A Proactive Guide to Navigating Shipping Delays and Exceptions in Your Supply Chain
For a customer, the words “shipping delays” can lead to frustration, disappointment, and potentially, a lack of trust in a company.
A delay in receiving goods from a business or supplier can cause a ripple effect in the supply chain. It not only affects the customer but also other areas of the supply chain. But having a well-managed system in place can help prevent, or at least reduce, some of the challenges businesses face with delayed shipping of goods and services. Keep reading!
Common Causes of Shipping Delays
Shipping exceptions are a common occurrence in various industries, including retail, automotive, manufacturing, and commercial services. Oftentimes, these delays can be addressed and/or prevented with proper contingency planning. There are, however, times when businesses are at a standstill and at the mercy of supply chain disruptions. Here are some common causes of shipping delays and exceptions:
Weather-Related Disruptions
Mother Nature is often responsible for many shipping delays, particularly in North America and Europe. Variable weather conditions and natural disasters can halt a shipment of supplies or goods for days or weeks at a time. This is especially common with land deliveries and overseas transportation, even if a business has multiple fulfillment centres across the globe.
Transportation and Logistics Issues
Shipping delays can be directly and indirectly linked to transportation and logistics issues along the supply chain. With rising fuel prices, worker shortages, and an increase in online sales, transportation delays are at an all-time high. Labour-related issues are associated with low pay offerings, sick days, and strikes.
Customs and Regulatory Hurdles
International shipping has been a challenge for many businesses even before the recent global transporting issues. With tougher restrictions, rules, and regulations put in place at most borders around the world, customs clearance for shipments involves long delays.
Supplier and Manufacturing Delays
Supply chain disruptions from the suppliers and/or manufacturers can gravely impact the delivery times as scheduled. In recent years, these disruptions have been linked to conflicts among countries, shipping ports, and, of course, the global pandemic. With a worldwide labour shortage, economists predict supply chains will continue to have interruptions for years to come.
The Impact of Shipping Delays and Exceptions on the Supply Chain
The enormous impact delays and exceptions have on the supply chain cannot be properly measured. On the surface, these disruptions appear to only affect customer service and customer expectations, but behind the scenes, the effect is more profound.
Financial Implications
Financially, shipping delays can cripple a business, particularly if it becomes a reoccurrence within the supply chain. With every delayed shipment, a business can face increased costs in storage and inventory, penalties, returns, administration fees, and expedited shipping. In addition, a loss of revenue from poor customer experiences due to shipping delays can be significant for a business.
Customer Satisfaction and Loyalty
Delays within the supply chain can hurt the customer experience. Shipping delays are the number one complaint from customers who use e-commerce sites. In fact, customers these days expect their products delivered within days, if not hours. Dissatisfied customers may choose to take their business elsewhere, which opens the door for competitors to swoop in and acquire those customers instead.
Reputational Risks
A brand depends on its reputation to continue to survive in a competitive industry. Shipping delays can cause customers to lose trust in a brand, therefore affecting their support and promotion of a brand. By using social media platforms to voice their concerns, customers can create a negative public perception of a brand, which could affect their various partnerships in the business world.
Proactive Strategies to Mitigate Shipping Delays
In an ideal world, there would not be any shipping delays or exceptions along the entire supply chain. But, unfortunately, it’s a reality. To create a near-perfect logistics system, here are some strategies businesses can adopt to mitigate shipping delays:
Diversify Suppliers and Logistics Partners
Effective planning begins with building a resilient network of suppliers and logistic partners. Keeping updated on changing local regulations within the suppliers’ regions can prevent delays along the supply chain, particularly in the delivery sectors. Also, it’s important to work with multiple carriers for customer deliveries since ground, air, and door-to-door options may not be possible in some destinations.
Implement a Contingency Plan
To be successful, shipping departments must have a contingency plan for extreme weather, transportation issues, and other unforeseen incidents. Monitoring deliveries and weather conditions can help businesses create a contingency plan if certain patterns are observed often. This can include developing alternative delivery routes and shipping options. This contingency plan may also involve stockpiling certain items during peak seasons.
