In the realm of modern logistics, this promising solution is gaining traction worldwide. Here in North America at our Brimich Logistics Inc. facilities, this innovative approach is being implemented. As one of the first facilities in North America to adopt this system, we are proud to say it has helped to align with the growing emphasis on sustainability in our supply chain practices.

Industry Snapshot

From perishable foods to life-saving pharmaceuticals, maintaining precise temperature control throughout the supply chain is not just a preference; it’s a necessity. There are two dominating factors causing food waste in the Logistics and Supply Chain industry:

1. A lack of high-quality reliable Cold Storage temperature control
2. Inefficient handovers causing unforeseen breaks within the supply chain.

Brimich Logistics Inc. is dedicated to offering dynamic customizable solutions for clients, so that we can each strive in this area.

Brimich Logistics Inc.

Among early adopters of these CO2 systems is Brimich. Our very first Cold Storage CO2 facility was opened at 470 Hardy Road in Brantford Ontario in 2021. This adaptive strategy has become one of the most crucial value-added services for clients’ dynamic and ever-changing needs. To date, a portfolio of core high-profile clients are uniquely serviced at our 130,000 square foot CO2 Cold Storage facility in the Oak Park industrial area in Brantford, Ontario.

This initiative has lasting impacts on the client’s bottom line, efficiency within the Cold Storage supply chain and environmental benefits. Ultimately this service offering directly improves company bottom-lines and the quality of product the end consumer receives. Proper temperature control is vital for keeping frozen foods fresh as approximately 13% of all globally produced food is lost each year due to poor supply chain processes.

At Brimich, we strive to continuously adapt to this dynamic and vast industry. Our goal is to remain impactful and innovative in an industry where the end-consumer expectations of quality, time and offerings is ever-changing and deeply dynamic. Our passion is to focus on solutions that increase the durability of the supply chain processes our clients experience, while standing with integrity throughout the entire process.

Market Size: A Growing Giant

The Cold Chain Logistics market has been on a steady rise, propelled by the increasing demand for perishable goods worldwide. According to recent studies, the global Cold Chain market size was estimated to be over $200 billion in 2021 and is projected to continue its upward trajectory.

By 2030 the market is expected to be valued at $782.27 billion. Factors such as globalization, urbanization, and changing dietary preferences contribute to this expansion.

The Crucial Role of CO2 Cold Chain Storage

Within the realm of Cold Chain Logistics, Carbon Dioxide (CO2) as a refrigerant has re-emerged as a key player, revolutionizing the way perishable goods are stored and transported. Unlike traditional refrigerants such as Freon, CO2 offers several environmental and operational advantages. Its non-toxic and non-flammable nature makes it safer for both workers and the environment.

The importance of CO2 Cold Chain Storage extends beyond its environmental benefits. Its high cooling capacity and efficiency ensure precise temperature control, critical for preserving the quality and safety of perishable goods.

Moreover, CO2-based refrigeration systems are increasingly recognized for their reliability and cost-effectiveness. As businesses strive to optimize their operations and reduce operational costs, CO2 Cold Chain solutions offer a compelling proposition – combining performance with sustainability.

Using CO2 as a refrigerant is like recycling or delaying emissions. This is because CO2 is an industrial by-product emitted from factories. By using CO2 resources captured from this process, CO2 gas mimics environmental recycling processes.

Leading Regions in the Industry

While the demand for Cold Chain Logistics is ubiquitous, certain regions have emerged as leaders in driving innovation and adoption within the industry:

• North America: With a well-established infrastructure and stringent regulatory standards, North America boasts a mature Cold Chain Logistics market. The region’s advanced technology adoption and emphasis on food safety have propelled the growth of Cold Chain solutions, including CO2-based refrigeration systems.
• Europe: Europe stands at the forefront of sustainability initiatives, driving the adoption of eco-friendly Cold Chain practices. Countries like Germany and the Netherlands are renowned for their advanced logistics infrastructure and commitment to reducing carbon emissions. CO2 refrigeration technologies are gaining traction across Europe, supported by government incentives and regulations promoting environmental sustainability.
• Asia-Pacific: Rapid urbanization and changing consumer lifestyles in Asia-Pacific have fueled the demand for Cold Chain Logistics, particularly in emerging markets like China and India. As these economies continue to grow, the need for efficient and sustainable Cold Chain solutions becomes more pronounced. CO2 refrigeration systems offer a promising solution to meet this demand while addressing environmental concerns.

