http://www.parcelindustry.com/ME2/Console/XmlSyndication/Display/RSS.asp?xsid=3409F1A29FC6452EBC1D95C4110E6471 Parcel Articles for Feedburner http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=B4B88F7BE40F4B8E8CBF669FF900D4B4 1) What is 10+2 or ISF? As of Jan 26, 2010, every ocean importer must file detailed shipment information with US Customs and Border Protection. Originally it was 10 elements from the shipper and 2 from the carrier; this number has expanded, so now it is called "ISF" or importer security filing. Importers can file with a broker or forwarder or directly with customs themselves at varying service rates. We can discuss specific service cost alternatives available. 2) What are the elements the importer is responsible for? There are ten elements from the importer Customs has identified: •    Manufacturer name and address-Preferred not required •    Seller name and address: required •    Buyer name and address (generally the importer) •    Ship to name and address (generally same as buyer) •    Container stuffing location: importer or forwarder •    Consolidator name and address: if LCL shipment •    Importer of record number: (IRS number) •    Consignee number :(if different from importer) •    Country of origin: see below •    Harmonized number: see below 3) Do you know the country of origin of each piece to be shipped? Which rules apply? 4) Do you understand the different country of origin rules for GSP, Textiles, Free Trade Agreements, and other items you might import? GSP requires a local value of at least 35% to qualify for free entry. Textiles have more detailed requirements on fiber content to qualify. Some trade agreements such as Australia Free Trade require a change in tariff heading to qualify for a change in origin. For imports from with "normal trade relations" without special trade agreements, such as the England and Germany, a substantial transformation of a new name, character or use could identify a change in origin would apply. 5) Do you understand how to classify your goods according to the tariff schedules of the United States and the General Rules of Interpretation (GRI)? 6) What does the rule of reasonable care require regarding import classifications? Reasonable care on imports requires the importer to comply with the rules of interpretation and any applicable rulings. Customs and Border Protection (CBP) has a rulings database that is helpful. 7) Do you have binding rulings for your imports? CBP offers a binding ruling to importers to confirm which classification is appropriate for their merchandise. Rulings for a similar product may be applicable to your merchandise. January 26, 2010 was the compliance deadline; did you make it? If not, it's best to get up-to-date as quickly as possible, in order to maintain compliance!  http://www.afms.com/files/Importer_Questionnaire.pdf Wed, 27 Jan 2010 09:00:07 EST B4B88F7BE40F4B8E8CBF669FF900D4B4 http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=A9D119407A2D467DA48678F920263B2B Enterprise shipping is not some mysterious corporate function. In fact, it is exactly what it sounds like. It is the process of shipping performed at a level visible to any management person or employee who has been given the permission to perform the shipping task or see the shipping information at a corporate level. Enterprise shipping goes beyond the normal, "I have a package and now I need to ship it" type of processing. In an enterprise environment, shipping is not a just a function of the warehouse, it is a process driven by the enterprise. There must be planning in place for how to get the information required for shipping, how to use the information to create business rules to ship the order properly, and how to route correctly the results of what has shipped to the appropriate data storage locations in the enterprise. A new enterprise shipping system needs to be able to handle existing company requirements and processes as well as being scalable upward and across the enterprise. An enterprise shipping system purchase should be the last purchase required by any company. The ability to handle the workload to an infinite level is an important requirement of any enterprise shipping system. When adopting an enterprise shipping system, businesses need to incorporate new thought processes and automated work flows for processing their orders. Introducing an enterprise shipping system into a company requires a top down thought process for efficiently utilizing the enterprise shipping system. It does not make sense to automate a poor process or a manual process just to adapt to an enterprise shipping solution. Rethink existing processes to ensure they will work well in an automated environment. Validate those processes by asking the people who currently perform them manually to participate in the re-engineering of internal processes. Only when management and employee buy-in exists will any new system perform as it was designed. Businesses grow and change over time. An enterprise shipping solution must be able to manage that growth and must be able to adapt. Computer hardware will always get more powerful, and the operating system software used today will look nothing like the software that will be used in 10 years. Enterprise shipping systems are required to keep up with those changes. Purchase once, upgrade forever. Enterprise shipping systems must be intelligent. There are complex rules in play in the enterprise that are needed to keep the customers coming back and ordering more. Shipping on Friday? Customer “123” wants