March 28, 2005


A Primedia Property

Contents

Small Shipper Group Backs Highway Bill, Opposes Fuel Surcharge

Reversal of Fortune: Oracle Wins Retek War

Early to File, Early to Pay Down Debt

Intermec and Symbol Fight Patent Wars

RFID In The News:
International Paper Introduces RFID-Enabled Forklift


Special Message To Our Readers

Upcoming Events

Buyer's Guide

Classifieds/Job Openings



Sponsored by:


This issue of O&F Weekly is sponsored by Ecometry.

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  • Industry leader with over 420 installations and in business since 1988
  • Processes 100-400,000 orders per day
Call or visit ecometrysystems.com


Small Shipper Group Backs Highway Bill, Opposes Fuel Surcharge
By Rama Ramaswami
The nation's highway infrastructure needs funds, but mandatory fuel surcharges won't work in a deregulated trucking business, says the National Small Shipments Traffic Conference (NASSTRAC). The group supports the new Highway Bill (H.R.3) but not a provision in it that mandates fuel surcharges in contracts between truckload motor carriers, brokers, and freight forwarders and their shipper customers.

The provision mandates a fuel surcharge in truckload (TL) contracts based on costs exceeding a "benchmark price" for diesel of $1.10 per gallon. The surcharge may be collected based on mileage, on a percentage of the rate, "or in any other manner the motor carrier, broker, or freight forwarder elects." The surcharge would end when the cost of diesel fell to $1.15 or less. No provision is available for indexing, and the surcharge could end up being permanent.

NASSTRAC does not oppose voluntary fuel surcharges, and many NASSTRAC members have agreed to such provisions in their contracts. The fuel surcharge provision does not apply to existing TL contracts that provide for surcharges or adjustments, but will apply to all future contracts. NASSTRAC's position is that fuel costs are a cost of doing business and that the method of recovering increases in these costs from shippers is best decided through private negotiations in the marketplace. For more information, contact Brian Everett, executive director of NASSTRAC, at (952) 442-8850, ext. 201, or visit www.nasstrac.org.


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Reversal of Fortune: Oracle Wins Retek War
By Jeff Morris
In the thrilling conclusion to the enterprise software bidding war we reported on last week, Oracle Corp. announced it had reached an agreement to acquire Retek Inc. for $631 million, or $11.25 a share. Apparently, German rival SAP found the price for the maker of retail-management software too expensive. SAP confirmed it would not make a third offer for the company. The month-long takeover battle between the software giants had fueled a 91% rally in Retek shares.

According to MarketWatch, many retailers, loath to make heavy investments in software because of their thin profit margins, traditionally have built their own software applications. But as they look to keep pace with giant retailers like Wal-Mart, retail chains are updating their technology to better manage inventory. The proliferation of inventory management systems based on RFID is generating massive amounts of computer data to be stored and managed, boosting the market for retail software. The market opportunity for retail software could be worth more than $10 billion annually.

Oracle's latest move could hinder SAP, Europe's largest software concern, from gaining a stronger footing in the United States, the world's largest software market. Some analysts said Oracle's triumph could set back SAP's plans in the North American market for retail software by several years. An SAP statement said that the retail sector remains "strategically important," but noted it intends "to continue to exercise financial discipline in merger and acquisition transactions." SAP may look for alternative targets to bolster its retail offering; one broker cited privately-held Evant as a possibility.


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Sponsored by:



This issue of O&F Weekly is sponsored by Manhattan Associates.

Wondering how you can streamline operations, reduce logistics costs and improve customer service -- all at the same time?

Let Manhattan Associates show you how. Sign up for our free Web Seminars on topics like warehousing, transportation and RFID. Or make an appointment make an appointment to talk with us at NCOF, April 3-6.




Early to File, Early to Pay Down Debt
By Jeff Morris
With consumer debt at record levels, many consumers are looking to try to pay down what they owe using tax refunds. A new survey conducted for the National Retail Federation by BIGresearch indicates that half of those who expect a tax refund plan to use the check to pay down debt (49.9%), and that only one in seven consumers (13.7%) plan to wait until April to file their taxes this year, with most of them (64.5%) having filed in January or February. The NRF 2005 Tax Returns Consumer Intentions and Actions Survey also found that more than two-thirds of consumers (67.3%), or 147.7 million people, expect to receive a tax refund this year. (The tax returns estimate reflects the approximate number of people who will be filing taxes; however, it does not take into account joint filings, so it does not estimate the number of tax returns.)

