OUR 2015 HOT COMPANIES ISSUE gives you an introduction to some of the top companies servicing the small shipment industry! STARTS ON PAGE 12
FIND THE PERFECT COMPANY TO WORK WITH? NOW YOU NEED AN RFP. PAGE 40
THE EVER-CHANGING WORLD OF OMNI-CHANNEL. PAGE 36
HOW ONE SHIPPER TACKLED THE NEW DIM WEIGHT REQUIREMENTS. PAGE 42
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CONTENTS JULY-AUGUST 2015 | volume 22 | issue 5
Departments 06 Editor’s Note
A New Partner in Your Small Shipment Process
By Amanda Armendariz
07 Supply Chain Pivot Rapid Hot Food Delivery By Rob Shirley
08 Ship Right
Challenge the Norm to Deliver Greater Efficiency
By Christoph Stehmann
09 Spend Perspectives
E-Commerce Cross Border Parcel Shipping — What You Need to Know!
36 Making Strategic Shipping Decisions in an
By John Haber
10 Transportation ABCs
By Davison Schopmeyer
How Do We Find, Train, and Retain The Right Logistics People?
By George Yarusavage
44 Wrap Up
The Cost of Convenience
By Michael J. Ryan
40 Different Strokes for Your RFP
30 How One Warehouse Manager
45 PARCEL Counsel
Revisions to the NMFC that Shippers Need To Know — And Then Avoid: Part II
Overcame the Increased Shipping Charges from the New DIM Weight Charges
Don’t get stuck on the same old questions; make your RFP more effective with these simple tips.
By Brent Wm. Primus, JD
By Wayne Teres
By Will O’Shea
Hot Companies 13 14 15 16 17 18 19 20 4
CT Logistics Datatrac DigitalShipper Eastern Connection Engineering Innovation England Logistics enVista Intelligent Audit
JULY-AUGUST 2015 | www.PARCELindustry.com
21 22 23 24 25 26 27 28
Key Software Systems LaserShip Melissa Data NPI Pitney Bowes PITT Ohio Precision Software Shipware
29 30 31 32 33 34 35
Software Solutions Unlimited Stamps.com TransGuardian U-PIC U.S. Cargo Vitronic Zebra Technologies
audience development manager marketing creative director advertising
[ email@example.com ]
rachel chapman [ firstname.lastname@example.org ]
cierra bauer kelli cooke ken waddell
[ 608.442.5064 ] [ email@example.com ]
PARCEL PARCEL (ISSN 1081-4035) is published 6 times a year by RB Publishing Inc. All material in this magazine is copyrighted 2015 ÂŠ 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. Backissue 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. REPRINTS: For high-quality reprints, please contact our exclusive reprint provider, ReprintPros, 949.702.5390, www.ReprintPros.com.
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EDITOR’S NOTE BY AMANDA ARMENDARIZ
A New Partner in Your Small Shipment Process he small shipment process is a complex one. Every year at our PARCEL Forum, I inevitably find myself chatting with some people who are attending the forum for the first time, and more often than not, it’s because they are relatively new to the industry. Our conversations usually end the same way; a consensus that the logistics industry is not exactly an easy one to navigate! Luckily, there are resources, for both the newcomer and the seasoned pro alike. One of the best resources we can offer is our annual HOT COMPANIES issue, in which we profile some of the most prominent solutions providers in the logistics industry. Scrolling through the pages, you’ll have a better grasp on who these companies are, what they offer, and, hopefully, how you can strike up a partnership. Once you find the perfect company (or companies) to work with, be sure to check out the feature on page 40. Our industry expert, Will O’Shea, gives you the dos and don’ts of writing an RFP, making sure your request is the solid foundation of a strong partnership. And if you haven’t already, don’t forget to register for the 2015 PARCEL Forum, held October 19-21 in Chicago. This is the premier industry event for small shipment professionals; not only do we offer insightful sessions on all aspects of the packaging process (from warehousing, to contract negotiation, to technology), but the exhibit hall floor is a fantastic place to chat with a myriad of solutions providers. Don’t delay; register today! www.PARCELforum.com. As always, thanks for reading PARCEL.
Are you signed up for our e-newsletter? If not, what are you waiting for? As of press time, these were some of our most popular articles from recent e-newsletters: • Supply Chain Efficiencies Help UPS 2015 Q2 Profit Surge • Optimizing Labeling for Today’s Global Supply Chain • Protecting Precious Cargo the High-Tech / Low-Tech Way To get great articles like these emailed to you on a monthly basis, just scan the QR code above, or go to www.PARCELindustry.com and click on the “Newsletter” tab a the top of the page.
Have you signed up for our Thursday’s Tip feature yet? If not, you’re missing out on some great information emailed to you every week! Don’t worry, we know you’re busy, so these tips are brief and easy to read — but yet much-needed information for any transportation professional! All you need to do is sign up for our e-newsletter and you’ll get this information emailed to you the third Thursday of the month (plus an occasional extra one when we have some pressing news!).
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SUPPLY CHAIN PIVOT BY ROB SHIRLEY
Rapid Hot Food Delivery he delivery of food from restaurants is gaining momentum in most major cities. Logistic companies are providing a superior way to service consumers and are allowing restaurants to sell outside of their physical box. This is a subset of the last mile delivery that exists because demand, technology, the shared economy and capitalism have all joined in to serve customers. For years, pizza and, in major metro areas, Chinese food, have offered delivery. Now every restaurant can compete. The number of current players is growing and include: UberEATS, GrubHub, Google Express, Instacart, Deliv, Postmates, Sidecar, Lyft and Favor. I was recently invited to a series of entrepreneurial presentations in Austin and listened to Ben Doherty, CEO and Founder of Favor Delivery. Ben started the business initially in NH four years ago and was the most skilled of the founders by his experience as a pizza delivery driver. He officially launched at Cal Poly in San Luis Obispo, CA delivering beer and burritos. The first month, Tim Draper invested $100k in Favor. Draper founded his firm Draper Fisher Jurvetson Investments in 1985 and has been a highly successful Venture Capitalist in Silicon Valley. DFJ put another $13m investment in Favor this spring. Favor runs from an app on a smart phone that Ben and team have perfected. Favor is headquartered in Austin, recently completed its first 500,000 deliveries and has expanded to Houston, Dallas, Boston, Atlanta, Denver and San
Antonio. Next cities to be added are Indianapolis, Miami and Washington, DC. Ben’s beginning in Austin was rough. He slept in his car the first two nights and only had 17 deliveries a day. Then he sent a text message to 200 Austin contacts and the business took off. Favor calls its drivers Personal Assistants and trains them accordingly. The PAs are measured using the star system similar to what Lyft uses. If a PA can’t earn 4.7 out of 5 stars from customers, they are not invited to clock in.
ing business possibilities that Uber, Lyft and Sidecar have as part of the “shared economy” are tantalizing. These firms experience what we used to call a trough at FedEx between 10:00 am and 2:00 pm, which essentially means the drivers aren’t productive. Will food delivery be a natural trough filler that would begin to open the window for moving almost everything for same day delivery directly to consumers? I have talked separately to a dozen Lyft drivers who all love the idea of dual workloads.
Amazon is considering developing its own app that would offer the opportunity for a broad range of people to deliver packages, perhaps on their way home. Ben clearly perceives the delivery of hot food to be his number one goal. As an aside, it really is something to be in a high tech entrepreneurial office these days. Casual dress is way lighter than business dress (CEO had on flip-flops, shorts & a Favor t-shirt), coffee and food are free, pcs, iPads, mobiles, white boards and sofas are everywhere. GrubHub, Inc. is by far the biggest player in hot food delivery with over 900 US cities and London being served. They list 35,000 restaurants and are listed on the NY Stock Exchange—GRUB. They have grown organically and thru acquisition since 1999. First quarter results grew by 51%. They launched a seamless app to Apple Watch in April. The dual ride sharing and food carry-
Amazon is considering developing its own app that would offer the opportunity for a broad range of people to deliver packages, perhaps on their way home. Meanwhile, back in the business of dimensional weights, UPS is apparently holding the line with customers and is ending discounts for oversize packages. Both of these developments coincide very well with the CEO and Founder of FedEx, Frederick W. Smith’s quote in The Wall Street Journal: “I think there’s just an urban mythology out there that the app somehow changes the basic cost input of the logistics business…That’s just incorrect.” ¾
ROB SHIRLEY is CEO of ExpresShip www.xpship.com, a strategic consultancy in the global supply chain. JULY-AUGUST 2015 | www.PARCELindustry.com
SHIP RIGHT BY CHRISTOPH STEHMANN
Challenge the Norm to Deliver Greater Efficiency often hear managers responsible for shipping and fulfillment operations express frustration that they don’t have the power or support to change. “That’s the way we’ve always done it” is a common expression that I hear. This default setting is enabling inefficient and outdated processes that are rooted in the past to live on far too long. I encourage you to take a fresh look at your shipping environment. With variable rate structures, stringent carrier requirements, and different delivery and pickup schedules, shipping is becoming more and more complex. Also, those managing this critical process often have other responsibilities so it’s no wonder there is a growing feeling of overload. You could also be missing out on opportunities to save money or better serve your customers. The good news is there are many tools and technologies available today that can greatly enhance your shipping and fulfillment operations as the shipping landscape continues to evolve. As a result, now is the time to challenge the norm and consider new ways to drive efficiency, boost productivity, and manage costs. MEETING CUSTOMER EXPECTATIONS In today’s world, customers expect better service, including faster and more flexible delivery options. While businesses are sometimes reluctant to consider changes to their carrier mix, many are finding it imperative to adjust their strategies to respond to customer preferences. After all, shipping matters when it comes to buying 8
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decisions so options for direct and sameday delivery can make a huge difference in building customer loyalty. In addition to major carriers, the USPS and regional carriers, many small- and mid-sized shippers of low-weight parcels are adding local couriers to their delivery mix to increase efficiency and offer sameday delivery for time-sensitive materials. For example, I recently met with a pharmacy in Minneapolis that is using local courier services to help deliver prescriptions to its customers. By adding these services, the pharmacy was able to significantly increase efficiency, improve service levels, decrease shipping delays, and improve overall customer satisfaction and repeat business. If you work with several major carriers, consider using a multi-carrier shipping management system, which can significantly ease the challenges of dealing with multiple providers by automating and managing carrier and service selection. These solutions can streamline processes and increase customer convenience by automating carrier selection for each parcel based on the most up-to-date pricing, service options and business rules. WHAT’S NEXT? Three intriguing delivery methods that could also be game-changers on the way packages are delivered and received: 1. Crowdsourced delivery – Several online retailers and marketplaces are experimenting with mobile applications for crowdsourced delivery that would use services like Uber and Deliv to deliver packages to customers. When online retailers, businesses and other shippers request a pickup electronically, the software can tell which delivery company is nearby with an available driver. Some compa-
nies are even considering using a crowdsourced delivery program that would turn customers into package carriers. In cities like Seattle, Austin and Memphis, Yellow Cab also provides 24hour package delivery services for time sensitive materials. Most delivery orders are performed within one hour from the time of the taxi request. 2. Delivery by drones – The Federal Aviation Administration is working on finalizing proposed rules for small unmanned aircraft systems to deliver packages. The regulations would clear the way for companies like Amazon to use commercial drones to deliver packages less than five pounds in 30-minutes or less. The concept of package delivery by drones will continue evolving over the next year and may shape the future of our distribution and shipping models. 3. Lockers – Some carriers and small businesses like pharmacies, dry cleaners and cafes are also experimenting with lockers or small on-site storage areas that serve as package pick-up points. This would give customers more flexibility to collect their orders and would cut down delivery time and costs for carriers. While these delivery methods may never really challenge traditional major and regional carriers to ship packages, new services and technology are changing every day. As a result, consider new solutions and best practices that can optimize your operations, deliver greater efficiency, and manage costs, all while better meeting the needs of your customers. ¾
CHRISTOPH STEHMANN is Chief Operating Officer, Digital Commerce Solutions, Pitney Bowes.
