Ceo Qa2010 11

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Published by
Released February 2011
3PL CEO Q&As 2011
Strategies for the New Reality
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Contents
9th 3PL Summit & Chief Supply Chain Ocer Forum .......................................................................................................... 3
Introduction ............................................................................................................................................................................................. 4
CEO Interviews
John Williford, President, Global Supply Chain Solutions and
Greg Swienton, Chairman and CEO of Ryder System, Ryder ............................................................................................. 5
Hermann Ude, CEO, DHL Global Forwarding & Freight ....................................................................................................... 7
Craig Simon, President & CEO, FedEX SCS .................................................................................................................................. 8
Heiner Murmann, President & CEO, Schenker Inc ................................................................................................................ 10
Joey Carnes, Chairman & CEO, MIQ Global .............................................................................................................................. 11
Andy Smith, President and Chief Operating Ocer, Kenco Logistic Services ........................................................ 13
Robert Giord, EVP Global Logistics, Ingram Micro Logistics ........................................................................................ 15
Jeremy Davidson, Managing Director, NYK Logistics ......................................................................................................... 17
William J Wascher, President & CEO, SEKO Worldwide ....................................................................................................... 18
Lucas Kuehner, MD, Panalpina USA ............................................................................................................................................. 20
Sam Polako, President, TBB Global Logistics ....................................................................................................................... 21
Karl Meyer, CEO, 3PD Inc ................................................................................................................................................................... 22
Christopher Connor, Deputy CEO, Wallenius Wilhelmsen Logistics ............................................................................ 24
Paul Little, CEO, Toll Holdings ........................................................................................................................................................ 25
Dick Kane, CEO, Kane is Able .......................................................................................................................................................... 26
Daniel Kirk, CEO, Big Dog Logistics ............................................................................................................................................. 27
Dan Sanker, CEO, Casestack ............................................................................................................................................................ 28
Ken Hazen, President & CEO, CTSI-Global ................................................................................................................................ 30
About eyefortransport ..................................................................................................................................................................... 31
2
Interested in the views and strategies of 3PL CEOs and the Heads of supply chain from their biggest customers?
Attend the:
9th 3PL Summit & Chief Supply Chain Ocer Forum
June 21-23rd, 2011 Hilton Hotel, Atlanta
The Worlds largest event for 3PL providers & users Exploit industry mega-trends to fortify key
relationships and maximize prot
The 3PL Summit co-located with the Chief Supply Chain Ocer Forum will reveal how you can adapt your business to meet the
requirements of the new economic era, drive renewed growth and gain market share.
Learn how the worlds most prominent 3PLs are positioning themselves in a time of growth, change, and erce competition. Discover the
real needs of your most desired customers, how they expect to be sold to, and how to build a protable longterm relationships with them.
Visit www.3PLsummit.com for more information and to book your place alongside these executives:
Supply Chain Executives Speaking include:
John Welling, VP Supply Chain Innovation of Wal-Mart
Nick Blaway, SVP Supply Chain of Feeding America
Cheryl Brown, VP Global Operations & Supply Chain of Hewlett-Packard
Brian Watson, Head of Global Supply Chain of Lonza
Dennis Omano, SVP Worldwide Supply Chain, Manufacturing, Facilities of McAfee
Kevin Wrenn, SVP PC Business and Product Operations of Fujitsu Microelectronics
Alejandro Enciso, VP Supply Chain of Baxter
Reese Delorey, VP Global Supply Chain Management of Lockheed Martin
John B. Sorci, VP Global Operations of Symantec
Steve Sigrist, VP Supply Chain - Walmart Division of Newell Rubbermaid
Steve Shelley, SVP Supply Chain Management of Schreiber Foods
Phil Hendricks, VP Supply Chain Americas of Gambro
John Macksood, VP Logistics & Network Planning of Dominos Pizza
Frank Diaz, SVP Distribution & Logistics of PriceSmart
Owen Mitchell, Global Head of Procurement of Pearson
David Beddingeld, VP Supply Chain Management of Meyer Sound Labs
Tim Riordan, VP Supply Chain of Interface
George Kavorkian, VP Supply Chain Operations of Oce Depot
Wendy Kleefeld, VP Supply Management of ARCOP (Arbys)
Rob Bourriague, VP Operations of Slam Brands
Tom Dadmun, VP Supply Chain Management of Adtran
Marcel Frielinck, VP Global Equipment Supply Chain of Xerox
Jill Marcotte, Chief Supply Chain Ocer of Dealer Tire
Dave Presley, VP Supply Chain of REI
Christopher Smith, Director of Supply Chain Planning of Shure
Charles W Kantz, VP Logistics & Warehousing of Bakers Footwear
Scott Degroot, Director of Supply Chain Strategy of KimberlyClark
Brian McClure, Director of Global Procurement & Supply Chain of MeadWestvaco
Tim Fullick, Director National Operations of Brother International
Mani Janakiram, Director of Supply Chain Strategy of Intel
Oswaldo Salazar, Director of Strategic Sourcing & Supply Chain of Winn-Dixie Stores
Contact Charlie Howard on 1800 814 3459 ex. 7506 or choward@eft.com for more information or to book,
including group bookings
3
Senior 3PL Executives include:
Craig Simon, CEO of FedEx SCS
Heiner Murmann, CEO USA of DB Schenker
Leo Suggs, CEO of Greatwide Logistics
Jack Holmes, President of UPS Freight
Matt Ryan, President Americas of CEVA Logistics
Kazuo Ishizuka, CEO of NYK Logistics
Scott McWilliams, CEO of OHL
Tom Sanderson, CEO of Transplace
Art Smuck, President of GENCO-ATC
Gerald Perritt, COO of UTi Integrated Logistics
Peter Knapp, President of International Logistics of
Jacobson Companies
Robert Giord, EVP Global Logistics of Ingram
Micro Logistics
Dennis Schoemehl, CEO of LMS Logistics
John Ferguson, CEO of SCI Group
Dick Kane, CEO of Kane is Able
John Wagner, President of Wagner Industries
Ron Cain, CEO of TMSi
Nikhil Sathe, CFO of Kelron Logistics
Register quoting QA2011
and save an extra $100 if
booked before March 1st on
www.3PLsummit.com
For more free industry resources visit www.eft.com For more free industry resources visit www.eft.com
Introduction
2011 is a year of great promise and signicant
uncertainty for the 3PL industry, and all those
who depend on and work with 3PLs. For the CEOs
of these companies, this means confronting a new reality in the
economy, in the needs of their customers, and in the mind-set of
their own workforce.
Developing a leadership strategy to not only cope with but also
strive within this new reality is paramount. In this series of executive
interviews, we asked the CEOs a set of questions designed to
reveal the key strategies they are using to confront this tumultuous
market. For some it is an opportunity, for all it is a new test of
leadership ability.
The aim of the interviews is to shed light on the fundamental
business strategies that CEOs are using and which can be applied
to careers and businesses across the industry: ways of nding
opportunity in times of change, leading a team in a hard-to-predict
economic environment, and adding value and enhancing a career
in one of the most challenging eras for 3PLs and all foundation
businesses.
The interviews with these 18 executives represent the views of the
CEOs of some of the largest 3PLs in the industry. They reveal the
personal views, fears and key business philosophies of key industry
players, and focus as much on past performance as future strategy.
In this second edition of the series, we focus on industry challenges
and mega-trends: the game-changing issues that we all face, the
lack of infrastructure investment and how we can tackle it, the ways
the 3PL industry can and should promote itself and its value, the
ght against commoditization, the advantages of various ownership
structures, and what question they would ask of fellow CEOs. The
answers are sometimes surprising, sometimes humorous, and
always revealing of the men behind the brands.
We hope you nd the interviews useful, and encourage you to share
them with your colleagues and industry contacts who may also
benet from the insight herein.
For more information on the interviews, our 3PL Summits in Atlanta
and Antwerp (where 3PL CEOs and key customers gather and
speak), or any questions, please contact me on the details below. A
brief description of eyefortransport follows the interviews.
Katharine OReilly
Executive Director
eyefortransport
Tel: +44 207 375 7207 / 1800 814 3459 ex.7207
Fax: +44 207 375 7511/ 1800 814 3460
email: koreilly@eft.com
web: www.eft.com
4
As a CEO, what do you see as your three biggest challenges over
the next couple of years?
Greg Swienton: The rst thing I see as a challenge will be our ability
to eectively and successfully accelerate organic growth. To help
us achieve this we will be focusing on improved customer service,
continuous improvement in our operations, and innovation in new
product development to help generate new business. The second
challenge will be people and leadership development. This means
ensuring we have the bench strength to meet the long-term needs
of our business and cultivating future leaders. The third biggest
challenge will be making sure that we are accurately assessing the
general economic environment for the right timing to make asset
investments.
Where do you see the biggest opportunities for 3PLs?
Greg Swienton: The biggest opportunity is for continued
penetration of large organizations that are already leveraging
the expertise of a third party provider. In addition, there is
great opportunity for expansion into smaller and medium sized
companies who have yet to realize the value of logistics outsourcing
in todays complex and costly environment.
Do you feel the industry needs more or smarter investment
in transportation infrastructure? Is enough being done to
demonstrate the importance of these improvements to an
industry like logistics, which underpins the economy?
Greg Swienton: Yes, the U.S. needs both more and smarter
investments in transportation infrastructure. Not only is this an
area that could have yielded great stimulus returns, it is a critical
foundation that will be necessary for this country to compete in
the global marketplace. Its extremely important that leaders in
our industry allocate time to work with the government to address
challenges we are facing with infrastructure from the ports to the
roads to the intermodal connectors. The U.S. infrastructure is not
getting the attention it needs to deal with the amount of commerce
that is owing through the country. We are facing gridlock in most
of our major cities because of lack of investment in infrastructure.
We have to continue to create awareness and lobby our legislators
to address this issue.
Some recent ad campaigns have drawn attention to the ways
logistics providers promote themselves. What more do you
believe should be done to promote the LSP industry?
John Williford: 3PLs need to be clearer about the value we can
provide. Theres a history of 3PLs saying they can pretty much do
anything and do it better than customers. This is probably as much
a strategic issue as it is an advertising issue.
Our recent market survey found that both 3PLs and their
customers feel that relationships have taken a step back from
strategic partnership towards commodity services in the
aftermath of the recession. How do you ensure that strategic
relationships are maintained in a very competitive and price-
driven market?
John Williford: Customers want to see new ideas that deliver value.
When you do that, your relationship is usually pretty good. When
you dont, thats when you probably complain that your customer
doesnt treat you as a partner.
John Williford
President, Global Supply Chain Solutions
Greg Swienton
Chairman and CEO
Ryder
www.ryder.com
Gregory T. Swienton is Chairman and Chief Executive Ocer of
Ryder System, Inc. Mr. Swienton joined Ryder in June 1999 as
President and Chief Operating Ocer, a position he held until
becoming President and Chief Executive Ocer in November
2000. A member of Ryders board of directors since June 1999, Mr.
Swienton was named its chairman in May 2002. Prior to joining
Ryder, Mr. Swienton was Senior Vice President of Growth Initiatives
at Burlington Northern Santa Fe Corporation (BNSF).
John H. Williford is President, Supply Chain Solutions for Ryder
System, Inc. A member of Ryders Executive Leadership Team, he
is responsible for management, operations, sales and marketing,
and the nancial performance of Ryders Supply Chain Solutions
and Dedicated Contract Carriage business segments. Mr. Williford
joined Ryder from Golden Gate Logistics LLC in Palo Alto, California,
where he held the position of President, Chief Executive Ocer and
Founder. Before forming Golden Gate Logistics, Williford was the
Founder, President and Chief Executive Ocer of Menlo Worldwide.
What is your growth strategy in the next year, and how will you
distinguish yourself from competitors?
John Williford: At Ryder, were working on two main things.
First, were challenging ourselves to push execution to the point
where Ryder is clearly dierentiated. For example, weve added
a signicant number of Lean Six Sigma resources. Weve also
developed a Lean template for all of our DCs. This is a new,
exciting approach to warehousing that weve applied across all of
our locations and industry groups; it gets our people involved in
nding creative solutions to cut lead time, increase ll rates and
continuously improve the operation. Second, were developing new,
specialized services in each of our key industry groups: Automotive,
Hi-tech/Electronics, Retail/CPG & Industrial. For example, for the
Retail industry, we recently announced new services for Purchase
Order management and Consolidation in Asia.
Describe the one most important strategy decision that you
have made in the last 18 months?
John Williford: Getting our vertical industry groups to work as
strategic business units that use deep expertise in that industry to
develop specialized services that create more value for customers.
5
6
Do you feel that environmental sustainability capabilities have
the potential to be a key dierentiator, and will customers really
put this ahead of price?
Greg Swienton: The potential is there when the environmental
benets also yield bottom line returns. I dont think we are at a place
yet, at least in the U.S., where environmental capabilities will be a
top priority for most customers when it comes to the supply chain
decision process. The capabilities are important, and with tougher
regulations, often required. But coming out of an extremely dicult
economy, businesses have to ensure they make the most of every
dollar spent. When they have a choice, a great majority of customers
are not yet willing to make the additional nancial investments
to pay for environmental preferences. For those who are willing
and able to do so, Ryder has a breadth of environmentally-sound
equipment and solutions to help drive both operational eciencies
and emissions/energy reduction.
How is your ownership structure an advantage for your future
growth?
Greg Swienton: Ryders structure has a number of benets. As a
large, publicly held company with rearmed strong credit ratings,
we have great access to capital. In periods of growth, this is an
important advantage. Another advantage is the fact that Ryder,
in addition to having a Supply Chain Solutions business, also has a
Fleet Management Solutions division. We have an underleveraged
balance sheet and can actually accelerate investment due to the
support that comes from our balance sheet.
DHL is logistics where others claim to love logistics!
driven market?
There have always been both needs in the market. Some customers
only want to leverage the buying power of a Forwarder where
others seek advice and operational support. DHL is happy to provide
both.
In consumer oriented markets you see the need for greener, better
documented supply chains evolving fast. Deutsche Post DHL was
the rst logistics provider to set itself a target to increase its carbon
eciency by 30% by 2020 and 10% by 2012. We have the product
portfolio to achieve the target through mode management, better
carrier management and innovative services.
growth?
Our shareholders have always supported us to work eciently
on our strategic agenda. At the same time, we have a very solid
nancial basis.
What question would you ask other CEOs of 3PLs?
Which of your customers are not satised and would want an oer
from DHL?
Hermann Ude
CEO
DHL Global Forwarding & Freight
www.dhl.com
Hermann Ude serves as the Chief Executive Ocer of DHL Global
Forwarding, Freight and has been a Member of the Deutsche Post
DHL Board of Management since March 2008. He joined Deutsche
Post AG in 1998. He was appointed CEO of DHL Freight in 2006.
Supply chain directors face increasing complexity more markets to
serve, more sales channels to satisfy and increasingly dierentiated
requirements within the various industries. On top of that,
regulatory and transparency requirements are becoming more
impactful. DHLs truly global network in combination with a very
deep understanding of its customers requirements and industries
makes it unique. This enables us to simplifying the lives of our
supply chain managers considerably and allows them to focus on
the creation of value in their respective markets.
During the economic crisis we stayed customer focused, in fact
we supported them on the cost challenges they were facing. At
the same time, we introduced a global performance improvement
program and together with our customers developed agendas to
improve along their pain points.
1. Fast-moving enterprises in a global economy need a partner that
takes the burden of complexity away from them this requires
even greater personal commitment from our team and even better
management tools.
2. Whether we like it or not: Greening logistics will be an imperative
for many years to come. Getting CO2 measured and having the right
instrument for optimization at hand will be critical.
3. The macro-economic environment remains unstable; nobody
knows exactly what will happen next and when it will happen thus
we have to stay exible...
Shippers are demanding solutions that are customized to their
specic needs or the needs of their industry. These services, the IT
features and the end2end view is what carriers and integrators can
not provide to the same extent as 3PLs.
I do not see a specic challenge or need there.
7
I see a number of challenges for FedEx SupplyChain. The rst is
lowering the cost to serve smaller customers, who increasingly
make up a larger share of the GDP each year. Often times, these
companies supply chains struggle to compete against their larger
counterparts strictly due to economies of scale. In our business,
where technology plays such a large role, small customers are
sometimes left out because the IT integration costs outweigh
the benets of change. We are working on ways to reduce these
integration costs to put small customers on the same playing eld
as larger ones.
