A new report has been released by IBM Business Consulting Services focused on the container shipping sector. The authors of the report conclude that the greatest long-term challenge in meeting and adapting to new market forces is the potential competition from package delivery providers such as UPS, TNT, FedEx and DHL.

According to the report, the forces for change come from the demand by customers for greater reliability at lower total cost. This combined with the high levels of growth which the market is currently experiencing is placing considerable strain on existing infrastructure, challenging companies to find new ways to remain competitive and responsive.

The report believes that the integrators have a major opportunity to extend their services into the shipping sector as they possess the type of business cultures, systems and processes needed to offer the product reliability and visibility presently demanded by shippers. The authors go on to state that the asset focused business culture which pervades the shipping industry could act as a hindrance to its future competitiveness.

The report predicts that over the next ten years shippers will seek more integrated providers above and beyond simple point-to-point transportation providers. These customers will demand a high level of visibility and reliability similar to that provided by packaged delivery producers. As a result, significant opportunity exists for shipping container companies and packaged delivery providers to redefine the industry. Unless existing shipping lines respond to meet customer demands, IBM believes that the express parcels integrators will redefine the structure of this industry.

Source: Transport Intelligence

To request a full version of the report ‘Setting a new course in the container shipping industry’, please e-mail:
Americas Deborah Obendorf drobend @ us.ibm.com
Asia Pacific Henrik Anker Olesen hao @ cn.ibm.com
Europe, Middle East and Africa Nils Ole Klejnstrup nok @ dk.ibm.com

The Glossary of Terms in Logistics & Shipping is the most comprehensive paper-based dictionary and therefore the standard for defining terms used in the area of Logistics and Shipping. Use this powerful tool to expand your professional vocabulary and ensure that everyone on your team is speaking the same language. www.theKnowledgeTransfer.com

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Manhattan Associates, Inc. (NASDAQ: MANH), the global leader in providing supply chain execution and optimization solutions, has signed a definitive agreement to acquire Evant, Inc., a provider of supply chain planning and replenishment solutions. Privately held and based in San Francisco and Atlanta, Evant provides solutions to more than 60 companies in the retail, manufacturing and wholesale distribution industries, including many that are joint Manhattan Associates clients. Under the terms of the agreement, Manhattan Associates will pay approximately USD 50 million in cash for the company.

The Evant acquisition extends Manhattan Associates’ solution footprint beyond its current supply chain execution leadership position. This combination of planning, optimization and execution solutions would make Manhattan Associates the only company in the world that provides the complete footprint for supply chain management. Moreover, this acquisition provides the existing Evant customer base the advantage of Manhattan Associates’ suite of Integrated Logistics Solutions, which includes Distributed Order Management, Warehouse Management, Transportation Management, Trading Partner Management, Reverse Logistics Management and RFID in a Box.

The acquisition is subject to customary closing conditions and is expected to close on or before September 30, 2005. The transaction is expected to be about USD 0.02 dilutive to fourth quarter adjusted earnings per share (EPS) for Manhattan Associates this year. For 2006, it is expected the acquisition will add about USD 0.03 cents to adjusted EPS. At this time, it is not possible to estimate the impact of the transaction under Generally Accepted Accounting Principles (GAAP) due to the need to complete an independent appraisal of the net assets being acquired and the related purchase accounting adjustments. The transaction has been approved by both the Manhattan Associates board of directors and the Evant board of directors.

Source: Manhattan Associates

The Glossary of Terms in Logistics & Shipping is the most comprehensive paper-based dictionary and therefore the standard for defining terms used in the area of Logistics and Shipping. Use this powerful tool to expand your professional vocabulary and ensure that everyone on your team is speaking the same language. www.theKnowledgeTransfer.com

paperback student version $ 19,99 hardcover executive version $ 29,99

PierPASS Inc. announced heavy usage during the first two weeks of the OffPeak program, which established night and Saturday shifts at the Ports of Los Angeles and Long Beach to relieve congestion in and around the ports.

Prior to OffPeak?s launch on July 23, PierPASS had set a goal of moving 15 to 20 percent of cargo during OffPeak shifts after the first 12 months of operation. But during the first two weeks of the program, OffPeak shifts were typically handling nearly 30 percent of daily cargo traffic, resulting in a noticeable reduction in congestion during peak traffic times on freeways leading to the ports, and relieving congestion inside the terminals. More than 88,000 truck trips were shifted out peak-hour traffic during the program?s first two weeks.

