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Many businesses share common management concerns including potential supply chain disruptions. These common supply chain threats include extreme weather like hurricanes or tornadoes, or natural disasters like earthquakes and floods. Other kinds of disruptions like supplier breaks, labor issues and pricing risks, are perhaps less dramatic, but hold the same potential for damage. For every business, the type and ultimate impact of supply chain disruptions will vary. There are several threats to a business"s supply chain, especially if they rely on transportation. Supplier Breaks Supplier Breaks Any manager waiting for a truckload of raw materials originating in a hurricane zone along the Gulf knows that unforeseen disruptions are costly and can potentially put their business at risk. Supplier breaks can arise for a variety of reasons. Climate change and environmental damage continue to cause supplier breaks because they can lead to swings in the cost of commodities and other materials prices, which can affect your bottom line. For example, changes in climate led to a reduction in grain crops in Eastern Europe, leaving many food manufacturers forced to increase prices to cover the drop in supply and subsequent increase in price. Unanticipated events like explosions in warehouses, business failures, or new regulations can end in supplier breaks too. Labour Issues Labour Issues Within the United States, many businesses report that labour problems continue to be a considerable supply chain disruption. Labor disputes in particular, like prolonged strikes, or wage hikes that can translate into increased costs of supplies and both can affect the supply chain and ultimately your business’s bottom line. Within emerging markets countries, their labor problems can also affect the supply chain when suppliers must address, for example, human rights violations, labor law violations with child labor and unsafe working conditions. Those costs are passed on with the price of the products and ultimately to your business. Pricing Risks Pricing Risks A third major risk area concerns prices. Price volatility would head the list of supply chain disruption concerns for many companies. Price risks include economic highs and lows that could threaten your business. Of course, all businesses with global supply chains are especially vulnerable to a rise in transportation prices stemming from volatile oil and gas prices. Emerging markets countries, like China, pose potential supply chain disruptions because first, if they are your business competition, they can produce the same goods and services for significantly lower input costs for wages as well as materials. Emerging market countries can oftentimes take advantage of lower costs because of weaker regulatory compliance, like with with costly compliance procedures such as pollution controls. Further, the risk posed from emerging market countries is unstable because it includes political risks. As companies move their operations around Southeast Asian countries, for example, additional problems like inflation can cause political instability that will further threaten supply chains. A second pricing risk arises because more companies rely on at least part of their materials from international locations, especially emerging markets. Emerging markets prices also fluctuate countries can affect your business because as suppliers in your supply chain, they often fluctuations in their product and transportation costs. Supply chain disruptions can arise for diverse reasons, from natural disasters to labor disputes. Every business must be aware of potential disruptions so that they are managed to minimize their impact.

Choosing supply chain technology is the most important decision a logistics manager makes in his or her career. Why? Simply because the right software solution can propel a company forward, regardless of how bad the economy is, while the wrong one may bury the business for good. Unfortunately, selecting the best supply chain management (SCM) system can be difficult. Selecting a SCM System Selecting a SCM System Never has so much technology been developed to help organizations improve supply chain performance. Yet, the performance of most supply chains has never been worse. Due to poor coordination and planning, dysfunctional industry practices, and high costs resulting from adversarial relations among partners, most supply chain organizations generate low profit margins, surviving, not thriving. To help you choose the right SCM system for your company, the rest of this post delineates the steps you should follow in the selection process. Assess Your Needs Assess Your Needs When choosing supply chain technology, it’s imperative to understand your organization"s needs. Although most SCM systems deliver a complex set of modules, allowing companies to manage different business areas, ranging from financials, manufacturing, inventory, transportation, marketing, and sales to human resources and customer management, not all solutions are the same. What can you do to choose a solution that best suits your organization? Instead of developing a time-consuming list of features your organization may need, you should create SCM narratives by verifying how your employees perform their daily tasks. This approach will