Leader
Policy well played
 |
By Deborah Aarts |
Heading into 2008, the St Lawrence Seaway Management Corporation (SLSMC) faced an uncertain outlook. The 2007 shipping season was less than stellar, and there remained plenty of unused capacity. It was apparent that some of its fundamental operational conditions just weren’t jiving with the market.
So what to do?
Management took an unvarnished look at the situation to find a practical and sustainable means to entice shippers—especially those moving coveted container shipments—onto the waterway. It studied the market carefully and assessed its own capabilities critically.
From there, it sat down at the bargaining table with Transport Canada and hammered out a new tariff schedule, which took effect when the SLSMC opened its shipping season a few weeks back.
The revised schedule states that the Seaway’s tolls will remain frozen until 2010, giving shippers the ability to plan longer-term. Traffic classified as new business will receive a 20 percent discount on tolls, while shippers adding incremental volumes to their tallies will be eligible for a 10 percent break. The Welland Canal’s lock fees have been restructured as well. (Look for more on this in the May issue of MM&D).
The move will generate less revenue for the SLSMC in the immediate term—as much as $3.5 million is at risk—but it could pay off in dividends if it pulls more ships into its waters. The Seaway projects shortfalls in 2009, and probably into 2010 as well, but hopes to be recouping any losses and generating new revenue by 2011.
Of course, the proof will be in the pudding, but I’m willing to wager the gamble will at the very least attract more attention to the Seaway. Who knows? It could be the catalyst that turns it into a bustling freight artery.
This is an example of stakeholders looking at a problem, determining its root and taking clear action—even though, gasp, there is risk involved—to improve the situation. It seems so simple. But it’s not.
Often in Canada, policy developments get mired in bureaucratic chaos as governments, operating agencies, shippers and carriers all clamber to achieve unique—and sometimes conflicting—interests. Studies are commissioned and vanish into the ether, decisions lie fallow in legislative channels, pressing problems (like infrastructure) are pushed aside for hot political issues (like the environment). The Byzantine structure of our government does not help, nor does the multi-faceted nature of the supply chain.
In this rigmarole, it’s refreshing to see sound policy emerge in an expedient, practical and clever fashion. That makes the SLSMC’s toll freeze—however it may turn out—worthy of praise.
Top
News
Air carriers exceed green projections
The Air Transport Association of Canada (ATAC) has released an update on the aviation industry’s environmental performance, and the numbers prove it’s ahead of the curve.
Last week, the association released its 2006 Annual Report on the Voluntary Agreement on the Reduction of Greenhouse Gas Emissions. More than a year in the making, the report stems from a 2005 agreement with the Transport Canada that saw ATAC promise to encourage its members to improve environmental efficiency and reduce greenhouse gas emissions.
That agreement challenged air carriers to reduce emissions on a per-unit basis by 1.1 percent annually, which would create a cumulative improvement of 24 percent in 2012 compared to 1990 base numbers.
The new numbers exceed those figures handily, which ATAC president and CEO Sam Barone says is a sign the industry is taking the carbon challenge seriously. From 2003 to 2006, Canadian air carriers achieved a 6.6 percent reduction in emissions, producing a 25.6 percent reduction compared to 1990 levels.
“While there is more work to be done, we are pleased that this report reflects the significant investments made by Canadian carriers in fleet modernization and various operational changes in order to reduce the amount of fuel consumed,” said Barone.
http://www.atac.ca/en/publications/index.html
Rail review gains momentum
As promised, Transport Canada launched its rail freight service review last week.
The review came about following recent amendments to shipper protection provisions of the Canada Transportation Act. The federal government committed to a full review of railway service following royal assent, which occurred on February 28 of this year.
The review will encompass Canada’s rail-based logistics chain, including shippers, terminal operators, ports and vessels, with a focus on service provided to Canadian shippers and customers by CN and CPR within Canada, including to and from ports and border crossings.
Draft terms of reference have already been reviewed by the Coalition of Rail Shippers, CN and CPR and revised based on feedback. Other interested parties can weigh in on the draft terms of reference until May 11.
If the process goes as proposed, the information gathered in the first phase of the review (which may include shipper surveys and comparative studies of other modes and countries) will go before a three-person panel, which will work with stakeholders to develop recommendations and present a final report to the Minister of Transport, Infrastructure and Communities.
The terms of reference are available online at http://www.tc.gc.ca/mediaroom/releases/nat/2008/08-h091e.htm#bg.
To comment, contact Helena Borges at borgesh@tc.gc.ca
Montreal prepares for container growth
At its annual general meeting last week, the head of the Montreal Port Authority (MPA) revealed an optimistic outlook for container growth.
MPA president and CEO Patrice Pelletier said that containerized cargo will be essential to the port’s development going forward. While volume at the port was up 3.6 percent in 2007, container traffic soared to 9.4 percent. And this, he said, is no short-term trend.
"All indicators show that marine container traffic on the east coast of North America will grow annually by seven percent till 2015,” he said, calling the Port of Montreal a “significant and true” generator of wealth resulting from this traffic.
