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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

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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.

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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

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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

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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

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