Defense Transportation Journal by Defense Transportation Journal

The Official Publication of the National Defense Transportation Association

October 2013

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October 2013

FEATURES Domestic Multimodal Shipping October 2013 • Vol 69, No. 5

Publisher

LTG Ken Wykle, USA (Ret.) Editor

Dr. Kent N. Gourdin Managing Editor

Sharon Lo | sharon@ndtahq.com

By Brett Beavers

The 3D Printed Supply Chain

Stronger, Faster, and More Flexible

By LT Jason T. Ray, SC, USN

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departments Defense Transportation Journal (ISSN 0011-7625) is published bimonthly by the National Defense Transportation Association (NDTA), a non-profit research and educational organization; 50 South Pickett Street, Suite 220, Alexandria, VA 22304-7296, 703-751-5011. Copyright by NDTA. Periodicals postage paid at Alexandria, Virginia, and at additional mailing offices. Subscription Rates: One year (six issues) $35. Two years, $55. Three years, $70. To foreign post offices, $45. Single copies, $6 plus postage. The DTJ is free to members. For details on membership, visit www.ndtahq.com. Postmaster: Send address changes to: Defense Transportation Journal 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296

Editorial | Dr. Kent N. Gourdin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Chapter spotlight | Norm Galer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 President’s Corner | LTG Ken Wykle, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 professional development | Irvin Varkonyi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 chairman’s circle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 honor roll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Bookshelf Ideas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 index of advertisers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

EDITORIAL

NDTA Headquarters Staff LTG Kenneth Wykle, USA (Ret.) President

Back to School

COL Mark Victorson, USA (Ret.) VP Membership

Dr. Kent N. Gourdin, Editor, DTJ

Patty Casidy VP Finance Lee Matthews VP Marketing and Corporate Development Leah Ashe Manager, Database Sharon Lo Director of Public Relations Rebecca Jones Executive Assistant to the President Carl Wlotzko Coordinator, Banquet & Special Events For a listing of current Committee Chair-persons, Government Liaisons, and Chapter & Regional Presidents, please visit the Association website at www.ndtahq.com.

Editorial Objectives The editorial objectives of the Defense Transportation Journal are to advance knowledge and science in defense logistics and transportation and the partnership between the commercial transportation industry and the government transporter. DTJ stimulates thought and effort in the areas of defense transportation, logistics, and distribution by providing readers with: • News and information about defense logistics and transportation issues • New theories or techniques • Information on research programs • Creative views and syntheses of new concepts • Articles in subject areas that have significant current impact on thought and practice in defense logistics and transportation • Reports on NDTA Chapters Editorial Policy The Defense Transportation Journal is designed as a forum for current research, opinion, and identification of trends in defense transportation and logistics. The opinions expressed are those of the authors and not necessarily of the Editors, the Editorial Review Board, or NDTA. Editorial Content For a Media Kit and Archives, visit www.ndtahq.com/education_dtj.htm Dr. Kent N. Gourdin, Editor, DTJ Director of the Global Logistics & Transportation Program, College of Charleston, Charleston, SC 843-953-5327 • F 843-953-5697 gourdink@email.cofc.edu Sharon Lo, Managing Editor, DTJ NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761 sharon@ndtahq.com

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Defense Transportation Journal

Director, Global Logistics and Transportation Program College of Charleston

n thinking back over the years I have been writing this editorial, I cannot recall ever doing a back-to-school theme. I think this slot has always been reserved for the Forum issue, which probably explains it. I’m still bummed we won’t be gathering for the Forum this fall; I’ll miss seeing all of my peeps and catching up on the latest DTS developments. As I write this, classes are about to start and this place is kind of crazy. I must admit to being surprised at the number of students interested in starting our Global Logistics and Transportation Program this year. I think the word may finally be getting out about the high-quality jobs available to those with some background in transportation, logistics, or supply chain management. We held a South Carolina Supply Chain Summit here in Charleston last March, where we brought state higher education academic institutions (two- and four-year) together with key businesses to talk about what the latter needed and what the former could provide in the way of supply chain education. One thing that became apparent very quickly was that there is a big shortage of qualified people available to fill the number of open jobs. Perhaps the best example of this deficit is the growing shortage of qualified truck drivers, a situation expected to get worse before it gets better. Because our two-year technical college partners are very involved in training and work-force development education, we included them in our summit along with the four-year schools. At any rate, I tell my students, somewhat tongue in cheek, that if they can even spell “logistics” they’ll be lightyears ahead of most of their competition in the job market. The fact is that our students are getting great jobs with companies like Michelin, Norfolk Southern, Maersk, and JC Penney, just to name a few. But along with the job possibilities is the fact that more students are drawn to the area because they simply find it an interesting field of study, even

October 2013

though they often don’t know what “it” is. Higher education offerings may be in logistics, transportation, supply chain management, physical distribution, purchasing, or something else. Some schools offer bachelor, masters, and doctoral degrees, while others may not even have a single class. Here at the College of Charleston we offer a minor in global logistics and transportation, and are in the process of requesting permission to offer an undergraduate major in supply chain management. I tried to push the major five years ago, but couldn’t convince my liberal arts colleagues of its relevance. The times they are a’changing, however, and I think I’ll have better luck this time. Ironically, I’ve always had students in the program who were majoring in a foreign language, communications, political science, or some other liberal arts area that fit very well with a minor in global logistics. Clearly, the supply chain area is becoming more important to firms, which will increase their need for qualified employees. Institutions of higher education can meet some of that demand with increased programing at all academic levels, but perhaps we should be reaching back into the high schools to make those students aware of the career opportunities available in the myriad components of logistics with or without a college degree. How powerful would it be to show these kids a ship, better yet get them on one, just to experience the sheer magnitude of a modern cargo vessel? Even things like a port tour or a chance to sit in an 18 wheeler can put a tangible face on the world of logistics and transportation. Heck, all of those things still get ME excited. The recession seems to be ending, global trade is expected to continue growing, and those with logistics skills and knowledge are in demand. The more students we can convince to pursue studies in logistics and supply chain management, the better off we’ll be. They are, after all, our future. DTJ

Chapter Spotlight St. Louis, the Spirit Lives On Norm Galer Chapter President, NDTA Scott-St. Louis Chapter 82

ocated at the confluence of the Mississippi and Missouri rivers, St. Louis like many industrial cities owes its existence and rise in prominence to transportation. Established in 1763, the city joined the US with the Louisiana Purchase in 1803. St. Louis served for decades as the most westward urban location for those heading further west, earning the lasting nickname “Gateway to the West.” In 1817, the steamboat Zebulon M. Pike docked in St. Louis, transforming river travel on the Mississippi. With upstream travel now viable, trade boomed for all the port cities on the Mississippi, Missouri, and Ohio Rivers. By the 1850s, St. Louis was the second largest port in the nation. The dominance of river travel was shortlived, as railroads were soon built. St. Louis was fortunate to also serve as a major rail hub, which not only mitigated the impact of declining river traffic, but left its own lasting impact. When completed in 1894, St. Louis’ Union Station was the largest passenger station in the US. By the 1920s, over 90,000 trains passed through St. Louis annually. As a major rail hub in the immense grain fields of the Midwest, available raw materials gave rise to Anheuser Busch and Purina Mills, who still call St. Louis home. Anheuser Busch also leveraged rail travel for distribution, pioneering the refrigerated rail car to distribute Budweiser nationally after its introduction in 1876. Much as railroads brought the decline in river travel, automobiles and air travel largely replaced rail. Lambert Airport was one of the first municipal airports in the nation. In response to avid aviation supporters in St. Louis, Charles Lindbergh’s airplane was famously named the “Spirit of St. Louis”. McDonnell aircraft was established in St. Louis in 1939. Under the demands from WWII, the company grew from 15 employees to 5,000 by the end of the war. The company merged with Douglas Aircraft in 1967, and eventually with Boeing.

Trans World Airlines (TWA), once one of the nation’s largest carriers, called St. Louis Lambert International Airport home. With the development of the interstate highway system, St. Louis became the convergence point of interstates 55, 70, 44, and 64. The Poplar Street Bridge, which carries the interstates over the Mississippi, is crossed by roughly 100,000 vehicles daily, making it the second most travelled bridge across the great Mississippi. The once bustling Union Station now houses shopping and hotels. National defense and wartime activities also played prominent roles in the history of the city. The river blockade, south of St. Louis, eliminated trade with southern ports and the economic impact on St. Louis was significant, continuing after the war due to the devastation of the south. St. Louis saw a boom in manufacturing in WWII. US Cartridge (St. Louis Ordnance) became the largest ammunition manufacturer in the world. Scott Field in Illinois was completed in August 1917, named for Corporal Frank Scott, the first enlisted service member killed in an aviation crash. Two Scott aircraft were modified to carry patients, and in Charles Lindbergh’s “Spirit of St. Louis”

1918, Scott’s air ambulance transported its first patient. Scott Field became Scott Air Force Base with the separation of the Air Force from the Army Air Corps. Through the years, Scott AFB has supported training, airlift, refueling, and aeromedical evacuation. In 1957, Scott AFB realigned from the Air Training Command to the Military Air Transport Service, which became the Military Airlift Command in 1966 at the height of Vietnam. With the end of the cold war, the aerial refueling mission was separated from Strategic Airlift Command, and in 1992 AMC was established at Scott AFB from the airlift and tanker forces. This is the tradition and legacy that the Scott-St. Louis Chapter proudly calls home since establishment in 1953. Who could have foreseen the subsequent changes in store for both Scott AFB and military transportation? The USTRANSCOM was established in 1987 at Scott AFB as a Unified Command, including all military services. This paved the way for relocation of the SDDC to Scott. Today, Scott AFB is one of the top six employers in the St. Louis region, one of the seven with over 10,000 employees. The region is one that in some ways benefited from the decisions of base realignment and closure with the relocation of SDDC to Scott, and establishment continued on page 48 Guest speaker Dr. Daniel Rust from University of Missouri, St. Louis

NDTA Lunch at Bellecourt Manor

www.ndtahq.com | 5

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Defense Transportation Journal

October 2013

PRESIDENT’S CORNER Continuous Change LTG Ken Wykle, USA (Ret.) NDTA President

t has been a long, challenging year. After Alaska, we were moving forward with planning for our annual Forum in San Antonio. In January, the NDTA Staff travelled to San Antonio for a site visit and began the detailed coordination and planning for the 2013 Forum. Shortly thereafter, sequestration was triggered and the situation changed significantly. Government attendance at conferences was stopped and NDTA was informed by senior DOD officials that they could not participate in the 2013 Forum. NDTA immediately suspended the 2013 Forum and started to focus entirely on our membership. The intent was to continue to provide value to our members and adjust to the changing environment. My column in the last issue of the DTJ discussed in more detail the adjustments we have made. NDTA will continue to evolve as we gain more clarity on the budget, national debt ceiling, and other changes occurring throughout the government and industry. Pick up any major newspaper or periodical today and you will find articles about organizational change. A recent column in the Washington Post “What is the Biggest Challenge Companies Face” addressed the challenges of change. The column poses: “What do you do with somebody who is obsolete? Maybe the person is a great performer. Maybe the best employee. But what you need to do in the next two or three years, maybe that employee doesn’t have the skills that are required. It’s a horrible problem, but if you don’t change, you risk the entire organization. That is a social problem for the years ahead. The idea that you come out of college with a profession or degree that keeps you employed until you retire is a lunacy today. The world is changing too fast, too quickly and is too disruptive.” The August 12, 2013 issue of Defense News contained several articles about potential changes facing DOD:

1. DOD Weighs Major COCOM Realignment—Consideration is being given to eliminating two COCOMS and eight Service supporting commands. 2. Lawmakers Skeptical of Global Spec Ops Plan—Congress and others are questioning the proposal to revamp the way special operators deploy around the globe. 3. In Essay, US Army Lt Col Calls for Replacing Senior Leadership—He is suggesting substantive change in the Army’s organizational structure and more accountability for decisions by senior officers. We are also seeing changes within commercial industry, a few such examples are: 1. Cargo Business Newswire (Aug. 7) reported that General Motors is taking actions to reduce supply chain costs by $1 Billion by 2016. It plans to achieve these cost reductions by bringing parts plants closer to assembly, extending rail spurs directly to plants, and adding stamping plants to assembly factories. The article notes logistics is a rising focus at virtually every manufacturer. 2. Jeffrey Bezos [CEO of Amazon] buys the Washington Post for $250 million (Aug 12). Speculation is rampant about what this means and what changes this will drive in the print newspaper business. 3. In a recent Washington Post article (Aug 12), Ted Leonsis, a former AOL executive and now owner of Monumental Sports & Entertainment, which owns the Washington Wizards Basketball team, the Washington Capitals Hockey team, and the Verizon Center discusses organizational change. He says, “Taking old cultures and fusing them with the digital world isn’t easy. It is hard to implement change even when you own the enterprise. A lot of things that need to be done seem to be unnatural

acts for longtime employees of legacy companies.” He recounts that when the Wizards and Capitals migrated to the efficiency of paperless ticketing last year “there was dramatic angst internally. We almost had to force the decision. I had to say we are doing it.” Whether in a large or small organization, change is hard. Philosophically employees may say they support organizational change, but when it comes to their segment of the business they often “circle the wagons” and defend their turf. To successfully change the culture and the organization, develop a plan, designate a Change Manager, brief the plan, implement the plan on an aggressive time line, hold frequent IPRs, move the “obsolete” employees, and achieve the objective. For those doing business with DOD—focus on the proposed changes, assess the potential implications for your business, and adjust to be aligned with the resulting changes. For those of you who attended the Defense Travel & Government Transportation Meeting last month in the DC area, and to those of you attending the NDTA-USTRANSCOM Fall Meeting this month—thank you for attending, I hope you find these meetings and other changes NDTA is making to be beneficial. As always, I thank you for your commitment to NDTA, for your confidence in the Association, and for the contributions each of you make in support of our Nation’s economy and National Security. DTJ

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“To improve is to change; to be perfect is to change often.” —Winston Churchill

By Brett Beavers, Director of Government Services, J.B. Hunt Transport, Inc.

ultimodal shipping has recently provided an increased level of support to in-theater activities in Afghanistan, even as supply chains became constrained from infrastructure, as well as political challenges. Innovations in logistics strategy allows for a more streamlined flow of material into theater, while simultaneously mitigating costs associated with modal conversion to airlift. These innovations not only led to a more successful effort in Afghanistan, but the lessons learned can be applied to a more budgetconstrained environment in the United States, particularly in the face of retrograde and increased domestic troop presence. Multimodal shipping takes advantage of the different modes of transportation across segments of a shipment’s life cycle. This is particularly advantageous when certain modes of transportation are more cost effective, like shipping or rail, or when special requirements are only necessary at one point in a shipment’s life cycle, such as crane loading or airlift for security reasons. When requirements only exist across a short span of a shipment’s life cycle, it makes sense to place the greatest number of miles on the lowest cost mode of transportation. With the changes in our nation’s defense infrastructure after over a decade of engagement, there will be new logistics challenges occurring in the transportation of equipment, materiel, and supplies within the continental US (CONUS), which will continue to increase as troops return from theater. In addition, equipment returning from theater will undergo decommissioning or refurbishment in preparation for future engagement. The projected flow 8 |

Defense Transportation Journal

and relative consistency of both changes is significantly more stable and less timecritical than supporting troops in theater. However, requirements are often set with an expedited mentality in mind, thus preventing the opportunity to reduce cost via multimodal shipping, further constraining our nation’s transportation resources. Multimodal Basics

In order to create a multimodal supply chain, there needs to be an understanding of the modes involved, as well as the benefits and constraints of each. In addition, you must identify what opportunities exist to overcome these constraints. The basics of multimodal shipping include the following key activities: 1. Identifying the supporting networks and infrastructure within each mode in the supply chain; 2. Identifying the key suppliers within each network; 3. Correlating the move requirements with each supplier. In identifying the supporting networks, one can look to the basic modes of transportation in the US for guidance: pipeline, maritime shipping/barge, rail, trucking, and air.

