service provider relationship

A general logistics service provider or a specialized one- What to choose?

The number of 3PL service providers is growing rapidly. There are many small and big specialized logistics service providers for almost every specific need and then there are providers who will meet all generic requirements. The challenge is which one should you pick for your business? The one who provides every kind (or many kinds) of service or a one who offers a specific type (or just a few kinds) of service. A wrong 3PL will either fall short of the requirement or eat into the capital eroding the margins of the business. Choosing the right sort of 3PL can make or break a business. So, the question comes: How does one select the right type of 3PL provider for his company. We will run through some parameters that can be used to decide the type of 3PL that a company should hire.

 

Services required – Before selecting any 3PL provider, one must understand the services that are needed for one’s business. While it is not complicated, many new companies don’t fully understand the supply chain of their own business. They make mistakes while defining what kind of services they need for their supply chain operations. For example, the grocery startups may typically think that they will be served better with cold delivery chain (for vegetables, milk, meat and other similar products). They often overestimate the amount of cold food that needs to be delivered as part of a grocery order (for delivery- based grocery). In another kind of business, such as apparel business, ease of return of merchandise could be far more critical than other parameters. If a 3PL who specializes in delivery only (and not return pickups) is selected for such business, the logistics alone can eat into all the margins of the company. Some businesses hugely overestimate the volumes they will achieve and end up overpaying for specialized 3PL service providers (think of utilizing only 50% of the contracted capacity of cold storage chain and paying for 100% of it)

Many times, new businesses don’t really understand their customers and end up with under-utilized resources at disposal and thus decrease their capital and cost efficiency. It may be wise for new businesses to start with generalized service providers and gradually move onto specialized ones as they grow their volumes and develop better insights into their requirements.

 

Specialized expertise – Businesses today have to carve their niche to stay relevant in the market. Within groceries business, some specialize in fresh food products, while others specialize in quick delivery. In apparel, some may specialize sending multiple items and then return all except what customer wants to buy, while another may concentrate on quick delivery but with no returns. There may be yet another apparel business which may have carved a niche in ‘made to order’ clothing (this is delivered from factory to customer, directly without any warehousing). All these services need specialized 3PL skills that should be in-line with the business’s chosen specialization. One needs to ensure that the right logistics skills – as required by the business and offered by the 3PL are identified and matched to avoid any disaster.

 

Costs – If a business provides an excellent service but incurs massive costs, it may not be able to sustain. Imagine, providing a rush delivery as standard for a $10 item (which has $5 margin ) and absorbing a $5 delivery charge for it. The customers will love it, the volumes will be huge, but this kind of delivery charges will eat up all the margins. Contrary to the popular wisdom, the high volumes will kill this business. Logistics costs are of great importance to any business and must be kept under control at all times. If they cannot be passed onto the customer, they must form a small a part of expenses, as possible. Here again, there is no saying which type of 3PL will be better suited. Spending $5 on the cold delivery of $10 or $15 grocery (e.g., vegetables) may not be sensible. But if you have a truck-full of deliveries of vegetables, then the specialized cold delivery chain will be more cost efficient, and the value proposition will be higher.

 

Volumes – If a business has larger volumes, it makes sense for it go for specialized 3PL provider. With high volumes, it is possible to cut a deal with the specialized 3PL provider for getting good rates. For smaller quantities, one may want to settle with a general service provider. However, today many specialize players club the delivery from multiple vendors to increase their utilization. A new trend is emerging where multiple businesses join hands and negotiate with 3PL providers to get better value for each one of them.

 

The decision to choose a 3PL provider is never straightforward. Multiple factors need to be borne in mind before making a choice. As a general rule of thumb, it is recommended that one should start with general provider and move to the specialized one as the business grows and there is clarity of requirements.

A key advantages of choosing a general service provider from the start is that as the business grows, the service provider’s volumes also grow and he will make investment specifically for your growing needs. This, in turn, makes him specialized provider for your requirements. In fact, he would develop services for your specific needs making it a strategic fit for your business.

co-packers

Top benefits of working with a Co-Packer

Industries usually deploy co-packers for outsourcing some of the more intricate secondary packaging needs; thereby making the commodities shelf-ready. Lately, this concept has attracted a lot of attention courtesy its massive presence in the food and pharmaceutical market. While it easily improves the operational efficiency, there are a host of other benefits that come along with a co-packing service.

