inc. Canada Post CASS Information Systems DYMO Endicia Engineering Innovation EXPAK Logistics Green Mountain Consulting
ADVERTISING Ken Waddell | ken.w@rbpub.com Josh Vogt | josh@rbpub.com
2901 International Lane Madison WI 53704-3128 608-241-8777 • Fax 608-241-8666 www.PARCELindustry.com
Ship Right
FEATURES
05 22
GRAPHIC DESIGN Kelli Cooke
Leaders Guide to Building Stable Working Relationships BY MARK TAYLOR
Three Fundamental Actions to Take in Preparation for the Holiday Shipping Season BY ELIZABETH LOMBARD
20
PRODUCTION DIRECTOR Chad Griepentrog
Mastering Management
Command and Control Survey - Results BY ROB SHIRLEY & JARED OAKLEY
14
CIRCULATION Rachel Spahr | rachel@rbpub.com
31 32 33 34 35 36
Newgistics OnTrac Pitney Bowes Transportation Impact TranzAct Technologies WMSi
REPRINTS For high-quality reprints, please contact our exclusive reprint provider. Scoop Reprint Source • 800.767.3263 ext. 144 www.scoopreprintsource.com PARCEL (ISSN 1081-4035) is published 6 times a year by RB Publishing Inc. All material in this magazine is copyrighted 2010 © by RB Publishing Inc. All rights reserved. Nothing may be reproduced in whole or in part without written permission from the publisher. Any correspondence sent to PARCEL, RB Publishing Inc. or its staff becomes the property of RB Publishing, Inc. The articles in this magazine represent the views of the authors and not those of RB Publishing Inc. or PARCEL. RB Publishing Inc. and/or PARCEL expressly disclaim any liability for the products or services sold or otherwise endorsed by advertisers or authors included in this magazine. SUBSCRIPTIONS Free to qualified recipients: $12 per year to all others in the United States. Subscription rate for Canada or Mexico is $35 for one year and for elsewhere outside of the United States is $55. Back-issue rate is $5. Send subscriptions or change of address to: PARCEL, P.O. Box 259098 Madison WI 53725-9098 Allow six weeks for new subscriptions or address changes.
EDITOR’S NOTE AMANDA ARMENDARIZ
Increase Your Knowledge Base Thanks for reading our 2011 Top Companies issue! Starting on page 24, we profile some of the best companies in the logistics industry. If you need help with any portion of your shipping operations, check out the businesses listed on these pages; you’re sure to find what you need. Plus, some of these companies will be at the PARCEL Forum 2011 (which will be held October 24-26, 2011 at the Hyatt Regency O’Hare in Chicago) so if you’re attending, it would be the prime opportunity to network with these businesses. And if you’re not planning on attending, well, what are you waiting for? Register now at www.PARCELForum.com. I can’t emphasize the value of networking when it comes to expanding our knowledge base with respect to the industry, and the PARCEL Forum is, without a doubt, one of the best networking opportunities around. We have some fantastic sessions lined up this year, and our exhibit hall is sold out — always a good sign! We hope to see you there! And speaking of increasing your knowledge base, this issue of PARCEL is the perfect one to assist in that. Not only do we have profiles of the aforementioned companies to help you out with your supply chain needs, but we also have some great columns on preparing for the holiday shipping season, getting started with exporting to Canada, and an article on controlling parcel costs with automation. So dig in, and drop us a line on our LinkedIn group to let us know what you liked best about this issue. As always, thanks for reading PARCEL.
AUGUST 2011 | www.PARCELindustry.com
5
GoinG Global with Tom
Stanton
Getting Started with Exports to Canada
The bottom line for an importer in Canada is what your product cost will be — the total “landed cost”? You know what your product sells for in the US and the margin you would like to make, but what about the transportation, brokerage, duty and tax costs? Here are a few guidelines that might be helpful to you in computing landed costs for your products shipped to Canada.
Vancouver, have instituted provincial taxes that the importer is obliged to identify on their tax return. In the end, a Canadian importer will pay the US sales price plus the duty, if any, plus the GST, plus the provincial or harmonized sales tax (HST), plus the transportation. For example, Ontario charges 13% HST, five percent of the value of the goods plus the duty is collected when the goods cross the border, and eight percent is to be self-assessed by the importer on his tax return, so it is Classification: The Harmonized system of classification very important to compute the duties and taxes prior to export. can be used to assign a number to each item that will be The GST/HST tax is recoverable by way of the “flow through” exported. Once a classification has been assigned to a prod- method of recovery or registering to collect and remit net GST/ uct, the information regarding how much duty will be appli- HST payments on a quarterly basis. cable is available here: http://cbsa.gc.ca/trade-commerce/ tariff-tarif/2011/01-99/tblmod-eng.html Also the United Transportation and Brokerage: When quoting transporStates Customs and Border Protection Service provides a data- tation costs on a product, the exporter must decide whether base of classification rulings that are helpful in applying the small package shipping or trucking is the most economical way guidelines for classification at CROSS (http://rulings.cbp.gov/). to enter Canada. Small package shipping is for non-palletized Admittedly, these resources require a basic understanding shipments generally weighing less than 70 pounds per piece. of the harmonized rules of classification. Guessing what the UPS and FedEx offer ground and express services to Canada. average duty a Canadian importer might expect to pay is not Purolator — the largest Canadian Carrier — and DHL also offer recommended. A knowledgeable consultant such as a US or good service to Canada. For shipments larger than 200 pounds, Canadian Customs broker can help interpret this information palletized shipments or weekly consolidated shipments, truckwith regard to your products considered for export to Canada. ing to Canada is a better option.
Duties and Taxes: Once a harmonized number has been assigned to your products, you can look each item up to identify whether duties will be applied to your sales price to Canada. In general, duties to Canada vary from 0 to about 10% on products that are not produced in the US. Products that are produced in the US and meet the requirements of the North American Free Trade Agreement (NAFTA) can enter Canada duty-free but not tax-free. If your goods are manufactured in the US and appear to qualify for NAFTA, employing an expert to ensure that you have all the documentation in place is recommended. The goods and services tax (GST) applied to most goods exported to Canada is five percent of the sales price plus the duty. Some provinces of Canada, such as Ontario and
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Some Canadian brokers offer clearance at the border and discounted small package rates with Canadian small package carriers for distribution. Customs clearance fees are usually included in express small package services but vary between approximately $40 and $100 per shipment, depending on the number of classifications involved and the value of the goods. Truck shipments to Canada are assigned an entry number referred to as the PARS number. One entry per bill of lading destination is a requirement of the Canadian import regulations.
NRI: Canadian import regulations allow for a US exporter to become a Non-Resident Importer (NRI) into Canada. The value of the NRI program is that it allows the exporter to pay the duties and GST for shipments to Canadian customers and
thereby make only one charge to the shipper for the products being shipped. The basic requirements for the US company are to retain export records including the complete customs clearance documentation (B-3) for seven years after the date of importation. This has been a short summary of the key elements an exporter needs to consider for exporting to Canada. There is a very useful set of reference data provided for helping exporters to Canada provided by the Canada Border Services Agency. It is recommended that all exporters with Canadian clients be aware of the details that go into computing the landed costs for Canadian shipments.
THOMAS M. STANTON, international Analyst, AFMS, LLC can be reached at 503646-8323 or tom.stanton@afms.com.
august 2011 | www.PARCELindustry.com
7
TRANSPORTATION ABCs with Rob
Martinez
Update: 3rd Party Negotiator vs. FedEx & UPS An important court battle that impacts parcel shippers continues to take shape in US District Court. As reported in PARCEL in October 2010 (“FedEx & UPS Policies Regarding Third Party Consultants: The Facts”), AFMS, LLC (“AFMS”), a parcel consulting firm based in Portland, Oregon, filed antitrust complaints against FedEx Corp. (“FedEx”) and United Parcel Service Corp. (“UPS”). Nearly a year later, the case was nearly dismissed before AFMS filed a second amended complaint, and the lawsuit is now headed to jury trial. Before I get into the details of the second amended complaint, let me provide some context. The lawsuit is the result of UPS and FedEx’s 2010 policies not to participate in bids or rate negotiations that involve third party negotiators (3PNs) like AFMS. Now the subject of an ongoing Department of Justice investigation, the allegations of collusion submitted by the Plaintiff raised quite a few eyebrows within the shipping community. For instance, both FedEx and UPS on the very same day released internal memos to its respective sales divisions that new policies had been implemented to circumvent 3PN participation. You read that correctly: Two arch rivals — FedEx and UPS — issued very similar policies. On the same day (April 23, 2010). UPS’s internal memorandum is entitled “Procedures for Interacting with Third Party Negotiators and UPS Customers.” Released on the same day, the FedEx memo is entitled “Third Party Consultant Rules of Engagement for Field Sales.” (Since these are documents now in the public domain due to the lawsuit, I will make available copies of the AFMS complaint as well as FedEx and UPS internal memos. Email address following article.) The AFMS complaint contends that “the competitive impact of either FedEx or UPS unilaterally terminating its dealings with third party consultants was so significant that neither company would have dared to give the other such a huge potential competitive advantage/opportunity without an understanding that both would terminate dealings with third party consultants at or about the same time — as they did.” In other words, if UPS refused to work with 3PNs, but FedEx would continue to do so, FedEx would have an enormous advantage in that it would likely be the beneficiary of any bid with only one bidder participating. Therefore, the only way 8
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UPS could move forward with that policy was if it was guaranteed that its rival would also do so. The complaint includes several examples of testimony and/ or documents evidence wherein the defendants were in fact aware of the other’s intention to exclude 3PNs. So why would two rivals work in concert to cut out 3PNs from participating in contract negotiations with its customers? The AFMS complaint argues that carriers colluded to avoid revenue dilution. The lawsuit cites statistics from a Morgan Stanley “Shipper Best Practices Survey” and calculates that shippers that use 3PN expertise collectively have the potential to reduce costs as much as $2 billion/year. In our analysis, the top six 3PNs alone force UPS and FedEx to take actual revenue dilution of $250 million annually. UPS and FedEx deny it’s about margin, but rather, they claim their representatives are best qualified to discuss rates and other value added solutions. The carriers also claim it’s about protecting shippers from improperly disclosing rate and contract information to outside parties. However, what’s good for the goose is rarely good for the gander. Has your UPS rep ever asked you for a copy of your FedEx rates (or vice versa)? So much for rate confidentiality. FedEx and UPS filed motions to dismiss the claims arguing that in order for AFMS to allege antitrust violations, AFMS would have to do the same business of delivering letters and packages, and further prove that UPS and FedEx monopolistically violated the law, resulting in lost profits and/or market share in the business of delivering letters and packages. And of course, AFMS and other 3PNs don’t deliver packages, but rather offer consulting services to parcel shippers. As a result, the court granted dismissal motions on May 27, 2011. However, AFMS filed and served its second amended complaint on June 27, 2011. This time, and at the judge’s suggestion, AFMS redefined the “relevant market” as consultation services – as opposed to shipping services. The legal refinement in the second amended complaint redefines the market and thereby validates antitrust allegations within the context of the law: FedEx and UPS consultants and representatives use their market dominance to exclude other
consultants from the market place, especially when those outside consultants threaten gross profit margins. In other words, UPS and FedEx want customers to heed their consulting advice – which is always to use their own services at healthy profit margins – at the exclusion of other industry consultants including 3PNs. Plaintiffs argue that’s a form of price fixing (count one). In total, AFMS’s second amended complaint cites five violations of antitrust law. Counts two and three argue that FedEx and UPS are selectively asking shippers to sign non-disclosure agreements that unreasonably restrain competition. Counts four and five allege that FedEx and UPS are engaged in a plan to achieve or maintain monopoly power. Plaintiffs request a jury trial and argue the following injury at UPS and FedEx antitrust actions:
Suppressed competition among and between FedEx and UPS Diminished freedom of choice for shippers Suppressed competition among and between third party consultants
Shippers are forced to pay higher prices So the case marches onward with a trial date scheduled for February 2012. Plaintiffs and defendants will be jockeying the rest of the year in preparation for trial (discovery, depositions, witness preparation, etc.). PARCEL and Shipware will continue to follow this case closely and report on significant developments. In the meantime, contact me to receive copies of the legal filings and court rulings on this case, or to further discuss the UPS and FedEx policies regarding 3PNs. p
Rob MaRtinez MQC, CMDSS is President & CEO of Shipware, LLC. He welcomes comments and experiences from shippers, carriers and other 3PNs, and can be reached at 858-400-7471 Ext 114 or rob@shipware.com.
