DTJ February 2010 by Karen Schmitt

overcoming distribution challenges | Brain Drain: A Looming epidemic

February 2010

www.ndtahq.com

The Crucial Need for Maritime Research and Innovation

CONTENTS

February 2010

FEATURES Brain Drain: A Looming Epidemic February 2010

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Vol 66, No. 1

Publisher

LTG Ken Wykle, USA (Ret.) Editor

Kent N. Gourdin Managing Editor

Karen Schmitt | karen@ndtahq.com Contributing editor

Denny Edwards

Circulation Manager

By Chuck Bolduc and Bob Reilly

Overcoming Distribution Challenges

Joint Distribution in the Republic of Korea By COL Bruce H. Ferri Jr. and Mr. Luis G. Diaz

RFID in Defense Wrap-Up

The Crucial Need for Maritime Research and Innovation

Leah Ashe

Publishing Office

NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761 Graphic Design

By VADM Albert J. Herberger, USN (Ret.)

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Margaret Howard

Advertising Account Manager

Jim Lindsey

Advertising & Production Carden Jennings Publishing Co., Ltd. Custom Publishing Division 375 Greenbrier Drive, Suite 100 Charlottesville, VA 22901 434-817-2000, x261 • F 434-817-2020

departments A-35 News | Ms. Lori Leffler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Editorial | Dr. Kent N. Gourdin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 President’s Corner | LTG Ken Wykle, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 association News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

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

Industry News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Government News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 NDTA’S Annual Travel & Transportation Survey | Mr. Lee Jackson . . . . . . 24 Professional development | Mr. Irvin Varkonyi. . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Pages future | COL Denny Edwards, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 honor roll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 chairman’s circle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Bookshelf Ideas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 index of advertisers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

A-35

EDITORIAL REVIEW BOARD AND EDITORIAL OBJECTIVES Dr. James M. Daley Dean, Helzberg School of Management, Rockhurst University, Kansas City, MO Dr. Kent N. Gourdin Director, Global Logistics and Transportation Program, College of Charleston

Be an Active Component of NDTA Ms. Lori Leffler, CTC, A-35 Chair Global Government Strategic Manager, The Hertz Corporation

Maj Gen John E. Griffith, USAF (Ret.) Transportation Logistics Consultant Richard H. Hinchcliff Consultant Brig Gen Malcolm P. Hooker, USAF (Ret.) Member, Board of Directors, NDTA Dr. Joseph G. Mattingly, Jr. R.H. Smith School of Business, University of Maryland Prof. Gary S. Misch, US Naval War College (Ret.) Lt Col Anne T. Peck, USAF (Ret.) Dr. Richard F. Poist, Jr. Professor, Transportation and Logistics, Iowa State University MG Harold I. Small, USA (Ret.) Consultant COL Joseph A. Torsani, Jr., USA (Ret.) Dr. David Vellenga Director, Carl A. Gerstacker Liberal Arts Institute for Professional Management, Professor of Economics and Management, Albion College

Editorial Objectives The editorial objectives of the Defense Transportation Journal are to advance knowledge and science in defense 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 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 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. The opinions expressed are those of the authors and not necessarily of the Editors, the Editorial Review Board, or NDTA. Editorial Content For a DTJ Publication Schedule, Media Kit and Archives, visit /www.ndtahq.com/education_dtj.htm

xciting things are happening for the NDTA A-35 Program with 2010 being the year of the Young Professional as we emphasive the “Action” in “A-35”. The Action 35 Program’s vision is to be an active component of NDTA providing opportunities and developing tomorrow’s leaders and we are doing just that. In January, the Washington DC Chapter A-35 committee took Action and began the 10th session of its mentoring program. This unique program, led by Larry Larkin, brings together present and former senior executives from the military, government and the private sector with early- and midcareer defense transportation and logistics professionals in the Washington DC area seeking to further their career growth. Mentoring programs are a great way to promote networking and education in all chapters of NDTA. Contact Larry Larkin at larry. larkin@ngc.com for assistance in starting a mentoring program in your chapter. In March, the A-35 Program will take Action and become an official part of the SDDC Symposium by working with Fred Rice of the SDDC Command Affairs Office to incorporate a Young Leaders Mentoring and Educational Session into a functional breakout. During this session, Senior Military, Government, and Industry Transportation leaders will provide insight and advice for young professionals. They will share personal and professional experiences which assisted them in their career advancement as well as how best to approach, network, and interact with senior staff—what to do and not to do. Additionally, Univer-

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

Defense Transportation Journal

 Professional Opportunities for Leadership Development & Recognition  Mentorship and Coaching Programs  Networking with Leaders in Government, Military and Industry  Selfless Service to our Nation & Local Communities DTJ

Transportation Industry Leaders Not enough hours in your day?

Ms. Karen Schmitt, Managing Editor, DTJ NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761 karen@ndtahq.com

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sity Representatives will share information on how to further transportation education and careers. Young military, government, and industry professionals should attend this session to receive valuable information that will assist in professional development and career advancement. As NDTA looks to reach young professionals in the student, military, and industry arenas, this year we will take Action and focus on a new A-35 Recruiting Drive. Donna Johnson, Scott/St Louis Chapter, will lead these efforts. Chapters will have tools that will introduce perspective A35ers to NDTA benefits including Networking with industry leaders, Scholarship opportunities, Mentor programs, Educational programs, Professional development, Job referral assistance, Leadership opportunities and Community involvement. As we strive to enhance program information, the NDTA A-35ers are taking Action and working to enhance our communication and social media tools by developing a new A-35 page as part of the NDTA portal and utilizing Facebook on a national level. Look for information to come through Twitter. The Four Pillars that the A-35 Program is built on are:

You work in a dynamic industry, facing challenges every day. It’s tough enough just keeping up with the workload let alone new policies and procedures that impact everyone.

February 2010

EDITORIAL Happy New Year! Dr. Kent N. Gourdin, Editor DTJ Director, Global Logistics and Transportation Program College of Charleston

s it possible that 2010 will bring some relief from the economic woes that have bedeviled the nation for the past few years? Certainly at this time last year, we were all wondering when it might end. Indeed, things were not looking good in Charleston as we entered 2009: container volumes were down, Maersk was threatening to leave the port completely, and the senior leadership at the South Carolina State Ports Authority was in disarray. What a difference a year makes. Import container volumes are showing a slight uptick, hopefully reflecting the first signs of a larger recovery. In addition, Maersk and the Ports Authority have negotiated a new multi-year agreement that will keep the company’s service in Charleston. Finally, James Newsome has hit the ground running as the new ports authority CEO and is already moving to reestablish Charleston as one of the top container ports on the Atlantic seaboard. Perhaps the biggest news was the announcement that Boeing will build a huge facility in North Charleston to assemble their new 787 Dreamliner. The economic impact of this plant cannot be overstated. Thousands of jobs will be directly created when it’s operational; many more will come to the area over time as suppliers and other support activities arrive and/or grow. No doubt port activity will increase as well, resulting in increased business for a multitude of transportation and logistics service providers in the area. Indeed, one only need look at the impact BMW’s presence has had on the state to

get an idea of what Boeing’s decision portends for the Charleston area. I found the news noteworthy for other reasons as well. First, it signified Boeing’s decision to rethink their entire supply chain. Both Airbus and Boeing outsourced an extraordinary amount of production for the A380 and the B787, respectively. Both firms ultimately discovered that they had simply relinquished too much control over their supply chains as evidenced by growing delays in promised delivery dates to the airlines. Boeing has moved to bring more of their processes back “in-house” as a way of regaining control over an incredibly complex manufacturing process. Of course, we in Charleston are more than happy to assist them in their efforts! I also found the prospect of Boeing’s arrival interesting on a personal level. My father was a flight engineer for Pan Am for 42 years, starting on their flying boats and retiring off the B747. I can remember our family joining him in Seattle as he (and the rest of the initial Pan Am cadre) was finishing his initial training on the B707 in 1959. The thrilling part for me (and the rest of the accompanying employee families) was being able to ride back to San Francisco on the very first of the new airliners being delivered to Pan Am’s Pacific Division. Needless to say, that first takeoff seemed almost vertical compared to the lumbering and gradual ascent of the propeller-driven aircraft we were used to. That B707 was, simply put, a beautiful airplane: swept back wings and tail, jet engines, and the Pan American logo proudly

ERRATA: (page 38, Forum Wrap Up DTJ Issue) “National Disaster Logistics Supply Chain Coordination” NDTA Forum Panelist, BG Michael “Mike” Dana, USMC was mistakenly identified as belonging to the US Air Force. Please note correction: BG Dana is with the US Marine Corps.

displayed on the fuselage. Its arrival in SFO created quite a stir, with hundreds of Pan Am employees on hand to great it. Indeed, it was one of first of the jets to arrive there, maybe even THE first. I can remember feeling a bit like a celebrity disembarking before the assembled masses. I don’t think there has been such a pretty airliner manufactured since then (while impressive in their own right, I don’t think any of us would call the B747 or the A380 inherently attractive), except perhaps for the Concorde. However, I find the Dreamliner every bit as striking as that first B707, and I look forward to seeing it in the skies above Charleston. But enough of my nostalgic ramblings. The next few years should be an exciting time for those of us working in transportation and logistics as the global economic situation continues to improve. I wish you all the best for a strong and successful 2010. DTJ

However, you have a partner with NDTA. The NDTA A-35 Program provides significant value for junior employees—persons critical to the mission, but who may require familiarization when it comes to government contracts or military culture. The A-35 Program excels in knowledge sharing, mentoring and networking, all vital to the younger workforce. And, with NDTA Chapters located throughout the US and overseas, it’s easy to locate those connections.

Your mission is important to us, and so are the junior partners of your transportation team! www.ndtahq.com | 5

PRESIDENT’S CORNER The Sun is RISING on 2010 LTG Ken Wykle, USA (Ret.) NDTA President

s the sun begins to rise on 2010, we should pause and reflect on 2009. For our corporate members, I believe there is a sense of relief that 2009 is behind us, but there is uncertainty about the New Year. Most in the commercial transportation and logistics industry expect 2010 to be another challenging year—not as difficult as 2009, but not a “breakout” year. Trend lines are expected to be relatively flat during the first half of the year, eventually turning up in anticipation of a stronger 2011. As for NDTA, we had a relatively good year. Our two major events—the SDDC Training Symposium and NDTA Exposition, and the annual NDTA Forum & Exposition were successful. The Association is strong financially, we have great professional programs during our events, the modal committees are engaged in industry/government dialogue, our chapters are active, and our corporate members are involved and supportive of our objectives and goals. Looking toward 2010, the Department of Defense (DOD) logistics and transportation requirements are expected to be strong. Military forces will remain in motion—rotating into/out of Iraq and Afghanistan— and continuing to be deployed around the globe to meet our Nation’s security requirements. Immediately after the Iraqi elections in early 2010, the DOD will begin executing one of the largest military operations in US history—the redeployment of forces from Iraq, which are scheduled to be completed by August 2010. This will involve the movement of tens of thousands of containers and large pieces of equipment, and thousands of soldiers and marines. All of this is scheduled to occur in a 6 to 8 month time frame. Simultaneously, the build-up of forces in Afghanistan will continue. Increased US Forces in Afghanistan will result in additional logistics and transportation re-

quirements. The two primary surface routes for supplying US Forces in Afghanistan will be through Pakistan and across the northern route into Afghanistan. High priority cargo, sensitive items, small packages, and passengers will move by air. A robust requirement for commercial air and sea lift will continue. These surface and air movements involve US logistics and transportation companies providing end-to-end distribution services to the military. The DOD will depend on the commercial industry to meet these increased requirements. The majority of the equipment being withdrawn from Iraq will return to the United States where it will be moved through commercial ocean terminals, loaded on rail cars and trucks and moved to military installations or to depots for repair or rebuild. Once reset, the equipment will be distributed to units or placed in storage. Along with these major movements in Iraq and Afghanistan, the rotation and sustainment of US Forces in Europe, Asia, and America will continue. All of these requirements translate to business opportunities for commercial industry currently doing business with the US Government or those who want to compete for these opportunities. For 2010, the Association will be focusing on three events: NOLSC (Naval Operational Logistics Support Center) & NDTA Training Symposium (25-28 January | Norfolk, VA); The SDDC Training Symposium and NDTA Exposition (811 March | Atlanta, GA); and the Annual NDTA Forum & Exposition (18-22 Sep | Washington, DC). Additionally we will continue to provide value for our members through the Committee structure, Chapter events, Professional Programs, and networking opportunities. Please provide your feedback/comments concerning the Association directly to me.

