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 | 100 Great Supply Chain Partners: Executives Reveal How Providers Play a Big Role in Their Success |
BDP International makes the list as one of the 100 Great Supply Chain Partners with a sample user testimonial of "Great service, and consistent"
July 22, 2010 - Far be it from us to say that Aristotle got anything wrong, but ... the sage has been quoted as saying friendship is essentially a partnership. Maybe so, but we think there is a crucial difference. A friend is someone you know and like. Depending upon a number of factors, a friend can be someone you trust and and who can be counted on to help you in good times or bad. But doesn't' that describe a partner as well? We don't think so. Aside from the fact that a partner may not be someone you're particularly fond of, a partnership is based on mutual interests, not mutual likes and dislikes. A partner associates with another in a joint endeavor usually sharing its risks and profits. And that's the big difference, it seems to us. A partner is not someone that you necessarily share the intimate and personal with. There's a healthy distance between you and the partner, which helps him or her tell you what you need to know to ensure the viability of the alliance. A partner brings an expertise to the relationship that you would not otherwise have. Finally, a partner is someone committed to helping you advance in some manner because your success, or failure, is the partner's as well. Which brings us to the 100 Great Supply Chain Partners. In this special issue, we again celebrate those companies that have been nominated by their partners as someone deserving recognition because their product or service has been of great value to them. Whether in logistics, technology or consulting, these 100 selected companies have aided, advanced, improved - choose your word - the supply chain management of their clients. We salute them, and those readers who took the time to nominate their partners. It goes without saying that they know the whole world will see the identities of their supply chain partners. When so many go to such extremes to keep that information secret, it is remarkable that these folks would come forward and say in effect, I want everyone to see who has been working alongside my company, guiding and instructing us, and sharing the trials and triumphs because we have a vested interest in each other. This is not to say that the readers who "named names" don't have their own capabilities; of course, they do. Many of them are tops in their areas, whether that's manufacturing, distribution or retail, and regardless of the vertical they specialize in. But no one can do it all; not well. So, they turn to the expertise of others. As always, the scope of the 100 Great Supply Chain Partners issue is truly global. We received more than 2,800 nominations this year from companies of every size and description. The nominees are active in every facet of supply chain management. Some of these vendors are household names, many are not. Some have networks with global footprints, others can fairly be described as niche players with highly customized approaches to service. Whether they toil in the limelight or in relative anonymity, they were nominated because of what they do to help their partners succeed in productivity boosts, inventory turns, reduction in costs reduction, increased customer satisfaction, or some other area. The 10 Most Common Qualities Wanted in Providers 1. Reliability - Without doubt, every year the single-most important element readers value is reliability in their partners. When a vendor has proven itself to be solid in this area, a lasting partnership follows. 2. Excellence - Doing what's expected is good; service over and above what's required is excellent. 3. Value & cost savings - The main driver for purchasing any new technology or service is cost savings, but the most the important financial measure is value in terms of increasing sales, production or other revenue-related metric. 4. Expertise and knowledge base - Providers must incorporate best practices specific to their industry, market or product. Trust fails when you can't demonstrate this. 5. Problem-solving - Partners must take charge and solve problems or risk losing the customer. 6. Continuous improvement - You can't rest on your laurels. Customers demand to see a plan for product development (especially in technology) so they know their future needs will be met. 7. Support - Customers outsource to those who have the expertise, so they depend on vendors to implement, train, maintain and support the technologies and service provided. If anything, readers say, support is almost as important as the technology or service itself. 8. Be positive - This might be called a can-do attitude. Vendors that took on any challenge without complaint are highly valued. 9. Global footprint - It goes without saying that companies looking to do business around the world need partners with global reach. 10. Strong management - Commitment is key to a longstanding and fruitful relationship. Customers carefully monitor the leadership of their supply chain partners. Some additional points to remember: · The methodology for the 100 Great Supply Chain Partners nominating process is spelled out on this page. However, very simply, the companies listed here are entirely based on voluntary responses from readers. No one at SupplyChainBrain had anything to do with which companies were nominated. · We have included 100 vendors just because it is a manageable number. We actually received nominations for more than 400. The companies included just had more, and more in-depth nominations than the others. The comments offered for the unmentioned companies clearly reflect their customers' appreciation, but we had to draw the line somewhere. Click here to view the full list
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| Port lockout continues, local businesses suffer |
July 21, 2010 - The Quebec Employers Council will meet with the media Wednesday morning to discuss the negative impact the lockout at the Port of Montreal is having on local businesses.
Hubert Bolduc, vice president of communications and public affairs for the Cascades tissue paper company, will be at the news conference.
