ShipCalm

Greg Moser — Mon, 11 Mar 2024 20:59:32 +0000

The days of consumers driving to retail outlets and selecting products from what’s available have faded in our rearview mirrors. That’s largely because e-commerce platforms exceeded $5.7 trillion in the U.S. last year and are expected to top $8 trillion by 2027. This trend has been a red flag for brick-and-mortar retailers and companies that rely on limited product supply chains. Omnichannel logistics has been trending high as decision-makers search for customer satisfaction solutions in a fast-evolving retail landscape.

What is Omnichannel Logistics?

Most retail store owners and operators are not necessarily immersed in software and technology-driven omnichannel logistics operations. To understand omnichannel logistics, it may be best to steer away from much of the confusing technical jargon and insider terminology.

Let’s consider a real-life scenario that your operation may have already experienced. Someone visits a brand’s website and is ready to purchase a product. They want to physically experience it. Noticing your outlet carries this brand, they travel to the store and discover it can only be ordered online. The annoyed customer not only goes somewhere else, but they also post a negative review about your operation. An omnichannel logistics approach avoids this unfortunate interaction by syncing your inventory and order fulfillment capabilities with in-store availability, online-only options, warehouse stock, and third-party partners. In other words, when potential customers see the item they want, they know precisely what to expect and how to get it. Integrating three or more product pathways typically results in an astonishing rise in orders, compared to outlets relying on a single channel. Today’s consumers are fully aware they can make purchases how and where they desire. The question is: Will those sales improve your bottom line or a competitor’s?

Benefits of Implementing Omnichannel Logistics for Retailers

Onboarding omnichannel logistical solutions differs significantly from other types of technology-based approaches to increased sales and increasing customer loyalty and satisfaction. Unlike programs that track inventory and manage revenue, it bundles the best aspects of wide-reaching digital retail tools into a highly efficient and unified sales driver. Ranked among the most cost-effective and scalable options available to retailers, an omnichannel distribution strategy helps mid-market companies level the playing field with e-commerce giants and big box competitors. When everyday people visit your outlet or website and make a successful purchase, they are far more likely to return. To accomplish the following seemingly Herculean feats in a global economy, omnichannel logistics is a necessity.

Seamless Customer Experience

Omnichannel places a laser focus on the customer experience. Rather than turn people away because you have a product on backorder, you can provide a seamless experience by leveraging third-party logistics options and working in concert with trading partners.

Increased Customer Satisfaction and Loyalty

There are a variety of ways that omnichannel supply chain solutions can maintain and improve customer loyalty. Inventory management precision can let people know you have a particular item. They can physically experience the product, or you can ship it to them directly. In another scenario, your logistical insight allows you to communicate when it will arrive. Lastly, you can check its supply chain position and pivot to another channel to complete the transaction satisfactorily. All of these customer-first approaches garner loyalty.

Improved Inventory Management

Knowing what you have in stock and estimating when to reorder doesn’t have to be a matter of guesswork. Today’s supply chain management is deeply immersed in IoT (Internet of Things) technologies. Small devices and tracking networks are available to growing retailers. By tapping into real-time data through omnichannel technology, you can pinpoint shipments. Knowing where products are located and how long they take to arrive at your loading dock is the only way to ensure consistent inventories. It also reduces costs associated with overstocked items.

Enhanced Order Fulfillment

To say short attention spans plague online consumers would be something of an understatement. When someone is on your platform, ready to check out and they receive a text message or social media notification, it’s not unusual for them to tap the screen and forget all about that impulse buy. The good news for omnichannel retailers is that the system can keep that item in the cart until they return. And once they check out, products do not necessarily have to come from your address. They can be shipped from the nearest third-party logistics partner.

Overcoming Common Challenges in Omnichannel Logistics

The greatest hurdle busy retailers face often involves maintaining a supply chain flush with products. Too often, store managers discover they cannot simply call or message their warehouse partner for quick delivery. Empty shelves, or the risks associated with overstocking, may be shrugged off as the only way to do business. Omnichannel logistics presents similar challenges for mid-level retailers who are not well-versed in the IoT approach.

Inventory Syncing and Management

The logistical challenges involved in maintaining a steady supply of goods and readying distribution points are genuine. Purchasers and other inventory decision-makers may feel overwhelmed by the prospect of managing stock across multiple channels. Syncing and managing inventory becomes a full-time job, particularly when it involves three or more channels.

Companies typically require third-party support to handle the changing landscape. Onboarding 3PL organizations at a scalable rate helps shepherd operations through busy periods and tap the brakes during seasonal lows. Working with 3PL professionals can resolve issues and help a brand keep promises such as “next-day delivery.�?/p>

Reverse Logistics and Returns Handling

E-commerce giants such as Amazon have won high praise for their ability to accept returns with a seamless process. Not only does the world’s largest digital retailer earn customer satisfaction props, but it also adds branding to the way it handles reverse logistics and returns. By contrast, many brick-and-mortar retailers only take returns at a physical location. Consumers once understood that was the only viable option. That ship has sailed. People in urban and suburban communities prefer to slap a label on the box and drop it at a convenient location. In rural areas, residents want to label returns and place them in the mailbox for a mail carrier. Onboarding a 3PL outfit to manage the shipping and tracking back through the supply chain helps companies compete on the return side of online sales. Third-party logistics organizations can manage this aspect as retailers address the scalable fees like any other pass-through cost.

Last-Mile Delivery Efficiency

Both e-commerce platforms and big box retailers address last-mile deliveries in essentially the same way. More extensive operations use a mix of employee delivery personnel and third-party partners. But for upstart and mid-sized retailers, doorstep delivery has been a thorn in their side. The omnichannel approach is an absolute game-changer in this regard. Some of the best last-mile order fulfillment strategies include working with third-party delivery companies and independent contractors. Your operation doesn’t have to suffer delays and missed sales opportunities. The technology is available to tap local companies and have them carry products on the last leg of their journey. It’s important to keep in mind that omnichannel logistics doesn’t just digitally pass the baton in a supply chain relay race. The next-gen approach also tracks inventory in real time, and the right 3PL operation can establish efficient regional and last-mile distribution routes. In a nutshell, omnichannel thought leadership is about doing it better, faster, and at a lower rate. Business professionals know precisely what that does for their P&L ledgers.

Best Practices for Successful Omnichannel Logistics

Leveraging omnichannel distribution methods does not happen in a vacuum. Real people drive the decision-making process. That’s why experienced professionals in the retail sector need to be involved, even when portions or the entire manufacturer-to-doorstop process are managed online. These rank among the best practices companies would be well served to consider when leveling up their operation.

Utilizing Data Analytics and Automation

The advanced analytics integrated into the omnichannel system provide critical data for inventory and sales decision-makers. Sales tracking information highlights product trends and customer demands, with intelligence articulating where, when, and how. A savvy purchasing agent or inventory administrator can also leverage automation to oversee consumer goods that are considered staples.

Seamless Integration of Physical and Digital Channels

Successful organizations typically understand their entire team needs to move as one to achieve goals. When departments or individuals do not necessarily buy into the brand’s approach, outliers can become a drag on efficiency and profitability. In many ways, an omnichannel strategy unifies almost every aspect of a retail business. It can track product movement from the manufacturing plant, tabulate warehouse stock, show what’s on the shelves at outlets, and pinpoint last-mile deliveries. The seamless integration of all these moving parts binds everything. A unified approach speaks volumes to the professionalism of the brand. That, in turn, helps build customer loyalty.

Providing Real-Time Shipment Tracking and Notifications

Although consumers generally expect products to arrive as anticipated, delays are a part of life. But what upends customer expectations and loyalty is not knowing when a late shipment will arrive. Part of the omnichannel solution is to provide prompt notification regarding shipments. Taking proactive measures to use automated notifications preempts what could be an otherwise angry customer.

Offering Flexible Delivery Options

Retailers cannot ignore the success Amazon enjoys through its multiple delivery options. Besides a fleet of drivers and third-party delivery services, it also uses standard mail and pick-up locations. Building out your delivery options through an omnichannel-based strategy mirrors the way large corporations grow their customer base and profits.

Financial Benefits of Omnichannel Logistics

We live and work in an environment that no longer supports the single-channel sales model. Even most grocery stores now allow customers to order online, pay digitally, and pick up their already-bagged goods. This buy-online, pick-up in-store model has spread across brick-and-mortar operations of all kinds. In 2020, this approach to “shopping�?increased by more than 100 percent in the U.S. and continues to gain popularity. It will likely have a significant influence across retailers in the coming years. Like supermarkets, other businesses can attract customers and enjoy the financial benefits that accompany omnichannel logistics systems. These are proven gains companies can expect.

Increased Revenue: The omnichannel approach improves customer satisfaction, leading to greater brand loyalty and repeat sales.
Reduced Costs: Adopting an omnichannel model tears down silos and minimizes an organization’s operational overhead.
Improved Conversion Rates: Omnichannel logistics positions your operation as the go-to resource due to seamless order fulfillment.
Scalability: Outsourcing to an omnichannel logistics provider can be balanced against seasonal highs and lows. That means it can represent a percentage of revenue.

Growing companies have an opportunity to compete with multinational corporations and expand by onboarding this innovative system. Whether you have plans to expand into new markets or dominate regional ones, omnichannel provides the competitive edge needed for goal achievement.

Case Studies: Successes in Omnichannel Logistics

There’s little disagreement regarding the results omnichannel logistics providers have played in high-profile operations. Walmart adopted the model as e-commerce giants took customers and profits away from their single-channel model. The fact mom-and-pop operations are filling orders for customer pick-up indicates the omnichannel future has already arrived. Retailers that want to flourish are tasked with integrating the omnichannel philosophy by working with a 3PL firm.

ShipCalm For Your Omnichannel 3PL Needs

ShipCalm’s omnichannel solutions create an efficient, cost-effective inventory management and order fulfillment process for retailers. We’re confident our scalable pricing options will serve your operation well. Contact us today, and let’s get the process started.

ShipCalm

Greg Moser — Mon, 04 Mar 2024 21:58:52 +0000

To say the order fulfillment expectations of consumers have evolved would be something of an understatement. The words “next day delivery�?resonate loudly, and not every retailer can make that promise. And if a customer cannot get a product within a week, they often buy it somewhere else. Enter omnichannel logistics and fulfillment, a technology-based opportunity for upstart and growing organizations to level the playing field. Omnichannel logistics and fulfillment strategies bring all the pieces of a company’s supply chain, warehousing, retail outlets, and last-mile delivery capabilities into a singular system. Operations that partner with a 3PL to integrate this infrastructure and real-time analytics are growing sales, improving efficiency, cutting costs, and building brand loyalty. If your business struggles to get products into people’s hands as quickly as they desire, an omnichannel fulfillment strategy may be the solution.

What is Omnichannel Fulfillment?

