One of the largest expenses for any business that sells products online is the cost for order fulfillment. In total, the order fulfillment process includes the storage, packing, and shipment of customer orders that come through an online store. These costs are beyond the expense of sourcing and purchasing the products being sold (regardless of what the business might be selling) plus all the marketing and other various cost of sales type expenses. Taken all together, this long list of different cost items have to be managed effectively for a business to maintain an acceptable profit margin. It goes without saying, a positive profit margin is vital to the viability and success of an ecommerce retailer. Fortunately, making the right decisions regarding the storing, packaging, and shipping costs are likely the easiest on the list to impact for the better.
Below is a list of the three primary cost considerations for ecommerce retailers when it comes to packing and shipping customer orders.
• Packing Supplies. These costs include the dunnage (or packing material) to fill in and around to protect the product, as well as the cost for the cardboard carton the goods are placed into. Basic shipping supplies and cartons from UPS, FedEx, and USPS are free, as is the logistics software they will provide – so that is one thing to take advantage of when you can. Of course shipping a lot of empty space in a bad fitting carton is a poor choice for a number of reasons. Your business may also prefer to brand packaging with a company logo and not a big UPS label! The additional cost of customized packaging has to be considered.
• Direct Shipment Costs. The choice of who ships the order (whether it is USPS, UPS, Fed Ex) and at what service level (Ground, Next Day Air, etc.) impact costs often more than any other single item. Shipping Ground Service instead of Next Day Air can often save over 2/3 off the shipping cost. Of course it can also add 4 or more days on to the delivery time. Volume means a lot when it comes to shipping with FedEx and UPS, so make sure your contract stipulates that discounts on shipping will kick in once you hit certain volume thresholds. There is a “hybrid” option in which a shipping company (such as FedEx or DHL Globalmail, or various others) acts as a mail integration partner. These companies will pick the packages up on their own trucks but then move the parcels to the USPS who make the final delivery to the consumer. This set up works only in a business to consumer model and generally requires a minimum daily amount of parcels (typically 250 per day). Using Social Media for logistics and supply chain companies.
• TIME. Is packing up customer orders in cartons, maintaining space for storage, and printing shipping labels the best use of your time? As a small business owner you should be asking yourself constantly throughout the day – Is what I am doing right now helping to make my business more successful? Managing your social media presence, marketing, or selling are all important priorities. Chances are you could make better use of your time than doing your own order fulfillment.
Thursday, November 18, 2010
Ecommerce Order Fulfillment
What are the different service and cost components of packing and shipping with a 3rd party fulfillment operation?
If you are an online retailer thinking about partnering with a 3rd party order fulfillment warehouse to handle your pack and ship operation you should understand the different categories of service a typical fulfillment house will provide.
This includes the process of receiving your goods into their warehouse. It begins with a thorough inspection of the product as it arrives to ensure there is no damage and the exact products and quantities match what is expected based on your direction and the Bill of Lading. On an ongoing basis it is important for the provider to maintain and report accurate inventory numbers. Storage requirements depend on the product but can include the facility maintaining a temperature controlled environment, custom racking, or on-shelf storage. Receiving and Storage rates are generally billed as either a per pallet cost, or a per package cost depending on the product.
An integral part of the fulfillment process is how orders get transmitted from you to the facility. This can happen as part of the integration set up with your ecommerce logistics software, EDI, or sometimes even a fax. As the orders are received, they are placed in a box or picked. The Order assembly costs are typically based on a flat per order cost that includes the cost of packaging the first item, and then an additional charge for additional items on that same order.
This would include the cost of the carton the order is shipped in, any material used to protect the product in the box, as well as the person’s time to construct the carton. These costs may or may not be included in the Order Charges detailed above. Remember, most of the costs for an order fulfillment operation are people’s time so each “action” takes time which is money.
The packaging expenses that go into preparing an order to be shipped (printing and affixing the shipping label, taping the boxes, etc.) are covered by the per Order Charge. But obviously one significant additional cost is for sending the package with FedEx, UPS, and USPS. If you have one, it is often preferable to use your company’s own account number and most fulfillment providers should allow you to do that. The order fulfillment company may offer a better contract with one of these small parcel shippers and be able to provide you will some additional discounts.
Here is a usefule article on Social Media for Logistics.
If you are an online retailer thinking about partnering with a 3rd party order fulfillment warehouse to handle your pack and ship operation you should understand the different categories of service a typical fulfillment house will provide.
This includes the process of receiving your goods into their warehouse. It begins with a thorough inspection of the product as it arrives to ensure there is no damage and the exact products and quantities match what is expected based on your direction and the Bill of Lading. On an ongoing basis it is important for the provider to maintain and report accurate inventory numbers. Storage requirements depend on the product but can include the facility maintaining a temperature controlled environment, custom racking, or on-shelf storage. Receiving and Storage rates are generally billed as either a per pallet cost, or a per package cost depending on the product.
An integral part of the fulfillment process is how orders get transmitted from you to the facility. This can happen as part of the integration set up with your ecommerce logistics software, EDI, or sometimes even a fax. As the orders are received, they are placed in a box or picked. The Order assembly costs are typically based on a flat per order cost that includes the cost of packaging the first item, and then an additional charge for additional items on that same order.
This would include the cost of the carton the order is shipped in, any material used to protect the product in the box, as well as the person’s time to construct the carton. These costs may or may not be included in the Order Charges detailed above. Remember, most of the costs for an order fulfillment operation are people’s time so each “action” takes time which is money.
The packaging expenses that go into preparing an order to be shipped (printing and affixing the shipping label, taping the boxes, etc.) are covered by the per Order Charge. But obviously one significant additional cost is for sending the package with FedEx, UPS, and USPS. If you have one, it is often preferable to use your company’s own account number and most fulfillment providers should allow you to do that. The order fulfillment company may offer a better contract with one of these small parcel shippers and be able to provide you will some additional discounts.
Here is a usefule article on Social Media for Logistics.
Shopping Carts and Order Fulfillment
So you have a successful store and maybe a website, and now you want to sell some products from your ecommerce store. Taking a brick and mortar retail presence and building a scalable ecommerce delivery solution can involve a few different resources to accomplish some success.
Here is a breakdown of the different functions that make up a complete ecommerce order fulfillment solution beyond just hosting your company’s website (and of course assuming you aren’t interested in creating all of this on your own).
From a process standpoint the website continues to act as the electronic billboard and hopefully it is capturing potential buyers and telling the world about what your company has to offer.
In a complete solution, your website will connect to an Ecommerce Software package. This logistics software will house product information, the shopping cart functionality, provide reporting, etc. It will then connect to a merchant account provider and your order fulfillment operation.
All your products available for purchase will be uploaded and maintained as part of the ecommerce software by you or your company’s designate, although appear to be on the your main site from the customer’s perspective.
At this point the process for communicating orders from the ecommerce software provider to your ecommerce order fulfillment provider would be established. This will be set up to be transparent to you and is straightforward to accomplish. Depending on the provider there may be some minor programming costs to automate the process.
Customers will look for and choose products, place them in a shopping cart similar to any other website. The work flows are standard and you should assume the integration for this part of the process will work seamlessly for the customer and be transparent to you.
Handling the payment transaction will possibly bring another party (the Merchant Account Provider) in to the process. To handle payment at the point of check out, you will either need to designate a separate Merchant Account Provider that will connect to the ecommerce software to handle the payment, or many software providers will provide the service.
Most systems also provide CRM (Customer Relationship Management) Tools that will provide you with information on its site users, which may be of value from a marketing perspective.
Here is a breakdown of the different functions that make up a complete ecommerce order fulfillment solution beyond just hosting your company’s website (and of course assuming you aren’t interested in creating all of this on your own).
From a process standpoint the website continues to act as the electronic billboard and hopefully it is capturing potential buyers and telling the world about what your company has to offer.
In a complete solution, your website will connect to an Ecommerce Software package. This logistics software will house product information, the shopping cart functionality, provide reporting, etc. It will then connect to a merchant account provider and your order fulfillment operation.
All your products available for purchase will be uploaded and maintained as part of the ecommerce software by you or your company’s designate, although appear to be on the your main site from the customer’s perspective.
At this point the process for communicating orders from the ecommerce software provider to your ecommerce order fulfillment provider would be established. This will be set up to be transparent to you and is straightforward to accomplish. Depending on the provider there may be some minor programming costs to automate the process.
