Canadian Sailings OnLine

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December 13, = 2007

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<= IMG=20 height=3D30 alt=3D"Transportation = Employment"=20 = src=3D"mhtml:http://infoshare/Marketing/Marketing Files/News Article = Archives/071217_Canadian Sailings OnLine - = Article.mht!http://www.canadiansailings.com/images/cs-left-nav14a.gif"=20 width=3D140 border=3D0 = name=3Djobs>

Multimodal/Logistics=20

Conference=20 unveils some of the latest technological=20 partnerships

Greater supply chain=20 integration essential to compete globally=20

By JACK = KOHANE

December 17, 2007=20

North American business could be heading = towards the=20 perfect storm as the surge toward globalization = begins=20 to rock enterprises shifting to international=20 operations, according to a panellist at the 5th = Annual=20 Symposium on Supply Chain Management recently = held in=20 Toronto.

Organizations vying for a larger slice of the = burgeoning global marketplace could be in for a = rough=20 ride as international competition builds, = according to=20 Tom Comstock, senior vice-president of product=20 management for Apriso Corporation. The = California-based=20 company provides adaptive software platforms for = manufacturing operations.

"The move to global manufacturing is a stark = reality=20 now for enterprises," he told about 100 = logistics=20 professionals from the public and private = sectors.=20 "Companies are shifting their supply chains and = moving=20 manufacturing plants =96 and moving them again = =96 to seize=20 advantages in costs or to drive faster = production."

Penetrating global markets through efficient = and=20 effective supply chain management was the = central theme=20 of this year's symposium. Speakers explained = that it=20 boiled down to getting the right goods and = services to a=20 market at the right time, in the proper = quantity, and at=20 acceptable costs.

Sponsored by the Purchasing Management = Association of=20 Canada (PMAC), the event zeroed in on ways to = enhance=20 interactions among supply chain management = practitioners=20 and researchers. Topping the agenda: = best-in-class=20 supply chain practices; innovations in = technological=20 products; and developing winning strategies to = improve=20 competitiveness.

Mr. Comstock's message focused on a "no = company is an=20 island" scenario. Successfully navigating = through a=20 perfect storm requires dealing with typically = higher=20 product variability. It also means handling = increasingly=20 disseminated operations. An average global = manufacturer=20 now has more than 20 of its own manufacturing = sites,=20 while also managing about 40 contract = manufacturing=20 relationships.

Other challenges include shrinking time = frames to=20 manage inventory levels, and never-ending price=20 pressures.

All of this requires a real team effort. = "CEOs faced=20 with increasing demands to improve shareholder = value=20 need a best-in-class solution for managing their = global=20 supply chain networks," Mr. Comstock said. "As = they=20 source products from lower cost producers around = the=20 world and sell products in diverse global = markets, the=20 reality is that the complexity factor in = managing supply=20 chains rises exponentially."

Overseeing shipments and other key events = needs to=20 extend across a network of partners, not just a = plant.=20 "The complication is that you need to be agile = under a=20 model where you have less direct control," Mr. = Comstock=20 explained. Many enterprises have initially used=20 visibility approaches but so far these have not = been=20 successful.

Today's global manufacturers need a new = generation of=20 manufacturing executive systems (MES) that = measure and=20 control critical production activities for = increased=20 traceability, productivity, and quality, he = said.=20 They're designed to address the local needs of = each=20 plant while allowing for the standardization of = plant=20 data that feeds accurately and automatically = throughout=20 a company and up the chain to the enterprise = resource=20 and planning (ERP) system.

"Manufacturers need to drive quality on the = plant=20 floor," Mr. Comstock added. "For the = best-in-class=20 companies, this means being able to develop the = best=20 practices of centres of excellence and then = deploy those=20 practices anywhere."

Apriso's software uses a business process = management=20 engine that can model and co-ordinate events = within=20 plants or among partners. "You can model the = whole=20 process and manage it on an exception basis all = the way=20 from a third-tier materials supplier to final = shipments=20 to retailers," Mr. Comstock noted.

Dave Shen, a senior manager with the global=20 management consulting firm Accenture, also = emphasized=20 the importance of establishing partnerships to = develop a=20 dynamic logistics approach.

