Why outsource Fulfillment Solutions?

Outsourcing Fulfillment Solutions is a good option for many companies especially startups who might be strapped for cash o lack the experience. It is also a fast and efficient way to introduce their products to the market without having to wait to build the infrastructure needed for fulfillment.

There are so many new products being introduced to the market mostly by small businesses who have launched their new website, promoted it and are looking forward to a bunch of orders coming in. They depend on e-fulfillment to success.

A large portion of these companies outsource their fulfillment solutions to Amazon because they get the exposure they need, achieve a better ranking for their website and get access to cheap shipping rates. Due to the rising cost of Fulfillment by Amazon, the numerous mistakes made by Amazon fulfillment centers ranging from double shipment to inaccurate counts and of course unfair practices by Amazon where they can take away your brand because it is successful, many companies are looking for other  Fulfillment centers to handle their business.  Most of these companies still do business with Amazon just for the exposure but sell the majority of their items using other channels.

Why Outsource Fulfillment Solutions

  1. Cost Reduction:  If you have to have your own operation, warehouse, employees and equipment, you are looking at a large investment that you might not be able to afford.  It might be a good idea to use the services of a Fulfillment Company.
  2. Lack of Experience: Leave it to the pros. Learn from them and if it is economically feasible, you can do your own fulfillment.
  3. Tap into cheaper shipping rates: most 3pl companies  have access to multiple shipping companies and the huge discounts that come with it.

Over the last 15 years many companies, even with huge capital behind them, used third party logistics companies to handle their fulfillment needs.

International 3PL has been handling fulfillment for small and large companies.  It is what we do.

For a rate request please contact us at: 305-800-7447 or click on our Fulfillment Questionnaire.

Resources

3Pl Companies in Miami

Contract Logistics Companies

Shipping Companies in Miami

Impact of Artificial intelligence on Logistics

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

4PL Companies

We heard a lot about 3 PL Companies but what do 4PL Companies do? 4PL Companies are Consultants that in many cases manage 3PL’s. International 4PL is a leading logistics consulting services firm that enables companies to increase their competitive position by improving customer service levels.

Services Offered by 4PL Companies

4PL Companies offer specialized supply chain, logistics consulting in the following areas:

  • Distribution Center Design
  • Material handing and Automation Systems
  • Supply Chain technology
  • Transportation Management
  • Purchasing and inventory optimization
  • Product souring strategy
  • 3PL outsourcing
  • Logistics Network strategy.

Improve your supply chain for maximum effectiveness.

  • Lean Supply Chain Management
  • Supply Chain Management Best Practices
  • Supply Chain Risk Mitigation
  • Logistics Outsourcing

For 3PLs and Logistics Service Providers, we can assist you to generate quality sales, increase margins and reduce customer turnover.

What is Logistics Consulting

A logistics consultant helps companies improve customer service operations and develop cost-effective solutions for supply chain, warehouse, material handling, and distribution issues. Read on for more about the career duties of a logistics consultant, educational requirements, and employment outlook

Working with logistics service providers, transport providers, warehouses, 3PL Companies, retailers and others to grow their potentials and go above and beyond traditional commodity services, which are defined by price and high customer turnover.

Developing and implementing the program you need is our specialty. No matter what you do  or what your supply chain or logistics  needs are, International 4PL can provide you with solutions that work.

We draw on the extensive practical logistics / supply chain management experience of its people to assist clients with their supply chain and logistics challenges. We combine our actual, global experience with our skills and in-depth knowledge to deliver solutions that meet and exceed client expectations. We works with clients to assess, develop and implement solutions that work.

There are a number of logistics problems that a company may face. They could be growing very rapidly. They could want help with their productivity. They could even want help with their equipment. They could also want to understand the cost of logistics at a product or customer level. International 4PL offers its expertise to face many of the challenges.

Schedule a free consultation

 

What is a Third Party Logistics Provider

What is the true Definition of A Third Party Logistics Provider?

According to Wikipedia:  A third party logistics provider (abbreviated 3PL, or sometimes TPL) is a firm that provides service to its customers of outsourced (or “Third Party”) logistics services for part, or all of their supply chain management functions. Third party logistics providers typically specialize in integrated operation, warehousing and transportation services that can be scaled and customized to customers’ needs based on market conditions, such as the demands and delivery service requirements for their products and materials.
Often, these services go beyond logistics and include value-added services related to the production or procurement of goods, i.e., services that integrate parts of the supply chain. When this integration occurs, the provider is then called a third-party supply chain management provider (3PSCM) or supply chain management service provider (SCMSP).
3PL targets a particular function in supply management, such as warehousing, transportation, or raw material provision.

A standard definition of just what a third party logistics provider is can vary from contract to contract. Is everyone who thinks they are engaged in a “third-party contract” really involved in a “third-party contract?”
If a distributor, for example, has a truck pull up to their door a few times a day or week to deliver goods to their customers, is this truck their 3PL provider? The answer is NO.

The definition of a third party logistics provider is as confusing as the term supply chain. Even logistics professional struggle with the term. Many companies refer to trucking, ocean freight services or warehousing as 3PL Services.
Warehousing, transportation and storage by itself is not considered 3PL Services and the company that warehouses and transports the goods is not necessarily a 3pl provider. It is just a warehouse or a transport company.

Many companies require a transport company to deliver the gods from point A to Point B since it does not make sense in some cases to own your own trucks. These transport companies might not be 3PL providers. If that transport company is involved in the warehousing and distribution of the product then it can be called  third party logistics provider.

Many freight forwarding companies and shipping companies have added services to become 3PL Companies. For example, large freight forwarders will ship your container, handle the necessary customs paper work, deliver the container to their warehouse and distribute the product to end users.

