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    J u l y 2 0 0 8

    Penton Media Publication outsourced-logistics.com

    Also in this issue:

    Why Size Matters in Global

    Supply Chain Services

    Diebold and Menlo

    7 Steps to Improve

    Transport Management

    Part 2

    India Faces Its Logistics

    Challenges

    http://outsourced-logistics.com/http://outsourced-logistics.com/
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    Logistics Puzzle Solved

    Warehousing Transportation Contract Packaging Integrated Logistics

    Rubiks Cube is used by permission of Seven Towns Ltd. www.rubiks.com

    Let us put the puzzle pieces together for you. Our nationwide integrated

    logistics capabilities increase supply chain efficiency, streamline

    business, and help manage costs. Flexible, single-source solutions

    backed by Whatever It Takes service and personal, top-of-house

    attentionIf only all puzzles could be solved this easily.

    888-878-1177 www.saddlecrk.com

    http://www.rubiks.com/http://www.saddlecrk.com/http://www.rubiks.com/http://www.saddlecrk.com/
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    A New Paradigmin Logistics Outsourcing

    at an inflexion point and that this is the beginning of an

    explosion in spending on logistics outsourcing.

    A third metric is the breadth of spending on logistics

    services. For years, transportation services was the prin-

    cipal candidate for outsourcing. In recent years there has

    been dramatic growth in spending on third party provid-ers and on warehouse services. It is clear that as compa-

    nies make the move to outsourcing their decisions impact

    an array of Outsourced Logistics options.

    Our research also shows that outsourcing knows no

    geographic boundaries. It is no secret that companies

    source raw materials, finished goods and services from

    around the world. Our new editorial lineup reflects the

    global nature of outsourcing in several ways. We have

    contributors who offer a Euro-centric, Sino-centric or

    Latin American view of outsourcing. We have features

    dealing with 3PLs in China, compliance issues in the

    European Union and transparent global Outsourced

    Logistics networks, to name a few. When we speak the

    language of logistics outsourcing, we may communi-

    cate in English, but be speaking in the

    tongues of the global market.

    The market is changed and so is our

    magazine. We continue to write and

    editorialize about traditional logistics

    and SCM topics, but now we take a

    broader view. Our intent is to provide

    the community of manufacturers,

    3PLs and logistics services providerswith reliable information, useful case

    studies, and a forum for the discussion

    of best practices.

    There is indeed a new paradigm, in

    the market and in our magazine. It is

    called Outsourced Logistics.

    In recent years there has been a significant evolution

    in the use of logistics outsourcing in supply chain

    management. What was formerly an ad hoc deci-

    sion to hire a transportation provider or 3PL is now

    a transformative business practice. What was a business

    transaction is now a strategic business decision. What

    used to be contract logistics has become Outsourced

    Logistics.This magazine, Outsourced Logistics, is evolved from

    Logistics Today, and is edited to reflect the new paradigm

    in logistics outsourcing. Content of Outsourced Logistics

    is a mix of articles, features and stories about operations

    and strategy, logistics services and global markets. Our

    intent is to deliver useful content and to stimulate con-

    versation among the community of logistics management

    decision makers. Our message to our fellow community

    members is not as much the how to of global logistics

    outsourcing, but the why these are sound business

    practices.

    Our decision to re-focus our magazine and website

    is based on an analysis of over 15 years of data, extend-

    ing back at least to the early 1990s. References like Cap

    Gemini, Armstrong and Associates,

    our own Strategic Decision-Making in

    Supply Chain Management and other

    sources document clearly the move-

    ment of companies in three important

    areas. The first indicator is the grow-

    ing number of companies the data

    showed were and are using outsourc-

    ing to replace existing services. Thesecompanies use outsourcing not only

    as replacements but also as a way to

    enter new markets or to support new

    product introductions. Outsourcing is

    more than just cost savings.

