By Justin Cramer

Before Henry Ford created the mass market for automobiles, there were scores of buggy-whip factories. A few remain today and one of them is thriving. Hoover, that one-time buggy-whip company, now makes vacuum cleaners. Most other turn-of-the-century whip makers stubbornly stuck with dated technology and suffered the consequences, as did the coach manufacturers that bought from them.

There are many Value Added Resellers (VARs) today with a buggy-whip mentality. They are comfortable, or should we say complacent, with yesteryear’s software.

This is not to suggest that VARs are not a valuable resource. There are compelling reasons to use VARs. Good VARs not only know their software, but they know you. Working closely with a high-quality VAR can result in a smooth-running shipping operation.

VARs bring specialized knowledge in a specific area or vertical that no software manufacturer can. VARs take multiple pieces of dissimilar software and make them work as one In fact, here at Best Way Technologies we believe in VARs so much that we have made them our primary marketing channel.

But not all VARs are the same. Some are perfectly content to sell and install buggy-whip software.

The Benefits of Loyalty

Understand that it makes sense for VARs to stay loyal to specific brands of software. The longer they work with the software, the better they know it. They become more adept at determining where it works best and more efficient at installing, maintaining and upgrading it.

However, software can overstay its usefulness. It becomes buggy-whip software.

Unfortunately, some VARs stick with buggy-whip software too long. They refuse to adopt new, superior technology. It is too much trouble. The VARs would have to investigate and evaluate replacement products, retrain their sales and installation staffs, go through a learning curve, and face complaints from customers who do not want to pay for upgrades. Why bother? Why should VARs interrupt their smooth running, profitable businesses? The old stuff works. Sort of.

Software is not a commodity. It is not static. Some software gets better, some worse. New software comes along. Some software faces sunsetting and offered replacements may not be that hot.

We are not talking about superficial enhancements or “this year’s flavor.” We are talking about better software that can chop costs and improve a company’s competitive position.

VARs Must Reassess and Invest

So it makes sense for VARs to reassess and make the investment in time and money to be sure their customers have the best that is available.

By doing this they create happy, loyal customers and have the wherewithal to bring on new customers.

It is up to each VAR to determine the best route to take. Stick with buggy whips or change with the times.

Conversely, it is up to shippers to make sure their VARs are not selling buggy whips. After all, it is the shippers who are going to suffer in the long run. Shippers figure they can trust VARs who specialize in their needs. But if those VARs put in buggy-whip software, the shippers may lose ground to competitors who are taking advantage of the speed, features, flexibility and power of updated or newer software.

This means shippers have to do some due diligence of their own. This is not easy. Flip through your trade magazines. Each advertisement assures the reader that this product is the most productive and that product will thrill customers. Industry analysts can provide good information, but most companies do not have the budget for this.

So how to you find the best software for you?

How to Find the Best Software

Here is a tried and true approach.

o Make a list of new functionality that would be helpful now and in the near future

o Seek input from other departments, ranging from Sales to Loss Prevention

o Don’t forget to heavily involve the Shipping and IT departments

o Decide if you want your IT department to be able to modify business rules

o Compile a list of potential replacement software and representing VARs

o Cull out the ones that obviously do not have the features you need

o Call the contenders and get a list of customers you can visit

o Contact these shippers and ask lots of good questions

After doing this, you can contact your VAR and have a meaningful discussion about what is best for you. Hopefully there will not be a buggy whip in sight.

For more information call 866 944 2378

The service, called FedEx Express Nacional, will include delivery to any address in Mexico, online tracking and tracing, and a money-back guarantee.

It will initially create more than 180 jobs in Mexico in addition to the 1,000 it currently employs in the country. Operational hubs will be located in Toluca and San Luis Potosi.
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Hinda Incentives, a full-service reward-programs company, became an industry leader through a combination of high-quality inventory and supreme customer service. Proof of this winning combination is 20 to 40 percent annual growth.

The company distinguishes itself by providing award recipients with immediate gratification through fast and accurate shipping.

