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Taking Stock

Bringing in the new T

he new year often brings with it changes. Even though it’s February, this is our first issue of 2012, an appropriate time to write about some of the changes at MM&D. The biggest change is that Michael Power stepped down from editing MM&D. Throughout last year, Michael did double duty, handling both MM&D and our sister publication, purchasingb2b. Now he can focus solely on purchasingb2b. Thanks Michael, for all your hard work. Of course, that left a hole here at MM&D, which is where I come in. In my first month as editor, I’ve attended several industry events, including MODEX, and I’ve spoken with key players in the supply chain and logistics fields, but it’s only a start. I’m really looking forward to meeting more of you and getting to know your organizations better. My most important goal this year is to get more of your stories into the magazine. We want to focus on our sweet spot— case studies and success stories.

We want to hear about the creative and innovative solutions you’re employing in your warehouses, your distribution centres and your logistics operations. I’m going to do my best to get out there and visit you, but I hope that you’ll feel free to approach me too. If you see me at an event, please stop me and tell me your story. Please ring me up or drop a message into my inbox. I’d love to hear directly from you. Remember, just as you find value in reading about what your colleagues are doing, they’ll find value in hearing your story. To give you a bit of an incentive to share your tales, MM&D will be awarding free passes for Supply Chain Canada to the five people who submit the best “firefighting” stories. See the ad on page 13 for details. Something else new is our events calendar. We now have a master posting on our website that lists regional, national and international conferences, seminars and meetings of interest to people working in supply chain and logistics. We hope it helps you plan your 2012 schedule. If you’re still organizing an event for later in the year, please let us know about it. The URL for the events listing is: www.canadianmanufacturing.com/?p=53344. I’m very happy to be here with you, bringing you the news you need and the features you’ll want to read.

January/February 2012 | Volume 57 | Number 1

Contents Departments

Columns

Features

3 5 6 6 8 12 12

32 Legal Link Being liable

15 3PL industry overview for 2012

Taking Stock Supply Chain Scan Done Deals Benchmarks Global Focus Movers + Shakers Professional Development Directory

33 Materials Handling Managing electric forktruck fleets 34 Learning Curve Hiring outside talent

16 The 2012 3PL Capability Guide Find your outsourcing resource. Use our Canadian third-party logistics capability guide to find the company that meets your transportation needs. 28 Dock Safety Tips and technology to help avoid accidents 31 Auto-ID product showcase

MM&D | January/February 2012

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Supply Chain Scan

Inside | M + S, page 12 www.mmdonline.com PubliShEr/EDitOr-in-ChiEf: Emily Atkins (416) 510-5130 EAtkins@bizinfogroup.ca

MODEX 2012

EDitOr: Carolyn Gruske (416) 442-5600 x3265 CGruske@mmdonline.com

Show wraps up with look at global supply chain and logistics

Art DirECtOr: Stewart thomas (416) 442-5600 x3212 SThomas@bizinfogroup.ca

By Carolyn Gruske

SAlES MAnAGEr: Dorothy Jakovina (416) 510-6899 DJakovina@bizinfogroup.ca SEniOr ACCOunt MAnAGEr: Catherine Martineau (647) 988-5559 CMartineau@bizinfogroup.ca PrODuCtiOn MAnAGEr: Cathy li (416) 510-5150 CLi@bizinfogroup.ca CirCulAtiOn MAnAGEr: barbara Adelt (416) 442-5600 x3546 BAdelt@bizinfogroup.ca

biG MAGAzinES lP Vice-President of Canadian Publishing • Alex Papanou President of Business Information Group • Bruce Creighton Executive Publisher • Tim Dimopoulos hOw tO rEACh uS: MM&D (Materials Management & Distribution), established in 1956, is published 6 times a year by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd. 80 Valleybrook Drive, North York, ON, M3B 2S9; Tel: (416) 442-5600; Fax (416) 510-5140. EDitOriAl AnD ADvErtiSinG OffiCES: 80 Valleybrook Drive, North York, ON, M3B 2S9; Tel: (416) 442-5600; Fax (416) 510-5140. SubSCribEr SErviCES: To subscribe, renew your subscription or to change your address or information, contact us at 416-442-5600 or 1-800-387-0273 ext. 3258. SubSCriPtiOn PriCE PEr YEAr: Canada $82.95 per year, Outside Canada $122.95 US per year. Single copy price: Canada $15.00, Outside Canada $32.65 CDN MM&D is published 6 times per year except for occasional combined, expanded or premium issues, which count as two subscription issues. ©Contents of this publication are protected by copyright and must not be reprinted in whole or in part without permission of the publisher. DiSClAiMEr: This publication is for informational purposes only. The content and “expert” advice presented are not intended as a substitute for informed professional engineering advice. You should not act on information contained in this publication without seeking specific advice from qualified engineering professionals. MM&D accepts no responsibility or liability for claims made for any product or service reported or advertised in this issue. MM&D receives unsolicited materials, (including letters to the editor, press releases, promotional items and images) from time to time. MM&D, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort. PrivACY nOtiCE: From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-800-668-2374 Fax: 416-442-2191 Email: privacyofficer@businessinformationgroup.ca Mail to: Privacy Office, 80 Valleybrook Drive, North York, ON M3B 2S9 Printed in Canada Publications Mail Agreement #40069240, ISSN: 0025-5343. We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund (CPF) for our publishing activities. MM&D is indexed in the Canadian Magazine Index by Micromedia Limited. Back copies are available in microform from Macromedia Ltd., 158 Pearl St., Toronto, ON M5H 1L3

odex 2012 used the tagline of “where supply chain solutions are moving,” and the closing keynote addressed exactly that issue. The speaker, Donald Ratliff, executive director of the Georgia Tech Supply Chain & Logistics Institute, briefed the audience in Atlanta about global trends in logistics and the supply chain. Among the biggest revelations is that trade between Asia and North America isn’t growing. “We think about Asia exporting to us, and they do export a lot of stuff to us, but if you look at where your trade growth is, the biggest single area of trade growth is Asia-to-Asia. If you look at Asia-to-North America, it had growth from 2002 to 2008, but it is reasonably flat from that point on. “Things are changing some in terms of trade. I don’t know if we really understand it, but we see that it’s happening.” Ratliff attributes intra-regional trade growth (such as Asia-to-Asia) as down to one single factor: convenient, easy and dependable logistics. Along with changing trading patterns, Ratliff spoke about how the globalization of logistics is affecting inventories in the supply chain. He noted that in general, it hasn’t changed warehousing operations all that much, but it has changed the way inventories are handled. “Inventory used to be only in warehouses and retail locations, or most of it was, now there’s inventory out there everywhere, and a lot of people have a lot more inventory in the chain than they have in locations where they’re thinking about planning for inventory. Most of this inventory is not planned.” This type of inventory presents a problem. “All of our inventory models are based on what we put in warehouses and what we put in stores. This is planned inventory. But if you look, there is all this in-transit inventory which is just out there floating around, and what is worse, there is a bunch of stuff that is waiting for something [such as goods waiting at a port for a ship]. Generally you can track it one piece at a time, but if you say ‘how much stuff have I got waiting at the Port of Savannah?’ not many people can tell you that.” Waiting for ships is something that might be happening more and more in the future, as larger ships, built with the expanded Panama Canal in mind, will require more and more stops to take on more and more cargo. Their size will also make them harder to get into most ports. (Ports will be required to make expansions, including improvements to intermodal connections, which in turn will promote greater cargo volumes.) In contrast, he mentioned that Maersk Line, is moving to a model of guaranteed, daily service. “Bigger ships and more service are not compatible. One of those ideas is wrong, and whoever is most wrong is going to be out of the shipping business.”

MM&D | January/February 2012

Supply Chain Scan Benchmarks Industrial Scientific Canada ULC has some new warehouse space. The company has moved to a larger location in Sherwood Park, Alberta. The new building is double the size of its previous facility. It has a larger inventory area, a bigger training room and more space for the technicians of the iNet Fulfillment team. Headquartered in Pittsburg, Pennsylvania, Industrial Scientific provides gas detection services.

Nissan Forklift Corp has achieved a production milestone. In 2011, the company produced its 200,000th forklift in its Marengo, Illinois plant. The forklift was a Platinum II 3,500-pound Cushion IC model. Nissan says it took 14 years to produce its first 100,000 units and only about half that time to reach the second 100,000. The plant makes both Nissan and Barrett branded products.

