Outsourced Logistics

HICKORY, NC, October 28, 2008 - Transportation Insight has joined SmartWay Transport (R) Partnership, an innovative collaboration between the U.S. Environmental Protection Agency (EPA) and the freight industry designed to increase energy efficiency while significantly reducing greenhouse gases and air pollution.

Transportation Insight will contribute to the Partnership’s goal to reduce 33 to 66 million metric tons of carbon dioxide and up to 200,000 tons of nitrogen oxide per year by 2012 by improving the environmental performance of our freight operations.  Carbon dioxide is the most common greenhouse gas, and nitrogen oxide is an air pollutant that contributes to smog.  By joining SmartWay Transport Partnership, Transportation Insight demonstrates its strong environmental leadership and corporate responsibility.

“We are fortunate enough to live in a time where the technology, knowledge, and information exist to solve important problems such as reducing the emissions and improving the fuel efficiency of the trucks transporting our nation’s goods.  Transportation Insight is honored to be part of this partnership and looks forward to collaborating with our clients and carriers to preserve our environment,” said Clay Gentry, Director of Truckload Logistics.

Launched in February 2004, SmartWay Transport Partnership aims to achieve fuel savings of up to 150 million barrels fuel per year.  The Partnership brings together major freight shippers, trucking companies, railroads, logistics companies and trade/professional associations to pursue mutually beneficial efficiencies that result in emissions reductions and other environmental improvements, as well as cost savings to the companies.  The Partnership currently has approximately 1000 partners.

About Transportation Insight

Transportation Insight improves client profitability and competitive advantage across the North American marketplace by lowering clients’ logistics costs, optimizing distribution networks, automating business processes with state-of-the-art transportation management system (TMS) applications, providing enterprise-wide business intelligence, and enhancing customer service.  For more information about how Transportation Insight can increase profitability for your company, please visit www.t-insight.com or call 828-485-5208.

For more information about the SmartWay Transport Partnership, please visit www.epa.gov/smartway.

Grand Haven, Mich. (Oct. 27, 2008) — Officials at Virtual Dispatch, a leader in transportation management systems, announced today the opening of a new U.S. office to serve the company’s growing North American customer base.

Virtual Dispatch, USA will provide sales and training for the company’s suite of TMS products, including Excelerate, Excelerate 9000 and Excelerate Live. Tom Trimbach, a veteran transportation executive, has been appointed President. The office is located at 950 Taylor Ave., Suite 250, Grand Haven, MI 49417. 616.846.5100

“This is an exciting opportunity to help grow what we firmly believe is the greatest value in mid-tier transportation management systems,” said Trimbach. “My first experience with this software was so impressive that I literally joined the company.”

Prior to helping launch Virtual Dispatch USA, Trimbach was Director of Transportation, Hanson Logistics. During his 30 years in the transportation and logistics industries, he also served as Implementation Manager at LeanLogistics and Director of Transportation for Total Logistic Control.

Virtual Dispatch Limited will remain headquartered in Stouffville, Ontario, Canada where the company was founded in 1997, and has since expanded its technology offerings. For additional information, call 877.846.0070 or visit www.virtualdispatch.com.

Jericho, NY (PRWEB) October 27, 2008 — Rapid delivery, deep distribution networks and cost efficiency are the three “golden rules” of the automotive aftermarket industry. The industry, with sales in excess of $285 billion during 2007, depends on logistics providers that can move their products through the delivery process and to their end-user as quickly as possible. Purolator USA (www.purolatorusa.com) now offers its cross-border and intra-U.S. logistics expertise to automotive aftermarket manufacturers, with the added benefit of Purolator’s widely respected customer service.

“The nature of the automotive aftermarket industry is such that there really is no room for delays or miscalculations in getting goods where they need to be,” says Purolator USA President John Costanzo. “Many times a part is being delivered to a customer who is having a car repaired, so time really is of the essence. We can all sympathize with being told, ‘the part is on order’.”

