Partnerships: the key to effective logistics solutions. (Special Advertising Feature).

GREATER COMPETITION AND PRICing pressures in the Latin American marketplace have forced companies to respond more quickly to their customer needs through faster product development and shorter delivery time. At the manufacturing, wholesale and retail levels, businesses expect their suppliers to deliver high-quality products right on time. Yet that vital goal is often difficult to achieve in a market whose challenges include:

* Complex tariff rules.

* Time-consuming customs regulations and practices.

* Infrastructure problems like poor roads or overcrowded freight yards.

* Lack of reliable communications networks.

* Foreign exchange issues.

"Companies should have an understanding of Latin America's regulatory environments, logistics practices, business cultures, duty and tax implications, and market accessibility before shipping," said Gary Vince, director, PBB Global Logistics, in a presentation at the Canadian Association of Logistics Management's recent annual conference in Toronto.

For Latin American manufacturers, distributors, growers and other shippers, the most effective solution may be teaming up with a knowledgeable logistics partner who can provide either direct shipping services or third-party logistics (3PL) solutions.

Manufacturers, for instance, may choose an in-house approach or an outsourced solution to managing their supply chain. Logistics solutions are just as vital for agricultural producers, who rely on air and sea cargo services to carry their produce, flowers, fish, beef, wines and other foods to market.

Today's logistics solutions also depend on a smooth flow of information--consumer orders, retail sales, wholesaler inventory, shipping dates, arrival times, financial payments, etc.--among all parties involved in a supply chain. Because better planning and more accurate forecasting help companies reduce inventory levels, supply chain and logistics applications are often tied in directly with enterprise resource planning (ERP), customer relationship management (CRM) or other front- or back-office applications.

The need to share information--combined with online database and e-commerce applications--has contributed to the increasing interdependency of all parties involved in a supply chain. Closer cooperation helps supply chain members to match demand and supply at every step of the production and transportation process, thus contributing to greater overall productivity.

In a recent research paper, "The Collaborative Supply Chain: A Scheme for Information Sharing and Incentive Alignment," Professors Togar M. Simatupang and R. Sridharan of Massey University, New Zealand, argue that this type of collaboration is the key to creating mutually profitable logistics programs.

But they say the potential benefits of collaboration are rarely realized due to management inertia and inability to overcome corporate differences in interest. The result can be too many or too few units in inventory, and shipment timing or location errors. "The chain members habitually work as an individual firm based on local perspective and opportunistic behavior," they wrote. "However, local perspective and opportunistic behavior of maximizing individual profit often occurs at the expense of other members and works against the overall profitability."

In other words, Latin American businesses need to build "win-win" supply chains that balance their own business needs with those of their partners. Through effective logistics management, companies at all levels will be able to boost their sales and profit margins, while taking advantage of the countless opportunities available in the fast-paced global marketplace.

As Vince notes, "The countries of Latin America each pose their own challenges and unique processes to traders. By building key personal relationships with contacts who understand the marketplace and by doing some critical pre-shipping analysis and research, Latin America can become an important and profitable market."

UPS LAUNCHES OCEAN SERVICE

UPS has launched a new ocean service option for shippers who manufacture goods in Brazil and China and import into the United States. The new service dramatically speeds the movement of ocean-transported goods by minimizing stops on land.

The new service, UPS Trade DirectSM Ocean, transforms ocean-containers into pre-labeled small packages or less-than-truckload shipments. Shipments move from the ports to nearby UPS freight facilities with minimal handling, processing and storage.

UPS Trade Direct Ocean, operated by UPS Freight Services, is the latest integrated service in UPS's growing portfolio of transportation and logistics options that enable global commerce and simplify international trade for customers.

"UPS offers services that are innovative and timely," says Joe Pyne, senior vice president responsible for UPS Supply Chain Solutions. "We're developing digital-age solutions today to meet our customers' 21st century challenges."

