Global Institute of Logistics Honors Hellmann Worldwide Logistics

The Global Institute of Logistics has honoured Hellmann Wordwide Logistics in recognition of the company’s outstanding contribution to the development of global supply chain excellence.

(PRWEB) July 14, 2006 -- The Global Institute of Logistics has honoured Hellmann Worldwide Logistics in recognition of the company’s outstanding contribution to the development of global supply chain excellence.

The ‘Award of Excellence’ was presented by Kieran Ring, Chief Executive of the Institute at the North American Industry Dinner held to honor the memory of founding Chairman Robert V. Delaney during the US 3PL Summits on in the Buckhead Intercontinental, Atlanta on 27 June 2006.

Hellmann was identified by the Institute through its research on how supply chain strategy is being deployed by global consumer product brands in support of sourcing in China. The Institute’s study of ‘best in class’ in Supply Chain Management on the Trans Pacific route has taken place over the last 24 months, and the work of Hellmann has been instrumental in identifying the dynamics surrounding supply chain management in China. The Institute has conferred its highest honor, the ‘Award of Excellence,’ on Hellmann, as a tribute for this invaluable contribution

Speaking at the Award presentation Kieran Ring, CEO of the Institute said:

“Over the last year, the maritime logistics piece is the one that has talked to us the most, particularly as we looked at trade between China and the US. It’s no longer a competitive advantage for US firms to source in China, practically everyone is there. As a result, most logisticians in the US would like to narrow the Pacific Ocean. That’s not going to happen, but thought leadership and good relationships can make a difference.”

He added that Hellmann Worldwide was doing “an exemplary job” of building strong relationships with port operators such as Yantian International Container Terminals in southern China.

Accepting the award of behalf of Hellmann’s Mr. Roger Haeussler, Global COO for Hellmann Worldwide Logistics said:

“We feel honored to receive this important award and recognition from this industry leading Institute. Due to our extraordinary strength in China with over 30 offices in the major metropolitan areas, with over 900 dedicated employees, with full "A" licenses for all logistics services and with a wide customer base active in all major industries we were in a great position to share non proprietary intelligence on integrated logistics models that are cutting edge.

We believe that our value proposition which is enhanced by our focus on careful listening to our customers' needs leading to customized and flexible solutions, provides our clients the ability to extract cost from their supply chain while never compromising the demanding delivery and purchasing scheduling.

We continue to make extensive investments in our network, IT infrastructure, Process Management and Customer Solutions Teams”

Hellmann Worldwide’s President for Business Development in Asia, Paul Goldsbrough, speaking at the presentation commented

“I feel quite privileged to accept this. We’re in a competitive industry, and to go forward, it’s essential for us to look at our clients and come up with a solution that’s best for them.”

He explained that a collaborative approach, and lasting relationships were fundamental elements of the Hellmann philosophy.

“This is clear even from our company logo, two wild geese,” he added. “Wild geese look for a partner for life. We are a 135-year-old company, and we have built the business based on the longevity of our relationships.”

Background to the study

In 2006 more than 40% of America’s imports are from the overseas subsidiaries of its corporations while at the same time, China accounts for about 25% of the global growth of GDP.

Globally, comparative advantages are shifting rapidly, leading to the de-industrialization in North America and Europe, and a re -industrialization of Pacific Asia.

Theses factors are imposing a major shift in global freight flows and creating an ever- lengthening supply chain. Economic development in China has been the prevailing factor behind the recent growth of international transportation. The trading distances involved are often considerable and this has resulted in increased demands on both the maritime shipping industry and on port activities.

As its industrial and manufacturing activities develop, China is importing growing quantities of raw materials and energy and exporting increasing quantities of manufactured goods. Consequently there has been a surge in demand for the movement of goods. The ports in the Pearl River Delta in Guangdong Province, now handle almost as many containers as the ports in the United States combined.

All indications are that this development is set to continue.

The latest Industry forecasts on low cost sourcing trends, point to an 18% increase in spend by Fortune 500 brands on sourcing in low -cost platforms over the next 3 years, with expenditure expect to rise from its current 21% to 39% over that period.

Shippers are realizing significant cost advantages through their China sourcing programs. Consumer goods and retail companies have gained annual savings that range from 9 to 46% on selected items sourced from China.

However, such savings have been accompanied by negative effects to supply chains, such as longer lead times, unreliable delivery, and slower turn on inventory.

Against this background the Global Institute of Logistics set out a research programme to understand how companies were managing the dynamics of global trade in this new scenario and to determine how the most adaptive were coping with its challenges.

The objective was to establish how leading companies incorporate supply chain management into their China sourcing strategies.

The study focused on how organizations designed and developed integrated operating models. In the final analyses this was found to be the key strategic difference between supply chain leaders and those companies loosing out. Significant efforts were devoted to understanding how supply chain leaders execute against their operating strategies and adapt them to changing market needs.

Scope:

Research was focused on the Consumer Products Vertical and on:

1. The Chinese Market:

2. The Trans Pacific Trade-lane

3. The Containerized Shipping Mode of Transport

In the following environments:

1. The internal Chinese logistics market.

2. Portside at both sides of the Pacific Ocean

3. On the Final mile between port and store in the US.

And within the following contexts:

1. The demands of today’s consumer for more choice

2. The ever-increasing security detail surrounding global trade.

3. The highly fragmented, expensive and developing Chinese logistics market.

4. The worsening congestion problems on the West Coast and overall decrease in carrying capacity in the USA.

Aims and objectives:

The aim of the study was to establish accepted best practice by the stakeholders in Sino–US trade, creating ‘bench-marks’ and to promote these standard operating procedures and their adoption by other shippers.

Through this research the Institute has identified the early adopters at brand level and will reward them for their contribution to the development of best practice by conferring on them its highest accreditation the ‘Award of Excellence’

The purpose of this accreditation is to raise standards by first setting them.

About Hellmann Worldwide Logistics

Hellmann Worldwide Logistics, the global logistics network, operates from 341 cities in 134 countries and employs in excess of 15,000 dedicated people to serve our customers worldwide. Hellmann is one of the world's largest privately and family owned logistics provider in operation since 1871

Please visit www.hellmann.net.

About The Global Institute of Logistics

The Global Institute of Logistics is a community of logisticians and supply chain professionals drawn from the global business community who support the Institutes objectives of creating end-to-end integration and visibility in the global supply chain.

The Institute actively fosters and promotes relationship orientation as its key change agent and catalyst in pursuit of these objectives.

Relationship orientation refers to the proactive creation, development and maintenance of relationships between global supply chain partners resulting in mutual exchange and fulfillment of promises at a profit.

It is the Institutes assertion that the greater the level of relationship orientation between stakeholders, the greater the operational logistics service quality improvements that will result.

The Institute acts in a binary fashion to bring stakeholders together through thought leadership.

This leadership finds expression through RELAY is the Institute’s Official Business Quarterly Magazine and www.globeinst.org the Institute’s online news and research portal, which archives best practice and also through the various Councils chaired and organized by leading professional and populated by industry experts.

The Institute promotes logistics in mainstream media in pursuit of its stated aim of achieving board level status for the profession of logistics and supply chain. We are an accredited news provider to all of the world’s leading search engines including GOOGLE and Yahoo. In the past year, press statements issued by the Institute have been accessed more than 500.000 times on the World Wide Web.

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