that order sent FedEx Saturday delivery, but only if the total order cost exceeds $750, and only in the fourth quarter of the year. Enterprise shipping can be that sophisticated or as simple as "Just send it UPS." Most importantly, an enterprise shipping solution must benefit other functions within the enterprise. Customer Service needs to know if the order shipped today. What was the tracking number? Accounting needs to know the cost of shipping. The warehouse needs to know the shipping volume trends for the last year. The VP of Distribution needs to have all of the shipping information for his 12 distribution centers for the last twelve months available to him for rate negation. Right now. An organization can no longer live by the old adage, "If it isn't broke, don't fix it." Many processes within a company can be improved upon, even if those processes are working fine today. What must be kept in perspective is the cost of improvement vs. the gain in productivity or information visibility. An enterprise shipping solution must be able to provide a justifiable ROI. If the cost of improvement is too great, most companies will try to find a more affordable solution before giving up on the project altogether. Enterprise shipping need not be pushed to the side in favor of other enterprise software projects. In past years, integrating an enterprise shipping solution into the organization used to be a major project. Now the degree of difficulty has been greatly reduced thanks to better software and hardware technology. Implementing an enterprise shipping system today is now significantly easier. Many companies are finding they are able to handle the project in house with a reduced level of support from the systems integrator or software manufacturer. Take the time to identify your objectives, select a reputable vendor, dedicate a project "owner" within your organization; and realize an enterprise shipping project is one that will be much easier to implement than a WMS or ERP project. Michael Everson is President and CEO of Data Trak Technologies located in St Paul Minnesota. For over 18 years Data Trak has been helping businesses of all sizes automate and improve the efficiency of their outbound distribution and shipping operations. You can reach Data Trak’s sales group at 651-639-0091 or e-mail sales@dtsna.com. Data Trak’s web address is www.dtsna.com . Wed, 27 Jan 2010 08:54:10 EST A9D119407A2D467DA48678F920263B2B http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=465087AEAB984637992ACBC9EB1E6032 We hosted a conference call, Friday, January 8th with several leading regional parcel companies (OnTrac, Lonestar Overnight, Eastern Connection, Spee-Dee Delivery and U.S. Cargo) to learn more about this small but growing segment of the U.S. small package market. • Regional parcel carriers are a viable option for parcel shippers; the handful mentioned on the call cover more than 80% of the U.S. population and offer small package services primarily in zones 2-5 (length of haul up to 1,000 miles) with products similar to FedEx and UPS. • These companies operate in a niche of the parcel market and, in our estimate, still represent on a combined basis ~2% of the overall U.S. market. Their services are useful for many but not all shippers and most often act as a complement to FedEx and UPS rather than a replacement. • Still, many shippers are unaware these carriers exist and could save money by taking a look at where regional carriers can fit in their supply chain. Regional carrier base rates are most competitive on the next-day products (~40% savings off FedEx/UPS base rates) but still competitive on the ground (~15% savings). Plus, they have fewer surcharges/accessorials, so it is easier to figure out pricing. • Many ask how they can be cost-competitive with FedEx and UPS with not even close to as much package density, and the answer lies in the simplicity of their networks, direct loading, regional density, and lack of significant infrastructure (no multi-billion dollar hub investments to make). • Their technology is similar to that of FedEx and UPS, so shippers still have package-level detail, real-time tracking, electronic proof-of-delivery, etc. • The carriers' market forecast is for slow, steady volume growth, but regional carriers expect a 9%-10% increase in their revenue in 2010 due mainly to rate increases and market share gains. • Yields are expected to improve mid-single-digits in 2010, assuming improved pricing (DHL's exit is being lapped), stable fuel surcharges and heavier package weights. • While regional carriers should continue to grow volumes faster than FedEx and UPS, our investment views on FDX and UPS remain unchanged (see page 2 for detail). Page 2 - Summary thoughts on public parcel giants. Both FedEx and UPS have recently beaten earnings forecasts mainly due to a combination of aggressive cost cuts and better-than-expected international operations, but is now the time to buy? We remain cautious. While the stocks may rise some in 2010, we do not expect significant outperformance that would cause us to raise our rating on either at this point. FedEx Corp. (FDX; Hold; $85.50) • Express margins are the key to overall FedEx EPS growth, in our opinion; that is where the operating leverage is greatest. And International volumes are the main growth area (Asia strong recently). FAA reauthorization bill (House version) contains provision (Oberstar amendment) to reclassify FedEx Express under National Labor Relations Act (vs. current Railway Labor Act status), which would make union