Omnichannel strategies bring together wide-reaching factors that go into the order fulfillment process. Utilizing omnichannel models syncs things such as shipping, receiving, warehousing, packaging, and last-mile delivery, among other things. Its ability to generate real-time data regarding fulfillment workflows and other processes allows business leaders to optimize efficiency and consumer satisfaction rates. An organization’s ability to centralize and automate its fulfillment processes separates it from outfits that rely on multiple parties communicating and relaying information. Rather than responding to customer needs after the fact, omnichannel order fulfillment takes a proactive approach to sales.

Why is Omnichannel Fulfillment Important?

The primary reason omnichannel fulfillment has emerged as a retail necessity stems from the fact that an increased number of consumers insist on a seamless buying experience. With e-commerce sales volumes in the U.S. expected to exceed $5.7 trillion by year’s end, platforms are struggling to keep pace with demand. Brick-and-mortar operations are also experiencing a buy-online, pick-up-in-store (BOPIS) trend that has them scrambling to meet local demand. Perhaps no retail niche has been more impacted by the BOPIS trend than supermarkets. Curbside pickup or bagged in-store options emerged as a new normal that began during the pandemic. Unless operations adopt cost-effective methods that streamline efficiency and meet consumer expectations, customers are inclined to pivot to competitors. Recent studies indicate that upwards of 83 percent of people consider how brands treat them in terms of meeting their expectations. Omnichannel fulfillment ensures a streamlined customer experience, by leveraging multiple pathways for comprehensive customer care. Utilizing this state-of-the-art approach drives profits higher and creates brand loyalty.

Components of Successful Omnichannel Fulfillment

It’s important to keep in mind that the omnichannel approach to order fulfillment is not necessarily a linear model. Rather than a business working directly with supply chain partners and delivery outfits, it positions your organization as the center of the order fulfillment universe. In an Astronomy 101 course, your business would be the sun, and third-party partners would move in its gravitational pull. By changing the way decision-makers think about workflows, supply chains, BOPIS, and doorstep delivery through omnichannel software, a retailer can successfully buoy sales and cut costs. These are ways retailers achieve goals by integrating omnichannel software and infrastructure.

Integration Across Channels

Customer experiences must consistently improve to compete in the local, regional, and global marketplace. During the last decade �?particularly since the pandemic �?logistics, purchasing options, customer communication, and delivery convenience have undergone seismic shifts. What highly profitable e-commerce platforms and big box retailers have succeeded at is syncing their moving parts.

Managing what consumers see as a back end to buying products, thought leaders are leveraging technologies that allow them to automate, track, and meet consumer expectations. This typically involves tapping multiple sales channels to get goods where they need to go quickly and cost-effectively. The use of omnichannel-focused software, technology, and the real-time analytics they create, allow companies to bring everything together.

Responsive Warehouse Management

It may seem counterintuitive, but omnichannel strategies are both ubiquitous in nature and affordably scalable. When speaking with an omnichannel fulfillment expert, you’ll discover that a responsive warehouse requires a proactive management system. Warehouse management success calls for a system that delivers real-time product and order tracking. But what separates the omnichannel approach from others is that the software and technology pull together the status of these and other elements across multiple channels. Companies that enhance their warehouse management operations in this fashion usually outsource to a 3PL firm and take advantage of scalable pass-through costs.

Integrated Inventory Management

Industry-leading omnichannel systems sync selling pathways through the entire chain and account for warehouse inventories. They also integrate reverse logistics when customers return products. Because the front-end outlet or digital platform enjoys continually replenished data, each channel works harmoniously with others. Inventory management is no longer the purview of a single department. All key stakeholders have access to immediate inventory data.

Challenges in Omnichannel Fulfillment

Anytime a business innovation comes along, there will typically be some growing pains. The Omnichannel fulfillment model is not necessarily any different in this regard. Companies that try to make wholesale changes may experience the following challenges.

Maintaining Accurate Inventory Counts

Initial setups call for organizations to provide accurate inventory counts before turning the proverbial “On�?switch. Once that hurdle has been cleared, omnichannel infrastructure can track products while maintaining accuracy.

Upgrading Infrastructure and Technology

Companies don’t always have the appropriate technologies to transition to an omnichannel system. Upgrading or shifting to better-suited software and technology may be required.

Streamlining the Supply Chain

Companies have changed the way they leverage supply chains since the pandemic. Widespread product shortages and delays hurt retailers even after the health emergency. Streamlining supply chains through near-shoring and tapping regional hubs are among the leading strategies to reduce fulfillment times.

The Role of Third-party Logistics (3PL) Partnerships

One of the primary reasons companies have yet to onboard efficiency-driving opportunities such as omnichannel logistics and fulfillment stems from a lack of trained personnel. A 2021 Garter study highlighted that 74 percent of logistics leaders planned to increase their 3PL budgets for 2022 and 2023. Third-party firms with expertise in niche processes help improve efficiency and customer satisfaction. In terms of omnichannel fulfillment services, scalable costs can be seamlessly passed through to consumers. These are other reasons to reach out to a 3PL when integrating profit-driving systems.

Leveraging Expertise and Resources

A 3PL has a staff fully committed to serving one end. Firms invest in the best people and their ongoing education. Companies that tap 3PLs get all the expertise and ongoing education at a fraction of the price it would cost to hire in-house staff.

Expertise in Compliance and Risk Management

A 3PL also ensures that every step of your fulfillment process meets or exceeds industry standards. Data security and regulatory compliance are mission-critical, given the number of vile hackers trolling the internet. Adding a 3PL partner takes some of the cybersecurity weight off your shoulders.

Cost-Effective Scaling and Flexibility

Third-party experts offer cost-effective solutions to fulfillment and inventory needs. Like retailers, they are in the customer satisfaction business, and you are their client. Maintaining a healthy professional relationship prompts 3PLs to offer scalable services. It’s not unusual for industry leaders to scale 3PL services up or down in conjunction with seasonal needs.

Financial Benefits of Omnichannel Fulfillment

Outsourcing an organization’s fulfillment needs to a 3PL firm proves financially beneficial to companies in a variety of ways. Like the omnichannel model itself, monetary gains do not necessarily occur in a linear fashion. Keeping your ledger sheet at the center of the business universe, companies enjoy cost savings as well as increased sales and profits. These are ways enterprises typically experience higher quarterly and annual earnings after settling into the omnichannel process.

Communication: The system improves communication with customers across platforms and devices. By alerting consumers in real time that items are available, sales increase. As products move through the supply chain, notifications keep people in the loop about delivery times. That type of real-time communication helps build brand loyalty.
Inventory Efficiency: When overstocked items linger in warehouses and store shelves, businesses too often have to sell them off at a discount. The automation and advanced tracking applications associated with omnichannel fulfillment reduce these human errors. In other words, it catches things like duplicate orders and purchasing more than is seasonally appropriate.
Cost Reductions: Some people are uncomfortable with the idea that AI and machine learning are replacing workers. The reality of business in the 21st Century is that technology and people must coexist. Omnichannel reduces the number of employees needed to constantly track merchandise and generate reports. However, the heightened sales and profits tend to increase the number of better-paying jobs.

Lastly, onboarding a 3PL to oversee omnichannel technologies doesn’t eat into an operation’s profits. Like other expenses, the scalable cost of outsourcing can be rolled into products and services.

ShipCalm: Your Omnichannel Fulfillment Partner

At ShipCalm, we provide third-party logistical support that includes omnichannel fulfillment. Our trained and dedicated experts work diligently with business leaders to integrate profit-driving solutions and help companies realize their full potential. Software integration, warehouse and order management systems, marketplace logistics, reverse supply chain oversight, and e-commerce fulfillment are just some of the reliable services a partnership with ShipCalm provides.

Final Thoughts

Evolving the way companies approach fulfillment through the omnichannel method is not a passing fancy. Meg-corporations such as Amazon and Walmart are already enjoying the brand loyalty, growth, and increased profits the process delivers. The question is whether you want to level the fulfillment playing field with Fortune 500 companies and gain an advantage over your immediate competitors. ShipCalm offers scalable options that make sense for growing businesses. If your operation would benefit from seamless connectivity, improved analytics, and customer loyalty, contact us today. Let’s get the omnichannel fulfillment process started.

Omnichannel Fulfillment FAQs

When making an informed decision about integrating next-gen analytics and logistics systems, it’s essential to understand precisely how they function and benefit your organization. Too often, misconceptions about omnichannel fulfillment’s role in critical processes blur a decision-maker’s vision. These are frequently asked questions industry leaders pose to 3PL experts about omnichannel fulfillment.

What are the benefits of implementing omnichannel fulfillment?

There are five key benefits business professionals tout after integrating omnichannel fulfillment strategies. These typically involve improved inventory management, concise reporting, brand positioning, customer loyalty, and greater profits.

How can retailers overcome inventory management challenges in omnichannel operations?

Retailers are not necessarily logistics and technology experts by trade. The common hurdles involved with pivoting to omnichannel fulfillment software and next-gen technologies are best handled by a third-party firm specializing in these areas. Companies that outsource to 3PLs enjoy scalable pricing that seamlessly fits into budgets.

Can small businesses implement effective omnichannel strategies?

When handled by a 3PL at a scalable rate, omnichannel strategies benefit companies of all sizes. What also makes this 3PL partnership invaluable is the fact that companies can increase their omnichannel bandwidth as they grow and reap financial benefits.

What role does technology play in successful omnichannel fulfillment?

When transitioning to omnichannel capabilities, it’s crucial to use compatible software and devices. Always consult with a 3PL expert to prepare company infrastructure for these upgrades.

How can retailers achieve a consistent brand experience across all channels?

Enterprises that onboard omnichannel logistics and fulfillment strategies build brand consistency, inventory visibility and trust. Consumers can access select brands across platforms, and shipments can be made from multiple locations to enhance consumer confidence.

What are some potential pitfalls to avoid in omnichannel fulfillment?

The greatest challenge involves connecting all the moving parts under the omnichannel umbrella. One example is not syncing brick-and-mortar fulfillment opportunities with those driven through an operation’s digital platform. Success requires comprehensively integrating every aspect of a retailer’s abilities and available products.

How does omnichannel fulfillment contribute to customer loyalty?

Omnichannel fulfillment augments customer loyalty because it helps companies meet consumer expectations. At the end of the day, customers want what they are purchasing within a promised time frame. Omnichannel allows businesses to take customer expectations and articulate the when, where, and how accurately. And when a hiccup occurs, buyers receive notifications alerting them in a timely fashion. That level of customer care and transparency adds value to any brand.

ShipCalm

Greg Moser — Wed, 13 Dec 2023 17:56:06 +0000

Warehouse kitting is an essential part of the order fulfillment process for eCommerce businesses today. Kitting allows brands to streamline operations and reduce costs by combining multiple, similar items into one kit or package.

