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Moving goods from one location to another is never free. You will need packing materials, movers (workers), drivers, vehicles (trucks) and possibly storage facilities. The greater the load and the longer the distance, the higher the cost. But weight and distance are not the only two factors that affect transportation costs. There are several other factors that have a significant impact on the cost of transportation. The following are some of the important factors: Packaging: Transporting goods begins with packaging because you can`t just load things into a truck haphazardly and drive away. You need proper packing materials that you may need to buy. Packaging ensures the safety and security of your goods, but it also increases volume and weight. Also, the mode of transportation determines the type of packaging. For example, road transport and air transport have different packaging requirements that can make a considerable difference in the costs of transportation. Mode of Transportation: Selecting the right mode of transportation is of utmost importance when moving goods. You need to consider two things here: transit time (the time it takes to reach the destination) and the costs associated with the chosen mode of transportation. To lower transit time (faster transit), you need to use faster modes of transportation, such as air transport, which has a higher cost. But higher transit time (slower transit) can also increase costs by increasing the inventory carrying costs. Fuel Prices: Fuel prices are volatile and change constantly. In times of crisis and upheaval, such as the threat of war in the old producing countries, the price of a barrel of crude oil can fluctuate by as much as $5 or more on a single day. This can make a significant impact on your transportation costs regardless of the mode of transportation you have chosen. Labour costs: Moving goods require labour and labour costs money. You need a team of trained and experienced people to complete the job - to pack the goods, label and categorize packages, load the packages into the truck, unload the packages from the truck, unpack the packages at the destination, drive the trucks and keep inventory. The larger the quantity of goods to be transported, the higher the costs will be. Inventory Carrying Costs: The goods being transported are the same as goods held in inventory. When transporting goods over long distances, they may have to be stored in a securely-guarded climate-controlled storage facility overnight along the way. Even after being unloaded at the destination, they may have to be held in storage for some time. This can add a significant amount to your cost of transportation. Security: Arranging adequate security is very important when transporting goods over any distance. The higher the value of the goods, the higher the risk of theft and robbery. You may have to hire professional security guards to protect your goods. This can affect your costs significantly. Insurance Costs: The risk of damages, loss and theft can never be ruled out no matter how careful the workers are during loading, unloading and transit. Therefore, it is important to insure the goods. Depending on the type and value of the goods you are transporting, insurance costs can make a significant contribution to your transportation costs.

Businesses today are a part of a highly complex supply chain involving multiple suppliers and vendors located at different places across the world. SubmitWhen a disruption or bottleneck occurs in any part of the chain, it is often impossible to identify the culprit without a complete supply chain analysis. Without identifying the source and cause of the problem, it is not easy to achieve targeted sales and growth. Supply chain analysis is the process of evaluating every stage of a supply chain starting from the time the business acquires raw materials or supplies from its suppliers to the delivery of final products to the customers. The purpose of the analysis is to determine which part of the supply chain can be improved or shortened to deliver the product more quickly and efficiently to the customers. The philosophy behind supply chain analysis is that the more flexible a business can be, the faster its growth rate will be. Supply chain analysis helps businesses identify the suppliers and/or processes that can be bypassed, reduce inventories, schedule events and programs, and improve forecasts. This increases efficiency, reduces costs and minimizes risks. It helps businesses optimize their processes to remove redundancies in the supply chain while helping create new value-added processes. Conducting a supply chain analysis involves the following steps: 1. Mapping the Supply Chain: This involves identifying all the organizations, people, activities, information and resources involved in the supply chain and creating a flowchart to obtain an overview of the chain, the flow of raw materials and product, the position and function of chain actors and the type of interaction between the actors. 2. Developing Economic Accounts Corresponding to Each Actor Involved in the Supply Chain: This involves quantifying the activities of each actor and contribution to the flow of materials both in physical and monetary terms. It helps the analyst assess the importance of the actor in the chain and to point out where the weaknesses lie and how they can be rectified. To start a complete supply chain analysis, you need to collect data pertaining to every actor and every stage of the supply chain. This requires a lot of research and hard work. Most small and midsize businesses rely on manual methods of data collection and the use of spreadsheets, such as Microsoft Excel, for analysis. A faster and easier way to conduct the analysis is to use a software program to automate the process. Such a program can extract information from all the different sources into one console removing the need for tedious and time consuming manual data collection. You can analyze shipping schedules, improve transportation and inventory planning, increase transportation management efficiency and track just-in-time delivery metrics. Some top of the line software programs for supply chain analysis have advanced and useful features like data blending and cross-data source triggers, built-in geocoding, built-in calculation support, connectivity to external web services and support for WMS mapping services. The programs require considerable investment, but the saving on time, efficiency and accuracy amply compensates for that.

