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DSC Logistics: New Team - New Direction
Des Plaines, Illinois USA
September 19, 2008
By
Richard Armstrong
Until the last year or so, DSC has primarily been
a big box, pallet-in/pallet-out operation with underutilized IT and personnel
strengths. Its revenues had not grown over the last several years and "C" level
turnover has been frequent.
CEO, Ann Drake, had strong ideas about where the
company should be going but struggled with chief operating officers who couldn't
get on the same page. In turn, those same COOs seemed unable to get real
teamwork spread across the organization.
Within the last two years, a major change has
occurred. The DSC execs I met with recently, act like a team. They work hard
together, plan well together, seem to enjoy what they are doing, and like each
other's company. The key seems to come from Drake herself, who now operates
day-to-day as the CEO. She is a strong person who is much closer to the
operation than she used to be. Her second in command for operations is an
affable, knowledgeable "coach" named Michael Weinstock. Weinstock came to the
Des Plaines headquarters from DSC's East Coast operations. The VPs reporting to
him are all experienced, about 40 years old, and have Master's degrees. There
are eight key reports to Weinstock including six regional VPs, a VP of
transportation and a VP in charge of measuring and improving operations (Supply
Chain Excellence). Relationships are flexible within this group and cooperation
is strong.
Staff VPs report directly to Drake. These include
a bright, new CIO, Greg Goluska and the VP - Customer Care (Sales and Customer
Services), Scott Morgan. Morgan, Goluska, Weinstock and the VP - Supply Chain
Excellence, Ken Heller, are not only very good at their specializations but are
major "think out of the box" contributors.
Supporting Morgan is a group of six major account
owners. Not surprisingly, they are all Master degreed, 30-somethings who are
aggressive and customer oriented. They carry the "partnership" building theme to
traditional customers like Kimberly-Clark, Kellogg's and Philip Morris as well
as to a new style of customers Tree of Life, Yamaha and Cardinal Health.
The team members are tuned into looking for
broader opportunities with new and existing customers. For example, DSC now
looks regularly for dedicated store delivery and transportation network
management opportunities. For Tree of Life, it runs cross-dock operations on
each coast managing the North American transportation network in the process.
For Yamaha, DSC manages supply chains for musical instruments and consumer
electronics. DSC now operates one distribution center for Cardinal Healthcare on
the West Coast. Cardinal has 51 others. Expansion prospects in this new vertical
for DSC are large.
The IT core for DSC consists of i2, RedPrairie and
a proprietary warehouse management system. There are 46 people in IT. In
Heller's continuous improvement program, there are 19 people of which seven are
industrial engineers. DSC has more intellectual capital than companies which are
much larger.
That intellectual capital is contributing heavily
to DSC's renewed growth. In addition, Drake's team efforts involving more
value-added services and transportation should steadily improve profitability.
It looks to us like DSC, under Ann Drake's leadership, will be a strong 3PL
competitor going forward.
...3PL, Logistics, Warehouse
Management, Transportation Management, DSC, Ann Drake, Supply Chain Excellence,
Master Degree, Transportation Network, North American, Kimberly-Clark,
Kellogg's, Philip Morris, Tree of Life, Yamaha, Cardinal Healthcare, i2,
RedPrairie, WMS, Information Technology, West Coast, Des Plaines, Illinois, 3PL,
Logistics, Warehouse Management, Transportation Management, DSC, Ann Drake,
Supply Chain Excellence, Master Degree, Transportation Network, North American,
Kimberly-Clark, Kellogg's, Philip Morris, Tree of Life, Yamaha, Cardinal
Healthcare, i2, RedPrairie, WMS, Information Technology, West Coast, Des
Plaines, Illinois, 3PL, Logistics, Warehouse Management, Transportation
Management, DSC, Ann Drake, Supply Chain Excellence, Master Degree,
