“As a leading provider of transportation and logistics solutions, our stakeholders expect us to be stewards of real-world efficiency and sustainability,” stated Ryder Chairman and CEO Greg Swienton. “We take this expectation seriously and will continue our commitment to achieving results the right way, and delivering on our promises with character and accountability.”

Ryder’s Corporate Sustainability Report is available online at www.ryder.com in the “About Us” section. Highlights in the report include:

Governance, Ethics & Compliance:

– Achieving recognition from GovernanceMetrics International as one of The 20 Most Responsible Companies.

– Completing more than 12,000 online compliance training lessons with employees around the world.

Environment:

– Implementing a first-of-its-kind heavy duty natural gas vehicle project for commercial rental and lease fleets in Southern California.

– Reducing energy and water consumption across U.S. and Canada operations.

Safety & Security:

– Launching a Sleep Apnea Wellness program to reduce the effects of fatigue among affected professional truck drivers at Ryder.

– Completing certification as a Third Party Logistics Provider (3PL) in the Customs-Trade Partnership Against Terrorism (C-TPAT) program for logistics operations in Asia.

People & Community:

– Making a $1 million commitment to become a member of the American Red Cross Annual Disaster Giving Program.

– Redesigning the Company’s Leadership Competency Model and linking hiring, performance management, and professional development to four key leadership behaviors: character, judgment, relationships, and results.

About Ryder

Ryder is a FORTUNE 500(R) commercial transportation, logistics and supply chain management solutions company. Ryder’s stock R +0.02% is a component of the Dow Jones Transportation Average and the Standard & Poor’s 500 Index. Inbound Logistics magazine has recognized Ryder as a top third party logistics provider and included Ryder in its 2011 and 2010 “Green Partners” listing. Ryder has also been ranked two years in a row as one of the top 250 U.S. companies in the Newsweek Green Rankings. In addition, Security Magazine has named Ryder one of the top companies for security practices in the transportation, logistics, supply chain, and warehousing sector. Ryder is a proud member of the American Red Cross Annual Disaster Giving Program, supporting national and local disaster preparedness and response efforts. For more information, visit www.ryder.com and follow us on Facebook, YouTube, and Twitter.

Note Regarding Forward-Looking Statements: Certain statements and information included in this news release are “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current plans and expectations and are subject to risks, uncertainties and assumptions. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties that could cause actual results and events to differ materially from those in the forward-looking statements including those risks set forth in our periodic filings with the Securities and Exchange Commission. New risks emerge from time to time. It is not possible for management to predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

SOURCE: Ryder System, Inc.

Ryder System, Inc.
Cindy Haas, 305-500-4526
Cindy_Haas@Ryder.com
or
Marilu Del Toro, 305-500-3161
Marilu_DelToro@Ryder.com

“We urge Congress to exercise their power to step in to keep the flow of goods moving and avert an avoidable economic catastrophe. Such a significant interruption of supply chains at this critical time would have a broad and dramatic effect, while interfering with retailers’ ability to provide customers with the items they seek during the holidays and beyond,” said RILA President Sandy Kennedy.

Retailers rely on an efficient rail transportation system to move products to distribution facilities and stores every day of the year. Freight rail is a crucial to the movement of retail goods and any disruptions in that link would be destructive to the retail industry’s ability to deliver their goods in a “just in time” fashion.

“A national railroad shutdown would force retailers to shift the delivery of their goods to trucks, increasing costs, time of delivery and congestion on our nations already crowded roadways,” added Kennedy.

In letters to House and Senate Leaders, RILA urged “we strongly encourage Congress to preemptively impose the terms recommended by the Obama Administration Presidential Emergency Board to avoid the potential disastrous negative impact.”

RILA is the trade association of the world’s largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.
###

On September 12, 2011, staff proposed additional modifications to the regulatory text in the Second Notice of Public Availability of Modified Text and Additional Documents and Information (Second 15-Day Change Notice). These modifications addressed comments ARB staff received in the first 15-day Change Notice and are the result of additional staff analysis and stakeholder engagement. The public comment period for the 2nd 15-Day Change Notice ended September 27, 2011.

On October 20, 2011, the Board adopted the final cap-and-trade regulation. As part of finalizing the regulation, the Board considered the related environmental analysis (i.e. functional equivalent document) and written responses to environmental comments. The Board also approved the adaptive management plan. The final regulation must be filed with the California Office of Administrative Law (OAL) by October 28, 2011.

The final rulemaking package will include the Final Statement of Reasons (FSOR). In the FSOR, staff will respond to comments received on the record during the initial 45-day comment period, comments presented at the December 16, 2010 Board hearing both orally and in writing, comments received during the first 15-day Change Notice and the second 15-day Change Notice. The Administrative Procedure Act only requires that staff respond to changes that are noticed. Once final, those documents will be posted on the rulemaking web page.”