Customers will look for and choose products, place them in a shopping cart similar to any other website. The work flows are standard and you should assume the integration for this part of the process will work seamlessly for the customer and be transparent to you.
Handling the payment transaction will possibly bring another party (the Merchant Account Provider) in to the process. To handle payment at the point of check out, you will either need to designate a separate Merchant Account Provider that will connect to the ecommerce software to handle the payment, or many software providers will provide the service.
Most systems also provide CRM (Customer Relationship Management) Tools that will provide you with information on its site users, which may be of value from a marketing perspective.
3 Ideas for a Logistics Company to Build a Presence in Social Media
Here are 3 ideas to begin building a presence in Social Media for your logistics company.
Start a Blog – A very effective way to establish credibility for your company and yourself is through a blog. It will also help your search engine optimization (SEO) efforts and social media marketing (SEM) – both of which help draw traffic to your website. A blog builds credibility by giving you the opportunity to post regular updates and content that will be of interest to your existing and potential customers. Are you an expert on logistics software? You can blog about that. Are you an expert on ecommerce order fulfillment, blog about that, etc. These updates should be educational and not overly promotional. Giving the opportunity for readers to comment will engage them in discussion and help you develop a deeper level of trusted advisor relationship. Becoming the expert on a topic, and then when a need comes up you will be who the customer thinks to go to first.
Post Customer Reviews and Testimonials – As part of your blog, website, Twitter, or anywhere else – make sure to promote and encourage customer feedback and reviews. Positive comments hold a lot more weight when a reader feels they are coming from an independent voice. It adds credibility to the message. But what about negative comments you ask? Use those as a chance to engage the person with thoughtful follow up and help to resolve the issue. Done right, this will turn the unhappy customer into a fan and win over potential clients who were watching the dialogue. Being willing to engage and talk to customers about the good and the bad is great for trust building in the market place.
Be Accessible – A social media presence is also about be available and responsive to the marketplace. Make sure your offer the chance for readers of your content to have the chance to comment, as well as contact you directly with questions. Needless to say providing emails and phone numbers is a given in addition to offering a contact us page.
Building a presence in social media is largely about building credibility for your logistics business. It is accomplished through educate, engagement, and in the end, consistency.
Start a Blog – A very effective way to establish credibility for your company and yourself is through a blog. It will also help your search engine optimization (SEO) efforts and social media marketing (SEM) – both of which help draw traffic to your website. A blog builds credibility by giving you the opportunity to post regular updates and content that will be of interest to your existing and potential customers. Are you an expert on logistics software? You can blog about that. Are you an expert on ecommerce order fulfillment, blog about that, etc. These updates should be educational and not overly promotional. Giving the opportunity for readers to comment will engage them in discussion and help you develop a deeper level of trusted advisor relationship. Becoming the expert on a topic, and then when a need comes up you will be who the customer thinks to go to first.
Post Customer Reviews and Testimonials – As part of your blog, website, Twitter, or anywhere else – make sure to promote and encourage customer feedback and reviews. Positive comments hold a lot more weight when a reader feels they are coming from an independent voice. It adds credibility to the message. But what about negative comments you ask? Use those as a chance to engage the person with thoughtful follow up and help to resolve the issue. Done right, this will turn the unhappy customer into a fan and win over potential clients who were watching the dialogue. Being willing to engage and talk to customers about the good and the bad is great for trust building in the market place.
Be Accessible – A social media presence is also about be available and responsive to the marketplace. Make sure your offer the chance for readers of your content to have the chance to comment, as well as contact you directly with questions. Needless to say providing emails and phone numbers is a given in addition to offering a contact us page.
Building a presence in social media is largely about building credibility for your logistics business. It is accomplished through educate, engagement, and in the end, consistency.
Sausage and Social Media
Online sausage retailer Sausage Obsession makes great use of social media to create traffic for its blog (www.sausageobsession.com).
Adding content like The History of Sausage and mulitple sausage recipes from cuisine all over the world is the content that drives the Sausage Obsession popularity.
Logistics companies can learn from these lessons. Presenting valuable content to readers and customers through quality blog posts and Twitter are what get people to your site. Logistics providers need social media to help create brand awareness and engage customers.
Social media, and specifically Twitter are great platforms for a logistics company to engage with customers. When it is done right, social media can win fans, repair relationships, and in the end grow revenue. When it is ignored or done poorly, social media can alienate customers and hurt your company’s brand.
Here is a group on LinkedIn: Social Media for Logistics.
http://knol.google.com/k/kenneth-kowal/3-ideas-for-a-logistics-company-to/4ilw4vkwik1x/19
Adding content like The History of Sausage and mulitple sausage recipes from cuisine all over the world is the content that drives the Sausage Obsession popularity.
Logistics companies can learn from these lessons. Presenting valuable content to readers and customers through quality blog posts and Twitter are what get people to your site. Logistics providers need social media to help create brand awareness and engage customers.
Social media, and specifically Twitter are great platforms for a logistics company to engage with customers. When it is done right, social media can win fans, repair relationships, and in the end grow revenue. When it is ignored or done poorly, social media can alienate customers and hurt your company’s brand.
Here is a group on LinkedIn: Social Media for Logistics.
http://knol.google.com/k/kenneth-kowal/3-ideas-for-a-logistics-company-to/4ilw4vkwik1x/19
Freight Invoice Audit For All Logistics
When visiting a local importer or online order fulfillment (ecommerce food order fulfillment) you usually end up sitting down with their logistics manager to learn how they were coping with these economic hardships and the flood of shifting freight rates and surcharges. I was surprised on the trust they placed in their transportation providers to invoice the right freight charges as per their negotiated rate agreements. Perhaps, more amazed to learn that their account payable department had a general naivety about what all those surcharges on the freight invoice meant. Using Social Media Logistics to help your shipping operation and customer service.
Logistics industry experts unwillingly acknowledge that it is not unusual for errors to be found in one of every three freight invoices. As the company does some Freight Invoice Audit they will discover errors on their invoices. These errors can usually range from invoicing the wrong shipper for the wrong movement they made to surcharge miscalculations upping the invoice of the freight a few more dollars.
A mainstay of the logistics and supply chain software industry that is gaining momentum in this economy is the industry of freight invoice audit. Every company is searching for a lot of ways to lower costs and get the maximum value out of their total transportation spend. One thing the shippers have in common is that they all have to pay their freight invoices because the carrier company usually doing an invoice pre-audit to avoid conflict which might arise in the future. Only a small percentage does detailed freight invoice audits. A lot of companies are still operating by the old-fashioned way, by filling out forms, checking the orders if it correspond with the purchase orders to bill of ladings to an excel rate sheets or scribbled a handwritten notes then writing out checks by hand and then mailing them.
In this budget tight economy where cash is the king and credit is continuously get an increasing tight, the corporate use their initiatives for obtaining SaaS-based freight audit software is absolutely gaining in importance. Corporate leadership knows the value about their logistics departments that are capable in making or breaking the company's foundation. And, failure to do freight invoice auditing is by far one of the biggest cash flow losses. That is the reason why an invoice pre-audit is needed.
Some companies outsource their freight invoice audit function. The greatest option is to utilize SaaS software which is affordable and quick to implement within your logistics and accounts payable departments; and easy to incorporate into your other systems. Companies using the logistics industry powerful Tariff-Trek!® and Pay-TreK!® software can swiftly audit freight invoices for accuracy saving money. In addition to freight audit, these software modules store carrier rates and customer pricing with the capacity to track costs in a real time as orders travel from purchase order to bill of leading to final delivery in the entire Logistics Management Lifecycle.
Smart logistics managers are busy analyzing and auditing their freight invoices. SaaS+plus(TMS) software is very much affordable and enables faster, more granular and event-driven decision-making with flawless visibility, collaboration and cost control in your entire Logistics Management Lifecycle.
Logistics industry experts unwillingly acknowledge that it is not unusual for errors to be found in one of every three freight invoices. As the company does some Freight Invoice Audit they will discover errors on their invoices. These errors can usually range from invoicing the wrong shipper for the wrong movement they made to surcharge miscalculations upping the invoice of the freight a few more dollars.
A mainstay of the logistics and supply chain software industry that is gaining momentum in this economy is the industry of freight invoice audit. Every company is searching for a lot of ways to lower costs and get the maximum value out of their total transportation spend. One thing the shippers have in common is that they all have to pay their freight invoices because the carrier company usually doing an invoice pre-audit to avoid conflict which might arise in the future. Only a small percentage does detailed freight invoice audits. A lot of companies are still operating by the old-fashioned way, by filling out forms, checking the orders if it correspond with the purchase orders to bill of ladings to an excel rate sheets or scribbled a handwritten notes then writing out checks by hand and then mailing them.
