Warehousing and fulfillment is an increasingly critical aspect of business. By managing the flow of goods through the supply chain, you can effectively control costs, limit exposure to over-stocked inventory, manage cash flows and also streamline transportation. For small startup companies looking to establish a presence in a strategic market or large companies looking to seize opportunity in new areas, or any others in between, third-party logistics (3PL) providers give options that allow businesses to scale efficiently.
Does it make sense for your business to outsource? Here are 5 key reasons to outsource warehousing and fulfillment to a 3PL provider.
Flexibility. Utilizing a 3PL warehousing and fulfillment provider allows you the flexibility to set up and scale your distribution model as business demands shift. You can more easily grow into new markets that allow you to service your new customers. By decentralizing distribution, you can offset transportation cost increases due to rising fuel prices or other economic factors. You also have more flexibility with on-hand inventory levels. By not having to justify the cost of filling an entire building, you are able to maintain more appropriate levels of stock and replenish on an as-needed basis. You can also better account for inventory fluctuations due to demand or seasonality.
Consolidation. A 3PL will provide inventory and transportation consolidation benefits. By housing your inventory under the roof of a 3PL warehouse provider, you allow for multiple shipments to be shipped in a more economical manner than might be possible otherwise. In addition, 3PL providers often have deep discounts with many transportation providers to further help reduce costs.
Expertise. Proven processes and industry knowledge are key strategic benefits to utilizing a 3PL provider. A process-driven warehousing provider can be a key strategic partner to a business. The difference between warehousing and distributing your products with correct versus incorrect processes can be the determining factor in whether or not you ultimately serve your customer. It can also determine whether or not you might be able to win the customer in the first place. An experienced 3PL partner is able to pass on value-adding benefits that help reduce your costs, drive up your efficiency and allow you to focus on your core business.
WMS and TMS Solutions. Leveraging a 3PL that has strong technology solutions means you can level the playing field without investing hundreds of thousands of dollars in systems and IT infrastructure. Powerful WMS (warehouse management system) and TMS (transportation management system) capabilities can add huge value to your company. These systems allow for real-time access to detailed inventory information and allow you to forecast upcoming trends. They provide you with instant rate shopping, rate analysis and shipping functionality through a web-based interface. You are even able to leverage these system capabilities across to your customer base directly, giving your company a huge competitive advantage in the market.
Reduced Fixed Costs. Upfront capital expenditures to acquire warehousing space and infrastructure are huge. A building, racking, staff, fork trucks and lifts, WMS/TMS, conveyors, etc., are just some of the initial investments that easily drive costs into the millions and can cripple cash flows. Spreading out to additional locations grows this exponentially. A 3PL can scale its operations to address your fluctuations in demand, and will allow you the ability to easily forecast the landed cost of each of your products. It also allows you to more effectively spread this cost to the actual sale of the product by significantly reducing the upfront capital costs.
A fully integrated 3PL warehousing and fulfillment strategy allows you to utilize an expert to manage this important aspect of your supply chain. A 3PL provider should be able to provide a road map to how you can most effectively build and maintain your inventory. The provider should be rooted in providing flexible solutions that fit your strategy, technology to allow you all levels of information, process development to drive efficiency and cost reduction, and have the fiscal sense to help you maximize your transportation dollar. Ultimately, having a 3PL provider as a strategic business partner can be the best decision a company can make. Logistics Plus is ready to be your partner.
Logistics Plus Helps Deliver Christkindlmarket to Chicagoland
Logistics Plus named as an official partner for the 2016 Christkindlmarket Chicago and Naperville
ERIE, Pa. (October 25, 2016) – Logistics Plus Inc., a leading worldwide provider of transportation, logistics and supply chain solutions, is proud to announce that – in addition to being a supporting sponsor – it has also been selected as an official freight forwarding partner for the 2016 Christkindlmarket held in Chicago and Naperville, Illinois. Christkindlmarket is a holiday market held annually at Daley Plaza in Chicago since 1996. The festival attracts more than one million visitors each year. For the first time, the Christkindlmarket event will also be held in Naperville, a booming suburban community just outside of Chicago.