Other challenges we will face include rising employee health
care costs, increasing energy costs and an uncertain regulatory
environment.
I think the constant change in the underlying playing eld oers
3PLs their greatest opportunity. Change may come from high
growth in a particular industry (such as medical devices) or from a
volume decline during a downturn (like industrial manufacturing).
Growth or decline means that manufacturers need to either expand
or shrink their supply chains. 3PLs are better suited to absorb this
supply chain dynamic because we serve multiple customers with
varying volume levels.
Change can also be in the form of new government regulations, like
the proposed general sales tax in India or the proposed changes
for transporting embedded lithium batteries in the U.S. The 3PLs
that develop the most eective solutions to their customers new
challenges will be the ones that gain the most.
Its obvious from the recent study released by the U.S. Chamber
that the nations transportation system is not keeping pace with
demand. This deteriorating infrastructure translates into the need
for more facilities, trucks, planes and employees all of which
increase the costs that 3PLs pass onto their customers. We continue
to join industry eorts to lobby Congress and the administration to
pass legislation to fund much-needed highway, transit and aviation
improvements so that we can begin to reverse this sizeable drag on
our economy.
Executives from the logistics industry need to consistently talk
to the market and relay relevant industry expertise. Through an
active dialog, logistics service providers will build condence and
awareness of logistics solutions. But that must be backed up by
awless execution on the part of logistics providers, because with
great execution comes customer satisfaction and loyalty and
concrete proof of how were making a dierence.
Craig Simon
President & CEO
FedEX SCS
www.fedex.com
Prior to his current position, Simon served as Vice President of
FedEx Solutions for FedEx Services. In this role, he led a team
of logistics and business consultants who worked with FedEx
Sales, Operations and Automation to design and execute supply
chain solutions tailored to each customers needs. Simons focus
included developing resources to create improved eciencies and
competitive advantages in the sales process.
Before joining FedEx in 1999, Simon was a business advisor
for Andersen Consulting, where he worked with Fortune 500
companies focusing on supply chain strategy development
and operations improvement eorts in the consumer products,
retail, food and high-tech industries. In addition, he developed a
successful health care information start-up company in the Silicon
Valley.
Simon earned two degrees from the University of Notre Dame,
including a Bachelor of Science in Mechanical Engineering and a
Bachelor of Arts in History. Simon is certied in production and
inventory management (CPIM) from the American Production and
Inventory Control Society (APICS). He and his family live in Memphis,
Tenn.
Our growth strategy is to continue to integrate existing FedEx
SupplyChain capabilities in North America, Europe and Asia with
new services in emerging markets. It is a natural tie-in with FedEx
Express, the worlds largest express transportation network. FedEx
Express connects more than 220 countries and territories, usually
within one to two business days door-to-door. Combining the FedEx
SupplyChain logistics network with the superior FedEx Express
transportation networks in these markets gives us an advantage
that cannot be easily matched. It not only makes sense, it is what
our customers are telling us they want and need.
Our strategic decisions during the last 18 months have supported
our belief that great companies can emerge from economic
downturns better than they were before. While we tightened our
belt to weather the reduced volume from some industry segments,
such as automotive, we also increased our investment in IT and
operational capacity in less aected markets like medical devices
and high-tech service parts. By doing so, we improved service to our
existing customers and added capabilities to attract new ones.
8
9
driven market?
Throughout the economic downturn, we never deviated from
our practice of forging and maintaining a strategic alliance with
every customer. If anything, we actually stepped up our eorts to
expand two-way dialogue with every customer and ensure that
were delivering the most value possible through regular business
reviews. We know that if we want to maximize each customers
return on investment, its imperative that we focus on continuous
improvement and search for ways to enhance their bottom line.
FedEx has long practiced practical environmentalism, using
innovation, collaboration and leadership to create environmental
benets that also have business benets. We believe that customers
overwhelmingly support our ongoing initiatives to reduce the
environmental impact of our daily business operations because
they share this commitment to sustainability and becoming more
responsible companies.
growth?
As part of the FedEx organization, we not only have access to
superior transportation networks worldwide, but we also benet
from our parent companys nancial strength as well. This access will
enable us to continue to help our customers expand into emerging
markets. It also provides us with the unique ability to integrate
across the FedEx organization to execute on solutions that meet the
evolving demands of our customers.
There is absolutely a need for signicant investment, not just in
traditional infrastructure, but in technologies and approaches that
will allow quantum improvements in eciencies, carbon emissions,
and product ow. Investments such as these will always be a
challenge due to their shear size and the limited understanding by
the public and Congress of the potential impact.
Basic informational strategies that demonstrate to the voting
public the tremendous impact and value of logistics issues to their
lives can go a long way over time in making the discussion
about infrastructure priorities more real and personal for them and
therefore, more important.
driven market?
In an environment such as we have recently experienced, managers
and companies are forced to focus more directly on cost savings
thus the pressure on pricing. We have been successful in enhancing
partnerships and collaborative behavior during this period precisely
because it is the most eective method of reducing total cost and
improving the service oering to the consumer. Our customers
have responded to this approach by honoring us with several
awards in recent months.
As is demonstrated by the number of people driving hybrid cars, the
installation of wind and solar energy elds, and the other choices
that consumers are making, sustainability is, and will increasingly
be, a key dierentiator. We are all responsible to each other for
the future of our communities and our environment and we can
frequently save money at the same time. Our company is deeply
committed on a global basis to oering sustainable solutions to our
customers.
growth?
Not having to answer to Wall Street for monthly and quarterly
earnings provides DB Schenker the opportunity to make sound,
long-term investments and economic decisions. We also have an
extremely solid capital backing to allow us to make investments
that are the right things for our customers businesses, but that they
cannot make for themselves. Our company has a growth strategy
that is supported by our parent with investment in key markets
around the world.
When do you get a chance to sleep?
Heiner Murmann
President & CEO
Schenker Inc
www.dbschenkerusa.com
Mr. Murmann has been President and CEO of Schenker, Inc. since
2003. He has responsibility for the entire DB Schenker Americas
region which includes North and South America.
He began his career with DB Schenker in 1990 as an international
trainee. After several corporate roles in Canada, he was named
President and CEO of Schenker Canada Limited in 1999.
Mr. Murmann has a B.A. from the University of British Columbia,
Vancouver, B.C. Canada. He is domiciled in Toronto and is married
with ve children.
Even as the supply chain industry has suered from signicantly
reduced volumes over the past eighteen months, DB Schenker has
aggressively invested in hiring people with specialized skills, IT
system improvements, and process enhancements.
We have refocused and restructured our North American domestic
transportation oering into a more integrated, cost-eective model
that meets the time-denite needs of todays shippers and allows
them to optimize their shipping more easily.
I hope that our most signicant challenge will be to keep up with
the growth in our business that we believe we will see. It is of
utmost importance to ensure that both our existing customers and
our new customers continue to receive world class service and an
ongoing focus on continuous improvement. On the transportation
side of the business, there will be increasing pressure on pricing
and capacity in ocean freight and domestic trucking. Finally, we will
be challenged by our customers, and theirs, to develop innovative
supply chain solutions that address their continually evolving
markets.
Our customers increasingly need to focus on their core businesses,
opening opportunity for 3PLs to expand to non-traditional functions
in a partnership environment.
10
1. Recognizing and responding to market conditions. We took a
very disciplined approach to our operations and expenditures as
we weathered the economic recession and recovery. Therefore, one
challenge we face will be maintaining that discipline as economic
conditions improve and our business grows.
2. Disciplined growth. As a growth company, our goal is not to grow
for growth sake but with purpose and vision. We are in a unique
position to model MIQ Logistics to meet the next generation
of supply chain challenges. Speed, exibility and reliability will
continue to drive changes in sourcing locations, technology
requirements and eciencies. MIQ Logistics is not burdened with
a legacy structure, which enables us to be much more exible and
responsive to embracing change.
3. Managing changes in capacity - both internationally and
domestically. As everyone knows, there have been dramatic
changes in capacity over the last couple of years. Moving forward
there are a number of dynamics that will come into play that have
the potential of impacting the ow of cargo: 1) volume increases,
even a modest increase has the opportunity to outpace available
cargo space; 2) material shifts in sourcing; 3) the potential shifts
in trade-lane volumes due to the decline/shifts of military moves
which currently provide balance in many international lanes.
Ill speak for MIQ Logistics and say we see the biggest opportunities
are: 1) increased activity with existing customers; 2) participating
in growth markets, i.e. India, China, and Latin America; 3) meeting
industry and customer requirements by providing innovative and
repeatable solutions to drive improvements in their supply chains.
Necessity continues to be the mother of invention. For example,
at screen TVs and smaller technology products are requiring a
change in packaging handling to reduce damage. We will continue
to focus on long-term relationships with our customers, which lead
to a better understanding of their business and the identication of
additional ways we can improve supply chain performance through
our portfolio of services.
When referring to transportation infrastructure, we commonly
think of roads, bridges, etc. While improvements in these areas are
warranted, from our point of view the bigger issue is the growing
gap in U.S. port technology, congestion and costs, when compared
to Asian and European ports. U.S. labor work rules and lagging
port throughput automation are adding costs to supply chains and
gradually placing U.S. companies at a competitive disadvantage.
Joey Carnes
Chairman & CEO
MIQ Logistics
www.miq.com
As chairman and chief executive ocer of MIQ Logistics, Joseph
L. Carnes is responsible for the overall global performance of
the company. MIQ Logistics specializes in international freight
forwarding, customs brokerage, transportation management,
truckload services and dedicated warehouse and fulllment services
in North America, Latin America, Europe and Asia. Along with a
global network partners, it provides services in and between more
than 80 countries supported by over 5,000 in-country logistics
professionals. Carnes joined the company at the time of its
acquisition in 2010.
Before coming to MIQ Logistics, Carnes was president and CEO of
BAX Global Inc., a $3 billion global supply chain company with over
15,000 employees. He joined BAX in 1999 as president U.S. and
Canada, and played an integral part in transforming the company
into one of the leading supply chain providers in the industry.
With the companys sale to Deutsche Bahn AG in 2006, Carnes
was responsible for overseeing the integration of BAX Global and
Schenker AG with a specic focus on customer integration and
network capabilities.
Our primary strategy will be to continue to grow organically by
expanding our relationships with our existing account base. The
recession and subsequent sluggish recovery has created challenges
for our customers, resulting in them turning to MIQ Logistics for
creative supply chain solutions to help drive eciencies. We will
continue our strategy of seeking to rst understand our customers
needs, then develop the right solutions utilizing our broad portfolio
of services, and execute with reliability and accountability.
Without doubt, the most important development was taking
the company private by securing the right nancial partner. Our
partnership with Austin Ventures has given us the exibility and
nimbleness to better respond to our customers needs in the
evolving landscape of supply chains.
11
The risk with advertising is oversimplication of the challenges
in global commerce and misperceptions about the commitment
necessary to design and execute meaningful solutions. However,
I do believe in the business proverb that a rising tide lifts all boats.
Through brand advertising we are raising awareness of the role of
logistics in aecting bottom line results. With this awareness, we
are already seeing more attention given to the study, analysis and
application of supply chain management principles and techniques
at business schools and industry conferences.
driven market?
To the contrary, we feel our relationships with customers have
helped us weather the economic recession. Certainly, to compete
with others in the industry, we must be cost competitive and push
for operational eciencies. At the same time, customers must be
able to rely on their partners and trust that their partners will do the
right things for their business. Therefore, for MIQ Logistics, its not a
question of either/or. We must continue to strengthen our customer
relationships and we must remain cost competitive.
This is another question that doesnt have an either/or answer.
Today, environmental sustainability is a standard part of any
business opportunity. Customers are requiring their service
providers to help them meet their own company green initiatives.
Fortunately, we have delivered green solutions since the inception
of our organization. We do this by providing customers with more
ecient ways to manage their supply chains optimizing routes,
optimizing capacity as well as by supporting environmental
sustainability initiatives. We select carriers which comply with
emission standards, we are an EPA SmartWay member, we are
recipients of the SmartWay Environmental Excellence Award and we
still deliver bottom-line results for our customers.
growth?
Being private and having a strong partner in Austin Ventures
allows MIQ Logistics more exibility to focus on longer term
initiatives versus putting so much of our focus on each quarter.
Austin Ventures have been active investors in the supply chain and
logistics area for over 25 years and take a long-term perspective
to their investments. As a result, we have the nancial backing
and ownership structure to be more nimble and exible in the
marketplace and also in quickly responding to customer needs.
What nancial and economic indicators are they using to forecast
the future? The last several years have eliminated history as being a
good indicator of the future. What keeps me, and I trust others, up at
night is how and where to deploy our capital resources. Obviously,
staying closely aligned to customers needs is a big part of the
equation, but I believe they too are looking for help in dealing with
the impact that changes in demographics, the impact of emerging
markets, and the increased costs and threats of security measures
are and will continue to have on the design and execution of their
supply chains.
12
Andy Smith
President and Chief Operating Ocer
Kenco Logistic Services
www.kencogroup.com
Andy Smith is President and COO of Kenco Logistic Services, LLC,
Kenco Transportation Services, LLC. He has been in the logistics
and warehousing industry since 1989. He assumed the role of
COO in 2004 and added the President title in January 2008. Andy
joined KENCO in 1999 as Director of Sales and Marketing until his
promotion to Vice President of Operations in 2000. In his current
role as President and COO, Andy has overall responsibility for the
corporate management of all facilities. His key responsibilities
include corporate direction for customer and employee
communication, development and implementation of a quality
system, and the nancial success of the logistics operations. He is
responsible for managing 25(+/-) million square feet of warehouse
space, approximately 4,000 associates, and 100+ buildings across 30
states.
Prior to joining Kenco, Andy held positions with Philips Consumer
Electronic and Harrison Fulllment Services, where he primarily
focused on cost containment, decisive team leadership, excellent
customer service, inbound sales center management, and the
establishment and maintenance of a positive and success-oriented
workplace. While at Kenco, he developed an activity based costing
and work measurement productivity program that is being used as
the Best Practice for all Kenco sites to control costs and associate
productivity.
Andy holds a BS degree in Management from The University
of Tennessee at Chattanooga. Active in the industry, Andy is a
member of the Council of Supply Chain Management Professionals
(CSCMP), the Warehousing Education and Research Council (WERC),
the International Warehouse Logistics Association (IWLA), and
participates in the University of Tennessee Supply Chain Forum.
Kenco will intensify its focus on what has always set it apart:
developing new ways to streamline our existing customers supply
chain; creating a smart approach to their evolving challenges; and
selecting prospects that t our strategic strengths. Weve never just
stayed putwere always nding a new process that addresses
whatever the economic climate.
For years, Kenco has been committed to 6 Sigma, but we have also
adopted Lean as our driving principle. Lean brings value to our
customers by fully engaging each and every one of our associates in
the continuous improvement process.
1) Rising healthcare costs
2) More trucking regulation
- CSA 20l0, anectlng many carrlers, natlonwlde. Preparedness ls
crucial.
- Potentlal Hours of Servlce changes. There ls already a drlver
shortage. Economic growth and less hours to drive per day will
extend that shortage and mandate a network redesign.
3) Increased transportation costs
- Puel cost
- Drlver shortage
- Decreased system capaclty
The biggest opportunity is to combine the integration of
incremental improvements with system-level improvements. It is
dicult to maintain gains on an individual line level, so sustainable
continuous improvement relies on delivering both types of
innovation and improvementincremental and systemic. The
second opportunity is coordination across silos to leverage the
benet of each supply chain component.
Another opportunity is to maintain employee loyalty while
containing or lowering costs in an increasingly challenging
environment. Employee performance is a key factor in achieving
customer satisfaction and retention. Developing new ways of
compensating their dedication and motivation will be critical.
Yes, I agree that Government policy should provide for a long-term
and forward-thinking funding process to ensure improvement of
our transportation infrastructure. The current yearly appropriations
patchwork is not sucient to develop long-term investment
planning by infrastructure builders. The quality of our road, bridge,
rail, water and air assets determine the eciency of the U.S. supply
chain which deserves more emphasis from the State and Federal
governments, as well as the private sector.
Continuing to work with CEOs and CFOs to demonstrate the value
of a robust supply chain which enhances product value while
improving the customers competitive advantage.
13
driven market?
