Although the corporate world is showing an increasing interest in supply chain management, there are still numerous issues to be resolved. This presentation highlights a number of challenges being faced regularly by those managing global supply chain, logistics, and transportation responsibilities. Included among these are value creation, matching supply and demand, integration, managing information technology, outsourcing, globalization, environmental priorities and “green” logistics, and the need to change and reinvent. Concluding remarks focus on a number of defining characteristics of “excellent” supply chains. Among the key challenges to be discussed are the following:

• Need for supply chain integration
• Assuring that supply chain decisions make sense financially
• Identifying information technologies that are necessary for supply chain success
• Leveraging outsourcing as a competitive tool
• Defining the social and environmental responsibility of supply chain management
• Helping executive management understand the importance of supply chain management to overall business success

Mike Haining Senior Vice President of Supply Chain PETCO Animal Supplies

With thousands of SKUs in the mix, PETCO will significantly expand their sourcing from China in 2008. Mike Haining faces the challenge of getting the right product and the right supply chain structure in place to support his company’s growth. Leading PETCO’s global sourcing, as well as supply chain, Mike brings a process mentality which is critical in selecting vendors and facilitating this important transition.

• Consolidating the manufacturer base, by optimizing source points
• Working with top-tier consultants to establish best practices and
  help improve import sourcing capability
  
• Striving to becoming an industry leader in quality standards,
  going beyond the call of government regulations
  
• Observing suppliers’ appreciation of this guidance, helping
  them avoid risk in the future
  
• Using a warehouse consolidation facility at Chinese ports to build
  full containers which can be direct-shipped to distribution centers
  in the U.S.
• Eliminating the need for deconsolidation centers at West Coast
  ports
  

Jeff Siewert Director of International Logistics The Home Depot

The Home Depot operates the third largest import program into North America. As Director of International Logistics, Jeff Siewert is responsible for operations at its sourcing origins, with ocean carriers, and at destination ports to get products to Home Depot distribution centers and stores. Almost all of this is coordinated and executed through external parties. Thousands of containers can be moving in his pipeline at any time and so not only is visibility of cargo critical, but so are performance measures in each of the three operational areas. Off-the-shelf visibility tools and external provider service compliance tools are commonplace, but after over a year of market research and vendor presentations, THD decided that it would try to build something that better suited their needs of easily spotting items in the chain that were at risk of missing milestones and rolled out their new tool in 2007. In the same way, in 2007 the group developed and implemented scorecards for its operational areas that not only measured service provider performance, but also THD performance impacting each area. With its proprietary visibility and scorecard tools, Jeff is now embarking on a new phase of improved information across his international supply chain operations that allows him to better manage his far-flung locations and service partners on an exception basis. The information access in turns helps support THD's supply chain transformation now underway. In this session, Jeff shares lessons learned and how he is applying these tools to his operation.

	Patrick Sherry, PhD Professor and Director – National Center for Intermodal Transportation University of Denver
	Bob Pertierra Vice President – Logistics Industry Development Metro Atlanta Chamber of Commerce
	Stephen M. Rutner, PhD Professor of Logistics and Transportation Director, Southern Center for Logistics Georgia Southern University

In 2005, the U.S. transit system was rated a D from the American Society of Civil Engineers. Transit use is increasing faster than any other mode of transportation yet investment is falling. Ports struggle under volumes that, by conservative estimates, are expected to double by 2020. Around $200 billion is called for in the coming 20 years to maintain existing rail networks and to accommodate for projected growth. Our panel discusses practical solutions to this crisis and how to come up with this critical investment.

• How can the extra revenue required to expand the national network be found?
• How could revenue be more closely linked to the use of the transportation system?
  • Should more direct user charges be explored?
• What can be done to address the system maintenance costs that compete with the necessary expansion of the system?
• How can the U.S. maintain and improve its competitive advantage over newcomers to the global economy while also managing to avoid the “perfect storm” ahead?
• In what ways can business promote not only more investment in the U.S. transportation system, but more intelligent investment, complemented by better operation of the system?