Kitting has many benefits, including increased efficiency, improved order accuracy, maximized profit, and reduced customer wait times. Learn more about a kitting definition here, as we delve into the benefits of kitting in warehouse operations so you can see if it’s something you should consider.

What is Kitting?

Kitting is a component of the order fulfillment process that lets you package more than one item into single shipments for faster, cheaper, and more efficient shipping.

The full kitting meaning involves individually grouping items into one package for shipment, which helps reduce costs, increase sales, develop processes, and improve packaging and shipping.

Types of Kitting

There are two main types of kitting: logistics and warehouse kitting.

Logistics kitting involves grouping products for delivery from a manufacturer to a retailer or distributor.

Warehouse kitting involves packaging items for direct-to-consumer shipments.

Kitting in logistics

Logistics kitting sends goods from manufacturers to retailers or distributors in bulk.

This type of kit generally includes several different products grouped based on size, weight, shape, or other factors. Kitting allows items to be sent out as one shipment instead of individually packaged items.

Logistics kitting can save manufacturers on shipping costs since they won’t need to pay for separate packages for each item being sent. It can also reduce time and resources spent packing orders since multiple items can be bundled together quickly and easily before being shipped.

Kitting in warehouses

Warehouse kitting is packaging individual items into kits ready for direct-to-consumer shipments. This allows products to move directly from warehouses or distribution centers to homes or businesses without going through other intermediaries like retailers or distributors.

These kits can contain several related products that are generally purchased together. For example:

Accessories with electronics like chargers and cables
Clothing sets like shirts and pants
Food kits

Kitting vs Bundling

Kitting and bundling are both popular order fulfillment strategies used by eCommerce businesses. Each involves packaging multiple items together, but critical differences between the two can significantly affect how efficiently orders are fulfilled.

Kitting combines individual products into one “kit,�?or package, for sale to customers. Kitted items can be sold as-is or customized with additional components like instructions, labels, gift wrapping, etc. Kitting aims to reduce costs associated with picking and packing individual products separately while still providing customers with an attractive product offering.

Bundling, however, involves a similar grouping of products for sale at a discounted price compared to buying them individually. Bundles will include related items that complement each other well. For example, a bundle might consist of the following:

Shampoo and conditioner from the same brand
A set of kitchen utensils like spatulas, spoons, and tongs

By purchasing bundles instead of individual items, consumers get more value. At the same time, retailers increase sales volume by incentivizing larger purchases at once.

What Are the Benefits of Kitting?

Kitting helps with the organization while reducing costs, increasing sales, developing processes, and improving packaging and shipping.

Organization

Kitting lets brands organize inventory by grouping similar products in kits or bundles. This makes it easier to locate items quickly when fulfilling orders. It also ensures that all kit components are included in each order without manually checking every item before packing them up for shipment.

Reduce cost

By kitting products together instead of shipping them individually, brands can save on labor costs for picking and packing multiple items separately. There’s also the potential for savings on shipping costs when sending fewer total packages. Additionally, kitted products require less storage space than separate parts, so there can be savings on reduced warehouse rental fees too.

Increase sales

Bundling related products into one kit encourages customers to purchase more at once. Because they get a better deal than buying items separately, there’s a better chance of more being bought.

For example, selling phone cases and screen protectors together can mean higher sales. Many customers don’t want to deal with the hassle of trying to find compatible accessories or paying extra shipping charges for two separate orders.

Develop processes

Having standardized kits makes it easier to assemble packages before shipment. It means you �?or anyone else preparing items for shipment �?knows exactly what to include in each kit without any guesswork. The processes you can implement when using kitting will save time and ensure accuracy. Additionally, using barcodes on your kits drastically simplifies tracking shipments.

Improve packaging and shipping

When products are grouped into one package, you can eliminate the need for additional packaging. Less packaging means reduced waste and saving money on packaging supplies. Not to mention, lighter packages mean lower shipping rates, translating directly into cost savings over time.

The Kitting Process

Kitting groups products together to be shipped as a single unit, allowing for faster, more efficient shipping while reducing the cost of packing and shipping multiple items separately.

Step 1: Selecting products for kitting

The first step in kitting is selecting which products to group together. Think about how items will fit together in terms of size, weight, shape, etc. so they can all be packaged safely and securely within the same box or container. It’s also important to consider what packing material will work best for your product combination.

Step 2: Assembling kits

Once you’ve selected the products you want to include in each kit, it’s time to assemble. Depending on your needs, this could involve manually assembling each kit by hand or using automated equipment such as conveyor belts or robotic arms. If manual assembly is required, it’s important to ensure all items are properly packed before moving on to the next step. If anything comes loose during transit, it could damage or delay orders.

Step 3: Packaging and labeling kits

The final step before sending out orders is sealing and labeling kits correctly. This ensures products arrive at their destination safely and without delay. To do this effectively, you must choose appropriate packaging materials �?like bubble wrap or other filler �?based on size/weight/shape requirements. Then, to complete the process

Label each item clearly with its contents
Affix barcodes where necessary
Seal packages securely
Provide additional information (such as return addresses)

Once you complete these steps, your kitted items are ready for shipment.

Kitting Services

Kitting services from third-party logistics providers like ShipCalm make it easy for eCommerce business owners who ship products directly from a warehouse. Kitting can eliminate the manual labor involved with creating custom kits while reducing costs. As a result, shipments arrive quickly and accurately, every time.

Start Kitting Today with ShipCalm

ShipCalm offers kitting services for eCommerce businesses, so you can streamline your operation, increase sales, and save time packing orders. Take your order fulfillment processes up a notch today with ShipCalm’s comprehensive warehousing kitting solutions.

From simple kits with just a few items per box to complex assemblies requiring hundreds of parts per unit, let us help so every order reaches its destination safely and securely while saving you money.

Reach out today for pricing information and to learn how warehouse kitting and ShipCalm can help your eCommerce business succeed even further.

ShipCalm

Greg Moser — Mon, 06 Nov 2023 14:52:18 +0000

What is Cross Docking?

Cross docking is a strategy in the realm of logistics that aims to minimize product warehousing time. With this strategy, products are transferred directly from their inbound mode of transportation to outbound vehicles that will continue them along the supply chain with minimal to no storage time in between. This transfer between carriers generally takes place at a cross docking facility, where products are quickly sorted between inbound and outbound shipments’ docks for optimal delivery times and decreased time spent sitting in warehouses as non-moving inventory. Cross docking services can greatly reduce storage costs and supply chain inefficiencies, which is why many businesses are turning to third party logistics providers with cross-docking capabilities to boost their logistics operations and ultimately generate more revenue.

Key Principles of Cross Docking

There are a few main tenets that all cross-docking service providers follow. These fundamental principles are key to efficient cross docking practices and include:

Minimal handling time: Products should be quickly, safely, and efficiently moved from inbound dock to outbound dock with as little disruption as possible.
Streamlined processing: Products should be processed and accounted for with minimal downtime using the latest technologies and methods.
Reduced storage time: If possible, products should not need to be stored due to proper supply chain coordination. In the case that storage is necessary, that time should be optimally minimized.
Centralized facility locations: The service provider cross docking warehouse should be strategically located for efficient delivery times to high demand locations.
Clear communication: Operations should be transparent and communication avenues should always be available between all parties involved in the supply chain process.
Reliability and flexibility: Cross docking service providers should strive for the highest levels of reliability and should have protocol in place to adapt to changes or disruptions in supply and demand quickly and efficiently.

The History of Cross Docking

Cross docking traces its origins to World War II with the US military’s efforts to efficiently and effectively distribute supplies to troops without the need for extended periods of warehousing. This approach to logistics entered the retail side of business during the 1980s with the rise of Walmart, when the large-scale retailer implemented it as its core distribution strategy. With the perpetual advancement of technology, the process of cross docking has become more refined and widely used across a variety of different industries. Today, many third party logistics providers use this method of supply chain movement to streamline logistics for companies that otherwise wouldn’t have access to a cross dock facility. Cross docking is one of the most important aspects of the third party logistics industry, as the time it saves greatly reduces inventory costs and helps optimize supply chain efficiency for businesses across all sectors.

Types of Cross Docking

Cross docking is an umbrella term for the overall strategic movement of products from inbound to outbound transportation. The two main types of cross docking include:

Pre-Distribution Cross Docking

This type of cross docking occurs prior to products reaching a distribution center. In this cross dock warehouse terminal, products are quickly sorted and consolidated based on destination. This allows for a more efficient transportation of goods and ensures that products going to similar locations are grouped together for most optimal movement through the supply chain. This type of cross docking is concerned with the initial step along the supply chain where products are received from suppliers and sent via a single vehicle to the correct distribution center. Ideally, very little storage occurs during this type of cross docking, as the main goal is to move products further along the supply chain as quickly and efficiently as possible.

Post-Distribution Cross Docking

This type of cross docking occurs once products have been received at a distribution center. Here, products are received from inbound transportation and further sorted for distribution to final destinations. Products are also packaged and prepared more thoroughly during this process, with methods such as kitting being implemented in the case of direct-to-consumer shipments. The combination of pre-distribution and post-distribution cross docking makes it so that products are continually advanced along the supply chain without prolonged periods of storage.

Advantages of Cross Docking

Cross docking offers a myriad of advantages for product movement along the supply chain. These advantages include:

Reduced Costs and Time Savings

The intrinsic nature of cross docking drastically reduces inventory carrying costs. Cross docking aims to reduce the number of vehicles needed for product transportation by efficiently sorting and grouping packages bound for similar destinations. This results in much quicker turnaround times between order placement and receival, saving you both time and money.

Improved Efficiency and Productivity

Cross docking has revolutionized the efficiency and productivity of logistic operations. By streamlining supply chain movement, cross docking makes it so that there is rarely downtime between shipments, which ensures that employees are productive.

Faster Shipping and Receiving Times

It’s no secret that quicker delivery times result in happier customers. Cross docking helps to accelerate the overall movement of goods in and out of each facility along their journey from supplier to consumer. This results in your product reaching customers as quickly as possible, ultimately translating to more profits.

Less Inventory Holding Costs

Cross docking makes it so that products spend little to no time in storage and are instead in constant movement towards their eventual destination. This helps cut down on your storage costs and associated expenses, freeing up more capital for business growth and expansion.

Implementing Cross Docking Best Practices

When done correctly, cross docking is the most effective way to get your product in the hands of consumers as quickly as possible. For this to occur, third party logistics providers that offer cross dock services must uphold themselves to the highest industry standards and best practices. Proper implementation of cross docking involves:

Effective Facility Design for Cross Docking Operations

The layout and infrastructure of cross docking facilities must be optimized for maximum efficiency. This means that facilities are designed for the most optimal and quickest movement of packages from one mode of transportation to the next. This aspect of cross docking operations is key to successful implementation, as the actual facility itself needs to be built for the reduction of product downtime and storage.