October 2013

In order, these modes represent the relationship of both cost and speed within the supply chain. Moving towards the left tends to decrease cost and speed while moving to the right will increase cost and speed. Generally speaking, multimodal exists within the overlap between modes and offers a logistics decision maker a bridge between two otherwise distinct choices. The networks within each of these modes vary and can range from static, in the case of pipeline, to fluid in the case of trucking. A well-known network example is our Nation’s airports with regard to air freight. The suppliers within each network are relatively static as well, predominantly due to the investments required in each mode of transportation. Rarely do you find suppliers that own physical assets in more than one modal network. While each supplier is generally accustomed to communicating with other adjacent members of the mode chain, not all interactions are standardized, leading to the need for increased involvement from the shipping coordinator in order to ensure successful “handoffs” in multimodal shipping. Once modes and suppliers have been identified, a logistician needs to coordinate the move requirements so the ship-

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ping coordinator can ensure shipment integrity during each leg of the movement. These requirements may include: 1. Load securing appropriate for each segment of the movement; 2. In-transit visibility and communications; 3. Cargo security and contingency planning; 4. Setting expectations for availability dates at origins and destinations throughout transit. Use of Intermodal Companies and Third Party Logistics

While this level of involvement from the logistics manager may seem like a relatively daunting way to achieve savings, there are other avenues the shipper can leverage to achieve the same degree of savings, while minimizing or eliminating the high degree of involvement. The first option is to utilize an intermodal company that specializes in coordinating the steps mentioned above. In most cases, intermodal companies have pre-established relationships with suppliers in adjacent modal options which provides a ready-made multimodal solution, and addresses the requirements and â&#x20AC;&#x153;handoffsâ&#x20AC;? for each leg in the process. For instance, some ship lines offer inland pickup and delivery via truck and rail for international shipments. In most cases, the shipper is not involved in the transition from one mode to another. One example is the pickup of a container in Fort Hood, TX, transported to the rail terminal in Haslet, TX, to another rail terminal in Los Angeles, CA, and a drayage move to Long Beach, CA, to be loaded on a ship to Asia. While not directly involved in the various changes in mode, the shipper does have visibility of each transition thanks to the integrated communication processes intermodal companies have developed. This requires only one communication channel be established between the shipper and the intermodal company, as opposed to multiple channels for each modal network in the supply chain. A similar service is often provided by intermodal marketing companies and third party logistics providers specializing in integrating supply chains. These companies, like intermodal companies, invest heavily in the technology and communications infrastructure necessary to ensure in-transit visibility, streamlined coordination between modes, and proactive problem resolution to prevent delays that could be caused at different network nodes. Resources exist 10 |

Defense Transportation Journal

to guide shippers to intermodal companies and third party logistics companies specializing in multimodal transportation, such as the Intermodal Association of North America (IANA), thus reducing leg work by budget-conscious logisticians. Intermodal Marketplace in the US

The remainder of this article will focus on a specific segment of the multimodal marketplace in the USâ&#x20AC;&#x201D;the domestic truckrail marketplace. There are two reasons for doing so. First, as mentioned, the increased troop and equipment presence on domestic soil over the coming year signifies the greatest opportunity to impact costs. Second, truck-rail multimodal represents the largest segment of the marketplace positioned to service domestic military facilities. Note the locations of the major intermodal terminals and their proximity to major shipping ports and military facilities. Most major metropolitan areas have intermodal terminals; this makes most of the country reasonably accessible to rail service. The intermodal marketplace in the United States continues to grow annually, demonstrating resilience against economic headwinds. The driving forces behind these increases are the economic opportunities resulting from this supply chain strategy. Total growth in 2012 pushed the marketplace to more than 14 million shipments, according to IANA. This growth trend is expected

October 2013

to continue in 2013, where shipments have already exceeded 1.2 million per month on average over the first half of the year. Projections are for intermodal loadings in the US to increase over 5% per year in 2013 and 2014 according to FTR Associates. Continued growth in this sector outpaces projected GDP growth by a factor of over 3 as the Conference Board Projects GDP in the US to grow at only 1.6% in 2013. This suggests a continued trend of mode conver-

sion by shippers away from other transportation modes, predominantly trucking. In addition to pure cost savings, which is the primary driver behind this growth, other benefits are encouraging shippers to change to intermodal service: 1. Reduced demand on highway infrastructure, improving congestion safety, and reducing delays; 2. Improved environmental sustainability from dramatically reduced carbon emissions; 3. Reduced demand on truck driving force and corresponding constrained capacity.

many intermodal transactions. First and foremost, it provides the bulk of the ton miles of most intermodal shipments. Second, railroads supply some shippers and other companies with the containers and chassis required to ship intermodal. There are two types of intermodal shipping on railroads, trailer on flatcar (TOFC) or container on flatcar (COFC). Trailer on flatcar has been in decline, due to its relative inefficiency. According to IANA, the number of trailers declined 6.3% in 2013 to 21% of the total equipment used in domestic intermodal shipping. Contain-

burg, PA to Los Angeles, CA without any involvement by the shipper. Drayage Companies

Several companies perform the role of drayage for both railroads and ship lines in the United States, which is simply the transition from one network node to another, such as a warehouse dock, a port, or between rail terminals. Most drayage is provided by locally based companies, although a handful of national or seminational drayage companies exist. The drayage provider is often under a separate contract with the shipper, railroad, or one of the other companies discussed below, to provide drayage services. Intermodal Companies

Intermodal Companies in the US

There are a number of companies involved in intermodal transaction within the US: 1. Railroads 2. Drayage providers 3. Intermodal companies 4. Intermodal marketing companies 5. Third party logistics companies Each provides a unique service within the marketplace and has its advantages. Railroads

A cornerstone in the truck-rail intermodal transaction is, of course, the railroad. The railroad serves two primary functions in

ers, which have detachable chassis and can be double-stacked, grew 10.2% in 2013 to become a majority of the market place. There are two primary container leasing programs in the United States managed by railroads—the EMPU program and the UMAX program. Through these programs, companies engage in a trip-lease arrangement with the container riding on the corresponding railroads, and the cost of the equipment included in the pricing. All Class I railroads provide intermodal services and work with other companies, to ensure a seamless transactions. Refer to the figure on intermodal terminals for a listing of North American railroads offering intermodal services. Railroads offer services outside their physical footprint through co-operative arrangements with other railroads. In addition, cross town services with drayage companies and steel wheel agreements permit containers to switch from one railroad to another in transit. For example, these arrangements allow a container to travel from Harris-

Intermodal companies differ from others by one key criterion—they own their own equipment. The primary equipment is the container, but it could also apply to the chassis, as well as trucks to perform some or all of the drayage work. The benefit of an intermodal company is it typically controls the transaction from end-to-end, including all drayage and railroad activities, so it creates a seamless transaction for the shipper. Second, because the intermodal company owns some or all of the equipment, there is a higher degree of control during the course of the shipment. There are a number of intermodal companies in the US. While some specialize in a particular type of transportation, such a refrigerated or dry van, others may provide a multiple service offering with different equipment options and service levels. Many intermodal companies have established relationships with certain railroads. Intermodal Marketing Companies

By contrast to an intermodal company, an intermodal marketing company does not typically own any equipment. Rather, it will trip lease as part of the rail transaction described under railroads, or it will partner with intermodal companies or ship lines that own equipment to provide intermodal services to its customers. In many cases, an intermodal marketing company works with a particular railroad to “market” the services of a railroad. In return, the intermodal marketing company may secure more favorable pricing arrangements. www.ndtahq.com | 11

Third Party Logistics Companies

Several third party logistics (3PL) companies offer intermodal services. Most often, these companies will partner with one or more of the companies listed above—railroads, drayage, intermodal companies, and intermodal marketing companies— to provide their services. In some cases, the 3PL may have standing contracts with one or more providers in the marketplace.

provide applications allowing track and trace capabilities on any GPS enabled cell phone. A shipper should question a supplier that cannot provide real-time tracking at every stage of the transaction. The Future of Intermodal

As intermodal continues to gain notoriety within the logistics community, the industry is rapidly looking at new oppor-

Myths about Intermodal

There are several myths about intermodal that continue to deter logisticians from leveraging this mode in their supply chain strategy. Some of these myths stem from operations experiences decades old or from those with an interest in preventing intermodal traffic. The most prevalent myth is slow transit time. In reality, intermodal transit time today is very close to over the road transit time. For example, a shipment from New Cumberland, PA to Los Angeles, CA will take just two days longer shipping intermodal than via over the road trucking, according to J.B. Hunt Transport, Inc. (J.B. Hunt). In addition, many intermodal companies, like J.B. Hunt, offer expedited rail schedules which reduce transit time even further to a five day delivery— identical to over the road trucking. With innovations in equipment planning and visibility by all parties in the transaction, service continues to improve to the same levels as over the road trucking. The second myth is intermodal transportation only works with longer lengths of haul. Infrastructure investments by all major railroads continue to open new lanes in all networks. Today, it is common to see lanes with fewer than 500 miles appearing as intermodal options within carriers’ networks. For example, one of the shortest intermodal lanes J.B. Hunt offers is from Atlanta, GA to Jacksonville, FL, a mere 299 miles. It is no longer necessary for shipments to be thousands of miles for intermodal to become a viable option. A third myth is a shipper loses visibility in an intermodal transaction. With current industry standards requiring EDI and web connectivity at all stages of the operation, intermodal participants have a high degree of communication and forecasting, in some cases, days or weeks before events happen. GPS technology has become so readily available, companies 12 |

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tunities to take advantage of cost-savings and increased capacity. New service offerings are being released by a variety of companies to capitalize on the intermodal economy of scale. As advances in technology create more stable temperature units with satellite tracking and real-time cargo temperature information, services like 53’ containerized refrigerated intermodal are now being offered by J.B. Hunt and other providers. These new units can sense potential problems and notify various groups simultaneously, before cargo loss occurs. In addition to refrigerated intermodal, opportunities exist for multi-modal shipping of vehicles and military containers, previously reserved for flatbed transportation. Transload facilities provide logisticians with the ability to create staging areas of equipment near the demand location, such as the National Training Center, and create shuttles between the staging area and base, thereby freeing capacity and providing a more consistent experience. New equipment innovations in this space, such as cargo sleds, permit freight, previously reserved for crane loading, to

October 2013

be on- and off-loaded with a fork lift at a dock, and provides a domestic roll-on roll-off capability for smaller vehicles, and open options for capacity and cost considerations logisticians have not had before. In addition to equipment innovations in the container space, railroads continue to invest billions of dollars annually in improved terminal capacity, increased tunnel size and capacity, and additional track, increasing throughput across their intermodal networks. This includes The National Gateway, a public-private partnership to connect the Midwest US with ports on the mid-Atlantic coast. This initiative prepares the way for expansion in east coast ports to accept larger ships and more traffic from Asia with the expansion of the Panama Canal. In addition to CONUS intermodal, partnerships between railroads and intermodal companies have increased the presence of intermodal traffic across borders. These partnerships also reduce delays related to customs clearance between Mexico and Canada due to streamlined communication flow and programs like C-TPAT. These changes in intermodal networks allow more traffic to flow to and from seaports in Mexico and Canada, as well as facilities in the interior of these countries on a more costeffective basis, which is particularly important in the face of increased regulations on truck drivers crossing these borders today. Embracing Change

As our military copes with changes resulting from recent fiscal policies, a significant amount of vision will be necessary to do more with less. Intermodal shipping within the United States is a crucial tool in a logistician’s kit, creating new capacity options and freeing up budget resources for other mission critical tasks. With potential cost reductions in intermodal transportation up to 30%, intermodal is a powerful weapon in the fight against an ever-constrained logistics environment. Emerging leaders will recognize this changing environment and seek out industry experts to assist in navigating these changing circumstances. A recent survey of non-DTCI shipments by J.B. Hunt indicated over 60% of lanes moved by the DOD may be eligible for a multi-modal transportation option. This creates opportunities for the future of the department’s supply chain and the industry stands ready to embrace these positive changes as well. DTJ

Ed Berti

Senior Director Military & Government Services

eberti@horizonlines.com

704.973.7017

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By LT Jason T. Ray, SC, USN

ost people were introduced to the concept of Additive Manufacturing (AM) for the first time during President Obama’s 2013 State of the Union Address. This technology, more commonly referred to as 3D printing, is believed by most to be in its relative infancy. What people don’t know is that it has been developing for the past three decades and is just now starting to garner the attention it deserves for the impact it will have on manufacturing operations and traditional supply chains. My first encounter with 3D Printing was 15 months ago on deployment to Bahrain. While reading New York Times best14 |

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seller, Abundance: The Future is Better Than You Think by Dr. Peter Diamandis (Chairman and CEO of the X PRIZE Foundation) and Steven Kotler (bestselling author and science journalist), I was introduced to the technology as one of several that have the potential to solve the world’s greatest problems. They explain that, “Suddenly an invention developed in China can be perfected in India then printed in Brazil on the same day.” (LOC 1369 Kindle) Working in the supply office of a US Navy Minesweeper helped me realize the vast potential that could be unlocked if we had access to a 3D printer on the ship. Assuming we could print enough parts to

October 2013

justify the initial investment in the technology, we could save time and money on transportation costs, benefit from skilled technical distance support, reduce opportunity cost (the cost incurred when we don’t execute), and increase overall mission readiness. The idea of not having to suffer long lead-times for one-off production runs of legacy parts, items no longer provided through the Navy stock system, intrigued me and I began to investigate the history and capabilities of this technology. Inventing the 3D Process

In 1983 Chuck Hull invented Stereolithography, a process that uses an ultravi-

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olet laser to cure a photopolymer resin one layer at a time to build a three dimensional object. He subsequently founded 3D Systems in 1986. Over the past 30 years, the technology has been steadily evolving to its current state.i Some would mistakenly take this relatively slow evolution coupled with the current capabilities and limitations to mean that the technology still has a long way to go, but others (who understand the concept that supports Moore’s Law1)ii realize that we have just recently reached the tipping point. In a March 27, 2013 Forbes article, TJ McCue quotes Terry Wohler, a widely recognized expert on the AM industry, explaining that: “Low-cost 3D printers affect both the professional and consumer markets. The increased sale of these machines over the past few years has taken additive manufacturing (AM) mainstream more than any other single development. 3D printers have helped spread the technology and made it more accessible to students, researchers, do-ityourself enthusiasts, hobbyists, inventors, and entrepreneurs.”iii In an effort to gain a greater understanding of the true potential locked inside 3D printers, I ordered an Ultimaker Fused Disposition Modeling (FDM) 3D Printer kit ($1800). After 6 weeks of waiting, it arrived in the mail and I built it in about 20 hours in my living-room. FDM is a process where the printer moves a controlled temperature nozzle attached to a plastic extruder around a three dimensional grid and “prints” thin layers of molten plastic to build a 3D object layer-by-layer. Trial and error quickly demonstrated that FDM was not going to be producing industrial-grade consumer-ready parts any time soon. Additional research led to the discovery that Selective Laser Sintering (SLS) and Direct Metal Laser Sintering (DMLS), though drastically more expensive, have significantly greater potential for industrial manufacturing applications. These processes use a laser to build three dimensional objects by sintering (melting) raw material in powder form (ABS plastic, titanium, tungsten carbide, ceramic, etc.) layer-by-layer, sometimes only microns thick at a time, depending on the desired resolution of the object. One of the benefits is that little or no 16 |

Defense Transportation Journal

LT Ray’s Ultimaker Fused Deposition Modeling (FDM) 3D printer after having printed a model of an Aircraft Carrier. (Image provided by Jason T. Ray.)