provide a lot more context for the features you need in order to achieve specific short- and long-term objectives regarding productivity, revenue, cost, and customer service. Understand the Impact of Technology Understand the Impact of Technology Implementing a SCM system into your organization will have a significant impact on different areas, affecting business growth. Will the solution deliver powerful yet user-friendly functionality? Is it scalable and flexible enough to support horizontal and vertical growth? Can it help you streamline processes, improve productivity, increase efficiency, and reduce costs to boost revenue and profit? Although your organization will be affected by competition, trends in the industry, and volatility of the global market, asking yourself all these questions is imperative to find a solution that delivers exceptional agility so that you can offer your customers unparalleled service. Read Unbiased Reviews Read Unbiased Reviews Most vendors will provide you with comprehensive information about the supply chain technology they sell only if you know what questions to ask. If you know very little about SCM systems, the best thing you can do is to read reviews and case studies published by unbiased sources. Some topics to research include the capabilities, benefits, and drawbacks of the SCM system you plan to get; vendor costs for data migration, customization, training, and support; software licensing options and hardware requirements; and the reasons why SCM implementation fails. When searching for the right supply chain technology, a few additional factors you should consider include: Visibility – Getting in-depth insight into the business operations not only allows you to control different processes, but also gives you the confidence that the best decisions are made at the most opportune moment. Collaboration – Opting for a SCM solution that encourages collaboration enable employees to work in a pleasant yet productive environment. Flexibility – A SCM system should support feature selection, module development, and policy and formulas modifications. Scalability – To facilitate growth, a SCM solution should provide a reliable scalable infrastructure, functioning both on premise and in the cloud. It’s true that finding a suitable supply chain technology for your company takes a lot of time and hard work. However, it’s also true that getting the right SCM solution can bring extraordinary benefits.

For businesses that transport their products within North America and carriers, protecting their bottom line from volatile fuel prices is an ongoing concern. One way to garner some protection from a fluctuating fuel price is the fuel surcharge. What is Fuel Surcharge? What is Fuel Surcharge? The fuel surcharge is the total cost for fuel usage. It is a contract between the shipper and another party that sets a standard rate for the fuel and how much will be paid above the base rate, and what fuel price triggers the surcharge, or no surcharge at all. How is it Calculated? How is it Calculated? There is no regulatory body governing the calculations for a fuel surcharge. The surcharge started in the 1970s in response to the OPEC fuel price spikes. The US government wanted to protect the transportation industry from fuel price volatility, and remain profitable, so the fuel charge system was developed. In Canada many shippers rely on the Freight Carriers Association of Canada (FCA), which provides the industry surcharges for less than truckload (LTL) and truckload (TL) estimates. The surcharge is set as a percentage: 8.8% for LTL, and 20.7% for TL. Many Canadian shippers use the FCA percentages to index their own surcharge, which matches an increase in the price to the surcharge to each increase in fuel prices over the baseline price. They use three variables for the fuel surcharge calculation: the baseline fuel price, the current price for fuel, and fuel costs as a share of operating costs. Fuel surcharge contracts all use a base fuel price. The base fuel price for diesel fuel will be set at price per gallon in the United States, while in Canada, the price will be per litre. The base fuel price is the fuel price used when determining cost of operation.The second part of fuel surcharges is the base for the fuel mileage. Like the base fuel price, the base fuel mileage is an agreed upon amount that estimates the mile miles per gallon that the carrier will achieve. Agreement on how to determine the current fuel price that leads to the surcharge is the third part of fuel surcharges. Both parties must agree ahead of time what prices will be used, and at what interval those prices are taken. The best source for average diesel fuel prices are government’s weekly fuel price calculations based on national averages. In Canada and the United States, government agencies provide the average cost for diesel across the country. Every Monday, Canada’s National Traffic Services revises and updates the Fuel Surcharge (FSC). In the United States, every week the US National Average On-Highway Diesel Fuel Prices is released by the Department of Energy. Fuel surcharges are not the only cost in a freight rate, but they are significant especially since they are based on fuel prices that will likely fluctuate. As long as fuel prices do remain volatile, fuel surcharges are likely to continue.

