A Penton Publication

pg. 12
The Online Resource for Logistics Leaders
January, 2010 Vol. 2 No. 1 logisticstoday.com

Inside
Supply Chain to the Rescue 2 Seven Supply Chain
Subjects to Monitor in 2010

I n the aftermath of a 7.0 magni-

tude earthquake on the island
nation of Haiti, the logistics com-
Security remains top concern world-
wide.

5 Editorial: Logistics Rises

to the Occasion in Haiti
munity again rose to the occasion. Rescue efforts are performing at the
highest levels despite horrific condi-
Despite horrific conditions and a tions.

nearly decimated infrastructure 6 Backtalk Avoid these common

sayings that lead to more frequent
(Haitis logistics capabilities are returns.
strictly Third World even in the best 8 Global Business Bounces
of situations), the U.S. military re- Back December was a surprisingly
good month.
acted promptly in support of Op-
9 A Business Case for
eration Unified Response, a joint Logistics Outsourcing
Business process outsourcing offers a
operation providing humanitarian route to recovery.
assistance to the country.
11 Flat Is the New Positive
Read our commentary on the lo- for Imports Current trade data
from Zepol.
gistics industrys reaction to the
12 Technology, Integra-
earthquake on page 4. tion and Data Drive Supply
Chain Visibility Visibility provides
companies with timely delivery and
Sailors and Marines aboard the amphibious dock landing ship USS Carter Hall (LSD 50) first-rate performance.
load meals-ready-to-eat (MREs) onto pallets for delivery to earthquake victims. Carter
Hall is supporting Operation Unified Response. 15 Chain Gang The lighter side
(U.S. Navy photo by Mass Communication Specialist 1st Class Hendrick L. Dickson) of logistics.
Seven Supply Chain Subjects to Monitor in 2010
By Bernie Hart
W
hen considering the global trade environment in 2010, there
are a number of potential issues looming that can disrupt
global supply chains, sourcing strategies and the flow of
working capital. If not properly addressed, importers and exporters
may face significant unexpected costs and increased disruptions to
their supply chain. But the news for 2010 isnt all bad. A number of
promising opportunities exist as well.
1. Security Remains Top Concern
Worldwide
The fight against terrorism will remain a priority worldwide. Se-
curity changes and requirements will continue to effect interna-
tional trade for the foreseeable future with an emphasis on ad-
vance data and self-reporting. Numerous programs already have
been established around the world. The United States has been
the most prolific by creating the Automated Commercial Environ-
ment (ACE), the Consumer Product Safety Improvement Act, the
Lacey Act and 100% Cargo Screening.
Other countries or trading blocs have similar programs, such
as the European Unions Authorized Economic Operator (AEO)
program and Canadas Partner in Protection (PIP). Interesting-
ly, China is in the process of implementing the AEO program to
streamline trade with Europe. Additional programs are on the
docket to be launched sometime this year in the United States
and internationally.
Just as in the United States, other nations, such as many EU
member states, have placed the oversight of security within their
Customs agencynot only in policing but also in authorizing pro-
cesses and policy. These security programs recognize that govern-
ment resources cannot do the whole job. The onus will continue
to be placed on the trade community.
2. New Import Challenge #1: Importer
Security Filing
The Importer Security Filing program or 10+2, sponsored by
U.S. Customs and Border Protection (CBP), is scheduled for full
enforcement on January 26, 2010. Importer Security Filing is a
tactical program requiring 10 data elements from the importer
and 2 data elements from the carrier (hence 10+2) be electroni-
logisticstoday.com 2
cally filed 24 hours prior to loading cargo onto a shipping vessel
ultimately bound for the United States.The overarching goal of
the program is to improve the accuracy of cargo descriptions,
target high-risk cargo for examination prior to port departure
from overseas and facilitate the movement of low-risk cargo
through the import clearance process.
To help avoid liquidated damage penalties, which are equal to
the value of the shipment for failure to file or $5,000 per trans-
action for missing or inaccurate data, the trade community has
dedicated an extensive amount of human and financial capital
to implement the processes and procedures necessary to com-
ply with the associated requirements. Import manufacturers
and retailers will require their supply base to do the same and
evidence to this effect will be necessary when being considered
for current and future product procurement.
3. New Import Challenge #2: PREDICT
The U.S. Food and Drug Administration (FDA) is expected to
soon launch the PREDICT (Predictive Risk-Based Evaluation for
Dynamic Import Compliance Targeting) system to oversee im-
