What are the shipping options for a business selling products online?
Okay, so you have an idea for an online store, or are maybe already selling a few items on eBay or Amazon. There are two things you still need to figure out to complete your online order fulfillment operation.
1 – What is the best way to package the order for shipping? Here is an article on eco-friendly packing materials.
The goal for this article is to address the second one;
2 – What are the options for shipping the order?
There are two parts to deciding what the best option is for shipping an order. The first is to figure out how quickly the order needs to get there. The second is what carrier you want to use. For the most part, the Post Office, UPS, and FedEx offer similar services. I’ll save the discussion on quality of service for another time, but generally speaking all three offer roughly the same services that most online retailers would need.
If you have time: the least expensive and slowest delivery method with UPS and FedEx is their Ground Service, which will service most of the US in four to five days. The Post office is a cheaper but slower option than Ground with the other two carriers.
If you need to get it there quickly, then overnight and 2nd and 3rd day delivery is an option. Obviously more expensive then Ground, the service is guaranteed for the stated transit time. One thing to keep in mind when choosing the service level is many times you can get overnight service for a Ground price. For instance, if you live within a one day transit time for Ground service with UPS, then there is no need to pay the over-night price.
End Grain Wood Block Flooring, Reclaimed Hardwood Flooring, Antique Wood Flooring, Order Fulfillment, Food Fulfillment PA, Online Order Fulfillment are more services. Also included are transporation management software, logistics software, Supply Chain Software.
Thursday, October 21, 2010
Logistics Software for all size shippers
Logistics Software is the technology that lets shippers automate their logistics and supply chain workflows. Many small and medium size companies are in a difficult position because their shipping volume does not warrant a big investment in a large supply chain software solution. The Return on Investment is just not there for some shippers when the cost of entry for a large managed TMS system will easily exceed $100,000 on the low end.
So what do the large Logistic Software solutions provide for the big companies that can afford them? Primarily, the system automates the flow of information through the organization, as well as automates much of the communication between departments and supply chain vendors. For instance, as a normal process, most companies that ship product will receives orders and need to make decisions on how the orders will ship. For the company with logistics software – the orders are optimized into the most efficient Load Plan, carrier selection is made via the prepared Routing Guide, and loads are tendered and delivered with all the relevant data captured and reported on. For companies without a supply chain software solution, all these parts of the process are handled manually, or not at all. For instance, not having Bill of Lading Software a shipper obviously has to hand write or type of Bills of Lading. Shipping Software also automates the selection of carriers and the communication process with the carriers. Instead of phone calls or faxes to schedule loads, carriers can confirm or reject loads through email or on-line. Carrier rate contracts are all managed in a single database, ensuring the correct carrier selection is made every time. Delivery updates, Proof of Deliveries, Freight Invoices can all be provided electronically.
Simply stated, the benefit of the right logistics software solution is that it takes processes that in the past were done manually and automates them. The difficult challenge for shippers is to evaluate the Return on Investment from implementing a new transportation management software solution. The system will save time, it will save money by improving carrier selection, it will make the process of getting delivery updates and POD’s quicker. – but is the cost too much?
So what do the large Logistic Software solutions provide for the big companies that can afford them? Primarily, the system automates the flow of information through the organization, as well as automates much of the communication between departments and supply chain vendors. For instance, as a normal process, most companies that ship product will receives orders and need to make decisions on how the orders will ship. For the company with logistics software – the orders are optimized into the most efficient Load Plan, carrier selection is made via the prepared Routing Guide, and loads are tendered and delivered with all the relevant data captured and reported on. For companies without a supply chain software solution, all these parts of the process are handled manually, or not at all. For instance, not having Bill of Lading Software a shipper obviously has to hand write or type of Bills of Lading. Shipping Software also automates the selection of carriers and the communication process with the carriers. Instead of phone calls or faxes to schedule loads, carriers can confirm or reject loads through email or on-line. Carrier rate contracts are all managed in a single database, ensuring the correct carrier selection is made every time. Delivery updates, Proof of Deliveries, Freight Invoices can all be provided electronically.