The supply chain is threatened with insecurity from all directions. Theft, terrorism, and cyber crime are just a few examples of threats faced by goods on transit. Fortunately, there are several simple yet effective ways through which the security of the supply chain can be improved. Here are six practices that you should consider if you’re resolute about enhancing your supply chain security. 1. Applying a structured approach 1. Applying a structured approach The first step in averting any risk is usually to stay safe: do not expose yourself to the problem. Start by forming a diverse team tasked primarily with managing supply chain risks at the organization. Then you can have all departments within the organization assessing and outlining their specific concerns which are then planned for by this management team. Every department has its own special needs and giving them the opportunity to express their concerns is the best way of identifying and tackling all risks within the entire organization. 2. Knowing other participants in your supply chain 2. Knowing other participants in your supply chain This starts with identifying the right partners. Conduct a thorough research before accepting to work with anyone. Can you trust them? Sometimes the pressure to fill a vacancy can put the organization at risk because you may end up with a body and not a fitting person. Whether you’re finding a 3PL partner or hiring a new employee, you must be very thorough with your screening. For suppliers and vendors, you need to know where they are sourcing from, who supplies them, and how close they monitor your shipment. 3. Single source the supply chain management needs 3. Single source the supply chain management needs Working with several partners in the supply chain is almost inevitable. But you still need to find a single body that helps you monitor all these partners. This eliminates chances of confusion. Even for smaller organizations, the supply chain will always be complex making it very difficult to keep a close eye on every process. You can either have an in-house logistics department or a third party logistics provider doing this monitoring for you. 4. Be precise with every process 4. Be precise with every process Start by being accurate with measurements, weights, and counting. Then share this information throughout the supply chain. If everyone knows about it, they will support you in case you lose an item in the shipping process and are seeking compensation from your insurer. 5. Networking 5. Networking Networking means working with a large group of professionals. A major advantage of this is that any meaningful news will never escape you. Yes, you also need social media, TV, newspapers, and magazines but professional networks will usually deliver the news very much earlier. Professional networking will also help you find the right partners whenever you need to hire. You can always ask fellow networkers to recommend candidates from whom you can then select the best. 6. Join bodies and organizations that are concerned with supply chain security 6. Join bodies and organizations that are concerned with supply chain security There are several such bodies both within and outside Canada. The best example and probably the most popular is Partners in Protection (PIP) which is a Canada Border Services Agency (CBSA). PIP enlists the cooperation of local private industries to enhance trade chain and border security, and to tackle organized crime and terrorism. If you trade across the U.S./Canada border, you can also register with C-TPAT. Summary Summary Security ultimately comes down to vigilance. Your eyes and ears must always be out there and you must be willing to adjust accordingly.

Although there are many industries that can benefit from transportation management, one industry where it is critical is the food and dairy industry. Whether a farm, packager, or seller the process of bringing food and milk to market is a complex endeavor with numerous factors to take into consideration on a daily basis. With so many moving parts, attempting movement and transportation without sound logistics planning in place can be a disaster waiting to happen. There are few industries that are as time-sensitive as food and dairy production and distribution. You can have thousands of tons of perishable material moving nationwide at any given moment. Some runs can be hundreds or even thousands of miles between producer and consumer. Professional transportation management is the only way to keep the entire enterprise cost effective and therefore profitable. One solution to the transportation management dilemma is engaging the services of a third party logistics company to provide comprehensive transportation management services. There are four big ways that transportation management services can help your food or dairy business be more efficient: Load Consolidation Load Consolidation Fuel has never been more expensive, and wasting a run on a half-full load represents lost dollars from your bottom line. Load consolidation services ensure that every transport is optimized with a load plan that utilizes available floor space to its fullest extent. Load consolidation can be a complicated endeavor with concerns ranging from temperature to load breakdown order, but it is a service that is indispensable to your supply chain. Cold Chain Management Cold Chain Management One of the largest expenses that you will absorb in the food or dairy industry is your cold chain. Simply speaking, you can't do without it. Extending the shelf life of your products with cold transport not only increases your profits but is essential to customer satisfaction with your products. Transportation management of your cold chain is crucial if you are going to maintain an unbroken chain of refrigeration between the farm to the dinner table. Quality Control Quality Control You have enough to worry about without having to take time away from your numerous duties to provide QC for every transport. A third party transportation management service can take this burden off your shoulders. Quality control ranges from the integrity of the product to adherence to proper procedures and transportation regulations. Seasonal Issues Seasonal Issues Transport of products in Autumn is entirely different from managing transportation in the spring, and winter weather issues can bring even the most efficient supply chain to its knees without proper planning. A third party transportation management company will have nothing on its plate other than making sure that seasonal issue will not be a headache that you need to worry about. By handling everything from seasonal demand fluctuation to route management for winter runs they can take this off your desk and let you handle other aspects of your business. A lot can go wrong in the transportation of food and dairy products. Spoilage or damage of your products can be a huge concern and be more costly than you can afford. While it is true that you cannot plan for every contingency, having a professional transportation company can dramatically decrease the chances of encountering a supply chain issue that you are not prepared for. Having a dedicated service to account for all of these problems and putting contingencies in place to deal with them can be more valuable to your business than you can imagine. Take a closer look at the merits of third party transportation management services versus the modest costs involved and make the decision for yourself.

