The new trade wars and tariffs imposed by the US and China left many importers in the US looking for answers. Nobody wants to pay higher duties which translates into higher prices to the consumers. Which will result in consumers cutting down on their purchases.

In general, blanket tariffs are counterproductive. Nobody benefits from such practices. It reduces customer confidence.

In the wake of the new tariffs imposed by the US on Chinese products,  importers found themselves forced to increase their prices to offset the increase on the duties being paid or to switch to importing similar products from other countries that are not subject to the new tariffs.

The latest currency devaluation by the Chinese Government has in a way offset the last round of tariffs however; consumer confidence has been affected as customers perceive the trade wars as a sign of instability.

How will the new Tariffs affect Logistics.

1- “Logistics Companies” pay close attention to tariffs as it affects the supply chain. They have to be ready to offer new solutions to their customers. Many International 3PL Companies are seeing an increase in imports from China as Importers build up their Inventories before the Holiday season and before the new tariffs take effect.

2- Freight Forwarders  have noticed and increase in Ocean Freight Shipping from Vietnam and other Countries. It is noted that Chinese companies are shipping their products from Vietnam to avoid paying the additional duties.

3- US Companies who re-export some of their products have opted to shipping directly from China to South America for Example.

4- Companies who Export to South America are using the services of Bonded warehouses to hold their product in bond  instead of paying the extra duties until the product is exported.

5- Importing companies are getting better at negotiating Freight rates in order to compensate for some of the extra duties they might be paying.

The Bottom line about the New Tariffs

In spite of all the hype, we still see more container ships being built, we see shipping volumes increase across the world. The US trade deficit rose by 50 Billion even though the export volume has increased. That means more cargo is entering the US Market which means more cargo is moving to the US ports.

Experiences 3PL Companies are prepared to tackle such issues and advise their customers on the best strategy to adopt.

Resourses:

Freight Forwarders in Miami

International Freight Forwarders

Warehousing Services in Miami

Artificial Intelligence has made it into our lives a while back and continues to make an impact. From playing chess against a computer to Siri, Alexa and detecting cancer cells, A.I. is here to stay.

The logistics industry is beginning to invest in A.I. heavily starting with the shipping companies such as Maersk and CMA. Soon we will be able to see more efficient shipments at a lesser cost.

To those of you who watch futuristic movies, rest assured the Artificial Intelligence will not take over the world, we will not be ruled by robots.

Artificial Intelligence is about machine learning and learning (input) requires processing power. There just isn’t enough processing power in the world to match the power of the human brain. To clarify further it took 90,000 processers 1 hour to process what 1/100 of the brain to process in 1 second. You do that math.

When it comes to logistics, Artificial Intelligence is lagging behind other fields. Ocean Shipping Companies, are developing software to better track Ocean Freight shipments minute by minute.

In the next 5-10 years, we might be able to see driverless trucks making deliveries, robots in the warehouse will be able to determine which box to use for a specific item. The shipping software will automatically decide on the best shipping method at the least cost depending on the variables presented.

Tech giants, like Amazon, have been using Artificial Intelligence to determine which location an item should be shipped from to minimize the cost and expedite the shipment, Omnichannel Fulfillment.

Efficiency of the supply chain will continue to improve with the implementation of A.I.

Will Artificial Intelligence Replace us?

You need to understand that as long as A.I. lacks consciousness, human interventions will always be needed.  Our input will guide A.I.  so, for you dreamers out there, please come back to reality and for those of you afraid of technology, do not worry, robots will not make us obsolete simply because there is no power more dominating than the human brain. Just ask Microsoft about the failed Tay experiment. A.I. has to be able to perceive and act.

Resources

A.I. and 3PL

A.I. and freight Forwarding

A historic trade pact has been reached between the European Union and Four South American Countries, Brazil, Argentina, Uruguay and Paraguay. The trade pact that was signed on Friday, June 28th, 2019 would create a trade block of 780 million people representing a quarter of the world’s economy.