See the California Environmental Protection Agency: Air Resources Board website for more details and resources.

As with every year, there are opportunities to learn new things and meet new people. Here’s a link to my recent tweetstream for shoutouts to some of the great people I met this year!

Held again in Philadelphia, this year’s event brought back memories of 2004, the year the old CLM: Council of Logistics Management became today’s CSCMP: Council of Supply Chain Management Professionals!

New of course, in it’s second year, is The CSCMP Supply Chain of the Future exhibition. And I’m pleased to report I did come across the retail & consumer products supply chain of the future but NOT at the exhibition (more on this later)

Those who know me are aware I’m active on Twitter both as @JeffAshcroft and @SupplyChainNtwk. Last year in San Diego we held the very first SCN Tweetup at CSCMP to which 3 people came. Happy to report this year we had a 100% increase in attendees and many, many more tweeting under the #CSCMP and #CSCMP2011 hashtags.

For the first time some social content was also included on Wednesday with @TerriGriffith (also presenting at our CCE2011 event in two weeks) and Adrian Gonsalvez sharing their insights. I am fascinated by the coming potential of social networking for supply chain improvement. Since 2009 I have been writing and presenting on the same, in fact Social is one of The Seven S’s of Supply Chain Management which highlights seven key trends emerging to support future state SCM.

So where did I see the Retail & Consumer Products Supply Chain of the Future you may be wondering? Well it was in the first and best session I attended this year including Del Monte, Ahold USA and a name you may not be familiar with yet, ES3!

In 1995 I lead a team which created a visionary company called Crosslink to deliver on the Efficient Replenishment benefits of ECR. Key to this success was very tightly synchronized multi-vendor product and data flows creating significant inbound transport & process savings and service improvements.

Suffice it to say I was more than pleased, and very excited, to hear what Ahold, Del Monte and ES3 have now created in York Pennsylvania. Based on complete product data synchronization this highly automated 110 foot high facility is a shared Supplier / Retailer storage and consolidation facility. On the outbound side the system automatically creates fully cubed mixed vendor and retailer owned goods to be shipped direct to store.

This facility eliminates the need for a retailer Distribution Center and savings have been pegged at 54 cents a case! Not chump change and funnily enough quite close to the projected 58 cents projected savings for a similar network called NonStop Logistics. NonStop was a consortium of major 3PL and Transport firms which proposed 29 similar facilities across the US in the 1990?s but never got off the ground.

It seems the powers that be for the CSCMP Supply Chain Innovation Award tend to agree with me. Ahold USA, Del Monte and ES3 were named as this year’s recipients and as you can see deservedly so! Not only does such a shared supply chain create savings and service improvements, it also represents the most sustainable supply chain model.

In my first Constellation Research report The Search for Synergy in Supply Chains I breakdown the component Types, Indicators and Facilitators of supply chain synergy. Part Two of this report is in process now including specific case studies such as ES3 demonstrating real world implementations validating these major synergy savings opportunities. These benefits are still on the table and available to those ready to join The Supply Chain Synergy Revolution!

See you at next year’s CSCMP in Atlanta Georgia where I have already proposed to chair a track called The Social Supply Chain!

Please ping me if you have any use cases for social networking in supply chain to share. Likewise if you have developed any socially enabled supply chain solutions please bring them to my attention. Until next year’s CSCMP and feel free to follow and reach out to me at anytime through @JeffAshcroft or @SupplyChainNtwk

Jeff Ashcroft

The report reveals that the majority of shippers worldwide are increasing their use of 3PL services, with 64 percent of respondents reporting a rise. At the same time, the report indicates an average of 42 percent of total logistics expenditures being spent on outsourcing, the same as last year’s study. However, 24 percent of shipper respondents reported some return to insourcing 3PL services and 58 percent report they are reducing or consolidating the number of 3PLs they use, indicating uncertainty about the global economy continues to impact 3PLs.

The 2012 Third-Party Logistics Study is based on over 2,250 responses from both shippers and logistics service
providers in North America, Europe, Asia-Pacific and Latin America, as well as other locations throughout the
world such as the Middle East and Australia. In addition to documenting the evolution of the third-party logistics market, this year’s report also provides an in-depth analysis of logistics operations in emerging markets and the electronics industry as well as talent management to address the skills shortage in the logistics industry.

Today’s 3PL marketplace is experiencing significant change and established 3PLs are adjusting their business
models to provide greater value to shippers. The report shows relationships between shippers and 3PLs continue
to be successful with 94 percent of 3PLs and 88 percent of shippers stating communication, flexibility and
openness are key to contributing to their success. However just 68 percent of shippers judge their 3PLs as
sufficiently agile and flexible, down from 72 percent last year suggesting this is an area where 3PLs can make
significant further contributions to supply chain success.

