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HOW TO HARNESS THE POWER OF IOT DATA

DECEMBER 2016

VF PUTS

The apparel and footwear giant gets serious about corporate social responsibility

PEOPLE FIRST

EMISSIONS ON THE WORLD STAGE

A primer on how companies can manage upstream emissions

2016 GREEN SUPPLY CHAIN AWARDS

How to green-light sustainability in your supply chain

Harriss & Covington Hosiery Mills Inc. makes socks for Smartwool, a VF Corporation brand. This fifth-generation, family-owned company has 285 employees.

Fresh new content daily at SDCEXEC.COM

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SUPPLY & DEMAND CHAIN EXECUTIVE

GREEN SUPPLY CHAIN AWARDS The following are some of the companies selected for this year’s award, honoring leading organizations that envision and implement strategies to support green or sustainable supply chain goals. Turn to Page 6 to read about the practical steps that companies are taking—and other companies can take—to green their supply chains.

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Before NeoGrid

Separate Systems

Data Inputs Customer Orders (VMI / CPFR)

Order Management Retail Inventory Master Data Demand Planning

POS / Consumption Promotions Spending

Trade Promotion Management

Quotas / Budgets

With NeoGrid

Data Inputs Customer Orders (VMI / CPFR)

Single NeoGrid Solution

Retail Inventory Master Data POS / Consumption

A single cloud-based solution for your business

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Promotions

Order Management

INTEGR ATED!

Demand Planning Trade Promotion Management

Spending Quotas / Budgets

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December 2016 | Volume 17 | Issue 5

CONTENTS 06 2016 AWARD WINNERS

GREEN SUPPLY CHAIN AWARD These companies are green-lighting successful sustainability initiatives and saving green in the process.

24

TERA

BY T E

S

NO

EF

FEATURES

14 VF Puts

People First

The apparel and footwear giant gets serious about CSR in the supply chain.

SENS ORS FIC

IEN

18 Emissions on

CY

the World Stage How can companies manage upstream emissions within the supply chain?

IoT

MONEY

TELEMATICS

SPECIAL REPORTS

EXECUTIVE FOCUS

32 T RANSPORTATION FlowerHandling Capabilities Bloom in the Cold Chain

Cold chain capabilities—even for the most fragile of flowers—are growing in the logistics sector.

34 WAREHOUSING  Watch Your Back!

The uncomfortable truth about warehouse ergonomics ...

24 THE INTERNET

OF THINGS  Taming Big Data in the IoT

How are companies like UPS harnessing IoT data and using it to make business decisions?

28 PROCUREMENT  World-Class Procurement

Three procurement professionals weigh in on what they see as the best practices of top procurement teams.

14

31 TRADE FINANCE

28

 Robotic Process Automation Gathers Attention

Freeing up skilled staff to work on high-value projects is just the start.

36

SDCEXEC.COM

& TECH  LTL Goes Mobile

Holland adds Honeywell technology to drive efficiency, improve the driver experience and meet heightened customer demands.

COLUMNS

04 EXECUTIVE MEMO 22 MADE IN AMERICA 40 WORK HARD, PLAY HARD

Exclusive online features and solutions for successful supply chain operations

Don’t Drown in Returns: A Lesson in the Reverse Supply Chain

Break Down the Silos in Your Supply Chain sdcexec.com/12275889

sdcexec.com/12271204

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36 SOFTWARE

Supply Chain Risks: Predicting and Responding to Disasters and Disruptions sdcexec.com/12275911

SDCExec.com | December 2016 | SUPPLY & DEMAND CHAIN EXECUTIVE

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EXECUTIVE MEMO By Ronnie Garrett, Editor rgarrett@ACBusinessMedia.com

SPEAK UP

Published by AC Business Media Inc. 201 N. Main Street, Fort Atkinson, WI 53538 (800) 538-5544 • www.ACBusinessMedia.com

www.SDCExec.com

As the new administration comes in, it’s time to make your needs known.

I

n my family, you do not talk about politics around the dinner table. It’s not that we don’t care; it’s because we do. My clan has some very strong political opinions—sentiments often expressed in loud, angry voices because we want them to be heard. However, if those ideas differ from my father’s, sharing them turns what might be a pleasant meal into a very unpleasant one indeed. Talking about politics in business is much the same, especially in this year’s very polarized presidential election. Whether you are dancing in the streets over Donald Trump’s win or hiding under the covers because of Hillary Clinton’s loss no longer matters. What does matter is that you pay attention to key issues as the new administration takes its seat at the political table, and make sure your opinions and desires as supply chain leaders are known. Here are a few areas where it’s going to be crucial for you to speak up: ❯❯ Free trade. If the news media is to be believed, Trump isn’t for free trade. In these reports, the President-elect condemned the Trans-Pacific Partnership, announced his intention to withdraw or renegotiate the North American Free Trade Agreement (NAFTA) with Mexico and

PRINT AND DIGITAL STAFF GROUP PUBLISHER Jolene Gulley ASSOCIATE PUBLISHER Judy Welp EDITORIAL DIRECTOR Lara L. Sowinski EDITOR Ronnie Garrett ASSOCIATE EDITOR Carrie Mantey WEB EDITOR Eric Sacharski SENIOR PRODUCTION MANAGER Cindy Rusch ART DIRECTOR Kayla Brown AUDIENCE DEVELOPMENT DIRECTOR Wendy Chady AUDIENCE DEVELOPMENT MANAGER Angela Kelty

Canada, and threatened to impose tariffs on Chinese and Mexican imports. If these objectives come to pass, there will be reshoring, albeit “involuntary reshoring” as a colleague of mine calls it. ❯❯ Corporate taxes. According to the news media, Trump promised to slash the top rate of corporate income tax from 35 to 15 percent, and allow corporations to deduct investments from taxable income. ❯❯ Wall Street reform. During the campaign, Trump promised to dismantle Dodd-Frank reforms. He said the changes make it hard, if not impossible, for banks to function and businesses to get the loans they need to grow. While there doesn’t appear to be firm plans in place for any of these things at this time, they will be important issues to pay attention to as the new administration comes in. The reality is that, while it might be OK for me to sit silent at the family table when the subject of politics comes up, it is not going to be OK for you as business and supply chain leaders. If you want policies that help you run profitable businesses and efficient supply chains, the time is now to speak up and make your needs known.

WHILE IT MIGHT BE OK FOR ME TO SIT SILENT AT THE FAMILY TABLE WHEN THE SUBJECT OF POLITICS COMES UP, IT IS NOT GOING TO BE OK FOR YOU AS BUSINESS AND SUPPLY CHAIN LEADERS.

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SUPPLY & DEMAND CHAIN EXECUTIVE | December 2016 | SDCExec.com

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ADVERTISING SALES (800) 538-5544 JOLENE GULLEY, jgulley@ACBusinessMedia.com STEPHANIE PAPP, spapp@ACBusinessMedia.com EDITORIAL ADVISORY BOARD LORA CECERE, Founder and CEO, Supply Chain Insights TIM FEEMSTER, President, Foremost Quality Logistics JOHN M. HILL, Director, St. Onge Company, and Board of Governors, Material Handling Industry of America RORY KING, Analytic and Big Data Advisor, SAS Institute KAREN MASTER, Vice President of Communications, SAP Ariba WILLIAM L. MICHELS, CEO, Aripart Consulting JULIE MURPHREE, Founding Editor, Supply & Demand Chain Executive ANDREW K. REESE, Senior Portfolio Marketing Manager, IHS, and Former Editor, Supply & Demand Chain Executive BOB RUDZKI, President, Greybeard Advisors CHRIS SAWCHUK, Global Managing Director and Procurement Advisory Practice Leader, The Hackett Group RAJ SHARMA, CEO, Censeo Consulting Group KATE VITASEK, Founder, Supply Chain Visions CIRCULATION & SUBSCRIPTIONS P.O. Box 3605, Northbrook, IL 60065-3605 (877) 201-3915, Fax: (800) 543-5055 Email: circ.sdcexec@omeda.com LIST RENTAL Elizabeth Jackson, Merit Direct LLC (847) 492-1350, ext. 18, Fax: (847) 492-0085 Email: ejackson@meritdirect.com REPRINT SERVICES JOLENE GULLEY, jgulley@ACBusinessMedia.com AC BUSINESS MEDIA INC. CHAIRMAN Anil Narang PRESIDENT AND CEO Carl Wistreich EXECUTIVE VICE PRESIDENT Kris Flitcroft CFO JoAnn Breuchel VP OF CONTENT Greg Udelhofen VP OF MARKETING Debbie George DIGITAL OPERATIONS MANAGER Nick Raether DIGITAL SALES MANAGER Monique Terrazas Published and copyrighted 2016 by AC Business Media Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher. Supply & Demand Chain Executive [USPS #024-012 and ISSN 1548-3142 (print) and ISSN 1948-5654 (online)] is published five times a year: March, May, June, September and December by AC Business Media Inc., 201 N. Main Street, Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, Wisconsin and additional entry offices. POSTMASTER: Please send all changes of address to Supply & Demand Chain Executive, P.O. Box 3605, Northbrook, IL 60065-3605. Printed in the USA. SUBSCRIPTION POLICY: Individual subscriptions are available without charge in the United States, Canada and Mexico to qualified individuals. Publisher reserves right to reject nonqualified subscribers. One-year subscription to nonqualified individuals: U.S., $30; Canada and Mexico, $50; and $75 for all other countries (payable in U.S. funds, drawn from U.S. bank). Single copies available (prepaid only) for $10 each. Return undeliverable Canadian addresses to: Supply & Demand Chain Executive, P.O. Box 25542, London, ON N6C 6B2. The information presented in this edition of Supply & Demand Chain Executive is believed to be a­ccurate. The p­ ublisher cannot assume responsibility for the validity of claims or ­performances of items appearing in editorial presentations or advertisements in the publication. December 2016 / Volume 17 / Issue 5

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The average U.S. cargo theft is $233,000*. What’s more surprising? You’re probably not protected. Most companies assume it won’t happen to them. But in the U.S., more than 800 of them are proved wrong every year. And they’ll need a lot of new sales to cover just one bottom-line loss. Bad guys are plotting, but so are we. UPS Capital Insurance Agency, Inc. will customize a policy for your business and even cover losses to the full retail value. Better yet, with more than 100 years of supply chain expertise, we can help prevent them in the first place. Protect yourself. upscapital.com

UPS Capital insurance Agency, Inc., and its licensed affiliates are wholly owned subsidiaries of UPS Capital Corporation. Insurance coverage may not be available in all jurisdictions. Insurance is underwritten by an authorized insurance company and issued through licensed insurance producers affiliated with UPS Capital Insurance Agency, Inc., and other affiliated insurance agencies. ©2016 United Parcel Service of America, Inc. UPS, UPS Capital, the UPS brandmark and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved. *FreightWatch International, Supply Chain Intelligence Center: Annual Cargo Theft Report 2014.

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GREEN-LIGHTING

SUSTAINABILITY

By Editorial Staff, Supply & Demand Chain Executive

Supply & Demand Chain Executive has long taken the stance that being green and profitable are not mutually exclusive. In fact, many of the following companies are not only green-lighting successful sustainability initiatives, but also saving green in the process ...

3GTMS

The Most Efficient Way to Move Freight www.3gtms.com

3Gtms’ transportation management system (TMS) enables third-party logistics providers (3PLs) and logistics service providers to operate more sustainably by reducing fuel consumption and emissions during the transport of goods. The TMS incorporates optimization algorithms that help determine more efficient routes and ensure each route is maximized in terms of truck space. Clients report increased shipment consolidation, more efficient routes (and fewer miles traveled) and optimized truckloads. For instance, Bemis Manufacturing’s mix of freight changes from day to day, so the company relies on 3Gtms’ TMS to help choose between all of its transportation options and find the most efficient way to move freight. BY THE NUMBERS

ALOM’s client saw a more than

40%

reduction in per-unit transportation cost versus online fulfillment

ALOM

A Sustainable IT-Driven Strategy www.alom.com

ALOM worked with a medical device client to implement a sustainable IT-driven strategy to expand its e-commerce-only order delivery protocol to include retail channel fulfillment to stores such as Target and Walgreens. ALOM engineered an order management process integrating retailer electronic data interchange (EDI) systems to receive orders by ALOM and feed them to the client for visibility. This solution improved sustainability by providing: paperless, real-time retail order management and tracking; reduced transportation time, cost and distance traveled per unit; and a sustainable retail packaging design. The client saw a more than 40 percent reduction in per-unit transportation cost versus online fulfillment.