Running any business with a supply chain requires analyzing each component to make sure the company is running as efficiently as possible. Whether your business is in home improvement, hi-tech, retail or any other industry that involves costs, you need to reduce waste and maximize productivity. Supply chain analysis is the study of vendors, manufacturing materials, value, functions, costs, processes and forecasts to make sure your company is as profitable as possible.  Eliminating Weak Links Eliminating Weak Links A diagram that connects the components of your operation from product creation to the consumer is an excellent way to understand supply chain analysis. If you run a trucking company, for example, the most obvious component is the cost of transporation. This cost includes truck drivers, fuel, lodging, insurance and maintenance. By analyzing this supply chain you can make determinations about cost efficiency. Supply chain analysis may lead to the conclusion of investing in trucks with better gas mileage. If the lodging costs are too expensive it may inspire you to craft a partnership with a hotel to get cheaper rates since you will bring them steady business. When you see the big picture as a series of links it gives you more insight on managing costs than if you view it as just one big operation that either produces a profit or loss. As the old saying goes, you are only as strong as your weakest link. By strengthening all your links using supply chain analysis you ultimately improve your entire company. Value Analysis  Value Analysis  Supply chain analysis isn"t just looking at costs when it comes to determining value. It can also involve looking at functions. Comparing two different software programs, for example, can be an effective way to select the most appropriate program for your business. An expensive program may be favorable over a cheaper program if it provides useful functionality that improves the quality and flow of your operation. This can mean better savings and productivity over the long term, which means better value. Sequential or Concurrent Processes  Sequential or Concurrent Processes  Some supply chains depend on a specific sequence of events whereas others can involve multiple events happening at once. In the hotel business, for example, a reservation must be made first except in the cases of walk in guests. Once the reservation is made other components in the supply chain analysis can be sold to the customer such as movies, food delivery and business services. These services might involve other vendors who in effect become part of the supply chain. This scenario is a sequential process. A concurrent process might involve a web design company that offers a package deal for clients that simply turn all design and content ideas over to an all in one company that employs various tech professionals who work together on the same project. One person might handle content development, another handles programming and another focuses on marketing. Each team member might work completely independent of each other at the same time. Let"s say they work on the project for six months and then charge you $10,000, creating shockwaves. Careful planning and supply chain analysis using process mapping can prevent such a disaster from happening. Supply Chain Analysis Forecasting  Supply Chain Analysis Forecasting  One of the strongest arguments for leveraging supply chain analysis is to make more accurate spending forecasts based on historical data. When costs remain stable or fall in seasonal patterns for long periods they become predictable. By analyzing historical data you can decide on alternatives to the components that seem to have unpredictable costs. Reducing volatility and surprises can be key to making better forecasts, which is essential when budgets tighten.