2010 – NDTA’s YEAR of the YOUNG PROFESSIONAL Throughout this year, NDTA will celebrate Young Professionals—logisticians who work in corporate settings and in combat zones. Watch for articles and interviews in the DTJ and the NDTAGram. “America’s Best Leaders”, in the January 2010 GRAM, spotlights men and women serving in Iraq and Afghanistan and who are making a difference! NDTA has also launched a new membership drive targeting junior members (A-35’ers) who will bring talent, energy and enthusiasm to NDTA Chapters and NDTA Events. Details will appear in upcoming issues of DTJ and in the NDTAGram, along with Save-the-Date reminders of special A-35 programs.

With YOU on the “A(35)-TEAM,” NDTA will SHINE much brighter Thank you for your confidence in the Association and the daily contributions each of you make in support of our nation’s economy and to our national security. DTJ

JAS Forwarding Returning Regional Member

We’re happy to Welcome you once more!

WELC ME

NEW corporate

members as of January 31, 2010

Chairman’s Circle Plus+ • Supreme Group USA, LLC

SUSTAINING MEMBERS • Express-1 • PODS

regional patrons • • • •

Bertling Logistics, Inc. EMO Trans, Inc. Jamstar Services, LLC Phoenix International Freight Services, Ltd.

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A Looming Epidemic

s the baby boomer generation continues to leave the workforce, both public and private sector organizations have the potential to experience an intellectual capital loss of unprecedented proportions. The modern business model of a lean, compressed workforce, coupled with the challenges of a global economic down turn, have forced many organizations into a corner in regards to a solid succession plan. Most organizations do not have the luxury of time to consider developing and acting on a plan to ensure the talent and skills torch will be passed along to younger employees. In effect, a SURVIVAL mindset has replaced SUCCESSION planning in the workplace. The impact of a lack of succession planning is felt particularly in spe-

Potential retirees in this volatile economy may hold fast to the jobs they currently have or seek new full time or part time employment to compensate for the real decline of their retirement funds. cialty areas or vertical markets within organizations. For example, when experienced logisticians retire from the government, without a defined succession plan, a large hole is left and efficiency drops significantly. The resource the organization relied upon for years is gone along with the historical 8 |

Defense Transportation Journal

knowledge without a trained and mentored employee ready to fill the gap. The same is true in private sector companies where key skill sets and knowledge reside in individuals or teams, who, upon departure, take an entire business element of the organization with them. Some specialty vertical markets or services simply discontinue when the key personnel depart. How can an organization reverse the downward spiral of loss? First off, the organization must face the reality of losing key skills sets when employees retiree. Skill replication must be a top-down terminology and philosophy adopted by the entire organization. The organization must foster an environment of sharing information among staff. In order for an organization to thrive and not just survive, culture of SUCCESSION planning must be a way of life. When companies begin succession planning, the following suggestions may be helpful: 1. Develop a monitor/protĂŠgĂŠ program in the organization so that knowledge and experience may be shared. 2. Encourage, applaud, and celebrate the successes of such a program. 3. Consider working with local schools, community colleges, and universities to seek people for jobs or summer intern programs. Begin passing the torch to another generation! 4. Look into part time or special project work for retired individuals who would love to share their life experiences with

February 2010

by Chuck Bolduc and Bob Reilly others. There are many resources to identify retirees, including the local faith community, senior centers, and professional associations for uncovering this knowledge treasure. 5. Explore consulting companies who possess a particular skill set or specialty that can be infused into the lifeblood of the organization. 6. Seek seminars and other training for your organization that focus on the areas you wish to develop further. 7. Check out professional forums, chat rooms and other online networking to find out how others in your particular market sector are working through this issue. A phenomenon that also must be considered in an organizationâ&#x20AC;&#x2122;s succession plan is the current downturn in the economy. The downturn of the stock market and the subsequent reduction in retirement investment plans and 401k programs may have a significant impact on baby boomer retirements and on employment and advancement opportunities for subsequent generations. Potential retirees in this volatile economy may hold fast to the jobs they currently have or seek new full time or part time employment to compensate for the real decline of their retirement funds. At the same time, companies and government entities are offering early retirement or attractive buyout opportunities to some of their most experienced and knowledgeable workers in the hope of reducing costs. continued on page 32

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Overcoming Distribution Challenges

Joint Distribution in the Republic of Korea Recently, the distribution process for US Forces within the Republic of Korea (ROK) received a long-overdue overhaul. The results were measurable, including the elimination of multiple distribution nodes, reduced inefficiencies from overlapping functions and capabilities, less truck assets committed to perform deliveries to USFK units, and documented efficiencies in distribution process and practices. The implementation of these processes improvements had a positive impact in both in-transit visibility and customer confidence in the distribution process. Additionally, the new distribution process allows leveraging of in-theater capabilities from our national partners to â&#x20AC;&#x153;operationalizeâ&#x20AC;? USFKâ&#x20AC;&#x2122;s joint distribution practices in overcoming armistice and crisis challenges.

by COL Bruce H. Ferri Jr., Chief, USFK CJ4 Transportation Division, and Mr. Luis G. Diaz, Deputy J4 Transportation Division

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THE CHALLENGES Prior to the development of USFK Regulation 4-1 Korea Distribution, dated 9 February 2009, distribution requirements in support of US Forces Korea were accomplished by multiple organizations and nodes. Our aerial port squadron received cargo at the aerial port, sorted pallets, and coordinated with its servicing movement control team for onward movement to multiple destinations. This process often resulted in the temporary loss of in-transit visibility from the time cargo arrived at the aerial port, until it was delivered to the receiving units. This was due in part to a process where cargo was removed from pallets, configured with multi-consignees along with the original lead TCN radiofrequency tag, and placed on conveyances for delivery to peninsula wide destinations. Surface cargo arriving in containers destined for multiple consignees was also being unstuffed from containers and delivered by individual trucks to multiple destinations. In-transit visibility from the seaport to recipients was also affected as the radio frequency tags were removed from containers, with the exception of containers booked for doorto-door delivery service (single consignee), and distributed as loose cargo on commercial trucks lacking the ITV capability. The distribution challenge was also exacerbated through the distribution functions per-

The USFK team, including forward deployed National Partners from organizations such as DLA, Air Mobility Command and SDDC, convened to address theater distribution challenges with the goal to document solutions in a new USFK joint distribution regulation. formed by four additional activities on the peninsula. The 501st Sustainment Brigade was running a northern distribution hub for air cargo, and the Defense Distribution Depot – Korea (DDD-K), 16th Medical 12 |

Defense Transportation Journal

US Army Soldiers from the 662nd Movement Control Team, 25th Transportation Battalion, 501st Sustainment Brigade observe the arrival of M109A6 Paladin self-propelled Howitzers via rail car at Camp Casey, South Korea, March 27, 2007. The paladins will be used to support exercise Reception, Staging, Onward movement, and Integration/Foal Eagle 2007. (US Navy photo by Mass Communication Specialist 1st Class Daniel N. Woods) (Released)

Logistics Command and 19th Expeditionary Sustainment Command’s (ESC) Materiel Support Center – Korea (MSC-K) all performed distribution functions in support of USFK requirements from within the same installation. It was apparent there were redundancies in functions and resources dedicated by each organization, resulting in an inefficient use of resources in the USFK distribution mission. In March 2007, the USFK distribution process was analyzed by USFK’s transportation community as part of a Lean Six Sigma enterprise project hosted by the 19th ESC. Its charter was to look at ways to streamline and improve the process, eliminate redundant functions between organizations, reduce costs through efficiencies, and to ensure effectiveness was maintained during a transition to crisis from armistice operations and procedures. The USFK team, including forward deployed National Partners from organizations such as DLA, Air Mobility Command and SDDC, convened to address theater distribution challenges with the goal to document solutions in a new USFK joint distribution regulation. After months of data collection and meetings focusing on the performance of the end-to-end distribution pipeline from CONUS supply sources and distribution hubs for air and surface cargo to support-

February 2010

ed organizations in the Republic of Korea, the team determined that efficiencies could be gained by: 1. Avoiding the practice of building pure pallets at origin, reducing wait time at CONUS hubs, primarily Defense Depot San Joaquin and Travis AFB, and maximizing the availability of frequency channels and vessels scheduled for the ROK theater. 2. Stopping the practice of direct deliveries to customers once cargo arrived in the ROK aerial port or seaport (except for cargo booked for door-to-door delivery service). 3. Reducing from six to one, the number of activities committing trucks for deliveries to the same USFK organizations. Delivering air and surface cargo to the Theater Consolidation and Shipping Point (TCSP) for crossdocking, tagging and distribution to maintain cargo in-transit visibility, reduce the amount of trucks utilized for distribution, and build efficiencies through cargo consolidation and delivery routes with scheduled delivery and pick up times. 4. Leveraging the use of the TCSP as the single distribution hub to accomplish advance manifesting, cross-docking, RFID tagging and distribution to customers

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US Army Spc. Reyna Garcia, a medical logistics specialists with Alpha Company, 16th Medical Battalion out of Camp Carroll, stands guard at the entry point to the medical logistics building during exercise Reception, Staging, Onward Movement and Integration/Foal Eagle 2007 in Waegwan, Korea, March 21, 2007. The annual joint command post and field training exercise demonstrates US resolve to support South Korea against external aggression while improving combat readiness and joint/combined interoperability. (US Air Force photo by Staff Sgt. Nic Raven) (Released)

5. Establishing and documenting simplified processes and procedures to provide the distribution system users and managers enhanced visibility, confidence in the distribution process and metrics to gauge the effectiveness of intra-theater distribution segments. THE PLAYERS The publication of a new USFK Regulation 4-1 emerged as the end state providing joint distribution policy to process owners in USFK, as well as a tool to overcome previously identified distribution challenges. This USFK distribution policy is maintained by the USFK J4 staff as the Joint Distribution Process Owner (JDPO) for the ROK. Theater distribution operations are managed by the 19th ESC as the USFK Joint Distribution Management Agent (JDMA). The USFK J4, in its capacity as Joint Distribution Process Owner, acts as the single point of contact for the development of policies and procedures for the distribution of DoD-sponsored cargo and personnel within the theater. The USFK JDPO hosts USFK Distribution Working Group sessions monthly with supporting and supported organizations to assess trends and arrive at joint solutions to mitigate the effects of negative trends. During a crisis, the USFK J4 Trans staff transitions from its policy and planning roles to establish both the Joint Logistics Operation 14 |

Defense Transportation Journal

Center - Korea (JLOC-K) and the Deployment and Distribution Operations Center – Korea (DDOC-K). The DDOC-K roles include synchronizing the strategic flow of units, unit equipment and sustainment between USTRANSCOM, USPACOM and the operational level distribution efforts, with the Joint Sustainment Command/19th ESC, in its role as Senior Logistics Commander and the theater’s Joint Distribution Management Agent. The 19th ESC is USFK’s Joint Distribution Management Agent and is responsible for overseeing this centrally managed joint distribution process. Specifically, this organization is responsible for: reducing functional redundancies; ensuring the efficient consolidation and distribution of shipments; ensuring continuity of the systems for peninsula-wide asset visibility; and ensuring a smooth transition of Joint distribution operations from armistice to contingency operations. The 19th ESC in its role as the Joint Sustainment Command, is also the proponent for all actions associated with Joint theater-wide distribution, including: the development and maintenance of distribution network plans to support Service Components’ distribution requirements; distribution hub designation during crisis; performance metrics reporting; in-transit visibility; management of modal assets; cargo documentation; and coordination of high visibility movements’ security.

