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

Carbon free shipping is aiming at reducing the carbon footprint created by large container ships. 85% of all cargo around the world is shipped using mega ships. Shipping Companies  are under a lot of pressure to meet the requirements of the International Maritime Organization.

The Shipping industry is going through a transformation that has not been seen in 100 years by switching from Heavy Fuel powered ships to Liquefied Natural Gas (LNG).  Some of the largest container shipping operators have already placed orders for ships powered by LNG.

Impact of Carbon Free shipping on the Environment

It is estimated that the use of LNG will reduce carbon emissions by around 20% however; there is draw back.  Methane is the main ingredient of natural gas.  Some of it will still be released into the atmosphere when natural gas does not burn fully.  LNG manufacturers claim to be able to produce engines that will release less liquefied natural gas.

Some scientists claim that using LNG in ships will emit more greenhouse gases than ships using traditional fuels.

The other problem facing ship operators is that the cost of manufacturing LNG powered ships is higher than traditionally powered ships however; the cost to operate is significantly less heavy fuel powered ships.

Many mega retailers have been looking for a solution to reduce the carbon foot print of shipping their products. They have instructed their Logistics Providers to use LNG powered ships when they become available in about 2 years.

This does not change the fact that many of the products being shipped by those mega retailers are not environmentally friendly and are a major cause of pollution in the world.

International 3PL is committed to reducing the carbon foot print by using Liquefied natural Gas-powered ships. We have a signed agreement with CMA shipping line to start using LNG powered ships once available. We will do our best to help reduce greenhouse emissions.  We will be launching a new plant a tree program to help reduce carbon emissions.

Trees remove CO2 from the atmosphere and produce O2. If each one of us plants a tree every year, we will help save the environment.

Resources:

 Eco Friendly freight Forwarders

International Freight Forwarders

International Shipping Companies

Freight cost, sometimes, make up a large portion of the total cost of a product specially when it comes to low value and high weight products.  For example, if you are importing ceramic tile, the freight cost alone could make up over 50% of the price of the product.

How can you save on Freight Cost?

There are several ways you can save on freight depending on the mode of transportation.

1- Ocean Freight: If you are shipping a container, make sure to maximize the load as long as you do not exceed the maximum weight allowed. Also, if you are shipping a container of heavy, low value products, try to add a high value product in the same container and off course negotiate the best rates with the Freight Forwarder

2- Air Freight: Make sure you do not ship half full boxes; you will be paying for air. Consolidate items into a little number of boxes as possible.

Do not Mix dangerous goods with non-Dangerous goods in the same shipment, you will be paying the rate applicable to DG goods which is the highest

3- Inland Transportation

A- If you are shipping a full truck, fill it up to the max weight, Choose the best Inland Transportation Company.

B- For LTL shipments, make sure you use the right NMFC Classification. The higher the classification, the more you pay. Once again, do not ship half full boxes.

4 – Courier Shipping; When shipping Via UPS, FedEx or USPS make sure to use the smallest size box as they charge based on what will net more revenue which is weight or volume. Refer to Dim weight calculation. Shipping a pillow that weighs 5 lbs. will cost you more than a computer that weighs 5 lbs. since the pillow shipping cost will be charged based on dim weight.

If you are an importer, make sure you use the correct harmonized Tariff Code , there is no need to pay  more in duties than you have to, remember to do your research and get the best shipping rates without compromising service

Resources:

International shipping rates

Ocean Freight rates

Request a freight Quote

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

Digital Shipping refers to the use of block chain technology in logistic and supply chain. There are millions of shipping companies in the world. These companies are disconnected which means that there is a possibility that your shipment might be with any one of them and it will be very hard for you to track the shipment at all times since cargo exchanges hands between different companies.

In simple words, digital shipping refers to the ability of companies to have access to the records and in information of a shipment no matter where it originated from. Let us assume, as an example, that an LTL Shipment (less than a full load shipment) originated in Seattle, WA. in route to Miami, FL.  The shipment had to be picked up by a third-party trucking company to be delivered to the HUB of a common carrier who in turn ships it on its own trucks to Miami. When the shipment arrives to Miami, it has to be off loaded at the carrier’s hub and loaded on to another truck that will deliver to the final destination which happens to be a residence. If you were the customer, all you need to know is where is the shipment and when will it be delivered. The shipment in this case has been touched by 3 different trucking companies and 3 different warehouses. Most likely, they are not all part of the same network which means that if you want to get the details about the shipment, you might have to call each one individually. That is where digital shipping comes in.

If you work with a 3pl company in Miami, that implements block chain, all of the people that touched the shipments would have to enter a record showing where the shipment is, That record is time stamped and cannot be changed.

Why the move to Digital Shipping?

The obvious reason is having the correct information about the shipment at any time. A shipment originating in China on the way to the USA where the shipment is being handled by 10 different Logistics Companies, would be easily tracked no matter who has custody of the shipment.

Another reason is accuracy of information. The records are entered by the partner who has the cargo, not a third party. Any change is added immediately.

Another reason is time saving. You do not have to be calling different companies to find out where the shipment is. You know every move the cargo makes.

As the capabilities of Block Chain expands, shipping companies become more and more connected and contract adherence will be standard operating procedure.

Wouldn’t it be nice if all “Freight Forwarders are connected at all time”?

International 3PL is working on putting the power of Block chain to work for you.

Resources:

International Freight Forwarders

Block Chain shipping

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

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

If you plan on shipping to Europe, International 3PL offers  ocean freight services , air freight services and package delivery. Our services are fast and economical.

We can either pick up the cargo or you can deliver to one of our locations. With the required documents in place, we can deliver your cargo to many destinations in Europe. We offer door delivery services in many countries.

How shipping to Europe Works

E-mail us or call us with the following information:

1. Commodity
2. Dimensions and weight of each package or pallet you are shipping. in the case of full container loads, we require the total weight.
3. If you would like us to pick up, please provide the complete address.
4. Delivery point which could be the port, airport in the the country you are shipping to. in the case of door delivery, please provide the complete address.
5. Your shipping preference: Ocean or Air
6. Is insurance required.
7. When do you require the services.

Once we have above information, we will be able to send you a complete rate quote.

In addition to shipping to Europe, we can assist in shipping from Europe to the USA.

We are available via phone, E-mail: info@international3pl.com, or Via “Live chat” 

Or you can click on “Rate Request” 

resources:

3Pl Companies in Europe

Ocean freight to Europe  

Third party Logistics Companies in Miami