august 2011 | www.PARCELindustry.com
9
Parcel PersPectives with Peter
Starvaski
Summer Six Pack
What better time than the summer to consider a six pack? No, I’m not talking about your mid-section, but the top six considerations for investigating a packing application. For the purposes of this article, a ‘packing application’ is not a mechanical device that facilitates the creation of a custom box and associated packing materials. There are some very interesting technologies out there that do this; I’ve seen huge sheets of corrugated cardboard sitting next to impressive machines that create custom boxes on-demand. However, for this article, I am discussing software that facilitates the shipment of complicated parcel deliveries. What are complicated parcel deliveries? They are shipments that require more than a basic carrier label and manifest. Additional labeling and documentation are required. The data elements required for that documentation complicates the process. A generic, US domestic shipment going UPS, FedEx or USPS has no requirements to provide details on the content of the shipment. They tell you what is allowed, and it’s up to you to follow the rules. Shipping software is usually tightly integrated into back-end ERP and WMS systems. The integration allows for automated data transfer between the applications. For many shippers, this is simply moving the recipient information into the shipping application. Weight is read from a scale, and the shipping software produces a compliant label and manifest. However, if you are shipping any type of regulated commodity (pharmaceuticals, hazardous goods, etc.) or if you are shipping international (or both), then the paperwork (both hard and soft documentation) can start to become cumbersome. This is especially true in a high-volume shipping operation. So how do we get your shipping operation in shape? Complex shipping documents and labels require details about the contents of the container. A world-class shipping application will provide for this capability through a front-end packing module.
Here are six areas to consider in creating an efficient, shipping operation that may have complex data requirements, through the use of a packing module with your shipping software. Item Master Data — Does the application provide the ability to augment the data from your order entry system? Most agencies require more than a description. Harmonized Tariff Codes are mandatory for AES filing and Customs, and the producer and the Export ID is required for any Certificates of Origin (required for any free trade agreements). Additionally, serial numbers, lot numbers and expiration dates can also be required depending on the commodity. Those are just a few examples of data elements that can be required. In order to not have shippers entering in manual data, an Item Master can augment the information from the order entry system and decrease the amount of manual data entry. Multiple Box Hierarchy — Quite simply, this is the capability of putting a box in a box in a box (etc.). The first box may actually be a fiber board box, the second level may be putting those on pallets, and the third level may be putting those pallets in an ocean container. A good packing application will provide for these work flows and maintain the connections between the levels so that any item’s location is known at any point in the shipping process. Multiple Label and Documentation Events — This is related to the previous bullet. A packing application needs to create a variety of labels and documents. A good packing application will allow the selection of those labels and/or documents and their quantity on ‘container complete’ or ‘pallet complete’ or ‘shipment complete.’ Allowing this type of configuration as a setting based on either customers or commodities will allow for handling multiple work flows and allow the packing/shipping process to modify as needed when new customers, commodities or geographies are added. API — Packing is an interactive process. Generally, an order is brought up on a screen and a warehouse employee is interacting with a screen to denote what items are go-
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ing into a container. An Application Programming Interface (API) is often used when an application is ‘black box’ and there is no interaction with a user interface. So why should a Packing Application need an API? Not all packing operations can be done in front of a PC. Remote tablets, RF devices and other mobile devices may need to be employed in the warehouse. At a minimum these devices need to be able to populate the compliant forms and labels and an API or some integration capability is required to facilitate that process. Packing Tolerances — While expensive and regulated commodities need to have specific amounts of the items denoted on the documentation; some companies also ship inexpensive items or replacement parts. Often these items are in a bulk container in the warehouse and the time it would take to open the bulk packaging and count individual items is not cost effective. Therefore the items are shipped and fulfilled to a tolerance of the amount requested. For instance, 1600 specialty screws may be packed in pouches of five dozen pieces. Rather than open a pouch and put individual screws back on the shelf, the
order will ship in the closest multiple of 60 that meets an agreed to tolerance for the order of 1500. Multiple Work Flows — Although the packing application needs to support the complex data elements and be able to support myriad domestic and international documentation, some-times the shipping department is also processing simpler items. Take for instance an order of 100 card tables, where each will ship domestically as an individual container. The ability to highlight that entire order and ‘fast pack’ with one click of a mouse is a time saving work-flow.
That last point is important: make sure the software can handle your complex data elements, but not at the cost of burdening the simpler work flows. It would be like buying a lot of high end workout equipment for your home gym, but not having enough space to sit down and do a few sit-ups! p
peter starvaski has over 10 years in the parcel shipping industry and is a recognized industry expert in parcel shipping, having authored numerous articles and whitepapers. He is currently Director, Product Management for Kewill’s Shipping Products.
august 2011 | www.PARCELindustry.com
11
SURVEY
reGIONal ALTERNATIVES with Rob
Shirley and Jared Oakley
RESULTS
Command and Control Survey — Results The Results are in and may surprise you!
Wide spread of input from respondents on these
In last month’s PARCEL, our readers were challenged with, two points: “Looking for your input in order to provide information on exactly how the supply chain is working for you in today’s environment.” We have the most upside potential for cost savings on our To gain a more complete picture of what is occurring within inbound traffic the supply chain, I have teamed up with an individual that is Observation: The supply chain runs both ways, inbound pursuing a PhD in Marketing and Supply Chain to create a surand outbound. If your focus has been primarily on outvey for shippers, carriers and logistics providers. bound, look at your supply chain before you receive The results have been reported and tallied; you will find them freight. You can receive a pre-alert on the sku numbers of both interesting and useful in running your business. While all freight, by carrier and delivery date. Would this let your the numbers are not large enough to be statistically significustomer service department take orders they are rejectcant as indicative of the entire industry (estimated to be over ing because they are “out of stock”? Probably yes. More $3.5 trillion globally), we do believe it provides a foundation importantly, you can control the cost of freight and do not to understand what some of the biggest issues are and where have to pay “prepay and add,” which is beneficial to your your organization may be able to utilize technological change vendors, not you. to improve service and bottom-line. The 10 questions and your input naturally fit into four categories: The new dimensional weight formula for parcel and express had a big effect on our cost Observation: The inconsistent responses reveal that this The majority of respondents disagree with these change is not having universal application. If you are two points: affected, look into it deeply with your carrier, packaging provider, distribution center location(s) and automation. We use a Transportation Management Solution (TMS) for logisThere is money being left on the table, and your customers tics cost control may now buy from your competition. Observation: TMS is the power behind third-party logistics solutions and generally the mechanism used to reduce cost and justify the margins the 3PL needs to perform. Using Generally neutral (middle zone) answers from TMS or preferably real-time data to measure, negotiate, respondents on these two points: adjust and manage has proven to be an excellent path to increase quality and reduce cost — this deserves maximum The support from our Information Technology department (IT) is consideration, especially if not using a 3PL. sufficient to manage our supply chain Observation: If this surprises you because you are not For LTL, we still utilize CzarLite rather than another negotiated price receiving adequate support, give this article to your head of Observation: Reading between the lines, the survey is tellIT to encourage a discussion. If you are receiving great suping us that strong shippers realize that CzarLite is not the port, thank them! best rate schedule and other options should be considered. A telling detail is that 65% of LTL/TL freight documents are Our major supply chain is being utilized to squeeze lower prices often manually completed. Automation lets you “Manage to benefit one of the partners what You Measure” – Very big opportunity here to use a sinObservation: This does not appear to be an issue at this time. gular system, based on data for trucking, to spend a lot less.
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The majority agree that they are managing their network well with these tools: •
The dashboard we use lets us recognize and correct exceptions • We are below our projected quarterly budget with regards to transportation spend Observation: This one is surprising and impressive! Our distribution centers are managed to centralized and measurable controls Observation: Is enough flex built in so your distribution centers can use a great regional carrier for service and cost improvements?