February 2010

The Defense Distribution Depot-Korea (DDD-K) Theater Consolidation and Shipping Point (TCSP), the 837th Transportation Battalion (Surface Deployment and Distribution Command) and the 731st Air Mobility Squadron (Air Mobility Command) organizations operate in direct support of the JDMA for distribution operations. DDD-K conducts theater distribution operations through its Theater Consolidation and Shipping Point (TCSP). Guidance contained in the USFK Regulation 4-1 and collaboration with the Joint Sustainment Command ensures the execution of synchronized distribution plans to meet USFK Service Components’ requirements and the maintenance of flexible distribution plans updated as the battlespace orientation of supported Units change.

“Maximizing velocity is the name of the game, and the partnerships we’ve created with DDDK and 25 TRANS have enabled us to do just that. Through a coordinated effort, we are able to expedite cargo from aircraft to truck in under 2 hours, ensuring valuable assets are in the hands of our customers . . . the warfighter.” —SMSgt STEVE MINARD, 731 AMS THE RESULTS The Korean Theater of Operations (KTO) distribution process is now centrally managed and its performance is continuously

assessed through established metrics and simplified procedures. The establishment of a distribution hub at Camp Carroll’s industrial complex, operated by DLA’s Defense Distribution Depot through its TCSP, has been a success. Distribution of all classes of supply is now centralized and accomplished seamlessly through the collaborative efforts between the TCSP and Materiel Support Center-Korea (MSC-K) for major end items (Army Class VII) at Carroll’s Industrial Center. The established distribution process continues to evolve and improve service to joint forces as it senses and responds to changes in structure and ongoing transformation initiatives. The USTRANSCOM Distribution Network Optimization Process Team (DNOP) was impressed with the simple yet thorough USFK Regulation 4-1 (Korea Distribution) and improvements to the Korean theater distribution procedures during their visit to the Republic of Korea in December 2008 as part of a Pacific wide survey of distribution operations nodes. USFK Distribution Process Owners in collaboration with the US TRANSCOM

DNOP team, continue to look at ways to improve further the effectiveness and efficiencies of the distribution process as it affects not only deliveries to and from the Republic of Korea, but other destinations within the Pacific Region as well. The team’s analysis led to the quick implementation of near term high payoff initiatives such as improving the pick/pack/ship process at CONUS east/west coast GSA supply facilities. Additionally, the analysis facilitated revamping operations to relieve throughput constraints at receiving locations by better synchronizing container delivery and vessel departure times. The team also explored and recommended long term initiatives to further enhance the velocity and effectiveness of the Pacific Region distribution process which include reducing the “cross-country” CONUS transit times for high demand items to reduce delivery times as well as introducing new technology to the RFID network to improve ITV. The Korea Distribution process has improved dramatically with the implementation of the single distribution hub at

Camp Carroll’s industrial Center and the new distribution procedures documented in USFK Regulation 4-1. Improvements such as cargo deliveries from theater air and sea terminals to the TCSP within hours of arrival in country and a reduction in the average delivery time to Supply Support Activities of 3 days for air cargo and 6 days for surface cargo , are some of the most significant accomplishments. Although not a perfect system, the processes and adjustments to the way distribution is accomplished in support of joint requirements, sets conditions within the theater for a seamless transition to contingency operations. Current efforts are underway to integrate technology and improve the intra-theater ITV processes allowing more accurate data collection and analysis of the performance metrics for all segments of the distribution pipeline, from the national level to the Republic of Korea, and down to the last tactical mile. The improvements to USFK’s distribution process are without a doubt a readiness and combat multiplier for all our USFK units, ensuring we are ready to “Fight Tonight”. DTJ

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Throughout the second half of 2009, RFID Journal hosted a series of virtual events designed to share lessons learned from across the industry, culminating in RFID in Defense. The following article provides an overview of the event.

adio Frequency Identification (RFID) is steadily gaining ground as a transformative technology capable of bringing substantial benefits to supply chain and logistics operations in the Department of Defense (DOD). On Dec 15th, RFID Journal hosted the virtual event RFID in Defense, providing a venue for more than 400 registrants to learn from subject matter experts about the advancement of RFID within the DOD and the many deployment programs designed to improve support to the warfighter. The event, sponsored by XIO Strategies, Omni-ID, and Lowry Computer, brought together a distinguished list of speakers to share the status of current projects, considerations in selecting the right RFID equipment, and the benefits DOD is achieving today across the supply chain. The session included presentations from:

• David Blackford: Deputy, Logistics Technology Integration Division, US Transportation Command (USTRANSCOM) • Mary Ann Wagner: President & CEO, XIO Strategies • Andre Coté: CTO & VP of Product Engineering, Omni-ID • Major-General Hawthorne Proctor: United States Army (Ret.) • Ed Coyle: Senior Member, SRA International, on behalf of Defense Logistics Agency (DLA) • Robert Bacon: Program Director, Navy Automatic Identification Technology • Mike Slocum: E3 Assessments & Evaluations, Naval Surface Warfare Center Dahlgren Division • Jeff Tazelaar: Director of RFID Product Marketing, Lowry Computer Products • Mark Reboulet: AIT Program Manager, United States Air Force To kick off the session, David Blackford of USTRANSCOM provided a detailed overview of the 2007 DOD Automatic Identi16 |

Defense Transportation Journal

fication Technology Concept of Operations (AIT CONOPS), including deployment status, as well as an update on how adoption is progressing for active RFID (aRFID), passive RFID (pRFID), and Satellite (GPS) Tracking. Mr. Blackford cited many achievements of the service branches’ current projects, including the Army’s deployment to improve its parachute tracking system from an outdated manual logging system with the use of pRFID tags and the enhanced logis-

Major General Hawthorne “Peet” Proctor (Retired), discussed the potential of passive ultra-high frequency (UHF) RFID as a vital technology for reliable asset tracking in a variety of DOD applications not previously possible. The session focused on how, given recent advances in passive RFID tag technology, active and passive can co-exist to protect customers’ investments in autoID technology. The presenters provided a thorough tutorial about the many consid-

“

It’s the business process changes that accompany RFID implementation that yield the benefits . . . organizations are beginning to connect the edges of the enterprise with logistics information. We really are at the ‘precipice of change’ in which the data that becomes available is going to be a huge enabler to understanding the movement of materiel.

”

—Mary Ann Wagner, XIO Strategies, Inc. tics capability achieved by tracking cargo shipments through Pakistan using GPS. Based on experience across a number of RFID initiatives, XIO Strategies President & CEO Mary Ann Wagner highlighted several programs underway within the DOD. She believes the DOD has been effective in moving through the implementation process in a methodical way, and is now at the “precipice of change”, beginning to achieve a worldwide view of specific, high-value assets. Based on the successes of programs to date, and despite considerable financial constraints, the DOD continues to demonstrate significant operational savings through expanded use of RFID. However, she cautioned against believing that RFID, or any technology, will be a cure-all for logistical challenges, clarifying that “business process mapping is key to identifying where benefits can be achieved.” In the segment “Why Passive RFID Makes Sense for DOD Asset Tracking and Logistics Applications”, co-presenters Andre Coté, CTO of Omni-ID, and US Army

February 2010

erations DOD customers need to make in selecting the right RFID technology and tag for their application, including the expected lifespan of the tag, the environment, read-distance requirements, the movement of assets between facilities and geographic locations, and cost. Specific programs discussed included container and cargo tracking applications currently being deployed by the US Marines. On behalf of DLA, Ed Coyle of SRA provided insight into that agency’s approach to RFID deployment, reiterating the importance of enterprise-wide planning at the DOD level to improve support to the warfighter. He explained that the Center for Excellence at San Joaquin, CA is a three-stage concept that is crucial to the DLA implementation strategy, and includes: 1. Planning and Assessment – map process; test/evaluate; plan for deployment 2. Deployment – implement; tailor to site-specific requirements; monitor implementation

3. Information Sharing – collaborate with other services/agencies; build vendor partnerships, identify best practices According to Mr. Coyle, DLA is focused on improving asset visibility of goods in transit and has already achieved a 7% improvement in receipt processing though the use of pRFID at San Joaquin. Furthermore, DLA sees several opportunities to improve end-to-end visibility through the use of RFID, particularly in the Depot Shipping and Customer Receiving processes, as illustrated in the below table:

Primary RFID Opportunities within DLA Depot Shipping • Intra-depot visibility • Optimize materiel routing • Positive shipment confirmation • Improve accountability

Customer Receiving • Expedite receipt processing • Reduce/eliminate manual data entry • Reduce processing errors

The US Navy presentation, delivered jointly by Robert Bacon of Navy AIT and Mike Slocum of the Naval Surface Warfare Center Dahlgren Division, focused on the progress Navy is making to RFIDenable its operations and significantly enhance productivity, while reducing operating and inventory costs. The Navy’s passive RFID program, which began in earnest with a deployment under a joint DOD initiative in Oahu, HI is expand-

ing rapidly to include plans for more than 100 Advanced Traceability and Control (ATAC) and commercial maintenance sites within the US Navy’s repairables supply chain. Along the way, the Navy has tackled challenges including network connection restrictions, system design approvals, and annual compliance reviews. Mr. Bacon then identified that the next step is to deploy overseas, where many sites are supported remotely and oper-

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We demonstrated that we can “deploy passive RFID in a HEROsafe manner, but the extent to which we deploy that is going to depend on the business case . . . do we want container visibility or pallet visibility? . . . Those are the questions we’ll be wrestling with in the months to come.