ATLANTIX GLOBAL SYSTEMS

Greening End-of-Life and Surplus IT Equipment www.atlantixglobal.com

Atlantix Global’s asset recovery services program maximizes the return on investment of a company’s end-of-life or surplus IT equipment, while also mitigating compliance risks when the equipment is refurbished, remarketed or recycled. Its R2 Standard certification—which focuses on the performance of electronics recyclers in environmental and public health, employee health and safety, security (data and facility), and the whole of the recycling process through final equipment disposition—confirms the company’s commitment to responsible recycling. Alantix customers see the results of green IT by reducing their footprint of electronic waste (e-waste), which is produced when electronic equipment is not properly disposed. 6

SUPPLY & DEMAND CHAIN EXECUTIVE | December 2016 | SDCExec.com

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2016 GREEN SUPPLY CHAIN AWARDS B-STOCK SOLUTIONS

BY THE NUMBERS

Liquidation Marketplace Diverts Hard-to-Sell Items from Landfills www.bstock.com

B-Stock Solutions operates a large network of business-to-business (B2B) liquidation and wholesale online auction marketplaces. By ditching the practice of landfilling excess, obsolete and returned product, and replacing it with a more sustainable B2B liquidation marketplace—for inventory of all conditions— B-Stock’s clients enabled the recycling, repurposing, reuse or resale of just under 70 million items through a total of 137,473 auctions to date. In the past 18 months alone, 45 million items were sold for reuse, resale or recycling. As an example, B-Stock worked with a large cellphone buyback company to build a B2B solution for its collected inventory, so it could auction off bulk quantities of merchandise directly to a qualified buyer base. The organization successfully sold 136,835 devices through 4,205 auctions.

BLG LOGISTICS INC.

Green Is a Commitment to Customers and Society www.blg-logistics.us

For BLG Logistics, green is a commitment to its customers and society. The company takes responsibility for sustainability of local operations, and its effect on regional markets and the environments in which it operates all over the world, although specific actions and initiatives vary by office. BLG, a provider of logistics services for the automotive industry, not only supplies parts for just-in-sequence and just-in-time production, but is also a major distributor of finished vehicles. Overall, the company reduced fresh water requirements per car wash by 85 percent. Additionally, it employs smart systems that provide energy only when needed, while focusing on smart technology to recover and restore energy.

B-Stock’s clients enabled the recycling, repurposing, reuse or resale of just under 70 MILLION ITEMS through a total of 137,473 AUCTIONS to date

BY THE NUMBERS

BLG Logistics reduced fresh water requirements per car wash by

85%

CASESTACK

Consolidation Protects Suppliers’ Resources www.casestack.com

CaseStack’s Retailer Consolidation Program protects suppliers’ resources by: providing proportional full truckload pricing instead of less-than-truckload (LTL) rates, boosting on-time performance, maximizing instock rates, limiting the potential for damages/shortages and lowering logistics costs. Consolidation programs help conserve natural resources by reducing dock congestion, improving warehouse efficiencies and decreasing the number of trucks on the highway. The resulting supply chain consumes less energy and produces less carbon emissions. CaseStack’s retailer partners experience increased supplier price competition, inventory turns and efficiency, and decreased order minimums, safety stock levels, inventory costs, vendor management time and costs, dock congestion and lead times.

CASS INFORMATION SYSTEMS INC.

BY THE NUMBERS

Digitizing and Reducing the Paper Chain

Over

Cass Information Systems helps clients meet green supply chain goals by accelerating electronic interchange between Cass, customers and freight carriers. The company eliminates the use of paper by: averaging an annual EDI freight invoice percentage of over 75 percent; receiving electronic carrier invoices; accepting electronic shipment documentation; digitizing customers’ transportation tariff and rate information; and posting customer routing instructions online for carriers. In fact, over 99 percent of Cass payments and remittance advice to carriers are electronic. Business intelligence also provides data for shipment optimization, such as consolidating shipments, reducing expedited shipments, route optimization, etc.

of Cass payments and remittance advice to carriers are electronic

www.cassinfo.com

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99%

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2016 GREEN SUPPLY CHAIN AWARDS BY THE NUMBERS

Celestica delivered approximately 50 percent in savings to its customer by eliminating more than 30 transportation routes—equating to a

94 % CARBON FOOTPRINT REDUCTION

BY THE NUMBERS

DSC Logistics tracks sustainability on SIX METRICS— electricity, natural gas, water, propane, recycling and waste tonnage— ACROSS MORE THAN 40 LOCATIONS BY THE NUMBERS

D.W. Morgan reduced overall inventory by 30 percent, decreased transportation by 35 PERCENT and eliminated the highest urgency, most carbon-intensive expedited shipments

CELESTICA INC.

A 94 Percent Carbon Footprint Reduction www.celestica.com

Celestica receives, inspects, refurbishes, remanufactures, repairs, configures and redistributes products to maximize the value of customers’ returns. The company’s knowledge of product-level environmental legislation requirements and parts harvesting also help to divert good products from landfills. One of Celestica’s customers sought to reduce the cost of its operations by consolidating repair from more than eight sites to one, while providing in-region repair depots capable of triaging product. Celestica created three regional repair facilities, which were managed by a control tower that monitored event management and visibility for the entire network. Celestica delivered approximately 50 percent savings to the customer by eliminating more than 30 transportation routes—equating to a 94 percent carbon footprint reduction.

DSC LOGISTICS

Reducing Trucks on the Road and Miles Traveled www.dsclogistics.com

DSC Logistics’ Sustainability Committee oversees support for pilot projects and network-wide rollouts, sustainability education, and metrics and benchmarking. The company tracks sustainability on six metrics—electricity, natural gas, water, propane, recycling and waste tonnage—across more than 40 locations. Consolidated shipping, its Environmental Protection Agency (EPA) SmartWay certification and a strict no-idle policy are just three parts of its transportation-focused sustainability efforts. Plus, by consolidating multiple customers with a single destination onto a shared truck, the company can reduce trucks on the road and miles traveled. DSC’s yearly goals include further waste stream reductions and using strategic supply chain modeling to reduce logistics center footprints.

D.W. MORGAN COMPANY

Reducing Trips through Synchronized Routing www.dwmorgan.com

Before D.W. Morgan Company optimized ground movement for a major original equipment manufacturer (OEM) client in Malaysia, the flow of goods was managed by 11 different partners, requiring 51 one-way trips per day and resulting in 704 empty truck kilometers. The company created and managed synchronized routing that now only requires 37 trips per day (a 27 percent improvement) and reduced empty kilometers by 36 percent, while creating new backhaul opportunities. In another case, a client used Inventory On Demand to have D.W. Morgan take ownership of goods at origin in Asia. Through its active management, D.W. Morgan reduced overall inventory by 30 percent, decreased transportation by 35 percent and eliminated the highest urgency, most carbon-intensive expedited shipments.

ECOVADIS

Sustainability Ratings and Performance Improvement Tools www.ecovadis.com

EcoVadis is a collaborative platform that provides sustainability ratings and performance improvement tools for global supply chains. The EcoVadis methodology, which covers 150 spend categories and 140 countries, is at the core of its corporate social responsibility (CSR) analysis system, which covers 21 criteria across four themes, including environment, fair labor practices, ethics/fair business practices and supply chain. Over 70 percent of participating companies improve their CSR performance score upon re-evaluation. Furthermore, the network’s scorecard-sharing capability is accelerating transparency. However, each of the company’s more than 30,000 customers—whether buyer or supplier—has their own sustainability story on how they are using EcoVadis. 8

SUPPLY & DEMAND CHAIN EXECUTIVE | December 2016 | SDCExec.com

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Sometimes the best way to use resources...

is to conserve them.

Five of the many ways we’re reducing our environmental impact • Recycling paper, plastics, electronics, batteries, and other materials

At DSC Logistics, we are: • Reducing fuel usage and carbon emissions with network modeling, shipment consolidation and transportation collaboration • Saving water with green-scrubbers that use 70% less water to clean our Logistics Centers • Decreasing paper and packaging waste with an innovative machine that designs each container to fit its contents precisely

• Measuring water, electricity, propane and natural gas consumption and tracking recycling and waste tonnage across our network to monitor and drive improvement DSC launched our network-wide sustainability program in 2009 and since then, we’ve won 23 awards for initiatives that conserve resources and reduce costs.

We think greener!

Lead Logistics Partner • Third-Party Logistics • Supply Chain Analysis & Design Network Management • Logistics Center Management • Transportation Management Value-Added Services • Business Process Integration • Supply Chain Visibility Dynamic Supply Chain Management

dsclogistics.com 1.847.635.4952

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2016 GREEN SUPPLY CHAIN AWARDS BY THE NUMBERS

Elemica has delivered approximately 200 MILLION MESSAGES, saving 2,000 cubic meters of landfill space, 22 million liters of water, 21,500 trees and 245,000 kilograms of CO2 emissions BY THE NUMBERS

Whole Foods launched Responsibly Grown by rating hundreds of products with key suppliers, representing more than

50%

of produce nationwide

ELEMICA Eliminating the Wasteful Idling of Trucks www.elemica.com

Elemica provides cloud-based supply chain integration solutions that enable customers to collaborate with trading partners to procure, sell and distribute their products more efficiently. By using the company’s integrated logistics and transportation products, customers lowered their carbon footprints and energy usage by optimizing shipments and loads. Additionally, Elemica’s Road Solution permits companies to book slots/appointments for arrivals or departures, ensuring the right team and equipment are at the dock when necessary, eliminating the wasteful idling of trucks. Since 2004, Elemica has delivered approximately 200 million messages, equating to savings of 2,000 cubic meters of landfill space, 22 million liters of water used in paper production, 21,500 trees and 245,000 kilograms of carbon dioxide (CO2) emissions.

FOODLOGIQ

Supplier Sustainability Rating System www.foodlogiq.com

When Whole Foods Market set out to launch a sustainability rating system—Responsibly Grown—for its suppliers, the company turned to FoodLogiQ to build it. Within the program, prospective suppliers seek approval by entering data about their products, supply chain and certifications into the Whole Foods supplier portal using FoodLogiQ’s software. Once the vendors are approved, the system surveys them on Whole Foods’ standards around growing practices, pesticide use and waste management, among other things, and then qualifies them for the Responsibly Grown listing. Whole Foods stores, in turn, print labels with the designation and place them on signage by the products. Whole Foods launched Responsibly Grown by rating hundreds of products with key suppliers, representing more than 50 percent of produce nationwide.

HIGHJUMP

Attacking Inefficiency through Myriad Greenworthy Products www.highjump.com

The HighJump Warehouse Management System (WMS) better controls product flows and optimizes product movements, which saves energy. HighJump Retail Advantage helps omnichannel customers make better decisions about getting a product to the customer—whether by shipping, delivery or in-store pickup—by determining the most efficient method of fulfillment, which saves energy. Meanwhile, HighJump Transportation Management implements route planning, mode selection and carrier choice to reduce carbon footprints. HighJump Container Advantage, in contrast, optimizes containerization by selecting the proper carton size for the best item arrangement, cutting packing material use. BY THE NUMBERS

ModusLink’s customer realized SAVINGS OF MORE THAN $350,000 in packaging materials, while eliminating 74,000 cubic feet or 88,000 pounds of packaging 10

MODUSLINK GLOBAL SOLUTIONS

Sustainability Comes in Different Packages www.moduslink.com

A major electronics firm challenged ModusLink to identify ways to reduce its greenhouse gas (GHG) emissions and redesign its product packaging using sustainable materials. With ModusLink’s team of engineers analyzing the amount of GHG emissions resulting from various packaging types, then redesigning the packaging, the customer was able to realize savings of more than $350,000 in packaging materials by eliminating 74,000 cubic feet or 88,000 pounds of packaging. In another case, a global consumer electronics firm worked with ModusLink to reduce packaging material costs and increase the logistics efficiency of the packaging. Ultimately, ModusLink helped the client cut paper, fiber and plastic use by 50 percent; reduce shipping costs by 45 percent; and increase pallet density by 157 percent, on average.

SUPPLY & DEMAND CHAIN EXECUTIVE | December 2016 | SDCExec.com

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NEOGRID

BY THE NUMBERS

Big Supporter of Sustainable IT Processes www.neogrid.com

NeoGrid provides solutions which, by their nature, contribute to the sustainability of the supply chain by curtailing paper waste through the use of EDI. Furthermore, NeoGrid solutions are operated in the cloud, which saves energy because the thousands of companies that interact with one another via these solutions are able to use the same solution, at the same time, without the need to have a server on each site. Through the use of virtual servers, NeoGrid is able to reduce energy consumption in its data center by 80 percent. Additionally, in 2013, NeoGrid saved 350 tons of paper—the equivalent of about 4,000 trees. These kinds of savings are significant because they also reduce CO2 emissions and landfill pollution.