SPEND PERSPECTIVES BY JOHN HABER
E-Commerce Cross Border Parcel Shipping — What You Need to Know! oday’s booming e-commerce market has presented great opportunities for DHL, FedEx and UPS as well as additional logistics solutions providers. Cross-border e-commerce shipping is one of the greatest opportunities for these organizations. Cross-border buyers are defined as shoppers who deliberately buy retail products outside their domestic market over the Internet. This opportunity is one in which the Boston Consulting Group describes as a way to make the world “flatter” in reference to Thomas Friedman’s bestselling book, The World Is Flat. The Boston Consulting group estimates the global market for cross-border e-commerce to be valued between $250 billion and $350 billion by 2025. Already we’re seeing this tremendous rise take shape in China. According to the country’s State Administration of Foreign Exchange, China’s cross-border e-commerce has reached $3.3 billion since the country began piloting cross-border foreign exchange payments in 2013. Additionally, volumes in the first five months of this year have already matched the volume of the whole of 2014. European cross-border sales are also a huge growth vehicle, with Forrester estimating this market to top $32 billion this year and grow to $45 billion by 2018. Even the United States is experiencing growth in cross-border sales with Canada, Australia and the UK the traditional destinations for US-based retailers. As a result of this opportunity, FedEx
and UPS have each made acquisitions within the past year to boost their capabilities. In late 2014, UPS acquired I-parcel, which according to the press release will “enhance UPS’ ability in cross-border deliveries from the US and UK to more than 100 countries.” FedEx followed suit with the acquisition of Bongo International at the end of 2014. According to Bongo, it has a base of over 2,000 retailers across Europe, the UK and US. At the time of the announcement, Bongo provided cross-border enablement solutions to more than 200 countries worldwide. Likewise, Pitney Bowes entered the fray in May 2015 by announcing the acquisition of Borderfree. With this purchase, Pitney Bowes expands its portfolio of offerings and extends its global reach. Typical services offered by these types of businesses may vary slightly, but range from duty and tax calculations; export compliance management; HS classification; currency conversions; international payment options inclusive of language translation; shopping cart management and fraud protection. One notable offering from I-Parcel enables online shoppers to access British and American websites as though they were shopping within their own country. Once items are sold to consumers overseas, retailers ship them to one of I-Parcel’s hubs in either Los Angeles, Indianapolis, New Jersey or in Surrey, UK. I-Parcel then ships the items overseas via commercial airlines, using local couriers to deliver items over the last mile. Similar approaches are occurring with logistics providers such as SEKO Logisitics. The logistics provider teamed up with Australia Post for the launch of ShopMate, a secure delivery service for
Australian online shoppers that enables them to buy from US retailers who do not ship to Australia. United Arab Emirates-based Aramex also offers its own cross-border solution, Shop and Ship, which is an online shopping delivery service that enables customers around the world to receive purchased goods from US, UK and China online stores. The service is provided in more than 25 countries across the Middle East, Africa, Europe, and Asia. Aramex’s recent 25% stake in Ohio-based WS One Investment is expected to play a major role for US cross-border needs. Retailers contemplating expanding e-commerce sales overseas have much to consider when compared to only selling domestically in the US. Should they pursue an internal solution or take advantage of the growing solutions offered by logistics providers as noted above? Retailers are cautioned to compare costs either way. Aside from an appropriate and functional website to meet local needs, logistics costs such as the service level of international air service, temporary or long-term warehousing and the selection of last mile delivery courier partner or partners should be considered in addition to the cost for customs brokerage and appropriate taxes. ¾
JOHN HABER is the Founder and CEO of Spend Management Experts, a global transportation spend management consulting firm. With nearly two decades of transportation spend management experience, John has helped some of the world’s leading brands drive greater efficiencies through their supply chain operations, while reducing transportation costs by 20% and more. Contact John at firstname.lastname@example.org. JULY-AUGUST 2015 | www.PARCELindustry.com
TRANSPORTATION ABCS BY GEORGE YARUSAVAGE
How Do We Find, Train, and Retain The Right Logistics People? ust about everywhere you turn these days someone has something to say about current and impending supply chain labor shortages. Boeing estimates a global shortage of 533,000 pilots over the next 20 years. The ManpowerGroup 2015 Survey tells us that 32% of US hiring managers report severe talent shortfalls, which rise as high as 61% in Brazil and 83% in Japan. Closer to home, the American Trucking Association in April reported for 2014 that the US was short 35,000 to 40,000 drivers; plus the driver turnover rate was 95% for large truckload carriers, 90% for small ones, and 11% for LTL carriers. And the average driver’s age is “around 50.” But pure numbers are not our only problem. FINDING TALENT The Material Handling Institute & Deloitte in March of this year reported that 54% of CEOs and presidents believe Human Resources is doing an “excellent” or “very good” job of helping meet requirements for supply chain talent, yet in the same study only 28% of their supply chain and logistics personnel feel the same way! Thus the critical gaps aren’t just in people, but also in the skills available. How do we meet these dual challenges? Employers have a number of avenues to pursue: 1. Grow Your Own Talent through mentoring, teaching, training, re-training or cross-training current employees. Or provide expanded responsibilities. A favorite example of this for me is an LTL carrier I know that trains dock10
JULY-AUGUST 2015 | www.PARCELindustry.com
workers as drivers and helps them earn their Commercial Driver’s License, using them for seasonal peaks and promoting permanently from the loading dock to a wheel when needed. The result: this carrier only has to hire new dockworkers, NOT new drivers, thus maintaining their own talent pipeline. 2. Steal From Other Companies by using traditional recruiting tools: search firms, paying more, offering a better environment — and not holding out hoping to find the impossible candidate with 100% of every experience, skill and attribute imaginable — what a friend calls the “Purple Squirrel.” You can also use family and professional relationships to lure staff from other employers. 3. Hire the Young through active university and trade school relationships that could include paid and unpaid internships, industry partnerships, part-time employment, and mentoring programs. 4. Use Nontraditional Sources such as social media job postings, LinkedIn searches, recruitment of recent or soon-to-be ex-military members, seeking out women for traditionally “male” roles (e.g., truck drivers or forklift operators), finding retirees who want to partially or totally “unretired,” hiring part-time consultants, or using a bonus system that rewards current employees who refer potential hires. 5. Use Foreign Companies, which, for example, could become an option with the soon-to-be-granted permission
from the US Department of Transportation to allow Mexican trucking companies haul in the US, now that a three-year test program showed that “… Mexican carrier safety … was … at least as high as American and Canadian counterparts.” 6. Reduce the Need for People through elimination of layers of management, job consolidation, process re-engineering, decision streamlining, empowerment, or additional technology. 7. Buy Other Companies or Outsource anything from limited functions like payroll or billing to complete positions or entire departments. One example often forgotten: Intermodal is a form of outsourcing! TRAINING TALENT Properly training employees throughout their careers should be a given at every company, but for a number of years now employers have been cutting back or eliminating employee training, a short-sighted savings to be sure that hurts the company later when needed skills just aren’t in place. Individuals can fill in some of this gap for their own benefit (and make themselves more valuable to their next employer), but many won’t even pay $25 to $50 to attend a local professional dinner meeting that includes a presentation plus networking with area peers (thus building on the short-sightedness of their non-supportive employers — maybe they deserve each other?). While saying the “company won’t pay” is the common excuse for not attending local events, it’s not a valid one, and not investing in your own self-improvement is at least as great a crime. So whoever pays
for the training, the options available to each of us include: 1. Attending Conferences & Seminars to meet with peers, see how problems and opportunities have been handled at other companies, and learn about the important issues of the day from peers, suppliers, and customers. 2. Joining Professional Organizations which can provide the same benefits as conferences and seminars plus also allow access to a host of industry-related information, job search tips and leads.
through major company operations; cross training; job swapping; vacation backup; eLearning; self-directed use of MOOCs (Massive Open Online Courses); and possibly language and literacy classes (if needed). RETAINING TALENT This should be the easiest leg of the “Find-Train-Retain” triad. But it takes more than just the “money answers” of wages and raises plus performance, training, and sign-on bonuses. It requires a complete package that tells each employee that he or she is (1) important to the company, (2) vital to the company’s
The bottom line: Skilled supply chain people are and will remain in short supply. To get and keep the best, companies must explore every method possible to find, be more efficient with, and appreciative of, the talent available. 3. Pursuing Professional Certifications and Certificates, (but remembering that certifications prove mastery of a body of knowledge, while certificates just confirm attendance). Examples of supply chain organizations that offer certifications include AST&L (DLP, GLA, PLS, CTL); APICS (CPIM, CSCP, CFPIM, SCPR-P); ISM (C.P.M, CPSM, CPSD); and CSCMP (SC Pro 1, 2, 3). If you don’t recognize these acronyms, you are long overdue to research each and pursue those which best support your career goals! 4. In-House Training, which can include simulators (ranging from forklifts to tractor-trailers to railroad engines to aircraft); mentoring of new or younger employees by experienced co-workers; rotational internships
success, and (3) is an asset, not just a cost to be minimized. The typical elements that make a company “the place to stay” include attention to: 1. Working Conditions, which should be comfortable, pleasant and supportive. Workspaces and parking areas must be safe and secure. Workspaces should be free of excess noise, and lighting should be appropriate, not accidental. There should be some amenities — some companies provide free coffee, others add snacks, yet others provide a refrigerator for employee lunches, and/or a discounted or free lunch.
clude at a minimum good medical coverage, wellness programs, family coverage, and continuous training support. 3. Quality of Life Issues, which have gained importance in today’s market. In addition to office conditions, these can include flexible hours, workat-home programs, job sharing for part-timers, flexible vacation policies, and family support programs. 4. Career Pathways, which allow advancement; empowerment; recognition of accomplishments; and learning experiences such as assignment to special projects, cross-training programs, and “occasional supervisor” positions when staff is temporarily expanded to meet spikes in demand. 5. Picking the Right People, because a match to company culture is equally as important as matching the skill set(s) needed. In some companies, some of those right people could be dedicated temporary workers, who have worked in past seasonal activity spikes and are invited back as needed. The bottom line: Skilled supply chain people are and will remain in short supply. To get and keep the best, companies must explore every method possible to find, be more efficient with, and appreciative of, the talent available. Since money is not the only answer, and culture, comfort and having a career path are all important, we must hire the right people who will fit into and be happy with the opportunities available today — and what those opportunities might evolve into. ¾
GEORGE YARUSAVAGE, DLP, CTL, C.P.M. is a principal in Fortress Consulting, LLC, specializing in Transportation, Logistics, and Sourcing issues, education, and training. He can be reached at email@example.com or 203.984.4957.
2. Employee Benefits, which become a competitive advantage when talent is scarce. These days, benefits must inJULY-AUGUST 2015 | www.PARCELindustry.com
2015 HOT COMPANIES
ard to believe we’re almost halfway into August, summer is dwindling down, and students are preparing to head back to school. Where did summer go? Hopefully you all found the opportunity to take some time off and enjoy this wonderful time of year. As we head into fall, however, logistics professionals’ minds are certainly starting to focus on their 2016 plans, which means that our 2015 HOT COMPANIES issue is the perfect one to help you with your future plans. With all of the companies that provide solutions for the small shipment process, it can be rather daunting when trying to decide which company to go with… or even which companies to start a conversation with!
industry. They give you a quick, concise look at who these companies are, what they offer, what their philosophies are when it comes to the organizations they serve, and more. So sit back, take a look, and reach out to those who have the potential to help take your business to the next level.
