Supply chains have been disrupted by the Novel Corona Virus due to flaws in the design, lack of planning and inflexibility. This disruption could have been avoided or at least mitigated if supply chain managers were more proactive and had a vision of the future rather than focusing on the bottom line regardless of the practices.

By definition, supply chain involves the management of the three most important resources of an organization: Inventory, Money and information. When key information pertaining to the Corona Virus were not conveyed to parts of the supply chains, there was no viable reaction to the spread of the Corona Virus. No preparations made to continue shipping products by protecting shippers and manufacturers.

Factories could not have enough raw materials or components brought in from other regions or countries to start production since International freight Forwarders were crippled by the Corona Virus. There was a long-term impact on the Shipping Companies.  Many freight forwarders have permanently closed their doors especially the smaller ones with the personal service to its clients.

Not having raw materials to produce finished products because there were not people to work in the factory combined with lack of failure to deliver the finished product, if available, to the end user resulted in shortages in many commodities.  Even when the finished products were available, they could not be delivered reliably to the end user. No to mention that most of non-essential products were not being shipped as more preference was given to PPE products.  Amazon is a perfect example. They focused on Personal Hygiene products and stopped shipping other items even if they are available which prompted some of their third party sellers to use 3PL companies to fulfill their orders. This has revitalized the regional Fulfillment Centers.

How to design better supply Chains

1. Information is key. Had information about the corona virus and the ways to mitigate the spread used in the design of the supply chains, we would not have witnessed such shortages.
2. Emergency plans should always be in place to combat any disruptions just like we have emergency plans in the case of hurricanes. These plans might involve adding extra locations or using different shipping routes or changing the procurement practices.
3. Design smart Supply Chains with more flexibility and transparency.
4. Locate and utilize multiple sources for products, do not put all eggs in one basket.

Impact of Corona Virus on many producers

During the height of the Corona Virus infections, many milk producers had to throw away the milk because they did not have enough storage facilities. Instead they should have plans to make cheese instead of throwing it away. Produce loaded on export containers had to be discarded as vessels did not ship. Excess produce could have been distributed to communities or even frozen and canned.

This is all due to improperly managing the information which is essential for the effectiveness of supply chains. Some businesses have closed down permanently unnecessarily.  Which will impact the economy.

Supply Chain consultants better learn from this experience and design ethical supply chains that focus on efficiency and sustainable practices and not only the bottom line .

Resources:

Supply Chain Consultants

Third Party Logistics Providers

International Shippers

e-commerce Fulfillment

To outsource e-fulfillment or not. That is the million-dollar question. There are many reasons why a company might decide to outsource its e-fulfillment. Some of these reasons are obvious other are not that obvious and many companies just do not pay attention to the benefits of outsourcing its fulfillment services.

The Obvious reasons why you should outsource E-fulfillment

1. Lack of capital:  Many Startups and even established companies do not have the capital to rent a warehouse, hire employees, lease a forklift, pay for insurance and many other charges. Using 3Pl companies to handle the fulfillment services is the way to go, not by choice in some.
2. Faster Turn Around time:  If you are selling products online and in order to succeed in the e-Commerce business you need to ship fast. customers these days just do not wait to wait a day or two to get their product. Most “fulfillment centers” have enough staff to ensure that the orders leave as quickly as possible, something you might not be able to do if you have limited resources.
3. Focusing on your own business: A company needs to focus on its core competencies be it selling or developing new products. That is why several companies outsource their order fulfillment services.  It is just wiser to worry about sales than receiving, warehousing, shipping and inventory shortages.
4. Flexibility:  Companies that are selling online can choose which 3PL company and which location to ship from.  The company could be located in the middle of Utah yet its customer base is in Miami, they can choose any of the Miami Fulfillment companies to ship from. They also can have multiple locations to ship from without the haste of renting space in all of these locations.

The not so obvious reasons why you should outsource E- Fulfillment.

1. Lower shipping rates: 3Pl companies usually have high shipping volumes which qualifies them for larger discounts and much lower rates than if you try or ship on your own. This applies to all forms of shipping such as Inland Transportation, or even Ocean freight.
2. Expertise: many of the fulfillment centers have been doing this job for many years and developed the know how to help you with your business. You just can’t put a price on experience.
3. Cross Selling: through working with the fulfillment company you get to meet potential clients. More revenue
4. Global reach: if you are planning on exporting your products, you do not have to go somewhere else to get these services. Many of 3PL Companies are freight forwarders.
5. Value added services: Fulfillment centers can help with branding and marketing in addition to other services such as collections and receivables management.

According to a study by the Harvard business school, it is much more economical and efficient to use a fulfillment company as opposed to doing the fulfillment yourself. Even Amazon outsources some of their fulfillment services to a company like International 3PL.

Resources:

Fulfillment centers in Miami

Fulfillment centers in Doral

Contract Logistics

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

Blockchain is a distributed ledger shared among many people in a network without an intermediary. The entries in the ledger cannot be modified. One Example of the use of such technology is crypto currency such as Bitcoin. When it comes to Supply Chain and logistics, Blockchains are becoming synonymous with transparency and visibility. The new technology will revolutionize how companies expand while maintaining compliance

Supply chain involves material flow, information flow and capital flow. Supply chain is about managing the flow of goods, services, storage and movement of raw materials, product manufacturing and shipping of Goods.

One of the benefits of using blockchain in supply chain Management is it’s allowing the data to be more inter-operable so that the information and data can be shared with manufacturers suppliers and “shipping companies” easily.

Transparency in Blockchain helps reduce delays and avoid goods from being stuck in the supply chain.

Using Blockchain offers more stalability through which a database can be accessed from multiple locations worldwide. This in essence ensures that all the participants in the supply chain from manufacturers to freight Forwarders are always connected and there are no limits on the number of entries.

Benefits of using block chain in the supply chain Industry:

• Advanced inventory management
• Enhanced transparency
• Minimizing Courier Costs.
• The Ability to identify issues faster
• Keep vendors and customers honest
• Faster tracking of shipments
• Establish provenance

Logistics and Blockchain in a nutshell

The new Technology will empower Freight Forwarding companies with an incorruptible resource. As the companies expand, companies will grow more connected and contract adherence will be the norm.

“Contract Logistics Companies” stand to benefit the most from the new technology by having more transparency to the supply chain network and from the speed of recording transactions.

Digital Shipping

Blockchains will become the standard for technology use in shipping. It will give all the parties involved in a shipment the ability to access and record information such s the shipment booking, bill of lading, customs clearance and even delivery to final customer. All happening in real time. Since events cannot be edited after entry, this will ensure accuracy and timelessness.

Maintaining a supply chain with all its elements is a tedious task for small businesses, the interconnectivity of the different elements becomes more inefficient when a business grows. Block chain is a game changer when it comes to SCM

Resources:

Supply Chain Management Companies

International Logistics Companies

3PL Companies