However, before enlisting the benefits associated with a co-packing service, it is important to visualize the impact of a contract manufacturer when it comes to handling the product aesthetics and customer satisfaction levels. We all know that companies emphasize massively on the manufacturing process but it’s the packaging that helps spread the word. This critical marketing component, therefore, needs to be prioritized by bringing certain reliable contract manufacturers into the mix. That said, majority of SMEs are constantly vouching for efficient co-packers, in order to gain a competitive advantage.

1.      Greater Flexibility

There are several food and pharmaceutical businesses that are restricted in terms of infrastructure and therefore fail to experiment with diverse packaging options. Co-packers offer them flexibility as they can easily outsource these services; thereby leveraging a host of innovation packaging techniques. While it allows businesses to work without having a dedicated packaging arena, it also helps them save a lot of money. Lastly, improved flexibility also helps boost company credibility and product image.

2.      Greater Profits

Taking care of the packaging requirements is quite a tricky job. However, businesses need not worry about the same as a contract manufacturer can easily handle the more intricate aspects of secondary and even primary packaging. Be it involving qualified staff for doing the job or facilitating the inclusion of high-end production facilities— an efficient co-packer can handle each aspect without putting undue stress on the concerned business frameworks. With majority of business verticals handled in the best possible manner, the company starts making a lot of profits while saving on a lot of investment— all at once.

3.      Best-seasonal Packaging Options

The concept of seasonal packaging is surely investment intensive. However, if done right, seasonal packaging can be extremely cost-effective in the long run and this is where contract manufacturers pitch in. Co-packers handle these aspects of packaging by taking care of short-term necessities.

4.      Quicker Organizational Output

The entire process of manufacturing thrives on the quickest possible output and this is what co-packing services usually boast of. With the products manufactured at a steady pace, it becomes important to pack and send them out, at the earliest. Companies that have a contract manufacturer to work with can roll out supplies faster than some of the contemporaries, which in turn help improve customer satisfaction levels.

5.      Lesser Manpower Requirement

Once a company starts outsourcing co-packing requirements, the existing workforce automatically gets downsized. This, eventually, lowers the existing costs pertaining to the upgraded machinery, maintenance and even employee training. Once in-house facilities are eliminated and the packaging requirements are outsourced, it becomes easier for the companies to concentrate on the process of manufacturing. This actually improves overall efficiency and helps minimize the associated clutter.

6.      Optimized Processes

Not just the packaging processes, a co-packer can also help improve the manufacturing whereabouts by offering services like contract sewing, bar coding and thermoforming. Once these attributes are included within the scheme of things, it becomes easier for companies to optimize certain intricate manufacturing processes. Apart from that, businesses can also fine-tune the existing manufacturing processes with the more complex ones taken care of.

7.      Sustainable Prospects

Majority of manufacturing, packing and rendering services need a sustainable environment to thrive. With Co-packers at the helm, food and other SMEs can easily inculcate sustainable approaches into the mix while also giving attention to profitability. However, there are companies which install their own packaging firms; thereby putting a lot of undue pressure on the existing processes. A co-packer can therefore render sustainability and extremely user-friendly solutions to the businesses without burdening them with financial stress.

Most of the co-packing companies offer customized solutions to the businesses which typically concentrate on consumer packaged goods and other forms of food packaging. Contract manufacturers or rather contract packagers specialize in these aspects and they skillfully handle most of the concerned requirements while taking care of the labor and even automated machines.

Why Co-Packing Services are Necessary for Food Businesses?

Companies that are looking to grow their brand must immediately consider a co-packer. While this approach holds true for every other business, food-specific industries are best served with a co-packer added into the scheme of things. While certain companies prefer outsourcing the manufacturing part, it is important that a contract manufacturer is deployed, in order to speed up assimilation, packing and fulfillment. However, every service provider isn’t functional enough and it takes quite a lot of intuition when it comes to zeroing in on the perfect co-packer for the concerned business. In a nutshell, any food business can easily scale up with a co-packer at the helm as some of the more intricate aspects of packaging are then handled with precision and accuracy.

In the subsequent sections we shall look at the flowchart that helps companies deploy efficient co-packers. Moreover, it is true that every food-specific business needs to work with one, in order to improve scalability and efficiency.

 

When do Companies Usually Deploy Co-Workers?

According to proven surveys, almost one-third of global manufacturers offer outsourced services where they render co-packing benefits to certain esteemed firms. Almost 45 percent of the manufacturers that lack a dedicated unit help other food-specific companies co-pack certain products; thereby assisting producers improve the line extensions. Moreover, a food producer typically hires a co-packer when it moves towards additional certifications, large-scale productions and newer products. Therefore, it can be established that every food producer needs to look up to a co-packer during its business lifecycle.

