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=0EDB903F90364565A13A85A4C1264D90 We often use this space to focus on small- and medium-sized enterprises (SMEs). The reason is that those businesses represent a big part of our economy. According to the most recent data available from the Small Business Administration (SBA), there are roughly 27 million small businesses operating in the United States. Further, U.S. small businesses create more than half of the national GDP. We also focus a lot on providing globalization tips for businesses of all sizes. That’s because, with 96 percent of the world’s consumers living beyond U.S. borders, U.S.-based SMEs that don’t go global are missing lucrative growth opportunities. There’s compelling evidence that going global can boost the top and bottom lines of SMEs. The SBA found that companies engaged in international trade are 20 percent more productive, have 20 percent greater job growth, and are nine percent more likely to stay financially solvent. UPS has long been advocating the benefits of international commerce to our customers of all sizes, but doing business outside of the U.S. does present new logistical challenges. Consider all that’s involved with going global: How will the goods move from Point A to Point B, especially with an ocean in between? How can a small business finance a global supply chain and maintain a strong cash position when goods could be in transit for days or weeks? And what about clearing customs and managing long-distance relationships with trade partners? Most large companies have the resources to meet those challenges, but they can be intimidating for SMEs. However, with a smart logistics strategy, proper technology and a reliable and expert third party logistics provider (3PL), SMEs can turn the challenge of going global into a lucrative growth opportunity, just like large companies. Here are three tips that can help SMEs expand beyond U.S. borders. Step One: Research export markets and identify partners. There are resources available to help SMEs learn more about international markets and trade partners, including the U.S. Commercial Service (USCS), a part of the U.S. Department of Commerce that functions like a consulting service for U.S. companies seeking international buyers. And SMEs will be happy to learn that many USCS services (found at www.trade.gov/cs/) are free or come at nominal costs. Step Two: Develop a logistics strategy. At this stage, it’s practical for most SMEs to partner with a 3PL to gain valuable expert guidance and access to world-class tools and services to automate and simplify the process of going global – some of the same tools and services the big boys use. All of this can be obtained from a single source. Think of it as “logistics in a box.” A 3PL will initiate a planning process that considers a number of factors, including: Where are end users, manufacturers, suppliers and trade partners located within the supply chain? Where do orders originate? Where are distribution centers located in relation to customers? What are the SME’s current fulfillment and delivery capabilities, and what adjustments are necessary to reach international goals? What segments of the supply can/should be outsourced? A strong logistics planning process that covers all of those logistics questions … and several additional important considerations … will help a SME design a global supply chain that can quickly respond to marketplace requirements and lead to a positive return on investment. Remember, technology is critical in navigating the complex global marketplace. Technology-based solutions can help manage everything from inventory optimization to exporting to distribution, and an array of other functions to make a global supply chain more effective. Step Three: Getting your products to market. Shipping is just one component of getting your products to market in other countries. It’s really all about logistics. And logistics is all about choreographing the movement of goods, information and funds into one efficient, seamless supply chain. Think of global supply chain logistics as a stool with three legs. One leg is the movement of goods. Another leg is the movement of information about those goods. And the third leg is the movement of funds related to those goods. For the stool to remain standing, it’s critical for each of the three legs to operate in unison. SMEs can utilize multiple transportation modes to move goods in a global supply chain, including ground, rail, ocean and air freight. Again, work with a global 3PL to determine the best transportation combination to move goods as efficiently and cost-effectively as possible. Regardless of where customers are located, SMEs must provide them with order and shipping information. Again, technology is the key. With the proper tech-based visibility solutions, SMEs have easy access to inventory levels, order status and shipping information and can proactively supply that information to customers to reduce WISMO calls. The movement of funds is the critical third leg of the logistics stool. SMEs fear a global supply chain may wipe out the cash needed to run its day-to-day operations. Most traditional banks are hesitant to finance in-transit cargo because they