Marine Atlantic raises fees By Carolyn Gruske

t will now cost truckers more to make the ferry crossing from Newfoundland and Labrador to Nova Scotia. Based in St John’s, Newfoundland, Marine Atlantic Inc operates ferries that carry passengers, cars and cargo trucks between the two provinces. The federal Crown corporation increased all fares, including commercial ones. A four percent increase was applied to the regular crossing rate. Additionally, the trailer drop fee was increased $50 from $210 to $260. The fuel surcharge rate didn’t increase from last summer’s rate. Truckers who use the ferry service are upset by the increase. Executive director of the Atlantic Provinces Trucking Association, Jean-Marc Picard, issued a statement calling on the federal government to take action. “Commercial carriers are Marine Atlantic’s largest customers and without us they would not be able to sustain having a ferry service to serve the population in Newfoundland. Now they are making us pay for their mistakes and inadequacies and the Federal Government is supporting them. The trucking industry cannot sustain such increases nor can the customers or Newfoundlanders.” Picard said at least part of the increase—the four percent—was expected. It was just the trailer drop increase that caught his members off-guard. “That’s the one we care about.” He did say that with the improvements Marine Atlantic made to the loading docks, the upgraded computer systems and the new vessels, commercial traffic “at the loading docks flows much better”. Last year Marine Atlantic transported more commercial vehicles than it ever had before, said Tara Laing, communications manager for Marine Atlantic. “For the first time in our history, we transported 100,000 commercial units in a 12-month period. It’s pretty busy. Of course, the economy in Newfoundland and Labrador continues to grow and so much comes in by truck that the requirement was for bigger, larger ships for us.” Marine Atlantic operates a very new fleet. Two three-year-old vessels were completely overhauled, reconfigured and put into service in 2011. Another ferry underwent a huge refit last winter, and the fourth vessel was brought into service by Marine Atlantic in 2009. Laing said improvements to both the fleet and the facilities have made a real difference for commercial operators. “In summer 2010, they were seeing an average 18-hour wait. Now, they’re looking somewhere in the vicinity of a seven- or eight-hour wait. Our vessels are so large, they are able to get on the next available crossing most of the time.”

Done Deals Tec Packaging Group owners Mike Prencipe and Thierry Cecilia have launched a 3PL company. Mississauga, Ontariobased JAG Freight Lines Ltd (JAG), offers LTL, FTL, intermodal, expedited and other services across North America. The Komyo Logistics division of Komyo America Company Inc is buying Red Prairie’s On-Demand Warehouse software solution. Cypress, California-based Komyo, a 3PL supplier, plans to use the software perform electronic tracking and online reporting. Komyo’s customers will have access to real-time inventory and status updates with the new software. Cambridge, Ontario-based Rolmaster Conveyors Inc has been chosen to provide sales, marketing, promotions, and technical support for LEWCO Inc out of Sandusky, Ohio. Rolmaster will also handle the order management for LEWCO’s line of standard- and custom-powered and gravity conveyor products. Nashville Wire Products Manufacturing Co and AWP Industries Inc of Frankfort, Kentucky, are now one company. AWP produces a number of products including wire decking for pallet rack and wire containers. Tennessee-based Nashville Wire manufactures a range of material handling products including wire decking, shelving and containers and column guards.

MM&D | January/February 2012

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Supply Chain Scan

DND containers pilfered leaving Afghanistan By Carolyn Gruske In January, 11 containers out of 168 returned to Canada by the Canadian Forces in Afghanistan had their contents stolen. “Some sea containers have arrived in Canada missing equipment, all of which is non-critical, listed on the container manifest. In some instances, the missing equipment was replaced by rocks and other weight so the loss would not be noticed until the containers were opened,” said Canadian Operational Support Command public affairs officer, Lt-Cmdr John Nethercott. The statement that rocks were substituted for supplies raises a number of questions, not just about national security—if rocks could be substituted, theoretically so could explosives or even drugs— but about the shipping process itself, especially since the freight forwarder insists that all was well with the containers. Alda Rodrigues, president of Montreal-based AJ Maritime Inc says she has been shipping cargo for the Canadian military for 22 years, and has been working with the Afghanistan operation for six years. Although she has a strong relationship with the Department of National Defence (DND), she takes issue with the statement about the lost cargo. “It’s very difficult. They were all sealed. All the seals were still there. No container is put onboard a vessel without the appropriate seal on.” Rodrigues says the goods she moves fall into the category of “sustainment cargo,” and include items like lumber, field rations, gym equipment, shoes and packaged food for Tim Horton’s. She has never forwarded ammunition. Her containers are transported on chartered ships from Port of Montreal to Pakistan and then by road convoy to Afghanistan. When cargo is to be shipped back to Canada, containers are picked up at the airfield in Kandahar and delivered to Canadian bases back home. According to Nethercott, the Canadian Forces doesn’t ship sensitive cargo such as uniforms or ammunition over land. It is moved by air. But cargo that falls in a slightly less critical category does move by sea and ground. At press time, there were still 446 containers sitting in an undisclosed loca-

tion in Afghanistan and 18 more in transit. At this point, it’s still unclear as to how or where the pilfering and substitution took place. Col (ret) Michel Drapeau is a lawyer and a professor of law, but he also spent 34 years as a logistics officer in the Forces. He says the packing and documenting would have likely been done by military personnel and courier logistics officers. As the containers traveled en route, they would have been accompanied by security, either from the Forces itself or, more likely, private security contractors. Drapeau says if he were in charge of the investigation, he’d look at the entire process. “If the seal is on it, and if I were investigating it, I would not be concerned with what happened to the shipment in transit, unless those seals can be duplicated, or there is some way you can have access to the container without breaking the seal. If it was sealed properly, you’d better go back to the point of departure and then you’ve got ask, ‘what happened here?’” While it’s not involved in investigating the theft, the Canadian Border Services Agency (CBSA) was called in to help screen inbound containers. Luc Labelle, information officer for CBSA, reports “CBSA is working in partnership with DND to ensure that the containers flagged as suspicious do not pose a threat to Canadians. No threat has been found. The CBSA will continue to work with DND to risk assess future shipments.”

Global Focus German logistics firm buys new software Privately owned logistics firm Senator International has signed a deal to implement ediEnterprise software from UK-based CargoWise. Headquartered in Hamburg, Germany, Senator also has offices in Switzerland, the Netherlands, the UK, the US, Latin America and Asia. It offers air and sea cargo services, logistics warehousing, fourth party logistics and packaging. Senator is looking for the cloud-based software to support localization and to help promote integration between international offices. Smart Software makes Latin American sales Volvo Parts in Mexico and retail hardware store Preca in Venezuela have each purchased forecasting, planning and inventory optimization software from Belmont, Massachusetts-based Smart Software Inc. The purchases

were made from the reseller Grupo de Outsourcing Tecnologica SA (GOTSA). Volvo is using the software in its Toluca, Mexico distribution centre. Preca purchased the software as the initial step in a supply chain optimization project. Panalpina enters Russia The Panalpina Group has opened a logistics centre on the outskirts of Moscow in the Krekshino logistics park. The facility is 6,000sqm, of which 2,500sqm are dedicated to cross-docking activities and 1,500sqm to value-added logistics services (VAS). It offers almost 8,000 pallet locations and 15 inbound and outbound docks. The company expects to achieve security, environmental and occupational health and safety certifications for the centre by the end of the year.

MM&D | January/February 2012

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Supply Chain Scan

2011 port report

was up over nine percent in 2011. The total of 28 million tonnes of cargo set a handling record for the port.

By MM&D staff

Toronto The Port of Toronto had a busy year moving approximately 1.65 million tonnes of cargo in 2011, which is up about seven percent from 2010. Its top 2011 bulk cargo was salt, the tonnage of which increased about 60 percent from 2010 (due to the snowy winter last year). The total for bulk cargo increased by eight percent from 2010. The increase in salt shipments offset the slight reduction in sugar movements in 2011.

Halifax The Port of Halifax invested over $100 million in projects at the Richmond and South End terminals and $8 million in other projects including a grain elevator, breakbulk and container terminals. Overall, port tonnage for 2011 was down by 0.3 percent compared to 2010. Measured in metric tonnes, containerized cargo experienced a 5.3 percent drop in 2011. Total containerized throughput for 2011 was 410,649 TEUs (a drop of 5.7 percent in TEUs). Breakbulk cargo also fell by 11.1 percent. Roll-on/roll-off cargo also declined, falling 1.3 percent. Bulk cargo grew by 3.1 percent. Quebec It was a strong year for the Quebec Port Authority, as the port logged record tonnage with close to 29 million tonnes of cargo handled. This represents an 18 percent increase over 2010. There are plans to spend nearly $50 million in 2012. This is the largest investment in the port since the construction of the Beauport sector in the 1960s. Currently the port is completing a number of shortand middle-term infrastructure projects. Montreal The Port of Montreal experienced a very strong year. Preliminary figures indicate the total volume of cargo handled at the Port, all traffic combined,

Vancouver Port Metro Vancouver reported a strong year in 2011. It handled 122.5 million tonnes of cargo, a 3.4 percent increase over 2010. Both foreign and domestic shipments were up. Total foreign tonnage increased 2.5 percent to 95.6 million tonnes and domestic tonnage was up seven percent to 26.9 million tonnes. Auto volumes were down 22 percent. Container traffic at Port Metro Vancouver kept pace with a record-setting 2010, with volumes flat at 2.5 million TEUs, supported by a six percent increase in containerized exports. Prince Rupert The Prince Rupert Port Authority reports container throughput was up in 2011. It handled 410,469 total TEUs compared with 343,366 in 2010, which was a 20 percent increase. While loaded containers grew by 30 percent over 2010, empties fell by 11 percent from 86,748 in 2010 to 76,935 in 2011. In terms of tonnage, the Fairview terminal handled 20 percent more foreign cargo in 2011. Prince Rupert Grain had an overall increase of 17 percent, although alfalfa pellets fell 100 percent. Ridley terminal saw an total gain of 16 percent despite a loss of 92 percent of its wood pellet and 30 percent of is petroleum coke cargo. The Alaska Marine Highway terminal handled 1,883 tonnes of general cargo, up two percent from 2010, while the CN Rail terminal moved 38,166 tonnes of chemicals and liquefied petroleum gas, down 15 percent from 2010. MM&D

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Supply Chain Scan

Movers + Shakers

Michael Schuler

Michael Schuler has joined Coppell, Texas-based Product Support Services Inc as executive vice-president of sales and marketing. His responsibilities will include enhancing service program development, overseeing sales and marketing, and directing future business growth.