Logistics Plus is working directly with German American Events, LLC, the organizer for the event, to provide comprehensive logistical support. Logistics Plus Germany personnel, led by Heiko Mueller, will oversee the preparation of export documentation, consolidation of goods, and the shipping of numerous containers from Germany to the United States. From there, the Logistics Plus Chicago office, managed by Christian Marz, will provide participating vendors with customs clearance, warehousing, and final delivery support.
“We are thrilled to play the role of Santa Claus for the hundreds of thousands of people that will be attending Christkindlmarket this year,” said Jim Berlin, founder and CEO of Logistics Plus. “Our passion for excellence has come through once again thanks to the coordination between Christian, Heiko and their respective teams in the U.S. and Germany. Even though it’s only October, Logistics Plus elves are busy working behind the scenes to coordinate the logistics for this great event.”
About Christkindlmarket Chicago and Naperville
The Christkindlmarket Chicago and Naperville are two annual German outdoor holiday markets featuring vendors from around the world who display hand‐crafted ornaments, toys and unique holiday gifts as well as traditional German foods, sweets and beverages. Recognized as one of the largest and most authentic holiday markets outside of Europe, The Chicago and Naperville markets are rich in cultural tradition and feature fun special events, performers and activities. German American Events LLC. (GAELLC), a subsidiary of the German American Chamber of Commerce of the Midwest (GACC Midwest), is excited to continue to bring this beloved holiday tradition to the Chicagoland area. Focused on the continuing mission to further, promote, and assist in the expansion of bilateral trade and investment between Germany and the United States, especially in the Midwest, GACC Midwest and GAELLC have grown and developed the Christkindlmarket Chicago since its inception in 1996. For more information on the Christkindlmarket Chicago or Naperville, please visit www.christkindlmarket.com. For more information on the German American Chamber of Commerce of the Midwest, please visit www.gaccmidwest.org.
About Logistics Plus Inc. Logistics Plus Inc. provides freight transportation, warehousing, 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, 20 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; Alma, AR; Little Rock, AR; Los Angeles, CA; Riverside, CA; San Francisco, CA; Visalia, CA; Atlanta, GA; Chicago, IL; Detroit, MI; Kansas City, MO; Charlotte, NC; Lexington, NC; Buffalo, NY; Cleveland, OH; Charleston, SC; Greenville, SC; Nashville, TN; Dallas, TX; Fort Worth, TX; Houston, TX; Laredo, TX; Madison, WI; Bahrain; Belgium; Canada; Chile; China; Colombia; Egypt; France; Germany; India; Indonesia; Kazakhstan; Kenya; Libya; Mexico; Poland; Saudi Arabia; South Sudan; Turkey; UAE; and Uganda; with additional agents around the world. For more information, visit www.logisticsplus.com or follow @LogisticsPlus on Twitter.
Logistics Plus subsidiary company, Logistics Plus Linguistic Solutions (LPLS), was recently featured in a news segment that aired on WICU-TV, channel 12 in Erie, Pa. A replay is available for viewing online at erienewsnow.com or by clicking the image below.
Our own Matt Reichert, Ricardo Rivera, and Dan Zack were all featured in the segment. Nice job guys! For additional information on Logistics Plus Linguistic Solutions, please visit www.lplinguisticsolutions.com or click the button below to request a free quote on your next linguistics or translation project.
