2011_july developments newsletter

8/3/2019 2011_July Developments Newsletter

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Developmentsjuly 2011

Its twilit at a ppla tk stp i a small tw i

Tss. A tk plls is i i t a stp at a

l da id t wl. I t s tai

is 18-wl is $10 milli wt ds dstid

t Mmpis was a mdial sppl

wlsal. As s d dzs tims ,

t tk lls is tak ad s isid a qik

sw ad a p . W ms t, is

tk is , ad a ai ati tat tats t

atis d sppl is d wa.

No,thisisnttheopeningscenein anIanFlemingconspiracy

thriller. Its the story o an actual crime one o many cargo

theftspulledoffeverydayacrossAmerica.Cargotheftinthe

U.S.rose4.1percentin2010,with899reportedincidents,the

highest on record.1Andwhilethetotalnumbersarentknown

because many companies dont report cargo crimes, direct

lossesworldwideareestimatedatupto$30billionperyear. 2

Addintheimpactofhigherpricestoconsumers,lossofstate

and localsales tax revenue, insurance claims, lost time and

productivity and the risk o physical and emotional harm to

employees, and the costs o cargo thet are staggering.

Cao Tt baic

Cargo is defned as any commercial shipment moving via

trucks, planes, railcars, ships, etc. rom its point o origin to

its fnal destination. I merchandise is stolen anywhere in

between,forexample,onthehighway,ata truckstop,ata

storage acility, in a warehouse, at a terminal or on a whar, its

considered cargo thet.

About63percentofallfreightintheU.S.movesintruckseasy

prey or thieves who roam the interstates targeting containers

flled with cosmetics, designer clothes, electronics and the top

prize,pharmaceuticals. Cargocriminalsexploitthe weak links

in the trucking supply chain, such as truckers who dont always

ollow the rules on where they park and when they stop or

bk

SeTTIng InDuSTry STAnDArDS SInce our IncePTIon In 1989, IDI hAS The TALenT, vISIon AnD InAncIAL STAbILITy To heLP ShAPe The

uTure o InDuSTrIAL reAL eSTATe. ocuSIng excLuSIveLy on The InDuSTrIAL SecTor, IDI IS A PrIvATeLy heLD reAL eSTATe coMPAny

DISTInguISheD by ITS IMPeccAbLe InTegrITy AnD PreMIuM ProPerTy PorToLIo.

1 How the Supply Chain Fought

Cargo Thet in 2010,

www.thomasnet.com,

February 8, 2011.

2 Inside Cargo Thet: A Growing,Multi-Billion-Dollar Problem,www.bi.gov,

November12,2010.

Cargo Theft: A Heav load on the Spp Chain$30 Biion Probem Contines to Grow


2/4

2

root: Podcti wo i t waoIntegration with Warehouse Management Systems Is a Key Component

I last iss Developments, w amid

t impat was maamt sstms

(WMS) a ai distiti ts ad t

mmt ds m pla t at.

I tis atil, w llw tl adas

tat a aai ai t was

: tis.

LookingaroundatypicalAmericanhomeorofce,itshardto

fnd anything that didnt pass through a warehouse or distribution

centeronthewaytoitsdestination.Basicwarehousefunctions

havent changed much over the years; items still go through

receiving, sorting, storage, picking, packing and shipping.Warehouse automation, however, is dramatically changing the

way these unctions are perormed.

Warehouse automation is on the rise, driven by competitive

pressure or improved cycle times and accuracy, and by top

management directives to reduce costs. In a 2010 survey by

the Aberdeen Group, nearly half the respondents reported

warehouse cost increases relative to revenue year-over-year.

37percentsaidtheywouldinvestinwarehousetechnologiesto

curbtheupwardtrendinlaborandoperatingexpenses.Among

the ront-runners in warehouse technology advancements are

warehouse management systems and robotics systems.

woi Tot

Awarehousemanagementsystem iscomplexsoftware that

streamlines order processing and manages inventory, storage

locations and workorces. Robotics systems incorporate

sotware and hardware to physically pick, pack, palletize and ship

products. Typically, when robotics sotware is integrated into an

enterprise system, the primary interace point is the WMS.