”

—Mike Slocum, Naval Surface Warfare Center, Dahlgren Division ate with a “skeleton crew”, bringing their own set of unique challenges such as: • RFID Reader frequency restrictions • Network connectivity and bandwidth constraints • Wireless restrictions • Host nation approvals • Changes to Authority-to-Operate approvals • Last nautical mile challenges

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Defense Transportation Journal

Mr. Slocum provided an update on the September 2009 testing of pRFID onboard the USNS Lewis & Clark under the Joint Direct Attack Munitions (JDAM) InTransit Visibility (ITV) Proof of Concept to demonstrate Hazards of Electromagnetic Radiation to Ordnance (HERO)safe shipboard use of pRFID. Among the tagged assets in the project were a torpedo container, 500lb bomb rack, and a pallet of liquid supplies. After thorough testing in both the portside clearway and cargo hold, it was determined that HERO-safe implementation of pRFID in a shipboard environment is possible—an important finding that could profoundly impact the ability for the Navy to deploy RFID deeper into their supply chain. Although the majority of the event focused on supply chain programs and benefits, the presentation from Jeff Tazelaar of Lowry Computer Products gave a healthy reminder that there are other operational benefits of RFID deployment. While the firm’s customers have benefitted greatly in warehouse management and maintenance, he also cited significant opportu-

February 2010

nities in Document Archive/Management and IT Asset Management. Air Force AIT Program Manager Mark Reboulet was the final speaker of the day, and discussed his organization’s effort to deploy RFID to achieve two primary objectives: (1) Track critical assets moving through the supply system under Positive Inventory Control (PIC), and (2) Support DOD’s pRFID CONOPS Plan. Mr. Reboulet described the Air Force strategy of layering the marking technologies—pRFID, Barcode and 2D Datamatrix on all critical assets. The reason is that there are applications and processes in which pRFID cannot currently be used, thus allowing the Air Force to use the ‘right’ technology as the asset moves through the supply chain. The supply chain was described to be from Transportation, to a Munitions Area, to a Base Distribution Area, and all the way to Maintenance, having ‘chain of custody’ of each individual asset during its use. Furthermore, Mr Reboulet described the use of a Transfer Agent (middleware) that essentially takes an ‘event’ or transaction and converts continued on page 32

be the Federal government’s commitment to maintain a commercial maritime industry to meet the needs of the nation. To maintain the existing US-flag commercial fleet and lay the foundation for future growth, a broad range of actions must be taken. First, we must ensure that existing maritime policies and programs operate as intended and, concurrently, that the industry and policymakers act on broader reforms. On the commercial side, these reforms include: by VADM Albert J. Herberger, USN (Ret.) Keynote remarks delivered at the IMPACT Conference, sponsored by the CCDoTT September 30, 2009

The Center for the Commercial Deployment of Transportation Technologies (CCDoTT) is a California State University, Long Beach sponsored, government approved and supported R&D center dealing with maritimerelated transportation issues on behalf of both commercial and military interests. This year’s IMPACT 2009 Conference was themed, “Transforming Today’s Maritime Transportation for Tomorrow.”

espite our maritime heritage, the US is no longer a global leader in maritime transport or shipbuilding. And we are increasingly outgrowing our ports, highways and rail systems. Our coastlines have become an underutilized asset. Our nation’s industrial base is weakening as a result of skilled personnel shortages and low production, throughput and lack of investment. It is a bleak picture, indeed. If you are an optimist, this may be regarded as an opportunity. But there is another critical aspect on the decline—Maritime R&D. Current maritime research, development and innovation, within both government and industry sectors, fall short of the progress we have achieved over the course of our history. As we strive to improve and modernize maritime capabilities, our focus should be on applying technology as an enabler to that end. Without that, what opportunities and improvements will we miss? My remarks center on maritime policy, although I believe other modes of transportation face similar challenges. I will also address current sea services initiatives and programs. US maritime policy, overall, has been inconsistent. Even though water transportation has always been vital to our well being in international trade, national defense and domestic economic expansion, our US maritime policy has followed an approach of “feast or famine” in response

to changing needs and priorities throughout history. Initiatives that once generated strong action and support were often followed by long periods of near abandon. When you consider that we are a maritime nation, the greatest global trading partner with a highly successful maritime history, in peace and in war, this on again/ off again policy pattern is a paradox. It seems that major policy initiatives are enacted when conditions are extreme and not before, in spite of warnings and recommendations for corrective action. Since the end of WWII, US international trade has grown dramatically, yet all that volume growth went to foreign ships. While other countries’ maritime policies, including tax and shipbuilding policies, encouraged investment in new shipping tonnage to capture the growing trade, our own spotty policies barely sustained a fleet of sufficient size to carry the same quantity of cargo today as we did 40 years ago. The Future International and domestic fleets, along with revitalized ports and waterways, can be vital components of our transportation system and indispensible elements of our national security capability. The industry’s challenges and opportunities are many and must be aggressively pursued. Unfortunately, there will be no specific “enduring national maritime policy.” There will

• Increased research and development • Increasing attractiveness for private investment • Changing the basis for maritime tax policy • Removing institutional impediments to new policies • Meeting the competitive threat of “not-for-profit” merchant fleets. On the national security side, the role commercial industry plays in support of military services is evolving. To understand the future, we must focus on trends within the sea services. The most far reaching are efforts to modernize and expand capability at a difficult time given the demands and compression of the Federal budget. Following are some specifics that will impact commercial maritime support and also a number of initiatives that will need substantial R&D according to individual service branches: NAVY The Shipbuilding Account (SCN) for FY2010 is $13 billion earmarked for 45 ships, half of which are small Littoral Combat Ships (LCS); no new type of ship is slated, except for a tug. But in order to grow the Navy’s fleet from 286 ships (present count) to a fleet of 313, $20 to $23 billion per year for the next 5 years is needed. These are the current issues and undertakings facing the Navy: • The 11th keel for a TAKE combat logistic ship has just been laid; 14 ships are in the TAKE Program pipeline • Mobile Logistics Platform (MLP) changing from combined barracks and heavy lift vessel to heavy lift only • T-5 tanker replacements, (OPDS) Offshore Petroleum Discharge Ship • With the Navy’s emphasis on irregular warfare, patrol craft and riverine warfare craft are in the forefront www.ndtahq.com | 19

• Increased humanitarian missions • The Navy’s role in anti-piracy operations • Energy and Green Initiatives – $100 million are added to Navy’s budget for bio-fuels for ships and planes, ashore thermal power, reduction of fossil fuel dependence and greenhouse gases MARINE CORPS Expansion of the amphibious force is the major challenge facing the Marine Corps. The current fleet includes 20 large ships, not enough to meet the demands of increased irregular warfare missions. The Expeditionary Fighting Vehicle (EFV), which can be launched 25 miles offshore, can help with that objective but the down side is considerable time is lost in the traditional “from the sea” expeditionary warfare capability. Other hurdles: • The concept of Seabasing is not making great strides; it is just inching along. Costs need to be reduced in order to boost the program. • Over weight equipment and vehicles require sea transport. If weight is reduced, airlift can be considered. New Pentagon priorities are shaping the Navy and Marine Corps with a shift from hi-tech weapons to more basic arms and systems that can be deployed quickly. Deployment velocity is the major DOD goal, meaning end-to-end transportation is equally important as the speed of the vessels. COAST GUARD The Coast Guard’s greatest need is to recapitalize their fleet and aircraft in response to increased missions in the Arctic and off the coast of Africa against pirates. In addition to law enforcement, and traditional safety and rescue operations, the Guard also deploys to maintain security in the US and overseas. The Guard also needs to emphasize R&D on the front end of the acquisition process and operational testing. US-FLAG MERCHANT MARINES A strong commercial US-flag Merchant Marine is more critical than ever in today’s uncertain world. The ability to access this maritime capability of ships and skilled seafarers to augment military assets is essential to our national and economic security. Ninety-five percent of the equipment and 20 |

Defense Transportation Journal

supplies required to deploy the US armed forces is delivered by ship. US-flagged and government-owned vessels, manned by more than 8000 US citizen mariners, continue to play a significant and indispensible role in strategic sealift support for Afghanistan and Iraq operations. In an Irregular Warfare environment, with increased requirement to support and sustain special operations forces, maritime coalition forces and Expeditionary Strike Groups (ESGs), the military will need a substantial logistics

Roughly, one quarter of the world’s trade flows through United States ports. Our economic prosperity is dependent on international trade, of which 95 percent, by volume, moves by sea. force and commercial sealift capability. Intheater afloat, prepositioned war-fighting capabilities for immediate employment will require a variety of Navy and commercial vessels including connector vessels to support Sea Bases, Global Fleet Stations and expeditionary or humanitarian assistance/ disaster relief operations. But, even as the United States’ need for reliable and efficient, safe marine transportation continues to grow in domestic and international trade, the base of skilled US mariners is shrinking. This diminishing pool of skilled seafarers presents a crisis that threatens the nation’s ability to project timely action with the need for both commercial fleet and Navy’s organic fleet with civil mariners. The US commercial fleet includes the 60 ships in the Maritime Security Program (MSP) and the 133 ships provided by the Voluntary Intermodal Agreement (VISA). These ships’ persistent global presence and robust intermodal capability, have been the major contributors in providing critical strategic sustainment sealift. The Maritime Administration’s (MARAD’S) Ready Reserve Force (RRF) and the Navy’s Military Sealift Command fleet, sized to support DOD surge and special mission requirements include Roll on/Roll off (Ro/Ro), heavy lift, offshore petroleum

February 2010

discharge, auxiliary crane, aviation logistics support vessels and hospital ships. In Conclusion Maritime Transportation contributes more than $10 billion per year to the economy. The US Marine Transportation System (MTS) consists of waterways, ports and their intermodal connections, vessels and vehicles crucial to the US economy. As the world’s trade leader, the US requires a technologically advanced, secure, efficient and environmentally sound MTS. The MTS annually moves more than 2.3 billion tons of domestic and international cargo worth $2 trillion through 360 public and private ports and 25,000 miles of waterways. Additionally, 3.3 billion barrels of oil is imported to meet our energy demands. Ferries transport 180 million passengers along with the movement of more than 7 million cruise ship passengers. This industry employs 13 million people, including 60,000 water transportation workers and 36,000 mariners. In this pool of mariners, 8000 are qualified to crew DOD sealift ships. The US domestic fleet of over 38,000 vessels is a $48 billion investment. Roughly, one quarter of the world’s trade flows through United States ports. Our economic prosperity is dependent on international trade, of which 95 percent, by volume, moves by sea. Any disruption in this global supply chain would have a serious negative impact on the US economy and consequently, our national security. Freight flowing through our nation’s ports and waterways will increase by 50% by 2020. The volume of international container traffic is expected to double, creating greater congestion on overburdened land, port, water, and passenger and freight delivery systems. To address this, the MARAD has created Gateway Offices in 10 key United States ports to work with Federal, State and local organizations to reduce congestions and address environmental problems in the ports and waterways. Only a truly seamless, integrated, multimodal transportation system with an expanded Marine Highway System and freight movement will meet the nation’s growing needs. The system should now include the Arctic area to use the navigable waters around and in the sea ice drifting in the warming Arctic Ocean. DTJ

ASSOCIATION NEWS* 2010—Year of the Young Professional Throughout 2010, NDTA will celebrate junior logisticians who work in corporate settings and in combat zones. Watch for articles and interviews in the Defense Transportation Journal and in the NDTAGram, and special programs like the A-35 Mentoring Program scheduled for the SDDC Symposium March 8-10, 2010 in Atlanta, Georgia. NDTA has also launched a new membership drive targeting junior members (A-35’ers) who will bring talent, energy and enthusiasm to NDTA Chapters and NDTA Events. Details appear below. With you on the “A(35)-Team,” NDTA will shine much brighter! The Next Generation of Defense Logistics NDTA launched the Next Generation Membership Drive on January 1, 2010! It targets young professionals from commercial, government and military sectors who will help us carry on our vital mission into the future. The Next Generation Membership Drive will continue through May 31, 2010. Most recruiting happens at the chapterlevel where time is provided at meetings to introduce new members and to engage them in activities and events. Our young members bring talent, energy and ideas to our Association, so it’s a Win-Win all the way around! In the end, chapter success is measured by New Recruits (thanks to membership drive efforts) and also by Member Retention (thanks to educational programs and career growth opportunities). Individual Recruiter of Young Professional (prizes based on number of A-35 members recruited): • 1st Prize: NDTA Life Membership or a FREE 2010 Forum Registration (including 1 Guest) • 2nd Prize: FREE Trip to Destination of Choice (Continental US) courtesy of Southwest Airlines • 3rd Prize: Kindle Reader

