Hot Topics in Warehousing

Transcription

January/February 2014
$8.00
Hot Topics
in Warehousing
MM&D sizzles in Vancouver
Publication mail agreement #40069240.
Inside
Page 14
3 Taking Stock
4 Supply Chain Scan
18 3PL Capability Guide
25 DataCapture
26 MODEX Preview
28Forktrucks
29Equipment Focus: Dock Equipment
30Racking
32 Learning Curve
33 Legal Link
34 Materials Handling
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Hot Topics in
Warehousing
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www.mmdonline.com• |• January/February
2014
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01MMD-Editorial.indd 3
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Cover photo by Dorothy Jakovina
January/February 2014  Volume 59  Number 01
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14-02-11 5:46 PM
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SUPPLY CHAIN SCAN
B-DAY
AIR CARGO
GREEN FREIGHTER
Superior Tire achieves
50 years, p 9
Moderate global growth in 2013, p 8
Algoma Central christens clean Great Lakes ship p 9
NAFTA at 20
Has it paid off?
By Christian Sivière
I
t’s been twenty years since the North-America
Free Trade Agreement (NAFTA) came into
effect and it is timely to ask ourselves the question:
Was it good for Canada?
Let’s first take a step back: the negotiations that led
to this historic agreement between Canada, the US
and Mexico started in 1986, and NAFTA was signed
six years later, on December 17th, 1992 in Austin,
Texas by presidents George Bush and Carlos Salina
and prime minister Brian Mulroney. Following the
necessary legislative ratifications in our three countries, it came into force on January 1st, 1994.
It brought about deep changes to all facets of our
economy, not just for the automobile or textile
industries or for agriculture, but was it worthwhile?
The objective was to facilitate trade and investment
and in spite of temporary and well-publicized setbacks, such as the thorny softwood lumber issue,
new security requirements following the tragic
events of September 11, 2001 or the ‘Buy American’
policy, it appears to have been fulfilled.
Regarding the ‘Buy American’ policy, it is worth
noting that this Act was not first signed by
President Obama but rather by President Hoover in 1933. Such protectionism
is not new; the US has previously gone through similar periods of relative
isolation from the rest of the world.
Looking at our international trade statistics, we see our exports to the US have
grown a lot more than our imports from the US and accordingly, our trade surplus
has increased steadily. As shown on the graph, as far as exchanges of goods are
concerned, Canada has been a clear winner. Therefore, in spite of the ongoing
challenges, our exporters should continue to develop their sales to the US.
Another important benefit of NAFTA is that opening our market to Mexican
and American manufacturers forced Canadian industries to become more
competitive. This, in
Imports and exports between Canada
a way, prepared us for
and the US from 1988 to 2011
the fierce competition
brought about by globalization. And our
exporters are in a better position to diversify their markets, for
example by getting
ready to take advantage of the opportunities created by our
Comprehensive
Source: Statistics Canada
Economic
Trade
Agreement with the
European Union. Although this Trade Agreement will likely not come into
effect until 2015, now is the time to prepare for it.
Christian Siviere is a lecturer for the Canadian International Freight
Forwarders Association. He can be reached at [email protected].
Air cargo industry faces leadership crisis
An air cargo industry task force says industry-specific
higher-level skills training is lacking. The group is
calling on the industry to step up and create new training programs, possibly leading to a certification track.
The task force, led by The International Air Cargo
Association (TIACA) with participation by the
International Air Transport Association (IATA), the
International Civil Aviation Organization (ICAO) and
the International Federation of Freight Forwarder
Associations (FIATA) has published the results of a
two-year research project. The research project focused
on identifying educational needs for the next generation
of managers for the worldwide air cargo industry.
4
01MMD-News.indd 4
The task force concludes that managers not only must possess basic skills and
detailed operational knowledge, but also “higher skills”, which include leadership and team-building, as well as market and financial analysis techniques.
While numerous training programs are available to teach fundamentals, the
availability of air cargo-focused programs that teach these higher-level skills
is limited.
The researchers agreed the industry as a whole must address this deficiency to
ensure it maintains its long history of innovation, quality service provision and
financial performance. The potential for the creation of a certificate, and preferably an accredited program may assist in this goal. As part of its effort, the task
force compiled a comprehensive educational matrix identifying existing courses
and areas of deficiency.
Continued on page 6
MM&D | January/February 2014
14-02-11 5:44 PM
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14-02-12 10:33 AM
SUPPLY CHAIN SCAN
GLOBAL FOCUS
Saudi port sees first export shipment
The first outbound shipment of 54 containers left from King Abdullah Port
(KAP) at King Abdullah Economic City (KAEC) in Rabigh, Saudi Arabia in
January. Rabigh is on
the Red Sea, about
120km north of Jeddah.
Almajdouie Logistics,
together with its sister
company RPL (Rabigh
Petrochemical Logistics
Company LLC), handled the first export
shipment of petrochemical products for
Rabigh Refining and Petrochemical Company (PetroRabigh).
The shipment represents the first export operation of the King Abdullah
port. The cargo, 54 containers of polymer material, was shipped on board a
carrier heading to Singapore.
King Abdullah Port (KAP) is Saudi Arabia’s newest port facility and the first
privately owned and funded port in the country. The port is strategically
located to serve the East-West trans-shipment of cargo as well as domestic
volumes. Its capacity on completion will be about be 20 million TEUs. It will
have more than 30 deep-water berths.
Menlo opens new facility in Malaysia
Menlo Logistics, the global logistics subsidiary of Con-way Inc, has opened
the new Shah Alam Section 15 warehouse in Selangor, Malaysia. This new
facility will boast a footprint of 101,231sqf of storage space and will employ
60 people locally. It is configured as a multi-user warehouse, providing inventory storage and management, local and regional distribution and additional
value-added services. The facility has 10 loading bays and features enhanced
security systems including closed-circuit monitoring, sensor alarms, cardcontrol access, and 24-hour, on-site security guards.
Multinational engineering and electronics company, Bosch, will occupy a
section of the warehouse, with the remaining space earmarked for new business. In this new facility, Menlo continues to provide services such as inbound
receipt, inspection and storage of products, inventory management and
order processing, order fulfillment for outbound orders and value-added
services such as kitting, packing, and returns management.
CargoWise takes Latin American partner
Logistics providers throughout Latin America can now buy CargoWise’s
enterprise-class supply chain software as a result of a new partnership with
Panama-based logistics consultants, DPS Logistics. In joining CargoWise as
a WiseBusiness Partner, DPS Logistics will be able to offer the single-platform
system to businesses across the region.
As an authorized reseller, DPS Logistics will assist CargoWise¹s expansion
into Latin America by providing full sales, consultation, implementation and
support services to local customers. Latin American supply chain providers
will now benefit from service delivered with the local expertise of a Spanishspeaking specialist with a deep understanding of the local marketplace and
an in-depth knowledge of the CargoWise product.
6
01MMD-News.indd 6
Continued from page 4
The report stresses that without access to such programs, the air cargo industry faces the additional
difficulty of attracting and equipping qualified talent
to successfully lead the industry through future challenges. Another consequent risk without such an
offering is the loss of rising managers to other sectors
of the logistics industry or to other industries completely as workforce dynamics become more fluid.
Both situations would put the air cargo industry at
a competitive leadership disadvantage.
CSCMP recognizes
new leaders
The Council of Supply Chain Management
Professionals (CSCMP) announced the selection
of Keiko Arai, leadership development program
participant at Textron, Florian Schick, consultant at McKinsey & Company, and Amanda
Tolhurst, senior manager, internal materials
operations at Whirlpool Corporation as the
recipients of its new Emerging Leader Award.
The three were recognized during the
Opening Keynote Session at CSCMP’s Annual
Global Conference, in October last year.
“The future of our industry lies with today’s
young professionals who will be tomorrow’s leaders,” said Rick Blasgen, CSCMP president and
chief executive officer. “It is important that we
recognize the contributions of emerging talent
and the positive impact they have on our profession today and will continue to have in the future.”
Tolhurst was featured in MM&D’s cover story
in April 2008 as one of the prime movers behind
Whirlpool’s successful DC integration with its
acquisition, Maytag. She has taken an active
leadership role in the Canadian supply chain
sector, chairing the 2011 & 2012 SCL National
Conferences, and also serving on MM&D’s editorial board. She has an MBA from York
University’s Shulich School of Business.
The CSCMP Emerging Leader Award was
created to recognize outstanding supply chain
management and logistics professionals, age 30
and under, for their contributions to the industry, and the positive effect they will have on the
discipline in the future. Nominees were evaluated on three criteria: recognition as up-andcoming leaders, contributions to the supply
chain management (SCM) profession, and their
potential future impact on the practice of SCM.
14-02-11 5:44 PM
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14-02-12 10:33 AM
SUPPLY CHAIN SCAN
Moderate growth for air cargo in 2013
By MM&D Staff
The International Air Transport Association (IATA)
released figures showing a 1.4 percent expansion of
global freight tonne kilometers (FTKs) in 2013 when
compared to 2012. Cargo markets made very slow
progress during the first half of the year. Acceleration
in the trend took root in the latter half of 2013, placing
air freight volumes on a steadily increasing trajectory.
Capacity grew faster than demand at 2.6 percent and
load factors were weak at 45.3 percent.
Regional performance varied. Middle Eastern and
Latin American carriers reported the strongest growth
in demand (12.8 percent and 2.4 percent respectively).
Asia-Pacific carriers, which have nearly 40 percent
of the global air freight market, saw cargo activities
shrink by one percent over the year.
“2013 was a tough year for cargo. While we saw
some improvement in demand from the second half
of the year, we can still expect that 2014 will be a
challenging year. World trade continues to expand
more rapidly than demand for air cargo. Trade itself is suffering from increasing
protectionist measures by governments. And the relative good fortunes of passenger markets compared to cargo make it difficult for airlines to match capacity
to demand,” said Tony Tyler, IATA’s director general and CEO.
South Fraser ring
road opens
Unload Containers with
Destuff IT
™
Unloaders
The $1.26 billion South Fraser Perimeter Road is open in
Delta, British Columbia. The 40-kilometre, four-lane road,
will improve safety for drivers, while enhancing the efficient
movement of goods to export destinations in the AsiaPacific region.
The road extends from the existing Highway 17/Deltaport
Way interchange, through the municipalities of Delta and
Surrey, along the south bank of the Fraser River, and connects to all five major Fraser River crossings. It provides a
continuous connection to port facilities, rail yards and
industrial areas in Metro Vancouver. It will contribute to
local road safety by reducing the number of points where
road and railway tracks intersect.
The Government of Canada’s contribution of up to $365
million for this project came from the Asia-Pacific Gateway
and Corridor Transportation Infrastructure Fund.
Boost Efficiency
Increase Throughput
Reduce Injuries
Booth #9710
800-263-9823
destuffit.com
Photo: HyperbolicSheet, Wikimedia Commons
8
01MMD-News.indd 8
14-02-11 5:44 PM
SUPPLY CHAIN SCAN
BENCHMARKS
Superior Tire & Rubber Corp of Warren, Pennsylvania is celebrating its 50th anniversary. The company manufactures specialty
industrial tires for the material handling, road construction, floor
maintenance, agriculture and infrastructure markets. It also serves
the aftermarket with material handling and agricultural specialty
tires through distribution locations in Chicago and Los Angeles.
Superior Tire & Rubber Corp was founded as a tire retailer,
re-capper, and molder of solid industrial rubber tires. In 1974,
Henri LeMeur Sr purchased the company and refocused the
company’s strategy to manufacture specialty industrial tires.