Simply stated, the benefit of the right logistics software solution is that it takes processes that in the past were done manually and automates them. The difficult challenge for shippers is to evaluate the Return on Investment from implementing a new transportation management software solution. The system will save time, it will save money by improving carrier selection, it will make the process of getting delivery updates and POD’s quicker. – but is the cost too much?
| End Grain Wood Block Flooring, Reclaimed Hardwood Flooring, Antique Wood Flooring, Order Fulfillment, Food Fulfillment PA, Online Order Fulfillment are more services. Also included are transporation management software, logistics software, Supply Chain Software. |
Supply Chain Software for all Shippers
Supply Chain Software is the system that enables manufacturers, or any company shipping their products automate their logistics and supply chain processes. All small and medium size companies are in a tough situation position because their shipping volume does not justify the cost of a big, complicated logistics management software application. The Return on Investment is just not there for some shippers when the cost to implement and maintain a large managed logistics software system starts at a hundred grand and only goes up from there.
So what do the large Logistic Software solutions provide for the big companies that can afford them?
The first role of a TMS system is to automate the flow of order and shipping information through the organization. Secondly, it streamlines and automates most of the communication between departments and outside logistics suppliers.
For instance, as a normal process, most companies that ship product will receives orders and need to make decisions on how the orders will ship. For the company with supply chain software:
the individual shipments are organized into the optimal Load Plan
carrier selection is made via the well organized Routing Guide
loads are tendered to, and delivered with all the relevant data captured and reported on
For companies without a logistics software solution, all these parts of the process are handled manually, or simply not done at all. Carriers are called for delivery updates… freight invoices come in the mail and are audited and paid manually… etc.
For instance, not having Bill of Lading Software a shipper obviously has to hand write or type of Bills of Lading. Shipping Software can also automate the selection of trucking companies and the communication process with the carriers. Instead of phone calls or faxes to schedule loads, carriers can accept or deny shipments via email or on-line. Carrier rate contracts are all managed in a single database, ensuring the correct carrier selection is made every time.
The best part from the perspective of sales, customer service, and other departments in the company: Delivery updates, Proof of Deliveries, Freight Invoices can all be provided electronically.
Simply stated, the benefit of the right logistics software solution is that it takes processes that in the past were done manually and automates them. The hardest challenge for shippers is to calculate the Return on Investment from implementing a new transportation management software solution. The system will save time, it will save money by improving carrier choice, it will make the workflow of getting delivery status updates and Proof of Deliveries quicker. – but, at what cost?
End Grain Wood Block Flooring, Reclaimed Hardwood Flooring, Antique Wood Flooring, Order Fulfillment, Food Fulfillment PA, Online Order Fulfillment are more services. Also included are transporation management software, logistics software, Supply Chain Software.
So what do the large Logistic Software solutions provide for the big companies that can afford them?
The first role of a TMS system is to automate the flow of order and shipping information through the organization. Secondly, it streamlines and automates most of the communication between departments and outside logistics suppliers.
For instance, as a normal process, most companies that ship product will receives orders and need to make decisions on how the orders will ship. For the company with supply chain software:
the individual shipments are organized into the optimal Load Plan
carrier selection is made via the well organized Routing Guide
loads are tendered to, and delivered with all the relevant data captured and reported on
For companies without a logistics software solution, all these parts of the process are handled manually, or simply not done at all. Carriers are called for delivery updates… freight invoices come in the mail and are audited and paid manually… etc.
For instance, not having Bill of Lading Software a shipper obviously has to hand write or type of Bills of Lading. Shipping Software can also automate the selection of trucking companies and the communication process with the carriers. Instead of phone calls or faxes to schedule loads, carriers can accept or deny shipments via email or on-line. Carrier rate contracts are all managed in a single database, ensuring the correct carrier selection is made every time.
The best part from the perspective of sales, customer service, and other departments in the company: Delivery updates, Proof of Deliveries, Freight Invoices can all be provided electronically.
Simply stated, the benefit of the right logistics software solution is that it takes processes that in the past were done manually and automates them. The hardest challenge for shippers is to calculate the Return on Investment from implementing a new transportation management software solution. The system will save time, it will save money by improving carrier choice, it will make the workflow of getting delivery status updates and Proof of Deliveries quicker. – but, at what cost?
End Grain Wood Block Flooring, Reclaimed Hardwood Flooring, Antique Wood Flooring, Order Fulfillment, Food Fulfillment PA, Online Order Fulfillment are more services. Also included are transporation management software, logistics software, Supply Chain Software.