In this budget tight economy where cash is the king and credit is continuously get an increasing tight, the corporate use their initiatives for obtaining SaaS-based freight audit software is absolutely gaining in importance. Corporate leadership knows the value about their logistics departments that are capable in making or breaking the company's foundation. And, failure to do freight invoice auditing is by far one of the biggest cash flow losses. That is the reason why an invoice pre-audit is needed.
Some companies outsource their freight invoice audit function. The greatest option is to utilize SaaS software which is affordable and quick to implement within your logistics and accounts payable departments; and easy to incorporate into your other systems. Companies using the logistics industry powerful Tariff-Trek!® and Pay-TreK!® software can swiftly audit freight invoices for accuracy saving money. In addition to freight audit, these software modules store carrier rates and customer pricing with the capacity to track costs in a real time as orders travel from purchase order to bill of leading to final delivery in the entire Logistics Management Lifecycle.
Smart logistics managers are busy analyzing and auditing their freight invoices. SaaS+plus(TMS) software is very much affordable and enables faster, more granular and event-driven decision-making with flawless visibility, collaboration and cost control in your entire Logistics Management Lifecycle.
Wednesday, November 17, 2010
Getting Found on Google - SEO and Social Media for Logistics
Did you know that one HUGE benefit of using social media can be that it helps people find your logistics company when they search on Google? This idea is called SEO, or Search Engine Optimization, and it has to do with what results come up in Google when a user types in a certain search term.
For example, if someone types into Google "truckload carrier Pennsylvania", Google will do a search of all website and provide a list of relevant websites. Being on that first Google page of results for a company's key search terms is THE goal for marketers at every company. Are you are 3rd Party Logistics company? Then you want people to find you when they search on Google.
Here is a good article discussing how social media and SEO are connected.
http://www.emarketer.com/Article.aspx?R=1008046
Here is an interesting article on the effect of not having a plan for managing your social media presence. Replace the person in the story with your company name and the importance of managing social media becomes very apparent.
http://hbr.org/2010/11/managing-yourself-whats-your-personal-social-media-strategy/ar/1
In the end you can only influence the conversation and not control it.
_________________________
Read my EasyLogisticsManagement Blog. Find me and more information on Social Media for Logistics.
For example, if someone types into Google "truckload carrier Pennsylvania", Google will do a search of all website and provide a list of relevant websites. Being on that first Google page of results for a company's key search terms is THE goal for marketers at every company. Are you are 3rd Party Logistics company? Then you want people to find you when they search on Google.
Here is a good article discussing how social media and SEO are connected.
http://www.emarketer.com/Article.aspx?R=1008046
Here is an interesting article on the effect of not having a plan for managing your social media presence. Replace the person in the story with your company name and the importance of managing social media becomes very apparent.
http://hbr.org/2010/11/managing-yourself-whats-your-personal-social-media-strategy/ar/1
In the end you can only influence the conversation and not control it.
_________________________
Read my EasyLogisticsManagement Blog. Find me and more information on Social Media for Logistics.
An Overall Carrier Rate Manager
It may seem like an impossible thing to discover, however, finding a carrier by using only a telephone number is absolutely possible. The trick is simply to find the right and the best service to do it for you online. In carrier selection you must be keen and do background check of the chosen company to make sure that your package or cargo will always be safe due to the fact that there are so many carrier list available on the internet but does not have a good quality of work so be very attentive in choosing one.
There are usually two kinds of carrier search services. There are some that allows you to search for carriers using a computer or some companies allows you to search for your preferred carrier using your mobile phones, and those that allows you to search using a land line telephone number.
It is much easier and more reliable to find out a carrier using a land line telephone number because when using a land line telephone number, it is regularly as simple as typing in the number, and obtaining your desired result. In the case of mobile numbers, there is frequently a delay after the phone number was initially registered and not all sites list all numbers, in using your computer and internet in looking for one then there are so many carrier company claims they have the best which in fact they are not. Furthermore, now that number portability exists, it is very common for numbers to have been transferred to different carriers without registering that way on the reverse phone carrier searches.
To perform a search for a carrier by using the phone number, simply input the telephone number into the search field, and then click "search". This will bring you to another page with your desired results. When you selected a carrier company try to ask if they have routing guide compliance.
In choosing carrier company try to see the key points like having its own Transportation Management System or TMS, logistics software offers secure contracts in case of troubles, and a good carrier rates. By looking for those key points it will surely help you get the best and the fittest carrier company for you.
Typically, the search will present you with the carrier. However, some search services will also present you with reverse phone lookup information as well. So your search page will provide you with the carrier, the name associated with the telephone number, the address related with the telephone number and, on occasion, even a map and a direction that show you how to get there from your current location. When you are already on the carrier company office try to ask if they do some Freight Invoice Audit and sales quotations. When you are already convinced to make them your chosen carrier company try to reflect if you can have transportation savings.
This information can be beneficial for a number of reasons, if only to find out whether you have the same carrier as the person that you want to call so that you can use a same-carrier-only calling plan. Usually, you may have many other reasons for wanting to know the carriers telephone number, but no matter what they may be, finding out the information you needed is just that simple.
Routing Guide.
Social Media Logistics.
http://strugglingentrepreneur.com/2010/09/03/133-expertise-helps-ken-kowal-as-entrepreneur-in-fulfillment-and-shipping/
There are usually two kinds of carrier search services. There are some that allows you to search for carriers using a computer or some companies allows you to search for your preferred carrier using your mobile phones, and those that allows you to search using a land line telephone number.
It is much easier and more reliable to find out a carrier using a land line telephone number because when using a land line telephone number, it is regularly as simple as typing in the number, and obtaining your desired result. In the case of mobile numbers, there is frequently a delay after the phone number was initially registered and not all sites list all numbers, in using your computer and internet in looking for one then there are so many carrier company claims they have the best which in fact they are not. Furthermore, now that number portability exists, it is very common for numbers to have been transferred to different carriers without registering that way on the reverse phone carrier searches.
To perform a search for a carrier by using the phone number, simply input the telephone number into the search field, and then click "search". This will bring you to another page with your desired results. When you selected a carrier company try to ask if they have routing guide compliance.
In choosing carrier company try to see the key points like having its own Transportation Management System or TMS, logistics software offers secure contracts in case of troubles, and a good carrier rates. By looking for those key points it will surely help you get the best and the fittest carrier company for you.
Typically, the search will present you with the carrier. However, some search services will also present you with reverse phone lookup information as well. So your search page will provide you with the carrier, the name associated with the telephone number, the address related with the telephone number and, on occasion, even a map and a direction that show you how to get there from your current location. When you are already on the carrier company office try to ask if they do some Freight Invoice Audit and sales quotations. When you are already convinced to make them your chosen carrier company try to reflect if you can have transportation savings.
This information can be beneficial for a number of reasons, if only to find out whether you have the same carrier as the person that you want to call so that you can use a same-carrier-only calling plan. Usually, you may have many other reasons for wanting to know the carriers telephone number, but no matter what they may be, finding out the information you needed is just that simple.
Routing Guide.
Social Media Logistics.
http://strugglingentrepreneur.com/2010/09/03/133-expertise-helps-ken-kowal-as-entrepreneur-in-fulfillment-and-shipping/
Tuesday, November 16, 2010
How To Get The Best Routing Guide
Do you know certain company that uses a good strategy as routing guide compliance on their customers? Are your cargos safe when you entrust it to them and is it cost effective or offering a good price? That is the questions usually popping out on a suppliers mind when transporting their package to their customers.
Huge rate savings... not!
Do not expect huge rate reductions just because you have decided to investigate a company which uses a good strategy in reducing the transportation cost. Rates are usually governed by the market price and less about cost. You should be sharing your rate information with your chosen company so they can work with you to put together a rate that is enough for you. You may be wondering, if the company you chose cannot get a good rate savings, then what is the benefit? The benefits come from mode shifting, lesser freight rates, order tracking efficiencies, logistics spend management savings, consolidations, improved carrier management, shipment visibility and the most important is risk reduction.
