As the fulfillment industry expands, companies must recognize that there is no one-size-fits-all approach for order fulfillment. Although every client has different needs, the steps to begin business with a fulfillment provider are relatively the same. Not all steps are needed, but it is encouraged that you review as many things as you can before choosing what fulfillment provider to work with. Follow the steps below to establish an appropriate fulfillment service:
1. Assess Your Needs
Before you request a proposal, it’s best to understand exactly what your needs are. What do you hope to achieve by outsourcing your order fulfillment? Do you want a provider that is close to your location, close to your vendors, or close to your clients? Do you have a requirement of speed or accuracy? Do you need customer service? How hands on do you want to be? Do you need a company that can provide reporting capabilities? Will your shopping cart transmit data to a third party? All of these questions will form the basis of any fulfillment providers proposal.
2. Request A Proposal
We strongly suggest that you call several fulfillment providers to request a proposal. It’s important to hear the tone and inflection of the fulfillment companies representative as you lay out your needs and goals. The provider should ask questions such as: how many orders per month, number of items per order, number of SKU’s, amount of warehouse space needed, will there be returns, and several other factors that will impact the proposal. They should be able to make suggestions and discuss your needs in depth. They should also be able to provide a detailed proposal that outlines your specific needs. Once you receive the proposal, make sure to compare it to others that you have received.
3. Software Demo
It is always recommended that you request a walk through of the software that the fulfillment company will provide even if you don’t plan on using it. This software is your visibility into the warehouse and fulfillment process and it’s also a very good indicator of the sophistication level of the fulfillment provider. However, be careful not to be overly impressed with graphs and charts because the software should be a workhorse and not cosmetic in nature.
4. Request A Service Agreement
Prior to making a final decision, it is important to understand the terms and conditions of any contract or service agreement. Questions to ask: Is there a long term commitment? What are the payment terms? Is there a service guarantee and if so is it defined in specifics? What happens if I want to end service?
5. Have Technical Staff Speak
Your technical staff (or whomever is handling the system integration) should speak with the fulfillment companies technical staff to work out data transmission. The fulfillment provider should be able to supply API and integration documents. In addition, you should ask if there are other ways to transmit orders should your shopping cart have a data flow interruption. Methods such as manual entry or batch processing through spreadsheets should be presented as an option should an unforeseen technical problem happens on your side.
6. Sign The Service Agreement
Selecting your fulfillment service provider will require the execution of a service agreement or contract. The fulfillment provider should provide a counter signed agreement.
7. Complete The Integration & Send Inventory
The fulfillment partner should provide files that will need to be completed. This is an important time as setting up your fulfillment program requires a high level of detail. It is important to remember, the more information that you provide the better the program will be and the greater satisfaction you and your clients will have. You should expect to have a conference call with an Implementation Manager. This person is responsible for communicating your specific needs to the warehouse. You will also meet an Account Manager at this time. This will be your day to day contact.
8. Testing
Data transmission and order entry should be tested. You should receive a more detailed walk through of the software and a review of your objectives.
9. Go Live
The day has finally come where you are ready to go live. Inventory has been received and the warehouse is ready to begin fulfillment your orders. You now have a single point of contact.
In order to succeed at fulfillment, knowing the above steps can start you off in the right direction. For any questions or help with fulfillment or setting up fulfillment service, feel free to contact Logistics Plus today and we will be with you every step of the way. It’s important to work with a partner that understands your needs, so look no further than Logistics Plus. Contact us today.
Logistics Plus Celebrates 5th Anniversary of Operations in India
India division now has offices in New Delhi, Bangalore, Chennai, Jalandhar, Mumbai, and Pune.
ERIE, PA (July 24, 2018) – Logistics Plus Inc., a leading worldwide provider of transportation, logistics and supply chain solutions, is proud to celebrate its 5th year of business operating offices in India. Today, the company provides a complete portfolio of freight, cargo, and logistics management solutions to, from and within India.
Ankush Rajurkar, COO for LP India, Jim Berlin, Founder & CEO for Logistics Plus, and Sundreysh Sarup, Managing Director for LP India
Logistics Plus has been doing business in India for nearly two decades, but five years ago, the company’s founder and CEO, Jim Berlin, decided to make additional investments in the region with the creation of Logistics Plus India Pvt. Ltd. (aka LP India). Sundreysh Sarup was selected to lead the new division as its managing director with headquarters in New Delhi. Over the past five years, Sarup has overseen rapid growth and expansion that now includes branch offices in Bangalore, Chennai, Jalandhar, Gurgaon, Mumbai, and Pune.
“Sundreysh has assembled a very competent team for us in India,” said Berlin. “Thanks to his leadership over the past five years, LP India has become an important division for us, and has really established Logistics Plus as a company that views logistics in, out and within India as critical to global supply chains.”
About Logistics Plus Inc. Logistics Plus Inc. provides freight transportation, warehousing, fulfillment, global logistics, and supply chain management solutions through a worldwide network of talented and caring professionals. Founded in Erie, PA by local entrepreneur, Jim Berlin, 21 years ago, Logistics Plus is a fast-growing and award-winning transportation and logistics company. With a strong passion for excellence, its 400+ employees put the “plus” in logistics by doing the big things properly, and the countless little things, that together ensure complete customer satisfaction and success.
