TRENDS
NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS
‹ CONTINUED FROM PAGE 15
Mexico/U.S. Customs and Food and Drug Administration clearance. Putting together a plan that ensures both par- ties are familiar with proper procedures necessary to move a “clean” import is absolutely critical. The extremely punitive penalties resulting from non- compliance make this an area for zero tolerance when it comes to communi- cation issues. IL: What best practices is Hormel sharing? MARCONI: One example of a best prac- tice that Hormel and ASF will be sharing is working together to determine the best process for communicating a sales fore- cast and production plan to the Herdez Del Fuerte planners in Mexico. Prior to the merging of the supply chains, ASF communicated its needs to Herdez Del Fuerte differently than Hormel Foods communicated theirs. The integration is giving us the opportunity to review each compa- ny’s different processes and determine what worked and what didn’t work. We are using this knowledge to develop a new process for improving our communication.
To get a better feel for the behind-the- scenes supply chain integration, Inbound Logistics posed some questions about the new initiative to Luis G. Marconi, joint venture manager and senior prod- uct marketing manager, and Thomas A. Klein, manager of logistics and customer service, Hormel Foods. IL: Will you integrate the two companies’ supply chains? MARCONI: Yes, we will merge the supply chains previously operated by Herdez Del Fuerte and its subsidiary, Authentic Specialty Foods (ASF), with the supply chain operated by Hormel and Herdez Del Fuerte. Our objective is to integrate ASF’s distribution center into the Hormel supply chain. This DC will be supported by Hormel’s warehouse control system as well as its order, logistics, and trans- portation systems. An integration team comprised of members from ASF, Herdez Del Fuerte, and Hormel was assembled to ensure that supply chain integration occurs on time and with minimal disruption. This team is charged with developing best practices for all supply chain func- tions and determining which current
practices will work best to support the new organization. IL: What are the logistics hurdles in launching a new product line? KLEIN: We really aren’t launching a new product line; we are building a better international supply chain by merging the independent pipelines operated by ASF/Del Fuerte and Herdez/ Hormel. The new supply chain will be able to leverage the resulting MegaMex sales volumes with the national scale of the Hormel supply chain to provide cost efficiencies as well as increased service capabilities. IL: Does this cross-border alliance create any other special challenges? KLEIN: Good communication is key to ensuring that both companies are aware of each other’s business needs. You can never assume that the Mexican part- ner knows what the U.S. business needs. Good, open communication allows both companies to be alert to potential issues and work together to solve prob- lems and take advantage of new growth opportunities. One specific area that requires good communication is supporting proper
Sea Change in Florida Port Security
P iloting a new precedent for securing U.S. ports, Port Everglades, the Port of Miami, and the Port of Palm Beach recently signed a memorandum of understanding to begin sharing information and accepting one background check for entry into all three seaports. Under the agreement, port workers and truck drivers now need only one Florida criminal background check instead
has a different access system, we have agreed to share a database verifying that an individual has passed a state- mandated background check and is eligible for port access according to state security standards,” says Manuel Almira, port director for the Port of Palm Beach. While the Florida Legislature recently amended the state’s seaport security laws to establish a statewide
of multiple, duplicate checks to work at the three South Florida seaports—eliminating cost, time, and paperwork. Prior to this agreement, workers
port access eligibility reporting system that will allow for access to all Florida’s public seaports with a single background check, implementation of that system will take a few months. This reciprocity agreement will provide some relief to South Florida port workers until the system is in place.
had to pay for and complete a separate Florida criminal
background check to gain entry at each seaport. Now, those who have a current and valid credential from any of the three facilities can obtain an access card to each port with the same background check. “Even though each of our ports
Port Everglades is among three Florida seaports that will benefit from shared security and background checks.
16 Inbound Logistics • September 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND
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