*Some articles have been condensed due to limitations in space.

drive points through recruitment and retention will receive $500 to use as it sees fit at the end of the contest. OFFICIAL RULES Credits For Individual Recruiters • One Credit for each new member in the A-35, Military A-35, Government A-35, and Student Categories. No other categories count for individual recruiting credit. • Individual credits for new members will be awarded based on the sponsor shown on the membership application form (there will be no individual credits awarded for membership renewals). Sponsors must be NDTA members. If the name of the sponsor is not shown on the membership application form, no credit will be awarded to an individual. (NOTE: a “New” member is a person who has not been an NDTA member within the 12 months prior to enrollment) All credits will be awarded based on NDTA Headquarters records. Credits for Chapters • One Credit for each Renewal (Regular, Government, Military, A-35 or Student) • One Credit for each New Member (Regular, Government, Military, A-35, Life, or Student)

• The chapter membership baseline, which determines the Chapter Category, is the chapter strength as of 1 July 2009, is attached to this memorandum. Note: Chapters do not change categories during the Membership Drive; they remain in the categories they were in as of 1 July 2009. Categories • Category I: 100 or less members • Category II: 101-200 members • Category III: 201 or more members Twofer Rules for all Categories is in effect for the Next Generation Membership Drive • Sign up a new paying member in any category (Regular, Military, Government Civilian, A-35, Retired, Student, or Life) and match it with another new member in any category except Life (obviously), and that second new member gets a free one-year membership. • The applications must come in together with each clearly marked as a “Twofer” • There will be no alibis – no going back and picking up twofers on memberships submitted earlier • Renewals do not count – both the paying and the free membership must be new members DTJ

save the date SDDC Tra ining

Symposium March 8 & NDTA E 1 0 Atlanta, G , 2010 xpo eorgia 64th Annu and Logist al Transportatio September ics NDTA Forum n & Expo 18 - 22, 2 Wash ington, DC

010

The Chapters (one per Categories I, II, III) accumulating the most membership www.ndtahq.com | 21

INDUSTRY NEWS*

*Some articles have been condensed due to limitations in space.

>> You’ll find Industry News each month in the NDTAGram. Check online for current and archived issues. www.ndtahq.com <<

Associated Global Systems (AGS) Associated Global Systems (AGS), a full service transportation and logistics provider, is pleased to announce that it has been named as an approved GSA Schedule carrier. The GSA approval was awarded based on AGS’ value in terms of cost, quality and service for federal agencies and taxpayers. AGS’s Government Service Program is designed to provide DOD and GSA shippers with customized and economical solutions to all transportation and logistics needs including: a full range of domestic and international time-definite deliveries, warehousing, inventory control, recovery and return, import management and incoming freight services. All services are supported by valueadded selections such as two man delivery teams, complete packaging, after-hours/ weekend delivery and in-transit merge. The AGS technology group has also developed a number of solutions that make government transportation fast, easy and cost effective. Shippers can utilize myags. com, a state-of-the-art customer info net that combines the essential tools of freight management with today’s most sophisticated technology. Directly from a PC, government customers can initiate shipments from an easy-to-use web entry screen, track shipments in real-time and print customized reports. Additional features include personalized proof of delivery notification, open shipment reports, service level analysis and transportation links.

Crowley Maritime Corporation Crowley Maritime Corporation, working under contract with the US Transportation Command (USTRANSCOM), successfully discharged 202 20-foot containers of relief supplies across a beach in Port-au-Prince, Haiti January 28th marking the largest post-disaster lightering operation to date. This successful, larger scale operation follows a trial shipment of 12 containers last week. Crowley is also mobilizing two 400-footlong, 100-foot-wide flat deck barges, along with two Manitowoc 230-ton crawler cranes in the United States for USTRANSCOM that will be brought into Port-au-Prince to serve as a makeshift dock for future cargo operations. The first barge and crane departing Orange, Texas should arrive in Haiti on or about February 4. The second barge is being outfitted in Lake Charles, Louisiana. and should arrive by mid-February. While Crowley has suspended its regularly scheduled commercial cargo services to and from Haiti, a Crowley customer service group has been formed to answer questions and assist the shipping public interested in getting relief goods into Haiti. All inquiries should be made to 1-800-490-3321. Due to the unstable situation in the country, no relief cargo bookings will be accepted without being qualified by this Haiti Team customer service group.

Pacific Surface Movement Conference Hosted by the 599th Transportation Group (SDDC)

April 27-29

•

Waikiki Marriott

Surface transporters, customers and carriers are all welcome. For questions about the conference e-mail 599PacConf@shafter.army.mil. To sign up for the conference, go to the SDDC Web site at www.sddc.army.mil. Attendance is limited to 300 participants, so sign up soon. Carriers and other transportation vendors are invited to exhibit their latest lines the last afternoon of the conference. To reserve a table, please e-mail 599PacConf@shafter.army.mil.

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Defense Transportation Journal

Horizon Logistics, LLC Horizon Logistics, LLC, the third-party logistics management subsidiary of Horizon Lines, Inc., has introduced a lessthan-truckload (LTL) shipment rating engine for domestic US shippers. The new LTL rating engine is designed to ensure price consistency, effective carrier benchmarking and competitive pricing by eliminating the cost adjustments most carriers make to compensate for lane imbalances. The company’s LTL rating structure is uniquely configured to offer customers not only cost-effective pricing, but also multiple service options. The ultimate objective is a lower total cost of transportation for Horizon Logistics’ customers. Once rates are provided, shippers can use the system to automate carrier selection, bill of lading generation, load tendering and shipment tracking. The secure system is highly configurable, simple to use and accessible via the web at anytime from anywhere in the world. Horizon Logistics customers also can generate shipment reports instantly in a variety of formats including Microsoft Excel. “Most shippers don’t have the time or the resources to figure out the complexities inherent in LTL pricing within the US,” said Brian Taylor, President of Horizon Logistics. “They need a tool that provides a reliable, always competitive rate with visibility and control throughout the shipping process.” Introduction of the LTL rating engine marks another phase in the development of Horizon Logistics’ transportation management system for customers. The company implemented an international ocean shipping and purchase order management portal earlier this year. Further development is planned for 2010.

February 2010

Transportation Intermediaries Association (TIA) Transportation Intermediaries Association (TIA), the professional organization of the $162 billion third-party logistics industry, has granted 27 industry professionals the designation of “Certified Transportation Brokers”

(CTB). “The CTB designation truly distinguishes brokers in today’s competitive transportation marketplace,” said TIA President and CEO Robert Voltmann. “CTB is the mark of respect for transportation intermediaries. Congratulations to this latest group of Certified Transportation Brokers.” This program was created in 1986 to significantly increase the professionalism and integrity of property brokers. The CTB program tests the knowledge of participants on brokerage, ethics, contracts,

pricing, legal and regulatory requirements, as well as the latest trends in transportation and business management. While 51 persons took the examination only 27 passed which shows the rigorous nature of the test. Participants must earn at least five candidate points, which are based on professional experience and education to be eligible to take the examination. The participants must also have at least one year of experience working as a broker. Candidates may earn additional

GOVERNMENT NEWS* USTRANSCOM US Transportation Command served as host to the recent interim US Central Command Operation Iraqi Freedom/Afghanistan force flow workshop where planners discussed the plus-up of forces deploying to Afghanistan and the redeployment of forces from Iraq. The week-long session, held December 14 to 18 at Scott AFB, IL, focused on transportation sequencing and priorities. “Our job is to make sure we’re thinking through the process and provide the warfighters in Afghanistan options to get them what they need when they need it,” noted Gen. Duncan McNabb, commander, USTRANSCOM, speaking to media in early December. In addition to USTRANSCOM planners, representatives from US Central Command, US Forces Command, US European Command, US Pacific Command, Army Forces Command, Multi-National Forces-Iraq, US Forces Afghanistan and the DLA attended the workshop. “USTRANSCOM uses information from the workshop to determine the best mix of commercial or military surface and air transportation to execute the missions. We will host an additional planning conference in the coming weeks to synchronize the planned, pending, and yet to be determined force flow requirements,” said Marine Lt. Col. Jens Curtis, operations officer, East Division, Operations and Plans Directorate. On Dec. 1, during an address to the cadets at West Point, President Obama’s

CTB eligibility points if they have completed formal education such as being granted a Bachelor’s or a Master’s degree. TIA also offers an online CTB Home Study Course that lasts for a period of up to 17 weeks in addition to sponsoring the examination. The course, which entails rigorous study, helps to prepare those individuals who are seeking CTB certification to prepare for the examination. More than 1,400 participants have earned the much sought after CTB designation. DTJ

*Some articles have been condensed due to limitations in space.

announced the deployment of additional forces into Afghanistan. A vital part of this, or any deployment, is the logistics of moving people and equipment where needed. That’s where USTRANSCOM comes in. “We came away from the workshop knowing we could do the operation, with chal-

lenges, but would need weekly and sometimes daily prioritization decisions from USCENTCOM. We want to definitely get the highest-need items to the warfighting units early so they can effectively begin their operations,” said Army Lt. Col. John Kaylor, operations chief, East Division.

2010 SDDC Symposiu 2010 SDDC Training Training Symposium

“Deployment anD Distribution inand an NDTA enterprise Expoenvironment

SDDC

Miltary Surface Deployment and Distribution Command

Atlanta Marriott Marquis - Atlanta, Georgia March 8-10, 2010

“Deployment and Distribution in Register at an Enterprise Environment”

www.sddcsymposium.org | igHligHts Atlanta Marriott Marquis H Atlanta, Georgia

Monday, March 8 Registration, Tack-On Meetings (TBA), Welcome Social Tuesday, March 9 Opening General Session, Exhibits, Functional Breakouts Wednesday, March 10 General Session, Exhibits, Functional Breakouts, Symposium Banque Thursday, March 11 and Friday, March 12 Tack-On Meetings (TBA)

March 8-10, 2010

re gister: www.sddcsymposium.org Monday, March 8 Registration, Tack-On Meetings (TBA), Welcome Social

Global Surface Transportation Experts...

Committed - Dependable - Relentless! Tuesday, March 9 Opening General Session, Exhibits, Functional Breakouts

Wednesday, March 10 General Session, Exhibits, Functional Breakouts, Symposium Banquet Thursday, March 11 and Friday, March 12 Tack-On Meetings (TBA) Global Surface Transportation Experts . . . Committed - Dependable - Relentless!