Transport of Dangerous Goods: What You Need to Know Before Shipping When moving goods from one location to another, it is crucial to be aware of the legislation governing the transportation of dangerous goods. Dangerous goods are anything that can harm people, property, the environment, and other living organisms. They may be in solid, liquid or a gas state. In Canada, dangerous goods are known as HazMat, short for hazardous. Classes of dangerous goods: Dangerous goods are divided into nine classes on the basis of their chemical characteristics. There are also subcategories under each class. Class 1: Explosives These include explosives with a mass nitrogen hazard, such as dynamite and TNT; explosives with severe projection hazards; explosives with fire, blast or projection hazard (but not a mass explosion hazard); explosives with minor fire or projection hazard (includes ammunition and most consumer fireworks); an insensitive substance with a mass explosion hazard; and extremely sensitive articles. Class 2: Gases These include flammable gases that ignite on contact with an ignition source, such as hydrogen and acetylene; non-flammable and non-poisonous gases such as neon and nitrogen; poisonous gases that can cause injury or death when inhaled, such as fluorine and hydrogen cyanide. Class 3: Flammable liquids These include liquids with an initial boiling point of 35oC or less at an absolute pressure of 101.3 kPa and any flash point (Packing Group I), such as carbon disulphide and diethyl ether; liquids with an initial boiling point of above 35oC at an absolute pressure of 101.3 kPa and a flash point less than 23oC (Packing Group II), such as petrol and acetone; and liquids that do not belong to Packing Groups I and II, such as diesel and kerosene. Class 4: Flammable solids These include solids that ignite easily and combust readily, such as magnesium and nitrocellulose; solids that ignite spontaneously, such as aluminum, white phosphorus and solids that react violently with water or emit a flammable gas when wet, such as sodium and potassium. Class 5: Oxidizing agents These include oxidizing agents such as ammonium nitrate and hydrogen peroxide; and organic peroxides either in solid or liquid form, such as benzoyl peroxides and cumene hydroperoxide. Class 6: Toxic and biohazardous substances: These include toxic substances that can cause injury or death if inhaled, swallowed or absorbed through the skin, such as potassium cyanide and mercuric chloride; and biohazardous and infectious substances, such as virus cultures and pathology specimens. Class 7: Radioactive substances These include radioactive substances that emit ionizing radiation, such as uranium and plutonium. Class 8: Corrosive substances These include corrosive substances that can severely corrode certain metals or can dissolve organic tissues, such as sulphuric acid and hydrochloric acid. Class 9: Miscellaneous These include hazardous substances that do not fall into the previous eight categories, such as asbestos and air-bag inflators. TDG Regulations: In Canada, the transport of dangerous goods is regulated by the Transportation of Dangerous Goods Regulations (TDG). Transportation by road is subject to provincial jurisdiction and the rest (air, sea and railway) are subject to federal government jurisdiction. Full details of the TDG regulations can be found at the website of Transport Canada. Transport requirements: Only a licensed driver who has successfully completed the HazMat training and obtained a permit card can transport dangerous goods. The driver must be in possession of his license and permit card and should present them immediately if requested by an official. The driver must also have written instructions on how to deal with emergency situations in an easily accessible place in his cabin. Warning label requirements: During the transport of dangerous goods, all the packages are required to be placed and labeled in specified ways. All packages and vehicles carrying the packages must have the correct warning signals, which consist of the internationally recognized diamond-shaped signage of the appropriate colour, such as red for flammable and orange for explosive.