Strengthen Communication Channels
As customer satisfaction is one of the most important goals in the business world, having clear communication channels within the supply chain is crucial. Suppliers, carriers, and customers must have access to transparency and open communication to address any potential or existing shipping delays. By having direct interaction, businesses can be prepared with alternatives if deemed necessary to shorten delivery delays.
Invest in Technology
“Successful investing is about managing risk, not avoiding it”. This quote rings true in the e-commerce world when it comes to investing in technology to improve shipping. Real-time inventory software allows all parties involved to be informed via notifications about delivery statuses and/or delays. Technology enhances the customer experience while allowing businesses to monitor shipping through data analytics to identify potential problems.
Be Proactive in Shipping Management with Lean Supply Solutions
Protect your business’s reputation and financial future with Lean Supply Solutions’ supply chain optimization and logistics management services. We offer manufacturing support, consulting, project management, product and order fulfillment, and warehouse and distribution services customized to your needs. Contact us today to get a free quote on how we can help you navigate shipping delays and exceptions in your supply chain.
- Published in Blog
The Future of Inbound Automotive Logistics: Trends and Innovations
The automotive industry is constantly evolving, and so is the logistics involved in getting cars from the manufacturer to dealerships or customers. The future of inbound automotive logistics is all about technology and innovation. From artificial intelligence (AI) to blockchain technology for secure transactions, the industry is exploring new ways to streamline the supply chain and reduce costs. This blog post examines some automotive logistics trends and breakthroughs shaping the supply chain.
Trends That Are Shaping the Future of Inbound Automotive Logistics
As the demand for electric vehicles grows, logistics companies also need to adapt to the specific requirements of these vehicles. The future of inbound automotive logistics is exciting, and innovation is key to staying ahead in a rapidly changing industry.
Integration of Advanced Technologies
Advancements in technology are revolutionizing every sphere of business—and inbound automotive logistics is no exception. The integration of artificial intelligence (AI), the Internet of Things (IoT), and automation is pivotal in providing real-time visibility into the supply chain.
Automation in warehouses, from robotic forklifts to automated sorting systems, ensures that inbound processes are more efficient, accurate, and safer. Sensors placed on products, pallets, or vehicles transmit continuous data streams, enabling logistics professionals to track and monitor the status of shipments and inventory levels. Meanwhile, by leveraging AI algorithms, logistics companies can forecast demand, predict optimal stock levels, and route deliveries.
Related: The Role of Demand Management in Supply Chain Optimization
Shift Towards Electric Vehicles
The global shift towards electric vehicles (EVs) has begun. In Canada, all passenger vehicles, including cars, SUVs, crossovers, and light trucks must be hydrogen-powered, electric, or hybrid by the year 2035.
That said, electric vehicle (EV) production demands new parts and battery management systems. However, the handling, storage, and transportation of these components require specialized procedures, which inbound logistics must adapt to. The sourcing and transportation of lithium for batteries, for example, present both challenges and opportunities for logistics companies. The procurement of these materials often requires establishing new supplier relationships and routes, while also grappling with safety and environmental regulations.
Industry 4.0 and Automation
Automation is a cornerstone of Industry 4.0 within the automotive industry. Robotics, automatic assembly systems, and simulation testing operations provide faster and more efficient delivery within the plant, warehouse, and along the transportation system.
But beyond assembly lines, automated solutions can significantly optimize warehouse and transportation operations, leading to considerable speed, accuracy, and cost reduction. They can streamline complex logistics scenarios, adapt to changes on the fly, and minimize the potential for human error.
Sustainable Practices
The push for sustainability permeates every aspect of automotive logistics. With governments demanding that auto manufacturers reduce their carbon footprint and focus on safe, sustainable practices, companies must adopt sustainable practices such as eco-friendly packaging materials and fuel-efficient transportation modes.
Advancements in bio-based packaging options and alternative fuels are playing a significant role in reducing the carbon footprint of logistics activities.
Data-Driven Decision Making
Automotive logistics is no stranger to using real-time data analytics to streamline operations. Real-time data analytics enables companies to refine transportation routes, manage inventories proactively, and predict maintenance cycles, leading to smoother and more cost-effective logistics operations.