"High-performing businesses know they must = adapt=20 their supply chains based on the demand = characteristics=20 of the mix of products/channels they serve =96 = ultimately=20 benefiting the customer and enabling growth," he = stated.=20 "To succeed in today's competitive marketplace, = market=20 leaders capitalize on their innovative supply = chain as a=20 true competitive advantage."

With no one form of supply chain fitting all, = Mr.=20 Shen recommended that companies incorporate a = customized=20 logistics strategy into their business plan. = "That's key=20 to supply chain mastery," he said. "This = involves=20 developing an end-to-end, integrated operating = model;=20 adopting leading-edge practices and = technologies;=20 executing effectively against defined goals and = metrics;=20 making strategic in-source/out-source decisions; = and,=20 developing effective linkages with existing = partners and=20 forming strategic partnerships with new = ones."

High-performance businesses have = customer-centric=20 supply chains to fuel profitable growth. = "Partnering in=20 your supply chain fuels growth," Mr. Shen = emphasized.=20 "It also helps achieve new levels of mastery = that=20 improves a company's ability to adapt and = proactively=20 change, position itself for flexible operations, = and=20 mitigate operational risk."

Ron Lutka, founder and president of the = Corporate=20 Streamlining Company Inc. and author of Black = Holes in=20 Organizations, said black holes within = organizations can=20 present serious impediments to cementing = partnerships=20 and increasing business.

He warned that organizational black holes can = cause=20 severe internal damage by sucking up valuable = resources,=20 including human energy, time, materials, and = money.

"A black hole results in destruction within = an=20 organization, whether in the form of undesirable = activity or a lack of desirable activity," he=20 elaborated. "Management may or may not even be = aware of=20 the destruction."

Continually entering the wrong sales tax = codes, for=20 example, can result in upset customers, wasted = time, and=20 hefty penalties. Failure to reconcile balance = sheets can=20 lead to expensive restatements. Late deliveries = can lead=20 to nasty lawsuits. Improper processing of = returns can=20 bankrupt a company.

"It is indifference to simple yet essential = basic=20 actives that allows these failures to occur," he = said.=20 "These small repetitive failures, in volume, = harm=20 organizations and can lead to larger = problems."

Mr. Lutka has developed a Corporate = Streamlining=20 Technology to identify and eradicate = organizational=20 black holes. Accompanied by an intensive = instructional=20 course, the program does so by acting like a = spider=20 going through every thread of a company to = locate=20 organizational malfunctions and disconnects.

Purolator Courier president and CEO Robert = Johnson=20 praised the conference as a forum for advancing = the art=20 and science of supply chain management. "And = advance it=20 must as the international world of commerce = moves to=20 streamline processes and maximize resources and=20 returns," he said.

With an estimated $1.3 billion in sales, = Purolator=20 picks up and delivers approximately 275 million = pieces=20 of freight annually. (About 70 per cent is = manufactured=20 goods; the rest is documents.) To service its = thousands=20 of customers, Purolator has more than 3,500 = delivery=20 vehicles, 800 highway trailers and 15 chartered = aircraft=20 moving between 275 operations and shipping = centres. Its=20 Customer Contact Centres field about 35,000 = calls=20 daily.

Purolator would not have become one of = Canada's=20 biggest courier enterprises without massive = investments=20 in the latest proven technology to benefit = customers,=20 Mr. Johnson said. "We know that our technology = partners=20 and their solutions have to be best-of-breed, = real-world=20 technology because we cannot and will not risk = our=20 customers becoming guinea pigs on new technology = that=20 looks great on paper but doesn't actually exist=20 anywhere."

Highlighting trust, flexibility and = collaboration as=20 the intangibles of any enterprising partnership, = Mr.=20 Johnson cited Purolator's new electronic = ordering and=20 tracking service for shipments as one example. = E-Ship=20 offers a single-source in-house connection for = all of a=20 company's shipping needs. Its wide platform is = designed=20 to add features as needed.

"This is a huge example of trust =96 on both = sides =96 in=20 that this Purolator shipping system actually = resides on=20 a customer's Intranet, eliminating the need to = connect=20 to the web to track a package," Mr. Johnson=20 explained.

