Supply and Demand Chanin 12 2012

GLOBAL EXCLUSIVE: All Eyes on India p.
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December 2012
COVER SPOTLIGHT
Manning Sustainability at Sea

SDCE honors leading cargo freight shippers and global businesses in annual Green Supply Chain Awards
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PLUS
The Purchasing Power of Sustainability:

Doing the right thing also saves money
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Table of Contents
December 2012
Volume 13
Issue 4
INSIDE
6 Executive Memo
By Barry Hochfelder
Tragedy Doesnt Choose a Season
Holiday supply chains must regroup after devastation of Super Storm Sandy
12 Sustainability Output 15 Global Focus

COVER STORY
The Energy of Green Purchasing
Purchasing plays a pivotal role in leading the green revolution By Robert Menard
All Eyes on India
8 Go Green
Supply chain must deal with political issues like Foreign Direct Investment and a potential Goods & Services Tax
By Barry Hochfelder
Or Go Home
19 Industry Focus
As limited environmental resources, tighter profit margins and increased market competitiveness paint the picture of today, numerous global companies continue to amp up their game on green to build more sustainable supply chains and mitigate the impact of their business processes on the environment. This month, Supply & Demand Chain Executive honors those that enforce green practices as a core function of their operations in our annual Green Supply Chain Awards. (Above image and issue cover image courtesy Maersk Line).
Healthcare Reform: A Wakeup Call to Global Life Sciences Companies

By Natalia Kosk
Pharmaceutical, medical device and biotechnology companies must act now to prepare for the changing landscape of life sciences
26 Market Segments 29 Green Factors
Unwrap the Savings in Retail
Holiday season or not, everybody wants a piece of the retail action By Natalia Kosk
Blazing the Trail of Sustainability
Accept trade-offs in order to optimize supply chain strategies By Dr. Chet Chaffee
32 Industry Voice
Supply Chain Final Thoughts
Kate Vitasek updates SDCE on the vested way By Natalia Kosk
This month, leading supply chain providers provide their best practices for optimum supply chain efficiency and end-user benefits.
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4 Supply & Demand Chain Executive December 2012
GT Nexus..........................................17, 18 EXTOL...................................................... 22 Iasset........................................................ 23 Hy-Tek Material Handling Inc.....24, 25
Executive Memo
Tragedy Doesnt Choose a Season

Holiday supply chains must regroup after devastation of Superstorm Sandy
By Barry Hochfelder
December 2012 Volume 13 Issue 4