Keep in mind that 3PL companies outsource some of the services to other 3PL companies, for example a customs broker who wants a piece of the action outsources warehousing and distribution to other companies while they appear as the provider of these services.

Is it a wise decision to outsource all these functions to one 3PL Company?

The answer is : it all depends on the end result. in some cases, the 3PL provider is unable to give provide the best transportation rates including ocean or inland therefore, a company my opt to use another 3PL provider. This has given rise to 4PL Companies that will manage the other 3PL companies making sure that the customer gets the best service and the best rates possible.

What is a 7PL Company ?

7PL is still considered a concept. Some 4PL companies offer back office support such as accounting, customer service, billing and receivables management. This concept is called by some 7PL Services. This concept is becoming a reality very quickly.

In a nut shell, the number of companies calling themselves 3PL providers has risen but the reality is that most of them do not offer the true services a 3PL is supposed to provide. As mentioned earlier providing these services without integration.

Whether it is a third party logistics provider, a fourth party logistics provider or a 7PL Provider, the bottom line is which one will be able to offer end to end solutions.

 

 

Why use 3PL Companies

3PL Logistics Companies offer the following advantages manufacturers, distributors and retailers can gain by using a 3PL:

Improve global capabilities. 3PLs have on-ground knowledge of markets, regulations and and understanding of capacity constraints.

Reduce costs. 3PLs can help reduce excess carrying costs, return goods cost and lost sales. They can also help manufacturers move more material with fewer assets while still meeting customer requirements. In some cases, manufacturers can realize savings when consolidating warehouses and/or using shared facilities operated by 3PLs.

Improve quality. Working with a 3PL logistics Companies, companies can expect to improve performance in areas such as reduction in inventory levels, greater product availability rates, fewer customer complaints and improved order accuracy. Manufacturers also will be able to better assess the performance of supply chain partners when they have good data.

Speed process change. It can sometimes be easier to make process changes with an outside provider, since you can tap into someone else’s existing infrastructure, technology and people. This is critical for manufacturers who need to grow at an accelerated pace.

Eliminate hand-offs. Oftentimes, the lines can be blurred between what 3PLs do versus their customers. . When you eliminate hand-offs, you can increase speed to market and reduce costs.

Third party logistics providers have a vast resource network available that provides advantages over in-house supply chains. Using a 3pl’s resource network, each step in the supply chain can be executed in the most efficient, cost effective way. 3PLs can leverage relationships and volume discounts, which results in lower overhead and the fastest possible service. Choosing a 3PL provider allows your company to benefit from resources which are unavailable in-house.

What to expect from 3PL Logistics Providers

Save Time and Money

Outsourcing logistics will save a wealth of time and money for your company. Using a 3PL provider eliminates the need to invest in warehouse space, technology, transportation, and staff to execute the logistics process. 3PL providers can save from costly mistakes, and allow your business to build a global logistical network with lower risk and higher return.

3PLs save you the time needed to carry out the supply chain. There is no need to worry about the paperwork, billing, audits, training, staffing, and optimization involved to get your goods where they need to go.

3PL Logistics providers are knowledgeable of industry best practices, and stay up to date with the latest developments in technology. 3PL software is capable of advanced reporting, inventory management, and provides visibility to monitor the entire process. 3PL experts employ Just in Time practices to ensure the correct amount of inventory is shipped when and where you need it.

Outsourcing logistics allows your company to focus on your core competencies, and leaves the rest to the experts. 3PL services will allow you to have peace of mind knowing your logistics needs are being handled by reliable, seasoned professionals.

Scalability and Flexibility

A benefit of using a 3PL logistics provider is the ability to scale space, labor, and transportation according to inventory needs. Businesses with seasonal periods can enjoy stress free transitions between industry ups and downs, having the ability to utilize more space and resources when needed.

Using a 3PL provider allows your business to grow into new regions without barriers. 3PL providers have distribution centers and warehouses strategically located to allow for quick shipping of goods to anywhere in the world. Decentralized distribution offers lower costs, and provides quicker delivery times. 3PL providers have the resources to seamlessly support growth into new markets.

Continuous Optimization

3PL providers have the resources at hand to make adjustments and improvements to each link in the supply chain. 3PL professionals will ensure your needs are met, by using the fastest, most efficient, and cost effective methods.

3PL logistics providers have the tools to restructure the supply chain, and use technology that ensures the proper amount of goods arrive when and where you need them. Sophisticated management software can analyze and monitor practices to eliminate inefficiencies and streamline the supply chain. Outsourcing 3PL services will ensure continuous improvements are made to your logistics process. Third Party Logistics providers can help maximize profits, reduce wait times, and improve customer service

3PL vs 4PL

What is the difference between 3PL and 4PL?

The CSCMP defines 3PL as follows:

Outsourcing all or much of a company’s logistics operations to a specialized company. The term “3PL” was first used in the early 1970s to identify intermodal marketing companies (IMCs) in transportation contracts. Up to that point, contracts for transportation had featured only two parties, the shipper and the carrier. When IMCs entered the picture—as intermediaries that accepted shipments from the shippers and tendered them to the rail carriers—they became the third party to the contract, the 3PL. Definition has broadened to the point where these days, every company that offers some kind of logistics service for hire calls itself a 3PL. Preferably, these services are integrated, or “bundled,” together by the provider. Services they provide are transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding. In 2008 legislation passed declaring that the legal definition of a 3PL is “A person who solely receives, holds, or otherwise transports a consumer product in the ordinary course of business but who does not take title to the product.”

The CSCMP defines 4PL as follows:
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