Leader
Don't be another Dunder Mifflin
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By Deborah Aarts |
I'm a big fan the NBC sitcom The Office.
In an older episode I caught recently, hapless manager Michael Scott makes a visit to the warehouse underneath his branch of the paper company Dunder Mifflin. In a characteristically ill-conceived attempt to boost staff morale, he climbs aboard a forklift, attempts to move a small box and—to the horror of his warehouse employees—proceeds to knock over two full sets of racking, scattering product everywhere.
Immediately prior to the disastrous visit, Scott had confided to the camera that his visits to the warehouse are important, as it is technically his responsibility, "but [he hadn't] been down there in months!"
The vignette was obviously played for laughs, but I found Scott's reckless negligence eerily echoed in a presentation at the International Warehouse Logistics Association (IWLA) Canadian Council's fall conference last week. David Sheepway, portfolio executive with Zurich Insurance Company, related several disturbing things he's seen on risk assessment visits to warehouses and DCs. These included unprotected heavy equipment, seriously dented racking and—yes—improper forklift use, including more than one instance of drivers chasing co-workers through the aisles, something that Michael Scott would no doubt find hilarious.
For a seasoned risk management expert like Sheepway, situations like these signal much more than employee carelessness. They signal a gross failure on the part of management. And poor management is an immediate black mark when assessing a company's insurance risk.
Every senior logistician knows how expensive insurance can be, but I don't think many make the connection between their own management habits and their insurance risk status. Indeed, only a smattering of delegates at the IWLA seminar admitted to conducting regular assessments—and of those that did, most did it only when asked by a customer.
You could argue that this shouldn't be your job, that your duty is to hit targets and improve efficiency, not to baby-sit employees and tidy up. It's easy to offload responsibility.
But the fact is that everything that happens in your facility ultimately traces back to your management, and this directly affects your insurance rates. And, as Sheepway told the crowd, your goods cannot move without insurance.
So it's important to take the time to walk around your facility on a regular basis. Set high standards for safety, cleanliness and employee behaviour, and seek out any deviations—however small—that might compromise them. Look at things with the eagle eyes of an insurance adjustor, and document every improvement you make.
This may not increase your popularity, but making tough decisions is what being a good manager is about. It's what separates the Michael Scotts of the world from the true business leaders.
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 Coming soon:
The December issue of MM&D!
Turning the page
What happens when your business outgrows the capabilities of your facility? If you're Scholastic Canada, you start a whole new chapter. We get the full story on the educational book supplier's Markham, Ontario DC.
Plus:
Navigating NAFTA
Why you need a reverse logistics strategy
Truckload vs LTL: which is best for your business?
How bad letters of credit could halt your cargo
...and more!
News
US Homeland Security sets out 10+2 rules
After months of consultations, the US Department of Homeland Security has established a set of new rules for maritime cargo destined for its ports—and they are less rigorous than many in the industry expected.
The Importer Security Filing and Additional Carrier Requirements interim final rule, known by most as "10+2", will require maritime cargo carriers and importers to submit additional information to US Customs and Border Protection (CBP) at least 24 hours before the cargo is loaded aboard a vessel destined for the US.
Under the new rule, importers must submit an Importer Security Filing (ISF) containing several new data elements. The data elements include the seller, the buyer, the importer of record number or foreign trade zone applicant identification number, the consignee number, the manufacturer or supplier, the ship to party, the country of origin, the Commodity Harmonized Tariff Schedule of the United States (HTSUS) number. The rule provides flexibility for importers on the latter four data elements, allowing them to provide a range of responses on a 'best-available' information basis instead of a single answer.
Importers must also include the container stuffing location and the consolidator on the ISF.
The US National Association of Manufacturers applauded the flexibility of the rules, stating that the ability to provide the four most difficult data elements on a best-available basis is a marked improvement over the original 10+2 draft, which would have required all 10 data elements in advance.
Carriers must provide a vessel stow plan and container status messages.
The new rules affect non-US importers whose cargo calls at US ports as well. For shipments consisting entirely of foreign cargo remaining on board (FROB), cargo intended to be transported in-bond as an immediate exportation (IE) or shipments for transportation and exportation (T&E), five data points must be included in the ISF: the booking party, the foreign port of unlading, the place of delivery, the ship to party and the commodity HTSUS number.
The new rules take effect January 26, 2009.
www.dhs.gov
2007 a record year for railfreight
Canadian railways carried 361.6 billion revenue tonne kilometres of freight in 2007, breaking the record 355.8 billion revenue tonne kilometres logged in 2006 by 1.6 percent.