Under the OffPeak program, all international container terminals in the two ports have established five new shifts per week (Monday through Thursday from 6:00 p.m. to 3:00 a.m. and Saturday from 8:00 a.m. to 6:00 p.m.). As an incentive to use the new OffPeak shifts, a Traffic Mitigation Fee is now required for most cargo movement during peak hours (Monday through Friday, 3:00 a.m. to 6:00 p.m.).

PierPASS is a not-for-profit company created by marine terminal operators to reduce congestion and improve air quality in and around the Ports of Los Angeles and Long Beach. OffPeak is the off peak hours program created by PierPASS. OffPeak provides an incentive for cargo owners to move cargo at night and on weekends, in order to reduce truck traffic and pollution during peak daytime traffic hours and to alleviate port congestion.

A.P. M?ller-M?rsk A/S today announced that the acquisition of Royal P&O Nedlloyd N.V. is being completed today. All conditions to the offer have been fulfilled and payment for the tendered shares will be made today.

Philip Green, Royal P&O Nedlloyd CEO, and David Robbie, Royal P&O Nedlloyd CFO, will step down. Philip Green will assist and work with A.P. M?ller-M?rsk A/S for a period during the integration. David Robbie has decided to leave shortly after settlement.

Eric Sisco, current Managing Director of Maersk Espa?a S.A. and Area Manager of Maersk’s Iberia and Morocco Area (Spain, Portugal, and Morocco), will assume the position as CEO of Royal P&O Nedlloyd N.V.

P&O Nedlloyd will give notice of withdrawal to specified consortia and conferences. Until February 2006 P&O Nedlloyd and Maersk Sealand will continue to operate as separate shipping lines. This is to offer customers stability of network and services throughout the coming peak season, to keep services and network intact throughout this year, and to honour P&O Nedlloyd’s commitments to various conferences and consortia.

After February 2006, Maersk Sealand and P&O Nedlloyd will be branded under the new name of Maersk Line. Maersk Logistics and P&O Nedlloyd Logistics will be integrated under the brand name of Maersk Logistics.

The full integration will be completed in stages and is expected completed by the end of 2006.

Source: Maersk

The bitter intellectual property fight between Intermec Technologies Corp., and Symbol Technologies Inc., has escalated to the U.S. International Trade Commission (ITC), which early August revealed that it is investigating whether Symbol has violated U.S. trade practices by allegedly marketing patent-infringing products.

The latest legal dispute comes at a bad time for Symbol. The Holtsville, N.Y. supplier of hand-held mobile computing yesterday revealed that its CEO, William Nuti, has resigned to become CEO at NCR Corp., replacing Mark Hurd who recently took the helm at Hewlett-Packard Co.

Nutti’s departure preceded Symbol’s disclosure earlier today that the company lost $30.5 million in the second quarter ended June 30, on sales of $427.8 million. This compared with net earnings of $28.8 million on revenues of $432.8 million for the like period last year. Symbol’s Q2 results represented a complete reversal from the prior period, when its profits tripled, on strong revenue growth.

Intermec and Symbol have battled over intellectual property over the past few years, with each filing suits over RFID technology.

The latest complaint filed by Intermec on June 30, 2005, alleges that Symbol has violated section 337 of the Tariff Act of 1930. Section 337 states that imported products that allegedly violate U.S. intellectual property rights can be barred from entry into the U.S.

The case before the ITC is related to three Symbol handheld mobile computing devices: the MC50 Enterprise Digital Assistant; the MC9000 series of industrial class mobile computers; and the PPT8800 wireless PDA.

The potential impact of the ITC litigation was unclear at press time. The case will be referred to the Honorable Sidney Harris, an ITC administrative law judge, who will hold an evidentiary hearing at the “earliest practicable time,” according to a ITC press release. At that time, Judge Harris will make an initial determination as to whether or not Symbol is violating Section 337.

Source: Managing Automation

RFID adoption among manufacturers is about to go into high gear. As many as 40% of all U.S. manufacturers — in industries as diverse as aerospace, pharmaceuticals, semiconductors, automotive, and mining — will deploy RFID by 2010, up from under 10% today, estimates Kara Romanow, an analyst with AMR Research. That’s a tremendous jump, considering that most companies using RFID today are running only limited trials.