Luckily the following pages are filled with glimpses into some of the most prominent solution providers in the small shipment
As always, thanks for reading PARCEL.
JULY-AUGUST 2015 | www.PARCELindustry.com
And as a side note, one of the best ways to meet with potential solutions providers is face-to-face, so if you haven’t already, don’t miss your chance to register for the 2015 PARCEL Forum, held October 19-21 in downtown Chicago (www.PARCELforum.com). The exhibit hall floor, with its dedicated, non-compete hours, is an amazing place to peruse the myriad of solutions out there. So get ready for a trip to the Windy City, and I’ll see you there!
PARCEL PUZZLE SOLVED!
CONTACT INFO: COMPANY: CT Logistics
216.267.2000, ext. 2190
EMAIL: PARCEL AUDITS Reduce parcel costs and save money with the industry’s most advanced and comprehensive package audit program. CTrak’s proven benefits include a totally automated, Global audit system that delivers maximized savings.
Customized Accounting Services: CTrak provides automation for general ledger account code allocations for every shipment and visibility of details at the shipment level. Complete automation ensures all pricing conditions & costs are rated including: optional bundled pricing rates, for all countries, for all currencies, including hundred weight pricing and third-party shipments. CT’s Cognos Business Intelligent Reports, Graphs and Dashboards produce effective and efficient management insight into your total freight spend. CONFIDENCE 92 years of experience allows us to create a full range of freight management solutions - all tailored to meet your company’s unique requirements. CT Logistics is one of the preeminent providers of freight payment services and transportation management solutions. CT will work with you by creating customized solutions so that you can focus on your firm/s core competencies -ensuring a quality, efficient, effective and robust supply chain management system for your global needs. TRUST Firms of all sizes, including Fortune 100 corporations across the country and around the globe, rely on CT Logistics to assist them in making solid, informed decisions regarding their freight audit, payment and business intelligence needs. Our team of professionals has been instrumental in assisting our clients in leveraging expertise, technology and best-in-class processes to maximize return on the client’s investment. SOC II and ISO 9001:2008 certified. LEADERSHIP CT Logistics is a leader in the freight payment and transportation management services industry. With FreitRater - the industry’s first choice for freight management and TMS software - and our customized solutions for your global freight payment systems, our AuditPay and TranSaver solutions will exceed your expectations. CT creates customized solutions allowing your firm to focus and maintain a competitive advantage. CONFIDENCE, TRUST AND LEADERSHIP ... TRADITIONS SINCE 1923 All of these attributes are woven into our corporate philosophy, the foundation and tradition that our clients have relied on for 92 years. Just as important, is the future that the CT Logistics team will help you build. Our services and software are evolving to provide you with the latest, leading-edge applications and systems that will enable you to better manage and reduce supply chain costs while adding more visibility and control to your organization, positively impacting your bottom line; that’s our commitment to you.
CONTACT INFO: COMPANY: Datatrac
EMAIL: Developing More than Software For more than three decades, Datatrac has provided carriers, shippers and logistics companies with technology to support mission-critical business systems and processes. Several customer-focused principles guide our technology solutions: 1. 2. 3. 4.
We keep up to date with the most advanced technology and intuitive design elements We leverage the industry expertise of our staff for professional services We engage in collaborative efforts with our strategic partners and customers We provide optimal value at the customer’s desired level of investment
Datatrac empowers carriers and shippers to take control of the supply chain. New Innovative Solutions from Datatrac IPD Mobile connects delivery companies with independent professional drivers who are available for immediate dispatch. Using IPD Mobile’s dispatching application, delivery companies gain instant access to an outside pool of qualified drivers, allowing their businesses to rapidly expand to meet daily demand. Independent Contractors gain access to additional work opportunities through IPD Mobile’s smartphone application. Accounting requirements are managed through IPD Mobile’s settlement process. Ascend is more than a software solution, it’s a new platform that brings speed, agility and functionality to any logistics enterprise, large or small. Ascend is a modular system that interfaces with a full suite of operational products and proprietary systems. No other solution provides Ascend’s depth of scalability, integration or functionality in managing logistics operations. Ranger is a robust application capable of managing the most challenging customer requirements. Visibility is the key functionality of Ranger, and the feature-rich design provides item detail status at every critical milestone, including signature capture and GPS tracking capability for customer-required visibility. Ranger works on a variety of mobile devices and operating systems and integrates with all providers, regardless of platform. Datatrac Provides Consulting Services for Logistics Businesses Our customers benefit from the consultative approach we take with our selling processes. We help our customers understand the cost, risk, strategic importance and return on investments in the IT landscape of their organizations. We assist management in building IT solutions that keep the business agile, responsive and mission-ready for today’s customer environment.
Ship Smarter, Ship Faster
CONTACT INFO: COMPANY: DigitalShipper
EMAIL: Affordable Enterprise Shipping Software DigitalShipper is an industry leader and manufacturer of multi-carrier shipping software, designed to meet the needs for companies of all sizes whether you ship 50 packages or 500,000 packages a day. With over 25 years of integrating solutions for small, medium and large businesses – DigitalShipper delivers affordable enterprise-level software for single shipping locations or multiple distribution points that your company can grow with over time.
Ship with Ease from One Software Application DigitalShipper is the only shipping software you need to handle all of your outbound shipments. Regardless of the carrier, DigitalShipper creates one simple workflow from a single software application that can handle all your Small Parcel, Less Than Truckload (LTL), full Truckload (TL), domestic and international, or a combination of them all. DigitalShipper offers compliant modules for all major carriers – FedEx, UPS, USPS, and DHL. As well as compliant modules for several regional carriers including LSO, Spee-Dee Delivery, OnTrac, Eastern Connection, Pitt-Ohio, and Prestige Delivery Systems. And our enhanced postal solution connects you to Stamps.com or Endicia. Technology-Driven Software for Today and Tomorrow The suite of DigitalShipper Windows-based products is built on Microsoft’s .NET technology platform and through our Web Services, Data Wizard, and standard Plug-in Architecture developers can program custom business rules and automation without having to hire an integration specialist. DigitalShipper’s technology makes it easy to customize your shipping solution to eliminate manual tasks, reduce errors, and significantly improve the overall shipping process. Connecting DigitalShipper to Your Business Systems DigitalShipper provides the most flexibility to seamlessly integrate with existing ERP, OMS, WMS, TMS, and E-Commerce systems to exchange the necessary information for shipping. Whether you have one source or multiple sources of data, DigitalShipper can connect to them all. DigitalShipper fits into all processes of shipping including traditional shipping workstations, pick/pack stations, RF handhelds, in-line conveyor systems, batch/wave fulfillment, and desktop shipping. Shipping Expertise You Can Rely On When you purchase DigitalShipper, not only are you getting a full-featured product, you are also getting the shipping experts behind it. The DigitalShipper team will make sure you benefit from the software’s built-in features and work with you to automate your shipping processes and business rules to maximize the value of your DigitalShipper investment.
CONTACT INFO: COMPANY:
or more than three decades, Eastern Connection has been driven to deliver the most reliable, flexible, and cost-effective shipping and logistics solutions in the industry. We are one of the longest-operating and highly respected carriers with original ownership. We are also one of the largest regional, small-package overnight carriers on the East Coast, covering 6,800 zip codes from Maine to Virginia and extending west into the “Rust Belt.” Based in Cumberland, RI, we have 16 facilities, and we are open 24/7, 365 days a year. Services • Ground • Priority Overnight • Same-Day Rapid Response • Logistics & Warehousing • Expedited Mail • Medical Logistics Accolades • Recognized as “Entrepreneur of the Year” by Inc. Magazine • Recognized for company-wide “green” initiatives • Numerous customer service awards • Numerous customer testimonials • Public service awards from American Heart Association • Widely published in WSJ, Reuters, The Boston Globe, PARCEL and other business and trade journals
Advantages • Later pickups and earlier deliveries • Pricing that is significantly less than the nationals • Flexible, customized solutions • Industry-best efficiency performance rating of 98.6% • Only express parcel service in Northeast that provides next-day ground deliveries by end of day • Superior record for claims damage • Superior Safe-Driver “Modification Factor” • Best-in-class technology that matches or exceeds that of the nationals • Advanced technology systems include bar-coding and real-time scanning; online tracking, tracing, billing, and same-day POD management reports; automated sorting systems; shipping integration systems; and instant communication with drivers • Trademark personalized service, including “over the threshold”
We guarantee better prices and greater flexibility and reliability than the giants. Plus, we are a leader among the carriers in the “super regional” network, combining personalized customer service along with “big-company” sophistication that’s second to none. Contact us today for a free, no-obligation analysis of your shipping needs!
CONTACT INFO: COMPANY: Engineering Innovation
EMAIL: ngineering Innovation, Inc. is dedicated to providing cutting edge solutions that offer maximum postage savings, excellent service and support, and the best of class technology and engineering to our customers.
EII’s parcel solutions include the revolutionary EZ-WorkDesk and EZ-Parcels systems which rapidly process parcels for induction and routing. EZ-WorkDesk provides quick parcel induction capabilities with the lowest initial investment, EZ-Parcels adds greater automation, speed and versatile routing with package diverter sections. Newly added is the EZ Shoe Sorter that combines the best of all data capture (i.e., address, barcode information, dimensions and weight) with the finest parcel transport (to include polybags) in the industry! EII’s parcel solutions products all capture data from the face of the package, weight and dimensions, and apply a shipping label. Our software, as reported by current users, “is second to none!” 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 fulfillment, consolidators, returns package processing, mailers, and shippers. All equipment includes options for Wide Area Barcode Reader, UMove Move Update processes, processing International Mail, and Inbound Mail. 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 volume sizes and mail classes. EII’s mission is to develop very high quality, practical products that work in the real-world. We compliment these great products by providing hardware and software service after the sale designed to ensure our customer’s success.
CONTACT INFO: COMPANY: England Logistics
Established in 1997 and re-launched in 2004, England Logistics has seen significant growth from a group of eight individuals to a team that is set to surpass four hundred employees this year.