“The responses from this year’s study represent an interesting record of the shifting use of 3PL services,” said
Dan Albright, Vice President and North American Supply Chain Leader at Capgemini Consulting. “Whilst some
companies are increasing outsourcing services, we are still seeing the consistent churn that occurs each year
with 3PL respondents observing that some of their customers are returning logistic activities back in-house. It’s vital that 3PLs and shippers work in close collaboration and that 3PLs remain innovative by offering value
added services to provide true value to shippers to help reverse this trend.”

Spotlight: Growth in Emerging Markets while Traditional markets are slowing

A substantial 80 percent of shippers in the survey conduct business with or within an emerging market, with the
majority (52 percent) doing so from a mature market. China, India, Brazil and Mexico are considered the top
emerging market opportunities amongst respondents. With mature, industrialized markets largely growing at a
slower pace, the emerging markets offer significant growth potential. The 3PL capabilities shippers most value
when entering emerging markets are expertise on the latest global trade regulations and managing and
optimizing shipment routing based on free trade agreement (FTA) knowledge. The majority of shippers in
mature (65 percent) and emerging markets (73 percent) recognize 3PLs’ knowledge of FTAs as very important.
“Entering any new market requires due diligence and this is more critical when it’s an emerging market.
Government investment in infrastructure will contribute to attracting global manufacturers and 3PLs to do
business in emerging markets.” said Nicholas Wyss, Senior Vice President, Global Head of Industry Vertical
Fashion, Panalpina Management Ltd. “Shippers based in mature and emerging markets favor strong support
from 3PLs for a successful 3PL operating model in emerging market countries.”

Spotlight: Challenges facing 3PLS in the Electronics sector

Multiple layers, supply constraints and the specific challenges the various channels present, coupled with short
product lifecycles, mean the electronics industry demands a fast and nimble supply chain. Because electronics
products are often high value, they pose specific challenges including assuring security, preventing counterfeit
and packaging sufficiently to handle long distance transportation. Pressure to reduce operating costs was cited
as the top logistics challenge for shippers in the electronics industry (59 percent), but just 28 percent believe
3PLs can help them with this challenge. The report’s findings suggest that within the electronics industry, 3PLs
need to perform better in selling to electronics customers and shippers need to be more open to collaborating
with 3PLs to address their top challenges.

“Logistics operations within the electronics industry are faced with a number of unique challenges. Close
communication and collaboration between shippers and 3PLs is vital as supply chains become more complex”
said Dr. C. John Langley, Clinical Professor of Supply Chain Management, and Director of Development for
the Center for Supply Chain Research, Penn State University. “As the demand for high value electronic goods
increases, it is more important than ever that shippers are able to draw on 3PLs’ knowledge to achieve a solid
supply chain.”

Spotlight: Importance of Talent Management for 3PLs

Despite the positive reports of the supply chain’s role as a significant contributor to attaining business goals, the
logistics industry is experiencing a shortage of capable supply chain managers prepared to work in vital
management positions. As supply chains grow more complex, they require leaders who are more diverse and
multi-faceted. The report revealed shippers and 3PLs most highly value operational execution (51 percent and
60 percent respectively) followed by people management and development skills (54 percent and 43 percent
respectively) in their leaders. To date, the majority of both shippers and 3PLs recruit from inside their own
industries but many are increasingly looking to recruit talent from other industries. Company success and
performance, attractive salary and benefits and personal development opportunities within the company are
considered the top qualities needed to attract talent.

“As logistics become ever more intrinsic to a company’s ability to attain its business goals, shippers and 3PLs
must be able to put trust in supply chain leaders to be prepared for future business challenges.” said Neil
Collins, Managing Partner, Transportation & Logistics – Americas, Heidrick & Struggles. “The logistics market
must look to develop programs for talent management to create a clear, well-defined business strategy for the
recruitment, retention and development of talent.”

For more information and to access the full study please log onto: www.3plstudy.com

About the 2012 Third-Party Logistics Study

2,258 logistics executives from both 3PL users and providers in North America, Europe, Asia-Pacific and Latin
America, as well as other regions and geographies, participated in the 2012 Third-Party Logistics Study via a
web-based survey. The findings were supplemented with a significant number of focus interviews with industry
observers and experts, primarily relating to the special topics identified for this year. Facilitated workshops were
also conducted where shipper participants collaborated on shared issues to help provide a better understanding
of the survey’s results and to gain their valuable perspective as 3PL users. Though last year the 2010 3PL study
was published, this year’s report is called 2012 since that will be when the results will be in active discussion.

