FOCUS

— October 18, 2006

3PL Services

DHL Forms Strategic Partnership With Polar Air Cargo
DHL is forming a strategic partnership with Polar Air Cargo Worldwide, a wholly owned unit of Atlas Air Worldwide Holdings, Inc.. The partnership will significantly improve service to DHL Express customers shipping goods between the U.S. and Asia by securing long-term access to greater air capacity on Trans-Pacific air routes, reducing transit times and increasing reliability of delivery on both sides of the Pacific.
The commercial agreement will run for up to 20 years and will provide DHL Express guaranteed access to aircraft capacity in key global markets. In addition, DHL will have access to additional available aircraft capacity from Atlas Air, Inc., another subsidiary of AAWW, as agreed between the parties. The long-term partnership will provide Polar a long-term committed revenue stream, and strengthen the company's position as a reliable source of main deck freight capacity. With this strengthening, Polar's existing customers will be assured continued access to reliable, high quality service levels.
http://www.dpwn.de/

Toll Asia Poised for Growth and New Investment
The Asian region's leading integrated logistics provider, Toll Group, is pleased to expand its brand into Asia with the launch of Toll Asia, formerly known as SembCorp Logistics. Toll Asia's footprint makes Toll Group the region's pre-eminent integrated logistics supplier, providing cross border solutions with global reach and an Asian focus. One of its first investments will be S$100 million in the re-development of the Loyang Offshore Supply Base near Singapore.
The re-branding of SembCorp Logistics comes after the successful integration of the $AUD 1 billion Asian supply chain company into Toll Group, which can now link customers to countries across the region.
Toll Group expects Toll Asia's revenues to double by 2010 as the business harnesses Toll's extensive expertise in logistics, unique supply chain technologies and extensive infrastructure assets which include ports, warehousing, road fleets, ships, rail rolling stock and air freight capacity, to create innovative cross-border supply chain solutions.
http://www.toll.com.au/

NETGEAR turns to APL Logistics for RFID mandate
Global supply chain management leader APL Logistics has won the RFID tagging solution business of Silicon Valley-based NETGEAR, a leading provider of wireless networking equipment. Under terms of the agreement, APL Logistics will affix Radio Frequency Identification tags to cases of NETGEAR product sent to selected Best Buy stores in the U.S. The deal highlights a growing trend among major retailers who mandate that their suppliers use Radio Frequency Identification (RFID) tags on shipments. It also confirms APL Logistics' role as an innovative provider of the technology for supply chain management.
http://www.apllogistics.com

API to Consolidate Warehouse Operations
Aerospace Products International, Inc. (API), a wholly-owned subsidiary of First Aviation Services Inc.and a leading provider of innovative distribution and supply chain services for the aviation industry, will open a technically advanced 172,000 square foot facility in Southaven, Mississippi, 2.5 miles from the Memphis International Airport and the FedEx Express hub. API will consolidate four of its warehouse facilities into a recently completed distribution center developed byIndustrial Developments International, Inc. (IDI) in early 2007. The lease between IDI and API has a 10 year term with various expansion options. The Company believes that the modern facility coupled with recent significant investments in SAP and state of the art telephony technology enable API to continue to provide its customers the highest levels of service and support.
http://www.apiworldwide.com/

SEKO Expands Its Reach Across Canada
SEKO, a global provider of freight forwarding and logistics solutions, recently opened SEKO-Canada, expanding its presence in North America. The SEKO-Canada office is a result of a long standing, 10-year relationship between SEKO and the Cole Group, a logistics provider and customs broker with roughly 350 employees and more than 30 offices throughout Canada. The partnership became official on October 1, 2006. The Cole Group provides a broad range of customs, transportation and warehousing services and is comprised of Cole Freight Inc., Cole International Inc., Abco International Freight Inc., Abco International Freight (USA) Inc. and Cancon Logistics. Due to this close relationship between SEKO and the Cole Group, SEKO-Canada will be able to provide an expanded market reach as well as greater cross-border service offerings to its customers.
http://www.jdmandassociates.com/

D.W. Morgan Signs Extended Contract with Kaiser Permanente
D.W. Morgan Company has extended its contract with Kaiser-Permanente, the nation's leading integrated health care provider to manage the distribution of its pharmaceutical supplies within North America. Under the contract, Kaiser Permanente will use Morgan's transportation management solutions and supply chain management technology.
Morgan's solution for Kaiser Permanente includes integrated supply chain management nd transportation management solutions. As an important logistics component in the distribution of Kaiser Permanente's pharmaceutical supplies, Morgan provides on-site logistics professionals to support the health care provider's transportation needs. Morgan's dedicated staff will help the Kaiser Permanente track and manage the movement of goods using ChainLinq©, Morgan's proprietary online transportation management system. Morgan's technology tools will also aid the reporting process through further visibility into all points of the supply chain.
http://www.dwmorgan.com/

Exel's Network Review for Lamson & Sessions Leads to Opening of New Distribution Center
Exel, a North American contract logistics provider, commenced full operations at a new regional distribution center in Dallas for Lamson & Sessions, which manufactures and markets a wide variety of industry-leading products for the telecommunications, electrical, construction, retail, power utility and waste-water markets. The 178,200-square-foot facility serves Lamson & Sessions' Home Products and Carlon businesses.Exel determined that a distribution center in the Dallas region would deliver improved customer service to Lamson & Sessions' distributors and big box retailers, propel growth in this strategic market, provide substantial transportation savings and reduce order cycle time.
The Dallas distribution center is the second largest in the Lamson & Sessions network. The facility will process 25 to 30 percent of the company's total U.S. shipments and is equipped with space for the storage of hazardous material products. Key performance indicators and warehouse management technologies are aligned with the existing network framework for benchmarking purposes and consistent measurement.
http://www.dpwn.de/

TNT Signs Final Agreement To Acquire Hoau Group
TNT today signed the Equity Transfer Agreement with Hoau Group in Shanghai, People's Republic of China, to acquire its nationwide road transport and freight business. The signing of the agreement (comparable with a Sale and Purchase Agreement) follows the signing of a Letter of Intent, announced on 6 December 2005 and the Framework Agreement signed on 27 February 2006. Both parties expect to complete the transaction early 2007, subject to approval of the government of the People's Republic of China.
With over 1100 depots and 56 hubs in China, the acquisition of Hoau offers TNT comprehensive road coverage in China and is in line with TNT's strategic focus on integrated domestic and international networks.
http://group.tnt.com/

Christian Salvesen Nominated for RFID Breakthrough Awards
European logistics company Christian Salvesen has been nominated for a series of technical innovation awards for its ground-breaking use of Radio Frequency Identification (RFID) technology. Nominated by their RFID systems supplier Secureseal, Christian Salvesen has made significant gains in operating efficiency from a RFID-based system. Roll out of Secureseal system began in September 2005 and the system now provides real time visibility on the location of 1500 Christian Salvesen trailers with a detection network extending 45 sites in the UK.
The system was designed from the ground-up using newly developed low power RFID tagging technology linked to GPRS communications. Providing a straightforward 'site location' solution, the system eliminates the need for costly units and infrastructure and cost up to 75% less than conventional trailer tracking systems. The Awards 2006 are organized in conjunction with the 7th RFID Networking Forum.
http://www.rfidforum.com

Click here to subscribe or renew your subscription to Global Logistics & Supply Chain Strategies magazine