Elections were held to pick the Montreal CITT Council for 2012. Valerie McSween (vice-president of Mactrans Logistics Inc) is the new chair. Richard Gaudette (business development director for Metro Canada Logistics) is vice-chair. Victor Charbonneau is treasurer. Daniel Vendette (senior manager at West Monroe Partners) is events chair. Veronique Morey (senior logistics coordinator for CN Supply Chain Solutions) is secretary. Additionally, eight directors at large were voted

in. They are: Tracey Raimondo (vice-president logistics, Normandin Transit), Michel Tanguay (president, Savtan Inc), Michel Bauer (president, Varmelous Industries), Michael Loughman (instructor, Champlain College), Stéphanie Croteau (director of logistics/customer Integration, Groupe Guilbault), Gianfranco Silvaggio (logistics analyst, L’Oreal Canada), Serge Faucher (executive director, Dupont Enterprises) and Jean-Pierre Castel (instructor, Champlain College) Henry Hicks has been appointed as industry vice-president, supply chain, at Bedford, Massachusetts-based Progress Software Corp. Hicks’s new duties will include developing market strategy and solution development for the company’s global supply chain practice.

Henry Hicks

Professional Development Directory

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MM&D | January/February 2012 3/9/2011 3:42:41 PM

Professional Development Directory Advertorial

Professional development: A necessity – not a question In today’s turbulent economy and tough job market, it’s important to take every opportunity to develop your professional skills and those of your team. Keeping up-to-date on the latest best practices and industry trends is a great way to maintain your competitive edge. Whether you’re in a junior position, middle management or in the C-suite, you’ll need to upgrade your skills and broaden your perspectives through practical knowledge. Demonstrate that you are head and shoulders above the rest by investing in professional development.

Formally

Whether by webinar, in-house training or outside seminars, training courses are a necessity to keep current. Studying and attending courses requires a commitment to yourself and your professional future that employers respect and reward. Laws, policies and best practices are ever evolving, making some courses and programs completed as early as last year outdated. By investing in yourself, you reap the rewards and stay ahead of the curve.

For those who want to reach the top of their game there are professional accreditations to work towards, which reward rigorous training and dedication with the highest credentials in the professional landscape. A professional designation also means a lifelong commitment to a code of ethics and continuous learning.

Informally

With tight deadlines and even tighter budgets, not everyone can afford the time and money to attend formal training sessions. In this case, it’s even more important to go above and beyond and seek out creative opportunities for growth. This can include attending industry events, networking evenings and being an active participant in professional social networks, such as LinkedIn. Giving back to your professional community by sharing your expertise is a valuable asset to your peers and puts you in the spotlight. Make a strategic career move and visit www.oipmac.ca today to discover how the Ontario Institute of PMAC and the Certified Supply Chain Management Professional Designation can enhance your training and put you on the path to success.

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Learn more at oipmac.ca or 1-877-726-6968 Win one of five free passes to the Supply Chain Canada conference and get published in MM&D. Send us your supply chain success story. Check the link below for details on getting your Firefighter story published. www.canadianmanufacturing.com/?p=53464

MM&D | January/February 2012

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3PL Capability Guide

Existential angst 3PL companies and customers facing uncertainties By Carolyn Gruske

he third-party logistics industry is suffering from an identity crisis this year. Service providers are facing changes in the types of services customers demand and challenges in how to communicate with them. Simultaneously, 3PLs are trying to figure out how to best deploy new and existing resources to support evolving business models. Numbers and data According to International Warehouse and Logistics Association (IWLA) Canada Council executive director David Long, “the industry just doesn’t know enough about itself”. The association has embarked on a data collection project it hopes will shed accurate light on 3PL statistics, and avoid the estimates typically used when speaking about the industry. “They do extrapolations. There may be some economist in the US who says X percent of the GNP is supply chain and logistics, so we take ten percent of that number and call it ours. Then somebody else says, ‘that’s not true. We’re a completely different logistics operation. We’re thin ribbons of populations.’ So this is getting at Canadian data realistically.” The project will look at six key areas: revenue of the Canadian 3PL market, revenue of specific 3PL services, average size of deals or contracts, length of the contract, revenue per square foot of warehouse operations, and 3PL revenue by sector. Growth and contraction Many 3PL companies are finding themselves torn in opposing directions. Mario La Barbera, president of Pival International Inc, says the dichotomy between spending money to expand and keeping costs low by focusing on the current, core business models is an issue both 3PL providers and their customers will need to examine this year. “We’re going to see a cautious approach to growth, which many companies are planning, but with a certain nervousness. We’re fresh off a serious recession. There is pressure to grow, but there is still a huge focus on costs. I think it will have to be a watershed year for companies to decide how much they want to invest in their growth. And if they want quality

MM&D | January/February 2012

services, they’ll have to approach their supply chain a little differently.” Even if 3PL companies decide they want to expand and grow their service offerings, it will be difficult. First they’ll have to hire people, and Axsun Group president Steve Ramescu says this won’t be easy or cheap. “The biggest challenge is a lack of qualified people in the transportation offices. That’s not just us. That’s any transportation company that is growing. The reality is through the recession a lot of people got laid off. A lot of people are gone. A lot of people re-oriented themselves. Over the last ten years, you’ve constantly heard about the driver shortage. Well, there is a huge shortage of qualified transportation people. As the world becomes more global in trading, there are lots of regulations and packing material rules that you have to be cognizant of when you’re handling people’s cargo. There is liability on all fronts. “We have to understand that transportation, through the ’90s and early 2000s, has been not the most lucrative market to be in. You hear about bankruptcies all the time, from trucking to airlines. It’s always a cut-throat business and has always had that stigma of nickel-and-diming. So for the kids coming up, transportation is not what they’re looking for.” Keeping up with the technological times According to Ramescu, one of the keys to recruiting young employees is giving them access to the latest information technology and telling them they have free rein to make business improvements using that technology (which in Axsun’s case happens to be SAP, but could be any fully integrated system). But it’s not just future employees who want to use the latest software and computer hardware. It’s also customers. Jim Ramsay, vice-president international freight forwarding for UPS Canada, says customers see the potential technology offers and are starting to make more demands of 3PLs. “We keep hearing that customers want to reduce the number of companies they’re dealing with, and they’re looking for companies that can handle both the small stuff and the big stuff. They tell us, ‘keep it simple for the supply chain, and let us know when the product is in transit.’” Of course while customers may call for simplicity, their supply chains are becoming more geographically complex. Ramsay says he’s seeing a lot of clients looking for ways to get into new markets, especially the BRIC (Brazil, Russia, India, China) countries, but also into Viet Nam and into South America. LaBarbera is also seeing growing international demand. This means there are growing opportunities to enter into new contracts, but it’s also forcing 3PLs to diversify and to re-invent what services they offer to the market. For example, he says Pival is seeing a “lot more LTL and parcel shipments than ever before, which makes the work more complex.” Of course, 3PL professionals thrive on the complexities and the challenges of the industry. “In this business it’s never a dull moment,” Ramsay says. MM&D For a customer’s view of the changing 3PL world, visit www.canadianmanufacturing.com/?p=54357

3PL Capability Guide MM&d’s 10th annual third-party logistics (3pL) capability guide and directory. Every year, we compile this list to provide you with information about 3PLs operating in Canada. These companies exist to provide and/or arrange interconnected logistics services for shipper clients. They take on the work so you don’t have to. The appeal of outsourcing continues to grow. As the economy sails through uneasy waters, many shippers are seeking ways to offset risk and remain focused on core competencies. They’re turning to 3PLs for help.

C: CAnADA n: nORTH AMERICA G: GLOBAL

asset-based Legend A: ASSET-BASED n: nOn ASSET-BASED An: BOTH

COMpany naMe

Overview

3PL Links Inc. G n 3PLogix G An 80/20 Logistics C n A.G.O. Transportation Inc. G A.n. Deringer Inc. G n Accuristix n n • Affiliated Customs Brokers Ltd. G • Agility G All-Can Distribution Centres Inc G A All-Connect Logistical Services Inc. Cn A Alliance Shippers Inc. n A • APL Logistics G n ASL Distribution Services Ltd. n A • axsun inc. Cn a BCG Logistics Inc. n BellvilleRodair International G n Bison Transport Inc. n An Bolloré G An C & e express inc. C a C.H. Robinson Worldwide, Inc. G n C.V. Logistics n n C.W. Henderson Transportation A Camron Consulting Inc. G Canada Cartage System n A Canadian Pacific Logistics Solutions n A • Caterpillar Logistics Services, Inc. G n • Cavalier Transportation Services Inc. n A Celadon Canada n A • CEVA Logistics G n • Challenger Logistics G A • ChemLogix LLC G Churchill Logistics Inc. Cn A Cn Cn A Confederation Freezers C Customized Global Logistics G A Damco G n • Dart Logistics n n • Day & Ross Inc. n A Delmar International Inc. G n DHL Global Forwarding G n • Dominion Warehousing & Distribution Services Ltd. Cn A • DTA Services Ltd. G EGI Transportation Services n n EveryPoint Logistics Solutions nA nA Exel n n • Expeditors Canada Inc. G n • Fargo Transportation Services Limited G n FedEx Trade networks Transport & Brokerage (Canada) Inc. G n First Choice Logistics - Div. of Thompson Ahern & Co. Ltd. n n

Markets served

transpOrtatiOn

CustOMs

Areas Se rved A sset-Ba sed ISO Cert ified Distribu tors Manufa cturing Retail Service I ndustrie s Air Bulk Dedicate d Contr act Carr Drivers iage Expedite d Fleet Ma na g e m e nt Hazardo us Mate rials High-Va lue Intermo dal Leasing LTL Ocean Rail Seaway Small Pa ck ag e TL ACE ACI C-TPAT FAST Licensed Custom s Brokers PIP

areas served Legend

While in the past shippers have tended to hire 3PLs for principally tactical activities, many now recognize the value of deeper partnerships. Indeed, many feel that more strategic relationships with 3PLs would help them cut total landed and distributed costs. In order to fully capitalize on this opportunity, you need to make sure you’re trusting your business to the right 3PL(s). This guide is meant to help you identify outsourcing partners with the

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MM&D | January/February 2012

3PL Capability Guide

capabilities to meet your specific requirements. Perhaps you need a firm that specializes in cross-border activity, or temperature-controlled shipments, or cross-docking—or all three. No matter how specific your needs, we’re willing to bet you’ll find at least one match in these pages. To use this guide, browse through the 3PLs listed alphabetically below. You’ll find the capabilities of each company indicated by bullets under the appropriate category headings.

