The automotive supply chain has many different aspects and is a very complex system. Companies who work within this industry have to be sure that their supply chain management system is functioning properly and that profits are growing as your customer base does. In reality, however, when the automotive industry continues to grow, challenges also continue to arise. Many of these challenges can be difficult and/or impossible to handle on your own if you are a small- to medium-size business. Strategic supply chain management must always be the top priority so that you don’t fall behind when these challenges appear. To prepare for some possible challenges you may face, here are the top seven supply chain challenges that are impacting automotive companies, and how a third-party (3PL) logistics company can help you overcome these obstacles.
Believe it or not, there is a sweet spot to inventory management. You should keep inventories well-stocked, but not overstocked. The automobile industry has been growing over the last few years, but that does not mean you need to oversupply yourself. You can maintain a balance by working with a third-party logistics partner. They use software that tracks and measured data about your inventory, and this data can inform you on which items are requested the most. When you have full visibility of the items you need to have well-stocked, you can make better decisions about what quantity of each item should be on hand each day.
Sheer Amount of Recalls
If for some reason, you have to conduct a large amount of product recalls, this can be a high cost your company. Failures in your supply chain services like this can be a long and complex issue that can tarnish your name, disrupt your system, and affect your customer reputation. Especially if you have a complex global chain, there is a higher risk of negative consequences. Your teams will need to trace and receive all of the affected products, and deal with quality control. When it comes to the automotive industry, the health and safety of your customers should be your number one priority. If you ever have to deal with an airbag inflator recall, it can severely damage your reputation and cause long-lasting effects on your business.
Control Over Supply Chain on a Global Scale
If you are an automotive manufacturer, distributor, or supplier, you’re providing and sourcing a wide range of products internationally. To contain costs, you must be able to move towards “just-in-time” operations. To achieve this goal, you must have a full visibility of each element in your supply chain, and have all the data necessary to create a plan for future growth. Third-party logistics companies can provide software that allows you to automate your process, and have full visibility at each stage.
Logistics Chain: Flexible and Reliable
When adapting to changes in demand, or responding to competitors, you must be flexible and reliable. In high season and low season, you need to be able to adjust and manage each aspect of your operations so that you are continuously profiting and benefiting from a good return on investment. It is a good idea to work with a third-party logistics partner, who is as flexible as you are, regardless of the conditions. Having a trustworthy and reliable partnership can guarantee a successful logistics chain.
Tracking the Geographic Expansion
It takes careful planning to grow your business, track your geographic expansion of customers, and add new facilities in different locations. To succeed, you’ll need a logistics partner who completely understands your processes, and can execute your plan in any location. They need to be aware of the local standards and conditions of the region, and should have a trustworthy and open communication with you at each stage of the supply chain.
Cost and Location
As the intensity of manufacturing increases due to innovation, consumer demand, and technology, vehicle manufacturers will want to see their suppliers working locally. Automotive companies will want their suppliers to be available in every jurisdiction where they have a manufacturing president. Each business location must be evaluated by the following factors: financing, relocation or recruitment of the workforce, rules and regulations of a new jurisdiction, maintaining client production output quotas and quality, optimizing production lines during the transition, closing down one facility and setting up the other, etc., considering cost and location requires effective financial planning, otherwise companies can miss out on profits.
Environment and Ethics
Supply chain management in the automobile industry involves a multitude of quality standards and regulations that make you responsible for the safety, ethical, and environmental impacts of you company. Your third-party logistics partner needs to understand these quality demands of your industry. They should have a recognized track record in providing solutions that meet those demands, and the internal controls necessary to manage the international challenges of your business.
Partner with LSS for Automotive Supply Chain Support
If you are looking for a reliable and successful third-party logistics partner to help you avoid or overcome these challenges, Lean Supply Solutions can help you. We make ourselves aware of supply chain management trends and issues in the automotive industry as they arise to help our clients get the most out of their operations. We understand the demands and obstacles that rise as your company grows, and we are committed to making sure your operations do not fall behind. Our third-party logistics, packaging, and supply chain management can streamline your processes for better success. By striving to ensure that the right products are provided to the right customers at the right time, Lean Supply Solutions is able to offer consistent, accurate, and quality results. To learn more about outsourcing to our 3PL distribution team, or to ask any questions, contact us at 905-482-2590.