With today’s market still exhibiting an extremely slow recovery, it is an excellent time to review where you are in terms of service and profit and make some well-targeted changes as needed. You might consider placing your bonus MBO (Management by Objectives) into the mix to demonstrate success. Information is power; your best information is real and usable data. p
rOB sHirLeY is President of ExpresShip, a strategic technology partner in the global supply chain. Contact rsXPship@gmail.com. JareD OakLeY is a PhD candidate at The University of Memphis. His email is JJOak98@yahoo.com.
august 2011 | www.PARCELindustry.com
13
SHIP RIGHT with Elizabeth
Lombard
Three Fundamental Actions to Take in Preparation for the Holiday Shipping Season This is the calm before the storm. The fast-approaching holiday shipping season has all the markings to match the extreme weather the US has experienced since the brutal snowfalls of the last holiday season. According to a recent Forbes Magazine article, shopping online is about to explode. Online businesses, as well as brick and mortar ones, are setting up to catch the biggest piece of the consumer buy as possible. Competition is expected to increase among merchants as businesses not in the ecommerce niche find ways to integrate into the online space. The momentum matters to small retailers and e-tailers for whom access to even just a small percentage of the buying activity in peak season can determine if they sink, swim or dog-paddle. Now more in tune with shopping patterns and consumer preferences, many retailers — including e-tailers — are expanding product offerings, adding free shipping and beginning to reach out to customers through social media. The season promises to be both hectic and competitive for those who are in the game. To be among the successful, you need to ensure you are in an optimum state of preparedness. Here are a number of things you must consider or evaluate to ensure your business comes out on top.
department, look to leverage solutions that maximize carrier selection. Carriers would not only include the “big two,” but also regional carriers, local couriers and the Postal Service. For businesses that offer free shipping, carrier selection and, specifically, service levels within carriers, becomes even more critical. Shippers need to find an acceptable balance in meeting the delivery expectations of the recipient against the carrier costs. For small-volume shippers, online shipping and postage solutions can help better manage costs and speed package processing. These shipping solutions allow you to ship directly from your business or home office and can save a small business a significant amount in annual postage costs by leveraging USPS discounts and commercial pricing versus paying the retail price you would otherwise pay at the counter. Web-based shipping solutions also allow you to access reporting and tracking details from wherever you are, adding another level of convenience. You can take advantage of free package pickup at your location when using Priority or Express Mail. For retailers/e-tailers and businesses that must manage the return of packages, the package return process not only plays a critical role in inventory management, but also in customer satisfaction. For example, certain shoppers may be more Evaluate Processes Ask yourself: Are your outbound and inbound (return options) likely to do business with a retailer if there is a “no hassle, processes functioning as efficiently as possible? Or, are there free returns” policy. There are multiple vendors that assist bottlenecks that can negatively impact cash flow or hinder businesses with their return package processing, as well as communications? Relative to outbound package processes, carriers that offer return options and the USPS, which offers the most effective systems are those that seamlessly inte- parcel return and merchandise return services. grate functions including order entry, shipping, and invoicing and customer service. Integrated systems link order man- Evaluate Shipments agement and ship requests to the shipping department, get- Package size can have a huge impact on shipping costs. ting packages processed and the invoices generated more Sometimes shippers limit their package/box options simply to quickly. Integration also enables more effective communica- reduce inventory management issues associated with ordering tion through message alerts and email, thus enhancing cus- and storing cartons and boxes. Or perhaps they re-use boxes. tomer satisfaction while reducing customer inquiries. However, the drawback to such practices is that larger boxes, those exceeding a cubic foot or three cubic feet depending To remain competitive and/or to simply better manage on the carrier or service level, can have a drastic impact on expenditures, even if you apply shipping and handling fees shipping costs. So if you currently fill boxes with all sorts of to your invoices or charge-back shipping costs to another peanuts, paper or bubble-wrap to prevent shifting of contents,
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consider having a larger inventory of containers and boxes, for “just right” packaging. An appropriately sized box could make the difference between general freight calculation and that which is subject to higher dimensional weight rating. And to improve the processing of those packages, pre-measure and clearly identify the dimensions of the boxes. Where possible, using USPS Flat Rate packaging saves the cost of boxes and simplifies calculating postage. To further mitigate shipping expenditures, evaluate the service levels of your shipments. Consider other potentially more cost-effective options, such as ground vs. next day. In fact, in many cases for regional deliveries, packages shipped via ground service are delivered next day. When “next day” is a must, consider afternoon or end-of-day service levels. Consider USPS services such as Priority Mail for Thursday and Friday shipments as they’ll most likely reach their destination by Monday. And depending on the contents, when low-cost is more important than delivery time, consider USPS Package Services options such as Bound Printed Matter, Media Mail or Parcel Post for qualifying, non-personal items. As part of evaluating shipments, be certain to analyze your carrier invoices. Identify all charges and fees beyond the actual freight, such as residential surcharges, address error fees, etc. Look for solutions that can identify surcharges upfront so that your invoices to customers is accurate. Seek solutions that validate an address for accuracy. This may reduce address error fees as well as improve the delivery time of your customers’ packages.
Confer with Providers You don’t have to go at this alone. Seek the expertise of your service providers. For example, look to shipping solution partners for strategies and technology to avoid those extra costs and improve your shipping operations. Work with your carrier providers or a third-party consultant to assess your invoices and perhaps identify other shipping service options. Talk to the Postal Service. The USPS continues to offer new, innovative shipping options to meet shippers of all sizes. p
bE PrEParEd Here are important actions to take in the next 30 days: #1. Assess your shipping processes (Are they as streamlined and efficient as they can be? Do your processes enable you to make informed shipping decisions?) #2. Understand the package details of your shipments (Reduce package size when able; combine shipments to the same location as overall costs may be lower.) #3. Fully understand your carrier invoices and overall shipping spend. Leverage the expertise of your shipping partners, those being your technology solutions providers, your carriers and the USPS. Doing this will allow you to make informed decisions and improvements before the holidays. And lest we forget, your assessment will also better position you to identify the impact of the 2012 carrier rate increases… but that’s a topic for another day.
ElizabEth lombard Manager, Postal-Carrier and Certifications, Pitney Bowes Inc. Contact Elizabeth at elizabeth.lombard@pb.com
august 2011 | www.PARCELindustry.com
15
PACKAGING with Dennis
Salazar
How Your Packaging Can Help You Eliminate Oversized Shipping Charges Oversized shipping charges can prove very costly in dollars and even in terms of customers, especially when they are unexpected. On our own e-commerce site, we try to bundle products together in an effort to minimize shipping costs for our customers. However, occasionally an order gets out the door that exceeds the maximum 130” overall girth plus length limitation, resulting in a $50 oversize charge from our carrier. What bothers us most about these expensive charges is that in most cases, they are completely unnecessary. By combining a little packaging expertise with minimal packer training, many of these charges can be skillfully avoided with three simple steps.
Review the Void Fill Being Used “We’ve been using the same void fill forever” is a statement I’ve heard many times. It doesn’t matter if the packaging product being used is foam peanuts or inflatable pillows; quite often, more void fill is used than is truly necessary because the wrong void fill is being used for the application. Loose fill (flowable) products are especially vulnerable to overuse and, in some cases, we meet people using shipping boxes that are 20-30% larger than absolutely necessary because their packers were trained to place two to four inches of cushioning material under, over and around the product being shipped. In most cases, that is overkill and completely unnecessary. By comparison, molded pulp requires minimal head space so the cushioning and void fill you use can make a huge difference in box size. Last year alone, we added four new void fill materials to our lineup, so don’t assume what you are currently using is the most effective or the most economical if you suffer oversized package charges.
Reduce Box Sizes “Right sizing” is a good idea when a packer uses boxes that are larger than they truly need to be. In most cases, we find it is not the packer’s fault because the correct size box is simply not on hand or available. The situation is usually created by well-meaning inventory managers or packaging suppliers who consolidate box sizes to reduce packaging SKUs or even to make room at cramped
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packing stations. This is something we ourselves suggest at times but it is a recommendation we never make casually or without a thorough review of how the current box sizes are being used. For example, if a 20” tall box is stocked but only really necessary 10% of the time, it would indicate the packer may be over sizing his boxes on 90% of his orders. “We do it to avoid having to buy two different height boxes” is the usual response when we ask why. A situation like the one described more than justifies having two different size boxes on hand. For example, perhaps the best combination is utilizing a 17’1/2” high custom box for the majority and a taller 20’ stock box for their taller, occasional need. Keep in mind using smaller boxes whenever possible also means using less void fill and less tape to seal them.
Repack and/or Redesign to the Maximum Allowable Dimensions A favorite truism in shipping is “one package is always less expense to ship compared to shipping two.” That unfortunately is not true when you tack on a hefty oversized package fee. The fact is that in some cases, redesigning the package and shipping two smaller packages can actually result in a savings. Recently, a client asked us to help redesign his current twelve-pack of extremely long product to bring it under the maximum allowable, penalty-free, dimensions. We helped him create a new six-pack and were able to prove that even with the additional box cost included, the overall cost savings will be substantial. You can see that a lot of these problems and costs are a result of internal processes not keeping up with external changes such as new packaging products or new shipping charges. I repeat and am rarely proven wrong — if you are packaging the same way, using the same products as you were two years ago, you are probably leaving money on the table. p
Dennis sAlAzAr is president and co-founder of Salazar Packaging, Inc. and one of the most prolific writers in the area of sustainable packaging. Contact him at dennis@salazarpackaging.com.
Practical IT with Hiram
Knickerbocker
Improving Online Security There is no surefire, 100% safe way to ensure security online. However, there are several simple things that can be done to improve your security and provide a disaster recovery plan if your information is hacked.
Default Passwords Are Bad Many people use the default passwords that come with their equipment. Change them immediately when you receive phones, security systems, computers or new bank cards. Use the Alpha codes on your keypad to make the password memorable for your use but nonsensical to any unauthorized users. Changing these passwords vary by device so check with the user manual or contact technical support to find instructions on how to change these passwords.
Change Passwords on a Regular Basis Most businesses require passwords be changed on a regularly scheduled basis and automatically inform the user when their password is about to expire. This is a good idea to take into your personal Internet use. Set a calendar reminder on the scheduling application of your choice to change your online passwords on a regular schedule. This can limit exposure should your password be breached as you may have already changed the password.
Create Strong Passwords Many workplaces require that passwords change regularly and there may be rules for complexity (Upper Case, Lower Case, Number and Special Characters). The first step in securing online access is to assess your passwords and look for easy to guess passwords such as phone numbers, child names, birthdates or pet names. Use a spreadsheet to inventory all of your common websites, usernames and passwords as stage one of securing your online world. Once the inventory is complete its time to create a secure password. You can generate a new password logic that will provide a sufficiently complex password with some variation with each website. Pick a phrase or saying that you can easily remember such as “Forty-two, The ultimate answer to the ultimate question.” Change any number words in the phrase to digits and capitalize important words. Condense the phrase by using the first letter of each word or syllable This would be 42UAttUQ
Replace several letters with special characters (such as :!,@,#,$,%,^,&,*,(,),~,{, and ]) basically any of the nonAlphanumeric keys on your keyboard !42UQttU? Ensure that your new password meets the security requirements discussed earlier and is memorable. You may need to store your password in a secure location until you memorize it.