The leaves are turning, temperatures are dropping, and the peak Fall freight shipping season is here once again. Manufacturers are working to ship year-end orders, distributors are managing inventory and fulfilling shipments, and retailers are stocking shelves for the holidays. No matter where your business lies within the supply chain, finding affordable and reliable freight capacity this time of year is critical. To help get you through the season, here are 8 cost-saving freight shipping tips for you to consider:
Avoid surprises by knowing as much about your shipment as your carrier does. Carriers use dimensioning machines and forklift scales that measure and weigh every pallet. If your documentation doesn’t match their calculations, you’re charged an administrative fee to make the correction – plus your freight charges may be adjusted higher if it is heavier or takes up more space than expected. So know your proper freight classifications, and be sure to note specific National Motor Freight Classification (NMFC) codes on your bill of lading.
Focus on the net cost. Discounts can be misleading. When shippers get a big discount from a carrier, they often think it’s a great deal; but there are so many other factors to consider, including the fact that “list price” base rates vary from carrier to carrier and from lane to lane. So an 80% discount off one carrier’s base rates may actually be more expensive than, say, a 75% discount from another base rate schedule. That’s why it is important to focus on only the total net cost, and not the discount (as we do here at Logistics Plus).
Know when to consolidate. When shipping LTL freight shipments (those weighing between 150 and 10,000 pounds), consider consolidating orders to create a full truckload. LTL rates are usually much higher than truckload rates. Additionally, you should monitor your shipping patterns. If you find you are shipping multiple LTL shipments to the same customer within a close date range, consider consolidating those smaller loads into larger ones to reduce your overall expense.
Understand the value of your product and carrier liability limits. Every booked freight shipment comes with limited liability coverage. The amount of coverage is determined by the carrier and based upon the commodity type. It covers a certain dollar amount per pound of freight. In some situations, the included liability coverage may be less than the value of the shipped goods. If so, this is where additional freight insurance may be purchased. The extra freight insurance covers the shipped items and the cost of freight shipping. It is redeemable under all types of loss with no proof of fault required. Unlike the limited liability coverage, with added insurance, there are no exclusions for packaging errors or severe weather.
Be realistic about the service level you need. If your customer expects delivery in three days, you don’t need to overpay to deliver their shipment in one day. Additionally, don’t use a national freight carrier to deliver short-distance shipments, or a regional carrier to deliver coast-to-coast shipments. Regional carriers are much more cost-effective for regional shipments, while national carriers will provide the best “long-haul” service with minimal handling. When you do need expedited freight service, knowing your carriers and options can make a big difference on the final price, i.e., expedited ground shipping is going to cost much less than expedited air.
Pay attention to your packaging. Shrinkwrap your freight to your pallet to avoid it from sliding or shifting during transit. This will minimize costly damages and delays. Furthermore, don’t use more packaging than is required for your shipment. Over-packaging can create additional weight or “dead air,” both of which will add to your shipping costs.
Don’t forget about your inbound shipping. Oftentimes companies will ignore cost-saving opportunities with their inbound shipping because their vendors pay for the shipping on these orders. The reality, however, is that nothing ships for free. Many vendors will use a “prepay-and-add” approach to make additional profit on freight shipping. A thorough analysis of your vendor invoices might provide cost-saving opportunities if you bring the inbound shipping and routing under your own control.
Know how much time you’re spending on freight shipping. A lot of valuable time and resources can go into freight shipping. Finding scarce truck capacity, sourcing the right carriers, negotiating agreements, obtaining multiple carrier quotes, tracking shipments, auditing freight invoices, dealing with claims – these all contribute to your overall logistics expenses. Rather than dedicating internal, fixed resources to such activities, you may consider working with a reputable third-party logistics (3PL) company instead. A good 3P, like Logistics Plus, will be able to leverage all of its business to negotiate better rates with more carriers on your behalf. They will also have a transportation management system (TMS) technology that supports multiple carrier, service, and mode options. They’ll be able to help track shipments, audit freight invoices, and consolidate reporting. Lastly, they can scale their resources to appropriately address the fluctuations in your supply chain.
If you’re ready to take #8 of these freight shipping tips to heart, the freight experts at Logistics Plus stand ready to help. Use any of the buttons below to get started.