In addition, machine learning algorithms can predict machinery wear and tear, weather conditions, traffic patterns, and other related challenges, helping to keep equipment and vehicles in optimal condition. Route optimization not only reduces fuel consumption but also ensures timely deliveries.
Collaboration and Ecosystem Integration
Across the automotive industry, more stakeholders are collaborating to open new markets and enhance the development of newer technology. The parties involved are expanding to include leading technology strategists, tech companies, and big-money investors to provide safer and more efficient transportation options.
Integrating data across platforms enhances communication and efficiency. It provides a unified view of the supply chain, enabling stakeholders to respond quickly to shifts in demand or supply chain disruptions.
Key Innovations to Watch
In the realm of automotive logistics, several technologies stand out for their potential to disrupt the traditional ways of operating.
Autonomous Vehicles for Delivery
With drones and self-driving vehicles becoming a common sight in many districts, the use of autonomous delivery vehicles and technology is increasing. This technology is being used for “last-mile delivery” wherein a product is in the final steps of the journey to the consumer. These technologies, however, must contend with evolving regulations and safety standards.
Blockchain for Transparency and Traceability
Blockchain technology has been marked as a reliable source of transparency and traceability within the supply chain system. Using the precision of real-time data, this technology allows for cost-saving measures through sustainable practices. In addition to better data management, it also leads to faster order processing without having a surplus of inventory as every sector of the supply chain has the same real-time information.
3D Printing of Parts
Using 3D printing for on demand production of spare parts has been a game-changer for many manufacturing companies in the automotive field. Using advanced equipment and producing 3D spare parts can help lower costs, reduce stockouts and overstocks, and boost customer satisfaction. With the use of this technology, manufacturers can shorten lead times and the need to readjust machinery for design changes.
Hyperloop Technology for High-Speed Transportation
Though still in conceptual stages, hyperloop technology was first introduced in 2013 as a mega high-speed transportation method. Hyperloop technology could revolutionize high-speed transportation of goods, significantly reducing transit times and potentially altering global supply chain dynamics.
Learn More About Lean Supply Solutions’ Expertise in Innovative Logistics Solutions
Inbound automotive logistics is poised for a transformation, propelled by technological innovation and the necessity for greater sustainability. At Lean Supply Solutions, integrated customized logistics solutions are a priority. As a leading provider of global supply chain management, we offer lean processes, leading-edge IT systems, and world-class systems to all of our clientele.
Contact us to learn how our innovative logistic solutions can better manage your business with cost-saving measures.
- Published in Blog
What Is the Difference between a 3PL and 4PL Provider?
Fourth-party logistics (4PL) providers have a huge role within the supply chain. Not only do they assume many of the same roles as third-party logistics (3PL) providers, but they also take on a bigger responsibility in helping the business clients reach their goals.
The main difference between a 3PL vs. 4PL provider is the level of accountability and control. 4PLs are more like trusted advisors and the customer often relies heavily on their data and services to grow and meet their business goals. Depending on your business size and goals, one of these options will be right for you. For a deeper look at the difference between these two types of logistics management, here’s what you need to know.
What Is 4PL?
Fourth-party logistics is a model in which manufacturers outsource both the organization and management of their supply chain to an external provider. 4PL offers a higher level of effective supply chain management to customers, which allows manufacturers to completely outsource their logistics process to external professionals for better management.
For example, the manufacture of a product will outsource aspects such as logistics, packaging, warehousing, and delivery of their products to a 4PL company. A 4PL company will then take control all these operations so that the manufacturer or retailer can focus on other aspects of their business.
These services include:
- Freight sourcing strategies
- Logistics
- Analysis of transportation expenses
- Analysis of carrier performance
- Effective 3PL management
- Business planning
- Project management
- Management of inbound, outbound, and reverse logistics
- Coordination of a wide supplier base
- Network analysis and designs
- Analysis of capacity utilization
- Inventory planning and management
Advantages of 4PL
- Wider Management of Operations: Shipping, distribution, warehousing, physical sites, and information flow are all managed by the provider.
- Information Technology: Software and automation are processes included in 4PL services to improve communication across the network. Providers can offer valuable information technology and software that increases visibility on a real-time basis.
