Mitch Mac Donald has more than 30 years of experience in both the newspaper and magazine businesses. He has covered the logistics and supply chain fields since 1988. Twice named one of the Top 10 Business Journalists in the U.S., he has served in a multitude of editorial and publishing roles. The leading force behind the launch of Supply Chain Management Review, he was that brand's founding publisher and editorial director from 1997 to 2000. Additionally, he has served as news editor, chief editor, publisher and editorial director of Logistics Management, as well as publisher of Modern Materials Handling. Mitch is also the president and CEO of Agile Business Media, LLC, the parent company of DC VELOCITY and CSCMP's Supply Chain Quarterly.
If you've signed up for professional development courses this year, you're not alone. A new poll of U.S. business executives indicates that 31 percent plan to participate in training and professional development programs in 2006. Here's hoping at least some of them will choose classes on logistics strategy and technology.
Here's why. The end game in logistics today is to boost efficiency and drive out costs, and the means to that end is invariably technology. Surging sales, demands to do more with less, and the need to manage sprawling global supply chains have left managers with little choice but to abandon their manual processes and harness the technologies available today.
Implementing technology-based solutions, though, generally requires a change in process. And that can be a tough sell. It's human nature to resist change, particularly change that threatens to disrupt employees' routines. All too often, instead of embracing the new technologies, people find "work-arounds" that make the new system work as much like the old one as possible.
That's where training comes in. The best way to discourage employees from subverting the new technology is to provide thorough, detailed training. The hope is that if you explain what the technology can do and why it will help the business, people will embrace the change in process it may require. It's not enough to delve into the new system's mechanics; you also have to persuade the users that it's to everybody's advantage to do things the new way.
This is where many companies stumble. "We all need to shift our training a bit," says Gary Maxwell, senior vice president of merchandise replenishment at Wal-Mart. "We need to include not only the tactical 'how-to,' but also the strategic 'why'. Understanding the basic underlying reason we are doing things differently is critical to success."
In fact, Wal-Mart makes a point of doing just that whenever it introduces a new technology or process—which is to say, all the time. Take the case of a trainer assigned to teach employees how to enter data into a new warehouse management system (WMS) or analyze reports from a new RFID-enabled inventory-tracking program. Before he or she dives into the details, that trainer first explains why the new process is important to the retailer's business strategy. Trainees come away with a full understanding of how using that WMS or RFID system helps the retailer achieve its goal of perfect in-stock performance: having all items in stock all the time.
If you'd like to learn more about logistics strategies and the technologies that support them, you'll have plenty of opportunities in 2006. Throughout the year, industry associations like the Warehousing Education and Research Council (WERC), the Material Handling Industry of America (MHIA), and the Council of Supply Chain Management Professionals (CSCMP) will offer a variety of courses and seminars.
Next month, for instance, the MHIA hosts its semi-annual North American Material Handling and Logistics Trade Show and Conference (NA 2006) in Cleveland. Registered attendees can choose from a host of seminars and courses, many of which are free. (For more information on classes scheduled during NA 2006, see RoadTrip, page 18.) In May, the annual WERC Conference in Orlando, Fla., will feature a full slate of seminars on strategies, tactics and tools you can use to improve operations. And in October, the CSCMP will host its 2006 Annual Conference, which packs literally hundreds of educational sessions into just two and one-half days. In fact, that annual conference has become a yearly pilgrimage for many logisticians looking to stay ahead of the game.
Why not join them and take advantage of the professional development opportunities offered this year? Gaining a deeper understanding of how logistics can support corporate strategy will only make you better at your job. And when it comes time to introduce your staff to the new processes, you'll have no trouble telling them why you're doing it and—more importantly—why it's good for you, for them, and for the company.
Motion Industries Inc., a Birmingham, Alabama, distributor of maintenance, repair and operation (MRO) replacement parts and industrial technology solutions, has agreed to acquire International Conveyor and Rubber (ICR) for its seventh acquisition of the year, the firms said today.
ICR is a Blairsville, Pennsylvania-based company with 150 employees that offers sales, installation, repair, and maintenance of conveyor belts, as well as engineering and design services for custom solutions.
From its seven locations, ICR serves customers in the sectors of mining and aggregates, power generation, oil and gas, construction, steel, building materials manufacturing, package handling and distribution, wood/pulp/paper, cement and asphalt, recycling and marine terminals. In a statement, Kory Krinock, one of ICR’s owner-operators, said the deal would enhance the company’s services and customer value proposition while also contributing to Motion’s growth.
“ICR is highly complementary to Motion, adding seven strategic locations that expand our reach,” James Howe, president of Motion Industries, said in a release. “ICR introduces new customers and end markets, allowing us to broaden our offerings. We are thrilled to welcome the highly talented ICR employees to the Motion team, including Kory and the other owner-operators, who will continue to play an integral role in the business.”
Terms of the agreement were not disclosed. But the deal marks the latest expansion by Motion Industries, which has been on an acquisition roll during 2024, buying up: hydraulic provider Stoney Creek Hydraulics, industrial products distributor LSI Supply Inc., electrical and automation firm Allied Circuits, automotive supplier Motor Parts & Equipment Corporation (MPEC), and both Perfetto Manufacturing and SER Hydraulics.
The move delivers on its August announcement of a fleet renewal plan that will allow the company to proceed on its path to decarbonization, according to a statement from Anda Cristescu, Head of Chartering & Newbuilding at Maersk.
The first vessels will be delivered in 2028, and the last delivery will take place in 2030, enabling a total capacity to haul 300,000 twenty foot equivalent units (TEU) using lower emissions fuel. The new vessels will be built in sizes from 9,000 to 17,000 TEU each, allowing them to fill various roles and functions within the company’s future network.
In the meantime, the company will also proceed with its plan to charter a range of methanol and liquified gas dual-fuel vessels totaling 500,000 TEU capacity, replacing existing capacity. Maersk has now finalized these charter contracts across several tonnage providers, the company said.
The shipyards now contracted to build the vessels are: Yangzijiang Shipbuilding and New Times Shipbuilding—both in China—and Hanwha Ocean in South Korea.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
The New Hampshire-based cargo terminal orchestration technology vendor Lynxis LLC today said it has acquired Tedivo LLC, a provider of software to visualize and streamline vessel operations at marine terminals.
According to Lynxis, the deal strengthens its digitalization offerings for the global maritime industry, empowering shipping lines and terminal operators to drastically reduce vessel departure delays, mis-stowed containers and unsafe stowage conditions aboard cargo ships.
Terms of the deal were not disclosed.
More specifically, the move will enable key stakeholders to simplify stowage planning, improve data visualization, and optimize vessel operations to reduce costly delays, Lynxis CEO Larry Cuddy Jr. said in a release.
Cowan is a dedicated contract carrier that also provides brokerage, drayage, and warehousing services. The company operates approximately 1,800 trucks and 7,500 trailers across more than 40 locations throughout the Eastern and Mid-Atlantic regions, serving the retail and consumer goods, food and beverage products, industrials, and building materials sectors.
After the deal, Schneider will operate over 8,400 tractors in its dedicated arm – approximately 70% of its total Truckload fleet – cementing its place as one of the largest dedicated providers in the transportation industry, Green Bay, Wisconsin-based Schneider said.
The latest move follows earlier acquisitions by Schneider of the dedicated contract carriers Midwest Logistics Systems and M&M Transport Services LLC in 2023.