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Benefits of Outsourcing Logistics Services | Advantages of 3PL Services

Outsourcing Logistics

Benefits of Outsourcing Logistics Services | Advantages of 3PL Services | Image Source: istockphoto.com

What is logistics outsourcing?

Utilizing one or more logistics service providers to handle all of your logistics needs, from inventory management through order preparation and delivery, is known as outsourcing logistics.

This directly and broadly translates to the organization having more warehouses and fewer personnel, which a fortiori means that your transport and logistics plan will be optimized.

Outsourcing:

Transferring one or more business operations to a qualified outside service provider is known as outsourcing. Due to this outsourcing, the business is able to concentrate on its core business.

Feel free to contact us for any of your logistical requirements.

How to effectively outsource your logistics?

Should you or shouldn’t you outsource your logistics work? Create a road map before responding to this occasionally difficult inquiry. Because it’s better to outsource effectively if you’re considering doing so!

Define the goals and circumstances of any possible outsourcing to help you select the best choice for your company. The following is a list of crucial considerations:

  • Compare the costs of internalizing versus outsourcing logistics: the constant and accounting costs as well as the less quantifiable costs, such as what you might gain or lose in terms of job quality, for instance;
  • Take into account the price of closing your warehouse and the cost of your business’s transitional period.
  • Do not be afraid to compare estimates from other service providers and benchmark them;
  • In order for your outsourcing to be successful, you must build a genuine, long-lasting relationship of trust with your logistics provider. The goal is not just to solve your logistical problems;
  • You will also need to collaborate on your company’s internal projects, such as developing financial reports or opening up to global logistics.

The benefits of outsourcing out your logistical operations

a female logistics worker

Benefits of Outsourcing Logistics Services | Advantages of 3PL Services | Image Source: GettyImages

There are a lot of advantages to outsourcing. This enables the company to exclusively concentrate on its main business by giving control of its logistics to an expert who will unquestionably be more effective.

Lowering risks for both your employees and your company

By outsourcing your logistics, you may remove a lot of restrictions while lowering possible risk for both your staff and your business:

  • It’s no longer your responsibility to maintain or replace equipment used in the supply chain;
  • Managing driving hours and adhering to regulations;
  • Accounting management;
  • The hiring, training, and replacement of workers when necessary;
  • Administration of the workforce (payroll, hiring, firing, sick leave, etc.);
  • The workforce can be adjusted to your seasonality and activity peaks without incurring additional costs for human resources (recruitment, training, taxes, etc.).

Focus on your business

A business must prioritize its product and commercial development as well as its marketing plan. However, logistical issues frequently take over, necessitating such rapid reaction that businesses have less time to build their core businesses.

The benefits of outsourcing logistics are therefore numerous:

  • This enables the business to concentrate on its primary business;
  • The organization gains access to a logistics specialist through its external service provider, who can assist it in enhancing specific aspects of its supply chain, such as order processing or deliveries.
  • Because of its own partners and negotiated pricing, your service provider may be able to reduce logistical expenses by up to 10% as a result;
  • It gives you more flexibility in regard to your sales (connected to the season or your growth) because your service provider can adjust to your increased activity more readily than you can;
  • A third-party service provider can help you expand your company globally if it is already well-established in the nation where you intend to expand.

Entrusting your logistics to a logistics services expert could be a smart move if your company lacks agility and logistical issues are affecting your main business. On the other side, you will have better control over internal flows if logistics is at the center of your operation.

The 3 key points to remember:

3PL Service Provider

Benefits of Outsourcing Logistics Services | Advantages of 3PL Services

  • Because there are several logistical issues in a company’s daily operations, outsourcing logistics enables you to concentrate on your main business. Utilizing a professional service provider frees you from a substantial number of administrative and technological restrictions.
  • But if you have the proper technical and human resources, internal logistics also allow you to better regulate flows and costs.
  • This issue needs to be taken into account, be the focus of specifications, and be the topic of an exact comparison of the costs associated with outsourcing vs insourcing.

Reverse Logistics Solutions by 3PL Links

Reverse Logistics Solutions by 3PL Links

Reverse Logistics Solutions | Image Source: dreamstime.com

Dealing with customer feedback is most businesses’ least favorite task. Today’s supply chain managers are primarily concerned with streamlining the movement of goods from suppliers to customers. Reverse logistics is in the same predicament as the product inflow into warehouses 20 years ago, when businesses were more concerned with the product outflow. Contrary to what its name might imply, reverse logistics really operates in the exact opposite manner by handling numerous consumer returns and, unless a better option exists, may even send them back to suppliers.