The ratio of world trade to the GDP of the globe as a whole, an index also used to measure openness of economies, increased by 20 percent to just over US$20 trillion by the end of 2011. The sharp rise in global trade over the past two decades is partly due to innovations in logistics as well as changes in policies in trading countries, which has led to a reduction in the cost of delivering goods and services across borders. A report launched by WEF indicates that removing supply chain bottlenecks could significantly enhance global trade. For example, if counties were to improve border management and necessary infrastructure, especially transport systems, to just half the level of Singapore, the global GDP would shoot by 4.7 percent which is about six times what we would get by scrapping all import tariffs. Challenges facing international supply chains Challenges facing international supply chains Basically there are 7 challenges facing companies trading across borders. These are: Sub-optimal sourcing results caused by inadequate data on total cost High overhead costs incurred in managing global sourcing and logistics needs High cost of expediting freight Disconnect between domestic and inbound international transportation operations Highly varying inbound lead-time Reactive logistics management where a proactive approach would be most suitable Lost sales and high inventories as organizations struggle to meet demands of the long supply chain. The biggest challenge actually is the long learning curve necessary to fully understand the rules of global trade. From government regulations to transportation lanes, complex product flows, sourcing and third party relationships, it becomes almost impossible to manage every step of the supply chain effectively. Solutions to these challenges Solutions to these challenges Process automation – if companies can replace slow manual processes with “one touch” flow of activities, they would be taking the first step towards increased efficiency while cutting on costs. Improved visibility – where is the shipment? When is it arriving? Is the expected arrival date different from the planned date? When shipment is visible, you can schedule activities without worry and even plan for tolerances. Managing total delivered costs – this refers to the ability to analyze and even predict total cost of the supply chain right from the source of supply to the point of distribution. This should help when making sourcing and logistics decisions. Complying with regulations – due to increasing security concerns in the supply chain, there are a number of requirements to which you will need to comply, with failure to which you may face fines, delays or penalties. Dynamic routing – instead of static, redundant routes, companies operating across borders must now “rate shop” to come up with efficient combinations of routes, carriers and third parties to reduce costs.  Managing variability – variability of lead time can cause uncertainty, risk and usually require inventory buffering. Reducing a 4 day variability by even 1 or 2 days can save you millions worth of inventory costs and reduce loss of sales by a substantial margin. Integrating planning and execution – global logistics has always suffered because information that decision makers need is stored at multiple points and thus takes a bit of time to access. Having a “single workplace” containing all the information needed throughout both planning and execution can help solve this problem. Summary While it’s true that not every item on the above list will be appropriate for every company, together these solutions provide the right framework for developing a working logistics strategy for companies that trade across borders.

The third party logistics (3PL) industry is expanding as more organizations realize the benefits of outsourcing logistics to specialized companies. To attract more customers, 3PL organizations offer a wide range of services, ranging from transportation to customs clearance. A very important aspect is that certain warehousing and distribution solutions ensure critical operational improvements, resulting in faster return on investment and greater profitability. As a shipper, it’s very important to understand your needs in order to best assess what type of 3PL solutions are appropriate to your current circumstances and future development plans. Most 3PL service providers have combined a variety of warehousing and transportation services that can be further customized according to customers’ needs. Here’s a practical guide to the warehousing and distribution operations 3PL companies are able to complete nowadays. Standard Services Standard Services Warehousing and distribution involves moving large volumes of stock in and out of facilities on a daily basis. To help you manage this task, 3PL service providers propose a series of basic warehousing and distribution services, including picking, packing, labeling, organizing and shipping merchandise. Most 3PL businesses provide general trucking services (TL and LTL), specialized services (refrigerated goods, hazardous materials, etc.), inter-model transportation (rail, ocean, air freight) and time-constrained services (same day, over night, JIT, etc.). Additionally, these companies can track and trace shipment by bill of landing, purchase order number, client reference number and SKUs, allowing you not only to better organize your warehousing and distribution activity, but also to ensure that freight always arrives at the destination as planned. Thanks to the advanced tracking systems 3PL service providers use, you can institute corrective actions when delays occur. Solution Development Solution Development Numerous 3PL companies offer standard services along with industry-specific IT solutions that include all the necessary tools for activity monitoring, strategic planning, supply chain customization, process automation and efficient