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for order entry and order fulfillment; implementation of
an integrated supply planning system; and automation of
transportation planning.
Q You serve on the advisory board of the University of Tennessee’s Global Supply Chain Institute. Why do
you take the time out of a very busy schedule to participate?
A First of all, I believe you must have an “external” view to maintain a competitive position. We cannot be
internally focused and sustain a competitive supply chain.
To keep our finger on the pulse of supply chain advance-
ments and best practices, we partner with selected academic
and consulting partners. Organizations like UT’s Global
Supply Chain Institute, The Conference Board, and Gartner
are key partners in helping frame and benchmark our
approaches to procurement and supply chain management.
[As for the] Global Supply Chain Institute … not only
does it provide an external view of supply chain best practices, but it is also training supply chain professionals of
the future. Through our UT partnership, we are improving
our supply chain overall as well as leveraging opportunities
to recruit well-trained and well-prepared professionals.
Serving on the advisory board ensures that Eastman is connected to the future of supply chain management.
Dick Steinke is a man in demand. As the
marine terminals practice leader at Moffatt
& Nichol, a Raleigh, N.C.-based engineering
and consulting firm, he is the firm’s global
point man on port issues. And there have
been many of them, especially in the past
two years.
Before joining Moffatt & Nichol, Steinke
worked at the Port of Long Beach for 22
years, 14 of them as executive director. He
has also chaired the American Association
of Port Authorities (AAPA), the leading American port
trade group. From the environment to congestion to security, there is virtually nothing about the world’s seaport
network that Dick Steinke doesn’t know.
Q Can West Coast ports ever get ahead of the ever-larger volumes moved in and out by megavessels that, in
many cases, are too large for existing infrastructure?
A Major West Coast gateway ports will need to optimize on-dock and near-dock terminal assets through consolidation, automation, and smarter terminal, gate, and
intermodal planning strategies. It will come down to the
ability of marine terminals to deal with the spike of volumes coming off these ships and making “smarter” landside moves. Dwell time is the enemy of marine terminals.
Q What are the specific areas right now where your indi- vidual skills are in greatest demand?
A Our company is working with many clients to bet- ter use their existing assets via our simulation and
automation software tool, “FlexTerm.” It allows those
moving cargo to explore ways of transporting goods more
cost effectively. Taking a good look at ways to assess and
improve existing operations—processes, equipment, and
labor—can wring out significant efficiencies. My job is to
match our capabilities and expertise with the people who
need them.
QAre there different challenges facing West Coast ports than those facing
ports on the East and Gulf coasts?
A Most ports are experiencing some form of congestion—whether it’s on the
waterside, landside in the yards, or at gates,
intermodal rail facilities, or roadways. Larger
ships that cascade from other trade lanes
are putting stresses on existing infrastructure not built for these increased volumes.
Goods-moving assets have to be used differently than they’ve been before. That creates stresses on the
ports, regardless of the coast. But the size of a ship is only
one part of the puzzle. Carriers, BCOs (beneficial cargo
owners), labor, rail, trucking, and warehousing all must
hold up their end of the bargain. Success occurs when you
have a systemwide approach to goods movement. That is
where the challenge lies.
Q Is there an overarching message that the seagoing supply chain should take from the crisis that gripped
the West Coast last year and early this year, as well as the
battle on the East and Gulf coasts between the International
Longshoremen’s Association (ILA) and U.S. Maritime
Alliance (USMX) in 2013?
A I think the message is that the traditional way of pro- cessing cargo has to change. Carrier alliances, larger
ships, and supply/demand factors are driving a “new normal.” Supply chain links are more interdependent on each
other than ever before, and a new era of working together
must be forged. International trade through U.S. ports is a
critical part of our economy. Exports will continue to play
an ever-increasing role as the global middle class continues
to grow. The time is now for a commitment to improve
our goods movement infrastructure, our industry collaboration, and our collective innovation for the betterment
of the system.
Richard D. Steinke