lack visibility into the movement of the goods. However, there are other types of lenders SMEs can turn to. For instance, UPS Capital, the financial services arm of UPS, can advance funds against the in-transit inventory to provide working capital earlier in the supply chain. A quality global 3PL can help by providing a single source for the technology, financial services and logistics expertise needed to successfully expand into new markets and compete with larger companies. Wed, 21 Jul 2010 15:00:30 EST 0EDB903F90364565A13A85A4C1264D90 http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=4347058179314CCA92D1FA176B517C88 The slower pace of summer is the perfect time to reassess your mailing and shipping choices in order to find a solution that makes your life easier and more affordable. Because most private carriers raised rates in January 2010, you may want to do your business with an efficient and affordable provider — the U.S. Postal Service. While all carriers offer numerous service options, shippers can be overwhelmed by the nuances, surcharges and surprises that await them. For those reasons, and to ensure that shipping needs are addressed quickly, easily and cost-effectively, thousands of businesses have turned to Internet postage providers to better navigate the system. If your current service merely gives you the tools to print labels and postage at your shipping station, then the value of your provider falls short and you may be missing out on important education about changes or updates to shipping services and how they impact your business. However, using a company that updates its software automatically for users and provides valuable information on Postal Service changes can help optimize day-to-day business and save money for your company. For example, some recent changes were quite beneficial for shippers, including half-pound Priority Mail shipping pricing for qualified high-volume customers. Also, the Postal Service made a value-added addition to its popular Flat Rate services exclusively for qualified high-volume shippers, which is a great option for frequently-shipped items that are small but often require protective packaging, such as jewelry and electronics. The new feature is the Priority Mail Flat Rate Padded Envelope, an effective choice at a low and predictable flat rate. Compare these enhancements with what's happening with most private carriers, who have raised their 2010 rates by as much as six percent and it's looking to be a great year for those that use the U.S. Postal Service. Why Internet Postage? Electronic shipping software providers offer a simple and fast method for purchasing postage and processing shipments. This technology allows users to easily manage and print U.S. Postal Service shipping labels with integrated tracking, use Delivery Confirmation and other vital optional services like insurance, and conveniently schedule pickups. Some Internet postage providers also validate addresses and take advantage of a feature called SCAN, which allows barcodes from multiple packages to be scanned together during pickup; this gives recipients proof that the package is in route. An Internet postage provider's alliance with the U.S. Postal Service allows customers to easily purchase and print domestic and international postage and shipping labels with just a PC or Mac, a printer and an Internet connection. Thus, they take advantage of all Postal Service benefits and significant online postage discounts, without disrupting fulfillment workflow with trips to the Post Office. Take time this summer to ensure your shipping needs are being met and you aren't losing out on any opportunities to save time, money or hassles. This will help guarantee your postage and shipping choices are the easiest, fastest and most effective for your company year-round. Amine Khechfe, General Manager. As General Manager for DYMO Endicia, Amine Khechfe is responsible for directing all aspects of the DYMO Endicia business unit as well as managing its position within the Newell Rubbermaid Technology Global Business Unit. Graduating with a Masters in Science in engineering from Stanford University, Amine has held a variety of management roles in engineering, management consulting, software development, marketing and business development. U.S. Postal Service®, Postal Service™, Post Office™, Priority Mail®, and Delivery Confirmation™ are among the many trademarks of the United States Postal Service. Wed, 21 Jul 2010 10:43:00 EST 4347058179314CCA92D1FA176B517C88 http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=4D2594A19E444F26BCFF948C29671FD4 With literally thousands of Third Party Logistics (3PLs) and Logistics Service Providers (LSPs) scattered around the world, ready to make outsourcing a reality for you, how do you make the selection process less daunting for yourself? Evaluating the business proposition for each LSP and 3PL becomes even more confusing when you begin to see that some are asset based, some are management based, some are integrated, and some are administration based. It can be like comparing apples to oranges, at best, to find the best fit for your organization’s unique requirements. In fact, many organizations lack the resources, time, or experience with