Causes of inflation:

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

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

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

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

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

New 5G Wireless technology promises to make everything connected. The Next Generation 5G wireless  will supercharge cell phones, but its real potential lies it potential to power everything electronic other than smart phones.

The New technology with greatly influence a technology hungry field like Logistics.

Right now, GPS is used to track trucking companies who carry shipments that are loaded on trucks, wouldn’t be nice to be able to track your pallet live knowing exactly where it is? 5G wireless promises to be faster with less latency.

Warehouses use RF ( Radio frequency ) to transmit data through the warehouse to track an package from the time the order is placed until the package leave the warehouse, providing weight, dims to the WMS system?  How would you like to have that data available live from the time the order is entered until the end user signs for it under one platform. Imagine that application being applied to international shipments too.

What we are looking at is your 3PL company being able to offer all the information about your package from the time you end an order to ship until it is delivered.

5G wireless promises to be the holy grail of logistics.

Factories have relied in wires for along time since wireless technology is spotty and slow making it hard for machines to perform their functions. Now factories will benefit from the speed of 5G technology so will the shipping companies.

We are looking at being able to track the container while at see without having to rely on the internet portal of the shipping company  Your will be able to see the location of your container live on a map even if it being trucked from one location to another.

But don’t hold your breath, you will not see the full power of this technology until probably 5 years from now as cellular providers complete building the network.

Ms. Krys Siles, a spokesperson for International 3PL, a Miami Based 3Pl Company, stated that implementing 5G wireless is a priority for international 3Pl and it will be applied to both the freight forwarding division  and Contract Logistics division.

5G wireless costs will be passed on to the consumers, all 5G Wireless devices will cost more. Right now it is a race with time for German and Chinese Businesses trying to upgrade to 5G.

If you are planning on buying a 5G capable phone, you should wait. it will be 2 years at least before there is in enough coverage. 5G is faster but has less capability of penetrating walls.

resources:

3Pl conpanies:

International Shipping

Freight Forwarders

Third party logistics Provides ( TPL Providers ) are companies that work with the owner of goods to outsource numerous components of it’s logistics to 3PL Providers that can perform the management function of the clients’ customs, inbound freight, distribution, warehousing, order fulfillment and outbound freight to the client’s customers .

Why Do Companies Use TPL Providers ?

Most companies selling or producing goods use a TPL Company for at least some domestic functions and nearly all global operations. That’s because third party logistic providers generate a range of benefits for companies who engage them.

Companies say they use 3PLs in order to:

Reduce current cost: Cost management is still the number one priority for shippers

3PLs often have scale advantage across their total operations.

Reduce future cost by leveraging the 3PL’s expertise and technology.

Improve customer satisfaction, with accurate order fulfilment and on-time delivery. The best 3PLs have real-time tracking and event management systems to provide real-time alerts when delays occur and are able to respond to change more rapidly and efficiently.

Provide global expertise. This includes documentation, customs, freight forwarding services, duty optimization, global airfreight, etc.

Reduce risk. This includes a range of risks like people risk.

Enable start-up. Logistics and the associated systems, along with labor acquisition, can involve significant capital requirements for a start-up operation. Even in an existing company, sufficient internal management resources may not be available to deploy this task. The 3PL can provide this support for a start-up operation.

Companies expect their 3PL to take direction, respond rapidly, and generate ideas for improvement. They further expect the 3PL to become a strategic partner in efficiently growing the business.

What Customer Service Capabilities Should a 3PL Company Have?

An efficient 3PL Company may get the job done, but if you focus on a provider that is known for why they operate, rather than how your overall experience will be much more pleasant.

A great 3PL has customer service capabilities that can reduce your workload in any way possible by offering a customer service team that is experienced in tracking, expediting, data procurement, reporting invoicing and auditing.

TPL Companies , Third Party Logistics Companies , or 3PL companies face continuous and evolving challenges in order to keep up with demand.

These days, many companies have outsourced their warehousing and distribution services to a 3PL Company.

To differentiate themselves, 3PLs are working to provide value, innovative solutions and information to facilitate data-driven decisions. 3PLs are also using technology and data to aid shippers in selecting the right shipment modes to maximize efficiency and reduce costs.

Major challenges facing TPL companies

• Finding New Talent
  The 3PL industry faces a challenge in the form of finding talent and this requires attention.. Most of the companies complain that it is very difficult to find the right candidates for the right vacancies.
• Rules and Regulations
  3PL companies need to stay informed of the new sets and regulations imposed by the different countries.. It is a challenging task,  for 3PL companies who try to cover as many markets as possible.
• Lack of Collaboration
  The lack of collaboration between the shippers, the carriers, and the end-customers can have an adverse effect on the smooth functioning of the supply chain. That is why keeping the lines of comuincation open is key to a successful relationship.

Other Challenges

• Meeting Requirements
  This is a major challenge that is faced by 3PL companies wherein in certain cases they are not able to meet the specific logistical needs of the shippers. The shippers are usually disappointed with some of the factors provided to them such as packaging, on-time delivery, customer service, etc.
• Lack of end user understanding.
  This is one key factor where 3PLs struggle with. Just imagine a customer who does not provide full scope of the work required and insists on changing the game plan on regular basis. Add to that the customer’s lack of knowledge of rules and regulations that 3PL companies have to abide by. In conclusion, the customer play a major role in the success of the cooperation with a 3PL company.

Due to the nature of the logistics industry, 3PL companies find themselves constantly battling customers, vendors and regulations to try to stay afloat. That is why, in the past,  most of the TPL companies tried to stick to one line of business such as freight forwarding or just transportation.

Furthermore , due to the nature of the relationship between end user and a 3PL company, common understanding on both sides is a must. if either side is not able to cooperate, the result is failure of the process