Mode Selection
Are you usually shipping using LTL? By working with a good company you can leverage their computer tracking systems or check if they are using good Transportation Management System to observe patterns that would be candidates for consolidation into truckload shipments. For example, if you are shipping twice a week 12 pallets from Toronto to Chicago, you would save considerable amount of money by shipping one full truck load once a week. While this sounds very simple, these opportunities exist in your shipping data. Try to check that your chosen company have software to find such opportunities and can surely help you take advantage of them.
Order Tracking
How many times have you needed to pay for expedited shipments because something did not go as planned? The problem with a lot of computer tracking systems or Logistics Software TMS software packages that your preferred carrier use is that they end at their shipping docks. As soon as the truck is loaded, the order is complete. You know what really matter is the happiness of your customer who receives your product on time. Intergate Social Media Logistics Industry into your marketing plan.
Time Savings
Do you have a routing guide? Have you already spent a lot of time trying to enforce it with all your shipping locations? On top of that, even if people are following the routing guide, have you ever considered all the time your people spend calling the chosen carriers on the list to find someone who is available when you need one? There is a big time that will be wasted here. Should not your customer service people be servicing your customers instead of looking for trucks? Having an Automatic Carrier Selection Device will help you conserve time. I think you know where this is going. A carrier company will take on this responsibility. You will always.
http://strugglingentrepreneur.com/2010/09/03/133-expertise-helps-ken-kowal-as-entrepreneur-in-fulfillment-and-shipping/
Huge rate savings... not!
Do not expect huge rate reductions just because you have decided to investigate a company which uses a good strategy in reducing the transportation cost. Rates are usually governed by the market price and less about cost. You should be sharing your rate information with your chosen company so they can work with you to put together a rate that is enough for you. You may be wondering, if the company you chose cannot get a good rate savings, then what is the benefit? The benefits come from mode shifting, lesser freight rates, order tracking efficiencies, logistics spend management savings, consolidations, improved carrier management, shipment visibility and the most important is risk reduction.
Mode Selection
Are you usually shipping using LTL? By working with a good company you can leverage their computer tracking systems or check if they are using good Transportation Management System to observe patterns that would be candidates for consolidation into truckload shipments. For example, if you are shipping twice a week 12 pallets from Toronto to Chicago, you would save considerable amount of money by shipping one full truck load once a week. While this sounds very simple, these opportunities exist in your shipping data. Try to check that your chosen company have software to find such opportunities and can surely help you take advantage of them.
Order Tracking
How many times have you needed to pay for expedited shipments because something did not go as planned? The problem with a lot of computer tracking systems or Logistics Software TMS software packages that your preferred carrier use is that they end at their shipping docks. As soon as the truck is loaded, the order is complete. You know what really matter is the happiness of your customer who receives your product on time. Intergate Social Media Logistics Industry into your marketing plan.
Time Savings
Do you have a routing guide? Have you already spent a lot of time trying to enforce it with all your shipping locations? On top of that, even if people are following the routing guide, have you ever considered all the time your people spend calling the chosen carriers on the list to find someone who is available when you need one? There is a big time that will be wasted here. Should not your customer service people be servicing your customers instead of looking for trucks? Having an Automatic Carrier Selection Device will help you conserve time. I think you know where this is going. A carrier company will take on this responsibility. You will always.
http://strugglingentrepreneur.com/2010/09/03/133-expertise-helps-ken-kowal-as-entrepreneur-in-fulfillment-and-shipping/
Monday, November 15, 2010
Nduja Sausage
In Southern Italy’s Calabria Region the town of Spilinga barely makes the map, appearing as just another two goat village in the middle of the Italian country-side. Outside the small village square, the hills are littered with century-old stone structures and an aqueduct that invites a small number of tourists to venture beyond the small collection of shops and cafes that dot the center of town. But most tourists are not in Spilinga for the ancient buildings, they’ve come for the N’duja.
N’duja, pronounced “en-DOO-ya”, is a speciality of Spilinga. In short, N’duja is a spicy, soft, spreadable salami. Traditional N’duja is made from a finely ground fatty pork and often contains the lesser-used portions of the pig like the meat around the face, skin, kidney, lung and other offal mixed in with salt and a healthy portion of roasted red peperocino chili peppers that give the sausage its color and signature heat. This fiery mixture is then stuffed into a natural intestine casing, shaped with a net of twine, lightly smoked and hung to cure for several months depending on the recipe. The end result is something unlike anything you’ve tasted before. More contemporary varieties of N’duja use more common parts of the swine such as shoulder and belly but they lack unique texture and flavor found in Italy.
Foodies in the United States have taken kindly to N’duja as it’s now featured on the menus of Italian restaurants in larger cities throughout the country. The most common application of N’duja is spreading it on crusty bread as an appetizer. It can also be used as a pizza topping or blended into tomato sauce and tossed with pasta as in this recipe http://www.sausageobsession.com/2010/11/sausage-recipe-cavatelli-nduja/#more-780
No matter how you use it, it adds a smokey, spicy dimension to any dish that you can’t get from any other sausage. The closest comparable variety is Mexican chorizo, except chorizo isn’t spreadable and it’s not considered a ready-to-eat cured sausage.
N’duja has also made its way into fresh markets and specialty Italian stores in major metro areas like New York and Chicago. Perhaps the most commercial form of N’duja is produced by Chris Cosentino’s Bocallone artisan salumeria in San Francisco. Cosentino converted a small Portuguese sausage production facility in Oakland into a gourmet mecca for salted pig parts and he’s been spreading the good word of N’duja ever since. Although Bocallone does a great job with their product, it is believed to be a bit mainstream in flavor compared to the fiery and adventurous varieties made in Italy and by the charcuterie underground of home sausage-makers throughout the United States.
Regardless of where you get it or how it's produced, the first time you experience N'duja you'll want to explore it further pushing the boundaries of heat and texture to find one that suits you just right.
N’duja, pronounced “en-DOO-ya”, is a speciality of Spilinga. In short, N’duja is a spicy, soft, spreadable salami. Traditional N’duja is made from a finely ground fatty pork and often contains the lesser-used portions of the pig like the meat around the face, skin, kidney, lung and other offal mixed in with salt and a healthy portion of roasted red peperocino chili peppers that give the sausage its color and signature heat. This fiery mixture is then stuffed into a natural intestine casing, shaped with a net of twine, lightly smoked and hung to cure for several months depending on the recipe. The end result is something unlike anything you’ve tasted before. More contemporary varieties of N’duja use more common parts of the swine such as shoulder and belly but they lack unique texture and flavor found in Italy.
Foodies in the United States have taken kindly to N’duja as it’s now featured on the menus of Italian restaurants in larger cities throughout the country. The most common application of N’duja is spreading it on crusty bread as an appetizer. It can also be used as a pizza topping or blended into tomato sauce and tossed with pasta as in this recipe http://www.sausageobsession.com/2010/11/sausage-recipe-cavatelli-nduja/#more-780
No matter how you use it, it adds a smokey, spicy dimension to any dish that you can’t get from any other sausage. The closest comparable variety is Mexican chorizo, except chorizo isn’t spreadable and it’s not considered a ready-to-eat cured sausage.
N’duja has also made its way into fresh markets and specialty Italian stores in major metro areas like New York and Chicago. Perhaps the most commercial form of N’duja is produced by Chris Cosentino’s Bocallone artisan salumeria in San Francisco. Cosentino converted a small Portuguese sausage production facility in Oakland into a gourmet mecca for salted pig parts and he’s been spreading the good word of N’duja ever since. Although Bocallone does a great job with their product, it is believed to be a bit mainstream in flavor compared to the fiery and adventurous varieties made in Italy and by the charcuterie underground of home sausage-makers throughout the United States.
Regardless of where you get it or how it's produced, the first time you experience N'duja you'll want to explore it further pushing the boundaries of heat and texture to find one that suits you just right.
Sausage Obsession
It started with an obsession and ended up as a business centered around a passion for one single product… sausage.
I don’t remember the first time I had a sausage but I’m certain it was before I could walk. I grew up in a largely Hispanic neighborhood to an Argentine father and a Mexican-American mother so my fondest memories of childhood involve big family gatherings with lots of food…usually some form of sausage. In fact, one of my earliest memories involves sampling the moist cake-like bites of blood sausage hot off my dad’s grill.
I didn’t realize how much I loved sausage until I moved away from the mid-west and couldn’t easily find any of the sausages that I had grown to love like Mexican Chorizo, Blood Sausage, Brats, Polish Sauages and more. When I did find them, I savored every bite so much so that it became an “obsession” to find new and interesting varieties in my surrounding area.