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Joint Task Force Organizes Haitian Airport – PORT-AU-PRINCE, Haiti, Jan. 28, 2010 By Jim Garamone, American Forces Press Service When a disaster strikes, people assume it should be easy to get relief supplies in. But it’s not always a simple proposition. Can the airport’s runway support the weight of cargo aircraft? What is the security situation like? What equipment does the airport have for unloading and loading? How many people and the means to support and supply them will be needed? All of these questions and more are in the realm of Joint Task Force Port Opening at Toussaint L’Overture International Airport. The unit, operating under US Transportation Command, opened the airport after earthquake hit Haiti and has been responsible for operations on the airport’s ramp since then. The task force contains the Air Force’s 621st Contingency Response Group, from Joint Base McGuire-Dix-Lakehurst, NJ, and the Army’s 688th Transportation Detachment for rapid port opening from Fort Eustis, VA. The disaster in Haiti marks the first time “the whole enchilada” has been used in an operation, said Air Force Col. Patrick Hollrah, the task force commander. “Something of this magnitude takes the whole team to make it happen.” The unit was the second one on the ground after the Air Force Special Operations Command team. Aircraft parked where they could and crews improvised the unloading process. That caused confusion beyond belief, the colonel said. Relief supplies got intermixed and trucks drove straight down the ramp to load supplies. “We started working in tandem [with the Air Force special operations team] to get airplanes unloaded so they could get off the ramp to clear off parking spaces so more airplanes could come in,” Hollrah said. It was a short time from order to execution, so the team surveyed the area on the flight down to Haiti and had an idea of how they wanted to set up the unit. “The biggest challenge was the volume of air traffic, volume of vehicles and the volume of people on an airport ramp,” he said. “Anywhere else, a ramp is a restricted area. Not here.” The unit is trying to get control of the safety and distribution parts of the equation, but it is slow going. “Eventually, we’ll get

back to a point that improves safety and allows the traffic to flow where it needs to when it needs to,” Hollrah said. “It will also make the unloading and distribution process faster.” Aerial port airmen unload the aircraft and move the goods off the ramp. Army vehicles take the goods and move them to a forward distribution node, about a mile away. “This opens up the ramp space and stops having trucks drive right on the ramp to pick up supplies,” said Army Maj. Vicky Snow, the 688th commander. The soldiers stack the goods and, using rough-terrain forklifts, load trucks from governmental and nongovernmental agencies. By far, the most goods in the supply yard belong to the US Agency for International Development, which is responsible for picking up the relief supplies and distributing them. That process is moving smoothly. Nongovernmental agencies also pick up their goods at the yard, and this can be more of a problem. In one case, someone donated a plane to airlift supplies to the effort, and several organizations placed goods aboard it without tracking numbers, or even labels. “Separating these out and ensuring they go to who they belong to can cause problems,” Snow said. “In other cases, they don’t have the right trucks to load with a forklift, so we have to break down the palettes and load [the vehicles] by hand. This takes time.” These are small units. “We have all our people cross-trained, and everybody pitches in to ensure the mission gets done,” Hollrah said. “We’re a bridging force that can come in quickly to get the process started. Then we turn the responsibility over to government or non-governmental agencies.” The unit not only handles supplies coming in, but also helps the State Department with refugees getting out. Before the earthquake, the airport saw 30 flights on a busy day, and those were mostly during daylight. At its peak, since the disaster, the airport received 120 flights per day 24 hours a day. The most recent statistics show the airport has handled at least 12 million pounds of relief supplies, and this does not count critical supplies that medical and relief personnel brought with them. The joint task force will continue until its services are no longer needed, Hollrah said, or until the mission is taken over by other organizations.

Left: Soldiers from the 82nd Airborne Division’s 1st Squadron, 73rd Cavalry Regiment, pass out meals to women and children in Port-au-Prince, Haiti, January 16, 2010. The squadron established a forward operating base at an abandoned and damaged country club near the US Embassy. A survivor camp of thousands is situated near the base. DOD photo by Fred W. Baker III. Middle: A C-130 Hercules transport lands as Air Force aerial port personnel move cargo at the airport in Port-au-Prince, Haiti. US Air Force photo by Capt. Dustin Doyle. Right: USNS Pililaau. US Army photo by Sgt. Stephen Proctor, JLOTS Public Affairs

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As a result of the interim force flow workshop, combatant commanders will have greater confidence in the Defense Transportation System, knowing when, where and how military and commercial logistics solutions will meet their current and future transportation requirements. One axiom of transportation holds that with more time for planning, fewer items need to be transported by air. With the plus-up units, the planning cycle is compressed and up to twice as much cargo needs to be airlifted versus over surface routes on ships and trucks. USCENTCOM, as the combatant command for Afghanistan and Iraq, decides which items will get to Afghanistan the quickest. So far, under the president’s orders, 1500 Marines from Camp Lejeune’s 2nd Marine Division have already deployed into Afghanistan from North Carolina. Other units announced for deployment this spring include 6200 Marines from Regimental Combat Team-2, Camp Lejeune; a Marine Expeditionary Force (Forward) headquarters of 800 Marines from I Marine Expeditionary Force, Camp Pendleton, CA; a Brigade Combat Team with about 3400 soldiers from the 1st Brigade, 10th Mountain Division, Fort Drum, NY, as well as approximately 4100 support forces. In addition, several Army brigades, a total of more than 11,000 soldiers, have already received orders to replace units supporting NATO’s International Security Assistance Force in eastern and southern Afghanistan. USCENTCOM will work with USTRANSCOM to prioritize and sequence these deployments in addition to the forces added by the plus-up. The units that received orders are: 1st Brigade Combat Team, 101st Airborne Division, from Fort Campbell, Ky.; 2nd Stryker Cavalry Regiment from Vilseck, Germany; and 2nd Brigade Combat Team, 34th Infantry Division, Iowa Army National Guard. They will deploy to Afghanistan from now through fall.

NOLSC As this issue of the DTJ goes to press, NDTA and Naval Operational Logistics Support Center (NOLSC) report that the

Symposium they co-hosted in Norfolk, VA (26-28 Jan) was a GREAT success. Attendance exceeded all projections— over 450 persons joined “Operational Logistics: Accelerate Your Future” at the Waterside Marriott Hotel. In addition to augmenting skill sets through professional break out sessions, attendees gained insight into Navy logistics and supply chain practices including updates on relief efforts in Haiti. In particular, presentations by RADM Mark Heinrich, USN who commands Fleet & Industrial Supply Centers (COMFISC) and Mr. Jeff Ackerson, Strategic Concept Developer, for TRANSCOM’s Joint Concepts and Experiments Branch (TCJ5/4-TC) offered a framework for Haiti operations. Seven supply centers [Jacksonville; Norfolk; Pearl Harbor; Puget Sound; San Diego; Sigonella; Yokosuka], fall under COMFISCS direction to provide supply chain management, transportation services and logistical support to theaters around the world. As a component of the Naval Supply Systems Command (NAVSUP), COMFISCS is part of a global logistics network of more than 25,000 military and civilian personnel. Within days of the 7.0 earthquake that struck Haiti on January 12th, logistics pros from FISC Pearl Harbor volunteered to help with relief operations underway in the Caribbean; and FISC Jacksonville, partnered with Commander Task Force 43, as an advanced logistics support site. FEMA’s center for relief supplies to Haiti is via Homestead Air Reserve Base. TCJ5/4-TC supports the overall mission of the Concepts and Logistics Division of USTRANSCOM to develop, assess and implement deployment and distribution capability solutions. The group also conducts studies, tests, and experiments to support concept development and implementation. TCJ5/4-TC annually holds the Joint Logistics Over-the-Shore (JLOTS) exercise, which increases the Army’s and Navy’s ability to build improvised ports for transporting equipment from ship to shore when a harbor or pier has been damaged or is nonexistent. The TCJ5/4-TC briefing at the NOLSC | NDTA Symposium demonstrated that JLOTS exercises prepare military personnel for actual mission capability. A current JLOTS mission is for relief efforts in Haiti where port damage is severe and floating causeways and ex-

tended ship-side piers will be installed to expedite the delivery of supplies. Disasters may be the ultimate proving grounds for logistics capability. Situations are definitely harder to manage because planning is on the fly and people on the receiving end are already past the need for mere help. This is what tests logistical skills and abilities. All attendees were grateful for the knowledge provided through the NOLSC and NDTA Logistics Symposium. Likewise, all share genuine concern for the people of Haiti and are willing and able to assist if called upon. DTJ

>> A full wrap up of the NOLSC/NDTA Logistics Symposium will appear in the Almanac issue, April 2010 and will include remarks from an impressive line up of keynote speakers. Captain Raymond J. Rodriguez, USN Commanding Officer, Naval Operational Logistics Support Center (NOLSC) RADM Kathleen Dussault, USN Dir, Supply, Ordnance & Logistics Operations Div (OPNAV N41) Mr. Jeff Ackerson Strategic Concept Developer, TRANSCOM Joint Concepts and Experiments Branch (TCJ5/4-TC) RADM Michael J. Lyden, USN Commander, NAVSUP and Chief of Supply Corps RADM Mark Heinrich, USN Commander, Fleet & Industrial Supply Centers Mr. John Hall, SES Executive Director of Operations & Sustainment (J-31) Defense Logistics Agency Ms. Sindhu. P. Kavinamannil, CFE CEO, Compliance Consulting Services Mr. Sam McCahon Special Counsel, Litigation & Compliance, Agility Ms. Lisa Roberts Acting Deputy Under Secretary of Defense for Transportation Policy, Office of the Secretary of Defense

NDTA’S Annual Travel & Transportation Survey Lee Jackson Dell Perot Systems

On behalf of the National Defense Transportation Association (NDTA), Dell Perot Systems conducted the 2009 Travel and Transportation (T&T) survey. The travel and transportation industries are being challenged during this time of increasing demand and decreasing resources. Contributing to this are the major challenges the industry is facing in terms of securing our nation’s travel and transportation systems and addressing our nation’s deteriorating infrastructure. The objective of the survey was to identify the major issues and challenges the T&T community was faced with which have an impact on their ability to succeed and to establish a travel and transportation issue baseline from which to monitor program developments and issues. NDTA intends, working cooperatively with Dell Services, to conduct an Annual T&T Survey and present the results for the benefit of NDTA members. EXECUTIVE SUMMARY A major goal of the survey was to identify the key factors and management initiatives which drive performance and success. Survey respondents represented a broad cross section of travel and transportation providers and consumers from the government, commercial and academic communities. The 2009 T&T survey identified several areas of concern unique to either Travel or Transportation, but also highlighted some commonality in the underlying institutional factors that are performance enablers. In the Travel area, a significant number of the survey respondents were satisfied with options provided in the Travel programs that assist them in receiving better travel services and help make their travel experience less stressful, more comfort26 |

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February 2010

able and with as much flexibility as possible. However, some of the respondents identified some travel programs which need improvement. Survey respondents to the Travel portion of the survey believed factors which impact performance such as Technology/Procedures (Business Processes), Policy Mandates and Compliance/Loyalty Programs require further examination. Improvements to programs such as these will result in travelers becoming increasingly loyal to these programs and will lead to improved program performance. In the Transportation area, Safety was identified as the #1 program area which impacts an organization’s ability to succeed. The safety of drivers, vehicles and operations was considered to be a high priority for organization’s responding to the survey. However, respondents stated it was difficult to incorporate new technologies and systems which support safety and efficiency of operations because of the current economic climate. In the current environment, which is becoming increasingly competitive due to rising fuel costs, increasing demand, diminishing resources and services, companies are being asked to do more with less. PERFORMANCE DRIVERS In the travel industry, the state of the economy has had a great impact due to increased fuel cost and job loss. Higher fuel costs have forced many airlines to adopt business rules which eliminate certain flights or reduce the size of aircraft for certain routes, eliminate some services or charge extra for previously complimentary services. Increasing fuel costs also result in higher air fares which make it difficult for some airlines to operate and cover their expenses. Business travel has been reduced in an effort to cut expenses and have been replaced by teleconferencing and video conference meetings. In addition to the impact of technology and business rule changes, several respondents believed ancillary services, such as baggage fees, blankets and pillows, have also been major performance drivers which impact their operations. Similarly, the transportation industry has been faced with increasing fuel costs which directly impact their bottom line. In addition to the job losses experienced in transportation due to the layoffs required based on

businesses restructuring in order to remain competitive, the demand for more streamlined, efficient operations at a lower cost has resulted in many businesses closing, consolidating their operations or partnering with previous competitors in order to survive. Ever-changing technology and business rule changes which directly impact operations have also required the transportation industry to devote an increasing number of staff and resources to institutional, operational and technical issues.

an important issue which transportation planners and engineers have needed to provide consideration.