Mojo Desktop Fused Deposition Modeling (FDM) 3D printer with an ABSplus prototype model. (Image provided by Stratasys.)

structural support is needed for complex objects. Each sintered layer is surrounded by unsintered powder providing support for any difficult angles the object may have. When complete, the unsintered powder can be immediately reused to build another object thus eliminating all waste in the production process. By way

October 2013

of development and strategic acquisition, three primary producers of these systems have risen into the spotlight: 3D Systems (NYSE: DDD), Stratasys (NASDAQ: SSYS) and Ex One (NASDAQ: XONE). I wasn’t the only one thinking about 3D printing. In May 2013 Staples was the first major US retailer to announce the availabili-

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ty of 3D printers, featuring the Cube® desktop 3D Printer from 3D Systems ($1299), for purchase online and in their stores, making the technology even more attainable for in-home use and exploration.iv In an effort to compete with 3D Systems’ Cube®, Stratasys announced on June 13, 2013 that it had completed a $403 million acquisition of leading desktop 3D printer manufacture, Makerbot. The sale also included Makerbot’s online website Thingiverse.com, which boasts the largest collection of downloadable digital designs. More recently we have seen these desktop consumer grade FDM printers show up on popular e-commerce sites like Amazon and SkyMall. Moving this technology into individual consumers’ homes represents a quantum leap for the 3D printing industry. Though FDM is not geared towards industrial-grade parts production, giving individual consumers familiarity with the processes that surround 3D printing will create a launch pad for the arrival of cheaper, more advanced SLS desktop consumer-grade printers. The next iteration of these printers is destined to hit the market place in the next 12 months when key patents begin to expire early in 2014. The 2013 Wohlers Associates report, Additive Manufacturing and 3D Printing the State of the Industry, projects that: “The industry is expected to continue strong double-digit growth over the next several years. By 2017, we believe that the sale of 3D-printing products and services will approach $6 billion worldwide. By 2021, we forecast growth to reach $10.8 billion. It took the 3D printing industry 20 years to grow to $1 billion in size. In five additional years, the industry generated

its second $1 billion. It is expected to double again, to $4 billion, in 2015.”v Investors in 3D Processes

The technology has also received attention from producers and designers for its ability to rapidly generate complex, small-scale prototypes and bring two-dimensional Computer Aided Design (CAD) images to life in a fraction of the time normally required by traditional manufacturing methods and supply chains. Two companies that have leveraged this technology in their business models, Proto Labs (NYSE:PRLB) and Shapeways, offer faster distribution of finished products and prototypes to customers by reducing production lead-times. Logistics companies are also starting to realize the potential this technology presents. On July 31, 2013, UPS distributed a press release announcing it would be the first nationwide retailer to test 3D printing services in-store in an effort to meet the demands of small businesses seeking access to the technology for prototypes, artistic renderings, and promotional materials.vi Now that a manufacturer can rattle off several iterations of a product prototype without being held back by the high-cost of prototypes, it can deliver superior products to the market more quickly. This also reduces the barriers to entry for small businesses and promotes greater competition in the marketplace. To show just how serious some companies are taking this technology, on November 20, 2012 GE Aviation announced the acquisition of privately owned 3D printing company, Morris Technologies and sister company Rapid Quality Manufacturing. GE plans to use their DMLS process to produce lighter, more intricate

jet engine parts to meet growing production rates over the next five years. “Morris Technologies and Rapid Quality Manufacturing are parts of our investment in emerging manufacturing technologies. Our ability to develop state of the art manufacturing processes for emerging materials and complex design geometry is critical to our future,” explains Colleen Athans, general manager of GE Aviation’s supply-chain operations.vii Understanding the Supply Chain – Current and Future

When thinking about this technology in reference to the supply chain it’s clear that the supply chain isn’t going away; it’s just going to change and become more effective. During a recent interview with Irv Varkonyi, Professor in Supply Chain Certification at APICS, we discussed the tremendous impact 3D printing could have on the traditional supply chain. Mr. Varkonyi hypothesized that 3D printing will lessen the burden placed on the Sales and Operational Planning (S&OP) processes. This will take place through balancing supply and demand by reducing dependence on forecasting as 3D manufacturing reduces the lead time to produce final products in response to consumer demand and eliminating obsolescence of expired products. “In manufacturing we build things based on how to get the lowest unit cost and benefit from economies of scale.” He explained, “Often the lowest unit cost is nonresponsive or does not reflect actual customer needs, rather it is a product of S&OP calculations and anticipated demand.”viii During our conversation, Mr. Varkonyi referenced the book publishing industry as an example of one that experienced

Rapid prototypes created using 3D print technology. (Images provided by Stratasys.)

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Defense Transportation Journal

October 2013

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The Statratsys, Fortus 900mc one of the most powerful Fused Deposition Modeling (FDM) Systems with a large build area. (Image provided by Stratasys.)

drastic technological change due to the invention of the Kindle and other e-reader devices. If you think about the Kindle as a 3D printer you can see the story start to unfold. He outlines that: “It used to be that when a book was printed thousands of copies were printed at the same time and distributed to book stores, leaving any errors uncorrectable. Now with the dominance of e-books an author can go back into his work and make corrections, so that all future copies of the book sold reflect the change. The consumer meanwhile never has to leave his or her home to purchase the fully digital product through the ereader device. 3D printing will provide manufacturers this same flexibility in prototyping, production and delivery.” This example highlights the potential course and impact the technology will have. 3D printing creates a future where we start to think about hardware in the same sense as software. It is no coincidence that e-commerce sites like Amazon have begun building large server farms and cloud-based networks. They are moving in this direction so the infrastructure will be in place when the technology demands it. In the future they may become 20 |

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more information based rather than supply chain oriented companies. 3D printing is one of three transformational technologies highlighted in a recent executive report, The New SoftwareDefined Supply Chain: Preparing for the Disruptive Transformation of Electronics Design and Manufacturing, by the IBM Institute for Business Value. In the report IBM explains that the emerging technologies of 3D printing, intelligent robotics, and open source electronics will create a manufacturing environment that is driven by digital data. “The result: a reconfigured global supply chain will emerge in the coming decade. It will radically change the nature of manufacturing in the Electronics industry, shifting global trade flows and altering the competitive landscape for both enterprise and government policy makers.” They go on to explain that, “Despite the enormous press coverage that technologies like 3D printing have achieved, we found that manufacturing leaders remain ill-prepared for these transitions.”ix In order to understand the transition and benefits that will come from the implementation of 3D printing, we have to examine the traditional supply chain and break down its individual pieces and costs. Simply put, in a system of mass produc-

October 2013

tion, companies are striving to achieve the lowest possible unit cost of production. This is often done through standardization of subparts across product lines and industries. These “cheap” goods are transported from the manufacturer to a warehouse leaving a potentially large carbon foot print. The items are then stored, inventoried and managed in a warehouse until being distributed to consumers in response to actual demand. In private industry, items that are not distributed go through a cycle of markdowns and costly marketing campaigns, until no longer needed, or it is no longer cost effective to store them. They are then disposed of at a cost to the producer, representing obsolescence costs, in the process we know as reverse logistics. Assuming S&OP is effective, transportation cost, storage time, and obsolescence will be minimal. However, this is not always the case, as production quantities are often dictated by the goal of achieving the greatest economy of scale, rather than actual demand. Customized parts and prototyping costs are are exponentially higher than standard productions and are where consumers face long lead-times, costly one-off production runs, and high transportation costs because they are unable to benefit from the system of mass production. A similar situation is faced in military acquisition when commercial parts do not meet an item’s required specifications, thus driving up costs. In calculating the effectiveness of 3D printing, we have to look at total ownership cost of a unit, rather than only considering the per-unit cost of production. The all-encompassing costs related to the item as a whole include: production, transportation, storage (warehouse costs, heating, cooling, manning), management, and potential disposal. With all of these variables in mind it is very difficult to break down costs on a per-unit level, but is the only quantifiable method of demonstrating the technology’s fiscal superiority. When assessing the viability and cost effectiveness of 3D printing supported supply chains, many of these high total-ownership costs can be reduced. 3D printing presents the potential of local manufacturing that will reduce lead-times and transportation costs. Efforts to promote standardization of subparts can be avoided because objects can be digitally altered before printing, to meet individual product line and consumer specifications, at minimal cost to the producer.

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When the per-unit cost is no longer a factor, we can move to a system of on-demand manufacturing where production accurately reflects consumer demand. This cures the problem of obsolescence and improves the value proposition for S&OP. On-demand manufacturing also reduces the need for warehousing, as manufacturers will be able to shift from storing end goods to raw materials and have substantially more flexibility in production, as one raw material provides access to numerous end goods. The increased capability provided by 3D printing will significantly reduce the carrying cost of an organization, simplify a complex supply chain, and reduce the number of steps it takes to move a product to the market. I had the opportunity to speak with James Coleman, Founder and CEO of e-

the focus shifts from moving end goods to moving strictly raw materials, a premise which he has built his business around. Much like Mr. Varkonyi, he also sees potential for a shift in the way we think about logistics and explains that: “Rather than thinking about how much of a specific item you need to be holding, when you are moving raw materials that can be used to build many items, you create a natural flexibility and eliminate the complexity of the supply system. For example instead of managing 20 different SKUs for stainless steel bolts, you now have a printer that can produce each of these items and print on demand. Having to manage only the raw material makes the system orders of magnitude easier.”xi

3D printing presents the potential of local manufacturing that will reduce lead-times and transportation costs. Efforts to promote standardization of subparts can be avoided because objects can be digitally altered before printing, to meet individual product line and consumer needs, at minimal cost to the producer. When the per-unit cost is no longer a factor, we can move to a system of on-demand manufacturing where production accurately reflects consumer demand. This cures the problem of obsolescence and improves the value proposition for S&OP. commerce site Makerstash, which specializes in 3D printer filaments and supplies. Mr. Coleman foresees some very interesting impacts for 3D printing technology with regard to the supply chain. He explained: “3D printing provides a very low cost to complexity ratio and the ability to create something that is custom on the spot. This ability presents a very interesting potential in the future. When thinking about traditional e-commerce sites, Amazon’s attention, for example, is focused on how they can get material to the customer quickly. They work to solve the question of how can we organize ourselves to get customers the piece of equipment when and where they need it, at a fair price to buyer and seller. When you add 3D printing to that problem set, you can start to change how you fulfill that need.”x According to Mr. Coleman, the supply chain will gradually change and become more flexible. He doesn’t see it happening in the immediate future because of the limitations on producing the more robust parts, but it’s only a matter of time before 22 |

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This is a fantastic idea for the future, but James recognizes that there is a substantial gap between today and where the technology will be in the future. Companies tend to ignore 3D printing because the print materials aren’t broad enough yet and the costs associated with printing in metal are prohibitively high. This will all change as the industry gains traction and he further explains: “As costs come down there will be some pretty startling impacts on the way we do business. I have a small e-commerce shop that is just getting started. What excites me about the technology is the huge potential impact. I think the technology leaves people feeling empowered to create, which is a huge deal. If you have a problem at home with a 3D printer you can now deal with it by finding a digital drawing of the object online and printing the needed part.”xii To stay relevant, it is imperative that companies prepare for this transition. With the Pareto Principle (80/20 rule) in mind, organizations have to examine the parts and products they use to determine

October 2013

those that can be manufactured using a 3D printer. The current state of technology supports production of “B” and “C” items, those items that make up about 20% of sales. Initially this volume will not have a noticeable impact on the shipping industry. There will be an increase in the distribution of raw materials that will likely offset any impact of local manufacturing. However, as the technology improves and new uses arise, we will see an even larger shift in the number of goods that are produced by 3D printers, causing greater disruption in the supply lines. Car companies like Fordxiii and GMxiv are already taking advantage of the rapid prototyping capabilities of 3D printers to reduce development costs. Auto repair shops will also benefit by making one-off components rather than waiting for suppliers. Leading edge technology and engineering solutions companies like Alion Science and Technology are implementing 3D printing into their production processes as well. During a conversation with Eric Peterson, Chief Scientist and Program Manager at Alion’s Rapid Engineering Solutions Facility, he recalled that the company began using 3D printing about eight years ago. Since then, he said, “I cannot think of a single project here (at Alion) that we haven’t used a 3D printer for in one way shape or form. I don’t know what we would do without it.” Mr. Peterson has high hopes for the future of 3D printing in metals and explains that, “there is amazing potential in using and creating new alloys and other materials using this process.” Alloying is the addition of other elements to metal that improves strength, corrosion resistance and enhances its properties.xv In addition to alloys, he goes on to explain that, “The potential of direct printing of circuit boards has been tried with some limited success—and has really cool implications for repair and creation of replacement circuit boards for immediate use right where you need them. Imagine the progress that will happen when 3D printing gets the resolution and materials required to print not only conductors and insulators, but semiconductor devices directly as part of the printing process. It is certainly now within our realm of imagination. We can already print conductive and dielectric materials, so direct printing of things like capacitors is within our technological grasp.” Mr. Peterson predicts we will see these and

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other technological advancements in less than 10 years now that the technology has pushed past the bleeding edge.xvi Military 3D Printing

The focus on development and implementation of 3D printing is not restricted to private industry. The President made it clear that he intends to push for AM technology development across the DOD. This will have significant implications for the companies and supply chains that support it. All branches of the military have been researching ways to leverage this new manufacturing capability, whether it’s on the battlefield, ship, or in a hanger bay. The government recently completed the first of 15 manufacturing innovation institutes in Youngstown, Ohio, to be headed by the US military, with the purpose of harnessing the power of 3D printing technology. Five federal agencies including the Departments of Defense, Energy and Commerce; the National Science Foundation; and NASA have $45 million of combined funds to invest in the institute, with an additional $40 million to be raised from private funds.xvii On the waterfront, LT Ben Kohlmann, head of the Chief of Naval Operations’ Rapid Innovation Cell at the Navy Warfare Development Command, has been working tirelessly to move the Navy’s AM initiative shipboard. Because of the amazing uses for 3D printers in the medical environment, he is targeting one of our Nation’s Hospital ships as a test subject. xviii During his research, he uncovered an intricate network of engineers and supply types throughout the Navy’s research and development labs, and maintenance detachments that have been working with 3D printers for over a decade. He has also connected with similar types from the Army, who are using this technology on the frontlines with the Special Operations Forces to provide units greater flexibility to produce on-demand parts for their missions. This is a unique opportunity to integrate advanced engineering distance support onto the battlefield in real time. According to LT Scott Cheney-Peters, who is assisting LT Kohlmann with the project and authored a recent Proceedings article on 3D printing in the Navy, “As additive manufacturing matures, it creates increasingly compelling logic, and exciting opportunities for farflung supply chains such as the Navy’s.”xix 24 |

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These forward thinkers recognize the extraordinary capability and future potential that this technology has to elevate the mission readiness of our armed forces. Further research, development, and implementation of 3D printing technology will help the United States maintain superiority in a fiscally constrained environment. Leading Edge – the Future of 3D Printing

Open source hardware designs coupled with the expiration of key patents on SLS 3D printers will open the playing field for small businesses to expand upon the current iterations of the technology. There are dozens of private companies and universities already working to develop different facets of this technology, and we are seeing some amazing results that are not limited to industrial manufacturing. Researchers at Cornell University have been working to perfect a printer that produces ready-to-eat food. Bio-printing company Organovo (NYSE: ONVO), a San Diego based firm, has developed a printer that can print human tissue with the intention of furthering medical research and eventually printing replacement organs. Made In Space is working with NASA to enable the future of space exploration by being the first company to develop a 3D printer that will work in zero gravity. MAKE XYZ is increasing access to 3D printers by building online networks of local manufacturers that allow users to leverage the technology, without owning it, to have parts manufactured and delivered the same day. Implementation of this technology reduces the complexity of traditional supply chains enabling businesses to stay relevant and competitive in the global marketplace. With this understanding in mind, it is realistic to predict that we will see disruption to the way traditional supply chains operate in the next 18 months, with substantial changes taking place in the next decade. Is your company ready for this transformation? DTJ Lieutenant Ray is a Contract Specialist at Naval Sea Systems Command and serves on the Board of Directors for the NDTA Washington, DC Chapter. He is also an MBA Candidate at the F.W. Olin Graduate School of Business, Babson College. Prior to earning his commission as a Supply Officer

October 2013

in the United States Navy, he graduated from Trinity College, Hartford, CT with a bachelor’s degree in Economics. To request more information on this article or to discuss the topic further he can be contacted at JasonTRay@gmail.com or via LinkedIn at www.linkedin.com/in/JasonTRay/.