outsourcing LSPs and 3PLs even to assess the need to outsource or its feasibility objectively. That’s why, when it comes to outsourcing, it’s a good idea to hire an experienced consultant, someone who can provide objective advice and practical assistance - someone who has “been there, done that.” Whether you enlist additional help from a consulting resource or go it alone, however, you’ll need to apply the same solid purchasing and procurement skills you’ve used in the buying of any type of service (for example, transportation, warehousing, or logistics services) to your LSP or 3PL outsourcing process. You’ll also need to have a fundamental understanding of price versus cost. What follows is a tried-and-true game plan for achieving a successful outsourcing experience. The process doesn’t have to be cumbersome or overwhelming if you follow the Four S’s. In principle, outsourcing is a rendition of the sourcing process, of evaluating alternatives and making the best choice of a provider. Therefore, the Four S’s - Source, Solicit, Select, and Secure - are applicable. Our experience tells us that due diligence applied to these four areas will directly impact the longevity and effectiveness of your outsourcing relationship with the LSP or 3PL you select. SOURCE As obvious as it may seem you need to review, identify, and clarify the Business Process Outsourcing (BPO) requirement. You’ll need to review the internal organization metrics and Key Performance Indicators (KPIs) for the function, department, or process that will be outsourced. Then you will analyze gaps in performance, establishing which are most critical. Gathering data and manipulating information will be done by compiling six to twelve months’ worth of history and activity requirements, in detail. The next step is to obtain feedback on potential LSPs or 3PLs. This will necessitate a Request for Information (RFI). You will then need to prepare a profile questionnaire for the prospective providers to complete. Once a list of potential sources, both current and new, is prepared, you can review their profiles. Additionally, you will provide candidates with preliminary information about your solicitation and about your organization. Upon receipt of the completed RFIs and your review of submitted financials, insurance certificates, authority and operating documents, and references, you are ready to Solicit. SOLICIT Based on the RFI results, decide which providers will receive a Request for Proposal (RFP). Refine the list of prospective providers, based on their knowledge of your industry, their outsourced process orientation, and their geographic capabilities, discerning how consistent these factors are with your particular needs. When you Solicit, you also need to determine your preferred pricing and contract formats. Specify whether the bid or proposal is defined by the following: • Traffic lane or facility allocation • Geographic region • Complete scope or network If at all possible, you should hold a pre- proposal conference to invite qualified providers to: • Discuss expectations • Hold a question and answer dialogue • Exchange feedback prior to submission of their proposal. As you formulate your bid/proposal package for qualified provider sources, you should also include an information gathering template, where each LSP or 3PL can insert detailed data that allow you to make “apples-to-apples” comparisons. In addition to providing clear instructions concerning the information you want the provider to include, we recommend attaching a copy of the anticipated contract’s terms and conditions, up front, to avoid surprises later in the process. The RFP should establish what is considered to be a responsive bid/proposal and the deadline date. Look for the other two Ss in our August e-news! Thomas L. Tanel, CTL, C.P.M., CISCM, is the President and CEO of CATTAN Services Group, Inc., specializing in Logistics and Supply Chain issues. He is also the Chair of ISM’s Logistics & Transportation Group and can be reached at tanel@cattan.com or (979) 260-7200. Membership in the Group is open to all ISM members who are responsible for or have an interest in the Logistics & Transportation fields. Wed, 21 Jul 2010 10:31:59 EST 4D2594A19E444F26BCFF948C29671FD4 http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=97C79288F2D8443B8941A84CBB8B2B37 In tough economic times, the opportunity for self-evaluation and continuous process improvement seems to be a common initiative. Your transport carriers are no different. In recent months we have seen UPS and FedEx take a very controversial position as it relates to negotiating with shippers who use a consultant to assist them with data analytics, as well as with actual contract negotiation. With DHL's departure as a domestic carrier service provider, UPS and FedEx have taken a stand against pricing wars and are focused more on protecting their bottom lines. As some of the articles in this newsletter discuss, there are a number of strategies and tactics that have been recently implemented by the carriers. Does anyone else find it interesting that in these tough economic times that carriers are reporting significant increases to their bottom-line profitability, on a quarterly basis? Shippers need to beware of