Transportation Network, North American, Kimberly-Clark, Kellogg's, Philip
Morris, Tree of Life, Yamaha, Cardinal Healthcare, i2, RedPrairie, WMS,
Information Technology, West Coast, Des Plaines, Illinois, 3PL, Logistics,
Warehouse Management, Transportation Management, DSC, Ann Drake, Supply Chain
Excellence, Master Degree, Transportation Network, North American,
Kimberly-Clark, Kellogg's, Philip Morris, Tree of Life, Yamaha, Cardinal
Healthcare, i2, RedPrairie, WMS, Information Technology, West Coast, Des
Plaines, Illinois, 3PL, Logistics, Warehouse Management, Transportation
Management, DSC, Ann Drake, Supply Chain Excellence, Master Degree,
Transportation Network, North American, Kimberly-Clark, Kellogg's, Philip
Morris, Tree of Life, Yamaha, Cardinal Healthcare, i2, RedPrairie, WMS,
Information Technology, West Coast, Des Plaines, Illinois, 3PL, Logistics,
Warehouse Management, Transportation Management, DSC, Ann Drake, Supply Chain
Excellence, Master Degree, Transportation Network, North American,
Kimberly-Clark, Kellogg's, Philip Morris, Tree of Life, Yamaha, Cardinal
Healthcare, i2, RedPrairie, WMS, Information Technology, West Coast, Des
Plaines, Illinois, 3PL, Logistics, Warehouse Management, Transportation
Management, DSC, Ann Drake, Supply Chain Excellence, Master Degree,
Transportation Network, North American, Kimberly-Clark, Kellogg's, Philip
Morris, Tree of Life, Yamaha, Cardinal Healthcare, i2, RedPrairie, WMS,
Information Technology, West Coast, Des Plaines, Illinois, 3PL, Logistics,
Warehouse Management, Transportation Management, DSC, Ann Drake, Supply Chain
Excellence, Master Degree, Transportation Network, North American,
Kimberly-Clark, Kellogg's, Philip Morris, Tree of Life, Yamaha, Cardinal
Healthcare, i2, RedPrairie, WMS, Information Technology, West Coast, Des
Plaines, Illinois, 3PL, Logistics, Warehouse Management, Transportation
Management, DSC, Ann Drake, Supply Chain Excellence, Master Degree,
Transportation Network, North American, Kimberly-Clark, Kellogg's, Philip
Morris, Tree of Life, Yamaha, Cardinal Healthcare, i2, RedPrairie, WMS,
Information Technology, West Coast, Des Plaines, Illinois, 3PL, Logistics,
Warehouse Management, Transportation Management, DSC, Ann Drake, Supply Chain
Excellence, Master Degree, Transportation Network, North American,
Kimberly-Clark, Kellogg's, Philip Morris, Tree of Life, Yamaha, Cardinal
Healthcare, i2, RedPrairie, WMS, Information Technology, West Coast, Des
Plaines, Illinois, 3PL, Logistics, Warehouse Management, Transportation
Management, DSC, Ann Drake, Supply Chain Excellence, Master Degree,
Transportation Network, North American, Kimberly-Clark, Kellogg's, Philip
Morris, Tree of Life, Yamaha, Cardinal Healthcare, i2, RedPrairie, WMS,
Information Technology, West Coast, Des Plaines, Illinois, 3PL, Logistics,
Warehouse Management, Transportation Management, DSC, Ann Drake, Supply Chain
Excellence, Master Degree, Transportation Network, North American,
Kimberly-Clark, Kellogg's, Philip Morris, Tree of Life, Yamaha, Cardinal
Healthcare, i2, RedPrairie, WMS, Information Technology, West Coast, Des
Plaines, Illinois, 3PL, Logistics, Warehouse Management, Transportation
Management, DSC, Ann Drake, Supply Chain Excellence, Master Degree,
Transportation Network, North American, Kimberly-Clark, Kellogg's, Philip
Morris, Tree of Life, Yamaha, Cardinal Healthcare, i2, RedPrairie, WMS,
Information Technology, West Coast, Des Plaines, Illinois, 3PL, Logistics,
Warehouse Management, Transportation Management, DSC, Ann Drake, Supply Chain
Excellence, Master Degree, Transportation Network, North American,
Kimberly-Clark, Kellogg's, Philip Morris, Tree of Life, Yamaha, Cardinal
Healthcare, i2, RedPrairie, WMS, Information Technology, West Coast, Des
Plaines, Illinois, 3PL, Logistics, Warehouse Management, Transportation
Management, DSC, Ann Drake, Supply Chain Excellence, Master Degree,
Transportation Network, North American, Kimberly-Clark, Kellogg's, Philip
Morris, Tree of Life, Yamaha, Cardinal Healthcare, i2, RedPrairie, WMS,
Information Technology, West Coast, Des Plaines, Illinois...
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