1 Moore’s Law – The number of transistors incorporated in a chip will approximately double every 24 months. Continuing Moore’s Law means the rate of progress in the semiconductor industry will far surpass that of nearly all other industries. (Gordon Moore, Intel co-founder) It is becoming clear that 3D printing technology will experience the same rapid exponential growth in hardware, software and materials. i http://www.3dsystems.com/30-yearsinnovation ii http://www.intel.com/content/www/us/en/ history/museum-gordon-moore-law.html iii http://www.forbes.com/sites/ tjmccue/2012/03/27/3d-printing-industrywill-reach-3-1-billion-worldwide-by-2016/ iv http://investor.staples.com/ phoenix.zhtml?c=96244&p=irolnewsArticle&ID=1814995&highlight=3D%20 Print, Staples First Major U.S. Retailer to Announce Availability of 3D Printers, May 3, 2013 v http://wohlersassociates.com/blog/, Terry Wohlers May 25, 2013 vi http://www.pressroom.ups.com/ Press+Releases/Current+Press+Releases/ The+UPS+Store+Makes+3D+ Printing+Accessible+to+StartUps+and+Small+Business+Owners vii http://www.geaviation.com/press/other/ other_20121120.html, GE Aviation acquires Morris Technologies and Rapid Quality Manufacturing viii Interview with Irv Varkonyi ix The New Software-Defined Supply Chain, IBM Better Business Value, Paul Brody and Veena Pureswaran x Interview with James Coleman xi Interview with James Coleman xii Interview with James Coleman xiii http://www.businessweek.com/ articles/2012-12-21/fords-gift-toengineers-makerbot-3d-printers xiv http://www.3dsystems.com/learning-center/ case-studies/3d-rapid-prototyping-fasttracks-gm-fuel-efficiency-gains#.UgfuMmQ6Ut0 xv Interview with Eric Peterson xvi Interview with Eric Peterson xvii (http://www.smartplanet.com/blog/ business-brains/us-governmentinvests-30-million-in-new-3dprinting-center/25817) xviii Interview with LT Ben Kohlmann xvix Interview with LT Scott Cheney-Peters

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Global Services Affiliate

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NDTA has a number of internal awards that recognize individual members who have excelled in fostering the goals and aims of the association. These awards include the NDTA President’s Special Achievement Award, Young Executive of the Year Award, Colonel Norbert Grabowski Membership Recruiting Awards, NDTA Distinguished Service Awards, and NDTA Corporate Distinguished Service Awards, among others. We congratulate this year’s award winners and thank you for your contributions to the association, as well as to the greater logistics and transportation community.

NDTA PRESIDENT’S SPECIAL ACHIEVEMENT AWARD for the NDTA’s newly created Innovative Logistics Service Award. His insistence at providing recognition for the Center’s accomplishments and his inputs to the nomination package proved to be critical to the Center receiving the award at the NDTA Forum in 2012. Daren Baker’s dedication and significant involvement is well known throughout NDTA and he is richly deserving of the NDTA President’s Special Achievement Award.

Mr. Daren A. Baker

Tampa Bay Chapter

r. Daren A. Baker is awarded the NDTA President’s Special Achievement Award for continued exceptional service and commitment to the goals and objectives of NDTA. Mr. Baker has been the tireless, industrious, and dedicated NDTA Florida State President since 2009. His timely and comprehensive communications with the NDTA headquarters staff has ensured the latest information is always available to his state’s chapters on symposiums, awards, membership programs, and breaking news announcements. He has been at the forefront of the founding of two new chapters in the state and has drafted highly-qualified candidates to lead these efforts. Mr. Baker is recognized as the consummate promoter of all things NDTA. In 2012, he arranged for, and coordinated a tour of USCENTCOM as a part of the Tampa Chapter Annual Scholarship Golf Tournament. His vision turned a social gathering into an informative and educational event, generating tremendous interest in chapter activities. Later in the year, he was a key player in arranging a tour of the Military Sealift Command’s new Joint High Speed Vessel, the USNS Spearhead, for the Tampa Chapter. His personal involvement persuaded the NDTA President and Southeast Regional President to attend the ceremonies and tour of this magnificent vessel. Mr. Baker persuaded CENTCOM/ J3 leadership that their Strategic Mobility Center would be a leading contender 26 |

Defense Transportation Journal

Mr. Bob Reilly

Baltimore Chapter

r. Bob Reilly has served as the Baltimore Chapter President for approximately 12 of the last 14 years. During his tenure, Mr. Reilly maintained steady membership levels and provided top-notch chapter communications. He was the primary manager of all event planning, coordination, and promotion. As such, he kept events interesting and appealing to a broad range of participants by holding events such as port tours and maritime simulator demonstrations, in addition to lunches and dinners. He arranged for guest speakers that included individuals from the USCG, MSC, SDDC, TSA, DHS, OSD, NSA, NASA, USAF, USMC, Army, DCS, Navy, ATA, MD Trucking Association, and the Red Cross, among others. Most years, he also managed the chapter’s annual Baltimore Spring Golf outing. He navigated the chapter through difficult years following 9-11 and the loss of its regular meeting area on Fort Meade. During several lean years, he worked as a two-man

October 2013

team with Chapter Treasurer, Barry Noe. He has consistently re-shaped the chapter’s board of directors to include individuals who would engage in the NDTA mission. In addition to his support at the chapter level, Mr. Reilly is a great supporter of NDTA’s future leaders. He built an ongoing relationship with the NDTA University of Maryland Chapter through student outreach, attending the school’s annual Industry Day, and serving as a guest speaker. He extended the Baltimore Chapter’s scholarship awards, implemented small scale Silent Auctions at chapter events to raise money, and instituted the Norm Dresden Chapter Scholarship for chapter members and their families. Under his leadership, the chapter was also able to make donations to the National Scholarship Fund. He is also active in the NDTA Mentor-Protege programs. Mr. Reilly is a long-term volunteer at the NDTA Forum and the NDTA-NOLSC Symposium, as well as other events. He consistently recruits for new members—dedicating his efforts to educating and inviting people to become members globally, not just in Baltimore. For all that he has done for the Baltimore Chapter, NDTA, and the greater logistics and transportation community, Mr. Bob Reilly is well deserving of the NDTA President’s Special Achievement Award.

UPS

PS became a critical resource for the US President’s Emergency Plan for AIDS Relief (PEPFAR) initiative in 2005/2006, when its mission to distribute generic versions of AIDS medications to hundreds of thousands of people in Africa lacked an efficient logistics plan. This ef-

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fort continues today, as the US government enlists the support of the Partners for Supply Chain Management (PFSCM), a consortium of 12 companies and humanitarian organizations, to purchase and distribute AIDS medications to many of the countries targeted by the PEPFAR program. Initially, the key challenge was finding a cost-effective way to distribute the temperature-sensitive medications to impoverished nations worldwide that otherwise lacked the means and infrastructure to receive them. UPS was selected as the lead logistics provider for the initiative, and was charged with ensuring the protection and transportation of the medicines, while maximizing efficiency—a challenging mission that the company continues to meet.

At the outset of the operation, it was clear that three logistics areas needed to be immediately addressed before medicines could begin moving to impacted areas: developing accurate demand forecasting methods, coordinating procurement, and creating a cost-effective distribution and inventory management solution. UPS and PFSCM leveraged UPS’s leading-edge technology solutions and logistics expertise, as well as the economies of ocean freight to build a solution. In the last twelve months alone, partnering with PFSCM and the US government, UPS enabled more than $35 million in freight cost savings via consolidated shipping and the use of ocean freight, delivering more than $231 million worth of commodities. The initiative has

delivered medicines to 1.5 million people in 60 countries totaling more than $1 billion in medications and treatment supplies, while saving the US government more than $100 million in shipping. The ongoing effort has also helped build economies in impoverished regions by contracting with independent, locally owned trucking companies to complete the last leg of the distribution operation. The consortium is working with the Global Fund and the World Health Organization to extend efficiencies it has developed for PEPFAR to other humanitarian projects. For its response to this important humanitarian mission and its contribution to the world of transportation, UPS is awarded the NDTA President’s Special Achievement Award.

YOUNG EXECUTIVE OF THE YEAR AWARD

CIVILIAN Mr. Ben Cross

Dallas-Ft. Worth Chapter

DTA is proud to present the Young Executive of the Year Award, in the civilian category, to Mr. Ben Cross. Mr. Cross’ tireless efforts have culminated in key policy changes within the Defense Personal Property

Program (DP3). These policy changes, regarding containerization of household goods, will allow for a dramatic increase in capabilities and capacity. For the first time since 2006, the DP3 will become open to nontraditional moving companies and containerization on a broad scale will now be possible. Not only will these changes improve the ability of the Department of Defense to move its personnel forward in pursuit of its mission, but they are also projected to save many millions of dollars over the years to come. Furthermore, Mr. Cross has demonstrated a willingness to volunteer his time in support of the various associations he is a member of, including: the NDTA, American Moving and Storage Association (AMSA), International Association of Movers (lAM), Society of Hu-

man Resource Managers (SHRM), and Worldwide Employee Relocation Council (WERC). During the past year, Mr. Cross has served as an officer for two NDTA Chapters (Tampa Bay and Dallas-Ft. Worth). In addition, he has volunteered his time, money, and resources to support charities such as Street Angel, where he packaged 25,000 pairs of socks for homeless youth, and Wounded Warriors, where he provided free logistics services. Mr. Cross has also supported scholarship funds for several NDTA chapters, helping to raise $10,000 over the past several years. Mr. Ben Cross has exemplified the mission of the NDTA’s A-35 program through actively partnering with military, government, and members of the private sector to improve both the transportation industry and his community.

INNOVATIVE LOGISTICS SERVICE AWARD

The Army & Air Force Exchange Service

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AFES has proudly served America’s armed forces for over 117 years, and exists to improve troops’ quality of life and provide a dividend to support MWR Services programs. AAFES operates more than 3,100 facilities worldwide, in more than 30 countries, 5 US territories, and 50 states. During the past year, AAFES implemented and executed numerous programs which increased efficiencies and reduced costs, thereby reducing military non-operational burdens and increasing

October 2013

earnings for MWR dividends. Overall, AAFES initiatives realized savings in excess of $50 million over the past year, directly contributing to the Department of Defense cost reductions and increasing MWR support. The Exchange remains committed to its motto “We Go Where You Go,” and remains committed to the support of our Soldiers and Airmen around the world by continually improving efficiencies within the supply chain that provide direct dividend support to Service MWR programs.

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COLONEL NORBERT GRABOWSKI MEMBERSHIP RECRUITING AWARDS

Chapters Category I Aloha Chapter

Category II San Antonio Chapter

Category III Washington, DC Chapter

OVERALL RECRUITER Ms. Yolanda Rios

San Joaquin Valley Chapter

A-35 Recruiter Mr. Joe Escalera

Regimental Chapter

NDTA SCHOLARSHIP RECIPIENTS â&#x20AC;&#x201C; NATIONAL LEVEL program a

program B

NDTA ACADEMIC SCHOLARSHIP PROGRAMS

Vinay Kantharia

Jared Ashkenaz

NDTA offers three scholarship/tuition assistance programs to NDTA members and their financial dependents.

Edie Kwok

Francis Beacom

ACADEMIC SCHOLARSHIP PROGRAM A: to encourage good college students to study the fields of logistics, transportation, supply chain, physical distribution, and passenger travel services.

Dommonic Nelson

Paul J. Gleason

Alaina Rothstein

Joshua Gerding

Darshan Sangani

Melanie Morello

Anna Strauss

Christopher Stone

University of Maryland, College Park California Maritime Academy Texas Southern University University of Maryland, College Park University of Maryland, College Park University of Maryland, College Park

University of Miami

Indiana University at Bloomington Boston University

Miami University, Oxford, Ohio Western Michigan University High Point University, High Point, NC

Jesse Swank

Pennsylvania State University

ACADEMIC SCHOLARSHIP PROGRAM B: to assist high school graduates achieve their academic goals in the fields of business/management, logistics, transportation, supply chain, physical distribution, and passenger travel services. ACADEMIC SCHOLARSHIP PROGRAM C: to encourage good distance learning college students to study the fields of logistics, transportation, supply chain, physical distribution, and passenger travel services. NDTA scholarship/tuition assistance funds can only be disbursed to an academic institution on behalf of the successful applicant. If the institution is not known at the time an application is submitted, the successful applicant must submit documentation showing that he/she has in fact been accepted by an institution as a full-time student before disbursements can be made.