Warehousing

speciaL services

technoLogy

Carrier S election Cross-Bo rder Forw arding Inbound Logistic s Integrate d Lo Inventory gistics M a na g e ment Just-In-T ime Process Planning Product Lifecycle M a na g e Project C ment argo Service Parts Lo gistics Shipmen t Trackin g Tempera ture Con trolled Vendor M a na g e ment Wareho using Consolid ation/D econsoli Cross-D dation ocking Distribu tion Cen tre Man Fulfillme ag e m e n nt t Location Services Pick/Pac k Sub-A ssembly Vendor M a na g e d Invento Consult ry ing Delivery -To-Hom e Delivery -To-Store Finance H u ma n Resourc es Import/E xport/C ustoms Insuranc e Marketi ng/Cust omer Se Paymen rvice t Audit/P rocessin Quality g A ssuran ce Regulato ry Comp liance Reverse Logistic s Security Services Vehicle Mainten ance Advance Shippin g Notice D o cu m e ntation ED I Real-Tim e Invento ry Visibil RFID Ca ity pable Satellite / Wireless Commu Transpo nication rtation M a na g e m e Wareho nt Syste use Man ms ag e m e n Web-Ba t System sed Ship s ment Tra cking

Logistics

An alphabetized list of contact information for the firms starts on page 22. If you have any comments about this guide, or would like to apply to be included in next year’s edition, please contact MM&D’s publisher and editor-in-chief, Emily Atkins, at eatkins@bizinfogroup.ca.

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3PL Capability Guide

areas served Legend

Overview

asset-based Legend A: ASSET-BASED n: nOn ASSET-BASED An: BOTH

COMpany naMe

Markets served

transpOrtatiOn

CustOMs

C: CAnADA n: nORTH AMERICA G: GLOBAL

First Team Transport C A Fort Storage Warehousing & Distribution C A Fraser Direct Logistics Ltd. G A Freightmate Inc. G n Georgetown Terminal Warehouses C Hub Group Canada n A Huron Services Group, CPC Logistics Company n n Hyphen, member of the Calyx Transportation Group Inc. n n I to I Logistics G A Indis Inc. n ISG Transportation Inc. G An IT Logistics Inc. G A J.D. Smith n A J.P. Enterprises - Logistics Corp. n A JAG Freight Lines QuarterPageAd_2012Jan.pdf 1 1/30/2012 9:36:01n AMnA Katoen natie Canada G A

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Value driven solutions for your business. C

CMY

It’s not just knowing where you’re going, but the best way to get there that drives success. Companies committed to outperforming their competition turn to Wheels Group (TSX-V: WGI). From moving freight throughout North America and around the world to supply chain optimization and informationbased decision support, Wheels Group provides value driven solutions for your business. With access to intermodal, highway and cross border transportation, warehousing, and business logistics services, Wheels Group gets you where you need to be. In today’s global marketplace, outperforming the competition requires agility. Wheels Group continually develops better supply chain solutions to help your business achieve the flexibility it needs to respond quickly to new challenges and opportunities. How? Through exceptional people, proven processes, advanced technology, commitment to continuous innovation and our drive to help your business become more competitive.

Wheels Group & Wheels International 5090 Orbitor Drive, Unit 1, Mississauga, ON L4W 5B5

Tel: 905.602.2700 or 800.663.6331 (toll-free) Fax: 905.602.2799 Email: info@wheelsgroup.com

MM&D | January/February 2012

3PL Capability Guide

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speciaL services

technoLogy

Logistics

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Exceeding Expectations Pival takes a disciplined approach to developing customized solutions for the most demanding clients. Our track record demonstrates that we deliver what we promise without errors or excuses. That promise of delivery extends to our latest service offering as well. Now we can meet customers’ same-day, time-critical shipment needs through our newest division, Pival Expedite. We want you to benefit from all of the expertise and experience that we’ve earned serving a wide variety of manufacturers, including the Canadian OEM automotive parts and assembly industry. As OEM supply chain partners, we make it a point to share our skills and knowledge about RF capabilities, systems and best practices with our customers. Over the past decade, the Pival team has proven, to not only our OEM partners, but also to some of Canada’s largest retailers and distributors why we are their preferred Partners in Value Added Logistics (PIVAL). This description represents not just our company’s name but epitomizes our company’s culture. Give us a call and we will put our team and assets to work and provide a dedicated supply chain solution that exceeds your expectations.

www.pival.com 1-877-424-1623

MM&D | January/February 2012

3PL Capability Guide

areas served Legend

Overview

asset-based Legend A: ASSET-BASED n: nOn ASSET-BASED An: BOTH

COMpany naMe

Kelron Logistics Kenco Logistic Services Kintetsu World Express Canada Koch Transport Limited kuehne+nagel Ltd. Lakeside Logistics Livingston International Inc. Logisticworks Lynden International Logistics Co. Maisliner Transport Manitoulin Transport McKenna Logistics Centres Menlo worldwide Logistics Metro Retail Supply Chain Solutions Metro Supply Chain Group Meyers Transport/MorTrans Inc/Mosaic Logistics Midland Transport Milgram & Company Ltd. MSM Transportation Group MTE Logistix Group of Companies nAL Worldwide national Logistics Services Inc. nYK Logistics OPTVIA Logistics Inc. Panalpina Penske Logistics PFSweb Canada pival international Polaris Global Logistics Inc. Positive Fulfillment Services Ltd. Professional Distribution Services ProMiles Canada Inc. Propulson + Quik X Logistics Remco Forwarding Ltd. ReTrans Canada ryder Canada Saddle Creek Corporation Sameday Worldwide Schenker of Canada Limited Schneider national Carriers Inc. SCI Group Inc. sdv Service Freight Systems & Warehousing SGT 2000 Inc. Sherway Group SLH Transport Inc. SSI Schaefer STI Stonegate Logistics Sylvan Distribution Sylvite Transportation Group Synergex Logistics Tandet Dedicated Logistics Thomson Terminals Limited (Thomson Group of Cos.) Total Logistics Control Trailcon Leasing Inc. Trans-Plus Logistics Inc.

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transpOrtatiOn

CustOMs

C: CAnADA n: nORTH AMERICA G: GLOBAL

n n n G • n A g na • n n Cn n • n n C G An G An • G A g n G An C n n A n X G G A • C n n n • C A G A • G n G n • G C C a • n A • G A n A n n G nA G A Cn An G n g a n A • G A G n • Cn An • n n g n An n A C An n A • Cn Cn A n n n G n n n n n

A nA A A A A An

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3PL Capability Guide

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MM&D | January/February 2012

•

3PL Capability Guide

areas served Legend

Overview

asset-based Legend A: ASSET-BASED n: nOn ASSET-BASED An: BOTH

COMpany naMe

TransX Group of Companies tri-Line Carrier Lp Trigistix Warehousing and Distribution TST Overland Express ups Canada UTI-Unigistix Versacold Logistics Services Vitran Supply Chain Western Canada Express / Apex Motor Express wheels group inc. XCD Logistics Solutions Ltd. XTL Logistics Inc. YRC Reimer 3PL Links Inc. Woodbridge, On 905-850-9002 wgrossi@3pllinks.com www.3pllinks.com 3PLogix Vancouver, BC 604-315-7186 dmalinowski@sylvandc3.com 80/20 Logistics Burlington, On 905-875-8020 rjackson@8020logistics.com www.8020logistics.com A.G.O. Transportation Inc. Montréal, QC 514-631-6663 ago@agotrans.com www.actionago.com A.N. Deringer Inc. St. Albans, VT 802-524-8110 marketing@anderinger.com www.anderinger.com Accuristix Oakville, On 905-829-9927 marketing@logistics.ca www.logistics.ca Affiliated Customs Brokers Ltd. Montréal, QC 514-288-1211 affiliated@affiliated.ca www.affiliated.ca Agility Mississauga, On 905-612-7561 mshum@agilitylogistics.com www.agilitylogistics.com All-Can Distribution Centres Inc. Belleville, On 613-966-0796 kellyn@allcandcs.com www.allcan3PL.com