Logistics is the chain of processes and events involved in moving a finished product from the manufacturer to the customer. So what is reverse logistics? Reverse logistics is backward logistics. It involves the movement of goods from the customer back to the manufacturer. This usually happens when the product is defective or when the product has been recalled because of some glitch. Reverse logistics consists of the following important processes: Customer Support: This is the first process in reverse logistics and involves providing support by phone, e-mail, online chat and other means. The purpose is to keep the communication line open for customers who may want to repair or return the defective product they have purchased. Receiving the Product: The manufacturer may recall defective products (through its retailers) or the retailer may accept the defective product returned by the customers. The customer may bring back the product personally, send it with someone or send it by mail order. Sometimes, retailers or manufacturers also pick up the product from the customer"s location. Transporting the Product: The recalled or the returned product is sent back to the manufacturer. This may involve a single step (retailer to the manufacturer) or multiple steps (retailer to the dealer, to the distributor to the manufacturer). Depending upon the type and weight of the product and the distance to be moved, the mode of transportation may be land, air or sea. Warehousing the Product: Once the product arrives at the manufacturer"s facility, it is tagged, tracked and stored in a warehouse along with other returned products. A warehouse is a large storage space and is usually equipped with devices for tagging and tracking the stored goods. Sorting the Products: The products are sorted, or triaged (to use the proper term), on the basis of their condition and quality. Products than can be repaired are sent to the appropriate department for repair. Products that cannot be repaired are either sold off at a much lower price as defective products or sold as scrap. Repair: If a returned product has been found to be good for repair, it is repaired and then either sent back to the customer or sent back to be resold to another customer. Sometimes, products are refurbished and sold at high markups, generating profit for the manufacturer. Many manufacturers outsource their reverse logistics to third party logistics providers who specialize in receiving products returned by customers, repairing and refurbishing them and selling them at steep discounts. Third party providers often sell the refurbished product at a higher markup than the original markup, generating a substantial profit. Outsourcing reverse logistics is beneficial because it: Takes the Load Off : The third party logistics provider handles the entire processes of reverse logistics, freeing the manufacturer, retailer and others involved in the supply chain. This lets them concentrate on manufacturing, logistics, marketing and selling of products. Reduces the Risk of Loss : Returned goods are often a source of loss because the risk of obsolescence (the state of being obsolete). Obsolete products have to be either sold at steep discounts or sold as scraps. Manufacturers can reduce the risk of loss by transferring it to third party logistics providers. No Need to Worry about Waste Disposal : A significant portion of goods that have been returned need to be disposed as waste materials. The management of waste is often problematic because of ever tightening regulations. You can let the third party logistics providers worry about it.

When transporting goods from one place to another, it is very important to store them in safe and secure warehouses that are not only guarded twenty-four hours a day, but are also climate controlled to prevent damages to your product. Theft and damages mean delays in delivery, loss of credibility and a financial loss to your company. 3PL Links offers warehousing services in safe and secure warehouses equipped with automated TMS systems that allow the clients to track their shipments online. The coast to coast warehousing and distribution services & solutions provided by 3PL Links throughout North America include the following: Inbound and Outbound Order Processing: We provide inbound and outbound order processing to make your supply chain run smoothly. Our inbound order processing services include determination of demands, advanced shipping notification, delivery monitor, yard management and returns handling. Our outbound order processing services include goods issue postings, delivery processing and distribution, proof of delivery, delivery monitor and value added services. Bar-Coding, Re-Packaging, Labeling and Quality Control: We offer bar-coding, repackaging, labeling and quality control services so that you won`t have to assign your staff to the job or hire new ones. Besides saving you a lot of time and money, these services ensure the safety and security of your goods and expedite the distribution process. Online Inventory Management Capabilities: Our cutting edge online inventory management system allows you to keep track of your raw materials and finished products at all times from the comfort of your home or office. You can also track the progress of your shipment and obtain information such as the temperature inside the warehouse. This gives you a sense of being in control at all times and allows you to confidently make offers, give orders and take orders. Cross-Docking Services: Cross docking is the process of taking a finished product from the manufacturer and delivering it directly to the consumer. This eliminates or reduces the need to handle and store inventory along the way, which reduces the cost of your product. Cross docking shifts the focus from supply chain to demand chain and helps retailers streamline the supply chain. Reverse Logistic Programs: Reverse logistics is the process of planning, implementing and controlling the smooth and efficient flow of raw materials, finished goods and related information from the point of consumption to the point of origin. The purpose is to recapture the value of the used product or carry out a proper disposal. Our reverse logistics programs are efficient and cost effective. Container Stuffing and De-Stuffing Services: We provide stuffing (loading) and de-stuffing (unloading) services so that you won`t have to hire employees to do the job. Your goods are loaded either at your site or freight station, whoever you choose, and unloaded at the warehouse. The stuffing and de-stuffing are handled by experts so that the risk of damages and loss are minimized. Our warehousing services can be customized and tailored for your specific needs, to reduce your costs, improve efficiency, ensure timely delivery and facilitate a smooth distribution process. To that end, we also offer complete door to door services from Toronto throughout North America.