Huimeng Tian

University of Maryland, College Park

NDTA CORPORATE DISTINGUISHED SERVICE AWARDS APL Limited American Shipping & Logistics Group (ASL) Avis Budget Group Baggett Transportation Company Bennett Motor Express, LLC Chalich Trucking, Inc. DHL Global Forwarding Echo Global Logistics, Inc. FedEx FMN Logistics, Inc. InterContinental Hotels Group (IHG) Landstar System, Inc. Lockheed Martin Maersk Line, Limited

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Defense Transportation Journal

October 2013

National Air Cargo R & R Trucking Ridgeway International Science Applications International Corp. (SAIC) Southwest Airlines Supreme Group USA, LLC The Hertz Corporation The Pasha Group The Port of Virginia TOTE, Inc. Transportation Institute Truva International Transportation and Logistics Universal Truckload Services, Inc. UPS

NDTA DISTINGUISHED SERVICE AWARDS

LTC Bert Aben

Benelux Chapter

Ms. Teryn Kilgore North Pole Chapter

Ms. Tara Feilmeier

Scott-St. Louis Chapter

Mr. Paul Kozak

Scott-St. Louis Chapter

Col David Pollard, USA Scott-St. Louis Chapter

Mr. Prentice “Neil” Fox

Ms. Kristin Haggard

Mr. Campbell “Scott” Hood

Ms. Sandra McKinzie

Col Roger Neumann, USAF

Mr. Barry D. Noe

North Pole Chapter

Dallas-Fort Worth Chapter

Mr. Doug Siemonsma Scott-St. Louis Chapter

Dallas-Fort Worth

Dallas-Fort Worth Chapter

Mr. Timothy M. Robinson Atlanta Chapter

Tampa Bay Chapter

Baltimore Chapter

Col Dirk Verhaegen Benelux Chapter

NDTA QUALITY AWARDS

American President Lines, LTD

merican President Lines (APL) is a leading Ocean Carrier and a valued service provider for DLA Distribution San Joaquin, CA. By utilizing its vast fleet of US Flag container ships, the company provides unparalleled, mission-ready transportation for the Department of Defense (DOD) freight routing

to the Pacific Rim. During calendar year 2012, APL successfully moved a total of 1,918 containers with a total line count of 110,895. In providing this outstanding service, APL has met the Required Delivery Date (RDD) 99% of the time. Our Military customers rely on this timely delivery of expected logistics. This company, a solid DOD partner, strives and succeeds in meeting these RDDs that are critical to the wartime commanders and troops on the ground. APL has been the designated carrier in support of DLA Distribution San Joaquin’s annual military exercises “Balika-

tan” in the Philippines and “Cobra Gold” in Thailand. These exercises are for the deliveries of Meals Ready-to-Eat (MREs) to support the military while they are training. This requires close coordination with APL in order to meet the sailing and delivery to these remote areas. APL’s government cargo and government logistics teams in Denver have gone beyond the call of duty to make certain the operation group in Oakland, CA knew these were high visibility Pacific Command (PACOM) exercise loads, and that space on the vessel had been allocated in order for these containers to get loaded. In addiwww.ndtahq.com | 31

tion, APL’s Philippines Team discharged these containers first to ensure Just-InTime (JIT) delivery to the exercise. APL consistently demonstrates a willingness to elevate service beyond normal expectations and takes a proactive approach to solving shipping problems to satisfy the requests and needs of its military partners. APL demonstrated this capability when it received several Central Command (CENTCOM) retrograde surface containers in error. Without any hesitation, APL partnered with DLA Distribution San Joaquin, CA to get the containers moved to the correct destination. APL delivered a total of 514–40’ CENTCOM retrograde surface containers. American President Lines is an active member of the National Defense Transportation Association (NDTA). APL’s Director of Military Sales serves as the president of the San Francisco Bay Area Chapter. APL is also a valued supporter of the San Joaquin Valley NDTA Chapter. APL is recognized for providing excellent customer support. APL’s employees maintain close working relationships with their military customers, and are readily available and always willing to provide assistance pertaining to inquiries on bookings, billing, schedules, and timely furnished equipment. The entire APL team is quick to respond to any unusual requirements. DLA Distribution San Joaquin takes great pleasure in nominating APL as the Over Ocean Carrier for the 2013 NDTA Quality Award.

Federal Express Corporation

ederal Express (FedEx) is the primary carrier used by DLA Distribution San Joaquin, CA for Continental United States (CONUS) express packages. This critical freight is expeditiously moved in accordance with the Domestic Express Small Package (DESP) program. FedEx, along with two other commercial carriers, also transports the depot’s international express small packages. This special freight falls under the Worldwide Express (WWX-5) contract under which FedEx has shipped 22,010 requisitions during 2012. Also during calendar year 2012, FedEx successfully moved a total 32 |

Defense Transportation Journal

of 604,258 express domestic and 340,703 ground domestic packages, totaling 944,961 combined package shipments that fall under the DESP and Surface Small Parcel (SSP) contracts. In providing this outstanding service, the FedEx average on-time delivery performance metrics for 2012 are well above 95% for all small parcel categories. A dedicated FedEx team of employees are stationed at DLA Distribution San Joaquin, CA. This team of professionals’ sole mission is supporting the depot. The team works multiple shifts, including weekends and holidays. DLA Distribution San Joaquin, CA Transportation Division depends on FedEx expertise for insight to critical data affecting inbound, outbound, and third party shipments. These shipments are processed using an automated FedEx device that provides transparency and accurate data to the depot. This FedEx tracking product, In Transit Visibility, is made available for all depot shipments. FedEx Corporation has a long history of using its global network to deliver important and life-saving aid and support to victims of natural disasters. A clear example of this occurred when FedEx committed nearly $1.5 million in cash and in-kind transportation to support Hurricane Sandy relief efforts across the northeast corridor of the United States. In the two weeks following the storm, FedEx Express, FedEx Ground, FedEx Freight, and FedEx Custom Critical networks transported more than three million pounds of disaster relief supplies and continued support in response to the ongoing needs of national non-profit relief organizations. FedEx is a huge supporter of the National Defense Transportation Association (NDTA) and donates $10,000 each year to the NDTA Scholarship Fund. FedEx Express and FedEx Freight also donated transportation and logistical services to the Christmas Spirit Foundation/National Christmas Tree Association. For the eighth consecutive year, FedEx took part in delivering holiday cheer to the troops and military families around the world. FedEx is consistently ranked among the world’s most admired and trusted employers. It inspires more than 300,000 team members to remain “absolutely positively”

October 2013

focused on safety, the highest ethical and professional standards, and the needs of their customers and communities.

Green Valley Transportation, Inc.

reen Valley Transportation Inc. has an excellent quality record for 2012. This is due to its consistent adherence to the conditions under the Spot Bid Process and solid application of quality criteria. Green Valley Transportation has proven to be an extremely reliable carrier, not only for DLA Distribution San Joaquin, CA, but for other Department of Defense (DOD) customers as well. Green Valley Transportation’s actions reconfirm the company’s solid commitment of timely support to the Armed Forces through its customer-focused business philosophy. It is a contributing stakeholder in DLA Distribution San Joaquin, CA’s efforts to extend improvements in the supply chain to the customer’s dock. During workload surges requiring dromedary or specialized equipment for sensitive, protective shipments, or household goods, the company quickly adapts. It provided the correct equipment and service to expediently deliver 628 shipments to meet critical warfighter mission deadlines during 2012. It has an outstanding reputation for on-time deliveries without loss or damage. Green Valley Transportation partners with DLA Distribution San Joaquin, CA to meet customer requirements and expectations, ensuring deployments and missions can be safely completed. The communication, professionalism, and partnership between DLA Distribution San Joaquin, CA and Green Valley Transportation, at all levels, are exceptional. Due to the company’s close proximity to the depot, it quickly responds to any disaster relief efforts as needed. Green Valley Transportation is an active participant in the local National Defense Transportation Association (NDTA) chapter. It provides leadership for the chapter to raise funds for annual schol-

arship awards and promote community service, membership, and professional development of DOD shippers and carriers through high quality speakers at monthly NDTA meetings. In 2012, Green Valley Transportation was a loyal contributor for the 20 scholarships sponsored by the local NDTA chapter, totaling $20,000 to facilitate the development of future transportation leaders and logisticians. It hosts an annual NDTA scholarship Open House Dinner which funds two of the NDTA scholarships. Green Valley Transportation has been a “mentor” for new carriers coming into the world of DOD Transportation/Logistics. Green Valley Transportation Inc. continuously lends support to several military organizations, hospice organizations, American Red Cross, CALFIRE relief support programs, and educational programs. It transported the 9-11 Memorial Exhibit for display throughout the United States. Green Valley Transportation Inc. continuously demonstrates their commitment to quality by providing San Joaquin, DDC, DLA, and DOD with exceptional service.

tification (pRFID) program at the ATAC Hub in San Diego, and being one of the key contributors to the development and deployment of the new ship manager online transportation program (all completed without Miramar raising its original price structure). Miramar brings its own innovative in-house solutions, while decreasing the overall cost to the government. It has been extremely responsive to the Navy’s transit requirements within the continental United States and Canada. The company’s consistent performance with vital mission critical retrograde shipments has far exceeded the expectation of the men and women in the field. Miramar has been proactive in resolving US and Canadian government customs issues, and by doing so has ensured on time deliveries. Miramar has also worked with the United States Navy to develop and maintain an expedited engine transportation program throughout the country. As a result, it successfully managed the increase of mission critical requests for expediting aircraft engines. The company provides Proof of Receipt (POR) and Proof of Delivery (POD) through EDI into the government’s Electronic Retrograde Management System (ERMS), as well as Ship Manager, to provide accurate performance data. It pro-

vides Third Party Logistics (3PL) services including warehouse personnel, management, and IT support. These services are fully capable of supporting RFID requirements when they become mandatory throughout the DOD supply chain. Miramar is a TSA Certified Cargo Screening Facility (CCSF), ensuring a higher level of cargo security. It provides local area pick-up in San Diego, CA; Norfolk, VA; Jacksonville, FL; Cherry Point, NC; and Honolulu, HI, which reduces DOD cost of transportation by bringing material into centralized warehouses for further consolidation. Miramar also provides expertise in managing the specialized moves for FRC equipment. Miramar has consistently met transit time standards and delivery requirements to its customers, enabling ATAC to continuously decrease customer wait time for CONUS shipments. Miramar has shown an overall on-time delivery rate of 96%. Using a professional team of transportation specialists, Miramar personnel partnered with ATAC personnel to quickly resolve problems and implement a national physical distribution plan that has optimized delivery speed, cost, and improved the DOD’s national and global physical distribution process. Miramar has proven its ability to consistently meet and exceed ATAC’s expectations.

Miramar Transportation, Inc.

iramar Transportation is a small business carrier for the US Navy’s Advance Traceability and Control (ATAC), retrograde transshipment program. To date, it has handled over 161,000 shipments exceeding 1.23 million line items with a combined weight in excess of 285 million pounds. Miramar demonstrates an intense focus on scalability, allowing ATAC operations to fluctuate, while maintaining a high rate of on-time delivery performance. The company maintains reliable transit times for all types of shipments, including those with routine, expedited, and non-routine delivery times. It also provides superior quality, on-site customer service, and process improvements. This includes implementation of the DOD mandated passive Radio Frequency Iden-

Supporting America’s troops worldwide.

www.atlasintl.com | sales@atlasintl.com | +1. 888.669.6031 www.ndtahq.com | 33

Pilot Freight Services 151 C

Cool Gray 7 C

ilot Freight Services has an outstanding quality record of providing transportation services for DLA Distribution San Joaquin, CA. Strict adherence to their Global Freight Management (GFM) tender specifications and vigorous application of quality criteria are hallmarks of this company’s quality success record. Pilot Freight Services has an outstanding reputation for on-time delivery. During 2012, it delivered over 1,165 domestic critical expedite air shipments, with some deliveries being made to remote areas. Pilot Freight Services has met the performance requirements when it comes to delivering shipments intact and without loss or damage. It has performed well by providing timely equipment and drivers from pick up to delivery, consistently within the terms to reduce Customer Wait Time (CWT). The critical supplies or parts are quickly delivered so the warfighters can safely complete deployments or missions. Pilot Freight Services actions reconfirm the company’s solid commitment to timely support of the Armed Forces through the company’s customer-focused business philosophy. It is a contributing stakeholder in the depot’s effort to extend improvements in the supply chain to the customer’s dock. The company’s drivers and dispatchers work with DLA Distribution San Joaquin, CA and its customers when there are unexpected events that interfere with scheduled deliveries. The company works around weather problems of snow, rain, or fog; access problems to destination installations; and minor manpower or facilities problems. To minimize the cost and delivery time, Pilot Freight Services also makes a daily delivery to Travis AFB for priorities weighing less than 150 lbs. The communication, professionalism, and partnership between DLA Distribution San Joaquin, CA and Pilot Freight Services, at all levels, are exceptional.

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Pilot Freight Services personnel serve on the Board of Directors in the local chapter of the National Defense Transportation Association (NDTA). It provides leadership for the chapter to raise funds for annual scholarship awards, support local charitable organizations, and improve the professional development potential of DOD shippers and carriers through high quality speakers at monthly NDTA meetings. In 2012, Pilot Freight Services representatives assisted with the local NDTA chapter’s efforts to achieve the goal of awarding 20 scholarships totaling $20,000 to facilitate the development of future transportation leaders and logisticians. Pilot Freight Services continues to support the United States through charitable contributions to military organizations, children’s foundations, and medical research. In support of Hurricane Sandy Relief, it collected and shipped pallets of food, supplies, and blankets. Pilot Freight Services continuously demonstrates its commitment to quality, by providing DLA Distribution San Joaquin, CA, DDC, DLA, and DOD with exceptional service.

Secured Land Transport

nnovation: Secured Land Transport (SLT) set the standard high in innovation during the Hurricane Sandy recovery efforts, providing Navy Munitions Command Detachment Earle (NMC Det Earle) with outstanding service both personally and professionally. SLT not only offered its services to NMC Detachment Earle, but to the Installation Commanding Officer by contacting the Naval Weapons Station Earle Emergency Operations Center to see what needs there were and to offer its services. During normal deliveries, depending on space availability, drivers filled their vehicles to capacity with desperately needed food and supplies for displaced employees and local residents on station. The humanitarian efforts SLT

October 2013

provided proved that it is a company with heart. It is not only concerned with the best interest of its customers, but it displayed that concern for the surrounding communities as well. The company is on the verge of increasing its fleet of vehicles to increase the amount of AA&E service support to and from government facilities. Quality of Service: NMC Detachment Earle is highly impressed with SLT’s outstanding dependability and superb efforts in meeting the detachment’s needs and requirements. SLT always supports NMC CEO Det Earle and displayed extra dedication to customer service by providing a recent site visit from two of its highly enthusiastic representatives. The company’s drivers arrive in a timely fashion and rarely have to reschedule pickups. They are extremely reliable and can always be counted on, which is extremely important in the attainment of mission requirements. Partnership/Team Work: NMC Det Earle was deemed in a condition of “Force Majeure” as a result of Hurricane Sandy and the quick striking Nor’easter, which impacted the ability to off-load trucks in a timely manner due to various ship schedule changes. SLT displayed excellent support, team work, and partnership with the detachment and the United States government during this period by waiving $20,200 in detention charges that occurred after the storms passed. This effort enabled the detachment to shift focus more toward Hurricane recovery efforts and meeting mission requirements, loading critical assets onboard deployable ships. DOD-Wide Application: SLT has excellent equipment availability and great rates. Due to recent budget cuts and sequestration, these rates are very reasonable and should fall in line with any new budgetary constraints in the future. In the long run, these rates should fare well with all DOD entities. SLT’s dispatchers work extremely well with the detachment’s transportation branch, keeping the workforce informed on delivery/pickup status. In the event there are any delays, SLT dispatchers are very proactive in notifying NMC Detachment Earle to enable it to shift its daily operating schedule to avoid downtime for the crews.

Nothing happens . . . until something moves.

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NDTA INTERNATIONAL CHAPTER OF THE YEAR AWARDS The International Chapter of the Year Award was initiated in 1977 to recognize chapters that have excelled in fostering the goals and objectives of NDTA; promoting an understanding of the importance of transportation to the security of the nation; participating in community service programs; developing quality educational programs for the chapter membership; and providing for chapter growth through effective membership recruiting and retention programs.