Benito Bustamante, Hinda’s director of warehouse operations, said, “If someone knows they are getting a reward, they want it yesterday. And we want to oblige.”

Hinda is known for its powerful online incentive programs that give participants immediate access to information and catalogs. The programs the company markets offer customization, instant communication, multi-layered reporting, and the ability to easily change the structure of the reward programs.

These differentiations have enabled the company to build a large, global customer base. Meeting their shipping demands is a challenge. Hinda handles 3,500 different products - filling three tractor-trailer loads a day with valuable products going to domestic and international destinations.

To handle its comprehensive online-incentive programs and attendant accounting and warehouse operations, the company has a sophisticated ERP system. As the system grew, communicating with the shipping department was becoming cumbersome.

It became apparent that without new processes, shipping system bottlenecks hamper Hinda’s ability to provide exceptional shipping. “We knew we had to step back, be creative and build a much more efficient, customer-pleasing shipping system, said Bustamante.

“We rounded up the various departments, including members of our warehouse team, merchandising and IT, and worked together to determine requirements. Scalability and flexibility topped the list. The system also needed to be secure and accountable.

“In addition to these operational requirements, we had our customer service goals,” said Bustamante. “Fast, accurate delivery is a critical corporate differentiation and key to continued exceptional growth and profitability. Our goal is to ship 100% of orders from in-stock inventory within 48 hours of processing. We could not do that economically when our workers were spending nearly a full minute manually typing and writing information for each box to be shipped.”

Hinda brought in Best Way Technologies, the maker of ProShip multi-carrier parcel shipping software, to help streamline the fulfillment process.

Processing speed had to be very fast. For instance, one recent customer wanted Hinda to ship 180,000 units over a short time period. ProShip’s server can process 600 packages a second. So Hinda now has the speed it needed. Next was a more flexible, integrated process.

Working with ProShip, Hinda combined picking, packing and shipping at each station and ran them in parallel. Each station has a touch-screen interface, creating efficiency and fewer mistakes. This touch-screen interface replaced a system that required individuals to work with 12 different screens.

Every morning, the person manning each station receives a detailed pick list for the day. He or she picks the items and returns to the station to pack and ship each order.

Lalo Tovar, Hinda’s warehouse manager, states, “we were hesitant at first to combine all the functions. We felt that our previous method of having different people involved in each order created a double check for errors. We feared an increase in mistakes. The opposite occurred. Errors went down and units shipped increased.”

To achieve create a bulletproof system, the company began accumulating a massive number of metrics. “We wanted to know where we were slow, said Tovar. “After speeding up one process, we moved to the next issue. The data was invaluable to building the system we now enjoy.”

The metrics remain a key part of Hinda’s shipping management. “They help in two ways,” said Bustamante. “They tell us if our order cycle is meeting objectives and if we are eliminating shipping errors. The second use of metrics is to provide incentives for our own employees.

“We believe in what we sell,” he said. “Our customers see the benefit in incentive programs, and so do we. We call our program ‘The Undisputed Leader’ program. And we spot outstanding work through the use of metrics. If a shipping station is required to ship at least 30 packages an hour, and someone is cranking out 45 or 50 with no errors, he or she is going to win points toward a special gift.”

“As we have continued to grow, the system is keeping up” said Tovar. “ The number of shipments we processing has increased tremendously. The volume we once had to work extra hours to complete is now easily completed by noon.” As volume increases, all we have to do is add work stations. We can continue to double every five years for some time to come without worrying about our shipping system.”

With the help of ProShip, Hinda achieved its goal of shipping 100% of orders from in-stock inventory within 48 hours of processing. In fact, more than 90% of orders are shipped within 24 hours.

“We also are pleased with our return on investment,” said Bustamante. “There are two ways to save money. Increase productivity or chop labor costs. We choose to use technology to achieve productivity. And it works. We have been able to grow dramatically without adding employees.”

Regarding return on investment: The system, with financial contributions from Hinda’s carriers, paid for itself within one year.