inventory management for the best business outcomes. Specifically, these systems can help you perform a series of tasks, such as freight consolidation and distribution, cross docking, shipping planning and optimization, traffic and route management, order processing and fulfillment, product return, and even payments and financial audits. The most advanced warehousing and distributionsoftware solutions also provide customs management features, enabling companies to manage more difficult business areas, including customs brokerage and duty drawback. What’s even more noteworthy is the fact that certain IT products can be fine-tuned to synchronize complex supply chain processes, turning them into reliable bridges between 3PL organizations, logistics users and end consumers. Considering all these, logistics software is one of the best solutions you can opt for to increase efficiency. Logistics Management and Consulting Logistics Management and Consulting Besides the aforementioned warehousing and distributionservices, 3PL companies offer consulting services regarding fleet operation, vendor selection, rate negotiation, distribution network design, and facility location analysis and selection. With a dependable 3PL advisor on your side, you can easily find the most efficient logistics solutions that will help you streamline your overall operation and boost profit margins. The warehousing and distribution services provided by most 3PL companies give you exceptional flexibility in adjusting space, labor and transportation according to your needs. Being able to utilize certain resources only when needed allows you not only to operate between industry ups and downs without stress, but also to save a lot of money. From offering efficient shipping fleets and climate-controlled, secure storage facilities to improving warehousing and distribution processes for the purpose of enhancing customer satisfaction and increasing return on investments, 3PL service providers deliver complete, end-to-end logistics solutions that can assist your organization in overcoming challenges and achieving its maximum potential in order to gain unparalleled competitive advantage.

Poor materials logistics costs the construction industry more than $2 billion dollars every year. Too often, logistics in the construction industry revolve around on-site handling which is usually too little to impact on the total cost of completing projects. According to Liker, a famous philosopher, waste is defined as the opposite of value where value is any process that a customer is willing to pay for. Waste is also used in reference to resources that add negligible or no value to the final product. Waste is therefore loss of resources including time, materials, equipment, labor and capital, when these resources are produced by activities that contribute to the final cost but do not add value to the final product. In the construction industry, after the design is agreed upon, most of the value adding usually occurs at the site. Activities that add value are assembly, packaging and finishing. Other activities such as moving, counting, storing, scheduling and sorting can therefore be said to be wasteful. Unfortunately, research blames the supply chain for most of the wastes in the construction industry. One report went as far as saying that wastes in the construction industry are mainly caused by “obsolete, myopic control” of the supply chain. What is materials logistics and how can it help? What is materials logistics and how can it help? Delivering materials to the construction site is one of the most important activities in the entire construction process. It directly affects productivity and therefore needs to be monitored from early days to ensure control of material flow. For example, the time you spend loading material could have been used in more constructive activities. Then you also need to store this material. Does the storage add any value to the production process? No. Material logistics is defined as the art of moving, lodging and delivering troops and equipment. It is an interface between parties and involves planning, co-ordination, organization and control of the flow of construction material for the whole supply chain (from sourcing for raw materials to the finished project). If implemented correctly, material logistics alone can save you at least 5% of the total cost of construction. Much of the savings are usually realized through reduction in material wasted as well as early completion of projects. Benefits also include reduction in absence and an increased satisfaction of craftsmen. There are usually also fewer delays on the site, a stabilized work flow and generally less wastage.  Materials logistics ideas for the construction industry  Materials logistics ideas for the construction industry Every construction company should have a special material logistics expert who should be allowed to plan the logistics from very early in the construction. This will encourage competitiveness and strengthen buyer-supplier relationships. Planning and structuring should be done with focus on enhancing logistics to increase value of work while cutting out wastages.  Effort should also be put in matching the right products and methods with the right people. It has been discovered that utilizing the strengths of every organization in the supply chain, a win-win philosophy and developing a long-term perspective are critical in gaining a competitive advantage. The construction industry, in its quest to adopt logistics at every level of work, must learn and take inspiration from other industries. For example, the extensive success already demonstrated by the automotive industry can be a great source of inspiration. Materials logistics is an approach that will take construction managers out of their comfort zones, but one that promises unrivaled efficiency and cost-effectiveness. It is always worth a try.