The survey, conducted among 6,366 consumers from February 2-9, also showed that more than a third hope to put some of the money into savings (39.0%). Some consumers also plan to use a portion of their refund for:
-- Everyday expenses (24.1%)
-- Vacation (13.4%)
-- A major purchase (9.1%)
-- Young adults are the most likely to plan to pay down debt, with 59.6% of 18-24 year-olds planning to use a portion of their return to pay down credit cards and other debts, up 8.9 points over last year.
Men and women express similar desires to use their refund to pay down debt and put money into savings; however,
-- One in six men (15.1%) plan to use part of their tax refund to go on vacation
-- Women are almost twice as likely as men to use some of their refund on a major purchase (11.5% vs. 6.5%)

The IRS announced that the average tax return as of March 19 was $2,259, up 6.2% from $2,128 at the same time last year.

For more information on NRF, contact Ellen Tolley or Scott Krugman at (202) 783-7971, tolleye@nrf.com or krugmans@nrf.com, or visit www.nrf.com.


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Intermec and Symbol Fight Patent Wars
By Rama Ramaswami
If you were absorbed by the Oracle-SAP battle for Retek--and are sorry that it ended--here's more technology drama for those rainy afternoons. Automated data capture pioneer Intermec Technologies Corp. last week filed suit against Symbol Technologies, charging the latter with infringement of Intermec intellectual property. The lawsuit alleges that Symbol products infringe six Intermec patents related to wireless, terminal, and software technologies.

The patents cover the following products: a coherent, integrated wireless data capture system capable of distributing data over a network; portable, battery-powered data-processing devices capable of running a multi-tasking operating system; and handheld portable data capture devices with graphical user interfaces (GUI), the ability to accept handwritten information, and the ability to process that information. Intermec is seeking damages and a permanent injunction to prohibit further infringement of its patents.

According to Intermec, earlier in March Symbol had abruptly breached a supply contract with Intermec for laser scan engines. In addition to its patent infringement suit, Intermec has filed responses to the earlier Symbol claim, denying that Symbol had the legal right to end the laser scan engine supply agreement and asserting that Symbol wrongfully terminated that agreement. Fortunately (but unfortunately for us soap-opera buffs), customers won't be affected. Intermec says patent disputes of this type are typically resolved through negotiations between manufacturers, without involving end users. For more information, visit www.intermec.com or call (800) 347-2636.


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Sponsored by:

NCOF
Conference

April 4-6, 2005
Pre-Conference: April 3rd
Exhibits: April 4-5
Gaylord Texan Resort - Grapevine, TX
www.ncof.com

The Conference Exclusively for Direct-to-Customer Operations & Fulfillment Management
Information, Solutions, and Networking You Won't find Anywhere Else

It's not too late to register!

What Are You Waiting For? Register Today ...it's only once-a-year!

Online: ncof.com; FAX: 330-963-0319; Call 330-425-9330 for more information.


Be Sure to Use Priority Code OF3 when you register.

Co-presented by O+F Magazine and The DMA




RFID In The News:
International Paper Introduces RFID-Enabled Forklift

By Rama Ramaswami
RFID just became portable. International Paper's Smart Packaging division has made its RFID-enabled lift truck commercially available. Developed two years ago and deployed in-house at IP's paper mill in Texarkana, TX, the lift truck has since successfully captured five million electronic product code reads. "We now offer the forklift as a product line extension for use with palletized products," says Scott Andersen, technical director for International Paper's Smart Packaging business. "The forklift reads electronic product code pallet tags and tracks every warehouse product movement. Our forklift solution combines the use of RFID to identify the pallet contents with the use of RFID and other proprietary technologies to monitor and report the location and condition of the forklift in real time."