Other features of Hinda’s advanced shipping and fulfillment system include:
•Printed pick lists per individual employee with user-productivity metrics
•Integrated inventory with immediate inventory posting and availability for shipment
•Checking for order discrepancies
•Facilitating cross-dock shipping
•Pre-inspection of products for quality and accuracy
•Providing detailed information about what is in each individual box
•Provide Customer Service with the tracking number for each item
•Give drop-ship e-tracking information for vendors
•Double over wrap of delicate merchandise
•Customize shipping labels with each clients name and Hinda’s toll-free customer service number

“Everybody is more comfortable now,” said Bustamante, “Packages are flowing out the door, and our customers are happier than ever.”

Established in 1970, Chicago-based Hinda Incentives is one of the nation’s leading specialists in motivating employees and sales forces, and providing incentives to dealers, distributors, and clients. Hinda is also a pioneer in the development and support of cutting-edge, web-based motivational programs, such as an innovative points-based auction. Hinda offers the most current deluxe merchandise award catalog in the marketplace.

If you would like additional information about Hinda Incentives, please contact director of marketing, Alisa Schafer at (773) 890-5900 or Jennifer Juergens (917) 514-2627.

Righty and Lefty were hatched from eggs nearly four years ago at the Turtle Hospital in the Florida Keys as part of a research project.

But officials believed the pair could not be released into the ocean because the human-nurtured turtles would not survive there.

Enter Fed Ex.  The turtles are being expressed to their new home — a 19,000-gallon tank at The Maritime Museum in Norwalk, Connecticut.

“I have serious concerns about the UPS-DHL alliance, including effects on service, costs, consumer choice, and jobs,” Committee Chairman James L. Oberstar said in a statement. “This alliance is likely to eliminate two cargo air carriers, ABX and ASTAR, which now serve DHL and compete with UPS. This would lessen, or even eliminate, competition between UPS and DHL in providing overnight package delivery services.” He said the alliance could cost as many as 8,000 jobs in the state.

RICHMOND, Va. (AP) — United Parcel Service Inc. said Monday its heavy-freight division improved transit times on more than 1,200 traffic lanes with improvements such as two-day lanes from Chicago to Dallas and overnight shipments from Cincinnati to Memphis, Tenn.

The division of United Parcel Service said the improvements occurred in lines starting in the Midwest, Northeast and Mid-Atlantic. The company said it has reduced shipping times on more than 10,000 lanes over the last 18 months.

Other new two-day lanes include Boston to St. Louis and Philadelphia to Miami, UPS said. Overnight shipping now covers Columbus, Ohio, to Charlotte, N.C.

Potter said the postal service is grappling with issues that many businesses are facing, such as how to handle high fuel prices. He pointed to the postal service’s large fleet of alternative-fuel vehicles as a positive step.

He said unless USPS does more to reduce bureaucracy, cut costs and embrace technology, the Postal Service could lose $2 billion or more next year.”

Like the nearby Poland Spring and FedEx drivers, Merilus doesn’t have a choice. There are no legal spaces, and he has a demanding schedule to keep, delivering hundreds of packages to corporations such as Goldman Sachs and Citibank.

Then the inevitable comes wrapped in a blaze-orange envelope: Merilus gets a $115 parking ticket, one of four he receives this day. “It’s automatic,” said Merilus, 34. “There is not a single day I don’t get a summons.”

UPS, FedEx and other commercial delivery companies pay a steep price for doing business in New York City, getting an average of 7,000 parking tickets every day and paying more than $102 million in fines in the city’s latest budget year.

Atlanta-based UPS has a fleet of 1,000 trucks and receives about 15,000 tickets a month here. The company is the biggest offender in the city, paying $18.7 million in parking violations for the fiscal year ending June 30, according to city data. Memphis-based FedEx was second with $8.2 million.

“We receive by far more parking fines in New York City than anywhere else in the world,” UPS spokeswoman Diane Hatcher said. “Simply stated, we don’t have the same level of difficulty with finding available parking spaces or loading zones anywhere else.”