An early success was tires for floor scrubbers and sweepers
where wet traction, chemical resistance, and high carrying
capability necessitated specialty compounds. Today, Superior
Tire & Rubber Corp has two manufacturing facilities, a technical
centre, and a third manufacturing facility in the planning stages.
All this supports a new product development effort that generates 200 new products per year incorporating high performance
polyurethane and rubber compounds, some of which are based
on new patents.
Material Handling
STORAGE &
RETRIEVAL
Solutions
DONE DEALS
Avataa Explorations & Logistics Inc and McKeil Marine
Limited have combined to form Avataa McKeil Marine
Services, a new enterprise providing transportation and logistics
services in the Nunavik Region. Combining two family-owned
companies brings a sense of personalized service delivery and
heightened focus on customers. Avataa McKeil Marine Services
was officially launched in Montreal last November.
Scan to
view the Pan
Carousel video.
Descartes made two acquisitions recently, Compudata, a
provider of B2B supply chain integration and e-invoicing solutions in Switzerland, and Impatex Freight Software Limited,
a provider of electronic Customs filing and freight forwarding
solutions in the UK. Compudata’s network (B2BNet) serves a
diverse community of trading partners, helping them connect,
collaborate and seamlessly exchange electronic data. Impatex
brings more than 200 freight forwarder customers to Descartes’s
Global Logistic Network, with the majority of these in the UK.
Maximize the efficiency of your plant or
warehouse space with the smallest cubed
footage possible. Intelligent vertical storage
maximizes productivity with optimized
retrieval times, increased security and
improved operator safety. Store smart, store
DHL will support Cirque du Soleil as Official Logistics Partner.
DHL will be integrated into Cirque du Soleil’s supply chain activities, with its DHL Global Trade Fairs & Events team, a subsidiary
of DHL Global Forwarding, Freight, supporting the event logistics
of Cirque du Soleil Big Top and Arena tours worldwide. DHL will
also provide global logistics support for the corporate headquarters of Cirque du Soleil in Montreal, Quebec.
vertical for much less than you think.
800.210.0141 • www.storevertical.com
Investment firm KKR has agreed to provide $250 million in
financing to Torq Energy Logistics, Ltd’s capital program and
acquisition strategy. Torq is a private company, providing transportation of crude oil by rail car in Western Canada.
www.mmdonline.com | January/February 2014
01MMD-News.indd 9
9
14-02-11 5:44 PM
Photo: Roy Timm
SUPPLY CHAIN SCAN
Canada’s greenest bulk freighter ready to cruise
Algoma Central’s new vessel emits less sulphur dioxide than previous generation
By Dan Ilika
A
Canadian shipping firm is looking to make its
national competitors green with envy after taking
delivery of the first in a line of eco-friendly freighters.
Showcased at the Port of Toronto, Algoma Central
Corp’s new MV Algoma Equinox dry-bulk carrier
promises to be the greenest—and one of the largest—in
the country when it takes to the St Lawrence Seaway
to deliver iron ore and grain in Canada and the US.
Part of a $300-million fleet renewal by St Catharines,
Ontario-based Algoma Central, the Chinese-built
Algoma Equinox gearless bulker is the first of eight
Equinox Class vessels manufactured by Nantong Mingde
Heavy Industry Co, Ltd to operate in and around the
Great Lakes and St Lawrence River, which help make
up the more than 3,700-km St Lawrence Seaway.
“These state-of-the-art vessels represent the next
generation of Great Lakes bulk carriers and are consistent with Algoma (Central’s) commitment to environmental sustainability,” said Greg Wight, president
and CEO of Algoma Central.
What makes the vessels so environmentally friendly
is their closed-loop exhaust scrubbing system, which
eliminates 97 percent of all sulphur dioxide emissions
before they reach the atmosphere.
A testament to modern engineering, the Algoma
Equinox and its sister ships deliver class-leading fuel
efficiency and emissions output, putting Algoma
Central ahead of the curve as new emissions standards
are phased in over the next decade.
The massive ship—740ft long, or about the height
of Toronto’s 56-floor TD Bank Tower—has 14 percent
more cargo capacity in its holds and moves 17 percent
10
01MMD-News.indd 10
faster than traditional domestic dry-bulk freighters, but burns less fuel and
produces less emissions than its predecessors.
How much less?
According to Algoma Central, the Equinox Class of vessels provide fuel savings
in the neighborhood of 26 percent compared to traditional carriers on Canada’s
waters, or 45 percent less per tonne-kilometre of cargo than Algoma’s current
vessel average.
That improved efficiency is thanks to the ship’s five-cylinder engine and exhaustscrubbing system that uses distilled water to isolate and remove harmful sulphur
dioxide emissions from the exhaust.
On a tour of the ship, Captain Jim Pound, vice-president of operations with Algoma
Central, spoke enthusiastically about the emissions system and what it means for
the company—and the environment.
According to Pound, the scrubber works by injecting a spray of distilled water
and caustic soda into the exhaust gases, which neutralizes sulphur dioxides. That
water, which contains the sulphur dioxide molecules, is then extracted and brought
into a holding tank.
“What we (then) have left going out of the stack is zero emissions when it comes
to sulphur dioxide,” Pound said.
According to Pound, the water used in the exhaust-scrubbing spray is distilled
on board, and the sulphur dioxide is held in the bowels of the ship before being
disposed of.
“We think probably about once or twice a year we’ll bring a contractor on board
and we’ll pump it out and have it disposed of in an environmentally safe way,”
he said.
The system was developed by Wärtsilä Corp, a power solutions provider, which
also built the engine that powers the Algoma Equinox.
Part of the motivation behind building the green fleet of carriers, according to
Pound, was emissions control area (ECA) regulations being phased in on the
Great Lakes and other waterways in Canada that will eliminate the burning of
sulphur dioxide in marine operations.
“By 2020, we are not going to be allowed to put sulphur dioxide into the atmosphere.
Continued on page 12
14-02-11 5:44 PM
© 2014 C.H. Robinson Worldwide, Inc. All Rights Reserved. www.chrobinson.com
Scan this code to download a FREE
copy of our 10 Tips to Prepare for a
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Capacity as a competitive advantage.
What do you get with North America’s most powerful truckload
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CHRobinson.indd 1
14-02-12 10:34 AM
Photo: Roy Timm
SUPPLY CHAIN SCAN
what was required in a next-generation freighter.
Vessel design firm Delta Marine was consulted on
the designs that would eventually become the Equinox
Prepared by the REP.
Class vessels.
HR ADWORKS
DESIGNER
Service Team“The
mandate of this team was to develop a new (vessel
PROOFED
series)
which not only would be the most efficient, but
also the
most environmentally advanced to operate on
ESTIMATED
the Great
SENTLakes (and) St. Lawrence,” Wight said.
After extensive computer modelling and six physical
pricesthe
exclude
modelAlltests,
teamtaxes
decided on a vessel design and
PROOF & ESTIMATE
was
ready
to
begin
courting
shipyards around the
et
Media
Section
Insertion Date
Ad Size
Price
world for quotes.
137
Canadian Shipper
CAREERS
Jan 1, 2014
4.5 x 4.87
“Based on the model tests, it was clear the Equinox
1/3 PAGE SQ
Class design team had achieved (its) goal,” Wight said.
137
Materials Management
CAREERS
Feb 24, 2014
4.5 x 4.87
& Distribution
1/3 PAGE SQ “This design balanced power and speed with cargoContinued from page 10
carrying capability for optimal performance and environmental efficiency.”
137
Purchasing B2B
CAREERS
Feb 24, 2014
4.5 x 4.87
With this we’ll be able to maximize our fleet average
1/3 PAGE SQ
and get us to the 2020 standard today,” Pound said.
Conditional contracts
“We didn’t want to wait—we wanted to be the most In September 2010 Algoma Central signed conditional contracts with Nantong
TOTAL
PRICE
for the
construction of the vessels.
environmentally friendly operation on the Great Lakes.” Mingde shipyards
Algoma Central management knew it wanted top
“The key condition that needed to be resolved before these contracts could
dry-bulk freight technology back in 2009, when the become effective was the removal of the 25 percent import duty that would be
company assembled an internal design team to outline applicable on these vessels,” Wight said.
“Fortunately, less than three weeks after the
shipbuilding contracts were signed, (federal
Finance) Minister (Jim) Flaherty came to St
Catharines and announced the removal of
the import duty.”
Jump ahead to September 2013, and a group
of about 20 officers and crew from Algoma
Central headed to the Nantong Mingde shipyards in eastern China to begin the nearly
MacDon sets the bar for harvesting technologies, innovations, and
15,000-nautical mile journey back to Canada.
manufacturing. As a family owned company, we are proud of the relationships
In 61 days the Algoma Equinox arrived in
formed with our employees, many of whom have been with us for more than three
Port-Cartier, Quebec, where it got straight
decades. We are committed to providing a safe and challenging workplace, allowing
to work, picking up its first cargo—29,000
our employees to achieve their full potential. We offer a full range of Company
tonnes of iron ore from ArcelorMittal Mining
funded benefits including medical, dental, life insurance, vision, E.A.P. and pension.
Canada for delivery to ArcelorMittal Dofasco
in Hamilton, Ontario.
VICE PRESIDENT OF GLOBAL PARTS OPERATIONS – WINNIPEG, MB
It then embarked on a second cargo-laden
MacDon is looking for a Vice President of Global Parts Operations. You will have a
voyage, traveling northwest through the Great
minimum of 10 years of experience leading an aftermarket agricultural parts entity
Lakes to Superior, Wisconsin, to pick up another
with Profit and Loss responsibility. You will have related post-secondary education
load of iron ore for delivery to Quebec City.
in Business and Certification in Inventory Management (APICS would be an asset).
Grain products will also make up a great
The Vice President of Global Parts Operations will be responsible for all of MacDon’s
service parts operations including North American and International sales, storage,
deal of the cargo carried in the ship’s five
inventory levels, and distribution channels. The successful candidate will have full
massive holds.
budget responsibility for his/her areas of responsibility and will be tasked with
“The main trade of the Algoma Equinox
identifying opportunities for expansion. This position will require regular domestic
will be moving grain products from Thunder
and some international travel.
Bay, (Ontario), and Duluth, (Minnesota), to
transfer elevators on the St Lawrence River,
For more information or to apply visit our website at www.macdon.com/careers
and then returning upbound with iron ore
or email Heather Horton at [email protected].
from Port-Cartier and Sept-Iles, (Quebec),
mainly to ArcelorMittal Dofasco’s steel mill
Come help us feed the world.
in Hamilton,” Wight said.
12
01MMD-News.indd 12
14-02-11 5:45 PM
SUPPLY CHAIN SCAN
According to Wight, the vessel should carry an estimated 500,000 tonnes of
grain and 500,000 tonnes of iron ore in a normal season, or make roughly 32
trips along the Seaway each year. The ship will carry 20 million tonnes of iron
ore to ArcelorMittal Dofasco’s Hamilton plant over its lifespan.
The remaining seven sister vessels that make up the Equinox Class will be
delivered throughout 2014 and 2015.
Algoma Central will own six of the vessels—two
gearless bulkers including the Algoma Equinox, and
four-self-unloading freighters—while the remaining
two gearless ships will be owned by CWB Inc, formerly
the Canadian Wheat Board. The CWB-owned vessels
will be operated by Algoma Central.
MM&D
MOVERS + SHAKERS
Intelligrated has hired Chris Lingamfelter as vice president,
integrated system sales and strategy.
With more than 20 years of experience in the supply chain
software and material handling industries, Lingamfelter will work
closely with the executive team to oversee integrated system sales
and prioritize new technology and capability
investments. He will report directly to Jim
McCarthy, president and chief operating
officer, Intelligrated.