organization attempts easier. Even if passed (that language was not in Senate version of the bill), we do not believe FedEx Express would become a Teamster operation but that management focus on blocking unions would detract from overall strategic growth and execution. • FedEx Ground should continue to take market share from UPS and build density. Main risk to Ground growth is employee/IC lawsuits, but those have been outstanding for some time with no ill effects on business to-date. John Kerry also recently introduced legislation that could toughen independent contractor classification standards, but that is in preliminary stages. • We do not think Express volumes return as rapidly as some may be pricing in, so we do not expect a return to high single-digit Express margins soon. Company has done a great job cutting costs, but we do not believe there are much more to cut. As Ground service improves (and shippers remain frugal), there should be less of a need for packages to move in the air. UPS (UPS; Hold; $62.10) • International Package is the real growth story that can drive earnings, in our opinion; UPS has strong European ground presence (which FedEx does not) and should continue to see international volume growth above domestic volume growth rates via organic growth and acquisitions. Supply Chain Solutions and Freight should also be growth areas but contribute much less to consolidated income. • Company's largest segment and historical cash cow, UPS Ground, should continue to lose market share to FedEx Ground – the question is at what point does UPS lose enough density to fool around with the annual duopoly price increases? We have not seen a much-talked-about price war yet and do not believe we will at least over the next couple of years. • UPS is the largest unionized trucking company in the world, and unless FedEx also comes under union attack, we view the company as a very good company with impressive free cash flow but less exciting long-term earnings growth. In general, we have always favored FDX over UPS with a more entrepreneurial management team, thinner margins (more margin expansion potential), non-union (except for its pilots), and growing into better markets (Ground, International), while losing share in a less attractive market (domestic Express). The exit of DHL almost one year ago helped both, but the benefit was lost in the rounding near-term. With the USPS losing billions and DHL gone, the pricing environment should be very good for both FedEx and UPS for the foreseeable future. Finally, European and global parcel carrier, TNT, has long-been rumored as an acquisition target for either FedEx or UPS. While we have no knowledge of any M&A negotiations, we think TNT's existing operations (with strong presence in Europe) is more complementary to FedEx's existing service offering but would be wary of purchase price and integration risk were FedEx to buy TNT. With UPS, we see a more difficult integration (overlapping European ground networks) and fewer synergies as reasons we do not believe UPS will buy TNT. Due to the large scale integration expected (and accompanying headaches and costs), we would be inclined to buy the company that does not acquire TNT on the news and sell the company that does, all else equal. Prices reflect intraday trading 1/13/10. Page 3 - I, David Ross, certify that the views expressed in this research report accurately reflect my personal views about the subject securities or issuers; and I, David Ross, certify that no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views contained in this research report. “For all relevant disclosures please visit the Research Page at www.stifel.com .”  David G. Ross, CFA can be reached at 443-224-1316 or dross@stifel.com Wed, 27 Jan 2010 08:42:21 EST 465087AEAB984637992ACBC9EB1E6032 http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=54C0F56EEDF344BA9F16DADE19C5AC7E Forklifts and other pieces of industrial equipment are an indispensable part of almost every warehousing operation throughout the world. They're also a primary danger in these facilities. Each year they're responsible for approximately 100 U.S. fatalities — and at least 20,000 more injuries. Thankfully, with thorough safety training for the people who work around them, many of the incidents commonly associated with industrial vehicles can be avoided.     PARCEL recently visited with longtime warehouse safety professional Dixie Brock of APL Logistics to get her take on why forklift safety training is especially important -- and why it pays to make it everyone's job.     Talk to us about the relationship between forklift safety and overall safety. There are about six primary categories of safety concerns in most warehouses. Two out of the six are directly related to forklifts and other forms of industrial equipment. Additionally incidents involving such equipment tend to be more severe and thus deserving of special focus in any safety program.  Every company needs to be sure that all of its industrial equipment operators and the people working around them have adequate training in how to operate and work around these heavy machines. I don't just mean regulatory compliance. I mean training that's specific to that organization, its operations and the unique risks they pose. Your organization has a much lower rate of OSHA-recordable incidents than the industry average. Yet it unveiled a new industrial equipment safety training initiative a few years ago. . . . Our safety programs are very driven by data from the field; it plays a huge role in helping us pinpoint new risks or common risks that seem to be increasing in frequency or severity.  