All businesses are concerned about reverse logistics, regardless of where they are in the supply chain. The first thing that comes to mind is the high number of returns that retailers have to deal with, particularly during certain times of the year, like just after the holiday season, but it goes beyond that. Since returns have an impact all the way down the supply chain, this is really just the tip of the iceberg.

You are welcome to get in touch with 3PL Links at any time for all of your logistics needs.

Some of our reverse logistics solutions to better manage your returns

The fundamental steps of a returns management process are the same regardless of the company. These are the main points:

Analyze the current situation:

What are the causes of return to your business? What is your current return policy? What process do you have in place to deal with them? What volume do you deal with annually? How do your customers rate your performance? How do you position yourself in relation to your competitors? Here are some questions that should allow you to establish your priorities in terms of managing returns.

Define your returns management strategy:

Analyze how effective returns management could help you lower expenses, enhance customer service, and even boost revenue. At this point, it is appropriate to assess some unique ideas, such as the option of either selling a product that no longer meets our quality standards on a secondary market rather than destroying it, or even disassembling the return into spare parts that can be used to make new products or sold as replacement parts. Once your goals have been established, you can create your returns policy in accordance with them.

Designing the Future Returns Management Process:

It is significant to remember that the returns management process starts long before the goods is returned. From the very beginning of the product development process, refunds should be taken into account.

Decide between outsourcing returns management or not:

Outsourcing this management will, of course, allow you to concentrate on your core competencies and avoid incurring the costs of acquiring this knowledge, or even profit from the cost reductions offered by the subcontractor’s knowledge. But one thing is certain: like every outsourcing choice, it ultimately comes down to evaluating the advantages and disadvantages and economically quantifying each.

Continuously reassess and improve the process:

Although this phase is present in every process but is frequently skipped, leaders are nonetheless responsible for it. As said so eloquently by the CEO of a major online art retailer: “Our strategy is to process returns promptly, while striving to keep them to a minimum.” The success of this business is most definitely not unrelated to this mindset.

Implementing best practices

Reverse Logistics Solutions by 3PL Links

Reverse Logistics Solutions | Image Source: aptean.com

There are some standard procedures that should be followed while creating a new returns management process. First, depending on the nature of the goods and the purchasing/distribution network, it is frequently suitable to allow returns through a specialized center or call center. This allows for the very first diagnostic and helps to prevent illegal returns, such as those where the consumer has not completely grasped how the product works or where the return is prohibited by the company’s return policies because of the date of purchase or for any other reason.

As soon as the returns are received, you must make sure to follow them through every step of the processing procedure and in accordance with the kind of returns. It may be useful to centralize their processing if the volume processed is high. This is particularly true when vendors need a certain quantity of products before they’ll accept a return. A return request can be sent to the supplier, pick-up instructions for returns can be issued at the warehouse, and labels and other delivery documentation can be printed once the minimum volume of products held in a common area is reached.

From challenging issue to tactical advantage

All firms face numerous issues related to returns, but what better way to begin realizing the need for management improvement than by assessing what it costs you in terms of returns? Then, consider how you could take advantage of your input to boost sales or enhance customer experience. This is a question that some businesses have posed to themselves and have found satisfactory answers. Who knows, maybe you’ll be able to use this challenging issue as a tactical advantage as well.

Different Types of Logistics Companies: Which One Should You Choose?

Types of Logistics

Types of Logistics Companies | Image Source: Getty Images/iStockphoto

The many types of logistics companies were created with the goal of giving businesses more assurance and peace of mind so that their operations are effective, timely, and affordable.

Are you attempting to improve the efficiency of your business? If the response is yes, we advise outsourcing your work to one of the various kinds of logistics operators we will describe below.

You will learn how many different types of logistics companies there are, what they do, and which one is best for your business in this article. Set yourself at ease, and let’s get started.

What is a logistics company?

A company that handles order processing, distribution to customers, and storage operations is known as a logistics operator. To comply with the end user, this requires human, physical, and technological resources, as well as transportation and information systems.

Despite possible confusion, logistics companies provide more than only services. With the businesses they collaborate with, they become partners and take full ownership of the management, analysis, and execution of the supply system.