England Logistics goes to great lengths to ensure that top tier talent is recruited in every level of England Logistics so its employees and agents can offer full logistics services handling everything from parcel to supply chain management. The freight agent program at England Logistics is a successful team of professionals who deliver reliable, cost-efficient, door-to-door transportation coverage across the country and around the world. It is our vision that England Logistics invests in each agent’s development so his or her experience as an England Logistics’ freight agent is fulfilling and enjoyable. FOR MORE INFORMATION ON BECOMING AN AGENT CALL 866-476-7012 By taking advantage of a reputation and service set offered by no one else, England Logistics freight brokers and agents are able to make more money and grow their business. Some of the unbeatable benefits you’ll have access to as an England Logistics freight broker agent are: • • • • •
Strong brand recognition Diverse service portfolio Financially strong ~ top credit ratings No hidden transaction fees Free Load Boards
• • • • •
Access to over 35,000 carriers Fast customer credit approval Carrier Quick-Pay and fuel advance programs Commissions paid weekly on delivery Complete back office support
The England Logistics Agent group is passionate about and thrives on a forward-thinking vision to drive the innovation of employee-based creative ideas and concepts within a growing company. England Logistics - moving logistics forward. FOR MORE INFORMATION ON BECOMING AN AGENT CALL 866-476-7012 Check us out on our website (www.englandlogistics.com/careers) Follow our team on Facebook (www.facebook.com/englandlogistics.com) Stay up-to-date on logistics news on Linkedin (www.linkedin.com/company/england-logistics) Watch our office in action on Youtube (www.youtube.com/englandlogistics)
CONTACT INFO: COMPANY: enVista
Optimize your global transportation strategy with enVista.
enVista delivers leading transportation spend management services that reduce cost and improve visibility for clients worldwide. enVista’s experienced team of transportation management professionals and former carrier pricing managers bring significant expertise reducing transportation spend and optimizing transportation operations. Services & Solutions: • Global Freight Audit & Payment • Proprietary audit, rating, and GL allocation platform • Carrier Contract Analysis & Negotiation • Managed Operations • Transportation Consulting • Business Intelligence • Capacity Procurement Solutions Expertise: • 1,000+ clients across multiple industries • Robust methodology • Comprehensive multi-lingual, multi-currency implementation capability • Highly experienced team of transportation experts • Inc. 500|5000 fastest growing transportation & logistics company (five consecutive years) Client Testimonial: “enVista has provided significant value to Vera Bradley by identifying service failures and other invalid changes and by working with our carrier to retrieve the appropriate credits. In addition, enVista has given us the visibility to cost savings opportunities and has helped us reduce our annual transportation spend by renegotiating our parcel contract.” - VP Operations, Vera Bradley Improve profitability. Reduce waste. Enhance customer service. www.envistacorp.com | 877.684.7700
Intelligent Audit provides its clients with a global, all-mode transportation audit, recovery, freight payment, and business intelligence reporting partner. Started in 1997, Intelligent Audit has grown from a small parcel audit solution into one of the largest freight auditors in the marketplace today. Recently named the fastest growing company in the Transportation and Logistics industry by Inc. Magazine, Intelligent Audit works to analyze and recover transportation costs on behalf of nearly 2,000 clients across dozens of industries. Freight Audit, Recovery & Payment – Using its proprietary software, Intelligent Audit takes a 360° approach to transportation recovery, meticulously auditing, analyzing and reporting across all modes, locations and systems. Our small parcel audit focuses on 150 audit points, weeding out overcharges due to late shipments, duplicate billing, loss and damage claims, manifested not shipped packages, residential adjustments, address corrections and much more. In doing so, we not only recover your overcharges; we help prevent future overcharges from occurring. Unlike other audit solutions that recover less than 50 percent of entitled refunds, IA recovers 100 percent of overpays, claiming thousands of dollars previously left on the table.
Business Intelligence Reporting - IA has the ability to provide the business intelligence needed for smart business decisions — including carrier choice, proactive mode and service level management, and shipment consolidation, to name a few. IA provides its industry-leading, cloud-based software and services to all of our partners, allowing them to manage both small and large logistic networks 24/7 at no additional cost.
COMPANY: Intelligent Audit
Dedication to Quality and Customer Service - Intelligent Audit continually improves on its best-in-class technology by reinvesting profits into research and design in order to provide clients with an unparalleled mix of analytics and reporting. IA pairs its top-of-the-line technology with an experienced staff of transportation and logistics professionals who offer cost savings expertise and incomparable client service. With the combination of dynamic technology and seasoned staff, Intelligent Audit acts as a true partner and trusted advisor in every client’s business. Perhaps the best part is that IA stands alone in the fact that it is a fully self-¬funded solution, so clients don’t pay until the savings begin.
Scott Langley, President of Global Sales & Strategy Scott Langley brings nearly 30 years of transportation and logistics sales management, supply chain, and software development experience to the team at Intelligent Audit.
Langley has been in the transportation and logistics industry since the day he graduated from Bowling Green University. Prior to IA, Langley worked for UPS and FedEx, held sales positions at Oracle, Manhattan Associates and Intrepa, was a managing partner of nSite Supply Chain Solutions, and contributed to the start up of several supply chain management software companies. With his experience, Langley understands the complicated issues both shippers and carriers face today, and his commitment to finding solutions for shippers remains as strong as the day he entered the business. In addition to his role at Intelligent Audit, Langley is also an active member of the Council of Supply Chain Management Professionals, and this fall, Langley will have speaking engagements at the 2015 PARCEL Forum and CSCMP’s 2015 Annual Conference.
CONTACT INFO: COMPANY: Key Software Systems
ndustry leading software solutions Xcelerator and MobileTek, developed by Key Software Systems, are widely viewed as the most agile final-mile, same-day, and distribution software applications on the market. As an all-in-one, fully customizable software solution, companies in the same day, next day and distribution environment are vastly streamlining their operations, improving communications to customers and their mobile workforce, while expanding market share and widening profit margins. Xcelerator and MobileTek both provide a rich toolset, bringing together on-demand, routed, same-day, next-day, e-commerce, distribution and warehousing workflow into a seamless solution, complimented by unparalleled customer service and support.
Xcelerator brings together all facets of your operations to maximize your company’s existing resources, by automating the flow of time sensitive information to and from your customers and carrier partners. Xcelerator software includes dispatch, order entry, online tracking, distribution, accounting, EDI and API integrations, reporting and warehousing with the flexibility to run on any operating system with any modern browser, in a PC or tablet environment. MobileTek is a powerful, natively installed, mobile software solution that works in tandem with Xcelerator. Proven to increase the speed, accuracy and accountability of your mobile workforce, MobileTek performs barcode scanning, signature capture, picture attachment, GPS tracking and shared stop technology in a real-time environment. Designed with an intuitive interface, MobileTek operates on both smartphones and tablets that are equipped with Android, iOS, Windows Phone and Windows Mobile operating systems. Client Testimonial: Select Express and Logistics based out of New York City is a leading provider of sameday, next-day and white glove nationwide delivery. Recently making the transition to Xcelerator, President Errol Cvern, said, “Xcelerator and MobileTek have been wonderful for us. We recently switched to the software and the capabilities for our clients as well as communications with our agents and IC’s out in the field has been overwhelmingly successful. We are a much better company, we are much better for our suppliers and our customers because of this software.” When incorporated into your business, Xcelerator and MobileTek will advance your company to the next level of service automation, empowering your company and your customers with the tools they need to succeed. From order creation to invoicing and driver settlement, Xcelerator and MobileTek will unlock potential and deliver results for you, your company and more importantly your customers.
About us LaserShip is a regional parcel carrier facilitating last-mile delivery to the Eastern U.S. for businesses desiring shorter transit times to their customers, increased flexibility, and the elimination of excess costs within their supply chain. Founded in 1986, LaserShip has evolved into a leading provider of same-day and next-day delivery services for premier e-commerce and product-supply businesses, and is trusted by fortune 500 companies to deliver packages faster than national carriers while lowering distribution costs. What makes LaserShip a HOT company in 2015? We Help Build Brand Loyalty E-commerce is growing steadily and shows no signs of stopping. This growth makes it increasingly difficult for brands to build loyalty amongst consumers who have endless shopping options. Amongst the top deciding factors consumers use to choose what brands to buy from are shipping costs and estimated delivery dates. LaserShip offers seven-day delivery options with same-day services available in metro markets while offering full visibility into the status of packages for both businesses and consumers, so everyone knows where packages are until it arrives in the hands of your customer.
CONTACT INFO: COMPANY: LaserShip
We’re Growing In 2014, LaserShip acquired Prestige Delivery Systems to form the largest regional parcel carrier that offers a wider range of delivery solutions across multiple industries. Our most recent expansion efforts took place just last month as we introduced five additional markets to our network: Michigan, Kentucky, Ohio, Indiana, and West Pennsylvania. LaserShip has the largest one-day and two-day footprint in the Eastern U.S., offering the fastest delivery options in the market. We Care Our care permeates all facets of our company because we love what we do. Long-term employment is the norm at LaserShip, and many of us have been together for ten years or more. We care about getting your customers’ shipments to them on time, and our customer service team works seamlessly to troubleshoot any issues to ensure your customer has a positive delivery experience and is left with a positive impression of what both of us are all about.
Executive Comment from Josh Dinneen, LaserShip’s Senior Vice President:
“LaserShip is in the perfect position to respond to the B2B and B2C e-commerce growth trajectory. We continue to see positive trends across all verticals, and we’re staying nimble in order to stay ahead of the curve. We’re continuing to invest in infrastructure by improving our facilities, material handling and sortation equipment, and expanding our network. Shipping partners like Plated and Vitacost.com are experiencing rapid growth and relying on us to continue expanding, which has driven us to increase our footprint by more than 54% over the last 18 months. LaserShip offers the only ground alternative to the two national carriers, and with the fastest delivery options in the market, our e-commerce service offering gives our shippers opportunities to continue to build strong shopper loyalty, which we couldn’t be more excited about.”
JULY-AUGUST 2015 | www.PARCELindustry.com
CONTACT INFO: COMPANY: Melissa Data
EMAIL: Looking to Expand Your Shipments to Other Countries? Melissa Data Can Help Today’s technology and data driven communications allow us to live in an increasingly integrated and interconnected world. It creates great opportunities for companies of all sizes to compete and thrive in international markets.
And, like many of our customers, Melissa Data is going global, too. First, we’ve partnered with Canada Post, Royal Mail, and Deutsche Post to bring additional reference datasets into our data quality and address management solutions. These solutions help verify, standardize, and format international addresses to support customers expanding into new international markets. And, Melissa Data now has offices in the U.K., Germany, Australia, and India that allow us to get closer to our customers and provide the critical services and support needed for success. We can help you verify your customers’ U.S. and international addresses before you ship, improving order entry and reducing return delivery charges and address correction fees imposed by carriers. Our address verification tools correct and verify data for 240 countries and territories, standardize address to a country’s local format, and add missing components such as postal codes, regions, and more. Our global address verification tools are available as a Cloud service or as integrations with Excel, SQL Server, and Oracle. In addition, our tools integrate with popular CRMs like Salesforce and Microsoft Dynamics, and with leading ecommerce and shipping solutions such as Magento, Shopware, and OrderCup. And, to ensure that accurate address data enters databases at the point of entry, Melissa Data also offers Express Entry, a service to auto-complete an international address with a fully-verified and deliverable address. Along with address verification, we can also geocode the shipping addresses in your database by adding precise lat/long coordinates for over 40 countries. Pinpointing customer locations can help you improve service and support logistics. For instance, it helps reduce errors in the critical “last mile” of the delivery chain to save time, fuel, resources, and costs while improving customer satisfaction. To help shippers choose the most cost-effective carrier, we also offer Residential Business Delivery Indicator (RBDI) as a component to many of our leading data quality solutions. We’ve been in business for 30 years, and as we go for 30 more, we’ll keep thinking of new ways to support shipping providers as globalization shrinks the world, bringing customers and businesses closer together.
CONTACT INFO: COMPANY: NPI
EMAIL: PI is proud to introduce Xstream, our high-speed, automated flats mail and parcel sorting solution. With throughputs up to 30,000 articles per hour, a modular design that facilitates future expansion, and an ergonomic footprint, Xstream makes flat and parcel automation faster and more efficient.