Use a Password Manager Password managers, which are used for managing, updating and assisting in developing strong passwords, are a great resource for a user struggling with remembering password. There are several password managers available. Some examples are: KeePass (http://keepass.info/) 1Password (http://bit.ly/pSFlHO) LastPass (http://bit.ly/rjHoAZ)
Website Applications In addition to securing your passwords also make sure that you take care what functionality you allow on social media sites such as Facebook. It is very easy to have an inadvertent click of the mouse result in spam or potentially malicious links going to your “Friends” or contacts so exercise care when clicking on any link that looks suspicious. Within Facebook, users should also regularly check and audit the list of approved “Applications” or Third Party Plugins in use to make sure that you have granted access to only those sites you wish to have access to your online presence. To audit your approved applications go to: http://www.facebook.com/help/settings/?tab=privacy#!/settings/?tab=privacy Choose the “Edit your Settings” link under the apps and Websites section Click on the “Edit Settings” Link under Apps you use Change any settings or remove unwanted apps as needed. You can adjust many of your settings in Facebook to improve security which I’ll address in another article in the near future on securing your online profile.p
Hiram KnicKerbocKer is an Implementation Engineer and IT Coordinator for PITT OHIO GROUND. Contact him at hknickerbocker@pittohio.com or 412.232.3015 x6493. august 2011 | www.PARCELindustry.com
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MASTERING MANAGEMENT with Mark
Taylor
Leaders Guide to Building Stable Working Relationships Seventy-one percent of your employees are not engaged in their work. They are simply showing up and putting in the minimum effort to get by and not get fired. A 2010 survey by Towers Perrin of 90,000 employees found that only 29% of employees are engaged. Let’s face it; most of our working relationships are ineffective. John King and Dave Logan concluded after a 10- year, 24,000-person study that 75% of our corporate cultures are ineffective (published as Tribal Leadership 2008). The good news is that it doesn’t have to be that way. One of the great insights of their research was that the 24% of organizations that were effective had one major difference — they met in “triads.” A triad, at its most basic level, is three people that meet together. The objective is to create a peer-topeer-to-peer relationship for accomplishing a mutual purpose. Triads are based on core values and mutual self-interest.
1. Form a Triad
3. Set the Ground Rules In business, everybody has a “trump” card. The Chief Information Officer (CIO) controls the information (and PC support), and the CFO has the budget. In typical working relationships, we hold back information. What would it be like if everybody just threw their trump card out there on the table? The ante to get into the game of being in relationship with each other is to give up your trump card. Then, it will be even. Successful triads stay in the question, “What is working and what is not working?” This is different from what is right or wrong or good or bad. King says to move forward, we have to give something up. In my experience, I had to give up being right, give up being in control, give up looking good, and give up my desire to get the credit. “Effective triading requires a word that we heard people use again and again: authenticity.” Authenticity is being real with one another. It is transparency and speaking the naked truth without fear of looking bad or holding back out of fear of rejection. It is a way of being with one another, where the intention is always to come from contribution and not ego. Each person takes responsibility for the quality of the relationship between the other two and consciously nurtures the relationship.
First, put three people together and set the context. The leader starts with a conversation that we’re going to a different model that is going to be collaborative. She may say something like, “I’m interested in creating a new model for us to work together. The next level of success is going to require a different style, one that requires the three of us to work together as partners. 4. Establish Roles We’re going to have to figure out how to do this and we’re going There are three roles in the triad: speaker, listener and observer. to make mistakes; there will be times that we step on each oth- The observer is looking for value being passed between the er’s toes. We have a lot to gain by working through this. This is speaker and the listener. For example, in one of the triad meetnot about me; it’s about us.” ings I was in, the speaker, Bob, showed the other two members At this point, talk about what’s in it for us to work together. his design for a new brochure and asked for feedback. The lisThis is the “why we’re doing this” conversation, the big pic- tener, Charles, said that he felt it lacked pizzazz. Bob said he ture or common interest for the group. When I put three CEOs disagreed and became defensive. As the observer, I brought together our common interest is to become better leaders, make up our purpose to help one another with honest feedback and better decisions and get better results in our organizations. asked Bob if he was feeling defensive; I invited him to listen to Charles’ assessment as a valuable contribution. Bob was able 2. Connect on a Human Level to shift his interpretation and move to taking action. As human beings, we want to feel connected to one another The triad provides a space where the listener may see a blind before we let our guard down. It helps to begin by having each spot and take on a new perspective. The roles are constantly member share something about themselves. I ask each per- changing — each person is going from speaker to listener to son to share their core value and a story that explains why that observer. Triads are peer-to-peer-to-peer relationships. Each value became so important. The question could be, “What are member may momentarily take the leadership role, but it is three of your most important values that guide your decision like a flock of geese, where each goose takes turns leading. making and life?” This act of each person sharing helps the Each person in the triad steps in when it is appropriate and members to feel more comfortable with each other. they have something to contribute. 18
August 2011 | www.PARCELindustry.com
5. Stabilize Triad through Conflicts Finally, deal with breakdowns. Typically, in a relationship, we think we need to talk to the other person rather than speak to the strength of the relationship between the other two. In triads, we are interested in what’s happening in the dynamic between the other two. When people are in conflict they are of diminished capacity. When you use triads to solve problems, remind people of shared values. Values lead to alignment, which trumps any disagreement. King says, “Values are only manifest when they are called and they are only called when they are missing; when the value is missing, the anchor presences the value.” An anchor is a device that is used to connect a vessel to prevent it from drifting due to wind or current. In a triad, the anchor connects each person to their values in order to prevent the relationship from drifting. Each person is an anchor for the quality of the relationship between the other two. Let me provide an illustration. John, Dave and I are in a triad. As the anchor, I am responsible for the relationship between Dave and John. If there is something qualitative that has disappeared or diminished that I see between the two, it is my role to speak up. One of my core values is contribution. Let’s say I hear John say something to Dave, and see that Dave gets defensive and starts to make an excuse or justification. As the anchor of the relationship between the two of them, I speak up and say to Dave that he may not be hearing the contribution that John is offering him. My experience is that many times, a simple “pointing out” statement can make all the difference for Dave to open and see his defensiveness, or a blind spot that he may have. It takes more than one mind to move a mind. In summary, these five steps will get you started in the creation of stable effective partnerships. You will experience that it is working when things become easy and whatever you’re doing comes naturally. Your triad will get along fluidly with each other and you will be in a state of “flow” or what some people call being “in the zone.” Your results and productivity will be three to five times greater. You will get more done in less time. Your triad will feel a sense of purpose and meaning. King and Logan found that “Triading brings together a group of people that can accomplish the nearly impossible: the history-making performance.” p
marK taYlor delivers workshops, keynotes and retreats for companies that want to facilitate corporate change based on the models and processes of Tribal Leadership. Mark holds an MBA, is certified coach, and Approved Tribal Leader. Visit his blog, www.vistagenyc.com or contact him at 212-867-5849 or mark.taylor@vistage.com. August 2011 | www.PARCELindustry.com
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Managing Parcel Carrier Costs with Automation Here are six most popular automation strategies — which one works for you? By Mike Parrilli
H
igh-volume parcel shippers have used complex and customized automation strategies to help reduce costs in their supply chain for many years. What’s new today is that many of these strategies are now cost-effective options for small and midsized shippers because standardized software exists for these functions. We have picked six of the most popular automation strategies to discuss with you today.
Parcel Bundling Depending on the size and weight of the parcels being shipped, combining items together can save you money. For example, the XYZ Fan Company located in Chicago, IL has an order to ship 12 fans to a customer in Dallas, TX. Each of these fans weighs three pounds and has dimensions of 12 inches by 14 inches by four inches. What is the optimum way to ship these fans using standard UPS Ground commercial packaging rules? To save on shipping cost, should you ship these as individual packages or should you bundle some of these fans together? If bundling indeed saves you money, then what combination of bundling should be used to ship these fans? Computing the correct answer to this question could take you a lot of time. Besides comparing all the combinations of weightbased cost, you also need to consider the dimensional rules of the carrier. For example, if this shipment were to be sent UPS Ground domestic and the cubic size of any of the bundled packages was 5,184 inches or larger, you would need to divide the 20
august 2011 | www.PARCELindustry.com
cubic size by 166 to determine if the dimensional weight was greater than the actual weight. If, however, the cubic size of a bundled package was less than 5,184 inches, then the actual weight of the package would be used. Bundling software takes the individual package information, applies the correct carrier rules and runs through all of the possible bundling combinations to determine which items should be bundled together. This answer provides you with the lowest cost to ship these products and also tells you which items should be bundled together.
Containerization Parcel bundling works well for items that come in their own containers, but what about the shipper that has multiple items that need to be packed together into a box? This is where the strategy of containerization comes into play. Containerization looks at dimensions and weight of each item on the order and then determines the number of boxes, the size of each box and which items to pack into each box so that your freight costs are optimized. Once items are assigned to a box, another opportunity appears. Since you can predict the box size and weight, you can now consider printing carrier shipping labels before the box is even filled. You might then choose to pre-label the box and pick directly into the container. Containerization not only saves you money on freight, it can also allow you to increase your picking efficiency and eliminate the need to weigh, rate and label your boxes at operator controlled shipping stations.