Optimizing Supply Chain Collaboration

Communication and collaboration are essential to successful cross docking operations. One of the core principles of a cross docking operation is effective coordination of transportation. This means that communication between suppliers, carriers, and retailers or consumers is clear and effective. By optimizing collaboration between the various parties involved throughout the supply chain, cross docking facilities and third party logistics providers ensure that product movement is streamlined.

Utilizing Advanced Technology and Automation

The use of cutting edge technology is crucial in the realm of logistics. Cross docking facilities must be outfitted with the latest innovations like barcode scanning, RFID, and automated systems to keep up with the logistical needs of the businesses they serve. The use of advanced technology and automation increases facility productivity and cuts down on human error.

Challenges and Risks of Cross Docking

Like with any other industry, there are challenges and risks involved in the process of cross docking. This means that choosing a third party logistics provider that is experienced with the methods of cross docking and able to adapt to any unforeseen circumstances is vital. Some of the challenges involved with cross docking include:

Managing Logistics and Transportation

Multiple carrier services are often used throughout the process of cross docking and in the movement of goods along the supply chain. This can sometimes result in difficulties with coordinating transportation schedules, especially when there are disruptions along certain legs of the supply chain. A reputable cross docking service provider will know how to adapt to these disruptions with minimal delay to your product’s overall shipping time.

Ensuring Accuracy and Quality Control

Cross docking is a rapid process, as it is mainly concerned with moving products as quickly as possible. This means that cross docking facilities have to have protocol in place that makes sure products are accurately sorted as they move from location to location. Quality control is also key to the successful transfer of products during the cross docking process, as mishandled packages can result in broken or damaged goods.

Addressing Potential Delays and Disruptions

Weather conditions, road construction, crashes, and other potential delays are always of concern to cross docking service providers. This is why experienced providers have strategies prepared for when unexpected disruptions occur. These strategies include real-time tracking, diversified suppliers, contingency planning, clear communication channels, and buffer stock in the event of product shortages or fluctuating periods of demand.

Industries that Benefit from Cross Docking

All different types of industries can benefit from cross docking if their product demand is high enough. That being said, some of the main industries that can benefit from cross docking include:

Retail and E-commerce

Retail and e-commerce often come with fast-paced demands for products. Retailers with physical storefronts need to keep their products in stock and often don’t have large inventory storage capabilities. This is where the drastically reduced delivery times provided by cross docking help these types of businesses meet their consumers demands. With e-commerce based businesses, cross docking helps move products directly from suppliers to consumers in the most efficient and timely manner possible. This is crucial, as lengthy delivery times can ruin the growth and success of e-commerce businesses.

Manufacturing and Distribution

Manufacturing and distribution businesses rely on cross docking to support just-in-time (JIT) production. JIT production involves delivering raw materials or components to facilities exactly when they are needed, which cuts down on storage time and costs. This helps maximize the efficiency of their production process while simultaneously saving them money.

Food and Beverage

Cross docking is essential for the transportation of perishable goods. From the second any food or beverage product leaves its supplier, the quality of the product is immediately in jeopardy. Cross docking helps these types of products move as quickly through the supply chain as possible while maintaining their freshness.

Future Trends in Cross Docking

The ever-advancing nature of technology supports future trends and innovations in cross docking and logistic operations. Some of these future trends include:

Internet of Things (IoT) in Cross Docking Operations

IoT devices are becoming increasingly necessary in cross docking operations, as they help to support real-time monitoring and data analysis. These types of non-standard computing hardware increase the transparency of the various supply chain operations and help analyze data about product movement to improve the overall efficiency of cross docking facilities.

Artificial Intelligence (AI) and Machine Learning

AI and machine learning are becoming more popular in cross docking operations because of their ability to provide predictive analytics. These predictions can be used to optimize cross docking methods for increased productivity, as well as help cross docking service providers prepare for fluctuations in supply and demand.

Robotics and Automation in Cross Docking Facilities

Robotics and automation are frequently used in cross docking facilities because of their reliability and minimization of errors. By automating the sorting and packaging processes within the distribution centers and cross docking facilities, products are more accurately and efficiently moved through the supply chain.

FAQs

What is the main goal of cross docking in supply chain management?

The main goal of cross docking is to streamline the movement of goods throughout the supply chain while minimizing storage time. In doing so, cross docking helps to reduce overall storage costs, enhance the efficiency of product transportation, and expedite the process of order fulfillment.

How does pre-distribution cross docking differ from post-distribution cross docking?

Pre-distribution cross docking occurs prior to products arriving at a distribution center, whereas post-distribution cross docking occurs after receival by a fulfillment center and involves the sorting and preparation of products before delivery to final destination.

What are the key benefits of cross docking for retailers?

Retailers need to keep up with changing customer demands and need to be able to quickly restock a variety of different products. Cross docking allows for this while simultaneously reducing inventory holding costs.

Can cross docking work for industries with strict quality control, like food and beverage?

Yes. Cross docking can be used for industries like food and beverage that have strict quality control. Careful monitoring and frequent quality checks should be in place at cross docking facilities to ensure product freshness.

How does collaboration with suppliers and carriers impact the success of cross docking operations?

Successful cross docking operations rely on effective collaboration with suppliers and carriers. Through open and clear communication, cross docking operations prevent delays and maximize efficiency.

What role does technology play in cross docking?

Technology like barcode scanning, RFID, AI, robotics, and automation help to enhance the accuracy, real-time tracking, and predictive analytics of cross docking operations. These innovations are essential for success and growth within the industry.

What are the potential challenges in managing logistics and transportation for cross docking?

Careful planning and adaptability are necessary to combat challenges with the coordination of transportation schedules, the management of potential delays, and the protection from supply chain disruptions in cross docking operations.

How can companies address accuracy issues during rapid transfers in cross docking facilities?

To avoid issues with accuracy during rapid transfers, cross docking companies can implement strict quality control procedures, utilize automation and robotic technology, and provide intensive training for employees.

Are there instances where cross docking might not be suitable?

While cross docking can benefit most companies, it may not be suitable for products that require abnormally high levels of quality checks, extremely specialized storage conditions, or in instances where suppliers and retailers have limited coordination abilities.

What are some future trends in cross docking operations?

Future trends in cross docking operations include the integration of IoT devices for more accurate real-time tracking, increased usage of AI and machine learning for predictive analytics, and further enhancements and incorporation of robotics and automation within facilities.

Conclusion

Cross docking is crucial to modern supply chain management. By cutting down on storage time and streamlining the movement of products from supplier to consumer, cross docking can help you save money while simultaneously increasing customer satisfaction. At ShipCalm, our third party logistics services come implemented with cross docking capabilities, which means that you can trust us to handle your logistics operations with the highest level of speed, care, and efficiency. Contact us today for pricing and to learn more about how we can use cross docking to increase your business�?growth, reach, and profit.

ShipCalm

Greg Moser — Fri, 20 Oct 2023 19:01:56 +0000

Third party logistics (3PL) providers are companies that provide outsourced logistics and supply chain management services to businesses looking for hands-off product management and supply chain solutions. These services envelop a variety of different tasks including transportation, warehousing, inventory management, packaging, and order fulfillment. In the modern business landscape, outsourcing these tasks can help businesses focus on their core operations and improve supply chain efficiency while saving on time and costs.

Third party logistics is highly relevant in today’s fast-paced and global marketplace, as it allows businesses to meet customer demands quicker and more effectively. One of the most important aspects of third party logistics is warehousing and distribution services, as these services ensure merchandise is housed and delivered to consumers in a safe and optimized manner.

What is 3PL Warehousing & Distribution

Third party warehousing and distribution refers to the outsourced services provided by a third party logistics company that encompass the storage (warehousing) and movement of goods (distribution) within a supply chain. With warehousing, third party logistics companies generally provide storage, inventory management, and order fulfillment services. Distribution usually encompasses transportation management, route optimization, carrier selection, and tracking and reporting services. By hiring a third party logistics service provider to handle these aspects of the supply chain, businesses are able to redirect their in-house focus on productivity and growth.

3PLs first emerged in the 1970s primarily offering transportation and warehousing services, but overtime have evolved into dynamic companies that offer a wide range of different services. In response to technological advancements and contemporary business demands, 3PLs now offer in-depth data analytics, real-time product tracking, and advanced inventory management services among other highly beneficial services.

The Role of 3PL in Warehousing and Distribution

The warehousing and distribution services covered by 3PLs are centered around the storage and movement of goods. Under the umbrella of warehousing, the main functions and responsibilities of 3PLs include:

Storage�?Providing space and protection for merchandise prior to shipment in a third party logistics warehouse.
Inventory Management�?Monitoring inventory levels and ensuring accurate projections for future inventory needs.
Order Fulfillment�?Picking, packaging, and preparing all orders for shipment to consumers or retailers.

Under the umbrella of distribution, the main functions and responsibilities of 3PLs include:

Transportation Management�?Coordinating the overall transportation of goods between locations, which may include organizing cross-docking or freight forwarding.
Route Optimization�?Planning the most efficient methods and courses of transportation to ensure timely deliveries and minimized shipping costs.
Carrier Selection�?Negotiating with carrier services to find the most efficient and reliable providers at the most optimal price.
Tracking and Reporting�?Employing cutting-edge software to provide real-time tracking abilities and data analytics to further refine future decision-making.

A good 3PL company should be an expert in the field of storing and moving products. By outsourcing these responsibilities to a 3PL, businesses are able to optimize their supply chain efficiency and better meet customer expectations. The logistical side of supply chain management can be complex and time-consuming, 3PLs alleviate this problem and allow companies to focus on developing better products and producing more revenue.

Benefits of Outsourcing Warehousing and Distribution

Businesses rarely want to worry about the logistics of warehousing and distribution when getting off the ground and into a profitable position. 3PL distribution services offer a solution to this headache which allows businesses to focus on what really matters�?their product. By outsourcing warehousing and distribution processes, businesses are able to save time, reduce costs, and improve overall operational efficiency.

Streamlining Operations with a 3PL Partner

By partnering with a third party logistics provider, businesses are able to streamline their logistics operations and improve the efficiency of their logistics without needing extensive knowledge of the current storage and shipping landscape. Navigating the intricacies of this side of business can be time-consuming and difficult. 3PLs have extensive expertise with handling warehousing and distribution, as well as resources that may not be available to companies that are just getting started. Partnering with a 3PL takes care of the logistical side of a company’s business plan and allows for an overall streamlined approach to increasing growth and earnings.

Efficiency and Cost Savings through 3PL Services

3PLs are able to leverage their expertise and find the most optimal logistics solutions at the lowest possible price. Experienced 3PLs have access to deals and agreements with other service providers that companies may not be privy to, which helps increase companies�?overall cost savings. By providing optimized logistics services, 3PLs can make businesses more efficient and put products in the hands of customers more quickly. There’s a reason that 90% of fortune 500 companies partner with 3PLs. It’s clear that the logistics industry is revolutionizing the efficiency of the entire supply chain.

