American logistics center - development, competition, cooperation coexist

American logistics center - development, competition, cooperation coexist

Source: Civil Aviation Resource Net Expert Author: Ni Haiyun 2009-03-12 09:37:50 I have two sentences ( 0 )

[ professional classification ] planning and development [ Article ID ] 30-2009-0045

“As a city history, everything is about logistics and transportation,” said Dexter Muller, senior vice president of development and logistics at the Memphis Regional Chamber of Commerce in the United States.

Thanks to its central location and its extensive transportation infrastructure, Memphis has attracted countless major companies to establish their supply chain network. Today, Memphis is constantly improving its competitive advantage, allowing companies to transport goods more efficiently.

It is not surprising that many professionals call it the logistics center in North America. When you start talking about logistics in the city, you definitely mention FedEx first. The logistics giant officially started a business trip in Memphis on April 17, 1973. After 35 years, it has developed into a global transportation giant. At the same time, the city has become a magnet for attracting many companies, making time-limited transportation a standard. Starting from Memphis, FedEx can reach anywhere in North America within 24 hours and reach major cities in the world within 48 hours.

Unimpeded operation

Location is one of the main reasons why FedEx chose Memphis as a hub. "There is one of the regions in the United States that operates in an unimpeded manner," said Tom Schmitt, CEO of FedEx Global Supply Chain Services. "This is not affected by harsh weather conditions such as hurricanes, blizzards or icy weather. This is the establishment of the United States. The best location for the hub.” Due to the huge daily traffic of FedEx, the International Airport Association ACI has ranked Memphis International Airport as the world's largest cargo airport for 16 consecutive years. In 2006, the airport's cargo throughput exceeded 2.6 million tons. FedEx is not the only air transport specialist here. UPS also has 535,000 square feet of inspection facilities at the airport. Memphis is the third largest US passenger hub for Northwestern/KLM. In order to develop the cargo business, the airport's runway has been specially treated to undertake large tonnage aircraft.

That's why the city is able to attract so many companies – providing reliable express delivery guarantees. One of the corporate characteristics is the bioscience industry, where one in seven local employees work in the industry. Memphis is also the second largest production area for orthopaedic equipment in the United States, and companies like Smith & Nephew, Medtronic and Wright Medical chose the city because of its well-connected logistics services. Muller said: "For example, doctors in Los Angeles treat patients at 9:00 pm, order orders for Smith & Nephew products, and surgery can begin at 11:00 the next day. Memphis is one of the few cities in the world that can provide such services."

Most of FedEx's goods are transported through Memphis every other day, so many shippers have great advantages in setting up their hubs here. For example, the “National Eye Bank Center” is also located here, and there is the largest corneal bank in the world. Also for Flextronics, it has the world's largest laptop repair point in Memphis.

Global presence

The world-famous flower gift contractor 1-800-Flowers is also based on the Memphis-based cold storage, operated by a 3PL, Mallory Alexander International Logistics Company, with its headquarters in the city. It receives flowers from all over the world, and the company handles customer orders. Orders can be accepted at 8 pm at the latest, then picked, packaged and shipped for delivery the next day. Lee Mallory, executive vice president of the company, said: "We handle more than 100,000 orders per year for the flower network company."

Companies that rely on the advantages of Memphis International Airport Air Express include: Technicolor Video, the world's largest DVD distribution center; the largest overnight drug testing center in the United States - Advanced Toxicology Testing Center; HP; Panasonic; Cingular; Jabil Global; Huiduan and Glaxo's distribution center.

Based on the rich resources of Memphis, many 3PLs come from this operation. One of the major 3PLs, NewBreed Logistics, originally believed that Atlanta was an ideal place to establish a distribution facility as a US center. However, compared with Memphis, it is impossible to accept the delivery of the next morning delivery order. Joe Hauck, director of corporate development, said: “This has led us to move our operations from Atlanta to Memphis.” The company operates a distribution center of more than 2 million square feet in the city, for example as a Siemens medical solution. The company's 3PL, the company's distribution center from Memphis shipped various parts to 17 storage stations across the United States, which helped Siemens deliver parts such as CT and X-ray tomography scanners within 2-6 hours of the customer's phone call. In the hands of customers. "We chose Memphis because we were able to replenish the goods early the next morning."

The company also distributes Verizon's handsets, receives handsets in Memphis and ships them to consumers and retailers everywhere. “This is a high-speed operation, and the goods are ready at midnight at the latest for early delivery the next day. This service requirement makes the city a favorite.”

American Aviation City

Today, the airport can be seen as a new model - the aviation city - which includes industry, retail, and service industries. Many industries rely on air transport – hotels, tourist destinations, residential areas, etc. through efficient ground transportation.

Professor John Kasarda of the Kenner School of Business at the University of North Carolina has been advocating the development of the airport city: "Memphis has many characteristics for building an aviation city, and it is currently implementing more infrastructure and land use planning."

