How to Reduce Freight Cost

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

FDA Approved Warehouses

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

Digital Shipping

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

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

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

The Best 3Pl Companies

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

The true meaning of Logistics

The term logistics remains an enigma, many people associate the term logistics with shipping. By definition logistics is the movement of goods or services from point A to point B however, the definition fails to add on all the other activities needed to facilitate such movement including custom clearance, drayage and final delivery to point B

To make matters more confusing, we have terms such as supply chain and procurement that are used in its place of logistics.  Too set the record straight, logistics, shipping, transportation, etc. are part of the supply chain umbrella and then came the term “third party logistics” which people somehow associate with warehousing.

The first 3PL companies started it out as freight forwarders who opened warehousing and delivery and then expanded to other services.

Any warehousing company or trucking company can call itself a 3PL that is why you need to check the services that company offers.

A true 3PL company offers a multitude of services such as:

  1. Ocean and air freight services
  2. Inland transportation
  3. Order fulfillment or pick and pack
  4. Warehousing services
  5. Cross dock services
  6. Customs clearance
  7. Packaging services
  8. Inventory control

Lately, many associate the term 3PL with order fulfillment.

Now, keep in mind that not all 3PL companies are created equal. In reality, only a few of the 3PL companies that show up on search engine searches are a true 3PL company; most of them just offer warehousing services.

A 3PL company should be able to take over your day to day fulfillment needs.

After a careful research you will find out, hopefully not the hard way, that only a few can deliver a solution.

A true 3PL company should be able to pick up the goods from your vendor and deliver them to the end user transparently with a continues flow of goods and information.

In a time where online shopping is blooming, thanks to Amazon, many small to medium size companies are outsourcing their fulfillment services to 3PL companies taking advantage of their expertise and off course cutting the operational cost.