A Promise From Us

Not all logistics problems have the same solutions, which is why we work alongside clients to build a unique customized solution. With Brimich, all your CO2 Cold Chain needs will be met with a reliable representative who can combine local presence and global reach. We strive to bring simplicity and predictability, while also reducing risk and administrative workloads on your business.

We create solutions that are governed by a strong commitment to helping your supply chain performance and efforts towards carbon neutrality!

The logistics and warehousing industry play a pivotal role in global commerce. At Brimich Logistics Inc., we are committed to ethically and safely facilitating the movement and storage of goods that are essential for countless businesses and consumers worldwide.

Amidst the fast pace of supply chain operations, it can be easy to attempt to move faster and potentially overlook the inherent risks associated in the working environment. From heavy machinery and equipment to potentially hazardous material – the logistics and warehousing sector presents unique challenges. At Brimich, meticulous attention to detail and continuously reinforcing safety protocols is a daily standard and expectation.

Brimich Health and Safety Commitment

Days without lost time achievements at two facilities: 2542 days and 2206 days (as of April 17, 2024)

In the warehousing industry, achieving consecutive days without lost time is a statement made with pride. A standard of excellence helps to underscore the foundational importance of prioritizing health and safety internally.

We continuously emphasize a robust commitment to health and safety on a high level, down to the smallest everyday tasks. We help to ensure this standard by implementing:

• Daily pre-shift safety meetings
• Strict retraining protocols
• Focusing on standardized training programs
• Continuous training and re-training commitments during employment
• Dedication to housekeeping and cleanliness – A standard practice and demeanor is expected on site across all job levels
• A constant awareness of cleanliness and proactively ensuring no items are on the ground or in undesignated areas
• Pallets and contents are always tidy
• Quarantine zones provided for items and palettes that are not up to our internal standards

2542 and 2206 days without lost time speaks volumes about the meticulous attention to detail from our committed staff and the standards of training and excellence ingrained within our company’s ethos.

Each day without lost time incidents reflects the embedded culture of safety from the ground up, that is adhered to daily. This achievement highlights the dedication to safeguarding the well-being of our internal workforce and helps set a benchmark for our industry peers.

As emphasized, a robust commitment to health and safety begins with standards, practices, and our daily demeanor.

A message from Michelle Amore – Director of Health and Safety

“Safety is our most basic everyday task. Our goal is to send our team members home the same as they arrived at work. If we look out for each other and keep safety as the number one goal in every task, we can be successful in creating a safety-first mindset in everything we do.”

“Safety is our most basic everyday task”

The Importance of Health and Safety Commitments in Logistics and Warehousing

Ensuring the well-being of workers in this industry protects liabilities, lives and is a morally obligated standard. At Brimich, we see this as a strategic imperative and believe all industry forerunners should commit to ensuring the serious undertone of these practices. Here’s why:

1. Protecting Human Capital: Employees are the backbone of any organization. By implementing robust measures, businesses can safeguard their most valuable asset – its workforce.
2. Mitigating Risks: Logistics and Warehousing is inherently dynamic, with numerous moving parts and potential hazards. Implementing comprehensive safety protocols helps reduce the likelihood of accidents and injuries.
3. Enhancing Efficiency: A safe work environment is also about optimizing operational efficiencies. By streamlining processes, minimizing downtime due to accidents and injuries, and ensuring proper functioning of equipment, businesses can enhance productivity and maximize output.
4. Compliance and Reputation: Failure to adhere to high standards can result in legal repercussions, financial penalties, and reputation damage. Demonstrating a commitment to health and safety ensures regulatory compliance while also enhancing brand reputation and credibility.
5. Adaptability and Resilience: This is an essential business stance for long-term sustainability. Prioritizing health and safety fosters a culture of continuous improvement and innovation. This translates to enabling businesses to adapt to changing circumstances quickly, mitigates risks effectively and allows teams and brands to thrive in the face of adversity.