Robotics systems have been used in manuacturing or years.

Applicationsarecontinuallybeingdevelopedforthedistribution

environment, with our main types o robots leading the way:

statioa aticlatd oot a d pimail o

palltizi ad dpalltizi. They are able to meet the

challenges o receiving/replenishment and order ulfllment/

shipping using built-to-order pallets in various sizes consisting

o multiple stock keeping units (SKUs). They are also ast

and accurate, avoid product damage and oer the highestshipping density and pallet load stability.

gat oot a id-li tct tat mo

oizotall ac ad ot alo oad tac

tat ca pa la aa i t ao. They are

particularly useul or high-SKU, high-rate case and layer

picking applications.

rootic am id o a tac t o o pallt

aci ad ac ito t aci to pic podct

idtid a cod cai. The back and orth,

horizontal movement o the base unit, the vertical movement

ofthecarriagesystemonthemastandtheexibilityofthe

telescopic arm provide a high degree o maneuverability.

Moil oot a mo adacd om o atomatd

idd icl (Agv), ic a idd ma, foo

i, iio o la. Mobile robots replace human travel with

robotic travel and ree skilled warehouse workers rom pulling

carts, delivering palletized loads and positioning supplies.

Robotics systems are making a name or themselves in

warehouses across industries including retail, automotive,

e-ulfllment, ood and beverage, pharmaceuticals, publishing

and third-party logistics (3PL). They are best suited for

companies with a high number o SKUs and a lot o medium-

to slow-moving product.

wot t Pic o Admiio

Theinvestmentinroboticsisnotsmall;in2008,theAberdeen

Group estimated it would take at least a million dollars

to implement a quality system. The compelling benefts,

however, go beyond higher productivity, increased accuracy

and labor cost savings:

Mostrobotsareenergyefcient;plus,theentirerobot

zone can be operated with almost no lighting.

Robotsaremoreexiblethanhumansinadapting

to changes in product types and order volume.

Becausemobilerobotsdoallthewalking,employees

experiencelessfatigue.

Workersinroboticenvironmentsreportlessmental

atigue, stress and rustration rom conorming to their

peers pace o work.

Employeesafetyimprovesbecauseworkersdontwalk,

theyre in control o their own work and they enjoy a

quieter environment.

AtthecurrentrateofWMSandroboticsystemadoption,it

is easy to imagine a uture where ully automated, computer

controlled distribution centers will hum with robots busily

unloading pallets, retrieving products rom storage and taking

them to shipping.

Language

of Robotics

Lgv (la idd

icl): Psiall

ms ds ad

liks mais i

t was.

Als kw as

Agv (atmatd

idd il).

root palltizi

tm: lil t

appliatis tat

pik ds m t

pdti li ad

palltiz tm.

wMs (ao

maamt tm):

T ai a

was atmati

sstm tat kps tak

sstm pma,

it ad data

taki ds.

wappi maci:

A spializd t

appliati tat waps

t isd pallt wit

plasti lm.

r

ootic tm icopoat

ota ad ada to

picall pic, pac, palltiz

ad ip podct.

1Robotics Going

Mainstream: Improve

Warehouse Productivity

and Saety,AberdeenGroup,

September, 2010.

2Scalability, Flexibibility,

Portability: Zappos

Rewrites the Rules or

Warehouse Design,

AberdeenGroup,

May, 2008.


3/4

3

1 The Shippers Guide

to Project Logistics

Cindy H. Dubin,

www.inboundlogistics.com,

December 2010.

Did wd w t massi mpts

dd t ild a la at mad ti

wa t t middl a Kasas paii? o w

a 14-t wal sak t m t Idia oa

t a aqaim i Atlata, gia? As wit

t a tat is sizd, wit, -

dimsial, ail, azads twis ad

t adl, ts spial sipmts w mst likl

tasptd a pjt listis pid.

Project logistics providers manage every aspect o moving

special cargo from one place to another. Because their

customers are usually in heavy industries such as powergeneration, energy, manuacturing, petrochemical, mining,

bulk material handling, engineering and construction, the

items they ship are quite unique and can require everything

rom police escorts to roads and bridges built especially or

them. These and other common project logistics challenges,

includingextremetimepressures,securityconstraints,very

long distances, changing customs regulations and hard-to-

reach locations, are typically beyond the scope o traditional

reight orwarders.

