Chemical Transportation & Logistics Blog

CLX Logistics LLC, announces its technology partnership with Kewill, a global leader in multimodal transportation management software, as Kewill acquires the IBM^® Sterling TMS and its associated development and support teams. Rebranded as Kewill Transport, the top-rated SaaS TMS will be incorporated within Kewill’s Kewill MOVE^®  transportation and trade management platform.

World-class transportation technology is core to CLX’s broad set of logistics service offerings: driving efficiencies in managed services operations; funneling data into analytical and consulting activities; and delivering sustained cost and service value to customers of the CLX Technologies business unit.

“We are excited to welcome Kewill as a new strategic partner,” notes Steve Hamilton, CEO and President of CLX Logistics – which announced the Kewill partnership at the CLX User Conference and Leadership Forum in Philadelphia on October 1^st.  “We have been selling and delivering the IBM Sterling TMS for 10+ years and believe it to already be the leading product in the on-demand global-TMS market.  With expanded investment from Kewill, we see this market leadership gaining significant momentum.”

From Bob Farrell, President and CEO at Kewill, “The acquisition of the IBM Sterling TMS enhances Kewill’s position in the multimodal transportation management space, and, in particular, in the North American marketplace, enabling us to extend the range of solutions we offer to shippers and retailers.  We see the logistics domain expertise and the value adding services of CLX Logistics as a significant advantage in helping us take this expanded suite of capabilities to market.”

Per Mike Skinner, Senior Vice President, CLX Technologies, “Combining Kewill’s market leading trade/customs management and parcel/package/air freight capabilities with the ground and ocean transportation execution strengths of the IBM TMS creates a truly market leading global TMS for all modes.  We are looking forward to working with Kewill in North America and all global markets, particularly in Europe and Asia where Kewill has a strong leadership presence with a broad set of transportation capabilities.”

For more information about the Kewill acquisition of TMS, please read the press release posted from Kewill here or visit their website at http://www.kewill.com/.

LLamasoft, the global leader in supply chain design software solutions, and CLX Logistics, a global provider of comprehensive logistics management, technology, and supply chain consulting services, announced an agreement to offer European truckload, global ocean and global parcel data to LLamasoft customers for use in strategic supply chain design.

CLX Logistics has offered a dedicated transportation benchmark service for more than 10 years. During this time, the number of companies using the service has grown substantially. Today, the CLX Logistics Benchmark database contains in excess of EUR 4.1 billion contracted transportation expenditures (no spot market) with detailed data on a full range of global, pan-European and domestic routes and a variety of transport modes. CLX Logistics rate benchmarking service will now be available to LLamasoft customers through a referral agreement.

The partnership will provide LLamasoft customers with an additional resource from which to draw valuable global reference data for use in supply chain modeling.  “The growing number of companies participating in our benchmarking proves the added value that our accurate and reliable apple-to-apple comparison brings,” said Marc Huijgen, CLX Logistics European VP. “We have seen companies that considered their processes to be best-of-breed, saving double-digit percentages after deploying our benchmark data in their procurement strategy. Hence we are excited to team up with the leading supply chain design software company LLamasoft to jointly help both our clients make better supply chain decisions.”

“Making CLX rate benchmarking service available to our customers is part of our continuing effort to help fill in missing model data—thus removing one of the biggest obstacles to successful supply chain design initiatives,” said LLamasoft president and CEO Donald Hicks. “Highly sought-after European truckload data will enable a higher level of data accuracy in modeling to help support critical supply chain decision-making.”

For more information, contact Andrew Hamilton at ahamilton@clxlogistics.com

CLX Logistics LLC was chosen as a Top 100 3PL Provider for 2014 by Inbound Logistics magazine for its fifth consecutive year. IL editors selected CLX Logistics from a pool of more than 300 companies based on the company’s diverse operational capabilities and experience to meet readers’ unique supply chain and logistics needs.