This uptick brought freight revenue to a record $9.5 billion across the board, a 0.9 percent—or $86 million—increase over the record set the year before.
The Railway Association of Canada (RAC) broke this news in its recent 2008 Railway Trends publication.
At the same time the number of carloads originated and tonnes originated contracted by 1.5 percent and 0.4 percent, respectively. According to the RAC, this contrast can be explained by the fact that the 2007 average length of haul was 1.3 percent longer than in 2006, giving revenue tonne kilometres the positive year-over-year result.
Intermodal led freight growth at 66.9 percent from 1998 to 2007. It is followed by minerals, which grew by 27.6 percent over the same period.
www.railcan.ca
Major money for Manitoba roads
Manitoba's provincial government has added $45 million to its $4-billion, 10-year highway renewal plan.
The addition includes $30 million in new capital for accelerated highway improvements. This brings the highway budget for the province to $460 million in 2009.
Among the projects scheduled for the coming year are the rebuilding or rehabilitation of more than 50 bridges and structures, as well as improvements to more than 100km of Trans-Canada Highway from Headingley to Portage la Prairie and from Brandon to the Saskatchewan border. The northern highways PR 373 and 374 are also set to receive a facelift.
The funding also includes work on the first leg of a road on the east side of Lake Winnipeg.
Ron Lemieux, Manitoba's infrastructure and transportation minister, said the investment in the province's roads is long overdue.
"In the first three years of our historic highway plan, we will spend well over $1.2 billion. That is nearly the entire expenditure on highways over the entire decade of the 90s, which was just over $1.4 billion," he said.
www.gov.mb.ca
Boat tails and moose bumpers
In an effort to push its enviroTruck initiative forward, the Canadian Trucking Alliance (CTA) has requested that changes be made to standards on the weights and dimensions of tractor-trailers.
At a presentation to the National Task Force on Vehicle Weights and Dimensions in Toronto last week, CTA representatives called for regulations that would make it easier for Canadian truckers to adopt environmentally friendly technologies. Currently, a variety of weight and dimension regulations prevent the deployment of green technologies.
The CTA's wish list includes several exemptions and extensions of existing rules.
The organization is calling for an exemption of 1,000lb from a vehicle's gross weight for auxiliary power units and other new engine technology. It is also asking that wide-based tires be allowed at 9,000kg per axle for provinces east of and including Ontario, and 8,500kg per axle for provinces west of and including Manitoba.
The CTA requested that carriers be given permission to add fuel-efficient boat tails to trailers without dimension penalties, and that length and width considerations be granted for moose bumpers.
According to the CTA, these changes would allow road carriers to offer customers more competitive and green service.
www.cantruck.ca
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Calling all 3PLs!
MM&D is preparing our 2009 Third-Party Logistics (3PL) Capability Guide and Directory. This special section—which will run in our January/February 2009 issue—is the authoritative guide to help Canadian shippers choose the right outsourcing partner. Don't miss your chance to receive a FREE listing.
To request a form or to check if your company qualifies, please contact Deborah Aarts (deborah.aarts@mmd.rogers.com) with "3PL directory" in the subject line.
The deadline for submissions is December 12, 2008.
The MM&D Library
We review the supply chain's hottest reads.
The Role of Transportation in the Supply Chain
Editors: Kenneth Hazen and Clifford Lynch
Publisher: CFL Publishing (2008)
Who it's for: Practicing logisticians and students.
What it covers: The book's 14 chapters cover all four modes and detail important issues like pricing, freight bill payments, regulations and carrier/shipper relationships.
Why it matters: The book's co-authors Hazen and Lynch—who work as president and CEO and executive vice-president, respectively, of supply chain management services provider CTSI, know what they're talking about; with more than 75 years of experience and other joint publications between them, they have the authority to create a comprehensive guide to the transportation side of the business.
www.ctsi-global.com/transportationbook.asp
Have you read a great book on the supply chain lately? Let your peers know! Submit a brief review explaining a) who it's for, b) what it covers and c) the lesson to take away from it to Deborah Aarts (deborah.aarts@mmd.rogers.com) with the subject line "MM&D Library". Don't forget to include your name, title and company, as well as detailed information on the book (including its full title, author(s), publisher and date). Happy reading!
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| Acronym
of the week
NATSD
What it stands for: North American Transportation Statistics Database
What it means: An online database of information on transportation within and between Canada, the US and Mexico. Data is pulled from participating agencies from all three countries, including Statistics Canada and Transport Canada.