Understanding the Requirements

The first aspect of hiring a co-packer is to ascertain the industrial requirements, beforehand. Companies that have outgrown their in-house production often need to outsource the packaging and fulfillment services. Majority of food startups start off by producing items in smaller batches. However, upon growing constantly, it becomes hard for them to manage services and the fulfillment requirements, simultaneously. Outsourcing the production, manufacturing and even packaging should therefore be the norm for the constantly growing SMEs.

It must be understood that investing in expansive production techniques and facilities require additional costs and certifications. Moreover, with the ever-expanding clientele expecting improved services, it becomes important to deploy a co-packer that can save a lot of time and effort. This, in turn, allows the business to concentrate more on the kitchen and the concerned production facility while the co-packers take care of the distant metrics.

Learning the Process

One aspect of hiring a co-packer is to gain a better understanding of the recipe, concerned processes and industrial equipment. Being proactive is what separates great businesses from the average ones. However, staying proactive requires the authorities to remain present for the first few lots while making a detailed list of the necessary ingredients. While the co-packing requirements are necessary to cover, food businesses must also check the complexity and availability of the required products before letting the co-packer pick stuffs. Apart from that, businesses must also keep a close eye on the packaging, in order to fulfill the consumer requirements and usability factor.

Ascertaining the Business Volume

Businesses with high production volume should look to deploy the services of a co-parker as the latter thrives when there is a lot to work with. Well-established co-packers need to be convinced about the potential of a food business before they start working with the same. However, validation works both ways as even the concerned SMEs must check the equipment set pertaining to the contract manufacturer and see if it is compatible with the production requirements. In addition to that, the timeline and projection of the business must be matched with the production requirements, well in advance.

Trusting the Gut

Food businesses should trust their gut while hiring co-packers for the job. With the outsourced contract manufacturers specializing in select areas, it becomes hard for the SMEs to select the suitable vendor for shouldering responsibilities. While a proactive and intuitive approach can help, at the end it all boils down to the gut feeling.

Working with co-packers and contract manufacturers can get tricky at times but food companies with a clear vision can easily integrate services as they understand the entire production process and even follow instincts when it comes to preparing food items, selecting ingredients and handling the packaging requirements.

7 Ideas to Amplify Workforce Efficiency Levels for a Warehouse

Maximizing warehouse efficiency improves organizational profitability and enterprises are slowly but steadily realizing the same. However, it isn’t easy to immediately improve the efficiency levels of the concerned workforce and it takes quite a lot of effort to ensure that the warehouses are functioning at the most optimized levels. Moreover, managers placed at the distribution centers can easily gauge the fact that every warehouse process isn’t executed optimally courtesy lack of proper planning, strategy allocation and resources. Therefore, it is important to improve the overall efficiency of the existing warehouse by putting certain intuitive approaches to use.

Prioritize Log Processing

One aspect of improving warehouse workforce efficiency is to concentrate more on log processing by prioritizing inventory tracking and other documented approaches. Companies that can keep a track of the error rates and other insights are best placed when it comes to improving productivity. Tabulating changes in training procedures, adopting newer technologies and including new workers are some of the strategies which can effortlessly optimize the existing workforce efficiency levels. Log processing, therefore, allows companies to adopt and analyze the ramifications from a proactive point of view while gaining important insights regarding the existing loopholes.

Reinforce Accountability

There are times when automation within the warehouse leads to certain errors in packing, picking and fulfillment. Although, automation as a strategy cannot be ignored, warehouse efficiency can only be improved if the companies hold the workers accountable for the mistakes. Reinforcing warehouse accountability readily emphasizes on accuracy and helps the industries fix and avoid errors in the long run.

Stress on Proper Communication

It is important for the companies and warehouse managers to communicate strategically with the workers, in order to keep them invested in the cause. Be it communicating regarding productivity or supply chain processes, one way of improving warehouse efficiency is to create a sense of understanding between the management and warehouse employees. This approach accentuates the efficacy of problem solving by building a unified bridge of understanding.

Empower the Workforce

Although we did mention a few strategies for improving the workforce efficiency, empowering the same is one option that can pay rich dividends. This strategy implies at focusing on the core skills of the individuals while exhibiting confidence on their potency. Empowering the workforce with special technologies and undeterred confidence is one way of keeping the employees interested.

Develop Procedures and Standards

Reducing errors is important when it comes to improving the efficiency of the warehouse workforce. One way of achieving perfection is to create a pre-defined procedural module pertaining to the developmental standards. Warehouse managers should focus on reducing probable variations while concentrating more of the aspects of shipping, shift scheduling and quality control. Moreover, it is important to focus on the facilities management; thereby increasing collective productivity and improving warehouse efficiency.