Many people believe that having the ability to accurately Weight Auditing predict freight costs at the time the order is taken can make If increasing shipping accuracy is on your list of things to do, the customer order experience better. If making your customer maybe you should consider weight auditing software. Weight order experience better is high on your list, then aligning how auditing software allows you to compare the system generated you charge freight to customers with actual freight costs may weight for all items in a box with the actual weight coming in from make sense. The problem here is that because of the complex- an electronic scale. During the shipping process, if a box is out of ity of calculating actual freight charges many companies adopt tolerance a warning message is displayed prompting the shipper a freight policy that charges freight based on the dollar value to inspect the package contents. After inspection additional inforof the order. Charging freight based on the dollar value of an mation is entered into the system indicating the reason for the order doesn’t always work. If a customer was to order expen- weight discrepancy. Was the order incorrectly picked or is there sive lightweight items, the high cost of the freight may make inaccurate item weight? Capturing this type of information allows it appear like you are overcharging them for the freight. These you to monitor and improve the quality and efficiency of your order issues can be avoided if you can use freight quoting software processing systems and generate substantial savings. that has the ability to determine how items will be packaged. Containerization software facilitates you being able to calcu- Contract Services late freight cost so that actual freight cost can be presented to Parcel carriers now offer many contract services that could your customer. This can be easily integrated within any order bring value to your company. So what is a contract service? It is a carrier service that requires an agreement to be signed in management system or within a website shopping cart. order to be utilized. In the past, many of these contract services were only being offered to large shippers but today we Carrier Selection Rules for determining the best way to ship something to a cus- see carriers expanding these to the small and mid-sized shiptomer can mean a lot of different things and it isn’t always per. A good example of this would be contract services for resibased just upon the lowest cost. It might be transit time or the dential delivery. Companies that ship to residential addresses ability to predict a delivery date. It could depend on who is will now find most carriers have a contract service option that paying for the freight. If you are paying the freight, you might uses the USPS for the last leg of the delivery to residential select a different carrier than if your customer is paying the addresses. Compared to the USPS, the cost of delivery to resifreight. There might be geographic considerations for select- dential addresses has always been much higher for other caring the right carrier. How about weight considerations? You riers because they don’t have delivery density into residential might even want some way to assign preference or service lev- areas. The Postal Service, on the other hand, visits every resiels to help determine the optimal carrier. As you can see, rout- dential address six times per week and there is very little increing guides can be very complex and based upon many different mental cost to add a small parcel to the normal mail delivery. That’s why most carriers have partnered with the USPS and scenarios. Historically, these rules are either written down and in a file somewhere or in someone’s head. I have met many now offer a contract service for residential delivery that allows shipping managers that were proud to tell me they had every- the Postal Service to do the final leg of delivery for them. This thing in their head. The problem is what happens when they allows them to offer better shipping rates to their customers and are not around? What if they decide to leave or have to leave? still capture some profit. This new contract service that utilizes Imagine the stress created by having to keep all of this infor- the USPS for the last leg of the delivery is most likely less profitmation in your head. The best way to optimize carrier selec- able for your carrier than their normal ground residential service tion and reduce stress in your organization is through carrier where they control the final leg of delivery. So why are carriers selection software. Software that will not only help you reduce offering contract services that replace more profitable services freight costs but will make the process of selecting carriers a they now offer? Well, if your carrier isn’t offering you a reliable much better experience for your company and your employees. and cost-competitive delivery option for shipping to residential addresses, maybe the next carrier that walks in your door will. Software to automate contract services for residential delivery International Shipping Expanding into international markets is often difficult for small is readily available and generally inexpensive. The one thing we and mid-sized companies because of the cost and the com- feel sure you can count on is that carriers will continue to offer plexity of moving goods across international borders. Customs more contract services to the small and mid-sized shippers as requirements for paperwork, electronic filing requirements and they continue to sharpen their competitive razor. consolidation to reduce processing costs are often large barriers for companies trying to enter into international markets. Here is a quick gut check for you: Is your international ship- Mike Parrilli is Vice President of Sales at Varsity Logistics, Inc. and has over ping process as easy as your domestic shipping process? If not, 20 years experience in the parcel shipping software industry. Since his arrival then maybe it’s time to consider international shipping soft- at Varsity in 2001, Mike has helped Varsity become the leading supplier of ware that can produce the right documents, electronically file transportation management software in the IBM i, iSeries / AS/400 space. Mike with customs and consolidate shipments so you can cross bor- can be contacted at mparrilli@varsitynet.com. ders cost-effectively and efficiently. august 2011 | www.PARCELindustry.com
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PARCEL COUNSEl with Brent
Wm. Primus, J.D.
Claims for Concealed Damage: An Overview In this installment of PARCEL Counsel, we will explore the FedEx Freight West, Inc., two members of the FedEx corporate topic of claims for loss or damage to cargo when the loss or family, are licensed motor carriers who also participate in the damage is not noted on a delivery receipt by the consignee NMFC. (See Fundamental Legal Differences within UPS and while the carrier is still at the point of destination. Thus, the FedEx, PARCEL Counsel, February 2010.) carrier’s driver leaves with what is colloquially referred to as a Accordingly, the first such rule we will consider is Item “clear proof of delivery” or “clean delivery receipt.” 300135 of the NMFC: Reporting Concealed Damage. It reads There can be a variety of factual scenarios when this can in relevant part as follows: occur — a trailer is dropped off to be unloaded later, a shrink“When damage to contents of a shipping container is discovwrapped pallet is not broken down, or even just a single pack- ered by the consignee which could not have been determined age that is not immediately opened. Then, later, a shortage is at time of delivery it must be reported by the consignee to the discovered or the contents are found to be damaged. delivering carrier upon discovery and a request for inspection The claims that are subsequently filed to recover for the loss by the carrier’s representative made…If more than fifteen days have come to be categorized as ones for “concealed damage,” pass between date of delivery of shipment by carrier and date that is, damage that is concealed from the view of the receiving of report of loss or damage, and request for inspection by condock worker (or delivering driver) at the time of delivery. To the signee, it is incumbent upon the consignee to offer reasonbest of my knowledge, there is no statute or regulation which able evidence to the carrier’s representative when inspection is defines “concealed damage.” Nor am I aware of any federal made that loss or damage was not incurred by the consignee statute or regulation prescribing special or distinct procedures after delivery of shipment by carrier…” for the processing and settling of claims for concealed damage. The significance of this is that in order to successfully recover a However, shippers must be very aware of the fact that many claim filed after the 15-day period for shipments subject to this carriers have established tariff rules or have included terms provision, the claimant has an extra burden of proof. The claimant and conditions in their service guide which do distinguish always has the burden to prove the condition of the goods at oriclaims for concealed damage from claims for non-concealed gin and destination. When this requirement of the NMFC applies, damage. Generally speaking, such terms or rules define a the claimant also needs to prove that no damage occurred after claim for concealed damage to be one where there is no dam- the time of delivery and while in the possession of the consignee. age noted or described on the delivery receipt. For instance, the claim documentation could include a writFrom the point of view of a shipper or receiver of parcel ten statement by a person having actual knowledge of the facts freight, concealed damage is an inherent and inevitable com- to show that the shortage or damage did in fact exist at the time ponent of today’s distribution system. As volume levels rise, it of delivery. To state the obvious, in situations involving concealed becomes increasingly impractical, if not impossible, to unload damage a claimant could avoid having this extra burden of proof every trailer, break down every pallet and open every package by establishing procedures to inspect incoming freight and parcels at the time of delivery. as soon as possible after receipt so as to allow ample time to report From the carrier’s point of view, claims for concealed dam- the problem and request an inspection within the 15-day period. age are inherently suspect. There is always that nagging suspiIn the next installment of PARCEL Counsel we will continue cion that the damage may have occurred after the carrier had our exploration of this topic with a focus on other time limits completed delivery of the freight — that it was the receiver’s and when and how they apply. forklift that jabbed the package, not the carrier’s forklift at an All for now! p intermediate terminal. Many, but not all, less-than-truckload (LTL) motor carriers participate in what is known as the National Motor Freight BrENt Wm. PrimUS, J.D., Brent Wm. Primus, J.D., is the CEO of Primus Law Office, Classification (NMFC). UPS Ground Freight, Inc., a member P.A., the Senior Editor of transportlawtexts, inc. Previous columns, including those of the UPS corporate family, and FedEx Freight East, Inc. and of William J. Augello, may be found in the “Content Library” on the Parcel website (parcelindustry.com). Your questions are welcome at brent@transportlawtexts.com. 22
august 2011 | www.PARCELindustry.com
Wrap up with Michael
J. Ryan
Times Are Good… Right?
The parcel industry is humming along — the major players (FedEx and UPS) are having great financial years and providing high quality service. This is nirvana… right? The parcel industry has gone through a difficult time and they have maintained their service levels. However, I believe that this could cause some complacency in the market. The domestic air and ground markets are driven by two primary competitors and the USPS that is trying to be the new challenger brand. As a shipper, this is a great time to open your play book and try some new and old ideas. Here is a list of actions that I would recommend that you look into in driving the most value for your small parcel spend:
Network: You need to network with peers in the industry to learn from each other. There are many large companies that are similar to yours and not competitors. Grab a lunch with a neighbor company or attend a local CSCMP local round table session. Benchmark: The parcel carriers don’t like the “B” word. This could expose that you don’t have the best deal. This is very powerful information. Carrier Rep Relationships: Build strong relationships with your carrier reps…they are your voice to the Corporate office. Collaboration: This is a way to enable a win-win situation with the carrier. PARCEL Forum: Attend the Parcel Forum in Chicago on October 24-26, 2011 (www.PARCELForum.com). There are great ideas shared at this event… not to mention the best networking event in the parcel industry. Parcel Consolidators: These companies offer a great solution for B-2-C shipping (UPS Mail Innovations, FedEx Smartpost, DHL Globalmail, Streamlite and Blue Package). Get them in to understand how this solution can add value to your company. Data Analysis: You need to review your spend on a annual basis. This will give you an understanding of where your business has changed and where there may be savings opportunities. If you do not have the tools or skills to do this, then hire a parcel consultant.
Parcel Consultant: There has been a lot of chatter about the consultants but they truly bring value to the table for the shipper. I have not heard from one shipper that has not received the value from the consultant. They are experts in the parcel business. Demand Management Software: If you are not using this technology, then you are overspending. The carriers have made it very easy to ship an overnight package to a next day ground ZIP Code. An educated user should be your goal…all they need is a tool and a little education. Regional Carriers: They provide a unique solution to the right situation. They have made great strides in their service offerings and technology. Please do not use information that you have from five years ago to evaluate them… call them back in. Zone Skipping: This has been around for a long time but I do not see many shippers taking advantage of it. It cost less and is a better service…what are you waiting for? USPS: They are the new “Challenger” brand. They are redefining themselves and offer a solution that is hard to beat. If you are shipping one-to-five pound B-2-C shipments, they should be part of your solution. DHL: They are still a strong international player in the US but it would be great to see them re-enter the domestic overnight business in the US. This would put pressure on the two large players most profitable business which would be good for the US parcel shipper. Bid: Last but not least, keep put your business out to bid on a semi-annual basis… this keeps everyone honest. The parcel industry is experiencing some good times. As a shipper, please use this time to fine tune your own parcel shipping. It is best to do when the carriers are making money. p
Michael J. Ryan is Director, Business Development at DSC Logistics and has been in the parcel industry for over 25 years. He can be reached at 847-3935862 or mike.ryan@dsc-logistics.com.
august 2011 | www.PARCELindustry.com
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a2b Fulfillment, Inc. Strategic SE Location. Low cost shipping options. Leader in Direct to Consumer package delivery.
TOP COMPANIES 2011
a2b Fulfillment, Inc.