Purolator USA is a natural fit with the automotive aftermarket industry for several reasons. Shipments traveling across the border to Canada can be integrated into Purolator’s extensive distribution network, which allows access to even the most remote regions of the country. In addition, Purolator has the capacity to combine shipments prior to crossing the border, which can minimize delays and reduce import-related fees. Further, Purolator USA operates facilities on either side of the border, which often means that shipments can be delivered directly to their end destination, thereby avoiding costly distribution center stopovers.

Purolator offers a team of cross border specialists through its Purolator Trade Solutions service, who can help customers understand and manage regulatory and trade-related requirements. Purolator’s trade specialists can provide a customer with the exact amount of fees and duties that will be assessed at the border. Many logistics providers are unable to offer this service, which means that businesses are slapped with unexpected additional invoices upon delivery.

Manufacturers also rely on Purolator USA to handle their Canadian returns into the U.S. “This is an additional service that Purolator is pleased to offer the automotive aftermarket industry. Our customers have realized that it is generally more cost efficient to rely on us to process their returns, than it is to contract with a separate provider,” Costanzo said.

“For automotive shipments that travel within the United States, service options range from Next Day Air to Domestic Ground, depending on a shipment’s urgency,” Costanzo said. “We regularly hear from our aftermarket customers that our range of intra-U.S. services offer them a high degree of flexibility, given their sporadic shipping schedules.”

The Automotive Aftermarket Industry Association (AAIA) projects a continued increase in industry sales for the foreseeable future, as an increasing number of individuals opt to forego purchasing a new car, and instead focus on maintaining their current vehicle. This means Purolator USA will continue to develop additional services to meet the unique needs of the automotive aftermarket industry.

Manufacturers interested in learning more about Purolator USA’s capabilities should visit www.purolatorusa.com.

About Purolator USA

Purolator USA, Inc. is a subsidiary of Purolator Courier Ltd, Canada’s largest integrated distribution services company. Purolator USA specializes in the air and surface forwarding of small packages and freight shipments, customs brokerage and delivery to, from and within the North American market. Purolator USA doubled the size of its U.S. office network during the past 18 months, with branches operating in Los Angeles, Seattle, Chicago, Detroit, Buffalo, Dallas/Ft. Worth, Philadelphia, Raleigh/Durham, New York City and Newburgh, NY.

Wickliffe-based Kinetic Technologies, Inc. dba K-Tec, leaders in the design and manufacture of high quality forklift free, lean material handling equipment, announced the promotion of Dennis Wawrzyniak to Manager Distribution Sales. His primary responsibility will be to develop and oversee distributor, rep relationships and provide technical interface in the field with the end user. He will report directly to company President, Larry Tyler.

“Dennis’s strength is his ability to quickly see application solutions and find the most efficient, effective way to get project support to the end user”, said Tyler. Dennis brings over 35 years experience in the material handling industry, both at the distributor and direct factory level to his new responsibilities.

K-Tec is responsible for innovations such as 6-wheel MPP™ steering, Pocket Lifts™, LoBoy™ and PowerFlow™ carts

RALEIGH, NC, October 23, 2008 — In this volatile economy, businesses are in a continuous shuffle to make the right moves to improve processes and reduce costs. But how do you best determine top business priorities in such an environment? Assess your company’s supply chain and employ benchmarking and best practices, according to Tompkins Associates’ (Tompkins) recent Global Supply Chain Podcasts.

The podcasts, Identifying the Correct Supply Chain Opportunities and The Rest of the Supply Chain Assessment Story, help organizations pinpoint their top supply chain priorities — where they need to spend time and energy — and develop a course of action based on solid data  and performance comparisons with top-level companies.

John Spain, Partner at Tompkins and expert speaker on the recent podcast, says, “The best approach is to start with a comprehensive assessment of your supply chain to find out exactly where you are. Then, by benchmarking your supply chain against others, you can find the gaps in performance and identify areas that need improvement.”

To get the biggest bang for your buck, Spain suggests starting with initiatives that are relatively easy and quick to implement, but have a significant positive impact on the bottom line.