Adopt Process Improvement as a Continual Strategy

Warehouse managers must opt for continual process improvement as it allows them to initiate similar processes via diverse techniques. This way, warehouses can zero in on the best strategy for a particular job that can help them save money, effort and time. That said, an approach like this allows companies to evaluate the existing procedures while adopting necessary changes. Be it looking at the inventory management process or the staffing requirements, process improvement is something that can amplify productivity and help an organization identify the necessary areas that require attention.

Outsource Services

In addition to every other trick in the book, companies can opt for outsourcing certain warehouse processes for gaining an advantage. There are certain aspects of warehousing that require additional levels of intuition and hiring a 3PL service provider can come in handy for the enterprises. This flexibility allows companies to design, implement, and manage specific warehouse activities without having to worry about additional tasks.

Inference

Warehouse workforce efficiency can be a limiting factor when it comes to the growth and profitability of an organization. Therefore, companies must be vigilant about the same and should look to implement the mentioned strategies for gaining an edge over the competitors. However, there are many who believe that investing in new technological ideas can easily improve workforce efficiency. While technology can be one of the precursors, it’s definitely not the only requirement. Evaluating the existing warehouse practices and fine-tuning them should be the primary concerns for the companies when it comes to amplifying workforce efficiency levels.

How to Shape up the Future of Trucking?

Although the transportation industry has evolved, trucks continue to play a major role in carrying and delivering freight from one point to another. That said, the emphasis has always been on taking the pressure off the trucks, in order to conserve fuel, maximize overall capacity and even reduce the underlining costs. Even then, the trends have largely been in favor of truckload transportation with these vehicles accounting for almost 81 percent of the entire expenditure module. With truckload transportation and trucking continuing to rule the roost, we actually need to look at what future holds for this industry, regardless of the booming changes. 2018 is already upon us and it’s time we embrace the new changes which are expected to stay with us for the next few years.

Recruiting a more Functional Set of Drivers

Until the trucks start plying by themselves, we would be requiring drivers. However, quite recently the transportation industry has started seeing a dearth of efficient drivers which in turn is raising some important questions. The future of truckload transportation will see the companies’ focus more on exceptional driving skills, especially for the long-hauls. Needless to say, truck drivers will be the limiting factors in the long term and the lack of skills might minimize the overall growth of trucking capacity. Moreover, once the driver conundrum is taken care of, it would be easier for the companies to increase the freight volume at a steady pace.

Growth of Dedicated Trucking Services

In the next few years, industries will witness a massive growth in the adoption of dedicated trucking services. This would involve acceptance towards a host of macro factors including the likes of capacity tightening and dedicated operations. Moreover, this approach will guarantee that customers get the exact product they have signed up for. The companies are eventually realizing the fact that customers are always on the lookout for cost-effective deliveries and that too within a reasonable period of time. Over a period of time, truckload transportation will start concentrating on the same by securing prices and the underlining capacities.

Improved Capacities

Shipping containers which are half-full can lead to higher transportation costs; thereby accentuating worries for the concerned businesses. The future of truckload transportation will make sure that containers are shipped at full capacity by using sophisticated methodologies, higher load efficiencies and cross-docking techniques. Some of the other intuitive strategies include minimizing certain one-way routes and even deploying experienced third-party logistics.

Relying on Technology

Although businesses are already concentrating on technology, it is only a matter of time that supply chains and logistics managers make it their first line of defense. Be it gauging the uncertainties of economy and workforce, technology-driven ideologies and concepts are expected to last way more than the usual ones. Moreover, truckload transportation will see continued adoption of different supply chain technologies, inventory management approaches, consolidated route tracking systems and driver tracking options courtesy the growth of technology. Each one of these techniques can help improve driver safety, performance and even fuel efficiency.

Reliance on 3PL Vendors

Truckload transportation is expected to thrive only if the companies start shifting excess baggage to trusted 3PL services. That said, outsourcing certain tasks can easily increase the overall efficiency as businesses can then concentrate more on productivity and accountability. In addition to that, partnering with certain functional 3PL companies allows businesses to express themselves in a much better way as the former eliminates additional costs and also helps deliver the goods in an efficient manner. Moreover, the 3PL service providers render additional levels of safety to the fleets and concerned commodities.