- Solution-Oriented Methods: 4PL providers aim to design the solution first to meet the business’ requirements. They have expertise of end-to-end operations that relate to warehousing, distribution, freight, and information technology, and provide the best solutions for the client.
Disadvantages of 4PL
- Less control over fulfillment and logistics processes
- Possibility of being cost-prohibitive for start-up organizations and small businesses
What Is 3PL?
Third-party logistics involves a manufacturer maintaining oversight of their supply chain but outsourcing transportation and logistics operations to a 3PL provider. This model is similar to 4PL in many ways, but 3PL providers focus on logistics such as inventory storage, inventory management, customs brokerage, freight forwarding, contract management, picking and packing, crossdocking, and IT solutions. Unlike a 4PL, 3PL providers will not oversee the entire supply chain and organization.
Advantages of 3PL
- Resource Network: A 3PL provider has a large resource network that provides advantages for in-house supply chains. They will manage all the logistics for a business from beginning to end. With their relationships and discounts, they can save you money on overhead and provide you with faster service.
- Save Time and Money: A 3PL provider will eliminate your need to invest in warehouse space, technology, transportation, and staff to execute the logistics process. They can also manage billing, audits, training, staffing, and optimization.
- Scalability and Flexibility: 3PL providers can also scale space, transportation, and labour according to your inventory needs.
Disadvantages of 3PL
- Less inventory control
- Costly expense if customer orders are low
- Suitable for small-to-medium businesses, but not large ones
- Limited control over the customer experience and fulfillment
The Main Differences between 4PL and 3PL
The main difference between a 3PL provider and a 4PL provider is that a 4PL handles the entire supply chain, while a 3PL focuses on logistics. Each one provides its own advantages depending on your situation, so understanding what you get with each provider will help you make the right decisions for your company.
Here are some of the key differences between the two options:
- 4PL providers are better for medium-to-large businesses, while 3PL providers are more suitable for small-to-medium businesses.
- 4PL providers function at the optimization and integration level while 3PL providers focus more on daily operations.
- 4PL providers may own assets like trucks and warehouses while 3PL providers generally don’t typically own these assets.
- 4PL companies can effectively coordinate the activities of 3PL providers.
- 4PL providers provide the highest level of logistics services for a great value while 3PL providers are more focused on one-off transactions.
- 4PL providers maintain a single point of contact for every business’ supply chain while with 3PL providers, businesses often need to manage certain aspects of the supply process internally.
Choose Lean Supply Solutions for 3PL or 4PL Services
If you have a start-up or small to medium-sized business 3PL services will be the better option for you. They will help you manage your warehousing and distribution so you can focus on marketing and sales as your business grows. However, if you need a wider range of services for your medium to large-sized organization a 4PL provider will be better suited to you.
The good news is that Lean Supply Solutions offers both. We offer 3PL and 4PL services, depending on what works best for our clients. While you get the logistics support you need, we will also ensure you get a return on your investment.
Our services include contract logistics, e-commerce fulfillment services, inventory planning and management, supply chain management and optimization, pick-and-pack services, freight and warehousing, reverse logistics management, and more.
We rise to the challenge of understanding our customers’ needs and providing customized solutions to help them succeed. To learn more about outsourcing to our 3PL or 4PL services or to ask any questions, contact us today.
- Published in Blog
Quick Guide to Understand the Retail Order Fulfillment Process and Optimization
For many companies, their e-commerce sales have outperformed those of their brick-and-mortar store sales. Now, in light of the global pandemic, companies are seeing their online sales skyrocket to new heights. In 2020, after merchants closed their doors and adapted to online retail avenues, many quickly realized the difference between delivering products to customers and having them come to the store.
The fulfillment process has never been more important to retailers. Each order placed online needs to be picked from available inventory, packed in boxes, properly labelled for shipment, and physically delivered to the customer. There are retail fulfillment costs that come with this process, too.
If you want to truly embrace what it means to be an omnichannel business, you’ll need to improve your retail fulfillment process and get professional logistics management to help you with the heavy lifting. What is retail fulfillment? How can a logistics provider help you scale your e-commerce business? Here’s everything you need to know to optimize.
What Is Retail Fulfillment?