At the same time, companies need to make sure they are improving — not just altering — their processes by benchmarking themselves against comparable, top-performing companies and implementing the practices those companies are utilizing to achieve a highly efficient supply chain.

“To have value,” says Jim Tompkins, President and CEO of Tompkins, “a benchmark must be specifically focused on a specific situation.” He adds, “But if all I know is the benchmark, I don’t know anything. That is, I don’t know how to improve. This is where the best practices come in.”

With benchmarking and best practices, you have the ability to identify the specific process that needs to be changed to improve performance.

The most recent podcast also includes an interview with Bruce Tompkins, Executive Director of the Supply Chain Consortium, and provides more information on benchmarking and best practices.    

About Tompkins Associates

Tompkins Associates designs and integrates global end-to-end solutions for companies that embrace supply chain excellence. For more than 30 years, Tompkins has evolved with the marketplace to become the leading provider of global supply chain services, distribution operations consulting, technology implementation, material handling integration, and benchmarking and best practices. The company is headquartered in Raleigh, NC. For more information, visit www.tompkinsinc.com. Subscribe to updates from Tompkins Associates.

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PD Ports, operator of the 3rd largest port (Teesport) in the United Kingdom, has been selected as a finalist in the Supply Chain Management Award category of the BIFA Freight Service Awards. PD Ports has already won their Finalist Certificate and is now in competition for the ultimate Sponsor’s Trophy.

This year, the BIFA Freight Service Awards celebrate their 20th anniversary. This well-established event is recognised as one of the most prestigious in the industry, with the awards themselves becoming increasingly more coveted every year. The competition encourages and rewards high standards and professionalism, representing the ultimate recognition of special achievements in different sectors of the industry.

PD Ports is a chosen finalist in the Supply Chain Management category. Annually, this category is open to companies who have provided a particular customer with an innovative solution, which subsequently enabled the customer to manage their supply chain more efficiently and cost effectively. BIFA was impressed by the solutions implemented by PD Ports to provide the infrastructure and know-how to deliver effective Portcentric Logistics services to major retailers such as ASDA and Tesco.

Explains Martyn Pellew, Group Development Director for PD Ports, “By incorporating better Portcentric Logistics options into their import planning, retailers empower themselves because they are able to make smarter decisions about their own supply chain needs. As a result, freight forwarders and shipping lines will have to start seriously reconsidering their business plans in the not too distant future to meet the changing supply chain demands of these companies. The result will be supply chains that are more efficient, more flexible, more direct and more environmentally responsible.”

Recent Supply Chain Management Award winners have included APL Logistics (2007) and Atlantic Pacific Global Logistics Ltd. (2006). The Finalist Certificate and sponsors’ trophies will be presented at the Awards ceremony. This year’s special 20th anniversary ceremony will take place on Thursday, 22 January 2009 at its traditional venue, The Brewery, in the City of London, and will be hosted by the Rt. Hon. Michael Portillo. This gathering of some 450 BIFA members and their guests provides a very valuable opportunity to praise the well-deserving winners, as well as networking with colleagues, customers and other industry representatives.

On 21 June, DSV made a bid for ABX LOGISTICS, a freight forwarding company owned by the private equity investor 3i. ABX LOGISTICS is headquartered in Brussels and is represented in 35 countries. The acquisition was approved by the relevant competition authorities on 19 September, and the final closing was completed on 1 October. The merger is a strategic step, and we are all looking forward to the opportunities that it will create.

The merger of DSV and ABX LOGISTICS is a profitable constellation that will strengthen our market position significantly. We will continue to operate within the same business areas, and our position will further enable us to meet customer demands and offer cost-effective solutions. DSV and ABX LOGISTICS are both multi-cultural companies with global presence and local mindsets. Another important factor is that we share the same business philosophy and core values, such as flexibility, responsiveness and reliability.