some of the strategies and tactics that are being implemented by UPS and FedEx. For starters, have you tried to negotiate your service agreement lately? Both UPS and FedEx have made a policy against negotiating service agreements for shippers when the shipper has engaged a third party consultant. We have seen situations where the carrier sales representative has informed the shipper that they would not present pricing if the shipper was using a third party to help them negotiate. We have seen situations where the carrier has gone as far as to require the shipper to sign a very strict Mutual Non-Disclosure Agreement (MNDA) with terms that prohibit the shipper from sharing the pricing proposal with anyone outside their company. Is that not like telling someone that they cannot use an attorney to represent them in a legal matter? Now, more than ever•Shippers need to stand tall with their carrier negotiations and not allow the carriers to push them into significantly reducing their negotiation abilities and their ability to leverage expert negotiators. It is more important than ever that shippers have access to their data and analyze it correctly, so that they have as much information as the carriers about their own freight spend. Ask yourself this. If one of your suppliers found out you were charging them more than the going market price, what would they do? Your carriers are banking on the fact that you will do nothing and continue shipping with them as usual. The real question is... What are you going to do? What are the carriers’ really telling shippers by deploying this type of strategy? I’ll state the obvious…they are saying that shippers who utilize a third party consultant have been getting better pricing than shippers that negotiate agreements on their own. Wed, 21 Jul 2010 10:19:48 EST 97C79288F2D8443B8941A84CBB8B2B37 http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=79A7066B5BC24CE280594F6425C8217B On July 6, the United States Postal Service announced its proposed prices for Mailing Services products, which include First-Class Mail parcels, Standard Mail Parcels and Non Flat Machineable , Bound Printed Matter, & Media Mail. information is available from USPS at: www.usps.com/communications/newsroom/deliveringfuture/prices.htm For the Readers of Parcel Magazine, there is a 23.3% average increase proposed for Standard Parcels & Non Flat Machineable Pieces. The USPS filed the proposed prices with the PRC, which by law has 90 days (until October 4) to review them and issue a final decision on whether "extraordinary and exceptional circumstances" exist to justify this effort, and whether the prices requested are in fact "reasonable and equitable and necessary." The New Rates will go into effect January 3, 2011, if the PRC approves the increase. The rules of engagement for postal rate increases changed with the Postal Accountability and Enhancement Act (PAEA) enacted on December 20, 2006. Prior to that, increases were "litigated", meaning the USPS would go to the PRC with its costs, its model for the future of costs, its current volumes and the predictions of volumes and then model the cost of each class of mail and propose rates that would cover the attributable cost for handling that class of mail. There was give and take, and challenges of the model and to volume projections, and various impacted entities could testify for or against. With the PAEA, the new process was to break competitive (Pieces over a pound that compete with FedEx and UPS) from the Monopoly (market dominant) products and to allow the USPS to increase those monopoly product rates once a year by not more than the Consumer Price Index (CPI). Well, for some odd reason, this change that the USPS had lobbied so hard to get and was to cure its financial future didn't work, and now they are claiming an "emergency" and a significant increase beyond what the CPI would call for. The first order of business for the Regulatory Commission is to determine if an emergency exists at all. Just recently, the USPS Office of the Inspector General declared that the USPS had overpaid into the retirement fund $75 Billion. The regulatory Commission, wanting to validate that claim, hired their own accountants and they came up with an overpayment of $50 Billion. If Congress accepts either of these findings, then perhaps no emergency exists and the USPS is swimming in cash for a while. For now, the Regulators have to act on the budget the USPS is forced to live within, and to accept the reality of the falling volumes, and the fact that on paper the USPS is losing billions of dollars. If things continue as they are now, the USPS will continue to lose billions until the USPS is out of money. Congress and the PRC will not let that happen. I'm including information provided by the USPS on the rate proposal. You, as concerned readers, can participate in the rate making process through The Parcel Shippers Association if you feel the 23.3% increase is not justified. ( www.parcelshippers.org ) Wed, 07 Jul 2010 09:48:26 EST 79A7066B5BC24CE280594F6425C8217B http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=48575A5E625A448399EE3BEACE516862 Last month, a Capgemini Consulting survey of 300 companies in Europe, North America, Asia and Latin