As we observe World Day for Safety and Health at Work, let’s collectively reaffirm our commitment to creating safer, healthier workplaces within the logistics and warehousing sector. On April 28^th we celebrate World Day for Safety and Health at Work in conjunction with National Day of Mourning. On this day, we will remember and honor those who have suffered from work-related tragedies within Canada.

On this #DayofMourning, we can collectively renew our commitment to improving health and safety in the workplace and acknowledge the pride and recognition toward Brimich operational staff, for helping us operate for over 2500 days without lost time.

Each day, we work to protect our most valuable asset – our people – while helping to drive operational excellence, regulatory compliance and sustainable business growth. Our health and safety commitments are displayed this week, and every single day. Together, we can make a difference. Together, we are building a safer, healthier future for all!

Logistics and Brokerage in a Global Economy

To start with, logistics companies control the movement and storage of goods, services, or information within a supply chain. Their strengths lie in the planning and implementation of delivery between the points of origin and final destination.

Brokerage firms can play an essential part in extending the relationships needed to move products cost-effectively throughout the supply chain.

Depending on their specific expertise, logistics companies and their partners manage some or all of these supply chain functions, depending on a client’s logistical needs.

Logistics is a term with its roots embedded in the military. During wartime, supplying troops with related equipment and associated supplies in a timely fashion is a function of logistics. With the rise of consumerism in the 1950’s, logistics evolved to serve more complex supply chains growing nationally.

This process of coordinating the movement of supplies and materials has now become globalized. in today’s world of business, particularly in the movement of physical goods, the supply chain is a vital part day-to-day operations.

A comprehensive supply model may include:

• transportation
• shipping
• receiving
• storage
• management of all or one of these functions

Additionally, logistics operations may also apply to:

• information
• transportation
• inventory
• warehousing
• material handling
• packaging
• disposal
• and security needs

3PL vs Freight Broker Services

Defining the Difference Between a 3PL Company and a Brokerage Firm

The terms 3PL and freight broker often get used interchangeably. But this creates confusion which comes at the expense of how each service is actually defined.

Third Party Logistics companies and Freight Brokers are both intermediaries between the shipper and the carrier. And there is a difference.

A freight broker focuses primarily on meeting specific cost and service goals associated with a singular shipment.

A 3PL provider works more strategically in the context of a bigger picture. By planning earlier in the supply chain, they anticipate the needs of a client through every step of the supply chain process from pickup and transport through to delivery.

What is a Freight Broker

As mentioned previously, a freight broker will often focus on one single shipment. The broker will act as a non-asset bearing intermediary between a shipper who has products to transport, and a carrier who actually moves the freight.

Essentially, a Freight broker networks directly with owner-operators nationwide to coordinate the individual shipments. Currently, freight brokers handle a significant amount of motor carrier transport in North America.

In terms of operations, freight brokers provide a large network of shipment options by connecting with hundreds, or even thousands of small to medium-sized freight carriers.

This benefits shippers by affording alternatives to larger freight carrier and cargo providers. Smaller independent carrier operations tend to rely more on brokers for business compared to larger carrier providers who will often have long standing relationships with 3PL companies.

What is a Third Party Logistics Company

In a previous article, we defined the role of logistics in the supply chain, but in its broadest form, 3PL applies to any service contract that involves storage or shipping of a product.

A 3rd party logistics company may have the flexibility to only offer a single service, like transportation. Or they may have multiple warehouses in Austin Texas, or specialize in inventory management.

A comprehensive 3PL company may also offer a system-wide, front-to-back bundling of services and management of a client’s entire supply chain.

By integrating operations such as warehousing and transportation, many 3rd party logistics companies tailor services to match a client’s needs.