Focus on Core Competencies and Business Growth

Outsourcing non-core functions like warehousing and distribution to 3PL providers allows companies the ability to focus on their core competencies. There is a definite strategic advantage to being able to apply more time and resources on driving growth and increasing profitability. Partnering with a 3PL provides this advantage by allowing businesses to concentrate on these aspects of their operations rather than worry about logistics.

Warehousing and Distribution 3PL Services

It is clear that 3PLs have many responsibilities when it comes to the warehousing and distribution services that they provide. These services play a critical role in the overall efficiency of a business�?supply chain.

Inventory Management and Control

3PLs use the best in contemporary warehouse management software (WMS) to control and optimize stock levels. With a precise understanding of inventory needs, 3PLs are able to reduce carrying costs and efficiently manage inventory levels so that businesses save money on storage prices and always have products readily available for shipment.

Order Fulfillment and Distribution

Order fulfillment encompasses the picking, packing, and shipping of inventory items. 3PLs play a pivotal role in the execution of this process by employing highly trained teams that ensure products are handled with care and speed. 3PLs work directly with carrier service providers to find businesses the best options available for cost-effective and timely deliveries.

Warehousing and Storage Solutions

3PLs provide access to storage solutions for a wide range of different product types. Whether products require storage in simple 3PL centers, cold storage facilities, or hazmat warehouses, 3PLs provide businesses with the most cost-effective solutions that ensure products will be kept fresh and safeguarded.

Value-Added Services in 3PL

If desired, 3PLs offer a variety of additional services that can be highly beneficial. These services are generally aimed at enhancing the customer experience and increasing customer satisfaction. They include:

Package labeling
Kitting
Repackaging
Return and exchange services

Technology Integration for Seamless Operations

With the perpetual advancement of technology, effective 3PLs have to stay up to date with the latest softwares and applications associated with logistics. With the overall goal being seamless operations, optimized efficiency, and supply chain visibility, 3PL providers integrate technologies like warehouse management software (WMS), Radio frequency identification (RFID), and robotic/automated systems into their operations.

Trends and Innovations in 3PL Warehousing and Distribution

The advancement of technology has brought about a myriad of trends and innovations in the realm of 3PL warehousing and distribution. These innovations have all increased the efficiency and productivity of 3PL operations, ultimately saving companies on time and cost.

The Impact of E-commerce on 3PL

The massive influx of e-commerce based businesses has had a major impact on 3PL services. With many businesses being entirely web-based, the need for 3PLs to handle the logistical side of operations has increased. It no longer makes sense for businesses that operate online to deal with logistics on their own. The increased demand for online shopping has provided many opportunities for 3PLs to expand their services and provide support for companies on a much larger scale.

Omnichannel Distribution Strategies

Omnichannel distribution is the concept of providing customers with multiple sales channels for buying and receiving products that are seamlessly integrated. This means customers can purchase a product online and return or exchange the product in store if desired. Many businesses have adopted this distribution strategy which has caused third party logistics providers to adapt their operations in order to accommodate this new style of distribution. Omnichannel distribution can result in increased sales, efficiency, and customer satisfaction if done correctly through the right 3PL. Some examples of companies with successful implementation of omnichannel distribution include Amazon, Disney, Target, and Walmart.

Automation and Robotics in Warehousing

Automation and robotics have taken on a growing importance in modern 3PL warehouses. These innovations allow for an increase in efficiency and a decrease in human error. While they can be expensive to implement, they seem to be trending towards a long-term cost effective solution for 3PLs. While there is considerable controversy surrounding the replacement of human workers with robotic machines, these automated tools are designed to streamline menial tasks and increase the overall productivity of storage facilities.

Real-Time Tracking and Supply Chain Visibility

Supply chain visibility has become a top priority for consumers in today’s digital world. People want to know where their products are and exactly when they will receive them. 3PLs have introduced high-tech tracking technologies into their supply chain solutions that allow customers and suppliers real-time updates from the 3PL distribution center to the consumer’s doorstep on all orders. This helps provide all parties involved with better insights and control over their shipments.

Choosing the Right 3PL Partner

Just like with any other industry, there are a plethora of 3PL partners that you can choose from. The trick is picking the one that best suits your needs, goals, and scope of operations. It is always a good idea to consider all options available before making any final decisions. Choosing the right 3PL partner can be the difference between going under and making your business profitable. Let’s look at some of the main factors you should consider when selecting a provider, the key elements you should assess when looking at a 3PL’s warehousing capabilities, and the significance that scalability and flexibility have on your overall decision.

Factors to Consider in Selecting a 3PL Provider

Regardless of the size or type of your business, there are universal factors that are essential for consideration when selecting a 3PL service provider. These factors include:

Industry experience�?/b> Your 3PL partner should have extensive experience providing service within your industry. While newer 3PL companies may offer enticing rates, and larger more well known companies may seem more attractive, it’s always better to go with a service provider that has a proven track record of success with businesses similar to your own.

Overall Capabilities�?/b> You need to know up front what your potential 3PL’s overall capabilities are. All successful businesses have growth and increased profitability in mind, you need to make sure that your 3PL partner is able to accommodate your growth and expansion. If global commerce is a goal your business has set, make sure your 3PL partner is able to accommodate this objective.

Reputation�?Much of the logistics side of business involves interacting with other service providers that help put your product in the hands of consumers. Partnering with a reputable 3PL is of the utmost importance for ensuring customer satisfaction and smooth operations.

Technical integration�?/b> There’s no doubt that technology is going to perpetually advance, and your 3PL needs to understand this. A good 3PL partner will already be using whatever cutting edge technology is available at the moment, and will also have their eyes set on how they can improve their operations with future technology once it’s released.

Assessing 3PL Warehousing Capabilities

Warehousing is a large component of 3PL services. Assessing a 3PL’s warehousing capabilities is crucial to choosing the right partner for your specific and unique business needs. Be sure to consider what types of facilities your 3PL partner has access to and if they are suitable for the storage of your product. Also consider their location in relation to your primary shipping destinations, and what types of technologies their warehouses use and how that may affect overall supply chain efficiency.

Scalability and Flexibility in Distribution

Be sure to consider your potential 3PL partner’s ability to scale and adapt to your distribution needs. If your product has seasonal popularity, you’ll want to make sure your 3PL is able to handle and efficiently adapt to fluctuating demand. The right 3PL partner will have an intimate understanding of your business and will offer adaptable solutions to accommodate your growth.

Final Thoughts

Partnering with a 3PL service provider is one of the best ways you can optimize your business�?efficiency and increase your overall cost-savings. With the rising popularity of e-commerce, finding the right 3PL to help your business scale and grow is crucial. Warehousing and distribution are two of the most important aspects of your 3PL partner’s responsibilities. Finding a 3PL partner that can accommodate your warehousing and distribution needs efficiently and effectively can help streamline your business operations and increase your overall profitability. With the never-ceasing advancement of technology, 3PL service providers are only becoming more relevant and necessary. There’s no doubt that partnering with a 3PL is the way of the future.

Get Started with ShipCalm Today!

ShipCalm is your go-to 3PL service provider. With years of experience and a lengthy track record of success across a wide range of industries, our services are sure to help your business grow and prosper. Reach out today for a free consultation and learn how we can help you streamline your logistics and increase revenue. We’re here to be the 3PL partner your business needs.

ShipCalm

ShipCalm — Tue, 17 Oct 2023 16:03:52 +0000
CARLSBAD, Calif.– While residents of Lahaina, Maui are still recovering from the deadliest American wildfire in a century, those on the mainland continue to collect and send donations and much-needed supplies. However, organizing logistics and transportation and managing the volume of donations have been an ongoing challenge.
In an effort to help ease the pains of sending supplies to Maui, ShipCalm, an e-Commerce fulfillment and third-party logistics provider, recently partnered with two small businesses in North County San Diego to ensure donations landed directly in the hands of Lahaina locals.
The move comes after a successful donation drive at Carlsbad Brewing Co., where local residents donated items such as clothing, backpacks, towels, and toys. About 50 extra-large Igloo coolers were also donated, and were filled with the items and shipped to Maui, and distributed by a local boutique, Driftwood.
“People in our community really rallied and wanted to donate new items for families in Lahaina,�?said Ally Lopez, a North Shore Maui native who co-led the donation drive and is owner of Oceanside, Calif.-based branding company Band of Martians. “This was a wonderful example of North County businesses coming together to support Lahaina, and it was a way for us to connect back home and know that we can make an impact for our families and friends back on the island.�?/p> Lopez, who originally set up a GoFundMe campaign to raise funds for shipping costs, was connected to ShipCalm after searching for the most efficient and affordable way to send the donations to Maui.
“The shipping costs to Hawaii are astronomical, so it’s pretty incredible that companies like ShipCalm supported our efforts,�?she said. “We could not have done it without ShipCalm.�?/p>
ShipCalm, known for its SaaS AI platform, SmartWarehouses, covered the $5,000 worth of shipping costs to send the coolers and donations to Maui. ShipCalm worked with its partner, Approved Forwarding, to load the pallets and ensure all the shipping needs and logistics were handled properly and efficiently.

“Our expertise in shipping and logistics allows us to quickly navigate the time-pressed nature of disaster relief,�?said ShipCalm CEO Greg Moser, who also has close ties to Maui. “It’s one thing to ship a box or two to Hawaii, but it’s another thing to ship 20 pallets of goods and organize trucking companies and boats. Removing that barrier to the donations was an added benefit we could provide.�?/p>
“Any time we can leverage our professional expertise to streamline the amazing work that others are doing, it’s a win-win,�?Moser added. “We did it because we knew it would reduce the friction on getting these much-needed items directly to Lahaina residents.�?/p>
About ShipCalm
ShipCalm is an e-Commerce fulfillment and third-party logistics provider headquartered in Carlsbad, Calif. Founded in 2017, ShipCalm provides a number of logistics services aimed at helping online businesses solve their shipping problems. ShipCalm provides solutions for e-Commerce business owners with Amazon FBA prep, reverse logistics, kitting, packing and assembly, as well as e-Commerce shipping and warehousing. As the world-leading 3PO, ShipCalm provides complete operational solutions to digitally native brands, including a third-party operations platform that streamlines traditional operations with data and powerful AI.

ShipCalm

Greg Moser — Mon, 16 Oct 2023 18:34:43 +0000

Logistics refers to the side of business concerned with how products move from supplier to customer. Efficient logistical management is crucial to successful business operations. However, this process can oftentimes be arduous and time consuming to coordinate smoothly. As a result, many companies now offer Logistics Management Services in today’s modern business world.

What is logistics management? These services center around the overall orchestration of supply chain activities and aim to take the stress of logistics off the shoulders of businesses, allowing them to focus on more important aspects of their operations like growth and profitability.