America found that collectively, the companies’ top supply chain projects for 2010 are ones that allow businesses to more effectively respond to customer demand and improve internal business processes. With that in mind, it makes sense that the study also found, for the second year in a row, that the top supply chain IT project among those surveyed is improving supply chain visibility. That’s because increased visibility can help your business operate more effectively in a variety of ways, from better meeting customer demand to improving the customer experience to securing better financing. Visibility is important along the entire supply chain, from the source to the shelf to the shopper, and back again. Let’s discuss a few areas where visibility is especially important, and ways you can improve your business with increased visibility. Sourcing goods from overseas suppliers has the potential to create visibility gaps in your supply chain where you lose the ability to track your shipments. Companies may find it especially difficult to maintain visibility when their inputs or finished goods change hands during the import process. Don’t accept visibility gaps just because your shipments are coming in from overseas. Losing the ability to track your shipments even briefly while importing can make it difficult to optimize inventory levels to meet consumer demand. It can also make it difficult to obtain reasonable financing for the cargo you’re importing. Look for a shipping partner with a strong presence in markets from which you source your goods, and leverage that to bridge gaps between the multiple parties involved in getting your imports to the U.S. Your business may also benefit if your shipping partner can provide attractive cargo financing options through a financial services arm. Because the shipper maintains clear visibility throughout the shipping process, the financial services arm may be able to provide attractive financing rates. Providing your customers with tracking capabilities isn’t a new concept, but the channels through which you can provide it have expanded. Years ago, the phone was a customer’s only tracking option; now, customers can log onto the web and even use their mobile devices for instant updates. Advanced customer solutions allow shippers – and their customers – to receive an e-mail alert and tracking number, PRO number, house air waybill or house bill of lading when an item ships, or a heads up if an exception occurs or if more information is necessary to complete delivery. For customers waiting on an important shipment to arrive, being able to track its progress is crucial. For instance, the owner of a small, single-employee craft business may need to monitor the movement of supplies so she can provide timing updates to her own customers as they eagerly await her finished products. Or, a customer may be anxiously tracking a last-minute web purchase to make sure it will arrive in time for the holidays. It’s important that customers have the peace of mind knowing where their packages are and when they’ll arrive. Without the technology to make it convenient for your customers to track their shipments, you risk losing their future business. Thankfully, technology to accurately track your shipments and provide your customers with updates is available. And, the right tracking software can also help you dramatically cut down the time it takes to fulfill and process orders internally, making it easier on your staff and making time-in-transit as short as possible. For example, one of our customers, Florida-based Vology Data Systems, ships new and pre-owned networking and telecommunications systems around the world. By using UPS visibility technology, Vology keeps its inventory moving and accelerates the billing process since the company can bill for an item as soon as it has a tracking number. Applications, or “apps,” for mobile devices are another way to increase visibility for your customers. UPS, for example, has launched mobile shipping apps for the iPhone, BlackBerry and Android that can create and track shipments, calculate shipping rates and time-in-transit, and then find the nearest location to drop off a package. Visibility during the returns process is also important. If you sell goods, it’s inevitable that at least a small percentage will be returned for various reasons; if you sell many goods, processing returns may even be routine. For many small and midsize businesses not knowing what returns are coming in and when they’ll arrive can wreak havoc on your efforts to optimize inventory to meet demand and avoid costly markdowns. Tracking returns as they’re en route to your business can be as simple as working with your shipping partner to generate a special return label to be included with shipments to your customers, or to e-mail a return label at the time of purchase. Once scanned at the start of its journey back to your business, the label will notify you that the return is coming, and when you can expect it to arrive. Shipping and supply chain visibility can impact many facets of your business, and as the Capgemini Consulting survey showed, supply chain visibility continues to be a top supply chain consideration for many businesses. If you haven’t