Kuehne+NagelInc.,aglobalthird-partylogistics(3PL)provider

and IDI tenant, knows the issues well. Logistics used to be

all about warehousing, transporting and handling product at

theleastcost,saysAdrianHawkins,VicePresident,Projects.

Project logistics, however, goes against that old mindset o

putting savings frst. Project logistics can require years o

planning or billion-dollar projects, and shippers cant take

logistics or monetary shortcuts.1

MajorprojectlogisticsproviderssuchasKuehne+Nagelwork

with clients to map out every detail o a job. They oten start

with an initial easibility study and dont stop until the cargo

is saely delivered to its destination. They coordinate with

authorities, supervise loading and unloading, arrange labor and

equipment and take care o a thousand other tasks all the

while keeping the client up to date on their shipments status.

A Citical Coic

Choosing a project logistics partner requires a dierent

level o due diligence than choosing a conventional

shipping company. Reerrals are a great source, as is the

ProjectProfessionalsGroup,whosemembersprovidefully

integratedlogisticsmanagementsolutions.Otherselection

tipsfromtheexpertsare:

Loo o compai it acial tailit, pop

iac ad xpic adli pcial cao

pojct. Your relationship could span many months and

you want to make sure your partner will be there or the

long haul.

I poil, d a ic pla o pcializ i o

idt o a xpic tapoti itm imila

to o. Just because a company has a well-known name

doesntmeantheyhavetheexpertiseyouneed.

Iti at lat t compai to dic pojct

dtail, dtad ti i tl ad a o

c.Again,thisisalong-termpartnershipandahigh

degree o comort and trust on both sides will help ensure it

goes smoothly.

Cc c call. Ask for details about

communication, project management, schedules, budget

management and quality control.

All in a

Days Work

Pjt listis is

t t ait

at. Ts ms a

til pstd

wit wlmi

alls qii

spial ptis,

pi ad t

atiit t slptd plms.

h a sm

ampls wat

pjt listis a

amplis:

Giantchemical

ats ad tws

w tasptd t

a ildi sit

a tmpa ad

mad almim

pals laid ass

ams lds.

Animmensehigh-

lta tasm

wii 255 ts

ad stadi 30 t

tall was sippd

ass t Atlati

a a ai.

A 115-t as tak was mdass t t si afati a, a i aad a pli-std tk.


4/4

IDI: A Case

for Security

With security being such

a high priority, warehouse

tenants oten look to their

real estate development

or property management

partners or help, says Je

Lanaghan, Vice President o

Leasing and Development

in IDIs Chicago ofce.

We recognize many o our

tenants have high security

needs, especially i they

handle pharmaceuticals,

electronics or other items

targeted by criminals.

Special security measures

IDI put in place or an

electronics and appliance

retailer in Illinois include:

Apavedtrailerstorageareato

create a separate, controlled

access point or trucks. This

allows the tenant to operate

as a separate entity withinthe multi-tenant building.

Securityfencingaroundthe

entire truck court with a

sliding gate and intercom to

control access. To meet city

standards, ornamental iron

encing with outward bending

tines was used.

Securitylightingandcameras

throughout the truck court to

enhance nighttime visibility.

Anaccesscorridortobring

employees rom the side

o the building to the ofce,

where they must go through

metal detectors beore

entering or leaving the

acility. This allows the ofce

area to be placed along the

docks without giving up dock

positions or parking stalls.

Ofceareaglasstintedto

limit visibility into the building.

Numerousinteriorareas

enced o to prevent

employees rom accessing

merchandise.

Cardreaderstolimitaccess

to certain areas or high

clearance employees.

Allreexitandaccess

doors wired and alarmed

to notiy i opened.

IDICorporateOfce

Eleven Hundred Peachtree

1100 Peachtree Street

Suite 1100

Atlanta,Georgia30309

Dlpmt. Istmts. Ppt Maamt ad Lasi.

Developmentsi plid o t clit ad id o IDI.