Kenco continues to build its reputation as a trusted partner that
is more than a tactical provider. We are working with customers
to transition to a vested outsourcing model as developed by the
University of Tennessee and the United Stated Air Force. Vested
outsourcing creates a win-win relationship. It supports setting
quantiable objectives, creating well dened contracts, and
developing incentives to balance the risks and rewards of supplier
innovation.
We feel that sustainability must focus on social, environmental and
economic aspects to succeed. Sustainability is a dierentiator, but
will rarely trump price and service.
growth?
We are privately held and we invest in operational excellence. We
are not pressed to report quarterly earnings or meet private equity
rm requirements.
What is the ownership structure and long-term investment strategy
for your company?
14
A key opportunity is in becoming a strategic partner for our
customers, helping them become more successful and protable.
Our market research indicates that customers want more than an
outsourcing relationship with 3PLs; they want a business partner
that fully understands their business and market, providing
solutions that contribute to their success. To meet these needs,
we are enhancing customer engagement through specialized
account professionals, while continually investing in systems
and infrastructure to make our supply chain more ecient and
productive.
Ingram Micro Logistics is unique, as it has the infrastructure and
nancial support of the worlds largest technology distributor as
its parent company. Our ve advanced logistics centers (ALCs) in
the US can serve all markets of the country typically within a 2-day
ground transportation window, so transportation challenges are
relatively minor. The transportation infrastructure in the US is
superior to most parts of the world but it will need to be maintained
and improved if the US is to maintain and advantage in this area.
Promotional eorts by some of the industrys largest companies
create a halo eect by educating the market about the benets of
logistics. This benets the smaller players and others that are unable
to invest in advertising and promotion. I welcome the attempts to
build awareness.
driven market?
Our goal is to be fully aligned with our customers business models
and needs, ensuring that we contribute to their success. Our
services have evolved over the years, expanding from classic pick,
pack and ship in the early days to specialized customization, such
as industry-specic capabilities, made-to-order packaging and gift
wrap. We also expanded beyond our core technology niche to serve
a greater variety of accounts in retail, toys and specialty businesses,
oering them access to the world-class logistics developed for
the demanding technology market. The alignment with our
customers needs and markets, combined with greater exibility and
customization, help us mitigate the risk of commoditization.
Robert Giord
EVP Global Logistics
Ingram Micro Logistics
www.im-logistics.com
Robert Giord serves as executive vice president, global logistics
of Ingram Micro Inc. Based at the companys headquarters in Santa
Ana, Calif., Giord has comprehensive responsibility and oversight
for all elements of the companys distribution centers and supply-
chain operations throughout the world, including the Ingram Micro
Logistics fee-for-service business unit. He joined the company in
June 2010.
Giord has more than 30 years of experience in operations and
supply-chain leadership. Most recently, he served as senior vice
president, global supply chain for Ecolab Inc., a Fortune 500
manufacturer and distributor serving the hospitality, institutional
and industrial markets. He led all aspects of the companys
supply chain globally, optimizing 37 manufacturing plants and
84 distribution sites, while integrating dozens of acquisitions
during his six-year tenure. Prior to Ecolab, Giord was the vice
president of worldwide logistics for the Hewlett-Packard Company,
where he was responsible for more than $2 billion in logistics
operations encompassing everything from contracts to compliance
to vendor selection and transportation. He joined HP following
the 2002 acquisition of Compaq, where he spent seven years in
manufacturing and supply-chain management. Giord holds an
MBA from Texas A&M University and earned a bachelors of science
degree in manufacturing management with a minor in industrial
technology from San Jose State University.
Our Ingram Micro Logistics business, which is the 3PL subsidiary
of Ingram Micro Inc., is planning for a year of solid growth. This
growth will be generated by dual paths: greater penetration
into our existing technology and e-commerce markets; and
expanding beyond our roots into new verticals in which our unique
capabilities provide a competitive advantage. A key dierentiator
from competitors is the strength of the parent company, which is
the worlds largest technology distributor. Ingram Micro Inc. has
30 years of experience, serves nearly 200,000 customers and has
generated more than $30 billion in revenues during the last 12
months.
For the Ingram Micro Logistics business, a key strategy decision
was expanding internationally earlier this year. The subsidiary has
been operating in North America for more than 10 years and we
believe that this experience, along with the broad capabilities of our
global infrastructure, provide unique value to existing and potential
customers.
The most signicant challenges are often related to the worlds
economies and business demand. Beyond the macro-economy,
my focus is on creating a high-quality, yet ecient, supply chain.
As a result, the three signicant challenges often fall into the broad
categories of demand, investment and eciency.
15
We believe that sustainability capabilities can indeed be a
dierentiator. For us it is a deeply held belief that to conduct our
operations in the most sustainable way possible is the right way to
do business. We also know that many of our large customers and
suppliers require a measurable focus on sustainability, governance
and social responsibility, with a disciplined process for reporting and
monitoring progress. Those unable to comply may lose valuable
partnerships, which may have a negative impact on the ability to
compete. In addition, a commitment to sustainability could also
be a valuable marketing tool when targeting environmentally-
conscience partners. There will be some customers who place
sustainability ahead of price, but it is premature to measure the
nancial impact of this attitude at this time.
growth?
The strength of Ingram Micro is an advantage, as it provides a solid
nancial foundation and a compelling value proposition in terms
of experience, capabilities and breadth. Ingram Micro Logistics has
the support of a Fortune-100 company that serves hundreds of
thousands of customers in nearly 100 countries, with more than 30
years of experience that sends a powerful message.
What keeps you up at night?
16
driven market?
To remain close to ones customers, to share their objectives for cost
reduction and higher services levels and to be proactive in nding
solutions.
Not until the Western economies genuinely emerge from recession
and people feel more secure about jobs and growth.
growth?
We believe that there is a benet in being a pure play quoted
logistics company closely associated with a major provider of
shipping and air freight services. It should be able to attract capital
more easily and motive sta.
How can we really improve returns on capital employed in contract
logistics?
Jeremy Davidson
Managing Director
NYK Logistics
www.nyklogistics.com
Jeremy Davidson joined the NYK Group 1990 with a brief to develop
a Logistics Division from scratch where he has been Deputy
Managing Director for Europe for over 10 years. Prior to NYK he
was Director of Business Development at Christian Salvesen and
held various management positions in the Agribusiness and Fine
Chemical industries in South America and Europe. He holds an MBA
from INSEAD and qualied originally as a Biochemist.
NYK recently announced its decision to combine all logistics and
global forwarding activities into a single quoted entity Yusen
Logistics. This step underpins the Group strategy to seek growth
by exploiting its strong global network by oering the full menu of
integrated services.
To downsize warehousing-based business and expand in
international forwarding.
Improve revenue growth and protability in Europe; Maintain cost-
competitiveness; Follow our customers into the growing markets in
E Europe and Central Asia.
International forwarding and logistics - particularly China and SE
Asia.
There have been important infrastructure investments over the past
15 years in Continental Europe that have benetted the logistics
industry. It is now the turn of Eastern Europe to do likewise.
As a business-to-business activity, it is important for the industry to
connect with the public at large by emphasizing its commitment to
environmental responsibility, lower carbon footprints and the social
usefulness of what it does.
17
1. Leveraging the signicant investment in information technology
capabilities that have proven to dierentiate SEKO from many
competitors in order to generate a return on investment.
2. Increasing the talent level throughout the organization through
acquisition, retention and development of our human resources.
People are the key. A great strategy means nothing without talented
and motivated people to execute and follow through. Were
committed to developing our talent at SEKO Worldwide to support
our vision of industry leadership.
3. Maintaining a customer focus in every position and at every
station within the organization. Hearing, understanding and
reacting to the voice of the customer will guarantee results at
SEKO. As companies experience growth, they tend to become
much more internally focused... focused on their needs, their issues,
their processes, etc., and the focus shifts away from the source of
their success, the customer. Being aligned with our customer is the
optimal position.
The biggest opportunity for 3PLs is leveraging their ability to
provide customized solutions especially regarding unifying
transportation, supply chain and information technology. They have
the chance to impact the clients competitive position and balance
sheet through productive improvement.
3PLs have the unique capability of full supply chain visibility. If this
is optimized eectively through information technology and JIT
transportation solutions, it can allow us to assist clients in managing
costs through inventory management and asset reduction. Also,
companies that are staying on top of emerging markets create new
logistics challenges, and in turn, new opportunities for 3PLs.
This is a huge question U.S. infrastructure needs have changed
dramatically in the past 20 years because of the shift to oshore and
maquiladora manufacturing, and due to a shift in population centers
in the U.S. The capacity of our infrastructure to support measurable
economic growth is a concern. This was a big topic in the 2008
election, but not enough action, attention or resources have been
dedicated to our infrastructure since. Public education would be
useful. The ow of everyday materials and household products
from the manufacturer to the public is largely misunderstood. The
average citizen has little conception of the rail, highway, airport and
waterway infrastructure needed to support our daily lives.
The majority of the general public has no idea what the term
logistics really means. It is a long-term investment but awareness
and education about logistics begins with our young people. The
industry needs to be more actively engaged at the middle and
high school levels. Education and awareness via guest speakers,
literature, videos and even curriculum begin where people start to
consider career choices, and learn the way logistics impacts success
in business. This is how we can get the general public to understand
our industry and its value to our economy.
William J Wascher
President & CEO
SEKO Worldwide
www.sekologistics.com
Since joining SEKO in 1982 as director of accounting and IT, Wascher
has played an integral role in building the company from a single-
oce, Chicago freight forwarder to a highly respected, quarter-
billion dollar global logistics provider with 50 U.S.-based oces and
nearly the same number in 40 other countries. He also served as
SEKOs CFO before becoming president and CEO in 2002.
With a deep knowledge of the shipping industry and SEKO, Washer
has remained a champion of and visionary for SEKOs growth
through changed ownership, corporate culture and business
models. Wascher is driven by a personal commitment to SEKOs
strategic partners and employees and states one of his greatest
motivations is to succeed where others have failed. Prior to joining
SEKO, Wascher was assistant controller for Marina Bank, audit ocer
at the Bank of Elk Grove, business software consultant for United
Telecommunications and senior systems analyst for Admiral Home
Appliances.
There are four parts to SEKOs immediate growth strategy:
1. Account retention. We are energizing our focus on client needs
and developing customized solutions in order to exceed the
expectations of our current clients. Servicing those clients who have
already trusted SEKO with their business is the foundation to our
growth.
2. Were in the process of creating a world-class Global and National
Account sales team that will leverage the unique capabilities of
SEKO Worldwide. This team is our face and voice in the market and
has the task of driving a strategic sales eort. SEKO is making a solid
investment in our sales presence and our Strategic Partners support
it.
3. We plan for a strong dedicated launch in our dened vertical
markets, such as government, pharmaceuticals and medical
technology.
4. We will continue to aggressively expand into new markets as
opportunities dictate.
Fully committing our organization to a healthy growth strategy was
a very important strategy decision ensuring our prosperous future.
The concept of growing is easy to describe as a strategy decision,
but can be most dicult to execute. Committing to growth requires
eectively managing ongoing change throughout the company at
every level. It requires a signicant daily commitment.
18
driven market?
We make strategic relationships part of our culture at SEKOa
true relationship cannot be reduced to a buzzword or marketing
campaign, you have to live it. All relationships and partnerships
are driven and nurtured by the value they create for the parties
involved. Externally, this begins with the sales process where
client needs are properly dened and communicated. A proper
needs assessment with the client develops a stronger alignment,
which means greater value achievement, resulting in a stronger
relationship. Everyone is under tremendous pressure to save
money. You must quantify to a client the value you have created
so that it is recognized as real money. When value propositions are
converted to real dollars, pricing pressures are reduced.
In turn, our consultative sales approach assists in overcoming the
challenge of this mentality.
Environmental sustainability is smart business. Long term it helps
businesses reduce costs and improve competitiveness.
A customer will typically not put environmental sustainability ahead
of price. In the long-term, however, environmental sustainability
allows you to reduce your cost basis and your price to the client.
growth?
Our strategic partners are entrepreneurs and passionately focused
on their local markets. They are directly rewarded for building their
businesses. They dont have to wait on the boss to give them a
raise. They focus on their people, their clients, grow their business
and reap the rewards. This model attracts the most aggressive,
growth-oriented talent. Because our strategic partners are business
owners, they have a built-in enthusiasm for their clients and success.
Because of our ownership structure, we are surely in a position with
advantage for future growth.
What tools or processes do you utilize to assist you in being the
thought leader for your organization?
19
Expansion of infrastructure is a challenge for any developed country
(particularity interests, e.g. noise of planes versus airport expansion,
cost, etc.).
I am not sure that the industry as such needs to be promoted
further.
Each LSP has their own marketing concepts. Generally I nd LSPs
can improve further by focusing on what the customer is looking
for, rather than promote their service attributes.
driven market?
This is a development I personally cannot conrm for Panalpina in
the U.S. As a matter of fact, the recessionary pressure generally has
lead to a more strategic valuation of supply chain management
More and more customers require to see what we are doing
and how we can help them to continue to act environmentally
responsibly. We see signicant dierence between industries O&G
and healthcare are probably a few years ahead.
growth?
The fact that a controlling stake of our company is held by a
shareholder who puts long-term growth ahead of quarterly results
allows us to develop customer relationship by investing with a long-
term strategy in mind.
How have other CEOs adapted their strategy and business model
after the 2009 recession and freight cli. Why will these changes
prove successful in 2011?
Lucas Kuehner
MD
Panalpina USA
www.panalpina.com
Lucas Kuehner is Managing Director of Panalpina USA, with its
U.S. head oce in Morristown, NJ. Prior to this role Lucas was
head of Operations for Panalpina USA for three years. He held
various positions in process improvement and IT in the U.S. and at
Panalpinas global head oce in Basel, Switzerland, prior to that.
Lucas has an MSc in Logistics and SCM from Craneld University
(UK), and a BA in Business and Economics.
End-to-end solutions combining AFR / OFR / SCM capabilities with a
vertical industry sales approach / focus on key accounts with global
service needs.
Dierentiators: Leverage of our global network and local presence
/ unique combination of own controlled and commercial capacity
providing exibility and scalability.
Distinguishers from competition: Unique approach from supply
chain optimization through implementation (we have the
credentials of execution).
Dicult to boil it down to one decision, but I think key is our
continuous and gradual investment in sales and SCM as part of
our strategic focus of providing end-to-end solutions to our key
accounts.
1. Manage the company under a new reality of higher (freight)
volatility.
2. Resist margin pressure by providing value added services.
3. Continue to diversify our client portfolio.
Provide excellence in customer service as customers exercise choice
in who they work with.
3PLs need to enhance their customer relationships and make sure
they are seen as strategic business partners in the eyes of their most
valuable customers.
3PLs need to identify and act on opportunities to innovate and
safe cost for their customers. This requires specialization and an
excellent understanding of the customers business, as well as the
competitive and supplier environment.
20
I have long been a supporter of smarter investment in U.S.
transportation infrastructure. Until a paradigm shift occurs, the U.S.
will continue to nd itself in the position of repairing ancient roads
and bridges instead of investing in the future. Imagine a maglev
train carrying product to market faster and damage free in air-ride
mode. Ideas like this could set the U.S. apart as a world leader.
Perhaps general education as to its value to the everyday
consumer. If more people understood the industry, then our
elected representatives might feel compelled to make sure that all
appropriated tax dollars reach the intended purpose.
driven market?
We are sensitive to the needs of the customer to keep costs down
in a prolonged recessionary period. TBB strongly believes that
the commoditized relationship will prove to be short-term. We
work hard to understand the customers business objectives and a
variety of other key factors. This knowledge, imparted in a trusting
relationship, enables TBB to craft strategies that can be built and
managed over the long haul to help the customer succeed.
I do believe that environmental sustainability will make a denitive
mark on the industry. Every business has core values. For some, core
values will drive decisions in support of sustainability over price.
growth?
TBB is a privately held, third generation, family-owned company.
We are entirely non-asset based. TBB does not believe in a one
size ts all solution when using supply chain as a competitive
weapon as opposed to a series of managed cost centers. If we are
to truly design, build and manage supply chains to our customers
advantage, we must be unencumbered by physical assets with an
ROI oor. For these reasons, TBB feels that we are uniquely situated
to assist SME companies as they venture outside the comfort zone
of conducting business as normal, whether it be here in America or
around the world.