So 3 years ago I started having a backyard barbecue that I lovingly called “Sausage Party”. I invited a small group of friends (men only…hence the term “sausage party”) and featured several different varieties of fresh sausage. I added a humorous twist to my invitations and now it’s taken on a life of it’s own. People ask me about it year-round.
My intent with www.sausageobsession.com is to create a site that offers anyone interested in sausage a deep immersion into the topic with a selection of sausage recipes, sausage news, sausage pictures and sausage videos all with a little bit of humor mixed in for good measure. I also have plans to partner with artisan sausage makers from across the US to offer small-batch, artisanal, hand-crafted, all-natural sausage in a home-delivery service.
I don’t remember the first time I had a sausage but I’m certain it was before I could walk. I grew up in a largely Hispanic neighborhood to an Argentine father and a Mexican-American mother so my fondest memories of childhood involve big family gatherings with lots of food…usually some form of sausage. In fact, one of my earliest memories involves sampling the moist cake-like bites of blood sausage hot off my dad’s grill.
I didn’t realize how much I loved sausage until I moved away from the mid-west and couldn’t easily find any of the sausages that I had grown to love like Mexican Chorizo, Blood Sausage, Brats, Polish Sauages and more. When I did find them, I savored every bite so much so that it became an “obsession” to find new and interesting varieties in my surrounding area.
So 3 years ago I started having a backyard barbecue that I lovingly called “Sausage Party”. I invited a small group of friends (men only…hence the term “sausage party”) and featured several different varieties of fresh sausage. I added a humorous twist to my invitations and now it’s taken on a life of it’s own. People ask me about it year-round.
My intent with www.sausageobsession.com is to create a site that offers anyone interested in sausage a deep immersion into the topic with a selection of sausage recipes, sausage news, sausage pictures and sausage videos all with a little bit of humor mixed in for good measure. I also have plans to partner with artisan sausage makers from across the US to offer small-batch, artisanal, hand-crafted, all-natural sausage in a home-delivery service.
Sausage and Social Media for Logistics
Online sausage retailer Sausage Obsession makes great use of social media to create traffic for its blog (www.sausageobsession.com).
Adding content like The History of Sausage and mulitple sausage recipes from cuisine all over the world is the content that drives the Sausage Obsession popularity.
Logistics companies can learn from these lessons. Presenting valuable content to readers and customers through quality blog posts and Twitter are what get people to your site. Logistics providers need social media to help create brand awareness and engage customers.
Social media, and specifically Twitter are great platforms for a logistics company to engage with customers. When it is done right, social media can win fans, repair relationships, and in the end grow revenue. When it is ignored or done poorly, social media can alienate customers and hurt your company’s brand.
Adding content like The History of Sausage and mulitple sausage recipes from cuisine all over the world is the content that drives the Sausage Obsession popularity.
Logistics companies can learn from these lessons. Presenting valuable content to readers and customers through quality blog posts and Twitter are what get people to your site. Logistics providers need social media to help create brand awareness and engage customers.
Social media, and specifically Twitter are great platforms for a logistics company to engage with customers. When it is done right, social media can win fans, repair relationships, and in the end grow revenue. When it is ignored or done poorly, social media can alienate customers and hurt your company’s brand.
A new Horizon for TMS (Logistics Software)
Logistics is one of the most important parts of any business today and with advancement in technology and increase in internet usage managing logistic over the internet is gaining popularity. Businesses are always trying to find reliable sources that can help them in managing their supply chain, coordinate the reception of products and their movement. eROUTINGguide is one of the first few websites online that have been specifically launched to assist business in achieving this goal.
eROUTINGguide is “your online logistics co-manager”. The website was launched on 5th May 2010 and since then the administration of eROUTINGguide has proved their skills to numerous successful customers. eROUTINGguide is based on TMS or online transportation management system. Under this system the small and medium sized shippers can easily access marketplace which are not used by large shippers.
eROUTINGguide offers all the functions of TMS which are listed below:
“eROUTINGguide.com has had a dramatic effect on compliance to our inbound routing guidelines, providing significant savings in time and expense.” R Tompkins, President, Landis Logistics. The administration of eROUTINGguide is working day and night to ensure the success of shipment of all the customers who hire them for TMS.
The best part about www.eROUTINGguide.com is that it is not very costly and the managers are working to ensure that they provide the most competitive rates in the market without compromising the quality. “The Rate Manager Component of eROUTINGguide.com has helped guarantee the right carrier is used every time and reduced our freight invoice audit expense by over 50%.” Matt Rieker, CFO, Jet Plastica
In short, although recently launched, eROUTINGguide has proved its worth to many customers and is bound to be one of the successful TMS online. It should be known that it is an affiliate of www.fillship.com which offers order fulfillment services to e-commerce businesses.
Social Media Logistics
eROUTINGguide is “your online logistics co-manager”. The website was launched on 5th May 2010 and since then the administration of eROUTINGguide has proved their skills to numerous successful customers. eROUTINGguide is based on TMS or online transportation management system. Under this system the small and medium sized shippers can easily access marketplace which are not used by large shippers.
eROUTINGguide offers all the functions of TMS which are listed below:
- It allows the shippers to plan loading and then find a route that best suits their needs. This helps them in cutting unnecessary and extra costs of shipment orders as well as combining two or more shipping orders to help the shippers in easily managing them. All of this is done using eROUTINGguide’s tool Shipment Load Planning and Shipment Routing Optimization.
- The TMS tool Routing guide helps the vendors in understanding the inbound routing guides to ensure better cost management.
- The shippers can also find tools to help them in selecting carriers, calculating the cost of shipment and other such parts of shipment process through Execution Management and Carrier Communication.
“eROUTINGguide.com has had a dramatic effect on compliance to our inbound routing guidelines, providing significant savings in time and expense.” R Tompkins, President, Landis Logistics. The administration of eROUTINGguide is working day and night to ensure the success of shipment of all the customers who hire them for TMS.
The best part about www.eROUTINGguide.com is that it is not very costly and the managers are working to ensure that they provide the most competitive rates in the market without compromising the quality. “The Rate Manager Component of eROUTINGguide.com has helped guarantee the right carrier is used every time and reduced our freight invoice audit expense by over 50%.” Matt Rieker, CFO, Jet Plastica
In short, although recently launched, eROUTINGguide has proved its worth to many customers and is bound to be one of the successful TMS online. It should be known that it is an affiliate of www.fillship.com which offers order fulfillment services to e-commerce businesses.
Social Media Logistics
Sunday, November 14, 2010
How a Logistics Company Can Set Up A Social Media Strategy
Recognizing that your Logistics company can benefit from a social media presence is just the first step in actually realizing those potential benefits.
A Facebook page, Blog and Twitter account does not complete a strong social media presence. In fact, they can hurt your brand if they are not developed and attended to in the right way.
Here are some examples of companies using social media effectively:
- UPS and FedEx search for and follow up on every mention of a lost package posted on Twitter. This is a great proactive approach to addressing customer issues.
- Other 3PL companies post their available loads each day for carriers and drivers to see each day. Twitter has become a widely visible (and free) load board for their operations.
- I have seen examples of ocean container companies posting delivery updates via Twitter.
Simply having accounts set up at the various social media platforms does not make a strategy. How can you set up an effective social media strategy for your logistics company?
A Facebook page, Blog and Twitter account does not complete a strong social media presence. In fact, they can hurt your brand if they are not developed and attended to in the right way.
Here are some examples of companies using social media effectively:
- UPS and FedEx search for and follow up on every mention of a lost package posted on Twitter. This is a great proactive approach to addressing customer issues.
- Other 3PL companies post their available loads each day for carriers and drivers to see each day. Twitter has become a widely visible (and free) load board for their operations.
- I have seen examples of ocean container companies posting delivery updates via Twitter.
Simply having accounts set up at the various social media platforms does not make a strategy. How can you set up an effective social media strategy for your logistics company?
Saturday, November 13, 2010
The Growth Of Transportation Management Software
According to the market research, the Transportation Management Systems or TMS market had exceeded $1 billion in 2006. Through the years, the aim of a TMS implementation remains to be the best achievement of customer service level requirements and at the lowest possible cost.
Transportation Management Software (TMS) is a software application, usually web-hosted, that is used as part of logistics management particularly for activities like the managing shipping units, shipments that are outbound and intra-company, inbound shipment scheduling, bills of lading generation, sales quotation, carrier or transportation mode selection, doing freight invoice audit and payment and processing of loss and damage claims. These systems often feature graphic user interface portal or a “dashboard”. The dashboard displays the available data according to key success factors that are relevant to the user. Online Order Fulfillment.