Markets served

transpOrtatiOn

CustOMs

C: CAnADA n: nORTH AMERICA G: GLOBAL

n A n an n A Cn A g an G n G n A C A g n n n n An G A

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All-Connect Logistical Services Inc. Oakville, On 905-847-6555 customerservice@allconnect.ca www.allconnect.ca Alliance Shippers Inc. Mississauga, On 905-568-2006 kwinters@alliance.com www.alliance.com APL Logistics Etobicoke, On 866-896-2005 inquiries@apllogistics.com www.apllogistics.com

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Bison Transport Inc. Winnipeg, MB 204-833-0131 marketing@bisontransport.com www.bisontransport.com Bolloré Mississauga, on 905-677 9022, Ext. 227

C & E Express Inc. Brampton, On 905-495-7934 marketing@ceexpress.ca www.caeexpress.ca

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Customized Global Logistics Burlington, On 905-319-3449 gtaylor@cglogistics.com www.cglogistics.com

Cavalier Transportation Services Inc. Bolton, On 905-857-6981 bledson@cavalier.ca www.cavalier.ca

Damco Madison, nJ 973-514-5126 mark.byrne@damco.com www.damco.com

Celadon Canada Kitchener, On 800-265-6467 ckemp@celadoncanada.com www.celadontrucking.com

ASL Distribution Services Ltd. Oakville, On 905-829-5141 khammel@asldistribution.com www.asldistribution.com

C.V. Logistics Rosemere, QC 450-965-8251 derekvincent@cvlog.com www.cvlog.com

CEVA Logistics Jacksonville, FL 904-928-1400 julie.palus@cevalogistics.com www.cevalogistics.com

C.W. Henderson Transportation Etobicoke, On 416-674-5826 dhardy@cwhenderson.ca www.cwhenderson.ca

Challenger Logistics Cambridge, On 519-653-6226 jamesg@challenger.com www.challenger.com

Camron Consulting Inc. Brampton, On 416-845-5716 tom@camronconsulting.com

ChemLogix LLC Blue Bell, PA 215-461-3828 www.chemlogix.com

Canada Cartage System Mississauga, On 905-564-2115 bmartin@canadacartage.com www.canadacartage.com

Churchill Logistics Inc. London, On 519-649-0008 cchurchill@churchill-logistics.com www.churchill-logistics.com

BellvilleRodair International Mississauga, On 905-671-4655 jeff.cullen@bellvillerodair.com www.bellvillerodair.com

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Confederation Freezers Brampton, On 905-791-1564 www.confederationfreezers.com

Caterpillar Logistics Services, Inc. Morton, IL www.catlogistics.com

C.H. Robinson Worldwide, Inc. Eden Prarie, Mn 800-323-7587 solutions@chrobinson.com www.chrobinson.com

BCG Logistics Inc. Mississauga, On 905-238-3444 tmedeiros@bcglogistics.com www.bcglogistics.com

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CN Concord, On 905-760-5061 bingeman@cn.ca www.cn.ca

Canadian Pacific Logistics Solutions Calgary, AB 403-319-7487 David.Walker@cpr.ca www.cpr.ca

APPS Transport Group Brampton, On 905-861-2773 lnorman@appsexpress.com www.appsexpress.com

Axsun Inc. St. Hubert, QC 450-445-3003 sramescu@axsungroup.com www.axsungroup.com

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Dart Logistics Toronto, On www.dartlog.com Day & Ross Inc. Hartland, nB 866-DAY-ROSS bdmorin@dayandrossinc.ca www.dayross.ca Delmar International Inc. Montréal, QC 514-636-8800 www.delmarcargo.com DHL Global Forwarding Mississauga, On 289-562-6500 jamie.beggs@dhl.com www.dhl-dgf.com Dominion Warehousing & Distribution Services Ltd. Toronto, On 416-744-2438 dineen@godominion.com www.godominion.com

MM&D | January/February 2012

3PL Capability Guide

Logistics

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MM&D | January/February 2012

Warehousing

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3PL Capability Guide DTA Services Ltd. Toronto, ON 416-487-3311 mgracey@dta.ca www.dta.ca

Groupe Boutin Transnat Express Inc. Boucherville, QC 450-449-7373 www.boutinexpress.com

EGI Transportation Services London, ON 519-686-6290 isk1@sympatico.ca

Hub Group Canada Oakville, ON 905-820-2070 boneill@hubgroup.com www.hubgroup.com

EveryPoint Logistics Solutions Pointe-Claire, Québec 514-426-3043 sales@everypoint.ca www.everypoint.ca

Huron Services Group, CPC Logistics Company Oakville, ON 905-845-4075 j.thomson@ callcpccanada.com www.hurongroup.ca

Exel Westerville, OH 800-272-1052 sarah.jackson@exel.com www.exel.com Expeditors Canada Inc. Mississauga, Ontario 905-290-6000 ric.condello@expeditors.com www.expeditors.com Fargo Transportation Services Limited Georgetown, ON 905-873-1199 jim@fargotransportation.com www.fargo transportation.com FedEx Trade Networks Transport & Brokerage (Canada) Inc. Mississauga, ON 800-388-9479 ftn.fedex.com First Choice Logistics - Division of Thompson Ahern & Co. Ltd. Mississauga, ON 905-677-3471 mjohnston@taco.ca www.taco.ca First Team Transport Mississauga, ON 905-897-6242 seamanj@ firstteamtransport.com www.firstteamtransport.com Fort Storage Warehousing & Distribution Winnipeg, Manitoba 204-488-9774 alan.s@fortstorage.com www.fortstorage.com Fraser Direct Logistics Ltd. Georgetown, ON 905-877-4411 customsbrokers@ fraserdirect.ca www.fraserdirect.ca Freightmate Inc. North York, ON 416-633-4331 www.freightmateinc.com Georgetown Terminal Warehouses Georgetown, ON 905-702-7084 hvisser@gtwcanada.com www.gtwcanada.com

Chart the course

Hyphen, member of the Calyx Transportation Group Inc. Vaughan, ON 877-549-7436x6024 shannonk@hyphenateit.com www.hyphenateit.com

Simplify port operations

I to I Logistics Delta, BC 604-777-1470 info@i2ilog.com www.itoilogistics.com Indis Inc. Mississauga, ON 905-501-7732 sales@indis.com www.indis.com

Deconsolidate efficiently

ISG Transportation Inc. Brampton, ON 905-799-1300 spencer@isgtransport.com www.isgtransport.com IT Logistics Inc. Laval, QC 514-339-1177 ydgagnon@itlogistics.com www.itlogistics.com

Go the final mile

J.D. Smith Vaughan, ON 905-669-8980 khunter@jdsmith.com www.jdsmith.com

View every turn

J.P. Enterprises Logistics Corp. Mississauga, ON 905-949-0046 jponeill@jpent.com www.jpent.com JAG Freight Lines Mississauga, ON 905-607-7167 info@jagfreightlines.com www.jagfreightlines.com Katoen Natie Canada Mississauga, ON 905-821-0514 patrick.donalds@ katoennatie.com www.katoennatie.com

DRAYAGE • DECONSOLIDATION • TRANSLOAD SORTATION • FINAL MILE DELIVERY

Kelron Logistics Mississauga, ON 800-668-3785 kmatthews@kelron.com www.kelron.com

(888) 887-9337 www.ryder.com/rct

Kenco Logistic Services Chattanooga, TN 800-758-3289 info@kencogroup.com www.kencogroup.com

MM&D | January/February 2012

Execution Is Everything.

3PL Capability Guide Kintetsu World Express Canada Mississauga, ON 905-677-8830 info@kwe.ca www.kwe.ca Koch Transport Limited Cambridge, ON 519-653-8530 jschneider@kochtransport.com www.kochtransport.com

Kuehne+Nagel Ltd. Mississauga, ON 905-502 7776 info.canada@kuehne-nagel.com www.kuehne-nagel.com Lakeside Logistics Oakville, ON 800-387-7108 michael@lakesidelogistics.com www.lakesidelogistics.com Livingston International Inc. Toronto, ON 416-626-2800 www.livingstonintl.com Logisticworks Brampton, ON 905-792-6140 agallant@m-o.com www.m-o.com Lynden International Logistics Co. Vaughan, ON 905-879-0114 mcurcio@lynden.com www.lilco.lynden.com Maisliner Transport LaSalle, QC 514-366-0336 sales@maisliner.com www.maisliner.com Manitoulin Transport Mississauga, ON 905-670-8990 svalenzuela@manitoulin transport.com www.manitoulintransport.com McKenna Logistics Centres Mississauga, ON 905-274-1234 sales@mckennalogistics.ca www.mckennalogistics.ca

Menlo Worldwide Logistics San Mateo, CA 630-449-1084 info@menloworldwide.com www.menloworldwide.com Metro Retail Supply Chain Solutions Etobicoke, ON 416-203-3339 agirvin@metroretailscs.com Metro Supply Chain Group Concord, ON 905-738-5577 rcranwill@metroscg.com www.metroscg.com