Category II Tampa Bay Chapter

he dynamic Tampa Bay Chapter is once again presented with the prestigious International Chapter of the Year Award as a result of its exceptional programs and excellent community involvement. Its programs, which include a wide range of professional, personal, and humanitarian events, have been recognized on both national and local levels during the past year. Chapter membership is actively engaged with the local community, its home military installation MacDill AFB, and two Combatant Commands located on the base (HQ, Central Command and HQ, Special Operations Command). Together, these groups are at the tip of the spear when it comes to fighting the global war on terror, and thus some of the nation’s highest-level defense leaders are found at MacDill. During this award period, the chapter participated in four socials, a scholarship fundraising golf tournament, it played a role in the Joint High Speed Vessel Spear Head visit, presented a guest speaker program, a CENTCOM HQ tour, and multiple community outreach programs. The Tampa Bay region is a huge logistics hub that includes the Port of Tampa, Tampa International Airport, and an interstate system that reaches military and civilian ports of embarkation from Florida to Canada. The chapter’s membership base ranges from current and retired flag officers, to the innovative and

creative leaders in the civilian transportation fields that support the nation’s transportation infrastructure, defense policies, and global applications. The chapter members are a true example of the civilian and joint-Service mindset, as they include Army, Navy, Air Force, Marine, and Coast Guard members that provide a broad and unique perspective on Service-specific actions. The distinctive accomplishments of the Tampa Bay Chapter reflect credit upon themselves, MacDill AFB, the entire Tampa Bay community, as well as the ideals set forth by the NDTA.

Category III Scott-St. Louis Chapter

he Scott-St. Louis Chapter is recognized as the NDTA 2013 International Chapter of the Year, Category III, for outstanding service to its local community, the NDTA, and the United States. NDTA Chapter 82 has had a banner year, leading by example in serving chapter members, sponsors, the community, Department of Defense (DOD), and Headquarters NDTA. Throughout the year, Chapter 82 provided a slate of leading speakers, experts in a variety of disciplines from military, commercial industry, academia, and government to enhance the professional development of its membership. Through an active partnership with St. Louis University Center for Supply Chain Management Studies, Chapter 82 remains connected

to both local and national level thought leadership in supply chain management. Through ongoing fundraising efforts and the generosity of its membership, the chapter provided financial contributions to charities serving critical needs in the veterans’ community. In December, as it had done in the previous year, Chapter 82 held a successful holiday toy drive and birthday recognition program in partnership with the Children’s Foundation of Mid America; providing 300 presents and over $1000 in donations to less fortunate children. Chapter 82’s active partnership with local grade schools produced the NDTA national level National Transportation Week (NTW) poster contest winners, and further strengthened the already close ties between the chapter and local community. Its recognition of NTW also included a luncheon featuring a leading transportation academic, scholarship awards dinner, and charity golf outing, which raised over $12,000 for scholarships and veterans outreach support. The activities of the past year truly epitomize what it means to be an NDTA Chapter in terms of community outreach, DOD support, member support and recruiting, A-35 activity, and engaging chapter sponsors. The distinctive accomplishments of the men and women of Chapter 82 are representative of the highest ideals held by the National Defense Transportation Association and as such, they are richly deserving as this year’s NDTA International Chapter of the Year Award, Category III.

NDTA INTERNATIONAL A-35 CHAPTER OF THE YEAR AWARDS The International A-35 Chapter of the Year Award was instituted in the continuing endeavor to involve young people in the varied programs of the NDTA and to recognize those chapters that make significant contributions to the furtherance of this goal.

Category II San Antonio Chapter

he San Antonio Chapter is recognized as the 2013 International A-35 Chapter of the Year, Category II, for outstanding achievement in meeting the goals of the chapter and national association. The San Antonio Chapter

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Defense Transportation Journal

Action-35s (A-35s) eagerly arranged and coordinated several chapter events, in addition to being highly active in other parts of the association. A-35s serve as San Antonio Chapter officers and, as members of its board of directors, they chaired and served on several chapter committees. The A-35s aggressively promoted the spirit and mission of the NDTA by

October 2013

direct involvement in planning chapter and community activities. As part of the Nation’s 2013 celebration of National Transportation Week, A-35s arranged for the Mayor to proclaim May 12-18 as San Antonio Transportation Week for the year 2013. Additionally, to honor the Nation’s military, the A-35 members sponsored, arranged for, and served breakfast to

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Wounded Warriors and their families at the Lackland Fisher House in San Antonio. The A-35s’ involvement directly impacted the San Antonio Chapter’s ability to provide four thousand dollars in scholarships and educational support for deserving students. The San Antonio Chapter’s A-35s have made long-lasting and significant contributions to further the objectives and goals of the NDTA. The chapter is extremely proud of its A-35 members, just as the A-35s are proud of being a part of the NDTA. They are the very reason the San Antonio Chapter has truly earned the prestigious award of Category II International A-35 Chapter of the Year for 2013.

Category III Scott-St. Louis Chapter

he Scott-St. Louis Chapter 82, is recognized as the 2013 NDTA International A-35 Chapter of the

Year, Category III, for its outstanding service to the local community, development of young professionals, NDTA, and the United States. The Scott-St. Louis Chapter strives to make a positive impact on the surrounding community every day by connecting with young military logistics professionals from Scott Air Force Base and engaging them in chapter activities. Chapter 82 recognizes the significance of A-35 involvement by offering robust Mentor-Protégé events, providing young professionals the opportunity to foster enduring positive relationships with military and industry stewards. The Scott-St. Louis A-35 Committee provided professional development opportunities where young professionals could interact with other young professionals, as well as a variety of interesting mentors including leaders from the Joseph Center, local civic leaders, senior military, and senior executives from NDTA Corporate Membership.

The committee also showed extraordinary community involvement through volunteer events, which also fostered professional growth and provided networking opportunities. Chapter 82’s A-35s partnership with the Children’s Foundation of Mid-America made a significant and lasting difference in the lives of less fortunate children and their families. The A-35 chair and committee leadership were integrally involved in broader chapter activities, showcasing their leadership abilities to the Scott-St. Louis defense transportation community. Chapter 82 increased its A-35 membership over the last year and continues to set high membership benchmarks for the upcoming year. These programs are the critical lifeblood of the A-35 committee and Chapter 82’s A-35s are indeed deserving of this award.

NDTA MILITARY UNIT OF THE YEAR AWARDS Since 1966, NDTA has honored units of the military Services that have performed outstanding service in transportation or a related field. These units are selected for this recognition by each of the Services.

Army US Army Active component 73rd Transportation Company (Floating Craft) 10th Transportation Battalion Joint Base Langley-Eustis, Virginia

Since June 2012, the 73rd TC Soldiers and crews of the LT-805, ST-911, and ST-913 have sailed in excess of 11,450 total nautical miles. On 12 June 2012, LT-805 sailed 3,150 nautical miles to Naval Air Station (NAS) Pensacola, FL to tow the Navy Helicopter Landing Trainer (HLT) IX 514 to King’s Bay, GA, saving the US Navy over $1,000,000 in civilian contracts. That same month, the Soldiers of the ST-911 were called to assist a disabled civilian vessel and brought the disabled vessel to a safe haven for repair and further assistance. On 26 July, LT-805 responded to a distress call from Reserve unit, 949th Transportation Company to pull both the ST-915 and the BC Barge to Baltimore, saving the US Army $100,000 in towing costs. In August, Joint Logis38 |

Defense Transportation Journal

tics Over The Shore (JLOTS) Operation in Norfolk, VA, LT-805 recovered a Landing Craft Utility (LCU) vessel that lost both main engines. The ST-911 and ST-913 assisted in docking the Logistics Support Vessel (LSV), two LCUs, and a Navy Landing Craft Mechanized (LCM) to the pier. The ST-913 towed the 1,200 foot floating causeway trident pier off the shore to Joint Base Langley Eustis. In December 2012, the ST-911 crew sailed over 130 nautical miles towing a barge consisting of navigational buoys and aides from Little Creek Amphibious Base, VA to Tall Pines, MD, for the US Coast Guard, saving over $120,000 in civilian over the road contracts. LT-805 assisted Reserve Floating Craft Company, the 467th Transportation Company small tug, ST-905, during one of its missions with the 160th Special Operation Aviation Regiment (SOAR) saving the 467th TC having to incur additional mission costs. From March to May 2013, thirteen Soldiers sailed over 2,000 nautical miles from the LT-805 and BD115T crews deployed to Yokohama, Japan, and

October 2013

Pohang, South Korea for a Combined JLOTS Operation. This was the first successful open ocean tows of the BD115T in nearly a decade. In addition to sailing missions, in October 2012 soldiers represented the unit and Fort Eustis in the Army Ten Miler in Washington, DC, with two teams to represent the unit and representation on the Fort Eustis Post Ten Miler Team. Soldiers also participated in May 2013 in the Virginia Run for the Fallen; a run to pay tribute to every Virginia Service Member killed in the Global War on Terror.

US Army National Guard 1244th Transportation Company (IL-ARNG) 1144th TMT BN North Riverside, Illinois

The 1244th TC has nothing less than an impressive record of success. Its mission success rate, dependability, and enforcement of logistical policies and procedures support this claim. Upon returning from its most recent deployment to Southwest Asia, the unit has continued its success and drive.

In those 12 months, the unit amassed over 120,000 miles of CONUS convoy operations with zero accidents or injuries. The 1244th provided invaluable support to the 33rd BCT’s XCTC certification training. Its high level of readiness allowed the unit to be proactive in combining training with the needs of the supported unit. This reduced commercial transportation costs by utilizing the organic assets of the 1244th to efficiently execute line-haul movement of 145 containers, 85 vehicles, and general sustainment assets, saving thousands in taxpayer funds. This was while the unit was in Reset Status of the ARFORGEN Cycle. The unit and its soldiers remained competitive, setting the standard for Logistic Operations within the 108th Sustainment Brigade and the 1144th Transportation Motor Transport Battalion. The 1244th TC leads the way in administrative and supply functions. The unit is consistently the first in completion and implementation of mandated projects and policies. Illinois recognized the 1244th TC as having the top family readiness group during combat and garrison

environments. This recognition further supports that the 1244th TC is a battle ready, proficient, motivated, and wellrounded unit. The unit meets and exceeds the mandates required of a United States Army Transportation Unit, the soldier, and transportation creeds. The soldiers of this unit are irreproachable role models and meet these standards while upholding the Army values.

US Army Reserve Component HHC, 4th Sustainment Command (Expeditionary) 79th Sustainment Support Command (SSC) San Antonio, Texas

The HHC, 4th Sustainment Command (Expeditionary) added to its lineage of honor while serving as the HHC, Joint Sustainment Command–Afghanistan (JSC-A). From the onset of receiving the order to deploy in support of Operation Enduring Freedom, the HHC quickly assembled deployment teams of trained individuals ready to handle deployment/ redeployment operations (D/ROPS), HAZMAT, load planning, unit movement, and logistics SME’s to ensure the

expeditious and seamless movement of over 100 short tons of equipment and over 250 soldiers, via STRAT-air, sea, and contract air to meet their RDD and proudly report boots on ground in Kandahar, Afghanistan. Within days of arriving in theater, the HHC had imbedded the company members with their predecessors and took control of current operations alongside the outbound unit to ensure that a timely and successful RIP/TOA would be achieved. During the tenure as the HHC JSC-A, the company would go on to amass an exceptional track record of excellence to include assisting and or being directly involved in: moving 6,800 passengers per month for R&R; distributing over 4M pounds of mail per month; fortifying a perimeter that facilitated over 400 troops; returning over $15,345,082 in equipment and supplies found on KAF; Class I – 11M meals per month valued at $140M; Class V – over 320 pallets per month, based on demand; and establishing a W6U CRSP yard to facilitate a massive endeavor for material reduction.

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Its mission success rate, initiative, and enforcement of logistical policies and procedures cement the accolades and add to the fidelity of this command. In both peacetime serving at home or deployed serving abroad, the HHC 4TH Sustainment Command sets the standards high to bring great credit upon the unit and the US Army Reserves.

Marine Corps USMC Active component Combat Logistics Battalion 1 (CLB-1) 1st Marine Logistics Group Camp Pendleton, California

Throughout 2012, Combat Logistics Battalion 1 (CLB-1), currently based out of Marine Corps Base Camp Pendleton, CA, set itself apart as the premier logistics battalion within the Department of Defense. While performing duties in support of Operation Enduring Freedom and at its home station, the battalion members developed a reputation as the quiet professionals that could be relied on to accomplish any mission, anywhere, at any time. CLB-1 deployed in support of Operation Enduring Freedom 11.2 from October 2011 to April 2012. During this period, CLB-1 provided direct support to Regimental Combat Team 5 (RCT-5), its subordinate units, and all other coalition forces conducting operations in the Southern Helmand Province of Afghanistan. In the course of accomplishing its mission, CLB-1 conducted 302 combat logistics patrols (CLP); traveled over 315,800 miles; and transported 1,292 personnel, 350,300 gallons of water, 234,300 gallons of fuel, and 3,410 twenty-foot equivalent units. The battalion also processed 2,220 Logistics Support Requests and conducted 32 Helicopter Support Team lifts. CLB-1 processed 2,100 equipment repair orders that encompassed approximately 31,500 man hours of work. Upon return from supporting Operation Enduring Freedom, CLB-1 was given the responsibility of being the Direct Support (DS) CLB to the 1st Marine Expeditionary Brigade (MEB). As a result, CLB-1 provided direct logistical support to the First Marine Regiment and other participating units. In order to prepare for this demanding task, the unit conducted 40 |

Defense Transportation Journal

a strategic Mobility Exercise (STRATMOBEX), a Motor Transport Company Field Exercise (FEX), a Battalion FEX, and participated in Exercise Steel Knight 2012. During these four exercises, CLB1 conducted over 150 CLPs, drove over 14,500 miles, and transported over 4,000 personnel. In addition, CLB-1 provided over 25,000 gallons of water, 80 pallets of Meals Ready to Eat (MREs), 13,000 gallons of fuel, and 76,735 of various rounds of ammunition to First Marine Regiment and other supported units. In summary, CLB-1 has continually displayed a sustained level of superior performance and has set the standard for logistics units throughout the Department of Defense. The battalion is routinely recognized for its actions and is sought after for its support. The unitâ&#x20AC;&#x2122;s members have proven themselves in the most difficult of situations and continue to find ways to improve. CLB-1 will continue to set the standard for years to come.