An intellectual exchange amongst peers is always a welcome
exercise. None of us has a crystal ball. The questions would need to
revolve around the future as we understand it through the eyes of
our customers.
Sam Polako
President
TBB Global Logistics
www.tbbgl.com
Samuel R. Polako is president and third-generation co-owner
of TBB Global Logistics (www.tbbgl.com). He has 35 years of
experience with the company, which his grandfather founded in
1946. Since joining TBB in 1975, Sam has played an integral role in
growing the company from 12 employees to a team of 100 that
provides total supply chain management services for small to
medium-size companies looking to strategically position themselves
for growth using supply chain as a competitive weapon.
For a 65-year-old company that specializes in helping the SME
customer, the answer is easy. TBBs value proposition provides that
continuous evolution will keep us in position to continue assisting
the SME customer with relevant supply chain technology and
strategy, all built to scale. TBB dierentiates itself and will grow
by designing, building and managing end-to-end supply chain
functions.
Engaging in the assessment process to position TBB as a supply
chain technology resource for the SME customer.
First and foremost would be staying in touch with the evolving
state of entrepreneurship in America. The new breed of American
entrepreneur will shift from the 40 something executive who, after
working 20 years for large company X, becomes disenchanted
with the rat race and risks everything to start his or her own
business. The new breed of entrepreneur will be young business
students coming right from the college classroom into the business
world. The second would be staying at the leading edge of new
technology and making sure we have the right mix to meet the
dynamic needs of our customers. Last but not least would be
wrapping our arms around the global marketplace in order to better
serve our customers. As the world gets smaller, SME customer will
need to seek opportunity outside the U.S. TBB continues to seek
new methods of serving client supply chain needs outside the U.S.
market.
Outsourcing will continue to be the land wherein miners seeking
gold nuggets go. The secret remains in which services will
be in demand and how to bring it all together in a seamless,
technologically advanced portfolio for the new entrepreneurs.
21
Many companies are coming out of the recession with initiatives
that have been put o for several years, and theyre going to be
anxious to get them implemented as soon as possible. In many
cases, theyll be able to implement their plans considerably faster
by using 3PLs, especially larger ones that already have facilities,
processes or personnel in place.
3PLs are also going to be highly useful to companies that need to
increase their shipping activity but are wary of making an extensive
capital or human resources commitment just yet.
And in this cost-conscious business world, any 3PL that can
demonstrate how it can help companies cut costs without
compromising quality is going to nd a very receptive audience.
I dont think theres a logistics professional out there who believes
our countrys current investment in infrastructure is adequate,
especially given the condition of our roadways, railways and other
transportation arteries.
Nearly half of our highways are already congested, and studies
show that this congestion costs the U.S. economy $78 billion
each year, including 4.2 billion lost hours and 2.9 billion gallons
of fuel. And the Federal Highway Administration (FHA) estimates
that congestion may increase trucking costs by anywhere from 20
percent to 250 percent per hour. Plus, approximately one-third of
our countrys major roadways are in poor condition, according to
the American Society of Civil Engineers, and that adds operating
costs of about $400 per truck per year.
Although theres been a fair amount of media attention being paid
to this issue in recent years, Im not sure the average taxpayer is fully
aware of just how much transportation aects his or her life and
why its important to make sure our country protects and expands
its transportation assets.
My background is in operations and engineering rather than
marketing, so Ill defer to CEOs with marketing backgrounds on this
question.
driven market?
First of all, I think we have to accept that some 3PL relationships will
always be price-driven. Its just the nature of the beast. But that
doesnt mean that an outsourcing logistics relationship inspired by
cost-cutting cant turn into something even more strategic. Were
always working hard to educate or remind our clients about the
importance of a strategic approach to their last-mile delivery and
to show them the values besides greater economy that we can bring
to the table.
Karl Meyer
CEO
3PD Inc
www.3pd.com
Karl Meyer is founder and chief executive ocer of 3PD, a $300
million company that is one of North Americas largest focused
delivery providers. As such, he has played an instrumental role in
making millions of deliveries for a range of retailers, manufacturers
and building supply companies. An engineer by training, he began
his logistics career on the shipper side, rst as a project manager
and then as corporate delivery manager for Home Depot. While
there, he played an instrumental role in helping Home Depot
transition its multi-billion delivery business from an in-house to
an outsourced delivery model. He holds a bachelors degree from
Embry-Riddle University.
After spending our rst 10 years establishing a market leadership
position in dedicated last-mile delivery and setting up the
industrys rst truly national service oering in that sector -- 3PD is
launching two additional last-mile service oerings. 3PDirect allows
companies to ship goods to any business location the in the lower
48 states on a pay-per-use, as-needed basis. And 3PDesktop oers
businesses the opportunity to use the same systems and processes
that our company employs on behalf of its delivery clients for use
within their own private eet operations.
As a result, well be able to leverage our technology platform, scale
and people to oer services (and last-mile excellence) to a much
broader market.
Regardless of which 3PD service shippers choose to use, our value
proposition includes our exclusive last-mile focus, our ability to
deliver nationally consistent services and our industry-leading
approach to customer service and quality assurance. Were the only
company out there providing real-time customer feedback and
same-day exceptions management, and we believe it goes a long
way towards helping our customers protect their brands and retain
their customers. Our tools and processes are truly dierentiators.
We made a deliberate decision to continue investing in and
developing innovative technologies and customer service
processes. I believe its a key reason why we managed to grow even
in a tough economy and why were now poised to claim a greater
share of the last-mile and logistics market as the economy recovers.
Gaining traction for our two new product oerings. Staying exible
and agile as we grow. And maintaining and improving the strong
value proposition we oer.
22
I dont think sustainability is going to be a dierentiator. I think
its going to be a requirement, because everyone is justiably
concerned with reducing carbon footprints, and the transportation
industrys is among the largest in the world.
And in terms of which will take precedence price or environmental
sensitivity - there are many cases where companies really dont
have to decide, because theres often a strong correlation between
environmental sensitivity and cost-eciency, so there are many
times when 3PLs can promote both. For example, weve developed
ways to help our customers signicantly reduce the number
of redeliveries they have to make by using a combination of
inexpensive pre-delivery reminders such as automated pre-calls,
e-mails and even text messages; we also use routing to help them
build more cost-eective deliveries. Both practices also reduce
carbon emissions.
growth?
When we formed 3PD Holding (the company that owns us) in
2006, it was the beginning of a highly productive relationship with
Arcapita, a multi-billion company with a strong commitment to
operational excellence.
Since then weve had the nancial and geographic latitude we
needed to build a national solution, establish industry-leading
processes and move our capabilities in new directions all of which
bode well for our future growth.
How can we help you integrate last-mile and specialty cartage into
your service oering?
23
Its always been our belief that our customers (auto and heavy
equipment manufacturers) should focus on design, manufacturing
and sales and leave the logistics of factory to dealer distribution to
a third party. Within that context signicant opportunity remains.
The logistics industry, and the transportation infrastructure that
underpins it, has historically been grossly underappreciated within
the U.S economy. Its a huge task to move the needle on this, but Im
hopeful that the tide could be staring to turn on this front.
A recent speech by John D. Porcari, Deputy Secretary of the U.S
Department of Transportation, has given me hope that we can make
progress on this enormously complex but crucial issue. Common
sense needs to trump politics, thus its encouraging to see leaders in
government, like Mr. Porcari, who understand how all the dots are
connected.
WWL is really a niche player in that we focus primarily on the
automobile and heavy equipment industries. We dont rely much
on advertising in a mass-market sense, but instead we direct our
energy towards nding integrated solutions to each customers
unique requirements.
driven market?
Listen and learn. Sense and respond. You can complain all you want
about the unfairness of the whims of your client or industry base,
but if you arent continually adapting you are in for a rough ride.
Yes. I believe that responsible companies will seek out and favor
transportation and logistics suppliers that prioritize and invest in
sustainable solutions.
growth?
Between our two owners, we have 225 years of commitment to
transportation and logistics activites. You could say that logistics
is in the soul of WWL. This puts building for the future at the
forefront of everything we do.
Christopher Connor
Deputy CEO
Wallenius Wilhelmsen Logistics
www.2wglobal.com
Connor joined Wallenius Lines in 1994 in the U.S. as vice president
of sales and marketing. When Wallenius Lines and Wilhelmsen Lines
formed Wallenius Wilhelmsen Logistics in July 1999, he was named
executive vice president of Region Americas.
Connor relocated to the companys global corporate headquarters
in the summer of 2001 and took up the position of head of the
Commercial division in August 2001. He became chief operating
ocer of the companys Ocean Services division in March 2002,
prior to being appointed president of Region Americas in 2004, and
CEO in 2010.
WWLS core strategy Factory to Dealer is in and of itself
a distinguishing factor versus our traditional ocean carrier
competition. That being said, growth in 2011 will occur in two ways:
1. Gain additional volumes over our current network by leveraging
the capabilities we have across the nished vehicle logistics
network.
2. Building out our network further (additional port- or plant-based
technical service centers and/or expansion of ocean-based trading
into new or emerging networks), in order to attract new volumes.
Expanding the scope of our Technical Services business to include,
not just automobiles, but also construction, mining and agricultural
equipment.
As the fog and mist from the global economic crisis continues to
clear, Im focused on:
1. People Do we have all the right people on the bus and is our
alignment as good as it needs to be in order to execute for success?
2. Economics The crisis has forced OEMs to really stay lean with
inventory levels. One impact of this occurs in our Technical Services
businesses. Reduced inventory means that income once earned
through storage agreements is mostly lost. Historically, storage
was a central ingredient of the economic model manufacturers
asked for it, and you had to have the capacity for it. If the Technical
Services business model is to remain viable in the longer-term,
this lost income needs to be re-introduced as part of Basic Services
charges. This is just one example of where the realities of the new
economy have changed the game.
3. Environment & Environmental Regulation There are signicant
regulatory changes looming with regard to emissions control areas
(ECAs) that will impact the ocean transport business. Its important
that carriers and shippers talk openly about these impacts, and
reach common ground on both the cost and service consequences
that these regulations will bring.
24
Without knowing the ad campaign you are referring to, your
question is too general. However, the signicant reduction in supply
chain inventories post GFC, coupled with the growing trend towards
a B to C solution, will signicantly change the way the industry
needs to promote itself.
Toll has realised the importance of brand and promoting ourselves
as one business since growing our operations outside of Australia.
We have recently embarked upon a rebrand initiative which will see
all of our businesses come together under the same brand and unite
as One Toll to our customers.
driven market?
Our experience has shown that where we are able to clearly add
value for a customer along their supply chain (strategic relationship)
there is far less risk of being commoditised.
Environmental sustainability is an ongoing issue for Toll. As a major
transport operator, we have a commitment to the communities in
which we operate.
This year we have publicly stated our commitment to the
environment through the launch of our Smarter Green program.
This will look at the Groups sustainability and identify smarter ways
of working. We hope this will cut our emissions and therefore save
money; costs savings which we hope to be able to pass on to our
customers.
I think customers will continue to look at price, service level and
innovation when selecting suppliers, but our environmental
awareness I hope will support us in being a point of dierence.
growth?
The public ownership structure of Toll has made it easier to obtain
funding needed to nance growth.
I believe the question that should always be asked of transport and
logistics companies is to clearly articulate their point of dierence,
in other words, their ability to add value, improve eciency and
therefore reduce costs for a customer.
Paul Little
CEO
Toll Holdings
www.toll.com.au
Mr Paul Little became Toll Holdings Managing Director in 1986,
when he was largely responsible for arranging the Management Buy
Out from Peko Wallsend Ltd.
Mr Little won the inaugural Trans-Tasman Business Leader Award
in 2005, the CA / Zurich Business Leader Award in 2002, and has
led a team that has achieved signicant growth for all Toll Holdings
shareholders since well prior to the Group listing in 1993. In 2008,
Mr Little was awarded the Doctor of Business honoris causa by RMIT
University.
In 2010, Mr Little was awarded an Ocer of the Order of Australia for
service to the development of the transport and logistics industries
and service to the community through philanthropic support of
sporting and medical research organisations.
Our strategy is to continue growing aggressively in our chosen
markets via M&A, organic growth and to optimise the opportunities
for outsourcing. Inside Toll, organic growth will typically grow at
twice GDP.
To continue our aggressive M&A growth strategy throughout the
GFC was a key strategic decision for the group.
1. To grow our various businesses oshore and by so doing,
increasing our capacity, networks and revenue outside of Australia.
2. Improving margins and returns in Australia to match the pre GFC
levels achieved by the group.
3. Lift the companys level of oshore shareholders, particularly in
key countries where Toll is growing quickly.
The companys biggest opportunities lie in fullling its strategic
global growth ambitions using Asia as our springboard.
We see signicant opportunities in the US that arent necessarily
contingent on further and smarter investment in infrastructure in
that country.
25
The biggest opportunity is in innovation and providing customers
with a transportation model of lowering their costs through
consolidation, better utilization of cube and reducing empty miles.
Reducing transportation expenses and carbon footprints through
collaboration among shippers.
The U.S. certainly needs improvements in the infrastructure
to improve the ow of goods throughout. Investment into
infrastructure in both roads and high-speed rail will be a wise
investment. Investment into the major ports to allow ecient
access for truck and rail will be critical in the years to come.
I believe the best way that Logistics Service Providers can promote
themselves is through positive results and incredible service. As a
service provider and it is our job to continue to deliver world-class
service while partnering with our customers and reducing costs.
Reputation is earned on a daily basis.
driven market?
It is incumbent upon providers to continue looking for ways to
add value throughout the entire supply chain. Providers need to
be focused from a customers perspective which requires subject
matter expertise going well beyond the four walls. Leading
customers as opposed to following or reacting is a mind-set change
which must be instilled.
Sustainability will be a very large dierentiator but not command a
premium. The provider that can demonstrate sustainability at the
same or better value will overwhelmingly secure the assignment in
a competitive environment.
growth?
Privately held companies are not subject to the Wall Street
pressures of quarterly protability and returns. Decisions can be
made in the best interest of the relationship and long-term outlook.
Being a family-owned, privately-held company, along with our rich
80 years history and strong positive culture with associated values,
allows us to be agile and exible. Decision-making processes always
put relationship needs rst.
What they feel is a fair rate of return for the services they provide
and how do they go to market to obtain that return.
Dick Kane
CEO
Kane is Able
www.kaneisable.com
Richard P. Kane is President and Chief Executive Ocer for Kane Is
Able, an award winning third party logistics provider. Dick has over
35 years of experience in operations with a tenacious commitment
to driving sales, prot and market share growth.
Dick is responsible for guiding the strategic direction of 12
corporate entities and maintaining full accountability for the P&L
for 18 distribution facilities totaling over 8.5 million square feet
located throughout the United States. Dick is an innovative leader
for an executive team and stang of over 1200 associates. He is
known for his ability to envision and create successful outcomes
in all key performance metrics (marketing, sales, nancial
management, operational management and customer service.) Mr.
Kane is a respected visionary with a solid reputation for leveraging
organizational competencies and creating a motivated, productive
work environment.
Dick graduated with a B.S. from The University of Scranton. Dick is
Chairman of the Board with Marywood University and is a Board
Member and past Chairperson for Penn & Northeast Regional
Railroad Authority. Dicks professional aliations include Kings
College Family Business Forum, Vistage International CEO Group,
Warehousing Educational Research Council (WERC), International
Warehouse Logistics Association (IWLA) and Council of Supply Chain
Management Professionals (CSCMP).
Our growth strategy is to continue to provide exceptional service,
quality, and consistency to our customers. To align our services to
support our customers in achieving their strategic goals. We focus
on continuous improvement, innovation, and driving costs out of
the supply chain. Our goal as a service-oriented solution provider
is to simplify our customers supply chain needs so they can focus
on their core business. Growth will be organic and very selective
acquisitions.
Responding to the market condition of the past two years, while
aggressively taking cost out of, not only our operations, but working
with customers to lower their costs through innovation and
productivity. Our decision to focus on the CPG sector has allowed
us to gain specic expertise and lead our customers to higher
value supply chain solutions. This decision brought focus to our
organization in hiring, selling, marketing, and systems expertise.