Xstream processes both Incoming and Outgoing articles with ease, including bagged, polywrapped, and otherwise non-machinable flats with ease. Xstream sorts a wide variety of articles weighting up to 70 lbs having dimensions up to 24” long, 17” wide, and 12” thick. Xstream features two independent feed stations that easily accommodate plant rolling stock or may be alternately integrated with existing conveyor systems to expedite the presentation of articles into the process stream. Xstream features state-of-the-art Barcode Reading (BCR) processes operating in a userfriendly Microsoft Windows based software environment. In addition, Xstream may be configured with a Weigh-On-Fly scale that supports Manifest Mailings. After weighing the articles (if equipped), reading the address blocks, or decoding the barcodes, articles are quickly and accurately sorted to output destinations according to he currently loaded sort plan. In its basic, dual-sided configuration, Xstream features up to 120 sort destinations. Articles are transported by grooved conveyor belts until one or more carbon fiber blocks known as “shoes” move across the conveyor belt and gently push an article into the destination handling unit or takeaway conveyor. Handling units include but are not limited to tubs, sacks, gondolas, or gaylords. Xstream is supported by time-tested software applications and utilities for system control and diagnostics, barcode processing, sort plan and report generation. Xstream is the perfect solution for any processing environment, including but not limited to the following: • Magazine Publishers 2013 • Postal Organizations • Courier Companies 24
JULY-AUGUST 2015 | www.PARCELindustry.com
• E-Commerce Distributors • Basic Material Handling Companies, and… • You!
CONTACT INFO: COMPANY: Pitney Bowes
Pitney Bowes is global technology company offering innovative products and solutions that enable commerce in the areas of Customer Information Management, Location Intelligence, Customer Engagement, Shipping and Mailing and Global Ecommerce. SMART – SCALABLE – SOPHISTICATED Automated Parcel Sorting Solutions from Pitney Bowes are customized and ultra-flexible systems ideal for couriers, postal and package handlers looking for solutions to cope with the rising tide of internet-driven parcels. Their flexible design enables clients to modify and expand the solutions to meet changing business needs. We specialize in proving parcel processing solutions that enable clients to realize increased efficiency by eliminating redundant processes, reducing reliance on manual labor and eliminating miss-sorts. Value-Add features and options: • Manual, semi, or fully automated parcel induction • In-line weighing and certified 3D measurement • Industry leading barcode reading and OCR technology • Automated label print and apply • Wide array of outsort technologies We deliver accuracy and precision across the connected and borderless world of commerce to help our clients create meaningful impact. www.pitneybowes.com 877-406-7704
CONTACT INFO: COMPANY: PITT OHIO
ITT OHIO is a service organization dedicated to providing high-value transportation and supply chain solutions to our customers. PITT OHIO is “Customer Driven, People Driven and Quality Driven.” As an organization we remain committed to innovating in every area of our company with our SUPPLY CHAIN, GROUND, LTL and TRUCKLOAD services. We strive to take it to the next level by providing diverse transportation solutions that help optimize your supply chain.
At PITT OHIO we understand that when it comes to small package shipping, one size does not fit all. We provide a more flexible alternative to your small package shipping and we are able to deliver a GROUND service that is customizable, reliable and more cost effective. Our GROUND service is able to extend your range of service based on volume to offer a competitive GROUND solution. We also specialize in handling non-conveyable products that you may have claims issues with today such as paint, liquids or rakes. Our on-time performance for our GROUND service exceeds 97% and we have few damages with a shipment integrity that is better than the competition with 1 in 4000 packages experiencing a claim. For a seamless transition, complete integration services are ossible with our ShipStation shipping software and our dedicated customer service is available to provide you with quick resolution with any issue. PITT OHIO’s customer-centric mindset has allowed us to give more customers what they want and need to be more competitive in the marketplace. This customer-centric mindset is evident with our participation in The Reliance Network (TRNET) an alliance consisting of ourselves and six other regional LTL carriers who provide service throughout North America. PITT OHIO continually strives to provide the most reliable service and is committed to our customers, our employees, and our community; We’re Always There For You!
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JULY-AUGUST 2015 | www.PARCELindustry.com
CONTACT INFO: COMPANY: Precision Software, a division of QAD, Inc.
recision Software is the only solution provider that offers global transportation management, trade management, shipment visibility & exception management, and trade compliance capabilities on ONE integrated platform. With our solution, you can automate all the efforts involved in Shipment Execution, Trade Compliance and Global Trade. Our shipment visibility and exception management solution, Package Exception Management (PEM), can provide shipment status/visibility for all carriers from a single portal, so users can proactively manage shipment issues with their customers.
We can integrate with your ERP, WMS, TMS, OMS, etc. systems, where all your packing/shipping stations can ship to all carriers in an automated fashion (no rekeying of shipment information into different systems). Precision Software has certifications with Oracle EBS and OTM, SAP, JDA, Manhattan, HighJump and numerous others. We have over 60 certified global carrier (UPS, USPS, FedEx, DHL, TNT, Purolator, OnTrac, Royal Mail, CanPar, La Poste, DB Schenker, Yamato Logistics and more) integrations, handle all modes of transportation and are the worldwide leader in shipment execution. In fact, we were the first company to achieve worldwide FedEx certification. We also save companies time and effort through our automated customs integrations. Key to our solution is the ability to screen orders for trade compliance, perform carrier compliant shipping activities, track shipments, and automate both the export and domestic documentation flow. Precision Software provides these industry leading solutions to the banking/finance, insurance, retail, high technology, life science, consumer product, logistics provider, industrial, and automotive sectors. • Established in 1984 in Dublin, Ireland • Acquired by QAD Inc. in 2006 • Headquarters: o U.S. – Chicago o EMEA R&D – Dublin, Ireland • Customers: 6000 + Sites • Worldwide: Over 60 Countries • Global Support: 21 Locations • Shipments: 10 M + Managed Daily • Stock: NASDAQ IPO 1997 QADA o QADB ($295 M in FY 15)
CONTACT INFO: COMPANY: Shipware
EMAIL: Shipware LLC offers transportation spend management solutions to increase your profitability by delivering savings and value beyond your reach. Whether you ship with FedEx, UPS, USPS or regional carriers, our services are guaranteed to reduce your shipping costs by 5-30%.
Contract Optimization Need to master your next parcel contract negotiation? Shipware has been negotiating parcel contracts – on both sides of the negotiating table – since 1991. Using your shipping database, we provide a complimentary and obligation-free savings assessment and benchmark of current contract/rates. Once engaged, we guide your team in real time through the entire contract negotiation process. Our compensation is based on actual, implemented savings, guaranteeing results or we’re not paid. Modal Optimization Shipware will also analyze and optimize your delivery network to save money and improve delivery transit using regional and national carriers as well as US Postal Service and parcel consolidators. Parcel Invoice Audit Our proprietary audit software analyzes weekly parcel invoices for billing errors and service failures. With 50+ audit points, Shipware’s audit is widely regarded as the leading platform to reduce shipper’s weekly carrier invoice costs as well as provide key insights. Shipware categorically recovers more dollars than any other audit firm, which is confirmed time and time again in head to head comparisons. All credits are directly applied to your carrier account. Spend Management Visibility Shipware provides powerful data mining software and state-of-the-art online reporting tools empowering our clients to make intelligent cost-saving transportation decisions. Results Since 1991, Shipware has achieved savings for its clients 5-30%. We know of no other firm in the world that can match our track record of savings, professionalism, and unmatched value.
JULY-AUGUST 2015 | www.PARCELindustry.com
CONTACT INFO: COMPANY: Software Solutions Unlimited, Inc
Among freight audit and payment companies, SSI is unique. We listen. We innovate. We help SMALL PARCEL SHIPPERS implement solutions that reduce transportation costs. Trust is established through transparency. We encourage shippers to consider the following:
Do you know if CARRIERS ARE PAID? Is it timely payment? Do you have visibility to carrier funding? At SSI, our number one goal is your trust. Our tools allow shippers to independently verify carrier payment. Our solution helps you know exactly when, where and how much was paid. We guarantee weâ€™ll be the most transparent partner youâ€™ve ever had. To learn more watch our video at: http://ssui.com/freight-payment/ Are custom freight contracts audited accurately? Do you employ an AUDIT POLICY for each carrier? We understand that no single-contract is the same. We develop unique pre-audit policies and rules for each client to ensure contract accuracy. Not only do we check for duplicate bills, rate errors, billing discrepancies, and, of course, service failures, but we work with our clients to review the addendums, small-print references, and custom services negotiated with the carrier. The result is a more comprehensive audit and greater savings. For more information about our custom freight bill audits, watch our video at: http://ssui. com/freight-bill-auditing/ How good are your parcel shipping reports? Can you dig deep into data? Can you SHIP SMARTER? SSI will help your shipping department reduce costs and ship smarter by providing tools that are far beyond the typical offering. Our business intelligence reports deliver graphs and charts that help illustrate carrier activity month-to-month, quarter-to-quarter, and year-to-year. We help you uncover and pinpoint shipments and carriers that adversely affect cost. Our freight benchmarking dashboards illustrate high-level trends and allow analysts to drill deep into shipping metrics. Check out our business intelligence and freight benchmarking video at: http://ssui.com/business-intelligence/ SSI freight payment and audit services are different by design. Check out our website today to WATCH our VIDEOS and DOWNLOAD our FREE WHITE PAPERS to learn more.
CONTACT INFO: COMPANY: Stamps.com
EMAIL: The Leader in USPS Shipping Technology and Automation As a strategic partner of the United States Postal Service since 1999, Stamps.com has been providing award-winning shipping and postal technology for some of the world’s largest companies. With over 500,000 customers and over 100 patents, Stamps.com has become the world leader in online postage technology and automation. Our shipping integrations with Amazon.com, eBay, Yahoo! and Paypal have also established Stamps.com as a driving force in global e-commerce shipping. Whether it’s our powerful stand-alone batch shipping software (with direct database integration) or our complete Web Services API, Stamps.com has solutions in place to increase the effectiveness and efficiency of your shipping and fulfillment process.
Seamlessly integrate low-cost USPS shipping into your existing operations With Stamps.com, you can easily integrate USPS shipping services into your existing warehouse workflow. Wherever, whenever, however you need USPS services, Stamps.com delivers. Integrated directly into your e-commerce platform? Sure. Warehouse, transportation or ERP management systems? No problem. API? Easy. Stamps.com gives you the power to completely customize the shipping process to meet the needs of your business. Best of all, we make the USPS as easy to use as any private carrier. We even have USPS postage invoicing options. Automation makes USPS shipping easier From importing and managing orders to selecting the best shipping methods, Stamps.com can help your warehouse practically run itself… faster, smarter and more efficiently. • • • • • •
Selects best rates based on custom shipping rules and customer preferences. Links multiple workstations and warehouses for better control and visibility. Auto-generates USPS-compliant labels and documents (Domestic and International). Improves shipping operational efficiencies and transportation costs. Automates post-back from export files/ODBC. Improves delivery accuracy with automated address cleansing.
Unmatched Speed and Proven Reliability With lightning-fast batch shipping and API, Stamps.com can process thousands of orders in minutes. Of course, speed means nothing without reliability. Our 99% uptime leads the industry. It’s no wonder Amazon.com, USPS.com and Intuit count on us for their shipping technology… along with over 500,000 other Stamps.com customers that process over 3,000,000 shipments daily. 30
JULY-AUGUST 2015 | www.PARCELindustry.com
CONTACT INFO: COMPANY: TransGuardian, Inc.
EMAIL: SHIPPING INSURANCE Spend less and cover more - we always save shippers significantly over carrier coverage or any 3PL parcel insurance provider.