Executive Vice-President, Diversified Group Gloria Cosby Vice-President, Marketing Gerry Whitty Publisher Jolene Gulley Staff Editor Barry Hochfelder Associate Editor Natalia Kosk Art Director Barbara Pineiro Production Service Representative Suzette Schear Audience Development Manager Angela Kelty Corporate Sales Publisher Jolene Gulley, jgulley@sdcexec.com Sales Account Manager Carrie Konopacki, ckonopacki@sdcexec.com Sales Account Manager Judy Welp, jwelp@sdcexec.com European Sales Representative, ITSL Media Julian Maddocks-Born, Sales Director julian@ itsluk.com, +44 (0)1442 230033 Benedict Hume, Sales Manager benedict@itsluk. com, direct line +44 (0)1442 288287 Editorial Advisory Board Tim Feemster, Senior VP, Grubb & Ellis, Inc. John M. Hill, Board of Governors, Material Handing Industry of America Julie Murphree, Founding Editor, Supply & Demand Chain Executive Shekar Natarajan, North American Director of Supply Planning, Anheuser-Busch Andrew K. Reese, Former Editor, Supply & Demand Chain Executive Bob Rudzki, President, Greybeard Advisors Raj Sharma, CEO, Censeo Consulting Group Kate Vitasek, University of Tennessee Center for Executive Education Circulation & Subscriptions PO BOX 3257, Northbrook, IL 60065-3257 847-559-7598, Fax: 800-543-5055 Email: circ.sdcexec@omeda.com List Rental Elizabeth Jackson, Merit Direct LLC (847) 492-1350 Ext. 18, Fax: (847) 492-0085 E-mail: ejackson@meritdirect.com Web site: meritdirect.com/cygnus Reprint Services Contact Nick Iademarco at Wrights Media (877) 652-5295 ext. 102 niademarco@wrightsmedia.com. CygnusBusiness Media John French, Chief Executive Officer Paul Bonaiuto, Chief Financial Officer Ed Wood, Human Resources Julie Nachtigal, Vice President of Audience Development Curt Pordes, Vice President of Production Operations Rob Brice, Senior Vice President, Cygnus Expositions www.SDCExec.com
Supply & Demand Chain Executive (USPS #024-012 and ISSN 1548-3142 (print) and ISSN 1948-5654 (online)) is published 4 times a year: March, June, September and December by Cygnus Business Media, 1233 Janesville Avenue, Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, Wisconsin and additional entry offices. POSTMASTER: Please send all change of address to Supply & Demand Chain Executive, PO Box 3257, Northbrook, IL 60065-3257. Printed in the U.S.A. SUBSCRIPTION POLICY: Individual subscriptions are available without charge in the United States, Canada and Mexico to qualified individuals. Publisher reserves right to reject nonqualified subscribers. Oneyear subscription to nonqualified individuals: US $33, Canada and Mexico $49 and $71 for all other countries (payable in U.S. funds, drawn on U.S. bank). Single copies available (prepaid only) $10 each. Canada Post PM40612608. Return undeliverable Canadian addresses to: Supply & Demand Chain Executive, PO Box 25542, London, ON N6C 6B2. The information presented in this edition of Supply & Demand Chain Executive is believed to be a ccurate. The publisher cannot assume responsibility for the validity of claims or p erformances of items appearing in editorial presentations or advertisements in the publication.
s we moved into the holiday season one of the busiest, most complex times of the year for supply chain things only got more tangled. Hurricane Sandy, of course, devastated the East Coast; another nasty, but not-quite super storm piled on a week later. Gregory Daco, a senior economist with IHS Global Insight, told the New York Times that the region is responsible for about $3 trillion in outputapproximately 20 percent of the countrys total gross domestic product. Part of what was lost will be delayed, he told the newspaper, but part is lost forever. New Yorks port systemincluding New Jerseyhandled $208 billion in cargo last year. Sandy closed the ports; how much was lost still is being totaled. The delays can cause losses that will flow through the entire season. In that same Times article, Paul Tsui, chairman of the Hong Kong Association of Freight Forwarding and Logistics, reported that several of his New York-area customers were declaring their warehouses totaled and that the merchandise will be have to be written off as an insurance loss. The closings and delays, he said, will leave those who do still have merchandise with limited prospects: send by expensive air freight; pay a penalty to retailers for late shipments; or face canceled orders. The most tragic element of Superstorm
Barry Hochfelder
Editor Supply & Demand Chain Executive
Sandy is, of course, the human loss and devastation. Speaking purely from a supply chain perspective, Sandy and her ilk just emphasize one fact: The question isnt will something happen, its when will it happen? Risk management is an issue we feel very strongly about at Supply & Demand Chain Executive. Youll see it on our Website, read about it in our print issues and hear about it during our Web seminars. Please apply the lessons you learn. Now, welcome to the December Green Awards issue, our fifth annual. With this issue, we again cite companies implementing sustainability strategies within their own supply chains and providers of supply chain solutions and services who helped their customers achieve sustainability goals. While not all-encompassing, we do strive to provide a broad range of options that you can apply to your own pursuit of sustainability. It begins on page eight. Along those lines, we get more specific on page 12 with a discussion of green purchasing and sustainability. On one side of the coin sustainability bears the imprint reduce, conserve and preserve. On the other side is the purchasing reward of reduced costs and increased profits. Author Robert Menard says, the very acts of cutting costs and saving money are intrinsic to and integrally inseparable from sustainability. As I noted at the top of this column and youre well awareits holiday time. On page 26, Associate Editor Natalia Kosk takes a look at how retailers are managing their sales as more consumers opt for online shopping vs. on-site retail shopping. Shell explain how traditional supply chain practices must be altered to accommodate the consumer shift to online purchases. Please enjoy the issue and have a safe, wonderful and green holiday season.
bhochfelder@sdcexec.com
This month, we take green to the seas as cargo freight companies bring their A-game to target marine sustainability.
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Go Green Or Go Home
Service and solutions providers go big to target their environmental footprint and deploy green initiatives across their supply chains
By Natalia Kosk and Barry Hochfelder
s limited environmental resources, tighter profit margins and increased market competitiveness paint the picture of today, numerous global companies continue to amp up their game on green to build more sustainable supply chains and mitigate the impact of their business processes on the environment. And this month, Supply & Demand Chain Executive honors those that enforce green practices as a core function of their operations in our annual Green Supply Chain Awards. Recognizing small, mid-size and large enterprises that leveraged green practices and solutions to further drive sustainable improvements in their supply chain, this year's fifth
annual awards warranted a different theme across the board than in the past. Not only have global companies increased their sustainability processes in the last few years but many drive green adoption into the supply chains of their key partners as well. Crown Equipment Co., which in 2011 built its 500th forklift, is operated by a fuel cell to reduce fossil fuels, improve operator efficiency, and reduce carbon emissions and energy costs. Since 2009, Cascades Inc. initiated its own annual Sustainable Supplier Award to honor its most responsible suppliers. In Kencos case, the logistics provider works to reduce greenhouse gas emission by 14,000 tons over the 20-year lifecycle of energyefficient fixtures it upgraded into two
Chattanooga, Tenn.-based facilities this is the air-scrubbing equivalent of a 149-acre forest, or removing 137 cars from the road, according to the U.S. Environmental Protection Agency (EPA). But perhaps most relevant for this years green awards are the sustainable practices that ocean freight companies enforce. This month, we shine a spotlight on the green efforts of Evergreen Line, Horizon Lines and Maersk Line, who lead the charge to deploy energy-efficient ways in moving cargo long distances while sustaining environmental protection strategiesmost significant being the marine atmosphere.
Evergreen Line (www.evergreen-line.com) Founded in 1968, containership company Evergreen Line has had an environmental philosophy since day one, implemented by Group Chairman Dr. YF Chang. The company monitors every aspect of vessel operations to ensure it is exceeding the guidelines required from the nearly 100 worldwide ports and communities into which its vessels sail. All of Evergreen's 70 new ships under construction are built with consistently upgraded green features. Its S-type greenships container ships come built with environmental features that still remain beyond worldwide compliance. This year, The L-type new vessels with more than 8,000 TEU are put into service with enhanced environmental excellence built in. The Evergreen L-Type vessel can reduce about 15 percent of CO2 emission rate. It also adopts the variable frequency control type motor on the main cooling sea water pump so that the motor speed is automatically controlled by the cooling sea water temperature and central cooling fresh water temperature to enhance the electrical power utilization and save energy. Horizon Lines Inc. (Charlotte, N.C., www.horizonlines.com) Horizon Lines approach emphasizes environmental excellence through conservation techniques, waste stream management, system upgrades and voluntary compliance. To protect the marine environment, Horizon Lines established several programsincluding Emissions Horizon Lines and Sustainability Horizon Lines in addition to the MARPOL and ISM codes created by the International Maritime Organization (IMO). These also include vessel management controls, low sulfur diesel fuel usage and marine terminal pollution mitigation plans. The companys efforts resulted in an estimated emissions reduction of 231,000 tons of CO2 over the past six years through its fuel conservation and emissions program. Through the EDGE process, Horizon Lines reduced overall fleet fuel consumption by 3.5 percent over the past six years. It also initiated a program limiting the discharge of any waste into the oceans, instead sorting its waste to facilitate recycling shore-side, where accepted. Neither U.S. nor international pollution prevention regulations require vessels to treat accumulated water in the cargo holds before pumping it into the sea. Horizon Lines voluntarily modified some of its vessels systems to provide for the processing of this water through its oily water separator or an independently installed Oil Content Meter (OCM) prior to discharge into the sea. Maersk Line (Copenhagen, Denmark, www.maerskline.com) With a goal to be the environmental leader in shipping, Maersk Line provides ocean transportation services that are consistently eight to 10 percent more energy-efficient than the industry average. Since 2002, the provider worked closely with major shippers and other carriers as part of the Clean Cargo Working Group (CCWG), which deploys standardized methods for calculating and reporting the carbon footprint of shipping and provides a protocol for third-party verification of the emissions factors. In addition to publishing its own individual vessel performance Maersk supports customers with environmental comparisons for routing options, analyses of the shipper's individual carbon footprint and scorecards. Since 2007, Maersk Line reduced the carbon footprint of containers shipped by 15.6 percentwith an overall goal to achieve a 25 percent reduction by 2020. In another case, the company saved almost 10,000 tons of CO2 emissions in 2011 on shipments for a large sportswear company. Developing markets in Western Africa benefit from Maersks WAFMAX vessels, designed to call on these smaller, less developed ports yet still deliver substantially more energy efficiency. The CO2 footprint per container shipped is 28 percent lower than the industry average for that region. Starting in 2013, Maersks new Triple E vessels will deliver 50 percent better performance than the vessels on today's already world-class Asia-Europe routes. The first carbon neutral company in New Zealand, Agility (www. agilitylogistics.com) works with customers to reduce carbon emissions produced by supply chains and to reuse/recycle packaging waste. Agilitys carbon calculator tool allows customers to measure carbon emissions in their supply chains. Its Goods-in-Transit Center (GIT-C) solution saves more than six percent on cargo weight and CO2 emissions and provides a reduced overall cost with zero impact on shipping schedules. Agilitys environmental awareness campaign educates teams on sustainable in-house best practices such as energy consumption reduction via less used electricity; incorporated sustainable warehousing design features; and decreased fuel costs/consumption through implemented video conferencing.
December 2012 Supply & Demand Chain Executive 9
Through the Cascades Recovery divisionwhich manages discarded recyclable materials and uses them to manufacture new productsclients of Cascades Inc. (www.cascades. com) can reduce their supply chain ecological footprint and encourage efforts to reduce the amount of waste sent to the landfill. Since 2009, Cascades also rewards its most responsible suppliers with an annual Sustainable Supplier Award. Cass Information Systems Inc. (www.cassinfo.com) provides technology solutions to reduce paper transactions for shipping documents, billing (freight invoices), payment transactions and information delivery. Customers benefited from annual EDI freight invoice percentage averages over 65 percent; 100 percent electronic invoice processing for such package carriers as UPS and FedEx to reduce paper costs and eliminate mailings. As a third party transportation and logistics provider, C.H. Robinson Worldwide Inc. (www.chrobinson. com) offers services that optimize business processes to efficiently use transportation and distribution network resources to ultimately drive costs out, maximize logistics opportunity and minimize carbon emissions. The company works directly with growers and retail customers to most efficiently use natural resources and build efficient farm to shelf distribution models. In addition, it works with Cascade Sierra Solutions to help motor carriers reduce fuel consumption and carbon emissions. In the case of Western Growers Association (WGA), C.H. Robinson aligned to offer
WGA member shippers a unique transportation program to move fresh produce from growing areas to customers all over the country. Shipper Gills Onions utilized the program for its LTL capabilities; to aggregate freight volumes of all sizes to gain better access to capacity; negotiate strategic contracts for customized pricing; and benefit from high volume surge capacity. DSC Logistics (www.dsclogistics. com) enhanced sustainability for its customers via network modeling, transportation initiatives, yard management efficiency, logistics center improvements and employee education. DSC developed a solutions team to model and collaborate with customers on maximizing networks. In the area of transportation, the company enforces a no idling policy for trucks that are parked for loading or unloading in a DSC-managed logistics center to reduce fuel consumption, minimize exhaust emissions and improve air quality. Its yard management system enables DSC, manufacturers, retailers and carriers to access real-time visibility of shipments across the supply chain for higher efficiency, reduced detention and demurrage fees and less labor and fuel costs. In 2010, DSC Logistics initiated corrugate recycling, implemented at 100 percent of its centers. As a result of sustainable activities so far, the companys total carbon dioxide equivalent per total square foot released across its nationwide network of logistics centers from January to March 2012 is down 15 percent compared to January to March 2011. Pluvial water recovery is implemented in half of Frialsa Frigorificos (www.frialsa.com. mx) distribution centers. Newer facilities have water-absorption wells connected to the sub-soil
and incorporate CO2/NH3 refrigeration systems for increased efficiency and less harmful impact on the environment. Eolic electricity generation will service 80 percent of Frialsas total company demand (22 distribution centers) by the end of 2012. Global 4PLs (www.global-4pl. com) green initiatives include reduced CO2 and cost reduction per mile. Most recently, the company helped a client convert their fleet of gasoline to natural gas engines for reduced CO2 emissions. The conversion of their fleet will save tons of CO2 and helps Global 4PL clients to initiate a green supply chain. Through its MaxxForce-powered fleet to meet emissions EPA standards, Hermann Services Inc. (www.hermanntds.com) works to improve energy efficiency, reduce greenhouse gases and air pollutant emissions and improve energy security through greener freight practices. Additionally, the company lowered the motor speed of its tractors by computer control for better fuel mileage. The One Touch Advantage returns program from Inmar (www.inmar. com) reduces the carbon footprint for all pharmaceutical trading partners through the elimination of redundant touch points. An overall calculation of recognized savings in 2010 by all participating manufacturers in the program equaled an Initiative Environmental Sustainability Annualized Savings Transportation Carbon Footprint of 136 metric tons of carbon dioxide. IAS DispatchManager from International Asset Systems (IAS, www.interasset.com) automates the drayage tender and assignment by eliminating manual processes and fostering communications among all transport parties. Dispatch
productivity improves by 40 percent. At just one port, every one percent of import containers that are used for equipment reloads with DispatchManager save 1,100 tons of CO2. Industry research points to almost 28 percent of all truck traffic in the U.S. running empty, with evident challenges of capacity, increased fuel costs and potential driver shortages. The Collaborative Distribution supply chain solution from Kane Is Able Inc. (www.kaneisable.com) reduces customers supply chain costs by an average of 35 percent. As part of the Wisconsin Profitable Sustainability Initiative (PSI) team, LogiServe Inc. (www. logiserve.net) helped develop a diagnostic tool to assist companies to identify, quantify and prioritize their sustainability opportunities. LogiServe's involvement in the PSI program enabled 50 mid-to-modestsized companies to identify aggregate annual freight savings of more than $4 million; an ROI of more than 500 percent; annually reduced truck miles by 12 million; reduced annual fuel consumption by almost two million gallons; annual reduced CO2 emissions by 19.6 million pounds; reduced NOx emissions annually by almost 800,000 pounds; reduced Particulate Matter emissions annually by almost 20,000 pounds; and reduced labor by 70,000 hours. SaaS provider Prorizon Corp. (www.prorizon.com) works with a leading entertainment production company, two of the top 10 ITO's and three of the top 20 global ITO's to reduce electronic equipment waste through a planned end-of-life (EOL) strategy. It delivers lower monthly operating costs, error reductions, improved cost to serve and increased revenues. Ali Salehi, Senior Vice President
of Columbia Manufacturing praised SYSPRO (www.syspro. com) ERP software for its material resource planning and forecasting and purchasing, which have been instrumental to the establishment of Columbias green practices. SYSPRO data contributed to our plating operations water usage reduction
from 150,000 gallons per day to 3,000 gallons per dayalso reducing chrome usage by 93 percent and nickel purchases by 75 percent, said Salehi. Since 2010, T-Mobile USA Inc. (the U.S. wireless operation of Deutsche Telekom AG, www.t-mobile. Continued on pg. 14
The Energy of Green Purchasing