Inbound Logistics’ Top 100 3PL Provider’s list serves as a qualitative assessment of service providers that are best equipped to meet and surpass readers’ evolving outsourcing needs. Each year, Inbound Logistics editors select the best logistics solutions providers by carefully evaluating submitted information, conducting personal interviews and online research, and comparing that data to readers’ burgeoning global supply chain and logistics challenges.  The selected service providers, in the opinion of Inbound Logistics editors, offer the diverse operational capabilities and experience to meet readers’ unique supply chain and logistics needs.

“World-class logistics performance is crucial for companies of all sizes – from Fortune 500 to SMBs. Given the scope and scale of that challenge, IL editors recognize that CLX Logistics provides the kinds of solutions that companies large and small rely on to solve the tactical logistics issues of serving customers better, faster, and more efficiently,” explains Felecia Stratton, Editor, Inbound Logistics. “CLX Logistics is responsive and continues to anticipate evolving needs by also offering the strategic solutions required to drive business process improvement and change for customers. For those reasons, Inbound Logistics editors are proud to recognize CLX Logistics as one of our 2014 Top 100 3PLs.”

“This has been an exciting year for CLX Logistics as we united our subsidiaries under one parent company and expanded our mission to serve the transportation needs of clients in different vertical markets on a global basis,” notes Steve Hamilton, President & CEO of CLX Logistics.  “We are proud to be recognized by Inbound Logistics as a Top 100 3PL Service Provider for the fifth consecutive year as it serves as an affirmation to our ongoing dedication and support in addressing the supply chain needs of our growing customer base.”

CLX Logistics LLC will hold its third annual On-Demand Global TMS User Conference in Philadelphia from September 30 – October 1, 2014.

This invite-only event will feature workshops on transportation management systems including hands-on training on IBM’s global on-demand, web-based TMS (transportation management system) software as well as panel discussions focusing on industry trends like increasing transportation costs and tightening capacity.

The conference will feature noted industry experts Steve Menzies with Trinity Industries, Taylor Robinson of PLG Rail Consulting, Glenn Sokoloski of  Ashland Incorporated and Randy Strutz of Quality Distribution, a major bulk trucking company.

Dr. Christopher Norek, supply chain veteran and senior educator from PennState’s Executive Programs and World Campus, will serve as keynote speaker for the conference.  In addition to being an accomplished speaker, Dr. Norek has published numerous articles for industry publications including Supply Chain Management Review, Supply & Demand Chain Executive and the International Journal of Logistics Management.

“CLX Logistics continues to host this event to further educate our customers on maximizing the delivered benefits of TMS technology in the areas of real-time shipment tracking; visibility and control over transportation costs and business processes as well as automation of freight bill processing and interactions with a global carrier network,” notes Mike Skinner, Vice President, CLX Logistics Technologies.  “Our On-Demand Global TMS User Conference also brings together the best in the transportation logistics industry, providing opportunities for networking among our customers and associates.”

For more information on CLX Logistics On-Demand Global TMS User Conference, email Corinne Bertino at cbertino@clxlogistics.com or call at (215) 461-6201.

Insights from European Market Study Can Benefit Shippers Globally

By Stan La Haye
Senior Consultant

ChemLogix Logistics

European market trends indicate that while transport volumes and rates continued to fall during the first half of 2013, market indicators suggest that rates will start rising again. Industry figures showed that as of Q3, road transport supply and demand was more balanced, with rates slightly rising. While a slight decrease in transport volumes is expected in 2013 as compared to 2012, a slight increase in transport volumes is anticipated in 2014 when transport rates are expected to simultaneously increase.

This data is supported by a CLX Logistics Transportation Benchmark Study conducted with the European logistics market.  A majority of participants indicated that rates have fallen or will continue to fall further during 2013, although they expect an increase for 2014.

To fully benefit from the current low transport rates, the time is now to tender and contract your freight rates again.   While simple in theory, many things can go wrong when executing a transport tender such as delays (delayed implementation of rates = less cost saving and a lower return on investment), high internal workloads (up to 400 man-hours for completing a tender process) and an intermittent relationship between shipper and carrier.

Research conducted among CLX Logistics customers revealed five major pitfalls when procuring transport that is indicative of any negotiation, whether domestic or global.  These include:

1.  Tender executed without establishing savings potential

2.  No reliable baseline on which to determine ROI

3.  Too little time, no expertise and not the right tools

4.  No equal opportunities for all participants

5.  Insufficient priority and long response times

Tender Execution Without Establishing Savings Potential

How do you know if there is a savings potential within your current transport spend? Do you use available industry benchmarks to determine where you stand compared to the market? Or is it a “gut feeling” that says it is time to tender?

If cost reduction is the primary goal of the tender, insight into potential savings prior to executing a full tender is of great added value. Think about all the lost time and resources if there is no cost reduction achieved after finalizing a tender.

Through a benchmark study, transport rates can be compared against similar companies and savings potential identified down to the lane level.  Using this insight, a well-founded decision can be made whether to only renegotiate a limited number of transport lanes or to execute a full tender when there is sufficient savings potential.

No Reliable Baseline

A reliable baseline is a realistic reflection of a company’s actual shipping profile and forms the basis of a tender.  In addition to providing an in-depth understanding of current transportation costs, a good baseline identifies transport lanes and criteria for setting rates.  When determining whether to execute a full tender, the baseline is used to calculate the savings and the success of the tender based on new rates.  An unreliable baseline leads to wrong tender focus and the lack of a savings indication.  Shippers must remember to use historical data over a representative period and adjust as necessary for future changes in the shipping profile.

Too Little Time, No Expertise and Not the Right Tools

Often, a tender is executed along with the daily activities of one of the logistics planners or managers. Executing a full transportation tender generates an extreme peak workload; 400 man hours (almost a full FTE!) over a period of 3 months is often required.  As a result, performing a tender is difficult to combine with daily work. In addition, sufficient in-house expertise is often not available to create good tender documentation and calculate transport scenarios based on new offers.

Lack of resources always results in a delay of the process and a lower return on investment. By partly outsourcing the procurement process, the logistics department is relieved of excessive burden and maximum financial results can be achieved in a short timeframe.  Prompt implementation of low transport rates results in more immediate savings!

No Equal Opportunities for all Participants

Objectivity in a transport tender is of great importance to find the best fit between the shipper and carriers. The best fit is a combination of compatible factors including price, corporate culture, quality and service.  Through an independent review and evaluation of all offers using an established correct assessment criteria (quantitative and qualitative), negotiations can be limited to a select number of carriers.

Insufficient Priority and Long Response Times

Balance the number of carriers, location and geographical coverage when selecting your transportation team.  While contracting many different carriers may provide higher savings, internal management may increase the pressure on organizational departments (think of number of audits, business reviews, invoices, contact points, etc.).   But don’t limit your carriers to just one or two.   A limited carrier base increases risk should no capacity be available within a required response time and a solution must be found on the spot market.

Often, one primary carrier is assigned per transport lane, but with a designated backup carrier. The backup carrier can be selected from the total pool of “primary carriers” to limit the number of contracted carriers, while still guaranteeing sufficient coverage and availability.

Summary

By estimating the potential savings prior to a tender, valuable time and resources are not wasted unnecessarily on a failed expedition. Ensure that a reliable baseline is set ​​to calculate the savings of the tender (and the success of the tender) and do not start a tender if insufficient resources and knowledge cannot sufficient support the endeavor.

Ensure current market data is available that can be used during project planning.  Supplement resources, if needed, with external specialists that can offer the process and market knowledge, as well as analysis tools, to maximize tender execution and secure optimum cost savings results.

Need help with executing a tender process?   Using CLX Logistics Benchmark services, we can identify savings potential prior to a transport tender, after which we are able to execute the tender quickly but thoroughly with our structured tender approach and analysis tools.

To learn more, contact Marc Huijgen, Vice President, CLX Logistics Europe, at huijgen@lhc.nl or +31(0)40 293 86 16 or Mike Challman, Vice President, North American Operations, at mchallman@chemlogix.com  or (215) 461-3842.