In the midst of international tensions, this trade pact comes in as a victory for EU leaders who have been defending free trade and a win for the government of South America’s 2 most closed markets, Brazil and Argentina.

Impact of Trade Pact

This pact will merge 2 blocks with a total of over 20 trillion dollars of economic output. The deal will create huge opportunities for exporters in the EU. This will help struggling economies in the EU such as Greece.

With this deal, the EU beat its international rivals in securing access to the Latin American Markets. This pact will help spur economic growth in South American Countries.

Brazil and Argentina are in mining and agricultural commodities, beef and dairy products.

This pact is supported by Spain, Portugal and free trade champions however; some countries such as France and Belgium have voiced concerns about the deal. France is concerned about compliance with the Paris climate change agreement.

Some EU farming countries are worried about the impact to their Farming and Agricultural industries.

This pact will also help other types of businesses flourish on both side of the Atlantic. Once of the businesses that would see large increase in volume is the shipping industry. Shipping Companies in Europe will, no doubt benefit from such an Agreement.

International 3PL, with its offices on both sides of the Atlantic, are preparing to meet the demand of the expected growth.

Resources:

Shipping to South America

Shipping from Europe to South America

Contract Logistics Companies in Europe

Regulations will continue to evolve in support of the circular economy. Circular economy, in short, is about setting targets on waste and recycling. This directly affects certain Logistics Services  such as reverse logistics,  packaging and fulfillment.

The EU’s Circular economy package went into force in 2018. U.S. and other countries are likely to follow. Expect to see significant carbon emissions regulations in the next few years.

International 3Pl has always provided reverse logistics services to its clients reducing the carbon foot print associated with excessive handling and transportation of returned products.

Our Order fulfillment services focus on forward distribution as well as reverse logistics which is key to a circular economy.

Recycling of boxes is at the core of our packaging services . We reuse most of the boxes that we receive for shipping out parcels without compromising the look or integrity of the shipment.

We are currently experimenting with single use boxes especially with our last mile services. We deliver then make sure to get the box back to be used in future shipments.

We are planning on applying the same practices at all of our locations.

resources:

Contract Logistics

3PL Companies in Miami

Logistics Companies in South America

Cryptocurrency is a digital currency built with cryptographic protocols that make transactions secure and difficult to fake. It is a peer to peer electronic cash system.

Cryptocurrency is not a new concept, it has been around for around 10 years. Most people do not understand how it works and so far it has been used to process payments between individuals for services and products. It has not been adopted as a payment method for business transactions or at least not as it should be.

The logistics industry, including freight forwarders , order fulfillment centers  and trucking companies should start taking advantage of the secure nature of cryptocurrency. It is to eliminate fraud completely witch plagues the shipping industry. The fraud incidents in the logistics industry are very high and costly.

Many freight forwarding companies  have experienced charges being reversed by credit card companies due to fraud. A random customer pays for his shipment using a stolen credit card, picks up his shipment and disappears leaving the freight forwarder to deal with the reversal charges. The same scenario happens with trucking companies and 3Pl Companies who handle cross dock services.

Why Should logistics companies accept cryptocurrency?

1- It is extremely safe. it is impossible to commit fraud.

2- The transaction cannot be reversed or modified, once it is done, there is nothing anybody can do about it

3- It is quick. Within 2 minutes the transaction its complete.

4- It almost cost nothing, less than the traditional forms of payments especially credit cards.

Ten years after bitcoin launched its cryptocurrency, other tech giants are beginning to develop their own.

Facebook with cooperation from Visa, MasterCard, PayPal and other financial institutions are currently developing their own cryptocurrency named LIBRA.

Cryptocurrency is the money of the future

resources;

3Pl Companies accepting cryptocurrency

Logistics Companies

Omnichannel order fulfillment Or (Omni Channel) is the order fulfillment across multiple channels. To put it simply, it is about order completion.  It does not matter where the order is being shipped from as long as it is completed at the lowest cost to the retailer.

Omnichannel Fulfillment is about having inventory available across all channels from one location. In one case it is the retailer’s website.

