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

FDA Approved warehouses are required to handle the storage, Cross Docking and distribution  of all food products and supplements.

The Food and Drug Administration (FDA) regulates food, beverage, and dietary supplements intended for consumption in the United States by Humans or Animals. FDA Registration is required for all facilities that manufacture, process, pack or store food, beverage and Dietary Supplements

Prior notice is required before food shipments may enter the United States. A Bar code prior notice confirmation number issued by the FDA must accompany most shipments. All foreign companies must have a designated U.S. agent.

As an importer of food products or supplements, you need to have an FDA number. The manufacturer may either apply for an FDA number or assign an U.S. Agent.

Your International Freight Forwarder must be aware of the nature of the product being imported. If it is a food product, they will ask for the FDA number.

FDA Approved Warehouses

If you are importing products such as meat, poultry, vegetables or fruits that will require the approval of the United States Department of Agriculture (USDA)

Many warehouses in Miami are not aware that they need to get the certification authorizing them to handle the storage and distribution of food products. Even if you are only doing the fulfillment for coffee beans or tea, you still need to have the warehouse approved by the FDA

International 3PL, possesses the necessary certifications from the FDA to store, pack and repack, and distribute food and beverages. This makes us one of the few 3PL Companies that can handle the fulfillment of food products.

We also can help you get all the necessary certifications and permits to import food products.

For a quote, please call us at 305-800-ship or Contact us

resources:

Miami Warehouses

Miami Freight Forwarders

Food Storage facilities in Miami

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

Soon, drones will deliver some of your online purchases to your doorstep. The FAA has granted UPS permission to deliver medical supplies in a number of cities using drones.  Amazon has been experimenting with Drone Deliveries.

Drones can play a vital in order fulfillment however; it will be some time before these aerial vehicles can handle the delivery of a substantial number of packages in the USA.

The investment in the infrastructure to support such an operation is huge.  Only a few Logistics Companies have the financial backing to develop such solutions.  Do not expect your neighborhood  freight forwarder to roll out a delivery program using drones.  You must also keep in mind the legal hurdles facing delivery with drones.  Technological limitations still pose a problem, these aerial systems still cannot travel very long distances and there is a limit as far as the weight it can carry.  How many packages can be delivered in a single run?  Can you just imagine a sky riddled with these devices, attempting delivery, where you cannot even see the sun?  How can we prevent accidents? And what will happen to the packages?

Another question to ask is:  Will drones handle the return of packages?  What about damaged goods?  There are a lot of questions to be answered and we simply do not have the answer to that.

Drones and Security

The other obstacle to implementing drones for package delivery is security concerns.  Will hackers be able to hack into a drone and change the delivery location or just steal the drone?  Will they be able to hack into the drone’s guidance system and create chaos?  We still do not know the answer to that.

The bottom line is that we are still in the experimental stage and we should not expect all packages to be delivered using drones nor expect courier companies to go out of business because of them.

There are some issues that need to be sorted out before drones become the primary method of package delivery, so please be nice to your delivery man as he will be delivering your packages for a very long time.

Resources:

Package Delivery in Miami

Miami Freight Forwarders

Ecommerce Fulfillment

Last mile delivery is the movement of goods from a transportation hub such as a common carrier’s warehouse to the final delivery destination which is most cases a residence.

Last Mile Delivery has become an integral part of fulfillment. As retailers compete for same or next day delivery, they are always looking for companies that handle the last portion of the delivery to the customer.

Some of those last mile delivery companies also offer white glove service in order to offer a complete customer experience.

White Glove services refers to the inside delivery and sometime installation of a product that a consumer has purchased such as furniture that weighs too much and needs a few people to carry and place inside a residence. Many online retailers offer these services to their clients which creates a good customer experience and therefo re customer loyalty.

As an example of last mile delivery, let us assume you live in Miami and have purchased a refrigerator from an online retailer, the refrigerator shipped from another state. You are expecting delivery to your home which happens to be in a gated community where large commercial trucks are not allowed. The Retailer will ship the fridge to a distribution hub in your city and then hire the services of a last mile delivery company in Miami to deliver to your home and install the refrigerator.

Some of the common carriers are now offering last mile delivery as part of their logistics Services.

Last Mile Delivery and Omni channel fulfillment

With Evolving ominichannel fulfillment, Last Mile Logistics has become an area of interest for a retailer and has been integrated into their fulfillment channels.

Due to the surge in online orders traditional delivery methods are just not enough. Faster delivery is demanded by customers who would like to be presented with many delivery options to choose from.

The anticipated increase in online sales is expected to span across a variety of product types which might dictate the delivery option used.

Logistics Companies

It is almost impossible for most common carriers to handle the last delivery in all areas of the USA, it is like creating a whole new business with its own infra structure. Common carriers have opted to outsource that part of the delivery process to: 3PL Companies

To request a quote, please Contact us.

resources;

Logistics Companies in Miami

Contact Logistics Companies

Logistics Impact on the economy has been so strong it ignited the economic growth and expansion from 2009- until now, which is the longest in history. Have you ever wondered we are expanding at a rate and why we are having such a run? Was it the Federal Reserve bank, The President’s economic policies, the demographic shift or the US Currency?  Well it is none of those reasons. The correct answer is logistics.

Many years ago, companies lived and died by the Inventory Cycle. Companies used to bulk up on inventory in anticipation of demand and sales afraid of long delivery times from vendors. It used to take weeks or months before customers took possession of their goods. Companies would carry a lot more inventory that they needed, that tied up financial resources and made them vulnerable to demand changes. We all have witnessed large companies getting rid of obsolete items at a total loss.

Nowadays, companies have a lot more flexibility when it comes to inventory control, they do not have to pile up inventory in their warehouses.  Shipping companies have made it easier to get the product on time (Just in Time or JIT).  Companies can use the services of the Freight Forwarders to make sure the products are shipped on time and received at destination rapidly.

Logistics Impact on the shipping Industry

As more and more products are being imported, Freight Forwarding Companies became an integral part of the Supply Chain Providing services such as Quality Control, Compliance and import services. Companies passed some of the responsibility of getting the inventory on time to Freight Forwarders. These companies order less amount of inventory, but they are receiving it more frequently.

The direct Impact of Logistics on the various sectors of logistics:

1. To control Inventory levels, a new class of consultants came to the scene, Supply chain Consultants. The help companies control their inventory levels and ensure on time delivery.
2. Warehousing Companies grew in number as companies sought to hold inventory in different locations in order to service a larger area.
3. Third party Logistics Companies or 3PL Companies emerged into the market as providers of all the logistics solutions needed to deliver products from Manufacturer to End User such as Order Fulfillment, Inland Transportation, Ocean Freight shipping and Storage. Companies no longer need to have their own warehouses to store their products and fulfill their orders. Knowing that you can depend on a 3PL Company to fulfill orders allow companies to focus more on their core competencies which fueled product innovation.
4. International Freight forwarders started opening more locations around the globe to facilitate the transfer of goods from Vendor to Customer.

The re-engineering of Logistics

The reengineering of the Logistics Industry has contributed to creating more jobs and new companies offering logistics services. It also allowed for new products to enter the market creating new demand for products.

Products no longer take days or weeks to be delivered, thanks to logistics they can be delivered the next day or even the same day.

In conclusion, logistics made it easier, cheaper and faster to deliver orders from Factory to end user. There is no more need for companies to carry large amounts of inventory and invest large amounts of money in inventory since, thanks to logistics companies, product delivery has been made easier than ever.

Resources:

Omni Channel Fulfillment

Contract Logistics Companies

International Freight Forwarders

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