About Capgemini

With around 115,000 people in 40 countries, Capgemini is one of the world’s foremost providers of consulting,
technology and outsourcing services. The Group reported 2010 global revenues of EUR 8.7 billion. Together
with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive
the results they want. A deeply multicultural organization, Capgemini has developed its own way of working,
the Collaborative Business ExperienceTM, and draws on Rightshore ®, its worldwide delivery model.
Learn more about us at www.capgemini.com.

Rightshore® is a trademark belonging to Capgemini

Capgemini Consulting is the Global Strategy and Transformation Consulting brand of the Capgemini Group,
specializing in advising and supporting organizations in transforming their business, from the development of
innovative strategy through to execution, with a consistent focus on sustainable results. Capgemini Consulting
proposes to leading companies and governments a fresh approach which uses innovative methods, technology
and the talents of over 4,000 consultants world-wide.
For more information: www.capgemini-consulting.com

About Penn State University

Penn State is designated as the sole land grant institution of the Commonwealth of Pennsylvania. The
University’s main campus is located in State College, Pennsylvania. Penn State’s Smeal College of Business is
one of the largest business schools in the United States and is home to the Supply Chain & Information Systems
(SC&IS) academic department and the Center for Supply Chain Research (CSCR). With more than 30 faculty
members and over 600 students, SC&IS is one of the largest and most respected academic concentrations of
supply chain education and research in the world. SC&IS offers supply chain programs for every educational
level, including undergraduate, graduate, and doctorate degrees, in addition to a very popular online, 30-credit
professional master’s degree program in supply chain management. The supply chain educational portfolio also
includes open enrollment, custom, and certificate programs developed by Smeal’s Penn State Executive
Programs and CSCR, which helps to integrate Smeal into the broader business community. Along with
executive education, CSCR focuses its efforts in research, benchmarking, and corporate sponsorship. CSCR
corporate sponsors direct the Center’s research initiatives by identifying relevant supply chain issues that their
organizations are experiencing in today’s business environment. This process also helps to encourage Penn State
researchers to advance the state of scholarship in the supply chain management field Penn State’s Smeal
College of Business has the No. 1 undergraduate and graduate programs in supply chain management,
according to the most current report from Gartner.
For more information, please visit: www.smeal.psu.edu/scis and www.smeal.psu.edu/cscr

The Panalpina Group

The Panalpina Group is one of the world’s leading providers of supply chain solutions, combining
intercontinental Air and Ocean Freight with comprehensive Value-Added Logistics Services and Supply Chain
Services. Thanks to its in-depth industry know-how and customized IT systems, Panalpina provides globally
integrated end-to-end solutions tailored to its customers’ supply chain management needs. The Panalpina Group
operates a global network with some 500 branches in more than 80 countries. In a further 80 countries, it
cooperates closely with partner companies. Panalpina employs approximately 15,000 people worldwide.
www.panalpina.com

About Heidrick & Struggles

Heidrick & Struggles, the leadership advisory firm providing senior-level executive search and leadership
consulting services, has one of the industry’s leading, dedicated Transportation and Logistics practices round
the globe. We have a demonstrable track record of delivery in each niche of the segment with truly global
coverage. Clients include Integrators, Freight Forwarders, 3PL Providers, Ocean Carriers, NVOCCs, Airlines,
Rail Operators, Port Operators, Terminal Operators, and Airport Operators. Our relationships go beyond cargo
transportation and logistics companies themselves as further convergence emerges in the industry – we hold key
relationships with PE Firms, venture capitalists, infrastructure funds, deal makers (both buy and sell side),
investment bankers, management consultants and the academic community. We know the talent and with our
team dispersed all over the world, we are uniquely equipped to serve an industry that is being redefined locally,
regionally and globally.

For more information, please visit
www.heidrick.com.

Con-way Inc. (NYSE: CNW) announced today that W. Gregory (Greg) Lehmkuhl has been named President of Con-way Freight Inc., the company’s regional and national less-than truckload (LTL) subsidiary and largest operating unit.

The announcement was made by Douglas W. Stotlar, Con-way Inc. president and CEO, who has served as interim President of Con-way Freight since August 2010.

“Greg Lehmkuhl’s team-building experience and management skills have been instrumental in returning operating stability and profitability to Con-way Freight,” said Stotlar. “He has done an excellent job guiding the organization through many challenges, executing our improvement plans and positioning Con-way Freight with effective strategies for continued success.”

“Our LTL company has regained its footing,” Stotlar continued. “These results are a testament to Greg’s collaborative leadership, strategic insight, hard work, and the trust and credibility he’s established with our employees and the Board. These strengths will serve him well as he assumes the leadership reins at Con-way Freight.”

In conjunction with his promotion to President of Con-way Freight, Lehmkuhl, 38, also was named an executive vice president of Con-way Inc., the parent company of Con-way Freight.