PERFORMANCE TEAM

Transloading Translates into a Carbon Reduction of 30 Percent www.performanceteam.net

In the past five years, Performance Team transloaded over 250,000 containers using a 3:2 compression standard that translated into approximately 167,000 outbound trailers and a carbon reduction footprint of 30 percent. As of the first quarter of 2016, the company’s fleet was 100 percent updated with EPA SmartWay-approved tires to improve fuel efficiency and performance, while continuing to use SmartWay-certified hybrid trailer skirts on trailers and under trays. This equipment has an estimated fuel efficiency improvement of 4 to 5 percent in California and 6 to 7 percent outside of California. Moreover, Performance Team is installing solar panels for selected facilities in its network, as well as switching from metal-halide lights to energy-saving T-5 florescent fixtures in all of its facilities.

NeoGrid REDUCED ENERGY CONSUMPTION in its data center by

80% BY THE NUMBERS

Performance Team transloaded over 250,000 containers, which translated into a CARBON REDUCTION FOOTPRINT OF 30 PERCENT

PORT EVERGLADES, a Department of Broward County LEED Certification for Green Improvements www.porteverglades.net

Port Everglades employs clean technologies, such as clean-diesel engines and generators, embraces progressive regulations, hosts community/customer awareness programs and actively fosters green partnerships. The port also continues to implement green infrastructure, including remote sensors for energy management and stormwater runoff controls. Port Everglades received its first Leadership in Energy and Environmental Design (LEED) certification for green improvements to a terminal, which included the implementation of: recycled concrete and asphalt in construction; low-flow toilets and fixtures; energy-efficient interior lighting; parking lot lights powered by wind turbines and solar panels; natural lighting; energyefficient air conditioning filters and CO2 monitors; remote control lighting and air systems tied to occupancy sensors; regional materials manufactured within 500 miles of the port; and low volatile-organic-compound products.

PROSHIP INC.

Decreasing Shipping Volumes by up to 50 Percent www.proshipinc.com

ProShip’s CVP-500 fit-to-size packing system automates all steps of package fulfillment for single- and multi-item orders with variable dimensions. As soon as an order is picked, the CVP-500 builds, fills, folds and labels each parcel in one process. Compared to standard cardboard boxes, the CVP-500 can save up to 20 percent on corrugated and eliminates unnecessary void fill by creating a perfect fit around items being shipped. Furthermore, fit-to-size packaging can reduce shipping volumes by up to 50 percent. When Lasaulec, a seller of maintenance, repair and operating supplies, decided to centralize all its logistics activities out of one automated warehouse, it realized it had to handle 300,000 items in a variety of sizes. Lasaulec implemented the CVP-500 and now expects to save €150,000 to €250,000 per year on void fill material.

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BY THE NUMBERS

After implementing ProShip’s CVP-500, Lasaulec now expects to SAVE €150,000 TO €250,000 PER YEAR on void fill material

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2016 GREEN SUPPLY CHAIN AWARDS OTHER GREEN AWARD WINNERS 4flow AG www.4flow.com

HAVI www.havi.com

Security Technologies Inc. www.sectechinc.com

A. Duie Pyle www.aduiepyle.com

Inmar www.inmar.com

Smith Corona Corporation www.smithcorona.com

AFN LLC www.loadafn.com

John Galt Solutions www.johngalt.com

AFS Technologies www.afsi.com

Kenco Logistics www.kencogroup.com

Source One Management Services www.sourceoneinc.com

American Global Logistics www.americangloballogistics.com

LF Beauty (Thailand) www.lifung.com

APL Logistics www.apllogistics.com

LOG-NET Inc. www.log-net.com

ArrowStream www.arrowstream.com

MatchBack Systems Inc. www.matchbacksystems.com

Avendra LLC www.avendra.com

Method www.methodhome.com

Cargo Chief www.cargochief.com

Murphy Warehouse Company www.murphywarehouse.com

CBX Software www.cbxsoftware.com Chainalytics www.chainalytics.com Cisco Systems www.cisco.com Cloud Logistics www.gocloudlogistics.com Comerica Inc. www.comerica.com Crown Equipment Corporation www.crown.com DMW&H www.dmwandh.com Echo Global Logistics www.echo.com enVista www.envistacorp.com

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Paragon Software Systems www.paragontruckrouting.com Penske Logistics www.penskelogistics.com Reverse Recycling www.reverserecycling.com REZ-1 www.rez1.com Rubicon Global www.rubiconglobal.com Ryder System Inc. www.ryder.com Saddle Creek Logistics Services www.sclogistics.com

Spinnaker Management Group www.spinnakermgmt.com Steelwedge www.steelwedge.com Stryker Sustainability Solutions sustainability.stryker.com Supply Chain Optimizers www.supplychainoptimizers.com SYSPRO www.syspro.com Thomson Terminals Limited www.thomsongroup.com ToolsGroup www.toolsgroup.com Tyco Retail Solutions www.tycoretailsolutions.com UNEX Manufacturing www.unex.com VAI www.vai.net Westfalia Technologies Inc. www.westfaliausa.com Yale Materials Handling Corporation www.yale.com

Schenker Inc. www.dbschenker.com

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FEATURE

By Ronnie Garrett

VF Puts

PEOPLE FIRST The apparel and footwear giant gets serious about corporate social responsibility in its supply chain.

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t’s been more than three years since 1,138 workers perished when the Rana Plaza factory collapsed in Bangladesh, yet few have forgotten what might well be the world’s worst garment factory disaster. The tragedy brought international attention to hazardous working environments and labor issues across the globe. Though VF Corporation never had any business in Rana Plaza, the tragedy left a lasting imprint on the U.S.-headquartered apparel and footwear company. The manufacturer, known for top brands that include Vans, Timberland and The North Face, decided not to wait for legislation and regulations to rise out of Rana — JAMES WILEY, COUNTER HUMAN Plaza’s ashes before addressing TRAFFICKING COMPLIANCE SOLUTIONS potential problems with factory conditions, worker safety and sustainability within its own supply chain. “We were not involved with Rana Plaza, but we are a very large global player and Bangladesh is a pretty significant country for us,” says Tom Glaser, vice president, and president of supply chain for VF Corporation. “We stepped back after the event and said, ‘What can we learn from this incident? What can we do differently?’ We decided there was a real opportunity for us to take our corporate social responsibility (CSR) efforts to a new level.” VF joined the Alliance for Bangladesh Worker Safety and immediately set to work boosting factory conditions among its suppliers in that country. “And we learned a lot,” says Glaser. “We learned that the electrical safety wasn’t where we wanted it to be and that it was an area we could

“COMPANIES MIGHT SAY [CORPORATE SOCIAL RESPONSIBILITY] COSTS TOO MUCH MONEY, BUT IT WILL SAVE A COMPANY MONEY IN THE LONG RUN.”

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significantly improve, and improve we did.” The company added measures to address factory and working conditions within its supply chain to its decade-old CSR program. VF then split its supply chain teams into two parts: One focuses on products, raw materials and traceability of those materials, quality standards, and product certifications; and the other focuses on factory operations that include worker safety, working conditions, factory safety and environmental stewardship. Glaser then followed sage advice received early in his career: “If something is important, make it someone’s job.” To that end, he appointed Sean Cady as vice president of global supply chain and responsible sourcing to head the company’s twopronged CSR effort and share its best practices with suppliers across the globe. “Before, [CSR] wasn’t fully integrated, it wasn’t owned, and it wasn’t measured,” says Glaser. “But we found that, when you do these things, there is a really big value. Besides taking care of people, you gain much in terms of business outcome.” VF Corporation offers a shining example of good CSR—an effort many companies don’t fully consider the value of until after a disaster the magnitude of Rana Plaza occurs. It’s essential for global companies to know their supply chain and help it address social responsibility gaps. “Companies might say [CSR] costs too much money, but it will save a company money in the long run,” adds James Wiley, COO of Counter

SUPPLY & DEMAND CHAIN EXECUTIVE | December 2016 | SDCExec.com

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ADD IN AUDITS

Human Trafficking Compliance Solutions. Because, even if a company does not directly place business in a factory that isn’t following the rules, when a tragedy occurs, its brand will be tarnished. “It’s hard to put a price tag on that,” he says.

CODE OF CONDUCT COMPLIANCE Good CSR, such as that put in place within VF Corporation, begins with corporate policy. Companies need a code of conduct that provides guidelines for CSR topics, such as child labor, wages, overtime, safe working conditions, forced labor, human trafficking and more. “It doesn’t matter what product a company makes,” says Greg Gardner, president and CEO of Arche Advisors, a supply chain auditor. “The code of conduct is about the people who make the product and the environment they work in.” The code of conduct should be part of the contractual agreement communicated to suppliers, and once suppliers agree to it, it must be regularly assessed and measured, states Gary Barraco, director of global product marketing for Amber Road. “The end goal is to make sure we are getting the right products from the right partners—which means they are socially responsible—at the right price,” he says. If a supplier does not meet these guidelines, companies must either force them to step up their efforts, help them comply or stop working with them. “Sometimes, you have to cut off a supplier,” Wiley says. “But as much as possible, we encourage companies to put mechanisms in place to help.”

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VF Corporation, which has a code of conduct for suppliers, owns and operates factories in the United States, Mexico, Honduras, Nicaragua, Turkey, Argentina and the Dominican Republic, but the company also sources more than 25 percent of its products from suppliers in Asia. Years ago, VF developed the Ideal Plant Model (IPM) to improve its own facilities. The objective of the IPM is to take standards developed in the United States by the Occupational Health and Safety Administration (OSHA) and the National Fire Protection Association (NFPA), and apply them to VF facilities in other countries. “We do peer reviews and inspections, and have third parties perform audits to make sure we operate as safe a plant as possible and provide optimal working conditions for employees,” says Glaser. VF since extended this program to supplier facilities and conducts CSR audits for its partners. These reviews look for child labor, excessive work hours, forced labor, slavery and poor working conditions, as well as consider a supplier’s sustainability efforts, fire and building codes, worker training and corporate policies. “We have a team that’s strongly focused on ensuring workers are working in safe and healthy conditions, and the environment inside the factory

“THE END GOAL IS TO MAKE SURE WE ARE GETTING THE RIGHT PRODUCTS FROM THE RIGHT PARTNERS— WHICH MEANS THEY ARE SOCIALLY RESPONSIBLE—AT THE RIGHT PRICE.” — GARY BARRACO, AMBER ROAD

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FEATURE A CORPORATE SOCIAL RESPONSIBILITY ROADMAP Sean Cady, vice president of global supply chain and responsible sourcing at VF Corporation, offers some suggestions for those dipping into corporate social responsibility (CSR) for the first time:

WW1) Get buy-in. The senior

is protective of their safety,” says Cady. “Protecting workers is our ethos. These workers touch our products every single day. Without them, we wouldn’t have products to sell.”

CSR SUCCESS

The results of VF’s efforts extend across its entire supply chain, but the following example offers a unique snapshot of how the company helped K.V.E. Group in China, which produces Vans and REEF shoes, WW2) Determine where you are and improve working conditions. where you want to go. When it K.V.E. had been a supplier comes to CSR, there is a lot of of VF’s since 2008 when a opportunity—from workplace third-party audit gave it a improvements to sustainability rating of “pending rejection” efforts. “If a company just starting and identified key areas for out does not understand where improvement. The audit showed it wants to create change, it may the supplier fell short in its fire become too complex and that control and construction permits complexity may lead to inaction,” in two of its 35 buildings, had he says. “Deciding on one or two extensive overtime for workers areas to focus on initially can create (in at least one instance), change and build momentum, and and less than adequate social foster more change.” insurance coverage. WW3) Track results. Follow the results Third-party audits, such you see once changes are made. as the one VF did for K.V.E., “We have a scorecard we use to make sense because they measure our results,” he says. “We allow an impartial person to have a number of key performance evaluate working conditions at indicators (KPIs) that we measure a facility. This audit interviews against so we can see how much workers and supervisors, looks value and progress we are making at procedures and policies, and in each of those areas.” makes recommendations for improvement. And things should all match up, says Gardner. “If a manager tells you the company has fire drills four times a year, but workers tell you they’ve never participated in a fire drill and they’ve been there three years, you need to ask why.” VF’s third-party audit gave K.V.E. leadership concrete suggestions for improvement. But VF leadership also partnered with factory representatives to remediate identified problems in order for its rating to improve. With VF’s help, K.V.E. addressed fire protection by adding facility-wide sprinkler systems, fire alarm management team needs to buy in to the CSR effort. “Without the CEO endorsing work around CSR, I think a company new to this won’t make as much progress as they otherwise could,” says Cady.