Purchasing plays a pivotal role in leading the green revolution
By Robert Menard
ets face itto be green is no longer just an option. Industry giants continue to make sustainability the mandate today that quality was a generation ago. But not enough businesses test and demonstrate processes to see the output of true sustainability before giving up on the whole green ideaincreasing its cost consumption instead of lessening it to save capital in other growth opportunities. As is the case with the general population, confusion and lack of education and training in sustainability leaves many purchasing professionals unable to distinguish between fact and myth. In fact, many practitioners in supply chain disciplines are somewhat suspicious and may not fully appreciate purchasings pivotal role in sustainability. But purchasing not only has a principal role to play but a duty to lead in the green revolution. On the one side, sustainability bears the imprint of reduce, conserve and preserve. On the flip side is the purchasing reward of reduced costs and increased profits. The very acts of cutting costs and saving money are intrinsic to and integrally inseparable from sustainability. The cost savings and gains in sustainability are limited only by our creativity and willingness. The green revolution is best led by well-educated and trained purchasing professionals who are grounded in good business and economic practices. A sustainability plan cannot be properly created or implemented without the active participation and leadership of purchasing professionals in these principal areas of sustainability: Energy and fuels Reduce, Reuse, Recycle (3Rs) Construction and facilities Chemical/environmental Corporate Social Responsibility (CSR) The green purchasing and sustainability plan Of the principal areas of sustainability, purchasing arguably has the least direct impact on the most publicly visible area of sustainability: CSR. Ironically, it is the savings harvested by purchasing that fund the advertising and public relations campaigns touting an organizations sustainability gains. This is particularly true in the Business to Consumer (B2C) industry sectors such as retail. But retailers cannot achieve their goals on their own without incorporating the active participation of suppliers. In many cases, suppliers are graded with green, yellow and red for GHG reduction goals and can be terminated for failure. Take Wal-Mart, for example. Although the retail giant had long managed its own inbound and outbound freight, it began to manage the inbound freight of its principal suppliers. In its public pronouncements, Wal-Mart trumpeted its reductions in thousands of tons of GHG reduced worldwide by this action and proclaimed the customer advantage as the reduction in costs that were directly transferred to the customer in the form of lower prices.
Sustainability facts and myths

Distinguishing between fact and myth is critical to creating any bona fide sustainability plan. To address this, we must be schooled in the sciences and technologies ingrained in the decision-making process. Electricity is the most inefficient of the common nine sources. About 14 times more efficient is coal. Oil, wood, natural gas, gasoline and propane all are more efficient than
Green purchasing and sustainability: two sides of the same coin

At its core, sustainability is conservation and preservation. A synonym for these words is savings, the province of the purchasing profession.
For the supply chain pro, sustainability is an opportunity to lead, reduce costs and preserve the resources for the quality of life needed for future generations.
electricity. Since we are speaking about automobiles, even confining the comparison to traditional motor fuels, electricity is twice as inefficient as any of those. But the science makes for a much worse case for the electric car. Electricity measured at the point of manufacture is lost in various forms before it reaches its point of usage. Heat loss (and voltage drop) in transmissions lines and waste heat in transformers are powerful depletion factors in electricity. Additionally, the all-electric car has limited highway mileage ranges and speeds. Recharging stations all use the least efficient fuel source and the vehicle itself weighs more, because of its heavy electric motor and batteries. Whats worse, these batteries are expensive to replace and often made in countries with deplorable environmental records. Thus, the sustainability of the electric car is far more of a myth than a fact. Scientific analysis aside, the reality is that the all-electric vehicle, despite more than a century of development, has not progressed
beyond the super market scooter or golf cart. For the supply chain pro, sustainability is an opportunity to lead, reduce costs and preserve the resources for the quality of life needed for future generations. The best news in the case of sustainability is that the right thing to do also saves money.
Robert Menard is a Dallasbased Certified Purchasing Professional (CPP) and Certified Professional Purchasing Consultant (CPPC) providing training and consulting in purchasing and negotiation for public and private clients globally. He is the author of You're the BuyerYou Negotiate It and Green Purchasing and Sustainability.
com) has been bringing customers together to take positive action and help the environment with its handset and accessory recycling program. T-Mobile installed recycling bins in most of its corporate retail stores in the U.S. for customers to drop offfree of charge cell phones (any make, model or carrier), cell phone batteries, accessories and netbooks. By incorporating recycling into its supply chain, T-Mobile has diverted nearly one million cell phones from landfills. Tyco Retail Solutions (www.tycoretailsolutions.com) Vital World environmental program sets and tracks environmental goals using explicit metrics for water consumption, waste generation and emissions of all six greenhouse gases covered under the Kyoto Protocol. Since the program launched in 2009, Tyco reduced greenhouse gas emissions by five percent and reduced water consumption by 20 percent.
More Green Supply Chain Award Recipients

Accellos Inc. (www.accellos.com) AFN LLC (www.loadafn.com) ArrowStream (www.arrowstream.com) Basware Inc. (www.basware.com) Cadec Global Inc. (www.cadec.com) CaseStack Inc. (www.casestack.com) Celestica Inc. (www.celestica.com) Container and Pooling Solutions Inc. (CAPS, www.usecaps.com) Combe Inc. (www.combe.com) Crown Equipment Corp. (www.crown.com) DCL (www.dclcorp.com) DHL Express (of Deutsche Post DHL, www.dhl-usa.com) eBuilder (www.ebuilder.com) Elemica (www.elemica.com) enVista (www.envistacorp.com) FORTE (www.forte-industries.com) Genesis Technology Solutions Inc. (GenesisSolutions, www.genesissolutions.com) IHS (www.ihs.com) InnerWorkings Inc. (www.inwk.com) INSIGHT Inc. (www.insightoutsmart.com) Invoiceware International (www.invoicewareint.com) Kenco (www.kencogroup.com) Layer Saver LLC (www.layersaver.com) ModusLink Global Solutions Inc. (www.moduslink.com) The McGraw-Hill Companies (www.mcgraw-hill.com) National Retail Systems Inc. (NRS, www.nationalretailsystems.com) New York City Housing Authority (NYCHA, www.nyc.gov/nycha) Next Generation Logistics Inc. (www.nextgeneration.com) Novation (www.novationco.com) Ocean Spray (www.oceanspray.com) Paylode Cargo Protection Systems (www.paylode.com) Performance Team (www.ptgt.net) Procurian (www.procurian.com) Quest Resource Management Group (www.questrmg.com) Ryder System Inc. (www.ryder.com) Saddle Creek Logistics Services (www.scslogistics.com) ShipXpress Inc. (www.shipxpress.com) Skyworks Solutions Inc. (www.skyworksinc.com) Source One Management Services LLC (www.sourceoneinc.com) Spinnaker Management Group (www.spinnakermgmt.com) Vodafone (www.vodafone.com)
For more green coverage, turn to page 29

Global Focus
All Eyes on India

Watching the slowly changing political scene and being ready to act is key to doing global business in the country
By Barry Hochfelder
ne important, but sometimes not thoroughly considered, element of business is politics. And when it comes to global issues, it can be even more vital. India certainly has its share, especially Foreign Direct Investment (FDI) and the continuously proposed-and-stalled Goods & Services Tax (GST). The most recent advance has been a government flip-flop on FDI, explained David Frentzel, Vice President, Global Contract Logistics at APL Logistics. There was a lot of uncertainty about FDI, he said. In December a year ago it was opened to retail brands, but a week later it was reversed and there was a lot of uncertainty. Now, multi-brand [i.e. Wal-Mart, Ikea and Tesco] retailers can do 51 percent and people can invest in India. The government figured out that they can have an impact on what happens in the world. When the government originally set the 51 percent FDI for multibrand retailers a year ago, it had to roll back the regulation almost immediately after protests by opposing parties, which said the move would destroy small retailers and local shops. In reinstating the issue, it was decided that the local shops would remain viable because of their personalized services that the huge stores cant match. The government also says that multi-brand FDI, while bringing money into the country, also will provide consumers with the best
possible pricing. Some multi-national retailers like Wal-Mart, Carrefour (France) and Metro (Germany) have stores in India, but the previous rules did not allow them to sell to walk-in customers. They only could sell to smaller retailers around the country. FDI in multi-brand wont be easy. The minimum limit has been set at $100 million (U.S.) and half of the investment has to be in infrastructure, such as warehouses and cold-storage chains. And, at least 30 percent of the goods to be sold will have to be sourced from local producers, which could conceivably lead to quality control and supply issues. The United Nations Conference on Trade and Developments World Investment Report 2012 expects foreign investments in India to increase by more than 20 percent by the end of 2013.
A taxing issue
India has a very complex taxing structure. Products are typically taxed twice, once by the central government (Central Sales Tax) and then by the respective state governments. One long-debated solution is the Goods and Services Tax, which was originally presented in 2009 and scheduled to take effect in April 2010, then in January of 2011, then in April of this year. And now: Maybe 2013. Proponents of GST say it will simplify the tax structure while increasing gross domestic product. In a recent presentation to the Indian business confederation, Bloomberg quoted Indian economist Vijay Kelkar on the inefficiency of a tax system that required a truck traveling between Delhi and Chennai to cross five state borders and 10 checkposts. In addition, a GST, Kelkar said, would eliminate stamp duty, vehicle
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Global Focus
tax, taxes on goods and passengers, taxes and duties on electricity, entertainment tax, entry tax, luxury tax, taxes on lotteries, betting and gambling, purchase tax and all state surcharges and cesses [import or sales tax on a commodity]. All of those taxes would be subsumed into the Central GST, with both the states and central government receiving equal shares of revenue. Opponents of the GST are concerned over control of the system and whether the Central government has the right to enter the states right to levy sales tax. They want to know who will decide the tax rates and exemptions, saying that also is a state right. Finally, they want the states to administer the program. Estimates are that India will gain $15 billion a year by implementing the GST because it would promote exports, raise employment and boost growth, as well as dividing the tax burden equitably between manufacturing and services. The prospect of GST going into effect can be positive, but some states are holding back, APLs Frentzel explained. Its based on logistics rather than tax factors and creates a uniform common market across India. prior) will pay dividends. When it comes to warehouses, there also is slow growth as Indian companies move from in-house operations to 3PLs that establish Warehouse Management Systems (WMS). It can often take several months to get the required permits to open a warehouse. Typically, warehouses in India are small, often as small as 5,000 square feet. Development of Grade A warehouses still is limited, Frentzel said. Theyre going up, but not all are A quality. Whats Frentzels advice? Be extremely nimble and flexible, a jack of all trades. Work different transportation options, all modes ground to rail to intermodal. Understand the trade lanes and continue to develop and improve infrastructure.
A quick look at infrastructure