A number of different types of logistics companies are currently being hired by businesses, exporters, and importers for their core operations.

If a business intends to use this service, it must first consider which category of logistics companies best meets their requirements.

How many types of logistics companies are there?

There are companies who meet all logistics functions to reduce costs, enhance service, and remain competitive while adjusting to your company’s needs in order to meet the obstacles that businesses face every day.

There are five different categories of logistics professionals: 1pl, 2pl, 3pl, 4pl, and 5pl. We encourage you to learn more about them by visiting:

1PL

The Logistics World website states that first party logistics (1PL) companies are in charge of overseeing land logistics and freight transportation.

The most skilled companies can handle a variety of goods, including frozen, refrigerated, and dry cargo. Depending on the needs of the client, they may also manage various fleets, drivers, and amounts of transportation.

2PL

Second party logistics is the name of the logistics provider who is in charge of independent and sporadic services. They are specialized, as opposed to the 1PL, and only concentrate on one activity.

Its goal is to lower client or supplier expenses for increased capacity when needed, preventing an unnecessary expenditure.

Similar to the 1PL, its specialty enables the management of several transports, warehouses, and goods handling modalities.

3PL vs 4PL

Types of Logistics Companies | Image Source: Dreamstime.com

3PL

The third party logistics provides a wide range of services, among which are:

  • Inbound transport
  • The operation of distribution centers
  • Value added services
  • Stock control
  • Outbound transportation
  • Reverse logistics

The outsourced company now has a higher level of accountability because it provides both 1PL and 2PL services in addition to managing all associated operations to enhance supply chain efficiency.

The trends in the 3PL, unlike the other types of logistics companies, are:

  • Transport and storage associations
  • Shopping
  • Consulting
  • Information systems
  • Consolidation
  • Vehicle tracking system
  • Information systems without documents
  • Green logistics

4PL

In contrast to other types of logistics companies, the 4PL differentiates itself by taking ownership of the contracting company’s complete supply chain.

That is, it does not only refer to storage and transport, but also to:

  • Obtaining resources
  • Planning
  • Control
  • Coordination
  • Audit
  • Consultancy
  • Execution of the correct operational functioning

The core responsibility of 4PL operators is to maximize each department’s performance so that it can participate in the supply system.

Additionally, they are accountable for occasionally assisting 2PL and 3PL operators in achieving their objectives more swiftly and effectively.

To make sure that your work and targets are achieved, these logistics companies utilize various quality and efficiency methods, like the supply chain, for instance.

Understanding that the 4PL model outsources the logistics process, whilst the 3PL model outsources the functions related to that process, this is necessary to distinguish between the two.

5PL

Today, we are already discussing fifth party logistics, which, in contrast to other types of logistics companies, aims to handle many supply chains in order to scale to a size that enables them to have reduced costs. This is all possible because of emerging innovations.

This is due to the service’s emphasis on increased volumes, better service standards, and more environmental efficiencies in this stage, which helps to reduce the carbon footprint.

5PLs must have systems based on cutting-edge technologies like Blockchain and Big Data, which is a terrific advancement for the present day and can be accomplished with the aid of smart collaborations with 3PL and 4PL companies.

What should you take into account when choosing one of the types of logistics companies?

Logistics Operator

Types of Logistics Companies | Image Source: snackandbakery.com

When choosing between the types of logistics operators, you must keep in mind what type of service you need and what scope you want to achieve, because, as you have observed throughout this note, there are comprehensive and specialized logistics companies in a single service.

Once you have defined which logistics operator suits your needs, you should consider that it has:

  • Trained staff in handling your merchandise
  • Technology and equipment (inventory management software, cargo handling equipment, among others)
  • Communication and information
  • Security and financial support
  • Infrastructure (in storage areas, for example)
  • Insurance policy
  • Flexibility in service

You will already be acquainted with the many kinds of logistics companies and why hiring them is advantageous for your business if you have read this article.

At 3PL Links, we assist you with our round-the-clock logistical service; we will be in charge of all your logistics. Contact us now!

How to Manage a Warehouse: The 10-Step Guide to Logistics Management

how to manage a warehouse

Learn how to successfully run a warehouse in today’s blog post to increase sales for your business. It is a widespread issue in many businesses, and without careful planning, undesirable things could happen like incorrect shipments, missing goods, and uncertainty brought on by a staffing shortage in the warehouse.