Finally, a typical third-party logistics company is an asset-bearing firm that establishes relationships with shippers on a broader scale. Compared to brokerage alone, a 3PL company makes an investment in physical and human capital, including brick-and-mortar locations and wheels on the ground.

Why Combining Brokerage and 3PL Services Makes Sense

Shippers looking for the benefits that come with a collaborative transportation network will find that a 3PL fits their needs. However, freight brokers can play an important role in relation to shippers with already established 3PL relationships.

For example, if a shipper needs greater flexibility in moving their products, they may contract with a brokerage firm to supplement their shipping needs. When capacity is tight, a brokerage firm that has a long-standing relationship with a 3PL provider can pose an advantage.

For your own company, it’s not about choosing between a 3PL or a freight broker. It’s about establishing relationships with both entities, 3PL companies and freight brokerages alike, in the interest of reducing overall shipping costs.

As a small business owner, you probably find you often have to handle some level of inventory management, distribution logistics, and warehousing yourself. You may already engage in most of these functions internally.

A a business grows and becomes more complex, third-party logistics providers are the frequent solution to more complicated procedures. For example, deciding to export your products may require you to hire a person or organization that helps with distribution logistics.

Let Brimich Logistics Give You the Advantage

The streamlining, consolidating, and outsourcing of your logistics processes can result in significant long-term financial savings, and better overall client service.

Connect with Brimich to learn more about what a logistics company is, and specifically does to provide value.

We’re here to help you with your overall shipping needs across North America and beyond. It’s our goal to provide you with the best possible customer service!

Have you looked at your shipping processes in order to save money and control overhead? As a small business owner, there’s a chance you may be spending too much and not getting nearly enough in return.

Smart shipping management requires a basic understanding of industry terminology. The small investment in the time it takes to familiarize yourself with industry-specific jargon will pay dividends by reducing miscommunication.

If your company doesn’t have its own shipping department, you should be aware of shipping terms and conditions, especially before conducting direct imports. No one expects you to learn all the intricacies, but knowing the basics will keep you out of the dark, and out of trouble.

Therefor, here’s a quick reference sheet you can refer to to acquaint yourself with what may be some unfamiliar shipping terminology.

Shipping, Freight, and Logistics Terms

1. Accessorial Charge

   Additional fees charged for add-on services or equipment required for the delivery of your cargo.

2. Backhaul

   When a driver transports cargo during the return trip of a commercial vehicle, is known as a backhaul. This helps the cargo vehicle maximize their trips.

3. Bill of Lading

   A document issued by a carrier to a shipper, signed by the captain, agent, or owner of a vessel. Furnishing written evidence of receipt of the goods (cargo), the conditions on which transportation is made (contract of carriage), and the engagement to deliver goods at the prescribed port of destination to the lawful holder of the bill of lading.

4. Customs Broker

   An individual or firm licensed by, in this case by U.S. Customs & Border Protection, to act for importers in handling the sequence of custom formalities and other details essential to the legal and speedy exporting and importing of goods.

5. Carrier

   A legal entity or entitled individual in the business of transporting passengers or goods for hire. Shipping lines, airlines, trucking companies, and railroad companies are all carriers.

6. Container

   A single rigid, sealed, reusable metal box in which merchandise is shipped by vessel, truck or rail. Ocean shipping containers are generally 20, 40, 45 feet long. Ocean freight container types include: standard, high cube, hardtop, open top, flat, platform, insulated, refrigerated, etc.

7. Detention

   The process of holding a carrier’s driver and/or truck trailer beyond a certain stated period of “free time”, often resulting in the assessment of detention charges. The delay in clearing goods through customs resulting in storage and other charges. The prevention, by government authority, of a vessel and/or cargo leaving port.

8. Cartage and Drayage

   Cartage is the movement of goods for short distances, usually by truck. It is also referred to the charge to pick up, move and deliver good short distances.
   Drayage is the charge made for hauling freight or carts, drays or trucks.

9. Freight Forwarder

   A person engaged in the business of assembling, collection, consolidating, shipping and distributing less-than-carload or less-than-truckload freight. Additionally, a person acting as agent in the trans-shipping of freight to or from foreign countries and the clearing of freight through customs. Often including full preparation of documents, arranging for shipping, warehousing, delivery and export clearance.

10. Hazmat

    Short for “hazardous materials”, which essentially is any material that could cause potential harm to anything or anyone it comes into contact with. Special endorsements are needed from all parties involved to legally transport hazardous materials.

11. Incoterms

    Short for International Commercial Terms, which are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC). Incoterm define basic shipping terms.

12. Intermodal

    Cargo that is shipped using multiple forms of transportation, such as rail transport and cargo trucks.

13. Lane

    A regular route of transportation taken most often by commercial transporters.

14. LTL (Less Than Truckload)

    A shipment weighing less than the weight required for the application of the truckload rate. These smaller shipments are often combined to create full truckloads.

15. Lift gate

    A mechanism on the back of cargo trucks that allows the driver to load and unload goods more easily. A lift gate is usually required for shipments picked up or delivered to a destination with no shipping dock.

16. Parcel Service Failure

    When you order an item from a retailer, you’re effectively creating a contract between the two of you, even if it’s not written down. If your parcel is late you may opt to contact the courier first, even though it’s the retailer you will need to deal with in order to get compensation. Alternatively, there is a parcel failure refund service, which identifies late or lost deliveries and guarantees your shipment will arrive or be refunded to you no matter what happens.

17. Reefer

    A temperature controlled container that keeps cargo such as food at the proper temperature throughout the transportation process.

18. Shipper’s Agent

    A shipper’s agent is not a carrier, freight forwarder or broker. Shipper’s agents generally arrange for truckload or container load shipment transportation. Shipper’s agents commonly provide services related to warehousing or loading and unloading.

19. Tariff

    A Tariff is a document setting forth applicable rules, rates and charges (often in the form of additional taxation) to move goods. A tariff sets forth a contract for the shipper, the consignee, and the carrier

20. Tender

    A fixed price offered to move cargo.

21. Third-Party Logistics (3PL)

    A term used when distribution services are outsourced through a third-party. Brimich Logistics may be considered a third-party global logistics company.

22. Transportation Management System

    Often abbreviated to TMS, this is specific software that allows freight forwarders to easily analyze and automate transportation operations. It’s especially beneficial for companies handling large amounts of commercial cargo.

23. Truckload (TL)

    Large-volume shipment from a single customer that weighs more than 10,000 pounds or takes up a complete trailer space so no other shipment can be loaded.

The Benefits of Working With a Freight Broker

For a small business, a freight broker can eliminate a lot of the anxiety surrounding freight shipping.  Therefor it’s helpful to have a good handle on basic terminology.

Speaking the same language will ensure clear communication and hopefully as mentioned, prevent misunderstandings.

If you’re a small business producing goods of any size, “Less Than Truckload” (LTL) and “Full Truckload” (TL or FTL) are shipping terms you should become very familiar with.

The benefits of Less Than Truckload (LTL)

Less than truckload, or LTL, is ideal for companies who have smaller shipping needs. Generally, LTL loads will end up being between 100 pounds or 45 kilos (the limit for most parcel carriers) and 10,000 pounds or 4,500 kilos per load – when a full truckload is more appropriate.

For efficiency, the shipping company will combine or consolidate shipments from various businesses to fill a single trailer. In practice several LTL shipments are often combined into one truck to fill it as close to capacity as possible.

As the space is allotted, this means you only pay your fraction of the cost of the truckload. As a simple example, if your shipment fills one-quarter of the truck by volume, then that’s all you pay for. This of course ignores weight considerations.

There’s also the added flexibility small and midsize companies can benefit from with LTL shipping.

Depending need, daily, weekly or monthly orders can be scaled up or down. Regardless of frequency, goods should be well-packaged and consolidated as they will likely be handled more than once along their LTL transportation journey.

The Benefits of Full Truckload (FTL or TL)

Truckload shipping, or full truckload, is best for businesses that have high volume shipping needs, or require expedited delivery. This method is faster and more direct with no need for multiple stops.