ported food safety. The FDAs goal is to focus its import inspec-
tions and sampling, and allow a greater percentage of low risk
products to enter U.S. commerce without further FDA interven-
tionbut that will only occur if the system can find accurate
and complete data in the correct fields.
Firms for which the system does not have historical data,
such as new suppliers or importers, will be given a higher risk
score automatically. Imported shipments with risk scores be-
low a given PREDICT threshold will receive an electronic May
Proceed message. The new system also will randomly select a
number of shipments for examination.
Food importers should expect new rules and regulations as
this system gets tweaked to satisfy U.S. Government Account-
ability Office (GAO) oversight. Also expect delays as customs
brokers and importer agents commit user errors as they be-
come familiar with the system.
4. Promoting Trade and Enforcement
The pending U.S. Customs Facilitation and Trade Enforce-
ment Bill is expected to pass this year, providing CBP with
more resources to promote trade and enforce compliance.
The bill creates new high-level positions, including a Princi-
pal Deputy Commissioner and an Assistant Commissioner of
Trade, devoted exclusively to CBPs customs facilitation and
trade enforcement efforts.
It requires CBP and the U.S. Immigration and Customs
Enforcement Agency (ICE) to coordinate with other federal
agencies to enforce U.S. trade laws at the border and prevent
unsafe or infringing goods from crossing U.S. borders. The leg-
islation also directs CBP to provide additional trade benefits to
participants in voluntary trade compliance and supply chain
security programs in order to facilitate the flow of legitimate
goods across our borders.
Industry officials have generally backed the bill. One po-
tential sticking point is a provision that import data required
under the Import Security Filing program could also be used
for commercial enforcement, such as compliance with appli-
cable tariffs and regulations. The fear is that commercial data,
viewed as proprietary information, could be leaked to trading
partners or international competitors.
5. Sustainability in Focus
With many global economists predicting flat or very slow
growth for several years as major economies recover from se-
vere recessions, large multinational corporations will start to
focus on strategic, longer-term projects to achieve competitive
advantage. Leading companies will emphasize sustainability
logisticstoday.com 3
in making global sourcing and fulfillment decisions.
While sustainability in terms of greenhouse gases will be an
important factor, the concern for global companies will be much
broader and incorporate risk factors such as supplier and cus-
tomer financial risk; volatility in global commodity, energy and
labor costs; regulatory compliance, security and safety risks;
and shifting patterns in a tug-of-war between protectionism and
free trade agreements. Decisions made previously based solely
on cost will be held accountable to a whole new set of additional
questions by executives, board of directors and shareholders.
The conversation and questions will shift from can we? to
should we? and how long can this last?
6. Gauging Risk in Challenging Times
Should tougher economic conditions persist, some exporters
may be more open to pursuing revenue in higher risk environ-
ments than they normally would. Higher risk environments
would include pursuing sales to countries subject to significant
export controls or other trade sanctions, as well as those coun-
tries with significant political risk. Just because there arent le-
gal restrictions on making the export to a given country, you
need to ask if the company SHOULD make the export given the
associated risks. In sunny economic times would a company
pursue such business?
While business with some countries may be prohibited due to
sanctions, when sales are down exporters may look for ways to
conduct business with such countries via foreign subsidiaries
or other intermediaries. The business may be perfectly legal,
but such business still poses risk as manufactured goods may
be diverted to an unauthorized end user or for unauthorized
use. Managing such business compliantly is a much more sig-
nificant challenge and it is easy for companies to get tripped
up by the regulations, even when well intentioned. The same
countries that are a risk for export control reasons also are typi-
cally risky for other reasons such as bribery, which can put an
exporter on the wrong side of compliance with the Foreign Cor-
rupt Practices Act.
As a guideline, you should ask yourself: What is the net
margin for this high risk project or export? A low net margin
can too easily get eaten up by unanticipated risks in dealing
with a particular market. These costs may not be realized in
the initial sale, but could rack up in after-sales support. This