The Logistics Plus® network includes offices located in Erie, PA; Little Rock, AR; Los Angeles, CA; Riverside, CA; San Diego, CA; San Francisco, CA; Visalia, CA; Atlanta, GA; Chicago, IL; Detroit, MI; Lexington, NC; Buffalo, NY; New York, NY; Olean, NY; Akron, OH; Cleveland, OH; Charleston, SC; Nashville, TN; Dallas, TX; Fort Worth, TX; Houston, TX; Laredo, TX; Winchester, VA; Madison, WI; Australia; Bahrain; Belgium; Brazil; Canada; China; Colombia; Czech Republic; Egypt; France; Germany; Hong Kong; India; Indonesia; Kazakhstan; Kenya; Libya; Mexico; Netherlands; Poland; Saudi Arabia; Singapore; South Sudan; Taiwan; Turkey; UAE; Uganda; and United Kingdom; with additional agents around the world. For more information, visit www.logisticsplus.com or follow @LogisticsPlus on Twitter.
As a certified Great Place to Work®, we have some of the best employees in the industry. One of those employees is Mike Callan, an international logistics specialist who works from the Logistics Plus Global Headquarters in Erie, PA. For those who don’t know, Mike was also the emcee and a stand-up comic for the First Annual LP Talent Show back in April.
This is the first in a series of new “Employee Spotlight” interviews over the coming weeks and months that will showcase many of our diverse employees from around the world. We hope you enjoy getting to know a little more about us and the “people who power the plus” at Logistics Plus.
PS: Special thank you to Mike Callan for volunteering to help us kick off this new interview series, and to Ryan Markiewicz who helped conduct the first interview and edit the final video!
On July 10th, 2018 the Trump Administration announced a list of tariffs on $200 billion worth of Chinese goods. Before these tariffs may go into effect, they must first undergo a two-month review process. (CNBC)
To view the latest list of proposed tariff increases, click here.
Less than truckload (LTL) shipping involves the transportation of relatively small freight shipments that can weigh anywhere between 150 to 10,000 pounds. LTL carriers collect freight from multiple shippers and consolidate that freight onto trailers before the delivery process begins. LTL shipments can be very confusing, because unlike Full Truck Load (FTL) shipments, LTL shipping rates are calculated from several varying factors. Knowing the factors that impact LTL shipping rates is helpful for creating more realistic rate expectations and increasing long-term savings. Here are the factors:
Weight & Density
Weight and density are the two most basic aspects of how LTL shipping rates are calculated. Typically, freight companies rate shipments at the lowest weight and category, meaning that the more a shipment weighs, the less it costs per hundred pounds. Furthermore, be sure to measure the longest sides of all packaging, including anything that overhangs. To determine the density of your shipment, the total weight of your shipment is divided by the total cubic feet. Logistics Plus offers a free, online freight density calculator to quickly determine the density of any shipment.
Freight Classification
Once density is calculated, you can now determine the proper freight classification. The National Motor Freight Traffic Association (NMFTA) established “freight classes” that are used to classify commodities for rating purposes. Classifications are based on a products density, stow-ability, value, handling and liability. Each commodity is categorized into one of 18 different freight classifications that range from 50 to 500. Generally, the lower the freight class, the more dense the commodity. Conversely, a higher freight classification represents a less dense product that typically takes up more space. As a general rule of thumb, the higher the freight class, the higher the rate will be. You can read more about freight classification on the Logistics Plus website.
Base Rates & Discounts
Every LTL carrier establishes their own base rates upon which they normally offer discounts. Base rates are typically quoted per 100 pounds, but can vary by company or by lane. One thing to make note of is that carriers will change their base rate depending on their need for additional volume and increased costs for lanes where they have a good balance between trucks and freight. It’s difficult to create an accurate comparison of LTL shipping rates just by looking at base prices or discounts because they’re almost always different. A lower discount off a lower base rate can actually be a better deal than a higher discount off a higher base rate. Logistics Plus can offer you a free freight analysis if you want to compare rates.
Minimum Charges
The absolute minimum charges refers to the minimum price a carrier will offer, and they will not go lower no matter the circumstances. In this case, even when discounts are negotiated, the absolute minimum charge still holds true. This minimum charge helps ensure that carriers cover all of their fixed costs for a specific shipment or lane. Understanding your carriers absolute minimum charge is an important factor to research, especially if you’re shipments are small and moving across short distances.
Origin & Destination
A shipment that needs to travel a further distance will tend to have higher rates than a short distance shipment. Shippers should be aware of which carriers serve their intended destination so that they can avoid additional charges or fees. It’s important to choose the correct carrier because if your shipment needs to be transferred to another LTL carrier, costs will rise and the goods will be more susceptible to damages.
Surcharges & Accessorial Fees
Accessorial fees apply when additional services are required to handle your shipment. These fees apply when the typical dock-to-dock pickup and delivery service most LTL carriers provide isn’t enough. Common examples of accessorial services include lift-gates, weekend deliveries, and pickup or delivery at special origins or destinations. Fuel surcharges are also a common accessorial fee that LTL carriers charge. Knowing how these additional fees impact your overall expenses is important when determining who you want to work with as your LTL carrier.
If you feel like you’re over-spending on LTL freight, or if you lack the expertise to negotiate your own rates, please consider working with Logistics Plus. As a top freight brokerage firm, our LTL experts help hundreds of companies save on their LTL shipping every day. Logistics Plus will ensure you get a quick and accurate LTL freight quote for any shipment.
As the fulfillment industry expands, companies must recognize that there is no one-size-fits-all approach for order fulfillment. Although every client has different needs, the steps to begin business with a fulfillment provider are relatively the same. Not all steps are needed, but it is encouraged that you review as many things as you can before choosing what fulfillment provider to work with. Follow the steps below to establish an appropriate fulfillment service:
ERIE, PA (July 24, 2018) – Logistics Plus Inc., a leading worldwide provider of transportation, logistics and supply chain solutions, is proud to celebrate its 5th year of business operating 
Less than truckload (LTL) shipping involves the transportation of relatively small freight shipments that can weigh anywhere between 150 to 10,000 pounds. LTL carriers collect freight from multiple shippers and consolidate that freight onto trailers before the delivery process begins. 