The three biggest challenges over the next couple years;
1. Continue to improve the level of innovation in our industry to
drive costs out of the supply chain
2. Cost-containment with the uncertainty of healthcare costs
3. Continue growth with expected returns in the current economic
environment
26
During the economic decline, many companies have approached
Big Dog to outsource their logistics and transportation needs with
a 3PL and 4PL service. 3PLs like Big Dog, who have build a solid
foundation and reputation, are can provide customers with reliable
transportation services which will decrease their costs and stang
commitments.
Yes, I think the U.S. must invest in repairing the existing
infrastructure and develop a long term plan to build an
infrastructure that can meet the ever increasing demand. If we
choose not to address this issue, our infrastructure will not be able
to keep up with demand in the future.
To promote our industry, we must be able to demonstrate its value
and stress the exibility and cost savings that a 3PL can provide to
its customer.
driven market?
As a leading 3PL, we see just the opposite with our customers. Our
customers recognize our ability to provide signicant cost and
overhead reductions to their bottom lines.
Environmental sustainability has become a reality in our industry.
Government will increasingly regulate the transportation industry
and customers will be forced to address this in their pricing strategy.
growth?
Big Dogs partnership ownership structure gives us the exibility to
address all our customer needs immediately, without a cumbersome
and rigid chain of command.
I am always curious and interested in other CEOs opinions on
industry consolidation due to the recession.
Daniel Kirk
CEO
Big Dog Logistics
www.bigdoglogistics.com
Daniel Kirk is the Chief Executive Ocer responsible for providing
strategic direction for all the Big Dog Group operating companies,
including Big Dog Logistics, Big Dog Airfreight, and Big Dog
Expedited. He is the co-founder of Big Dog Logistics and led
its expansion and transformation to Big Dog Group, Inc. Mr.
Kirk services as a member of the Board of Directors for FrogFire
Technologies, Inc. and Big Dog Express, Inc.
Mr. Kirk began his career in operations at Central Freight Lines in
Houston, TX. He held various positions in operations and sales for
18 years. Subsequently, Mr. Kirk became Vice-President of Sales for
Special Dispatch and eventually became the Vice-President of Sales
for all Freight Pool Distribution Services for US Deliveries.
Mr. Kirk has an Associates degree in International/Domestic
Transportation from The University of Houston.
Next year Big Dog Logistics will open additional locations with
partner companies to brand the Big Dog name. Currently the Big
Dog Logistics name and logo are a trusted and recognized name
in the logistics and 3PL communities. Our goal is to signicantly
increase our recognition throughout the United States and
internationally to a wider audience.
Big Dog has successfully distinguished itself in the competitive,
logistics industry by consistently exceeding our customers
expectations. We start with a basic model and build it up to
meet and surpass each of the customers requirements. This is
a continually evolving process and we stay on top of the ever
changing customers needs by training our sta to do whatever it
takes to keep the customers goals rst.
Our strategy during the last 18 months has been to hire additional
sta to capitalize on the trend of many companies who are
outsourcing their logistics and transportation.
We are committed to hiring qualied sta and perfecting our team
members logistics and customer service skills. Our team members
take ownership of a customers account and learn the subtle
points of their business. At Big Dog, we want to contribute to the
customers bottom line by providing timely and aordable service.
1. We plan to grow and expand the Big Dog business at a
manageable pace.
2. Meeting our customers service demands at the most aordable
price.
3. Maintaining a protable and growing company, as government
regulations and taxes increase.
27
This question is no small matter. We are competing globally for
our childrens futures; their livelihoods and our very way of life.
There are too many people that see the next decade as someone
elses, and they dont realize the implications of that attitude.
Leaders in business, academia, and government need to put aside
the squabbles, and they need to rebuild the country as though it
were an emergency. We need to work together to redevelop the
industries where we can compete, develop a sense of real urgency
about education and training, and redevelop the infrastructure and
technology we will need for the next 30 years. The next century
can be a sequel to the rst American Century. This is a global race;
its not a game. It is critical that we stay relevant and retain our
leadership position.
The emphasis should be placed on technology, collaboration and
transparency. But, this needs to occur in ways that are tied directly
to actionable, tactical, understandable, practical results. Campaigns
should be more about education than promotion; how can we work
together to deliver results that drive eciency and eectiveness.
We are an important part of the process that can allow customers
and their consumers to have more for less. And, right now, they
need more and they have less.
driven market?
That isnt what I hear from customers. We have been on a mission
to engage customers and partners in functional areas that will
make their supply chains better, cheaper and faster. We have tried
our best to use the slow-down to prepare for the future. We are
continuing to mix new technology with collaboration to prepare
for future growth. There are tech areas that seem esoteric, such
as social media, powerful hardware and mobile apps, data-to-
information, everything-as-a-service, multi-sided business models,
etc. They have fancy names that make them seem indecipherable,
but we are working with customers to make them translate into
better daily operations for real-life warehousing and transportation;
making things easier, less costly and taking service levels higher.
Dan Sanker
CEO
Casestack
ww2.casestack.com
Dan Sanker has a 24-year track record of growth in intensely
competitive industries, including consumer packaged goods,
business services and technology. He received an MBA from the
Anderson School at UCLA, and studied at the University of London,
IES in Vienna, and Kansai Gaidai University in Hirakata City, Japan.
He has been accredited by the UCLA Director Certication Program,
and he serves as a Board Member at the Center for Retailing
Excellence at the Sam Walton College of Business at the University of
Arkansas. Mr. Sanker initiated the industrys rst biodiesel program
and has been recognized as a Green Supply Chain Professional to
Know. Prior to founding CaseStack in 1999, Sanker held leadership
positions at Procter & Gamble, Nabisco, Deloitte, and KPMG.
During the upcoming years, CaseStack will continue to leverage its
competitive advantages which are based on technology-enabled
collaboration. CaseStack has developed the people, process
and technology to work with trading partners to reduce macro
eciencies in the overall supply chain. For example, CaseStack has
developed retailer-driven consolidation programs where retailers
create special orders that are designed to completely ll truckloads
of multi-vendor products. The results include lower transportation
costs, reduced fuel consumption, less greenhouse gas emissions and
almost zero damage rates. Retailers also enjoy less dock congestion,
reduced inventory and industry-leading on-time rates.
Over the past 18 months, the most signicant strategic decision we
made was to stick to our core strengths. We continued developing
new consolidation programs with retailers, and we fortied and
added to the robustness of our tech platform all with the advice
and assistance of our customers and partners. We made every
part of our business more scalable in preparation for the dramatic
growth that will occur as the economy returns. Ironically, we have
had the best two years of our corporate life at the same time.
The people, process and technology are everything. The challenge
is always the same: Find the best people for every function, so
they can take us to new highs; improve processes in collaboration
with trading partners to constantly reduce the cost structure while
improving service; and keep the ever-changing technology easy-to-
use on the front end and a fortress of eciency on the backend.
In addition, we must always nd and work with customers, carriers,
partners, retailers and others that understand the power of
collaboration.
The biggest opportunities are BETWEEN the companies; that is by
sharing, trusting each other and collaborating we can nd new,
better ways to take action that reduces costs and improves service.
28
Absolutely. We are working with many of the worlds leaders to
transition green opportunities into true sustainable business
practices (eg consolidation programs, biodiesel & natural gas usage,
packaging & process changes, etc.). Well often work with consumer
packaged goods companies to review their entire supply chains
to determine how to reduce the systemic costs in terms of dollars
and environmental impact. Sustainability technology is a perfect
match for CaseStack it is a new technology that rests on the basis
of tech and collaboration. True sustainability initiatives do not have
to put the environment ahead of price; that is an old paradigm. For
example, when we collaborate with retailers to combine multiple
suppliers orders, we signicantly reduce greenhouse gas emissions,
reduce transportation costs, and improve service. As an industry,
we havent tapped the surface of the opportunities. Sometimes
there are short-term costs to retool, but sustainable practices will
ultimately save money big money. In addition, I have seen rst-
hand the process analysis tends to drive organizations to much
higher quality practices.
growth?
We are big enough to have the resources that we need, but we
are small enough to be very nimble. Our executive team has
the complete support of large private equity groups, so we can
accomplish in days what we see other companies work on for
months.
How can we all collaborate for the good of our customers and
ultimately for consumers? That is; how can we leverage our
strengths jointly, so we can provide more cost-ecient services at
the highest possible service levels?
29
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Logistics moves the economy. No one denies the value of
transportation infrastructure, but the need for structural renovations
and innovations grows with the pace of transit and energy
technologies. For decades, the development of transportation
infrastructure for commercial use has gone hand-in-hand with
its development for public use, due in large part to investment in
the U.S. highway system. Recent investments in mass transit have
increasingly dierentiated transportation infrastructure between
commercial and public development. We must recognize the needs
of both.
LSPs should promote the process and results of logistics. Educating
the public on the specic functions of logistics can help consumers
choose the best solutions for them, rather than choosing a company
based on brand identity alone.
driven market?
To avoid commoditization, CTSI-Global asks questions about the
end use of data for strategic planning and spend management
throughout the supply chain. Because we provide value by reducing
our clients expenses, we are generally retained for other services
and projects.
Realistically, not everyone prioritizes going green over making
green. This is true for shippers and carriers as well as consumers.
Although not universally required, some markets demand
environmentally sustainable practices and are willing to pay extra
for them. These consumers appreciate the shippers and carriers that
commit to greener processes, for example, through partnerships
with the EPAs SmartWaySM Transport. Additionally, as innovations
in sustainability move benets beyond ecological impact to include
cost eciency, there will be greater demand among business
partners for environmentally sustainable supply chain processes.
growth?
As a privately held company, macro-level decisions can be
implemented eciently without worrying about quarterly earnings
reports.
What are your plans for technology advancements and global
expansion?
Ken Hazen
President & CEO
CTSI-Global
www.ctsi-global.com
J. Kenneth Ken Hazen is President and CEO of the global supply
chain solutions company CTSI-Global. Ken earned his B.B.A. from
the University of Memphis, and Memphis is home to the companys
global headquarters. He acquired CTSI-Global (then Continental
Trac Service, Inc.) in 1982; six years later, it was named to the Inc.
500 and has continued its leadership in industry innovation since.
Hazen is the co-author of two industry books including The Role of
Transportation in the Supply Chain.
By oering both a complete TMS suite of applications and full-
service freight bill audit and payment, CTSI-Global is in a perfect
position to assist companies with implementing and enforcing a
spend management program. With our Software-as-a-Service (SaaS)
model, implementation is complete in a matter of weeks. Providing
both TMS and FBA&P eliminates redundant processes and costs a
fraction of using two providers.
During the next several years, as the importance of Transportation
Management Systems becomes more apparent, demand will
increase for on-demand TMS. Supply chain managers will want
and require a system that will be readily available to them, and
providers will be forced to develop true real-time systems. To stay
on the cutting edge, CTSI-Global will continue to invest in the latest
technologies, improving processes and globalization to support all
our clients.
CTSI-Global has found alliance partners who complement
and expand our business oering. Weve also made many new
enhancements to our applications and platform for all modes of
transportation.
The three biggest challenges over the next couple of years
are continuing to expand TMS software and practices for our
international clients, nding additional employees with strong
logistics backgrounds and adding new oces in the U.S. and
globally.
The biggest opportunity for 3PLs is partnering with a supply chain
solutions company like CTSI-Global. Such a partnership would
provide a strategic advantage over competition by helping 3PLs
complement their existing operational strengths with a world-class
supply chain solution.
30
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31
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Interested in the views and strategies of 3PL CEOs and the Heads of supply chain from their biggest customers?
Attend the:
9th 3PL Summit & Chief Supply Chain Ocer Forum
June 21-23rd, 2011 Hilton Hotel, Atlanta
The Worlds largest event for 3PL providers & users Exploit industry mega-trends to fortify key
relationships and maximize prot
The 3PL Summit co-located with the Chief Supply Chain Ocer Forum will reveal how you can adapt your business to meet the
requirements of the new economic era, drive renewed growth and gain market share.
Learn how the worlds most prominent 3PLs are positioning themselves in a time of growth, change, and erce competition. Discover the
real needs of your most desired customers, how they expect to be sold to, and how to build a protable longterm relationships with them.
Visit www.3PLsummit.com for more information and to book your place alongside these executives:
Supply Chain Executives Speaking include:
John Welling, VP Supply Chain Innovation of Wal-Mart
Nick Blaway, SVP Supply Chain of Feeding America
Cheryl Brown, VP Global Operations & Supply Chain of Hewlett-Packard
Brian Watson, Head of Global Supply Chain of Lonza
Dennis Omano, SVP Worldwide Supply Chain, Manufacturing, Facilities of McAfee
Kevin Wrenn, SVP PC Business and Product Operations of Fujitsu Microelectronics
Alejandro Enciso, VP Supply Chain of Baxter
Reese Delorey, VP Global Supply Chain Management of Lockheed Martin
John B. Sorci, VP Global Operations of Symantec
Steve Sigrist, VP Supply Chain - Walmart Division of Newell Rubbermaid
Steve Shelley, SVP Supply Chain Management of Schreiber Foods
Phil Hendricks, VP Supply Chain Americas of Gambro
John Macksood, VP Logistics & Network Planning of Dominos Pizza
Frank Diaz, SVP Distribution & Logistics of PriceSmart
Owen Mitchell, Global Head of Procurement of Pearson
David Beddingeld, VP Supply Chain Management of Meyer Sound Labs
Tim Riordan, VP Supply Chain of Interface
George Kavorkian, VP Supply Chain Operations of Oce Depot
Wendy Kleefeld, VP Supply Management of ARCOP (Arbys)
Rob Bourriague, VP Operations of Slam Brands
Tom Dadmun, VP Supply Chain Management of Adtran
Marcel Frielinck, VP Global Equipment Supply Chain of Xerox
Jill Marcotte, Chief Supply Chain Ocer of Dealer Tire
Dave Presley, VP Supply Chain of REI
Christopher Smith, Director of Supply Chain Planning of Shure
Charles W Kantz, VP Logistics & Warehousing of Bakers Footwear
Scott Degroot, Director of Supply Chain Strategy of KimberlyClark
Brian McClure, Director of Global Procurement & Supply Chain of MeadWestvaco
Tim Fullick, Director National Operations of Brother International
Mani Janakiram, Director of Supply Chain Strategy of Intel
Oswaldo Salazar, Director of Strategic Sourcing & Supply Chain of Winn-Dixie Stores
Contact Charlie Howard on 1800 814 3459 ex. 7506 or choward@eft.com for more information or to book,
including group bookings
32
Senior 3PL Executives include:
Craig Simon, CEO of FedEx SCS
Heiner Murmann, CEO USA of DB Schenker
Leo Suggs, CEO of Greatwide Logistics
Jack Holmes, President of UPS Freight
Matt Ryan, President Americas of CEVA Logistics
Kazuo Ishizuka, CEO of NYK Logistics
Scott McWilliams, CEO of OHL
Tom Sanderson, CEO of Transplace
Art Smuck, President of GENCO-ATC
Gerald Perritt, COO of UTi Integrated Logistics
Peter Knapp, President of International Logistics of
Jacobson Companies
Robert Giord, EVP Global Logistics of Ingram
Micro Logistics
Dennis Schoemehl, CEO of LMS Logistics
John Ferguson, CEO of SCI Group
Dick Kane, CEO of Kane is Able
John Wagner, President of Wagner Industries
Ron Cain, CEO of TMSi
Nikhil Sathe, CFO of Kelron Logistics
Register quoting QA2011
and save an extra $100 if
booked before March 1st on
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Published by
Released July 2010
3PL CEO Interviews
Strategies for Leading Your Company
into the Recovery
For more free industry content visit www.eft.com For more free industry content visit www.eft.com
Contents
Introduction ............................................................................................................................................................................................. 2
8th European 3PL Summit & Chief Supply Chain Ocer Forum ..................................................................................... 3
CEO Interviews
Thomas Lieb, Chairman, DB Schenker ............................................................................................................................................ 4
Antony Francis, President, ATC Logistics & Electronics ............................................................................................................ 5
Craig Simon, President & CEO, FedEx Supply Chain ................................................................................................................... 6
Derek Leathers, COO, Werner Enterprises ..................................................................................................................................... 8
Eric Kirchner, CEO, UTi Worldwide .................................................................................................................................................... 9
Eric Wolfe, Vice President & General Manager, BNSF Logistics ................................................................................................ 10
Jim Eckler, President & CEO, SCI Group .......................................................................................................................................... 11
John Pattullo, CEO, Ceva Logistics ................................................................................................................................................. 12
Leo Suggs, Chairman of the Board and CEO, Greatwide Logistics ...................................................................................... 13
Rolf Habben-Jansen, CEO, Damco ................................................................................................................................................... 14
Cli Otto, President, Saddle Creek Corp ....................................................................................................................................... 15
Georey Bennett, President and CEO, Kelron Logistics .......................................................................................................... 16
About eyefortransport ..................................................................................................................................................................... 17
1
Interested in the views and strategies of 3PL CEOs and the Chief Supply Chain Ocers from their biggest customers?