would be in addition to potential fees or penalties associated
with the violation of export controls; the legal fees to get out of
such a mess can also far exceed government imposed fines.
Consult with trade compliance experts before making such a
decision and risking the reputation of your company.
7. Stay Flexible, Stay in Control
Given the dynamic nature of economic conditions around
the world, companies are expected to continue to focus on
supply chains that offer the greatest flexibility. Companies will
continue to manufacture or source in low-cost regions such
as China, India and Eastern Europe, providing them with the
flexibility to increase or decrease production in various regions
in response to market conditions and pricing.
But as companies cast a wider net in low-cost countries, the
need for integrated decision-making among supply chain part-
ners could become more challenging. While some companies
will choose to build in-country expertise themselves, more will
opt to outsource their supply chains in 2010. As a result of in-
creased outsourcing, businesses will need to
increase auditing and compliance programs,
as well as enhance information-sharing and
governing processes that not only manage
the goods movement cycle time but also en-
sure safety, quality and security.
Bernie Hart is an executive director for the logistics
management product suite at J.P.Morgan (www.jpmor-
gan.com), where he is responsible for global sales of risk
management solutions.
logisticstoday.com 4
Logistically Speaking | Dave Blanchard
Logistics Rises to the Occasion in Haiti
W
e write here all the time about specific chal-
lenges logistics and supply chain professionals
come up against in their daily jobs, whether
its rising fuel costs, demand forecasts, raw materi-
als shortages, on-time deliveries, weather delays, or
any number of other situations that require your at-
tention. But how would you react if your local air-
port wasnt just closed down for a day due
to inclement weather, but indefinitely?
How would you deal with inbound and
outbound logistics if the one major
seaport in your supply chain was ut-
terly destroyed? How would you cope
with a catastrophe that took the lives
of more than 100,000 people?
Those are the types of challenges
confronting logistics experts trying to
deliver emergency assistance and sup-
plies to the island nation of Haiti, which
was pummeled by a 7.0 magnitude
earthquake on January 12, and
then hit with a 5.9 aftershock
a week later. The quake
destroyed much of the
countrys logistics in-
frastructure, in par-
ticular roads, sea-
ports and airports,
which made rescue
efforts not only ex-
tremely difficult but
hazardous as well.
Amidst the usual
finger-pointing and
political posturing
about how long it
was taking to deliver aid to Haiti, a clearer picture was
emerging: Although Haiti had been utterly incapaci-
tated, rescue efforts were performing at the highest
levels in circumstances that made even the mere act
of entering a building a risky venture.
The response from the logistics industry has been
nothing short of fabulous, although its almost reached
the point that we take for granted that supply chain
professionals will be front and center whenever a call
for help goes out. The big three package delivery com-
paniesDHL, FedEx and UPSbegan mobilizing their
relief efforts as soon as news of the earthquakes devas-
tation spread worldwide, just as they and hundreds of
other logistics companies large and small had similarly
responded to previous natural disasters, from hurri-
canes to tsunamis to floods to other earthquakes.
In addition, Aidmatrix is coordinating relief efforts,
as to date Project HOPE, ISTATs (International Society
of Transport Aircraft Trading) Airlink program, ALAN
(American Logistics Aid Network), MedShare, Adven-
tist Community Services (ACS), Powered by ACTION,
the State of Florida and the Government of Puerto Ri-
cos Departamento de la Familia have activated their
portals or joined other installations on the Aidmatrix
Network.
Aidmatrix, which has its roots in technology cre-
ated by supply chain management software pioneer
i2 Technology, is an online community of nonprofits,
governments and donors that work together on hu-
manitarian crises. The network links all of these or-
ganizations into a web portal with the goal of helping
to manage the donation, purchasing, tracking, ware-
housing, transportation and distribution of products
and services for use in humanitarian relief. To par-
ticipate in the relief efforts, go to www.aidmatrix.org/
haiti.
logisticstoday.com 5
 Indecision isnt cheap.
Each year approximately 7% of U.S. retail purchases are
returned, according to a joint study conducted by The Retail
Equation and the Loss Prevention Research Council
adding to what Aberdeen Group research estimates is $100
billion in supply chain expense.
My company has had a much closer view of this
phenomenon than most, because we deliver to

