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ADP
and DHL:
Growth and Partnership
ADP
is responsible for getting many employed Canadians
the single most important document in their
day-to-day lives: their paycheque or pay statement.
And, for its payroll deliveries, ADP relies on DHL.
BY JOSÉE
LAFRENIÈRE |
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ADP
pays one in four Canadians employed in the private sector.
Therefore, a flawless delivery service is essential.
These deliveries range from a single envelope to multiple
boxes per client, with shipments in Canada, the US and
international destinations. And, ADP relies on DHL for
these deliveries.
ADP: A GROWING BUSINESS
While ADP was once known as a payroll company,
its business is growing quickly and strategically into
human resources solutions and time and labour management.
ADP is now Canada’s leading provider of outsourced
business administrative solutions that help companies
of all sizes efficiently manage their internal processes.
ADP’s offerings include both traditional and Internet-based
outsourcing products and services, including payroll,
human resources management, time and labour management,
comprehensive outsourcing, and consulting services.
“As ADP’s business grows, so
too does our need to work in lockstep with key suppliers,
including DHL,” says Michael D'Aoust, director
(production technology), ADP. “We have now been
partners with DHL for approximately five years and,
in that time, we have increased our use of DHL from
a very small percentage to approximately 85% of all
our client shipments. DHL’s commitment to service
and flexibility has made the transition seamless.”
FLEXIBILITY TO ACCOMMODATE GROWTH
When ADP was looking for a partner in the
logistics and transportation services industry, it was
important to them that their partner had the flexibility
to meet their constantly changing needs, a partner that
was willing to work with ADP to achieve a high degree
of service standards. “We partnered with DHL because
of their flexibility and consistency in service,”
says D’Aoust.
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“DHL
provides us with multiple delivery options that we can
in turn offer our clients. And because ADP serves clients
across Canada, the US and internationally, we can leverage
DHL’s worldwide coverage. ”
DHL: A GLOBAL SOLUTION
In 2003, DHL combined its already considerable
strengths with those of Loomis and Danzas Air &
Ocean into a single company. Their goal: to be the leader
in express and logistics services both in Canada and
around the world.
DHL now offers seamless express service
worldwide. Its global network spans across more than
220 countries. With over 4,000 branch locations, it
services more than 120,000 destinations worldwide.
And because a global economy requires global
logistics, DHL also offers a complete range of logistics
solutions, from logistics and supply-chain management
to customs brokerage, air and ocean freight, and warehousing
and distribution.
“Multinational corporations need partners
around the world to become competitive in this global
market,” says Greg Hewitt, senior vice-president
(commercial), DHL Express Canada. “If they are
not capable of achieving this, they may find themselves
out of the game. Companies need solutions and guidance
in becoming competitive, which we provide. By leveraging
our global resources, we will be increasingly able to
develop innovative technologies and solutions that will
reduce the total supply chain and maximize productivity.”
GLOBALIZATION AND COMMUNICATIONS
And how does globalization affects logistics
needs? The greatest challenge, according to Hewitt,
is communication. “How do you communicate your
needs and expectations, and the client’s needs
and expectations? Organizing the company to communicate
effectively is the challenge. Information is a difficult
task.”
According to Hewitt, logistics and transportation
solutions are created through a precise analysis based
on a company’s business objectives. Every aspect
from the supply chain to the warehousing system and
the delivery standards must be carefully studied in
order to reach the company’s goals. In other words,
tailoring business is the only way to maximize the returns.
“As a one-stop shop, DHL offers solutions
based on the client’s needs and objectives. Today,
what clients want is to minimize their invoices, carriers,
inventories, and keep a consistent image,” says
Hewitt. |
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 The
Unique Delivery
Services of
Canada Post
Pitney Bowes, a multinational
corporation serving some two million businesses, depends
an extensive technician workforce to service its clients
in Canada. Each day several thousand are shipped to destinations across the country. A third
of those are critical parts and Pitney wanted them to be delivered more efficiently. Canada
Post rose to the occasion by developing logistics solution to streamline critical parts distribution
while decreasing expenses.
BY JOHN LEJDERMAN |
| Customarily
when technicians wanted parts they would order
their shipment(s) to be delivered to local depots,
their homes, or the sites they were servicing.