When transactions increase and vendor bills pile up, managing them can be a tedious and time consuming task. Unfortunately, this is a fact of life with many companies. Companies can either spend too much time auditing vendor bills or they do not spend enough time resulting in overpayment and duplicate bills. At the same time, the complexity of purchasing procedures can also lead to financial losses. This is why it is important to have your vendor bills audited The broad areas covered by a vendor audit are vendor viability, management responsibility, system accuracy and data integrity. One of the most common services provided by auditing companies is auditing vendor bills. This can reduce your operational costs in the following ways: Eliminates Overpayment : Overpayment to vendors is quite common and affects your company's profitability. It can be attributed to errors such as miscalculations, neglected rebates, duplicate payments, charges for goods and services not received, tax overpayment and misunderstanding of contract terms. Vendor auditing identifies and eliminates these errors and saves a lot of money your company may be losing every year in overpayment. Frees up Time and Resources: Auditing vendor bills take up a lot of time and resources that a company can use profitably in other areas. If the volume is excessively large, it can hold up the entire organization for several days. By entrusting the task to professionals, you can re-allocate valuable time and resources to other areas that need immediate attention. This increases efficiency and leads to growth and increase in profit margin. Identifies Discount Opportunities: Buried under the volume of bills are often rebates and volume discount opportunities that a company often misses to capitalize on. Without proper auditing, these opportunities are often not found. Many companies lose several opportunities like these every year. Discount and rebates can make significant contributions to a company's profitability. Vendor audits can identify these opportunities and help take advantage of them. Helps Consolidate the Payment Process : Paying vendor bills can take up a lot of time and resources. Auditing ensures that all the bills are in order and that the vendors are in full compliance with the contractual requirements. It also identifies the bills that need to be paid. This helps in consolidating the payment process by issuing a single cheque to an "IN TRUST" account for the disbursement to vendors. Improves Decision Making : There is a huge cache of information in vendor bills, which can only be extracted and given a meaning after a proper audit of the bills. An audit provides you with the management tools and reports that will be invaluable in making the right decision at the right time. The information thus obtained can be very useful in the bid tendering process. Vendor audit services provide your organization with the assurance that all the financial controls are in place, access to financial records are tightly controlled, eliminates double billing, identifies volume discount and rebate opportunities, helps consolidate the payment process, frees up valuable time and resources that can be used elsewhere and, thus, enhances overall profitability of your company. At 3PL Links , we offer vendor audit and payment services that allow you to increase your sales and reduce your operational costs. Contact us today to learn more about or vendor audit services.

A company"s ability to transport merchandise quickly and inexpensively is crucial for the growth of the business. But shipping large consignments of goods can be tedious, time consuming and expensive. It requires considerable administrative and other resources than can drain away your company"s profits. Instead, using the logistics management solutions provided by 3rd party logistics providers can help you save time and money and concentrate on other important areas of your business. Logistics management is a part of supply chain management and involves the planning, implementation and control of the flow and storage of goods and services between the point of origin and the point of consumption. The smoother the supply chain the greater your company"s credibility will be, which translates into increased sales. A fast and smooth supply chain also ensures lower freight costs and reduced risk of damages and loss. Here are 5 ways logistics management solutions provided by 3PL companies can help you grow your business: Frees up Time and Resources: Logistics management is a very time consuming task that can take up significant time and human resources. Using the solutions provided by a third party logistics company frees up time and resources that you can use elsewhere. This eliminates the need to have a large logistics department and to train your staff or hire new staff. Minimizes Risk of Loss and Damages: When moving any large quantity of goods, there is always the risk of loss and damages. Since your 3PL provider has control over the entire supply chain, the risk of damages, loss and theft are minimized. Their containers and storage facilities are built for long distance transportation and are climate-controlled. This minimizes the risk of damages due to natural causes. Integrated Shipping Solution: From pick up to distribution, 3PL companies handls everything in a comprehensive package, saving your company from the hassles of having to manage your own logistics and negotiate with carriers and storage providers, which cannot only be troublesome but also costly. This saves you a lot of time, energy and money, which results in increased efficiency and profitability. Reduces Freight Costs: There are many costs associated with freight, including carrier costs, demurrage, customs and storage fees. These costs can make transporting goods across international borders very expensive. An important part of logistics management solutions is negotiating these costs in order to minimize the burden on client companies (that includes you). They can get discounts and rebates that you usually cannot. As a result, your freight costs will be greatly reduced. Enhances your Credibility: 3PL can have your goods delivered on time and without any damages. Since 3PL has the entire shipping mechanism already in place, the risk of delays, damages and losses are greatly minimized. Thus, the smooth supply of your products will be delivered ensured, which enhances your credibility in the eyes of your customers, which translates into increased sales. Leveraging the buying power of a company like 3PL Links is an excellent way to reduce your transportation costs and streamline your product distribution with our logistics management solutions. Keep your business running successfully with a custom logistics solution – contact us today to get started!