Backtalk:
numerous consumers every day. As a result,
weve come to believe that many returns arent
as inevitable as some people think, and that
some are actually quite avoidable.
Avoid These Common All it takes is using your last-mile process
and professionals a little more proactively
Sayings that Lead to and steering clear of the following misguided
statements.

More Frequent Returns Well make it fit.

When it comes to large items, appearances
By Will OShea can be deceiving. Often, a product that looks just
right in the store or on the website can wind up
being too large or small for its intended space, or
too unwieldy to get through a customers door without
sustaining minor damages.
To prevent these mismatchesand the inevitable returns
that go hand-in-hand with themmake sure youre giving
customers an adequate measure of pre-delivery information.
At the very least, this information should include product
dimensions and delivery clearance requirements for the
item purchased. However, for optimal results, it also should
feature a clearly worded request (in checklist or instruction
form) for measurements of a customers doorways, hallways,

logisticstoday.com 6
freight elevators and the actual space where an item is
supposed to go.
Well deliver sometime between 12 and 4.
No one wants to waste a vacation day waiting around for a
delivery, especially one that doesnt arrive on time. However,
thats often what happens in the last-mile sector, where many
companies are notorious for makingand then failing to be
on time forvague delivery appointments. Its a frequent
cause of delivery day buyers remorse.
Although your company may not be able to schedule last-
mile deliveries down to the minute, it can at least tighten
its delivery windows significantlyperhaps to two hours
or lesswith the help of todays superior routing and
optimization tools.
It also can buy customers a little more convenience by having
drivers call them when the truck is less than an hour away from
their particular residence. This is an easy and inexpensive
courtesy now that most drivers have cell phones, and its one
your time-challenged customers will truly appreciate.
Call the help line if you have any issues.
One of the most common reasons cited for customer returns
is some variation of I couldnt get the product to work.
Yet many of these returned products arent defective at all.
Instead, theyre just too complex for a particular buyer to
install or operate without help.
To reduce this phenomenon, consider teaching your
companys delivery teams to perform product set-up and
installation (where permissible by state law) and offering
this as a delivery option. Or have these teams provide
short product familiarization sessions as a standard part of
customers delivery experience. Youd be surprised at what
a difference even five to ten minutes of on-site instruction
can make.
Its just a little dirt
Many customers will return perfectly good products for the
most superficial of reasons. For example, if your company
delivers an item in a box or crate that looks like its been
used for crash testing, some customers will automatically
conclude that the product inside it is equally damaged, even
if its clearly not.
Or, if a product has collected dust or dirt while in transit,
customers may either think theyre getting an SKU thats
already been used or one thats been sitting in someones
warehouse too long.
Before delivering any product, take the time to make it look
like the high-quality new item it is, whether that means wielding
a dust rag, changing out tired-looking packaging or bringing in
a professional whos qualified to make cosmetic repairs.
Give your teams some empowerment at the delivery site,
too, because sometimes a product with minor defects does
inadvertently wind up being delivered.
And when that happens, drivers ability
to offer a damage allowance per your
companys clearly defined parameters
could make the difference between a
product being kept or kicked back.
Will OShea is chief marketing officer of 3PD Inc.
(www.3pd.com), a provider of last-mile logistics and de-
livery services for heavy goods. The company provides
services in nearly 500 cities throughout North America.
logisticstoday.com 7
 Global Business Bounces Back
A ccording to trade data research from Panjiva (http://
panjiva.com), an online resource for supply chain
and sourcing executives, December ended up being
Traditionally, these numbers decline from November
to December (-5% in 2009 and -1% in 2008)
Although the numbers are trending in a positive di-
a surprisingly good month that put a promising end to rection heading into 2010, Josh Green, CEO of Pan-
2009. Specific observations from Panjiva include: jiva, warns that year-over-year comparisons could be
3% increase in the number of global manufacturers somewhat misleading in the coming months, since
shipping to the U.S. market global trade was in a freefall at this time last year and
2% increase in the number of U.S. companies receiv- numbers are still well below where they stood in pre-
ing waterborne shipments from global manufacturers recession times.