Before joining Intelligrated, Lingamfelter
held product and sales management roles for
multinational supply chain and logistics firms,
helping customers automate complex distribution operations. He holds a bachelor’s Chris Lingamfelter
degree in management.
FORTE, a distribution centre design/build and software technology firm, promoted Michael Howes to vice-president, software
engineering and services. Howes has more than
20 years of experience in IT and has been with
FORTE for eight years. Howes was instrumental
in leading development of core FORTE software
offerings and technology platforms that enable
real-time interaction between a variety of highly
complex systems.
Before joining FORTE, Howes was a manager
of software development for R+L Carriers, Michael Howes
where he led a team of 15 developers and
software architects. He has also spent time at US Bank, the Air
Force Institute of Technology and TeleSuite. He studied computer
science at Wright State University.
Jean-Luc Bédard, vice-president, operations, and harbour
master, retired from the Port of Montreal on January 24. After
a career spanning more than 23 years, Bédard leaves a significant legacy at the port through his numerous accomplishments.
His passion for marine commerce and operational performance
has been outstanding.
Daniel Dagenais, currently director of operations, has been
promoted to vice-president of operations, effective January
27. Dagenais has more than seven years of experience at the
Montreal Port Authority and brings extensive experience in
the management of land and marine operations.
Christian Demers is now director of operations, and harbour
master. Demers has more than 20 years of experience in the
maritime domain, largely in management positions.
Deborah Wilson is the new vice-president communications
and public affairs at the Port of Toronto. Wilson will be responsible for planning, developing and implementing communication strategies and public affairs programs. She joins the Toronto
Port Authority from Astral Media where she was vice-president
of communications for the past nine years.
Ainsley McWhirter is Trailer Wizards Ltd new sales representative for their Winnipeg team. Based out of the Winnipeg office,
McWhirter will be responsible for assisting customers with all
aspects of trailer rentals, trailer leasing, and trailer sales in
Manitoba. Her official start date with Trailer Wizards was January
13, 2014. She brings over eight years of sales experience, including roles at Sameday Worldwide and DHL.
01MMD-News.indd 13
13
14-02-11 5:45 PM
Hot topics
in warehousing
MM&D heats things up at Cargo Logistics Canada conference
By Emily Atkins
Photos by Dorothy Jakovina
M
Aaron Lalvani talked about
the importance of
M&D magazine presented the results of its Hot
Topics in Warehousing research survey to a
sold-out crowd at the Cargo Logistics Canada conference in Vancouver, BC on January 29.
Editor and publisher Emily Atkins was joined on stage
by Aaron Lalvani of Lalvani Group consulting, Ian
Mackenzie, former director of logistics for Best Buy
Canada, and Jason Sonnbichler, vice-president of business development with Ryder Supply Chain Solutions.
Together they discussed the issues occupying DC managers, along with their causes and potential solutions.
leadership.
The research
The Hot Topics survey was conducted in late 2013 by
MM&D. We asked readers to tell us the top three issues—
ranked in order of importance—they are facing in 2014
in managing their distribution centres and warehouses.
Space constraints and labour issues were very nearly
tied, at 17 and 16 percent of responses, respectively.
When we asked what solutions they’d like to apply
to these issues, the responses, in order of popularity
were: technology, planning, reorganization, staffing,
training and acquisition of specific equipment.
By contrast, when we asked what solutions they would
apply with an unlimited budget to play with, respondents switched things up. In this case, new equipment ranked first, followed by more space,
reorganization and investment in IT.
We also asked whether improving efficiency or controlling costs was more
important. As is shown in the pie chart
on page 17, improving efficiency is
more important by far, with 82 percent
selecting that option.
14
01MMD-HotTopics.indd 14
A few respondents pointed out that once you improve
efficiency, cost control is a natural outcome.
We asked what kind of benchmarks are being used
to measure success. A whopping 32 percent said their
organization does not use any. For those who do measure against a benchmark, the responses included (in
order from most identified to least): Accuracy (on time
and correct orders), customer satisfaction and service,
inventory turns, profit, and unspecified KPIs.
The panel
Faced with these stats and responses from
the survey the panelists each offered a different perspective in their remarks.
Aaron Lalvani looked at three of the
survey result rankings: Costs which were
ranked third, productivity, ranked
eighth, and management/leadership,
which ranked tenth. He commented that
without leadership, cost savings and
productivity improvements would be
diminished. It takes the entire management team to develop solutions and collaborate with subordinates to execute the
business strategy.
14-02-12 12:52 PM
Lalvani challenged the audience to consider that warehouse costs are largely influenced by up-stream decisions
made by sales, finance, production planning, procurement, etc. By the time the finished goods or WIP (work
in progress) hits the warehouse, costs of working capital,
waste (scrap), labour, procurement and all other Cost
of Sales inputs have been determined. CEOs and management teams are continually seeking cost savings
measures to impact their P&L responsibilities. However,
there needs to be a strategic approach for the organization to impact costs to drive the bottom line and that is
by focusing on the middle line, the cost of goods sold.
When looking at the ranking of the issues in the
survey, the number 10 item (management/leadership)
should be a top priority, Lalvani said. Without leadership setting the mission and monitoring the deliverables,
cost containment
What
are your
top three
issues?
Issue
Space constraints
Personnel/labour
Cost control
Equipment/tech/software
Service levels/client demands
Transportation/logistics issues
Inventory issues
Productivity/efficiency
Transition/adaptation
Safety
Sales issues
Management issues
Regulatory issues
Ranking
1
2
3
4
5
6
7
8
8
9
9
10
10
and productivity cannot be fully achieved. Warehouse
operations have their hands tied in relations to controlling what is put in their space. Those decisions are made
in many cases unilaterally, without the input of warehouse operations management. That said, they do need
to optimize their operations but rarely can continuous
improvement from one department impact the bottom
line. It needs to be across the entire organization.
Jason Sonnbichler presented Lean as a solution
to the issues being confronted in warehouses
across Canada. He focused on labour, since it
was the second ranked issue in the study and
is also typically one of the largest expenses
in DC operations.
According to Sonnbichler, Ryder uses
Lean principles to tackle labour costs
in its DCs. Using Lean concepts as a
foundation for labour management
increases productivity and reduces
costs. Improvements come
from creating new processes, measuring workflow to generate
continuous improvement, getting work
done right the first
time and increasing
inventory
turns, he explained.
By eliminating
waste along entire
value streams and
continuously improving, Lean creates processes that need less
effort, less space, less
capital and less
time to make
products and
Continued on page 17
Jason Sonnbichler, Aaron
Lalvani, Emily Atkins and Ian
MacKenzie in Vancouver.
15
14-02-12 12:52 PM
PROFESSIONAL DEVELOPMENT DIRECTORY
Advertorial
What has the biggest impact on the profitability
of your supply chain? YOU DO
As a supply chain professional, you
understand the impact your abilities can have
on your employer’s bottom line. And you
know it’s significant. But now there’s proof of
the corporate need and payback for supply
chain logistics expertise. An uninterrupted
supply chain has a bigger impact on a
company’s financial performance than any
other input.1 And a recent study from MIT
found that supply chain performance is
more sensitive to the skill set and expertise
of a company’s supply chain logistics
professionals than any other operational
factor—including commodity and fuel costs.2
That’s great news for your employer—
professional development puts control
into the hands of businesses. But
deepening your expertise isn’t just an
important way of boosting your company’s
bottom line. Specialized training and
professional designations—like the CITTCertified Logistics Professional (CCLP®)
designation—can mean better career
outcomes for you, including higher
salary and being qualified for more job
opportunities.3 It’s a win-win for you and
your employer.
Add CCLP to your credentials with
CITT’s expert-level 5-course suite of
specialized logistics courses
CITT’s online courses will equip you with
a depth of understanding that is more
complete and comprehensive than any
other similarly named set of industry courses
offered anywhere in Canada. Take three core
courses (Transportation Systems, Logistics
Processes, and Integrated Logistics), and two
electives (from Logistics Decision Modelling,
Transportation Law, and Transportation
Economics). They’ll give you the best
technical foundation for profitably managing
stable and reliable multimodal supply chain
logistics operations available today.
No other professional credential says
“Logistics Expert” as decisively as CCLP
While there are several credentials to choose
from, CCLP is chosen 3:1 over all other nonpurchasing supply chain credentials, and
was rated industry’s most relevant logistics
designation/program.4,5 And CITT believes in
making professional certification attainable
for anyone who is prepared to meet our
high, industry-recognised and respected
standard of functional proficiency. That’s
why all of our courses, designation and
certification maintenance requirements are
affordable and accessible to anyone with
Visit www.citt.ca/logisticsprofitability for more information. Or contact us at [email protected] or 416-363-5696.
Add “Logistics Expert” to your professional credentials. And more profitability to your supply chain logistics.
CITT’s spring semester starts April 24th. Register now at www.citt.ca to guarantee your spot.
® CCLP is a registered trademark of CITT
1
Hendricks K, Richard Ivey School of Business, University of Western Ontario, Singhal VR, DuPree College of Management, Georgia Institute of Technology. Supply Chain Disruptions &Shareholder Value, 2005.
2
Simchi-Levi, D, Kyratzoglou IM, Vassiliadis CG, Supply Chain and Risk Management: Making the Right Decisions to Strengthen Operations Performance, Study by MIT Forum for Supply Chain Innovation and PwC, 2013.
3
Canadian Supply Chain Sector Council. 2012 HR Study Update. Pg. 38.
4
“2010 Salary Survey Results”, Canadian Manufacturing, Materials Management & Distribution, September-October 2010.
5
“12 Annual Survey of the Canadian Logistics Professional”, Canadian Transportation and Logistics, 2011.
16
01MMD-PDD.indd 16
14-02-12 2:10 PM
Continued from page 15
services at far less costs with fewer defects. Companies
are able to respond to changing customer desires with
high variety, high quality, low cost, and very fast
throughput times, Sonnbichler said.
Ryder has been able to apply lean labour standards
to warehouse operations with fewer than 100 employees, making it a much more useful tool in the Canadian
environment where smaller DCs are the norm.
The system relies heavily on empowering and rewarding employees at all levels. TO succeed companies need
to create a lean culture that fosters and motivates
employees to proactively and continuously improve,
encourage everyone to challenge the status quo and
empower employees to identify and eliminate waste
from daily work. Employees are cross-trained and
Improving efficiency
Controlling costs
What’s more
important,
improving
efficiency or
controlling
costs?
encouraged to solve problems with tools like Kaizens,
A3’s, value-stream mapping, fishbone diagrams, rootcause analysis and 5 Why’s. Employees are rewarded
for their participation and suggestions.
Ian Mackenzie focused his remarks on the question
of benchmarking. Turning to BC labour ministry
stats in the context of the survey results showing only
32 percent of organizations using benchmarks, he
roughly calculated that there are about $13 million
in wages being spent in BC’s lower mainland alone
on employees who have no goals.
“Needless to say, morale is through the roof,” he
quipped before explaining what happens when staff
have no measurable objectives.
“What do you get killed on if you have no goals?
Productivity, accuracy, quality and revenue.”
But morale is even a worse problem that leads to high
turnover and countless other ills in the warehouse.
Mackenzie said there are various solutions, including
software, automation and RFID, but capital investment
is hard to get.
Instead, he said the place to start is front line
leadership (FLL). These are the entry-level leaders in a warehouse. They are the people who
are good pickers, they get promoted
because they are good at moving boxes,
but then they are expected to lead with
no tools, no training, and no measurement. So front line leadership
becomes your Achilles heel.
The solution, Mackenzie said
is to empower, equip and
encourage those people.
Build a set of benchmarks
through
observation and
gradually get to a
position where the
data gets tighter.
“Really
poor
benchmarks are
better than none at
all,” he added.MM&D
Ian MacKenzie addressed the
needs of front line leaders.