In 2006, that data led us to conclude that it was time for us to update and expand our industrial equipment operator training program. We put together a comprehensive new program with the assistance of our worker's compensation insurance broker Marsh & McLennan. It includes a mix of classroom instruction, written materials, video training, hands-on training and opportunities for discussion.  We conduct this training annually and have additional industrial equipment safety review sessions at least two other times a year. Can you share some of the particulars from your forklift training course? Our first focus was to ensure compliance with OSHA's 1910.178 training requirements, which require that operators know the differences between operating industrial equipment and operating cars. When you're looking at a forklift, it's easy to assume that it's a lightweight device. But it's actually much heavier than a car, and it poses the same dangers to pedestrians and drivers as a car can. Collisions between industrial equipment can have devastating results — and so can incidents when industrial equipment strikes other employees or vehicles tip over and lands on drivers or pedestrians. How can accidents like tip-overs be prevented? Every company's industrial equipment operator training program must be tailored specifically to the equipment its employees are driving, the products they're transporting and the location they're working in — because all of these can impact a forklift's delicate balance. Although each forklift has a maximum loading capacity that's clearly posted on its name/capacity plate, equipment operators must be trained to recognize that this is merely a starting point and that they must also factor in the equipment's load center and the height and stability of the load. Any error on the operator's part can lead to serious safety consequences as well as damage to equipment and the product.  OSHA has several other regulations that address the challenge of tip-overs, too. For example, drivers should carry loads no more than six inches off the ground, and they should never tilt a forklift mast forward while driving, because that alters the vehicle's load center. Besides the potential to tip over, are there other major differences between operating industrial equipment and automobiles? Unlike automobiles, forklifts have rear steering, which can be awkward and tricky if a driver isn't used to it. And forklifts don't ride like a car either. They don't have shock absorbers or springs, and their tires are usually solid or hard rubber. As a result, they're much more sensitive when they encounter small bumps or run over even small objects, which can easily dislodge or shift their loads. They also don't brake as smoothly, so sudden stops can result in a tip-over or a load falling. Your forklift training also covers the proper procedures for loading and unloading trucks. Our company's forklift safety training program firmly outlines how trailers are to be attached and secured to docks: with trailer brakes set and dock locks used. If a facility doesn't have dock locks, we have an alternate procedure that involves cones and glad-hand locks. Either way, we stress that no driver is ever to drive onto a trailer unless he or she is 100 percent sure that a trailer is secure and will not move. And no truck driver is allowed to drive away with his or her trailer until that trailer has been officially released by the forklift driver. Let's say a driver has taken all of the proper precautions for preventing tip-overs and it still happens. Should he or she try to jump out? That's actually the worst thing an operator can do. It's best to try to stay in the vehicle and lean away from the point of impact. This is one of many reasons why OSHA now enforces the use of seatbelts — and why our locations do, too.  Like wearing seatbelts in cars, this is one safety requirement that can keep a minor mishap from turning into a major catastrophe. So far, most of the practices we've discussed deal with industrial equipment operator safety. And yet it's not always equipment operators who get injured. That's right. Some of the common injuries to pedestrians who work around industrial equipment include being struck by the forklift, hit by objects that are being loaded or unloaded, being crushed between a forklift and its load, or having one of their feet run over. We train our forklift drivers that pedestrian safety is their responsibility. And we train them to do their part to minimize these injuries by being conscious of their blind spots and doing things like honking every time they approach a pedestrian, turn a corner or approach a new warehouse aisle; stopping their vehicles each time a person approaches them to have a conversation (and not driving away until the person is clear of a vehicle); and driving in reverse if a load is impairing visibility. But we also have to train our other warehouse workers to be responsible for their own safety when working around industrial equipment. Among other things, we teach them to look both ways when they're walking through the warehouse, avoid walking underneath a working forklift and to never get in the way of a forklift and its load.  