Pitney Bowes found itself incurring charges for
rush courier, regular delivery, early morning
delivery, next day, and same day services. There
was little control, no continuity, and considerable
expense.
Discussions between Pitney Bowes and
Canada Post led to a solution in the form of dedicated
boxes, dubbed “Parcel Boxes,” located
at Canada Post depots convenient to technicians.
Parcel Boxes are like big plastic recycling containers
with lids that lock. Technicians place their orders
by phone or electronically anytime before 3:00
p.m. and critical parts are delivered to these
dedicated boxes by 8:00 a.m. the next day. There’s
no waiting in line to collect an item. The technicians
simply take their key, open the box, retrieve
their order, and away they go.
For the manufacturer, Pitney Bowes,
the greatest benefit comes down to customer value.
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Parcel Boxes are very cost-efficient when you
consider the amount of time saved because technicians
don't have to drive to warehouses for parts or
waste time waiting, and the total savings in terms
of warehousing costs and average hourly wages
saved.
The warehousing of critical parts
was already being handled by Progistix, the Canada
Post Group company specializing in logistics services.
The Parcel Box solution has added further value
to this comprehensive supplychain solution.
“This solution for critical
parts delivery is just one example of Canada Post’s
supply-chain solutions. This particular case leverages
the extensive national network of depots,”
says Rod Hart, director (product management),
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Canada Post courier and distribution products.
This extensive national network is
one of the reasons that Canada Post performs the
majority of home deliveries from Internet- and
catalogue-sales, explains Hart. When a product
cannot be delivered personally, there is always
a nearby postoffice for the customer to go and
pick it up.
“In general, non-express delivery
has been one of our strengths. Companies seeking
to reduce supply-chain costs ask themselves if
they really have to get their product there tomorrow
morning. This has made Xpresspost, a reliable,
speedy, two-day alternative to next-day AM courier,
one of the fastestgrowing products in the Canadian
courier industry. |
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And we have been broadening this service to US
and international markets, since most couriers
only offer rush service to these destinations.”
But delivery options are not all that
distinguish Canada Post’s offering. “There
are enough options for getting packages from A
to B,” says Hart. “What customers
tell us they really need is information and supply-chain
visibility. Timely and relevant information about
shipment status can drive up efficiencies within
our customers’ business. Thanks to our recent
implementation of an event management system,
we can respond to this need. For example an email
can be sent to our customer’s customer as
soon as a package is shipped, giving the intended
recipient a URL for them to track the parcel online.
This avoids unnecessary calls to customer call-centres
freeing the latter for more revenue-generating
activities. And it allows us better internal visibility
to analyze processes for continuous improvements.” |
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Polaroid
and
Purolator:
Seeing
Eye-to-Eye
The next
time you pick up a Polaroid instant camera, sunglasses
or digital photo
equipment from your local Wal-Mart, London Drugs or other
major retailer,
think of Purolator.
BY
JOSÉE LAFRENIÈRE |
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The
Polaroid Corporation has come a long way since the birth
of the polarizer technology in the 1920s. The company
now designs, develops, manufactures and markets instant
and digital imaging products and related products. While
Polaroid also develops and makes secure identification
systems and instant-photography hardware accessories,
the company is perhaps best known for its instant cameras
and instant film, as well as its sunglasses, all of
which are marketed worldwide through retail outlets.
In Canada, Purolator is the company that
delivers all Polaroid products from the company’s
facility in Norton, Mass. This means transporting up
to 800 packages a day across the border and to locations
across the country.
VIRTUAL WAREHOUSE
This arrangement has eliminated the need
for Polaroid to maintain a distribution centre in Canada,
yet still effectively supply retailers across the country
Purolator offers the Polaroid Corporation
comprehensive logistics support that is precisely aligned
with Polaroid’s internal procedures and the needs
of its customers. In effect, Purolator has become an
integral part of Polaroid’s fulfillment process—packing,
sorting and repacking skids, arranging for customs clearance,
scheduling, preparing orders for delivery, managing
returns and providing detailed reports.
With its complete end-to-end solutions,
Purolator helps eliminate border slowdowns, so that
US distribution centers can become virtual warehouses
for sales in Canada.