Additionally, the geographical match between the Northern European presence of DSV and the South and Western European presence of ABX LOGISTICS is ideal and makes us an important player in the global transport and logistics market. By the acquisition, DSV has achieved presence on all continents and expanded its geographical coverage by seven new countries: Argentina, Brazil, Chile, Egypt, Japan, Mexico and Venezuela.

The enterprise value of ABX LOGISTICS is 750 million euro (5,590 million DKK), and following the acquisition we will become one of the leading transport and logistics companies in Europe. We now have presence in 59 countries, and offer transport services in more than 110 countries. We have approx. 25,200 employees.

The size of our air- and seafreight activities has almost doubled, and we will handle 215,000 tons of airfreight and 850,000 TEUs of seafreight annually. Our road activities will be strengthened, particularly in the UK Italy, Germany, France and Spain, and our logistics activities will be further strengthened mainly in Italy, Belgium, Germany, the UK and Russia.

The merger of DSV and ABX LOGISTICS will create a strong global transportation and logistics player, and the merger synergies are estimated to be completed by 2011. Our employees are expected to achieve a worldwide annual turnover of 6,517 million euro.

Overall, we will be better equipped to meet the increasing demand for total global transport solutions and be in a stronger position to negotiate favourable agreements with leading carriers. We will strengthen and improve our position in key markets.

Our company, which has been on the positive acquisition track for several years, also recently purchased the Norwegian trucker, Waagan Transport.

Waagan Transport Group offers both international and domestic transport services, including forwarding of refrigerated goods through the company Sandtorp Thermotransport AS. The acquisition strengthens the market position of DSV Road in Norway. We will integrate the companies into our Road Division in the long run, thereby creating both operational and administrative synergies. The synergies are expected to be fully implemented within a two-year period.

And, most recently … DSV Road AS (part of the DSV Group in Norway) signed an agreement on the acquisition of 100% of the shares in Unicargo AS. At this moment, the acquisition is still subject to approval by the Norwegian competition authorities. The companies will be consolidated as of the date of that approval, which is expected to be at the end of October 2008.

Unicargo focuses on and specialises in road freight forwarding to Eastern Europe and Turkey and is among the Norwegian market leaders in this field. The acquisition will therefore strengthen and increase the market position of DSV in Norway within freight forwarding to Eastern Europe and the Balkans. Moreover, the acquisition will strengthen DSV’s position in the local market of Unicargo in Norway in general. Last year Unicargo realised a revenue of 52.0 million NOK and an EBITA of 3.5 million NOK. Growth is expected in 2009.

DSV intends to integrate the company into the Norwegian DSV Road Division, thereby creating both operational and administrative synergies. The synergies are expected to be fully implemented within a two-year period.

In a recent chat Rene Falch Olesen, managing director of DSV Road Ltd, had this to say about DSV’s growth strategy and forward momentum into 2009:

“DSV is in an incredibly robust period of growth. Our most recent acquisitions of ABX Logistics, along with Waagan and Unicargo, are seeing us through a sustained phase of strategic expansion. These progressions further enhance our leading position within the pan-European markets and greatly strengthen our already solid global stature. As we move forward together, DSV is thrilled to be able to provide the existing customers of ABX, Waagan and Unicargo with an ever more beneficial and innovative range of global transport services, products and solutions, and in the same manner we are happy to provide our longstanding DSV customers with increased service capabilities derived from the acquisition of our new colleagues”

With reference to stock exchange announcements Nos. 304 and 310 published on 21 June 2008 and 19 September 2008, DSV makes the following announcement:

The conditions for closing DSV’s acquisition of XB Luxembourg Holdings 1 S.A., the parent company of the ABX LOGISTICS Group (”ABX”), are satisfied, and the acquisition has been closed today. The acquisition price on a debt and cash free basis (enterprise value) is 750 million EUR (5.6 billion DKK). The price breaks down into the following items: The price of the shares is 550 million EUR, net interest-bearing debt taken over totals 115 million EUR, and provisions taken over total 85 million EUR.

