KC Leads the Nation in Supply Chain Security

KC SmartPort applies tracking technology to rail shipments

KANSAS CITY – May 26, 2006 – Our nation’s answer to securing the supply chain may just come from Kansas City. KC SmartPort is leading the nation in testing a mix of technologies that can track the location and integrity of freight moving across the country.

The non-profit organization just wrapped up its first round of testing on trucks and trailers along the NAFTA corridor and now plans to focus on rail shipments.

“We want to show that the same devices that work on trucks and trailers can also work on rail and other modes,” said Chris Gutierrez, president of KC SmartPort.

KC SmartPort will work with Kansas City Southern and Bartlett Grain to track 25 cars to Monterrey, Mexico this week.

“Kansas City is the only city in the nation that is incorporating different technologies,” said Gutierrez. “This is significant for the many different companies that use the corridor.”

Right now many retailers and transportation carriers track their products from origination to destination however they all use different technologies. A retailer may use RFID while a carrier may use GPS technology.

Gutierrez says KC’s effort is not tied to a specific company or product. “It’s the only one in the country like it,” he says.  

“Any company using the NAFTA or KC to West Coast ports corridors can access the information. This means they can use the technology that best suits their needs.”

With the information received from these tests, Kansas City will create a data fusion center that all the different technologies can feed into. The center will immediately analyze the information and shoot it back out for parties tracking the freight. The center will provide a single source where the shipper, carrier, customer or government can view the freight and its exact location. It will be the first of its kind in the country and pending on its success, other cities will follow suit.  

“We’re very excited to apply the logistics technology that we have specialized in for 30 years.  It not only benefits Kansas City but ultimately the safety and security of our nation,” said Bobby Kaemmer, vice president of Cadre Technologies that was formerly LDS. 

Cadre is working with KC SmartPort and its partners to blend the existing technologies with government technologies and conforming to the latest requirements from Customs and the Department of Homeland Security.

“It’s a new breed of logistics solutions,” said Kaemmer.

In addition to the visibility and security along the supply chain, companies can also expect considerable cost and time savings.

Gutierrez said that with one test shipment, the company averaged 10 to 14 days to get their freight to its customer in Guadalajara. With the technology in place, KC SmartPort and its partner, Priority Logistics, did it in three.

“When the broker has the paper work ahead of time and knows what the freight is and that it’s secure, it speeds the time it takes to cross the border,” said David Burdick, president of Priority Logistics, a third-party logistics company specializing in freight crossing the Mexican and Canadian borders.   

Gutierrez also notes that the tracking of freight also allows companies to more accurately schedule their workers because they know when their shipments will arrive.

Homeland Security experts have recognized Kansas City’s leadership in securing the supply chain, stating that the region is way ahead of efforts elsewhere in the country.

KC SmartPort has received nearly $6 million from the Department of Transportation’s Intelligent Transportation Systems program. Key partners working with KC SmartPort include Cadre Technologies, Priority Logistics, Riverside Transport and Kansas City Southern. Various companies have assisted with providing freight shipments for the tests. Those include Faultless Starch, Fuji Film, Bayer, Western Forums and Bartlett Grain. 

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