TRAVEL INITIATIVES AND CHALLENGES Travel Introduction The ubiquity of automated systems and enhanced information management has greatly impacted the business travel environment (on the “buy side” and “supply side”) for both consumers and suppliers. Travel management has evolved greatly and continues to change from the use of in-house travel agents to incorporation of systems and technology to perform travel functions. Corporate travel has moved from highly regulated travel to a more competitive type environment today. Travel management began to develop in many corporations in the 1990s to find ways to improve and streamline travel processes while reducing administrative costs through better technology. Corporations and government agencies have reduced travel costs by negotiating corporate and government discounts with airlines.

The importance of Safety is confirmed in the Transportation Research Board National Academies 2009 report entitled Critical Issues in Transportation. In this report, it is stated that although “(t)he United States continues to be a world leader in introducing safer vehicle and road technologies, most past gains stem from the improved crashworthiness of vehicles. Additional safety gains are possible from side air bags, electronic stability control, and other crash-avoidance technologies.” Directly related to Safety are the areas of Infrastructure and Congestion. The areas of Infrastructure and Congestion were also identified as important areas which impact an organization’s ability to succeed. Last, but certainly not least, the areas of Policy/Budget/IT were identified as areas of concern. Since the development of a National System Framework is directly associated with the areas of Infrastructure and Congestion, we included a discussion of this important area in the survey discussions and findings.

TRANSPORTATION INITIATIVES AND CHALLENGES Transportation Introduction A primary purpose of the Transportation segment of the Survey was to identify the key issues and concerns which the transportation community at large was facing, both now and in the future in transportation. Transportation is an important issue which has a direct impact on the nation’s economy and quality of life. The nation’s transportation system is a critically important element of our everyday lives. In recent years, since the landmark date of September 11, 2001, our Nation has been faced with addressing the need to prepare and respond to terrorist events. Although not solely a transportation responsibility, natural disasters have also become

“Clearly, both the public and private sectors have identified Safety as an area where the public and private sectors can agree upon common goals and objective.” — DOT Official

Funding for Our Nation’s infrastructure A key transportation issue facing the transportation community this year is how to provide funding for our Nation’s infrastructure. This is a dynamic and ever-changing issue. The latest news on this front occurred over the week-end of December 12 & 13. On this week-end, the US Congress finally passed the DOT 2010 Appropriations Bill after passing several continuing resolutions (CR) since September 30. Several respondents to the survey stated that “Inadequate Revenue had either a

“significant impact” or “major impact” on their organization. Some of this concern is directly related to our Nation’s deteriorating infrastructure and the lack of funding to support transportation operations. Also related to decreasing revenue is the issue of increasing congestion which has a negative impact on operations.

“There is an increasing demand to improve program efficiencies and to accept additional responsibilities, with no increase in resources. I am continually being required to evaluate and examine my current programs to uncover new and innovative approaches which provide increased operational efficiency.”

CONCLUSION We believe the survey was very informative and provided NDTA and Dell Perot Systems with a good baseline from which to outline and frame the major Travel & Transportation policy and program issues facing the Defense community, as well our public and private sector partners. Dell Perot Systems, working on behalf of and in support of the NDTA intends to use the results of this survey as a starting point to begin development of a strategic roadmap, or framework for the Travel and Transportation industry. A key aspect of this effort will be the support and participation of Dell Perot Systems Travel and Transportation Center of Excellence (T&T COE). In its role as a cooperative forum to address the emerging travel and transportation issues which our Nation is facing, Dell Perot Systems T&T COE serves as a vital resource and cooperative forum to deliberate about the current and future travel and transportation issues facing our Nation. DTJ For a full report of the 2009 Travel and Transportation Survey, please visit: www.ndtahq.com/TTSurvey2009.htm

1 Our Nation’s Highways 2008, Federal Highway Administration, Publication No. FHWA-PL-08-021

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Investing in Human Capital Training for the Small Business The Trucking Owner-Operator Irvin Varkonyi, Marketing Manager and Adjunct Professor, Transportation and Logistics Management, American Military University

Learning Objectives 1. Understand how safety and security compliance impacts driver training 2. Examine websites which utilize technology to train drivers on the application of technology. 3. Learn how Satellite Radio reaches out to these road warriors

The Independent Owner-Operators The past year has been extremely challenging, to say the least. The year ahead will challenge us as well but our resilience will provide the means we need to move forward. Adjustments are being made by stakeholders in the logistics and travel industries. That doesn’t mean we will all be winners in 2010. Far from it, as there will also be losers. So what will be the key(s) to being a winner or a loser, especially small businesses providing logistics services? Let’s focus on one segment under great pressure, our truckers. Trucking is segmented. There are giant mega truckers such as YRC and mid-sized firms such as Wabash Valley Trucking of Texas. But the largest segment is owneroperators, the individuals who risk their assets every day on the road. They are a strong group and they support each other. As stated on www.ooida.com: The Owner-Operator Independent Drivers Association is the international trade association representing the interests of independent owner-operators and professional drivers on all issues that affect truckers. The nearly 160,000 members of OOIDA are men and women in all 50 states and Canada who collectively own and/or operate more than 240,000 individual heavy-duty trucks and small truck fleets. Despite weakness in the economy, there remains relatively good demand for drivers. Drivers still leave one company and go to another to improve wages or conditions. Compensation increases have leveled off as trucking revenues have come under pressure. As the economy begins to 28 |

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move upward, the movement of truckers will increase rapidly. The nation will again see severe driver shortages, which will impact the economy by raising the costs of shippers, be they military or commercial. Pressure will remain strong for drivers to meet safety and security compliance standards. There are significant requirements for driver training to insure compliance with commercial driving regulations, hazardous materials movement and security mandates which seek to insure knowledge and observance of Transportation Security Administration regulations. Technology is used to train drivers on new technology But for the independent owner-operator, their truck is their business. Their truck is their office. These truckers learn from the road of hard knocks. But today, technology has exploded for truckers, bringing efficiency into their business. Truckers must learn to use this technology from a variety of sources, offered by vendors, training institutes and others. Utilization of technology is not only the objective of the training, but technology is also the enabler in this process. Here are some examples: www.roadsidehazmat.com – Roadside Hazmat is designed to help truck drivers, carriers and shippers and other ground transportation professionals understand the USDOT hazmat regulations. If you transport hazmat you know that the hazardous materials regulations (HMR’s) are full of exemptions and changes in the blink of an eye! Roadside Hazmat is a technology company used by drivers to help stay on top of the world of highway hazmat transportation. A series of web-enabled training is accessible to individual drivers. www.truckershelper.com – The Truckers Helper, LLC is a leading provider of business management software and webbased services for the trucking and transportation industry. Its products and services, including the Truckers Helper, seek to simplify trucking business management,

February 2010

accounting and operations. The Truckers Helper is an integrated, real-time ERP (enterprise resource planning) systems offering tools to manage your trucking business. Training is web enabled. www.truckstop.com – Internet Truckstop has automated services which help truckers by finding loads, optimizing stops and gaining expertise in the use of technology to operate the trucker’s business. Their online magazine contains information on technology oriented means to acquire tools which improve the competitiveness of their business. Using Internet Truckstop’s web service, shippers, carriers, brokers and others communicate in real time to improve truck utilization and reduce shipping costs. Using these same web based services, Internet Truckstop provides training to truckers to maximize their utilization of these tools. www.davenemo.com – The Dave Nemo show on Sirius Radio, uses satellite radio to communicate with the nation’s truckers on the move. Satellite radio is an ideal solution for trucking professionals whose life is the road. Among the features provided by this show to support truckers and improve their knowledge are: Canada Calling, with news and views from Canada’s leading Truck Owner/Operator group, OBAC; Safety, Compliance and Common Sense with transportation Safety consultant Rick Gobbell who talks with listeners about compliance and safety issues; The Business Of Trucking with CPA John Turner talks with listeners about taxes, finances and everything business; Fitness Friday gives advice, information and encouragement to drivers on health, exercise, diet, and time management. Drivers’ Knowledge supports the School of Hard Knocks For all drivers, as well as other trucking professionals, it is important to maintain their knowledge of regulations, to understand tools that save expenses and maximize revenue opportunities. And it is important for drivers to look toward their future to prepare for whatever changes their industry may encounter. That means continued on page 32

Mechanics vs. Pilots COL Denny Edwards, USA (Ret.) As I am writing this column on the last day of this very tumultuous decade and hoping that the next 10 years will be better; I remember all the serious problems and challenges we have had in our transportation and logistics industry over the past 10 years—terrorist attacks, hijackings, bankruptcies and tragic accidents. The airline industry was certainly one of the most severely impacted by these events. But even in the mist of all of this, I was heartened to see that with at least one airline, there was still room for some good natured fun.

mile as you read the friendly banter that went on between pilots and maintenance crews as you read the following aircraft service reports. Even in the most challenging of times, humor seems to be alive and well. Remember, it takes a college degree to fly a commercial plane, but only a high school diploma to fix one! After every flight, pilots fill out a form called a “gripe sheet”, which tells mechanics about problems encountered with the aircraft. The mechanics correct the problems, document their repairs on the form, and then pilots review the forms before the next flight. Below are some actual maintenance complaints submitted by pilots, and the solutions recorded by mechanics.

PILOT: Left inside main tire almost needs replacement MECHANIC: Almost replaced left inside main tire PILOT: Test flight OK, except auto-land very rough MECHANIC: Auto-land not installed on this aircraft

PILOT: IFF inoperative in Off mode MECHANIC: IFF always inoperative in Off mode PILOT: Suspected crack in windshield MECHANIC: Suspect you are right PILOT: Number 3 engine missing MECHANIC: Engine found on right wing after brief search PILOT: Aircraft handles funny MECHANIC: Aircraft warned to straighten up, fly right, and be serious PILOT: Target radar hums MECHANIC: Reprogrammed target radar and added lyrics PILOT: Mouse found in cockpit (Graphic: a cat or a mouse) MECHANIC: Cat installed

And the best one for last ...... PILOT: Something loose in cockpit MECHANIC: Something tightened in cockpit PILOT: Dead bugs on windshield MECHANIC: Live bugs on order

PILOT: Noise coming from under instrument panel. Sounds like a midget pounding on something with a hammer MECHANIC: Took hammer away from midget

I hope the above helps you start 2010 with a smile.

DTJ

PILOT: Evidence of leak on right main landing gear MECHANIC: Evidence removed PILOT: DME volume unbelievably loud MECHANIC: DME volume set to more believable level

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HONOR ROLL

SUSTAINING MEMBERS AND REGIONAL PATRONS

ALL OF THESE FIRMS SUPPORT THE PURPOSES AND OBJECTIVES OF NDTA

SUSTAINING MEMBERS AAR Mobility Systems ABF Freight System, Inc. Air Transport Assn. of America Air Transport International, LLC AIT Worldwide Logistics, Inc. All State Express American Maritime Officers American Public University System American United Logistics ARINC Army Air Force Exchange Service Arven Freight Forwarding, Inc. Associated Global Systems Baggett Transportation Co. Bender Shipbuilding and Repair Co., Inc. Boyle Transportation Byrne Transportation Services, LLC Cargo Transport Systems Co. Carlson Hotels Worldwide Chalich Trucking, Inc. Chamber of Shipping of America Comtech Mobile Datacom Corporation CRST International, Inc. CSC Crowley Maritime Corp. CWT SatoTravel C2 Freight Resources, Inc. Dell Perot Systems, Inc. Delta Air Lines, Inc. Dynamics Research Corp. Enterprise Database Corporation

REGIONAL PATRONS AAAA Forwarding, Inc. Access America Transport, Inc. Acme Truck Line, Inc. AFC Worldwide Express/R+L Global Services American Moving & Storage Assn. Association of American Railroads Avis Budget Group AWARDCO Freight Management Group, Inc. BEC Industries, LLC Benchmarking Partners Bertling Logistics, Inc. C5T Corporation Cardinal Transport, Inc. The Cartwright Companies Center for the Commercial Deployment of Transportation Technologies (CCDoTT) Ceres Terminals, Inc. C.H. Robinson Worldwide, Inc. Chassis King C.L. Services, Inc. Coastal Maritime Stevedoring, LLC Corporate Flight Management CSI Aviation Services, Inc.

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Enterprise Rent-A-Car Express-1 Fikes Truck Line GE Aviation General Dynamics/American Overseas Marine GeoDecisions Global Maritime & Trans. School-USMMA Greatwide Truckload Management Hi-G-Tek, Inc. Intermodal Association of North America (IANA) Intermarine, LLC International Longshoremen’s Association, AFL-CIO Intl. Organization of Masters, Mates and Pilots ITLT Solutions, Inc. Interstate Distributor Co. JB Hunt Transport, Inc. KGL Transportation Co. Kansas City Southern Keystone Shipping Company Knight Transportation Kuehne + Nagel, Inc. Liberty Maritime Corporation LMI Lockheed Martin Aeronautics Co. M2 Transport Mack Trucks, Inc. ManTech International Corp. Martin Logistics, Inc.

Matson Navigation Co., Inc. Mayflower Transit McCollister’s Transportation Systems, Inc. Marine Engineer’s Benefits Association Menlo Worldwide Mercer Transportation Co. Mobility Resource Associates National Air Carrier Assn., Inc. National Van Lines New England Motor Freight, a Shevell Group Co. North Carolina State Ports Authority Numerex NYK Logistics Americas OAG Ocean Shipholdings, Inc. Old Dominion Freight Line, Inc. Omega World Travel Omni Air International, Inc. OSG Ship Management, Inc. Overdrive Logistics, Inc. Owner-Operator Independent Drivers Association Parts Associates, Inc. Pilot Freight Services PODS Port of Beaumont Powersource Transportation, Inc. Pratt & Whitney Prestera Trucking, Inc. PRTM Management Consultants, LLC Priority Solutions International

RAITH-CTS Logistics Ravens Group, Inc., The Sammons Trucking Savi, a Lockheed Martin Company Sealed Air Corp. Sealift, Inc. Seafarers Int’l Union of N.A. AGLIWD Sea Star Line, LLC Southeast Vocational Alliance Southwest Airlines SRA International, Inc. Stanley Associates, Inc. SSA Marine Textainer Equipment Management TQL Totem Ocean Trailer Express, Inc. (TOTE) Transportation Institute Transportation Intermediaries Assn. (TIA) Tri-State Motor Transit, Co., (TSMT) Tucker Company Union Pacific Railroad United Airlines UPS Freight United Van Lines, Inc. University of Kansas, Transportation Research Institute US Bank (PowerTrack) UTi Worldwide, Inc. VT Halter Marine, Inc. Wagler Integrated Logistics, LLC XIO Strategies, Inc.

Delaware River Maritime Enterprise Council (DERMEC) Dollar Thrifty Automotive Group EADS North America EMO Trans, Inc. Erudite Company Europcar Car & Truck Rental Executive Apartments, Inc. FlightWorks Fox Rent A Car General Freight Services, Inc./ Coyote Logistics LLC Great American Lines, Inc. Green Valley Transportation Corp. Hanjin Transportation Co., Ltd. Hawaii Air Cargo, Inc. Hilton Hotels Corporation Holiday Inn Executive Center, Virginia Beach The Howland Group, Inc. HudsonMann, Inc. Hyatt Hotels and Resorts Jamstar Services, LLC dba Goverline Kalitta Charters, LLC Korman Communities AKA a division Labelmaster Software Liberty Global Logistics LLC

Limitless International, Inc. Logistics Management Resources, Inc. LTD Management Company, LLC MacGREGOR (USA), Inc. Marriott International McLane Advanced Technologies MCR Federal, LLC (MCR) MBA | Morten Beyer & Agnew Meyer Trucking, Inc. Military Sealift Command (MSC) Naniq Systems, LLC NCI Information Systems, Inc. Oakwood Corporate Worldwide ODINTechnologies Panalpina Patriot Contract Services, LLC Payless Car Rental Perez Bros., Inc. Philadelphia Regional Port Authority Phoenix International Freight Services, Ltd. Port of Port Arthur Port of San Diego Reckart Logistics, Inc. Rentacrate LLC Royal Trucking Company Scan Logistix, Inc.

Seabridge, Inc. Sea Box, Inc. Silk Road Air & Logistics SkyLink—(USA) Sleep Inn and Suites SLT Express Way, Inc. SR International Logistics, Inc. Stratos Jet Charters, Inc. Staybridge Suites Chantilly/Dulles Airport TAPESTRY - FSG Trailer Bridge, Inc. Transcar GmbH Trans Global Logistics Europe GmbH TRI-STATE Expedited Service, Inc. Truva International Transportation & Logistics Unimasters Logistics PLC US Suites Utley, Inc. The Virginian Suites Veteran Enterprise Technology Services, LLC Yurtiçi Logistics Supply Chain Management and Distribution Inc.

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February 2010

Agility Defense & Government Services + PLUS American Shipping & Logistics Group (ASL) + PLUS APL Limited + PLUS Atlas Air Worldwide Holdings + PLUS Bennett Motor Express + PLUS Choice Hotels International + PLUS CEVA Logistics + PLUS FedEx + PLUS Global Aviation Holdings, Inc. + PLUS Horizon Lines, Inc. + PLUS IBM + PLUS InterContinental Hotels Group + PLUS Landstar System, Inc. + PLUS Maersk Line, Limited + PLUS National Air Cargo + PLUS Panther Expedited Services, Inc. + PLUS Ports America Group + PLUS Rock-It Cargo USA, LLC + PLUS Science Applications International Corp. (SAIC) + PLUS Supreme Group USA, LLC + PLUS Universal Truckload Services, Inc. + PLUS YRC Worldwide + PLUS Accenture American Roll-On Roll-Off Carrier, LLC BNSF Railway Co. The Boeing Company Booz Allen Hamilton Bristol Associates CorTrans Logistics, LLC CSX Transportation DB Schenker DHL Global Forwarding Evergreen International Airlines, Inc. Hapag-Lloyd USA, LLC

The Hertz Corporation International Shipholding Corp. Lockheed Martin Norfolk Southern Corporation Northrop Grumman Corporation The Pasha Group Qualcomm Incorporated R&R Trucking SkyBitz Team Worldwide UPS UTXL, Inc.

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.

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continued from page 9

Dr. Kent N. Gourdin

Single Point of Failure: The Ten Essentials Laws of Supply Chain Risk Management Single Point of Failure: The Ten Essentials Laws of Supply Chain Risk Management by Gary S. Lynch; Wiley 2009; ISBN 0470424966; Hardcover, 292 pages; $39.95

ver the past decade, organizations have faced relentless customer demand for better value at less cost, individual customization, greater choice, faster delivery, higher quality, exceptional service, all within the context of increased environmental and social consciousness. The organization’s weapon of choice to address this increasingly unpredictable demand has been the supply chain. However, as the supply chain footprint changed (e.g. outsourcing, off-shoring and customer/vendor empowerment) so did the organization’s exposure to uncertainty. Organizations were taken by surprise since this exposure was unanticipated, complex and beyond their ability to manage. As customers become more demanding and as change occurs at an even greater pace, supply chain risk continues to propagate like a parasite. Organizations and societies are at much greater risk of

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understanding their role in the supply chain, understanding the needs of their customers. Good owner-operators understand this. If they didn’t they wouldn’t remain in business. But the traditional relationships of working with large companies who controlled many of the assets and facilities in their business is changing to large companies controlling a process which involves many external stakeholders. Drivers will seek to educate themselves

systemic failure because of the massive interdependency that characterizes today’s global supply chains. The priority now is two-fold: play catch-up and address these massive gaps while deploying more intelligent and integrated strategies for dealing with continuous change. Single Point of Failure: The 10 Essential Laws of Supply Chain Risk Management uses analogies and dozens of case histories to describe the risk parasite that infects all supply chains while revealing methods to neutralize that parasite. The book addresses the questions: What are the “single points of failure”? How exposed are customers, investors, other stakeholders and ultimately the organization? What is the measurable impact (i.e. brand, financial, strategic, and non-compliance)? Who establishes the “risk paradigm”? How does the organization efficiently and effectively allocate precious resources such as time, people, management attention, and capital? How is success measured? This book is both technically powerful and effectively realistic, based on today’s complex global economy. (From the publisher) DTJ in these changes, through formal university degrees, certificates or other outlets, to complement their training in compliance. Within the world of defense transportation, decision makers will expect more from the owner operator. It is up to this group to deliver what their customer wants and to deliver value. Training and education will be an enabler of their success. DTJ Irvin Varkonyi may be reached at 703-343-3259 or email him at ivarkonyi@apus.edu

DTJ Index of Advertisers American Military University......... pg. #

Bennett International Group........... pg. #

Landstar.............................................. pg. #

APL...................................................... pg. #

Boyle Transportation........................ pg. #

LimitLess............................................ pg. #

ARC (ASL Group)............................... pg. #

Comtech Mobile Datacom.............. pg. #

Maersk Line, Limited....................... pg. #

Avis Budget Group............................ pg. #

FedEx.................................................. pg. #

SAIC.................................................... pg. #

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February 2010

Younger, lower-paid workers may then fill these jobs where mentoring and training issues become critical. It is clear that changes in the economy have a direct impact on an organization’s succession plan. In closing, the brain drain and a volatile economy have created a global phenomenon affecting organizations of all types; big and small. There are many resources available relating to this topic. If you wish to research this topic further, please find several URL’s below: • http://www.logisticsmagazine.com.au/ Article/Mercury-Awards-give-youngrecruits- a-voice/74700.aspx • http://www.agingworkforcenews. com/2005/03/preventing-crucialknowledgeleaving.html • http://www.governing.com/column/ clogsbrain-drain • http://www.kellencompany.com/ meeting_management_hiring_for_ the_association.html DTJ GOV PRO Alliance LLC is a consulting company headquartered in Maryland. The company specializes in connecting private industry to government sector logistics. Chuck Bolduc and Bob Reilly are the founding partners and each have over 30 years experience in the logistics industry.

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it to a standardized format in one database so that it can be fed to multiple Air Force back-end systems. The session was full of exciting information, making it clear that significant progress is being made in the deployment of RFID to enable improved support to the warfighter. Without the right equipment in the right place at the right time, it is impossible for the brave men and women of the armed forces to do their jobs, so it is incumbent on us to do ours: identifying and addressing the many processes that can be significantly accelerated and made more accurate through the use of technologies such as RFID. To learn more about RFID and its possibilities, visit www.rfidjournal.com or attend the next major industry event, RFID Journal Live in April 2010. DTJ