TRENDS
NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS
‹ CONTINUED FROM PAGE 33
Irvine, Calif.-based Kia Motors America has hired Tom Leimkuhler (pictured) as vice president, parts. In his new role, Leimkuhler, an auto industry veteran, UP THE CHAIN PEOPLE ON THE MOVE
Retailers have traditionally been competent managing lean invento- ries to account for shifting consumer demands–but their strategies are neces- sarily evolving with the times, observed Wilson. Supply chain visionaries recog- nize the value of addressing strategic distribution decision-making closer to supply to respond better to demand. How businesses manage inventory deeper in the supply chain also reverber- ates out to how they distribute product to consumers on the domestic front. “Large, regional distribution cen- ters do not facilitate the flexibility and time-sensitive deliveries these compa- nies make. Retailers are starting to use local warehouse sites, serving fewer locations, but with more technology to manage inventory,” noted Wilson. 2006 In Review How did these trends impact last year’s numbers? The U.S. business
logistics industry continued to grow at an unprecedented rate, eclipsing 2005’s record year by 3.5 percent, Wilson reported. Total logistics-related costs topped out at $1.3 billion and rose from 9.4 to 9.9 percent of the nomi- nal Gross Domestic Product ( see chart, previous page )–an increase of $130 bil- lion from 2005. Over the past decade, business logistics spend has increased 63 percent. Despite soaring fuel prices, softening truck capacity conditions, and increased competition, many motor freight car- riers reported modest revenue growth, largely a result of passing along sur- charges to customers. As a result, transportation costs were up 9.4 percent over 2005. The motor freight market set the tone for the cargo industry at large: U.S. ports handled an 8-percent increase in TEUs last year; railroads managed a record 9.4 million containers; and air cargo saw freight
will oversee all parts and accessories for logistics, inventory management, and retail sales. Leimkuhler was most recently managing director, supply chain management and
vice president, parts, at MG/Nanjing Global Motors, where he created and managed the aftermarket parts and supply chain divisions in China, Europe, and the United States. ● Dan Brady was named vice president of the aero- structures business sector at Aurora Flight Sciences Corporation , a manu- facturer of unmanned aerial systems and components based in Manassas, Va. Previously, Brady served as direc- tor-global supply chain management at Vought Aircraft Industries, overseeing demand planning and inventory control, commodity management/procurement, and materiel strategy. ● Federal Signal Corporation , an Oak Brook, Ill.-based security products and solutions company, has selected Fred H. Lietz as vice pres- ident and chief procurement officer. Lietz now leads Federal Signal’s strategic enterprise sourcing strategy, including global sourcing and commodity manage- ment initiatives. Before joining Federal Signal, Lietz was vice president of global procurement and logistics at Andrew Corporation. ● Scott A. Storrer has been appointed group president of health care supply chain services for Cardinal Health ’s pharmaceutical supply chain services business. In his new role, Storrer is responsible for pharmaceutical distribution, specialty pharmaceutical services, nuclear pharmacy services, and Medicine Shoppe franchise operations at the Dublin, Ohio-based pharmaceutical supply chain company.
34 Inbound Logistics • July 2007
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