Companies, especially those company with complex supply chains, make use of their TMS software to be the supply chain solutions, so as to manage and track shipments that may be carried by land, sea or air. Several shipment choices are available for clients including parcel, truck, inter modal, private fleet, rail, or through domestic carriers. Some software or systems allow clients to track their shipments online. Other TMS software incorporates Global Positioning System navigation technology to enable fleet managers to easily monitor and dispatch vehicles in accordance with shipment schedules. The advancement of technology made it possible to transport products such as goods in virtually any mode and incorporate all these can be made simple with the right applications. In TMS software the carrier companies can offer promos for their customers to gain transportation savings due to the fact that carrier companies can easily offer a much lesser carrier rates.
Transportation management solution software that had been developed is designed to automate a business firm's transportation network, both outbound and inbound. This instrument covers the way towards an efficient day-to-day operation including sources to shipment assignments. When selecting a carrier company make sure that they offer a secure contract about your packages. Moreover, by ensuring a soft flow of these operational activities, relationships with the suppliers and carriers may be strengthened. The benefits of using TMS into a company's operation strategy are not limited to the increased effectiveness of the supply chain social media. The transportations logistics is on demand because of TMS. In eliminating logistics problems the companies can focus on providing quality services to their customers. Consequently, with high customer satisfaction, overall productivity of a firm will increase.
Management of transportation facilities is usually associated with the concept of supply chain management and logistics. These two principles are mainly concerned with the smooth flow of firm goods from the supplier of a manufacturing firm to the end users which are the firm's customers. Aside from transportation, other vital logistics software concerns are inventory management, warehousing, materials handling, inventory management, and customer service. For various businesses in the United States, logistics make up twenty to thirty percent of total operating costs. By utilizing an ideal TMS software or program, it will be more convenient for business executives to organize a plan and implement supply chain activities. In addition, performance effectiveness of the entire supply chain will be guaranteed and the company will surely benefit from cost savings.
http://asable.com/2010/08/a-recording-of-asable-com-interview-of-ken-kowal-founder-of-eroutingguide/
Transportation Management Software (TMS) is a software application, usually web-hosted, that is used as part of logistics management particularly for activities like the managing shipping units, shipments that are outbound and intra-company, inbound shipment scheduling, bills of lading generation, sales quotation, carrier or transportation mode selection, doing freight invoice audit and payment and processing of loss and damage claims. These systems often feature graphic user interface portal or a “dashboard”. The dashboard displays the available data according to key success factors that are relevant to the user. Online Order Fulfillment.
Companies, especially those company with complex supply chains, make use of their TMS software to be the supply chain solutions, so as to manage and track shipments that may be carried by land, sea or air. Several shipment choices are available for clients including parcel, truck, inter modal, private fleet, rail, or through domestic carriers. Some software or systems allow clients to track their shipments online. Other TMS software incorporates Global Positioning System navigation technology to enable fleet managers to easily monitor and dispatch vehicles in accordance with shipment schedules. The advancement of technology made it possible to transport products such as goods in virtually any mode and incorporate all these can be made simple with the right applications. In TMS software the carrier companies can offer promos for their customers to gain transportation savings due to the fact that carrier companies can easily offer a much lesser carrier rates.
Transportation management solution software that had been developed is designed to automate a business firm's transportation network, both outbound and inbound. This instrument covers the way towards an efficient day-to-day operation including sources to shipment assignments. When selecting a carrier company make sure that they offer a secure contract about your packages. Moreover, by ensuring a soft flow of these operational activities, relationships with the suppliers and carriers may be strengthened. The benefits of using TMS into a company's operation strategy are not limited to the increased effectiveness of the supply chain social media. The transportations logistics is on demand because of TMS. In eliminating logistics problems the companies can focus on providing quality services to their customers. Consequently, with high customer satisfaction, overall productivity of a firm will increase.
Management of transportation facilities is usually associated with the concept of supply chain management and logistics. These two principles are mainly concerned with the smooth flow of firm goods from the supplier of a manufacturing firm to the end users which are the firm's customers. Aside from transportation, other vital logistics software concerns are inventory management, warehousing, materials handling, inventory management, and customer service. For various businesses in the United States, logistics make up twenty to thirty percent of total operating costs. By utilizing an ideal TMS software or program, it will be more convenient for business executives to organize a plan and implement supply chain activities. In addition, performance effectiveness of the entire supply chain will be guaranteed and the company will surely benefit from cost savings.
http://asable.com/2010/08/a-recording-of-asable-com-interview-of-ken-kowal-founder-of-eroutingguide/
Friday, November 12, 2010
Shipping Department
The Shipping Department coordinates the identification of the products that are ready to ship. This department also arranges the features of the shipment to meet the customer’s requirements, such as packing, the carrier according to the delivery time and the quality check of the entire shipment process. The Shipping Department knows the best way to get your shipment from A to B. Logistics Software to manage the process.
There are some Shipping Departments who are small and there are those also that are huge shipping department. It actually depends on how big and small the company is. The main difference is that some small shipping departments have only limitations as to how many carriages can they carry or they allow to ship. While those huge shipping departments can ship to big carriages. What I can recommend you in choosing a shipping department are that make sure that that shipping company has been in the business for years or decades.
This will just show that this kind of shipping department is more reliable and can be trusted than those new existing shipping department. Also, they already have regular customers with them. Some were also companies that relied on them for years just to ship their products. Also, make sure that those companies have shipping rules and shipping regulations. Having all these ensures that this kind of shipping company is reliable and can be trusted. A good shipping company must have their shipping rules and shipping regulations. These are made to avoid conflicts between the customer and the shipping company. These shipping rules and shipping regulations must be followed by the employees of the shipping company.
Consider also the freight of this shipping company. Freight is the method of payment for transporting goods, especially bulky goods either by water, land, or air. Freight is not necessarily expensive. It must be affordable. Make sure that they have Shipping Dock, Receiving, Shipping and nice Shipping Clerk. A Shipping Dock usually refers to a pier or wharf. It is a man-made structure intended for people to be on. In some modern use, pier is normally used to be able to refer to structures that are originally intended for industrial use like seafood processing or shipping. Also these are used for cruise ships. Another aspect that you must consider in choosing the right shipping company is their Shipping Manager. He is in charged of the whole shipment, the Truck Drivers, also the detention charges. Having a good Shipping Manager is a good indicator that the Shipping Company is reliable and they provide quality service. Also, it is important to consider their Accessorial because these would be the tools that must be used in order to come up with a good quality service that they can provide to their customers. The Shipping Hours and Receiving Hours of a certain shipping company must be open to their customers. Their customers or clients must know all the schedules so that they will be informed and that they would know when they will go to their shipping company to have their products shipped from the ecommerce order fulfillment facility.
Social Media Logistics
There are some Shipping Departments who are small and there are those also that are huge shipping department. It actually depends on how big and small the company is. The main difference is that some small shipping departments have only limitations as to how many carriages can they carry or they allow to ship. While those huge shipping departments can ship to big carriages. What I can recommend you in choosing a shipping department are that make sure that that shipping company has been in the business for years or decades.
This will just show that this kind of shipping department is more reliable and can be trusted than those new existing shipping department. Also, they already have regular customers with them. Some were also companies that relied on them for years just to ship their products. Also, make sure that those companies have shipping rules and shipping regulations. Having all these ensures that this kind of shipping company is reliable and can be trusted. A good shipping company must have their shipping rules and shipping regulations. These are made to avoid conflicts between the customer and the shipping company. These shipping rules and shipping regulations must be followed by the employees of the shipping company.
Consider also the freight of this shipping company. Freight is the method of payment for transporting goods, especially bulky goods either by water, land, or air. Freight is not necessarily expensive. It must be affordable. Make sure that they have Shipping Dock, Receiving, Shipping and nice Shipping Clerk. A Shipping Dock usually refers to a pier or wharf. It is a man-made structure intended for people to be on. In some modern use, pier is normally used to be able to refer to structures that are originally intended for industrial use like seafood processing or shipping. Also these are used for cruise ships. Another aspect that you must consider in choosing the right shipping company is their Shipping Manager. He is in charged of the whole shipment, the Truck Drivers, also the detention charges. Having a good Shipping Manager is a good indicator that the Shipping Company is reliable and they provide quality service. Also, it is important to consider their Accessorial because these would be the tools that must be used in order to come up with a good quality service that they can provide to their customers. The Shipping Hours and Receiving Hours of a certain shipping company must be open to their customers. Their customers or clients must know all the schedules so that they will be informed and that they would know when they will go to their shipping company to have their products shipped from the ecommerce order fulfillment facility.
