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SUPPLY CHAIN SCAN
facility. its five acres of land purchased in the lower mainland of Vancouver." DONE DEALS
The initial stages of development will be completed by the third quarter of the Waterloo, Ontario-based Descartes Systems
year, and training will begin on handling bulk and breakbulk commodities. in Group has purchased KSD Software Norway
2014 a crane will be added to the site and used in training individuals how to AS, an Oslo, Norway-based provider of electronic
move containers. Customs filing solutions for the European Union.
Vurdela says that because the training will be away from work it will be safer. The purchase price was US$33 million.
more efficient and not hurt productivity. The other advantage to this program
will be the ability to follow graduates’ progress. Brandon, Manitoba-based railway service provider
"We'll keep track of them so when they get out there. if they're not operating Cando has been picked by Winnipeg, Manitoba's
on the level we consider optimal. we can bring them back to BCMEA U and give Tundra Energy Marketing Ltd to provide railcar
them refresher courses. That will be a first in labour relations in North America. loading and switching services at Tundra's new
Nobody else does that." crude petroleum terminal near Cromer, Manitoba.
He said last year the association trained over 2.600 people and recruited just The terminal will have the potential to handle crude
under 900 workers who were new to the industry. It spent $5.5 million on train— oil unit trains of more than 100 cars, and Cando
ing. which he says is about average. but this year. that number will go up. Once will provide locomotives and operational staff.
fully equipped. the training facility will be worth more than $20 million.
Penske Logistics will run the BMW of North
Managing a global Supply Chain America LLC parts distribution centre in Nazareth,
Aaron Hutcherson. vice—president ofglobal supply chain planning and procure— Pennsylvania. Penske will provide a trained labour
ment for McCain Foods Limited provided the closing keynote (sponsored by force for the after-sales warehousing and fulfillment
MMdv~D) on the first day of the two-day event. i-Iutcherson spoke about proactive facility that supplies automotive parts, motorcycle
and reactive change. parts, and lifestyle items for distribution to BMW
Proactively, McCain is currently in the middle of a company—wide SAP Group dealerships in North America. Penske
implementation. Logistics will begin operational management of
"Prior to this we had separate reporting and accounting systems around the the 875,000sqf facility starting July 1, 2013.
world.” he said. adding if he wants a global look at sales. produc-
tion and inventory data "it means gathering data from 10 separate
databases in regional offices and integrating that data before deci-
sion making. For a global company, this is not fast or efficient.” . _
The food manufacturer has also been forced to implement change
as a reaction to failed initiatives. including a new product launch C U N S I D E R E B
that fell apart due to unexpected demand. Hutcherson told the «
audience of McCain's launch of sweet potato fries into the Australian - T H E A I T E R N] V
and New Zealand markets. He explained this product had a 49-day . ' 1, ‘ . s, -. _
turnaround from production to retailer's freezer. _. V ‘ . . ‘ —'fi'3.-§-:,.'_.'_.'>
When sales of the fries began, McCain had what was projected ' - \- _..‘_' A- ' ‘ ‘("6->« “‘_ E’ ’
to be a three—month supply ofinventory. At first. sales during the mi _ _,.~ 5-» 1' 117$. ' __
soft—launch phase were righton target.but when nationwide adver— ,_ ' . ‘I " l._ " ' "Fifi . u __ l'
tising began, sales jumped sixfold in three weeks. “It was the quick— K |. ‘y l ’ \»,- M
est. most successful launch in McCain’s history.” he said. r ‘ _7 l ‘
"But. alas. we were not prepared for this level of success. We scram— ll . .,, l ' c K
bled to keep up. big time. We did things like expediting additional "3' g I_" ‘ V - '
production runs. We got additional products shipped from South l ‘V _: __ _ M
Carolina. Got onto additional ship sailings from alternate ports... ‘ g . - — ‘ h I ' .
And we even considered airfreighting shipments from New Brunswick 1 ; W T ° 7 ' ‘ h
to Australia. At that point 1 said ‘Stop. We have to declare uncle.” ' 4 __t l l l‘ -J
The company put the retailers on allocation. halted advertising, ' w y"
and stopped allowing promotions. The efforts slowed demand. ’__ 3.} .<.. _
but the damage was done. In two months of record sales. the entire ‘ l A l ‘ ' ’ ”
supply chain was depleted, and it took an additional five months P H 0 V E N u D _ P B 0 U E N S E c L
to restock to the point where customers could be taken offalloca— Pfiflvffl Tl) 3|-lmlf ]’|-{[ BEST wnflflmflv [H [HE BUSINESS,
tion. Hutcherson said sales did return. but they never reached ‘
volumes from before the crisis. “ll [‘ f, P I T V n F T A R I
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1-888-709-7757 INFO@CAPACITY‘I'RUCK.COM CAPACITYTRUCKJZOM
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