You understand what we’re talking about if you are familiar with these snags or believe that your warehouse is costing you excessively. Some businesses focus all of their resources on information technology to address these issues, but this approach might not be the best one. A management culture issue is frequently at the heart of a poor logistical organization; as a result, if you want your warehouse to function properly once more, you must first adjust your approach.

Is it feasible to create an organized warehouse where everything is always where it should be and can be fetched quickly and easily? Where the on-time delivery of items is always guaranteed and warehouse employees cannot possibly make a mistake? This is how your warehouse might look. Do you wish to learn how?

The 10-step strategy for successful warehouse is a collection of do-it-now strategies for escaping the warehouse’s inferno. This manual’s approaches will show you how to run a warehouse while saving time and money and significantly boosting its value.

Read also: 7 Best Tips for Inventory Management To Avoid Losses

The 10-step guide to the perfect warehouse

1. Start by altering your mindset. Forget the stereotypes that prevent a warehouse from being transformed, and begin to view your warehouse as a resource. You can only start to modify the management culture from here.

2. Your team needs to change. Engage and inspire staff members, call a meeting with everyone, select supervisors, and provide incentives. They will be more inclined to improve their working style and follow you as you work to improve the warehouse if they feel included.

3. Examine and quantify your warehouse and everything that occurs there before making any decisions, including the quantity of things and movements, the places designated for storage, and the dependability of deliveries. Applying the wheel analysis is also a smart idea.

4. To organize the workspace better, sketch out the warehouse’s plan. The efficiency of different techniques, like the FIFO approach, varies depending on the warehouse activities. The key is to have the best infrastructure for your business.

5. For speed and precision, it is imperative to constantly know where the things are. As a result, it’s necessary to map the warehouse area with an alphanumeric code that enables quick item location.

6. In addition to mapping the area, you must also mark all of the individual boxes and pallets with names so that you can always know where a product is and how much there is of it, without any chance of error.

7. Establish the rules and specify the operational flow based on the analysis and measurements you have performed. For optimal logistics management, learn from major businesses.

8. At this point, technology can be used to combine all the previous procedures in order to maximise the warehouse’s upgrading. You’ll see how effectively automation may be used!

9. Create a dashboard that enables you to automatically record any operation. A great deal of inconveniences, including the extremely risky stock outage, will be left behind.

10. Lastly, allow yourself enough time to upgrade your warehouse. Because it involves changing methods and strategies at every level, the process is lengthy and may take many months. Even if it could be annoying at first, don’t give up at the first obstacle and don’t try to rush things.

All you need to do now that you know how to run a warehouse is put the 10 steps into action. I can guarantee that your warehouse will grow into a significant source of revenue for your business and lead you in the right direction.

5 Fundamental Steps Involved in Supply Chain Management

Supply chain management steps

5 Fundamental Steps Involved in Supply Chain Management | Source: Adobe Stock Images

Some core activities must be accessed in order for a company’s manufactured goods to be sold. They fall under the umbrella of supply chain management. Therefore, it is crucial to understand the elements that make up and are a part of it.

Any effective supply chain management system will be able to reduce inventory, which will result in the provision of the best management solutions.

These processes can now be improved by a wide range of systems, which go hand in hand with the innovations and technology they offer. However, in order to incorporate good management, it is crucial to have a thorough understanding of the supply chain.

What is supply chain management?

Management of production processes and all activities involved in transforming raw materials into finished goods are the foundation of supply chain management. Being a crucial component of manufacturing and retail distribution.

This kind of management requires the integration of key components including financial management, operating costs, and customer service. Ensuring that all tasks are completed efficiently and accurately at all times, while also thinking about the needs and well-being of the clients. Respecting the deadlines set for delivery and being flexible with collections.

Read Why Is Supply Chain Visibility Important?

5 fundamental steps involved in supply chain management

The steps that are taken as part of supply chain management provide activities that are crucial to the enhancements and specifications that particular management includes. It involves six basic phases that are part of manufacturing systems.

Planning

Basic planning is a requirement for management at all levels since it enables the development of the plans that will be incorporated into the operations. In theory, it is crucial to market the items, whether locally or worldwide, as both have benefits and drawbacks that must be considered.

Also, the choice of the product’s manufacturing and storage processes. These tactics must be kept in mind and are an integral aspect of every company’s management.