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Did you know that transportation costs can make up over half of a company’s total expenses and logistics? Factors like labour, global business growth, new market penetration, complex supply chains, and increasing the material prices are becoming more and more important when calculating transportation costs. Thankfully, transport integration has been saving businesses money by making their system work more effectively and at a better overall cost.
Integrated Transportation Solution: How Does It Work?
An integrated transportation solution works by adding an additional layer to existing transportation to optimize it and better serve a shipper’s needs. This dedicated solution provides shippers with greater coverage and flexibility to scale their assets as necessary. It provides reliability, customer service, and control that a shipper would normally expect from a private fleet.
Strategic Transportation Network Planning
The optimization process for integrated logistics begins with strategic planning. This entails planning an optimal transportation structure for a new market or product, and defining a cost structure. These costs can be reduced by the following:
- Optimizing the structure at large, and levering network synergies
- Optimizing processes like improving “empties” runs
- Optimizing packages such as increasing capacity levels, or using containers that are foldable
- Optimizing tariffs which can be achieved by re-tendering and benchmarking current tariffs
Digital Supply Network in Logistics
A digital supply network uses new technologies to change the way products are designed, sourced, made, moved, stored, and serviced in the supply chain. Transportation is a key component of the digital supply network, and it can help companies establish a competitive advantage and contribute to sustained and profitable growth. Implementing additional supply networks with an integrated transportation strategy is beneficial, and it has become central to a company’s growth. With this system, companies can gain a significant advantage over their competitors who still see transportation as a bunch of disconnected elements, rather than a vital, strategic, and unified system.
Multiple Transportation Management Systems
Transportation Management Systems (TMS) can help your business increase visibility, improve performance, and reduce spending. TMS software provides a variety of benefits that include better management, simple monitoring, stress-free integration, and aggregated data. This technology also provides superior customer service, intelligence, and flexibility by improving freight logistics and management, scheduling, operations, and reporting. There are different levels of integrated transportation systems, but with full integration, business can have a chance at gaining data that find real and exact results. TMS provides companies more visibility to adjust their capabilities and collaborate. If the TMS is not fully integrated, companies can easily overlook problems due to limited visibility.
Real-Time Freight Data and Analysis
Real-time freight data analysis allows you to run reports and make better decisions based on your trends and history. Access to such valuable data at your fingertips can empower you to see the total cost of your choices as a business owner, and prevent future expensive bad decisions.
Freight Management and Freight Costs
TMS is flexible enough to help you regain control over freight management, costs, and risks. It achieves this by accommodating custom company business rules, and ensuring all users follow the policies that guarantee efficient and cost-effective shipping.
Shipment Order Entry
The benefits of using an integrated transportation system are seemingly endless. One of the detailed processes involved is shipment order entries, such as the type and quantity of containers, the sender and recipients, and the pickup and delivery schedules. Having detailed processes like these at hand, will allow you to create strategic and tactical planning efforts.
Detailed dispatching refers to loads that were already modelled and adjusted to allocate single orders to another load. An integrated transport and logistics system can help you get the most efficiency out of this process.
Set Up an Integrated Transportation Solution with Lean Supply Solutions
Integrated supply chain software can add real value to your business and allow you the visibility to create a strategic, tactical, effective planning solution for your transportation department. If you’re a small- to medium-size business, it can be quite a challenge especially if you wanted to see growth. While you should be focusing on your marketing and customer service strategies, you may find yourself struggling to manage your supply chain as well. This is why outsourcing to a third-party logistics company is a great idea.
Lean Supply Solutions can help you if you are looking for a third-party logistics (3PL) company with the latest technology. We make ourselves aware of the rising trends in supply chain transportation and always strive to stay up to date with the latest automation technology. We understand that when correctly employed, automation can drive many benefits to help a company’s bottom line, whether it deals with robotics on the manufacturing floor, features that eliminate manual processes, or features that provide information seamlessly as needed. Logistics automation in a transportation management system can help drive efficiency, eliminate waste, and save you money in this department. We offer our clients consistent, accurate, and quality results through our services, which include product and shipment order fulfillment, warehousing and distribution, pick-and-pack fulfillment services, and more. To learn more about outsourcing to our 3PL distribution team, or to ask any questions, contact us at 905-482-2590.