What are Logistics Management Services?

Logistics management services are centered around supply chain activities. These activities pertain to all aspects of a product’s journey from supplier to consumer. This includes:

Procurement�?Acquiring products from wholesalers or manufacturing partners

Transportation�?/b> Optimally moving products along the supply chain

Warehousing�?/b> Safely storing products and regulating inventory for fluctuating demands

Distribution�?/b> Working with carrier services to determine the quickest and cheapest options for product delivery

A quality logistics management service provider will ensure efficiency and effectiveness at every step along the supply chain. Their goal is to optimize the flow of products so that cost is minimized while still maintaining customer satisfaction. By working closely with businesses, logistic management service providers are also able to provide valuable insights into inventory analytics that can help their partners scale and grow more efficiently.

The Importance of Logistics Management in Business Operations

Effective logistics management is at the heart of any business�?overall success. Sure, creating a product that people want to buy is important, but if that product can’t be put in the hands of consumers in a way that supports profitability then it is bound to fail. In addition to supporting profitability and keeping costs under control, effective logistics management has a direct effect on customer satisfaction and product competitiveness.

When it comes to customer satisfaction, it’s no secret that consumers want their products to always be in stock and arrive at their doorstep as quickly as possible. Effectively managing inventory and negotiating the quickest delivery times are core responsibilities of logistics management companies.

With regards to product competitiveness, if a logistics management service provider is able to lower a company’s logistics costs and order fulfillment times, that company is then able to lower the sales price of their product and get their product to consumers quicker than their competitors. With lower prices and quicker delivery times, that company’s product becomes much more desirable to consumers.

Given that most modern businesses have already recognized the importance of logistics management services, it’s no surprise that the global logistics market is projected to reach $16,794.7 billion by 2032.

Trends and Innovations in Logistics Management Services

Given the ever-improving nature of technology, logistics management companies are always incorporating cutting-edge innovations into their services to keep up with their competitors. The dynamic nature of the logistics industry is highlighted by some of the latest trends, including:

AI-driven predictive analytics�?The use of machine learning and complex algorithms to determine what products will succeed/fail within a given market and timeframe.

Blockchain-based transparency�?The shift towards cryptocurrency as the legal tender for business transactions to ensure full transparency on public ledger.

Drone usage for last-mile deliveries�?The rising incorporation of pilotless vehicles in the final stretch of the supply chain.

Robotics in warehousing�?The automation of menial and repetitive tasks which improve warehouse efficiency and cut down on human error.

Real-time tracking devices�?The fitting of all transportation vehicles within the supply chain with tracking devices that allow suppliers and customers real-time updates on the status of their deliveries.

The global nature of logistics management demands innovation. There will always be room for improvement and optimization within supply chains, thus logistics management companies will always need to stay up to date with the latest technological developments and trends.

Benefits of Hiring Logistics Management Services

By hiring a logistics management service, companies are able to outsource the headache of logistics and focus their in-house resources on what really matters�?improving products and increasing profits. Some of the key benefits associated with hiring a logistics management service provider include:

Improved Efficiency and Cost-Effectiveness

By employing a professional third-party logistics management team, businesses are able to streamline their overall operational process, which leads to increased productivity and reduced costs across the board. Logistics management companies are experts within the field of product movement, storage, and distribution, which means they are able to provide advice and guidance on supply chain flow that most businesses aren’t aware of.

Streamlined Supply Chain Processes

Logistics management companies help to enhance the overall efficiency of a company’s supply chain processes. By incorporating cutting-edge technologies into their services, logistics management companies increase supply chain visibility and streamline product movement from supplier to consumer. With the help of data analytics tools, logistics management companies are also able to help minimize delays and enable businesses to make agile decisions that work towards increasing overall efficiency and profit margins.

Enhanced Customer Satisfaction

Customer satisfaction is arguably the most important aspect of any business�?logistical operations. Cost efficiency and product safety are crucial, but if customers are not satisfied with their ordering experience then profitability will be heavily affected. Logistic management companies aim to optimize delivery times which results in happy, and potentially repeat, customers. Logistic management service providers recognize that products need to arrive in the most timely manner possible and structure their operations and cost analysis around this tenet of logistics. Many logistics management companies also offer return/exchange solutions which help increase the effectiveness of a business�?customer service department.

Key Capabilities of Logistics Management Services

While logistics management is an umbrella term for all of the responsibilities associated with supply chain flow and product movement, logistic management service providers have a number of key capabilities that make them highly beneficial and sought after for all types of businesses.

Freight Forwarding and Transportation

Logistics providers have the ability to coordinate complex global transportation networks that guarantee the efficient movement of goods. Freight forwarding refers to the movement of goods across international borders, often from cargo ships to warehouses and fulfillment facilities. Navigating the intricacies of international shipments is often an involved and multifaceted process. Having an experienced logistics provider helps alleviate the stress of product transportation on a global scale.

Inventory Management and Warehousing

Logistic management service providers use state-of-the-art software and data analytics to help businesses understand optimal inventory levels. They also have access to a wide range of different types of storage facilities, which ensures that products are housed safely and handled with proper procedure. Proper storage and management of inventory is crucial to a successful supply chain flow, especially during times of high demand and fluctuation.

Order Fulfillment and Distribution:

Quality logistics providers have order fulfillment and distribution capabilities that can accommodate the size and growth of any business. Whether a business is just starting out or is firmly established in the market, logistics providers are able to meet the demands of their customers and efficiently distribute goods to locations worldwide. Many logistics providers offer advanced fulfillment services like customizable packaging options, kitting (grouping multiple orders into single packages for cost-effective distribution), and repackaging options. Additionally, logistics providers work intimately with a wide range of different carrier services, which provides businesses with savings on distribution costs that they otherwise may not have access to.

Final Thoughts

Logistics management services are crucial for success in today’s rapidly evolving business landscape. Outsourcing the logistical side of your business�?operations helps increase customer satisfaction, cost-savings, and overall productivity. Partnering with an experienced logistics management service provider can help your business optimize its supply chain flow for maximum efficiency and effectiveness. Global capabilities are a must for any business that wants to thrive and grow towards increased profitability, and logistics management services are able to provide your business with the means to put your product in the hands of more people worldwide.

Start With ShipCalm Today!

ShipCalm’s logistics management services are proven to help businesses handle logistical operations smoothly and efficiently. With our industry expertise and commitment to innovation, we’re here to optimize your supply chain and help drive your business towards a successful and profitable future. Contact us today to learn more about how a partnership with ShipCalm can alleviate logistical stress and increase earnings.

ShipCalm

Greg Moser — Wed, 16 Aug 2023 15:10:11 +0000
CARLSBAD, Calif.– As smaller, next generation e-Commerce businesses continue to struggle with logistics, they need more comprehensive solutions to not only compete but to also keep up with rapidly growing demand.
ShipCalm, an e-Commerce fulfillment and third-party logistics provider, has announced it will use a recent $2 million financing round to help small-to-medium-sized businesses (SMBs) further solve these operational challenges.

The recent funding from Montage Capital is also expected to help fuel ShipCalm’s next stage of growth as it expands into new territories and reaches more targeted consumers. ShipCalm will also add as many as 30 new positions over the next 12 months, including hires in technology, sales and marketing, and operations.

“ShipCalm is the only operational provider in the industry serving a true Omni-Channel business approach for SMBs,�?said CEO Greg Moser. “As customer acquisition costs rise for direct-to-consumer business models, brands need to turn to wholesaling their products into national retail chains earlier than ever, and there are almost no service providers to support these emerging brands at this critical moment in their development. These funds will allow ShipCalm to continue to scale up its network and service offerings to meet an ever-growing demand.�?/p>
Many digitally native brands are challenged with running their omni-channel operations, including data/intelligence, logistics and general operations. ShipCalm’s SaaS AI platform, SmartWarehouses, and professional services help ease these pain points.
“I believe that vendors in the industry will continue to bring more tech-enabled, value-added services to their clients in the next several years. ShipCalm has only scratched the surface in providing things like data/analytics and business intelligence to assist clients in demand forecasting, shipping optimization, and return management, to name a few,�?said Mike Rose, Managing Director,
Montage Capital. “ShipCalm has deep domain expertise that offers native e-Commerce customers a turnkey solution leveraging software, logistics, real estate, data/analytics, and other services that allow its customers to focus on what they do best — design unique products targeted across multiple industries/sectors and across a wide number of domestic and international geographies.�?/p>
With the e-Commerce logistics industry expected to grow to $1.4 trillion in 2027 at a CAGR of 20%, ShipCalm is poised to become a key market player for SMBs.
ShipCalm has a long history of rapid revenue growth and has continued that trend by growing over 40% just in Q2 over Q1 of 2023 alone. “We anticipate 2024 will be another triple-digit revenue growth year and couldn’t be more excited about it,�?Moser said.
About ShipCalm

ShipCalm is an e-Commerce fulfillment and third-party logistics provider headquartered in Carlsbad, Calif. Founded in 2017, ShipCalm provides a number of logistics services aimed at helping online businesses solve their shipping problems. ShipCalm provides solutions for e-Commerce business owners with Amazon FBA prep, reverse logistics, kitting, packing and assembly, as well as e-Commerce shipping and warehousing. As the world-leading 3PO, ShipCalm provides complete operational solutions to digitally native brands, including a third-party operations platform that streamlines traditional operations with data and powerful AI. More information at //srvpub.com/.

About Montage Capital

Montage Capital provides minimally dilutive growth debt to capital efficient companies with at least $3 million in annual revenue. Montage is uniquely positioned as a less dilutive alternative to equity financing, with the experience to offer guidance typical of equity investors. Montage is often the first institutional investor in a company, but Montage also supports venture or private equity-backed companies without requiring a concurrent equity investment. More information at //www.montagecapital.com/.

ShipCalm

Greg Moser — Wed, 07 Jun 2023 17:58:40 +0000
It may come as something of a surprise, but more than 60 percent of companies outsource their logistics needs annually. Third party logistics (3PL) providers offer a wide range of services that facilitate and oversee things such as the transportation of goods and materials, order fulfillment, warehousing, and aspects of information technology, among many others. Rather than invest your hard-earned profits into finding real estate and becoming experts in warehouse operations, or developing a fleet of trucks, or spending valuable time brokering freight transportation deals, companies can outsource part, or all, of their logistics needs to 3PLs. This strategy allows growing businesses to take advantage of lower costs and improve efficiencies. By understanding precisely what a 3PL does and how that impacts your operation, you will be able to make an informed decision about partnering with a third party logistics provider.
Table of Contents

What is 3PL logistics?

What are the Benefits of Working with a 3PL?