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systems, fire control centers, and fire extinguishers, fire hydrants and emergency exits. The company also began broadcasting fire drill procedures over the lunch hour and holding a fire drill every quarter. K.V.E. then established a labor union and worker representative organization to give every worker an opportunity to participate in the improvement process. If employees have suggestions, they can raise them via the labor union, worker representative or suggestion box, and the improvement team will test the suggestion. If the suggestion is doable, it will be announced and the worker is given a cash reward. On the sustainability front, K.V.E. added 50 knitting machines and four fabric trimming machines to replace aging equipment and reduce pollution, and upgraded factory lighting. Through VF’s assistance, the company also extended improvements to the town of 17,000 residents where the company resides. To help its 4,300 employees, K.V.E. provided a clinic and counseling, as well as financial support for employees in need. The factory operates a canteen and provides dinner allowances to each employee. “We help factories improve the communities in which their workers live,” says Cady. “We learned that doing this helps make better workers because they are healthier, and not as concerned about their families or their children. The turnover is lower and they’re producing better quality products.” Over time, K.V.E. moved the needle of its rating to “accepted” and then to a developmental rating (which shows that the company continues to improve). VF continues to track the firm’s progress, reviewing its efforts regularly, and aids the firm with worker training initiatives designed to build employee knowledge. Most of these improvements were paid for by VF, which Gardner says makes perfect sense. “When you find the right partners, you help them clean up and meet your standards, and you have a long-term relationship,” he says. K.V.E. is just one example of many for VF, but before one starts thinking the company has it all figured out, Glaser is careful to say that good CSR is an ongoing effort. “We are a long way from making this perfect,” he says. “However, we’re heading in the right direction. What would have been acceptable five years ago is no longer acceptable today. We continue to learn and get better at this, and we plan to continue our journey.”

SUPPLY & DEMAND CHAIN EXECUTIVE | December 2016 | SDCExec.com

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ADVERTORIAL

Understanding the First Mile in Manufacturing By Simon Drexler, Director of Industrial Solutions at OTTO Motors

A

s the final step in supply chain, the Last Mile has always been a focus of improvement: “How do we cut costs? How do we get goods to the customer faster than on-time?” New processes and modern technologies have been integrated into the Last Mile to account for changing customer demands. But what if these methodologies were applied to indoor logistics? The Last Mile, although paramount to the customer, is only half of the equation.

Shifting Focus Within the Supply Chain

The entry and flow of goods through a facility are often neglected or overlooked, yet they resemble challenges experienced in the Last Mile. If manufacturers eradicated conventional thinking of how to get inventory to the line faster, cheaper and more effectively, significant impacts would be recognized and reflected throughout the supply chain process. With this line of thinking, parallels from the Last Mile can be applied to operations inside industrial centers to generate improved productivity within what is called the First Mile.

What is the First Mile in Manufacturing?

The First Mile is the flow of materials within the facility supply chain to create a finished good before it is delivered to the next destination in the supply chain. It is a set of fulfillment processes founded on material transport that reflect ideologies within the Last Mile. When executed with lean best practices, focus on the First Mile ensures that the transport and assembly of materials occur in an optimal fashion.

The Last Mile vs First Mile

Much like the Last Mile, the First Mile is becoming increasingly competitive and innovative, and relationships between suppliers and outgoing distribution centers have never been more important, what with evolving customer demands and an always-growing competitive landscape. Much like the Last Mile, the First Mile also entails the following:

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W Materials need to move quickly and accurately from a point of origin to a point of destination W Providers are deeply concerned with on time delivery at a competitive price. W Emerging technologies have been designed to optimize applications in supply chain spanning 3D printing, wearables, aerial delivery drones, and self-driving vehicles.

Impacts of First Mile Automation

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FEATURE

By Ronnie Garrett

WORLD STAGE

With the Paris Agreement promising further carbon emissions regulations, how can companies manage upstream emissions within the supply chain?

I

n December 2015, United Nations delegates turned the corner on how climate change should be addressed when they ratified the Paris Agreement. This landmark agreement shows world leaders are serious about ratcheting down carbon emissions. The next step is to establish regulatory mechanisms to drive down emissions and remain below a 2-degree Celsius increase in mean temperature. But this measure, while good for the environment, represents real risk for companies that fail to tackle emissions within their supply chains. Yet many companies are not taking steps to manage upstream emissions. According to Dexter Galvin, who heads the supply chain program at CDP (formerly the Carbon — DEXTER GALVIN, CDP Disclosure Project), “Large companies effectively outsourced their emissions to their supply chains.” He explains that corporations stepped up their efforts to address climate change internally, but are doing little to impact carbon emissions in the supply chain. “Many major global corporations realized the lowhanging fruits of energy efficiency. They achieved those quick wins and are now tackling the harder measures in internal energy efficiency,” Galvin says. “But few companies are actually engaging their suppliers in any meaningful way on climate change.” He reports this sets off alarm bells for CDP. “For average manufacturers, four times their emissions

actually exist in their supply chain. For retailers, up to 10 times their total emissions can be in the supply chain,” he says. “If companies are not doing anything to manage upstream emissions, it’s a huge risk.”

RANKING THE SUPPLY CHAIN In 2008, CDP began requesting environmental information from suppliers on behalf of its 89 member organizations, which represent some of the largest companies and purchasers in the world. In 2016, more than 8,300 suppliers worldwide received CDP’s disclosure request. This year, for the first time, CDP will rate companies according to whether they are engaging their suppliers on emissions, whether their procurement teams are incentivized to meet company goals in this effort, whether the organization set targets for emissions reductions in their supply chain and whether the company can quantify the scale of emissions in their supply chain. CDP released the methodology for its new rating system in August and will publish the names of the best performers in its annual supply chain report, set for release on Jan. 24, 2017. “This ranking assesses the breadth and depth of a company’s engagement with their supply chains,” Galvin says. “As we developed this methodology, we thought it would be a powerful framework for companies to use to work out how to engage their suppliers in the first place.”

“LARGE COMPANIES EFFECTIVELY OUTSOURCED THEIR EMISSIONS TO THEIR SUPPLY CHAINS.”

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Existing supplier engagement levels are low—in CDP’s last supply chain report published in January 2016, just 25 percent of the responding companies had insight into what their suppliers were doing in regard to carbon emissions. “The member companies are doing great—they’re doing the work and are certainly leaders, but more companies need to start better managing the emissions in their supply chains,” says Galvin. CDP’s study highlighted ignorance about carbon emissions within the supply chain. For instance, Galvin says, “Of the key suppliers [or the surveyed suppliers selected on the basis of spend], we had a 51 percent response rate, suggesting that the remaining 49 percent are not taking action, or do not have the insight or the expertise to take action.” Those companies failing to take action commit themselves to potential risks down the line. “The world committed to a reduction target and we know regulations are coming, and with the vast majority of large corporations’ emissions actually in the supply chain, it’s increasingly foolhardy and unacceptable that more companies are not managing this issue in the supply chain,” Galvin adds. He stresses the increased frequency and severity of extreme weather events is another reason why companies should take notice. In fact, 70 percent of the suppliers surveyed last year reported they believe their weather-related risks from climate change will increase, and 50 percent reported already seeing changes in precipitation and other weather patterns.

Timberland and North Face, discloses its carbon footprint to CDP annually. “We measure our carbon emissions, Scope 1 and Scope 2, every year,” says Sean Cady, vice president of global responsible sourcing at VF Corporation.

HOW TO LEAD THE WAY Not every company is failing at the helm, however. Some forward-thinking corporations, like VF Corporation, are already addressing their emissions. This global leader in branded lifestyle apparel, footwear and accessories, with more than 30 brands including Wrangler,

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FEATURE “Scope 1 is our direct emissions and Scope 2 is the emissions from the electricity we use.” In 2011, VF Corporation set a target to reduce its overall carbon emissions by 5 percent by the end of 2015. It achieved a 12 percent reduction instead. With this win under its belt, the company is committed to achieving the same results within its supply chain. The company aids its suppliers in building greater energy efficiencies into their factories and their logistics operations. The results VF achieved can be emulated by others when organizations follow a few key steps. In CDP’s 2015–2016 supply chain report, Business for Social Responsibility suggests companies adopt the following framework to improve climate resilience: Identify supply chain priorities. These include areas of the supply chain with high greenhouse gas (GHG) emissions and high climate vulnerability. Key categories of spend and relevant operational geographies should be assessed. In order to identify priorities, it’s important for purchasers to understand the types of suppliers that are likely to be less resilient. Special attention should be

given to non-reporters and first-time reporters in CDP’s annual report, which are more likely to be less resilient than others, and to those suppliers with little or no management action in place, which are likely to be behind others in reducing emissions and addressing climate risks. Take action and develop targets. Purchasers should engage with suppliers to encourage action and develop targets for performance. Procurement actions should include requests for information. This data should be collected in a standardized way and adhere to GHG protocol standards. It should also include buyer financial incentives; supply chain engagement targets; requests for specific supplier management activities, such as board-level responsibility; and collaboration to drive performance. Evaluate impact. Monitoring, evaluating and reporting help companies understand how different actions contribute to achieving targets. Suppliers reporting on climate risks, management and emissions is an important element for purchasers that are evaluating their supplier engagement programs.

Control the chaos. Today’s manufacturing companies often struggle to get visibility into their complex logistics operations. iManage™ is a high value asset tracking solution that monitors and tracks the flow of parts, assemblies, and containers throughout the supply chain. Receive instant alerts when the tracked assets deviate from pre-established routes, or when problems occur. Identify waypoints, dwell times, and use dynamic geo-zone capabilities with directional tracking to improve profits by controlling a dynamic and often hard to manage supply chain. Control the chaos in your supply chain with iManage. To learn more about iManage call 1-877-980-6208 today or visit numerex.com/imanage © 2016 Numerex Corp. All rights reserved. Numerex is a registered mark of Numerex Corp.

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SUPPLY & DEMAND CHAIN EXECUTIVE | December 2016 | SDCExec.com

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MADE IN AMERICA By Lara L. Sowinski

Photos by: Cynthia Y. McCann

UNLOCKING THE KEY to the Stradivarius Violin

Dr. Charles R. Ervin brings long-lost Italian innovation to America.

W

hile America’s manufacturing dominance has been diminished by offshoring and the rise of automation, there is an undeniable resurgence and renewed appreciation of American craftspeople, engineers and innovators who are once again elevating the art of making things. Dr. Charles R. Ervin is an Austin, Texas-based maker and restorer of fine stringed instruments and bows (www. ervinviolins.com). His life’s work focuses largely on the violins and other stringed 22

instruments produced by Italian masters, such as Amati, Guarneri, Ruggieri and, of course, Antonio Stradivari. Through his meticulous research and dedication, Ervin is not only preserving the centuries-old art of violin making, but equally important, raising awareness among contemporary instrument makers, players and others in the music community about the construction, design, science—and most recently, the secret—to crafting modern-day instruments on par with those of the great masters.

HIS JOURNEY STARTED AT A YOUNG AGE “When I was 4-years-old, I saw a picture of a violin and thought it was the most extraordinary, beautiful shape

Dr. Charles R. Ervin at his studio in Austin, Texas, surrounded by various old-growth trees.

I had seen in my four short years, and I wanted to know why it was so compelling. Then, when I was 7-years old, I read about Stradivari (1644– 1737) and that he lived in Cremona, Italy, and was one of the principal makers of this instrument,” says Ervin. “I hoped that there might be something left over that would give me insight into the beauty of the shape. I was determined that, at some point, I would go to Cremona, follow in his footsteps, look in attics and basements, and see what I could find.” What he found eventually answered the question as to why the instruments produced by makers from the Cremonese School during the 17th and

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18th centuries were far superior to any instruments produced previously, and to this day, are regarded as among the most desirable. Ervin left for Cremona at age 34. He lived there for four years and, during that time, studied at the Cremona School of Violin Making. “The greatest violin makers were living in Cremona between 1550 and 1750. Their instruments are valued for their beauty in sound, but something happened around 1750 that produced a decline in quality,” explains Ervin. While violin making has remained essentially unchanged over the last 500 years, “knowledge of the violin’s invisible architecture has been lost,” he says. Ervin’s ongoing quest to unlock the secret of this golden period of instrument making was rewarded with a remarkable clue he uncovered while studying in Cremona, which he finally made public on February 27, 2014, during a lecture at the University of

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“The violin is a very disciplined engineering project whose purpose is great music based on Pythagorean ratios.”

Texas at Austin, in conjunction with the Menuhin Violin Competition (www.vimeo.com/96826212). It all rests, in succinct terms, with Pythagoras’ theory that primary musical intervals, such as the octave, fifth, fourth, major third and minor third—those most pleasing to the human ear—are expressible in simple mathematical ratios that not only harmonize mathematically, but also musically. And most astonishing, these intervals served as the precise mathematical template upon which Stradivari designed his instruments. Far from a happy accident, Stradivari’s application of Pythagorean principles resulted in instruments still revered for

their exceedingly beautiful tone color, and ability to resonate to the very core of players and listeners alike. During the course of his work, Ervin’s methodical calculations, observations and studies of actual instruments also revealed a deviation in the placement of the F-holes in Stradivarius violins. They were asymmetrical—an intentional design that added to the sound complexity of the instruments. Ultimately, “[Stradivarius violins] submit to geometric analysis,” emphasizes Ervin. “And dare I say it … to intelligent design.” He adds, “The violin is a very disciplined engineering project whose purpose is great music based on Pythagorean ratios.” Stradivarius violins and instruments from the great masters are not going to be around forever, Ervin says, “but to keep the art of these instruments alive, you have to know what that art is.” Indeed, Ervin and others committed to sustaining and advancing their art amid a world driven by mass production, consumption and disposable goods are a treasured American resource bound by this common philosophy and quest.