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Today’s customers are increasingly choosing online retail over brick-and-mortar retail stores to get the products they want. The fashion supply chain has seen significant growth in e-commerce interest from customers. Many brands have set up web sites along with their physical stores to meet customer demand and increase the number of sales they can get. Amazon is one e-commerce giant that has launched its own fashion department, providing clothing and accessories from a huge selection of brands to their customers. Fashion retailers need to keep up with this growing change in how consumers seek out the products they want, and to do this they will have to provide and improve their supply chain services and apparel logistics. Here are some ways e-commerce is impacting fashion supply chain management, and advice on how you can get on board.
Supply Chain: Inventory Levels
Inventory management and serving multiple sales channels (online stores, physical stores, wholesale customers, outlets, international stores, etc.) increases the complexity of the supply chain. To meet this growing demand, stock has to be properly managed and products need to move quickly from one channel to the next. To make sure that inventory is properly measured and managed, you will need to have stock visibility across every channel. Automating your inventory management and using technology in the warehouse can help you achieve this goal and become more productive and efficient on the whole.
An important thing to remember when adding an online store to your fashion brand is to make sustainability a priority. This is a huge trend based on the growing awareness of consumers that economic globalization and technological progress cannot be separated from environmental and social conditions and impact. Since customers are more aware of the possible negative implications of globalization, sustainability has to be an issue that the fashion industry considers, and this directly impacts you.
e-Commerce and m-Commerce
Not only are customers buying more over the Internet, they are also using their mobile devices to shop for added convenience. This is known as m-commerce. If you are delivering a negative experience to your customers, you can really miss out on this opportunity. When shopping on mobile apps, customers expect the products they want to be available and delivered to their home quickly at minimal cost. For your business, this can be both a complication and a benefit—your store has to meet high customer expectations when you receive and manage orders, but you can also increase your selling opportunities and have an optimal return on investment.
Since customers aren’t able to test out or try on products, e-commerce has led to an increase in return rates. This process can cost you a lot of money and set you back if you are not prepared to quickly meet this customer demand. You need to maintain the availability of your products and ensure that as much stock as possible can be resold at full price. If your returns process is not diligently managed, the cost of markdowns and lost sales will continue to increase. That being said, there is a commercial opportunity for your returns process to generate additional profit since it can create good will and provide a longer-lasting connection with your customers. This is a good opportunity for you to really impress them so that they will become repeat customers and recommend you to their friends and family.
Outsource Your e-Commerce Fulfilment with Lean Supply Solutions
Managing an online store can be a lot of work, so teaming up with e-commerce fulfilment services in Toronto can be helpful. If you’re looking for a reliable company that can help your business grow, Lean Supply Solutions is the answer. We rise to the challenge of meeting our clients’ needs through our services, which include product fulfilment, repackaging in the supply chain, pick and pack warehouse services, distribution, e-commerce fulfilment, and order fulfilment. Lean Supply Solutions is able to offer consistent, accurate, and quality results. To learn more about outsourcing to our 3PL distribution team, or to ask any questions, contact us at 905-482-2590.
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There are a lot of terms involved in the supply chain. Terms like kitting and product fulfillment services, reverse logistics services, and procurement process, are commonly used in this industry. But what do these terms refer to? What is supply chain management and what is the procurement process? Here are some important things to know about these two terms and what their major differences are. Once you understand what these terms mean, you will be able to benefit from the many tips and services available to you when you partner with a third-party logistics (3PL) team in Toronto.
How Is Procurement Different from a Supply Chain?
Every agent involved in getting your product into the hands of a customer or end user, is known as part of a supply chain. This process involves raw material suppliers or gatherers, manufacturers, transportation companies, wholesale warehouses, in-house staff, stock room workers, and cashiers. To make the supply chain run smoothly, functions such as quality control, marketing, procurement, and sourcing must be involved. The supply chain is the entire process, while procurement is a part of it.
Procurement is defined as the process of getting the products and/or services your company needs to fulfill its business model. The procurement process involves several tasks including developing standards of quality, negotiating prices, financing purchases, buying goods, inventory control, and the disposal of waste products. Once your company has possession of the goods, procurement stops. For companies to profit from this process, the cost of procuring products must be less than the amount the products can be sold for, minus the processing and selling costs.
Supply Chain and Procurement: How Do They Work?