Under Pyne's leadership, UPS is developing services and capabilities to assist customers in streamlining their global supply chains, and in converging the three flows of commerce--goods, information and funds. Pyne oversees a team that explores new directions, innovations and partnerships that complement UPS's long-term strategy.

UPS's new service is ideal for large apparel, sporting goods, electronics and other companies that utilize the ocean as an economical transport mode and want order delivery direct to their customers.

The streamlined processes benefit shippers by bypassing multiple distribution centers, minimizing the need for shipper-owned warehouses. The process also minimizes handling, which potentially means less loss and damage and faster origin-to-final destination transit times. Customers currently using the service indicate time savings of 220 days.

Shippers also see indirect savings because their inventory is moving faster from factories to end customers, speeding up their cash flow and receivables and lowering inventory carrying costs. Consolidated billing also helps to cut administrative costs for shippers.

UPS Trade Direct Ocean adds to UPS's growing portfolio of supply chain management and transportation network offerings. Operations include distribution centers in more than 150 countries and such services as freight forwarding, customs brokerage, international trade services, order fulfillment and service parts logistics. "Our goal is to simplify the complexity of global commerce," says Pyne.

UPS is a leading global provider of specialized transportation and logistics services, and is the world's largest small package and express carrier. Through its UPS Supply Chain Solutions subsidiaries, UPS delivers logistics, freight, customs brokerage, financial, mail services and consulting solutions to enhance customers' business performance. UPS Freight Services specializes in global transportation solutions, customs brokerage and international trade management. For more information, visit www.ups.com.

DHL CONTINUES TO IMPROVE DESKTOP SHIPPING TOOLS FOR LATIN AMERICAN CUSTOMERS.

Internet applications and e-business tools are being implemented by many companies worldwide. Customizing those applications to provide enhanced service quality of service is going one step ahead. A 1998 survey commissioned by DHL Worldwide found that customs regulations were the number one problem for multi-nationals, with nine out of 10 experiencing export problems due to procedural confusion. In response, DHL implemented the perfect e-solution for this issue.

To make the shipping process smoother for its customers, DHL created DHL Connect, which, among many other features, provides detailed, local reports on customs regulations in more than 220 countries. DHL Connect is a pioneering web-enabled software application, which allows businesses to more easily manage the shipment process. The software provides information about custom documentation required for specific destinations.

DHL Connect is the latest in DHL's on going program of Electronic Business support tools, which also includes mobile SMS and WAP tracking of shipments. Using the DHL Connect desktop software, companies can instantly book a pick-up, prepare waybills, keep track of shipments, print reports, save a' database of recipient addresses and alert them of impending delivery via automatic email.

DHL Connect is a free client-based application that creates all the necessary export documentation and makes the use more convenient.

"DHL Connect is an essential tool for businesses, using the latest web technology to streamline the whole logistics process," says Christian Collin, DHL e-business manager. "By accessing a vast network of real-time information, businesses can create massive efficiencies and savings." For more information, visit www.dhl.com.

INTERMARINE EXPANDS SOUTH AMERICAN SERVICE

Intermarine has expanded its services to all of South America in the past year. In addition to its core trade from the U.S. Gulf to the north coast of South America and the Caribbean, Intermarine now has frequent and reliable service to and from Brazil and the west coast of South America. Even Iquitos, Peru, 3,000 kilometers up the Amazon, receives Intermarine vessels.

In addition to services from the United States, Intermarine is affiliated with the Trinitas service that links Europe with Brazil. Fernando Maruri, Intermarine's general manager for South America in Caracas, says, "Our broadening of scope has done a lot to help offset this year's general decline in shipping to the north coast, particularly to Venezuela."