Alain Quintal, president of Dutal -- a Brossard-based company that distributes perfumes and natural products -- will also attend.
A labour dispute between 850 longshoremen and the Maritime Employers Association brought commercial operations at the port to a halt Monday morning. Shipments from grain silos, which are run by the Port of Montreal itself, are not affected by the lockout.
The Maritime Employers Association issued the lockout to put an end to the longshoremen's union refusal to work overtime as a pressure tactic.
The longshoremen, who unload shipping containers full of goods at the port, have been without a contract since Dec. 31, 2008.
The association said workers are guaranteed their jobs and full pay even if they do not actually work unloading ships, under the expired agreement.
The following has been released by the Montreal Port Authority:
- The Montreal Port Authority has obtained an injunction. The purpose of this injunction is to allow access to the Port and to continue work unrelated to the employees of the Maritime Employers Association.
- The grain terminal can receive and ship cargo.
- The Maritime Employers Association is maintaining its lockout.
- Rail traffic in the Port has resumed. All the freight cars are being
consigned and loaded. Freight cars that were loaded before the conflict are leaving the terminals.
- Cargo on terminal property is not being handled.
- No vessel requiring the work of longshoremen for its operation is in the Port.
- Certain access points to Port territory are closed: Only the Berri,
Viau and Hector-Barsalou entrances remain open to traffic and allow unhindered entry and exit from the Port of Montreal.
CTV Montreal and the Montreal Port Authority
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| Brazilian companies seek to reduce costs of importing, say supply chain execs | |
Logistics functions are increasingly outsourced to focus on core competencies and remain competitive
July 20, 2010 - São Paulo and Philadelphia - In a recent study of supply chain executives in Brazil, nearly 7 out of 10 respondents cited total landed costs of importing products into the country as their greatest challenge. These costs include purchase price, freight transportation, insurance and other inbound logistics costs to the port of destination, plus customs duties and other taxes on shipments.
"As Brazilian companies become part of regional and global supply chains, they increasingly are looking to reduce the landed cost of their imports and speed their delivery to markets here," explained Roberto Croce, general manager of BDP International in Brazil, a unit of U.S.-based global logistics firm, BDP International, which conducted the study.
These companies also appear to be placing higher priority on reducing internal overhead as they turn to firms specializing in logistics for better control of inbound shipments and compliance with complex import regulations that can impede cargo clearance and incur highly punitive penalties for documentation irregularities.
"Recognizing the impact of the total landed costs of imports on their profitability and competitiveness, many Brazilian companies are transferring both the process and accountability for import documentation and compliance penalties to third-party service providers," Croce added.
The survey also found that more than 60% of the respondents are increasingly outsourcing their transportation-related functions, with nearly half reporting greater outsourcing of global logistics and Lead Logistics Provider (LLP) management support as well.
"This trend was already underway prior to last year's global financial crisis, but economic conditions clearly accelerated it as companies refocused on their core businesses, and turned to external resources for their non-core activities," said BDP's Croce.
"Outsourcing their logistics-related functions not only helps them reduce internal costs, but also manage their global supply chains better through the expertise of lead logistics providers and value-added services such as supply chain visibility and metrics on the performance of upstream origin suppliers, carriers, third-party logistics partners and other players in the supply chain, he added."
Significantly Brazil weathered the global recession considerably better than the U.S. and European economies, due in large measure to vibrant intra-regional trade. While respondents to the survey indicated they import materials from a variety of regions, nearly 70% export primarily to other Latin American Countries.
"Through its trade agreements with other Latin American countries as well as China and other countries in Asia, Brazil has managed to make significant progress in reducing its reliance on North America and Europe, insulating itself from the economic volatility affecting those relatively mature markets," noted Croce. "We are moving toward becoming a first-world economy with continued strong growth prospects."
Among the survey's other findings were concerns among supply chain professionals over the readiness of Brazil's infrastructure for the 2014 World Cup and 2016 Summer Olympics, cited by over 90% of the respondents. Many raised doubts that much needed improvements will be completed in time to accommodate the business and consumer demands of national undertakings of this magnitude.
"However it should be noted that our Growth Acceleration Programs, while somewhat behind schedule, are injecting nearly BRL 60 billion (USD 35 billion) into infrastructure upgrades," said Croce. "We're admittedly in catch-up mode, but I'm quite confident that a number of the major projects will be completed in time for these events."
The survey was conducted via an online questionnaire distributed to 350 supply chain professionals, 11% of whom responded. Of those, 41% were in the chemical industry with the balance representing other vertical industry sectors. More than half of the respondents' companies are based in South America, 26% in North America and 18% in Europe. More than 80% of the companies are engaged in both import and export activities. Nearly 70% use ocean transport most frequently, compared with just 22% that use predominantly air. Over half the respondents worked for companies with annual revenues of more than $500 million.