Supplies

This is the location of raw materials and those materials necessary for the manufacturing processes of finished products. Always ensuring that the value of these is the best in the market, as well as their quality. It is important to study possible candidates to provide such supplies, as well as planning for delivery times.

The evaluation with respect to the suppliers must be done constantly so that the supply chain management can become effective, scheduling payments and guaranteeing that the essential requirements for it are executed safely.

Place

When you want this management to be really successful, it is important that the supply chain finds the right place to develop and thus allow greater performance, especially when it comes to materials or supplies.

Supply Chain Management Process Steps

Image Source: Amazon Business

Manufacturing process in the supply chain

Assembly, testing and packaging activities are integrated into the product manufacturing processes. Taking into account the pertinent evaluations for the performance and the different methods to apply. Likewise, the existing facilities and regulations that must be integrated are taken into consideration.

Delivery Systems

Step in which various processes related to logistics and the supply chain are integrated, recognizing the distribution, transportation and processing systems in orders made by customers. Also including work in warehouses and inventories, in some cases the hiring of operators for the management of these processes is taken into consideration.

Returns Process

One of the most important steps in the management of the supply chain, because every company must seek effective procedures for the return of products that have been defective, providing that they are very simple and without major complications.

These processes require the integration of standards that are established within the organization, in order to take into account the costs, the result and the variability in inventories. For what it is necessary to be able to verify the products that have been returned, authorize said returns, make the programming of the shipments and make it simpler to refund the money.

5 Advantages of a 3PL Service to Multiply Your Success

Advantages of 3PL Service

Advantages of 3PL Service | Image Source: Google Images

3PL is an acronym for “Third Party Logistics”. It means hiring a specialized company to carry out the logistics of your business and thus concentrate on the key activities of your company. Today, in this article we are sharing the main advantages that a 3PL service can give you.

Essentially, a 3PL company is a physical location that helps you with the storage and distribution of your products. It even has the ability to support you in inventory management issues, local and regional distribution of merchandise and returns.

If you are wondering if the size of your company is large enough to hire a 3PL service, we recommend you to focus on the time you can save by simplifying processes with customized solutions.

Simplify your processes with a 3PL service

A 3PL service represents support for the performance of your operation and has the ability to create a suit tailored to your needs based on:

Storage
Collection: at your factory or company
Packing and packaging
Transportation: From the Distribution Center to your customers
Import of merchandise
Solutions in E-Commerce

 

Instead of investing financially in a physical space and dividing your time supervising employees to pack as well as transport your merchandise, a 3PL service does it for you.

In addition, a 3PL service has technology systems and the intelligent use of it will make your business work at its maximum potential and on wheels.

 

5 Advantages of a 3PL to multiply your success

A 3PL has all the tools you need for the success of your operation. In addition, in this way, you will have access to a series of previously qualified resources:

  • A specialized team that knows perfectly how to handle your merchandise.
  • A land fleet at your service.
  • Experience in imports and even agreements for air and sea transportation if you require it.

 

A 3PL service saves time and money:

  1. It allows you to reduce capital investment in physical space and merchandise transportation thanks to the consolidated cargo service.
  2. You eliminate the learning curve that it would take for your team to be trained in the technology for inventory management and transportation.
  3. Thanks to the team of experts, you avoid having to hire and supervise employees to achieve these goals.

 

Risk reduction:

Allowing a 3PL company to do your job will increase your own productivity. We know that being productive is not the same as staying busy and by relying on their experience, you reduce risks in security issues, route planning and documentation, as well as processes with customs agents and imports if required. In a word: you reduce stress.

 

You optimize the supply chain to the maximum:

  • The specialized technology that a 3PL company has allows you to have a comprehensive vision.
  • Real-time tracking of your merchandise allows you to provide quality service to your customers. So instead of coordinating many vendors with their respective deliveries and returns, your logistics partner handles the entire supply chain from start to finish.

 

A 3PL service provides Scalability and Flexibility

As your inventory and transportation needs change, your 3PL should give you the certainty to streamline your processes. Having the certainty that you will be able to deliver your merchandise in a timely manner ensures the growth you are looking for as well as success in each part of the process.

 

Conclusion:

Allowing a 3PL company like ourselves to do its job allows you to more easily achieve your operating goals. Your productivity success means identifying those processes that will save you time, resources and stress.

Would you like to find a customized solution for logistics issues? Expecting or having the idea that you can control each part of the chain carries an opportunity cost in the short and long term.