We are the officially endorsed insured parcel provider of the Diamond Dealers Club of New York and the Diamond Club of the West Coast. We cover diamonds, currency, fine art, precious metals, and luxury watches worth multiple millions every day, and we can secure your cargo, too! Wells Fargo Insurance Services brokers our policy, which is underwritten at Lloyds of London, and covers loss, damage and pilferage in transit, including merchandise value, freight, duties and taxes, with zero deductible. Our policy covers up to $150,000 per shipment, worldwide, even for normally restricted cargoes, including gems, jewelry, precious metals, fine art, currency, numismatics and more. We offer real-time pro-active tracking of every insured parcel we cover, using RADAR, our proprietary, risk-mitigation software, keeping losses low and customer satisfaction high. Our live and friendly customer support provides prompt, easy, online, claims management, and we administer a worldwide network of on-the-ground investigators. You can integrate our solution seamlessly with your existing workflow or software, bind shipments by batch, or you can use our proprietary, multi-carrier TMS to generate FedEx, UPS, or USPS labels and bind insurance in a single step. TransGuardian was founded in 2005 by the developer of the Brinkâ€™s worldwide diamond courier network and the founder of FedExâ€™s jewelry shipping division.
INSURE YOUR PA C K A G E S WITH U-PIC
CONTACT INFO: COMPANY: U-PIC
EMAIL: U-PIC Insurance Covers your Parcels Against Damage, Loss and Shortage While in Transit. . . .
firstname.lastname@example.org or email@example.com
U-PIC Insurance Services is the leader in providing low cost shipping insurance to businesses and individuals. Packages are covered against damage, loss and theft with a savings of up to 85% less than what the carriers charge. U-PIC is the provider of choice for package insurance for leading eCommerce companies and their clients. Continue to ship with your carrier such as USPS, FedEx and UPS and insure with U-PIC for less. U-PIC has been insuring packages since 1989 as experts in the industry. The U-PIC Advantage: • Savings up to 85% less than the carriers charge • Claims are resolved electronically within 7 – 10 business days • Excellent customer service experience • Easily integrates into any shipping software • Custom API’s Filing a Claim is Quick and Easy: Our goal at U-PIC is to make your claims experience as fast and painless as possible. Just submit the paperwork required online and a resolution is made on the claim within 7 -10 business days. It’s that simple!! How to file a claim: Claims are filed online at www.u-pic.com by logging into your account. Once our simple claim form is completed you will be given a claim number as well as the ability to monitor your claim online in real time. After all of the claim documents have been submitted, a licensed U-PIC Claim Representative will review and process the claim within 7-10 business days. Get Your Free Quote: Apply online by submitting an application here and one of our sales insurance specialists will contact you with your customized rate quote. Applications enable U-PIC to provide a proposal and do not bind you to use our services. Rate quotes are based on volume, carriers used, claims experience and commodity. Have a Company that can Benefit From Our Services? U-PIC offers a great referral program to compensate you for your leads. Check it out or call for more information. 32
JULY-AUGUST 2015 | www.PARCELindustry.com
CONTACT INFO: COMPANY: U.S. Cargo
EMAIL: U.S Cargo a Regional Small Package Transportation Company Specializing In Providing Flexible and Customized Solutions.
U.S Cargo is a specialized regional courier and package delivery company providing consistent, cost-effective, and reliable ground, premium, and customized services. We offer diversified ground services to our customers and provide them with high-value, low-cost solutions. At U.S. Cargo, we identify, design, and deliver innovative, flexible, and servicesensitive transportation solutions encompassing dedicated courier, final mile, pool distribution, parcel, and lightweight LTL. Our solutions create sustainable, long-term value for our customers, business partners, and employees. U.S. Cargo differentiates itself by offering a personalized approach and commitment to meeting and exceeding our customerâ€™s transportation and logistical needs, whether their requirements are standard or unique. If you need your freight delivered earlier than a standard delivery time, our Premium Delivery Services are available upon request. We specialize in being flexible when it comes to your shipping of parcels and small packages. The ability to offer customized solutions distinguishes our company from the others. We are able to handle inventory pick/pack and distribution, management of dedicated transportation systems, and white glove delivery services including assembly and installation. And these are just a few of the solutions U.S. Cargo can provide! We work with you on the solution that best fits your supply chain. Since 1972, we have provided superior on-time service and optimal package handling. We believe in having a hands-on approach to package sorting, and we offer better shipment integrity than our competition. Only 1 in 6,000 packages in our system experience a claim. U.S. Cargoâ€™s comprehensive website puts visibility at your fingertips, providing you with full tracking and tracing capability in real time as well as enabling you to conveniently print your shipping labels. At U.S. Cargo, customers are not just a number. We have a dedicated Customer Service team at both the corporate and the local service station levels in order to ensure that you receive prompt and professional response and follow-up. We pride ourselves in being a strong regional carrier who delivers consistent, cost-effective, and reliable service and solutions to accommodate our customers.
CONTACT INFO: COMPANY: VITRONIC Machine Vision Ltd.
ogistics companies have high demands on the degree of automation for their processes. No matter whether it appertains to sorting, incoming and outgoing inspection, material flow, storage, order picking or optimal utilization of transport capacities: The basis for optimizing logistical processes is the automated capture and processing of product-, package-, and customer-related data – easily, efficiently and transparently. This includes reading of addresses, barcodes, 2D-codes and customer-specific codes as well as the volume and weight of a consignment. The captured data is transmitted to warehouse management or customer relationship management systems and can be used for further processes.
VITRONIC Auto-ID systems capture and analyze all relevant information such as bar codes, 2D-codes, customer-specific codes and plain text (OCR) – even several different code types in one image – on up to six sides of different packages. The orientation of the package makes no difference, text and codes are captured even behind foil. Flexible operation according to your needs. Depending on individual requirements, data on packaging can be captured in a variety of camera-based methods and then utilized efficiently for downstream processes • Manual data capture – camera to goods • Semi-automatic data capture – goods to camera • Fully automatic data capture – inline VIPAC systems can be installed at any position along the entire process chain – including volume measurement, recognition of deformations and weighing – and guarantee maximum read rates. In the past years, VITRONIC successfully implemented numerous systems at well-respected and internationally renown customer’s sites. The systems are used by courier, express and parcel delivery companies, mail order companies, companies from warehousing and distribution as well as in the manufacturing industry for data collection along the entire process chain. Besides the camera-based systems for the logistics division, the systems are also in operation for industrial automation and traffic technology. VITRONIC, head office in Wiesbaden, was founded in 1984 and is one of the worlds’ leading industrial machine vision companies. VITRONIC has a workforce of around 700 people on four continents with subsidiaries in Louisville/Kentucky, Melbourne, Dubai and Shanghai. The global network is completed by a number of service centers and partner companies worldwide. Our products are currently in use in 60 countries.
Zebra Technologies builds actionable information and insight, giving companies unprecedented visibility into their businesses by giving physical things a digital voice. Zebra’s extensive portfolio of solutions give real-time visibility into everything from products and physical assets to people, providing very precise operational data not only about where things are, but what condition they are in. This allows business leaders to use data to make better, more informed decisions, respond, and ultimately, help businesses understand how they work, and how they could work better. Zebra has the expertise and technology to mobilize and automate your fleet management and delivery operations to move your business forward. Our wireless infrastructure, bar code scanning, mobile computing, RFID and voice-enabled devices—together with software from our application partners—deliver an accurate, real-time view of the supply chain from the point of pickup to point of delivery. With specialized technology designed for each logistical category, you can accelerate productivity, profitability and operations: Fleet Management and Delivery Options Communicate with your drivers anytime, anywhere to ensure you are maximizing fleet utilization, meeting compliance mandates and exceeding customers’ expectations. Realtime visibility into delivery cycles allows workers to instantly access the day’s manifest, accurately document all delivery information and make more deliveries. It also enables customers to track their shipments online.
CONTACT INFO: COMPANY:
Warehouse and Materials Management Keep up with and proactively respond to customer demand, inventory turnover and regulatory requirements with warehouse management solutions designed for warehouse operations and highly specialized supply chains. Using the power of voice, scanning and visual cues, workers can perform their work hands-free and without looking up from their task. Voice solutions deliver 99 percent accuracy, improve overall warehouse productivity by at least 10 percent and dramatically improve safety. Yard/Port/Terminal/Hub/Ramp Operations Instantly track shipment contents, direct drivers to the next best dock, reduce idling and wait times and improve turnaround times. Zebra’s RFID tags capture inbound trailer-load information at the gate and relay it to a central office to quickly prioritize shipments and process dock-door assignments. Zebra makes businesses as smart and connected as the world we live in.
“As the Internet of Things (IoT) evolves, Zebra continues to be on the forefront of innovative technology—providing specialized transportation and logistics solutions that help businesses gain the visibility they need to make game-changing improvements. Whether by air, ground or sea, access to real-time data is critical and offers immediate benefits. From fleet management and inventory to tracking shipments, knowing where assets are at anytime, can help organizations run at peak efficiency, with faster decision-making, more reliability and consistency. The IoT is revolutionizing the way we do business and Zebra is helping you harness it.” Chris Kelly, VP of Sales for T&L North America
MAKING STRATEGIC SHIPPING DECISIONS
IN AN OMNI-CHANNEL WORLD
hile the prevalence of omni-channel retail continues to rise, so do competitive pressures, supply chain complexity and consumer expectations. To deliver, retailers must offer consumers rapid fulfillment at a lower shipping cost. An e-commerce supply chain model used to be that all orders would be fulfilled from an e-commerce specific distribution center (DC). Now, with stores, suppliers and third party logistics (3PL) partners increasingly becoming shipping locations, there are increased transportation options and agility for retailers. Yet, while more fulfillment locations can
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effectively improve customer service and fulfillment times, selecting the best fulfillment option that balances cost and service can be incredibly complex. For example, if a retailer has more than 100 stores across the country, more than 100 vendors that they can ship from, and a DC, they effectively now have more than 200 potential distribution points to choose from, versus the one DC they previously had. The traditional methodology of shipping from a DC no matter what should no longer be commonplace, but acclimating to the omni-channel customerâ€™s expectations should.
ADAPTING TO THE OMNI-CHANNEL WORLD Omni-channel strategy has been a topic of conversation within the industry for the past several years. Omni-channel capabilities are now expected by the customer. Consumers want the flexibility to utilize any channel for browsing, orders, and possible returns. Returns and orders are also expected to be very affordable or free, and arriving within hours or days, not weeks. That said, there are some instances when a business will not want to utilize all the capabilities of omni-channel commerce. The level of omni-channel adaptation when it comes to rating and
By Davison Schopmeyer
routing will depend on a multitude of factors including number of DCs, cost of products, size of products, the point you are at in a season, and more. The good news for brick-and-mortar retailers is that the omni-channel world — which has consumers expecting to receive what they want, when they want it and where they want it — actually has the ability to make it more affordable to continue to combat against companies that run online-only stores. In a time when in-store sales are steadily decreasing, the brick-and-mortar store is becoming a differentiating advantage, offering another option to provide customers the items they want faster and possibly, cheaper.