Jason Sonnbichler explained
the benefits of using Lean
labour management
in the DC.
17
14-02-12 12:52 PM
MM&D’s 12th Annual Third-Party Logistics (3PL) Capability Guide
competencies. They’re turning to 3PLs for help.
While in the past shippers have tended to hire 3PLs for
principally tactical activities, many now recognize the value
of deeper partnerships. Indeed, many feel that more strategic
relationships with 3PLs would help them cut total landed and
distributed costs.
In order to fully capitalize on this opportunity, you need to
make sure you’re trusting your business to the right partner.
Every year, we compile this list to provide you with
information about 3PLs operating in Canada. These
companies exist to provide and/or arrange interconnected
logistics services for shipper clients. They take on the work so
you don’t have to.
The appeal of outsourcing continues to grow. As the
economy continues to show uncertainty, many shippers
are seeking ways to offset risk and remain focused on core
OVER- MARKETS
VIEW SERVED
OVERVIEW LEGEND
A: Asset-Based
N: Non Asset-based
AN: Both
COMPANY NAME
3PL Links Inc.
A52 Warehouse Inc.
Accuristix
Affiliated Customs Brokers Ltd./Global Logistics
Agility
A.G.O. Transportation Inc.
All-Can Pro Logistics Inc.
All-Connect Logistical Services Inc.
A.N. Deringer, Inc.
APL Logistics
Axsun Inc.
Bonneau Freight Management Inc.
Bowden Transport
Bulk Plus Logistics
Canada Cartage System
Cavalier Transportation Services Inc.
CEVA Logistics
Challenger
C.H. Robinson Worldwide, Inc.
CK Logistics
Clarke Transport
Cole International Inc.
Confederation Freezers
Consolidated Fastfrate Inc.
C.W. Henderson Transportation
Damco
The Day & Ross Transportation Group
DB Schenker
Delmar International Inc.
DHL Global Forwarding
DN Logistics Ltd.
Dominion Warehousing & Distribution Services Ltd.
The Erb Group of Companies
EveryPoint Logistics Solutions
Expeditors Canada Inc.
Fargo Transportation Services Limited
FedEx Trade Networks Transport & Brokerage (Canada) Inc.
First Choice Logistics - Div. of Thompson Ahern International
Fort Storage Warehousing & Distribution
Fraser Direct Logistics Ltd.
Freightmate Inc.
Georgetown Terminal Warehouses
HTS Freight Logistics
Hyphen Transportation Management Inc.
Indis
18
01-3PLguide&dir.indd 18
TRANSPORTATION
CUSTOMS
Areas Se
rved
A sset-Ba
sed
ISO Cert
ified
Distribu
tors
Manufa
cturing
Retail
Service
Industri
es
Air
Bulk
Dedicate
d Contr
act Carr
Drivers
iage
Expedite
d
Fleet Ma
na g e m e
nt
Hazardo
us Mate
rials
High-Va
lue
Intermo
dal
Leasing
LTL
Ocean
Rail
Seaway
Small Pa
ck ag e
TL
ACE
ACI
C-TPAT
FAST
Licensed
Custom
s Brokers
PIP
C: Canada
N: North America
G: Global
G
G
N
G
G
G
C
CN
G
G
NA
G
NA
CN
N
N
G
G
G
CN
CN
G
C
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G A
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G N
NA A •
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NA NA
G N •
G N
G
G N
C A
G A •
G N
C
NA N
N N
C A
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14-02-12 2:13 PM
below. You’ll find the capabilities of each company indicated by
bullets under the appropriate category headings.
An alphabetized list of contact information for the firms
starts on page 22.
If you have any comments about this guide, or would like
to apply to be included in next year’s edition, please contact
MM&D’s publisher and editor-in-chief, Emily Atkins, at
[email protected].
This guide is meant to help you identify outsourcing
partners with the capabilities to meet your specific
requirements. Perhaps you need a firm that specializes in
cross-border activity, or temperature-controlled shipments,
or cross-docking—or all three. No matter how specific your
needs, we’re willing to bet you’ll find at least one match in
these pages.
To use this guide, browse through the 3PLs listed alphabetically
WAREHOUSING
SPECIAL SERVICES
TECHNOLOGY
Carrier S
election
Cross-Bo
rder Forw
arding
Inbound
Logistic
s
Integrate
d Lo
Inventory gistics
M a na g e
ment
Just-In-T
ime
Process
Planning
Product
Lifecycle
M a na g e
Project C
ment
argo
Service
Parts Lo
gistics
Shipmen
t Trackin
g
Tempera
ture Con
trolled
Vendor
M a na g e
ment
Wareho
using
Consolid
ation/D
econsoli
Cross-D
dation
ocking
Distribu
tion Cen
tre Man
Fulfillme
ag e m e n
nt
t
Location
Services
Pick/Pac
k Sub-A
ssembly
Vendor
M a na g e
d Invento
Consult
ry
ing
Delivery
-To-Hom
e
Delivery
-To-Store
Finance
H u ma n
Resourc
es
Import/E
xport/C
ustoms
Insuranc
e
Marketi
ng/Cust
omer Se
Paymen
rvice
t Audit/P
rocessin
Quality
g
A ssuran
ce
Regulato
ry Comp
liance
Reverse
Logistic
s
Security
Services
Vehicle
Mainten
ance
Advance
Shippin
g Notice
Docume
ntation
ED I
Real-Tim
e Invento
ry Visibil
RFID Ca
ity
pable
Satellite
/ Wireless
Commu
Transpo
nication
rtation M
a
na g e m e
Wareho
nt Syste
use Man
ms
ag e m e n
Web-Ba
t System
sed Ship
s
ment Tra
cking
LOGISTICS
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19
14-02-12 2:13 PM
OVER- MARKETS
VIEW SERVED
OVERVIEW LEGEND
A: Asset-Based
N: Non Asset-based
AN: Both
COMPANY NAME
I to I Logistics Inc.
J.D. Smith & Sons Limited
J.P. Enterprises - Logistics Corp.
Katoen Natie Canada
Kenco Logistic Services
KRG Logistics Inc.
KTS Logistics Inc.
Kuehne + Nagel Ltd.
Lakeside Logistics Inc.
Lantrax North America Logistics
Lean Supply Solutions Inc.
Lynden International Logistics Co.
Maisliner Toronto
Manitoulin Transport
McKenna Logistics Centres
Menlo Worldwide Logistics
Metro Supply Chain Group Inc.
Midland Transport
Mighty Expedite
Milgram & Company Ltd.
MIQ Logistics
Mosaic Logistics Ltd.
MTE Logistix Edmonton Inc.
Mutual Transportation Services Inc.
National Logistics Services Inc.
Neovia Logistics
NFI Canada
OPTVIA Logistics Inc.
Penske Logistics
Pival International
Polaris Transportation Group
Porter Warehousing & Distribution Inc.
Precision Total Fulfillment
ProMiles Canada Inc.
Propulsion +
QRC Logistics (1978) Ltd.
Quik X
Remco
ReTrans Canada
Rodair International Ltd.
RTL Reliable Transportation Link
Ryder Canada
Saddle Creek Logistics Services
Sameday Worldwide
Schneider National Carriers, Canada
SCI Logistics
SDV Logistics Inc.
SGT 2000 Inc.
Sherway Group
SLH Transport Inc.
Sotech Nitram Inc.
Specialized Transportation Inc. (STI)
Spencer/Butcher Group of Companies
Starship Logistics Inc.
Stonegate Logistics
Tandet
Tec Freight
Technicolor Global Logistics
20
TRANSPORTATION
CUSTOMS
Areas Se
rved
A sset-Ba
sed
ISO Cert
ified
Distribu
tors
Manufa
cturing
Retail
Service
Industri
es
Air
Bulk
Dedicate
d Contr
act Carr
Drivers
iage
Expedite
d
Fleet Ma
na g e m e
nt
Hazardo
us Mate
rials
High-Va
lue
Intermo
dal
Leasing
LTL
Ocean
Rail
Seaway
Small Pa
ck ag e
TL
ACE
ACI
C-TPAT
FAST
Licensed
Custom
s Brokers
PIP
C: Canada
N: North America
G: Global
G
NA
N
G
N
G
CN
G
CN
CN
N
C
G
G
G
G
N
N
NA
G
NA
CN
C
G
C
G
CN
G
G
C
N
C
G
N
G
C
CN
CN
G
G
CN
G
N
G
N
C
G
N
C
CN
G
CN
CN
CN
N
CN
G
CN
A
A •
A
A
AN
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14-02-12 2:13 PM
WAREHOUSING
SPECIAL SERVICES
TECHNOLOGY
Carrier S
election
Cross-Bo
rder Forw
arding
Inbound
Logistic
s
Integrate
d Lo
Inventory gistics
M a na g e
ment
Just-In-T
ime
Process
Planning
Product
Lifecycle
M a na g e
Project C
ment
argo
Service
Parts Lo
gistics
Shipmen
t Trackin
g
Tempera
ture Con
trolled
Vendor
M a na g e
ment
Wareho
using
Consolid
ation/D
econsoli
Cross-D
dation
ocking
Distribu
tion Cen
tre Man
Fulfillme
ag e m e n
nt
t
Location
Services
Pick/Pac
k Sub-A
ssembly
Vendor
M a na g e
d Invento
Consult
ry
ing
Delivery
-To-Hom
e
Delivery
-To-Store
Finance
H u ma n
Resourc
es
Import/E
xport/C
ustoms
Insuranc
e
Marketi
ng/Cust
omer Se
Paymen
rvice
t Audit/P
rocessin
Quality
g
A ssuran
ce
Regulato
ry Comp
liance
Reverse
Logistic
s
Security
Services
Vehicle
Mainten
ance
Advance
Shippin
g Notice
D o cu m e
ntation
ED I
Real-Tim
e Invento
ry Visibil
RFID Ca
ity
pable
Satellite
/ Wireless
Commu
Transpo
nication
rtation M
a
na g e m e
Wareho
nt Syste
use Man
ms
ag e m e n
Web-Ba
t System
sed Ship
s
ment Tra
cking
LOGISTICS
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21
14-02-12 2:13 PM
OVER- MARKETS
VIEW SERVED
OVERVIEW LEGEND
A: Asset-Based
N: Non Asset-based
AN: Both
COMPANY NAME
Thomson Terminals Limited (Thomson Group of Companies)
Total Logistics Group of Companies
Trailcon Leasing Inc.
Trans Plus Logistics Inc.
Transpro Freight Systems Ltd.
TST Overland Express
UPS Canada
UTi Worldwide
Versacold Logistics Services
Vimich Traffic Logistics
Western Canada Express / Apex Motor Express
Wheels Group of Companies
XTL Logistics Inc.
TRANSPORTATION
CUSTOMS
Areas Se
rved
A sset-Ba
sed
ISO Cert
ified
Distribu
tors
Manufa
cturing
Retail
Service
Industri
es
Air
Bulk
Dedicate
d Contr
act Carr
Drivers
iage
Expedite
d
Fleet Ma
na g e m e
nt
Hazardo
us Mate
rials
High-Va
lue
Intermo
dal
Leasing
LTL
Ocean
Rail
Seaway
Small Pa
ck ag e
TL
ACE
ACI
C-TPAT
FAST
Licensed
Custom
s Brokers
PIP
C: Canada
N: North America
G: Global
N
CN
CN
CN
CN
CN
G
G
C
CN
C
G
N
A •
AN
A
AN
A •
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AN
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N •
A
AN •
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3PL Capability
SHERWAYGROUP
SHERWAY
SHERWAY
WAREHOUSING
WAREHOUSINGINC.
INC.