Maruri attributed Intermarine's success in South America to its style of service. "This is a very customer service-oriented marketplace. Having ships is not enough--you must have the experienced people in place to see that the cargo is moved right." As an example, Intermarine provided the turnkey delivery of one of the world's most sophisticated bulk shiploaders, which was transported earlier this year from Corpus Christi, Texas, to Venezuela. The dual orbiting slewing unit was designed and erected by Svedala Industries for the Sincor Coke and Sulphur handling project in Jose, Venezuela.

The prefabricated sections amounted to about 12,000 cbm (cubic meters) of cargo and completely filled one of Intermarine's new series of heavy lift vessels, MN Industrial Century. This vessel transported the sections to the Port of Guanta, where they were transloaded to Intermarine's Barge Sophie J (a 90x30 meter ocean-going flat-deck heavy lift barge with more than 2,000 square meters of cargo stowage area). After delivery to Jose, the Barge Sophie J was used as a staging platform for construction support during the assembly of the shiploader at the erection site, which is approximately one kilometer from shore.

"Our people are supported by one of the world's most modern fleet of heavy lift vessels," says Maruri. The Industrial Century that transported the shiploader is one of seven sister vessels with a 16.5-knot service speed and two 200 metric ton electro-hydraulic cranes combinable for 400-ton lifts. "All seven of these ships are operating in Intermarine services along with more than a dozen others all built in the last five years," adds Maruri.

Intermarine, with headquarters in New Orleans, is a worldwide provider of ocean transport, as well as inland heavy haul transportation services for breakbulk, specialized project and heavy lift cargoes. For more information, visit www.intermarineusa.com.

MENLO WORLDWIDE OFFERS SINGLE-SOURCE SOLUTION

A $3 billion global leader in logistics, transportation and fourth-party logistics (4PL), Menlo Worldwide is the single source solution to all of an organization's supply chain needs in Latin America. Combining the strengths of three industry-leading companies in logistics (Menlo Logistics), transportation (Emery Forwarding) and supply chain management (Vector SCM), Menlo Worldwide, a subsidiary of CNF, Inc., adds significant value to any supply chain.

Emery Forwarding has maintained a presence in the region for over 30 years. In addition to its Latin America headquarters in Miami, Emery's extensive geographical coverage includes 30 offices in 16 countries with anchor offices in Mexico, Guatemala, Brazil, Argentina, Chile and Peru. Long-established alliances in the remaining markets such as Venezuela and Columbia ensure Emery customers receive more than simple transportation of shipments from point A to point B.

"We offer integrated solutions," says Ronald Young, vice president- Latin America. "From multimodal services to state-of-the-art technology to creative vision, we develop tailored transportation programs that work."

From air and ocean to project management, logistics and trade services, Emery offers a comprehensive menu of global transportation services with a focus on the automotive, telecommunications, electronics, contract manufacturing, apparel/retail and textile, heavy equipment and machinery, pharmaceuticals and healthcare and mining in Latin America.

Menlo Worldwide Logistics specializes in designing, implementing, and operating the most complex logistics supply chain projects around the world. In Latin America, Menlo Worldwide Logistics manages an after-market parts distribution for a major automobile manufacturer in Chile. In Mexico, Menlo is active in warehousing and distribution. Top-tier companies worldwide look to Menlo to supply strategic supply chain solutions. "We design innovative strategies, improve customer service, speed up order cycle times and tighten control of global supply chains," says Young.

Vector Supply Chain Management is the lead logistics manager worldwide for General Motors. A joint venture between GM and CNF Incorporated, Vector SCM improves the speed, flexibility and reliability of GM's global supply chain. In Brazil, Vector manages a multi-million dollar venture of General Motors do Brasil's distribution of after-market parts and accessories to dealers throughout Brazil as well as providing customer service and information technology support. Vector will soon offer similar 4PL services to companies in other major industry groups as well.

"For more than 55 years, we've shaped our business model to serve our customer's needs," says Young. "Prestigious companies in Latin America and around the world rely on Menlo Worldwide as their single-source solution." For more information, visit www.menloworldwide.com.