Patrick Sherry, PhD Professor and Director – National Center for Intermodal Transportation University of Denver

Simply investing money in the U.S. transportation system will not be sufficient to cure the nation’s infrastructure woes. Strategically reorganizing the system so that it becomes more seamless across various modes of transportation is urgently needed. Not establishing an intermodal policy to maximize interconnectedness will only further stress the U.S. infrastructure in the years ahead. Pat outlines the imperative for change:

• Understanding the need for modal connectivity and solutions that support an interdependent freight transportation network
• Realizing the need for political leadership in this area:
• Lack of understanding, preventing an accurate assessment of the problem’s severity
  • Modal silos (truck, rail, water)
  • Policy silos (trade, energy, environment)
  • Lack of national transportation policy
• Reinforcing the importance of intermodal connectors, the short links connecting the U.S.’s most important seaports, airports, railyards, barge facilities and pipelines to the National Highway System
• Adding intermodal connectors to the capital investment priorities of marine terminals and port infrastructure
• Recognizing the confluence of transportation, energy and environment
• Considering combining intermodal freight solutions with passenger needs
  • Could the two function side by side?
• Putting aside the disagreements and mistrust of the past to unite the freight transportation community in goals to lobby for new policies

Doug Marchand Executive Director Georgia Ports Authority

Facilitating global trade through strategic U.S. East Coast gateways, the Georgia Ports Authority is a leader in the operation of modern terminals and in meeting the demands of international business. Georgia's ports combine industry innovations with proven flexibility to create new opportunities along the entire global logistics pipeline, delivering what the market demands. Now responsible for the nation’s fourth busiest port in terms of containers handled, Doug Marchand shares the exciting projects ahead for the state authority.

• Expanding facilities to handle the projected additional freight from both imports and exports
  • Purchasing new ship-to-shore and yard equipment
  • Expanding gates to handle increased truck traffic
  • Improving and expanding on-dock rail facilities
  • Achieving better velocities through the terminal with technology enhancements
• Financing these new developments and coping with the day-today challenges of an operating port
• Engaging in port deepening projects to be able to handle the types of vessels that are demanding a U.S. East Coast load/discharge
  • Keeping on track with major developments in the Panama Canal
  • Maintaining close contact with environmental groups to ensure their concerns are addressed in these major changes to the local ecosystem
• Retaining competitive advantage and facilitating new development for the local economy

Bob Pertierra Vice President – Logistics Industry Development Metro Atlanta Chamber of Commerce

In 2004, the Metro Atlanta Chamber of Commerce established the Atlanta Logistics Innovation Council to attract, grow and retain high value logistics industry companies and jobs. The council and Chamber members are working to leverage Atlanta’s unique advantages – its geographic location, interstate network, world’s busiest airport, rail and port connectivity, as well as its high concentration of logistics companies, intellectual talent and innovative research, to position Atlanta as the place the world turns to for logistics solutions. The Chamber’s efforts are paying off. In 2006 it was recognized by the International Economic Development Council for its strategy to grow Atlanta’s logistics industry. Bob Pertierra shares success stories.

• Creating more than 4000 jobs through logistics site selection services
  • Companies include: Petsmart, Pepsico, Dick’s Sporting Goods, Newell Rubbermaid, and Kumho Tires
• Improving and enhancing Atlanta’s image and position as a national and global leader in logistics
• Becoming a top 5 cargo airport in U.S. (currently #11) by increasing air cargo volumes at Hartsfield-Jackson Atlanta International Airport
• Retaining crucial existing manufacturing companies by working to improve the region’s transportation infrastructure

	Doug Marchand Executive Director Georgia Ports Authority
	Jeff Siewert Director of International Logistics The Home Depot

When they are running correctly, West Coast ports of Los Angeles and Long Beach are among the worlds finest, receiving 40% of U.S. container shipments. However, they work currently at 99% capacity, leaving no room for error or hold-ups. Nervous shippers have begun exploring alternatives elsewhere, to the benefit of the East Coast. Experts discuss the current state of the U.S. port system and the pros and cons of diversifying your points of entry.

• Understanding that the last five years have been fraught with issues affecting West Coast ports’ abilities to provide effective service:
  • Overcrowding
  • Labor disputes and shortages
  • Lack of cohesive legislative action
• Exploring alternative solutions to diversify your port destinations
• Taking shipments through the Panama Canal to the East Coast, adding sailing time but perhaps providing a net advantage to importers due to quicker transit through the port
  • Considering ports elsewhere on the West Coast, e.g. Oakland and Seattle
• Potentially avoiding expensive and unreliable intermodal transportation as your product travels shorter distances once it hits U.S. shores
• Ensuring a constant flow of product to market