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Letters to the Editor

fan mail?
Re: "power down," September 2009

I enjoyed your article about DCs struggling with high energy costs. We operate about 5 million square feet in our company, and a good deal of it was in dire need of both retrofitting and an ongoing [energy conservation] program a few years back. Since we began our program in 2008, we have reduced our expense everywhere we have installed our new attitude, equipment, and outlook toward our energy usage.

By the way, we installed Big Ass fans about three years ago, the first effort in meaningful amp reduction in our DCs. We have saved over $500,000 in our lighting expense in the past two years at one facility alone.

So, anyway, the message is that there are real savings out there, and your examples are not just isolated events.

John Zapata, Rooms To Go


creative thinking
Re: "outsourcing the wheel," December 2009

I really love the fact that companies are getting creative with outsourcing —it shows that there are inventive ways of providing value in outsourcing. The rule —if someone can add value better, faster, or more cheaply (and with fewer accidents!), then you outsource!

Now, the real test is to select providers that optimize your operations and don't just "buy service" or "cut costs." Great providers optimize to solve the problem, and the service providers make a fair profit for their brainpower in solving the problem —not just providing butts in seats (or in this case, drivers in trucks).

I really like the various options for business models they lay out —it's not all about simple shift and lift. Now, I'm wondering if the Ryder deal or any of the other solutions ProDrivers provides is a Vested Outsourcing solution. That would be progressive thinking!

Kate Vitasek, Supply Chain Visions

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Trucking industry experiences record-high congestion costs

Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.

The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.

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Featured

From pingpong diplomacy to supply chain diplomacy?

There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.

Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”

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Hyster-Yale to expand domestic manufacturing

Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.

That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.

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California moves a step closer to requiring EV sales only by 2035

Federal regulators today gave California a green light to tackle the remaining steps to finalize its plan to gradually shift new car sales in the state by 2035 to only zero-emissions models — meaning battery-electric, hydrogen fuel cell, and plug-in hybrid cars — known as the Advanced Clean Cars II Rule.

In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.

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Canadian startup gains $5.5 million for AI-based global trade platform

A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.

The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.

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