Theres no better place to meet them, hear their latest insights and delve into the industrys biggest challenges than the
8th European 3PL Summit & Chief Supply Chain Ocer Forum
24-25 November, 2010 The Conrad, Brussels
The Europes largest event for 3PL Providers & Users Build the relationships that will accelerate your growth in the
economic upturn
The 3PL Summit will reveal how you can adapt your business to meet the requirements of the economic rebound, drive renewed growth and gain market
share.
Learn how the worlds most prominent 3PLs are positioning themselves in a time of growth, change, and erce competition.
And, learn how the heads of European supply chains are driving their companies towards recovery with the latest supply chain management strategies and
innovations in the co-located Chief Supply Chain Ocer Forum.
Book your place alongside these industry thought leaders:
3PL Summit Speakers:
John Pattullo, CEO of CEVA
Monika Ribar, CEO of Panalpina
Rolf Habben-Jansen, CEO of Damco
Beat Simon, CEO Europe of Agility
Rudi Roex, CEO of Ewals
Wolfgang Niessner, CEO of Gebrder Weiss
Mike Branigan, CEO of TDG
Christian Leysen, Chairman of Ahlers
Andrew Austin, CEO of Priority Freight
And many more!
Register quoting INT720 and save an extra 100 if booked before July 28th on www.3PLsummit.com/eu
Or contact Katharine OReilly on +44 (0)207 375 7207 or koreilly@eft.com with any questions or for more information
2
CSCO Forum Speakers:
Johan Jemdahl, Vice President Operations EMEA of Cisco
Ulf Harring, Head of Supply Chain of Electrolux
Jaro Caban, Group Supply Chain Director of AROVIT Petfood
Laurence Coudry, European Distribution Organization Supply Chain Director of
Johnson & Johnson
Johannes van Osta, General Manager Group Transport & Logistics of JCB
Excavators
Kris Van Ransbeek, Vice President Product Supply & Ingredients Business Europe
of Chiquita
Tjebbe Smit, Vice President Manufacturing & Logistics of Oce Technologies
Neil Spickett, Group Logistics Director, Eastern Europe of Carlsburg Breweries
David Picton, Supply Chain Operations Director of BskyB
Lars Kjrblling, Director, Strategic Projects - Global Distribution Logistics of
LEGO System A/S
For more free industry content visit www.eft.com For more free industry content visit www.eft.com For more free industry content visit www.eft.com For more free industry content visit www.eft.com
Introduction
The last 18 months have proved to be a time of
unprecedented challenges for the 3PL industry. For the
CEOs of these companies, this means confronting a market
in turmoil, a business environment with no precedent, and a workforce in
need of condent, realistic leadership.
In this series of executive interviews, we asked the CEOs a set of questions
designed to reveal the key strategies they used to approach what for many
is the biggest business challenge they have faced. For some it was an
opportunity, for all it was and is a test of their leadership ability.
The aim of the interviews is to shed insight on the fundamental business
strategies that CEOs used and which can be applied to careers and
businesses across the industry: ways of nding opportunity in dicult
times, leading a team through a harsh economic environment, adding value
and enhancing a career in one of the most dicult eras for 3PLs and all
foundation businesses.
The twelve interviews represent the CEOs of some of the largest 3PLs in
the industry, and represent a unique insight into their personal views, fears
and business philosophies. The focus is not just on the last few months of
business, but future challenges and opportunities that these leaders, their
companies and the wider market will face. We discuss customer satisfaction,
business innovation, the shape of the rebound, future growth strategy, and
what distinguished their approach to the economic recovery and rebound.
The theme that runs throughout what turn out to be very dierent
responses is the idea of discovering the opportunity within a dicult
business atmosphere. This approach, in all its incarnations, is a lesson that
will resound with executives in all parts of the industry and at every level,
and which can add as much value in a time of economic upsurge as it can in
a downturn.
We hope you nd the interviews useful, and encourage you to share them
with your colleagues and industry contacts who may also benet from the
insight herein.
For more information on the interviews, our 3PL Summits in Atlanta and
Brussels (where 3PL CEOs gather and speak), or any questions, please contact
me on the details below. A brief description of eyefortransport follows the
interviews.
Katharine OReilly
Senior Vice President - Research
eyefortransport
toll free: 1800 814 3459 ext.7207
direct: +44 (0)207 375 7207
email: koreilly@eft.com
web: www.eft.com
3
We see the biggest opportunities for 3PLs in emerging markets that are
currently not serviced by those organisations. In addition to that there will
be tremendous growth opportunities for green solutions.
It seems that all major companies are trying to better
understand supply chain risks and strategies for mitigating
risks. How can a 3PL provide its customers with greater
awareness of risks and the means for their mitigation?
Only 3PLs have the full supply chain visibility, which enables them to lower
risks of all players within this value chain. The information necessary for the
nished product seller can be tracked directly from the raw material supplier.
This quality is backed by the IT-excellence throughout the whole supply
chain, which only 3PLs possess.
What are signicant value generators that 3PLs services and IT
capabilities provide that may be especially magnied during
economic downturns and the start of rebounds?
Due to this supply chain visibility, 3PL provides are able to measure
downturn at very early stage. We saw shrinking growth since November
2007. This information is key for all participants in the supply chain.
Our recent market survey found that shippers as a whole are not
satised with their LSPs innovation. In what areas are customers
seeking innovation?
Our customers are asking for increased transparency in supply chains,
multi-modal solutions and individualization of products. We are working
intensely on those topics and have launched recent solutions such as our
Integrated Cargo Management Tool, which is a state-of-the-art Purchase
Order Management Software.
For certain key industries we have developed industry solutions, which
exactly cater the needs of that market (e.g. in semicon/solar sector, aeroparts,
automotive, etc.)
What shape do you expect the rebound to take [V, W, U, L,
(square-root shaped)]?
Can economic developments described in a character? I believe that we are
in an upturn, with several push-backs on the way. This increases the need for
exibility.
Excluding yours, what company do you admire most, and why?
For all managers those organizations act as a role model, which are
constantly drive innovation and are able to manage their capacities best and
according to the market conditions.
Thomas Lieb
Chairman
DB Schenker
www.dbschenker.com
Dr. Thomas C. Lieb, born in Reutlingen, Germany, in 1958, studied business
economics. After graduating he obtained his Ph.D. at the Institut fr
Verkehrsbetriebslehre und Logistik (Institute of Transport and Logistics
Studies) of the University of Mannheim.
In 1989 he joined Stinnes AG, Mlheim an der Ruhr, as an assistant to the
Board. At the beginning of 1993 he moved to the Air and Sea Freight
business unit at Schenker and was appointed to the Board of Directors of the
newly established Schenker International Deutschland GmbH, Kelsterbach,
in 1994. In November 1998 he became the Regional Manager for Europe/
Africa/Near and Middle East at the Head Oce of Schenker AG, Essen. On
1 February 2001 Dr. Thomas C. Lieb was appointed to the Management
Board of Schenker AG, where he is responsible for the global Air/Ocean
Freight activities of the group, as well as for Trade Fairs. He also has regional
responsibility for the operational business in the Americas and APAC regions.
With eect from July 1st, 2008, he has assumed the chairmanship of the
Board of Management of Schenker AG.
What distinguishes your companys approach to the rebound?
DB Schenker Logistics has managed the crisis better than most competitors.
We have proven to be resilient due to our close customer relationships,
which are built on a high industry standard we are setting. In addition new
product oerings, such as DB SCHENKERskybridge (air/sea combination)
and our state-of-the art purchase order management ICM we are creating
additional eciencies for our customers.
There are more intelligent ways than being a price crusher.
We have put in place our growth strategy in contract logistics/ SCM, named
Go-for Growth. This program focuses on specic, standardized solutions
in four growth sectors automotive, consumer, electronics and industrial.
Our industry specialists are designing individual service solution for our
customers in these segments.
What is your growth strategy in the next year?
Together with my board colleagues we have just decided on a new growth
strategy for the next four years. This program is split into three segments.
Firstly we are aiming for growth through optimized sales in existing business.
Secondly, our plan is to grow through network completion and extension in
emerging markets/ tradelanes. Last, but not least we are planning for growth
with new standard solutions along key industries.
As a CEO, what do you see as big challenges for your company
over the next couple of years?
In short term our industry has to manage the risen volatility in volumes
and rates, which cause risk due to its unpredictability. In the long run
globalization tends to diversify. Certain region or industries gain more
momentum than others and we need to prepare for these very specic
needs. Only the large service providers have the ability to assess these trends
precisely and at the same time shift attention and capacities to emerging
regions and industries
4
The infrastructure exists within 3PLs and that allow quick start up and
ramp up. Technology is tailor made to the solution and can be rapidly
implemented. Customers will want to focus on marketing and selling their
products.
seeking innovation?
Information and visibility along the supply chain unfortunately this has
been a recurring theme for the last 10 years!
Slow rebound more of a slow growth linear line dont see peaks and
dips and dont see a stop/start either.
FedEx a great process house very customer focused. But I am biased
because I worked there! CEVA Logistics has the right idea and is integrated
the pieces. Some good people too.
Antony Francis
President
ATC Logistics & Electronics
www.atcle.com
Antony Francis is the President of ATC Logistics & Electronics (ATCLE). He
has over 30 years of experience in all aspects of global supply chains and
logistics serving customers worldwide.
Before ATCLE he was President and COO of Plan Express, Inc., a provider of
construction document management and logistics solutions, after serving as
acting COO of NewRoads, Inc, a catalog and e-commerce fullment provider.
Prior to that, he was Vice President of Global Operations at SciQuest.com,
the scientic internet marketplace. From 1994 to 1998, Mr. Francis was
vice president/general manager of the Logistics and Electronic Commerce
Division for Federal Express European, Middle Eastern and African
headquarters. He previously worked for Ernst & Young in Europe, the Middle
East and in Africa.
He is a Fellow of the Institute of Chartered Accountants in United Kingdom
and a Fellow of the UK Institute of Transport and Logistics. He is a Member of
the Society of International Business Fellows (SIBF); is a Member of the Board
of North Texas Commission; and sits on the Board of Trustees of Dallas Opera.
We have used the time when volumes have been slow and below
expectations to retool some of our production process in the reverse and
test and repair area. In addition we have added two new key features of
service: transportation management and FTZ capability in DFW.
Broaden out of the pure wireless handset market into other areas such as set
top boxes.
Continue to expand in the wireless and set-top box, cable verticals and
begin expansion into medical. Expand into 2 regions geographically. Also,
strengthen our feature set and invest in the technology to enable that.
Keep operating margins at historical levels. Maintain CAGR of revenue above
the 18% rate.
As companies come out of the recession, they will seek to outsource logistics
as a non-core competence and we will leverage that.
One issue as companies have reduced inventories over the past year is that
they have stretched supply chains to the almost breaking point. A small
change in their supply base can send a shudder downstream and cause
the chain to rupture with horrendous results and loss of market share as
competitors quickly grab the open space.
5
I see a number of challenges for FedEx SupplyChain. The rst is lowering
the cost to serve small customers, who increasingly make up a larger share
of the GDP each year. Often times, these companies supply chains struggle
to compete against their larger counterparts strictly due to economies
of scale. In our business, where technology plays such a large role, small
customers are sometimes left out because the IT integration costs outweigh
the benets of change. We are working on ways to reduce these integration
costs to put small customers on the same playing eld as larger ones.
Other challenges we will face include rising employee health care costs,
increasing energy costs and an uncertain regulatory environment.
I enjoy being in the supply chain business because I love solving challenges.
New problems arise for all supply chain professionals on a regular basis
because of the ongoing changes in the underlying playing eld. It is this
constant change that oers 3PLs their greatest opportunity.
Change may come in the form of high growth in a particular industry (such
as medical devices) or in the form of volume decline during a downturn (like
industrial manufacturing). Growth or decline means that manufacturers
need to either expand or shrink their supply chains. 3PLs are better suited to
absorb this supply chain dynamic because we serve multiple customers with
varying volume levels.
Change can also be in the form of new government regulations, like the
proposed general sales tax in India or the proposed changes for transporting
embedded lithium batteries in the U.S. The 3PLs that develop the most
eective solutions to their customers new challenges will be the ones that
gain the most.
Security risks are increasing at an alarming rate, especially in the high-value
logistics arena. It used to be that security risks were higher in developing
countries than in developed ones. Now, supply chains are at risk in every part
of the world.
At FedEx SupplyChain, we put a premium on keeping our customers
inventory safe. Of course, security is front and center for all of our
employees, but we also apply state-of-the-art technology to mitigate risk.
For example, FedEx Innovation Labs has developed a new product called
SenseAwareSM to continuously monitor products during all transportation
and distribution points, including during ight on FedEx aircraft. This active
device uses RFID and is the only one of its kind approved for use by the FAA.
FedEx SupplyChain will use SenseAware for our customers that place a high
premium on product safety.
Flexibility is the greatest value generator that a 3PL can provide during
any change in growth patterns, especially during the downturn we just
experienced. For 3PLs that provide multi-client services, exibility is built
into what we do.
As I mentioned before, not all industries were aected the same. This holds
true for companies within the same industry, too. Whether its our hub-
based, multi-client warehousing or our FedEx Transportation Management,
our customers benet because we can ex resources across multiple
operations.
In terms of IT, the notion of multi-client holds true as well. Maintaining
world-class IT infrastructure requires ongoing investment. These costs can
be daunting when a manufacturer or distributor needs a new Warehouse
Management System, for example. FedEx SupplyChain invests heavily in IT so
our customers dont have to. We benet from the economies of scale that we
achieve by putting these systems to work for multiple customers.
Craig Simon
President & CEO
FedEx Supply Chain
www.fedex.com/us/supplychain/main/
Simon joined FedEx in 1999 as director of FDX eSupply Chain Services.
He later became vice president of FedEx Solutions, with teams responsible
for designing and implementing service and logistics solutions and for
supporting FedEx Sales with resources, processes, and tools.
Before joining FedEx, Craig spent eight years with Andersen Consulting (now
Accenture), providing supply chain strategy development and operations
improvement eorts to Fortune 500 companies in the consumer products,
retail, food and hi-tech industries.He also developed a successful health care
information start-up company in Silicon Valley.
Craig holds two degrees from the University of Notre Dame: a Bachelor
of Science in Mechanical Engineering and a Bachelor of Arts in History.
Craig is certied in production and inventory management (CPIM) from the
American Production and Inventory Control Society (APICS).
FedEx is truly a global enterprise, so our company has a large window into
the current economic conditions both domestically and internationally
and how both are expected to rebound. As part of a large global integrator,
FedEx SupplyChain was one of the rst 3PLs to observe the economic drop
o and one of the rst to see the early signs of recovery. Therefore, we were
better positioned than most to accelerate our growth initiatives. In fact,
because of our investment in future growth, we have increased our revenue
during the last 18 months.
Our strategic decisions during the last 18 months have supported our belief
that great companies can emerge from economic downturns better than
they were before. While we tightened our belt to weather the reduced
volume from some industry segments such as automotive, we also increased
our investment in IT and operational capacity in less aected markets like
medical devices and high-tech service parts. By doing so, we improved
service to our existing customers and added capabilities to attract new ones.
We did not see a reduction in our customers expectations during the
recession. On the contrary, our customers relied on us to help them navigate
the downturn. We accomplished this objective very well during the last 18
months. Even more importantly, our investments will pay dividends for our
customers and FedEx SupplyChain going forward.
Our growth strategy is to integrate existing FedEx SupplyChain capabilities in
North America, Europe and Asia with new services in emerging markets. It is
a natural tie-in with FedEx Express, the worlds largest express transportation
network. FedEx Express connects more than 220 countries and territories,
usually within one to two business days door-to-door. In addition, FedEx
Express has launched domestic express services in China, Mexico and India
in recent years. Combining the FedEx SupplyChain logistics network with the
superior FedEx Express transportation networks in these markets gives us an
advantage that cannot be easily matched. It not only makes sense, it is what
our customers are telling us they want and need.