already, consider making it a top priority for your business, too. Jordan Colletta, Vice President of Customer Technology Marketing, UPS, 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, 23 Jun 2010 16:35:25 EST 48575A5E625A448399EE3BEACE516862 http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=8B0DED1CC9F24AECA5D22D28B9DBEFE2 In today’s Supply Chain-centric world we usually concentrate on the bigger, enterprise-wide picture - the complete Supply Chain that starts with raw material acquisition and continues through to delivery of product to our customers. But what about the many dollars controlled and spent by the rank amateurs in your organization – the “Office to Office” letters & envelopes, the small packages of contracts, sales brochures, and samples that drivers carry out of your office front doors every day? Is anyone with Supply Chain expertise managing those shipments? Are there rules in place that spell out when 2 Day or Ground service, or even the Post Office would be appropriate, saving the premiums paid for overnight or even 8:30 AM delivery? And what about those extra costs for Saturday deliveries, oversize packaging, “out of zone” deliveries, and the rest? In most large companies with multiple locations, controls should already be in place. Each site’s mailroom probably collects intracompany envelopes throughout the day for consolidation into that evening’s “Pouch” to major company facilities or other significant destinations such as suppliers, job sites, and 3PL operations. But what about smaller offices or companies, where an office manager or executive assistant, with far more pressing (and higher dollar value) things to manage, sends out small packages based on which carrier rep calls regularly? In those offices, often left on their own in the wilderness, it’s quite common for each employee to have their own password to the office’s small package carrier account. With this unrestricted license individual shippers fill out their own airbills, decide what service level to use, and place their packages or envelopes in a pile near the front desk for pickup. Even without any consolidation the shipments get delivered, of course, and the invoices get paid, but who makes sure that the company’s money was spent wisely? Which brings us to your company. Take a close look at your own “Office to Office” situation. You might discover a small, hidden stash of savings. Maybe not the fistfuls of diamonds we hope to find in major Supply Chain improvements, but you’ll probably uncover enough gold and silver nuggets that together will add up to significant savings. To understand your situation you need to ask: - Is there a company policy on when to use specific small package services? - Is the policy being followed? - Who is responsible for monitoring compliance? - Is there an approved domestic or international carrier (or two)? - If not, is it time for a formal bid process? - Is there an existing cargo agreement that can quickly have “Office to Office” shipments added? - Is anyone auditing monthly reports for compliance and tracking of excess cost? - Is anyone reporting on and correcting policy violations? - Is there a feedback mechanism in place to make behavioral and/or policy modifications? - Is the existing policy out of date or incomplete? - Are the dollars involved worth the establishment of a formal program? The goal of this article, as you have already figured out, is not to provide answers, but rather to pose the questions above and hopefully get you thinking about others unique to your situation. Then you can answer your boss when he or she asks: “Who's Managing the Small Package costs in our offices?” Or better yet, perhaps you can head off that uncomfortable question by proactively proposing your own “Office to Office” shipment management program that includes policies, tracking, and real savings. George Yarusavage, CTL, C.P.M., is a principal in Fortress Consulting, specializing in Transportation and Sourcing issues. He is also the Second Vice Chair of ISM’s Logistics & Transportation Group and can be reached at gyarusavage@yahoo.com or (203) 984-4957. Membership in the Group is open to all ISM members who are responsible for or have an interest in the Logistics & Transportation fields. This article is part of the monthly series authored by ISM’s Logistics & Transportation Group Board Members, who are current practitioners, consultants and educators. In future columns they will be sharing their views on a number of Supply Chain topics. Mon, 21 Jun 2010 09:40:09 EST 8B0DED1CC9F24AECA5D22D28B9DBEFE2 http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=2080883290794FCB950690F5BCEFB67C Kewill recently announced the availability of the “2010 Best Practices Survey for Parcel Shipping and Global Trade Management.” Kewill surveyed over 500 logistics professionals, executives, and managers in industries ranging from aerospace and electronics to healthcare, agriculture and retail; and from companies doing less than $50 million in business to many (35%) over $1 billion in revenue. Survey participants revealed their challenges and strategies in parcel shipping, export and global trade management. This is the fourth year Kewill has conducted this highly anticipated benchmarking