100% CANADIAN
Purolator is a 100%
Canadian-owned and -operated company. The company was
started in 1960 when the company had a staff of two
and was located in the heart of Eastern Canada. At that
time, it had restricted operating licenses for the provinces
of Ontario and Quebec. From these humble beginnings,
Purolator now employs more than 13,000 people across
Canada, and is one of Canada’s largest employers.
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It
has recently expanded into the U.S. and is quickly becoming
a player in northbound cross-border deliveries, as in
the case of its partnership with Polaroid.
Purolator began offering third-party logistics
services in 1999. Through strategic alliances, they
offer a full spectrum of integrated and customized supply-chain
solutions on top of specialized service offerings, including
same-day express, cheque, dangerous goods handling,
oversized package handling, retail totes, chain-of-signature
service, high value service, Saturday service, US deferred
service, US overnight service, international express
service, third-party logistics services, customs brokerage,
and returns management.
Purolator processes over 5.5 million pieces
(delivery and pick-up) each week for destinations across
Canada and around the world; 70% of these are manufactured
goods and 30%, documents. It delivers to over 35,000
destinations in the US, and to more than 220 countries
worldwide.
GREENING THE FLEET
Purolator is now taking
advantage of the availability of new technology and,
at the same time, addressing an issue that is of great
interest to Canadians: the environment. In 2003, it
announced a partnership with Azure Dynamics Corp. of
Vancouver for the purchase of up to 2,000 Hybrid Electric
Vehicles (HEV) for the Purolator fleet. It is working
to completely eliminate environmental emissions from
its vehicles and lead the industry in a future standard
of zero vehicle-emissions.
After completing months of field testing
with Azure-equipped vehicles, Purolator saw greenhouse
gas emissions reduced by up to 50 percent while fuel
efficiency increased by up to 50 percent. This represents
a significant cost saving for the company while helping
to curb environmental emissions. An order of 30 will
be filled during the next year with the new vehicles
to be deployed in Toronto. If the experience with these
vehicles lives up to expectations, then, as Purolator
replenishes its fleet each year, the company may add
up to 400 hybrid electric vehicles annually beginning
in 2006.
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 Publishers
Spoiled
by Nationex
Robert
Cotton, head of shipping at Montreal
publisher-distributors, Hurtubise HMH, swears
by their
carrier, Nationex, based in Saint-Hubert,
a suburbsouth
of Montreal. Here's why.
BY
MICHEL TRUDEAU |
| Hurtubise
HMH, founded in 1960, is one of the most prosperous
publishers in Canada. The credibility of the business
is based on proven expertise in French literature, youth
and school texts, and fiction. Furthermore, as distributor,
Hurtubise supplies 500 sales outlets in Canada, 90 percent
of which are bookstores, including 300 in Quebec.
For a number of years, Hurtubise has relied
on the expertise of Nationex for transport of orders
to sales outlets. "Nationex specializes in the
distribution of small parcels,” says Cotton. “At
Hurtubise, we ship from one to three parcels per customer.
Rates are very competitive compared to those of Canada
Post, for example. And their information system is state-of-the-art.
It takes us 15 to 20 seconds to print a label. We only
need a customer number and a reference number. It's
simple and very effective."
SORTATION CENTRE
"At their sortation centre, the ultramodern
Nationex conveyer ensures us next-day delivery throughout
Quebec and Ontario." Cotton says that damage to
books is the exception. "Over the last three years,
our shipments have considerably improved.”
The publisher-distributor decided last year
to consolidate fifteen small Quebec publishers that
now use Nationex services. Cotton concludes that Nationex
service is "rapid, personalized and inexpensive".
A
SPECIALIST
For Sylvain Bernard, vice-president (operations)
and general manager at Nationex, shipping parcels is
the company’s essential mission. "On the
other hand, our logistics mission is to maximize volume
per address, without however limiting the number. This
is a trend that we have been pursuing faithfully for
a number of years," says Bernard.
The average shipment at Nationex is comprised
of two parcels weighing 25 pounds each. The volume determines
the type of trucks used. The fleet is composed mainly
of cube trucks with single rear wheels, less heavy and
with almost identical load capacity as cubes with double
rear wheels. |
The
fleet also includes Econolines, five-ton straight trucks,
tractors, and semitrailers. In all, there between 225
and 250 units, depending on the season. At Nationex,
the months of September to November of each year are
the busiest. This phenomenon is explained by the fact
that Nationex has several customers in education, publishing
and office supplies. A driver performs between 55 and
70 deliveries per day, on average.
