2003
2003: Global Institute of Logistics Established
NEW YORK JUNE 2003
GLOBAL LOGISTICS FORUM BECOMES GLOBAL INSTITUTE OF LOGISTICS
The Global Logistics Forum (GLF) announced today the setting up of an Institute to build a global network of thought leaders and to study and promote the science of logistics. Since its establishment as a “think tank” at the European Institute of Transport Management” in 1996, the GLF has earned a place as one of the preeminent networking platforms and sources of information on the opportunities and challenges in global logistics.
The first step in the process will be establishing the Institute, setting up its offices and recruiting its senior executives. Kieran Ring secretary of the GLF will be the Institute’s CEO and divide his time between the US, China and Ireland where he is based.
“The Global Institute of Logistics will work tirelessly to build a global network of thought leader committed to collaboration and the development of best practice. We know how central logistics is to globalization and are ready to play our part in its development and professionalisation”
KIERAN F. RING FOUNDER & CEO GIL
THE CHINA FACTOR
The Global Institute of Logistics will encourage and develop collaboration between stakeholders in the global supply chain resulting in higher logistics service quality and consequently a better economic performance of all partners. GIL will focus particularly on shipping lines, stevedoring companies, inland transport operators and forwarders and encourage them to re-think their role in the logistics process, particularly in light of the China factor.
Since China’s accession to the World Trade Organization in 2001 the shift in sourcing from West to East has been exponential. This has led to massive growth in the % of cargo which is flowing intercontinentally, mostly by ship. Today more than 40 per cent of imports into the US are from the overseas subsidiaries of its corporations, while China accounts for about 25 per cent of the global growth of gross domestic product. Both of these factors are imposing a major shift in global freight flows and creating an ever-lengthening supply chain. The lengthening of the supply chain is forcing shippers and their service providers to relate more closely in the pursuit of visibility and process improvement, this phenomenon is leading to the adoption of ‘collaboration’ as one of the central tenets of organisational behaviour in the global supply chain.
Collaboration refers to the creation, development and maintenance of relationships between global supply chain partners resulting in mutual exchange and fulfilment of promises at a profit. It is a philosophy for doing business successfully; it promotes a culture that puts the buyer-seller relationship at the centre of a firm’s strategic and operational thinking. Much work has to be done in the maritime container logistics chain to break down a silo based approach to process execution, which runs almost in the direct opposite to what manufacturers and shippers are expecting.
BACKGROUND:
Global manufacturers are basing decisions on how they organise production and, in fact, their whole corporate structures entirely on the provision of logistics services. The ‘modular production’ model is an example. In this, contract manufacturers carry out production against a background of organisational change. The set-up comprises small and large firms, and small and large geographical scales; it aims to create a large number of products in few processes to receive maximum revenue through economies of scale.
Logistics has grown to become the key unit within this set-up, since it has to provide agility and flexibility for any one module, as well as for the interaction of all modules, in the entire network. That means organisational as well as geographical flexibility. Thus a major shift has occurred in how and where commodities and their components are being assembled, manufactured and distributed.
This combined with the continued push toward efficient manufacturing processes such as lean and Six Sigma mean that it’s not enough to know that critical parts or stocks are on the way or have been shipped. Manufacturers need to know exactly where supplies are in the supply chain, whether they’ve cleared customs, whether they’re sitting in a warehouse or if they’re on the last leg in a journey to the loading-dock or the customer.
The Institute will assist in bringing this awareness to the logistics process through its two primary strategies of building direct relationships between the end user and logistics service provider and by building case studies to support the argument for greater collaboration.
RESEARCH
The Institute’s research programs will identify how companies manage the logistics of global trade and determine how the most adaptive are coping with its challenges. In particular we will research how logistics service providers in the maritime container logistics supply chain respond to the demands of Beneficial Cargo Owners (BCO’s) The aim of our research is to establish accepted best practice , create ‘benchmarks’ and to promote standard operating procedures and their adoption across the global maritime container logistics supply chain.
The research will be leveraged to support our mission to develop a community of thought leaders from across the world who have been identified as committed to building strong relationships in pursuit of a logistics system fit for purpose. Logistics systems are the arteries of trade and central to the success of globalization in the 21st century. These systems will rely heavily on collaboration between stakeholders across continents. Notwithstanding the practical advantages of strong relationships, collaboration has been proved to lead to reductions in inventory, lower costs for shipping, storing, sourcing and handling products.
BEST IN CLASS
Our research will identify and accredit individuals and corporations that the research identifies as “first movers” or “thought leaders” in their approach. Within this parameter the pre-eminent criteria leading to accreditation is that that the organization or individual identified demonstrate an exceptional level of regard for the role and function of relationship excellence in the development of their business and can be demonstrated by a significant level of operational and strategic integration.
METHODOLOGY
GIL will deploy a mixture of primary and secondary research tools in its work. Our primary research will rely heavily on knowledge missions to the areas in which our research is being conducted. There we will use a combination of:
- Formal/ informal interviews
- Direct observation,
- Participation in buying missions & logistics negotiations
- Attendance and participation in conferences
- Focus groups with various stakeholders
to build up a detailed picture of the environment.