Inference

The future of truckload transportation will be dictated by how well the organizations make use of the resources in hand. While keeping up with the industrial requirements is a prerequisite, it automatically boils down to how companies express themselves in terms of logistics and fulfillment. At the end, it’s all about delivering the products efficiently to the customers while minimizing overhead costs, associated intricacies and product damages. Needless to say, the quality of drivers and fleet with determine the fate of trucking and truckload transportation and 3PL services will surely play an important role in shaping up the same. Be it outsourcing select services pertaining to transportation or adopting the best technologies for the job, future of trucking will thrive on a proactive approach.

Inventory Management

How SME’s can improve their Inventory Management Process ?

Majority of small and medium sized businesses dealing with warehousing, retail, manufacturing and distribution often come across inventory specific challenges. Be it issues related to dead stock or struggles with wastage’s and stock losses— lack of a functional inventory management process can seriously impair productivity and restrict growth. Moreover with massive levels of investments manipulating the inventory, it becomes essential for the businesses to treat stocks with respect.

In the subsequent sections, we shall look at some of the most functional inventory management strategies, adopted by the SMEs.

Making Use of Optimization Tools

SMEs are best served by inventory optimization tools that focus on specifics and help them gain a competitive advantage over the competitors. These tools help marketers and warehouse managers evaluate the concerned networks for the best policies and even the existing inadequacies. Each supply chain node is closely analyzed by the standalone tools which extract data from ERP and WMS systems. In a nutshell, these optimization tools analyze supply variability, demand variability, and certain replenishment parameters for staying ahead of the market and industry loopholes. SMEs are increasingly investing in these tools for carving out a pretty intuitive inventory management process.

Employing Real-Time Analytics and Business Solutions

Majority of SMEs are increasingly focusing on real-time analytics for managing the inventory in a better way. With technological innovations at the fore, it is quite easier for them to create a unified information model that comprises of financial data, supply chain insights and other granular information sets. Having a cohesive platform for employing varied business solutions is a great strategy that SMEs are increasingly focusing on.

Treating Stock like Finances

Companies that treat stock like finances never have to compromise on productivity and growth. Moreover, it is only appropriate to render similar levels of importance to the stocks as they are the organizational assets, precisely in the form of inventory. SMEs must keep a detailed track of the commodities by analyzing the inflow, outflow, stock movement and the price points. Businesses that have good understanding of the stock often fare better as compared to others as they usually avoid making additional orders and swear by smarter inventory-specific decisions.

Adopting Automation

Automation is probably the only solution that can easily streamline the existing inventory management requirements. Moreover, SMEs opting for this strategy need not depend on manual interventions. Be it placing replenishing orders for stocking or even following up the deliveries, automation allows businesses to stay ahead in terms of innovation. With automation on-board, it becomes easier for companies to detect excess and dead stock while addressing issues related to supply and demand.

Improving Functionality

Small and medium sized businesses should look to improve the functionality of the concerned warehouse for addressing the inventory specific requirements. The most probable solutions include staff access and updated inventory. Moreover, businesses must also look to integrate the existing inventory systems with a POS system; precisely for staying updated and minimizing the lag time. That said, improved functionality also leads to advanced reporting where SMEs can easily gather new insights, depending on performance and inventory management. Some of the other benefits associated with improved functionality include customizable workflows.

Monitoring Slow or Dead Stock

While we did talk previously about the dead stock, it’s high time we address the elephant in the room. Firstly, a dead stock takes up quite a lot of space and hinders functional additions. SMEs should be able to tabulate the stocks based on the dynamism and must try to get rid of the stagnant ones, at first. Slow moving stocks limit profitability by restricting cash flow. Lastly, businesses must segregate the stocks and commodities within the warehouses based on their shelf life. Once the stagnated stocks are liquidated, it becomes easier for the companies to control the deadstock levels, make new additions and improve productivity.

Inference

These are some of the most functional strategies which can be deployed by small and medium sized businesses for improving the existing inventory management framework. Apart from the mentioned ones, companies should also be able to added newer technologies into the mix for improving the entire process of inventory management. Last but not the least; SMEs should emphasize on amplifying the workforce efficiency within the warehouse for handing the inventory in the best possible manner.

Fulfillment

Benefits of Recruiting an Efficient Fulfillment Partner

When it comes to optimizing an existing supply chain framework, organizations must clearly emphasize on the fulfillment services. Moreover, fulfillment service providers also play a vital role when it comes to handling and improving the shipping logistics. While certain organizations opt for in-house fulfillment services, some prefer outsourcing majority of their work to experienced service providers which can also handle the basics of distribution.