The supply chain refers to all of the moving parts from the time a product leaves the manufacturer to when it arrives on a customer’s doorstep. Supply chain management activities are all efforts made to improve efficiency and effectiveness across all stages along the way. It covers matters such as when products are distributed, material sourcing, manufacturing quantity, quality testing, product storage, and so much more. Outsourcing your supply chain services allows you to avoid many errors in the system, because you are leaving all of the nitty-gritty duties to the professionals. These outsourced companies provide effective supply chain management by making sure orders are filled quickly while limiting errors along the way; tracking, maintaining, and organizing data to make the process works smoother each time; and getting the product into the customer’s hands faster. Procurement is just one of the many roles involved in a good supply chain. It should be considered a core component of a company’s corporate strategy. Proper procurement management is vital because an organization can end up spending over half of its revenue on purchasing goods and services. Procurement makes a huge difference between the success and failure of a business. The procurement process includes the following steps:
- Identifying requirements
- Approving the request for purchase
- Finding suppliers
- Making inquiries and receiving quotations
- Negotiating the terms
- Making a final selection of the vendor
- Creating a purchase order and goods receipt
- Shipping management
- Receiving invoices and making payments
Get Supply Chain and Procurement Services at LSS
If you’re looking for procurement and supply chain services, Lean Supply Solutions can help you. We stay up to date on current trends in the industry and adapt ourselves to be more efficient for our clients. Our third-party logistics, packaging, and supply chain management services can streamline your processes for better success. By striving to ensure that the right products are provided to the right customers at the right time, Lean Supply Solutions is able to offer consistent, accurate, and quality results. To learn more about outsourcing to our 3PL distribution team, or to ask any questions, contact us at 905-482-2590.
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A new trend in logistics is warehouse and storage automation technology. Warehouse robotics have been producing huge benefits to distribution centres like Amazon, by performing tasks such as arranging items on shelves that cannot be easily reached or are too heavy. They can also be used as totes that when full, carry the goods to the packing station. If the idea of robots in the warehouse appeals to you, here are four reasons why more warehousing and logistics companies are switching to automaton.
Flexibility and Scalability
Warehouse robots are more flexible and scalable than traditional automation. For instance, robots can pick lightweight, stackable items, fill a tote, and carry it back to a packing station where a human worker can complete his or her task. By allowing the robots to work in warehouse aisles, they can work faster without posing a risk to human workers, who do their daily tasks in a different area.
Improved Speed and Accuracy
Automated warehouse management systems with robots use sensors and software that continuously develops to increase the speed and accuracy of the order fulfillment process. When operations run faster and more efficiently, companies can stay on top of their business and provide greater customer satisfaction.
Reduced Cost and Time
With increased speed comes reduced cost and time. The entire process, from a customer’s order being made to it arriving on their doorstep, can be done within 48 hours. Services like Amazon Prime have been streamlined to keep robotics and workers on track, and update the customer with automated messages of the shipment status. Amazon uses tens of thousands of robots to assist in warehouse procedures, and they save a lot of money and time because of them. Google Inc. is even looking into fixed-wing drones that deliver packages to customers even faster than ground vehicles.
Robotics has supported the growth of many companies over the last few years. Using computer-vision and machine deep-learning technologies, robots can pick items one at a time and package them. They are able to locate products sitting somewhere on a specific stack of shelves, safely retrieve them, and pack them into cardboard shipping boxes neatly and carefully.
Get Logistics and Warehouse Robotics Support at LSS
Lean Supply Solutions can help you if you are looking for a third-party logistics company with the latest technology. We make ourselves aware of the rising trends in e-commerce warehouses and always strive to stay up to date. We commit to being aware of our clients’ operational challenges as they arise and help them get the most out of their processes. Our third-party logistics, packaging, and supply chain management can streamline your processes for better success. By striving to ensure that the right products are provided to the right customers at the right time, Lean Supply Solutions is able to offer consistent, accurate, and quality results. To learn more about outsourcing to our 3PL distribution team, or to ask any questions, contact us at 905-482-2590.
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The digital revolution has had a profound effect on delivery logistics and supply chain management. The Internet of Things (IoT)—the use of the Internet to interconnect computing devices embedded in everyday objects, enabling them to transfer various data—has changed how delivery and fulfillment companies conduct and manage their operations. In the modern supply chain, IoT is making the process more efficient, and here’s how.
IoT Enhances Product Traceability in the Supply Chain
One of the first aspects of the supply chain that will be positively impacted by IoT is product traceability. These technologies can connect products, which each transmit their location and condition. Because of this, there is a better opportunity to converge back office systems, and prevent the need for proprietary hardware. By connecting products, businesses will also have the opportunity to gather data about product performance and consumer use of products, that have never been visible before.