MAJOR INVESTMENTS
To meet the requirements of its customers,
in 1998, Nationex invested about two million dollars
to install an ultramodern conveyer, called STAR. The
system includes a completely computerized sortation
conveyer using a barcode reader system to identify and
sort all parcels without human intervention. The company
is a pioneer in Canada in the area of computerization
of its operations. Bernard says that more than 35,000
parcels are treated per shift.
And, to push the contribution of new information
technologies even farther to satisfy their customers
even more, Nationex is implementing a method of monitoring
operations, a program whose final result is a report
sent to customers on the status of AM deliveries. “Our
customers don't sit around waiting for parcels as we
are in constant communication with them. The client
can also access electronic delivery slips and view the
complete contents (receiver's receipt stamp), thus accelerating
payment for the benefit of the shipper.”
Concerning the company's vision of the future,
Bernard considers that the expansion of Nationex will
continue beyond Quebec and Ontario, their two main markets.
"We feel the need to control all elements of delivery.
That's why we are considering extending our network
with our own personnel and equipment.”
"We see our role as carriers that eliminate
barriers and aggravation for our customers. We want
to keep our customers fully informed, in real time,
and offer them the best price-quality ratio in the small-parcel
market," concludes Bernard.
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FedEx:
Putting RIM
Products in Motion
Research
In Motion (RIM) is a well-known Canadian business success
story, offering
its BlackBerry wireless solutions throughout the world.
And to move their products
around the globe, they rely on FedEx Canada.
BY JOSÉE LAFRENIÈRE |
| Since
1984, Research In Motion has been revolutionizing the
wireless world. Based in Waterloo, Ont., the company
designs, manufactures and markets products for the worldwide
mobile communications market. RIM develops hardware,
software and services for wireless email, phone, text
messaging, Internet and intranet-based applications.
RIM's portfolio of awardwinning products,
services and embedded technologies are used by organizations
around the world.
As RIM’s success has grown, so has
the complexity of its operations. It now operates offices
in North America, Europe and Asia Pacific. And, BlackBerry
is currently offered by major Canadian wireless companies
such as Bell Mobility, Rogers Wireless, and Telus Mobility.
PARTNERSHIP WITH FEDEX
The management of RIM’s shipping requires
a strong Canadian partner. RIM began working with FedEx
because they felt that FedEx could meet its growing
global requirements. FedEx now ships BlackBerry products
nationally and internationally. They also import parts
for manufacturing. In order to facilitate these logistical
operations, RIM has one of FedEx’s servers installed
on location.
“A great synergy has resulted between
our two companies,” says Lisa Lisson, VP (sales,
marketing, supply chain services, corporate communications
& ecommerce), FedEx.
CUSTOMER FOCUS
The excellent relationship between RIM and
FedEx is an example of how FedEx prides itself on its
customer focus. This is something they are constantly
working to develop through a variety of approaches,
from creating corporate plans based on customer-external
views to researching their customers’ needs.
One of the research tools used by FedEx
is the customer summit. For example, in October 2004,
one hundred FedEx customers gathered in Toronto to discuss
their businesses and for a briefing on one of FedEx’s
areas of expertise: changes in border formalities. “These
meetings,” says Lisson, “are unique in the
industry.”
Aside from the customer summits, FedEx also
organizes local market councils, where sales managers
develop solutions for customers who need an outof the-box
solution. They also have customer response teams that
go on-location to gain a first-hand view of customer
businesses. FedEx also regularly organizes market councils
and performs customer satisfaction studies.
Another of FedEx’s competitive advantages,
according to Lisson, is that it has created a permanent
position, the VP (customer experience), whose job is
to ensure that the company is providing superior customer
service. Clearance, billing, and customer service all
fall under her authority.
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WIDE RANGE OF CUSTOMERS
Maintaining a strong
customer focus is essential because FedEx has customers
in a very wide range of industries, from pharmaceutical
to financial to retail, and in all size categories,
from small to international. FedEx processes about 5.5
million shipments daily and has service to 215 countries.