While having a strategically situated fulfillment center comes in handy, fulfillment partners must also look to streamline and simplify the supply chain process. Moreover, an efficient service provider must also aim at improving the customer experience, across multiple channels. In the subsequent sections, we shall look at the topmost traits pertaining to a highly efficient fulfillment service provider while enlisting the most prior ones for improving productivity.

Better Order Management Framework

Organizations must have high expectations from their fulfillment partners and the ability to address order management should be at the top of the pecking order. The e-commerce fulfillment service provider should be able to pair all of its attributes with innovative technologies. That said, efficient order management must cater to multiple channels while being able to handle the nooks and crannies of product demand and order placements.

Inventory Management Capabilities

Every organization needs to be careful about the product inventory, spread across diverse marketing channels. Therefore, an efficient fulfillment partner must offer considerable levels of visibility for tracking real-time and continuous inventory-specific developments. This trait helps companies manage the supply chain in a better way.

Reporting in Real-Time

A functional fulfillment service provider must be able to report about e-commerce whereabouts in real-time. This, in turn, offers an expansive and detailed view of the inventory; thereby helping customers complete orders in a quick and seamless manner. Real-time reporting feature is probably the most underrated aspect of supply chain management and an efficient fulfillment service provider should bring the same to the fore.

 

Hassle-free Fulfillment Completion

A fulfillment service provider should at least be able to complete the tasks associated with fulfillment in a precise and seamless manner. A service provider that can cope up with the promotional sales and seasonal demands can be easily considered as bankable. However, it’s all about pairing services with advanced technologies, in order to achieve fulfillment perfection. Needless to say, an efficient fulfillment partner can improve the visibility of the concerned brand by rendering back-end expertise and other intuitive ideas.

Ability to Fix Warehouses

A fulfillment partner with considerable levels of expertise can help a warehouse with the designing elements. There are times when a non-scalable warehouse starts busting out at the seams courtesy lack of spaces and necessary adjustments. Fulfillment service providers handle the internal affairs by making the warehouses more conducive to work.

Handling Customer Relationships

Customer relationships are important, especially when e-commerce services are concerned. Fulfillment partners allow company owners to track the buyer journeys; therefore allowing them enough time and resources to personalize the service sets. This minimizes the number of complaints and helps improve productivity, almost immediately.

Can we do without Outsourcing Fulfillment Services?

Every fulfillment-specific requirement is usually handled by the 3PL service providers, as a part of an expansive package. However, small businesses usually do not have the financial backbone to invest in a third-party service provider and they usually resort to in-house options for addressing the requirements. If an unbiased consideration is taken into account, a fulfillment service provider with the above mentioned traits is necessary as the absence of the same can cause the sales volume to fluctuate and that too, regularly. Apart from that, companies without innovative fulfillment technologies are bound to experience order errors. In addition to that, an efficient fulfillment partner also eliminates the shipping, processing and product-specific errors.

Companies without reliable 3PL services also lack scalability i.e. the ability to adapt and innovate according to the market sentiments. An efficient fulfillment partner renders scalability to the organizations by streamlining the processes related to packaging, inventory control and shipping.

Why we need to Learn More about Packaging Perishable Commodities ?

Packaging perishable items is a practice that’s driven by convenience, sustainability and product quality. Therefore, companies dealing with food and beverages need to be careful about their packaging standards, precisely for maintaining the quality of products and customers satisfaction levels. Moreover, with the evolving regulatory practices on-board, it becomes all the more important for the companies to abide by the pressing guidelines and offer packaging options that are sustainable and can improve productivity.

Why Food and Beverage Packaging needs to be prioritized?

The food and beverage industry boasts of perishable products and therefore, the packaging techniques for these entities must be different from the conventional ones. Companies packing food items and beverages must look to contain the products in an adequate manner, without changing the consistency of the same. Apart from that, the packaging options must be immune to any kind of mechanical damage. For aerated drinks and other forms of beverages, air tight containers are preferred; precisely for keeping external gases and contaminations at bay. In addition to all that, food packaging must be carefully selected in order to avoid physical and biological degradation of the sheltered stuff. Lastly, accurate product identification is another criterion for the concerned businesses and customers.

Enlisting the Varied Aspects of Packaging

The technical aspects of food and beverage packaging primarily involves two macro-functions i.e. logistics and marketing. While the former aims at protecting the product from physical damages, the aspect of marketing adds certain value to merchandise by concentrating more on vehicle condition and product preservation.

If we were to further segregate these aspects, containment shows up as the most prior requirement. This industrial prerequisite determines the quality of packaging, pertaining to each and every product. The next determinant involves preservation and protection of the concerned merchandise. Information is yet another aspect of industrial packaging as food products and beverages need to furnish every detail regarding the substances and quality on offer.