3PL LINKS EXPANDS WAREHOUSING IN VAUGHAN AND WOODBRIDGE

Announcing:  Two new warehouses to accommodate growing demand of supply chain services.

Vaughan, ON – January 25, 2021– 3PL Links Inc., a leader in 3rd party logistics and supply chain solutions, announces the opening of two new facilities in the greater Toronto area (GTA) representing an additional 38,000 square feet of office and warehousing space to better service and support the continued growth of their client base and increase in demand for outsourcing of 3rd party warehousing and logistics services.  This expansion compliments 3PL Links’ established ambient and temperature-controlled transportation and warehousing programs.

The new warehouses will allow 3PL links to provide customers with improved order fulfillment, increase speed to market, scalability for seasonal demand, and allow 3PL links more capacity for the growing demand of 3rd party warehousing, distribution, and transportation services. The extended warehousing footprint allows for the expansion of “pay as you play” service offering allowing customers to move from a traditional fixed cost brick and mortar model to a flexible 3rd party solution in order to accommodate sales and inventory seasonality & fluctuations.

“The additional 38,000 SQFT mean that we are better suited to address our growing customer needs and demand for value added services.” Said Walter Grossi, President & CEO 3PL Links Inc. “The locations will provide 3PL links a much-improved warehousing & distribution service footprint enhancing our service capabilities as the 3rd party logistics environment continues to shift to a B-to-C market”.

The new 3PL Links facilities are centrally located for convenient customer access: 

WOODBRIGE FACILITY:

155 Rowntree Dairy Road, Woodbridge, ON L4L 6E1

Size/ Capacity:  14,000 SQ FT

Employees: 16

 

VAUGHAN FACILITY:

1380 Creditstone Road, Vaughan, ON

Size/ Capacity:  24,000 SQ FT

Employees = 10

 

For press contacts:

Catherine Luzena-Hall  Practical Marketing Group (647) 459-7949 catherine@practicalmarketinggroup.ca

For more information about 3PL links: 1-877-660-3362

Or to request information:  https://3pllinks.com/request-information/

 

Battered But Not Broken

Supply chain and logistics industries learn valuable lessons as a result of COVID-19
By Grant Cameron
Published in FoodinCanada July/August 2020 edition

The COVID-19 crisis struck the world like a perfect storm. The clouds gathered quickly and in a matter of months shook the traditionally- solid pillars of the global food supply chain, changing the industry forever.

Grocery stores were under pressure to keep the shelves stocked as people turned away from the food service sector and prepared their meals at home. In the early days of the pandemic, panic-buying by consumers emptied some supermarket shelves and retailers had to impose limits on certain purchases.

Closure of restaurants, bars and cafes added to the mix. And to complicate matters, the supply chain was threatened by temporary closures of meat-packing plants due to workers testing positive for the virus.

Transportation and food distribution networks had their own logistical problems. At the outset, with restaurants and rest stops closed, many long-haul truckers did not have adequate access to food or facilities.

While the full impact of COVID-19 on Canada’s food supply chain will be the subject of study for some time to come, the crisis did expose vulnerabilities and raise concerns about the resilience of the system.

“A crisis tends to expose the vulnerabilities of organizations and their supply chains,” explains Jim Kilpatrick, global supply chain and network operations leader at Deloitte Consulting in Toronto.

“Most organizations were not prepared for a crisis of this magnitude. While some organizations had developed general supply chain risk management strategies and business continuity plans, very few had a playbook to respond to the risks presented by COVID-19.”

Most companies discovered that their supply chains were not as resilient as they thought, says Kilpatrick.

“Very few companies had end-to-end supply chain visibility, from source to consumer, to anticipate supply chain disruptions and proactively manage them. Visibility to direct-only suppliers proved to be insufficient as many disruptions were caused by issues with their suppliers’ suppliers.”

Meanwhile, he notes, very few companies had the inventory buffers to absorb the significant swings in demand and supply availability seen during the crisis.

“This will lead many organizations to rethink their supply chain footprint, inventory strategies and technologies that can enable broader supply chain visibility — with more of a balanced view and understanding of the trade-offs between resiliency and efficiency.”

Kilpatrick, a professional engineer who has led several global supply chain transformation programs, says the biggest challenge in the early days was getting food products into markets that were effectively shut down.

The Canadian lobster industry, for example, had significant supply destined for China, where prices are generally at a premium, yet no way to get the product into that marketplace given the shutdowns, he says.