Types of 3PL Logistics

Choosing the Right 3PL Provider

Top 3PL Providers of 2023

Top Locations of 3PL Providers

Third-party logistics (3PL) FAQs

What is 3PL logistics?
The more pertinent question may be: What does a 3PL do? A 3PL organization provides services that involve the management and movement of goods and materials through supply chains, as well as storage and order fulfillment. The term �?PL�?tends to be something of a catchall phrase that refers to a company hiring a logistics firm to oversee aspects of its procurement and customer fulfillment. A third party logistics provider involved in the shipping process orchestrates the loading of cargo, sets up pickups at port, and schedules delivery. One of the ways a shipping 3PL operation ensures the freight doesn’t get lost or mishandled is by tracking the items through the supply chain. The best companies use IoT logistics technologies to know precisely where an item is located at any given time. Because third-party logistics applies to every stage of the supply chain, 3PL examples are abundant in fulfillment as well. Let’s consider how a magazine publisher typically approaches the post-production portion of its business. Once copies come off the press, rarely do publishing companies get involved in the delivery process. Instead, they outsource the work to one or more 3PLs. Trucks are loaded with the products and shipped to a warehouse. That’s where other commercial motor vehicles may pick up pallets of magazines and transport them to a distribution hub. From there, delivery vans drop off the bundles consumers see in supermarkets and bookstores, among others. Some 3PLs possess fleets and warehouses to manage transportation and distribution. Others work with a network of reliable outfits that handle portions of the fulfillment process. That being said, when people ask: what are third party logistics? The answer is: The best way to outsource the transportation and delivery of any given good or material.
What are the benefits of working with a 3PL?

Outsourcing tasks to third parties has become a common practice across industries. This concept is in no way restricted to the services 3PLs offer. For instance, a Deloitte study indicated that 67 percent of corporate executives raised their outsourcing budgets over the last two years. More than half of those increases were for managed services, such as IT and logistics, and 32 percent of decision-makers added to their traditional outsourcing budgets. Again, those budget line items include third party logistics.
In today’s global business landscape, companies can either invest and oversee supply chain infrastructure across continents or hire 3PLs that have established transportation contacts in place. By working with a dependable third party logistics provider, companies enjoy the following benefits.
1. Cost Efficiency
By leveraging the expertise of 3PLs, businesses are able to reduce their overhead and pass along costs. Anyone who followed the impact the soaring price of semi-truck diesel had on the cost of goods and materials in 2022 understands transportation expenses are typically passed along in the supply chain. While that may not seem like good news to consumers, the use of a logistics 3PL ends up saving companies and working families money. A 3rd party logistics operation can offer virtually any business a one-stop opportunity for all its shipping, warehousing, and fulfillment needs. By packaging the cost of all these facets, a top third party logistics company or firm is able to minimize the cost to large, small, and mid-sized enterprises. It’s important to keep in mind that 3PLs are also in constant competition with each other, forcing them to streamline the cost of services. When a business enlists the services of a 3 party logistics operation, the company doesn’t have to invest in trucks, drivers, warehouse space, and its own logistics team to oversee shipments and deliveries. The primary reason why the third-party logistics industry grows each year is that it is the most cost-effective way for businesses to move goods and products.
2. Scalability
Onboarding the help of a third-party logistics provider allows companies to avoid taking on expenses that would drive up the cost of goods and services. Outsourcing also creates an opportunity to choose only the niche tasks it needs to be handled during a given time period. A logistics 3PL typically works out agreements that may involve spot, monthly, seasonal, or ongoing services, and rates. The best logistics firms are also open to flexible contracts that let the business increase, decrease, or shift its shipping, warehousing, and fulfillment as needed. That, in turn, makes the relationship scalable in terms of budgeting. Scalable 3PL examples may include an agricultural operation that experiences peak transportation needs during the harvest and only minimal services after sowing crops. Retailers generally increase shipping 3PL services during late summer and early fall to swell inventories ahead of the gift-giving holidays. Of course, some prefer to start earlier and stockpile popular items to ensure a thorough supply of products that are expected to be in high demand. The point is that 3PL logistics providers offer a scalable service that coincides with profit-driving endeavors.
3. Focus on Core Competencies
Companies, particularly those run by entrepreneurs, outsource a wide range of their business activities. The idea behind this is that company leaders are more likely to succeed when they apply their expertise to the big picture goals of the business rather than the day-to-day tasks that can be easily outsourced. For example, a startup that has the capacity to offer quality goods and services at a lower cost doesn’t benefit from overseeing its own warehouse, managed IT services or deliveries moving through the supply chain. By maintaining a laser focus on internal efficiency, productivity, and customer satisfaction, small and mid-sized ventures can compete with big corporations. Success involves doing something better and cheaper than competitors. Leveraging 3PL third party logistics furthers that goal.
Types of 3PL Logistics
Third party logistics organizations provide a niche service driven by their expertise as supply chain management professionals and industry experience. The professionals who run these operations have specialized knowledge about supply chains, cargo shipping costs, and storage, and know how to sync freight transportation resources that include container vessels, air cargo, freight rail, trucking, and last-stop delivery, among others. That being said, not all 3PLs offer comprehensive services. Some prefer to focus on specific areas, making them specialists within the niche logistics sector. These are the types of 3PL logistics companies to consider when looking to outsource.
Transportation-Based 3PL
When business professionals hear the term “transportation logistics,�?they often conceive of it in the broadest sense. That generally involves a kind of soup-to-nuts service of moving freight from a manufacturing plant or point of origin all the way through the supply chain. While a transportation-based 3PL logistics operation does oversee the movement of items through the supply chain, it tends to focus on getting something from Point A to Point B. A transportation-based 3PL manages inbound and outbound freight for an enterprise. It’s not uncommon to work with less-than-truckload (LTL) or truckload freight carriers, depending on the most cost-effective way to move items. It’s also not uncommon to work with a 3PL that provides boat or rail service but most companies tend to work through a freight forwarder who organizes multiple transportation 3PLs for a given shipment when boat or rail are involved. This is because most shipments that need to go over the water also need trucking at both the place of origin as well as the destination. More on freight forwarders below. These services are generally a boon for local and regional operations. The benefits of outsourcing to transportation 3PLs include problem-solving, troubleshooting, reliability, technology integration, and cost savings and efficiency. Outsourcing transportation needs saves companies an enormous amount of time, money, and energy.
Warehousing and Distribution-Based 3PL
Retailers once wondered what is third-party logistics doing in business-to-business (B2B) or business-to-customer (B2C) warehousing, distribution, and fulfillment. With e-commerce now dominating the consumer shopping market, the ability to transport goods and materials overnight has made 3PLs an invaluable resource.
Firms that focus on warehousing and distribution are able to disburse overhead expenses through their scalable service contracts. This co-op model reduces the cost individual companies would incur if they were required to build or lease storage facilities, purchase a fleet of commercial vehicles, and hire full-time Commercial Driver’s License (CDL) holders and equipment operators. Those costs would only be exacerbated by needing an in-house team to oversee the movement of goods and materials.
When a third party logistics firm takes on warehousing and distribution services, it usually deploys state-of-the-art technologies and IoT tracking for B2B and B2C fulfillment.
Forwarding-Based 3PL
Rather than concern itself with warehousing and the final destination of consumer goods, forwarding-based 3PLs utilize a vast network of air, rail, cargo vessels, and trucks to move select goods and materials. These organizations usually have steadfast business relationships and may offer discounted rates with freight transportation partners. The service provided by a shipping 3PL, for example, involves linking each part of the transportation puzzle together in a cost-effective fashion. The business model of forwarding-based 3PLs involves linking seemingly distinct supply chain facets together into an integrated and efficient network. Customers gain streamlined shipments only because logistics experts are able to bring supply chain management, operations and infrastructure together.
Choosing the Right 3PL Provider
It’s important for growing companies to keep in mind that outsourcing is a type of partnership. Unlike hiring a pest control service to eradicate nuisances in a brick-and-mortar facility, 3PLs have a significant impact on B2B and B2C relationships. That’s largely because clients, customers, and businesses in your orbit do not distinguish the delivery and fulfillment provided by a third party logistics provider and your organization. Needless to say, a small or mid-sized company can suffer a reputational hit to its brand by working with the wrong 3PL logistics or fulfillment company. You will be, at least temporarily, giving up control over aspects of your shipping, receiving, storage, and fulfillment elements. In the hands of a disorganized provider, delayed shipments can disrupt profit-driving processes and cost you customers. Companies that offer below-normal logistics rates may work with truckers or freight carriers with shoddy safety records. Last-mile delivery providers sometimes hire less than professional drivers as well. The wide-reaching problems with quality control, communication, and workplace culture can blow back on an otherwise highly professional organization. That’s why it’s crucial to work with a reputable and reliable 3PL logistics provider that delivers the following.
Experience and Expertise
The complexities of the supply chain have only increased due to overseas manufacturing and shipments. Companies that sell once Made in USA products now rely on cargo vessels to make their way through the Suez Canal and offload at sometimes backlogged American ports. Trade wars and the imposition of tariffs have caused further supply chain changes in recent years. Products once made in China and Southeast Asia are being manufactured in Mexico and Central America. When global forces prompt corporations to alter their manufacturing and distribution models, local companies need 3PLs that can seamlessly change freight transportation. Top 3PLs have the people and multinational shipping contacts to ensure your business doesn’t unnecessarily suffer delays. Instead of someone in your organization spending days tracking down a new freight transportation companion and brokering a deal, third party logistics experts simply reroute orders to one of their other international, regional, or local partners. That’s the type of experience and expertise small, mid-sized, and large corporations need from a 3PL.
Technology and Tools
In many ways, the best third party logistics operations are technology-centric. They utilize next-generation software, applications, and the Cloud to communicate with boots-on-the-ground shippers and delivery professionals. Digital tools also allow 3PLs to leverage IoT devices and monitor the movement of goods and materials throughout the supply chain. These are types of information technology the top third party logistics companies and providers use.

Electronic Data Interchange: Used for computer-to-computer document exchanges, EDI effectively replaces inefficient snail mail, faxes, and even email. Providers that integrate EDI technologies enjoy an information flow that sends documents directly from one computer to another. Along with improved time management, EDI also reduces errors.

Application Programming Interface: An API is a type of software that allows two programs to communicate directly with one another. This differs from common apps that transfer information to a server that performs a task and sends it back to an electronic device. Along with time efficiency, the use of API technology delivers robust security and governance benefits.