The Concept of Environmental Sustainability

Needless to say, the underlining concept of product packaging aims at preserving and protecting the concerned food item. However, unlike other products, food-specific entities need to abide by certain rules and regulations that focus primarily on environmental sustainability. Majority of users throw away the packaging materials shipped alongside food and beverages and therefore companies must focus on the biodegradability quotient. Companies offering similar services must look to abide by the basics of recycling and disposal before sending out shipments with food and beverages in them.

Packaging Metrics Explained

Packaging isn’t a random thing but requires a lot of planning. Before starting off with a plan, companies need to analyze a few factors and proceed with the same.

1.       Companies usually start off with material selection as food and beverages cannot be shipped in usual containers. Depending upon the market, companies should focus on hygiene and quality of the materials used for packaging the concerned commodities.

2.       The packaging design is also important when it comes to shipping out food and beverages. Companies must take into consideration that these commodities have limited shelf life and therefore the designs are bound to get complicated, in order to satiate specific requirements.

3.       Once the material and designing aspects are out of the way, companies must start focusing on the consumer choices i.e. their preferences regarding the packaging options. Certain stores offering food and beverages have options for the customers to choose from. The size of the container, at times, is based on the discretion of the customers.

4.       Transportation is also an important criterion for businesses dealing with food and beverages. Companies must readily pair up with firms that are prudent and can deliver products on time.

5.       Another factor that needs to be taken into account is the end-of-life for the packaging material. Every container that covers up the commodity has a specific shelf life, similar to that of the latter.

Inference

The food and beverage industry is completely dependent on bankable packaging solutions. However, unlike traditional ecommerce items, these commodities need to be packed and shipped with additional care. Moreover, businesses must also understand the fact that these are primarily perishable items and there must be a targeted model for making the most of the packaging strategies.

E-Commerce Fulfillment Trends in 2018

Let’s be honest about the fact that 2017 has been a pretty good year for e-commerce fulfillment. While businesses were pleasantly surprised by the innovation and speed of technological implementations, several startups benefited from these changes. However, it would only be appropriate to take a look at 2018 and what expectations the entire supply chain industry can have from the same. The current year started on a few positive notes and it wouldn’t be wrong to be optimistic regarding the upcoming trends. Moreover, we should take a note of the fact that ecommerce fulfillment trends do not change every year but extrapolate with each passing day. This means, it wouldn’t be advisable to look only at 2018 but to concentrate on a more expansive analysis.

Looking at the E-Commerce Challenges

It wouldn’t be wrong to say that trends also signify the lingering challenges associated with ecommerce fulfillment. Majority of these challenges are inventory and warehouse specific loopholes, ably assisted by a host of other micro effects. Ecommerce fulfillment, therefore, specifically focuses on the aspects of shipping and product deliveries while offering the best possible combinations to the customers.

2018 will see a Change in how Fulfillment is perceived

Ecommerce fulfillment has already started spreading out in multiple directions. The Omnichannel visibility combines the likes of drop shipping, warehousing and other necessary avenues. In addition to that, majority of fulfillment service providers are pairing up with 3PL companies for creating an elite network of clients. What sounds optimistic is that fulfillment partners are increasingly establishing accountability for every supply chain metric. Be it covering the shipping damages, packaging essentials or the last mile considerations; fulfillment partners in 2018 are concentrating on the holistic aspects of supply chain management.

Shipping Costs to Rise

Those who are expecting the shipping costs to cap out are certainly in for a disappointment. While fulfillment service providers will start looking into the basics of retailing and packaging, the shipping costs in 2018 are expected to shoot up. The customer satisfaction levels, therefore, won’t be compromised on.

Warehouses will keep getting Makeovers

Although the sky high prices won’t cease from existing, the concerned warehouses will start getting makeovers they deserve. Majority of fulfillment partners and retailers will start readdressing their warehouses in 2018 for necessary improvements. The emphasis will therefore be on eliminating the inadequacies and identifying the key areas for improving the existing frameworks. Moreover, it’s only fitting that fulfillment centers keep checking the size and spread of the warehouses for accommodating bulky materials.

Better Branding and Customer Experiences

Getting up close and personal with a brand will be easier in 2018 as fulfillment partners will do majority of the work. With online shoppers getting a cohesive platform for comparing prices, delivery rates and discount codes— customers will be getting all the advantages. Brands will start paying heed to customer sentiments and the shipping strategies will be way more user-friendly as compared to the existing ones. The best thing which fulfillment partners are expected to achieve in 2018 is higher degrees of personalization. This concept will include better at-home deliveries and even higher levels of packaging.