In addition, we stress that they're never allowed to "hitch" a ride on a forklift. And we absolutely forbid any form of horseplay on or around a forklift. Your forklift safety training video specifically mentions that safety violations are punishable. Individual employees and their managers have to be held accountable for their unsafe behavior each and every time it occurs, because if you don't address a safety violation as soon as it happens, you're essentially giving someone permission to repeat the behavior, and that's never a safe proposition. Safety has to be non-negotiable. Your company has dozens of distribution centers in North America alone. Do you conduct forklift safety training at all of these facilities yourself? I often train the trainers. Because we are geographically spread out, my objective is to always create in-warehouse safety expertise. That's a winning situation for all of us. In order for safety in an organization to truly work, it can't be seen as just one person or one department's job. Everyone at a company — from the CEO to the newest person on the loading dock—must believe in its importance and be held accountable for supporting it. As we conclude this discussion, do you want to leave our readers with any parting thoughts? You must constantly be analyzing your company's workers compensation and other safety data, because it will reveal a lot about where your greatest areas of forklift-related risk are — and provide a clear view of where you next safety focus and energy need to be directed. In short, forklift safety is a never-ending job. Wed, 27 Jan 2010 08:32:22 EST 54C0F56EEDF344BA9F16DADE19C5AC7E http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=5A9023AD2A7E4EA799040D9770413FE8 When you shipped or transported packages today, you may not have even considered whether the items inside were hazardous materials. What if one of those packages was not identified as a hazardous material and started a fire, chemically burned a delivery person or exploded? You may think that you do not ship hazardous materials, but are you sure? You need to KNOW whether all items shipped are hazardous materials or not. Hazardous materials can cause injury, property and environmental damage. Your company could receive fines in addition to bad publicity and lawsuits. You could be fined or be sentenced to serve time in jail. Ask what is in the package, and develop a checklist of the items that you will not accept, ship or transport. If you ship items, review them periodically to determine if the regulations, carrier restrictions or formulations have changed and affect your shipments. Do you know what is in the package? Ask what items are included in the package. Common products that may be hazardous materials are: aerosols, paints, perfumes, lighters, certain types of batteries, fuels, computers or electronic equipment, cleaning compounds, fire extinguishers, compressed gas cylinders, swimming pool chemicals, matches, pesticides, fireworks, ammunition, adhesives, nail polishes, first aid kits and photographic chemicals. These items would need to be investigated to determine how to safely transport. There could also be clues found on the package to help you recognize a possible hazardous material. Some of these clues are: •    Hazard class diamond shaped label •    Consumer Commodity ORM-D marking on the package •    Warning statements such as “caution combustible” •    Frozen or refrigerated – does the package contain dry ice? •    Name of shipper or consignee – what type of business are they in? •    Smells or strong odors, i.e. fuel contained in machinery or parts Make sure misleading or no longer applicable markings are removed or covered up. Know what you are shipping before you ship it. Hazardous materials can be a time when what you don’t know could hurt you or someone else. Ken Holloway is Vice President of Safety Specialists, Inc. and has extensive hazardous materials transportation experiences dating back to 1969. His vast experience includes working with shippers, carriers and trade associations in all phases of hazmat transportation. Safety Specialists, Inc. has been focused on hazardous materials transportation safety training and advising since 1993. It is their goal to assist companies make hazardous materials transportation safe, understandable and efficient. In the months to come, Ken will discuss topics to help you understand what is required, how to comply and how to save money.  Ken can be reached at (704) 573-0955 or ken@hazmathelp.com .  Wed, 27 Jan 2010 08:20:30 EST 5A9023AD2A7E4EA799040D9770413FE8 http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=C2DF5AEC0C194A2088114844AA9F11A4 If you made a New Year's resolution to improve your company's supply chain, now comes the hard part — making it happen. Why is it so hard to live up to the expectations we set for ourselves every year? Resolutions often fail not because of a lack of ambition, but because goals are set without developing the right strategies to reach them. It's not too late to set some realistic goals for 2010 and to consider some strategies to help put your business on the path to reaching your goals and ensuring long-term success. With that in mind, here are 10 simple shipping tips for 2010. 1.    Consult the Experts By consulting an experienced third-party logistics provider (3PL), your business can gain valuable expert guidance and access to world-class tools and services that might otherwise be beyond the reach of most small- and medium-sized businesses. Research your options, and identify a partner with the experience and solutions to serve as your virtual logistics department. 2.    