US Marine Corps Reserve Component 4th Landing Support Battalion (4th LSB) 4TH Marine Logistics Group Joint Base, Lewis-McChord, Washington

The 2012 Commandant of the Marine Corps (CMC) campaign plan directed the development and conduct of one Large Scale Exercise (LSE) per year, able to facilitate the training of a MEB-sized Marine Air Ground Task Force (MAGTF). TECOM recognized that 29 Palms provided the Marine Corps with the perfect venue to conduct such training, and identified Javelin Thrust -12 as the proof of concept for this newly designed LSE. While the 1st Marine Expeditionary Brigade (MEB) Command Element (CE) existed, it did not have the subordinate units assigned, nor did the active component have the available units to assign to the MAGTF, due to ongoing combat operations. Therefore, US Marine Corps Reserve (MARFORRES) units, assigned to 1st MEB during Javelin Thrust-12, trained together as a fully integrated MAGTF and conducted LSE-1 in August of 2012. 4th Landing Support Battalion (4th LSB) was appointed as the lead Battalion within 4th Marine Logistics Group (4th MLG) for planning and executing 4th MLGâ&#x20AC;&#x2122;s role as the Logistics Combat Element (LCE) of LSE-1/Javelin Thrust-12

October 2013

(JT-12). The LCE was an O-6 led Combat Logistics Regiment (CLR-4) that consisted of over 950 Marines and sailors sourced from 63 separate Home Training Centers (HTC). CLR-4 included over 900 end items, sourced from 37 HTCs and shipped via 150+ TOT shipments, spanning from HTCs on the East and West Coasts of the Continental United States. Within CLR-4, 4th LSB was responsible for establishing the Arrival/Departure Air Control Group (A/DACG) in the Ontario, CA International Airport. The A/DACG was responsible for receiving and tracking all personnel who deployed ISO of the 5,000+ person MAGTF that participated in LSE-1 from 110 HTCs nationwide. Key highlights of the A/ DACG included the reception and processing of the Main Body movement of over 3,500 Marines and Sailors from across the country during a three day time period. Marines were flown into Ontario airport via standard commercial flights and contracted air, processed through the Joint Reception Center, then transported over 100 miles to the training area, where they were joined to the exercise force. At the conclusion of the exercise, the A/ DACG transported and out-processed the 3,500 Main Body Marines and Sailors, ensuring 100 percent accountability and no missed flights, but accomplished the feat in only two days. Overall, during the conduct of the exercise, 4th LSB received, processed and successfully redeployed over 5,000 Marines and Sailors in support of LSE-1/JT-12. Furthermore, 4th LSB was tasked with establishing the Equipment Reception Point (ERP) at Camp Wilson, 29 Palms. The ERP was responsible for receiving and accounting for an additional 350 pieces of equipment on behalf of the MAGTF, then ensuring that all Transportation Of Things (TOT) requests were in place for the retrograde of all of the equipment received. During the retrograde process, the ERP successfully shipped over 350 pieces of equipment to over 50 HTCs with no loss of equipment or missing shipments. During the RSO&I phase of LSE-1/JT12, 4th LSB was responsible for drawing equipment for the Logistics Combat Element (LCE) of the MAGTF from the Exercise Equipment Allowance Pool (EEAP) and the Division Equipment Allowance Pool (DEAP). This equipment was drawn

in order to minimize the overall costs of TOT shipments for LSE-1/JT-12. 4th LSB successfully drew 20 pieces of equipment from the DEAP, located in Camp Pendleton, CA and coordinated the shipment of this equipment to 29 Palms, CA. 4th LSB also drew over 180 pieces of equipment from the EEAP aboard Camp Wilson, 29 Palms. Upon the conclusion of the exercise, 4th LSB ensured that all equipment was cleaned, all JLTIs were completed, and equipment was returned to the EEAP and the DEAP. This task was done simultaneously while the ERP successfully shipped the above mentioned equipment to their respective HTCs.

Navy US Navy Active component Navy Cargo Handling Battalion One (NCHB-1) First Navy Expeditionary Logistics Regiment Cheatham Annex, Williamsburg, VA

US Navy Cargo Handling Battalion ONE (NCHB-1) is the Navy’s only active duty cargo handling battalion. It is a rapid response, forward deployable logistics support team tasked with conducting expeditionary cargo handling, air terminal, ocean terminal and shipboard cargo operations; they are the Navy’s 911 Cargo Handlers. NCHB-1 is capable of providing independent mission-tailored detachments or entire command deployment as a selfsustaining unit to any region in the world. Its unique capability and flexibility placed NCHB-1 in key roles during numerous real-world contingency operations and training exercises during 2012. NCHB-1 conducted cargo handling and expeditionary logistics support on four continents, deploying personnel globally in support of three Maritime Prepositioned Squadrons, all three Marine Expeditionary Forces, both Naval Beach Groups, maintenance for Maritime Prepositioned ships, the National Science Foundation and others. For NCHB-1, 2012 was a successful and high operational tempo year. This was evidenced by the successful completion of 25 operations and exercises, to include two community relations operations. NCHB-1 is a one-of-a-kind, truly remarkable unit that is most deserving of the recognition afforded by this award.

US Navy Reserve Component Navy Cargo Handling Battalion Ten (NCHB-10) Second Navy Expeditionary Logistics Regiment Yorktown, Virginia

A Navy Cargo Handling Battalion’s Air Cargo Company provides expeditionary, air cargo handling and support capabilities to geographical combatant commanders in support of the National Military Strategy. During the last 12 months, the efforts of Navy Cargo Handling Battalion TEN’s (NCHB-10) Air Cargo Company efficiently and effectively provided outstanding support during its tenmonth deployment to Afghanistan. From January to October 2012, 24 members provided direct joint logistical and transportation support to operational units located in Afghanistan. Providing direct support to the 3rd Marine Air Wing (3rd MAW) Forward and Marine Air Logistics Squadron Sixteen (MALS-16), the company successfully maintained accountability and control of 31,483 mission essential items. Company members meticulously tracked and processed 8,602,879 pounds of parts and supplies, valued at $1.1B, significantly contributing to increased aircraft readiness across the 3rd MAW and MALS-16 (by 11 percent). These Sailors were always under the threat of indirect fire; however, during an actual attack by insurgents, the Sailors of the Air Cargo company quickly reacted by escorting troops to safer locations, transporting casualties to the Aid Station, and protecting the Quick Response Team as they cleared areas. NCHB-10’s Air Cargo Company truly represented the spirit of Reserve forces during 2012. No other Reserve unit so proudly represents the noteworthy prestige of the NDTA’s 2012 Military Unit of the Year Award, US Navy Reserve.

Air Force USAF Active component 721st Aerial Port Squadron 521st Air Mobility Operations Wing Ramstein Air Base, Germany

The exceptional airmen of the 721st Aerial Port Squadron (APS), the largest aerial port squadron in the USAF, continue a legacy of operational excellence in sup-

port of the global air mobility mission. The 495 dedicated aerial port professionals of the 721 APS provided world class air transportation support to three Combatant Commands, serving as the linchpin to strategic and theater air mobility operations throughout Europe, Africa, and Southwest Asia. True to the Latin motto emblazed on their squadron emblem, “Aut Viam Inveniam Aut Faciam,” meaning “I Will Either Find a Way or Make One,” the 721 APS “Port Dawgs” stop at nothing to support the warfighter. Despite a 10-month terminal roof renovation project that displaced its entire cargo processing operation, the highly motivated personnel of the 721 APS moved 101,000 short tons on 14,000 aircraft missions and 10,000 surface movements. As a strategic passenger hub, the 721 APS executed seven Patriot Express passenger channel missions per week to include a US European Command validated mission, which rerouted 25,000 passengers from Frankfurt International Airport through Ramstein Air Base, improving force protection for service members and their families. The 721 APS made significant facility, customer service, and baggage handling process improvements to make the Ramstein Passenger Terminal the “Crown Jewel” and better serve its 242,000 total passengers moved in 2012. The 721 APS airmen executed the busiest workload in the en route system with exceptional skill and professionalism. During the 2012 Air Mobility Command Logistics Compliance Assessment Program inspection, the 721 APS earned an “Outstanding” rating with an astounding 97.6% pass rate. Additionally, as citizen airmen, 721 APS personnel were actively engaged in their community and ensured that 534 fallen warriors were provided dignified and swift movement home to their loved ones. The 721st Aerial Port Squadron is recognized as the US Air Force’s Active Duty NDTA Military Unit of the Year.

US Air Force Reserve Component 81st Aerial Port Squadron 315th Airlift Wing Joing Base, Charleston, South Carolina

The 81st Aerial Port Squadron, Joint Base Charleston, SC, is the winner of the National Defense Transportation Associawww.ndtahq.com | 41

tion’s US Air Force Reserve Component Military Unit of the Year Award for delivering outstanding results in both the area of responsibility and at home station. With 63 members deployed for over 11,200 man-days, the impact of the 81st was felt across the theater in Thumrait, Manas, Bagram, and Kandahar. The combined efforts of its team enabled the safe transportation of over 146,000 tons of cargo and 506,000 passengers on over 22,000 missions. In Thumrait, not only did squadron members supply key equipment and cargo to Kandahar and Bagram, but they also pushed opportunistic cargo movement, transporting 729 tons ahead of schedule and saving 13 C-17 missions worth $1.2 million. Members also supported the massive deployment and redeployment of six fighter and rescue squadrons, transporting all support equipment and personnel to enable the swap-out of every F-16 and A-10 within four days. Finally, members airlifted 307 Mine Resistant All Terrain Vehicle kits to forward operating bases within 24-hours, fulfilling the Secretary of Defense’s number one priority and protecting ground combat troops. All of this was done while simultaneously increasing passenger capacity at Thumrait by 250 percent, and leading convoy mitigation by optimizing C-130 airlift to eliminate the need for 120 convoys to pass through improvised explosive device areas. The 81 APS was also at the forefront of innovation. Members instituted new processes to airlift blood and plasma to 14 forward operating bases within 30 minutes of receipt, saving lives with the new process. Another innovation was a new passenger visibility metric for planners to clearly see “Boots on Ground” conditions, reducing backlog by 20 percent. Additionally, these porters were key players in improving the movement of high priority unmanned aerial vehicles and helicopter transportation in theater.

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Most notably, the 81 APS also invests in improving the effectiveness and safety of its most important asset. Not only did the unit have a 90% Fit-to-Fight passing rate, they managed the Reserve “Super Shuttle” for 480 wing members across three states and participated in village and orphanage events for the Manas Air Base Outreach Society. Overall, the professionalism of the members and their commitment to top performance in the area of responsibility, in innovation, and in quality of life programs make the 81 APS deserving of NDTA’s Military Unit of the Year Award.

Coast Guard US Coast Guard Container Inspection Training and Assistance Team (CITAT) US Coast Guard Force Readiness Command Oklahoma City, Oklahoma

The Container Inspection Training and Assistance Team (ClTAT) is a 10-member unit tasked with training personnel and assisting Coast Guard units with enforcing the requirements of the Federal Hazardous Material Transportation Regulations and International Maritime Dangerous Goods Code. CITAT also directly supports and trains Department of Defense (DOD), Department of Transportation, multi-national agencies, and the transportation industry in the safe transportation of hazardous materials. During 2012, CITAT trained a total of 722 people and assisted countless others; many of those trained are Coast Guard inspectors assigned to Sectors and Marine Safety Units tasked with carrying out the mandated National Container Inspection Program. CITAT also trains the Redeployment Assistance and Inspection Detachments (RAID) that deploy to assist DOD units in Afghanistan and Kuwait for Operation Enduring Freedom, significantly

October 2013

improving the safety and security of multimodal hazardous materials shipments. Deployed 539 days, assisting 14 separate Army units across the United States, CITAT’s direct support greatly increased the efficiency and proper shipping of vital war fighting equipment and supplies to Afghanistan, ensuring it reached its destination without delay. In 2012, CITAT expanded its support of the Army by participating in the first-ever “TRANS WARRIOR” exercise designed to improve coordination among the Army’s transportation mission specialties in the deployment and distribution of cargos in port areas. The three-day exercise led to significant improvements in the transportation mission capabilities of the Army and was recognized nationally in Soldier of Fortune Magazine. Expanding its reach to the international transportation community, CITAT has also conducted training for military, customs and port authority personnel in Guyana, Uruguay, and Belize. These international training missions not only strengthen the regulatory enforcement programs of these partner nations, but also provide for increased safety and security to the entire international maritime community. In 2012, the importance of this program was highlighted as inspectors from Guyana interdicted 350 kilograms of cocaine in a shipping container, with an estimated street value of $30 million. Guyana directly attributed the discovery of the narcotics to the training received from CITAT. CITAT is tirelessly improving training programs and ensuring delivery of courses to units with improved cost savings. During 2012, CITAT saved more than $30,000 in instructor travel expenditures through various cost saving methods. The unit’s professionalism and unmatched expertise in hazardous materials transportation safety has earned the respect and admiration of the Department of Defense, Department of Transportation, and the transportation industry at large.

SDDC EXCELLENCE IN TRAFFIC MANAGEMENT AWARDS

ARMY

Ms. Natasha L. Boucicaut

NAVY

Marine Corps

AIR FORCE

Mr. Todd Zuidema

Gunnery Sergeant Anabell Nevels

Master Sergeant Renee L. Munshower

Communications-Electronics Command Aberdeen Proving Ground, Maryland

NMC CONUS East Division (CED) Detachment Mayport, Florida

COAST GUARD

DLA

AAFES

DCMA

Mr. Floyd Edmonds

Sergeant First Class Nicholas L. Braddock

Ms. Chris L. Taylor

Mr. Bradley MacPherson

Coast Guard Aviation Training Center Mobile, Alabama

Defense Fuel Support Point Charleston, South Carolina

Distribution Management Office Camp Pendleton, California

Joint Personal Property Shipping Office â&#x20AC;&#x201C; South Central Joint Base San Antonio, Texas

AAFES Kandahar, Afghanistan

DCMA Transportation Group, Southwest Team San Antonio, Texas

NDTA INSTRUCTOR OF THE YEAR AWARDS

ARMY active component

SFC Mark A. Woodward

Deployment & Deployment Systems Department US Army Transportation School Fort Lee, Virginia

ARMY National Guard

SSG David C. Hughes

2nd Battalion (Modular Training) 196th Regiment (Regional Training Institute) Sioux Falls, South Dakota

marine corps

Sergeant Brian O. Braxton

Ground Supply School Marine Corps Combat Service Support Schools Camp Lejeune, North Carolina

ARMY reserve Component

SFC Angel T. Jackson

8th/108th BN (TC), 2nd Brigade, 94th Division (FS) Jackson, Mississippi

NAVY

Mr. Charlie Carter

Navy Supply Corps School Newport, Rhode Island

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Talent: The Future Supply Chain’s Missing Link An Analysis of the Major Challenge to the Future of Global Supply Chains

Irvin Varkonyi, President, Supply Chain Operations Preparedness Education (SCOPE) ivarkonyi@scopedu.com

n this space, we have previously discussed the shortage of talent to drive supply chains in the private and public sectors. Though increased attention has been drawn to this issue, a recent study published in August 2013 indicates that much progress remains. “It is the dawn of a new era. Much to their chagrin, when companies go to the market to recruit, they are finding that the competition for supply chain talent has never been tougher. They simply are not able to find supply chain talent to backfill critical jobs,” says Lora Cecere, Founder and CEO of Supply Chain Insights, LLC.1 She notes five “stay awake” issues: 1. Opportunity for improvement – of those companies surveyed in a study by Supply Chain Insights, fully a third self-reported that they see themselves as worse than their peers in managing supply chain talent. 2. High turnover – the study estimates 15% turnover in supply chain employees. 3. Shortage of talent – the average company in the study has four positions open for five months. 4. Stiff competition for college graduates – there is a 6:1 demand to supply ratio for new college graduates in the supply chain field. 5. Working on the “right stuff ” – only 23% of companies responding to the study has a planned cross-functional training program for existing supply chain employees.

positions, greater competition between organizations to hire middle management staff, and an incorrect focus on universities to prepare supply chain talent who are able to function in middle management. How has demand appeared to exceed supply for supply chain talent? Cecere found a number of factors: 1. Aging workforce and retirement of baby-boomers – while this writer is a member of the baby-boomer generation and is not contemplating retirement, apparently many of my peers are. In fact some of this demographic danger has been softened by the economy, as many in this generation have chosen to continue to work to prepare for a longer than expected life span and uncertainty about retirement savings. 2. Outsourcing of manufacturing and logistics – we are utilizing outsourcing to drive logistics efficiency, because logistics can offer competitive advantages by driving down costs. Yet third party and fourth party companies, which offer such services, have had challenges to bring in enough of the right individuals to fulfill the promises they have made to their customers. 3. Technology – as technology rapidly evolves, it tests the ability of organizations to use it properly, to find supply chain talent that can optimize such technology.

service, rather than cross functional training, negatively impacts organizational performance. Job progression within these functions, instead of cross functions, limits career opportunities. A group of 16 issues were surveyed for their impact on supply chain talent. The three top issues were: 1. Lack of clear job progression and career path (mentioned by 40% of respondents). 2. Lack of executive understanding regarding supply chain talent (34%). 3. Reluctance to embrace new ways (34%).