Intensified Labor Pressure

This variable is likely to get squeezed between other fulfillment metrics. While the requirements are amplifying at an alarming rate, there is definitely a lack of skilled labor. Although companies are setting up warehouses with scalable automation at the fore, the pressure for procuring skilled labor is intensifying with each passing day.

Better Delivery Options

While shipping and packaging are some of the important facets leading towards product fulfillment, it’s actually the delivery options that determine the efficacy of the last mile solutions. In 2018, fulfillment partners will start focusing more rural deliveries and innovations concerning in-home deliveries. Newer techniques for delivering products will start showing up in 2018 with the focus being on customer satisfaction and readiness. While the concept of nominated deliveries is fast catching up, it needs to improve further in order to make some more sense. Majority of retailers with dedicated fulfillment services are slowly but steadily concentrating on delayed shipping options for allowing the customer to save money.

E-commerce fulfillment solutions will keep evolving with time. However, 2018 is only a stepping stone for the service providers to achieve fulfillment perfection. Customers must understand that prices might go up in certain cases but the overall satisfaction levels will keep improving.

Benefits of a Transportation Management System

Companies dependent on retail chains and ecommerce solutions usually deploy TMS or Transportation Management Systems for simplifying certain fulfillment based tasks. A functional TMS plan is highly beneficial to businesses as it allows them to transport products in a very cost-effective manner. In addition to that, Transportation Management System also involves intermodal freight movements, comprising of inbound, outbound, domestic, international and commercial shipments. The best thing about TMS is that it can seamlessly function with the concerned company or even with an outsourced fulfillment or logistics partner.

Why Companies are Emphasizing on TMS Solutions?

TMS or Transportation Management System is the only supply chain tool that reduces additional freight costs. Having this strategy on-board helps organizations immensely as they can pair up logistics with functional analytics and optimization techniques. TMS solutions work way better than some of the more conventional supply chain management techniques and in the subsequent sections, we shall enlist some benefits which set them apart from the usual ones.

Better Customer Satisfactions Levels

Improved Warehouse Efficiency

While some might argue that a transportation management system has nothing to do with warehouse management, there is a direct correlation between the two. With a functional TMS solution on-board, companies can quickly dispatch the shipments; thereby saving a lot of time for performing warehouse duties. Moreover, with the TMS module integrated alongside the ERP, data entry issues and associated errors can be readily avoided. In a nutshell, TMS and WMS work together for improving the efficiency of the concerned supply chain framework. The inadequacies are duly minimized followed by higher levels of cost savings.

 

Better Delivery Options

Transportation Management System helps optimize the shipping techniques of the companies; thereby offering a host of exciting fulfillment options to the customers. Be it the inbound shipping programs or the pool-point shipping ideas, having a robust TMS module can open a door of opportunities for the customers. In addition to that, this approach to shipping and fulfillment also covers multiple locations and serves as a precursor to the Omni-channel customer experience. Lastly, one person with remote access can easily manage the entire delivery schema for multiple networks.

Reduction in Inventory

Organizations dealing with surplus inventory issues are best served by a TMS module on-board.  As companies can now ship products at a faster rate, it becomes easier for them to plan out the stocks in a better manner. This eventually minimizes the issues related to surplus stocks and can help businesses improve productivity.

Improved Cash Flow

Needless to say, a functional transport management system can also help an organization improve the overall cash flow. With freight accounting made easy, improved cash flow is something businesses can expect going into the future. Moreover, a TMS module offers a leeway to the shippers as they can now save a lot of money by tweaking the structure of inbound logistics. For those who are interested in facts and figures, companies can easily save something in the ballpark of 2 to 5 percent by cutting out duplicate payments, inaccurate charges and other logistical pitfalls.

Advanced Analytics

While we have addressed this aspect in some of the previous sections, it’s only appropriate to discuss more about the analytical side of transport management system. The associated analytics identify low-cost shipping options for businesses; thereby helping companies save a lot of money. Moreover, with shippers having fewer issues to worry about, the entire management team can concentrate more on warehouse and inventory control.

Inference

Over the past few years, it has become easier to implementing TMS solutions to the entire process of warehousing, fulfillment and inventory control. The best part about using this business strategy is the backhaul support and consolidation opportunities where companies can save a lot of additional costs without having to compromise on customer satisfaction levels. What makes most sense is to link a robust TMS module with a highly efficient warehouse management system. While this promotes better visibility of the entire supply chain, it can actually improve the process of inventory forecasting and minimize the data-specific errors.