Automate Tasks You can save valuable time by automating as much of your shipping process as possible. Shipping technologies exist to help businesses of all sizes automate shipping functions, such as simplifying down to a few key strokes the traditionally complex task of generating commercial invoices on international shipments. Some shippers and 3PLs offer applications that can be integrated into your company's business system and customer-facing website to improve efficiency and customer service. 3.    Cut WISMO Inquires Providing a superior customer experience throughout the shipping process can lead to valuable repeat business, so provide customers with as much information about their shipments as possible. Implementing technology that enables you to provide tracking information and proactive status updates on your customers' in-transit orders will help cut down on "where is my order" (WISMO) inquiries, and free up your customer service department to handle more important tasks. 4.    Extend Your Focus to the Return Trip Gone are the days of limited "source to shelf" thinking; now, with more and more shoppers buying online and via mobile devices, offering an efficient, Web-based returns option to your customer can provide a competitive advantage. A recent Forrester Consulting study commissioned by UPS found that retailers who make it convenient and inexpensive for their customers to return products are likely to see increases in sales, customer loyalty, and incremental revenue. So ensure your strategy includes a round trip ticket when necessary! 5.    Get a Grip on Inventory Whether you're managing your shipping in-house or with a 3PL, ensure that you're agile enough to ramp your shipping up and down as necessary. Visibility is vital to smart inventory management, allowing you to more accurately plan in-store staffing requirements, minimize inventory carrying costs, and improve cash flow by more quickly confirming delivery. 6.    Compete on an International Level Doing business in new, emerging markets can be very beneficial to growing your business — but it can also be complicated. To help extend your business into international markets, work with a partner with a strong global network and integrated customers clearance technology. 7.    Ship to the Right Address You could be losing shipping dollars and negatively impacting your customer service if your company's database includes incorrect addresses, causing packages to be shipped to bad addresses and returned for reshipment. Use available technology that can validate addresses and even suggest alternatives when bad addresses are discovered. 8.    Integrate Your Shipping Processes Look for opportunities to streamline and integrate your shipping with other business processes to increase efficiency. For example, you can reduce data entry duplication and human error by integrating your shipping processes with your internal order-entry systems. 9.    Pick the Right Mode of Transportation The Internet and mobile commerce make it possible for your customers and suppliers to be down the road, across the country, or on the other side of the world. A carrier should offer multiple shipping options, including air, ground, rail, and ocean. Work with your carrier to determine the optimal mode(s) for your budget and shipping needs. 10.    Stay Connected Time is money, and delays in accessing vital shipping information can cost you. Consider utilizing mobile technology to gain quick access to tracking information and to calculate costs and transit times on the fly. And, adding mobile access to your shipping process can increase your responsiveness to help bolster relationships with your customers. Considering the economic instability of recent years, it's difficult to forecast what 2010 holds for your business. So, take some time to review your shipping processes to ensure you have the tools and technology in place to withstand whatever the year may bring. Jordan Colletta, Vice President of e-Commerce Marketing, is responsible for the marketing activities of UPS' customer facing technology and ups.com. Jordan is refining UPS's e-Commerce strategy, as well as delivering new solutions through the development of Internet-based technologies, applications and wireless access. Wed, 27 Jan 2010 08:10:52 EST C2DF5AEC0C194A2088114844AA9F11A4 http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=5FDD4B8ACC3B42569A25361BC25EFCD3 Download the 13th annual rate analysis to see how the rates changes of FedEx, UPS and USPS are going to affect you. Wed, 20 Jan 2010 17:31:12 EST 5FDD4B8ACC3B42569A25361BC25EFCD3 http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=069116AC94144F4DAD36F0AE7E030C60 Just as important as the negotiation of a new agreement, is the implementation process. After spending many weeks negotiating a new agreement with their carrier, people often miss the following critical step, to ensure that negotiated components are applied: The decision to apply the Prior History, or Not To. It’s important to decide if the prior shipping volume should remain intact, reset, or if a ramp-up period should be applied, when implementing a new agreement. Typically, it is recommended that prior history is utilized. It keeps the prior 52 weeks' history intact, so there is less concern about dropping into a lower revenue qualifier. There may be situations that would warrant otherwise, though, where resetting the history and/or applying a ramp-up period, is recommended, whether it’s heading into the peak of one’s seasonality, growth through acquisitions or through other means, or a shift from multiple to fewer carriers. Before making any such decision, gain visibility to your shipping characteristics and seasonality and always request a “Prior History” (UPS) or “Earned Discount” (FedEx) report, to determine the volume, in relation to achieving anticipated volume incentives. Finally, make your request, prior to awarding your business, as it’s a component of the negotiation process.   