Customized logistics and supply chain solutions
TRANSPORTATION
• 24/7 operations
• Same day/next day/
expedited service
• Dedicated fleet
management
• GPS real-time tracking
• Food-grade transportation
• Retail expertise
• Rockett service
WAREHOUSING
• 1 Million+ sq. ft.
• Dry and Cooler space
• AIB superior warehouse
rating
• In-house co-packing
• Food-grade storage
• Organic certified
• NHP certified
• HACCP compliant
LOGISTICS
• Transportation management
• LTL and FTL North American
ground transportation
• Seamless coast-to-coast
distribution
• Container transfers
• Customs brokerage
• Courier services
www.sherwaygroup.com
AXSUN INC.
St. Hubert, QC
450-445-3003
[email protected]
www.axsungroup.com
A52 WAREHOUSE INC.
Langley, BC
866-966-0252
[email protected]
www.a52.ca
BONNEAU FREIGHT MANAGEMENT INC.
Leamington, ON
519-326-0101
[email protected]
www.bonneaufreight.com
ACCURISTIX
Oakville, ON
905-829-9927
[email protected]
www.accuristix.com
BOWDEN TRANSPORT
Whitby, ON
905-665-1940
[email protected]
www.bowdentransport.com
AFFILIATED CUSTOMS BROKERS LTD./
GLOBAL LOGISTICS
Laval, QC
450-681-4555
[email protected]
www.affiliated.ca
BULK PLUS LOGISTICS
Burlington, ON
4037773545
[email protected]
www.bulkplus.com
AGILITY
Mississauga, ON
905-612-7561
[email protected]
www.agilitylogistics.com
CANADA CARTAGE SYSTEM
Mississauga, ON
905-564-2115
[email protected]
www.canadacartage.com
A.G.O. TRANSPORTATION INC.
Montreal, QC
514-631-6663
[email protected]
www.actionago.com
CAVALIER TRANSPORTATION
SERVICES INC.
Bolton, ON
905-857-6981
[email protected]
www.cavalier.ca
ALL-CAN PRO LOGISTICS INC.
Belleville, ON
613-966-0796
[email protected]
www.allcan3pl.com
CEVA LOGISTICS
Houston, TX
8008884949
[email protected]
www.cevalogistics.com
ALL-CONNECT LOGISTICAL SERVICES INC.
Oakville, ON
905-847-6555
[email protected]
www.allconnect.ca
CHALLENGER
Cambridge, ON
519-653-6226
[email protected]
www.challenger.com
A.N. DERINGER, INC.
Saint Albans, VT
802-524-8110
www.anderinger.com
For more information on how Sherway Group can make a difference to your business,
contact:
Andrew Kirkpatrick, Director of Sales and Marketing Sherway Group
APL LOGISTICS
Etobicoke, ON
866-896-2005
[email protected]
www.apllogistics.com
Tel: 905-362-9070 – Cell: 416-420-3257
Email: [email protected] – Website: sherwaygroup.com
22
3PL LINKS INC.
Woodbridge, ON
905-850-9002
[email protected]
www.3pllinks.com
C.H. ROBINSON WORLDWIDE, INC.
Eden Prairie, MN
800-323-7587
[email protected]
www.chrobinson.com
14-02-12 2:13 PM
WAREHOUSING
SPECIAL SERVICES
TECHNOLOGY
Carrier S
election
Cross-Bo
rder Forw
arding
Inbound
Logistic
s
Integrate
d Lo
Inventory gistics
M a na g e
ment
Just-In-T
ime
Process
Planning
Product
Lifecycle
M a na g e
Project C
ment
argo
Service
Parts Lo
gistics
Shipmen
t Trackin
g
Tempera
ture Con
trolled
Vendor
M a na g e
ment
Wareho
using
Consolid
ation/D
econsoli
Cross-D
dation
ocking
Distribu
tion Cen
tre Man
Fulfillme
ag e m e n
nt
t
Location
Services
Pick/Pac
k Sub-A
ssembly
Vendor
M a na g e
d Invento
Consult
ry
ing
Delivery
-To-Hom
e
Delivery
-To-Store
Finance
H u ma n
Resourc
es
Import/E
xport/C
ustoms
Insuranc
e
Marketi
ng/Cust
omer Se
Paymen
rvice
t Audit/P
rocessin
Quality
g
A ssuran
ce
Regulato
ry Comp
liance
Reverse
Logistic
s
Security
Services
Vehicle
Mainten
ance
Advance
Shippin
g Notice
D o cu m e
ntation
ED I
Real-Tim
e Invento
ry Visibil
RFID Ca
ity
pable
Satellite
/ Wireless
Commu
Transpo
nication
rtation M
a
na g e m e
Wareho
nt Syste
use Man
ms
ag e m e n
Web-Ba
t System
sed Ship
s
ment Tra
cking
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Guide: Contacts
CK LOGISTICS
Saint-Laurent, QC
514-856-7580
[email protected]
www.cklogistics.ca
DHL GLOBAL FORWARDING
Mississauga, ON
289-562-6500
[email protected]
www.dhl-dgf.com
CLARKE TRANSPORT
Concord, ON
416-665-5585
[email protected]
www.clarkelink.com
DN LOGISTICS LTD.
Maple Ridge, BC
604-380-3000
[email protected]
www.dnlltd.com
COLE INTERNATIONAL INC.
Calgary, AB
403-262-2771
[email protected]
www.cole.ca
DOMINION WAREHOUSING &
DISTRIBUTION SERVICES LTD.
Toronto, ON
416-744-2438
[email protected]
www.godominion.com
CONFEDERATION FREEZERS
Brampton, ON
905-791-1564
www.confederationfreezers.com
CONSOLIDATED FASTFRATE INC.
Woodbridge, ON
905-893-2600
[email protected]
www.fastfrate.com
C.W. HENDERSON TRANSPORTATION
Etobicoke, ON
416-674-5826
[email protected]
www.cwhenderson.ca
DAMCO
Madison, NJ
973-514-5126
www.damco.com
THE DAY & ROSS
TRANSPORTATION GROUP
Hartland, NB
800-561-0013
[email protected]
www.dayrossgroup.com
DB SCHENKER
Mississauga, ON
905-676-0676
[email protected]
www.dbschenker.com/ca
DELMAR INTERNATIONAL INC.
Montréal, QC
514-636-8800
www.delmarcargo.com
THE ERB GROUP OF COMPANIES
New Hamburg, ON
800-665-2653
[email protected]
www.erbgroup.com
EVERYPOINT LOGISTICS SOLUTIONS
Pointe-Claire, QC
514-426-3043
[email protected]
www.everypoint.ca
EXPEDITORS CANADA INC.
Mississauga, ON
905-290-6000
[email protected]
www.expeditors.com
FARGO TRANSPORTATION
SERVICES LIMITED
Georgetown, ON
905-873-1199
[email protected]
www.fargotransportation.com
FEDEX TRADE NETWORKS TRANSPORT
& BROKERAGE (CANADA) INC.
Mississauga, ON
9056777382
www.ftn.fedex.com
FIRST CHOICE LOGISTICS - DIV. OF
THOMPSON AHERN INTERNATIONAL
Mississauga, ON
905-677-3471
[email protected]
www.taco.ca
FORT STORAGE
WAREHOUSING & DISTRIBUTION
Winnipeg, MB
204-488-9774
[email protected]
www.fortstorage.com
KATOEN NATIE CANADA
Mississauga, ON
905-821-0514
[email protected]
www.katoennatie.com
MANITOULIN TRANSPORT
Mississauga, ON
905-670-8990
[email protected]
www.manitoulintransport.com
KENCO LOGISTIC SERVICES
Chattanooga, TN
800-758-3289
[email protected]
www.kencogroup.com
MCKENNA LOGISTICS CENTRES
Mississauga, ON
905-274-1234
[email protected]
www.mckennalogistics.ca
FREIGHTMATE INC.
North York, ON
416-633-4331
www.freightmateinc.com
KRG LOGISTICS INC.
Mississauga, ON
905-501-7277
[email protected]
www.krglogistics.com
MENLO WORLDWIDE LOGISTICS
San Mateo, CA
630-449-1084
[email protected]
www.menloworldwide.com
GEORGETOWN TERMINAL WAREHOUSES
Georgetown, ON
905-702-7084
[email protected]
www.gtwcanada.com
KTS LOGISTICS INC.
Vaughan, ON
866-270-7773
[email protected]
www.kts.ca
METRO SUPPLY CHAIN GROUP INC.
Concord, ON
905-738-5577
[email protected]
www.metroscg.com
FRASER DIRECT LOGISTICS LTD.
Georgetown, ON
905-877-4411
[email protected]
www.fraserdirect.ca
HTS FREIGHT LOGISTICS
Bolton, ON
905-951-2119
[email protected]
www.htsfreight.com
HYPHEN TRANSPORTATION
MANAGEMENT INC.
Concord, ON
905-695-3817
[email protected]
www.hyphentmi.com
INDIS
Concord, ON
905-761-8251
[email protected]
I TO I LOGISTICS INC.
Mississauga, ON
905-362-1603
[email protected]
www.itoilogistics.com
J.D. SMITH & SONS LIMITED
Vaughan, ON
905-669-8980 Ext 347
[email protected]
www.jdsmith.com
J.P. ENTERPRISES - LOGISTICS CORP.
Mississauga, ON
905-949-0046
[email protected]
www.jpent.com
KUEHNE + NAGEL LTD.
Mississauga, ON
905-502 7776
[email protected]
www.kuehne-nagel.com
LAKESIDE LOGISTICS INC.
Oakville, ON
905-338-4000
[email protected]
www.lakesidebesmart.com
LANTRAX NORTH AMERICA LOGISTICS
Surrey, BC
604-526-8729
[email protected]
www.lantraxlogistics.com
LEAN SUPPLY SOLUTIONS INC.
Toronto, ON
866-924-5777
[email protected]
www.leansupplysolutions.com
LYNDEN INTERNATIONAL LOGISTICS CO.
Vaughan, ON
905-879-0114
[email protected]
www.lilco.lynden.com
MAISLINER TORONTO
Toronto, ON
416-767-1700
[email protected]
www.maisliner.com
MIDLAND TRANSPORT
Dieppe, NB
506-858-5555
www.midlandtransport.com
MIGHTY EXPEDITE
Burlington, ON
905-332-9900
[email protected]
www.mightyexpedite.com
MILGRAM & COMPANY LTD.
Montréal, QC
514-288-2161
[email protected]
www.milgram.com
MIQ LOGISTICS
Mississauga, ON
905-542-7525
[email protected]
www.miq.com
MOSAIC LOGISTICS LTD.
Peterborough, ON
888-291-4442
[email protected]
www.shipmts.com
MTE LOGISTIX EDMONTON INC.
Edmonton, AB
780-944-9009
[email protected]
www.mtelogistix.com
23
14-02-12 2:13 PM
3PL Capability Guide: Contacts
MUTUAL TRANSPORTATION SERVICES INC.
Oakville, ON
905-339-3889
[email protected]
PROPULSION +
St-Colomban, QC
514-917-4575
[email protected]
SCHNEIDER NATIONAL CARRIERS, CANADA
Guelph, ON
[email protected]
www.schneider.com
NATIONAL LOGISTICS SERVICES INC.
Etobicoke, ON
416-246-9536 ext 7018
[email protected]
www.nls.ca
QRC LOGISTICS (1978) LTD.
Mississauga, ON
905-791-9004
[email protected]
www.qrclogistics.com
SCI LOGISTICS
Toronto, ON
888-755-1528
[email protected]
www.scilogistics.ca
NEOVIA LOGISTICS
Downers Grove, IL
630-743-4156
www.neovialogistics.com
QUIK X
Mississauga, ON
905-565-8811
[email protected]
www.quikx.com
SDV LOGISTICS INC.