But to prepare for new container traffic from Asia via Europe, the Suez Canal and the Panama Canal, the port will have to pony up some major money, he said. A new strategic plan going forward to 2020 includes major investments in new infrastructure. This, Pelletier said, will help the port keep up with its US competitors.
“The American east coast ports are making significant investments to increase their capacity and shorten transit times to the rich and well-populated US Midwest market,” he stated. “We have to act now to keep and grow our market share.”
www.port-montreal.com
MIT SCALEs up collaboration
The Massachusetts Institute of Technology’s Centre for Transportation and Logistics (MIT-CTL) is bringing together some of the world’s top supply chain brains.
The institute has created the Global Supply Chain and Logistics Excellence (SCALE) Network, an international alliance of researchers and educators dedicated to promoting supply chain and logistics excellence through innovation.
The network is designed to allow faculty, researchers, students and affiliated companies from all participating centres to pool expertise and collaborate on projects help companies to compete in an increasingly complex global business environment.
Currently, the Global SCALE Network spans North America, Latin America and Europe, with Cambridge, Massachusetts-based MIT-CTL, the Zaragoza Logistics Centre (ZLC) in Zaragoza, Spain and the Centre for Latin-American Logistics Innovation (CLI) in Bogotá, Colombia already on board. Before long, organizers hope to welcome institutions from Asia and Africa as well.
“Today’s supply chains stretch around the world and back again, requiring successful organizations to have an on-the-ground understanding of the logistics, supply chain and general business challenges and opportunities in every region,” explained MIT-CTL director Yossi Sheffi. “The Global SCALE Network will provide that global context through research projects that will literally be taking place around the world.”
http://ctl.mit.edu
Top
The MM&D Library
We review the supply chain's hottest reads.
Start Pulling Your Chain! Leading Responsive Supply Chain Transformation
Authors: Donald Bowersox and Nicholas LaHowchic
Publisher: Council of Supply Chain Management Professionals (2008)
Who it's for: Anyone working in an organization that is adjusting to the changing role of its supply chain.
What it covers: The book outlines a four-stage leadership transition process of how to face the challenges of emerging technologies without sacrificing profit or customer satisfaction. A special postscript explains how senior leadership can develop a plan to initiate their own responsive supply chain transformation.
The lesson: In order to take advantage of new technology in the supply chain, companies need to reconsider business purposes, models, tools and cultures.
https://cscmp.org/cscmpstore
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!
| Acronym
of the week
EDO
What it stands for: Economic development office
What it means: Organizations dedicated to spurring the economic growth of a particular municipality or region.
Why it matters: ‘What does economic development have to do with my supply chain operations’, you ask? Plenty, it turns out. When you’re looking to expand or relocate your operations, an EDO can be your best asset, co-ordinating everything from municipal permits to talent recruitment. The cover story of the May issue of MM&D examines in detail the crucial role the local EDO played in one shipper’s efforts to consolidate and relocate distribution operations.
|
MM&D Technology Evaluation
Center:
Take the guesswork out of your next software selection
project. Compare up to 800 enterprise software products
using the new MM&D Technology Evaluation Center.
http://www.technology-evaluation.com/cb/mmd
|
People
Bob Hart is the new chief operating officer at the Hamilton Port Authority.
Hart has been a senior financial representative with the HPA for the past 20 years, most recently as chief financial officer and corporate secretary. He served on the board of directors of the Association of Canadian Port Authorities from 2005 to 2007.
In his new role, he is now responsible for the port’s engineering, maintenance, real estate, security, environment and Harbour-West Marina, as well as management of corporate revenue streams.
www.hamiltonport.ca
The Canadian Trucking Alliance has announced its executive committee for 2008-2010. Bruno Muller of Caron Transportation Systems is the chairman, Paul Easson of Easson’s Transport Ltd is first vice-chairman and Scott Johnston of Siemens Group of Companies is second vice-chairman. Mark Seymour of Kriska Transportation is secretary, while Don Streuber of Bison Transportation Ltd is treasurer. David Bradley remains CEO.
Members-at-large include Gord Peddle of D & D Transport Ltd, Gene Orlick of Orlick Transport Ltd, Eric Gignac of Transport Guilbault Ltee and Scott Smith of JD Smith & Sons Ltd.
www.cantruck.ca
Top
MM&D Poll
Does your company adhere to Lean or Six Sigma principles? [25 votes total]
|
| Yes–we're Lean |
 20% |
| Yes–we follow Six Sigma |
 12% |
| We incorporate elements of both |
 36% |
| No |
 32% |
Top
New
Products
|
 Reusable temp-controlled container
Entropy Solutions has created a new temperature-controlled shipping container designed to keep contents at a consistent temperature for more than five days.
The company’s Greenbox is constructed of a plastic outer shell, insulation panels and a combination of patented phase-change materials called E-Packs. The phase-change materials simultaneously absorb and release heat, creating a constant temperature for more than five days.
