We are pleased to announce that Yvonne Ecklund and Stan Lau have recently joined the Koch Maritime team to help customers meet international freight forwarding requirements as efficiently as possible.

Yvonne Ecklund’s previous work experience includes more than twenty-five years at DB Schenker USA. Most recently, she worked for Resource Logistics as domestic sales manager. Yvonne will focus on import/export operations for Koch Maritime. Previously a business manager residing in Shanghai, China, Stan Lau brings fluency in both Chinese Cantonese and Mandarin and will concentrate on container freight station (CFS) operations at Koch Maritime.

Yvonne and Stan bring their knowledge and skill to further establish our ability to address all international shipping requirements—and to come through for customers when it matters most. We hope you’ll get to meet Yvonne and Stan shortly.

-Larry Garaghty, COO
Koch Maritime, Inc.

GlobalShop 2010 registration is now open and we hope to see you next week (March 10-12) at the Sands Expo in Las Vegas. Stop by our booth #4230 to learn how we can help your complex logistics problems like we have for top retailers like CVS and Best Buy.

Don’t miss keynote speaker Wendy Liebmann, CEO of WSL/Strategic Retail, and her session “Hope for Retail-Finally” on Thursday, March 11 at 8:30-10 a.m.

When consumer confidence still looks like a rollercoaster ride, it’s hard to imagine there is any light at the end of the proverbial (shopping) tunnel. But there is. Wendy Liebmann will preview the results of WSL/Strategic Retail’s 2010 edition of How America Shops® Mega Trends study. Using the study, she’ll reveal where the light is: which shoppers, categories and channels, and what you can do to be “in the light.”

We hope you’ll turn “insights into action” along with us at GlobalShop 2010.

-Tom Hall, National Account Executive

We are pleased to announce that Tom Hall and Heather Doty have recently joined our Account team. As logistics veterans, they both bring comprehensive expertise that’s an ideal fit with our approach to providing our customers smarter supply chain connections.

Heather previously worked at YRC, most recently as Director of Field Sales. Prior to joining Koch Logistics, Tom worked as Business Development Manager for One Source Logistics. They will both work directly with our Koch Logistics customers to provide customized programs for optimal supply chain connections. We hope you’ll get to meet Tom and Heather shortly.

-Jeff Faust, Vice President & General Manager

We hope we’ll meet you next week at the 2010 RILA (Retail Industry Leaders Association) Logistics Conference, February 21-24 in Orlando, Florida.

I’m looking forward to an Afternoon with Archie Manning on Monday. All-American and NFL MVP Archie Manning’s appeal as a sports speaker transcends his on-field accomplishments, and even those of his sons. His example of persistence, perseverance, and leadership has endeared him to fans across the country.

View a PDF of the conference brochure here. Look for us in the Koch Logistics booth #210. And let us know what sessions you found most enjoyable.

-Darren Nelson, National Sales Manager

As we mentioned last month, Koch Logistics co-sponsored the ninth annual Best Practices Symposium with our partner, Store Opening Solutions. We recently returned from two great days in Florida and want to share our experiences for those of you not able to attend.

With several major retailers in attendance at the Symposium, we were able to facilitate some candid and open discussions regarding current industry challenges. Over the next few weeks, we’ll highlight some key research findings and explore what the “new normal” looks like for retailers. Please feel free to share your experiences with us.

We first identified the state of the retail supply chain, with help from Brian Gibson, Ph.D. Despite the compelling link between supply chain management (SCM) and retailing, few studies have addressed it. Along with the research team from Auburn College of Business, Gibson explored key issues in supply chain management through executive level interviews with more than 40 major retailers. During the Symposium, Brian presented answers to three key questions:

1.      What is the role of SCM in retail companies?

2.      What challenges are of greatest concern to retailers?

3.      What capabilities must retailers develop and leverage to achieve supply chain excellence?

The results suggest that retailers are expanding the role of SCM within the organization. According to the survey analysis, “While they remain responsible for cost efficient fulfillment of store orders, retail SCM executives are now highly engaged in strategic planning at the highest levels of the organization.” We found this to be evident with Symposium participants. We welcome your comments regarding the trend in your own company. How has your role evolved?

-Jennifer Johnson, National Account Executive

In my last blog I highlighted the importance of seeking a 3PL provider who will invest fully in the client relationship. At Koch Logistics, a new client relationship begins with process mapping to gain valuable insight into the customer’s needs as we (together) analyze the details of the way an organization operates. This insight identifies opportunities for improvement so we can implement a program to most effectively meet a client’s needs.