Infrastructure, long a problem in India, is slowly progressing. The grand plans are there, said Frentzel, but execution hasnt followed as quickly. There is investment, but there is a lot of work to be done. Its mostly private investment. Thats where adoption of the new FDI, with its requirement of 50 percent of investment in infrastructure (as noted
Software Update
Turn Your Supply Chain to the Cloud
As companies continue to shift to the cloud, users must watch for its community access components to unlock its true potential
hile in Atlanta for CSCMPs annual global conference in early October, I found myself repeatedly answering the question, Whats this cloud stuff all about? As a technology practitioner whos been beating the cloud drum for many years, fielding this question was both frustrating and rewarding. On the one hand, it was painful that many of those askingthe supply chain professionals who were generally interested in what cloud technology can bring to their companys operationstill lacked a basic understanding of what cloud computing is, despite quite a bit of very high-profile activity in the market. But after a very basic discussion about cloud and what it can mean to the supply chain, the prevailing response was an emphatic wow. That felt like a win.
With technology vendors across the planet collectively touting cloud as the next greatest thing, its safe to say that the average person understands the basic equation of cloud = good. Still, this kind of noise also creates a staggering level of confusionwhich explains the barrage of questions I encountered at the event. The wow factor around cloud supply chain is often boosted by industry insiders tapping into familiar ideas and parallels to tell the story. In an effort to clarify what cloud means for the supply chain, here are a few of those correlations to identify what they mean for you.
Cloud is like an electric utility

This is a commonly-used analogy that can support almost any kind of cloud solution, especially when compared to traditional software. At one point and time, factories
and cities each had their own power plants to generate electricity. These were massive, expensive and complex machines that were the domain of a select few in the early days of electric power. Over time, electrical utilities and the notion of shared infrastructure emerged. These would only be successful when a large community of users all contributed a low monthly rate and in turn, would have access to a robust, reliable source of power. Today, for a few hundred dollars a month, we get access to an electric grid that costs billions to build and maintain. Not too long ago, the only way for a company to get technology was to buy an enterprise software license and then go through a massive implementation process and expense. The customer bought the hardware, paid for installation and paid to keep it running. Such projects typically
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Software Update
ran millions of dollars over budget, took years to complete and rarely worked as advertisedissues that are still relevant today in some scenarios. With cloud, the customer buys a subscription, rents access to the technology and pays for what they use as they go. Typically, the customer gets access to a highly reliable system that is shared with other companies. The technology is maintained by the vendor, which develops into a utility of sorts.
The HD picture
Visibility is a top priority for most companies. But while many claim to have it, few actually have a technology that takes each small pixel of information and creates a true, high definition (HD) picture of whats happening in their supply chain. Silos of information are common; a collaborative HD picture is not. For example, think about the pixels that make up your beautiful 1080p screen on the HD TV standing in your living room or hanging on your wall at home. Now, imagine going back to standard definition TV for things like movies and sports. In those cases, it can be nearly impossible to read a sign in the background or make out a number on a uniform. Now, take that a step further and imagine big black holes of missing information. Maybe you see the football helmet, a few cleats and the stadium, but you cant see the ball or the end zones. You have TV, but is that really TV? Those black hole information gaps are common in the global supply chain. But cloud platforms fill them by sitting above the physical supply chain to create a virtual informational replica of whats actually happening on the ground, around the globe. The cloud platform captures pixels from all players and systems across the network. That information is rationalized and linked to related objects, parties and processes. An HD picture is assembled of the supply chain and made available to all stakeholders. So as the picture changes, everyone in the network sees that same picture and acts accordingly. There are many other analogies that help shed light on why cloud is a big deal in the supply chain space. Probably the most important shift in mindset is that many of the benefits are not about software applications
LinkedIn versus Outlook

In supply chain, one of the biggest challenges is keeping an entire value chain of partners connected and informed about whats actually happening. This requires that entire trading communities all see and act on the exact same piece of informationa single version of truth. This requires an information model that looks like LinkedIn, not Outlook. About 15 years ago, we all had our contact lists in an Outlook address book. If we changed our phone number or email address, we had to send an email to everyone and hope they each changed the information in their own address book. With LinkedIn, the model is inverted. Now, we simply go to our profile page to change the information and our entire network gets the news instantlyeverybody in the network is on the same page. This is a completely different informationsharing model thats predicated on a centralized cloud platform. In supply chain, this goes beyond information about organizations and includes dynamic business objects like orders, shipments, inventory, documents, costs and eventsall of which are in a state of constant change. Thus, when the status of a shipment changes, everybody who needs to know gets the news instantly.
or functionality. While screen shots and slick demos have been seducing buyers for years, the traditional software systems were always designed for the single company. Today, supply chain technology must be capable of working fluidly and quickly between companies as networks. This is a domain that is ideally suited for cloud. A utility-centric platform brings entire trading communities onto a single, shared network. New information models that move data to the center of a network support the creation of virtual replicas of the physical supply chain to give entire networks an HD picture of whats really happeningat any point in the supply chain with any partner.
The future cloud supply chain

Major companies across business sectors continue to make the shift to cloudespecially in the CRM and HR technology spacesand cloud users must brace themselves for a new era of global commerce efficiency through the emerging cloud supply chain. Evident of this are the major corporations going public with their storiessuch as at CSCMP where attendees witnessed Pfizer talking about supply chain segmentation, supported by virtualized information layer in the cloud. As established big software providers continue to hammer their cloud offerings, companies interested in moving to the cloud should not only listen to what the early movers are doing and saying. They must also look for the community aspectnot just hosted softwarethat is key to unlocking the primary benefit of cloud.
Greg Kefer is Vice President of Corporate Marketing for GT Nexus, a cloud-based collaboration platform provider. For more information, visit www. gtnexus.com.
Industry Focus
Healthcare Reform: A Wakeup Call to Global Life Sciences Companies

Pharmaceutical, medical device and biotechnology companies must act now to prepare for the changing landscape of life sciences
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By Natalia Kosk
n many industries, transformation overhaul designed to restructure processes for improved longterm benefits and market gain is not uncommon. For the life sciences space, such changes will only continue as a number of factors including increased patient safety, improved product accountability and changing federal mandates govern healthcare. In fact, under the Patient Protection and Affordable Care Act (PPACA)signed into law in 2010 with an aim to reduce overall healthcare costcome 2014 citizens without healthcare coverage will have to pay a penalty (certain provisions, exemptions and clauses pending). As a result, a potential consumer shift in increased healthcare service adoptionin addition to the changing landscape of requested consumer carewould put added pressure on all supply chain elements of the life sciences space. To prepare, service and technology providers in the pharmaceutical, medical device and biotechnology
space must adapt to new business models and strategy adoption to combat with the changing scale of healthcare.
Changes are happening now

Regulatory compliance (65 percent), reform and legislation continue to reign at the top of the list (typically, above 50 percent) of general business concerns of the healthcare industry. In fact, in both 2011 and 2012, increasing regulations beat cost management as the top supply chain issue, according to a 2012 Pain in the (Supply) Chain Survey report from UPS. Issues including increased competition, consolidation and access to funding such as for technological investmentswhile equally importantmade up a lower percentage of concerns, according to the report. Many hospitals have a capital budget that is already pre-set, explained Margie Rivera, Manager, Supply Chain and Contracting,
Cardiovascular Institute, Florida Hospital Orlando. Some hospitals dont like to spend money on capitalonly on machinery or equipment they need. They outweigh investing in RFID technology or having an ultrasound machine. The executive level teams in hospitals which are usually the clinicians and not always business peopledont always understand these things and dont work well in being able to get the ROI. So its a challenge to prove to a hospital why you need to use such tools. Besides regulatory pressure, also relevant are the current supply chain changes in healthcare that are causing a need for new distribution channels and models. Approximately 33 billion this year alone in patent-protected pharmaceuticals are transitioning to generic with an estimated 26 billion to follow suit next year, according to Scott Szwast, Director of Marketing, Healthcare, UPS, which creates a lot of impetus now for these companies
Industry Focus
to suddenly improve and focus on the supply chain, he explained. Up until fairly recently, there was not a lot of impetus for supply chain improvement because there was a lot of cash moving in the supply chain because of the cost of the pharmaceuticals. Right now, specialty drugs that are very tailored for specific and very narrowly-defined patient universe make up about 17 percent of the total drug market. By 2020, thats going to be 40 percent. The globalization of the middle class is another factor impacting healthcare. Such a population shift, if it continues, will affect healthcare supply chains and the outsourced production model. The increased adoption for more healthcare services on a larger base by consumers also goes hand in hand with improved product security and product protection (prevention of product damage or spoilage)two areas that have become significantly important most currently than in previous years of the UPS Pain in the (Supply) Chain Survey, Szwast confirmed. And while most companies surveyed in the report confirmed that they are cautiously optimistic (38 percent) on the state of the healthcare industry today, the majority of U.S. companies (83 percent of those surveyed in the UPS report) plan to investover the next three to five yearsin global market opportunities with technology adoption as the top strategy. product traceability and streamlined inventory management. Weve used technology to help link our customers up with their supply base, explained Matt Walker, Executive Vice President, Supply Chain for TAKE Solutions, Princeton, N.J. We try to be as full service as possible to companies whether they are conducting clinical activity or are in the process of supply chain intelligence, said Endicott. In some ways we dont really sell an RFID product. We use RFID to drive the efficiencies and automation. RFID is an enabler but what we really sell is savings and piece of mind. Our focus on building the supply chain capabilities of the software and enabling it to be incredibly flexible and able to obtain those cost goals of our customers that is what is different about WaveMarks technology.
In the field
As mentioned, the changing shift in healthcare service care consequently creates this added need for traceability and inventory tracking. Florida Hospital is one such healthcare facility and service provider that understands the pains of tracking inventory to improve product management and improve its supply chain efficiency. To do so, in 2008 it implemented WaveMarks clinical inventory management solution (CIMS) to track more than 5,000 high-value items in the catheterization (Cath) lab and electrophysiology (EP) lab, helping to optimize inventory levels and effectively track product expirations and recalls. Since then, WaveMarks technology, which leverages RFID via its smart cabinets and Point of Service (POS) readers, also was deployed in the Ginsburg Tower, which houses the Florida Hospital Cardiovascular Institute that conducts nearly 15,000 advanced cardiac procedures annually. WaveMark also expanded into the Cardiovascular Operating Room (CVOR), which includes a pediatric hybrid operating room (OR), interventional cardiology and electrophysiology. The expansion to the pediatrics OR marks the hospitals most recent, as it was completed
WaveMarks smart RFID cabinets deployed in the Florida Hospital Cardiovascular Institute enable efficient inventory management optimization. Photo courtesy WaveMark Inc.
The link between