TRANSPORTATION RATING AND ROUTING CHANGES IN AN OMNI-CHANNEL WORLD Customer Pickup from Store: The first determination is when/how to drive the customer to come pick product up at a store versus shipping it from the store to their home. Customers may want to pick up from store for a variety of reasons, including the convenient position of the store to the customer, the desire for the fast timing of the goods, and the size of the product. The most important aspect is to ensure the product is physically in the store before the customer drives to pick it up. Once in-store product availability is verified, the lowest cost method is always for the customer to actually pick the product up in the store versus shipping it. Ship from Store: There are some products that will work well in a ship from store model while others will not. Products that are higher in price and margin usually lend themselves well to ship from store, but that is not always the case. For example, if a product’s assembly varies greatly from DC to store, shipping from stores may not make sense. Perhaps bicycles are shipped broken down in multiple parts in boxes from
DCs, but all bicycles sold in stores are already put together, meaning employees would have to spend significant time breaking down and packaging the product in this instance. There are many great benefits to shipping from stores, including: } More flexibility in shipping options as a result of more location options (customers can chose overnight, next-day, or 2-day shipping, for example, all at varying price points) } Lower costs (potentially, assuming the shipping distance generally decreases if there are more distribution points. If the customer wants same-day or nextday shipping, the price is likely higher) } More items listed as in stock online, since there are more options for locations that could possibly have the item in stock } Less need to discount from a margin perspective because a retailer’s affordable and fast shipping options will entice customers on their own There are undoubtedly benefits to shipping from stores, but there are some aspects to consider, too, including: } Packaging costs can increase if all the items needed are housed in each store, including equipment, boxes, tape, tissue, bubble wrap, and more } Additional training may be needed for in-store employees now being tasked with packaging and shipping } Additional associates may be needed in stores during busy shopping periods to handle increased numbers of orders. Customer service in the store for consumers shopping in the store is still a key priority } Storage space may need to be added or reconfigured to make room for packing and shipping activities } Software, including parcel manifesting and labeling systems, might need to be added } Additional store replenishments could
be required in order to replenish the depleted stock Product Shipped from a Vendor: There are a couple of reasons why product might be shipped from a vendor. One could be that a retailer is out of a particular product, and they make arrangements for the vendor to ship products as a last resort. The other reason is that a retailer may want to strategically add to their online product assortment to increase sales opportunities, but not take on more inventory carrying costs or physically hold inventory in their distribution network. Some aspects of shipping from a vendor to consider: } How transportation costs are handled } The information exchanged with the vendor on the order } The packaging of the product (retailers will want the same look for these products as they would have if shipped from store)
SHIPPING STRATEGIES FOR THE MODERN RETAILER There are countless configurable factors that go into making these rating and routing decisions. Order management systems use complex algorithms that take into account inventory in stores, margin, timing within the buying season, and more to determine which option is best. Sometimes shipping from store is the best option, other times it is not. Retailers have two options: (1) implement a ship from store program and work through the trials and tribulations, or (2) have an outside vendor or qualified internal team perform a strategic analysis on the business ahead of time to see how ship from store would affect customer service and profits and losses. In an omni-channel world, retailers can take advantage of new channels— like a ship from store option—or vendor drop ship. These new options will also cause additional challenges related to JULY-AUGUST 2015 | www.PARCELindustry.com
the rating and routing of orders, including whether or not to split ship. Hosting product at multiple locations may mean that a particular customer or client will order product that isn’t entirely housed in a single location. In this instance, many businesses will offer splits, where items are shipped from multiple locations. This can be confusing to consumers who receive more than one tracking and shipping email, even though all items were placed in a single order. For the most part, the industry preference is not to utilize splits, although there are situations when it makes sense, including when a business offers high end items with minimal inventory which might not be in stock in all locations. Same-day delivery is another option to consider, though the cost can often outweigh the benefits for many business-
es. By having deliveries going out more frequently, the process tends to not be green from a transportation standpoint, and costs for shipping will undoubtedly increase. That said, there are many benefits for businesses willing and able to take the plunge, including: } Competitive advantage over other companies not offering a same day shipping option } Customers’ affinity bolstered by delivery in less than 24 hours } Improved service levels resulting in reduced customer service calls/inquiries } Faster delivery with fewer costs } Increased margins to help cover added shipping costs In conclusion, despite the challenges, the world of rating and routing has changed thanks to omni-channel and businesses need to adapt or face losing
customers and diminishing brand loyalty. In the end, it’s all about pleasing the customer by getting the right product to the right person at the right time, all while maximizing margin. It is a tall order indeed, but with the right experts by your side, the effort is absolutely attainable and worthwhile. ¾
DAVISON SCHOPMEYER is a Senior Managing Partner of enVista’s Supply Chain Solutions practice. enVista delivers innovative solutions that improve profitability, enhance customer service and reduce waste from source to consumption. enVista’s unrivaled consulting experience, deep vertical industry expertise and comprehensive solutions portfolio, enable clients to leverage one strategic partner that consults, implements and operates across Supply Chain, Transportation, Retail, IT and ERP. For more information, visit www.envistacorp.com
Now Available! 2015 Update to William J. Augello’s Landmark Text Transportation, Logistics and the Law 2nd Ed. The Second Edition of Transportation, Logistics and the Law was published in 2004. Since that time there have been new court cases and statutory changes. This 2015 update covers eight of the most significant developments including: •! Safety ratings, SafeStat, and CSA •! Vicarious liability of shippers for accidents on the highway •! MAP-21: The 2012 Highway Bill •! The So-Called Anti-Indemnification Statutes To purchase the 2015 update or the text (update included) visit www.transportlawtexts.com
JULY-AUGUST 2015 | www.PARCELindustry.com
DIFFERENT STROKES FOR YOUR RFP Don’t get stuck on the same old questions; make your RFP more effective with these simple tips.
By Will O’Shea
hen Hollywood’s aquatic star Esther Williams retired from acting, she reportedly was asked the same question so often that she eventually carried a pre-printed card with the answer: “Yes, I still swim.” Williams’ rote response comes to mind when I think about last-mile delivery RFPs, because even though these documents are created by different types of companies, there’s often a remarkable similarity to the kinds of questions they ask — and the kinds of things they don’t. In fact, over the years I have come to believe that while most companies have a fairly firm idea of what they’re looking for in a delivery partner, it’s rarely conveyed accurately or fully on their RFPs. As a result, they may not be getting all the information they need to make the
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decisions that will work best for their company or their last mile. To help prevent this from happening to your company I’d like to offer up a few practical dos and don’ts gleaned from more than two decades of being on the receiving end of these all-important documents. DON’T CONFUSE YOUR RFP WITH YOUR MARKETING MATERIALS. We all understand the importance of preserving our companies’ reputations when communicating with external audiences. However there’s a big difference between putting together an RFP and creating an ad campaign: An RFP’s about managing your logistics; an ad is about managing your image. Aim to be as candid as you can about all of the factors that inspired your lastmile delivery search — the good, the bad
and even the ugly. Don’t withhold information about any constraints that could hamper your potential delivery partners’ ability to deliver your goods or meet your expectations. And forget about trying to put a positive spin on things just so respondents will think more highly of your company. After all, if you can’t trust candidates enough to show them the unvarnished truth about your challenges, why would you be willing to trust them to handle your products? DO ATTACH A LEGALLY BINDING TWOWAY CONFIDENTIALITY AGREEMENT. Believe it or not, many of your respondents may be just as reluctant to share certain details about their companies as you are, especially if they think that their recommendations, answers or pricing could eventually fall into any of a com-
petitor’s hands. An official document like this will go a long way toward protecting everyone’s privacy and proprietary information — and pave the way for a higher comfort level that could elicit far more candid and strategic responses. DON’T HESITATE TO INCLUDE A COUPLE OF TELLING QUESTIONS. As you’re preparing your RFP, bear in mind that this is almost certainly not your respondents’ first rodeo. In most cases, these last-mile providers have been responding to RFPs for years, with a healthy collection of highly polished responses to show for it. To help cut through at least some of the rhetoric, ask a couple of open-ended, real-life questions that require respondents to go off-script and provide more detailed explanations. One particularly evocative one is, “Tell us about a time when a shipment or startup you executed for a client had an issue and walk us through what you did to resolve it.” Another is, “Provide us with a process map of how you’d fulfill an order for our business.” DO CONSIDER CORPORATE CHEMISTRY. Waiting until after a contract is signed to find out what makes a provider tick is akin to forgetting to ask your dual skydiving partner if he remembered to strap on the parachutes until after you’ve jumped out of the plane. If you and any potential 3PLs have discordant corporate cultures or work styles, it’s always best to find this out sooner, rather than later. By the same token, if you discover that you complement each other well, it could serve as that “aha” moment when you realize that you haven’t just found a good provider; you’ve found what could be a great partner.
Although your RFP won’t be able to help determine everything you need to know about your potential partners’ personalities, a question such as “Tell us about your company’s corporate values and explain how they’re reflected in how your company does business,” could serve as an excellent starting point. So could a query along the lines of, “What’s the last piece of business your company said no to – and why?” You can learn a great deal about a potential provider by taking a hard look at the work it turns away. DON’T BE VAGUE OR UNREALISTIC ABOUT KPIs. One of the biggest fallacies many companies buy into is that it’s not necessary to convey the true nitty-gritty of their needs, goals and objectives at the RFP phase, because there’ll be time enough to address those later down the line. Unfortunately such a mindset often deprives your candidates of the critical information they’ll need to a)make a decision about whether they’re really a good fit for your business b)decide whether your business is a good fit for them and c)thoughtfully weigh in on just how fair and achievable your requirements and expectations are while there’s still ample time to adjust them. If possible, be forthcoming about your Key Performance Indicators right out of the gate. Just as important, be sure that all of your KPIs have at least some grounding in reality, bearing in mind that there’s a fine line between service/pricing expectations that are ambitious and those that are absurd. While it’s more than okay to aim for improvements, it’s rarely a good idea to deviate too far from the real-life baseline of your current logistics costs and service levels. DON’T FORGET TO LOOK WITHIN. Finally, don’t forget to ask your own company some important questions too, because in the grand scheme of things, selecting the right 3PL delivery partner
is only half of what it takes to make a successful shipper-provider match. First and foremost, ask what you company’s track record with other 3PLs and suppliers has been like – and if you come up with an answer that’s less than positive, take time to identify and correct any causes of conflict or confusion. In addition you should carefully determine who’s on board with your decision to send out an RFP — and who isn’t — because even though unanimity isn’t required, a general consensus can make for a more successful outcome. If you do these things, you and your providers of choice will have a much better chance of getting along swimmingly. If not, you may find yourself in the unenviable position of having to consider yet another pool of 3PL candidates for the same assignment in the not-too-distant future. ¾
WILL O’SHEA is the chief marketing officer of the XPO Logistics last mile business, the largest provider of heavy goods, last mile delivery and installation in North America. XPO facilitates approximately 8 million last mile deliveries a year with more than 6,000 independent contract carrier/white-glove delivery teams, 1,000 installation/assembly professionals and cutting-edge technology. XPO Logistics (NYSE: XPO) is one of the world’s fastest growing transportation and logistics providers.