survey of logistics professionals, which highlights key trends and industry best practices. The findings of the survey are detailed in a whitepaper that also provides 10 best practices recommendations for parcel shipping, import compliance and export compliance. To download this informative whitepaper please visit: www.kewill.com/Benchmark2010 , or click the Download PDF button at the bottom of this page. The study shows that almost all shippers (95%) use two or more carriers and the largest shippers are more likely to use 5 or more carriers (28% vs. 9% for small shippers). More than half of our survey respondents (53%) still use a manual process to determine licensing requirements for exports and destination country import regulations. “This study confirmed what we often hear; the consistent theme is that companies have cut back on staffing and complicated the tasks by adding options and focusing on cost reduction - so fewer people are being asked to do more. While that may have been an acceptable strategy when business was down, as the markets recover, companies should pursue automation to help the smaller teams handle increased demand,” said Brian Hodgson, vice president of marketing and business development for Kewill. Some key findings from the report include: • Ninety-six percent of survey respondents noted that they had made changes to their business in response to the recent economic slowdown, especially headcount reductions, use of lower cost shipping options, and changes to the carrier mix. • Despite headcount reductions, employees are spending considerable time and effort processing import and export documents and have reported a measurable level of errors that cause delays and rework. • Sixty percent of survey respondents said that they are using lower cost shipping options. One-third changed the carrier mix to include regional carriers and/or consolidation. • Despite the reduced headcount in shipping, the majority of companies (59%) report that it takes more than 10 minutes, on average, to produce and distribute export documentation. To be included in the 2011 Best Practices Survey for Parcel Shipping and Global Trade Management, please send an email to: info@kewill.com .    Kewill is a leading provider of solutions that simplify global trade and logistics. Visit them online at www.kewill.com . Mon, 21 Jun 2010 09:29:03 EST 2080883290794FCB950690F5BCEFB67C http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=58667DBF776C47EE8835E178CDDD1B45 If your company is handling hundreds, thousands, or even millions of shipments per week, you need access to a carrier data management system that can successfully do the following: • Reveal your current shipping methods and point to improved methods • Help you to practice lean manufacturing where appropriate • Allow you to operate as an on-demand business • Improve your ability to make and understand sourcing decisions • Assist with overall supply chain management For most companies, it is going to be more cost-efficient to go through a third party to implement a carrier data management system that can do all of the above than to try and create their own system in-house. Every major carrier literally has thousands of pages of information which can take months, if not years, for any large corporation to research and analyze. The average corporation doesn’t have in place the technology and hand-in-hand tools needed to perform a complete rate analysis or maximize on findings. By going through a third party data carrier system provider that already has a proven system in place, shippers can save both time and money. In my decades of experience in the parcel industry, I have found that global shippers are capable of saving an average of up to 40% on their overall annual logistics expense when they go through a carrier data system provider, and startlingly lesser amounts when they attempt to perform their analytics in-house. Despite being aware of such statistics, many shippers are concerned that opening their doors to a third party will make their department or position seem deficient or irrelevant in some way to higher-ups. In my experience, this is not typically what happens. Typically, supply chain professionals that have the wherewithal to locate, research, hire, and then work with established third party providers to save their company money, are far more likely to rise up the ranks at their company at a faster rate than to suffer negative effects from implementing a technology-based cost-saving initiative. The key to making sure your partnership with a third party shines a positive light on you and your department is working with a third party that empowers you to make decisions rather than dictates those decisions for you. To find such a carrier data management system provider, look to third parties that have a proven record of successfully accepting and housing electronic data directly from carriers on behalf of shippers, and have shown that they are able to perform benchmarking analyses based on that data in order to provide shippers with the market intelligence they need to create and implement ongoing cost-saving solutions. Do they already have in place a dashboard that you can use to view and control each shipment in your supply