Retail fulfillment involves the assembly and shipment of a customer product order. Instead of a customer going to a physical store to buy the items they want, they can visit your website and purchase the items they want. The e-commerce platform allows this notification to arrive to the fulfillment centre, where they will ensure the correct products are picked, packed, and delivered to the customer.
The Importance of the Retail Fulfillment Process
Retail fulfilment is important to your online because it directly impacts customer satisfaction and profits. Although you may be an excellent salesperson, you still need to consider the costs and time to pack orders, ship them out, and deliver them to your customers within an acceptable time frame. If you cannot deliver on these guarantees each time your customers place orders, they will happily move on to a retailer that can.
Working with a third-party logistics (3PL) provider to manage your retail fulfillment process is necessary to helping your business grow. Their efficient processes and management of customer orders will help you scale as demand increases, so you can also make more profits.
Workflow of the Retail Fulfillment Process
Receiving New Inventory
As products leave your inventory to go to your customers, you will need to order more. If you have an e-commerce system in place, you will likely get a lot more orders than your local shoppers. With a retail fulfillment provider, you will be more equipped to manage reorder quantities and have a deeper understanding of inventory forecasting.
When new inventory comes into your fulfillment centre, each SKU will get a storage bin, shelf, or pallet, and will be organized into the physical and digital system with proper documentation. A warehouse management team can help you implement the right organization, infrastructure, software, and processes to track your inventory.
Warehousing
After the inventory is stored, the next step is to use those organized products to fulfill customer orders. Your stock levels will need to be monitored to ensure that you replenish items as they are sold to prevent stockouts.
Picking and Packing
When a customer places an order and it has been processed in your queue, a picking list is generated. This list is given to warehouse workers to retrieve the products and prepare them for packing. Most deliveries are sent in durable cardboard boxes or poly mailers. These containers may be filled with stuffing to protect the products from bouncing around and getting broken during delivery.
Shipping Order
The last step in the fulfillment process is shipping. The item will be shipped or delivered to the customer and should arrive before the estimated date as posted on your website after they checkout the item. A 3PL provider that has great relationships with shipping companies and drivers can ensure that your products will arrive to your customers on time.
Retail Fulfillment Optimization
Selecting a Fulfilment Centre
The closer your fulfillment centre is to your customers, the more affordable and simpler your shipping process will be. But even with international customers, you can help customers get their orders faster while reducing shipping costs if you choose a fulfillment provider with strategic locations.
Integrated Fulfillment Software
When choosing your 3PL partner, be sure that they have integrated fulfillment software and technology. Their software should seamlessly integrate with the e-commerce platform and online marketplace to better manage orders across sales channels.
As soon as an order is placed online, your fulfillment staff will get the alert to pick, pack, and ship the right items to the customer. Then, tracking information can be sent to the platform or marketplace and shared with your customers when you ship their orders.
Shipping Time
Amazon’s lightning-speed two-day shipping is the new expectation, so customers want to know that they won’t have to wait long between the time they checkout a purchase online and receive the item at their door. Choosing a 3PL provider with strategically located distribution centers will save you big time on delivery and shipping. You can reduce your fulfillment time without paying for expedited costs.
Choose Lean Supply Solutions
If you’re looking for quality retail order fulfillment support and want to partner with a company near you, Lean Supply Solutions is your solution. We offer extensive e-commerce solutions to a wide range of retailers around the world and provide an assortment of services to help your business grow. Contact us today to learn how we can help you improve your supply chain operations.
- Published in Blog
Supply Chain Management: How Does It Work and What Are the Main Goals?
Any business that manufactures, sells, and ships products both domestically and internationally needs a reliable supply chain and logistics management system in place. A strategically structured and well-managed supply chain can help streamline and build upon various operations that are either in the development phase or have already been established within your business. Your supply chain is the backbone of your business. It guarantees that your products are manufactured, packaged, and shipped out to your customers as efficiently as possible. In many ways, a supply chain should run like a well-oiled machine. Products are purchased, sorted, undergo a rigorous quality control method, and then sent out to expecting customers.
That’s how supply meets demand. So, what are the other main goals of forming a strategic supply chain and logistics management operation for your business? Here we outline some of the ways in which proficient supply chain operations can help make your business better.