TL means that all of your products are delivered together so you have the advantage in knowing that there is little chance of delay or damage. LTL freight transport by comparison requires more destination stops and pick-up locations.

When a large amount of goods are being shipped, TL shipping is definitely the more economic method.

Regardless of the method, a good reliable logistics partner will be familiar with the intricacies of moving, and being accountable for your goods.

Making the Most of Your Options: LTL vs FTL

One standard measure of footprint is by pallet. If you’re shipping more than 12 pallets at a time, then the full truckload option would be best for you.

Or if your product is fragile and it’s imperative you avoid excessive loading and unloading, the full truckload option is again the best for you as these products are the only items within that truck.

If you have hard deadlines or time-sensitive delivery dates, you absolutely want the full truckload option.

With anything less than 12 pallets you’ll experience better cost savings using the LTL method. These smaller load sizes and / or broader delivery times are also a good fit for LTL.

Once again, as a manufacturer your products must be packaged in such a way as to deal with the rigours of shipping and handling in general.

How to Work with a 3PL for LTL and TL Freight Shipments

Knowing the subtleties of freight management that fits your business best is what a good 3PL company is all about.

They’ll take the edge off of the complications of LTL and LT transport for you. They’ll understand time-sensitive needs, special requirements, and provide competitive rates.

Because the transportation is very competitive, it is possible to find all of the above combined with top-notch service – which is definitely to your advantage.

LTL and TL Expertise

Freight shipping is often a core competency of 3PL providers, including both LTL and FTL. Their experience helps them evaluate your shipping needs, choose the most efficient option, and anticipate potential risks or higher costs.

Cost Savings

A smaller transport company may only ship a few pallets a month to a smaller region, whereas a 3PL will regularly ship significantly higher volumes across the whole country or internationally.

This gives a 3PL company leverage when negotiating cost-effective rates with freight carriers which in turn, can be passed on to you.

Visibility and Transparency

Knowing what’s happening with your freight at any given point in time is crucial for any business.

A good 3PL provider will have a team of professionals providing the highest level of service, including detailed updates from your shipment’s inception to when it  reaches its endpoint.

Contact Brimich For All Your LTL and FTL Needs

Both LTL and FTL shipping methods can be used in a variety of situations. These include local and regional shipping, or product transportation between plants and warehouses.

Working with a trusted logistics partner like Brimich offers the advantage of multi-mode transportation services using an extensive network of affiliated asset-based providers.

Contact Brimich for a quote, availability and further information.

What is the difference between a 3pl and a 4pl provider?

The main difference between 3PL and 4PL is that 4PL handles nearly the entirety of a supply chain, while 3PL is primarily concerned with handling just the logistical process.

Third-party Logistics: 3PL

A third-party logistics company handles physical distribution and logistics. 3PL companies do this by using their own resources, such as a network of freight transportation providers and warehouse facilities to help clients ship or store their products to meet their needs.

3PL companies leverage their experience and partner contacts o ensure all steps are taken to keep the client’s products safe.

Still, a third-party logistics company can have many variations depending on their specialties. According to the Council of Supply Chain Management Professionals (CSCMP), the legal definition is: “A person who solely receives holds, or otherwise transports a consumer product in the ordinary course of business but who does not take title to the product.”

In plain language this means that a 3PL company holds or transports a a client’s product (i.e., a product that they do not own).

What Does a 3PL Company Specialize In?

3PL companies tend to specialize in:

• Warehousing
• Distribution
• Order fulfillment
• Cross-docking
• Inbound and outbound freight
• Customs
• Freight consolidation
• Inventory management

The above third-party logistics services are scaled and customized to fit a client’s specific requirements.

One client may not require warehousing, whereas another will, yet another may require temperature controlled warehousing. This versatility and ability to accommodate makes 3PL companies adept at providing different services to different clients.