This sharp escalation is also going to make the cash registers of RFID suppliers, including Intermec Technologies, Texas Instruments (TXN), Philips, Alien Technology, and Boeing vendor Symbol (SBL), and start to ring with an ever-increasing frequency. The $1.7 billion RFID industry is expected to balloon to $5.9 billion by 2008, according to technology market researcher Venture Development.

RFID suppliers should see a sharp escalation in demand in mid-2006. That’s when manufacturers are expected to first start moving from pilot tests to large-scale RFID deployments as new, industry-standard RFID technology comes to market, says Tom Miller, president of RFID systems supplier Intermec, part of automation giant UNOVA (UNA). Called Gen 2 RFID, these new readers and tags will be cheaper, a lot more accurate, and work at distances up to 30% longer than their predecessors.

Many manufacturers have been waiting to deploy RFID until Gen 2 comes out in late 2005 to early 2006. That’s because this long-awaited new technology is incompatible with previous generations of RFID. But when it does hit the market, manufacturers should start moving to RFID full speed.

Source: Business Week Online

The “Logistics Management” readers paid homage to 17 contract distribution firms operating in the US for outstanding service. Three of those companies?FedEx Supply Chain Services, UPS Supply Chain Solutions, and Con-Way Logistics?also won accolades last year. Joining them in the MVP ranks were P&O Nedlloyd Logistics, Lynden Logistics, UTi Integrated Logistics, Kane is Able, Americold Logistics, Total Logistic Control (TLC), NYK Logistics, Averitt Express Supply Chain Solutions, Expeditors International of Washington, Kuehne & Nagel Logistics, Caterpillar Logistics Services, Penske Logistics, TNT Logistics, and Pacer Global Logistics.

Third-party logistics companies have improved their performance in some areas, as the ratings for two categories increased compared to last year. The score for order fulfillment advanced from 7.35 to 7.94, while inventory management posted a gain, rising from 5.11 to 5.75. Scores for three other categories, on the other hand, declined. The rating for carrier selection and negotiation slipped from 7.68 to 7.65, the score for transportation and distribution dropped from 8.22 to 7.55, and the rating for logistics information systems fell from 5.90 to 5.67.

Despite those numbers, the overall weighted score for 3PLs rose from 34.26 to 34.55.

The readers selected P&O Nedlloyd Logistics (40.08), Lynden Logistics (40.00) and FedEx Supply Chain Services (39.68) with the highest overall score.

Click for the complete results of the 17 best 3PL’s

Source: Logistics Management, Reed Research Group

When the readers of Supply & Demand Chain Executive consistently say in surveys and face-to-face interviews that they use both the print magazine and SDCExec.com to learn about new solutions and best practices for enabling the supply chain, to understand trends in supply chain technology, and to benchmark their own companies’ enablement initiatives with those of other enterprises across industry verticals, the editorial staff listens.

For this reason, the criteria for this year’s “100″ feature focus on the end users of supply chain technology to learn how enterprises are working with top solution providers to enable their supply and demand chains.

Based on submissions to the “100″ from end users and solution providers, the judging committee for the “100″ identified a list of the top supply and demand chain initiatives at small, midsize and large companies in a variety of industry sectors, highlighting the pain point(s) addressed by the initiatives (The Challenge), the technologies and services used to address those pain points (The Solution), the results of the initiatives (Return on Investment, or ROI), and plans for taking the project forward (Next Steps).

Supply & Demand Chain Executive’s goal with this year’s “100″ was to highlight a broad range of applications of technology and services to the challenges of supply chain improvement and transformation. The judging committee particularly sought innovative solutions that represent supply chain challenges at a variety of different types of companies.

How best can readers use the 2005 Supply & Demand Chain Executive 100 as a resource for enabling their own company’s supply and demand chain for competitive advantage? We suggest reviewing the information included in this article (please see the downloadable PDF below, or the text following this intro) to determine which solution providers can help enable those specific areas of the supply chain that are current priorities at your enterprise, as well as consulting the additional online information including the Global Enabled Supply and Demand Chain Directory of solution providers and our Best Practices Forum in order to assemble a list of appropriate enablers. The rest, of course, is up to you, but we hope you will find this year’s “100″ an educational place to start.

Click Here for a Downloadable PDF of the 2005 Supply & Demand Chain Executive