The success of your business depends so much on the quality of your retail logistics. Everything, right from sourcing for raw materials to transportation, delivery and installation will influence the success of the business. Where there is a smooth flow of operations, usually as a result of solid retail logistics, it becomes easier to satisfy your customers at relatively lower costs leading to higher returns on investment. Of course, retail logistics is such a critical component of your business so it may be hard to even contemplate outsourcing it. But if you take a moment to think about it, you’ll realize that working with a third party logistics provider may be just what you need to offset your profits. The advantages of using third party logistics mainly result from economies of scale and economies of scope, both of which encourage retailers to increase net profits by reducing costs. Competent 3PL providers boast superior coordination ability which enables them to search for and find reliable sub-contractors and business partners. Normally they also possess the ability to better manage inter-firm flow of goods. Logistics is very technical and time consuming. So by outsourcing, you will save a lot of time which you can invest in other areas of the business. Here are 5 other reasons in retail logistics, why you should seek the services of a 3PL provider: Minimizing basic expenses Minimizing basic expenses By outsourcing, you avoid costly overhead expenditure on items such as insurance, fleet maintenance, cross-docking expenses and fluctuating demand among others. You won’t have to compensate any workers or pay employee wages, nor will you have to worry about maintaining the in-house staff. At the end of the day, you can talk about reduced costs of transportation, installations, delivery and warehousing while reaping the benefits of transparent and predictable pricing. Efficiency of operations Efficiency of operations When you have a 3PL provider, you can hold them completely accountable for dealing with your warehousing, transportation, installations and deliveries as well as after-market support. If you feel they are not delivering up to your standards, you can easily dismiss them and get a new provider. Focus on income generating aspects of the business Focus on income generating aspects of the business Outsourcing also allows you to focus on your products and customers. It may be possible to do the retail logistics on your own but 3PL providers will always do it much better. They are experts at it because it’s what they wake up to every morning. When you finally find the right retail logistics partner, you’ll discover a new lease of life; your customers will be satisfied and the business will thrive because you will be doing what you do best, as the 3PL partner also does what they do best. Opportunity for innovations Opportunity for innovations Two heads are always better than one. When you and your logistics partner work together to achieve a common goal, it becomes much easier to get to the finish line. These are people who possess in-depth knowledge and vast experience in logistics. They can commit resources towards specific objectives in a way that you may not be able to do on your own. Summary- retail logistics Summary- retail logistics There is usually the fear of losing control and accountability of your business as soon as you outsource. You can overcome this by finding that right partner; one who has the interests of your business at heart and goes about their job professionally. By finding this partner, you’ll be taking a major step towards effective management of your retail logistics costs.

The need for freight forwarding in the supply chain results from the complexities that often arise during the transportation of products, especially across borders. If you have goods to transport from point A to point B, a freight forwarder will find the best routes, specific couriers and even identify the most suitable mode of transport depending on your needs. They are knowledgeable and duly experienced at their work so will know how to handle technological, legal, social as well as political issues that may arise over the course of transportation. Basically the freight forwarder handles the following activities: Consolidating and distributing shipment Processing necessary documentation Selecting the most suiting means of transportation Selecting the best routes for transportation Acts as the intermediary in customs processes Assumes control of parcels Arranges for cargo insurance Facilitates payments of parties involved How freight forwards contribute to overall efficiency of the supply chain How freight forwards contribute to overall efficiency of the supply chain Automation of a number of activities Automation of a number of activities Most freight forwards now automate most of their activities which allows operational management to focus on value adding activities such as attending to customers, handling exceptions and working towards timely and accurate invoicing. All these will go towards reducing operational costs which increases profitability. For example, most freight forwarding service providers now deal with cost analysis at shipment level which allows sales persons to determine profit margins early on and make shrewd decisions.  