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SPECIAL REPORT THE INTERNET OF THINGS

By Ronnie Garrett

TAMING BIG DATA in the IoT by the

numbers Supply chain decision-makers reporting they have an IoT strategy in place

64% 87%

Report plans to expand their use of IoT technologies

60% 69%

Say they plan to or have already deployed IoT monitoring and sensor solutions

Believe they will see a return on their investment within 24 months

Big Data from IoT sensors remains untamed, but companies like UPS are finding ways to harness the power of this information.

I

n the popular children’s book, “Where the Wild Things Are,” the young man in the story sails on a boat to a faraway land where he tames the wild things and leads them in a wild rumpus. Though the story of the Internet of Things (IoT) and Big Data involves sensors and terabytes instead of wild animals, the overall theme is largely the same. Currently, the IoT is running wild, collecting piles of data that often sits gathering virtual dust in cloud-based homes. And, in many businesses, that’s where the tale ends. These businesses lack a data-tamer able to analyze the information and glean actionable intelligence. However, companies, such as United Parcel Service (UPS), are now taming the Big Data beast and using it to their advantage.

IoT in Supply Chain and Logistics Report by AT&T and eft

As one of the world’s largest shipping companies, UPS delivers more than 16 million packages per day to an estimated 7.9 million customers. This company is using IoT sensors and Big Data analytics to save money, improve efficiency and lessen its environmental impact, says Jack Levis, senior director of process management. “We put a telematics device on our vehicles to gather data from more than 200 sensors in the engine. We added additional [IoT] sensors to gather information about things like seat belt status, bulkhead door operation, engine on/off, etc.,” he says. “UPS analyzes this data after the workday ends to produce an array of information regarding the day’s deliveries.”

BY TERA

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FIC

IoT

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IEN


FF

SPECIAL REPORT THE INTERNET OF THINGS

“The winners [in the IoT] will be those that derive the most value from their connections—not those that simply connect the most devices to their networks.”

This data is helping the global shipping giant reduce idling time, fuel consumption and harmful emissions, while improving driver safety. Levis explains that supervisors can analyze what happened the day before in a fraction of the time it used to take, and “the system highlights anomalies for the supervisors’ review and follow-up.” UPS is also using Big Data in its project ORION, which stands for On-Road Integrated Optimization and Navigation. ORION collects information from package flow technologies regarding the packages the company delivers, then evaluates customer needs, and business and labor rules to determine the most efficient ways to serve customers. According to Levis, the first step in implementing the ORION system was determining the best ways to serve all customers while meeting business rules. “This portion completed deployment and is saving 100 million miles per year,” he says. Later versions of the system will handle changes on the fly, such as when a customer

has an unplanned need, and ORION will help determine the best way to adjust to these changing conditions. Eventually, ORION will aid in deciding which packages should go on each route. As UPS found, “The winners [in the IoT] will be those that derive the most value from their connections—not those that simply connect the most devices to their networks,” reads “Attaining IoT Value: How to Move from Connecting Things to Capturing Insights.”

FOCUS ON THE DATA Unfortunately, “IoT discussions still focus too much on the things,” writes Paul Miller in “Streaming Data from

the Internet of Things Will Be the Big Data World’s Bigger Second Act.” “[But] the data is far more useful and interesting …” he adds. “IoT projects succeed when the business has a good idea of what it wants to achieve with the data.” Sean Riley, director of strategic business solutions at Software AG, agrees, stating, all too often, companies put IoT sensors in place with little insight into how they may use the data; and therein lies the greatest issue.

SE N SO R S ICI

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MONEY

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SPECIAL REPORT THE INTERNET OF THINGS Ingesting and analyzing IoT data must be a consideration from the get-go, stresses Riley. Companies must decide how to leverage IoT data to understand what’s happening in the supply chain in real time, then use the data to run short-term predictions to make the supply chain more precise. These things cannot—and should not—be seen as separate. “You really can’t have one without the other,” Riley emphasizes. Marcia Walker, a principal consultant at SAS Institute, stresses not all data coming from IoT sensors should be saved for analysis. “A lot of people assume that all data is good data and all data is valuable data, and that isn’t necessarily so,” she says. Both Riley and Walker maintain it is essential for companies to collect and save the data needed to answer specific questions. For example, let’s

“A lot of people assume that all data is good data and all data is valuable data, and that isn’t necessarily so.”

say a company is having issues with its products arriving on time. The questions this company wants the data to answer include: Is my product leaving the warehouse on time? When are products getting to customers? Many times, a company is using a third-party logistics provider to manage the shipment and it doesn’t know there is an issue until customers start asking why their shipments did not arrive on time. “I want to understand where my product is, when it’s going to arrive, and that’s where streaming data from my partners and the shipment itself may be used to continuously calculate the estimated time of arrival, which can then be run against the customer’s required delivery date,” he says. “If there is a deviation, I can take action.” With data in hand, a company may

SAP IOT CONNECTS THE WORLD SAP announced plans to spend $2.2 billion over the next five years to build out its Internet of Things (IoT) capabilities and kicked off this effort by acquiring two IoT-related companies. The company’s first step in the five-year push was to acquire PLAT.ONE and Fedem Technology to expand the capabilities of SAP HANA in the IoT space. PLAT.ONE offers technologies that simplify the creation, deployment and management of complex IoT offerings. Fedem’s technologies will enable SAP engineers to build an analytics solution that allows organizations to get a continuous and up-to-date view of their operating assets through sensors. The offering will give businesses information on when maintenance is required and predict how much longer assets will operate. Another part of the IoT initiative is what SAP officials are calling Industry 4.0 packages, which will make it easier for manufacturers and other industrial firms to increase IoT connectivity to help monitor equipment and shop floor operations. SAP will introduce a third Industry 4.0 package—which officials call the advanced package—at a later date. The third package will add features such as advanced manufacturing insight and controls, machine learning and predictive analysis. In the future, SAP officials also plan to create IoT labs across the globe to help customers maximize their use of the technology. The labs will be located in Berlin; Munich; Palo Alto, California; Shanghai; and Johannesburg, South Africa.

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— MARCIA WALKER, SAS INSTITUTE

be able to contact its customer and reschedule the delivery. If the product is delayed in an overseas shipment, it may schedule a second shipment via air freight if on-time performance is critical. But, he says, “Your options are somewhat limited if you’re just looking at what’s happening right now.”

RECAPTURE CONTROL The areas the IoT really makes sense is with inbound commodities sensitive to temperature, vibration, and/or those required to meet specific regulatory and company testing requirements, notes Riley. “Here, the IoT allows enterprises to understand what’s happening in their supply chain, and regain control quickly and easily.” He provides a basic example in which a retailer is buying lettuce from a particular company. That retailer wants a guarantee that it will have a set shelf life for the shipment. But shelf life is shortened if the lettuce isn’t kept cold enough. “If I’m tracking the IoT coming from the telematics sensors on the truck, and I have a service-level agreement (SLA) that says the lettuce cannot be above 44 degrees Fahrenheit (F), and I see from the data that the ambient temperature inside the reefer unit was 46 degrees F for three hours, I now have options,” he says. “I can determine how much inventory of lettuce I currently have, then I can either reject that trailer completely or negotiate a revised agreement to sell the lettuce at a discount.”

SEE THE UNSEEN To progress along the IoT data highway, companies should follow three main steps in their journey— integration, automation and analytics: ■■Integration. “Data isn’t always pretty,” says Walker. Integration

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SPECIAL REPORT THE INTERNET OF THINGS takes the data and puts it into a format that is consistent and readily understood. Siloed datasets also must be combined into a single dataset for the data to be of use. ■■Automation. This step gathers the data in a timeframe that makes sense. Real-time data gathering isn’t always necessary, says Walker, but data must be collected at predictable and consistent intervals. ■■Analytics. The data needs to be easily visualized so that someone can analyze it and see patterns. It must be possible to use the data for predictive modeling purposes, i.e., using it to anticipate what will happen next. And it must then be used for prescriptive modeling, which suggests actions to take based on the analysis. Accomplishing these steps requires data visualization. “Often, people get all excited about the predictive and prescriptive part, without having done the groundwork of basic visualization, that is, being able to see what their data looks like and what kinds of patterns there are,” Walker says. This is where technology comes in. Deriving intelligence from IoT data requires companies to invest in technology that enables them to ingest the data quickly and easily. “This technology needs to give them fairly robust connectivity to their partners,” Riley adds. He explains that, in some instances, manufacturers need to rely on their logistics partners to collect streaming IoT or telematics data. Manufacturers then require a robust application program interface (API) to gather the data in one place. The second tool, he believes, is critical for manufacturers is one that allows continuous streaming analytics. This tool takes the data they are ingesting and analyzes it in real time to understand what it means. A

continuous streaming analytics tool also must be able to aggregate data in real time and push it to a predictive modeling capability inside the tool in order for analysts to run short-term predictions with ease.

POWERFUL INITIATIVES POSITIVE IMPACT At Port Everglades, we’re implementing progressive ways to help protect Florida’s environment. We purchased tier 4 Diesel-fueled generator sets to power gantry cranes, reconfigured roads to reduce congestion, and used sustainable building materials for renovations. We’re also landscaping with drought-tolerant plants, nurturing thousands of mangroves, and planning for innovative approaches to reef mitigation. To learn more about Port Everglades’ green initiatives, visit porteverglades.net/environment

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“They can bring in data and look for patterns, and once they find a pattern, they can keep narrowing it down until they can very quickly see the problem,” Walker says. “In the past, this would have taken months; now, it’s done in minutes.”

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SPECIAL REPORT PROCUREMENT

By Ronnie Garrett

World-Class

PROCUREMENT Three procurement professionals weigh in on what they see as the best practices of top procurement operations.

A

“PROCUREMENT TEAMS NEED TO MAKE SURE THEIR STRATEGIC PLAN ALIGNS WITH THE OVERALL GOALS AND OBJECTIVES OF THE COMPANY.” — ANDREW BARTOLINI, ARDENT PARTNERS

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merican businessman Tony Robbins once quipped, “If you do what you have always done, you’ll get what you have always gotten.” All too often, procurement operations fall victim to doing just that—doing what they’ve always done, yet expecting different results. But in a world in which procurement practices can determine the success or failure of a business, this is no longer acceptable. There is increased pressure for procurement operations to contain costs, as well as transform and improve operations. Supply & Demand Chain Executive recently talked with three top procurement professionals to gather their insights on best practices that can lead to improved productivity and stronger financial performance.