The Greenbox is meant for use in the pharmaceutical, biologics and blood industries. According to the company, it is particularly useful for keeping product at the right temperature in remote, frigid environments—like northern Canada.
www.greenboxsystems.com
Free AS/RS configuration tool
The Material Handling Institute of America (MHIA) has launched a free tool to optimize the storage capacity and throughput of unit load automated storage and retrieval systems (AS/RS).
The ExAS/RS v2.0 configuration tool uses Excel-based software to determine how to best design a unit load AS/RS. It factors in design issues—like the number of aisles and rack dimensions, for example—to support user-defined throughput and storage capacity requirements.
The application is available at no cost at www.mhia.org.
|
Top
NEW
JOBS ONLINE! TELL
HUMAN RESOURCES
ABOUT THIS MM&D LINK!
Look
For a New Job Here: http://www.jobsinlogistics.com
If you're
looking for a new job, want to improve your supply chain
career or seek to fill a new position, you should visit MM&D's
Career Resource Centre, in conjunction with JobsInLogistics. MM&D now
provides the Canadian marketplace with the largest career
and recruitment board for supply chain, logistics, transportation,
distribution, materials management and human resource professionals.
MM&D's
Career Resource Centre
MM&D's Career Resource
Centre has been custom-designed for
the Canadian market. This board offers
more jobs and top-quality candidates
for the logistics, supply chain,
transportation, distribution and
materials management professions
than any other board on the Internet.
Visit this site to advertise your
open positions or check out career
opportunities. Visit www.jobsinlogistics.com and find a new job—TODAY!
Events & Opportunities
Canadian Transportation Awards Program
Deadline for nominations: April 18, 2008
www.tac-atc.ca/english/projectsandpublications/ctap.cfm
ie Canada Emerging Issues Semi-Annual Conference
April 21-23, 2008, Toronto, Ontario
Cost: ie Canada members, $495-$1,095; non-members, $795-$1,395
http://www.importers.ca/events.html#crosscanada
NA 2008 – The 2008 Material Handling & Logistics Show and Conference
April 21-24, 2008, Cleveland, Ohio
Cost: US$695 for each educational workshop; show admission is free with advance online registration
http://www.nashow.com/about.aspx
Freight and Logistics Workshops: Freight Planning and Logistics Management
April 22, 2008, Vancouver, British Columbia
April 25, 2008, Calgary, Alberta
April 29, 2008, Toronto, Ontario
May 6, 2008, Montreal, Quebec
Cost: Free
http://logistics.regionomics.com
First Annual Healthcare Supply Chain Network National Healthcare Supply Chain Conference
April 27-29, 2008, Toronto, Ontario
Cost: $395-$550
www.hfconferences.ca/hscn
Canadian Pallet Council 31st Annual General Meeting and Conference
April 29, 2008, Toronto, Ontario
Cost: $425
www.cpcpallet.com
The BC Industrial Expo
April 30 – May 1, 2008, Abbotsford, British Columbia
Cost: $20
www.bcindustrialexpo.ca
The 2008 Electronic Industry Supply Chain Conference
May 1-2, 2008, Las Vegas, Nevada
Cost: $395-$595
http://www.erai.com/publicvegas08.aspx
Creating Resilient Supply Chains
41st Annual SCL Canada Conference
May 4-6, 2008, Toronto, Ontario
Cost: $500-$1,545.
http://www.sclcanada.org/index.php?id=204
Warehousing Education and Research Council (WERC) Annual Conference
May 4-7, 2008, Chicago, Illinois
Cost: $665-$1,500
http://www.werc.org/Conference/tabid/59/Default.aspx
Canadian Association of Pharmacy Distribution Management (CAPDM) Annual Conference
May 4-8, 2008, Orlando, Florida
Cost: $3,850-$5,975
http://www.capdm.ca/events/annual_conference_08/annual_conference.asp
Supply Chain Connections
University of Manitoba Transport Institute Annual Conference
May 13, 2008, Winnipeg, Manitoba
Cost: $350
http://umanitoba.ca/faculties/management/ti/conferences/index.html
On the Crest of A New Wave
83rd Annual PMAC National Conference
May 21-23, 2008, St John’s, Newfoundland
Cost: $400-$975
http://www.pmac.ca/event/national_conference.asp
Taming that Monster Under the Bed: Exploring Critical Relationships Between Supply Chains and the Environment Conference
June 9-10, 2008, Calgary, Alberta
Cost: $550; students, $75 (GST extra)
www.supplychainsenvironment.ca/conference/
The Pharmaceutical and Personal Care Logistics Association (PPCLA) 50th Annual General Meeting
June 18-20, 2008, Gatineau, Quebec
http://ppcla.org/en/conferences_u.htm
Top
|
With stock spilling into costly overflow facilities, Whirlpool Canada knew it needed to revamp its eastern Canadian distribution network. The acquisition of a major competitor pushed the situation into overdrive. The company created the capacity it needed in a brand-new, 754,000sqf major appliance DC in Milton, Ontario. We explore its development, its operations and how it's positioned to pay off—in terms of efficiency, economy and the environment.