2 Talent: The Future Supply Chain’s Missing Link – Time to Rethink Strategies?”, Lora Cecere, August 13, 2013

The conclusion of the study by Supply Chain Insight produced three principal recommendations: 1. Make current employees feel valued, especially focused on mid-management - historically, training for largescale technology implementations has driven training budgets. The study recommends a strong need to develop training programs to alleviate turnover and make employees feel more valued. Organizations such as the Society for Human Resource Management, www. shrm.org, have tools to measure the return of investment from employment training. (See ending note.) 2. Build a human resources plan to focus on the elements that matter in recruiting – “Building a corporate recruiting plan and brand to attract key talent will become more and more important as companies can no longer go to market and quickly attract candidates for mid-management positions.”2 3. Build robust cross-training programs – supply chain integration extends beyond collaborating organizations to internal units of an organization. More than half of organizations surveyed in the study have little or no cross-training as part of their professional development.

3 Return on Investment: Training and Development Return on Investment; Society for Human Resource Management, www.shrm.org

continued on page 48

The greatest shortage in supply chain talent is in middle management, accounting for 49% of available positions. Some of the reasons for this may lie with insufficient professional development for entry level

An important element to reduce the problems caused by a lack of supply chain talent is to cross-train your workforce. Organizations that are moving too slowly away from silos (stovepipes) are hampered the most. A focus on training only within functional areas, such as manufacturing, distribution procurement, or customer

1 Talent: The Future Supply Chain’s Missing Link – Time to Rethink Strategies?”, Lora Cecere, August 13, 2013

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October 2013

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www.ndtahq.com | 45

Nâ&#x20AC;&#x2122;S CIR RMA CL AI E H C

AAR CORP. + PLUS Agility Defense & Government Services + PLUS American Shipping & Logistics Group + PLUS APL Limited + PLUS Atlas Air Worldwide Holdings + PLUS Avis Budget Group + PLUS Bennett Motor Express, LLC + PLUS Bristol Associates + PLUS CEVA Logistics + PLUS Choice Hotels International + PLUS Echo Global Logistics, Inc. + PLUS FedEx + PLUS Final Mile Logistics + PLUS Hapag-Lloyd USA, LLC + PLUS Innovative Logistics, LLC + PLUS InterContinental Hotels Group Americas + PLUS Landstar System, Inc. + PLUS Leidos + PLUS Liberty Global Logistics-Liberty Maritime + PLUS Maersk Line Limited + PLUS National Air Cargo + PLUS Omni Air International + PLUS Panther Expedited Services, Inc. + PLUS Ports America + PLUS Supreme Group USA, LLC + PLUS TOTE, Inc. + PLUS Universal Truckload Services, Inc. + PLUS UPS + PLUS

A Team Logistics LLC Aeroscraft Best Western International BNSF Railway Cubic Global Tracking Solutions, Inc. DHL Global Forwarding Evergreen International Airlines, Inc.

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Global Aviation Holdings Inc. Hertz Corporation Horizon Lines, LLC International Shipholding Corporation KGL Holding Lockheed Martin

Matson Navigation Company Inc. Norfolk Southern Corporation R & R Trucking Raith-CTS Logistics SkyBitz, Inc. The Pasha Group Union Pacific Railroad

These corporations are a distinctive group of NDTA Members who, through their generous support of the Association, have dedicated themselves to supporting an expansion of NDTA programs to benefit our members and defense transportation preparedness.

Defense Transportation Journal

October 2013

HONOR ROLL

SUSTAINING MEMBERS AND REGIONAL PATRONS

ALL OF THESE FIRMS SUPPORT THE PURPOSES AND OBJECTIVES OF NDTA

SUSTAINING MEMBERS 1-800-PACK-RAT AAT Carriers ABF Freight System, Inc. Accenture ACTCO-Afghanistan Logistics Advantage Rent A Car Air Transport International, LLC Airlines for America AIT Worldwide Logistics, Inc. Alaska Airlines/Alaska Air Cargo Al-Hamd International Container Terminal American Maritime Officers Apex Logistics Group Arven Services, LLC Associated Global System Atlas International Baggett Transportation Company Blue Water Shipping US, Inc. Booz Allen Hamilton Engineering Services, LLC Boyle Transportation, Inc. C.L. Services, Inc. C2 Freight Resources, Inc. Cardinal Transport, Inc. Carlile Transportation Systems Carlson Rezidor Hotel Group CGI Chalich Trucking, Inc. Chamber of Shipping of America Citigroup Coyne Airways Coyote Logistics Crowley Maritime Corp. CRST Logistics, Inc.

REGIONAL PATRONS Acme Truck Line, Inc. AFC Worldwide Express dba R+L Global Logistics Agile Defense, Inc. Alaska Marine Lines Alaska West Express All-Lift Systems, Inc. Allswell Supply Company American Moving & Storage Association American Trucking Associations Amyx Association of American Railroads ATS Specialized, Inc. Benchmarking Partners, Inc. Blkbird, Inc. Boeing Company C5T Corporation CakeBoxx Technologies Cargo Experts Corp. Cargotec USA, Inc. Cavalier Logistics Center for the Commercial Deployment of

CSX Transportation CWT SatoTravel DAMCO DB Schenker Delta Air Lines DHL Express Dollar Thrifty Automotive Group Dynamics Research Corporation Embry Riddle Aeronautical University Enterprise Database Corporation Executive Moving Systems, Inc. Express-1, Inc. Fikes Truck Line FlightSafety International Fluor GE Aviation General Dynamics/American Overseas Marine GeoDecisions Greatwide Truckload Management Green Valley Transportation Corp. Hilton Worldwide Hub Group, Inc. IBM Intermarine, LLC Intermodal Association of North America (IANA) International Longshoremen’s Association (ILA), AFL-CIO International Organization of Masters, Mates & Pilots Interstate International J. B. Hunt Transport, Inc. Kansas City Southern Keystone Shipping Co. Knight Transportation

Krown1 Fzc KU Transportation Research Institute Kuehne + Nagel, Inc. Labelmaster LMI Lockheed Martin Aeronautics M2 Transport Mack Defense Marine Engineers’ Beneficial Association Martin Logistics Incorporated Mayflower Transit McCollister’s Transportation Systems, Inc. Medallion Transport & Logistics, LLC Menlo Worldwide Logistics Mercer Transportation Company National Air Carrier Association National Van Lines, Inc. North Carolina State Ports Authority Ocean Shipholdings, Inc. Ocean Star International, Inc. Omega World Travel Omnitracs, Inc., a Qualcomm company One Network Enterprises, Inc. ORBIS Corporation Overdrive Logistics, Inc. Panalpina Pilot Freight Services PODS Port of Beaumont Port of San Diego Posidon Pratt & Whitney Preferred Systems Solutions, Inc. Prestera Trucking, Inc. Priority Solutions International Priority Worldwide Services

Radiant Logistics Partners LLC Ramar Transportation, Inc. Roadrunner Transportation Systems Rockey’s Moving & Storage, LLC Sammons Trucking SBA Global Logistics Services Seafarers International Union of N.A. AGLIWD (SIU NA) Sealed Air Corporation Sealift, Inc. Secured Land Transport SEKO Southern Air Southwest Airlines Co. SRA International, Inc. Teradata Corporation Textainer Equipment Management (U.S.) Limited The Exchange The Parking Spot TQL Transportation Institute Transportation Intermediaries Assn. (TIA) Transportation Management Services Tri-State Motor Transit Co. (TSMT) Truva International Transportation and Logistics TTX Company Tucker Company Worldwide, Inc. United Airlines United Van Lines, Inc. UTi Aerospace and Defense Group Wagler Integrated Logistics, LLC Winston & Strawn LLP Women In Trucking Association, Inc.

Transportation Technologies (CCDoTT) Ceres Terminals Incorporated CGM-NV a NovaVision Company Chapman Freeborn Airchartering Chassis King, Inc. Colorado Technical University CR Transport & Logistics Dalko Resources, Inc. EADS North America Enterprise Holdings Enterprise Management Systems Erudite Company Estes Forwarding Worldwide, LLC Europcar Car & Truck Rental FlightWorks FMN International, Inc. Fox Rent A Car Guard Transport, Inc. Hanjin Intermodal America, Inc. IdenTrust, Inc. JAS Forwarding K & S Trucking, LLC Kalitta Charters, LLC LMJ International Logistics, LLC

Load Delivered Logistics, LLC Marriott International McLane Advanced Technologies MCR Federal, LLC Mi-Jack Products Military Sealift Command (MSC) Miramar Transportation Morten Beyer & Agnew MOTIONOLOGY, INC. M-Pak Incorporated Naniq Global Logistics LLC National Motor Freight Traffic Association, Inc. NCI Information Systems, Inc. NFI Oakwood Worldwide Overwatch, Inc. (a division of Avalon Risk Management) Owner-Operator Independent Drivers Association Pak Shaheen Freighters (Pvt) Ltd. Patriot Contract Services, LLC Payless Car Rental System, Inc. Philadelphia Regional Port Authority PITT OHIO

Port of Port Arthur Portus Reckart Logistics, Inc. Royal Trucking Company Ryan’s Express Transportation Sea Box, Inc. Seabridge, Inc. Seatac Marine Services Semper Veritas Maritime Security Solutions SkyLink Air and Logistics Support (USA), Inc. Southeast Vocational Alliance SR International Logistics, Inc. Stratos Jet Charters, Inc. TechGuard Security Tennessee Steel Haulers The Cartwright Companies Trailer Transit, Inc. Trans Global Logistics Europe GmbH TRI-STATE Expedited Service, Inc. Triton Systems, Inc. U.S. Bank Utley, Inc. Virginian Suites Arlington YRC Freight www.ndtahq.com | 47

Kent Gourdin

Mayday: The Decline of American Naval Supremacy Mayday: The Decline of American Naval Supremacy, by Seth Cropsey, (Overlook, 2013), ISBN-13: 9781590207895, 376 pp, Hardback, $29.95.

his is a very alarming book. As with other powerful nations throughout history, maritime supremacy has been the key to America’s rise to superpower status and the relative peace of the postwar era. Over the past two decades, however, while Washington has been preoccupied with land wars in the Middle East and targeted drone-centric operations against emerging terrorist threats, the United States Navy’s combat fleet has dwindled to historic lows—the smallest since before World War I. At the same time, rival nations such as China have increased the size of their navies significantly and at an extraordinary rate. Within a matter of years or even months, China

will likely have the ability to deny or substantially curtail the US Navy’s ability to operate in the Pacific and to project power in Asia, which could have drastic consequences for the world economy. As the author notes, the precipitous decline of the US as a great seapower, due in large part to budget cuts, will have profound consequences sooner than we might think. In clear and concise language, Mayday tracks the modern evolution of US maritime strength, where it stands now, and the likely consequences if changes are not made to both the Navy’s size and shape, and to the United States’ strategic understanding of how to combine maritime and continental force. With the ascent of new powers not likely to slow, the best way to secure both peace and prosperity for the world may be for America to reinvest in the same naval power that made her great. (Adapted from the publisher.) DTJ

continued from page 44

In summary, talent is a key to optimizing supply chain performance. Focusing on cross sector training for mid-level management will have the greatest positive impact on the supply chain. Logistics associations including NDTA, CSCMP, APICS, SOLE and ISM are available to guide organizations’ logistics professional development.

– Data entry clerks’ average wage: $9.50/hr. – Five hours per week were spent correcting errors before training. – 20 percent less time correcting errors saves one hour each week, after training. – 40 clerks are employed by an organization. – Cost of training is $5,000.

Notes

SHRM has developed a benefit/cost ration to determine the Return on Investment to the organization on the cost of training: • Benefit/Cost Ratio = Program Benefits/Program Costs • ROI(%) = (Benefit-Cost/ Cost) x 100 Let’s consider the impact of training on data entry clerks

BCR = ($9.50x40x1hr/$5000) = .76 In one week, the organization recovered 76% of its investment through improved productivity. This formula can be applied to cross functional training which would seek to minimize down time during the time supply chain positions are not filled.3 DTJ

DTJ Index of Advertisers APL..............................................C3 ARC.............................................. 29 Atlas International.................... 33 Bennett....................................... 27 Boyle Transportation.................. 6 Budget........................................ 39 Farrell Lines............................... 19

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FedEx...........................................C4 Horizon Lines............................. 13 Innovative Logistics.................. 45 Landstar........................................ 9 Leidos..........................................C2 Maersk Line, Limited.................. 1 Mayflower.................................. 15

Defense Transportation Journal

October 2013

Pasha.......................................... 37 Pilot............................................. 21 Port of San Diego...................... 17 TOTE............................................ 23 United.......................................... 25 Universal.................................... 35 UPS................................................ 2

continued from page 5

of the 18th Air Force. Like the influence of transportation changes on St. Louis, Scott AFB has been heavily impacted by changes to defense transportation. For decades Scott hosted a dedicated aeromedical evacuation fleet of C-9 Nightingales. Although the C-9 fleet was retired in 2003, command and control of global patient movement still resides at Scott AFB. So although many of the changes have been profound, through it all, the spirit lives on. Today the NDTA Scott-St. Louis Chapter involves service members, government civilians, and support contractors from USTRANSCOM, AMC, SDDC, and other commercial professionals in defense transportation. Roughly fifty corporate sponsors support chapter activities—first and foremost the monthly luncheons at Bellecourt Manor in downtown Belleville. In addition to the military commands, the region also boasts many other unique academic and commercial organizations, providing a wealth of compelling speakers. With ready access to all modes of transportation, St. Louis remains home to national and regional distribution centers like the Gateway Commerce Center in Edwardsville, IL and America’s Central Port. Boeing still manufactures aircraft at its St. Louis facilities. The St. Louis Museum of Transportation houses one of the largest collections of transportation vehicles in the world. The chapter maintains active relationships with the Center for Supply Chain Management Studies at St. Louis University, and the Center for Transportation Studies at the University of Missouri, St. Louis. Each summer the annual golf fundraiser raises roughly $15,000 for scholarships and charity. And for the last few years, young artists from the area provided the winning entries for NDTA’s National Transportation Week poster contest. Until recent years, the chapter partnered with AFCEA for the summer Tech Net Mid America Forum. The Tech Net Forum, like many others, has been discontinued. It is with eager anticipation that the chapter looks forward to the NDTA-USTRANSCOM Fall Meeting in October. In addition to the meeting, the region hosts plenty to do and see. With some luck and good fortune, the baseball season may still be active here. To those planning to attend from other locations, we say—Meet Me in St. Louis! DTJ

Steaming jungles, blazing deserts, frozen mountaintops. No matter where the dinner order comes from, we’re the reason MREs are never MIA. For more than 160 years, APL has been working to ensure our service men and women always have what they need to get the job done. Our unparalleled experience in ocean transportation and in-country logistics sets us apart from the competition. APL’s successful, long-standing relationship with the military proves that we have the resources and know-how to deliver when it counts. We won’t let you down, and more importantly, we won’t let down the troops who rely on the supply chain. We pride ourselves on being the mission critical link to success for our military yesterday and today, and we’ll be there for our troops tomorrow. To learn more about how we serve those who serve, visit www.apl.com/usflag.

U.S. Flag Services

We’re not in the military, but we’re proud to serve the U.S. We take our job and yours very seriously. At FedEx, you can count on us for access to networks in more than 220 countries and territories and the flexibility to handle anything that comes your way. And you can trust that there’s pride in everything we do.

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