Ayal Latz President
As the owner of an independent toy company, Mr. Latz founded a2b Fulfillment, Inc. in 2002 to service the needs of his own and three other small toy companies. In the company’s short ten years, Latz has guided the company from a leased 4,000 square foot micro-operation to its current level today of 180,000 square feet, servicing scores of clients from nearly every consumer and durable goods industry. As a high volume parcel shipper to both consumers and businesses, Latz spearheaded a2b’s Discount Parcel Program. This seeks out creative partnerships and solutions with carriers to achieve the lowest possible transportation cost. Low shipping costs complement a2b’s best-of-breed order fulfillment capabilities. The combination of low shipping costs and low fulfillment costs makes an unbeatable combination. a2b ships thousands of small parcel orders every day from its distribution center outside of Atlanta, GA.
a2b Fulfillment, Inc. provides its clients with industry-low parcel rates. We’re an innovative and progressive 3PL provider of distribution support services including: Order Fulfillment, Warehousing, advanced order management, returns processing, kitting/assembly, customer service, shipping solutions, Canadian fulfillment, shopping cart integration and payment processing. We leverage low cost structure, strategic location, state-of-the art distribution systems, modern and expansive warehouse facilities, carrier relationships and overall logistics expertise to deliver best-of-breed service to our customers. a2b's Discount Parcel initiative provides an alternative to standard ground services that result in an average of 30% savings off of Published Residential rates for packages weighing less than 7 lbs. Nearly 80% of US households can be reached by ground in 2 days or less from our strategic GA location. Your customers’ orders ship out the same day we receive them from you. We’re so confident of this that we offer a SAME DAY SHIP – GUARANTEED OR ITS FREE! offer. Equally important as low shipping rates, a2b also offers flexible storage solutions for both long and short-term programs. Our space is configured to accommodate a variety of product configurations, including standard pallet racking, bulk/high cube, and bin locations. Call about our FREE STORAGE for an Entire Year! promotion. Our “Returns to Profit” Program allows you to reduce the cost of returns by up to 53% versus conventional return programs. a2b uses a Tier One Warehouse Management System (WMS) to control, manage and direct all activities within our facilities. Supported features include Lot/Expiry Control, FIFO/FEFO/LIFO/ LEFO, Back Order Management, and Multiple UOM’s. Our online portal called OpsView provides clients the ability to connect to our operation via the internet in real-time, 24/7, with complete transparency. Our entire suite of notification tools delivers information to our clients proactively. Online and real-time systems enable clients to monitor shipments and inventory. Users also can enroll in a2b's automated e-mail notification system, which delivers information to clients proactively. Are you ready to benefit from low parcel rates? Ensure same day shipping? Obtain FREE STORAGE? Contact us today at Toll Free 866-843-3827 or via email at sales@a2bf.com and let us help move your business from a...2...b!
a2b Fulfillment, Inc. 150 Stewart Parkway Greensboro, GA 30642 866-843-3827 www.a2bf.com sales@a2bf.com
24 august 2011
Looking for a way to reach 34 million consumers? Let Canada Post help. Are you selling or thinking of selling to Canadians online? Ship to them with Canada Post. We deliver to every address in Canada and ensure your customers’ delivery experience is unsurpassed. We offer cross border logistics and e-commerce solutions such as our Borderfree service, and smooth shipping across the border. Plus, we provide your customers with certainty about taxes, duties and shipping charges with a fully landed cost in Canadian funds! Reasons why you should target Canada: We are close, we shop online and Canadians know and trust Canada Post. Canada 80% of Canadians live within 60 miles of the US border 30% of Canadians live in 3 major urban centers (Vancouver – 2.2 m, Toronto – 5.5 m, Montreal – 3.6 m) 75% of Canadians live in 19 areas of 100,000 or more
Canadians 82% of Canadian online shoppers would prefer to buy from Canadian sites BUT nearly half of their purchases are from sites in the US or abroad. Reasons why:* better selection and price more sites higher quality goods and services Canadians who purchase through mail order, telephone or catalogues are also MOST LIKELY to shop online.**
Canada Post
Reaching a market of 34 million is easier than you think. Importing and exporting your goods doesn't need to be overwhelming. With a solid understanding of the process and requirements along with a sound plan you can increase your efficiency, reduce any hassles and improve your bottom line. Canada Post and our market entry specialists make it easy and manageable for you.
Canada Post at a glance Canada Post Corporation is one of the largest federal Crown corporations and one of the largest employers in Canada, employing either directly or through our subsidiaries approximately 71,000 employees (that include subsidiaries Purolator Courier Ltd. and SCI Group Inc. as well as joint venture Innovapost Inc). Our employees deliver approximately 11 billion pieces of mail, parcels and messages each year to some 15 million addresses in urban, rural and remote locations across Canada. Our delivery network continues to grow by approximately 200,000 addresses a year. The Canada Post segment operates the largest retail network in Canada with 6,532 post offices. • • • • •
The Canada Post Group processed 10.8 billion pieces during the 12-month period. Consolidated revenue from operations reached $7.3 billion and consolidated net income totalled $281 million. Canada Post posted a profit for the 15th straight year Canada Post operates the country’s largest transportation and retail networks. It provides Canadians with outstanding delivery, logistics and communications services, and plays a key role in the Canadian economy. Canada Post’s $2-billion modernization program will improve efficiency and productivity, allow us to respond better to changing markets.
Canada Post
To speak to our Canadian market entry specialist, please contact: Scott Brunton 905-688-2615 ext 2001 www.selltocanadians.com Scottc.brunton@canadapost.ca
* Deloitte & Touche and Angus Reid ** CANOE/Pllara Research
TOP COMPANIES 2011
Canada Post has one of the largest retail networks in Canada with over 6,500 Retail Outlets. This accessibility makes it easy & convenient for consumers to pick up parcels that have been carded when they are not home, send outbound shipments and deposit return shipments. In urban areas, our post offices are 1.5 to 2 km apart, and even closer in downtown cores. Eighty-one percent of rural Canadians are within 7.5 km of a post office.
Cass Information Systems
Cass Information Systems
Cass Information Systems, Inc., the leader in freight audit, payment and business intelligence services, combines its 50-plus years of experience in freight bill payment with the most comprehensive parcel audit and payment processing and business analytics in the industry. We provide a full-service parcel shipment offering that includes auditing, general ledger coding down to the charge level, payment and customized business analytics.
Business Analytics Features: • • • • •
Visibility to all accessorial charges, service selection, zone and weight distribution, allowing identification of wasted money on unnecessary service levels or services as well as all the information you would need to negotiate the best contract Packages updated with supplementary charges, giving you the true cost of the package Specialized reporting, such as address corrections, suspect fraudulent package and policy violation to identify persistent problems and take corrective action Manifest reconciliation closing the loop on projected versus actual cost, giving you the feedback you need to update your shipping system to choose the best route Visibility into damaged or lost packages, and visibility into charges and activity by cost center, facility or account number
TOP COMPANIES 2011
Processing & Auditing Features: • • • • • • • • •
Automated general ledger coding with online exception handling Online new account number notification and approval Customized feeds to integrate with your accounting and transportations systems Rate audit including tiered and incentive discounts and accessorials Service failure audit and reporting of exceptions No proof of shipment or delivery auditing Duplicate protection at the invoice, package and package charge levels Account/Meter number validation Recovery of audit overcharges
Contact us today to learn the full potential that Cass Parcel Services offers, and how we can start saving you money on your parcel shipments.
Cass Information Systems, Inc. 13001 Hollenberg Drive Bridgeton, MO 63044 314-506-5500 www.cassparcel.com cass@cassinfo.com
DYMO Endicia
DYMO Endicia provides service options that meet every company or individual’s needs, depending on its mailing or shipping volumes, from no monthly fee services to a complete web service for printing postage-paid shipping labels to print customized postage with their logos, images, or pictures. DYMO Endicia’s functionality includes discounted Delivery Confirmation service and Signature Confirmation service, discounted Endicia Parcel Insurance, Stealth Postage and pre-filled customs forms. DYMO Endicia is part of Newell Rubbermaid’s Global Technology Solutions, comprised of solutions that provide businesses, educational institutions, and consumers with innovative and easy ways to share, manage and organize information with improved efficiency and satisfaction.
Software Features Include: • • • • • • • •
Easy software integration Batch processing Bulk acceptance SCAN Simplified international shipping Pre-paid shipping labels Package tracking Automated address validation and correction Detailed delivery statistics and online reports
DYMO Endicia
Amine Khechfe
Amine Khechfe is Co-Founder and General Manager for DYMO Endicia. In his capacity, Amine is responsible for directing all aspects of the DYMO Endicia business unit as well as managing its position within the Newell Rubbermaid Technology Global Business Unit. Under his leadership, DYMO Endicia has grown dramatically and broadened its offerings while maintaining its culture of strong innovation. Amine co-founded DYMO Endicia in 1987 and has held a variety of management roles in engineering, management consulting, software development, marketing, business development and sales engineering – spanning his career. Amine is a regular speaker at several industry tradeshows both in the U.S. and internationally, user conferences and academic settings. Mr. Khechfe earned a Bachelor of Science degree in Engineering from Worcester Polytechnic Institute and a Master of Science in Engineering from Stanford University. Amine is fluent in Arabic and conversant in French.
385 Sherman Ave. Palo Alto, CA 94306 800-576-3279 x140 sales@endicia.com www.endicia.com
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DYMO Endicia
Co-Founder & General Manager, DYMO Endicia
TOP COMPANIES 2011
An approved vendor of the U.S. Postal Service, DYMO Endicia Postage Technologies provides trusted, convenient and affordable online shipping and mailing solutions. DYMO Endicia is the leader in Internet Postage with over $6 billion in postage printed and more than 25 years of industry experience. DYMO Endicia lets users print postage with just a computer, printer, and an Internet connection. DYMO Endicia’s PC and Mac applications allow users to print postage and shipping labels for all domestic and International mail classes that can be purchased at the Post Office retail counter, including delivery to military (APO/FPO) addresses and PO Boxes. This allows customers to take advantage of all Postal Service benefits and significant online postage discounts, without disrupting fulfillment workflow.
Engineering Innovations
Engineering Innovations Think About the Box • Sort your parcels. It’s EZ! • Cubic Pricing with Auto Dimensioning • Take advantage of new Postal Rates • Small footprint, quick ROI
Specialists in postage savings solutions for mailers of all sizes, Engineering Innovation Inc. (EII) offers solutions for all types of mail including Letters, Flats, and Parcels. EII is best known as the creator of the EZ-Flats manifesting system that simplifies presorting flats for Automation discounts. In the last three years, EII has rounded out its product offerings to include solutions for letters and parcels. EII combines more than 30 years of mailroom experience with over 20 years of postal automation design experience to develop solutions that work for mailers of all sizes. EII’s mission is to develop practical products that work in the real-world and to provide service after the sale that is second to none. EII solutions include The CHAMP tabletop manifesting system for generating postal savings on a variety of mail, EZ-Flats for getting maximum discounts on Flat mail, EZ-Letters optimizes letter processing in a small footprint, and the revolutionary EZ-Parcels automatically processes USPS parcels. In line with EII’s commitment to provide the mailing industry with cost effective solutions for maximizing postage savings, these systems open up new savings/revenue opportunities for presorting companies, corporate mailers, government offices and shippers. EII’s mailing systems enable manifesting of Commercial First Class Flats, First Class Parcels, Priority Mail (including Commercial Plus and Cubic rates), Bound Printed Matter Parcels and Flats, and Standard Parcels and Flats, Media mail, Library mail, and Parcel Post.