ANDREW BARTOLINI MANAGING PARTNER Ardent Partners Andrew Bartolini is a globally recognized expert in sourcing, procurement, accounts payable and supply management. As managing partner and chief research officer at Ardent Partners, Bartolini focuses his research and efforts on helping enterprises develop and execute

strategies to achieve operational excellence within their procurement and finance departments. He also publishes CPO Rising, an independent media site written by procurement professionals for procurement professionals. Here is what this expert, who has made Supply & Demand Chain Executive’s Pros to Know list multiple times, says are the best practices of world-class procurement teams: 1.) Be visible. The foundation for best-in-class procurement starts and ends with visibility—that is, visibility into spend and visibility into the process. This begins with spend analysis, and ideally, we’re talking about an automated process that extracts the spend information from many transactional systems, and allows procurement and sourcing professionals to understand what’s being bought, from whom, for how much and what type of cadence. 2.) Align with organizational goals. Today, most procurement organizations have a strategic plan in place, but these plans are not well aligned with the overall objectives and goals of the business or the executive team. Procurement teams need to make sure their strategic plan aligns with the overall goals and objectives of the company. Doing so requires CPOs to proactively engage with other executives to fully understand what the C-suite prioritized for the upcoming

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SPECIAL REPORT PROCUREMENT

year. Then the procurement leadership team needs to meet and figure out what they can do to support those objectives. If it’s not a top priority of the overall company, it should not be a top priority of the procurement organization. 3.) Be more agile. Agility is the ability for procurement to adeptly connect tools, resources and expertise in support of the business’ everchanging needs. It also includes the ability to anticipate and adapt to dynamic change within organizations and their supply chains. CPOs can develop a forwardlooking agenda designed to help operate predictably in the face of uncertainty, complexity and constant change. This customized procurement agility agenda should embed the procurement organization with agile and innovative characteristics, while maintaining discipline and efficiency. The critical areas in the agenda include organization, processes, strategy, technology and performance. 4.) Process automation. Ardent Partners’ research found that a fully automated procurement department remains the exception and not the rule. Over the past decade, solutions have become significantly more usable, but also more accessible and faster to deploy. The best way to capture, maintain and retain best practices, and to scale operations, is through supply management, sourcing and procurement technology.

for the procurement profession. The Faculty is recognized as a leading advisor on procurement development, and works with organizations to transform and elevate the role of procurement, build high-performance procurement teams and create professional knowledge networks. Procurious is an online community for procurement professionals to connect, share and learn. Since its launch in 2013, Procurious has attracted approximately 2,000 members from more than 70 countries worldwide. This seasoned professional lists five best practices that are key for worldclass procurement teams: 1.) Get out of the office! It is valuable for the procurement team to get out of the office, and meet with both internal customers and suppliers. Visiting a supplier’s facilities can help you understand a lot more about the category you buy, and identify new ways to reduce costs and add value. 2.) Network within and outside your organization. Procurement teams should be very well connected to the senior management communication flows and working in line with the company’s overall business strategy. Stakeholder engagement is one of the most important skills required to be a successful procurement professional. Best-practice procurement professionals should be able to expertly maneuver themselves and their projects through the minefield of personalities and relationships that make up their business. Understanding your wider network and competing businesses is also

TANIA SEARY, FOUNDING CHAIRPERSON The Source, The Faculty and Procurious Tania Seary is the founding chairperson of three companies specializing in the development of the procurement profession—The Source, The Faculty and Procurious. The Source is a specialist recruitment firm

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“HIGH-PERFORMANCE PROCUREMENT TEAMS NEED TO QUANTIFY AND SHOWCASE THE VALUE THEY DELIVER TO THE BUSINESS.” — TANIA SEARY, PROCURIOUS

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SPECIAL REPORT PROCUREMENT crucial! Every category management plan needs to be developed within the context of the broader business environment. 3.) Keep score! Good key performance indicators (KPIs) are essential. High-performance procurement teams need to quantify and showcase the value they deliver to the business. This not only includes cost savings, but also productivity gains, innovation and risk management. There is a huge opportunity for procurement teams around the world to improve both how they calculate their contribution and how they communicate their contribution. 4.) Have a game plan. Highperformance procurement teams should have an overall plan for how they can deliver against the overall business strategy. They need to

“THE PROCUREMENT OPERATION NEEDS TO CONDUCT BUSINESS ON AN INTEGRATED PLATFORM.” — KAY REE LEE, SAP ARIBA

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break this down, and be clear about individual objectives and KPIs. Top procurement leaders are also obsessed with finding the best people and helping them develop. They support their people by training them in the skills they need and building peer networks that can further develop their leadership skills.

KAY REE LEE DIRECTOR OF VALUE REALIZATION SAP Ariba Kay Ree Lee is the director of value realization at SAP Ariba. Lee has specialized expertise in the procurement, sourcing and vendor management verticals. He is a resultsoriented leader with experience improving the performance of Fortune 500 and small to midsize companies. Before joining SAP Ariba, Lee spent four years as procurement benchmarking program director at The Hackett Group, where he led procurement, and selling, general and administration expenses (SG&A) benchmark projects to measure and improve efficiency and effectiveness. Lee draws on findings in SAP Ariba’s annual benchmarking survey when outlining how to drive worldclass procurement practices: 1.) Appoint a leader. Successful procurement organizations have a leader who manages the entire sourceto-pay process and reports to the CPO. For this model to be effective, companies must give this person ownership and responsibility for the entire spectrum, not just a small part of it. In doing so, they can be sure that the resources and the process are fully managed and overall performance isimproved. 2.) Automate the process. Procurement needs to be managed on an integrated platform. Doing everything in one place leads to a lot of synergies because, if you’re in one

system, you can drive faster adoption. With an integrated system, users log in to one place and then they can decide what they’re trying to buy, without having to decide where or how to actually buy it. Once everyone understands the business requirements of how to buy, what is being purchased and how to collaborate with suppliers, then it becomes a function of marrying up the roadmap with the IT infrastructure needed to support all customer or stakeholder requirements. Procurement needs to partner with IT and finance to do this. 3.) Get a seat at the leadership table. Procurement professionals need to be part of the entire decisionmaking process. They can’t be sitting and waiting for stakeholders to come to them with their requirements for sourcing and contracting. They need to be actively participating in the budgeting and the financial planning process, and working very collaboratively with stakeholders. One way of doing this is by conducting quarterly spend reviews and sharing data that helps say, “Here’s how we see that spend for your business unit. Here is where we see opportunities. How should we approach some of these projects?” 4.) Understand stakeholder needs. Frequently, procurement takes the basic requirements of a sourcing project, runs the sourcing project, then reports the negotiated savings to the stakeholder. For procurement teams to collaborate effectively, they need to understand the stakeholders’ needs. This includes proactively obtaining stakeholder input and requirements; considering subject matter, and stakeholder negotiation tips and insights; and providing frequent updates to stakeholders. With this, procurement can begin to be seen in a more favorable light and viewed as a trusted business advisor.

SUPPLY & DEMAND CHAIN EXECUTIVE | December 2016 | SDCExec.com

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By Lara L. Sowinski

SPECIAL REPORT TRADE FINANCE

ROBOTIC PROCESS AUTOMATION GATHERS ATTENTION

Freeing up skilled staff to work on high-value projects is just the start.

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espite the significant management automation platforms. customer and the company could not and ongoing A diversified approach that includes afford to expand the program. digitization of the software robots, human workers, and PITT OHIO is now using Kofax’s supply chain, there BPM or case management solutions is Kapow RPA software to automate are still plenty of manual and an ideal, forward-thinking option,” adds multiple manual processes, starting time-consuming processes that sap Galusha. “In short, RPA solves data with the pickup request. The software resources, and drag down productivity, integration and automation challenges reads each incoming email to extract compliance and customer satisfaction. that never seemed to get solved.” shipment details—then logs in to “Many organizations still rely on the PITT OHIO scheduling system, manual tasks to collect, review and RPA’S IMPRESSIVE RESULTS navigates through its menus and enters input data,” confirms Bill Galusha, It’s not just AP that can benefit shipment details into the scheduling senior product marketing manager at from RPA. Transportation solutions system. When the scheduling system Kofax, a Lexmark company. provider PITT OHIO was spending responds with a pickup time, Kapow When it comes to finance and too much time and resources to access captures the time from the web page, accounting, 47 percent of accounts the business-to-business (B2B) portals logs in to the shipper’s B2B portal and payable (AP) professionals consider of its 70 trading partners to enter posts the time into the shipper’s portal. manual data entry and “This all happens inefficient processes their automatically, within seconds biggest challenge. of the initial email, not AP tasks like invoicing, hours after the fact,” explains Robotic process automation (RPA) is an emerging, purchase order matching Galusha. “Since shippercost-effective technology that automates repetiand payments are good owned portals do not provide tive, manual tasks that waste time. It uses software candidates for robotic process APIs, Kapow’s unique ability robots and intelligent business rules to mimic the automation (RPA). And to control the application’s action employees perform, like looking up and Galusha points out that user interface is critical to verifying information, and copying and pasting implementation is quite easy. automating this process.” between back-office systems, public websites, Excel “RPA can be deployed in a The software also provides spreadsheets and other data sources. matter of weeks, not months, automated updates whenever as it does not rely on the shipment statuses change, use of complex application program duplicate transactions on multiple entirely eliminating the CSR’s time interfaces (APIs) and coding.” It also systems to keep them synchronized. needed to handle these routine events. integrates with (rather than replaces) a For example, PITT OHIO offers Following the implementation of company’s existing technology, he says, a premium level of service to a select the Kapow software, PITT OHIO “so it is both complementary to core group of shippers, such as the ability reclaimed 90 to 95 percent of its CSRs’ systems and non-disruptive to day-toto request pickups by email. But the time for higher value work, along with day operations. manual processing required to provide 100 percent of the cost of routine “RPA also augments and this service was so costly that each B2B portal updates, while costly complements business process customer service representative (CSR) transcription errors were eliminated. management (BPM) and case could barely service a single premium

Robotic Process Automation Defined

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EXECUTIVE FOCUS

{ TRANSPORTATION}

By Carrie Mantey

Flower-Handling Capabilities

BLOOM IN THE COLD CHAIN

Cold chain capabilities—even for the most fragile of flowers—are growing in the logistics sector. Flowers at Sea Currently, Royal FloraHolland delivers 95 percent of its flowers by truck, according to Christo van der Meer, senior supply chain consultant. However, that could change. The company’s Flowers@ Sea initiative, a sea-freight service for flowers, offers transport from major production regions around the world to customers via shipping. The service boasts an optimal container climate during transport by ship. Its aim is to improve the vase life of cut flowers, along with reducing transport costs. Meer believes that implementing a multimodal strategy—air, ocean and road—can also decrease carbon emissions.

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T

he cold chain is made up of equipment, technology and services that enable the transport of temperaturesensitive products with climate-control technologies and safeguards to protect product integrity. Transporting and warehousing fresh flowers, for instance, require specific temperatures to survive the journey from grower to customer. But the following companies prove it can not only be done, but done well, when offering the right mode of transport and technology.

DELTA CARGO Delta Cargo transports more than 4.5 billion cargo ton-miles annually,

Royal FloraHolland

by the numbers Trades more than

12 BILLION FLOWERS A YEAR

including domestic and international flowers. The company touts its Variation Fresh temperature-controlled service— an offering that is ideal for shipping perishables like flowers, which are characterized by a short life span, or rapid deterioration when exposed to extreme temperatures and adverse conditions. The Variation Fresh service comes with a high boarding priority and fast connections. To deliver flowers to their destination on time and in pristine condition, Delta Cargo needs the capacity and certain capabilities. Gareth Joyce, president, confirms, “Delta Cargo utilizes the cargo capacity of all Delta mainline aircraft globally, as well as a well-structured, temperature-controlled trucking network if needed. We have coolers to support these delicate commodities in our cargo facilities around the world and can provide active, temperature-controlled containers.” Delta Cargo doesn’t just move flowers, though; it also offers peace of mind. Joyce says, “We have temperature-control handling codes added to air waybills, so our operations team can handle temperaturesensitive products appropriately. Cargo covers are used, in some cases, to keep the required temperature, while tracking and tracing is possible via DeltaCargo.com.”

Accounts for 1 of every 10 trucks on Netherlands’ highways Comprises

40% of the world’s market share for flowers/plants

Cut costs by 38% and

decreased greenhouse gas emissions by 87% with multimodal strategy

Uses

240,000 auction trolleys to transport flowers in the warehouse

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“We’re very technology-enabled because all we do is temperature-sensitive product. It’s an area that requires a real degree of knowledge and investment.”

SEACON LOGISTICS

Seacon Logistics, a logistics service provider specializing in overseas freight forwarding, also handles perishables and flowers. Gé Coenen, senior manager of air and ocean, and transportation companies, but also a compliance officer, says, “We offer third-party logistics operation with a full range of service from import, dedicated facilities and assets, such as export, customs clearance, warehousing, warehouses and trucks. The company, value-added logistics and European which transports perishables around distribution. Our concept is based on the world by air and ocean, handles all handling cargo via multimodal inland kinds of temperature-sensitive products. container terminals.” Thus far, it has only done small For nearby destinations, Seacon volumes of flowers, but that doesn’t calls upon the help of its partners for mean it isn’t qualified. When it comes road transport, while it offers reefer to time- and temperature-sensitive container capabilities to transport product, such as flowers, VersaCold perishables for short-sea and tends to use air freight. Douglas international destinations. If speed is Harrison, president and CEO, boasts, of paramount concern, which is often “VersaCold is the largest temperaturethe case when dealing with flowers, sensitive supply chain company in Seacon uses its air-freight operation Canada, one of the top four in North at Amsterdam Airport America and one of Schiphol. “We always the top 10 globally.” choose the best In order to modality in order for keep perishables the goods to arrive at fresh, VersaCold their destination in the incorporates Seacon uses multimodal inland best possible condition,” container terminals to handle cargo. automated Coenen adds. technologies to Seacon continuously monitors monitor temperatures on a realtemperatures through temperaturetime basis, so it can respond to logging devices that are available anomalies quickly to ensure product with a GPS, so it can better control doesn’t deteriorate. “We’re very and adapt to temperatures. “In case technology-enabled because all we do of overseas services, the Babbler [a is temperature-sensitive product. It’s wireless, reusable, tamper-evident seal an area that requires a real degree of with a temperature log] container knowledge and investment, specifically security device also could be used, but around that perishability requirement so far, this device only records data and or sensitivity of the product.” Harrison is not (yet) linked to the refrigeration continues, “In time, as the technology unit,” although Coenen thinks further is refined, we’re looking to be able to development is underway. allow customers to receive auto alerts, real-time track and trace, and other VERSACOLD LOGISTICS capabilities, so they can see where SERVICES the product is, and understand the VersaCold Logistics Services not temperature it’s at and when it will be only operates several asset-based delivered to the receiving location.”