Social Media Logistics
Wednesday, November 10, 2010
Transportation Spend Management Fuel Surcharges
Around a decade ago is when fuel surcharges became ubiquitous. Prior to that period, the cost of diesel fuel was always there, but back then shippers essentially paid for fuel as a part of their linehaul rates. The market fluctuations in fuel costs were for the trucking companies to worry about. The impact of fuel was something left to perhaps talk about or negotiate at year’s end, or possibly as part of a contract renewal. The shipper’s perspective was that managing fuel costs were a trucking company’s problem to understand and account for. Since that time, the burden of dealing with market changes in fuel costs has shifted from the carriers to shippers.
With fuel surcharge making up as much as 40% of a typical company’s supply chain logistics costs it important for people across the organization and through social media logistics to know how fuel surcharges are calculated and how the diesel fuel market impacts their freight spend. These days shippers are directly exposed to the potentially significant changes in fuel costs and the curiously structured surcharge matrices.
Theoretically the fuel surcharge tables that most carriers use are a direct representation of actual fuel costs to calculate the fuel surcharge but I have not seen an explanation that makes me feel comfortable that the matrices are more than just an extension of a carrier’s line haul costs. This is not to say that fuel costs are not a major cost factor for carriers, it does not seem that the fuel matrices represent the impact of diesel cost changes accurately for a truckload company from an operating perspective. There is too large of a difference in the fuel rate tables from company to companies for it to be an accurate depiction on actual costs. This seems to be an indication that there is a cushion “fudge” factor built into the numbers allowing carriers to bury other costs beside just fuel in their diesel surcharge matrices. Logistics Software.
For small package shipping from your order fulfillment location, companies are at the mercy of U.P.S. or FedEx for not just over night and ground delivery services and pricing, but to both company’s individual fuel surcharge matrices. There is not a whole lot to know about small parcel fuel surcharges other than to recognize that the cost really serves as an extension of their pricing and monitor it as the fuel index adjusts – for the better or worse when it comes to the costs you have to pay.
For full truckload spend management and less than truckload shipments, you’ll see fuel surcharge matrices calculated as a per mile and as a percent of line haul cost. In both instances – the fuel surcharge table will be calculated off of U.S. Government’s Diesel Fuel Index. It is updated weekly on Monday and is presented as a regional and national basis. Depending on the footprint of the carrier, either type of fuel index could apply. The “per mile” rate is simply determined via your logistics software by adding the per mile rate on top of the line haul rate, then multiplying it by the total route miles shipped. The “percentage” basis surcharge takes the cost of the shipment and adds the percentage of cost determined from the table to that. Similar to how you audit line haul costs on freight bills, it is equally important to audit fuel surcharges on the invoice.
Fuel matrices are typically structured to change with every $.05 movement in the applicable diesel fuel index and are effective for the shipments picked up in that given week’s period of time.
With fuel surcharge making up as much as 40% of a typical company’s supply chain logistics costs it important for people across the organization and through social media logistics to know how fuel surcharges are calculated and how the diesel fuel market impacts their freight spend. These days shippers are directly exposed to the potentially significant changes in fuel costs and the curiously structured surcharge matrices.
Theoretically the fuel surcharge tables that most carriers use are a direct representation of actual fuel costs to calculate the fuel surcharge but I have not seen an explanation that makes me feel comfortable that the matrices are more than just an extension of a carrier’s line haul costs. This is not to say that fuel costs are not a major cost factor for carriers, it does not seem that the fuel matrices represent the impact of diesel cost changes accurately for a truckload company from an operating perspective. There is too large of a difference in the fuel rate tables from company to companies for it to be an accurate depiction on actual costs. This seems to be an indication that there is a cushion “fudge” factor built into the numbers allowing carriers to bury other costs beside just fuel in their diesel surcharge matrices. Logistics Software.
For small package shipping from your order fulfillment location, companies are at the mercy of U.P.S. or FedEx for not just over night and ground delivery services and pricing, but to both company’s individual fuel surcharge matrices. There is not a whole lot to know about small parcel fuel surcharges other than to recognize that the cost really serves as an extension of their pricing and monitor it as the fuel index adjusts – for the better or worse when it comes to the costs you have to pay.
For full truckload spend management and less than truckload shipments, you’ll see fuel surcharge matrices calculated as a per mile and as a percent of line haul cost. In both instances – the fuel surcharge table will be calculated off of U.S. Government’s Diesel Fuel Index. It is updated weekly on Monday and is presented as a regional and national basis. Depending on the footprint of the carrier, either type of fuel index could apply. The “per mile” rate is simply determined via your logistics software by adding the per mile rate on top of the line haul rate, then multiplying it by the total route miles shipped. The “percentage” basis surcharge takes the cost of the shipment and adds the percentage of cost determined from the table to that. Similar to how you audit line haul costs on freight bills, it is equally important to audit fuel surcharges on the invoice.
Fuel matrices are typically structured to change with every $.05 movement in the applicable diesel fuel index and are effective for the shipments picked up in that given week’s period of time.
Writing a Transportation Routing Guide
A Routing Guide document is an important part of any company’s logistics strategy. At a high level, any business shipping products will develop a Routing Guide to improve and add efficiencies to the process of shipping goods to and from any of their locations. The guidelines contained in the document are intended to govern how all shipments are routing in which the shipment is being sent to that company’s facility and or the cost of the shipment will be paid that company.
For the shipper’s vendors and suppliers, compliance with the guidelines is expected. Many companies enforce a policy that states any non-compliance may result in charge-backs and / or reimbursement for the related expenses. It is generally also the responsibility of the supplier to ensure that any contract manufacturers or third party logistics order fulfillment providers are also notified and aware of these instructions.
The Routing Guide will also spell out many specific instructions for shipment preparation and paperwork, such as Bill of Lading format and content on the paperwork. Requirements for obtaining and Advanced Shipping Notification (ASN) Number are common as well. This can also include billing information to insure freight invoices are billed correctly and invoice are sent to the right location to facilitate the invoice audit and payment process.
Pallet and package preparation guidelines are also important information to keep well disseminated and up to date across the supplier base. Dimensions of pallets, and how goods are packaged are often critical to the movement of goods through a supply chain.
Carrier and shipment mode selection instructions are the final key component to a Routing Guide. Social Media Logistics and clear directions for choosing the right trucking companies to use, as well as the mode (truckload, less than truckload, air freight, ocean, rail, etc) are vital to controlling cost and ensuring on time delivery.
http://knol.google.com/k/kenneth-kowal/handling-order-fulfillment-for-an/4ilw4vkwik1x/12
For the shipper’s vendors and suppliers, compliance with the guidelines is expected. Many companies enforce a policy that states any non-compliance may result in charge-backs and / or reimbursement for the related expenses. It is generally also the responsibility of the supplier to ensure that any contract manufacturers or third party logistics order fulfillment providers are also notified and aware of these instructions.
The Routing Guide will also spell out many specific instructions for shipment preparation and paperwork, such as Bill of Lading format and content on the paperwork. Requirements for obtaining and Advanced Shipping Notification (ASN) Number are common as well. This can also include billing information to insure freight invoices are billed correctly and invoice are sent to the right location to facilitate the invoice audit and payment process.
Pallet and package preparation guidelines are also important information to keep well disseminated and up to date across the supplier base. Dimensions of pallets, and how goods are packaged are often critical to the movement of goods through a supply chain.
Carrier and shipment mode selection instructions are the final key component to a Routing Guide. Social Media Logistics and clear directions for choosing the right trucking companies to use, as well as the mode (truckload, less than truckload, air freight, ocean, rail, etc) are vital to controlling cost and ensuring on time delivery.
http://knol.google.com/k/kenneth-kowal/handling-order-fulfillment-for-an/4ilw4vkwik1x/12
Tranportation Logistics Consulting and Spend Management
A logistics consulting engagement will start with a focus on a few keys areas of the supply chain. The most important benefits to working with a logistics spend management consultant will be to reduce costs and make the process more efficient.
The Planning Process: How orders and shipments are planned has a direct impact of shipping costs. Using efficient packaging, getting the maximum volume of product on a pallet, and the most cube on a truck all impact cost on a per unit basis. Combining multiple small orders on a larger full truckload is one way to build efficiencies into the load planning process. Using logistics software for route optimization is a way to add efficiency in to the load planning process.