An integral piece of mapping is to identify key metrics or importance factors for our customer. Because we provide a customized approach, it’s critical to determine what is most important to the client—from complex problem solving to on-time delivery to increased visibility. Process mapping is the basis on which a customized program can build and succeed.

At Koch, we believe it is just as important to engage in “dual mapping” where we seek to match customer requirements to the core capabilities and strengths of vendors. It’s about determining a “best fit” for the customer based on their individual needs. This approach allows us to coordinate better service and increased productivity in the most cost-effective manner.

Take for instance the trend of tighter inventory management, especially among retailers, as evidenced this past holiday season. Dual process mapping allows Koch Logistics to select warehouse vendors to best accommodate the customer’s often strict requirements to keep stock low but not sacrifice service or performance. Koch’s customers have confidence that they are on the path to smarter supply chain connections.

-Meg Schmidt-Duncan, Manager of Carrier Relations

We saw summer bookings spike in ocean freight in Asia and while that typically continues during the pre-Christmas season through November, we have yet to see demand fall. What is typically seen as “slack season” has in fact become just the opposite. The increased demand stems from an earlier Chinese New Year falling this year in mid-February combined with retailer optimism as they begin to build inventories again. With overall shipping confidence up, most ocean freight in Asia is now booked at 150% capacity. The result is significant delays as cargo waits for the next available ship causing havoc for shippers. The frustration factor is on the rise not only from a timing perspective but cost as well. Increased demand and limited supply provided the backdrop for the General Rate Increase effective January 15.

At Koch Maritime, we’ve been able to successfully navigate this challenging environment for our customers by relying on our network of established relationships with access to substantial volume contracts. This ensures our customer’s shipments arrive in port as planned. The use of direct consolidations containers help us better manage costs. “Direct consol” offers customers seamless and cost-effective shipping between Asia and the U.S. as less than container load (LCL), shipments are consolidated in a port like Shanghai and can ship directly to the Midwest. Koch Maritime’s ability to offer multi-country consolidation in Asia and to seamlessly coordinate the domestic shipping from Los Angeles to Midwest hubs like Minneapolis/St. Paul or Chicago is clearly a smarter route. Cargo arrives to its destination on time and cost effectively.

-Larry Garaghty, COO
Koch Maritime, Inc.

By working with a logistics partner with detailed budgeting and analysis capabilities, shippers can expect to learn exactly what the cost drivers are. This increased level of information can provide dramatic results—oftentimes saving customers hundreds of thousands of dollars. By implementing a collaborative review process with your 3PL, inefficiencies can be identified and addressed jointly. This provides the opportunity for significant savings in the future. Collaboration with a 3PL to better manage the supply chain can help a company not only effectively manage costs, but improves its reputation and competitive position in the marketplace. Rethinking logistics does pay.

-Tom Torreson, Director of Administration

Our Ninth Annual Best Practices Symposium will feature speaker, Brian Gibson, Ph.D., Professor of Supply Chain Management at Auburn University. Gibson will present a recent study conducted by researchers at the university. Co-sponsored by Fortna, RILA and the Auburn University College of Business, the study provides insights into major supply chain challenges currently facing the retail industry and how retailers can successfully overcome these challenges.

A thought-provoking discussion regarding supply chain best practices will follow, focused on present conditions affecting supply chain processes.

The Symposium, cosponsored by Koch Logistics and Store Opening Solutions, Inc., will provide valuable insight into how retailers can do more with less. Learn more at http://www.storeopeningsolutions.com/symposium10requestinfo.htm.

It’s not too late to join us January 27-29 in Marco Island, Florida.

-Jennifer Johnson, National Account Executive

Do you really know where the costs are in your supply chain? Most shippers understand the importance of affordability, on-time delivery and controlling freight loss/damage.  But proactive supply chain managers also concern themselves with data.  Not just raw data, but the type of transactional and historical trend analysis rendered by business intelligence tools.  Access to this powerful information empowers shippers to easily become more efficient. Unfortunately, supply chain visibility isn’t always available to the shipper who works directly with multiple carriers or relies on suppliers, due partially to available technology platforms and/or the scale of the relationship.

Technology is obviously a powerful tool for achieving a more convenient and efficient supply chain. Look for a 3PL that will not only manage your physical transactions, but one that will help manage your business information using web-based tracking, automated rating tools, data-warehousing, custom reporting and analytics to create greater visibility and accountability throughout the entire process.

-Paul Grothe, Director of Information Technology