Saint-Laurent, QC
514-956-7870
[email protected]
www.sdv.com
REMCO
Lachine, QC
514-625-1022
[email protected]
www.remco.ca
SGT 2000 INC.
St-Germain, QC
800-363-4216
[email protected]
www.sgt2000.com
NFI CANADA
Mississauga, ON
905-625-2300
[email protected]
www.nfiindustries.com
OPTVIA LOGISTICS INC.
Guelph, ON
519-823-7860
[email protected]
www.optvialogistics.com
PENSKE LOGISTICS
Reading, PA
800-529-6531
[email protected]
www.penskelogistics.com
PIVAL INTERNATIONAL
Dorval, QC
5146841600
[email protected]
www.pival.com
POLARIS TRANSPORTATION GROUP
Mississauga, ON
905-671-3100
[email protected]
www.polaristransport.com
PORTER WAREHOUSING &
DISTRIBUTION INC.
Edmonton, AB
780-453-5192
[email protected]
www.porterwarehousing
PRECISION TOTAL FULFILLMENT
Woodbridge, ON
905-850-5044
[email protected]
www.precisiontotalfulfillment.com
PROMILES CANADA INC.
Bowmanville, ON
888-736-4537
[email protected]
www.promilescanada.com
RETRANS CANADA
Toronto, ON
416-213-0131
[email protected]
www.re-transcanada.com
RODAIR INTERNATIONAL LTD.
Mississauga, Ontario
905-671-4655
[email protected]
www.rodair.com
RTL RELIABLE TRANSPORTATION LINK
Concord, ON
905-660-7766
[email protected]
www.goreliable.ca
RYDER CANADA
Mississauga, ON
800-565-8495
[email protected]
www.ryder.com
SADDLE CREEK
LOGISTICS SERVICES
Lakeland, FL
863-665-0966
[email protected]
www.sclogistics.com
SAMEDAY WORLDWIDE
Mississauga, ON
905-676-8960
[email protected]
www.sameday.ca
SHERWAY GROUP
Mississauga, ON
416-420-3257
[email protected]
SLH TRANSPORT INC.
Kinston, ON
800-661-2146
[email protected]
www.slh.ca
SOTECH NITRAM INC.
Laval, QC
877-664-8726
[email protected]
www.sotechnitram.com
SPECIALIZED TRANSPORTATION
INC. (STI)
Fort Wayne, IN
800-234-2788
[email protected]
www.stidelivers.com
SPENCER/BUTCHER GROUP OF
COMPANIES
Windsor, ON
5199449200
[email protected]
www.spencerbutcher.com
TST OVERLAND EXPRESS
Mississauga, ON
905-625-7500
[email protected]
www.tstoverland.com
STONEGATE LOGISTICS
Mississauga, ON
905-671-9072
[email protected]
www.stonegatelogistics.com
TANDET
Oakville, ON
905-603-2310
[email protected]
www.tandet.com
UPS CANADA
Mississauga, ON
905-364-5941
[email protected]
www.ups.ca
TEC FREIGHT
Mississauga, ON
905-828-8132
[email protected]
www.wesolveit4you.com
UTI WORLDWIDE
Long Beach, CA
562-552-9400
[email protected]
www.go2uti.com
TECHNICOLOR GLOBAL LOGISTICS
Camarillo, CA
805-445-3093
[email protected]
www.technicolorgloballogistics.com
VERSACOLD LOGISTICS SERVICES
Vancouver, BC
800-563-2653
[email protected]
www.versacold.com
THOMSON TERMINALS LIMITED
(THOMSON GROUP OF COMPANIES)
Toronto, ON
416-240-0897
[email protected]
www.thomsongroup.com
VIMICH TRAFFIC LOGISTICS
Tecumseh, ON
800-284-1045
[email protected]
www.vimich.com
TOTAL LOGISTICS GROUP
OF COMPANIES
Vaudreuil-Dorion, QC
450-424-1700
[email protected]
www.totallogistics.com
24
STARSHIP LOGISTICS INC.
Georgetown, ON
800-465-7827
[email protected]
www.starshiplogistics.ca
TRAILCON LEASING INC.
Mississauga, ON
905-670-9061
[email protected]
www.trailcon.com
TRANS PLUS LOGISTICS INC.
St. Laurent, QC
514-332-5020
[email protected]
www.trans-plus.com
TRANSPRO FREIGHT SYSTEMS LTD.
Milton, ON
905-693-0699
[email protected]
www.transprofreight.com
WESTERN CANADA EXPRESS/
APEX MOTOR EXPRESS
Concord, ON
905-738-2106
[email protected]
www.westerncanadaexpress.com
WHEELS GROUP OF COMPANIES
(WHEELS INTERNATIONAL;
WHEELS MSM; WHEELS LOGISTICS)
Mississauga, ON
905-602-2700
[email protected]
www.wheelsgroup.com
XTL LOGISTICS INC.
Mississauga, ON
416-742-3883
[email protected]
www.xtl.com
14-02-12 2:13 PM
DATA CAPTURE
RFID’s star continues to rise
MM&D Staff
users. IDTechEx Research expected 3.1 billion
passive UHF RFID tags to be sold in 2013.
A
ccording to a new RFID sector survey (RFID
Forecasts, Players and Opportunities 2014-2024)
by IDTechEx Research, the RFID market will increase
from $6.98 billion in 2012 to $7.88 billion,
and will reach $23.4 billion in 2020. This
includes tags, readers and software/services
for RFID cards, labels, fobs and all other form
factors—for both passive and active RFID.
The market for RFID has grown steadily despite
the economic meltdown due to the diverse
nature of its applications from tagging retail
apparel to transport ticketing to animals.
Historically and today, governments have driven
most RFID orders as they improve efficiency
(transit systems), safety (passport tagging) and
protect industries (animal tagging).
Since 2000 there has been a strong push
to use passive RFID to improve supply chain
visibility, with a wide range of investment
in new RFID technologies, new standards
and much publicity. Inevitably, as with most
new technologies, aspects were over-hyped
and demand not in sync with capacity, but
as we entered 2010 the industry emerged
from the hype cycle and over the following
years until now, has entered a period of rapid
growth and profitability for some. There are
different rates of growth for different applications and many challenges, and opportunities still exist. In total, IDTechEx finds that
5.9 billion tags will be sold in 2013 versus
4.8 billion in 2012.
The last five years has seen consolidation
throughout the value chain in passive UHF
RFID with some companies emerging in true
phoenix-from-ashes style. This is mainly
driven by one application—retail apparel—
which demanded 2.25 billion RFID labels in
2013. As in most emerging technology, there
will be blips along the way, such as the current UHF RFID litigation. But we do not
believe this is a show stopper—no-one makes
money then.
After apparel tagging, passive UHF is
deployed in many different application areas
for asset tracking and other applications.
These are small volumes in their own right,
but add up to hundreds of millions of tags
per year given the strong payback they give
January/February 2014
01MMD-DataCapture.indd 25
For more details on the study, visit
www.idtechex.com/rfid.
Custom Creative. Targeted Results.
The team at Palmer Marketing has an excellent blend of
youthful exuberance, technical expertise and seasoned
creative. We also possess a unique understanding of the
transportation industry that spans a lifetime.
Drive your marketing forward. Book your order of creative
juice from the professionals at Palmer Marketing today!
25
14-02-11 5:46 PM
Materials handling
innovation at Modex
Destination Atlanta from March 17 to 20
By MM&D staff
M
odex 2014 will include more than 800 exhibits
over the course of four days from March 17th to
20th at the Georgia World Congress Center in Atlanta,
Georgia. The 250,000-sqf show floor will feature manufacturing, distribution, and logistics solutions for the
supply chain.
MODEX 2014 attendees can choose from a variety of
educational sessions covering the latest manufacturing
and supply chain trends, technologies and innovations.
The Supply Chain Conference will include three keynotes and over 100 educational sessions. The keynotes
are: Shipping Trends for
Global Supply Chains by
Edward Bastian, president
of Delta Airlines; A
Conversation with Lee
Scott, American businessman and former CEO of
Wal-Mart, moderated by
Mitch MacDonald, president and CEO of AGILE
Business Media, LLC; and
a Preview of the MHI
Industry Report, with
George Prest, CEO of
MHI and Scott Sopher,
principal with Deloitte Consulting LLP.
This year the show is co-located with the Supply Chain
& Transportation USA Exhibition & Conference (SCT).
Here are some highlights of the new technologies
that will be on display.
Dematic is offering the “Picking Palooza” at the
show. A variety of piece-picking solutions for order
fulfillment operations and kitting applications will
be on display. Each picking solution featured supports
different activity profiles so users can evaluate solutions appropriate for their requirements: slow/
medium/fast rate, low-high number of SKUs, and
low automation to high automation.
Applied Energy Solutions will be exhibiting its
battery charging solutions. The company will be
featuring its award-winning Lithium Ion Superion
Charger and its Maverick High-Frequency Fast
26
01MMD-Modex.indd 26
Charger, along with other products.
The company manufactures battery-charging applications, and has recently released several new products
that offer opportunity- and fast-charging capabilities.
The Superion Lithium-Ion charger and battery pack
received MHI’s Innovation Award in 2014 for its ability to provide pallet jacks with more energy-dense
and cost-effective battery power than the traditional
lead-acid battery.
ARPAC will be featuring the Semi-Automatic Pro
Series LP Wrap-N-Weigh, a heavy-duty pallet stretch
wrapper with a 4,000-lb capacity. Integrated with a
precision scale and digital controls, it combines wrapping and weighing into one operation. This model is
available in high-profile (for forklift loading) or lowprofile for pallet-jack loading. This machine can be
customized with extended towers for taller loads, and
split frames for odd-sized larger loads.
Modex visitors will have a chance to see how drones
may soon offer a cost-effective and scalable alternative
to traditional palletizing methods at the Emulate 3D
booth. With little superstructure or hardware to
install, a drone-based palletizing solution could be
deployed rapidly, and should be capable of a relatively
high, sustained load throughput. Although the current limitation on their usefulness is clearly the weight
of the carried load, this is not seen as insurmountable
in the medium term—interest from companies like
Amazon will continue to drive battery and control
development.
Emulate3D develops cost-effective dynamic 3D
industrial simulation modeling software products
that facilitate the demonstration, understanding, and
sale of automated material handling systems. It is
partnered with Qimarox, a Netherlands-based manufacturer of components for material handling systems,
including palletisers and vertical conveyors.
Power Automation Systems (PAS) will have a
PowerStor automated pallet storage system in operation, along with a semi-automated PAS Voyager system. PAS is also demonstrating its newest WMS
software, PASWare 3.0. Also on display will be the
robotic vehicles, known as Aisle Way Carts (AWCs)
and Row Rail Carts (RRCs), used in the PowerStor
automated system and the PAS Voyager system.
14-02-12 11:04 AM
Seegrid will demonstrate its new GWS35 walkie
stacker. MODEX will be the first time the GWS35
will be demonstrated for the materials handling
industry. The GWS35 automatically picks, drops,
stacks and puts away loads up to 72in. Previously, the
Seegrid flexible AGV suite included only automatic
horizontal transportation of goods. Seegrid will be
giving attendees an opportunity to win a fully
installed GWS35 walkie stacker. Kardex Remstar will display an expanded product
line of Shuttle XP Vertical Lift Modules (VLM) and
Megamat RS Vertical Carousels. The Shuttle XP VLM
ranges from light-duty storage in the 250 model, to
heavy-duty storage in the new Shuttle XP 1000 model,
with a 1000-kg capacity per tray.