Meyers Transport/MorTrans Inc/Mosaic Logistics Peterborough, ON 888-291-4442 sdearman@meyers.ca www.mosaiclogistics.com Midland Transport Dieppe, NB 506-858-5555 www.midlandtransport.com Milgram & Company Ltd. MontrĂŠal, PQ 514-288-2161 sales@milgram.com www.milgram.com MSM Transportation Group Bolton, ON 800-667-4175 mmccarron@shipmsm.com www.shipmsm.com MTE Logistix Group of Companies Edmonton, AB 780-944-9009 mteinfo@mtelogistix.com www.mtelogistex.com NAL Worldwide Addison, IL 800-316-6860 info@nalworldwide.com www.nalworldwide.com National Logistics Services Inc. Mississauga, ON 905-696-7278 ext 7292 preaume@nls.ca www.nls.ca NYK Logistics Mississauga, ON 905-502-8892 warren.evans@nyklogistics.com www.nyklogistics.com OPTVIA Logistics Inc. Guelph, ON 519-823-7860 scott@optvialogistics.com www.optvialogistics.com Panalpina Mississauga, ON 905-755-4500 www.panalpina.com Penske Logistics Reading, PA 800-529-6531 logistics@penske.com www.penskelogistics.com PFSweb Canada Markham, ON 888-600-6661 pfsinfo@pfsweb.com www.pfsweb.com

Pival International Vaudreuil, QC 450-424-1623 mlabarbera@pival.com www.pival.com Polaris Global Logistics Inc. Mississauga, ON 905-671-3100 larry@polaristransport.com www.polaristransport.com

Positive Fulfillment Services Ltd. Toronto, ON 416-213-0299 info@positivecan.com www.positivecan.com Professional Distribution Services Mississauga, ON 905-502-1098 pdonalds@professionaldist.com www.professionaldist.com

Service Freight Systems & Warehousing Burlington, ON 905-319-6565 randys@servicefreight.com www.servicefreight.com

TransX Group of Companies Winnipeg, MB 204-632-6694 michael.banville@transx.com www.transx.com Tri-Line Carrier LP Rocky View, AB 403-279-7070 triline@triline.ca www.contrans.ca

SGT 2000 Inc. St-Germain, QC 800-363-4216 info@sgt.qc.ca www.sgt2000.com

ProMiles Canada Inc. Bowmanville, ON 888-736-4537 info@promilescanada.com www.promilescanada.com

Sherway Group Mississauga, ON 905-362-9070 sales@sherwaygroup.com www.sherwaygroup.com

Trigistix Warehousing and Distribution Mississauga, ON 905-696-7020 eswift@trigistix.com www.trigistix.com

Propulson + St-Colomban, QC 514-917-4575 ygagnon@propulsionplus.com

SLH Transport Inc. Kingston, ON 888-854-7548 micampb@slh.ca www.slh.ca

TST Overland Express Mississauga, ON 905-625-7500 dmurray@tstoverland.com www.tstoverland.com

Quik X Logistics Mississauga, ON 800-554-2264 award@quikx.com www.quikx.com Remco Forwarding Ltd. Brampton, ON 905-455-1500 rcohen@remco.ca www.remcogroup.com ReTrans Canada Mississauga, ON 905-678-9522 lthompson@re-trans.com www.re-transcanada.com

Ryder Canada Mississauga, ON 905-812-2396 Catherine_Luzena@ryder.com www.ryder.com Saddle Creek Corporation Lakeland, FL 863-666-0966 info@saddlecrk.com www.saddlecrk.com Sameday Worldwide Mississauga, ON 905-676-3750 roger.morton@sameday.ca www.sameday.ca Schenker of Canada Limited Mississauga, ON 905-676-0676 fabiana.varela@dbschenker.com www.dbschenker.com/ca Schneider National Carriers Inc. Guelph, ON 519-826-7060 caccaros@schneider.com www.schneider.com SCI Group Inc. Toronto, ON 416-401-3011 business.development@scigroup.com www.scigroup.com

SDV Ville Saint Laurent, QC 514-956-7870 b.mercier@sdv.com www.sdv.com

SSI Schaefer Mississauga, ON 905-458-5399 ukunze@ssi-schaefer.ca www.ssi-schaefer.ca UPS Canada Mississauga, ON 905-364-5941 mmendes@ups.com www.ups.ca

STI Fort Wayne, IN 800-234-2788 marketing@stidelivers.com www.stidelivers.com Stonegate Logistics Mississauga, ON 905-671-9072 wayne@stonegatelogistics.com www.stonegatelogistics.com Sylvan Distribution Richmond, BC 604-207-8929 dmalinowski@sylvandc3.com Sylvite Transportation Group Abbotsford, BC 604-854-6633 acarbone@sylvite.ca www.sylvite.ca Synergex Logistics Mississauga, ON 905-565-1212 info.yyz@synergexlogistics.com www.synergexlogistics.com Tandet Dedicated Logistics Oakville, ON 905-603-6291 stilley@tandet.com www.tandet.com Thomson Terminals Limited (Thomson Group of Companies) Toronto, ON 416-240-0897 sales@thomsongroup.com www.thomsongroup.com Total Logistics Control vaudreuil-Dorion, QC 450-424-1700 jzeppetelli@totallogistics.com www.totallogistics.com Trailcon Leasing Inc. Mississauga, ON 905-670-9061 aboughton@trailcon.com www.trailcon.com Trans-Plus Logistics Inc. Mississauga, ON 905-362-0821 sam@trans-plus.com www.trans-plus.com

UTI-Unigistix Brampton, ON 905-789-6211 clepore@go2uti.com www.go2uti.com Versacold Logistics Services Vancouver, BC 604-255-4656 info@versacold.com www.versacold.com Vitran Supply Chain Concord, ON 416-798-4940 sales@vitranlogistics.com www.vitran.com Western Canada Express / Apex Motor Express Concord, ON 905-738-2106 bpoe@apexltl.com www.westerncanadaexpress.com

Wheels Group Inc. Mississauga, ON 905-602-2700 info@wheelsgroup.com www.wheelsgroup.com XCD Logistics Solutions Ltd. Thornhill, ON 647-669-1257 skopyto@xcdlogistics.com www.xcdlogistics.com XTL Logistics Inc. Mississauga, ON 416-742-3883 craig.germain@xtl.com www.xtl.com YRC Reimer Mississauga, ON 905-670-9366 frank.washburn@yrcw.com www.yrc.com

MM&D | January/February 2012

Dock Safety Tips While DC managers are concerned with safety in all parts of their facilities, one area usually worries them most: loading docks. By Walt Swietlik

n today’s hectic environment, the loading and unloading of semi-trailers can pose safety risks for everyone from forklift operators and dock workers to bystanders. More than 20,000 people are seriously injured in forklift-related incidents in North America every year. Sadly, there is no catch-all solution to the problem, since all facilities are different. There have been, however, several recent advances in dock safety technology that can address the issues in a site-specific way.

and provide full-time communication, using lights and audible alarms. Operators can select either automatic or manually-operated units.

Importance of communication Integrated into most wheel-based restraints are systems that automatically communicate the status of the restraint to both the lift truck operator and truck driver. Communications systems are another major design component integrated into most wheel-based restraints. The systems signal when it’s safe for the lift truck operaYesterday’s technology: Wheel chocks tor to begin unloading or loading and when it’s safe for One of the most common loading dock accidents happens when drivers mis- the driver to pull away from the dock after the process takenly pull away while a forklift is still inside the trailer. Another common of servicing a trailer is completed and the vehicle is problem is “trailer creep”, which occurs when trailers (particularly those with unlocked. These systems also include an audible alarm air-ride suspension) gradually move away from the dock due to the ongoing that sounds if the restraint is prematurely disengaged. impact and momentum of forklifts traveling in and around them. The use of communication systems virtually elimiIn both cases, the first step in accident prevention is to secure the trailer to nates communication breakdowns associated with the dock, using a locking device on either the trailer’s rear impact guard (RIG) chocks. One common problem with chocks occurs or rear wheel. Unfortunately, too many loading docks still use wheel chocks when forklift operators and truck drivers get their as a means of restraint. There are a host of problems with this, such as insuf- signals crossed and mistakenly think the other person ficient pullout resistance, chock slippage, and time and safety concerns related has verified that chocks are in place. The recomto placing them by hand. Chocks have no embedded communication system mended practice is for forklift operators to take to let the driver, lift truck driver and dock workers know they are in place. responsibility for their own safety and verify that the trailer is safely secured before servicing a trailer. A A better solution: RIG-based restraints communication system eliminates confusion because A better option is provided by rear impact guard (RIG)-based vehicle restraints. it automatically signals when the barrier is safely RIG-based restraints have a full rotating hook that automatically locks to the engaged and it’s safe to service the trailer. trailer’s RIG, utilizing energy of the backing trailer. They are designed to help Some restraints are equipped with advanced prevent all types of trailer separation including early departure, trailer creep, safety systems. These communication systems protrailer tip-over (from landing gear collapse) or trailer up-ending. Equally vide clear, constant communication from the important, most also incorporate full-time communications systems which restraint control box to the forklift driver when indicate when they are engaged and when it is safe to load and unload. entering and exiting the trailer. RIG-based restraints, however, don’t work in all situations. For example, docks that handle a large volume of trailers with hydraulic gates (such as retail, beverage Summary and grocery industries) typically can’t use them, since those gates block access Loading dock accidents happen literally every day, to the RIG. Likewise, facilities that regularly handle trailers with damaged RIGs producing devastating consequences. Fortunately, or RIG obstructions (such as axle-wide splash guards) can’t use them. Neither by using modern vehicle restraints with visual comcan dock facilities in foreign countries where RIGs are not required. munications systems, trucks can be safely secured so that loading and unloading at the dock isn’t such Wheel-based restraints a risky procedure. MM&D For these applications, wheel-based restraints can provide the answer. As the name implies, wheel-based restraints engage the wheel of a trailer and secure Walt Swietlik is director, customer relations and the vehicle in place. They work with virtually any trailer. Like RIG-based restraints, sales support at Milwaukee, Wisconsin-based they eliminate dangers associated with early departure and trailer separation Rite-Hite.