DSV Air & Sea Holding A/S accordingly owns 100% of the shares in ABX and will include ABX in the consolidated financial statements as from today.

Integration of ABX

The expected synergies from the acquisition of ABX are an annual amount of 750 million DKK once the integration has been completed in 2011. Synergies are expected to be realized on a straight-line basis over a three-year period with 250 million DKK each year, so that synergies of 250 million DKK will be realized in 2009 and of 500 million DKK in 2010. The expected annual synergies for 2011 and onwards are 750 million DKK.

The aggregate restructuring costs in connection with the integration of ABX are expected to reach 700 million DKK. The value of customer relationships is expected to amount to approx. 400 million DKK to be amortised over ten years.

The legal structure of ABX does not coincide with the commercial structure of DSV in all cases. ABX has activities within Air & Sea (approx. 65%), Road (approx. 30%) and Solutions (approx. 5%). On its initial recognition in 2008, ABX will be presented as an Air & Sea activity. In connection with the restructuring, the current structure will be revised to make the commercial and legal structures coincide as much as possible. Therefore, little by little, although mainly in 2009, reported Air & Sea activities will be transferred to being reported as Road and Solutions activities.

Outlook for 2008 - Adjustment of Budget

As a consequence of the acquisition of ABX and the realized above-budget results for the first nine months of 2008, DSV has adjusted its 2008 budget.

Summary 2008 budget (million DKK) Original budget Adjustment Revised budget

Revenue 34,580 3,920 38,500

Operating profit before special items 1,796 154 1,950

Special items (net income) 422 (150) 272

Net financial expenses 230 133 363

Effective tax rate 29% 2% 31%

Net profit for the period 1,538 (132) 1,406

Net capital expenditure 200 100 300

Free cash flow 1,100 (100) 1,000

The expected revenue is adjusted from 34,580 million DKK to 38,500 million DKK, ABX accounting for approx. 3,400 million DKK of the increase. The expected operating profit before special items is adjusted upwards to 1,950 million DKK. Of this revision, 60 million DKK relates to ABX and approx. 10 million DKK to amortisation of ABX customer relationships.

Anticipated special items have been adjusted by 150 million DKK as a consequence of restructuring costs for the integration of ABX. The exact time when restructuring costs will be realized depends to a great extent on local rules in the various countries, for which reason the recognition for 2008 may deviate by +/- 50 million DKK. The remaining restructuring costs of 500-600 million DKK are expected to be recognized in 2009.

The expected net financial expenses are adjusted from 230 million DKK to 363 million DKK due to higher net interest-bearing debt in order to finance the acquisition of ABX.

Following the acquisition of ABX, the effective tax rate of the DSV Group, adjusted for gain on the sale of Tollpost Globe AS, is expected to be 31% as against previously 29%. The tax rate increases because of a change in the origin of the earnings of the Group, non-capitalisation of tax loss carryforwards of some companies of the ABX Group and amended rules on tax relief entitlements. In 2009, the tax rate is expected to decline to 30%.

The expected profit after tax for 2008 is adjusted from 1,538 million DKK to 1,406 million DKK. The expected net capital expenditure in 2008 is adjusted from 200 million DKK to 300 million DKK. Annual net capital expenditure is expected to be 400 million DKK and 450 million DKK in 2009 and 2010, respectively.

The ABX Group had greater funds tied up in working capital than DSV, for which reason the working capital is expected to increase to over 3% in 2008. Subsequently, the funds tied up in working capital are expected to show a slight downwards trend over the next three years.

The expected free cash flow for 2008 is adjusted downwards from 1,100 million DKK to approx.1,000 million DKK.

DSV, one of the world’s fastest growing transport and logistics companies, has been selected as a finalist in the European Logistics Award category of the BIFA Freight Service Awards. The United Kingdom division of DSV has already won their Finalist Certificate and is now in competition for the ultimate Sponsor’s Trophy.