IoT for Inventory and Fleet Management
Technology like active and passive RFID tags, which provide data on the items to which they are attached, is just one example of how IoT is used in inventory management. Internet-connected trackers, are another example. They use long-range networks or Low Power Wide Area Networks (LPWANs) to track specific items as they are being transported from one location to another. Additional examples include Bluetooth tags, and Near Field Communication (NFC) tags. In terms of fleet management, companies deploy IoT technology for physical asset movement and delivery, consumer transportation, and field service vehicles. This makes their processes more efficient, and much like warehouse and inventory management, the solutions include tracking technologies like GPS to gather various data in real-time while trucks or vehicles are on the road.
IoT Improves Product Visibility
IoT increases product visibility in the supply chain and allows managers to see important data for the material handling equipment, packages, vehicles, and warehouses, from any device. Some of these devices include GPS and RFID readers. With advanced technologies, sensors, and a supply network that knows how to operate these tools properly, businesses will be able to predict, correct, and prevent problems in the supply chain.
Outsource Your Operations to Knowledgeable Fulfillment Team
Switching to IoT applications in logistics might be a frustrating and confusing process if you’re a company who has done things the traditional way for many years. But instead of missing out on this grand opportunity to grow your business, consider outsourcing your operations to a fulfillment team that is knowledgeable about IoT. If you’re looking for the right company to partner with that meets your needs as a business, Lean Supply Solutions is the answer. We rise to the challenge of meeting our clients’ needs through our services which include product fulfillment, warehousing and distribution, e-commerce fulfillment, warehouse pick-and-pack, order fulfillment, and more. We can offer you consistent, accurate, and quality results, and we are experts with the latest tools and technology. To learn more about outsourcing to our 3PL distribution team, or to ask any questions, contact us at 905-482-2590.
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A contract packaging service, also known as a co-packer, is an organization that provides supply chain services such as warehousing pick-and-pack, equipment rental, and more. These companies can provide businesses with total turnkey solutions, or labour. Outsourcing your packaging and warehousing operations with a custom packaging company can benefit your business in many ways. But, before you settle on a co-packing company, it is important to make sure it is aware of your needs. By informing the contract packager of your goals, you’ll be able to discuss and identify if they are the right team for you to work with. Here are three important aspects to consider when choosing a contract packaging company.
Three Things to Consider When Choosing a Contract Packager
Flexibility and Co-Packing of Packaging Service
Packaging and repackaging in the supply chain will always go through changes, and the co-packer should be able to guarantee their ability to respond quickly and make adequate changes to prevent any problems along the way. It is important to ask and find out how the company would meet challenges such as changes in planning, scheduling, and management. Many packaging companies will charge extra for last-minute or rushed projects, which you should expect. It is more important to focus on their ability to adapt to changes.
Capability and Location of Contract Packager
The company you desire to work with should never take for granted aspects such as maintaining machinery and the workspace required. You should ask your contractor what equipment they would use for your project, and request a walk-through of their recommended process. They should also have headquarters in close proximity to where your project will be the most effective. You should be able to reach your end customer or distribution centre as easily and quickly as possible. This will save you costs in terms of shipping and packaging. It will also help you build stronger relationships and explain your expectations clearly to your partner company.
Quality and Cost
Cost may be an important aspect to consider for your business, but it is not the most important factor that influences a successful packaging partnership. You should be budgeting 10% of the total cost for packaging, but be aware that this budget includes materials as well as paying your service vendors. Once you have considered the other factors, then you can negotiate your price with the contract marketing manufacturers as long as they are reliable, resourceful, and responsive to your needs.
Hire a Contract Packager from the GTA
If your business operates in the Greater Toronto Area, you could benefit from working with a reliable company that has warehouse locations and provides operations management within that area. If you’re looking for the right company to partner with that meets your needs as a business, Lean Supply Solutions is the answer. We rise to the challenge of meeting our clients’ needs through our services which include product fulfillment, warehousing and distribution, e-commerce fulfillment, warehouse pick-and-pack, and order fulfillment. We can offer you consistent, accurate, and quality results. To learn more about outsourcing to our 3PL distribution team, or to ask any questions, contact us at 905-482-2590.