MM&D | January/February 2012

Dock Products

REACHING NEW HEIGHTS WITH HEAVIER LOADS

New equipment, tools, parts and software for loading areas High-speed door The Guardian Defender from Frommelt Safety Products is a highspeed, high-cycle automated door designed to guard machinery, contain processes and protect employees from machine movement zones. It features a hold-down mechanism which locks the door in the down position, a noncontact interlock safety switch, a more resilient curtain material with a variable frequency drive to control the curtain speed, and a redesigned rotary cam-limit switch. Compact stacker Southworth Products Corp has designed its Stack-n-Go compact stacker to transport loads on pallets and stacking loads up to 2.3m (7.5ft) high. The compact stacker has a short wheelbase, 1.6m (62inch) masts, offset control handles, and forward and reverse thumb switches. It is powered by two 12-volt batteries and includes a built-in 110-volt charger. Yard management The 4SIGHT Yard and Dock Management System allows managers to monitor, schedule and communicate information about trailer movements, load assignments and loading dock status. It uses RFID, GPS, and other sensor technology to provide dock visibility, automation and optimization. It also automatically collects data and identifies docks that reach usage thresholds.

The Bendi B55AC-HL provides a superior Narrow Aisle solution for maximum utilization of cubic storage space. Lift Heights to 473” (12M) Stacking Aisle only 84”(2.13M) Capacity of 5,500 lbs. (2,500 kg) Works Inside or Outside

Electric hoist The CM Lodestar Electric Chain Hoist handles capacities from 113kg (1/8 ton) to 2,722kg (3 tons) and offers an 80 percent reduction in sound pressure compared with the classic Lodestar. It has a heavy-duty DC brake, a lifetime grease-lubricated gear box, a five-pocket lift wheel, zinc plating on the chain, an overload clutch located outside the transmission, and finger-safe wiring.

Patent Rights Reserved on B55 Forklift

LANDOLL CORPORATION MATERIAL HANDLING PRODUCTS 1900 North Street · Marysville, KS 66508

785-562-5381 · Fax 888-231-7863

mhpsales@landoll.com . 800-428-5655 WWW.LANDOLL.COM/MHP

MM&D | January/February 2012

The Konstant Group has the most extensive selection of product storage equipment and accessories available in Canada. Large or small we can provide the best solution for your requirements > Structural and Roll Formed Racking > Shelving > Mezzanines > Carton/Pallet Flow > Cantilever > Push Back > Drive-In > Pick Modules > Security Partitions > Wire Mesh Decks > Rack Safety Equipment

Tel: 905-337-5720 Toll Free: 1-800-461-6660 www.econorack.com

Alberta: 403-720-6900 British Columbia: 604-522-7166 Maritimes: 902-468-2127 Ontario: 905-337-5710 Toll Free: 1-866-473-3472 www.redirack.com

Tel: 514-871-3811 Toll Free: 1-877-877-7225 www.technirack.com The Konstant速 Group of Companies

Auto-ID Product Showcase

Equipment, tools and software Adding automation products helps improve the efficiency of warehousing and distribution operations. iPhone compatible apps Now AccuLazr AL5010 users can access their scanners through an iPhone or iPad application. Accu-Sort also offers programs for other smartphones and PC-based tablets to remotely monitor and diagnose warehouse operations. The software accesses a web page hosted on the laser barcode scanner. All connections are made over existing local area networks (LANs) and stay behind security firewalls. Connections can be made via QR codes, IP addresses or browser bookmarks. Waterproof transponder The IronTag from HID global is a UHF transponder designed to withstand harsh conditions, including manufacturing facilities, processing environments and vehicle and equipment operations. The waterproof device is engineered for high performance when mounted on metal surfaces. It is also resistant to shock, vibration and chemical exposure and withstands temperatures ranging from -40C (-40F) to over 180C (356F). The unit measures 53mm by 23mm by 7mm (2.1in by 0.9in by 0.27in) and has a read range of up to 4m (13ft). Fast scanner The AT20B handheld barcode scanner from Denso ADC, is twice as fast as the company’s previous models. It uses an LED guide-light to improve targeting and is designed to scan wide barcodes, barcodes used on utility and medical bills, and poorly printed barcodes. It comes with dust- and waterprotection, is able to withstand shocks and can be dropped six times on a con-

MM&D | January/February 2012

crete floor from a height of 1.8m or sixty times from a height of 1.5m. It offers an auto-sense scanning mode and a data-verification function. Five megapixel verifier The Integrea 9510 barcode verifier from Label Vision Systems is now available with a 5.0 megapixel camera. The 9510 verifies linear and two-dimensional (such as QR) codes to ISO/IEC standards. It has the ability to auto discriminate symbology, narrow bar width and aperture. The Integra is available in three viewing fields ranging from 7.6cm (3in) to 16cm (6.25in). A stitching feature allows grading of barcodes exceeding 16cm. Big display scanner The Mesa with Barcode Scanner from Juniper Systems is a Windows Mobile barcode scanner with a 14.5cm (5.7in) display. It can be added retroactively to any Mesa Rugged Notepad model. It is built for rugged outdoor applications and is designed to work in all lighting conditions. With an aiming laser, it can scan at various angles and distances and even scan through glass. It offers a pick list mode. The scanner is equipped with Wi-Fi and Bluetooth technology. Some models feature geotagging and a 3.5GB GSM data modem. It comes with a magnesium and plastic chassis and can survive a drop onto concrete from a height of 1.2m (4ft). Order fulfillment upgrade PickDirector 3.6 from Dematic now supports put walls and order packing work cells. The software also drives hybrid fulfillment operations such as indexing or constant pace conveyor systems. It manages order fulfillment activities in piece or case pick applications using RF, light displays or voice technologies to direct staff. PickDirector 3.6 manages order tracking, zone balancing, “golden zone” analysis, quality control, layer picking, and SKU descriptions (for voice applications) as well as managing out-of-stock, replenishment, and cycle counting. It also provides operational data such as real time reporting of worker productivity, current assignments, utilization and operational statistics such as percentage of orders complete. MM&D

Legal Link | Marvin Huberman

On the hook

Understanding legal liabilities in logistics

Where the corporation breaches the statutory trust under section 191.0.1(3) of the Ontario Highway Traffic Act and the directors/officers are constructive trustees. Subsection 191.0.1(3) of the Ontario Highway Traffic Act (the “Act”) creates a statutory trust and provides additional protection for performing commercial motor carriers. It provides: Money for contract of carriage held in trust “A person who arranges with an operator to carry the goods of another person, for compensation and by commercial motor vehicle, shall hold any money received from the consignor or consignee of the goods in respect of the compensation owed to the operator in a trust account in trust for the operator until the money is paid to the operator.” Accordingly, any money received by a load broker from consignors or consignees of goods in respect of the compensation owed to the carrier or trucker (the operator of a commercial motor vehicle) pursuant to contracts of carriage entered into by the load broker on behalf of the operator engages this statutory trust. The good news If the load broker fails to hold the money it Once legally incorporated, a company “has the capacity and the rights, powers received from the consignor or consignee in a trust and privileges of a natural person”. It has a separate legal identity, and is subject account for the operator until the money is paid to to rights and liabilities independent of its members (shareholders), who are the operator, it is in breach of its trust obligation exempt from personal liability for its debts, acts and obligations. and is therefore liable to the operator for the amount in question. The bad news Here is the key point: the directors or officers There are exceptions to the general rule. Here are a few of the main ones. of the load broker may also be personally liable for When the conduct complained of is that of the directors/officers themselves the load broker’s breach of the statutory trust creThis would include conduct which is tantamount to fraud, dishonesty, lack ated by the Act on the basis that they are construcof authority or other specific conduct which justifies piercing the corporate tive trustees, particularly if there is sufficient veil, where the corporate veil is a sham or where the conduct exhibits a separate evidence to conclude that they knowingly assisted identity of interest from the bona fide interests of the corporation. the load broker in its breach of the statutory trust When the directors/officers are constructive trustees or knowingly received part of the trust money that A director of a corporation may be personally liable as a constructive trustee should have but was not paid to the operator, as for breach of trust on one (or more) of three grounds: required by the Act. Trustee de son tort—where a person, although not appointed trustee, perTo minimize the risk of personal liability, direcsonally takes possession of trust property or assumes the office or functions tors and officers of a corporation must be diligent of a trustee and commits a breach of trust while acting as a trustee and above all, must act honestly and in good faith Knowingly assisting in a breach of trust—where the director of a corporation with a view to the best interests of their corporation had actual knowledge of the underlying breach of trust by his or her corporaMM&D tion or was reckless or wilfully blind to the facts, and where the director assists with knowledge in the trustee’s “fraudulent and dishonest design” Marvin J. Huberman, LLM, is a Toronto lawyer, Knowingly receiving trust property—where the director of a corporation mediator and arbitrator. receives and becomes chargeable with some part of the trust property. www.marvinhuberman.com ast year, a civil case came before the court that had direct bearing on the logistics industry. The Ontario Superior Court heard the case of Travelers Transportation Services Inc v 141557 Ontario Inc (known as “Platinum Express Worldwide”) and others. The basic story behind the case is this: The plaintiff, Travelers Transportation is a truck operator and carrier who entered into a load brokerage agreement with the defendant, Platinum Express. Traveler carried and delivered the cargo, but Platinum didn’t pay the agreed upon $57,425 for the service. Anthony Persaud is an officer and a director of Platinum. Travelers claims that Platinum breached its obligations under the Truck Transportation Act, and that Persaud is personally liable for the money owed, according to previously established case law. The outcome of the case is twofold. First, the court dismissed the personal liability claim against Persaud. Second, the Truck Transportation Act has been repealed and replaced by section 190 of the Ontario Highway Traffic Act which establishes a new statutory regime with similar but more specific obligations relating to the payment of freight monies. The Travelers case also raises important questions concerning when directors and officers of corporations generally, and of load brokers specifically, can be personally liable for the liabilities of their company.