chain, monitor routing guide compliance, and manage your overall supply chain? What kind of reporting and forecasting capabilities does it have? You want to work with a third party that can tailor proven, pre-existing technology specifically to your needs—not one that promises they can custom-make create the technology you need from scratch. This will lower expenses on your end, and will help ensure a positive outcome on both sides. Furthermore, any carrier data system you implement should be primed to expand with your company when shipment volumes and/or profits increase. This may not seem like a terribly important capability now, but even if your expenses are increasing and revenues decreasing, it may still be possible for you to take advantage of things like relatively stabilized fuel charges and other economic advantages specific to your particular industry, and in doing so, expand your company. Your safest bet is to go with a carrier data system provider that is prepared to handle both worst and best-case scenarios. Mon, 21 Jun 2010 09:20:46 EST 58667DBF776C47EE8835E178CDDD1B45 http://www.parcelindustry.com/ME2/dirmod.asp?sid=23C6283BD51B46348B616C079EEB2E21&nm=Miscellaneous&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=B7061AC9B0DF47A6999AE4DECB5453E7 You take care of your warehouse. You maintain your TMS. You make certain your staff is taken care of. And yet, you may be destroying your most valuable transportation asset; namely your shipping data. Let’s think about this logically for a moment. Cost savings are derived from formulating and executing on specific, actionable strategies. Development of successful strategies requires creative thinking, but it also requires an understanding of the possible implications of strategic changes. In the logistics and supply chain space this requires analysis. Reliable analysis, by definition requires robust, valid data. We have all heard the cliché garbage in – garbage out, and nowhere is that more true than in parcel analysis. Many shippers report that they use TMS/WMS data for their analytics. While TMS/WMS data is better than using raw assumptions, there are some inherent problems with this data. The biggest drawback, and it’s a big one, is that TMS/WMS data does not capture post-manifest adjustments. This means that items like residential/commercial adjustments, DIM weighting, additional handling surcharges, large package surcharges, et al will be missed. Take a look at one of your recent carrier invoices. If you are like most shippers you’ll be surprised by how much of a role these items play in your total parcel costs. Much preferable to WMS/TMS data is actual carrier invoice files. These files can come in many forms. UPS can provide the data in delimited text files. The current format is known as the “Billing Data File”, but there are other legacy file formats as well. FedEx typically transmits their invoicing data only in EDI format. Both carriers can provide reporting on shipment details, surcharges, etc. Whatever the format, carrier invoice data is preferable to TMS/WMS data as it includes all factors that affect your actual cost. Therefore, if properly parsed and analyzed, carrier data can provide you with all of the information necessary to analyze various scenarios and options in the strategic planning process. Based on our experience in the field very few shippers capture their shipping data. Of the few that do, very few have a policy in place for warehousing and protecting their data. Without such a policy you run the risk of corrupting, or worse yet losing your most valuable planning tool. Here’s the short version of what you need to know: • If using EDI source data, assign a resource in your organization to parse and archive your EDI feed monthly. • If using text (csv) source data, assign a resource to archive your data each week. • Assign file names such that the time frame and carrier name are clearly referencable. This will make finding the necessary files much quicker and easier. Whether you are going to be performing analyses yourself, or you plan to outsource the analysis, having data on hand, complete and uncorrupted, will shorten the time required for any analysis. • Store your data on a protected network drive. You can allow your transportation staff access to the drive for copying purposes (i.e. they can save a copy to a local drive), but do not allow access to delete files or to modify files that reside in the networked directory. • Do not open the original CSV files and save them using Excel. Excel (and other spreadsheet solutions) tends to format the data and change the values. Tracking numbers or zip codes can be treated as numbers and rounded or truncated. • Protect your data. Be very careful what data you allow to leave your organization. Remember that your parcel data contains information your customers, vendors, etc. may not want distributed to outside parties. Remember also, that much of your data is likely considered confidential based on your carrier pricing agreements and/or non-disclosure agreements. Be sure that you understand what you’re releasing and the possible ramifications before allowing any third parties access to your data. Mon, 21 Jun 2010 09:07:26 EST B7061AC9B0DF47A6999AE4DECB5453E7