6
seeking innovation?
There are two areas I hear about most when it comes to innovation. The rst
is supply chain visibility and the second is sustainability. Let me give you an
example for each one.
Supply chain visibility Any made-to-stock product requires safety stock
inventory to cover the unpredictability of demand and supply. Companies
can lower their inventory-carrying costs if they have access to more reliable
information. In the case of eld-based inventory (remote/technician stock),
a wide variance exists between companies that have good control over
this inventory vs. those that lose track once it is deployed into the eld.
Improving visibility of eld-based inventory yields reduction in inventories.
To meet that need, FedEx SupplyChain has a eld-based management
service called FedEx Critical Inventory Logistics. We manage our customers
inventory in FedEx custodial-controlled locations (FedEx Express, FedEx
Oce, FedEx Trade Networks) and tightly control it using our IT system. We
give customers the power to lower costs.
Sustainability Companies are confused about how to best manage the
sustainability of their supply chains. FedEx is taking the lead on many fronts
in the sustainability battle.
FedEx currently operates the largest hybrid eet in the transportation
industry, along with one of the largest alternative energy vehicle eets.
We have set long-term goals to reduce aircraft emissions 20 percent by
2020, increase FedEx Express vehicle eciency by 20 percent by 2020 and
expand on-site renewable energy generation and procurement of renewable
energy credits. Through an initiative known as EarthSmart, we engage our
team members, customers and business partners to help us reduce the
environmental impact of our daily business operations and operate in an
increasingly sustainable way.
So, customers want innovation to help them improve the visibility and the
sustainability of their supply chains. FedEx understands this and continues to
innovate in these areas.
If I could predict this one with any accuracy, I would be in a dierent job!
I can say that our business plans call for a modest recovery in the global
economy during calendar year 2010. These expectations hinge upon fuel
prices trending along the current market outlook.
I can also say that any business plan we put together has the exibility to
adjust up or down to meet market conditions. While there are limits, we can
add capacity if needed or we can reduce expense as well. This is a hallmark
of FedEx.
One of my roles for FedEx includes being the market champion for the
greater Phoenix area. Every three months, I make customer calls with our
local Sales team. My job is to listen to what our customers tell us they
need and then take that information back to Memphis. There are 49 other
FedEx ocers who do the same thing around the U.S. We use this customer
feedback in determining our priorities for product development and process
improvement.
Many customers that I meet with t the same mold. They have private
companies with fewer than 100 employees that started with a new idea to
create a customer. Many of these companies began operations in a garage
or a living room. They have succeeded because they blend initiative with
passion for meeting their customers needs. These are the companies I
admire.
7
I think as time and the recovery progresses, the largest area of opportunity
for 3PLs will be in their ability to actually execute freight movement
on behalf of their customers. During this downturn, we have spent a
tremendous amount of eort and focus in our logistics businesses on
fostering our alliance provider relationships across all modes. In our opinion,
it is more opportunistic for us to build and develop techniques for managing
and executing the supply chain in ways that protect our customers during
varying conditions. The 3PL that can eectively manage the process and
design, and actually bring comprehensive freight movement capacity and
scale will have the most opportunity moving forward.
This is directly related to the previous question. One of the major supply
chain risks that we see in the market today is the customers or 3PLs
perception that rates and commitments received during multiple bids
throughout the last year and a half are going to be honored by all providers
moving forward. While they might not be the most popular or easiest
decisions, a 3PLs core responsibility is to manage the logistics strategy
and execution with their customers and making cost cuts with a strategic
lter. We continue to work with our customers in building exibility in their
supply chains while minimizing the vulnerability by sharing in the risks with
our customers. There are many instances where Werner nancially and
physically mitigates risk exposure on behalf of our customers.
One of the most important aspects of a 3PL is their ability to strategically
interpret information and have that translate into tactical execution. Those
3PLs who are out in front competing for and securing a limited amount
of resources will win. We have designed our proprietary Transportation
Management Systems to manage very large volumes of transactions in
a very ecient process workow. We utilize our systems to engineer the
proper load dynamics, quickly push the shipments out to the various
modes and carrier bases and ultimately take responsibility of the shipment
execution, both domestically and internationally.
seeking innovation?
What we have heard from our customers, and where we are focusing our
continuing application development, is in further enhancement of cross-
enterprise functionality and integration between supply chain partners.
Because of the eect that each node in the supply chain has on cost and
service, we have had to continue to expand our value proposition by
providing solutions that cross multiple departments, systems, stakeholders
and geographies.
If I had to forecast, I would say a U shaped type recovery.
Derek Leathers
COO
Werner Enterprises
www.werner.com
Derek J. Leathers is the C.O.O. of Werner Enterprises and the President of
Werner Global Logistics. Derek has worked in the international logistics
industry for nearly 20 years and was an integral part of many facets
of the transportation portions of the NAFTA implementation process
throughout the past two decades. Mr. Leathers has served as an advisor
for two US ambassadors to Mexico as well as serving on the American
Trucking Associations Cross-Border Advisory Committee for North America.
Mr. Leathers was one of the rst foreign members of Mexicos trucking
association (CANACAR) and has successfully led the launch of multiple new
logistics products in low-cost countries. Prior to joining Werner in 1999, Mr.
Leathers was Vice President of Schneider Nationals Mexico operation, and
was based out of Mexico City for several years. Most recently, he helped
guide Werners expansion into Asia.
I believe the dierence is, and always has been, our consistency. Our
customer-centered approach has been our focus in both strong and weak
economies. We place an extremely high value on our customers who
remained loyal during the downturn and we will continue to focus our
support and commitment to those partners, across our entire scale of
solutions, as all types of capacity become increasingly dicult to secure.
We were committed to staying with our asset roots and our commitment
with key customers, while at the same time continuing to expand our non-
asset solutions across the globe. The base of our service oerings lies in
our truckload services and we will continue our role as an industry leader.
We have also benetted from our diversication strategy with our logistics
service oerings both domestically and internationally. For example, this
past year we opened oces in Australia to support several clients as they
expanded their operations. We provide logistics solutions domestically and
internationally to these customers and have grown throughout our portfolio
of services.
Our growth strategy moving forward will be centered around many of the
same principals that have driven our growth for over 50 years ago. With
our customer-centric platform, we will continue to focus on our economic
performance and leverage our nancial position within the industry and
continue to diversify our service capabilities. I believe we will begin to see a
ight to quality with carriers and asset-backed 3PL solutions as the balancing
of supply and demand becomes more pronounced.
As a COO, what do you see as big challenges for your company
In my opinion, our biggest challenge will be the continuing default and
shrinkage of capacity in the marketplace. Financing in our industry had
been readily available in spite of inadequate returns on capital. I think this
environment has fundamentally changed nancing requirements and will
have serious implications down the road should we see even a marginal
increase in demand. With this increase in demand, another serious challenge
that our industry is facing is driver resources. It has been tempered with the
economic slowdown, but with current regulatory and economic conditions,
this issue will be a critical focus area of Werner Enterprises.
8
Supply chain re design and optimization, people and analytics that provide
for proactive recommendations to clients and the operational agility to
execute on the recommendations.
seeking innovation?
Clients expect continuous improvement of service and ongoing cost
reductions. Traditional quality systems have served companies well in terms
of incremental improvement. Signicant improvement comes through
innovation, particularly in the areas of inventory velocity/reduction through
supply chain design.
I fear we are in for and L or a W.
For Contract Logistics it is the large regional players. GENCO is a good
example in NA. They have developed several nice niches, have technology
that provides competitive advantage and provide clients with the high touch
they expect. No company on a global scale has been able to do these things
protably
Eric Kirchner
CEO
UTi Worldwide
www.go2uti.com
Eric Kirchner was appointed the Chief Executive Ocer in January 2009.
He has 28 years of experience in the transportation and logistics industry,
serving previously as President of Freight Forwarding in UPSs Supply Chain
Solutions division for their global freight forwarding business. Prior to
that, he was President North American Forwarding and President Global
Transportation Services, and served as co-integration manager and member
of the UPS integration steering committee which facilitated the transition
of Menlo Worldwide Forwarding. Eric came to UPS in 2004 through their
acquisition of Menlo (former Emery Worldwide), where he held various
executive positions up to Chief Operating Ocer. During his career, Eric has
directed transportation and commercial air and ocean carrier relationships
and has also managed contract logistics operations. His roles in operations,
sales and marketing, as well as general management, reect his extensive
experience in managing global customer relationships and overseeing
acquisition integration and business process transformation. Eric holds a
Bachelors degree from Indiana University and has completed the Stanford
Executive Program at Stanford University.
Invest in sales, product development and solutions on the revenue side
while investing in centralized back oce functions to lower unit costs.
Accelerate IT development (4asONE) that will bring the eciencies and
consistency clients require.
Sell integrated solutions that are not as commoditized as stand alone
services. Focused/selective selling in taking on new business outside of
our established footprint and aggressive local and regional sales that take
advantage of scale and route discipline.
Leading the transition from operating the company as a portfolio of
companies to a high performance enterprise.
Flawless implementation of new business, consistent execution globally, and
client retention.
A thorough and disciplines Advance Quality Planning (AQP) process which is
part of a broader Quality Management System.
9
A 3PL can provide leadership in the following areas / ways:
- Leverage the 3PL's multl-customer experlence to help dene and
implement best practices for a particular client.
- Help ldentlfy factors of rlsk, look upstream at leadlng lndlcators and
develop predictive models to be used as an advanced warning system, such
as providing consistent information for things like ocean lead time booking,
or energy prices, or weekly domestic capacity uctuations, etc.
- Use the rlsk factors and predlctlve models to develop mltlgatlon plans that
can eventually become part of an engagements critical success factors or
key performance indicators.
- Provlde market lnslghts beyond a partlcular cllent or lndustry.
3PLs should be able to leverage a number of dierent sources of information
to provide very accurate information on transportation markets, both
capacity and costs, and to engage with customers to provide leading
information on key trends, which can then be used to drive the clients
strategic planning.
seeking innovation?
Customers are looking for innovation in the following areas: cost control
or avoidance, capacity alternatives, data visibility and access, change
leadership, and risk mitigation.
Im not sure any of those letters are shaped like we expect the recovery to be.
I think the approximate symbol ~ maybe most appropriate, with a slight tilt
upward!
BNSF Logistics is now part of the Berkshire Hathaway family of companies; I
have admired Berkshire Hathaway for many years because of the companys
undeterred record in providing long-term value to shareholders.
Eric Wolfe
Vice President & General Manager
BNSF Logistics
www.bnsogistics.com
Eric Wolfe has held senior leadership positions with J.B. Hunt Logistics, Inc.
(now part of Transplace); Cardinal Logistics, Inc.; and Clicklogistics, Inc.;
where he served as Chief Operating Ocer. He assumed the leadership
role at BNSF Logistics after BNSF Corporation acquired specic assets from
Clicklogistics, Inc., in August 2002. Mr. Wolfe holds a Bachelor of Science in
Business Administration from the University of Arkansas at Fayetteville and a
Master of Business Administration from TCU at Fort Worth.
We were very careful to protect market share and to continue to work hard
on delivering exceptional service to our customers, and with the investments
listed above, we believe customers will want us to grow with them as they
recover from the recession.
We made signicant adjustments in our organization to better support
customer demand and improve our market responsiveness. We have
centralized certain operating units, while adjusting part of our domestic
structure to provide more intense focus on customer service and on
operating excellence. This was planned during the second half of 2008 and
rolled out throughout 2009. We are seeing operating improvements in all
phases of our business.
We have focused on certain key verticals and are segmenting these verticals
and ne tuning our approach with a plan to go downstream to broaden
our customer base. We have improved and developed four sales channels
to attack these areas. We also have invested in personnel and technology to
support our most rapid growth segment over the last three years and have
increased that investment this year. We also continue to increase the size
and expertise of our four sales channels that encompass the domestic and
international business units.
Restoring growth to historic levels continues to be our primary focus area.
Other areas where challenges persist include the ocean rate volatility,
the impact of new regulations like CSA 2010, and the ongoing issue of
infrastructure investment.
- Helplng customers achleve thelr supply chaln goals whlch typlcally evolve
around cost savings, service, and ll rates.
- worklng on envlronmental lnltlatlves wlth customers, wlth a focus on
optimizing supply chains to improve sustainability and reduce the aggregate
carbon footprint.
10
The greatest value that a 3PL provides is its ability to turn a clients xed
cost to variable cost. During times of downturn and rebound, clients need
the exibility that a variable cost model can provide. This is where 3PLs can
shine.
seeking innovation?
Shippers are desperate for innovation to be more competitive. As an
extension to that they want exclusivity with these innovations since an
innovation isnt of much use if all of their competitors can oer the same
innovative capability. Historically the 3PL industry has not generated
sucient innovation for its clients. To grow, to succeed, and to increase
margins, 3PLs must dramatically increase their innovation quotient. 3PLs
are retained by clients as agents of change. 3PLs must live up to that
expectation.
The rebound will likely form a bumpy W shape although we are not
expecting big bumps. Nevertheless, it certainly wont be smooth.
I admire the 3PL that beats me the next time. Every deal is dierent. Every
deal is important. Every deal is a message from the market.
Jim Eckler
President & CEO
SCI Group
www.scigroup.org
Jim Eckler is President and CEO of SCI Group Inc. SCI is the parent of three
leading Canadian supply chain management services providers: Progistix-
Solutions Inc., SCI Logistics Ltd. (including Assured Logistics & AMG
Logistics), and First Team Transport Inc. These subsidiaries serve clients such
as Bell Canada, Siemens, Xerox, Amazon.ca, Lowes, Rogers, Toys rUs, Trane,
and Canada Post. SCI is a subsidiary of Canada Post Corporation.
Jims background includes over 35 years of experience in the supply chain
management eld. His business focuses on developing and operating high
performing supply chain outsourcing services for companies that demand
complex, high value services.
We believe that the market will demand even greater performance quality
from their 3PLs, hence we will focus on overall operational excellence.

Two years ago we re-launched an improved and enhanced Quality
Management program designed to extract waste and non-value activity
from our business and that of our clients. Its paying o.
As a Canadian company we tend to listen to our hockey players. Wayne
Gretzky, likely Canadas greatest player, often advised his players to skate to
where the puck is going to be, not to where it is now. Our growth strategy
has taken a page out of Gretzkys admonition. As a supply chain service
provider, we will focus on sectors with immature supply chains rather than
those that are already developed.
The biggest challenge for us, as well as for others in our industry, is the
commoditization of the logistics service oering. Unless we oer services
that our clients cant or wont do for themselves and where our services are
dierent from our competitors, then we are in a commodity business. We
must avoid that. We need dierentiated services.
3PLs must innovate much more. This will lead to dierentiation and
counter the commoditization trend. Historically as an industry we have not
introduced nearly enough innovations. Our industry has generally been a
follower of best practices rather than a leader. At the same time, our clients
are crying for innovation across their businesses and when they outsource to
us, we, as an extension of their business, must equally strive for innovation.
3PLs are by intent (and hopefully in fact) more knowledgeable about supply
chain matters than their clients. As such, their expertise should be applied
to all aspects of risk management. However, 3PLs can only provide this
valuable support if all communication lines with clients are fully open and
that clients are open to engaging their 3PL on these matters.
11
We are committed to becoming the most admired company in the industry.
To achieve this we will need to do an even better job of attracting and
retaining top talent. Good people will always be in demand and I see
winning this battle for talent as one of our greatest challenges. A key part of
this, of course, is growing our existing talented employees to the maximum
of their potential and internal training and development activity will be
crucial.
I see the greatest opportunity in three areas;
1. To provide integrated contract logistics and freight management services
across the length of the supply chain creating economies of scope for
customers.
2. To put operations excellence at the heart of everything we do.
3. To improve the level of innovation in our industry.
3PL providers, such as CEVA, are uniquely positioned to help their customers
understand risk. We have an end-to-end view of the supply chain and this
means we are able to view the supply chain in its entirety and not in silos.
This integrated perspective makes it easier to spot potential risks, adapt
processes to resolve them and exploit eciencies.
The key areas, where the 3PL can provide support include:
- Greater vlslblllty of nows to help manage severe demand varlablllty
- Adaptablllty to manage and mltlgate dlsruptlon.
seeking innovation?