Thursday, October 7, 2010
Selling and Shipping Order from Your Online Store
So you have a business and a website, and now you want to sell some products online. Taking a retail operation online and building a scalable solution can involve several parties if you are going to be successful. The following is an outline of the different parts that go into an ecommerce solution beyond your company’s website (assuming you don’t want to build it all yourself).
From a process standpoint, here is what happens. Your website continues to act as the electronic brochure , engaging potential customers and telling the word about the company. And then:
Your Website: Connects To: The Ecommerce Software/ Hosted Site (Product Information, Shopping Cart Function, Reporting, etc), which Connects To: Your Merchant Account Provider (Credit Card Processor) and Your Order Fulfillment Provider.
PROGRAM SETUP
Ecommerce Software would be “attached” to your site.
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.
There would be programming cost with all providers to integrate the ecommerce software into the your site. Some provider’s solutions are simple enough that it could possibly be done “in-house”. Depending on the complexity it will likely cost $2,000 at minimum to have the integration completed by a 3rd party. The software providers either can do the integration or will recommend an authorized vendor to help.
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. Thru your Logistics Software.
PROCESS DESCRIPTION
The monthly cost for the ecommerce software start at around $200-$300 per month based activity volume (although one provider charges a percentage of $ activity). The amount of products available for sale, amount of bandwidth used, and complexity of the solution all impact cost. We’d need to define the scope of volume to determine a better budgetary number at this point.
From a process standpoint, here is what happens. Your website continues to act as the electronic brochure , engaging potential customers and telling the word about the company. And then:
Your Website: Connects To: The Ecommerce Software/ Hosted Site (Product Information, Shopping Cart Function, Reporting, etc), which Connects To: Your Merchant Account Provider (Credit Card Processor) and Your Order Fulfillment Provider.
PROGRAM SETUP
Ecommerce Software would be “attached” to your site.
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.
There would be programming cost with all providers to integrate the ecommerce software into the your site. Some provider’s solutions are simple enough that it could possibly be done “in-house”. Depending on the complexity it will likely cost $2,000 at minimum to have the integration completed by a 3rd party. The software providers either can do the integration or will recommend an authorized vendor to help.
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. Thru your Logistics Software.
PROCESS DESCRIPTION
The monthly cost for the ecommerce software start at around $200-$300 per month based activity volume (although one provider charges a percentage of $ activity). The amount of products available for sale, amount of bandwidth used, and complexity of the solution all impact cost. We’d need to define the scope of volume to determine a better budgetary number at this point.
End Grain Wood Block Flooring From Reclaimed Wood
End Grain Wood Block Flooring From Reclaimed Wood
Typically when people think of hardwood flooring, they picture plank or tongue and groove style flooring – wide or narrow boards laid out end to end across a room. There is another type of hardwood flooring, with a long history that most people would be surprised to hear about. It is called end grain wood block flooring. To get a sense of what it looks like, picture wood tiles made from cross cut squares of wood that show off the wood grain as a cross section and not sawn with the grain like plank flooring.
There are two main benefits to creating flooring in this style.
First, it looks great… End grain wood blocks show of the grain of the wood, which of course is exactly what makes wood interesting and beautiful in the first place. Wood cut across the grain as opposed to with it, displays the grain of wood in new ways. For example, White Oak displays an incredible ray pattern that emanates from the center of the tree rings. Douglas Fir offers distinct concentric circles of light and dark (growth and sap wood) wood providing a beautiful contrast of colors and pattern.
Second, it is very durable. Wood is very tough on its cross cut face. For the last century, end grain wood block floors have remained a common flooring choice for industrial factories – believe it or not. Some of the automobile plants in Detroit MI and many other manufacturing facilities across the country have end grain wood block as flooring because of its durability. Even more amazing, wood block flooring has been, and is still in use to pave roads in a few American cities. Pensacola FL and Pittsburgh PA are two cities with end grain wood block roads.
Installation is basically done similar to ceramic tile with a certain type of adhesive and finished as any hard wood floor would be. If you can install a hardwood floor (or know someone who can), you can install can end grain wood floor.
A great choice for hardwood flooring is to use reclaimed wood. Old growth woods (that only come from reclaimed sources) offer better graining and a harder surface. Better yet, it is a good eco-friendly flooring choice.