“Most businesses have a need for some
kind of logistics service, whether it is helping them
get an envelope across the street, or get an ocean container
from Asia to a warehouse,” says Lisson. “We
take a look at each industry to get an understanding
of it. This may drive a change in our approach or our
technology.”
LOGISTICS SERVICES
And what customers have
been telling FedEx is that they want the company to
be able to handle a full range of logistics management.
“What we have heard from our customers is that
they want to look at logistics as a whole: shipping,
transportation, supply-chain, warehousing,” says
Lisson. “They view FedEx as a leader in the industry
and they want us to offer solutions in all areas.”
FedEx provides Canadian customers with international
supply chain management solutions. That’s on top
of the full range of shipping services, including express,
small package shipments, less-than-truckload shipments,
time-specific, critical shipments, as well as simplified
international shipping, document management and business
support services.
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Lush
and UPS: When
the Border Disappears
Lush
Canada wanted to improve its delivery processes to the
United States, avoid border delays and
deliver faster to its American customers while reducing
costs and improving customer service.
BY JOSÉE LAFRENIÈRE |
| Since
1996, Lush Canada, with head office in Vancouver, has
sold handmade soaps and cosmetics. In addition to about
twenty retail stores in Canada, Lush offers its products
by catalogue and by Internet. Created from fresh fruits
and organic and natural ingredients, Lush's products
include bubble bath, soaps bars and other products for
massage and skin and hair care.
“The majority of our sales by Internet
come from the United States,” says Sam Azad, director
(Internet business development), Lush Canada. “And
this trend is on the rise.”
WORKING MANUALLY
In the past, Lush's shipping and customs
documents were produced manually. And personnel who
received calls from customers proceeded as follows:
They told the customer that they would call back. After
hanging up, they called the courier company. They then
called the customer to communicate the requested information.
Each order was delivered individually to the US. For
each parcel shipped, they had to assume transportation
costs and customs. You can imagine the number of calls
and checks in a day and the costs of such a situation.
Furthermore, the volume of Lush's business
in the US was constantly growing. The company had difficulties
meeting the demand. For the future, Lush had to ensure
that customers' parcels were not held up at customs,
and not subject to unanticipated duties or brokerage
charges. The manual operation had become too burdensome.
It had to be replaced by an order delivery process more
adapted to the American expansion.
According to Azad, this goal was a mighty
challenge. "We studied proposals from several courier
companies. In the final analysis, only UPS had an integrated
solution to help us solve our problems of delivery to
our Southern neighbours." Azad notes that two points
tipped the balance in favour of UPS: flexibility in
operations and a solid infrastructure.
THE GLOBAL SOLUTION
With an offering beyond what is expected
of a traditional mail delivery service, UPS presented
a global solution that integrated the process of customer
orders and the shipping of parcels. Furthermore, The
UPS Trade Direct Cross Border program allowed Canadian
companies to attack the American market without a warehouse
south of the 49th parallel.
Today, Lush orders are consolidated in a
single shipment to the American border, considerably
reducing transportation costs. |
The goods are then cleared through
customs one time only, thus reducing brokerage charges.
In the United States, the shipment is transported to
the UPS warehouse where orders are sent individually
to each customer. "At the domestic US delivery
price," Azad hastens to add.
The ordering process is totally integrated
with UPS operations. This means that customers receive
their parcels faster, resulting in greater customer
satisfaction with Lush and continuing sales. There are
fewer errors in orders, and inventory management is
tighter. Parcel traceability is facilitated because
a number is generated automatically as soon as the order
is placed. Customers can thus trace their parcels at
any time from anywhere by connecting to the UPS site.
"According to our estimates, the time devoted to
tracing of parcels for our customers has been reduced
by 90 percent," concludes Azad.
SCALABLE SERVICES
A company of any size can use UPS business
solutions based on their needs. UPS solutions are fully
customizable and scaleable. For example, with UPS’s
cross-border services, it can serve small- and medium-sized
customers very well, at a very reasonable cost. Once
the company’s volume grows to a certain point,
UPS brings in logistics services to continue to meet
their cross-border needs. Customers would have to invest
too much to build something similar.
To provide this kind of service, UPS exploits
the multiplier effect of its international infrastructure.
UPS delivers all across Canada and the United States
and in 200 other countries and territories. This represents
13.6 million parcels and letters per day.
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