Imports on the Rebound

170,000
Number of Global Manufacturers Shipping Products to U.S

160,000

150,000

140,000

130,000

120,000

Source: Panjiva
110,000

100,000
Jun 07 Sep. 07 Dec. 07 Mar. 08 Jun. 08 Sep. 08 Dec. 08 Mar. 09 Jun. 09 Sep. 09 Dec. 09

logisticstoday.com 8
A Business Case for Logistics Outsourcing
Business process outsourcing (BPO) offers a route to recovery.

By Pradeep Chaudhary
Consolidation of operations.

T
he red ink is still wet on the LSPs who operate out of mul-
profit & loss accounts of tiple geographies can benefit by
many logistics service pro- having a shared service center. A
viders (LSPs). While the worst is single point of contact provides
hopefully over for the freight in- more visibility and a high level
dustry, we definitely cannot ex- in productivity increase is seen.
pect a rip-roaring recovery soon.
According to a recent report from Improvement in processes.
Datamonitor, global logistics and Companies that outsource busi-
express markets are forecast to ness processes are often able to
grow at a CAGR of 1.4% over the reengineer those processes and
period 2008-2013 in contrast to capture new efficiencies. Sub-
a growth of 5.9% over the period ject matter experts from the
2005-2008. BPO firm can help the LSP to
While the financial ballast will redesign and standardize the
be certainly required to keep LSPs processes across various divi-
afloat and fight uncertain times, a sions/geographies.
strong focus on streamlining costs
and making operations leaner can Become a supply chain or-
provide rapid improvements to the chestrator. Most shipper-LSP relationships remain
bottom line. Business process outsourcing (BPO) is one such way. transactional versus strategic. By outsourcing the transactional
part, the LSP can concentrate on strategy and delivering service to
Why BPO? the customer. Routine noncore functions are taken care of by their
partners and the LSP can gradually evolve to become a supply chain
While cost reduction is essential to LSPs trying to come out of life- orchestrator.
support, a BPO delivers benefits beyond labor arbitrage:
Out-do your competition. A BPO service provider with a deep do-
Focus on critical operations. An important aspect of BPO is to free main understanding of the logistics market and with its availability
corporate executives of day-to-day routine transactional activities. of a skilled pool of resources 24x7 can provide efficient services at a
While these routine activities are outsourced, the LSP can focus on competitive price. In a BPO engagement, the LSP can access global
mission-critical work. staff, processes, resources and technology as and when required.