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Warehousing and distribution services can get complex, especially when products need to be shipped from location to location without delay. We know that warehouse space is commonly used when retailers need a more long-term storage option, and that distribution centres are used for short-term storage—so what are cross-docking warehouses used for? Cross-docking is used when items are to be shipped from the manufacturing plant directly to the customers, with little to no material handling in between. This strategy has had a profound impact on retail warehousing and supply chain services. What does cross-docking mean for supply chain management and e-commerce fulfillment services in Toronto? Keep on reading to find out.
Enhances Inventory Management
Inventory management becomes more complex when items need to be organized and kept track of in a warehouse for a longer period of time. Since items are in and out almost immediately with cross- docking, it makes it easier for providers to keep track of their items. Cross-docking decreases the likelihood of items being lost and/or damaged, since the turnaround period is so fast.
Reduces the Need for Warehouse Space
There’s much less demand for warehouse space when e-commerce businesses take advantage of cross-docking. Not as many items need to be stored, and products are typically only in the warehouse for a short period of time until they’re shipped out. This allows smaller warehouses to increase their productivity and move items even faster than warehouses with more storage space.
Decreases the Cost of the Supply Chain
The cost of your supply chain can be greatly reduced with cross-docking. It can ship multiple orders at the same time, and even utilizes less labour, such as warehouse pick and packers, for example. Cross-docking eliminates the cost of inventory and product rotations, and you can save a ton on freight when you consolidate less-than-truckload shipments into full loads.
Boosts Service Levels
Since items are shipped in bulk with cross-docking, there will be more flexibility further down the supply chain to accommodate unforeseen changes. This aids in creating a more accurate and responsive order fulfillment process, with shorter order cycles.
As one of the leading logistics service providers in Toronto, Lean Supply Solutions can help you create an efficient end-to-end supply strategy to ensure your customers receive their parcel in tact and on time, while remaining cost effective for you. Our customized services will give you a competitive edge against your competitors, and have you come out on top, every time. Whether you’re looking for contract logistics, manufacturing support, or complete 4PL services, we have the solution for you. Contact us today to learn more about our services, and how we can take your order fulfillment process to the next level.
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The rise of global e-commerce product fulfillment has led to an increase in returns processing and costs due to customer actions. Customers can now browse for products they want online, order them to arrive at their doorstep, and test them out. But without seeing the item in their hands as they would at a retail store, they face the risk of ordering items that aren’t exactly what they’re looking for. Also, if you are managing your shipping on your own, there may be a higher risk of damaged items. The rise of e-commerce is one of the biggest operational challenges for reverse logistics services companies, and as more retailers offer free shipping, more consumers will be taking advantage of product returns. The power has shifted towards customers and away from retailers. Despite these changing trends in the reverse supply chain, you don’t have to fall by the wayside. Here is what you need to know about the changes in logistics due to e-commerce, and how you can save money and perform more efficiently.
How e-Commerce Influences Logistics and Retail
Years ago, independent retailers had a harder time competing with automated warehouses and cargo barges like Walmart’s. These large companies had better ability to draw in mass numbers of customers and meet all their needs in one location. However, the rise of e-commerce has almost flipped this scenario. Companies that operate through e-commerce are now rising in popularity, and physical retailers are having a harder time competing. Physical retailers that have not adopted e-commerce practices are threatened by the success of online counterparts. Based on this dramatic shift, it is safe to assume that brick-and-mortar retailers should adopt e-commerce as well. Working with a third-party logistics (3PL) and supply chain service can help you manage your shipping and retail e-commerce shift so you can focus on your marketing (web content and advertisements).
Return Process: Managing, Outsourcing, and Shipping
Managing returns and orders in the same space is challenging and it is not viable for many businesses because of the differing margins. The cost to process returns is usually high, while the residual value of goods is usually low. These problems can be reduced by working with a 3PL provider that is able to handle returns and provide flexibility within the supply chain. They can also mitigate costs and capitalize on external efficiencies. Outsourcing returns processes does not eliminate the need for inventory space, but it shifts them to a company that has enough space and warehouse management to handle it. Since 3PL companies also handle transportation and distribution, you can process products much more efficiently and cost effectively.