Our customers do not have a generally positive view of our industry and
one of the regular criticisms is the lack of innovation. In my opinion, to
start to see innovation in logistics, we need customer condence in the
industry; 3PLs willing to invest in R&D and greater industry education and
professionalism. Then there are some basics that must also be in place we
must be delivering operational excellence at all times, supported by strong
partnerships with customers including a high degree of responsiveness. Only
then will innovation become part of our daily vocabulary.
Given we have operations in over 170 countries worldwide, it is virtually
impossible to provide a one size ts all view and I am not good with
mathematical shapes!! I would say that we believe that we have reached the
worst point and it is likely that, over the next year or so, we will see slow and
steady improvements.
There is no one single company. I can think of ve or six examples of
companies who do one or two things really well but I struggle to think of
a paragon company where I admire everything. In fact this is the trick of
benchmarking to learn the best practices from others without necessarily
copying everything.
John Pattullo
CEO
Ceva Logistics
www.cevalogistics.com
John Pattullo spent most of his early career working in supply chain
management with Procter & Gamble. In 2005, John joined Exel, where he
was CEO of the 6 billion EMEA division (freight forwarding and contract
logistics). When Exel was acquired by Deutsche Post/ DHL, he then ran the
combined Exel and DHL contract logistics business in EMEA. He became CEO
of CEVA in August 2007.
As a young Company, CEVA has benetted from being agile and exible
enough to adapt our business model swiftly and to make decisions quickly
and appropriately. It also meant we were able to work closely with our
customers through a dicult period and support their business needs by
providing the same level of exibility and partnership.

When the economic crisis occurred, we decided to maintain balance
between short and mid-term needs and decided to focus on three key
priorities:
- Growth - bulldlng buslness capablllty ln areas such as sector vertlcal teams
and global account management to sustain revenue growth above market
average.
- Capablllty - growlng world class functlonal and operatlonal capabllltles to
service our customers better and enhance the skills of our people.
- Cost reductlon - dellverlng slgnlcant cost savlngs through a well
orchestrated, centrally led program to oset reduced volumes and contain
cost.
This approach worked well: our revenue performance was one of the best in
our peer group and this approach enabled us to adapt to challenging times
and be ready to exploit any upswing as soon as it occurred.
In 2010, our key areas of focus include:
- Our Century Program: Thls ls our key account program for l00 global
customers who represent over 50% of our total business. In 2010 we aim
to increase our share of activity with these customers through further
leveraging our entire service portfolio and global presence.
- Ocean frelght: CLvA has outperformed lts peers and the market ln recent
years in terms of growth, but is still a relatively small player in this market.
Our aim is to rmly establish our global ocean product and accelerate
growth rates.
- The consumer and technology CL sectors: presents a strong opportunlty
for CEVA as the consumer sector is the largest outsourced supply chain
segment globally and technology is one of the fastest growing sectors with
generally above average margins.
- Sustalnable cost lmprovements: our alm ls to bulld on the success of
our cost saving program in 2009 and deliver substantial and sustainable
incremental cost improvements in 2010.
12
Technology is a key component of a 3PLs value proposition. For a company
like Greatwide, we can use technology and our 24/7/365 Transportation
Operations Center to provide visibility of all resources and cross-utilize eets
to create lane balance and elasticity.
seeking innovation?
In todays economy, most customers are seeking to increase services
(in terms of reducing inventory at a low cost). We think Greatwide has
developed a process that better meets this need by creating real-time
visibility of our entire eet, which helps to lower customer cost by providing
backhauls in dedicated lanes and the integration of our customers network.
I would have to say that I predict a shape between an L and a U. I dont
believe there is any basis in the economy for a fast uptick, but I do believe
we have hit the bottom of the downturn and will slowly and steadily move
upward.
There are a lot of great companies today. Greatwide has traditionally had a
presence in the grocery industry and weve seen the industry come a long
way in the last few years. One that I admire in this industry is Walmart. They
have developed a model that has enabled them to become the worlds
largest retailer and, in the process, minimized the bureaucracy that is often
prevalent in large corporations. Walmart has also expanded their product
lines and services while maintaining low prices. Their innovation has driven
industry trends.
Leo Suggs
Chairman of the Board and CEO
Greatwide Logistics
www.greatwide.com
Leo Suggs joined Greatwide in 2009 as chairman of the board and assumed
CEO responsibilities in 2010. He has devoted nearly 50 years of his life to the
trucking industry, beginning his career as a warehouseman while in college.
Over the last two decades, he has held executive leadership positions with
some of the industrys most prominent companies, including Overnite
Transportation, Preston Trucking, Yellow Freight and Ryder/PIE.
We are well-positioned for the rebound in an industry that has been hit hard
by the recession. Greatwide Logistics Services is a nancially stable company
with a strong cash position on the balance sheet enabling organic growth
and acquisitions.

In November 2009, we acquired YRC Logistics Dedicated Contract Carriage
division. It was a tuck-in acquisition that expanded both our participation in
the food industry and added new product oerings to our portfolio in the
industrial and automotive industries.
We plan to focus on growing our existing customer relationships by
continuing to provide them with outstanding service and value, as well
as new product oerings. We have also expanded our sales force with
more resources focused on mid-sized companies and continue to look for
opportunistic acquisitions.
By far the biggest challenge is the economy. The potential for tightening of
capacity and driver resources compounded by the eects of CSA 2010 are
also challenges facing our company and our industry.
A 3PL with a comprehensive oering can provide opportunities unique
to customers both large and small. For example, larger customers need
exibility to handle peak periods without idling assets when volumes are
lower. A 3PL like Greatwide is able to handle this surge capacity. Additionally,
a cost structure like ours provides an economical alternative. Plus, bundling
services can create solutions that are not available from traditional providers.
One example of risk mitigation is the conversion of private eets. A company
may not readily recognize the liability risk of vehicle accidents and injuries
until it is too late. By using a 3PL, you eliminate this risk to your company.
Additionally, private eets are a large capital expense that requires a
substantial amount of cash. Greatwide can help customer mitigate that
nancial risk.
13
The 3PLs need to oer choices, alternatives and exibility (at origin, in transit,
at destination) beyond what individual carriers can oer.
- |n tlmes of space constralnts and rlslng prlces maklng consclous cholces on
what and how to ship when and where are critical to control costs
- Thls requlres a partner/ 3PL that knows the market, oners optlons and can
provide the required visibility to make those choices
seeking innovation?
There are 2 sides to this coin and this to me is a signal of a not very mature
market:
- |f shlppers only contract for a few months there ls no/ hardly any room for
innovation
- |n those cases where we nd better agreements and genulnely focus on
developing win-win relationships we typically see more innovation/ higher
degree of satisfaction with our customers on this
This is very dicult to say, but at the moment I would probably expect a
strong rst 6 months in 2010 with a softer 2nd half (mainly because some of
the fundamentals are still not xed). In 2011-2012 I expect moderate growth.
Probably K&N and/ or Expeditors because they have been very successful
and consistent in executing and delivering on their strategy.
Rolf Habben-Jansen
CEO
Damco
www.damco.com
Rolf Habben-Jansen is the CEO of Damco since 1 January 2009. He is
responsible for all of the global activities of Damco, based in Copenhagen.
Damco is the new, combined brand of the A.P. Moller-Maersk Groups
logistics activities, currently known as Maersk Logistics and Damco. A
division of the A P Moeller- Maersk group, Maersk Logistics has more than
12,000 employees in 90 countries around the world, oering third-party
logistics and (through the Damco brand) freight forwarding services.
Before joining Maersk Logistics at the beginning of 2009, Dutch national Rolf
Habben-Jansen was CEO of DHL Global Customer Solutions, just one of the
positions he held in a long career at DHL (including acquired companies).
We have reacted fast last year in taking out cost/ simplifying the organization
and as such we are probably one of the few larger companies in the sector
that have delivered better results in 2009 as in 2008. Our approach had two
phases( 1: Take out cost (Nov 08-Apr 09) and 2: return to growth / from May
onwards), and because of this we managed to return the majority of our
products to growth as from Q3/ early Q4 and our volume development in
both Airfreight and Oceanfreight was better than the market in 2009.

Be decisive to take out cost and simplify the organization (ie remove 1-2
layers of management, go to one brand etc).
We will continue to build on our strong position in the emerging markets
and will make investments in selected market segments where we believe
we can grow signicantly (ao Reefer, Government services, Airfreight).
- To malntaln the sense of urgency/ performance drlve we had ln 2009 to
continuously improve and grow our business
- 8ecome more lnnovatlve and lntroduce new servlces/ enter new segments
in a controlled way every year
- Contlnue to lmprove customer satlsfactlon, quallty and productlvlty durlng
a period of fairly rapid growth
1. In the Emerging Markets
2. In helping optimizing our customers supply chains
- 8etween modes of transport
- 8etween carrlers/ provlders
- Movlng actlvltles between destlnatlon/ orlgln
- Peduce capltal tled up ln supply chaln, reduce warehouslng)
- Sustalnablllty
14
Flexibility is key. 3PLs have the ability to access and analyze information and
then respond quickly to trends, both positive and negative. Integration is
also critical. Strong third-party logistics providers are more than just the sum
of their parts. They go beyond just transportation or warehousing and really
tie in to the whole operation. 3PL partners can see the complete picture and
better react to it.
seeking innovation?
Customers are looking for help in managing costs while improving service to
their customers. This is not new phenomenon, but it does become magnied
during turbulent times.
We are planning for a U-shaped rebound while putting controls in place
to guard against a W. We are communicating frequently with our elected
ocials at all levels about the need for policies that support growth.
We always respect companies that are able to prosper while behaving
ethically and doing the right thing with customers, suppliers, associates
and shareholders.
Cli Otto
President
Saddle Creek Corp
www.saddlecrk.com
As president of Saddle Creek Corp., Cli Otto is responsible for directing the
3PLs integrated logistics operations, including warehousing, transportation
and contract packaging. Prior to joining Saddle Creek, Otto spent 11 years
with CHEP USA, most recently as senior vice president for North American
sales. He also has served in various executive management positions in
logistics and nance with Baxter Healthcare and American Can Co. Otto has
held leadership roles with various grocery industry associations and the
Council of Logistics Management (CLM), served as the national president
of the Warehousing Education and Research Council (WERC) and currently
serves as vice president, agency relations, for the American Logistics Aid
Network (ALAN).
Fortunately, Saddle Creek performed quite well through the downturn, so
well maintain a consistent approach through the rebound. Well stay focused
on delivering excellent service to our customers and secure the necessary
resources, both human and physical, to handle an uptick in volume. Well
also ensure that we have the right resources in place to aggressively pursue
emerging opportunities.

Our recent acquisition of California-based ServiceCraft Logistics was a key
step for Saddle Creek, enabling us to expand our geographic reach and
customer portfolio. It reects our strategic focus on bringing our integrated
logistics solutions to new markets and providing enhanced coverage and
service options.
Well continue to focus on organic growth by proactively bringing innovative
ideas to our customers and also sharing the value of our integrated solution
with new prospects. Well also look selectively at acquisition opportunities
that complement our strategic oering.
As we continue to grow, we must sustain our unique culture with its focus on
top-to-top involvement and collaboration. It is a key point of dierentiation
for us. Well also focus on expanding brand recognition and communicating
our unique value proposition to the industry.
3PLs are well positioned to help companies manage through the rebound by
providing the expertise and assets to allow them to stay lean and exible.
An experienced 3PL can provide insights into strategies and markets,
increasing its customers risk awareness while allowing them to focus on
their core competencies. An asset-based 3PL further alleviates pressure by
actually assuming some of the risk.
15
3PLs in many cases are more focused on having a rigorous contracting
and claims management process and a higher level of risk management
expertise than their customers. We are sponsoring sessions with
transportation legal experts to help our customers follow a step-by-step
process to evaluate their individual supply chain risks and, with our support,
address the particularly onerous issues.
We oer the benet of an outsourced solution with the investment in
technology (software and people knowledge) required to reduce total cost
of their supply chain included without additional fees but with the expertise
to rapidly and economically implement the solution.
seeking innovation?
Helping them to identify areas within their organization to reduce
complexity and cost and provide leadership in developing green solutions.
Square-root shaped.
In our space one of the competitors we benchmark against is CH Robinson.
They have been able to continue to grow prots while maintaining
reasonably aggressive pricing. They also have maintained a solid growth rate,
much of which appears to be organic.
Georey Bennett
President and CEO
Kelron Logistics
www.kelron.com
In 1976 while attending Montreals Concordia University, Georey co-
founded a courier company. The company under his direction grew to be
recognized as on of the top couriers in that market before selling 10 years
later to Dynamex Express where he rose to the position of Director of
Operations, responsible for 10 business units and 800 drivers. He followed
this up with a senior role at Sketchley Cleaners, where he was responsible
for the operation of 17 plants and 160 stores. In 1992 Georey co-founded
Kelron which 18 years later generates over $100 million in annual revenues,
employing over 125 people in three transportation operations and execution
facilities. Georey has also been active in industry aairs for many years as an
Executive Director of the National Transportation Brokers Association.
Were focused on the further augmentation of existing signicant customer
relationships or on adding new relationships where we can add real value to
the customers transportation activities. We are focused in a couple of areas.
First we are looking for relationships with customers where their history
has shown that they value long-term suppliers and the improvements
in performance they can bring beyond transportation cost alone. Were
adding strength to our sales team, investing in developing a higher level
of sales management competency. Another big area we are focused on is
improving our labour eciency while maintaining high performance in our
execution processes allowing us to pass our internal cost savings along to
our customers.

Signicantly increasing our investment in technology to reduce our
execution costs while maintaining or improving on our external metrics.
Adding additional competency to our service oering to allow us to sell
more services to our existing as well as new customers and to add new
regional capability to our network of execution locations.
In the part of our business where we function as an intermediary I see
continuing margin compression pressure over the next 6 12 months as
carriers start to increase rates while customers are resistant to accepting
them. This will be followed by a return thereafter to a tight capacity market
as volume increases. This will be highlighted by signicant upward rate
pressure, a necessity to allow carriers reasonable nancial returns on their
required investments in new equipment, while adding the new drivers
required to operate the equipment.
In tight capacity times we are capacity nders and eciency creators. In
more normal markets we benet our customers by aggregating capacity
and helping customers to remove the barriers within their organizations to
supply chain eciency.
16
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17
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Interested in the views and strategies of 3PL CEOs and the Chief Supply Chain Ocers from their biggest customers?
Theres no better place to meet them, hear their latest insights and delve into the industrys biggest challenges than the
8th European 3PL Summit & Chief Supply Chain Ocer Forum
24-25 November, 2010 The Conrad, Brussels
The Europes largest event for 3PL Providers & Users Build the relationships that will accelerate your growth in the
economic upturn
The 3PL Summit will reveal how you can adapt your business to meet the requirements of the economic rebound, drive renewed growth and gain market
share.
Learn how the worlds most prominent 3PLs are positioning themselves in a time of growth, change, and erce competition.
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Book your place alongside these industry thought leaders:
3PL Summit Speakers:
John Pattullo, CEO of CEVA
Monika Ribar, CEO of Panalpina
Rolf Habben-Jansen, CEO of Damco
Beat Simon, CEO Europe of Agility
Rudi Roex, CEO of Ewals
Wolfgang Niessner, CEO of Gebrder Weiss
Mike Branigan, CEO of TDG
Christian Leysen, Chairman of Ahlers
Andrew Austin, CEO of Priority Freight
And many more!
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18
CSCO Forum Speakers:
Johan Jemdahl, Vice President Operations EMEA of Cisco
Ulf Harring, Head of Supply Chain of Electrolux
Jaro Caban, Group Supply Chain Director of AROVIT Petfood
Laurence Coudry, European Distribution Orgaization Supply Chain Director of
Johnson & Johnson
Johannes van Osta, General Manager Group Transport & Logistics of JCB
Excavators
Kris Van Ransbeek, Vice President Product Supply & Ingredients Business Europe
of Chiquita
Tjebbe Smit, Vice President Manufacturing & Logistics of Oce Technologies
Neil Spickett, Group Logistics Director, Eastern Europe of Carlsburg Breweries
David Picton, Supply Chain Operations Director of BskyB
Lars Kjrblling, Director, Strategic Projects - Global Distribution Logistics of
LEGO System A/S

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