Thomas Andersen, MBA, is the director of pricing for Logica and an industry-leading expert in identifying and negotiating small-parcel cost savings. If you have questions, please contact him at tandersen@logicacorp.com or 800-930-8543 ext. 726. Wed, 16 Dec 2009 10:11:11 EST 069116AC94144F4DAD36F0AE7E030C60 http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=4919F5EA58E64B4DBF4507EC95B8061E My wife recently purchased hair products from a manufacturer called Deva Concepts. She purchased the product online from a beauty supplier and told me to expect the package at my office. I was surprised when the package arrived a few days later. It was huge.     Note: The shipper taped two medium-sized cartons together to create a single package. Slick.     Fancy hair product inside the big box. Contents : 1 – Bottle of shampoo 1 – Bottle of conditioner 2 – Packages of travel-sized hair supplies But what really surprised me was the volume of wasteful packaging used to protect the shampoo and conditioner.   Is this a joke? Packaging : 2 – 4” x 14” x 10” cartons 3 – Large UPS bubble packages provided by UPS for overnight shipping 10 – Void-fill airbags ½ a roll of packing tape While the hair products arrived undamaged, the branding effort scores a zero. Nice work maintaining a luxury brand image. And the kicker – there was not a shred of marketing material inside this heap to encourage a re-order. No coupon, no free sample, no catalog, nothing. The only evidence of the supplier was its logo and address on the invoice. Here are some ideas to preserve the luxury brand image and promote re-orders : • Don’t use the “free” bubble mailers provided by UPS as package filler. • Branded packing tape – simple, but effective. • Discount coupon for a customer’s next order. Everyone wants to save money, and loyal customers are less price driven. • Include samples of new products. Customers love free samples. • Promote related product sales with samples or coupons. In this case, include hair styling samples along with a shampoo order. by Bob Makofsky bmakofsky@conformerinc.com   Tue, 15 Dec 2009 10:49:00 EST 4919F5EA58E64B4DBF4507EC95B8061E http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=CF2D0C66E308457DA90112D8F8712821 Trucking (Market Weight): We spoke with a small retailer on the East coast about volume and LTL and TL pricing trends. This shipper’s volumes are trending up about 1% y/y during 4Q, which is roughly flat sequentially from 3Q and compares to 3%-3.5% y/y growth earlier this year during the seasonally strongest first quarter. Our contact noted that capacity for both LTL and TL remains extremely abundant, and over the last few months in particular he has received more incoming calls from carriers trying to do business than ever before. Eighty percent of this shipper’s freight is moved on LTL, of which SAIA accounts for about 50% of his LTL spend and our contact has been happy with both the service and rates he has received. Back in January 2009, our contact bid his LTL freight and received a 5% reduction versus 2008, and has recently put out an LTL bid package for 2010 and is seeing bids come in roughly 2% lower versus 2009 into continued apparent price competition for LTL freight. However, in the event YRCW were to file for bankruptcy, this shipper anticipates rates on freight not under contract will increase roughly 8%-10% immediately. On the TL side, this shipper received a similar 5% y/y rate reduction earlier in 2009, but unlike with LTL, our contact expects TL rates will be flat to slightly positive in 2010. Airfreight & Logistics (Market Underweight): We spoke with lead counsel Lynn Faris of Leonard Carder, LLP regarding a class action settlement in LaBrie vs. UPS Supply Chain Solutions (SCS). Ms. Faris (and her firm) is also the lead plaintiff’s attorney in the multi-district litigation in Indiana in the FedEx Ground Contractor case and was the winning attorney in the Estrada case in 2007 against FedEx Ground. Last Friday, a judge approved a preliminary $12.8M settlement payment by UPS involving the misclassification of some 660 delivery drivers as independent contractors. The plaintiff team used in their pleadings the 2007 precedent set in Estrada vs. FedEx Ground in which a Judge ruled that Single Work Area (SWA) drivers were in fact employees and not independent contractors and thus were entitled to back pay and expense reimbursement. Similar to the contractors in Estrada, the drivers at UPS SCS generally drove for themselves and did not have other drivers working for them and were also awarded overtime benefits and compensation as well as expense reimbursement for those drivers in CA as is the state law. While the settlement neither sets precedent or admits wrongdoing by UPS (unavailable for comment), it follows a pattern that both UPS and FDX seemingly would rather settle cases than risk an adverse ruling that could be used against them in the future. Unlike FDX which is facing a potential plaintiff class of about 25,000 current and former workers, UPS Supply Chain Solutions only has the 660 delivery drivers it claims as independent contractors. None of UPS’s core parcel drivers are independent contractors, but rather are all Teamster employees. Mon, 14 Dec 2009 16:30:29 EST CF2D0C66E308457DA90112D8F8712821