Omnichannel Order fulfillment Simplified

You are a retailer who received an online order from a customer for one of your products. If the product is available in your Distribution Center or 3PL Warehouse, it ships from there, if not, it could ship from one of your retails outlets or a partner.

It is about completing the order and creating a great customer experience. Which  Order Fulfillment strategy should be used when an order is received? The answer is: The most cost effective fulfillment process.

Types of Fulfillment Channels

1- Straight order in warehouse fulfillment

This means that the order will be shipped from the warehouse, DC or 3PL Company as it is received. If the product is not available at that location, order is not shipped even though it might be available at a retail outlet or a drop ship from the vendor.

2- Multi Channel Fulfillment

Inventory is available at different locations from warehouses to retail outlets and vendors however it lacks integration. Multichannel is identified by a non-integrated way to approach customers and inventory.

3-Omnichannel Fulfillment.

Similar to multichannel with a major difference, It requires coherent and absolute inventory integration.

Challenges to Ominchannel fulfillment

A resistant culture. The retailer has to learn new methods of fulfillment which is not always easy and some top managers might resist.

Where to start?

Adopting Omni Channel fulfillment is not easy. You first have to choose an Ominchannel fulfillment strategy that is easiest for people to embrace.

Omni Channel fulfillment is about cutting costs and faster completion of orders. Adopting Omnichannel fulfillment means that that should one fulfillment route fail, the operations can pivot to an alternative.

When your order is placed with a retailer, the order is filled immediately from either the DC, 3PL company, the vendor or a partner without you even having to worry where the order is coming from. That is what Omnichannel fulfillment is all about.

International 3Pl has been a major partner with many retailers adopting Omnichannel fulfillment. We are an integral part of the strategies adopted by many retailers.

Resources:

Contract Logistics Companies

Order Fulfillment Companies

3Pl Warehouses

As more Doral Freight Forwarders come into the picture, so do many distributors who want to take advantage of the close proximity to Shipping companies in Doral

Traditionally most of the freight forwarders were located close to the Miami port, but as the area has become congested, new freight forwarding companies set up shop in Doral, Florida

Most of the buildings in Doral are fairly new. Doral has the edge when it comes to Inland Transportation as it is close to the major trucking routes, The Florida Turnpike and I-75. This also made Doral a major location for Cross docking companies in Doral.

New 5G Wireless technology promises to make everything connected. The Next Generation 5G wireless  will supercharge cell phones, but its real potential lies it potential to power everything electronic other than smart phones.

The New technology with greatly influence a technology hungry field like Logistics.

Right now, GPS is used to track trucking companies who carry shipments that are loaded on trucks, wouldn’t be nice to be able to track your pallet live knowing exactly where it is? 5G wireless promises to be faster with less latency.

Warehouses use RF ( Radio frequency ) to transmit data through the warehouse to track an package from the time the order is placed until the package leave the warehouse, providing weight, dims to the WMS system?  How would you like to have that data available live from the time the order is entered until the end user signs for it under one platform. Imagine that application being applied to international shipments too.

What we are looking at is your 3PL company being able to offer all the information about your package from the time you end an order to ship until it is delivered.

5G wireless promises to be the holy grail of logistics.

Factories have relied in wires for along time since wireless technology is spotty and slow making it hard for machines to perform their functions. Now factories will benefit from the speed of 5G technology so will the shipping companies.

We are looking at being able to track the container while at see without having to rely on the internet portal of the shipping company  Your will be able to see the location of your container live on a map even if it being trucked from one location to another.

But don’t hold your breath, you will not see the full power of this technology until probably 5 years from now as cellular providers complete building the network.

Ms. Krys Siles, a spokesperson for International 3PL, a Miami Based 3Pl Company, stated that implementing 5G wireless is a priority for international 3Pl and it will be applied to both the freight forwarding division  and Contract Logistics division.

5G wireless costs will be passed on to the consumers, all 5G Wireless devices will cost more. Right now it is a race with time for German and Chinese Businesses trying to upgrade to 5G.