Addresscorrectionscanbee-mailedto IDI Marketing and Communications:[email protected]

2011 Idstial Dlpmts Itatial.All its sd. All tadmaks a t pptis tispti mpais.

IDI Oc

Copoat

404.479.4000

Atlata

770.232.1500

Cicao

630.919.1040

Ciciati

859.663.2880

Dalla

972.560.7000

Fot Laddal

954.678.2100

Lo Al

949.614.8200

Mmpi

901.680.7100

Piladlpia

484.654.2000

I Ti I

CArgO TheFT: A heAvy LOAD On The suPPLy ChAIn

Direct losses rom cargo thet are estimated at up to $30 billion per yearworldwide. Find out when cargo is at its greatest risk and what measurescan be put into place to prevent it.

rObOTs: PrODuCTIve wOrkers In The wArehOuse

Warehouse automation is on the rise, driven by competitive pressure orimproved cycle times and accuracy, and to reduce costs. What types o robotsare currently leading the way in the distribution environment and could yourcompany beneft rom this new technology?

sPeCIAL hAnDLIng requIreD

Did you ever wonder how a 14-oot whale shark got rom the Indian Oceanto an aquarium in Atlanta, Georgia? Like other cargo that is oversized, ragileor hazardous, this special shipment was most likely transported by a projectlogistics provider. Take a look at some examples o what these providerscan accomplish.

cargo theft: a heavy load on the supply chain m

Cert no.BV-COC-080210

2295

uel.3 Lack o coordination across local county jurisdictions

makes cargo thet a low-risk venture or crooks who are just

passing through.

Despite the drama o a stolen or hijacked big rig, cargo

is actually at its greatest risk when its being loaded and

unloaded. During this particularly chaotic time, getting the

truck away rom the dock oten trumps security. The most

common scheme involves a truck driver and a warehouse

employee working together to sidestep security measures

and cover up where and when a thet occurred.

Ptti t ba o Cao Tt

In a recent survey by FreightWatch International, a global

logistics security solutions provider, 81 percent o

respondents rated cargo thet as the supply chains top

concern over the next ve years.4 Prevention, as with

any crime, is the key. In the warehouse, locks on doors

and windows, security cages, cameras and security seals

on packages are obvious solutions, but experts say it

takes a comprehensive plan to thwart todays thieves.

Many believe a high percentage o cargo thets involve

inside inormation or complicity,4 which makes employee

screening and background checks absolute musts. Just

as important is careully screening transportation partners

andintermediaries.Oncegoodsleaveyourpremises,these

companies are responsible or them until they reach their

destination. Management visibility in the warehouse, a

security-aware culture and periodic security audits will let

potential criminals know you take thet prevention seriously.

The more theyre watched, the less likely they are to strike.

Security due diligence is also critical once your valuable

merchandise is on the road. Prepare your drivers with anti-

thet/anti-hijacking training and a communication plan thatincludes time intervals and distress code words. Keep in

mind that thieves oten ollow departing trucks and pounce

when they stop, so pay attention to shipment routing and

dont let drivers stop in the red zone (the frst 200 miles

or our hours rom their starting point) or known hot spots. 5

Take advantage o vehicle and shipment tracking, vehicle

immobilizationandadvancedtrucksecurityseals.Askyour

supply chain partners to agree to a protocol and inspection

process to ensure your cargo has not been compromised

beore one party accepts it rom another.

ri Do t road

According to the Federal Bureau of Investigation (FBI),

cargo thet is oten a gateway crime that turns into a case

involving organized crime, public corruption, health careraud, insurance raud, drug trafcking, money launder ing or

possibly even terrorism.6 With so much at stake, increased

awareness and more stringent prevention techniques are

vital to supply chain saety and eectiveness.

3Cargo Thet: The New Highway Robbery,www.businessweek.com, May 26, 2011.

4Survey: Cargo Thet Top Concern For Supply Chain Risk,www.ccjdigital.com, June 2, 2011.

57 Steps to Prevent Cargo Thet,www.industryweek.com, December 1, 2008.

6Inside Cargo Thet: A Growing, Multi-Billion-Dollar Problem,www.fbi.gov,November12,2010.

2011_july developments newsletter

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