The most prevalent technology 3PLs use tends to be the Cloud. The use of on-site servers and physical hard drives often proves inefficient by comparison. That’s because Cloud-based operations don’t suffer the network crashes and glitches associated with physical systems.
Cost
The advanced technologies and automation employed by 3PLs are only the tip of the cost-saving benefits enjoyed by outsourcing. Top providers negotiate bulk rates with ocean shipping corporations, freight carriers, rail, and air cargo. They also have discounted warehousing deals in place to lower costs across the entire supply chain further. Organizations that outsource parts, or all, of their logistical needs to 3PLs benefit from the lower costs determined by volume. There’s virtually no way that a small or mid-sized company could negotiate down to the rate a prominent third party logistics provider enjoys. Even if that were possible, your company would need to make an ongoing investment in the tools, trucks, personnel, and technology required to get products from Point A to Point B on time.
Top 3PL Providers of 2023

Ranking the top 3PL providers in any given year calls for decisions that may not necessarily speak to the quality of services. ShipCalm, for example, offers integrations for 3PL support with some of the world’s most recognized operations. These include Amazon, FedEx, Walmart, UPS, Shopify, and the U.S. Postal Service. These integrations and more seem to make ShipCalm the 3PL of 3PLs.
Organizations such as the American Trucking Associations rank the following freight carriers as the Top 10 3PLs based on gross revenue: C.H. Robinson Worldwide, Expeditors International of Washington, Kuehne + Nagel Americas, UPS Supply Chain Solutions, J.B. Hunt Transport Services, GXO Logistics, DSV A/S, Total Quality Logistics, and Uber Freight.
Research and analytics organizations such as Gartner consider metrics such as company size, industry, and region when determining the Top 3PLs of 2023. A list based on logistics in Europe, Africa, and the Middle East puts the following 3PLs in the Top 10.

Kuehne + Nagel International Logistics Services

DHL Supply Chain International Logistics Services

FedEx Logistics Supply Chain Services

Yusen Logistics International

Ceva International Logistics Services

A.P. Moller �?Maersk Supply Chain and Logistics Services

Kuehne + Nagel Transportation-Related Services

Bollore Logistics (SDV) International Logistics Services

Agility International Logistics Services

DSV International Logistics Services

What’s important to companies looking to onboard a third party logistics partner is the organization can deftly manage your current needs and has the bandwidth to grow with you.
Top Locations of 3PL Providers
China and the United States are the largest third party logistics markets. The revenue 3PLs generate in the U.S. alone is projected to exceed $287 billion by year’s end. That figure is expected to be north of $317 billion by 2027. The U.S. generates the largest revenue volume of any nation and that position is not expected to change during the next five years.
The third party logistics landscape in China runs a relatively close second to the U.S. The Asia economic power is expected to generate $276 billion in 2023 and upwards of $309 billion by 2027.

Top e-commerce companies using outsourced 3PL Logistics in 2023
While many of the e-commerce giants have their own last-mile delivery trucks and tractor-trailers with splashy logos, the fact is that these retailers outsource. Seasonal spikes in demand, such as the winter holidays require additional logistical support. Services such as freight forwarding, order fulfillment, reverse logistics, and transportation are among the most sought-after 3PL services. Studies indicate that upwards of 80 percent of Fortune 500 and 96 percent of Fortune 100 companies rely on 3PLs¹. Household name organizations such as Walmart, Publix, and Amazon routinely make the list.
Third-party logistics (3PL) FAQs

What Services do 3PL Providers offer?
The types of services 3PLs offer differ considerably from company to company. It’s not unusual for third party logistics providers to specialize in a niche area of the supply chain. That being said, organizations that fall into this category offer one, some, or all of the following services.

Procurement: This entails orders and overseeing the shipping and receiving of goods and materials across the supply chain.

Order Fulfillment: Third party logistics organizations routinely handle the packaging and delivery of products for retailers and wholesalers. This has become common practice in the e-commerce industry.

Warehousing: Storage has emerged as a significant part of the 3PL logistics industry. Providers may lease or own space and offer warehouse square footage to select clients.

Transportation: The shipping of goods across the supply chain remains a primary service offered by 3PLs. This involves trucking, container vessel shipments, air cargo, and freight rail, among others. It’s the bread and butter of the sector.

There are also several lesser-known services 3PLs offer, such as IT systems integration, data exchange, reverse logistics, and inventory management, to name a few. The top third party logistics providers are able to handle a variety of things that are related to the movement of goods across the supply chain.
What is 3PL vs. 4PL?

Although fourth-party logistics (4PL) providers offer many of the same services as their 3PL counterparts, there are significant differences. The primary difference is that 4PLs are usually established as joint ventures for the purpose of planning logistics needs between the parties. Third party logistics providers handle actual delivery, storage, and transportation.

What is 3PL vs. 2PL?
Unlike 3PLs, second-party logistics (2PL) operations are companies that own the assets used to store and transport goods and materials. A trucking company or carrier like FedEx or USPS would be good examples of 2PLs.
What is 3PL vs. Freight Forwarding?
Freight forwarding is essentially a service that gets goods and materials from Point A to Point B. Those who provide this option manage the movement of their clients�?goods and materials through the supply chain using things such as cargo vessels, truck transportation, or rail, among others. This is how logistics service providers often leverage business relationships to reduce costs. A third party logistics firm generally provides a broader array of services. However, a 3PL also offers freight forwarding as part of its scalable ongoing or spot services.
What is an Example of 3PL Logistics?
United Parcel Service (UPS) is a good example of a third party logistics firm. The corporation provides services such as freight forwarding, last-mile delivery, as well as air and truck transportation, among others. UPS also ranks among the top warehousing companies, which supports its 3PL services.
Is Amazon a 3PL or 4PL?
Amazon considers itself a 3PL, based on its Fulfillment by Amazon and Amazon Multi-Channel Fulfillment businesses. As a logistics leader, it has more than 200 fulfillment centers and 200 million square feet of warehouse space. The general public operates under the impression businesses must sell on the e-commerce platform to take advantage of its logistics network. But truth be told, Amazon is willing to provide its order fulfillment center, inventory management, reverse logistics, and expedited shipping to outside organizations. That’s largely what makes Amazon more of a 3PL than a 4PL.
Is FedEx Considered a 3PL?
FedEx ranks among the largest traditional 3PLs. It offers soup-to-nuts logistics services such as warehousing, fulfillment, distribution, transportation, and reverse logistics, among others. FedEx reportedly enjoys a logistics network with a footprint in more than 220 countries.
Conclusion
The growth of the 3PL market would not be surging unless companies were enjoying the benefits of outsourcing. Third party logistics providers have established global transportation networks and the ability to pinpoint where your order is at any given time. And the services that support local and regional order fulfillment and reverse logistics cannot be replicated without incurring prohibitive costs. Working with a 3PL is the best way to grow your operation in a budget-friendly and scalable fashion.
Looking to outsource your fulfillment or find a new fulfillment provider?

ShipCalm provides industry-leading 3PL services along with operations management specifically designed for Digitally Native Brands and E-Commerce Companies that streamline supply chain efficiency and lower costs. Our fulfillment services utilize next-gen technology and deliver exceptional customer care. We provide logistical solutions that allow you to focus on core business endeavors and goal achievement. Check out our comprehensive suite of services and contact us for scalable pricing options.

¹Source: Armstrong & Associates

ShipCalm

Greg Moser — Mon, 01 May 2023 18:55:51 +0000

Shipping goods safely and securely is a priority for any eCommerce business or brand that ships product. Whether you’re shipping locally or across the country, or around the globe, dunnage can help protect your products from damage during transit. But exactly what is dunnage?

Whether you’re looking to find out what does dunnage mean, or you’re wondering if and why you should use it, or you’re just curious about types and options, we’re sharing why considering dunnage is a critical part of addressing your shipment needs.

Make sure all your products arrive in perfect condition, every shipment, by using the right dunnage packaging when and how you should. Read on to learn more.

What is Dunnage? Dunnage Meaning

Dunnage describes materials and methods used to protect goods during shipping. It’s an important concept for any business that ships products to customers. Dunnage helps ensure the safe arrival of every product and item you ship. It can include anything from foam inserts and bubble wrap to cardboard dividers and wooden pallets.

The goal is always the same: use dunnage packaging to secure your product so it arrives at its destination in perfect condition.

Who Should Use Dunnage?

Any business that ships products should consider using dunnage. This includes large-scale operations, like Amazon, and smaller businesses, such as Etsy sellers or independent online stores. Dunnage protects against bumps, jostles, vibrations, and any other hazard encountered during transit that might damage a shipment and disappoint your customer.

Why Use Dunnage?

The primary reason for using dunnage is product safety and customer satisfaction. Dunnage prevents goods from being damaged while in transit by providing cushioning around them and preventing them from shifting inside.

Additionally, dunnage can help reduce costs associated with returns due to damage caused by improper packing or inadequate protection during shipping �?these cost savings can add up quickly over time.

Finally, proper use of dunnage also ensures compliance with regulations by carriers regarding how packages must be packed before they’re accepted for shipment (for example, certain types of containers may require additional padding).

The right dunnage can offer:

Moisture protection

Damage protection

Shock absorption

Protect products

Reduce returns

Package products faster

Types of Shipping Dunnage

There are many dunnage options available, and the right one just depends on the type of product being shipped and its destination (domestic or international). The trick is finding a combination that provides sufficient protection without adding too much weight or bulkiness (which can negatively impact your shipping cost, reducing your revenue substantially).

Types of shipping dunnage include:

Bubble wrap: one of the most popular types of dunnage for fragile items such as glassware or electronics; also great for keeping dust out.

Solid plastic �?can be used to create custom shapes that fit snugly around any product, ensuring they stay put during transport

Air pillows �?lightweight but provide excellent cushioning for small items like jewelry or other delicate objects

Wood chips �?often used when shipping heavy items like furniture due to the ability to absorb shocks and vibrations that may damage products in transit

Foam inserts/pads �?another excellent option for protecting fragile goods since it molds easily around whatever item you need to ship, without adding too much weight or bulkiness packages

Packing peanuts �?ideal for filling up empty spaces inside packages so nothing shifts during transportation, which could lead to damage

Kraft paper �?provides an eco-friendly solution when packing smaller items such as books or clothing since it’s made from recycled materials and can be reused multiple times before needing replacing �?making it a cost-effective choice too

Corrugated paper/cardboard dividers �?good when you need more strength than kraft paper but still want something lightweight enough to not add too much weight; perfect if you need something sturdier than kraft paper but don’t want anything overly bulky

Plastic film �?wraps tightly around products offering lightweight waterproof protection

Steel �?provides maximum security against impacts, from racks to platforms, dunnage steel can protect and support heavy or bulky products when flimsy options just won’t do (although this type of dunnage does come at a higher price point compared with other options available on the market)

Custom options: available if standard solutions suit your needs perfectly �?just make sure you check with your 3PL provider first before investing in any specialized equipment

ShipCalm Offers Dunnage Solutions

Dunnage is an essential part of the shipping process. Understanding its different types and uses can help eCommerce business owners ensure products are shipped safely.

At ShipCalm, we understand the importance of shipments arriving safely at their destination. That’s why we offer a variety of solutions to protect goods during transit, including custom-made foam inserts and bubble wraps, pre-made cardboard dividers, and wooden crates/pallets designed for specific applications and needs.

Curious about pricing? Have any questions about our services? Contact us today – we look forward to helping you get your products shipped securely.