Airport City brings three main benefits to the business: speed, flexibility and connectivity. Memphis has these three characteristics. Memphis' business and transportation leaders have been working to create the "America's Aviation City" brand. Relevant people have set up a steering committee to pay full attention to the development of the project in the aviation city. They are working on a development master plan and bidding for advice from an expert. And they have begun planning a multi-year project to upgrade the ground transportation corridor near the airport. Muller said: "We are upgrading facilities, public safety, economic development and transportation in the region."

People from the city and county governments participated in the Steering Committee, as well as business leaders. The concept of Aviation City has been supported by all aspects. Schmitt said: “All the participants – including those with budgetary funds – made various suggestions – they were sitting on the same table and uniting under the same goal.”

Multiple modes of transportation coexist

The air cargo infrastructure accounts for only a quarter of Memphis' supply chain, a city with multiple modes of transportation, through highways (including two interstate highways I-40 and I-55), waterways and railroads. Globally connected. 400 trucking companies operate in the region; operations in the three countries of the United States and Mexico. The city is also planning to extend the I-69 highway, going north to Montreal and south to Texas via Mexico.

Starting from the city, trucking can reach 152 markets nationwide overnight. Cliff Lynch, executive vice president of CTSI, a Memphis-based supply chain solutions company, said: "It's close to the center of the population. Most of the major markets are within the transport radius that Memphis can deliver the next morning."

Since the city can offer different mode choices, “most truck companies have huge cargo terminals here,” said Rick Rodell, CEO of logistics service provider Cornerstone Systems. “The highway is connected to the north and south. It is ideal. Location." "If you're in the warehousing industry, Memphis is a good place, given that it has many transportation options. Similar to Cornerstone, as a truck agent, can use multimodal transport to both Mexico and Mexico."

Among the Mississippi River, the Memphis Port Authority is the second largest inland port and the fourth largest inland port in the United States, with more than 19 million tons of cargo per year. The location of the city is ideal for barge transport. Muller said: "Memphis' multimodal transport can quickly distribute goods. It includes five railroads: NS, BNSF, UP, CSX, CN. They make the city the third largest railway center in the United States." BNSF Invested $200 million to upgrade the multimodal transport center in Memphis. UP also has 600 acres of facilities. Starting from CN's “multimodal transport portal” location, it can cover 132 metropolitan markets nationwide overnight. Buzz Fly, vice president of Patterson Warehousing, one of the largest 3PLs in Memphis, said: "For Memphis, the best thing is to expand the railroad." Patterson focuses on the imported railroad transportation business, which has 2 million in Memphis. The square foot warehouse area operates over 7,000 containers per year. These containers are shipped directly to Memphis via the West Coast. Due to the expansion of BNSF and CN, many companies have decided to locate their distribution centers in the city. Although many transportation centers have reached the limit of rail transportation, Fly said: "The city continues to expand the railway."

Another major project in Memphis is the Frank Pidegon Industrial Park, which covers an area of ​​3,000 acres. The Nucor steel plant has settled in, and the park is next to the port and the “multimodal transport portal”.

Partner advantage

A place with so many transportation capabilities gives companies a competitive edge. Mallory said: "We are able to provide a full range of warehouse management and operations, transportation management, supply chain, and deliver products from China and Europe to the United States through Memphis.

According to Paul Stewart, CEO of 4E Logistics, local talents are gathered together. “Many logistics professionals are concentrated in the Memphis area. We are able to offer our clients plans to bring together many of their smaller transportation operations and distribute them more economically.”

Another factor that makes Memphis a popular choice is real estate resources. Lynch said: "Memphis has a very aggressive distribution center real estate market. It is cheaper than other parts of the country." CTSI offers a range of transportation management products and services, including transportation management systems, bill of lading auditing and payment services. Consulting services, such as Lynch, are currently helping a company choose a location for a distribution center. He has studied the West Coast, as well as Dallas, Atlanta and other places. “Memphis has the lowest cost per square foot in terms of warehouse space.”

A survey by the CoStar Group on the property market showed that the first quarter of 2007 was only $2.56 per square foot. The city offers a total of 149.1 million square feet and now has 23.2 million usable area.

Belz Enterprises develops as a real estate development and investment company with the development of Memphis. For example, in 2007, Nike purchased a 1 million-square-foot distribution center in Belz. Andy Groveman, executive vice president of Belz, said: "Nike's case proves that Memphis can provide - ample labor, geography, transportation infrastructure." Also in 2007, medical equipment manufacturer Smith & Nephew began to build its largest global The Distribution Network Center also covers 210,000 square feet on the Memphis Logistics and Technology Center (MELTECH) site developed by Belz. Groveman said: "More and more companies are aware of the efficiency of building or expanding facilities in the city. When they evaluate supply chain costs, including warehousing and distribution, they find that Memphis is not only competitive but also eye-catching."

Cushman & Wakefield, a global real estate services company, pointed out several current logistics trends in its White Paper on Trade New Age: including the use of larger ships and fewer ports; the use of ports other than Los Angeles/Long Beach; the re-emergence of railways The mega-distribution center; cross-barrier business. The white paper believes that the four cities in the United States can fully meet the needs of future logistics development - Dallas, Chicago, Atlanta, and of course Memphis.