Why it matters: The database is the first central web-based source for North American transportation statistics that covers common subjects for all three countries. According to its website, it "reflects the increase in global economic growth and greater integration of trade, finance and manufacturing in recent decades," and is particularly relevant because "Reduced trade barriers and increased personal mobility have created a heightened need for information on transportation infrastructure and services among Canada, the US and Mexico."
http://nats.sct.gob.mx/nats/sys/index.jsp?i=3
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People
William Spurr has joined Mercator Transport Group Corporation's board of directors.
Spurr is the former president of Bombardier Transportation – North America. He held several executive positions at Bombardier Inc and its subsidiaries, including tenure as vice-president, project development and as president of Bombardier Transportation.
He has been involved as a project manager and research and development engineer for major engineering firms operating in the Middle East and Africa.
The Intermodal Association of North America (IANA) has announced that George Baima, executive vice-president of Chicago, Illinois-based Pacella Trucking Express, Inc, is the 2008 winner of its Silver Kingpin Award. The award recognizes individuals for their long-term contributions to the intermodal industry. Baima has worked in the intermodal business for 50 years, and has served on the board of directors of IANA for many years.
www.intermodal.org
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MM&D Poll
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New
products
 Cold comfort
Milwaukee, Wisconsin-based Zoneworks has created a new line of insulated curtain walls that make it easier to partition large interior spaces for temperature and energy savings.
The TZ series is made of fire-retardant industrial fabric surrounding several layers of recyclable, anti-microbial polyester batting. It can be installed by mounting to existing ceiling structures or designed with a custom framework.
The curtain walls can provide as much as 22 degrees Celsius (40 degrees Fahrenheit) of temperature separation. They are designed to occupy a smaller footprint than permanent walls, and can be configured into three- or four-sided structures.
www.zoneworks.com
 RFID in the cards
Sokymat Automotive GmbH has released a new range of white contactless RFID cards that work in both high-frequency and low-frequency applications.
The cards are standard credit card-sized PVC cards equipped with an overlay that allows for personalization and application-specific printing by any common card printers. They are ISO 7810-compliant and available in the common 125kHz and 13.56MHz frequencies.
According to Sokymat, the cards are ideal for logistics and other industrial applications, especially those involving security.
www.sokymat-automotive.de
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Events & Opportunities
ie Canada Workshop Series: Cost-Saving Customs Strategies & HS Classification
December 8, 2008, Winnipeg, Manitoba
December 9, 2008, Saskatoon, Saskatchewan
December 10, 2008, Calgary, Alberta
December 11, 2008, Vancouver, British Columbia
January 19, 2009, Markham, Ontario
Cost: ie Canada members, $195-$345; non-members, $275-$445
www.iecanada.com
SCL Canada British Columbia Chapter Holiday Networking Event
December 8, 2008, Burnaby, British Columbia
Cost: Members, free; non-members, $20 (GST extra; please bring a non-perishable food item)
www.sclcanada.org/fileadmin/events/regional/vancouver_holidayflyer_copy.pdf
Freight Demand Forecasts: What are the Challenges for the Ontario-Quebec Continental Gateway and Trade Corridor?
December 8-9, 2008, Toronto, Ontario
Cost: $350 (GST extra)
www.cita-acti.ca
SCL Canada Calgary Chapter Holiday Networking Event
December 11, 2008, Calgary, Alberta
Cost: Members, free; non-members, $20 (GST extra; please bring a non-perishable food item)
www.sclcanada.org/fileadmin/events/regional/Calgaryholidayflyer.pdf
APICS and the Institute of Business Forecasting and Planning (IBF):
Best of the Best Sales and Operations Planning Conference
December 11-12, 2008, Dallas, Texas
Cost: US$1,395
http://ibf.org/conferences.cfm?fuseaction=conferenceDetail&conID=229
SCL Canada South Western Ontario Chapter Launch and Holiday Networking Event
December 17, 2008, Burlington, Ontario
Cost: Free (pre-registration required; please bring a non-perishable food item)
www.sclcanada.org/index.php?id=595
Canadian Supply Chain Sector Council (CSCSC) Focus Groups: Education/Certification Phase II Project and Occupational Standards Project – Sales and Marketing Manager
January 12, 2009, Montreal, Quebec
Cost: Free
www.supplychaincanada.org/en/education-certification-project
www.supplychaincanada.org/en/occupational-standards-project
ProMat 2009
January 12-15, 2009, Chicago, Illinois
www.promatshow.com
Institute for Supply Management J Shipman Gold Medal Award
Nomination deadline: January 31, 2009
http://www.ism.ws/about/content.cfm?ItemNumber=4515&navItemNumber=5459
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