Improve Product Development and Shipping Efficiency
Well-structured supply chain and logistics management strategies have one main goal in mind: to get products into the hands of your customers as quickly, efficiently, and cost-effectively as possible. Improving your supply chain operations can help you save time, money, and resources that can be put toward boosting your business practices and customer experiences.
Build Network Resiliency
Building a resilient and impenetrable supply chain and logistics management network can help you reach your business goals a lot faster with less strain on your company’s finances. A strong and flexible supply chain network can ensure that your products are shipped out to your clientele in as little time as possible with a narrow margin for error. At the same time, a strong, reliable, and flexible supply chain network is more easily adaptable to unexpected situations. Whether it’s a global pandemic that leads to border closures or diplomatic issues in other countries, you should have a feasible backup plan in place to ensure that your shipments are reaching their intended destinations, even if there’s a slight delay.
Excellent network resiliency strategies also ensure that you can reliably track each shipment and provide updates for your customers in real time on their whereabouts and status.
Improving Service Quality and Quality Control Methods
Customer service and quality control are two of the main cornerstones of running a successful and reputable business. By creating an efficient and reliable supply chain network, you can ensure that your customers are always satisfied with your service and the products you provide to them. Without a stringent supply chain system in place, distribution centers would be chaotic, disorganized, and impossible to manage on a large or even a small scale.
Instituting strong quality control methods can help you better manage your inventory and guarantee that every product that leaves your warehouse is the absolute best that you have to offer. Of course, the supply chain network doesn’t end at the warehouse. Producers, vendors, warehouses, transportation companies, distribution centers, and retailers are all part and parcel of a successful logistics management system. Each of these entities play an important role in delivering your goods and services to your customers, both individually and as part of the bigger picture. Therefore, they all need to do their part to incorporate top-notch customer service and product quality control methods that are representative of your company values on every level.
Enhancing Organizational Responsiveness
Understandably, there are certain unprecedented and unexpected events that can cause service and product delivery delays. These events are obviously out of your control, but that doesn’t mean you should neglect to have contingency plans in place. A well-thought out supply chain and logistics management system can help enhance organizational responsiveness even in tough economic times to help your company navigate uncharted territory.
Regardless of the size of your business, providing excellent customer service and answering all of your customers’ questions and concerns should be your top priority at all times. Even when you’re completely overwhelmed with customer inquiries, you should treat each one with equal importance. Building a robust customer care team accompanied by in-depth online tracking platforms is an excellent solution to this problem. It allows you to keep track of each ticket inquiry and make sure that each one is answered and resolved in order of urgency.
Creating More Stable Production and Distribution Lines
Successful supply chains start at the production and distribution line. It’s absolutely crucial to ensure that your inventory—whether it’s mass-produced or limited edition—is being produced in a safe, well-managed, and efficient distribution center or facility. Stringent safety and quality control measures should always be in place and strongly enforced throughout every step of the production process.
Essentially, every piece of inventory should be accounted for and you need to make sure that all of your warehouse and distribution center workers are well trained for their positions. In some cases, it might even be prudent to cross-train skilled workers who are at a certain level of seniority. As workers gain more on-the-job experience, you should encourage them to expand upon their skills by taking on more responsibilities and incentivize them with salary raises as they climb the corporate ladder.
The more you prove to your employees just how much you value their hard work, tenacity, and dedication to helping you grow your business, the more they’ll be inclined to continue doing so.
Securing Financial Success for Your Business
What better way is there to ensure the financial success of your business than to build a strong customer base that benefits from your products and services? Making your supply chain and logistics management processes as bulletproof and efficient as possible means trying your hardest to predict the unpredictable and have contingency plans in place. The reality is that there are multiple routes that lead to the same destinations and, metaphorically and literally speaking, the supply chain industry dictates that you always try to find the best ones available to you.
Rome wasn’t built in a day and neither was your business. It takes time, effort, and planning to pull yourself up by your bootstraps. Lean Supply Solutions is here to provide you with ample logistics management solutions and planning to help you overcome any and all obstacles your business is facing. Contact us to find out how we can maximize your supply chain productions.
- Published in Blog
- 1
- 2