The Thunderbirds soared into the sky over North Texas at this weekend’s Fort Worth Alliance Air Show where, reportedly, more than 120,000 people were in attendance. Logistics Plus employees at the Dallas-Fort Worth Warehouse got a firsthand glimpse – and some amazing photos (see below) – as U.S. Air Force’s aerobatics squadron screamed across the overhead skies.
More than 120 enlisted personnel, representing nearly 30 career fields, form the backbone of the Thunderbirds. Enlisted team members are selected from units across the Air Force in a highly competitive hiring process. While each position has its various selection requirements, all eligible candidates must show a proven record of success and extensive job proficiency. The last time the Thunderbirds flew, in an extremely rare incident, one of their jets crashed minutes after finishing up an air show over the Air Force Academy graduation in Colorado Springs. The pilot ejected and was unhurt, and no one one the ground was injured because he crash-landed in a field.
Shown below is a video slideshow of the USAF Thunderbirds performance at the Fort Worth Alliance Air Show.
As recently reported, sources say the giant online retailer Amazon.com is expected to close the Fulfillment By Amazon (FBA) program to new sellers during the Q4, 2016 period. New sellers who have not yet sent in their first shipment to Amazon will not be able to do so until January 2017. Amazon’s latest move will leave many hopeful retailers – without their own self-fulfillment programs – on the sidelines as other previously-established FBA sellers fight for those coveted Q4 sales.
Why is Amazon doing this? With the rise of demand and sales that Q4 brings, Amazon usually experiences a huge flood of sellers looking to cash in on the holiday shopping craze, but these ‘growth spurts’ don’t come without consequences. Amazon boasts a huge network of fulfillment centers in 23 states; in fact, they reportedly have over 50 fulfillment centers, over 20 sortation centers, and more than 90,000 full-time employees, but these facilities are not intended to be long-term storage warehouses, but rather temporary short-term storage facilities. The growing number of Amazon FBA sellers, coupled with slow-moving inventory, has put a strain on these fulfillment centers to the point that Amazon was forced to take measures to keep inventory flowing through its veins.
So what can new Amazon sellers do? If you have inventory coming and you see yourself blocked from selling your items on FBA, you still have the option to sell your products through a self-fulfilled (or Merchant-fulfilled) type of scenario with the assistance of a third-party warehousing and fulfillment provider – like Logistics Plus. We are an established and approved member of the Amazon Solutions Provider Network (SPN), so we know how to help sellers import, warehouse, label, and deliver their merchandise according to Amazon specifications.
When you work with Logistics Plus, instead of sending your orders to an FBA distribution center, have your goods delivered to one of our many warehouses around the U.S. (you don’t need to store your merchandise in your own home or garage any longer as some sellers have resorted to doing). When your merchandise is stored at a Logistics Plus warehouse, our warehouse management system (WMS) software provides you with online, complete real-time visibility to your inventory on-hand. Beyond that, the process is very similar to FBA; only you won’t need to worry about inventory management, security, picking & packing, labeling, etc. – Logistics Plus does all of this for you.
Orders come directly to you through the Amazon system.
You then forward the order to Logistics Plus along with the prepaid shipping label and packing slip.
Logistics Plus picks and packs the order, labels it, and then sends the order to your customer.
You monitor the status of your order through our online WMS.
That’s it. Now you can focus on marketing and selling your products rather than worrying about the warehousing and logistics side of things. If you’re ready to begin your own Merchant/Self-Fulfilled program with Logistics Plus, click the button below to learn more and get started. Alternatively, you can send an email to amazonretailer@logisticsplus.com. We’re here to help!
The leaves are turning, temperatures are dropping, and the peak Fall freight shipping season is here once again. Manufacturers are working to ship year-end orders, distributors are managing inventory and fulfilling shipments, and retailers are stocking shelves for the holidays. No matter where your business lies within the supply chain, finding affordable and reliable freight capacity this time of year is critical. To help get you through the season, here are 8 cost-saving freight shipping tips for you to consider:
