MISSOURI: The Perfect Center
With so many transportation choices available, it’s only natural that Missouri would offer outstanding intermodal facil- ities. Developers are creating several large logistics parks that soon will make it even easier for companies to take advantage of the convergence of highways with air, rail, and river transportation. One is CenterPoint Intermodal Center-KC (CIC-KC) in Kansas City. The 1,340-acre site includes approximately 370 acres of Kansas City Southern (KCS) intermodal facilities that have been in operation since mid-2008. All infrastructure is complete in the first phase of the adjoining 940-acre industrial park developed by CenterPoint Properties. The initial phase includes more than four million square feet of warehouse, dis- tribution, and manufacturing facilities available for sale or lease. KCS will offer direct rail service to CIC-KC from the Port of Lazaro Cardenas, Mexico, in addi- tion to key markets in Mexico City, Toluca, San Luis Potosi, and Monterrey. PERFECT POSITION “CIC-KC opened in March 2008 with 11,340 feet of main line track for efficient loading and unloading, ample room for growth, extensive paved parking, gate security, and access to two four-lane divided highways – U.S. Highway 71 and Missouri 150 – providing a direct connection to a wide network of cross- country interstates,” explains Patrick J. Ottensmeyer, KCS executive vice presi- dent, sales and marketing. “This facility is well-positioned on the North American trade corridor to serve growing traffic volumes between Asia and North America and between the United States and Mexico,” he adds. “With its numerous amenities, this facility is cer- tain to be a crown-jewel for the region, and will ensure that Kansas City continues its tradition of serving as a transportation and logistics hub for North America.” CIC-KC is positioned to be an easy solu- tion for companies looking to cut supply chain costs. The modern buildings and
Mizzou Center Lends Logistics Expertise About 128 institutions of higher learning operate in Missouri, and, as of 2006, the state was granting more post-secondary degrees than seven out of the eight surrounding states. Programs in logistics and/or supply chain management are available at Fontbonne University; Missouri State University; St. Louis Community College; University of Central Missouri; University of Missouri, Columbia; University of Missouri, St. Louis; University of Missouri, Kansas City; and Washington University. One valuable opportunity that companies in Missouri enjoy is the chance to tap the knowledge of scholars at the Center for Engineering Logistics and Distribution (CELDi) at the University of Missouri in Columbia. “Mizzou,” as the university is known, is one of 10 institutions of higher learning across the country that participate in this cooperative research program, sponsored by the National Science Foundation (NSF). A company that participates in CELDi pays $50,000 to engage with a university on a logistics research project tailored to that company’s needs. A faculty member plus at least one undergraduate and one graduate student work on the project. At the University
of Missouri, the interdisciplinary program draws upon researchers from five core aca- demic disciplines: industrial engineering, transportation systems within civil engineer- ing, business, agricultural economics, and health management. Missouri companies that have worked with CELDi include manufacturer Leggett and Platt in Carthage; power company Ameren in St. Louis; aircraft manufacturer Boeing in St. Louis; Hallmark in Kansas City; and a startup in Columbia called Freight Pipeline Company, which is developing a way to transport freight through underground pipelines. “Leggett and Platt has about 200 facili- ties in the United States,” says James Noble,
The University of Missouri, Columbia, hosts a research center for supply chain projects.
director of Missouri’s CELDi program. “Initially we looked at consolidation strategies for their network. Then we branched out to their China-U.S. link, and considered how to con- solidate and configure their inbound logistics network.” For Hallmark, CELDi analyzed the design of the company’s distribution center in Liberty. “We were modeling how to optimally lay out SKUs within the facility to reduce picking costs,” Noble says. “With Boeing, we’re exploring supply chain energy costs. For example, as energy fluctuates, how might it reconfigure its network, and what transportation modes would it use?” For Ameren, CELDi worked on de-aggregating the company’s inventory forecasts to make them more precise. And for Freight Pipeline, “we’re doing some of the modeling for network design and some additional feasibility work,” Noble says. Along with the results of these proprietary research projects, each participating com- pany receives a general report – minus the confidential information – from each CELDi project conducted across the country. The program also funds the development of software products based on selected research projects, which all participants receive. For example, next spring will see the release of a freight consolidation tool based on the Missouri cen- ter’s work with Leggett and Platt. “The nice thing about CELDi is that you get more than your money’s worth just from the project. And then you get all these add-ons,” Noble says.
88 Inbound Logistics • September 2009
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