Clients are therefore able to maximize on shipment earnings. Since the processes are also less laborious, you can expect to grow the business at a much reduced cost. Quality customer service Quality customer service Since working with customers is actually part of their work, most freight forwarders have high quality customer service programs promising timely, reliable and accurate delivery of services. You want to be assured of safe delivery of your shipment and that is exactly what these forwarders strive to do. High end providers now offer single-view of every shipment which not only improves customer satisfaction but also enables better risk management and personalization of services. Cutting on costs Cutting on costs Shipment can be costly. What forwarders do is to cut out unnecessary processes or activities that add little to no value to the transportation process. They do this by streamlining processes and doing away with mundane, repetitive processes to maximize profit margins. For example, many forwards now inherit costing from client’s quotations leading to greater accuracy. Additionally, these forwarders do leverage on best trade practices and further maximize on productivity by obtaining a highly efficient workforce. Improved risk management Improved risk management The volatility of the logistics market, new regulatory guidelines and ever-changing client needs make it important for forwarding agents and customers in general to share concerns over risks in order to avoid being penalized or being put out of business. For instance, submitting inaccurate data can usually result in serious penalties. Great freight forwarders provide single points of data entry which makes it possible for information to smoothly flow throughout the supply chain without need for re-entry. Forwarders can also assess the risk exposure of each shipment and make necessary security arrangements in time. Summary- freight forwarding Summary- freight forwarding Freight forwarding has always fostered good relationships and collaboration between exporters, importers, carriers, agents, the forwarders themselves and customers. This is achieved through logistics community networks and exchange of information anytime, anywhere. When all the stakeholders are on the same page, you can only expect work to proceed faster and with great efficiency.

Within many companies, managers often find themselves overwhelmed with various areas of their business to manage all at once. From employees, finances, marketing strategies, contracts, customer expectations and more, often times inventory and supply chain management gets pushed aside and left at the bottom of the list. As a result, inefficiencies are left unfixed, and supply chain issues and logistics management is simply not tended to in the way it should be. After a period of time, business owners and managers realize their need for logistics assistance. But typically, businesses are unsure of what exactly third party logistics management really is, what it entails, and how it can benefit the company’s bottom line. Throughout this blog post we will cover these common questions, and provide businesses with a better understanding of the overall benefits associated with third party logistics management. General Third Party Logistics Management Services General Third Party Logistics Management Services Generally, a third party logistics management company will take care of coordinating the shipment of goods from point A to point B. This could entail shipping products from the manufacturer to retailers, or even transporting various materials to production facilities for development. Essentially, a third party logistics management company will facilitate the development and delivery of your product from the very beginning stages of product development, all the way to moment your goods reach the market. Our third party logistics management services can do this by using various modes of transportation to transport all your goods, depending on budget, time constraints and overall efficiency. Generally, these forms of transportation include: Less Than Truck Load (LTL) Truck Load (TL) Rail Service International Air Ocean Freightliners Depending on distance, time constraints and budget, one or many of these transportation methods can be used to facilitate your logistics and supply needs. As well, a third party logistics management service will take care of all warehousing requirements that are unique to each specific client. We can arrange multiple warehousing locations across different regions, and arrange for storage that is specific to your particular goods. Specialty Third Party Logistics Management Services Specialty Third Party Logistics Management Services A third party logistics management service can also manage specialty items that require specific attention, and unique transportation and storage arrangements. This type of logistics management includes transportation solutions such as: Tankers Flat Bed Trailers Refrigerated and Temperature Sensitive Transportation Dangerous Goods Transportation Expedited Shipments & more! Our specialty warehousing options can facilitate cold storage for produce and perishable food items, medical supplies, chemicals and much more. Regardless of the goods or products that need to be warehoused, we will find the most suiting facility for your specific needs. Overall, a third party logistics management service is beneficial for any business, big or small, due to its specific attention to this critical aspect of your business. And because of the many years of experience and expertise in logistics and supply chain management in general, a professional service can develop and implement a far more effective logistics program than a traditional business manager. At 3PL we work alongside our clients to ensure that the most effective logistics plans are put into place that will optimize production, keep supply and inventory at desired levels, and essentially improve the bottom line through a well-managed logistics program. If you’re a business owner or manager looking to increase your company’s logistics efficiency, contact us or call today at 1-877-759-4287 to find out more about our extensive third party logistics management services!