December 3, 2013

A lot of talk in the shipping industry over the last few days has focused on the announcment from Amazon that drone shipping could be coming to an urban area near you. While it is an exciting premise, it does take out a part of the shipping industry that can be important - people.

In a recent blog post for Cerasis, Steve Norall states that having proper freight and shipping management is about more than just getting products from "point A" to "point B." It is more about people and relationships.

Like having a doctor that has treated you for several years, dealing with reliable individuals in shipping can make the process much easier for businesses to handle. Sitting down with someone that is able to clearly communicate the plan and any contingencies, sets proper expectations of the entire process and makes sure everyone involved understands the tactical steps can quell any anxiety that someone could have about shipping.

"Proper freight management, like life, boils down to confidence," Norall wrote. "Good people who focus on relationships, treating the shipper like a person, and focus on value and outcomes, will make you the shipper confident."

The human element can never be overlooked, especially when it comes to shipping. Even with automated systems, there are people that work in the warehouses and are behind the wheel of the delivery trucks that play a major role in the success of every shipment. Having a reliable workforce that takes pride in their role makes quality third party logistic firms stand out.

December 2 2013

The future of shipping is here. In reality it is more likely five plus years away, but a plan is in place to revolutionize the way consumers receive packages once they order online.

Earlier this year, this blog covered the possibility of drones could being used to deliver packages. It was more of a pipedream and something that is being tested overseas. FAA regulations alone are a major hurdle that the service would need to overcome to be successful.

However, on a recent edition of CBS's "60 Minutes," Amazon CEO Jeff Bezos unveiled the company's plan to use the flying machines to deliver packages. Known as "octocopters," the devices can carry up to five pounds, which is 86 percent of their business, to any location within a 10-mile radius of a fulfillment center.

Shipments could be completed within 30 minutes. This model of service would only be effective in urban areas that have a dense population in a 10-mile radius.

"The hard part here is putting in all the redundancy, all the reliability, all the systems you need to say, 'look, this thing can't land on somebody's head while they're walking around their neighborhood,'" Bezos said. "And, you know, I don't want anybody to think this is just around the corner. This is years of additional work from this point."

Companies do not need to worry about drones becoming a standard part of shipping anytime soon, but it is something that organizations should be aware of. Logistics and deliveries are a crucial component to every business and organizations need to ensure they are optimized, which a third party solution provider can handle.

December 2 2013

When it comes to Black Friday shopping, most people think about the mass hysteria that comes with 1 a.m. openings and "door buster deals." It is easy to see why this is the case, as it is the scene that nearly every news outlet plays B-roll footage of when talking about the busiest shopping season of the year.

However, many consumers avoided the hassle of getting to the mall and replaced it with online shopping. According to a report from Bloomberg, e-commerce spending on Black Friday increased 15 percent to set a record of $1.2 billion.

The article cites a study by ComScore Inc., which found the total amount spent online during the first 29 days of holiday shopping is $20.6 billion. That is an increase of 3.1 percent when compared to this time frame (November 1 through Black Friday) last year. On Thanksgiving alone, online purchases rose 21 percent to $766 million.

"While Black Friday — and now Thanksgiving Day — is the traditional kickoff to the brick-and-mortar holiday shopping season, both days continue to grow in importance on the online channel," ComScore Chairman Gian Fulgoni said in a statement. "Many consumers prefer to avoid the crowds and lines typically associated with Black Friday by shopping from the comfort of their own homes, and we saw a record 66 million Americans do that this year."

According to the National Retail Federation, 140 million shoppers were expected to use online means to make a purchase during the Black Friday weekend. On that day alone, the number was expected to be 97 million consumers.

A report from the International Business Times found that over the last four days online shopping revenue reached $3 billion, with nearly $2 billion happen on Friday alone. This would be an increase of 39 percent over the same time frame last year.

E-commerce changing retailers approach to Black Friday

Retailers have realized the power that comes with online shopping. A recent eHoliday survey from Prosper Insights & Analytics found that 51.1 percent of retail responders said they plan to start their online sales five days before the big weekend. On top of that, 53.3 percent said they offer deals specifically for the weekend.

While this makes it clear that merchants need to start focusing on improving their e-commerce solutions, there is another part of business that also needs to be optimized for consumers to have a good experience with online shopping - shipping. Nearly every item that is purchased online needs to be physically packaged and shipped from a warehouse or storage location.

With many of these products being purchased under a time crunch, having a successful and reliable shipping strategy is crucial for success. Any delay in shipping can ruin the holiday of an entire family or business. With the help of a third party logistics company that can handle every component—from warehousing to inventory to shipping—businesses can focus on different aspects of holiday shopping and make sure consumers are getting the best experience during this time of year.

Whether it is shipping across the country or Northeast Ohio, a proper logistics strategy is essential.

November 30 2013

Flexibility is a major focal point for a number of company strategies. With how business technology has evolved and continues to do so, organizations are facing an ever changing landscape and need to be aware of it. Adapting to this area and staying successful is a challenge that some companies need help with.

A recent Supply & Demand Chain Executive article cited an Accenture study that examined the need for flexibility in the supply chain. According to the numbers, 85 percent of the 250 global manufacturers that participated in the study are expecting growth in the economies of their top markets. On top of that, 82 percent believe that the ability to move product in-between facilities is crucial for organizations to be successful during this growth.

However, only 27 percent believe they will be able to adapt to growing business and 24 percent believe they will be able to sense changes coming and be able to react accordingly and not be forced to play catch-up. Because of this, 72 percent of businesses have plans in place to improve their operating model when it comes to the supply chain in the next year.

The piece features an interview with Russ Rasmus, the global managing director of the Accenture manufacturing practice. According to Rasmus, manufactures are finding that their existing systems are no longer effective in this new evolving marketplace. However, companies are being proactive by investing in new systems which include operating model components like talent, business processes, policies and capabilities to the information technology infrastructure, organizational structure and production facilities networks.

"By improving the reliability of existing assets, manufacturers have an opportunity to boost capacity without buying equipment or building facilities," Rasmus told the news source. "With this approach, they can also scale up and down with greater efficiency as business requirements change, while also optimizing their productivity."

With the help of a reliable third party logistics company that not only understands the latest technology solutions but also what companies need to do to stay competitive in the changing landscape, organizations can find an edge. This helps businesses meet challenges including quick delivery, warehousing and same-day delivery. Whether it is a shipment across the world, or across Northeast Ohio, proper supply chain strategies are crucial for success.