Typically when people think of hardwood flooring, they picture plank or tongue and groove style flooring – wide or narrow boards laid out end to end across a room. There is another type of hardwood flooring, with a long history that most people would be surprised to hear about. It is called end grain wood block flooring. To get a sense of what it looks like, picture wood tiles made from cross cut squares of wood that show off the wood grain as a cross section and not sawn with the grain like plank flooring.
There are two main benefits to creating flooring in this style.
First, it looks great… End grain wood blocks show of the grain of the wood, which of course is exactly what makes wood interesting and beautiful in the first place. Wood cut across the grain as opposed to with it, displays the grain of wood in new ways. For example, White Oak displays an incredible ray pattern that emanates from the center of the tree rings. Douglas Fir offers distinct concentric circles of light and dark (growth and sap wood) wood providing a beautiful contrast of colors and pattern.
Second, it is very durable. Wood is very tough on its cross cut face. For the last century, end grain wood block floors have remained a common flooring choice for industrial factories – believe it or not. Some of the automobile plants in Detroit MI and many other manufacturing facilities across the country have end grain wood block as flooring because of its durability. Even more amazing, wood block flooring has been, and is still in use to pave roads in a few American cities. Pensacola FL and Pittsburgh PA are two cities with end grain wood block roads.
Installation is basically done similar to ceramic tile with a certain type of adhesive and finished as any hard wood floor would be. If you can install a hardwood floor (or know someone who can), you can install can end grain wood floor.
A great choice for hardwood flooring is to use reclaimed wood. Old growth woods (that only come from reclaimed sources) offer better graining and a harder surface. Better yet, it is a good eco-friendly flooring choice.
Wednesday, October 6, 2010
Order Fulfillment Explained
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 ecommerce order fulfillment warehouse to handle your pack and ship operation you should understand the different categories of service a typical fulfillment house will provide.
Receiving and Storing Product: 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.
Order Pick Charges: An integral part of the fulfillment process is how orders get transmitted from you to the facility. This can happen as part of an integration with your shopping cart software, EDI, flat file, or even a fax. As the orders are received, they are assembled or “picked”. Order Pick charges are generally based on a flat per order fee that includes the first item, and then a small additional charge for each additional item in the order. So, as an example, if your typical order is for three items, you could expect to pay $4.50 per order plus an additional $.50 for each additional item, making the total $5.50 to have the order packed.
Administrative Support: Fulfillment providers will often charge a monthly service fee for things like reporting or fielding customer calls. These charges can varying by a large extent and depend on the requirements you put in place.
Packing Materials: This would include the cost of the carton the order is shipped in, any dunnage (packing material to protect the product in the box), as well as the labor to assemble the box. These costs may or may not be included in the Order Charges detailed above. Remember, the majority of costs for a fulfillment operation are labor, so each small action (assembling a box, printing a label, placing an item in a box, etc.) each take time. It may feel like you are being “nickeled and dimed” but it is really about charging for the exact time spent for your specific needs. Fulfillment is not a one size fits all service in any sense.
Shipping Costs: The handling costs associated preparing an order to be shipped (printing the shipping label, palletizing boxes, etc.) are generally covered by the Order Charges. But obviously one big remaining cost is for shipping (FedEx, UPS, USPS, etc. assuming you are shipping boxes, not pallets at a time). If you have one, it is often best to use your company’s own account number and most fulfillment providers will allow you to do that. They may, however have a better contract with one of those carriers and be able to pass on some of that savings.
If you are an online retailer thinking about partnering with a 3rd party ecommerce order fulfillment warehouse to handle your pack and ship operation you should understand the different categories of service a typical fulfillment house will provide.
Receiving and Storing Product: 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.
Order Pick Charges: An integral part of the fulfillment process is how orders get transmitted from you to the facility. This can happen as part of an integration with your shopping cart software, EDI, flat file, or even a fax. As the orders are received, they are assembled or “picked”. Order Pick charges are generally based on a flat per order fee that includes the first item, and then a small additional charge for each additional item in the order. So, as an example, if your typical order is for three items, you could expect to pay $4.50 per order plus an additional $.50 for each additional item, making the total $5.50 to have the order packed.
Administrative Support: Fulfillment providers will often charge a monthly service fee for things like reporting or fielding customer calls. These charges can varying by a large extent and depend on the requirements you put in place.