While resources such as the Health Information and Publications Network (HIPNet) are available to healthcare and garnering more industry discussion, global technology solutions and service providers in the life sciences space also help service providers address such issues as
dealing with their commercialized product and moving that around efficiently. When it comes to healthcare providers, this issue of serialization requires our customers to be very complete and thorough in the tracking of their product all the way through to consumption of that serialized product by the end user. Carola Endicott, Senior Vice President of Operations and Services for Littleton, Mass.-based WaveMark Inc., echoed similar sentiments. The link that we provide between hospitals and their suppliers is the
Industry Focus
earlier this year. Without WaveMark, we would have to have two or three more employees and would probably not reorder efficiently, said Rivera. We have 12 cath labs operating at the same time. So every technician would be responsible for every item that was used on every patient and giving this information to our staff so they can reorder efficiently. And thats not feasibleit doesnt always happen that way. Even more significant for cardiology, having inventory to cover the extensive scope of the human anatomy also is crucial and adds to the demand of inventory management tracked by personnel. A patient can have 10 different vessels with different sizes, Rivera continued. So for every type of item, you have to have more than one size. And as we use one, we have to reorder. It becomes very difficult to manage. To alleviate this, the RFID cabinets provide real-time visibility into items about to expire, recall items or management of just-in-time items, (such as, items that healthcare service providers may stock up on in fear of running out based on past experiences). The WaveMark CIMS also enables the user to view all of the data in real time via Web-based reporting. What WaveMark does is, we take the manual process out of inventory and we automate it with these smart cabinets, said Endicott. So instead of calculating inventory based on an in- and out-series of transactions, the system reads the inventory in real time to provide a positive read of that inventory on a continuous basis.
Initiate best practices before it is too late

From changes in drug and medical device manufacturing, to stricter regimes and practices in healthcare settings requiring new strategies to global expansiontheres no doubt that major upheavals in the life sciences space will continue. Add the need for patient safety and improved product accountability to the mix and the result is an industry that continues to grow in excess of six percent per year. As massive changes continue to occur over the next five to 10 years, the life sciences space will have to adapt and adopt new ways to deliver necessary innovation and proficient patient service to continue driving this industry forward. For the complete story, which goes live Dec. 12, visit www.sdcexec.com.
Results Through Applied Intelligence JVKellyGroup, Inc. provides cost reduction and risk mitigation solutions for some of the worlds largest organizations. By offering an integrated set of analytics, sourcing services and technology, JVKellyGroup helps ensure that a companys spend is effectively analyzed, sourced, managed, and monitored.
Why JVKellyGroup, Inc.? Clients benefit from the expertise of years of experience our consultants have in actual sourcing roles including former CPOs, VPs of Procurement and Sourcing, Buyers, Analysts and Sourcing Technology Developers. Our services will help decrease sourcing cycle time, increase potential savings capture due to expertise in commodity areas as well as improve supplier relationships and mitigate supplier risk. Experience With a team of professionals, averaging more than 15 years of hands-on, industry experience, our projects provide practical solutions and quantifiable benefits. JVKellyGroup has led engagements across a diverse range of industry verticals and worked with virtually every category of indirect spend. Industries
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USA Truck Drives Enhanced Partner Collaboration

Leverages integration tools to process and monitor 300 EDI trading partner transactions
espite the changing nature of both the transportation industry and its corporate structure during the last three decades, one thing has remained a constant at USA Truckintelligent collaboration. As a leading North American dry van truckload carrier and general commodities transporter, USA Truck relies on electronic communication to interchange data with its vast partner network and to process transactions quickly, accurately and securely. The companys team of three electronic data interchange (EDI) coordinators relies on a transportation management system (TMS) to manage customer data and provide customers with advance shipping notices, delivery status updates and invoices.
USA Truck implements EXTOLs Business Integrator (EBI) to better manage companys transactions and 300 EDI trading partners.
EXTOL takes the wheel

In late 2010, USA Truck faced growing customer demand for more sophisticated electronic data interchange (EDI). Its EDI translation software was unable to handle USA Trucks growth and testing highlighted potential difficulties processing transactions for its networknow at 300 EDI trading partners. In addition, USA Trucks IT team sought greater reporting capabilities and visibility into its transaction data. With our prior software, if a mom-and-pop operation had trouble communicating, it could drastically affect or altogether stop transmissions for larger core customers, said Les
Bicknell, Manager of Applications Support for USA Truck. We understood that any future provider would need to support multithreaded transactions to guarantee customer continuity. After evaluating several providers, Bicknell and his team selected EXTOLs Business Integrator (EBI) to better manage the companys transaction load and ensure more efficient, secure communications across its trading partner network. EBIs multi-threading capability enabled USA Truck to communicate with multiple trading partners concurrently and to start processing transactions the moment the transmission completed. Its team could also connect its various applications and partners through configurable, automated business processes and integration services supported by EBI, including in-depth reporting and transaction history logs for complete system visibility. EXTOL offered the ideal combination of utility and price that caught our attention right away, said Bicknell. With EXTOL, we expect
to receive all the functionalities the larger providers offer but at a far lower cost. Our decision to go with EXTOL was an easy one.
Accelerating the transition

Once EBI was selected in January 2011, USA Truck and EXTOL jointly developed a plan to convert all of its 300 EDI trading partners to the new EXTOL software and dispatch system by July 2011. One EBI was configured EBI with the carriers TMS, USA Trucks infrastructure could extract transaction data from the TMS and transmit it to customers via EBI throughout the lifecycle of the order. We were extremely pleased to work with EXTOLs professional services group and they made our hard deadline possible, said Bicknell. We are grateful to have worked closely with such a capable expert team, and we will continue to lean on them as we refine and update our software down the road.
www.extol.com
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Iasset Revamps the Distribution Model

Distribution Centrals renewal rates jump from 37 to 90 percent with cloud-based partner relationship management solution
roding margins, manual processes that take time away from profit-generating opportunities, how to increase and maintain renewals and manage assets vital to business growthdistributors worldwide are often faced with these challenges as are their fellow channel organizations. But new solutions on the market today enable distributorssuch as Australia-based Distribution Central Pty Ltd.to become more efficient in ensuring data integrity, sharing business intelligence with manufacturers and resellers, tracking certifications and compliance while at the same time controlling and reducing transaction costs. Unsatisfied with available tools at the time, Scott Frew, Founder and Chief Executive Officer of Distribution Central, developed the iasset.com solution for more effective supply chain business management, which officially launched in 2009 after two years of research & development (R&D). Upon deployment of iasset.com, Distribution Central overcame its challenges, was able to do more with less and experienced company growth as a result, which created the need to hire more personnel. iasset.com provides true asset management for the entire product lifecycleits no longer simply a time-sensitive issue but how you make the most of this information, said Nick Verykios, Managing
Director of Distribution Central. Established in 2004, Distribution Central provides IT channel distribution and support services via a complete outsourced services hub and in-depth distribution business model for manufacturers, resellers and customers. After iasset.com was implemented, Distribution Centrals renewal business transformed from just another business process into a go-tomarket program, enabling sales staff to make proactive calls based upon strong data integrity. The deployment propelled the companys renewals rate from 37 percent to 90 percent (holding at 90 percent yearly) and also increased the market share for all of the hubs manufacturers. The iasset.com solution provides easy information access constantly validating and updating data throughout the channel for accurate pipeline forecastingwhile increasing customer service and satisfaction. iasset.com freed Distribution Centrals staff from manually managing assets, while also keeping its database, renewal process and administrative functions in-house. By integrating with existing front-office systems, iasset.com also helped the company manage its peopleto onboard new staff and train sales teams on products, incentives and marketing messages for across-the-board consistency. It tracks certifications and compliance automatically and customizes
marketing campaigns for resellers quickly. In addition, it provides access for resellers to manage and grow their own businesses. iasset.com lets us drill into the database and make our marketing campaigns and messaging more relevant instead of generic, said Verykios. We can customize every opportunity. This makes us and our resellers more profitable, he concluded.
About iasset.com
Built by the channel for the channel, iasset.com is a cloud-based Partner Relationship Management application that helps organizations automate up to 90 percent of their transactional processes. This allows companies to regain control of their data and improve data integrity while helping them to scale and proactively manage the product lifecycle for increased profitability. Increase sales pipelines, boost renewals, train sales teams, track certification and compliance, enhance cross- and upsell opportunities and automatically validate and augment your data for accurate BI data with iasset.com. To learn more, call (408) 918-3077 or email info@iasset.com.
www.iasset.com
Tractor Supply Company Entrusts Hy-Tek with Supply Chain Expansion

