DC Velocity - July 2009

JOHN T. (JOCK) MENZIES III HAS SERVED as chairman of the Baltimore-based Terminal Corp. since 1984, when he and his brother Scott purchased the now 116- year-old logistics company from their father and uncle. During his tenure, Terminal has grown tenfold, with current annual sales of over $30 million and almost 2 million square feet of warehouse space in and around the Baltimore/Washington area.

These days, Menzies is becoming better known for his second hat. He is chairman of the American Logistics Aid Network (ALAN), which was formed after Hurricane Katrina in 2005 to help channel resources from members of various professional organizations to approved agencies providing relief during a time of crisis.

network ca
sometimes compete, and they are very pro-
tective of their sponsor relationships. But
they collaborate on major events, and when a
crisis hits, they come together in a practiced
choreography. Much of their success is built
on trusted relationships both within and
between these organizations.

All VOADs have established relationships that help address relief needs. However, a disaster always reveals unmet needs. ALAN

seeks to open a window on those needs and a pable of addressing them. ALAN is neutral in that it seeks only to offer individuals and institutions the opportunity to see what is needed, and [the participants] then choose if it is something they might wish to do.

You spent virtually your entire career in the corporate world. How did you get interested in the non- Q profit sector, and especially this type of work?

A I chaired the Central Maryland Chapter of the Red Cross when Hurricane Isabel came through Maryland in 2005. The Red Cross operations center was located in our building’s vacant office space. Each day, I was asked to help with supply chain-related resources. The items included dry and freezer warehouse space, dry van and reefer trailers, lift trucks, dock plates, warehouse staff, etc. I then contacted some of the supply chain associations to help play a role in humanitarian relief.

After Katrina, everyone was interested in improving disaster response. I spent a week on the Gulf Coast reviewing distribution operations. Herb Johnson, a former supply chain executive with CVS and past CSCMP chair, spent three weeks on the Gulf Coast in what he called a “Quonset hut with 300 of my new best friends.” Herb and I gave a report on the potential for our industry at the CSCMP conference about 45 days after

Katrina.

“A disaster always reveals
unmet needs. The
American Logistics Aid
Network seeks to open a
window on those needs
and a network capable of
addressing them.”

ALAN and its members have said they do not intend to replace any existing contracts or relationships the Q relief groups have in place. Yet these relief groups are known to be somewhat bureaucratic and protective of their relationships and their donor lists. Is there a problem balancing the two?

A The agencies supporting disaster relief, known as VOADs(Voluntary Organizations Active in Disaster), provide the framework and foot soldiers for relief. They also represent established bureaucracies. These groups

mutual needs. ALA

While ALAN has responded to a certain level of need, it has not been tested in a large-scale disaster like Q Katrina or the 2004 Asian tsunami. Do you think ALAN is ready to respond to such a massive catastrophe?

A No. And that answer applies to ALAN and any group or institution. Preparedness and response is a pyramid. The first level of responsibility is individual so far as meeting one’s own needs for the likely 72 hours it will take for effective mass relief to begin. After that, there are institutional responsibilities—corporate, local government,

state government, and VOAD responsibilities taken on by charter or mission. In the United States, FEMA and other federal government agencies step in only if they are requested or if state resources are overwhelmed.

Even with a broad and functioning network there will be gaps. [The consulting firm] Booz & Co. describes a “mega-community” with entities coming together across sectors and organizations to address

N is a gateway for VOAD needs that can

align with a group having the potential to help address those needs. The portal technology is scalable, so in that area we are “ready.” But it must be supported by a human network that examines and thoughtfully considers posted needs. That effort continues. However, a foundation of 13 associations with the opportunity to touch perhaps 10,000 businesses and 50,000 people is a great place to start.

What are the challenges supply chain managers face in gearing up when disaster strikes? What are the Q areas the industry needs to work on in order to be better prepared?