MM&D | January/February 2012

Materials Handling | Dave Luton

Improving performance

Getting the most from electric forktruck fleets

s long as the forktruck has existed, there has been a debate about the tradeoffs between electric-powered (ie battery-powered) and internal combustion engine (ICE) trucks, traditionally powered by propane, and more recently, natural gas. Recently, there have been a number of advancements in electric-powered vehicles which suggest that traditional users of ICE vehicles may want to re-examine their fleet dynamics. In practice, this is already happening in the industry. When I started in the logistics business 40 years ago, counterbalance forktruck purchases were about 60:40 in favour of ICE equipment. Today it is about 60:40 in favour of electric-powered vehicles. The key change for electric-powered vehicles is the development of AC-powered electric vehicles versus the traditional DC-powered vehicles. Newer charging technologies can also remove one of the major headaches of heavy-use, multipleshift forklift fleets: traditional lead-acid battery charging and changing. The use of static inverters to convert DC battery power to an AC motor provides a number of advantages compared with a traditional DC electric motor or ICE truck. They improve engine power so the historic operating performance gap between electric DC-powered and ICE vehicles is narrowed. Many of today’s trucks also use higher voltage electric systems, which also improve performance. Unlike DC electric vehicles, AC vehicles maintain their performance as battery voltage drops. (DC performance is directly related to voltage.) This prevents complaints about DC-powered electric vehicles being under-powered at the end of the dayshift, often the busiest time in warehouses. Lower fuel costs are the most significant economic advantage of electric trucks over ICE vehicles, but lower maintenance requirements are also advantageous. Although ICE-powered vehicles require additional components such as radiators and fans, they eliminate many of the maintenance headaches with DC motors such as brushes and springs. Looking at a typical five-to-six-year truck life, the economics for an AC vehicle turn positive about mid-life (about two-to-three years). The biggest advantage of battery-powered trucks is the lack of fumes and carbon monoxide. This is crucial to the inside-warehouse driver. Proper mainMM&D | January/February 2012

tenance and catalytic converters on ICE trucks can only reduce—but not totally eliminate—the fume problem. Today, regulations are increasing these concerns beyond traditional industries. Of course, electric vehicles aren’t the perfect solution for everybody. They have some disadvantages compared with ICE-powered forktrucks. Both ICE and electric-powered trucks are approximately the same cost for the truck, but the electric truck user has had to pay a premium for the additional cost of the battery and charger. A user with a heavy workload suffers a greater price disadvantage initially because of the need for multiple batteries. In the traditional tradeoff between the ICE trucks and DC motor electric trucks, the biggest disadvantage of the electric trucks was their poorer travel speed and lift. In applications where this was important, such as outdoor use, up-and-down ramps, and in inclement weather, ICE vehicles dominated. This is especially true in the far north with its low outdoor winter temperatures. Forktruck users have had concerns about the handling, changing and charging of lead-acid batteries. Changing a 30-40lb propane tank is easier than changing a lead-acid battery weighing over a tonne. This traditionally required specialized handling equipment and charging rooms and extra batteries. New charging technology offers a solution to this problem. Fast and opportunity battery charging technologies allow the user to charge the battery in the truck. High-volume, three-shift electric truck users have required as many as three batteries per truck, because the battery was used for one shift, charged in a second and cooled down in the third shift. Changing of batteries typically took around 15 minutes each time. Fast charging takes about two hours and this time frame can be broken up into smaller time segments, such as during breaks or lunch. Hence the term “opportunity charging”. Use of energy recharging technologies (such as electric braking and energy regeneration) to recapture some of the energy used during forktruck activity can also reduce the time needed for battery charging. The elimination of battery changes is a substantial improvement, but there are further advantages in provinces like Ontario where power rates differ depending on the time of day. There are, however, limits to the technology. Fast charging still requires a weekly 24-hour ‘equalizing charge’. Additionally, there are some other disadvantages with fast charging, mainly related to the higher cost of chargers (up to four times more expensive) and batteries—although the higher cost of batteries can be offset by the reduced number of batteries needed. The charger system is a one-time expense. Fast-charge battery chargers draw more current (amperage) than standard chargers, so it is important to ensure your facility has enough power available, especially if you need multiple chargers to satisfy a large fleet size. Fast charging technology will also change water usage, so installation of a single point watering system should be considered concurrent with the change. With all of these changes, the world of forktruck motive power technology is probably worthwhile to consider, particularly if it has been a while since someone did a full review. MM&D Dave Luton is a consultant in the greater Toronto area. dluton@cogeco.ca 33

Learning Curve | Tracy Clayson

Recruit 3PL success

New talent brings innovative ideas to business models

oday’s shippers are looking for 3PLs that do more than just track, report, and exchange data and meet performance targets. They want companies to implement radical and/or innovative ideas. To put it bluntly, relying on shippers to set performance expectations is a fool’s game, but offering simplified solutions to optimize resources could make you a game-changer. The question, then, is this: How can your organization come up with the great ideas shippers expect and then put them into practice? Capgemini Consulting’s 2012 Annual Third Party Logistics Study conducted in 2011 among international 3PL procurement executives, provides some clues. It uses data from shippers about their current usage of 3PLs, including effectiveness ratings and their view of 3PLs’ limitations and service gaps. The report found that while shippers continue to outsource supply chain functions to 3PLs, these functions are limited to operational (transaction-based and repetitive) processes. The majority of shippers also said talent shortages were a key challenge in both the 3PL and shipper environments. This concern is one reason shippers are so reluctant to ask 3PLs to handle more strategic, IT and customer-facing roles. Put simply, the lack of innovation shippers are seeing in today’s 3PLs is, in part, driven by a serious talent shortage. This truth has escaped analysis in the past few years due to the nature, and rate of change in today’s supply chains. In mature markets, supply chain models change incrementally year by year. With the exception perhaps of systems upgrades and newly added supplier networks, 3PLs have often provided the ‘same old’ raw materials and production and distribution processes. In an industry where the rate of change is slow, leadership is not called into question nearly as often as it might be in a high-growth market. Well-established models tend to bring ‘if it ain’t broke don’t fix it’ thinking. Today’s shippers expect more than this from their 3PL providers. They want them to challenge accepted practices and think beyond current designs. There are, of course, areas where 3PLs innovate on a regular basis. Shippers often ask for more strategic work from 3PLs in emerging markets where sourcing is more complex and innovation in supply chain design less common, or when shippers are dealing with remote manufacturing locations and/or multiple sources of data. Electronics and pharmaceutical industry 3PLs often better understand the value of investing in and improving supply chain management. But an increase in supply chain expertise requires a departure from the established benchmarks and a better understanding of the changes required to take 3PL capabilities to the next level. Can 3PL providers keep up with the demands of their shippers by using job candidates drawn from their existing talent networks? Probably not. Despite a slowly recovering economy, future supply chain executives are a diminishing breed. To find and groom leaders, 3PLs and shippers will have to take on new graduates, hire from adjacent industries and more effectively source from within, for those with management potential. Increased retirement rates and attrition mean the supply chain sector is faced with a shrinking pool of candidates. Additionally, the industry also struggles to appeal to today’s youth.

3PLs must make a cultural shift toward improved recruiting, retention and talent management. This requires both an accurate assessment of the job a new employee will be doing, and a sound grasp of what up-and-coming logistics professionals find meaningful and rewarding about such work. An infusion of new, young talent is needed at most 3PLs to attract people with strong skills in technology and strategy, with the follow-through to push ahead with their own new, untested ideas and challenge the status quo. The Cap Gemini report revealed that many 3PL executives too often find themselves hiring in crisis mode, for example after managers resign. Then they dust off the old job descriptions and postings, troll through lists of past applicants and try to hire quickly. With more careful planning, junior logistics team members would have been groomed to become leaders and would be ready to step in. Today’s 3PLs must source future senior managers by identifying core business goals and linking those goals with capabilities not yet developed within their mid-management team. Careers being offering to young people must allow for a positive work/life balance. In addition, 3PLs should try to create a culturally diverse workforce and place a greater number of women in senior management roles. Diverse management teams are more dynamic, resourceful and creative, and offer a much more varied set of perspectives. The 2012 Capgemini Consulting Annual Third Party Logistics Study provided a gap analysis of where 3PL companies are today and where they need to be in the near future. It showed that tomorrow’s thought leaders will need to create systems that are more flexible, transparent and agile. They will also need to ensure supply chains are both highly efficient and sustainable. Do you know where to find such thought leaders right now? If the answer is no, you might want to get started on the job of creating some. MM&D Tracy Clayson is managing partner, business development, of Mississauga, Ontario-based In Transit Personnel. tracy@in-transit.com

MM&D | January/February 2012

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