“In past years, we may have been reluctant [to use
intermodal], but now we’ve found that their services have
become more reliable for time-sensitive goods,” Jackson
said in comments at the event.
Not every segment of the transportation industry fared
as well, however. Ocean and airfreight carriers did relatively poorly in 2011, the report said. A decline in ocean
freight demand—especially for what turned out to be a
nonexistent peak pre-holiday shipping season—led to a
relatively small gain in containerized volumes, the report
said. Traffic rose by between 1 and 5 percent over 2010
levels, depending on the port surveyed, the report said.
Airfreight revenue fell 2 percent year over year due to
weakness in domestic demand and a decline in overall
international ton-mile traffic.
STABLE INVENTORY-TO-SALES RATIO
Overall inventory carrying costs (another key part of
total logistics cost) rose 7. 6 percent year over year, as an
increase in inventory levels resulted in an 8.2-percent
jump in the costs of insurance, depreciation, taxes, and
obsolescence. Warehousing costs rose by 7. 6 percent, as
greater demand for inventory capacity pushed rents up.
The higher costs and rising demand offset the benefits
of declining interest rates for holding inventories, the
report said. Interest costs in 2011 dropped 31. 4 percent
from already historically low levels. If last year’s interest
levels were replaced with those from 2005, logistics costs
in 2011 would have increased by close to $70 billion, the
report said.
The retail inventory-to-sales ratio (a measure of the
amount of inventory on hand to support monthly sales)
stood at 1. 27 at the end of 2011. This is a marked reduction from the high levels in 2009, when the ratio spiked
to 1. 49 as final sales dropped dramatically during the
recession.
The current ratio underscores retailers’ success in keeping their inventories lean and requiring their suppliers
only to deliver the product they need at that point in
time, according to the report. Wilson said the ratio is likely to remain stable as retailers leverage better processes
and increasingly sophisticated information technology to
more accurately calibrate inventory need with end consumer demand.
In addition, U.S. exports rose 14. 5 percent to $2.1 trillion, paced by record gains in exports of manufactured
goods, the report said. Domestic industrial production of
consumer goods rose 2. 7 percent in 2011, compared with
a 0.8-percent gain in 2010 over prior-year levels. ;
—Mark Solomon
Editor’s note: For a deeper look at the report, check out
DC VELOCITY’S free webinar, available on demand at
www.dcvelocity.com/videocasts/?videocast_id=26.
go figure …
40%
The percentage of Caterpillar’s U.S. import and
export traffic that flows through the Port of
Montreal due to infrastructure-related issues in the
United States.
SOURCE: COMPANY DATA
Motorola Solutions to buy Psion
In 2007, Motorola Inc. made a big splash by spending
$3.9 billion to buy industrial mobile computer company
Symbol Technologies.
Five years later, Motorola Solutions Inc., created out
of the division of the former Motorola into two separate entities, has taken its own bite out of the mobile
computing market by buying U.K.-based Psion for $200
million in cash. The deal was announced in mid-June.
Psion, which is based in London, helped pioneer
ruggedized mobile computing products in the early
1980s when it invented the “personal digital assistant,”
more commonly known as the “PDA.”
The Psion acquisition represents the increasing long-
term consolidation of the industrial mobile computer
field. Psion itself contributed to the trend in 2000 when
it bought wireless product manufacturer Teklogix.
“Psion is a compelling opportunity to strengthen our
industry-leading mobile-computing portfolio with
ruggedized handheld products and vehicle-mount terminals that will deepen our presence in the global markets in which we compete,” said Greg Brown, chairman
and CEO of Motorola Solutions, in a statement.
The acquisition is slated to close in the fourth quarter
of 2012. Once the transaction is complete, Motorola
Solutions plans to combine Psion with its Enterprise
Mobile Computing business, which took root after the
Symbol acquisition.
“Motorola Solutions recognizes that Psion brings a
talented team of engineers with extensive mobile computing design expertise and other professionals with
key industry experience, and we are confident that we
will achieve a seamless integration,” said Tama
Mc Whinney, a Motorola Solutions spokeswoman.
In January 2011, Motorola split into two independent
companies: Motorola Solutions and Motorola Mobility
Inc. Motorola Solutions provides communication products and services for enterprise and government customers. Motorola Mobility makes mobile cellular devices
and cable video management equipment. ;