This year, the BIFA Freight Service Awards celebrate their 20th anniversary. This well-established event is recognised as one of the most prestigious in the industry, with the awards themselves becoming increasingly more coveted every year. The competition encourages and rewards high standards and professionalism, representing the ultimate recognition of special achievements in different sectors of the industry.

DSV is a chosen finalist in the European Logistics Award category. Annually, this category is open to companies who have provided their road, rail and short sea customers with dynamic and innovative logistics solutions, helping to bridge the gap between the traditional rigid supply chain and modern efficiencies. BIFA was impressed by DSV’s thorough commitment to efficient and exemplary customer service. The judges felt DSV differentiated itself by the company’s investment in future technologies, which has kept the company in the forefront of the industry.

Managing Director of DSV Road Ltd, Rene Falch Olesen, explains, “Principally, DSV’s strategy for growth is organic, which is the corporate spirit we expressed in our award submission. For us this means we are in a constant state of innovation based on the needs of our customers. We have been able to judge our customer’s satisfactions levels based on the relationships we have formed with them. Their personal testimonials and their repeat business are one of the key elements to our success. At DSV, we believe in doing everything in our power to deliver a high-quality supply chain service to any client, anywhere in the world.”

Recent European Logistics Award winners have included (2007) Ital Logistics Limited and (2006) Seawing Landguard International Limited. The Finalist Certificate and sponsors’ trophies will be presented at the Awards ceremony. This year’s special 20th anniversary ceremony will take place on Thursday, 22 January 2009 at its traditional venue, The Brewery, in the City of London, and will be hosted by the Rt. Hon. Michael Portillo. This gathering of some 450 BIFA members and their guests provides a very valuable opportunity to praise the well-deserving winners, as well as networking with colleagues, customers and other industry representatives.

ISO14000 and showing action on the environment

Any manufacturer looking for a logistics partner that is serious about the environment needs to look at actions rather than words. It is great for a logistics company to have an environmental policy, but unless the policy is embedded into company culture, from management down, there will be no environmental benefits whatsoever.

The environment is a concern for many consumers in the UK and globally. Colour images and television footage of environmental disasters reach mass audiences and manufacturers need to avoid any potential media hazards that could associate their products with a lack of environmental care. Manufacturers therefore need to have confidence in their logistics suppliers and show that they have chosen a responsible logistics partner .

The ISO14000 certification is a good way for manufacturers to differentiate between logistics companies that talk green and those that act green. DSV is entering the final stages of ISO14000 certification and has found the process to be a very useful way to identify our environmental impacts, set targets to reduce these impacts and demonstrate legal and social compliance to customers.

Improved efficiency = reduced fuel consumption

In many cases, being green can also save companies money. Therefore a key consideration when choosing a logistics partner is to look at how they can maximise efficiency for your business. DSV, for example, places increasing emphasis on improved load planning, reduction of empty running and optimised routings. These measures not only reduce logistics costs for manufacturers, but also reduce fuel consumption.

Fuel accounts for approximately 35% of DSV’s total transport costs and unsurprisingly it is also by far the highest contributor to our carbon footprint. While we have analysed the possibility of employing alternative fuels, we are not convinced that this is the best path to take. The Carbon Trust have recommended improved driver training with an emphasis on reducing fuel consumption.

Taking on this advice DSV has already started a pilot scheme using a team of drivers from each area of its business to identify the environmental and cost benefits that can be achieved using the Department of Transport’s Safe & Fuel Efficient Driving (SAFED) standard.

For some companies with less complex transport systems than DSV, the SAFED standard has produced improvements in fuel usage of up to 10%. The objective of the pilot scheme we are launching is to monitor the impact of the SAFED driver training and development programme, draw comparisons between the different areas of our business and see if the benefits justify introducing SAFED for all of our drivers.

Energy efficiency and renewables

Just as manufacturers look to reduce energy consumption in their factories, they need to choose logistics providers who also consider these same priorities. DSV is looking at a range of ideas to be more energy efficient, particularly in new-build locations. As well as low energy lighting with timers and light sensors, it is considering the use of wind and solar energy and heat source pumps.