RESEARCH SCOPE
1. Collect the widest possible range of viewpoints
2. Identify the key organizations, agencies and individuals
3. Create an industry wide consensus
4. Identify the benchmark operator
2003: New Institute’s Identity Released
NEW INSTITUTE’S IDENTITY RELEASED
The folks at 20-20 Vision Design Group were burning the midnight oil when they came up with a secret weapon: Logistics Man. “We realized that logistics was all about human intelligence people taking charge of a blizzard of facts and figures. So this diving, or dancing, or exultant figure had to be right there in the logo.”
Speed and grace Look closely: he faces screen right, his head the dot at the opening of the G, his body extending around its circumference, leaving a “trail” suggesting both speed and grace.
“In the end, it was an old-fashioned, pencil-and-drawing-pad moment,” Diarmuid laughed, “but we finally felt we’d cracked it.” He can also be read in reverse: as a “tugging” figure facing screen left, leaning back to pull some massive, invisible weight. Neatly enough, this simple, schematic figure suggests all three Global Institute of Logistics initials: the G, a dotted “i” and a ghosted “L” suggested by the strong horizontal stroke.
BLIZZARD OF FIGURES
“We preserved this focus on the human when we designed the opening animation,” Scollard explains. “We start with a blizzard of figures, and it is a human hand ?not a machine or a computer ?that points, indicates, and calls that chaos to order.” Scollard and his colleague David Park built up the sequence from stock footage and original material. They then called in award-winning director Ken Wardrop, of Dublin-based Venom productions, to colorize it and add a soundscape. Wardrop in turn hired freelance sound designer David Turpin, who created a sequence suggesting both factory noises and the harmony that comes from order. Editor Andrew Freeman completed the team, creating “shock cuts” between slow sequences and fast, and variety in pacing and light.
TRIUMPH
“It’s fascinating that the designers came to the same conclusions about logistics that we did,” said Institute CEO Kieran Ring. “Human intelligence will solve most of our production glitches and delivery problems. Yes, it’s about machines and computers, but they are only, in the end, a product of human intelligence. The entire sequence is a kind of visual parable for the triumph of the human spirit.”
2003: ROBERT V.DELANEY TO CHAIR GIL
NEW YORK JULY 2003
ROBERT V.DELANEY TO CHAIR GIL
Mr. Delaney establishing a system for calculating the cost of logistics as a percentage of national GDP in the US.This methodology has been the foundation for the industry-leading report in the US logistics sector ‘The Annual State of Logistics Report’ which Bob publishes each July.
Bob Delaney is Vice President for Cass Information Systems. Cass is the largest provider of information services and systems to the logistics and transportation community in North America. Mr. Delaney also serves as a consultant to ProLogis. ProLogis is the largest, publicly held global owner and operator of distribution properties headquartered in the United States.
“Bob is considered the father of modern logistics. Much of what is known about supply chain integration, cutting costs and raising sales in the world of logistics has been learned from his comments and reports. It is a huge endorsement of the Institutes aims and objectives that Bob has taken the Chairmanship of the Institute in this its first full year in the public eye. “We are thrilled to have Bob on board.”
KIERAN RING CHIEF EXECUTIVE AT THE GLOBAL INSTITUTE OF LOGISTICS
BIOGRAPHY
Prior to joining Cass and ProLogis, Mr. Delaney served as a consultant in logistics and transportation with Arthur D. Little, Inc. and Ernst & Young. Mr. Delaney’s transportation management experience includes service as Senior Vice President for Leaseway Transportation and Eastern Region Distribution Manager for Ryder Systems, Inc. His logistics management experience includes senior positions at International Paper Company, Pet Incorporated, Monsanto Chemical Company, and Nabisco.
Mr. Delaney is a graduate of the Alexander Hamilton Institute. He studied at New York University’s Stern School of Business and earned his M.B.A. and B.S.B.A. degrees in 1966 and 1963, respectively. He did post-graduate work in Economics at St. Louis University and American University. Mr. Delaney is a certified member of the American Society of Transportation and Logistics. He is a founder member of the Warehousing Education and Research Council and Council of Logistics Management. He is a member of the National Press Club, the Cato Institute, and the Heritage Foundation. He is a member of the Board of Directors of USFreightways Corporation and the ENO Transportation Foundation’s Board of Advisors.
Mr. Delaney contributed to writing the legislation that reformed the economic regulation of our motor carrier and railroad industries in 1980. He played a leading role in the passage of the Aviation Act of 1994 which ended the economic regulation of the trucking industry by the states. He is the co-author of two books on transportation strategy and distribution operations. His views and articles on transportation public policy have been widely published by business and transportation press. Mr. Delaney received the John Drury Sheahan Award for contributions to the field of business logistics from the Council of Logistics Management in 1981. Mr. Delaney received the Harry E. Salzberg Award for his contributions to transportation productivity from Syracuse University in 1988. He received the Joseph C. Scheleen Award for Excellence from the American Society of Transportation and Logistics in 1992.