On the home front, Canadians began stockpiling consumer staples that led to logistical challenges to keep the retail shelves stocked.

“As the crisis grew in Canada, and consumers were asked to self-isolate, we saw a significant surge in e-commerce and home delivery. Most food companies and grocery retailers were not prepared for this massive surge in on-line volume and needed to quickly respond. Most organizations were able to respond sufficiently with manual and labour-intensive processes, which met the demand but at a relatively high cost.”

Transportation and logistics companies were also under pressure to keep products moving while the rest of the world shut down.

“It’s been a challenge for sure,” says Don Fleming, vice-president of operations at 3PL Links, which specializes in moving freight such as food and beverages from international destinations or across Canada. “The first two months were very tough. It was mostly the unknown and not knowing which clients were able to continue.”

There were also questions around how businesses were going to operate and how paperwork would be processed. In the beginning, companies were introducing various technologies so drivers could avoid exchanging paperwork and remain safe while moving loads, but the platforms were often very different.

With so many shippers and receivers in the mix, 3PL decided to share best practices and platforms and send out information to its network.

“Our sales reps and I were calling around asking what the procedures were looking like and what they were noticing and what was working well, and then we started sharing that with our client base and they started sharing it with theirs — their shippers and receivers and suppliers, so that worked really well.

“The handheld partners quickly went to no-touch so it took a couple of weeks before receivers and clients adapted,” says Fleming. “We were sending out communications saying, ‘Listen, here’s what your solution is and here’s what it has to look like for quite some time and please let us know if you have any issues.’”

Fleming figures a third of 3PL’s clients are now using no-touch systems. “They’re okay with having a handheld and not getting a piece of paper and sending an invoice with a screenshot. We were told things would never change but you have to.” The trucking industry, a key link in the supply chain for grocery stores and food suppliers, was particularly affected by the pandemic.

Jean-Marc Picard, executive director of the Atlantic Provinces Trucking Association which represents more than 320 companies, says drivers and dispatchers had a number of logistical hurdles to overcome, more so in the early days when rest areas were closed or limiting service and drivers couldn’t find sanitary supplies.

Provinces also had different rules, he says, and trucking companies had a lot of questions. Drivers often called to find out if they needed to isolate.

“It was fast and furious at first but we were quickly identified as essential workers which settled things down somewhat. Communication with government and our members was key.”

The association launched a #thankatrucker campaign across Canada aimed at helping restaurants, people and communities recognize the importance of trucking, and Picard says the response was amazing.

On the logistical side of things, paperwork was perhaps the biggest headache for truck drivers, notes Picard, but many carriers have now moved to electronic documents to avoid risk of contamination. Much of the paperwork at the borders has also been eliminated so drivers have less personal contact with officers.

Dave Earl, president and CEO of the British Columbia Trucking Association, says the closure of restaurants and washrooms made life difficult for truckers in the early days but the industry stepped up and by the middle of April the situation had stabilized.

The safety of drivers was and remains the principle challenge, he says. The association has been working with customers to reinforce the importance of protecting drivers.

“We are asking drivers to travel to areas where the virus is very prominent, to interact with customers, and deliver the goods we all rely on. Drivers not only have to be protected, they have to be confident they have the ability to work safely and not bring the virus home to their families.”

Earl says both the supply chain and logistics industries have learned valuable lesson from the COVID crisis.

“The economic web that we operate in is extremely complex and fragile. It’s not just about moving goods, it’s taking care of the people who do the work.”

5 Ways a Third Party Logistics (3PL) partner can help you unlock the potential of your supply chain

Published in InsideLogistics Magazine

If you’re moving goods from point A to point B, you know all too well that supply chain costs account for a huge proportion of operational expenditures. Not surprisingly, they’re always under scrutiny. And for good reason. There are almost always ways to boost efficiency, streamline processes, and extract waste.

That’s where a Third Party Logistics (3PL) partner that integrates closely with your organization can be a game-changer. Case in point – 3PL Links focuses on building close personal relationships with its customers.

As a result, the company knows its client’s businesses like its own and understands the market conditions impacting them. With this insight, the right 3PL partner can recommend strategies for increasing agility, cutting costs, and improving efficiencies.