    A second indicator is the hundreds

    of billions of dollars being spent annu-

    ally on outsourcing. In 2008 the num-

    ber is forecast to be well north of US

    $130 billion. And while that number

    is significant, indicators are that we are

    Outsourced Logistics |July 2008 | 1

    David H. Colby, Publisher,

    david.colby@penton.com

    Publishers Page

    mailto:david.colby@penton.commailto:david.colby@penton.com
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    MORE SPEED MORE TECHNOLOGY

    MORE SMARTS MORE CONNECTIVITY

    Our logo says it all. About our commitment to deliver supply chain excellence through an optimal and flexiblecombination of industry-leading logistics services and technology. Tap into our dense network of shippers andproviders,on demand transportation management and a suite of professional services tailored to your organization'sneeds.www.transplace.com

    http://www.transplace.com/http://www.transplace.com/
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    8Global Markets

    Coping with IndiaCommunity Voice

    World Economic Pace Slows

    14Operations

    Moving a 66 Ton Chamber from Brisbaneto Milwaukee

    Community VoiceThird-Party Logistics Labor PerformanceManagement, An Untapped Opportunity

    41Logistics Services

    US Logistics Costs Rise in 2007

    Community VoiceA 3PL by any other name

    Features

    20Global Strategy

    DHL Plans to Ease Its

    $1.3 Billion Headache

    Entry into the US domestic marketcost more than anticipated, causing the

    delivery giant to take dramatic measuresto staunch a gushing loss.

    26Global Strategy

    TNT Focuses on Emerging Markets

    On the tightwire of express services, TNTconcentrates on keeping its balance.

    28Supplier Selection

    Size Matters When Choosing a 3PLSupplier scope and scale loom large in the

    selection of a logistics provider.

    32PartneringCollaboration Trumps CostDiebold reaches for high-level supply chainpartnerships that support its strategic goals.

    36Field Report

    7 Steps to Transportation ManagementExcellenceThe second and final installment. Developing astrategy to build top-performing transportationmanagement.

    483PL FileC.H. Robinson Worldwide, Inc.

    Departments1 Publisher's Letter

    A New Paradigm in Logistics Outsourcing7 Editorial

    A Time for Decisive Action

    46 ClassifedsAdvertiser Index

    Outsourced Logistics |July 2008 | 3

    July 2008 Volume 1 , Numb er 2

    32

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    Have you

    heard?

    Outsourced-Logistics.com

    is more than just a

    companion site to the

    magazine. It is the online

    logistics daily, providing

    news, decision-making tools

    and information resources

    for logistics professionals.

    Daily News Featureson the industry

    White Papers

    Webcasts

    Current and PastIssues

    Forums/Rateem & Rankem

    Outsourced Logistics (ISSN 1547-1438) is published monthly by Penton Media, Inc.,9800 Metcalf Ave., Overland Park, KS 66212-2216.

    The magazine is sent to qualified management in the field of logistics.Periodicals postage paid at Shawnee Mission, KS and at additional mailing offices.

    Can. GST #R126431964. Publications Mail Agreement # 40026880.

    POSTMASTER: Send address changes toOutsourced Logistics, P.O. Box 2113, Skokie, IL 60076-7813.

    Printed in U.S.A. Copyright 2008 by Penton Media Inc.

    Send editorial correspondence to: Editor, Outsourced Logistics, 1300 E. 9th Street, Cleveland, OH 44114-1503,or editor@outsourcedlogistics.com

    For information on obtaining reprints:Contact Penton Reprints at 888.858.8851reprints@pentonreprints.com

    List Rentals:Walter Karl Inc., Rosalie Garcia, (845) 732-7027,

    rosalie.garcia@walterkarl.infousa.comCopying: Permission is granted to users registered with the Copyright Clearance Center Inc. (CCC) to photocopy any article, with the excep-

    tion of those for which separate ownership is indicated on the first page of the article, provided that a base fee of $1.25 per copy of the articleplus 60 per page is paid directly to the CCC, 222 Rosewood Dr., Danvers, MA 01923. (Code No. 0895-8548/08 $1.25 + $.60)

    Out-of-print copies are available as positive microfilm and can be ordered from National Archive Publishing Co. (NAPC)300 N. Zeeb Road, P.O. Box 998, Ann Arbor MI 48106-0998.

    Editorial

    Publishing DirectorDavid H. ColbyeMedia Market Development ManagerJason Washburn

    Circulation ManagerTyler MotsingerProduction Coordinator Rachel Klika

    Custom Media GroupTerrence GroganBob MacArthur Senior VP Industrial Group

    Chief Executive Officer John FrenchJohn.French@penton.com

    Chief Financial Officer Jean B. CliftonJean.Clifton@penton.com

    Chief Revenue Officer Darrell Denny

    Darrell.Denny@penton.com

    1300 E. 9th StreetCleveland, OH 44114-1503

    216.696.7000 216.696