Hy-Tek provides one-stop-shop partnership to Tractor Supply Company to support its store growth and customer service
to locating and purchasing the right equipment at the most desirable prices, Hy-Tek also assumed responsibility for delivering, installing and testing all material handling equipment.
TSC brings e-commerce fulfillment in-house

Committed to meeting growing consumer demand, TSC undertook the Franklin Distribution Center project with an important goal in mindto house the companys e-commerce fulfillment capabilities. Currently handled by an outside vendor, e-commerce is expected to be in-house and operational by early 2013, enabling TSC to handle direct shipments to individual consumers nationwidecontrolling service quality and costs in the process. Mindful of TSCs e-commerce strategy and the need to individually box and ship consumers online orders, Hy-Tek selected and installed pick-and-pack equipment to help get the job done. It also worked with TSC to ensure that the retailers newest and largest DC came equipped with modern conveyor and sorter technology; dense storage systems; and processes adapted to TSCs challenging product mix. Added material handling features include voice technology to allow for hands-free picking and labeling a fast, safe, and accurate approach
Tractor Supply Companys Franklin Distribution Center meets all of its material handling requirements within its 830,000-square-foot space.
hen Tractor Supply Company (TSC)the largest retail farm and ranch store chain in the U.S. sought to expand its supply chain, the company turned to its trusted partner Columbus, Ohio-based Hy-Tek Material Handling Inc., the premier single-source provider of material handling solutions. TSC tasked Hy-Tek to assist in the design and installation of a new $55 million, 830,000-square-foot distribution center (DC) in Franklin, Ky. In turn, the DC would efficiently and effectively store, select and ship merchandise to existing and new retail stores in a multi-state region. Working shoulder-to-shoulder with TSCs logistics department, real estate department and general contractor, Hy-Tek served as systems integrator for the Franklin Distribution
Center to provide custom design; procurement; installation; and implementation services for all of TSCs material handling requirements. Hy-Tek provides distribution and manufacturing facilities with integrated systems that deliver both efficiency and profitability, said Donnie Johnson, Vice President of Sales, Integrated Systems Division, Hy-Tek. No matter what degree of automation you need, we employ the optimum balance of processes, equipment, people and technology to produce the best solution for your business. To that end, Hy-Tek sourced and managed proven-reliable suppliers to ensure that conveyors, rack and other material handling equipment fit the building structure, as well as TSCs needs and goals. In addition
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Franklin DC System Snapshot

Provides 830,000 square feet under one roof Expands TSCs network capacity by about 30 percent Houses 250 full-time team members Features over 25,000 pallet positions Features 3,300 bin shelving locations Two four-level picking modules, 430 feet long Houses a 700-foot-long sortation system with 35 diverts Houses a 19,500-square-foot induction/sortation platform Houses a 20,000 lineal-foot conveyor system Provides 25,400 feet of pallet flow rail Provides 560,100 feet of carton flow rail Provides 18,000 Easy Slotter location dividers all-important. Hy-Tek always delivers as promised. Hy-Tek has the breadth, depth and support capabilities that TSC needs. Hy-Tek does it all, eliminating the need for supplemental vendors. Hy-Tek is a full-service, experienced, one-stop shop. With more than 1,000 vendors represented and up to 12,000 items in stock, the Franklin Distribution Center acts as a supply point for TSC stores within a 300-to-400-mile radius, similar to its other crosscountry DCs. Adding approximately 90 to 100 new stores per year, TSC is focused on efficiently expanding its supply chain capacity to support retail store growth; maintain appropriate stock levels; control costs; and safeguard customers loyalty and business.
to order fulfillment. Thanks to a particularly quiet conveyor system, (sourced, selected and installed by Hy-Tek), sorter noise is greatly reduced. Team members can actually converse while standing under the sorterimpossible at older distribution centers. As a result, the Franklin DC is set up to service its stores quickly and effectively.
Brentwood, Tenn.-based Tractor Supply Company is the largest retail farm and ranch store chain in the U.S. The company operates over 1,150 retail stores in 45 states and employs more than 17,000 team members. Founded in 1938 as a mail order catalog business offering tractor parts to Americas family farmers, today TSC is a leading edge retailer with revenues exceeding $4 billion. on-time and on-budget. Thats what makes Hy-Tek such a valued partner to Tractor Supply Company. On deck for TSC & Hy-Tek is a new distribution center in Macon, Georgia. Hy-Tek will begin installing and implementing a material handling system similar to the Franklin DC in January 2013. Slated to be operational by summer 2013, the Macon DC will further enhance Tractor Supply Companys ability to deliver quality merchandise, unsurpassed service and fair pricing to its customers.
The end result

TSCs Franklin Distribution Centerjust one of several projects that TSC entrusted to Hy-Tek since 2008now provides warehouse space and distribution capacity for up to 300 stores; helps balance the workload among TSC distribution centers in six other states; and supports the companys steady growth. With nearly 1,200 stores now open, TSC projects a total of 2,100 stores will be operational within the next 10 years. The retail chain attributes the success of its partnership with HyTek to mutual trust and respect, shared responsibility for results and a commitment to excellence in design and execution. Trust is the primary reason we selected Hy-Tek, said Tom Guschke, Director, Logistics Engineering, Tractor Supply Company. In a project of this magnitude, trust is
Formula for success

The partnership between TSC and Hy-Tek is a win-win, thanks to Hy-Teks proven record of successful integration and implementation. There are a lot of integration companies in the U.S., said Guschke. In Tractor Supply Companys experience, however, the success of a project like our Franklin DC depends heavily on implementation. It is critical to use an integrator with the experience, skills and capabilities necessary to deliver
Hy-Tek Material Handling Inc., based in Columbus, Ohio is the premier single-source provider of material handling solutions for an extensive range of industries including manufacturing, distribution, retail, pharmaceutical, food & beverage (F&B), electronics and automotive. Its four divisions Integrated Systems, Mobile Equipment, Lighting Solutions, and Storage & Handlingdeliver cost-effective, efficient solutions for every material handling application. Contact www.hy-tek. net or (800) 818-6242.
Market Segments
Unwrap the Savings in Retail

Holiday season or not, everybody wants a piece of the retail action
By Natalia Kosk
y the time you read this, you probably will have completed your holiday shopping whether you stood in line at 4 a.m. on Black Friday with the other brave souls outside of Best Buy; or added items into your virtual shopping cart over a cup of Joe on Cyber Monday. Then again, we cant eliminate the last minute shoppers who get to enjoy bumping into fellow consumers at the checkout line days before Christmas. Whatever the case, this month were giving you the exclusive on the conditions and trends that are changing the retail industry; what consumers need to be prepared for in the coming years; and how businesses and supply chain service providers must compete in order to stay in the game.
The driving force of ecommerce continues to revamp the retail space. As a result, traditional brick-and-mortar retailers and additional key supply chain providers must bring to market new strategies and services to remain in the game.
From your local store to the Web

Whether youre a brick-and-mortar store, an exclusive online retailer or a combination of the two, at the end of the day, retail comes down to two things: profit for global businesses; and meeting consumer demand on both products and services. And how retailers address such factors continues to change due to a generation of new consumers. Todays digitally-empowered consumer continues to drive retail business models from traditional brick-and-mortar stores to an omnichannel marketplace. We felt the impact when such retail giants as Borders and certain Best Buy and Staples locations closed their doors
across the country in recent years. Such developments come as no surprise when 82 percent of consumers across the country agree that mobile shopping is the way to gowhether via tablets, mobile apps or computer, according to Apigee Corp. About 48 percent of consumers use their mobile device to do a price comparison on an item from inside a store. Additionally, 40 percent also using a mobile device to find a retail store, according to the API platform provider. But perhaps even more indicative of the mobile demand putting pressures on retailers, is the increasing number of online retailers who do bring different service to market. Most recently, eBay delivered a major platform redesign to provide consumers added features for online shopping the biggest of which impacted its homepage, which now enables visitors to follow brands, product type and any items sold via eBay. Earlier this year, Amazon.com Inc. made its move into the B2B
marketplace with the debut of AmazonSupply. And as the new Website is designed to provide customers with competitive prices on a wide selection of products in business and industrial categories from drill bits to polyimide tubing it also has a major impact on distributors. What AmazonSupply has done, is theyve gone out after several large companies that service the aftermarket partsthings like air conditioners, hot water heaters and furnaces, said Dr. James A. Tompkins, Founder and Chief Executive Officer, Tompkins International, Raleigh, N.C. And that is very dangerous because many of the companies make the majority of their money on the aftermarket servicenot on selling the original unit. The B2B sector has to be aware that this is a huge potential impact on them and on distributors. In the case of Yumani, sellers compete to bid for the customer, instead of traditional online retail
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Market Segments
platforms. With nearly 400,000 items available in the Yumani database, sellers work to deliver the lowest price on an item to provide the closest match that a consumer can pay. As a result, the price of an item actually goes down. Launched this past October, the company already met its January 2013 goal. Of all of our visitors to the Website, 10.8 percent of all unique traffic registered, explained Michael OHara, Chief Executive Officer, Yumani. And 76 percent of those actually request an item. That is another extraordinarily high conversion metric. Designed to benefit both consumers and sellers, the platform differentiates in the marketplace because it does allow sellers to compete to match for a consumers purchase. Via a Yunite group, consumers can post an item they want to buy and then recruit others interested in the same item to buy with youadding to its value. The platform is not only for the consumer but also for the seller, said Henry Zilberman, Founder of Yumani. My idea was to provide them both with a win-win situation. We worry about the customer getting the right price and we worry about the seller who should not have to spend so much money and pay fees they shouldnt have to. Yumani will increase business. Manufacturing will go up. Jobs will go up. And this is only the beginning. supply chain enablers and key partners as well. Online shoppers in the U.S. will spend $327 billion in 2016, up 45 percent from $226 billion this year and 62 percent from $202 billion in 2011, according to Forrester Research Inc. But while the increase in e-retail spending makes up a large part of the increasing shift in retail, businesses must understand that a one-size-fitsall approach to bring goods to market does not work. We cant just view online retail versus in store, Tompkins continued. The mistake companies make is they think that the objective is to be really good at omnichannel. But they have to be great at all three aspects online, in store and at omnichannel. Brick and mortars have to figure out how do I make my brick and mortar an asset with my multi-channels to allow me to gain market share. That is the key, said Tompkins. In fact, the move to omnichannel was largely compounded by the fact that certain consumers preferred different channelsmany of which had different preferences for shopping and different preferences for buying. Adding more to the allencompassing omnichannel are the requirements consumers place on their retailers, affecting their supply chains. Customers no longer solely rely on five-business-day shipping standards. Now, they want sameday shipment and generally free shippingthe latter of which often times proves beneficial to retailers as shoppers spend an average of 30 percent more when free shipping is
Logistics Role in the State of Wisconsins:

Profitable Sustainability Initiative
In 2010, the State of Wisconsin commissioned a group of companies to study profitable sustainability in 67-modest size companies. The team was led by WMEP (Wisconsin Manufacturing Extension Partnership) addressing the manufacturing aspects and consisted of SCS BT Squared (environment and larger energy); Focus on Energy (smaller energy projects), Baker-Tilly (financial and assisted with the calculations) and LogiServe (logistics). The team developed a process to conduct the analysis for each company in 3-steps: Diagnostic Identify & prioritize the opportunities Assessment Complete detailed analysis to determine cost / benefit Implementation Implement the appropriate projects Annual Financial Benefits (from 67 participating firms): $6.4 million in Savings $9.0 million in increased or retained Sales $10.4 million in in Total Economic Impact to the State of Wisconsin Key Annual Environmental Reductions: 8,930 lbs. of Solid Waste 4.3 million kilowatt hours 16.7 tons of Particulate Matter 0.4 million therms of Natural Gas 4,900 metric tonnes of CO2 305,780 Miles 50,965 gallons of Diesel Fuel
Gary A. Glisch
The Profitable Sustainability Initiative is expected to render a 25 to 1 ROI to the State of Wisconsin. Including LogiServe to address logistics paid significant dividends. Logistics accounted for almost 20% of the savings, a major contributor to reducing CO2, Oxides of Nitrogen and Particulate Matter; along with meaningful reductions in miles, diesel fuel and man-hours. Logistics Annual Financial Contributions: Aggregate Investment = $295,935 Aggregated Savings = $983,985 Average ROI = 3 to 1 Average Payback Years = .28 Oxides of Nitrogen by 20,385 lbs. Particulate Matter by 510 lbs. Man-Hours by 4,000
Deciding factors
In preparation for pre- and post-holiday season, such findings serve as an important wake-up call not just to retailers across the company, but their
Logistics Annual Environmental Reductions: Truck Miles by 305,780 Diesel Fuel Consumption by 50,965 gallons CO2 Emissions by 11,200 lbs.
Office: 414.777.5742; Mobile: 414.418.6316 Continuous Logistics Improvement Program; E-Mail: gglisch@logiserve.net
LogiServe Inc. 2360 N. 124th Street - Suite 203, Milwaukee, WI 53226
Market Segments
available, according to Kevin Reader, Chief Marketing Officer, Invata Intralogistics. Retailers looking at the omnichannel customer recognize that they have to control their delivery channels, said Reader. They are building and operating new distribution channels themselves in order to make sure that the customer experiencefrom research and info on the Web to order entry to delivery and receipt of a package by the customer is consistent across both brick-andmortar and ecommerce and that they have control of that channel. The opportunity is pretty significant. a price that wont necessarily cause huge financial strain on the company. The startupjust over one year oldservices over 2,400 online retail stores, processes an average of $1 million shipping labels per month and cuts online customers shipping time anywhere from one half to one third. In addition, ShipStation has five different levels of plansall of which come with a free DYMO Endicia account to provide a value-add for current and up-and-coming online business owners. In return, DYMO Endicia, which offers postage and shipping solutions for online sellers and warehouse shippers, becomes the United States Postal Service (USPS) expert for ShipStation, taking care of the logistics so ShipStation can focus on their core product and customer base. ShipStation has taken our technology and integrated it into their great user experience, said Rick Hernandez, Senior Manager of Business Development for DYMO Endicia. We make it easy to work with the postal service and integrate that technology into what you do and they make it easy to integrate into all of these order management systems, all of these online shopping carts they basically allow you to connect the postal service to the ecommerce solution that an online professional seller needs. Despite nationwide reports of eliminated USPS jobs and many businesses questioning the existence of the service provider five years from now, the growth of ecommerce validates the postal service companys position in the market. The e-commerce part of the business and the e-shippingthat is the growing part of the postal service business, said Amine Khechfe, General Manager and Co-founder, DYMO Endicia. As ecommerce goes up 45 percent in the next four years, the postal service will take a big chunk of that. The postal service is less expensive than all the other carriers because they already deliver to each household. And not only that, but they pass that rate to the shippers. And that is why you see some of the larger companies growing their volume with the postal service. So in the last year, the postal service shipping business actually gained market share points against the private carriers. And because of that, the postal service is putting a lot of money and effort around improved tracking and shipping which is really where the Endicia growth story is: focused on B2C, shipments under five poundsthe sweet spot of the postal serviceand the growth part of the business, confirmed Khechfe.
Added services
Consequently, the competitiveness in the retail space is putting pressures on those retailers to provide efficient shipping services as, again, customers want their purchased items sooner rather than later. Free shipping is where it is headed, confirmed Curtis Mitchell, Director of Business Development, ShipStation. Its very smart marketing and were starting to see that from some of the big boys out there like Amazon, Wal-Mart and Sears. And the average small-to medium-sized business owner who is trying to sell products on the Internetthey are feeling the pressure from the free shipping and are feeling like they need to do something to compete as well. Its getting to the point where some of these small-tomedium-size business owners are trying to increase the price to offer the best rate that they can so they can offer the free shipping without it having too much of an impact on their product price, said Mitchell. And Web-based shipping service provider ShipStation helps such business owners realize the better options that are available to handle small or batch shipping orders for
Actions speak out

In order to control the factors that affect the changing landscape of retail, the retailer must have clear visibility within their supply and demand chain. To do that, it will take more than automation for all retailer and supply chain players to understand and prepare for the changing multi-channel commerce landscape. Holiday season or not, consumer demand will continue to drive the changing landscape of retail. Todays always-connected consumer wants their information yesterday. In addition, they want the innovation of the future. As a result, a retailers three- or five-year plan no longer works as customers continue to drive changes in the commerce space. Instead, the retail industry must bring to market new strategies and services and act now to survive. For the complete story, which goes live Dec. 12, visit www.sdcexec.com.
Blazing the Trail of Sustainability

Accept trade-offs in order to optimize supply chain strategies
often are the norm, not the exception when it comes to supply chain operations optimizationthroughout a supply chain is critical to ensuring overall success. waste that is produced and emissions. Those metrics need to be examined more closely as well. For example, is any of the energy used renewable? Are the emissions toxic? Is waste recyclable or is it hazardous? It isnt likely that companies will be able to create a list of all the metrics and then check them all off. Whats important is to evaluate the metrics, determine ideal baselines and then optimize those areas that align best with goals and requirements while holding all the others as close to the baselines as possible. During supply chain optimization efforts, its important for executives to be mindful that when improving one benchmark, it may adversely impact another. Companies need to look holistically at the supply chain to balance any trade-offs that will have to be made. Successful companies often find incremental solutions that gradually improve environmental performance while minimizing burden in other areas. To fully understand the trade-offs inherent in their choices, executives must be able to analyze the entire value chain of a product or service in terms of cost and environmental impact. In doing so, they can make certain that various components in that chain interact in ways that benefit the whole system. Ultimately, no green initiative will succeed unless it has a proven value such as better economics for the
Sustainable actions
Identifying, tracking and managing supply chain emissions is essential to optimization efforts, with the primary goal of detecting inefficiencies in fuel, electricity and water consumption and then correcting those inefficiencies to help eliminate waste and reduce costs. In addition, companies need to be aware of various reporting requirements, identify opportunities for improvement and reducing costs. Monitoring and reducing carbon footprints also makes good business sense. Not only does it help eliminate waste and reduce costs internally, it also can help companies choose more efficient business partners and better mitigate risks caused by sudden changes in energy and fuel prices. In addition, lower carbon footprints can improve corporate brands; and companies can gain an advantage over competitors by providing comprehensive emissions information. The metrics used to determine the environmental impacts of supply chains include water use, energy use,
photos.com
By Dr. Chet Chaffee

nderstanding the environmental impacts across your organizations supply chain is imperative. Theres no question that companies must assess, evaluate and optimize their supply chain operations in order to reduce their carbon footprint. In fact, government and industry are strongly urging the issue. And theres no denying that todays customers like green business. Additionally, optimized supply chains with smaller carbon footprints are more efficient, less costly and less likely to experience sudden changes in energy and fuel prices. Because of these factors, careful analysis of all trade-offswhich
company; improved benefits to the customer; and a marketing advantage for the products and services. Companies often can rely on internal management controls to assess and document their supply chain optimization efforts and better understand the trade-offs they make. External controlssuch as the reporting requirements from government entities and industry do not often require companies to delineate the trade-offs made as they work to reduce their environmental footprints. The heightened public awareness of the relationship between business and the environment in recent years has a direct impact on supply chain management and creates opportunities for companies. It has raised questions that many executives now are trying to answer: How will we incorporate green, sustainable practices into supply chain operations? How can we assess the trade-offs between sustainability and cost control? And how do we value long-term sustainability in the same equations as growth and profitability? And it has created marketing opportunities to communicate objectives and accomplishments for the company as well as products and services.
Ultimately, no green initiative will succeed unless it has a proven value.