Integrated Systems Design (ISD) is introducing a
full range of guaranteed manual, semi-automated
and automated order-picking systems. ISD systems
match an organization’s SKU profile, floor space,
labour, throughput and velocity requirements. Being
a consultant and integrator allows ISD to be technology and brand neutral. This allows ISD’s order picking
and fulfillment systems to be designed with performance first and foremost to mitigate customers’ risk
and help to assure success.
ORBIS Corporation
will reveal its “5-Step
Supply Chain Optimization Process”. The company says this will be the
first opportunity for
audiences to receive a
personal first-hand tour
of this process from the
experts who manage it.
ORBIS will also showcase
new reusable pallets, totes, bulk containers and trays
for the food, beverage, consumer product and industrial supply chains.
Columbia Machine will demonstrate the Load
Transfer Station with Pallet Cart. The LTS-C can transfer products that are packaged in cases, barrels, drums,
bags and pails from one pallet type to another, including Plastic, CHEP and GMA pallets that are commonly
used in both receiving and shipping applications.
Ravas will show its iForks Touch, wireless scale
forks that can be installed on any forklift truck in
three minutes. Besides the iForks Touch, Ravas will
show the ProLine Touch, a hand pallet truck scale,
which weighs loads in 0.2-lb increments. MM&D
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Bendi Articulating and Drexel SwingMast Forklifts are the Optimum Choice Available
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or Odd Shaped Long Loads, Landoll has the Right Narrow Aisle Solution with
a Wide Range of Models, Capacities and Power Options.
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LANDOLL CORPORATION
MATERIAL HANDLING PRODUCT DIVISION
1900 North Street · Marysville, KS 66508 · 785-562-5381 · Fax 888-231-7863
[email protected] · 800-428-5655 · WWW.LANDOLL.COM/MHP
01MMD-Modex.indd 27
14-02-12 11:04 AM
way
Make
for the
Diesels
New Clark trucks with 3.6 diesel
Clark Material Handling Company has released its
C40-55 Series (8,000 to 11,000lb pneumatic tire lift
trucks) with Tier 4 Final Compliant Engines. The
new series trucks use the Deutz TD3.6 diesel engine
with a common rail direct injection fuel system
delivering 74hp at 2200rpm and 243ft/lbs of torque
at 1600rpm. The advanced design and efficiency of
the Deutz engine is tier 4 final compliant without
the need for costly additional diesel particulate
filters, UREA additives or time-consuming “burn
off ” cycles.
Toyota 8 series with 1ZS engine Toyota 8-Series
28
01MMD-Forktrucks.indd 28
Toyota Material Handling, USA, Inc (TMHU) has
expanded its 8-Series lift truck line with the introduction of a new 3,000- to 6,500-lb capacity diesel series
powered by a clean-burning Toyota engine. The
8-Series small-capacity lift trucks offer significant
advancements in durability, ergonomics, productivity
and fuel efficiency, while meeting US EPA Tier 4 Final
diesel engine standards.
The newest lift trucks expand Toyota’s comprehensive diesel pneumatic line, which now provides 3,000to 17,500-lb capacity models that meet the federal
EPA Tier 4 Final regulations.
“Toyota’s new small-capacity diesel lift trucks reflect
innovations in product design and fuel efficiency and
take lift truck productivity to a whole new level,” said
Jeff Rufener, president of TMHU. “Our customers
can expect a quality lift truck that exceeds the performance demands of tough workplace environments
with the added benefit of achieving up to 25 percent
greater fuel efficiency over previous models.”
Powering the small capacity 8-Series line is the powerful 1ZS engine, designed for industrial operation
and built by Toyota Industries Corporation (TICO),
manufacturer of more than 15 million engines to date.
The new 1.8-litre, 3-cylinder engine has the latest
electronic fuel injection system with Controller Area
Network (CAN-BUS) technology to deliver substantial
improvements over the previous 4-cylinder engine it
replaces. Thanks to new engineering advancements,
Toyota’s 8-Series engine maintains the horsepower
and increases the torque, as the previous engine, while
achieving greater fuel savings.
To meet today¹s emissions requirements, the 1ZS
electronic common rail fuel injection system works
in conjunction with an intercooled, variable nozzle
turbocharger and a Diesel Oxidation Catalyst (DOC),
minimizing emissions and particulate matter to levels,
meeting the Tier 4 Final emissions standards. The
result of these advancements equates to less downtime,
lower costs and increased productivity compared to
other solutions in use today, such as Diesel Particulate
Filters (DPF).
In addition, the 8-Series small capacity diesel line
offers additional benefits including:
• Load Sensing Power Steering that provides steering
assistance only when needed, reducing demand on
the engine and hydraulic system, and increasing
fuel efficiency. Combined with the new 1ZS engine,
Toyota says it provides up to a 25 percent fuel savings over the previous engine.
• Automatic Idle-up System that allows feathering of
the hydraulic lift lever under load for fast, efficient
and smooth load handling.
• Eco Mode to help improve truck fuel efficiency over
the course of the work day with minimum power
reduction, by optimizing the performance curve of
the engine to work conditions.
• Auto Engine off that automatically powers down
the lift truck after a user programmable preset
amount of time to save both fuel and unnecessary
wear and tear on the engine.
The new lift trucks will be manufactured at Toyota
Industrial Equipment Mfg, Inc (TIEM), in Columbus,
Indiana.
MM&D
14-02-12 12:20 PM
An open and shut case
Big doorways need fast doors
By Kurt Angermeier
F
or most plants and distribution centres, the dozens
of dock doors in the receiving and shipping departments get products in and out of the building. Being
open much more than they are closed, the dock doors
have the potential for tremendous energy loss, especially
in very busy facilities where one truck after another is
loaded and unloaded. So while these doors are shut
briefly, dock seals around the doorway and sealing systems inside the dock levelers stop energy loss and protect
the productive environment inside the building.
To handle larger loads—raw material and equipment—both in the building and out in the yard, most
manufacturing and distribution facilities have additional massive doorways. These openings serve important functions, but they present major challenges for
building management. With these massive doors having an area comparable to good-sized bedroom floor
plan, their operating expenses include the thousands
of dollars in heating/cooling energy that pours out of
the building, along with potential maintenance.
Space is tight within most industrial/distribution
facilities, and people work in proximity to the doorway.
When temperatures hit the extreme on either end of
the thermometer and the doors remain open for long
periods of time, the productivity of those nearby suffers. Windy days can be especially disruptive in these
areas. Any building control system serving the area
ends up working harder, driving up energy costs.
Door speed is a big factor in minimizing building
exposure to energy loss through large doorways and
the effects of the weather. As noted by the facilities
manager for a plant that moves large parts and
machinery in and out of their building, “Our solid
panel doors would take a minute and a half to open.
In the winter, if the doors were opened to move in a
part stored in the yard, it would take a while to recover
the heat loss in the building.”
These doors may open and close hundreds of times
a day. The time that vehicles wait for the doors to
open aggregates to hundreds of hours over the course
of a year, cutting into material handling productivity
and equipment return on investment during the idle
time. Some companies have resorted to using their
lumbering solid panel door for off-hours lock-up only
and adding a fabric roll-up door to handle the traffic
during the working day.
But for those days with high temperature differentials
between inside and outside, the thin curtain offers no
01MMD-DockEquip.indd 29
insulation. This arrangement also means twice the
maintenance costs.
Rigid slat roll-up style
doors are available that
combine the protection
of solid panels and the
speed of roll-up fabric
curtains. Door manufacturers have juiced up the
speed of these doors to
up to 60 inches per second, minimizing doorway
exposure. Vehicles approaching these rapid doors
can enter the facility through a 16-foot high doorway
in a little over three seconds.
Once closed, the doorway is tightly sealed along all
four sides. Users have found the increased productivity of employees in adjacent areas confirms the effectiveness of the reduced drafts and airflow, and by
energy audits confirming savings of seven percent
or more, depending upon the prevailing climate.
With doors this large, maintenance is another major
issue. Losing just one of these massive doors can cause
considerable disruption to traffic flow and leave the doorway unprotected against energy loss and intruders.
Conventional doors generally need to be replaced
often, and because of their slow speed are prone to
being hit as traffic goes through the doorway. Their
conventional moving parts wear down frequently,
especially considering the weight they have to bear
from the panels. These parts require frequent maintenance and lead to downtime. Due to their high
speed, these newer door pull out of the way of passing
traffic faster, preventing collisions and damage.
These newer roll-up doors are technically advanced,
replacing mechanical operating parts with electronics.
Their operating systems can include intelligent processors and variable frequency drives, and can generate an energy-efficient speed curve for smooth motion,
soft starting and stopping, for longer door life. Most
of the adjustments can be made at ground level, getting the door back in operation in minimal time.
Energy conservation and sustainability will continue
to be big issues, especially for those facilities that seek
to be LEED-rated. The speed provided by these doors
not only beats the clock for more efficient operation,
but the electricity and gas meter as well.
MM&D
This spiral, roll-up style
door provides solid
protection for the
ground-level doorway
at this DC, yet provides
a fully open doorway
in under three seconds.
Kurt Angermeier is vice-president marketing, with
Rytec High Performance Doors.
29
14-02-11 5:46 PM
It’s all
downhill
from here
Flow storage systems can net significant savings
By MM&D staff
W
hich systems enable pallet warehouses with
medium to high turnover rates to run particularly economically? This question, posed by planners and purchasers throughout the logistics sector,
is answered by a comparative study based on extensive
calculations made by the management consulting
firm Intralenco, based in Wiehl/Germany, and commissioned by Interroll.
According to its findings, modern flow storage
systems—depending on warehouse size and turnover
speed—can reduce monthly costs per pallet position
by up to 28 percent compared to manual radio-shuttle
solutions. At the same time, warehouse capacity can
be increased by up to 50 percent—which makes flow
storage systems an option worth considering in most
cases, including modernization projects.
In order to compare the operating costs of the various
storage systems, Intralenco ran a series of comprehensive
calculations that factored in initial outlay on hardware,
assembly, utilization of floor space, energy costs, workforce requirements and depreciation. Flow storage and
radio-shuttle systems of varying sizes (1,000, 3,000 and
5000 pallet positions) and turn rates (12, 24, 36, and 48
per year) were compared
as part of this exercise.
The results show that
the cost benefit of flow
storage systems over
radio-shuttle solutions
rises significantly in
direct relation to the
speed of turnover and
number of required pallet positions. Reduced
staff costs and fewer
30
01MMD-Racking.indd 30
forklifts are required. In addition, the growing diversity of items now being warehoused can require complicated, time-consuming and thus costly transfer of
shuttles used in different storage lanes.
“Performance and reliability, combined with the
lowest possible operating costs are the key to successful material flow solutions…The savings made on
operating costs mean any initial investment on such
flow storage systems is generally recovered in fewer
than two years,” said Bertrand Reymond, managing
director of the global Interroll Centre of Excellence
in La Roche sur Yon, France.
In an end-to-end economic assessment, not only the
initial investment but also the ongoing operating costs
play a particularly important role. For instance, a 2012
study showed that flow storage systems reduce the
overall operating costs of internal logistics.
“Flow storage systems offer a manageable and highperformance logistics solution for production, sales
and after-sales service. Wherever a limited number
of fast-moving items are involved and sustainable
logistics is a strategic goal, flow storage systems are
hard to beat,” says study author Lothar Schulze of
Gottfried Wilhelm Leibniz University in Hannover.
Modern dynamic storage systems are characterized
by lane structures. Individual lanes are equipped with
non-powered rollers. Movement of the loading units
(eg pallets) from entry into the lane through to the
unloading position is generated by gravity. The loading units “flow” through the lane over slightly
declined roller conveyors. There is no need to handle
the pallets using shuttles powered by electric motors.