BDP International
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| Senate Bill Would Expand Plant Security Law to Include IST | |
July 16, 2010 - Senator Frank Lautenberg (D., NJ) has introduced legislation that would revise the existing U.S. Chemical Facility Anti-Terrorism Standards (CFATS) to include a requirement that facilities consider inherently safer technology (IST). The Lautenberg measure is similar to a bill passed last year by the House.
The Senate bill would conditionally require the highest risk plants to use safer chemical processes where feasible and cost-effective, and require the remaining high risk plants to assess safer chemical processes. It would also eliminate the current law's exemption of water treatment plants and certain port facilities, involve plant employees in the development of security plans, and preserve states' authority to establish stronger security standards.
The bill's introduction comes as Congress is gearing up for an October statutory deadline when the existing CFATS will expire, unless renewed by Congress. However, renewal of CFATS has opened the door for lawmakers who want to make changes to CFATS.
For industry, mandating consideration of IST is a serious concern because it is perceived to shift process safety decisions from plant managers to bureaucrats. Socma and other industry groups say that mandating changes to CFATS before the rules have been fully implemented also would be costly and ineffective.
The Senate bill conflicts with DHS emphasis on a balanced approach to CFATS, says Socma president and CEO Lawrence Sloan. Socma appreciates the bill's attention to the impact of IST on small chemical facilities, Sloan says. "However, IST is obviously not a common-sense mandate." The bill's approach is fundamentally flawed because it is an attempt to mandate a process safety concept, not a security measure, Socma says. IST has not been uniformly defined and cannot be measured, it adds. "Academia and industry experts alike have repeatedly testified against mandating IST, yet this bill ignores those warnings."
Socma supports the bill introduced by Senator Susan Collins (R., ME) which would extend the existing CFATS without making changes to the program.
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| New cargo terminal at KLIA | |
July 17, 2010 - Kuala Lumpur International Airport's cargo capacity will be boosted in two years when its low-cost carrier terminal (LCCT) is converted into a cargo facility.
The construction of a new LCCT at KLIA is due to be completed in early 2012.
The converted cargo terminal will have capacity for 320,000 tons of cargo a year, increasing the overall annual cargo capacity of KLIA to 1.3 million tons.
Supply Chain Asia - Weekly Reviews
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| Exporters sweat over delays in box handling at Chittagong Port |
July 19, 2010 - FOREIGN buyers, including importers from Europe, have been complaining about the growing delays in container handling at the Port of Chittagong.
Some big importers are reported to have already asked their foreign suppliers to strictly follow the production schedules as the delivery of cargo through the port is taking an "unusually" long time.
The European market is the destination for more than 60 per cent the country's readymade garment shipments, which account for three-quarters of Bangladeshi export value.
The delays have been attributed to changes in cargo handling agents "who are causing hassles requiring more time for loading and unloading of containers. The government is going to appoint new and an adequate number of cargo handling agents at the port to keep the pace of rapid cargo handling," reports Bangladesh's New Nation newspaper.
It cited a local exporter as expressing concerns that his consignment will remain stuck at the port for 10 days whereas it used to take less than three days for shipment.
Meanwhile, a major European importer is said to have notified all its Bangladeshi suppliers to remain alert as growing delays in handling cargo at the port might delay shipments.
The country head of a UK-based global retailer has mentioned the difficulties faced due to delays in delivery of containers through the inland container terminal in Dhaka, the report said.
Shipping Gazette - Daily Shipping News
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| China as procurement hot spot
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July 20, 2010 - China - China is seen as an ideal procurement hub to US and European businesses.
Despite negative media coverage, China is still a leading global player in the international procurement industry, Supply Chain Digital reports.
The country is encouraging overseas investments, but Steward Ferguson, head of research and consultancy at the China-Britain Business Council believes there are pitfalls and risks to take note of.
"China can produce quickly and in volume but sometimes there is a question over whether the quality slips. There is an onus on the person that is making the purchase in ensuring that their suppliers are capable," he says.
However, there are success stories that discredit the quality issues of procuring from China.
Manufacturers are also placing more emphasis on employee safety after the recent reports of unsatisfactory working conditions in the country.
By Kristie Thong
Procurement Asia
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SG opens more skies
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July 20, 2010 - Singapore - Singapore has concluded Open Skies Agreements (OSAs) with Barbados, Brazil, Jamaica and Rwanda.