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— DOUGLAS HARRISON, VERSACOLD

ROMARK LOGISTICS According to Royce Aultman Jr., COO of Romark Logistics, “We probably handle the largest propagators in the world.” The company, a fullservice third-party logistics provider with a fleet of refrigerated equipment, helps coordinate the distribution, warehousing and transportation of propagated material, or flowers. “All of our vehicles are equipped with GPS and temperature tracking, so customers can not only view the position of their product, but also have real-time temperature visibility. That is what we do to ensure timely deliveries without compromising the product,” he says. While the company uses trucks, its primary mode of transportation is air. Aultman says, “Most of the process is like a relay race. The baton is handed to us at the airport when we go to recover the product, which we either pick up and take directly to the customer, or store the product here until it’s released, at all times maintaining the cold chain. It’s never broken. Flowers are a highly perishable product, so they usually stay no more than 24 hours in our facility— sometimes just a couple of hours.” The company also uses alarm sensors. “Our facilities have 24/7 temperature monitoring with set thresholds,” says Aultman. “If the temperature gets close to the threshold, we’re alerted via text and emails. We have contingencies [in place] if we do have issues.” Flower logistics is rife with obstacles, but cold chain providers are arming themselves with the right technology and equipment, and their toolbox, as well as their capabilities, are evergrowing.

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EXECUTIVE FOCUS

{ WAREHOUSING}

By Editorial Staff, Supply & Demand Chain Executive

WATCH YOUR BACK! The uncomfortable truth about warehouse ergonomics ...

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ention the term “distribution center (DC) accident,” and the first thing that comes to mind is probably a forklift or truck. However, add the word “common” and it’s a different story. “Statistically speaking, warehouse employees are far more likely to sustain back, muscle, repetitive motion or other ergonomic injuries than they are to experience other kinds of work-related injuries,” says Andy Brousseau, senior manager of global safety, security and environment at APL Logistics. Supply & Demand Chain Executive recently sat down with Brousseau, whose company has had an ergonomic safety program in place since 2005, to discuss why businesses need to better familiarize employees with this potentially uncomfortable subject.

In what ways does ergonomics pertain to DC workers? The typical DC job is ripe with opportunities for making a sudden or wrong move, or putting too much stress on a muscle or joint, all of which can lead to ergonomic injury. Highly routine activities, such as removing shrink-wrap from pallets and unloading trucks with non-palletized cargo, create plenty of chances for 34

people to strain their backs, necks or shoulders. So can improperly lifting heavy boxes. All of these things make an ergonomic safety emphasis in DCs not just important, but essential. And no matter how free of ergonomic injuries a warehouse may be in the past, it can never be assumed that this puts it at less risk for future ergonomic injuries. That’s akin to thinking that because you successfully sped through several red lights without getting into a wreck, you can keep doing it and remain accident-free.

Why is an occasional strained shoulder or back that big of a worry? Some ergonomic injuries may seem minor. However, they can be highly uncomfortable. Plus, just because an ergonomic injury appears to be a no-harm-no-foul incident when it happens, evidence suggests it could turn into a more serious injury later. The average ergonomic claim can easily total thousands of dollars. And if an ergonomic injury is especially serious—requiring therapy, surgery or significant time off—it could cost many times that amount.

Was that the experience for your company? Definitely. When we first launched our more proactive safety initiative

in 1994, our primary focus was educating our employees about the dangers of life- and limb-threatening behavior, such as improper industrial equipment operation, because these injuries were among our most common and expensive—not to mention the most potentially dangerous. But as our program and employees’ safety consciousness matured, those injuries became far less frequent. And by the early 2000s, unsafe ergonomic behaviors became the No. 1 source of both our on-the-job injuries and injury-related expenses. In fact, before we launched our ergonomic awareness program, they were responsible for 40 percent of our Occupational Safety and Health Administration (OSHA) recordable injuries and 56 percent of our related costs. So when our workers’ compensation insurer offered to help us develop some new safety training courses on the risk factor of our choice, we chose ergonomics.

What changes in work processes and workstations can make a big difference? Ergonomics isn’t a one-size-fits-all science. Often, you have to consider the age, height, weight and health history of people when determining what’s ergonomically right or risky for them.

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WAREHOUSING

“WAREHOUSE EMPLOYEES ARE FAR MORE LIKELY TO SUSTAIN BACK, MUSCLE, REPETITIVE MOTION OR OTHER ERGONOMIC INJURIES THAN THEY ARE TO EXPERIENCE OTHER KINDS OF WORK-RELATED INJURIES.” —ANDY BROUSSEAU, APL LOGISTICS

For example, a work table height that’s ergonomically ideal for a 5-foot, 2-inch tall woman performing sub-assembly isn’t going to be an equally good fit for a man who’s considerably taller. That said, there are certain kinds of behaviors and conditions that are ergonomically risky no matter who performs them—and these behaviors are easy for companies to correct. These include awkward and static postures, unsafe lifting movements and highly repetitive motions.

What did your company do to address these behaviors?

At another facility, where the employees do a lot of order picking, we introduced the concept of job rotation and changing positions to different levels of the pick line. This played a key role in reducing the ergonomic strain for these workers.

How did these changes affect productivity? Companies are often concerned that placing too much attention on ergonomic issues may slow things down. But the truth is we didn’t see a loss of productivity when we began emphasizing ergonomic safety. We just saw a significant reduction in our related injuries and claims costs.

concerted ergonomic safety effort, I always say they can’t afford not to. If they really examine the number, type and cost of claims associated with ergonomic injuries, they are likely to discover that it makes excellent business sense. Plus, it’s amazing how affordable many ergonomic safety initiatives can be. While your company may not be able to build and equip an ergonomically ideal facility from the ground up, it can reduce ergonomic risk by making the changes I outlined. Having an ergonomic safety initiative is simply the right thing to do if you truly care about your workforce. After all, who wants their employees to be able to say their jobs are a pain in the neck and really mean it? ABOUT THE AUTHOR ANDY BROUSSEAU is senior manager of global safety, security and environment for APL Logistics, an international supply chain specialist serving companies across the globe. The company provides a comprehensive range of services via a global network covering all major markets with a multinational workforce of approximately 7,000 people. APL Logistics is a member of the Kintetsu World Express.

Several years ago, employees at one How can you convince corporate of our facilities were having to lift their leadership to move an ergonomic arms over their heads to unload trucks initiative forward? with non-palletized cargo. A couple of When people say their companies step stools put these employees more can’t afford to invest in a more level with the cargo, and helped reduce their risk for neck, back and shoulder strains. During that same time period, we visited and trained Results Through Applied Intelligence® the staff at another one of our facilities where there was a Industries JVKellyGroup, Inc. provides cost reduction and risk mitigation solutions for JVKellyGroup has worked lot of piecework being done. some of the world’s largest organizations. By offering an integrated set of with some of the world’s largest organizations across multiple analytics, sourcing services and technology, JVKellyGroup helps ensure that By educating staff members industries including: a company’s spend is effectively analyzed, sourced, managed, and monitored. » Financial Services about how important it was » Pharmaceuticals Why JVKellyGroup, Inc.? » Manufacturing to take breaks from this work Clients benefit from the expertise of years of experience our consultants have in actual sourcing » Automotive in order to give their hands roles including former CPOs, VPs of Procurement and Sourcing, Buyers, Analysts and Sourcing » Business Information Technology Developers. » Government/Public Sector and wrists a rest, we were able » Retail Our services will help decrease sourcing cycle time, increase potential savings capture due to to significantly reduce their expertise in commodity areas as well as improve supplier relationships and mitigate supplier risk. chances of getting repetitive Experience With a team of professionals, averaging more than 15 years of hands-on, industry experience, our motion injuries. And just in projects provide practical solutions and quantifiable benefits. JVKellyGroup has led engagements case they were tempted to across a diverse range of industry verticals and worked with virtually every category of indirect spend. ignore our messaging, we also made these rests mandatory. CONTACT US TODAY! phone: 631-427-2888

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email: info@jvkg.com

web: www.jvkg.com

12/1/16 9:29 AM


EXECUTIVE FOCUS

{ SOFTWARE & TECH}

By Ronnie Garrett

LTL GOES MOBILE Holland adds Honeywell technology to drive efficiency, improve the driver experience and meet heightened customer demands.

J

ust about every consumer good sitting on a shelf or in a warehouse finds its way to its final destination via truck. In fact, the American Trucking Associations (ATA) reports that trucks accounted for 70.1 percent of domestic freight tonnage in 2015. Trucks deliver products quickly and efficiently, and in the tight timeframes consumers have come to expect.

36

Now, the ATA is predicting that the amount of freight moved by trucks will jump by 27 percent between 2016 and 2027. Meanwhile, America’s supply of drivers continues to dwindle and the ATA estimates the industry will need more than 96,000 new drivers over the next decade to keep up. In order to stay competitive in this fast-paced logistics world, trucking companies need tools to drive efficiency and meet heightened consumer demands. Holland, a regional less-thantruckload (LTL) transportation provider offering one- and two-day service in the Midwest, southeastern United States and eastern Canadian provinces, made strides to address these issues when it partnered with Honeywell to add a solution that improves customer care and driver satisfaction. The company found its answer in the Honeywell Pickup and Delivery Solution. This Android-based software runs on a Honeywell Dolphin CT50 mobile computer, and allows the company’s 3,000 pickup and delivery drivers to easily navigate through their workday, communicate with dispatch and update shipment status in real time. Drivers can also scan labels and take pictures of shipments when necessary. It is a complete managed service that includes hardware and software.

SUPPLY & DEMAND CHAIN EXECUTIVE | December 2016 | SDCExec.com

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2017 Educational Webinar Series DETAILS & REGISTRATION: S D C E X E C . C O M / W E B I N A R S T I M E : 1: 00 P M E T / N O O N C T / 11:00 A M MT / 10:00 A M P T

AT T E N D F O R F R E E T H A N K S T O O U R S P O N S O R S

April 26

May 31

Risk Mitigation

The Internet of Things

Warehouse Automation

_________________

Procurement Trends

Supply chain risk comes in various forms—geopolitical, cyber security, natural disasters and much more. New tools and strategies are giving executives an edge in identifying and mitigating risk.

The Internet of Things (IoT) is quickly demonstrating its value to global supply chains with improved connectivity and analytics. This event will help distinguish the promise from the hype with real world examples.

The ROI for automating warehouse functions is increasingly evident for many organizations in a range of verticals. Learn what it takes to assure a successful implementation and avoid the most common pitfalls.

Innovations in sourcing and procurement are creating competitive advantages for organizations. What are the latest trends and developments?

October 25

November 15

December 13

_________________

The Internet of Things II

Procurement Trends II

Cargo theft poses risks to brand reputation and consumer safety, and racks up costs for supply chain providers and their customers. This event looks at the latest tools and strategies to boost cargo safety and security.

As the Internet of Things (IoT) continues to mature, supply chains are seeing the manifestation of its opportunities revealed in areas ranging from transportation to manufacturing and more.

Procurement experts examine the most promising trends and developments, and how organizations are achieving impressive cost savings, improved compliance and enhanced visibility.

Executive Outlook for Supply Chain 2018

March 29 _________________

September 27

Cargo Safety & Security

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June 21

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From the macro to the micro, and the global to the granular, join a panel of experts for an executive-level view of the key supply chain issues for 2018.

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To become an expert panel sponsor, contact Jolene Gulley | 480-413-0354 | jgulley@ACBusinessMedia.com

SDC1216_36-39_SoftwareTech RG CM RG.indd 37

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SOFTWARE & TECH

by the

numbers

96,000 Drivers needed over the next decade to cover freight increases

70.1%

Of domestic freight tonnage delivered by truck in 2015

27%

Predicted increase in truck freight by 2027

38

This solution replaces Holland’s existing system, which was difficult and time-consuming to use, according to Chris Heslop, senior marketing manager at Honeywell. “Drivers had to perform multiple steps to carry out a core task, like freight delivery or pick up information. And it wasn’t always presented in an intuitive way; drivers had to go through many steps to get the information,” he says.

REAL-TIME RECORDS

drivers that ties directly into Holland’s dispatch system. The system gives dispatchers real-time visibility into driver and shipment status, allowing them to offer assistance if necessary. The app provides information on things like “the status of deliveries for customers. Are they on schedule? Are they behind? Is rerouting necessary? Dispatchers can now manage a larger number of drivers on the road at any one time,” says Heslop.