5 ways a 3PL partner can help you transform your supply chain:

1. Consolidating shipments & optimizing timelines
A good 3PL works with you to consolidate shipments, either within your organization or with another company with complementary shipments. Consolidating shipments, tuning timelines, and occasionally re-routing shipments can reduce moves – and dramatically reduce costs and improve delivery times.

2. Finding the perfect transport method for every shipment
One of the biggest mistakes some companies make is using one shipping method they’re comfortable or familiar with.

Whether it’s by vehicle, plane, train, or container ship, the transport mode that’s right for one shipment isn’t ideal for another. Each method has pros and cons. Air is the fastest long-range shipping option. It’s also more vulnerable to delays from adverse travel or weather conditions. It’s also usually the costliest option.

On the other hand, trains are less expensive. They’re the fastest method of ground transportation – but not as fast as air. And with either air and train, you still have to use trucks to get products to the final destination.

Likewise, there are pros and cons to vehicle and marine shipping solutions. An experienced 3PL can select the best solution for every shipment to help you save money and get your products to their destinations in the most efficient way.

3. Optimizing delivery routes to drive efficiency
When you work with a 3PL partner, you can tap into efficiencies that aren’t available otherwise because they have insight and expertise most companies don’t. That goes beyond choosing the best transportation mode. It includes optimizing routes and carriers especially if you move goods across borders.

For example, the most direct route isn’t always the most cost-effective or even right for your time frame. A 3PL routinely assesses and optimizes available routes and negotiates volume rates with select carriers. They have the visibility into the networks and constantly monitor every variable to customize the right solution for each unique shipment. Bottom line: If you’re flexible about transportation modes, routes and carriers, you can save a lot of money.

4. Harnessing technology to automate processes
When it comes to cutting costs, data and technology are your best allies. Many companies waste time and money on man-hours sending and tracking shipments

That’s where a 3PL can help. With access to state-of-the-art software, they can help you consolidate shipments and add transparency to your supply chain. They can automate supply chain operations, especially if you ship across borders or use multiple shipping modes – all with end-to-end visibility.

That might mean resolving issues in real time. Improving billing accuracy. Consolidating invoices from various modes with complete backup and accountability. With a 3PL partner, you can count on the accuracy and immediacy of the data, freeing you to focus man-hours where they really count.

5. Help you track and manage inventory in real time
Do you know exactly how much product you have this minute? Can you fill your next order in time – without keeping excess inventory on hand that increases your storage costs? Will you have to pay a premium to ship express?

You can’t make informed inventory decisions for your business if you don’t have access to up-to-the-minute, accurate data.

This is where a 3PL partner shines. A good partner can assess your inventory requirements and storage methods and identify opportunities to improve efficiency and reduce costs. Are you storing or reporting data manually? A 3PL partner offer the tools, processes, and programs you need – for instant, accurate inventory reporting and measurable time savings.

It all adds up to significant savings in time and money …

Just about every business can benefit from the best practices 3PL providers bring to the table, whatever your industry. They have the resources, knowledge, and experience you need to expand your reach. These 5 suggestions are just the start.

Looking for clarity or insight into where you can streamline your processes, consolidate supply chain steps or reduce operational and administrative costs? Consider a 3PL partner — like 3PL Links — with the experience and expertise to help you help you compete smarter and maximize your investment.

Covid-19 Announcement

To our Valued Customers,

3PL Links is closely monitoring the coronavirus outbreak and wanted to take this opportunity to share with our customers the preparation and precautions that we are taking as a company.

• 3PL Links has the necessary equipment and IT infrastructure for our employees to telecommute and perform their duties as they would normally within the office. 3PL Links currently has employees that telecommute, in addition to more company-wide telecommuting that has been executed in the past as needed for weather conditions and other emergencies.

• 3PL Links has continued to take all sanitary and health precautions within the office per Health Canada recommendations.

• 3PL Links is currently suspending all non-essential travel, monitoring all future employee travel and taking appropriate precautionary measures to ensure the safety of our team members, customers, vendors and our community at large.

The health and safety of our team members has been and will continue to remain a top priority of 3PL Links. With that in mind and the precautionary measures put in place, 3PL Links is prepared to continue to execute our customers’ shipments to the highest standards possible and to offer surge capacity and capacity solutions through our intermodal, truckload and LTL capabilities. Please feel free to reach out to your 3PL representative for any further questions, concerns and to provide any needed assistance. We sincerely appreciate your continued business and support.

Sincerely,
Walter Grossi, President
and Your 3PL Links Team.

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