At the International Civil Aviation Organisation Air Services Negotiation Conference 2010 (ICAN 2010), the OSAs with Barbados and Jamaica are first between Singapore and the Caribbean Community. The Singapore-Brazil OSA comes after the Singapore-Peru OSA.
The OSA with Rwanda is Singapore's second with an African country, after the conclusion of the Singapore-Zambia OSA in 2008.
OSAs allow carriers full flexibility to introduce services when market opportunities arise. Carriers are also able to tap on traffic from and to third countries to improve the commercial viability of their operations.
Direct air links with the lion city will allow Africa, Latin America and the Caribbean community to access more markets through Singapore's connectivity in Asia Pacific.
There are currently no direct flight connections between Singapore and Latin America or the Caribbean.
Singapore and Fuji also concluded an open skies framework for cargo services and expanded traffic rights entitlements for passenger operations between and beyond both countries.
"Airlines operate in a challenging environment with dynamic markets.
It is thus critical for countries to proactively put in place air services frameworks that enable airlines the commercial freedom to respond to market opportunities," says Yap Ong Heng, director-general of the Civil Aviation Authority of Singapore.
With the addition of the four new OSAs, Singapore now has OSAs with over 40 countries.
By Kristie Thong
Procurement Asia
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Malaysian freight improves
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July 20, 2010 - Malaysia - The country's container shipping freight rates have resumed close to pre-crisis levels due to a demand and shortage of container equipment.
"All main shipping routes are seeing an uptrend, especially for long-haul freight rates," says CMA-CGM Malaysia managing director, Simon Whitelaw.
Shipping lines believe the raising rates for cargo moving from Asia to Europe are part of a rate restoration programme following the economic recovery, Cargo News Asia reports.
"During the crisis, shipping lines cut capacity, laid up vessels, and laid off staff. Now that there is a recovery you can't automatically get everything back up. It takes time," says Ooi Lean Hin, chairman of Shipping Association of Malaysia.
The global container shipping industry lost more than US$15 billion last year.
The concern now is for exporters to find equipment and/or vessel space to ship their cargo, instead of focus on the rates that have yet to return to pre-crisis levels, says Ooi.
"That's because the squeeze on capacity and equipment, combined with the willingness of Chinese shippers to pay more, have resulted in the principals of container lines allocating more container space to them and less to Malaysian shippers."
By Kristie Thong
Procurement Asia
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| Extra 28 weekly flights on HK-Shanghai route | |
July 21, 2010 - THE Hong Kong General Chamber of Commerce has warmly praised the additional 28 scheduled flights between Hong Kong and Shanghai Hongqiao Airport every week.
"As the southern gateway to the Pearl River Delta (PRD), Hong Kong's stronger connections with the Yangtze River Delta (YRD) will have important strategic implications," said chamber chairman Anthony Wu.
Shanghai Hongqiao Airport, located at the heart of the newly developed transportation hub in the Yangtze River Delta, connects domestic flights, high-speed railway, inter-city railway, metro subway and highway in northern China.
"Adding scheduled flights to Hongqiao means expanded exchange of people, capital and goods with the YRD and closer connections between the two major economic regions in China," said Mr Wu.
"Greater access to the YRD will encourage more economic activities," added Alex Fong, CEO of the Chamber, in a government statement.
Shipping Gazette - Daily Shipping News
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| Italy should close half its airports | |
June 19, 2010 - Italy should close 24 of its 48 airports and bulk up its national aviation strategy around international gateway airports Fiumicino in Rome, Malpensa near Milan and Venice, a consultancy report commissioned by the Italian government suggests.
Those three airports can double or even triple their annual passenger counts and boost cargo capacity by 2030 and need prompt investments for improved capacity, the report by One Works, KPMG and Nomisma said, according to Dow Jones Newswires.
Airports that need to be shuttered included Brescia.
Cargonews Asia
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| Oil imports at Dalian choked but box traffic back to normal | |
July 21, 2010 - Oil imports were still blocked at the major Chinese port of Dalian on Tuesday following a fire and oil slick, while authorities recruited an additional 500 fishing boats to help with the clean-up, reported Reuters.
But container operations had returned to normal, and shipping lanes were open after temporary restrictions, reported Xinhua.
Refinery operations have been disrupted and cargo diverted since a pipeline explosion and fire hit the Xingang port, home to a 19 million barrel strategic petroleum reserve, during a tanker offloading last Friday, spilling 1,500 tonnes of crude into the sea to leave a slick covering 183 sq km.
Port operator Dalian Port said in a statement that except for the crude oil terminal, all terminals at Xingang and the adjacent Dayaowan area had resumed operations.