Scott Ware, president of “The CT50 is basically a Holland, points out that the smartphone device that allows company began exploring in-cab technology a few years [users] to utilize the application ago, and sought a platform in a mobile environment. We are that would adapt to many different applications and set to attract a new generation future changes down the road. Honeywell’s technology fits of young drivers with best-inthe bill. Its platform class technology that will helps the LTL provider meet Department of make their jobs easier.” Transportation and —SCOTT WARE, HOLLAND Federal Motor Carrier Safety Administration regulations. The app also improves driver Says Ware, “From a compliance efficiency because it intuitively standpoint, we’ll be able to turn this guides drivers through the pickup system into an electronic logging and delivery process, and provides device (ELD), so that information will immediate access to information to be readily available if a driver is at a help drivers better accommodate weight inspection station and being customer requests. checked for hours of service. The driver will be less likely to encounter DRIVER EXPERIENCE delays because he or she is waiting for Ware predicts the new technology that information to be transmitted will help Holland in its quest to attract from another source. a new generation of young drivers, “With this system, Holland will who will like what the platform offers be well ahead of the federal mandate inside and outside of the cab. Ease of required for ELDs at the end of use and an alignment with the newest 2017. This is another way Holland is mobile technology are crucial for driving technology for the benefit of Holland driver recruitment efforts, our customers and our company alike,” Ware says, noting that the company he says. recently launched a campaign to Dispatchers benefit as well. The attract millennials, who are drawn to Honeywell Pickup and Delivery innovative companies. Solution integrates a mobile app for “Millennials use this type of

SUPPLY & DEMAND CHAIN EXECUTIVE | December 2016 | SDCExec.com

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Statement of Ownership, Management, and Circulation

(Requester Publications Only)

technology in their personal lives and want access to it in their professional lives as well,” he says. “The CT50 is basically a smartphone device that allows them to utilize the application in a mobile environment. We are set to attract a new generation of young drivers with best-in-class technology that will make their jobs easier.” Drivers also appreciate that it is an intuitive system to use. They simply follow a series of prompts after they log in and they are ready to go. Drivers enter a personal ID, then enter the tractor’s ID, confirm the odometer setting and request the trip, then all information integrates with Holland’s back-end system as they move throughout their day. Workflows built into the software guide drivers through their day, detailing which deliveries need to be made and listing what needs to be picked up. At deliveries, drivers just deliver the product, scan in the details, get back in their cabs and move on to the next delivery. “By integrating the new Honeywell Pickup and Delivery Solution, Holland gains better operational intelligence, providing a more satisfying and consistent experience to their customers,” says John Waldron, president and CEO, Honeywell Safety and Productivity Solutions. “With this software guiding drivers through each step of the pickup and delivery process, we can help Holland reduce the time needed to onboard new drivers, while speeding communication of the time-sensitive shipment information needed for next-day delivery operations.” The mobile nature of the technology also aids in the latency problems drivers were experiencing, says Ware. “This was creating delays for our drivers who were spending a lot of time inputting their information. It was taking a long time for them to connect and to get the system to accept the information; even our communication back to them was delayed in certain areas where they lacked connectivity. We don’t run into any of these problems now that we added this technology. Our connectivity is nearly 100 percent throughout the day.”

1. Publication Title

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Supply & Demand Chain Executive

024-012

September 1, 2016

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March, May, June, September, December

5

Free to Qualified Subscribers

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Contact Person

AC Business Media, Inc 201 N. Main Street Fort Atkinson, WI 53538

Telephone

Angela Kelty

(920) 542-1259

8. Complete Mailing Address of Headquarters or General Business Office of Publisher

AC Business Media, Inc., 201 N. Main Street, Fort Atkinson, WI 53538 9. Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor Publisher (Name and Complete Mailing Address)

Jolene Gulley, Publisher 201 N. Main Street Fort Atkinson, WI 53538 Editor (Name and Complete Mailing Address)

Ronnie Garrett, Editor 201 N. Main Street Fort Atkinson, WI 53538 Managing Editor (Name and Complete Mailing Address)

Carrie Mantey, Associate Editor 201 N. Main Street Fort Atkinson, WI 53538 10. Owner (Do not leave blank. If the publication is owned by a corporation, give the name and address of the corporation immediately followed by the names and addresses of all stockholders owning or holding 1 percent or more of the total amount of stock . If not owned by a corporation, give the names and addresses of the individual owners. If owned by a partnership or other unincorporated firm, give its name and address as well as those of each individual owner. If the publication is published by a nonprofit organization, give its name and address.) Full Name

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AC Business Media, Carl Wistreich, President & CEO 201 N. Main Street, Fort Atkinson WI 53538 AC Business Media, Anil Narang, Chairman 201 N. Main Street, Fort Atkinson WI 53538 11. Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or more of Total Amount of Bonds, Mortgages or Other Securities. If none, check here.  None Full Name

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12. Tax Status (For completion by nonprofit organizations authorized to mail at nonprofit rates) . (Check One) The purpose, function, and nonprofit status of this organization and the exempt status for federal income tax purposes:

 Has Not Changed During Preceding 12 Months  Has Changed During Preceding 12 Months

PS 3526-RTitle Facsimile, July 2014 13. Form Publication

Advertiser............... Page Number CaseStack...............................13 www.casestack.com Cass Information Systems Inc............................25 www.cassinfo.com Clearpath Robotics Inc........17 www.clearpathrobotics.com

SDC1216_36-39_SoftwareTech RG CM RG.indd 39

September 2016

15. Extent and Nature of Circulation

Average No. Copies

a. Total Number of Copies (net press run) Outside County Paid/Requested Mail Subscriptions stated on

No. Copies of Single

Each Issue During

Issue Published

Preceding 12 Months

Nearest to Filing Date

51063 31320

51452 30749

0

0

(1) PS Form 3541. (Include direct written request from recipient, telemarketing and b. Legitimate

Internet requests from recipient, paid subscriptions including nominal rate subscriptions,

Paid and/or Requested

employer requests, advertiser's proof copies, and exchange copies.)

(2) In-County Paid/Requested Mail Subscriptions stated on PS

Distribution

Form 3451. (Include direct written request from recipient, telemarketing and internet

(By Mail

requests from recipient, paid subscriptions including nominal rate subscriptions,

and Outside the Mail)

employer requests, advertiser's proof copies, and exchange copies.)

(3) Sales Through Dealers & Carriers, Street Vendors, Counter

1

1

0

0

31320

30750

18244

18812

0

0

Sales, and Other Paid or Requested distribution Outside USPS. (4) Requested Copies Distributed by Other Mail Classes Through the USPS. (e.g. first-Class Mail) c. Total Paid and/or Requested Circulation [Sum of 15b(1), (2), (3), (4)] (1) Outside County Nonrequested Copies stated on PS form 3541. (include sample copies, requests over 3 years old, requests induced by a premium,

d. Nonrequested

bulk sales and requests including association requests, names obtained from

Distribution

business directories, lists, and other sources)

(By Mail

(2) In-County Nonrequested Copies stated on PS form 3541.

and Outside

(include sample copies, requests over 3 years old, requests induced by a premium,

the Mail)

bulk sales and requests including association requests, names obtained from business directories, lists, and other sources)

(3) Nonrequested Copies Distributed Through the USPS by

0

0

826

1489

e. Total Nonrequested Distribution (Sum of 15d (1), (2), and (3))

19070

20301

f. Total Distribution (Sum of 15c and e)

50390

51051

Other Classes of Mail.(e.g. First-Class Mail, nonrequestor copies mailed in excess of 10% Limit mailed at Standard Mail or Package Services Rates)

(4) Nonrequested Copies Distributed Outside the Mail (include pickup stands, trade shows, showrooms, and other sources)

g. Copies Not Distributed

672

401

h. Total (Sum of 15f and g)

51063

51452

i. Percent Paid and/or Requested Circulation

62.2%

60.2%

(15c / 15f x 100) *if you are claiming electronic copies, go to line 16 on page 3. If you are not claiming electronic copies, skip to line 17 on page 3. Average No. Copies

PS Form 3526 -R Facsimile, July 2014

16. Electronic Copy Circulation

a. Requested and Paid Electronic Copies b. Total Requested and Paid Print Copies (Line 15C) + Requested/Paid Electronic Copies (Line 16a) c. Total Copy Distribution (Line 15F) + Requested/Paid Electronic Copies (Line 16a) d. Percent Paid and/or Requested Circulation (Both Print & Electronic Copies) (16b divided by 16c X 100)

No. Copies of Single

Each Issue During

Issue Published

Preceding 12 Months

Nearest to Filing Date

4,329 35,649 54,719 68.7%

4,086 34,836 55,137 63.9%

 I certify that 50% of all my distributed copies (electronic & print) are legitimate requests or paid copies 17. Publication of Statement of Ownership for a Requester Publication is required and will be printed in the December issue of this publication. 18. Signature and Title of Editor, Publisher, Business Manager, or Owner

Advertiser Index

14. Issue Date for Circulation Data Below

Supply & Demand Chain Executive

Carl Wistreich, President & CEO

CompetiBid............................23 LeanLogistics Inc..................19 PS Form 3526 -R Facsimile, July 2014 www.competibid.com www.leanlogistics.com DSC Logistics Inc.....................9 NeoGrid....................................2 www.dsclogistics.com www.neogrid.com Emirates SkyCargo...............42 Numerex Corporation..........20 www.skycargo.com www.numerex.com JVKellyGroup Inc..................35 Port Everglades.....................27 www.jvkg.com www.porteverglades.net

Date

9/1/2016

ProMat....................................21 www.promatshow.com UPS Capital..............................5 www.upscapital.com

11/30/16 2:28 PM


WORK HARD, By Carrie Mantey

A community of planners and performance reviews? Triathlons are not a far stretch from what supply chain executives already do day to day.

Triathlons &

SUPPLY CHAIN TRIUMPH

J

ason Tham, CEO of Nulogy finished top 10 at nationals, qualifying is the propensity to anticipate and Corporation, an organization for the world championships. He plan for everything. Tham’s coach that enables contract packaging competed in the world championships walked him through each race plan companies to better plan, in Auckland, New Zealand—the most both mentally and physically, detailing execute and collaborate with customers, difficult course on the world circuit, how much time he’d have to rest, and began his athletic career in high according to Tham. Then he qualified how much food to eat and water to school and university—track and field, and competed in the London world drink, all depending on the weather. swimming and running. So it wasn’t a championships, the same course used Every minutiae of the race was surprise when, about a decade ago, he for the 2012 Olympics, the following accounted for. Tham opines, “I think, decided to compete in triathlons. He year. He says these experiences were as an executive in our business, we do laments, “Funny enough, it was on my nothing less than amazing. the same. All these key performance mom’s old bike, a Bianchi. I still have Tham believes the triathlon indicators (KPIs) in business are the it in [her] basement. I’d race on a very community is akin to that of the same thing. You have to retroactively cramped-up, small ladies bike.” supply chain world. In the supply look at business, what you did, where Because Tham was a strong swimmer KPIs improved … It’s just inch-byand runner, he always placed pretty inch improving, like [training for] well. Fast-forward five or six years, he triathlons.” continued to race, but wasn’t taking it To take the analogy a bit further, too seriously. However, after a heart-toTham compares how triathlon and heart with his old varsity coach, Tham’s business performance also need to desire to cross an item off his bucket be continually evaluated as progress list—representing his country in a sport, is made: “You can break down a any sport, “even as water boy”—grew, race in a triathlon with goals based but first he needed to up his bike game on the different disciplines—swim, to qualify for the world bike, run—just like in “The people I meet in business and the team triathlon championships. business.” The same Around 2010, he was I’m surrounded with push me to be better. I way you would review introduced to Phil White, each quarter of your push them, too. It’s much better to learn from company’s performance co-founder of Cervélo Cycles, a leading triathlon the business the best than to take cues from mediocrity.” against bicycle brand. Tham plan, then make — JASON THAM, NULOGY CORPORATION quips, “It’s the Porsche adjustments to better of triathlon bikes.” Needless to say, he chain, you see the same people at user align with that plan, you would assess purchased a new Cervélo and his race conferences and customer events, and your swim in triathlon, and tweak your times improved drastically. He also easily establish a repertoire because you strategy to enhance your performance. hired a professional coach who was a share interests and enjoy conversing While Tham revels in his triathlon world champion herself. That’s when about the same things. The triathlon days, he still applies many of the same his training and racing intensified. world has that same welcoming sense attributes to his business: “Business is Tham first competed in the state of community and camaraderie. an ongoing race; there is no finish line. championships and finished top three, Another similarity between the I appreciate that because, if you love it, qualifying for nationals. Then he supply chain and triathlon community then you can just keep competing.” 40

SUPPLY & DEMAND CHAIN EXECUTIVE | December 2016 | SDCExec.com

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Supply & Demand Chain Executive December 2016  

The only magazine and website covering the entire end-to-end global supply chain in every vertical. It’s all done in a solutions-based forma...

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