TOP COMPANIES 2011
EII equipment works in conjunction with EZ-Confirm.com to completely automate mail preparation and tracking for parcels that require tracking. All equipment includes options for Wide Area Barcode Reader, UMove Move Update processes, processing International Mail and processing Inbound Mail.
Engineering Innovations
526 N. Earl Ave. West Lafayette, IN 47906 765-807-0699 www.eii-online.com sales@eii-online.com
EXPAK Logistics
Who we are: America’s leading technology-based expedited parcel distribution company. What we do: Through our extensive network of transportation providers, EXPAK Logistics can create maximum efficiencies for the greatest value. How we do it: With a primary focus on the highest levels of service EXPAK Logistics finds the best partners for every aspect of a customer’s specifications for distribution. What makes us stand out from the rest? Relationships: EXPAK Logistics builds relationships and creates partnerships with clients providing the highest level of service and communication. Solutions: EXPAK Logistics has complete focus, understanding and knowledge to consistently deliver positive results and solutions. Technology: EXPAK Logistics utilizes state-of-the-art technology with efficiency, flexibility and optimization in building your expedited parcel distribution solution. Our method to your success: EXPAK Logistics incorporates the following elements into our operations plan: State-of-the-art communications Excellent reporting systems and database technology Real-time track and trace, plus computerized route manifests On-site management of all routes, shuttle departures and key delivery points Dedicated customer service and operations support Customized service and rate plans Smart simple analytical tools and reporting metrics Highly specialized start-up oversight teams. EXPAK Logistics would like to be your parcel distribution management company… and we know you will be pleased with the results.
EXPAK Logistics
SVP Business Development EXPAK Logistics was formed in 2003 with the goal to provide customtailored expedited parcel distribution services. Our focus has been to create simplified and flexible nextday delivery solutions throughout the United States.
EXPAK Logistics
We place an emphasis on excellence and customer service with flexible custom-tailored solutions to meet your needs. With no weight reporting necessary, no special packaging, no size reporting and simplified billing and pricing, we make it easy. Our team of sales consultants, operational management and IT will tailor, together with you, the most cost-efficient, effective and flexible solution for your parcel distribution needs.
Steve Schmidt
Our goal is to provide our customers and partners with enhanced service, performance and technology ensuring the ultimate customer experience at an affordable price. Today, we provide service to many Fortune 1000 companies for their parcel distribution solutions. We achieve this goal by investing in our people, smart technology, reporting and facilities. Our expert team of transportation specialists is focused on delivering exceptional customer results and will do everything to make sure the EXPAK solution is the BEST in the industry. If you are looking for a ground parcel distribution solution that is simplified, flexible and is focused on delivering high-quality service at cost-effective prices, please give us an opportunity to show you what we can do. Thank you!
1841 Monetary Lane, Suite 130 Carrollton, TX 75006 800-401-4648 www.expaklogistics.com
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TOP COMPANIES 2011
Since 2003, EXPAK Logistics has grown to be the choice of many large companies for their ground parcel distribution business needs. EXPAK Logistics allows you to capitalize on excellent, simplified and flexible next-day delivery over the entire US at a competitive or reduced rate to what you currently pay for ground.
Green Mountain Consulting
TOP COMPANIES 2011
Green Mountain Consulting
Parcel Spend Management Experts
Jim Jacobs Executive Vice President, Chief Marketing Officer Jim is a founding partner with Green Mountain Consulting (GMC) and has over 17 years of experience in sales, marketing, and business development as well as 18 years of experience in the transportation and logistics industry. He is a native Memphian and holds a BBA from the University of Memphis. Jim joined GMC in 1998 as Executive Vice President where he has helped establish GMC as a leader in the parcel industry. Jim has led the development of Green Mountain’s Parcel Spend Management concept, which provides superior audit & freight payment services as the foundation for delivering customized parcel spend management solutions to the largest parcel shippers in the world. Under his leadership, GMC has been able to partner with the following companies to help them save an average of 17% of their parcel spend: Abercrombie & Fitch, AT&T, Barnes & Noble, and General Motors, Glaxo Smith Kline, Johnson & Johnson, McKesson, Novartis, Toyota, Toys R Us, and Williams Sonoma. EVP Jim Jacobs explains Green Mountain’s unique approach to Parcel Spend Management in this video interview with Supply Chain Brain. Click here to view the interview: (http://www.supplychainbrain.com/ content/headline-news/single-article/ article/parcel-spend-managementsolutions/)
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Green Mountain Consulting (GMC) was founded in 1998 by former FedEx developers with over 70 years of collective experience in the area of carrier EDI automation and billing operations. GMC has evolved from a sole parcel freight audit and payment services provider to a company that specializes in delivering comprehensive spend management solutions for the largest parcel shippers in the world. Our customers are saving millions of dollars annually by leveraging the technology and experience at GMC to improve their parcel networks. Our Value Proposition: GMC has created a comprehensive parcel spend management solution that leverages our proprietary billing and rerating technology, parcel industry experts and market intelligence to strategically partner with the largest parcel shippers in the world to manage their parcel spend at another level. We partner with our customers’ existing resources, functioning as an extension of their team to manage their carrier invoice processing and payments, analyze and optimize their network, identify waste and inefficiencies, implement and track cost savings, and help them implement world class parcel agreements. Our customers’ net return averages a 20% plus reduction of their parcel spend, with a 300% plus ROI. GMC partners with our customers’ existing resources to strategically manage their parcel spend at an optimum level by leveraging these services: Invoice Automation: EDI parcel invoice receipt, account coding and payment automation Invoice Validation: ensure 100% contractual accuracy of invoices with credit request reconciliation prior to payment (no short paying parcel invoices) Spend Visibility: complete and flexible access to your parcel data at the lowest level of detail to analyze the performance of your parcel network (multiple department or project requirements) Spend Analytics: support strategic initiatives with analytical technology and resources (warehouse reduction/expansion, service level evaluation, product returns, .com breakout, parcel proposal impact) Network Optimization: identify cost and service improvement opportunities within your network (custom evaluation for each client) RFP Management: ensure world class carrier agreements tailored to match your strategy (Client owns the process; GMC provides industry trends/unique strategies/data impact reports)
Green Mountain Consulting
7240 Goodlett Farms Pkwy, Ste 110 Cordova, TN 38016 901-507-9307 877-397-2834 www.greenmountainconsulting.com
Newgistics
Newgistics is committed to working with clients not simply as a shipping provider, but as a business partner. Each partnership starts with a comprehensive business analysis, as Newgistics works with companies to identify new opportunities to save money and improve processes. Newgistics then develops solutions that offer advantages for departments including Operations, Marketing, Customer Service, Finance and IT. The key to these solutions is the rich shipment data that Newgistics provides. With Newgistics’ Transit Triggers shipment notification service, every delivery and return opens up new opportunities for valuable customer touch points. The service also helps companies reduce inbound call-center volume and manage labor and inventory more efficiently. This unique approach to shipping — focusing on more than parcels and pallets — has made Newgistics a recognized leader in residential delivery and returns. And it’s the reason shipping has a new home.
Chairman & CEO
Bill Razzouk has served as Chief Executive Officer of Newgistics since 2005. As the company continues to demonstrate strong growth, Razzouk emphasizes that every action its employees take must be guided by a shared set of core values. One of the most important is Newgistics’ commitment to excellence in all that it does. Newgistics understands that shipping is vitally important to the success of its clients. The quality of the delivery or returns experience is a key factor in their ability to satisfy — and retain — customers. Shipping solutions should also help companies improve their internal processes, and not only on the operations side, according to Razzouk. “In the marketplace, we are seeing companies place a much higher priority on increasing visibility across their organizations,” Razzouk said. “Newgistics helps our clients achieve that goal. We provide a wealth of shipment data that they can incorporate into their systems to benefit a broad range of departments.”
Newgistics, Inc.
2700 Via Fortuna, Suite 300 Austin, TX 78746 512-225-6000 www.newgistics.com contact@newgistics.com
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Newgistics
Newgistics was founded in 1999 with the simple goal of improving the returns process for online purchases. Soon, Newgistics SmartLabel technology helped pioneer the modern consumer parcel returns industry. Newgistics also collaborated with the U.S. Postal Service to create the Parcel Return Services program. Applying the same quality-driven process and technological expertise, Newgistics then expanded into outbound delivery and freight services. Today, Newgistics provides postal-based shipping solutions through its national network of SmartCenter facilities, which process more than 50 million parcels per year.
Bill Razzouk
TOP COMPANIES 2011
Newgistics is a shipping company that provides small parcel delivery and return solutions. However, Newgistics believes that shipping should go beyond moving boxes between companies and their customers. Newgistics focuses on helping clients use shipment data to enhance the consumer experience, increase repeat business and gain new efficiencies across departments. That’s why Newgistics is trusted by top brands in the retail, mobile device, hightech/electronics, medical device and asset recovery industries.
OnTrac
Mark Magill
OnTrac
Director of Business Development Mark Magill is the Director of Business Development for OnTrac. He helps companies save money, improve delivery transit time and increase productivity. Mark has been in the transportation industry for over 20 years and has worked for OnTrac/ California Overnight for the past 18 years.
TOP COMPANIES 2011
In Mark’s experience, customers today have an expectation of expedited delivery without paying the high costs associated with express shipping services. Regional package delivery companies, like OnTrac, can provide next-day delivery at ground rates to destinations within a 600700 mile radius. Since nearly 70% of shipments stay within that Zone 4 delivery area, this greatly reduces shipping costs while greatly increasing customer satisfaction. OnTrac enables their customers to increase their daily productivity by providing much later pickup times than the national carriers.
OnTrac is the regional leader in overnight package delivery. Founded in 1991 as a division of Express Messenger Services Inc., a same-day courier service, OnTrac has the expertise to provide superior service and value in the overnight delivery market. We deliver to the six largest western states offering time-critical service to California, Arizona, Nevada, Oregon, Washington and Utah. With a delivery coverage area of over 50 million people, our service area is comprised of nearly 20% of the U.S. economy. At OnTrac, we are committed to providing the highest quality of service at the most competitive rates. With fewer accessorial fees than the national delivery companies, we pass the savings on to you. OnTrac can save you money and increase your productivity by improving the transit time of your shipments. With nearly 1,200 conveniently located drop boxes and pickups as late as 9:00 pm in some areas, OnTrac understands the importance of flexibility and operating in time-sensitive environments. We routinely go the extra mile to help get the job done for our customers. OnTrac has a reputation for delivering excellent service and our “can do” attitude is the hallmark of our success. Our money-back service guarantee assures that we are committed to exceeding your expectations. For more information, call 1-800-334-5000 or visit www.ontrac.com.