allows the FTC to take enforcement action against deceptive claims, which can lead to Commission orders prohibiting deceptive advertising. If a company then violates these orders, it would be subject to fines. Industry initiatives also provide companies with a platform on which to devise and build their greenhouse gas emissions reporting initiatives. For example, the Global Reporting Initiative (GRI) provides companies and organizations with a comprehensive sustainabilityreporting framework aimed at promoting economic, environmental and social sustainability. Additionally, the future of public reporting will have an even greater focus on transparency. The continued push for corporate social responsibility (CSR) reporting is one such indicator. The Dow Jones Sustainability Index defines CSR as a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments. The GRIs sustainability reporting framework looks more broadly at an organizations economic, environmental, social and governance performance and organizations ability to maintain that performance. Establishing a sustainability reporting process, according to the GRI, helps organizations set goals, measure performance and manage change; and is a key platform for communicating positive and negative sustainability impactsincluding trade-offs. determine the best supply chain measures that meet their specific requirements and strategic goals and then analyze and compare those measures to understand ifand whereany tradeoffs might occur. Through lifecycle assessments that leverage what-if scenarios and modeling and risk/opportunity matrices, companies can strike the right balance as they optimize supply chain operations and reduce their supply chains environmental footprint. By utilizing the latest in lifecycle assessment services, network design, optimization and planning systems which incorporate environmental footprint considerationsexecutives can both incorporate environmental practices within their supply chain, while at the same time provide people with a transparent view of their entire supply chain. Companies today can and should be a force for goodblazing the trail on how to care for the environment. By adopting cutting-edge tools and services to help better understand a companies environmental challenges and opportunities, executives can indeed adapt to the inevitable trade-offs while still achieving environmental and financial success together.
Dr. Chet Chaffee is Vice President, Life Cycle Assessment at FirstCarbon Solutions, Irvine, Calif. With over 50 technical papers to his credit, Chaffee provided expert testimony before the U.S. House of Representatives, the U.S. Environmental Protection Agency and the Federal Trade Commission. As former executive vice president at Scientific Certification Systems, he directed over 200 lifecycle and sustainability initiatives for General Motors, Home Depot and Unilever.
Green initiatives that work

In its continuing effort to keep the marketers of green products honest, The Federal Trade Commission (FTC) in October released its revised Green Guides, a set of guidelines meant to help and remind marketers and advertisers who make claims that are truthful and non-deceptive. While the guides arent technically regulations, they describe the types of environmental claims the FTC may or may not find deceptive under Section 5 of the FTC Act. The Act
Deploy the steps today

Whats critical is that companies
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Supply & Demand Chain Executive
024-012
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Amber Road............................................5 www.AmberRoad.com Agility.....................................................11 www.agilitylogistics.com C.H. Robinson Worldwide Inc..........2, 3 www.chrobinson.com DSC Logistics..........................................7 www.dsclogistics.com Emirates SkyCargo..............................34 www.skycargo.com E2Open...................................................16 www.e2open.com EXTOL International Inc......................22 www.extol.com G.T. Nexus.......................................17, 18 www.gtnexus.com Hy-Tek Material Handling Inc......24, 25 www.hy-tek.net iasset.com Inc......................................23 www.iasset.com JVKellyGroup Inc.................................21 www.jvkg.com LogiServe..............................................27 www.logiserve.net Puridiom................................................13 www.puridom.com SDI Inc...................................................14 www.SDI.com
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professional development
Final Thoughts
By Natalia Kosk
SDCE: When a company first comes to youor to the University of Tennessees Center for Educationto learn more about vested outsourcing, what is the key takeaway they walk away with at the end of the day? KV: Simply put, they will leave a first meeting with an understanding that collaborating to share and create value worksno matter the size of the enterprise. I usually start by describing the 10 ailments that can plague outsourcing relationships and even destroy a promising partnership before it has a chance to develop. These ailments run the gamut from micromanaging the relationship to measuring too much, too little or ignoring the results of the fancy (and expensive) metrics put in play. At some point, the light bulb goes on in the roomthey come to an uncomfortable realization that yeah we are guilty of several of those things. Understanding the problems in the relationship is the first step to resolving themthey begin to see the value of working together to get to the win-win. SDCE: Your latest publication, Vested: How P&G, McDonald's and Microsoft are Redefining Winning in Business Relationships describes the actual processes each of these companies went through in applying the vested outsourcing concept and the details of their success as a result of that. In working with them, did the question of will the vested concept apply to all the services and processes I outsource ever come up? And if so, how was that company able to overcome such questions and other challenges with this business model?
Kate Vitasek gives SDCE the vested update

KV: Thats a great question and one that occurs with some frequency. A company hears about Vested and wonders whether its right for them. I often say the Vested business model which in a nutshell buys outcomes rather than paying for transactions is not necessarily suited for every outsourcing arrangement. Deciding to shift to a Vested relationship depends greatly on two factors: Is there a need and potential to create value and drive innovation? The other factor is the level of dependency that is required in the relationship (for example, the high cost of switching suppliers). A company that is simply buying a pure commodity where there is not potential to create value should use a transaction-based business model. SDCE: Once a company(s) decides that they want to apply the Vested model to how they operate their business, whats the next step? KV: Theres no set time period or dollar amount that creates a Vested partnership. Every relationship is different. Every arrangement brings its own unique culture and needs to the table. Adopting a Vested mindset in a serious way requires time and a top-down commitment to changing old mindsets. Its not a snap-your-finger and voila! process. Actually its hard work, but worth it. The University of Tennessees Center for Executive Education has a comprehensive set of publications, programs, workshops, courseware (both in-class and online), resources and tools that educate, enlighten and provide insight into the Vested process. (For more details on the
Kate Vitasek, Faculty, Center for Executive Education, University of Tennessee.
UTs programs, visit http://bit.ly/ VRscjy.) SDCE: Your most recent book is the fourth in your Vested series. And major corporations continue to utilize the Vested model. Whats next? KV: We are constantly busy refining our research in areas that support the Vested approach and its principles. Right now, we are revising and updating the second edition of the first Vested book, Vested Outsourcing: Five Rules That Will Transform Outsourcing, which will be published next year. And we are deep into a fifth book projectGetting to Wewhich also will be published in 2013. While I love the writing, I am most excited about taking the concept from research into practice by helping companies establish their own Vested agreements. To me, Vested is more than a methodologyit is really a growing business movement that is gaining adoption in many industries. I love developing and nurturing Vested and spreading the Vested mindset, both in UT classrooms, industry conferences, in the press and in company board rooms. The concepts of win-win, getting to we and transforming the way businesses work with each other are at the heart of whats nextand the Vested business model is transforming how companies and their providers work together.
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Supply and Demand Chanin 12 2012

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GLOBAL EXCLUSIVE: All Eyes on India p.

Manning Sustainability at Sea

The Purchasing Power of Sustainability:

Behind the Scenes

2012 C.H. Robinson Worldwide, Inc. All Rights Reserved. www.chrobinson.com

Capacity as a competitive advantage.

Tragedy Doesnt Choose a Season

12 Sustainability Output 15 Global Focus

The Energy of Green Purchasing

All Eyes on India

Healthcare Reform: A Wakeup Call to Global Life Sciences Companies

26 Market Segments 29 Green Factors

Unwrap the Savings in Retail

Blazing the Trail of Sustainability

Supply Chain Final Thoughts

Kate Vitasek updates SDCE on the vested way By Natalia Kosk

GT Nexus..........................................17, 18 EXTOL...................................................... 22 Iasset........................................................ 23 Hy-Tek Material Handling Inc.....24, 25

Tragedy Doesnt Choose a Season

December 2012 Volume 13 Issue 4

Editor Supply & Demand Chain Executive

6 Supply & Demand Chain Executive December 2012

8 Supply & Demand Chain Executive December 2012

December 2012 Supply & Demand Chain Executive 9

December 2012 Supply & Demand Chain Executive 11

The Energy of Green Purchasing

Sustainability facts and myths

Green purchasing and sustainability: two sides of the same coin

December 2012 Supply & Demand Chain Executive 13

More Green Supply Chain Award Recipients

For more green coverage, turn to page 29

All Eyes on India

A quick look at infrastructure

16 Supply & Demand Chain Executive December 2012

Turn Your Supply Chain to the Cloud

Cloud is like an electric utility

LinkedIn versus Outlook

The future cloud supply chain

Healthcare Reform: A Wakeup Call to Global Life Sciences Companies

Changes are happening now

The link between

Initiate best practices before it is too late

December 2012 Supply & Demand Chain Executive 21

USA Truck Drives Enhanced Partner Collaboration

EXTOL takes the wheel

Accelerating the transition

Iasset Revamps the Distribution Model

December 2012 Supply & Demand Chain Executive 23

Tractor Supply Company Entrusts Hy-Tek with Supply Chain Expansion

TSC brings e-commerce fulfillment in-house

Franklin DC System Snapshot

The end result

Formula for success

Unwrap the Savings in Retail

From your local store to the Web

Logistics Role in the State of Wisconsins:

LogiServe Inc. 2360 N. 124th Street - Suite 203, Milwaukee, WI 53226

December 2012 Supply & Demand Chain Executive 27

Actions speak out

Blazing the Trail of Sustainability

By Dr. Chet Chaffee

Ultimately, no green initiative will succeed unless it has a proven value.

Green initiatives that work

Deploy the steps today

Statement of Ownership, Management, and Circulation