Trucking Companies: The rates paid to carriers are a direct cost for shippers and negotiating favorable rates is a way to reduce the logistics costs for a company. Knowing and benchmarking shipping costs are important for a shipper and having access to that data is vital. Rates can be kept current through periodic RFP (Request for Proposals) exercises and lane analysis. Always be pushing for better, more competitive rates and best in class service.
Social Media and Frozen Food Fulfillment.
Freight Audit and Payment and Data: Automating the process of approving and paying invoices is a way to reduce freight costs as well. Aside from the benefits of more and getter logistics spend data, it is a process that is not done very efficiently in house and typically can be done more efficiently through a third party or by employing logistics software.
4 Benefits of Supply Chain Management Software
The cost and time necessary to implement a new Logistics Software (TMS) is significant. So what are the benefits a business should expect as a return on that investment?
1 - Routing Guide Compliance: A main benefit to logistics software is the control it puts in place to ensure the proper routing choices are made. This includes making sure the correct carriers are selected and the optimal shipping mode used. Following a well constructed Routing Guide will reduce shipping costs and minimize the time spent to deal with exceptions or other issues that come up when the wrong carrier or mode is used.
2 - Updated Logistics Cost and Spend Data: Data is a valuable tool for managing a business and integral for effective logistics spend management. Understanding the cost drivers in your business as they relate to transportation can improve forecasting, production planning, and sales all for the positive.
3 – RFP and Lane Analysis: Actively working to keep carrier rates tables current is a great way to control and reduce logistics costs. Periodically testing the market rates with an RFP (Request for Proposal) is an important part of the supply management process.
4 – Automating Workflows: A logistics software technology will also automate functions such as load tendering to carriers, paperwork (such as the ability to print bill of lading and load sheet documents), and load planning. Automation makes these processes work more efficiently and precisely through reliance of systems and technology - as opposed to hand written documents and faxes.
Order Fulfillment
Social Media Supply Chain
1 - Routing Guide Compliance: A main benefit to logistics software is the control it puts in place to ensure the proper routing choices are made. This includes making sure the correct carriers are selected and the optimal shipping mode used. Following a well constructed Routing Guide will reduce shipping costs and minimize the time spent to deal with exceptions or other issues that come up when the wrong carrier or mode is used.
2 - Updated Logistics Cost and Spend Data: Data is a valuable tool for managing a business and integral for effective logistics spend management. Understanding the cost drivers in your business as they relate to transportation can improve forecasting, production planning, and sales all for the positive.
3 – RFP and Lane Analysis: Actively working to keep carrier rates tables current is a great way to control and reduce logistics costs. Periodically testing the market rates with an RFP (Request for Proposal) is an important part of the supply management process.
4 – Automating Workflows: A logistics software technology will also automate functions such as load tendering to carriers, paperwork (such as the ability to print bill of lading and load sheet documents), and load planning. Automation makes these processes work more efficiently and precisely through reliance of systems and technology - as opposed to hand written documents and faxes.
Order Fulfillment
Social Media Supply Chain
Logistics Spend Management
Transportation spend management is the process of evaluating the shipping costs a company is incurring to ship goods. This can include the cost of shipping orders to customers or moving raw materials from suppliers or even the transfer of work in progress materials between facilities. Understanding these costs is an important part of an overall supply chain management program and the first step in identifying opportunities to reduce costs and make the logistics process more efficient.
The largest component of cost is usually shipping customer orders. These are the outbound shipments of finished goods going directly to customers. How these orders are shipped is often dictated by when the customer needs the product. It is important to understand how the customer’s delivery demands are affecting the cost to make the delivery. “Expediting” a shipment will often double or triple the cost, so managing those types of situations is important.
The opportunities for reducing freight expense typically revolve around a few key areas.
Carrier Rates: Are the rates you have in place competitive? You need to be certain the carrier rates you have in place are at or below the market rates. This can be verified through periodic Request for Proposal exercises. Also, it is important to make sure the right carrier is being selected every time with your logistics software.
Route Optimization and Load Planning: Are orders being routing as efficiently as possible? Making sure the correct mode of shipping is selected, and orders are combined into the most cost effective load plan are very important. An example of this would be to find opportunities to combine multiple LTL (less than truckload) shipments on to one multiple stop truckload shipment.
Logistics Software: Eliminating manual processes from the logistics workflows is away to add
efficiency. Often improvements are helped by employing supply chain software technology.
http://www.ideamarketers.com/?articleid=1543516&wherefrom=LOGIN&CFID=46225508&CFTOKEN=11233637
Social Media for Supply Chain Management.
The largest component of cost is usually shipping customer orders. These are the outbound shipments of finished goods going directly to customers. How these orders are shipped is often dictated by when the customer needs the product. It is important to understand how the customer’s delivery demands are affecting the cost to make the delivery. “Expediting” a shipment will often double or triple the cost, so managing those types of situations is important.
The opportunities for reducing freight expense typically revolve around a few key areas.
Carrier Rates: Are the rates you have in place competitive? You need to be certain the carrier rates you have in place are at or below the market rates. This can be verified through periodic Request for Proposal exercises. Also, it is important to make sure the right carrier is being selected every time with your logistics software.
Route Optimization and Load Planning: Are orders being routing as efficiently as possible? Making sure the correct mode of shipping is selected, and orders are combined into the most cost effective load plan are very important. An example of this would be to find opportunities to combine multiple LTL (less than truckload) shipments on to one multiple stop truckload shipment.
Logistics Software: Eliminating manual processes from the logistics workflows is away to add
efficiency. Often improvements are helped by employing supply chain software technology.
http://www.ideamarketers.com/?articleid=1543516&wherefrom=LOGIN&CFID=46225508&CFTOKEN=11233637
Social Media for Supply Chain Management.
Monday, November 8, 2010
Social Media for Logistics
It cannot be denied any longer - it is important for every company to understand and actively manage the role that social media plays for businesses today. As a logistics software services company social media is every bit as important to you as it is for the large consumer brands we all read about every day. Recognize it or not, your company is a brand and social media is a vital tool for developing and protecting that brand.
Twitter is NOT just a way for famous people to broadcast what they had for breakfast, it is a way to listen and engage customers. The opportunities in the world of social media for logistics companies are limitless. Using Twitter, Facebook, LinkedIn and some of the other social media services will support your efforts in the areas of sales, customer service, and marketing.
I am barely scratching the surface with this list, but here are some examples of how a logistics company can use social media:
• Read industry blogs (like EasyLogisticsManagement) and search on Twitter for what people in the Supply Chain and Logistics markets are talking about. Watch how people are being creative with their approach to using social media which will help inspire new ideas for yourself.
• Use Twitter and Facebook to engage customers and keep your name in front of them. Answer questions and make suggestions without an in your face sales pitch. Be helpful and the customers will think of you when they need you.
• People “tweet” and use social media outlets when they are not happy with service so if people are talking about your company, you want to know about it and be able to react.
• Participate in Social Networking Sites (like www.logipi.com or www.LinkedIn.com) and Supply Chain Forums to establish yourself as an expert in the space. These sites allow you to showcase yourself as a subject matter expert.
The author is founder of companies in the transportation management software and order fulfillment markets.
Twitter is NOT just a way for famous people to broadcast what they had for breakfast, it is a way to listen and engage customers. The opportunities in the world of social media for logistics companies are limitless. Using Twitter, Facebook, LinkedIn and some of the other social media services will support your efforts in the areas of sales, customer service, and marketing.
I am barely scratching the surface with this list, but here are some examples of how a logistics company can use social media:
• Read industry blogs (like EasyLogisticsManagement) and search on Twitter for what people in the Supply Chain and Logistics markets are talking about. Watch how people are being creative with their approach to using social media which will help inspire new ideas for yourself.
• Use Twitter and Facebook to engage customers and keep your name in front of them. Answer questions and make suggestions without an in your face sales pitch. Be helpful and the customers will think of you when they need you.
• People “tweet” and use social media outlets when they are not happy with service so if people are talking about your company, you want to know about it and be able to react.
• Participate in Social Networking Sites (like www.logipi.com or www.LinkedIn.com) and Supply Chain Forums to establish yourself as an expert in the space. These sites allow you to showcase yourself as a subject matter expert.
The author is founder of companies in the transportation management software and order fulfillment markets.
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