According to International Paper, its latest RFID solution will integrate with any existing system and can be installed on any forklift. It can also potentially serve as a less expensive alternative to warehouse RFID deployments. Customers wanting to improve their inventory accuracy, reduce lost shipments, and increase overall supply chain efficiency can do so with IP's RFID forklifts and eliminate the need for RFID portals at every dock door. The IP forklift has the capability to identify and track product on board the forklift from loading to unloading. With an automated shipping and receiving process, forklift operators can focus on driving the trucks and improving their productivity instead of manually scanning bar codes. For more information, visit www.ipsmartpackaging.com.


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Special Message To Our Readers
This marks the final issue of the O+F Weekly Update. The O+F Advisor will continue to publish on Wednesdays, under the watchful eye of Rama Ramaswami.

A fond farewell to all our loyal readers from Barbara Arnn and Jeff Morris.


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Upcoming Events

Dates: Through May 13, 2005 (see below)
Event: Fridays with Frazelle Logistics Webinar Series, 11:30 am-1:30 pm EST
Location: Online
--Logistics Organization, Design, and Development - April 1
--Global Logistics - April 15
--Logistics Activity Profiling and Data Mining - May 13
In addition, onsite courses are offered at the Georgia Tech Global Learning & Conference Center in Atlanta.
Information: (404) 894-2343; www.tli.gatech.edu
Registration: (404) 385-3500; www.pe.gatech.edu

Dates: Through May 27, 2005 (see below) 8:00am-4:00pm
Event: Advanced Supply Chain Management Certification Professional Development Program
Location: John Cook School of Business, St. Louis University, St. Louis, MO
--Managing Transportation and Warehousing Operations - April 28 & 29
--Lean Principles and Research Project Presentation - May 26 & 27
Information: Claudette Jenkins, (314) 977-3617; jenkinc@slu.edu; cscms.clu.edu

Date: March 29-30, 2005
Event: The Call Center School Fundamentals of Call Center Supervision two-day seminar
Location: Micro-Tek Training Center, Atlanta
and will also be delivered:
June 14-15, Chicago
September 13-14, Las Vegas
October 25-26, Dallas
Information: www.thecallcenterschool.com/coachingdetailedoutline.htm

Date: April 4-6, 2005
Event: Operations & Fulfillment presents National Conference on Operations and Fulfillment/NCOF
Location: Gaylord Texan Resort and Convention Center, Grapevine, TX
Information: www.ncof.com

Date: April 6-10, 2005
Event: RESPONSE Annual User Group Conference & Exhibition
Location: Sheraton Safari, Orlando
Information: www.colinear.com

Date: April 17-21, 2005
Event: Customer Contact 2005: A Frost & Sullivan Executive Summit
Location: Sanibel Harbour Resort & Spa, Florida
Information: (877) 463-7678; executivesummits@frost.com

Date: April 18-21, 2005
Event: MFSA/NAPL Fulfillment Conference
Location: Marriott Key Center, Cleveland, OH
Information: (800) 333-6272; tquinn@MFSAnet.org.

Date: April 21-22, 2005
Event: CSCMP's 2005 European Conference, Coping With Market Dynamics in Global Supply Chains, a European Perspective
Location: Renaissance Amsterdam Hotel, Amsterdam, Netherlands
Information: (630) 574-0985 ext.320; CSCMPseminars@cscmp.org; www.cscmp.org

Date: May 1-5, 2005
Event: Warehousing Education and Research Council's 28th Annual Conference
Location: Adam's Mark Hotel, Dallas
Information: (630) 990-0001; www.werc.org

Date: May 24, 2005
Event: Supply Chain Execution Systems & Technologies Seminar presented by The Supply Chain Execution Systems & Technology Group (SCE) of the Material Handling Industry of America (MHIA)
Location: Adam's Mark Indianapolis Airport, Indianapolis
Information: www.www.mhia.org/sceseminars/indianapolis05.com

Date: May 24-26, 2005
Event: The MIX (Merchandising, Innovation & Xcellence) Summit co-located with Retail Systems 2005
Location: McCormick Place, Chicago
Information: Sarah Abbott, Retail Systems Alert Group, (617) 527-4626 x117; www.retailsystems.com

Date: November 2-4, 2005
Event: ID WORLD International Congress, the annual conference and exhibition on advanced automatic identification technology
Location: Aurelia Convention Centre & Expo, Rome, Italy
Information: www.idworldonline.com


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