Along with high availability and economical operating costs, flow storage systems offer a range of other
benefits. They can be adapted for use in integrated
order picking or dispatch/provisioning systems, and
they can handle different pallet sizes.
MM&D
14-02-12 12:53 PM
The Konstant Group has the most
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equipment and accessories available in
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the best solution for your requirements
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> Shelving
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> Cantilever
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Konstant.indd 1
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The Konstant® Group of Companies
14-02-12 10:32 AM
LEARNING CURVE
Sobering thoughts: substance
abuse in the workplace
T
Tracy Clayson
32
01MMD-lc.indd 32
he 2012 movie Flight tells the story of Whip
Whitaker, an airline captain who abuses alcohol
and drugs on and off the job. When the plane he is
flying crashes, killing some of his passengers and crew,
he tries to hide the fact that he was inebriated at the
time. Sure, it’s a Hollywood film, but it makes wonder
you how often the public is exposed to such dangers.
A September 2013 Statistics Canada study says 10
percent of Canadians reported symptoms consistent
with several mental health or substance use disorders
in the previous 12 months. The disorders measured
by the survey were: abuse of or dependence on alcohol,
cannabis or other drugs, major depressive episode,
bipolar disorder and generalized anxiety disorder.
From these numbers, we know this problem impacts
the workplace. In 2013 a Canadian Centre for
Substance Abuse report indicated that addictions
cost the Canadian economy $24.3 billion in lost
productivity. Add health care, policing and security
costs, costs due to possible workplace theft, and
recruiting and retraining costs and the total swells
to $39.8 billion.
But, companies can play an important role in addressing or preventing substance abuse in the workplace.
First, they must have a policy and ensure management knows how to address substance abuse problems.
Managers should be able to spot the clues—including
attendance issues, obvious or minimal signs of intoxication, errors in judgment, changes in behavior and
attitude, avoidance, lack of concentration—and then
take action. In fact, employers have a legal obligation
to do so.
At the same time, employees must have a clear
understanding of company policy and procedure
around substance abuse, and of the disciplinary
actions that could result.
The transportation industry is deemed a high-risk
sector, so it has a responsibility to ensure public and
workplace safety is maintained. As a response to
employee engagement and wellness process requirements, many companies offer Employee Assistance
Programs (EAP) for issues such as depression, divorce
and substance abuse.
Further, companies have a joint responsibility to
provide employee support, as well as risk management
procedures, to reduce exposure due to employee misconduct. There are stringent protocols for security
and safety legislated in some industries—such as
trucking services in the US. As a requirement for US
Department of Transportation compliance, Canadian
carriers must have pre-employment drug and alcohol
testing and random testing programs for US-bound
truck drivers.
Where transportation companies are concerned,
there had been an historical grey area around drug
and alcohol testing. But now, even carriers with a pool
of drivers who only do local work (staying within a
province or the country) may be tested, due primarily
to a decision of January 8, 2005. In the case, Trimac
Transportation was challenged by its union with respect
to the random testing requirement for drivers operating only in Canada. Non-US bound drivers opposed
the testing on the basis of privacy, but the ultimate
decision allowed Trimac Transportation to maintain
the right to test. The Federal Human Rights
Commission Arbitrator determined the human rights
requirement did not outweigh the risks to public safety.
There are other serious risks to consider. For example,
a company acting prematurely by firing an employee
can be charged with discrimination by the employment
law tribunal. It pays to do everything by the book.
Of course, even if a company takes proper measures
to screen when an employee is suspected of being
visibly impaired, things can get missed. Employees
may be abusing drugs and/or alcohol but staying at
legal blood alcohol levels (BALs). For example, the
US National Highway Traffic Association states that
alcohol impairs a driver’s ability at a BAL of 0.02
percent but 0.10 percent is the lowest level tested.
So people can be impaired in the workplace and not
be disciplined.
Since a percentage of the Canadian workforce clearly
suffers from substance abuse problems, companies
should ensure information on prevention and treatment is available and well understood by employees
and managers.
But employers don’t have to be held hostage. Yes,
addiction is considered a disability and employers have
a duty to accommodate employees by giving them time
to seek treatment when required. But, if all the proper
steps are taken and then treatment is refused, an
employee can—and must—be terminated
MM&D
Tracy Clayson is managing partner, business
development of Mississauga, Ontario-based
In Transit Personnel. [email protected]
14-02-11 5:48 PM
LEGAL LINK
“I was only following orders”
Employees can be personally liable for corporate deceit
I
n the recent case of XY, LLC v. Zhu, the BC Court
of Appeal confirmed that employees of a company
can be personally liable, and not shielded by the corporation, for their role in the breach of a technology
license agreement by their employer and for their
active participation in committing the tort of deceit.
The plaintiff, XY, LLC (“XY”), as licensor, entered
into a technology license agreement with one of the
defendants, JingJing Genetic Inc (“JingJing”), as
licensee, and a member of a group of corporations
known as the “IND Group”. The technology makes
it possible to separate X- and Y-chromosomes in
bovine spermatozoa allowing sex-selection in the
production of calves. The Agreement required
JingJing to pay a royalty based on its revenues from
the number of embryos and the amount of sperm it
sold in China thanks to its use of the technology.
The trial judge found JingJing breached the contract
and committed the tort of deceit by falsifying its records
to significantly underpay the royalties it owed to XY.
The controlling shareholder of JingJing, Jesse Zhu, and
two of its employees, Jin Tang and Selen Zhou, were
also found to have committed the tort of deceit and
were jointly and severally liable, with JingJing, for the
payment of damages in excess of $8 million.
By the date of trial, JingJing declared bankruptcy.
It was, therefore, critically important for the plaintiff
to be able to recover its damages awarded at trial from
the personal defendants. The defendants, except
JingJing, appealed.
Appellate court decision
The BC Court of Appeal upheld the trial judge’s finding
that the three personal defendants were personally
liable and that they were not shielded by the corporate
vehicle for liability for their active participation in
deceiving XY. The Court stated: “...It appears to be the
law in Canada that as long as tortious conduct on the
part of an employee or agent of a corporation (or any
other employer) is properly pleaded and proven as an
“independent” tort by the employee or agent, the wrongdoer can be held personally liable, notwithstanding
that he or she may have been acting in the interests of
(and at the behest of) the employer or principal...”
“In any event, it is clear that fraud or fraudulent
conduct has historically fallen into an established
category in which personal liability has been imposed
on agents and employees...”
“In the result, it cannot in my view be said that the
01MMD-ll.indd 33
claims of deceit or civil conspiracy were not available
to XY against the Personal Defendants as a matter of
law merely because they were employees of JingJing
and acting in the course of their duties to further the
objectives of JingJing.”
The two personal defendants, who were merely
employees of JingJing, further argued that in carrying
out the conduct complained of, they were “only following orders” and could not be expected to refuse
to carry out the scheme apparently devised by their
boss, Mr Zhu, the directing mind of JingJing and the
IND Group.
The Court of Appeal agreed that an employee who
simply carries on doing the job he or she has always
done, despite that his or her typing or bookkeeping may
assist in the fraud, should not without more be regarded
as a fraudster or conspirator himself or herself.
However, in this case, the trial judge found that
Zhou and Tang went beyond mere bookkeeping or
“typing” lab reports and Mr Zhu’s instructions.
Rather, both defendants actively assisted in devising
how best to deceive XY. Therefore, their acts were
“tortious in themselves” and were not part of their
regular duties. As a result, the “following orders”
defence asserted on behalf of Tang and Zhou was
rejected by the Court of Appeal.
Marvin Huberman
A cautionary tale
This case is a very important decision for both
employers and employees. It thoroughly
analyzes the relevant principles of law and
applies them to the pertinent facts, resulting in personal liability for employees
of a company for their role in assisting
their employer in carrying out a fraud.
In those circumstances, the Court
extended liability to the three personal
defendants who were not shielded by
the corporate vehicle from liability for
their active participation in the commission of actionable civil wrongs. It
then held the personal defendants liable
to personally pay damages assessed in
excess of $8 million.
MM&D
Marvin J. Huberman, LLM,
(www.marvinhuberman.com) is a
Toronto trial and appellate lawyer,
mediator and arbitrator.
33
14-02-11 5:48 PM
MATERIALS HANDLING
Is there a drone in your future?
Supply chain applications for unmanned aerial vehicles
U
Dave Luton
34
01MMD-mh.indd 34
sing an idea from an old comic book would
seem far-fetched for developing potential applications for a new logistics technology, but that is
where our column starts today. Oldsters like myself
remember that Superman was “Able to leap tall buildings with a single bound.” That is one of the potential
applications for new drone technology that small
package delivery companies would love to use, as
transportation delivery technology today can only
handle two dimensions.
Imagine the potential for downtown city delivery
if you had a technology that was not ground-based,
but three-dimensional, to solve the nightmare of
apartment and office tower deliveries. In a perfect
world delivery right to the user’s floor. Of course
there might be an interesting cost saving side benefit
if you could do it without any of today’s ground based
concerns about city traffic. While overcoming the
third dimension of logistics in downtown cities, there
is a need to consider the problem of obstacles like
wires, and the real risk of the consequences of a crash.
There is a characteristic of Canadian cities, however, that
makes them potentially suitable for a
drone logistics application. To understand
that we have to go
back to the founding
of our country. Water
transportation was
the only efficient
mode available. It led
to the founding of
many of our major
cities, but also left
them with an interesting metropolitan area
water barrier.
As you go from coast to coast in Canada from
Halifax-Dartmouth to Montreal-South Shore right
to Vancouver-North Vancouver, it is amazing how
many have a major water barrier dividing parts of
their metropolitan areas. Large bridges have been
required to overcome the water obstacles.
But imagine if, instead of crossing a bridge, you
could fly over the water anywhere, using a drone.
Obstacles are limited over the water, and those that
exist can be identified and avoided. Travel by drone
is possible not only across a river, but also along a
river or water barrier. Imagine the potential for intracity travel if you could use the existing water network
as your highway.
Even cities that do not have obvious water pathways
within their limits, like Toronto, could use them for
broader urban travel. Lake Ontario would allow a
Toronto to Hamilton route, or a drone could fly from
Montreal to Quebec City over the St Lawrence.
In addition to local deliveries, there are some interesting potential long-distance applications in Canada,
particularly for business-to-business logistics. But to
take full advantage of these, you have to first reinvent
what you mean by a ‘logistics drone’. The drones
being popularly discussed lately are those used in
modern military applications. These, however, are
severely limited in their payload capacity.
Most people forget that the first commercial airline
in revenue service did not use fixed-wing aircraft but
rather relied on rigid airships popularly called the
Zeppelin, for their German inventor. These have an
interesting application in Canada’s far north where
there are no roads except winter ice roads. The big
advantage is they can be scaled up to handle large
payloads of both weight and cubic volume. If global
warming is the way of the future, maybe these ‘airship’ drones will be the logistics vehicles of the future.
Certainly there are a lot of mines that can use them
for critical shipments like spare parts and maybe even
for outbound shipments.
Another supply chain drone application is enhanced
management control and security in larger facilities.
This is an expansion of the old management technique
of “management by walking around” on a larger scale.
An example is large transport yards for operations
like identifying trailers and placing them in open
positions.
Perimeter security for large manufacturing and
warehouse facilities is another drone application.
They can cover a wider area and use sensing technology like infra red, which means the bad guys cannot
use the cover of darkness to hide.
These examples only scratch the surface of logistics
application for drones. Which ones are commercialized first will be interesting to watch.
MM&D
Dave Luton is a consultant in the greater Toronto
area. [email protected]
14-02-12 12:19 PM
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and on-time delivery?
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for the long term?
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Vancouver – 604-235-1695
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14-02-12 10:35 AM
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