JULY-AUGUST 2015 | www.PARCELindustry.com
By Wayne Teres
n January 1, 2015, Dimensional (DIM) weight charges for Domestic small parcels were implemented by FedEx, UPS, and USPS. Now shipping charges are calculated by the greater of actual weight or DIM weight. DIM weight is calculated by Dimension (LxWxH) divided by a DIM factor, the DIM for FedEx and UPS 166, for USPS 194 with the DIM weight rounded up. These changes have caused increased shipping charges for many companies. Ralph White, Acme Suppliers Warehouse Manager, had read the articles about this change. He realized that he needed to take action after recovering from the shock of the dramatic 21% increase in total small parcel shipping charges in his January invoice. Ralphâ€™s first step was to understand the total effect of the new DIM weight small parcel shipping charges on his outgoing shipments; to peel back the layers and determine the current reality. He knew that if he did not take corrective action quickly, the profit loss would continue. Ralph began an Outgoing Small Parcel Shipping Audit to determine the impact by following these steps. OUTGOING SMALL PARCEL SHIPPING AUDIT The first step was to learn the outgoing shipping profile:
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HOW ONE WAREHOUSE MANAGER OVERCAME THE INCREASED SHIPPING CHARGES FROM THE NEW DIM WEIGHT CHARGES } What shipping carriers are used, such as UPS, FedEx, Priority Mail, etc. } How many carton sizes are used and the LWH of each carton } What other shipping containers are used such as polybags } How many of each shipping container is shipped } What dunnage and how much is used to fill the void Next, using the small parcel shipping invoice, for each DIM weight-charged shipment, Ralph created a spreadsheet with the shipment ID, weight in pounds, price by weight, and price by DIM weight. Lastly, Ralph visited the packing area and observed how the packers selected the box, packed the items in the box, the dunnage used to fill the void in the box. He noted several boxes with 25-30% void being filled. He then discussed with the packers the effect of the new rates to the company and the project to reduce the increased shipping costs. THE OPPORTUNITY The Outgoing Small Parcel Shipping Audit review revealed an opportunity to reduce the shipping costs by reducing the 25-30% void. This void could be reduced by packing the items in shipping containers with less volume (LWH), thereby reducing the DIM weight charges. Ralph, working with the packers, established a goal to reduce DIM weight
charges, and then created and implemented the following action plan. THE ACTION PLAN The action plan had three phases. The first phase, Quick Fixes, were fixes that could be implemented quickly with minimal expense and rapid payback. The second phase consisted of fixes that would take more time and required more study. The third phase was made up of fixes that would require assistance from other departments. They immediately went to work implementing the first phase, Quick Fixes, and established a measurement system to evaluate results. THE QUICK FIXES 1. Added new equipment to weigh and measure cartons. For the packers to calculate the DIM weight charge of a carton, at each packing station he added a scale for weighing packages and a tape measure. 2. Trained the packers on how to calculate the DIM weight charges, as well as when and how to cut down the packages. 3. Purchased a Carton Sizer/Reducer to make it easier for the packers to cut down the boxes and to make them look more professional. Carton sizers are available from numerous sources and are less than $20. To view a demonstration, watch this video. Click here
4. Purchased a few variable sized boxes, multi-depth cartons.
5. Analyzed and changed the size of existing boxes. A small change in the box dimensions made a big difference. For example: Reducing one box by one inch changed the dimensional weight to three-pounds, thus generating a 24% lower shipping cost than a four-pound box. 6. Switched to polybags for some shipments. 7. Trained the packers when to ship using USPS instead of FedEx or UPS. USPS has a better DIM rate as shown below:
DOMESTIC DIM DIVISOR
8. Modify the packing measurement. After a week, a review of the shipping invoices revealed the initial reductions were lower than expected. Talking to the packers, Ralph learned that they did not repack cartons or cut them down all the time. He learned the reason was that when they did their productivity, packages per hour went down. The light bulb went on; their measurement system was causing more DIM weight charges. By relaxing the focus on packages per hour and encouraging the packers to pack using the best size box even if it meant spending time cutting down the box or changing boxes, they experienced lower DIM weight charges.
FIXES THAT REQUIRED MORE TIME 9. Negotiate a better DIM divisor with the carrier. A higher DIM divisor would lower the DIM weight shipping charge. 10. Perform a Transportation Mode Study to determine which carriers to add if any and for what types of shipments. There are a number of regional parcel carriers, including: LSO, Eastern Connection, Lasership and PITT OHIO Express to name a few that could provide better rates. FIXES THAT REQUIRED ASSISTANCE FROM OTHER DEPARTMENTS Ralph also realized that these other areas of the company could be helpful in reducing the profit drain from the increased DIM weight shipping costs: Package Design: Packaging of a product influences the size of the shipping carton. Ralph began to educate Purchasing and Finance regarding how package design affects shipping costs and worked to be involved in new product packaging as well as review existing items with high DIM weight charges. Shipping Charges to Customers: Outgoing shipments charged to customers based on the company shipping tables were not updated reflecting the increased DIM weight charges requiring a review of the shipping tables. Shipments from Vendors: Incoming shipments with increased shipping costs from DIM weight charges, increasing the total cost of goods requiring an Incoming Small Shipment Audit. PITFALLS TO AVOID Listed below are common pitfalls to avoid: Doing nothing. For most companies, small parcel shipments’ outbound, as well as inbound, costs have increased. These costs are draining profits as well as causing budgets to be inaccurate. Failure to understand these costs and implement an action plan may not be received well by your supervisor, and can be embarrassing whereas a well-executed plan will be viewed positively. Bias to add additional boxes. When trying to add boxes, you may be faced with, “We don’t want add them because it will cost more, require more work to
keep track of, and be more difficult for the packer to choose the box.” In this case, stand fast. Failure to measure, feedback and share the results. The temptation is great to skip the measurement and reporting of the results. If Ralph did, he would not have realized the packer measurement system was working against the goal to reduce the shipping costs. Additionally, measuring the results and feeding them back to the packers will reinforce their extra effort and provide the opportunity for the department to contribute to profits. Sharing the results with other departments, Purchasing, Finance, etc. may encourage participation in the project that requires their assistance. Going it alone. Depending upon the complexity of your operation, the number of SKUs, creating thousands of volume combinations to be shipped in a container may make a box study difficult and produce minimal results; it may be beneficial to seek outside assistance. IN CLOSING Like Ralph, there are several immediate successful actions you can take to reduce your increased charges from the new DIM weight calculations. Further, there are actions you can take by enlisting the help of other departments in the company that can increase profits. Together, these actions can make a major difference in reducing the increased shipping charges resulting from the new DIM weight calculations and increase profits. One final note, LTL Dimensional pricing is not far behind, it is not too early to prepare and be proactive. ¾
WAYNE M. TERES, President of Teres Consulting Inc. with over 25 years of warehouse and fulfillment consulting experience, is a frequent writer and featured industry speaker. Wayne has assisted 100’s of operations in reducing costs and improving quality and service. He can be reached at firstname.lastname@example.org or 508-872-4922. Wayne will be speaking at this year’s PARCEL Forum, held October 19-21 in downtown Chicago. If you haven’t already registered, visit www.PARCELforum.com today!
JULY-AUGUST 2015 | www.PARCELindustry.com
PARCEL COUNSEL BY BRENT WM. PRIMUS, J.D
Revisions to the NMFC Which Shippers Need to Know — And Then Avoid: Part II n the previous installment of PARCEL Counsel, we considered the first of three relatively recent changes to the National Motor Freight Classification (NMFC). The change which was discussed there was the establishment of a 180 day time limit to submit claims for refunds of duplicate payments. In this installment we will continue this review and look at a provision changing the time limits for providing notice of concealed damage. Time Limits for Concealed Damage This column has previously looked at the issue of concealed damage — most recently in a two part column entitled Damages, Damages, Damages (Part I in the March/ April 2014 issue and Part II in the July/ August 2014 issue of Parcel Counsel). These columns, and all of the other PARCEL Counsel columns, are archived at the PARCEL website Content Library. Briefly put, concealed damage refers to damage which could not be discerned at the time of delivery. The concept can also come into play in situations where the damage is readily apparent at the time of delivery, but was not recorded or notated on the bill of lading or delivery receipt. An example of this would be a new dock worker who had not been properly trained…or simple inadvertence. Until now, shippers had a 15 day grace period to submit a written report to the carrier providing notice of the damage. In such event, the carriers then treat these reports just as though a notation of damage had been made on the bill of lading. 44
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It is important to understand what this means…and what it doesn’t mean. Contrary to what some carriers believe or assert, the failure to submit a notice of damage within the 15 day time limit does not act as a bar to a claim. Rather, the significance of missing the 15 day time period is that the shipper loses the presumption the shipper gets when the damage is notated at the time of delivery, that is, that the damage occurred while the goods were in transit. This means that in addition to having to establish the condition of the goods at origin, the condition of the goods at destination, and the dollar amount of the damage, the shipper also has to prove that the damage did not occur after delivery. Such a burden would be met by providing evidence through witnesses, internal records, photographs, etc. The relevant provision in the NMFC has now changed the 15 day period to a 5 day period. The new item reads as follows If five (5) business days, or such other period as specified by the carrier, pass between the date of delivery of the shipment by carrier and date of report of loss or damage and request for inspection by consignee, it is incumbent upon the consignee to offer reasonable evidence to the carrier’s representative when inspection is made that loss or damage was not incurred by the consignee after delivery of shipment by carrier. As many readers might have experienced, carriers are very reluctant to pay concealed damage claims and often will simply deny them without further investigation. The change in provision of the NMFC reducing the time period to 5 days gives the carriers even greater ability to deny claims for concealed damage — no
matter how well established by factual evidence by the shipper. It is also important to realize that whether the period for giving notice of concealed damage is 15 days or 5 days the failure to submit the notice only, as noted above, adds to the shipper’s burden of proof…but does not, and can not, act as a bar to filing a claim for damage. This is because under the federal statute known as the Carmack amendment carriers cannot establish by a tariff rule a time period of less than 9 months for a shipper to file a claim for loss, damage or delay. Accordingly, when a carrier maintains that a failure to file notice of damage within 15 days, now 5 days, that the claim is then time barred, it is an unlawful denial of the claim. In the next installment of PARCEL Counsel we will look at a third new provision purporting to require mandatory arbitration when a dispute arises. We will also explain how a shipper can avoid or minimize the adverse effect of these three provisions. So… Stay tuned! ¾
BRENT WM. PRIMUS, J.D., is the CEO of Primus Law Office, P.A. and the Senior Editor of transportlawtexts, inc. Previous columns, including those of William J. Augello, may be found in the “Content Library” on the PARCEL website (www.PARCELindustry.com). Your questions are welcome at email@example.com.
WRAP UP BY MICHAEL J. RYAN
The Cost of Convenience re we losing our sense of connection through mobile devices? Recently, my father in law passed away at the young age of 97. During his life, he experienced multiple wars, depressions/recessions, multiple presidents, the introduction of computers, cable TV, the landing on the moon, use of a nuclear bomb and the common use of automobiles. Most interestingly, he never owned a mobile phone. He was one of those people that still had a land line but his real connectivity to his family and friends was to be there in person and to have a “real” human experience. He outlived most of his friends but still had 500+ people attend his wake. To further display this new world of connectivity, I saw three young boys riding down the street and all three of them were looking at their phone while riding their bikes. Not only is this a safety issue, but they were not living in the moment of riding a bike. The world of e-commerce is moving faster and faster toward making it very easy and convenient to make purchases that will be delivered in hours, next day and possibly two days… but who would ever wait two days to get their goodies? Sometimes I feel like we are creating our own monster with modern technology. I remember when FedEx introduced the first desktop computer to high volume shippers so they could print their labels faster… have we come a long way! I have this vision that we will be able to ship a package from our phones without a printer… some technology that will “image” the shipping information on the box…
maybe it will tape itself too. Don’t get me wrong here, technology is great but it is making us a “less connected” society. Please do your own research and just jump off the grid for a moment and watch what people are doing today; they are constantly looking at their phones. This is exactly what the modern day merchants want us to do. Dis-Connect It is my recommendation that you take some time off the grid and re-connect with the people around you. You will find that freewheeling conversation is a lot more fun than just having a “text” conversation. You may also want to develop a personal plan on how you can be less connected to your device and more con-
nected to people. The art of eye to eye conversation is more enjoyable. The parcel business was built on personal relationships. Most businesses do business with people that they trust and know. I would like to challenge anyone who reads this article to be more connected through person interaction. If a 97-year-old person could go through life without a mobile phone, then we could change our ways and be a better society. Thanks, Dad, for a great lesson learned. ¾
MICHAEL J. RYAN is the Executive Vice President – Parcel Solutions at Pro Star Parcel and has over 25 years of experience in the parcel industry. He can be reached at 708.224.1498 or firstname.lastname@example.org
JULY-AUGUST 2015 | www.PARCELindustry.com