Reverse Logistics: How Retailers Can Save Money
Processing a return and repurposing, reconditioning, or recycling the goods can be costly in terms of time and finances for the merchant. Reverse logistics can actually cut into your profits by up to 20% per year. The rise of e-commerce makes this even worse as customers can order an item online—a shirt for example—find out it does not fit, and send it back without having to go to a retail store. The convenience of e-commerce puts all the control in the hands of the consumers and removes it from the retailer. So how can retailers save money? The answer is simple: outsource the process to a 3PL company. Retailers can claim a significant percentage of the total product cost by effectively setting up a reverse logistics function with a 3PL provider. They can resell the product, recycle it, remanufacture it, and more, so you don’t have to.
e-Commerce: Impact of New Mobile Trends on Logistics
These aforementioned effects are changing standard processes and companies should start adapting sooner rather than later. Distributors that take the time to understand these changes can prepare to become one of the leading logistics and supply chains partners of the future. The following items are new trends affecting the logistics system due to mobile commerce.
- Systems must be frequently updated to prevent future problems within the chain
- Web design must be responsive and optimized for customers to easily view pages on smartphones, tablets, and other mobile devices
- Vendors and companies want access to Internet-based wholesale environments to simplify the ordering process
- Companies should all have mobile apps, which quickly load on smartphones and provide information at the tap of a finger
- Integration must be seamless so shoppers can have instant order capabilities and real-time inventory updates
- Advertising will be more automated thanks to Google AdWords, Facebook Ads, and other online ad agencies (pay-per-click (PPC) marketing campaigns)
- Inventory management will be more data-based
Outsource Your e-Commerce Fulfillment with Lean Supply Solutions
Working with e-commerce fulfillment services in Toronto can help you manage the shift to online retailing so you can focus on making your business and brand more accessible to shoppers. Some warehousing and distribution order fulfillment services in the USA are quickly learning and adapting their processes to implement functions that support the growth of e-commerce, and they can help you, too. If you’re looking for the right company to partner with, Lean Supply Solutions is the answer. We rise to the challenge of meeting our clients’ needs through our services, which include product fulfillment, warehousing and distribution, e-commerce fulfillment, warehousing pick and pack, and order fulfillment. Lean Supply Solutions is able to offer consistent, accurate, and quality results. To learn more about outsourcing to our 3PL distribution team, or to ask any questions, contact us at 905-482-2590.
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Having steady product management and outbound shipments to customers can help any company be successful. But when products are being mishandled, or arrive defective from the manufacturer, it can but a damper on your warehousing and distribution plans, and cause you a lot of frustration. Taking up a product rework project for those items may be the first solution that comes to mind, but before taking the leap, here are three important areas to consider first.
The Cost of Product Rework
It is important to consider the cost on product rework before asking your supplier to take on the project. When it comes to the quality of a bulk of items, a major factor in fixing the problems is how much time you have. Inspection, undoing the error, and then fixing it will take time, so you must decide if the project is worth it. Time will be excessive if the order quantity is relatively small, and if the product is a low-cost promotional item. In some cases, rework can be expensive if the value of an order is low. If the issue is something simpler, such as untrimmed threads on a t-shirt, the factory staff can more easily notice and fix the problem without taking up too much time. Be sure to consider the cost to the factory and how much time you need before requesting a rework.
The Possibility of Quality Defects
In terms of defective goods, the risks are even higher. It is important to consider the possible negative effects of fixing these defective goods. Product rework almost always requires additional product handling by the production staff. Product handling is often the cause of quality defects in the first place. Weighing the benefits of product rework vs. the risks of new defects through this process can help you decide how to address quality issues.
How Rework Will Impact the Shipping Deadlines
Customers expect a certain level of product quality and their items delivered at a reasonable time. However, it can be a balancing act for importers as they try to fix problems with product quality before the date they must leave the factory. In some cases, you may feel the need to skip rework to meet a desired shipping deadline. This balancing act can be extra challenging if your supplier works with sub-suppliers and rework companies to manufacture different parts of the product. Some suppliers are unable to fix issues with parts that come from sub-suppliers, which means they must wait for their sub-suppliers to fix the issue, then once the items are received, the suppliers must then process and ship out the items, adding to the delay.
Outsource Your Product Rework Projects
If you’re looking for product fulfillment and shipping support for your product rework, a reliable option is to work with an outsourced order fulfillment service company. Lean Supply Solutions can help you find solutions for your product rework plans. We rise to the challenge of meeting our clients’ needs through our services which include product fulfillment, warehousing and distribution, e-commerce fulfillment, pick-and-pack services, and order fulfillment. By striving to ensure that the right products are provided to the right customers at the right time, Lean Supply Solutions is able to offer consistent, accurate, and quality results. To learn more about outsourcing to our 3PL distribution team, or to ask any questions, contact us at 905-482-2590.
- Published in Blog