Being imbedded in a customer's infrastructure = means=20 Purolator effectively becomes part of their = operations=20 and part of their supply chain. Customers have = the=20 ability to automatically adjust the level of = service to=20 meet their needs by stockpiling inventory with = shipping=20 documents and labels already in place for = pick-up at a=20 future date. They can also select the service = that will=20 get their shipments delivered as quickly as=20 possible.

The key element in this seamless integration = is a=20 full sharing of information, Mr. Johnson = emphasized.=20 Everyone has access to the same information, = resulting=20 in greater consistency, greater control and a = tighter=20 partnership with no surprises.

"It's now easier for us to do business, but = far more=20 importantly from a strategic perspective, it = will be=20 easier for our customers to do business with us = and,=20 most importantly to them, with their customers," = he=20 said.

Other stories featured = in=20 "Multimodal/Logistics":

[ Women=20 in Logistics national initiative: Leadership = key for=20 supply chain expert Angela Mondou ]
[ U.S.=20 university signs working agreement with = Logistics=20 Institute ]
[ Cargo=20 Canada takes flight ]
[ Montreal=20 airport boss appointed to world council ] =
[ CN=20 offers potash distributor a deal at Prince = Rupert=20 ]=20 =

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December 13, 2007

Multimodal/Logistics

Conference unveils some of the latest technological partnerships

Greater supply chain integration essential to compete globally

By JACK KOHANE

December 17, 2007

North American business could be heading towards the perfect storm as the surge toward globalization begins to rock enterprises shifting to international operations, according to a panellist at the 5th Annual Symposium on Supply Chain Management recently held in Toronto.

Organizations vying for a larger slice of the burgeoning global marketplace could be in for a rough ride as international competition builds, according to Tom Comstock, senior vice-president of product management for Apriso Corporation. The California-based company provides adaptive software platforms for manufacturing operations.

"The move to global manufacturing is a stark reality now for enterprises," he told about 100 logistics professionals from the public and private sectors. "Companies are shifting their supply chains and moving manufacturing plants � and moving them again � to seize advantages in costs or to drive faster production."

Penetrating global markets through efficient and effective supply chain management was the central theme of this year's symposium. Speakers explained that it boiled down to getting the right goods and services to a market at the right time, in the proper quantity, and at acceptable costs.

Sponsored by the Purchasing Management Association of Canada (PMAC), the event zeroed in on ways to enhance interactions among supply chain management practitioners and researchers. Topping the agenda: best-in-class supply chain practices; innovations in technological products; and developing winning strategies to improve competitiveness.

Mr. Comstock's message focused on a "no company is an island" scenario. Successfully navigating through a perfect storm requires dealing with typically higher product variability. It also means handling increasingly disseminated operations. An average global manufacturer now has more than 20 of its own manufacturing sites, while also managing about 40 contract manufacturing relationships.

Other challenges include shrinking time frames to manage inventory levels, and never-ending price pressures.

All of this requires a real team effort. "CEOs faced with increasing demands to improve shareholder value need a best-in-class solution for managing their global supply chain networks," Mr. Comstock said. "As they source products from lower cost producers around the world and sell products in diverse global markets, the reality is that the complexity factor in managing supply chains rises exponentially."

Overseeing shipments and other key events needs to extend across a network of partners, not just a plant. "The complication is that you need to be agile under a model where you have less direct control," Mr. Comstock explained. Many enterprises have initially used visibility approaches but so far these have not been successful.

Today's global manufacturers need a new generation of manufacturing executive systems (MES) that measure and control critical production activities for increased traceability, productivity, and quality, he said. They're designed to address the local needs of each plant while allowing for the standardization of plant data that feeds accurately and automatically throughout a company and up the chain to the enterprise resource and planning (ERP) system.

"Manufacturers need to drive quality on the plant floor," Mr. Comstock added. "For the best-in-class companies, this means being able to develop the best practices of centres of excellence and then deploy those practices anywhere."

Apriso's software uses a business process management engine that can model and co-ordinate events within plants or among partners. "You can model the whole process and manage it on an exception basis all the way from a third-tier materials supplier to final shipments to retailers," Mr. Comstock noted.