Packing Materials: This would include the cost of the carton the order is shipped in, any dunnage (packing material to protect the product in the box), as well as the labor to assemble the box. These costs may or may not be included in the Order Charges detailed above. Remember, the majority of costs for a fulfillment operation are labor, so each small action (assembling a box, printing a label, placing an item in a box, etc.) each take time. It may feel like you are being “nickeled and dimed” but it is really about charging for the exact time spent for your specific needs. Fulfillment is not a one size fits all service in any sense.
Shipping Costs: The handling costs associated preparing an order to be shipped (printing the shipping label, palletizing boxes, etc.) are generally covered by the Order Charges. But obviously one big remaining cost is for shipping (FedEx, UPS, USPS, etc. assuming you are shipping boxes, not pallets at a time). If you have one, it is often best to use your company’s own account number and most fulfillment providers will allow you to do that. They may, however have a better contract with one of those carriers and be able to pass on some of that savings.
Frozen and Dry Food Fulfillment
What are the special considerations for an online retailer selling food products online?
The whole order fulfillment process is made up of many steps, but there are two factors that apply to dealing with food products. First, the location you choose to store and pack your shipments needs to be food grade, which means it meets certain standards for cleanliness and pest control. The facility is periodically inspected to make sure those standards are upheld. Second, you need to consider if there are there any requirements related to the temperature in the facility that need to be considered while the products are stored and also when they are shipped.
From a storage and handling perspective, non-frozen or “dry” food products can be handled similar to any non-food product. The main exception is of course that the requirements for maintaining a food grade facility need to be adhered to. Food products, whether dry or not will likely have expiration or best used by dates so it is important to manage the inventory to make sure product is still fresh and usable. The FIFO (first in first out) method of managing inventory generally makes the most sense for food products. Frozen products obviously need more care and temperature control during storage. Keeping frozen food frozen is clearly important, but more subtle requirements such as controlling humidity and ambient temperature are also important.
From a shipping perspective, the needs are very similar. Dry food products can ship similar to most any item, although some non-frozen products may need to avoid being frozen at the risk of damaging the product or its packaging. Shipping frozen products is an additional, but manageable challenge. There are many options for stock, or custom packaging to be used when shipping frozen food (or any cold item for that matter). Kits that contain a styro-foam “cooler” and tight fitting carton are likely the best option and can be designed for most applications. Items packed in the box, along with dry ice can be kept safely frozen for 24 to 48 hours during shipping under normal conditions (think hot summer and cold winter). Needless to say, some level of expedited delivery, preferably overnight needs to be used to make sure product gets delivered on time. However, keep in mind, UPS and FedEx offer Ground service that provides next day delivery to locations within a pretty good size radius. There’s no need to pay for expedited delivery when ground will suffice – the cost savings could be >50%.
The whole order fulfillment process is made up of many steps, but there are two factors that apply to dealing with food products. First, the location you choose to store and pack your shipments needs to be food grade, which means it meets certain standards for cleanliness and pest control. The facility is periodically inspected to make sure those standards are upheld. Second, you need to consider if there are there any requirements related to the temperature in the facility that need to be considered while the products are stored and also when they are shipped.
From a storage and handling perspective, non-frozen or “dry” food products can be handled similar to any non-food product. The main exception is of course that the requirements for maintaining a food grade facility need to be adhered to. Food products, whether dry or not will likely have expiration or best used by dates so it is important to manage the inventory to make sure product is still fresh and usable. The FIFO (first in first out) method of managing inventory generally makes the most sense for food products. Frozen products obviously need more care and temperature control during storage. Keeping frozen food frozen is clearly important, but more subtle requirements such as controlling humidity and ambient temperature are also important.
From a shipping perspective, the needs are very similar. Dry food products can ship similar to most any item, although some non-frozen products may need to avoid being frozen at the risk of damaging the product or its packaging. Shipping frozen products is an additional, but manageable challenge. There are many options for stock, or custom packaging to be used when shipping frozen food (or any cold item for that matter). Kits that contain a styro-foam “cooler” and tight fitting carton are likely the best option and can be designed for most applications. Items packed in the box, along with dry ice can be kept safely frozen for 24 to 48 hours during shipping under normal conditions (think hot summer and cold winter). Needless to say, some level of expedited delivery, preferably overnight needs to be used to make sure product gets delivered on time. However, keep in mind, UPS and FedEx offer Ground service that provides next day delivery to locations within a pretty good size radius. There’s no need to pay for expedited delivery when ground will suffice – the cost savings could be >50%.
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