Dealing with all the parking violations turned into such a bureaucratic nightmare for the city that it created a program that reduces or dismisses the tickets in exchange for a company waiving its right to contest them. The program has eliminated 770,000 ticket hearings and saved $1 million in administrative costs per year since it was started two years ago.

The companies are also saving cash, although their annual New York City parking tab is still high because not every type of ticket is covered under the program.

“Mexico’s experience under NAFTA suggests that trade flows between the Central American countries and the United States could increase rapidly after the inception of DR-CAFTA,” the IMF points out in the report, Central America: Global Integration and Regional Cooperation.

DR-CAFTA, also known as CAFTA-DR or CAFTA, will immediately reduce tariffs on all nonagricultural and nontextile exports from the CAFTA countries to the United States. About 80 percent of U.S. nonagricultural and nontextile exports from the United States will be reduced. Tariffs on all other goods will be phased out gradually over a 5- to 20-year period.

DR-CAFTA has a total population of 45 million and a combined GDP of $91.6 billion. By comparison, Argentina - Latin America’s third-largest economy - has a population of 37.9 million and a GDP of $151.9 billion.

Shipping is a critical customer satisfaction tool, and running a responsive shipping department requires significant investment.

Fortunately, that investment is recoverable. The shipping department can be configured in a way that can turn a profit.

Ways to accomplish this range from good planning to creating detailed business rules for your shipping software.

Here are eleven areas to look at:

1. Eliminate surprises. For example, the wrong address on a shipping label can result in an address bill-back, adding at least $5 to the cost of shipping the package. Even more painful is the cost of supplying wrong dimensions to a carrier. The additional cost on a larger box could easily result in a $40 surcharge that you most likely could not recoup from your customer. Also, address validation programs can help identify discrepancies before the customer completes the order.
2. Choose the appropriate carrier and service level for the appropriate job. Make sure your business rules select carriers based on all the discounts your carriers have made available. Consider setting up your system to use the post office for residential or rural delivery where extended-area fees may apply, or materials are less time sensitive. Another example is cost-effective Saturday delivery: FedEx Home and USPS offer free Saturday delivery.
3. Negotiate contracts with your carriers that provide the best savings. Every surcharge usually is negotiable, including fuel surcharges. Also, rates can be based on your seasonal shipping patterns. Getting the best rates can be achieved without changing your shipping processes.
4. You do not have to pass on your carrier incentive rates to your customers. All or part of them can be used to cover other shipping overhead costs. Your system should be able to determine the level of order visibility for your customers.
5. Make tracking information readily available to customer service. This improves productivity and makes for happier customers. Ask your shipping system provider if they supply a tracing and tracking utility.
6. Take advantage of “freebies” offered by your carriers, such as free shipping materials. Carriers often will give away labels, envelopes and boxes if you ship with them. They also often can provide discounted or free hardware such as scales, scanners or printers.
7. Collecting detailed information, such as duties terms, prior to shipping internationally can result in significant savings. Having information for commercial invoice and other customs paperwork available at order entry can help avoid costly bill backs. The best time to accumulate this information is when it comes into your system rather than when it leaves.
8. Pick the right service level. Most carriers have several service levels, and business rules should be configured to select the best one. Some service levels will get your shipment there just as fast as premium ones. Ask your software provider to configure your shipping system to furnish detailed time and transit information for all service levels.
9. Create reports that boost productivity and control costs. An example, one tracks pickers and packers to identify bottlenecks in the warehouse. When relevant information is shared with other departments you can identify opportunities for efficiencies and savings.
10. Don’t ignore LTL carriers as you configure a more productive shipping system. Build in routing tables and create the ability to rate shop. You can consolidate orders that may be better suited for LTL. Or you can adopt break-bulk shipping and truck to a geographical area before using to-the-door carriers.
11. Build business rules that help employees be more productive. There is no reason a shipping-line worker should have to look up addresses or make phone calls to double check information. More sophisticated business rules also can automate decisions taking into account variables such as value, insurability and speed.

If your shipping platform has the flexibility to take advantage of these cost-savings tactics, it can, in fact, become a profit center.

Jeff Goeters is Chief Technology Officer of Best Way Technologies.