logisticstoday.com 9
Moving costs from fixed to variable along with improvising current pro-
cesses can provide the right mix to be one-up on your competitor.
Processes which can be outsourced. A wide range of processes
ranging from simple data entry of a Bill of Lading to complex payroll
processes can be outsourced to a BPO service provider. The accompa-
nying chart shows some of these processes:
Managed services
Managed services or platform BPO is a bundling of technology and
BPO services. The platform BPO service provider hosts the technology
infrastructure and/or the application and combines it with BPO ser-
vices on that platform.
Platform-based BPO offers economies of scale, process standardiza-
tion and improved quality through automation. In addition, the ven-
dor runs, maintains and takes care of upgrades, freeing up resources
for the LSP.
Take for example a process like payroll. An LSP running an anti-
quated legacy application for this has to hire costly IT staff to main-
tain and keep running the software besides the staff working on the
transactional payroll activities. Instead, the entire payroll function
along with the platform (application) to process the data can be out-
sourced to a managed service provider who not only has the latest
technology platform (hosting, managing and maintaining the appli-
cation), but also the skilled workforce to carry out the transactional
activities.
The bundled services of application + BPO are normally charged
by the managed service provider on a per user/per transaction basis.
The shift for the LSP is thus from CAPEX to OPEX with the scalabil-
ity factor built in. Depending on where an organization is in terms
of process, people and technology maturity, savings between 20%
to 40% on operational costs are possible by embracing the platform
paradigm. Processes which can be deployed on a managed services
model are HR, finance and accounts, procurement, and analytics.
If the managed services provider also has a core logistics platform
like a transportation management system (TMS) or a warehouse
management system (WMS), then a mixed model can work. The ser-
vice provider hosts and maintains the application
and also carries out BPO work like load tender-
ing, manifest creation, etc. Other core processes,
such as line haul planning, shipment consolida-
tion, etc., are done on the same platform but at
the LSPs end.
Pradeep Chaudhary works for the transportation vertical of Tata
Consultancy Services (www.tcs.com), an IT services company.
logisticstoday.com 10
Flat Is the New Positive for Imports
D ecember saw increased traffic as a
whole as 2009 closed when com-
pared to 2008; however, this merely
wraps up one of the worst years in re-
cent memory for import traffic. Shipment
levels decreased to 2004 levels, erasing
years of growth.
For the year, the Wood/Pulp and Steel
market baskets were both off more than
25% of their 2008 totals. The last week
of the year was no better, as they both
decreased 43% and 38%, respectively,
when compared to the same week in
2008.
On the positive side, two of the larg-
er categories, Food and Beverage and
Chemical, both were flat for the year and NOTES:
up 24% and 42% for the week. Flat was the new positive in US Import Market Basket Data is provided by Zepol Corporation. To view the
methods used to calculate each industrys Market Basket and see what they include,
2009, but import growth seems to be just around the corner as
visit http://www.zepol.com/Contact/Partners/Logistics-Today-Market-Baskets.aspx.
total shipments for December was up nearly 2% when com-
pared to 2008.

logisticstoday.com 11
Technology, Integration and Data Drive Supply Chain Visibility
Supply chain visibility provides companies with timely delivery and first-rate performance to remain competitive
by Jack Rabren
C
onsumer demand and the Internet have created a technology-sav-
vy buyer, with high expectations and inflexible demands on product
availability. And as a result, the supply chain has become much
more complex than it was 15 years ago.
Retailers and manufacturers are struggling to adjust to this latest norm
because retail and demand fulfillment models are evolving faster than
they can react. This evolution has spurred a change in how logistics-
related processes are identified and implemented. Combined with a
number of new distribution channels, this shifting landscape has
injected a unique complexity into the supply chain.
In an attempt to stay competitive and reduce logistical inefficien-
cies, retailers and manufacturers are searching for new methods to
enhance supply chain visibility. The emergence of innovative tech-
nology is allowing companies to improve visibility.
The business case for exceptional supply chain visibility is clear: It
provides companies with timely delivery and first-rate performance
to remain competitive. All organizations striving to improve supply
chain visibility need to focus on technology, integration and data:
Sophistication of Technology
Leveraging the right technology is essen-
tial. The rules, flexibility and exceptions as-
sociated with supply chain information have
created large volumes of data for companies
to evaluate. The right technology can ana-
lyze the data and produce valuable business
intelligence, which can ultimately lead to
better, more informed supply chain deci-
sions.
Integration
Consisting of suppliers, shippers, third-party logistics providers,
retailers and the consumer, the supply chain continues to expand.
The ability to use technology to integrate disparate companies is a
vital factor in ensuring all parties can properly react to sup-
ply chain disruptions and implement a strategy to over-
come the problems.
Quality/Speed of Data
The quality of data used to make supply chain
decisions is critical. Leveraging integrated technol-
ogies, data is collected faster, allowing for a proac-
tive analysis of the data to ensure a more efficient
and streamlined supply chain. Once distributed,
this information allows buyers and suppliers to
reassess their time to market and make strategic
decisions to maximize revenue.
While there are a slew of supply chain visibility
best practices, they become futile if companies dont
have the technology to gather real-time information from
the supply chain. A thorough evaluation of operational
goals, budget considerations and other relevant factors is
critical in determining the most effective approach to regain
supply chain visibility for the new consumer.
Jack Rabren is solutions architect of Inovis (www.
inovis.com), a provider of B2B integration solutions
and services.
logisticstoday.com 12
New Products
Head
Transportation Management Solution
Oracle Transportation Management 6.1 offers expanded capabilities in five primary areas:
extensions to sourcing, planning, execution, financial settlement and visibility across all
modes of transportation. It also includes Oracle Global Trade Management, a new prod-
uct offering delivered within the Oracle Transportation Management platform, which is
designed to support the import-export compliance needs of companies engaged in global
trade. The solution delivers a new mobile communication platform designed to improve
shipment visibility by allowing fleet dispatchers to capture data-rich information about ship-
ments and communicate with drivers in real-time. The mobile communication platform also
enables fleet dispatchers to drive process efficiencies by automating shipment monitoring
to determine whether an event requires additional action or support.
www.oracle.com
Cross-Border Transaction Solution
End-Use Manager from Management Dynamics is an on-demand solution that gener-
ates end-use surveys for parties involved in any cross-border transaction. It allows a
trade compliance team to comprehensively survey and collect end-use statements from
customers, suppliers and employees, establishing a standardized process for managing
and ensuring compliance with international trade regulations. It can be flexibly deployed
as a Web-based portal across any global enterprise and configured to meet the specific
requirements of different business units. Surveys can be developed by business unit,
transaction type, origin country and destination country, and populated with a pre-con-
figured list of questions.In addition, all parties to the transaction are screened against
the major sanctioned party lists.
www.ManagementDynamics.com