"While ground operations at the group's crude oil terminal have been resumed, the group will take active measures to resume the vessel loading and unloading operations in the near future," the statement said.
"The handling and storage capacity of the group for refined oil and liquefied chemicals has not been affected by the accident, while part of its handling and storage operations for crude oil has been temporarily affected."
Cargonews Asia
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Congestion Returns to European Ports | |
Rotterdam, Bremerhaven overwhelmed by increased traffic
July 20, 2010 - Europe's top port Rotterdam is getting congested as surging container imports from China overwhelm deep-sea terminals and interrupt feeder services to smaller regional ports.
Unifeeder, a leading container feeder carrier, said it is facing "serious operational problems" at Rotterdam terminals which are causing delays and short-shipments of cargo to and from Baltic and Scandinavian ports.
Other major north European ports also risk congestion during the summer because of what Maersk Line, the world's biggest carrier, describes as an "unprecedented" surge in traffic in most trade lanes.
Unifeeder says it hasn't been able to maintain its schedules because of delays of up to 36 hours on both northbound and southbound services out of Rotterdam.
The Danish carrier has pooled some services but can't guarantee it will meet calls by ocean-going carriers.
Unifeeder, which operates 28 ships, plans to introduce a congestion surcharge on August 1 if there is no improvement at the ECT Delta, ECT Home and Euromax terminals in Rotterdam.
ECT and Euromax blame the congestion on increased volume and a shortage of dock workers during the traditional vacation season.
The situation is aggravated by ocean carriers failing to keep to schedule, extra calls by ships picking up empty containers for Asia and the spill over of boxes from Le Havre during industrial action at France's biggest container port.
Rotterdam also is paying the price of success as ocean carriers concentrate more calls on the port.
Cosco, for example, is unloading 80 percent of its cargo at Rotterdam and 20 percent at Hamburg this year compared with a 40:60 split in 2009, according to Wei Jifafu, president of the Chinese carrier.
European ports have been caught off guard by the rebound in cargo from the lows of 2009. Antwerp's box traffic grew 16.2 percent in the first half of 2010 compared with an 18.5 percent year-on-year slump in the same period a year ago.
Rotterdam, which has yet to report first half figures, boosted container traffic by 16 percent in the first quarter, rebounding from a 9.4 percent decline in 2009.
Meanwhile, the German port of Bremerhaven reportedly has been overwhelmed by soaring exports of BMW and Daimler cars because of a shortage of dock workers at BLG Logistics, Europe's largest handler of sea-borne autos, and the late arrival of ocean car carriers.
German car manufacturers exported 395,000 autos in June, 26 percent more than a year ago, and boosted overseas sales in the first half by 44 percent to nearly 2.16 million units.
Exports have been driven by rising demand in the United States and China, partly due to the decline in the value of the euro.
Daimler is trying to re-route some of its exports out of the Belgian port of Zeebrugge from where it already ships Mercedes Benz cars to the UK.
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USDA to Develop Container Reporting Project | |
Agency trying to build trust with shippers, carriers to relieve shortages
July 16, 2010 - The U.S. Department of Agriculture is acting as a go-between with carriers and shippers to see if they can find a solution to container shortages for exported products.
Bruce Blanton, director of transportation services said the department's Agricultural Marketing Service is in the early stages of a pilot program that could lead to an online message board where shippers can locate carriers' empty containers.
Before a pilot can begin, Blanton said AMS is engaged in shuttle diplomacy, carrying ideas between carriers and shippers. The idea is to build trust on both sides before starting face-to-face discussions.
"It's all voluntary. They don't know each other. On the shippers' side, they don't even know who the other shippers are," Blanton said. "We can go back and forth until we can get to something we think is a consensus."
Blanton said that AMS' mission is to facilitate the marketing of agricultural products. Ag shippers have been among the most vocal about recent shortages of containers in the Heartland which is impeding their export efforts. USDA's effort is independent of the Federal Maritime Commission investigation of equipment supply and vessel capacity.
"We're trying to provide transparency that's agreeable to carriers and helpful to shippers, to provide a little more information in the market about where stuff was most recently," Blanton said. "For a lot of people in the business, it's one more piece of the puzzle that allows you to figure out how to set up new business."
There's no deadline for the pilot, but Blanton said that AMS should have results sooner, rather than later.
"I don't think we need to impose artificial deadlines. It's not going to take forever. They'll come to some kind of consensus that's workable, or they won't," Blanton said. "I think there's optimism on all parts. There are carriers genuinely interested in seeing if they can be more transparent in ways that will be helpful to their customers. I think the FMC wants it, and I think the shippers want it."
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