OnTrac
3401 E. Harbour Dr Phoenix, AZ 85034 1-800-334-5000 www.ontrac.com
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Delivering more than 90 years of innovation, Pitney Bowes provides software, hardware and services that integrate physical and digital communications channels. Long known for making its customers more productive, Pitney Bowes is increasingly helping other companies grow their business through advanced customer communications management. Pitney Bowes is a $5.4 billion company and employs more than 30,000 worldwide. Pitney Bowes: Every connection is a new opportunity. .
Pitney Bowes
Pitney Bowes, Inc
Introducing SendSuite Live. SendSuite Live Global Logistics Management solution is a browser-based platform that’s perfect for shippers who want to move small parcel, freight, inbound, international, and multi-pack shipments more effectively. SendSuite Live is part of Pitney Bowes’ new family of powerful web-based shipping technologies, which includes pbSmartPostage, which allows shippers to ship packages and print stamps from any internet connection, anywhere.
SendSuite Live also provides payment services, which simplifies and streamlines customers shipping related payments by bringing parcel, freight, and transportation management services into one statement, eliminating the need to manage multiple invoices. Shippers have the option to pay in full — or over time — adding greater flexibility and control to their cash flow. Pitney Bowes knows logistics. And with SendSuite Live, organizations will drive down transportation spend, create better visibility to their entire operation and have more control to make better business decisions.
Pitney Bowes, Inc 1 Elmcroft Road Stamford, CT. 06926 sendsuiteliveinfo@pb.com
TOP COMPANIES 2011
SendSuite Live gives you access to carriers’ rates and services, allowing you to optimize your shipments based on your business rules and delivery requirements. It captures information from all carriers in one location, featuring a centralized interface to managing your entire shipping operation, and provides full, upfront visibility to all shipping expenses, including surcharges – and provides the tools to avoid or minimize them. SendSuite Live integrates to CRM, ERP, WMS, and order management systems to give you the ability to plan, route, and manage your supply chain — simplifying order fulfillment.
Transportation Impact
TOP COMPANIES 2011
Transportation Impact
Transportation Impact is an industry leader in contract benchmarking, distribution analysis and carrier negotiations. Under the company’s counsel, clients are able to negotiate world-class, market-competitive contracts with small parcel carriers.
Doug Starcke Managing Partner Doug held several sales positions during his career with UPS. His responsibilities included the negotiation of small parcel rate agreements and analyzing client business processes. Doug’s ability to develop custom solutions helped reduce operational bottlenecks, streamlined procedures and reduced overall cost. As Managing Partner at Transportation Impact, Doug is part of an elite team of former UPS and FedEx senior management and sales executives. Together, they offer broad expertise in negotiating small parcel rate agreements, invoice auditing, reporting and optimization, helping improve business processes while reducing escalating costs in this niche area of the supply chain. The TI team provides unmatched leverage for its clients, driving positive, measurable results.
The industry has evolved dramatically in recent years, resulting in increasingly dynamic parcel contracts with major carriers. TI draws insight, knowledge and information from a staff composed largely of former senior sales and pricing managers at UPS and FedEx. The company’s unparalleled experience empowers clients in today’s competitive small parcel shipping environment. Transportation Impact is well-versed in the ebb and flow of the industry, and specializes in easing the burden placed on its clients due to rising transportation costs across the board – to the tune of 15% annual savings. When it comes to realizing savings that exist in the market, there’s simply nobody better. “Initially, I partnered with Transportation Impact to audit my small package shipments. The service failures they discovered have resulted in a new revenue stream for our company. I have been able to use the supporting data during my annual negotiations with competing carriers. Additionally, TI served as an expert consultant to assist in these negotiations. The entire TI team is very professional and always available to help. Their robust systems are very user-friendly. Even if you are currently using an audit company, I would strongly suggest that you investigate the scope of services that Transportation Impact offers and the many positive ways that they can positively IMPACT your business.” Charlie DeSio | Director of Operations | www.RockBottomGolf.com | 757.686.5604 “We have renegotiated better rates a number of times, but always feared that we could have done better. Transportation Impact provided the expertise to find savings by identifying where there were additional opportunities and developed a negotiation strategy that fit our style and needs while guiding us step-by-step through the process. They produced a result exactly as they estimated and beyond our original expectations. I highly recommend Transportation Impact as a professional organization and especially for their attention to detail, timely attentive service, negotiation expertise and knowledge of the small package delivery area. Transportation Impact achieved savings we were unable to achieve on our own.” John Ridgway | Executive Vice President | Zoysia Farms/The Shelburne Company | www.zoysiafarms.com | 410.876.5913 Transportation Impact offers performance-based Post Audit Recovery and Negotiation services that have resulted in tens of millions of dollars in savings since the company was founded in 2008.
Transportation Impact PO Box 4758, 8002 Emerald Drive, STE B, Emerald Isle, NC 28594 252-764-2885 www.TransportationImpact.com dstarcke@transportationimpact.com
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TranzAct Technologies TranzAct helps shippers reduce their transportation spend by providing the tools necessary to remain in control. Make better business decisions on an ongoing basis with TranzAct.
Comprehensive research and the latest innovations drive TranzAct’s industry-leading StarPay. Thoughtful, flexible capabilities go well beyond today’s commoditized “off the shelf” solutions to give you a true long-term advantage when it comes to freight payment and auditing. Parcel Audit Arm yourself with accurate, intelligent reporting that will enable you to see the details. Where most parcel audits focus on identifying nickels and dimes, we provide you with information that can help. TranzAct’s parcel audit solution delivers your parcel invoice data in a format that allows you to quickly determine where or if you can reduce accessorial charges by identifying practice improvement opportunities and review information that may lead to instant refunds.
TranzAct Technologies
Freight Payment Our flexible, full-service freight audit and payment solution supports numerous companies from small-sized to Fortune 100 shippers. Our customers benefit from accurate payment of their freight invoices, online shipment visibility, automated integration, and powerful reporting software that translates meaningful data into actionable savings opportunities.
Benefit from TranzAct’s parcel audit process that provides a ‘Watchdog’ approach and receive accurate processing and timely payment of your parcel invoices; precise allocation of charges to general ledger account codes; duplicate payment protection; enhanced visibility of cost reduction opportunities such as address corrections, proper identification of commercial versus residential and manual BOLs; and identification of ways to control cost through consulting such as an Annual Rate Increase Impact review. Multi-Modal Advantage In addition to freight audit and payment services, TranzAct helps large LTL shippers directly reduce their transportation spend through its sourcing and spend management solution. For the small to medium-sized LTL shipper, our turnkey Freedom Logistics program bundles our freight audit & payment services, rating and routing software, and sustainable savings through the best national and regional carriers across the country.
Let us help drive costs out of your supply chain with our advanced parcel distribution techniques. We apply a proven six step methodology that ensures you will have an accurate, comprehensive assessment as well as additional leverage in conversations and negotiations with your vendors. High End Technology TranzAct’s web-based modular StarSuite tools provide shippers with detailed visibility and effective reporting, as well as assistance in managing initial planning and execution. These proprietary software packages address your needs through every stage of logistics and can be integrated into your existing accounting and transportation systems. July - August 2011 35
TranzAct Technologies
360 W Butterfield Road, Suite 400 Elmhurst, IL 60126 630-833-0890 www.tranzact.com | www.tranzactinside.com solutions@tranzact.com
TOP COMPANIES 2011
TranzAct provides a reliable safety net for truckload shippers including our proven RFP process, our Capacity and Service Solutions division for last-minute, seasonal or hard-to-move loads, and our shipment management center which offers additional bench strength for your staff.
WMSi OUR HISTORY WMSi was originally founded on the single principle of providing our customers superior products and professional services for warehouse automation in the mid-market space. The foundation of WMSi's success is the ability to simplify, integrate and scale solutions based on the size of organization and complexity of the requirements. Through its flagship software, ShippingLive and WMS software projects, WMSi has delivered over 400 highly successful warehouse deployments for companies such Porteous Fasteners, Brightstar, and Siemens Medical. "At WMSi, we believe our solutions set the stage for the next generation of integration into ERP and Supply Chain systems for the mid-market," says Bob Knapic, CEO of WMSi. With our deep knowledge and experience we have quickly become the favorite among the Microsoft, SAP and Sage customer base.
OUR MISSION
WMSi
WMSi is committed to: • Providing a superior experience for our clients • Respecting the client’s business objectives and concerns • Approaching each and every opportunity with integrity and honesty • Developing long-lasting relationships
OUR PRODUCTS & SERVICES ShippingLIVE! •ShippingLIVE! is a complete shipping management solution based on Microsoft .net technologies tightly integrated with Microsoft Dynamics, SAP and other ERP platforms. ShippingLIVE! is the most comprehensive, feature rich, modular based multi-carrier Shipping Execution System on the market today. Because ShippingLIVE! is a modular system, you don’t pay for functionality that you don’t need. All of ShippingLIVE!’s functions can be fully “Lights Out” or partially automated depending on your specific needs. Take a tour of our website to see all the incredible functionality offered by the leader in Shipping Execution, WMSi.
Cloud9express Software Cloud9express provides the only enterprise quality automated shipping rate shopping aggregation platform offered from the cloud. Cloud9express is a revolutionary approach to help companies maximize their business opportunities through supply chain shipping efficiencies. By providing a low-cost, high-value, simple to deploy / simple to integrate with back end systems solution, Cloud9Express is rapidly becoming the next generation standard for mid-market companies. Although all clients will benefit, the ideal customer is the one who wants to save operating expenses by automating shipping decisions, lowering overall costs of logistics needs, reduce manual intervention and simplify integration at a very low cost, all completed with little or no customization.
TOP COMPANIES 2011
Our Services: SUPPLY CHaIN STRaTEgY Addresses how the supply chain is aligned with strategic objectives and builds a business case for change. • Strategic Planning • Outsourcing Strategy and 3PL Relationships • Logistics Network Strategy • Operational Assessments • Systems Assessment and Upgrade • Replacement Strategies
DESIgN aND RE-ENgINEERINg Creates processes and supporting technology to operationalize a supply chain strategy. PROCESS: • Plant or Warehouse Layout Design • Inventory Management • Transportation Management TECHNOLOgY: • System Selections • System Integrations
WMSi
www.Wmsinc.net www.Shippinglive.net www.Cloud9express.com
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SYSTEMS IMPLEMENTaTION Proven methodologies with defined scope and predictable costs that empower the client to succeed. • WMS and Shipping Software Implementation • Project Management • Training • Reducing IT Footprint • ERP Integration • BI Interface Dashboard Development • Support