After two days of heavy rains earlier this week, and more flooding in my basement, it’s nice to see the sun out today. This was a relatively quiet week for news, but here are some items that crossed our radar screen:
- TNT and Con-way Freight Expand Joint Intercontinental Service Offering
- Sterling Commerce New Business Intelligence Strategy Takes its Market-Leading Supply Chain Applications to the Next Level
- Next Generation Logistics, Inc. Teams Up With NMB Solutions To Develop A Single Vendor TMS Shipment Solution Which Is “Plug & Play” With Microsoft Dynamics AX ERP
- January 2010 Surface Trade with Canada and Mexico Rose 19.5 Percent from January 2009
- FedEx Introduces First All-Electric Trucks To Be Used in the U.S. Parcel Delivery Business
- U.S. Transportation Secretary Ray LaHood Proposes Rule to Ban Texting for Truck and Bus Drivers
- Idle Pastime: In Off Hours, Truckers Pick Up Stitching (from Wall Street Journal)
There are many parallels between the software and third-party logistics (3PL) industries. The partnership between TNT and Con-way Freight is like two “best-of breeds” getting together to offer clients an “end-to-end” service (in contrast to an “ERP-like” 3PL doing it all itself). Here is an overview of the announced service per the press release:
“As part of the USA-to-Europe service, Con-way Freight will manage the pickup of U.S. shipments, followed by consolidation and loading to direct air cargo service from New York’s JFK International Airport to Europe. Upon arrival in Europe, TNT will manage customs clearance and deconsolidation at LiègeAirport in Belgium. Shipments will then enter TNT’s integrated air and road network for delivery to their final destinations in Europe. Transit times from JFK Airport to final destinations in Europe will typically range from three to six days.”
I haven’t had a chance to talk to the companies, but the main question I have is how well their IT systems are integrated. From a customer’s perspective, having end-to-end visibility to shipments, costs, milestones, etc. is a critical requirement. How well TNT and Con-way Freight link their IT systems together is just as important for customers as how well they link their physical transportation networks.
Sterling Commerce (an ARC client) is embedding business intelligence (BI) capabilities with its supply chain applications, which is a smart move considering that BI is a hot topic for customers. In the press release, the company points to the difference between high-level BI used mainly for strategic planning and historical reporting and operations-focused BI used by front-line employees to make smarter and faster day-to-day decisions. The latter is what Sterling Commerce is promoting and it’s something that other best-of-breed supply chain and logistics vendors have been offering too (see “A New Business Intelligence Solution…from a 3PL!” and “Making Smarter Decisions Faster” for related commentary).
The news regarding U.S. trade with Canada and Mexico is encouraging. Trade between the U.S. and its NAFTA trading partners reached $56.7 billion in January 2010, a 19.5 percent increase from January 2009. This was the largest year-over-year rise since March 2000 and it’s the second straight month of positive growth—trade was up 10.5 percent in December 2009 compared to December 2008. Let’s hope the trend continues.
Banning texting for truck drivers is a no brainer. But U.S. Transportation Secretary Ray LaHood might have a fight on his hands if he ever decides to ban quilting and knitting. According to the Wall Street Journal article, “With declining freight, truckers who drive hundreds of miles to make a delivery may not immediately have a load lined up for the return trip. So they bide time at truck stops, where they can shower, dine and sleep in their rigs. Though evidence is anecdotal, industry groups and trucking-company owners say the increase in spare time has spawned more hobbies [such as knitting and quilting].”
Truck driving is not an easy profession. I say embrace whatever brings color and creativity to your day.