If you are planning on buying a 5G capable phone, you should wait. it will be 2 years at least before there is in enough coverage. 5G is faster but has less capability of penetrating walls.

resources:

3Pl conpanies:

International Shipping

Freight Forwarders

It is not a surprise that the best 3PL companies are not the largest, rather they are the midsize companies who focus on small and medium size customers with customer service in Mind.

As a customer of a 3PL company who handles your order fulfillment , you want the lines of communication open at all times. You need the flexibility that larger 3PL’s don’t offer. In most cases this will not be provided by the large size 3PL’s. They focus on revenue and they love to work with large customers.

Another reason why large 3PL’s might not be a good fit for small or medium size customers is because these 3PL companies are converted freight forwarders .

Their business revolves around ocean freight , Air Freight and warehousing services.

Best 3PL companies VS Freight Forwarders

Order fulfillment is a totally different animal that required better skill set. Freight Forwarding does not require the daily minute by minute involvement.

A shipment Via ocean from China to Miami does not require the constant attention until the cargo is about to arrive at the port. Order fulfillment ,on the other hand, requires involvement from the 3PL Company with the customer to make sure that the order is delivered as promised to the end user. That just one instance.

Here are some of the steps commonly followed in order fulfillment.

1-Customer initiates shipment to end user either via email or the 3PL ecommerce portal.

2- Order confirmed by the 3PL

3- 3PL prepares shipment ( “Pick and Pack” ) paying attention to special instructions.

4- Order is shipped

5- Both customer and end user ( Consignee )  are advised

6- Delivery is confirmed.

The above applies to any shipment large or small. A true 3PL company typically handles hundreds of such orders on daily basis.

One of the best 3pl Companies we have worked with is International 3PL in Miami, Florida

resources:

Best Logistics companies in Miami

Contract Logistics

7 Pl companies

Inventory Control is not only about making sure that the physical count matches what the WMS or ERP software shows, It is about having the right mix of products to sell, about not having too little inventory or too much inventory, it is about controlling the flow of inventory from the manufacturers.
This article is about the right practices to make sure you have what you think you have in stock.
These principles apply equally to manufacturers, distributors and Even 3PL Companies who handle inventory for other companies.
Whether a shipment is being delivered via Ocean Freight or Air Freight

Necessary Inventory Control Practices

1- Before the product is shipping to the warehouse make sure it is labeled properly. Bar codes are essential. Make sure the vendor or shipper send an SKU list with the complete description.

2- As you receive a shipment, make sure you have a packing list to receive against.

3- As the Inventory is received at the warehouse, verify that the BOL quantity matches what the packing list states in pallets or master cases. Record any discrepancies.

4- Record Damages to the BOL and the Warehouse receipt.

5-Advise shipper of any Discrepancies.

6-Receive product in WMS system and send to Shipper ( Customer ) to verify

7- If the inventory exists in stock, count what you have in stock and indicate on the receiving report

8-Label all boxes or pallets received with Warehouse receipt number. Record the location of the Cargo.

Inventory Control and Shipping

1- The warehouse gets a pick ticket, the items are picked accordingly.

2- pack the products in a way where you know what is being shipped. Avoid Mixing of products as much as you can.

3- Report Insufficient inventory to office immediately. This means a discrepancy. It could be a shipping mistake or you just can’t locate the product. This needs to be taken seriously.

4- As you pick the product from inventory and you notice low levels of inventory, report back to the office using a low inventory level form.

5- As you pick orders, make sure you do a random verification of the quantity available in stock and annotate on the pick ticket.

6- If possible, have one person pick, another pack and another ship. This will cut down on the mistakes.

7- the last step is for a random check: take the packing list and verify that what you have on the doc is what is on the packing list.

8- Make sure order entry department, closes order to deduct from Inventory.

9- Perform random inventory counts on regular basis. That will save hours of doing a total count. Technically within a period of 2 months of doing the random inventory count, you would have counted the whole inventory.

If the above steps are followed, you should not have any issues with inventory discrepancies. Most of the mistakes happen during shipping or receiving.