Dave Shen, a senior manager with the global management consulting firm Accenture, also emphasized the importance of establishing partnerships to develop a dynamic logistics approach.

"High-performing businesses know they must adapt their supply chains based on the demand characteristics of the mix of products/channels they serve � ultimately benefiting the customer and enabling growth," he stated. "To succeed in today's competitive marketplace, market leaders capitalize on their innovative supply chain as a true competitive advantage."

With no one form of supply chain fitting all, Mr. Shen recommended that companies incorporate a customized logistics strategy into their business plan. "That's key to supply chain mastery," he said. "This involves developing an end-to-end, integrated operating model; adopting leading-edge practices and technologies; executing effectively against defined goals and metrics; making strategic in-source/out-source decisions; and, developing effective linkages with existing partners and forming strategic partnerships with new ones."

High-performance businesses have customer-centric supply chains to fuel profitable growth. "Partnering in your supply chain fuels growth," Mr. Shen emphasized. "It also helps achieve new levels of mastery that improves a company's ability to adapt and proactively change, position itself for flexible operations, and mitigate operational risk."

Ron Lutka, founder and president of the Corporate Streamlining Company Inc. and author of Black Holes in Organizations, said black holes within organizations can present serious impediments to cementing partnerships and increasing business.

He warned that organizational black holes can cause severe internal damage by sucking up valuable resources, including human energy, time, materials, and money.

"A black hole results in destruction within an organization, whether in the form of undesirable activity or a lack of desirable activity," he elaborated. "Management may or may not even be aware of the destruction."

Continually entering the wrong sales tax codes, for example, can result in upset customers, wasted time, and hefty penalties. Failure to reconcile balance sheets can lead to expensive restatements. Late deliveries can lead to nasty lawsuits. Improper processing of returns can bankrupt a company.

"It is indifference to simple yet essential basic actives that allows these failures to occur," he said. "These small repetitive failures, in volume, harm organizations and can lead to larger problems."

Mr. Lutka has developed a Corporate Streamlining Technology to identify and eradicate organizational black holes. Accompanied by an intensive instructional course, the program does so by acting like a spider going through every thread of a company to locate organizational malfunctions and disconnects.

Purolator Courier president and CEO Robert Johnson praised the conference as a forum for advancing the art and science of supply chain management. "And advance it must as the international world of commerce moves to streamline processes and maximize resources and returns," he said.

With an estimated $1.3 billion in sales, Purolator picks up and delivers approximately 275 million pieces of freight annually. (About 70 per cent is manufactured goods; the rest is documents.) To service its thousands of customers, Purolator has more than 3,500 delivery vehicles, 800 highway trailers and 15 chartered aircraft moving between 275 operations and shipping centres. Its Customer Contact Centres field about 35,000 calls daily.

Purolator would not have become one of Canada's biggest courier enterprises without massive investments in the latest proven technology to benefit customers, Mr. Johnson said. "We know that our technology partners and their solutions have to be best-of-breed, real-world technology because we cannot and will not risk our customers becoming guinea pigs on new technology that looks great on paper but doesn't actually exist anywhere."

Highlighting trust, flexibility and collaboration as the intangibles of any enterprising partnership, Mr. Johnson cited Purolator's new electronic ordering and tracking service for shipments as one example. E-Ship offers a single-source in-house connection for all of a company's shipping needs. Its wide platform is designed to add features as needed.

"This is a huge example of trust � on both sides � in that this Purolator shipping system actually resides on a customer's Intranet, eliminating the need to connect to the web to track a package," Mr. Johnson explained.

Being imbedded in a customer's infrastructure means Purolator effectively becomes part of their operations and part of their supply chain. Customers have the ability to automatically adjust the level of service to meet their needs by stockpiling inventory with shipping documents and labels already in place for pick-up at a future date. They can also select the service that will get their shipments delivered as quickly as possible.

The key element in this seamless integration is a full sharing of information, Mr. Johnson emphasized. Everyone has access to the same information, resulting in greater consistency, greater control and a tighter partnership with no surprises.

"It's now easier for us to do business, but far more importantly from a strategic perspective, it will be easier for our customers to do business with us and, most importantly to them, with their customers," he said.

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