LTL Rating Engine Cross-Docking and Updates to LTL Base Rate

Horizon Logistics, the third-party logistics management
subsidiary of Horizon Lines, Inc., has introduced a less-than-
truckload (LTL) shipment rating engine for domestic U.S. ship-
pers, adding to an existing suite of web-based logistics tools.
The new LTL rating engine is designed to ensure price con-
sistency, effective carrier benchmarking and competitive pric-
ing by eliminating the cost adjustments most carriers make
to compensate for lane imbalances. Once rates are provided,
shippers can use the system to automate carrier selection, bill
of lading generation, load tendering and shipment tracking.
www.horizon-logistics.com
Reconsolidation
Prophesy Transportation Solutions Inc., an Accellos com-
pany, has added cross-docking and reconsolidation func-
tionality to its DispatchSeries trucking software. The new
features allow shipments to be independently reallocated to
new loads once enroute, enabling transportation companies
to meet complex logistics objectives and customer require-
ments. Users will now be able to: dynamically route ship-
ments through one or more terminal locations; define any
location as eligible for cross-docking; define default pickup
and drop terminals for a customer; display activity to and
from any terminal location; and search and view all loads
through which a given shipment is cross-docked.
www.mile.com
System
SMC, a provider of transportation data services, technol-
ogy tools and educational forums, plans to update the data
within its CzarLite family of products, effective Feb. 1, 2010.
CzarLite is an LTL base rate and benchmarking system for
shipments within and between the United States, Canada
and Mexico. CzarLites aggregated model offers a market-
based price list derived from studies of LTL pricing on an in-
dustry wide basis. The February 2010 CzarLite product update
will reflect the overall economic impact of rising expenses
to transport freight, as well as recent changes within the
U.S. Postal Service ZIP code system and the Canadian and
Mexican postal code systems. Consistent with prior updates,
CzarLite base rate adjustments do not include the impact of
fuel prices, which are in a constant state of flux and are ad-
dressed separately and individually by the carriers.
www.smc3.com

logisticstoday.com 13
Reader Survey

What kind of service

are you getting from
the railroads these
days?
Better than it was this time last year

13%
Worse than it was a year ago

17%
No noticeable difference in the past year

15%
We dont use the railroads
55%
Source: LT December 2009 Quick Poll

logisticstoday.com 14
Chain Gang by Jerry King

Logistics Today (ISSN 1547-1438) is a monthly digital publication from Penton Media,
Inc., 9800 Metcalf Avenue, Overland Park, KS 66212-2216. 2010 Penton Media Inc.

Editorial Director/Associate Publisher ..... David Blanchard

Contributing Editor....................................... Mary Aichlmayr

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Saskatoon? Never heard of it. Milk run? Sure, we can do that. Whats a milk run?
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15