“I want to thank the Board and our employees for their confidence and support,” said Lehmkuhl. “It is an honor and a privilege to lead this organization. We have made great strides putting Con-way Freight back on track and I look forward to sustaining and accelerating the process gained under Doug’s leadership.”

Lehmkuhl was previously Con-way Freight’s executive vice president of operations, responsible for strategic planning and execution of the company’s operating network, process design, analysis and implementation; network configuration and production efficiency. He also directed Con-way Freight’s change management, employee engagement and leadership development activities.

He joined Con-way Freight in August 2008 from sister company Menlo Worldwide Logistics. As vice president of Menlo’s Automotive Industry Group, he oversaw global strategic development, solution engineering and implementation, sales, operations, pricing, customer service and account management. During his tenure at Menlo, he played a key role leading the organization in the adoption of Lean principles and operating processes.

Before joining Menlo in 2001, he held logistics and operations management positions with Delphi Automotive Systems and Penske Logistics.

He is a graduate of Michigan State University, East Lansing, Mich., where he earned a bachelor’s degree in business with emphasis on materials and logistics management. He subsequently earned his MBA from Oakland University in Rochester, Mich.

He is based at Con-way Freight’s headquarters in Ann Arbor, Mich.

About Con-way Inc. — Con-way Inc. (NYSE:CNW) is a $5.0 billion freight transportation and logistics services company headquartered in Ann Arbor, Mich. Con-way delivers industry-leading services through its primary operating companies of Con-way Freight, Con-way Truckload and Menlo Worldwide. These operating units provide high-performance, day-definite less-than-truckload (LTL), full truckload and multimodal freight transportation, as well as logistics, warehousing and supply chain management services. Con-way also operates Road Systems Inc., a trailer refurbishing and manufacturing company which supplies trailing equipment to the company’s trucking fleets. Con-way Inc. and its subsidiaries operate from more than 500 locations across North America and in 20 countries. For more information about Con-way, visit www.con-way.com.

Media contacts:

Kemp Goldberg Partners
Amber Caron: acaron@kempgoldberg.com
Chris Philbrook: cphilbrook@kempgoldberg.com
(207) 773-0700, ext. 235

Gary Frantz
Con-way Inc.
(650) 378-5335
frantz.gary@con-way.com

———————————————————————–

The warehouse is part of ScottsMiracle-Gro’s high-service distribution model that the Company began implementing across the U.S. in 2009. Construction of the warehouse is scheduled to be completed in early 2012. The Company currently employs 40 associates in Lebanon, a number that is expected to increase modestly with the warehouse addition.

“We are excited to extend our improved distribution model to the Northeast because it will provide quicker service to our large retailers and benefit consumers in this key market,” said Dave Swihart, senior vice president, Global Supply Chain, ScottsMiracle-Gro.

“In our operations, we are striving to reduce our environmental footprint, and this distribution model is a significant contributor to that objective. This effort reinforces our belief that we can simultaneously grow our business in a way that supports our commitment to becoming a more sustainable company,” Swihart stated.

Since 2009, when ScottsMiracle-Gro began implementing its new distribution model, the Company has reduced the number of miles traveled to ship products to home center customers by approximately one-third. This translates into an annual decrease of 50,000 gallons of diesel fuel, keeping more than 500 tons of carbon emissions a year out of the atmosphere.

A Closer-Look at the Improved Distribution System

ScottsMiracle-Gro is consolidating the warehousing and distribution of its bagged products that are shipped to home center stores. This consolidation is occurring by placing warehouse facilities at existing locations, such as Lebanon, Conn. Previously, bagged lawn fertilizer products were shipped from third-party warehouses, while bagged growing media – potting mixes, soils and mulches – were distributed directly from ScottsMiracle-Gro’s operations that produce the growing media.

By consolidating the shipment of bagged fertilizer and growing media goods into regional on-site warehouses, the Company has been able to:

• Maximize truckload space, reducing overall delivered mileage and transportation costs.
• Improve inventory turns at retail by reducing fertilizer order minimums.
• Reduce overall operating costs by having the warehouse space connected to the Company’s existing low-cost infrastructure.
• Create a regional distribution network that puts ScottsMiracle-Gro’s lawn and garden products closer to the retailers for faster delivery and improved customer service.

“We have improved our order cycle time by one day, and we have also increased our peak shipping capacity in the locations we converted to this model since 2009,” Swihart added.

ScottsMiracle-Gro currently has warehouses connected to operations for the co-distribution of fertilizer with growing media products at 16 locations in Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Michigan, Missouri, Ohio, South Carolina, Texas, Virginia and Wisconsin. Through these facilities, the Company serves approximately two-thirds of its home center retailers and plans to continue rolling out this distribution system over the next few years.

About ScottsMiracle-Gro

The Scotts Miracle-Gro Company, through its wholly-owned subsidiary, The Scotts Company LLC, is the world’s largest marketer of branded consumer products for lawn and garden care. The Company’s brands are the most recognized in the industry. In the U.S., the Company’s Scotts®, Miracle-Gro® and Ortho® brands are market-leading in their categories, as is the consumer Roundup® brand, which is marketed in North America and most of Europe exclusively by Scotts and owned by Monsanto. In Europe, the Company’s brands include Weedol®, Pathclear®, Evergreen®, Levington®, Miracle-Gro®, KB®, Fertiligene® and Substral®. For additional information, visit us at www.scotts.com.

Media Contact:

Anne Kreuser
Edelman
Email: anne.kreuser@edelman.com
Phone: 212.704.4593
Cell: 646.769.8918

This statement by Rosalyn Wilson, the author of the 22nd Annual State of Logistics Report says it all: The global economy remains fragile and we have a long journey ahead of us on our path to recovery. Other alarming statistics from the report include:

> Business logistics costs rose by 10.4 % last year, totaling $1.21 trillion, which is about what American businesses paid for freight transport in 2010.

> Logistics costs as a percentage of Gross Domestic Product (GDP) climbed to 8.3 %, up from 7.8 percent in 2009 but still below the 9.9 percent registered in 2007 and 9.4 percent in 2008.

> Transportation costs rose 10.3% from 2009 levels. (Note: CSCMP members can download the report for all of the details)

Add to this the drop in stock markets in the last few weeks, the need for emerging economies to slow down as they are overheating , and the rise and danger of further rises in oil prices (see recent blog “Why did the chicken cross the road?” ) and you are left asking….so what’s a company to do?

Here is a suggestion: if you have not yet excelled at logistics, then you need to.

There are riches to be acquired by lowering your logistics cost and adding that to your bottom line.

According to the 2010 GMA Logistics Benchmark Report –prepared by IBM, the difference in financial performance between market players that are just mediocre at logistics and those that are excellent is abysmal. The median company in the survey spent 6.8% of its revenues in logistics costs versus 4.9% on average for the companies in the top quintile. This means top performers manage to transfer an extra 2% of revenues to the bottom line. With the average net profit margin for the companies in the S&P 500 oscillating between 5% and 10% in the last decade, this “logistics windfall” could mean increasing profits by up to 20-40%.

But how do I become excellent at logistics? Recently, in SupplyChain Digest, Dan Gilmore offered some excellent advice on how to improve logistic effectiveness given rising fuel prices. One recommendation he made is particularly timely: “Invest in a TMS, if you haven’t already done so, or change/upgrade if it is old”.

To delve deeper into this topic, I reached out to Andres Botero, an SAP expert on Transportation Management, to get his perspective. Andres commented “I totally agree. A Transportation Management System (TMS) can help your company reduce the overall transportation spend while achieving higher customer satisfaction levels.”

Botero offers these additional ways in which a TMS can help:

> Creating efficient transportation plans that take into consideration real-world constraints, costs, and penalties
> Optimizing mode(s) and carrier selection
> Finding and taking advantage of opportunities for consolidation of inbound, outbound or bi-directional freight
> Orchestrating, executing, and monitoring all your international and domestic transportation activities, allowing you to manage by exception –focusing on resolving issues- and continuously improve performance
> Optimizing utilization of your fleet
> Streamlining communication and collaboration with your carrier network and your freight forwarder partners
> Ensuring compliance with international trade and hazardous material handling regulations
> Providing full traceability and visibility of orders, shipments, items, events, and business process status
> Accurately settling all transportation-related transactions: determining and accounting for freight-related billing to customers, expenses for accruals, and payments to logistic service providers

“The right TMS system provides these benefits and the ability to plan, source, procure, store, transport, and deliver products – all on a single, unified platform that offers flexibility, efficiency, agility and low TCO,” said Botero.

SAP just announced the availability of its latest release in the TMS space. For more information on how SAP is helping companies effectively plan, execute, track, procure and settle transportation activities, visit the SAP Transportation Management page on sap.com.

As Rosalyn Wilson said, “The slow growth presented another year of challenges for the logistics industry”. Doesn’t it make sense to have the best tools in place for the bumpy ride ahead?

Richard Howells

Authored by transportation consultant Rosalyn Wilson of Delcan, Inc., the report has tracked and measured all costs associated with moving goods through the U.S. supply chain since 1988. This year’s report presents an overview of the 2010 economy, the industry’s key trends, and the total U.S. logistics costs for 2010 and their percentage of the U.S. GDP. It also examines which sectors of the industry recovered as well as those that didn’t, and which areas can be targeted for increased profit and growth. The research concludes with industry indicators for the future.

This year’s report revealed that the cost of the U.S. business logistics system jumped up 10.4 percent in 2010, making up for more than half of last year’s decline. Business logistics costs rose to $1.2 trillion, an increase of $114 billion from 2009. Inventory carrying costs increased 10.3 percent last year due to higher costs for taxes, obsolescence, depreciation, and insurance, which were offset by a further drop in the inventory carrying rate and warehousing costs.

Transportation costs were up 10.3 percent from 2009 levels, with trucking lagging behind the performance of other modes, rising only 9.3 percent compared to an average of 15.4 percent for the other modes combined. Manufacturing and business spending were the bright spots during much of 2010, while consumer goods production was almost flat. Industrial production was up 5.3 percent in 2010, after declining 11.2 percent the year before. The recovery from the recession has been elusive and more prolonged than any other in U.S. history, with the slow growth presenting another year of challenges for the logistics industry.

“As the economy recovers, those companies that use the statistics and industry insight contained in this report will be better prepared for their business activities ahead,” said Rick Blasgen, CSCMP President and Chief Executive Officer.

“This research is a key source of information that not only identifies macro trends and how the logistics discipline is impacted, but also details ways that company leaders can capitalize on the recovery as it occurs,” Blasgen said. “Having this knowledge helps supply chain leaders move forward in a more proactive and fact-driven way.

“Penske’s continued sponsorship of the report underscores the significant contribution that quality research makes in driving thought leadership and innovation in the logistics and supply chain industries,” Blasgen stated.

“We’re pleased to be part of this important report,” said Joe Gallick, Senior Vice President – Sales for Penske Logistics. “Over the last 12 months, we’ve seen a slow and steady improvement in business globally. We’ve also witnessed the resilience and importance of how well-managed, dynamic supply chains help companies drive down costs, manage inventories, respond to recalls, and adjust to sudden economic shifts and global crises.”

A panel of supply chain executives and government representatives from the U.S. Department of Transportation, Penske Logistics, Macy’s, Adelante SCM Corporation, BNSF Rail and Fortna, Inc., today discussed the implications of the report’s findings on their companies, the industry, and their significance in the coming months.

The “State of Logistics Report®” is available to CSCMP members free of charge as part of their member benefits at http://cscmp.org/memberonly/state.asp. The price of the report is $395.00 U.S.

About Penske Logistics
Penske Logistics is a wholly owned subsidiary of Penske Truck Leasing. With operations in North America, South America, Europe and Asia, Penske Logistics provides supply chain management and logistics services to major industrial and consumer companies throughout the world. Penske Logistics delivers value through design, planning and execution in transportation, warehousing, and international freight forwarding and carrier management. To learn more visit www.PenskeLogistics.com and our “Move Ahead” blog.

About CSCMP
Founded in 1963, the Council of Supply Chain Management Professionals (CSCMP) is the leading worldwide professional association dedicated to education, research, and the advancement of the supply chain management profession. With over 8,500 members globally, representing business, government, and academia from 63 countries, CSCMP members are the leading practitioners and authorities in the fields of logistics and supply chain management.
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With these new applications, businesses can get valuable insight into fuel consumption, vehicle maintenance needs, asset location and more, while drivers can find destinations more easily to deliver products on time.

“Challenged by rapidly increasing operating costs, companies that routinely use vehicles need to manage their fleets more effectively than ever,” said Chris Hill, vice president, Advanced Mobility Solutions, AT&T Business Solutions. “That’s why we’re adding three new, efficiency-boosting solutions to our Fleet Management portfolio. Courier Complete from AT&T, Fleet Complete from AT&T and Xata Turnpike from AT&T will help our customers closely monitor all aspects of vehicle activity for enhanced productivity and cost savings.”

The Complete Innovations and Xata Corporation products join AT&T’s award-winning portfolio – ranked number one for Next-Generation Fleet Management Solutions by business decision-makers in 2010.(1)

Complete Innovations products from AT&T include two different solutions for different types of fleet, asset and mobile workforce needs:

• Courier Complete from AT&T offers companies in the courier, messenger and distribution industries an easy-to-use solution for managing operations. With Courier Complete from AT&T, businesses can wirelessly dispatch services and track the location of deliveries, giving managers visibility into their operations. It provides unique, industry-specific capabilities that specifically address the needs of couriers, including electronic signature capture, mobile barcode scanning on packages and automated order scheduling.

• Fleet Complete from AT&T is a comprehensive, GPS-based workforce, fleet and asset management solution for small and mid-size businesses. Proven to help lower operating costs and enhance efficiencies, Fleet Complete from AT&T allows users to monitor fleets in real time and analyze past data to check in on the productivity as well as the safety of drivers. Its detailed reporting system gives fleet managers insight into vehicle maintenance needs, idling times, out-of-route or unauthorized stops and more.

“With nearly 12 years’ experience in providing GPS fleet tracking and mobile workforce solutions, we are confident that businesses across a variety of industries will embrace the benefits of Courier Complete and Fleet Complete from AT&T,” said Tony Lourakis, CEO, Complete Innovations. “We are thrilled to launch these two mobile workforce and fleet management applications on the AT&T network.”

Xata Turnpike from AT&T helps private and for-hire fleets and owner-operators to comply with CSA 2010, a Federal Motor Carrier Safety Administration (FMCSA) initiative intended to reduce commercial motor vehicle-related accidents. Xata Turnpike makes it easy for businesses to abide by hours of service (HOS) and International Fuel Tax (IFTA) reporting requirements, while simultaneously helping them to optimize their fleets’ performances. Users can install Xata Turnpike from AT&T in just minutes and then run the application on their existing mobile devices. Cost-effective and feature-rich, the Xata Turnpike solution recently won the Frost & Sullivan Price Performance Value Leadership Award for Commercial Vehicle Fleet Management.(2)

“The impact of CSA on a fleet’s operations is enormous,” said David Gagne, Chief Operating Officer, Xata. “In fact, the FMCSA estimates that 47.9 percent of carriers that received satisfactory ratings during the past five years would fail inspections under the new rules.(3) Xata Turnpike from AT&T is a simple and affordable way for companies and drivers to collect, see, sort and use driver and vehicle data to improve safety and compliance. And best of all, they can use their existing AT&T-enabled cell phones, smartphones and tablet computers.” Over the last several years, the number of companies using fleet management solutions has grown substantially, fueled by advanced technologies such as powerful smartphones, GPS location services and machine-to-machine solutions. Frost & Sullivan industry analysts noted in a 2010 report(4) that the subscriber base for Field Asset Management has increased from 1.4 million subscribers in 2008 to 2.4 million in 2010. AT&T Fleet Management solutions help businesses get ahead of the curve with innovative wireless technologies for tracking and monitoring mobile assets.

(1) Frost & Sullivan, 2010 North America CXOs’ Choice Award for Overall Best Next-Generation Fleet Management Brand, May 2010.
(2) Frost & Sullivan, 2010 North American Price Performance Value Leadership of the Year Award for Commercial Vehicle Fleet Management.
(3) U.S. Department of Transportation, Federal Motor Carrier Safety Administration, Federal Register, Vol. 73, No. 242, December 2008.
(4) Frost & Sullivan, 2010 North American Mobile Field Asset Management (FAM) Market, January 2010.
*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

About Complete Innovations Inc.
Complete Innovations Inc., is a leading global provider of mission-critical operational solutions for mobile workforce and transportation-related companies. For more than 11 years, Complete Innovations Inc. has been providing dispatching, fleet tracking and mobile resource management solutions to over 4,000 companies Worldwide. The company markets its products under Courier Complete, Fleet Complete, and FuelFast brand names, and maintains relationships with AT&T, Microsoft, Motorola, and TELUS. Visit Complete Innovations Inc. online at: www.completeinnovations.com.

About Xata
Xata Corporation (NASDAQ: XATA) provides intuitive, automated fleet management software solutions to the trucking industry. By delivering real-time critical information on vehicle and driver performance, Xata makes it easy for fleet managers, dispatchers and drivers to collect, sort, view and analyze data to help reduce costs, increase safety and compliance, and improve customer satisfaction. Xata’s award-winning solutions include 1) XataNet, a full-featured, enterprise-wide solution that helps private and for-hire fleets drive continuous improvement, and 2) Xata Turnpike, a technologically advanced, low-cost, easy-to-install solution that runs on drivers’ existing cell phones, smartphones and tablet computers. Both solutions help fleet managers and drivers meet established and emerging electronic onboard recorder (EOBR) regulations. Xata also offers a portfolio of professional services, including implementation, training and consulting, to help its customers deliver bottom-line results. For more information, visit www.xata.com or call 1.800.745.9282.

About AT&T
AT&T Inc. (NYSE: T) is a premier communications holding company. Its subsidiaries and affiliates – AT&T operating companies – are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation’s fastest mobile broadband network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet, voice and cloud-based services. A leader in mobile broadband and emerging 4G capabilities, AT&T also offers the best wireless coverage worldwide of any U.S. carrier, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse® and AT&T |DIRECTV brands. The company’s suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T Advertising Solutions and AT&T Interactive are known for their leadership in local search and advertising.

Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com. This AT&T news release and other announcements are available at http://www.att.com/newsroom and as part of an RSS feed at www.att.com/rss. Or follow our news on Twitter at @ATT.

© 2011 AT&T Intellectual Property. All rights reserved. Mobile broadband not available in all areas. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
SOURCE AT&T Inc.
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