Fourth-party Logistics: 4PL

The full nature of 4PL is still heavily debated. There are other definitions out there, but here’s one that’s more popular:

In short, a 4PL company doesn’t stop at outsourcing logistics services, but also outsources the management of those same services

4PL companies will generally have no way of transportation or warehousing, but rather use the transportation and warehousing services of a 3PL company. There are of course exceptions to this.

What Does a 4PL Company Provide?

A fourth-party provider will tend to cover (generally through 3PL partners):

• Procurement
• Storage
• Distribution

If we reference the CSCMP again, a 4PL company differs from a 3PL company in the following ways:

1. 4PL organization is often a separate entity established as a joint venture or long-term contract between a primary client and one or more partners;
2. 4PL organization acts as a single interface between the client and multiple logistics service providers;
3. All aspects (ideally) of the client’s supply chain are managed by the 4PL organization; and,
4. It is possible for a major third-party logistics provider to form a 4PL organization within its existing structure.

The CSCMP definition is a “supply chain integrator that assembles and manages the resources, capabilities, and technology of its own organization with those of complementary service providers to deliver a comprehensive supply chain solution”.

This means is that a 4PL company essentially deals with the planning, management, designing, and optimization of a supply chain from start to end, and does so by outsourcing required services to trusted partners.

3PL vs 4PL: Which Logistics Service Is Right for You?

Overall, third-party logistics and fourth-party logistics inherently operate the same way, but consist of different moving parts.

Because a 3PL company arranges freight carriers and warehousing by dealing directly with the service providers, the fewer parts in play may work perfect for your small business.

A 4PL company, on the other hand, may be a good fit if your business is more expansive. A 4PL provider will arrange the same services and employ companies such as 3PL companies, who leverage their warehousing and vast network of carriers.

In the end, the goal of both 4PL and 3PL companies is to provide a client with a comprehensive, end-to-end supply chain.

Unless you have a crystal ball, many small businesses learn the hard way through trial and error, including shipping and logistics.

But with a reasonable amount of research, you can reduce stress, control costs, and risks that could potentially harm your business and its reputation.

For instance, suppose there’s a mistake made somewhere along the supply chain, and a client receives the product much later than anticipated. Or maybe there was a miscalculation in regards to the cost, which then cuts your profit margins. Plus damage caused along the way in transportation is a very real possibility. This is where insurance coverage is a very good thing to have in place.

Small business logistics involving products requires careful consideration, and planning for contingencies. Having said that, let’s move on to exploring some helpful suggestions:

Consider a 3pl Service – Third Party Logistics

If you have the budget for it, you can hire an industry-specific third-party (3pl) logistics provider.

Depending on your specific products and market, you can find a company that specializes in the logistics of your particular category.

Being able to outsource, for the most part, the entirety of your logistical needs frees up your time to allow you to focus more on iterating and growing your business.

Depending on the size and nature of your business, 3pl may be your best and most simple option if the cost allows for saved time, convenience, and accelerated growth.

Partner up with someone

Networking with other small businesses who may be in the same situation and face some of the same budget restrictions has upsides.

By sharing costs and information gained through experience, you have a better chance of getting where you need to be.

Most logistics companies will set their prices based on volume. If your logistical needs are similar, teaming up with a partner could provide a more cost-effective solution.

This option does have its hurdles though and requires careful consideration.

You’ll need to take into account not only the specific details of the logistics company, but also the specific needs of your partner to make sure it’s an equitable arrangement for everyone.

Consider a small business logistics service through a major provider

Many major shipping and transportation providers offer services specifically designed to cater to small business logistical needs.

Compared to a specialized logistics provider, companies such as UPS, FedEx, and DSL have systems in place capable of reducing costs.

While their reputations for reliability and efficiencies may be attractive, it also comes at the cost of dealing with a smaller company that may be more nimble in addressing issues should problems come up.

Industry-specific providers

If your business has certain critical needs or is in a unique category, you may find it advantageous to hire a specialized logistics provider.

Not to be confused entirely with the 3pl option, an industry-specific provider would know the specific details required on how to handle and care for your products being delivered.

For instance, consider businesses that produce and sell wine or perishable food products. It may be more beneficial for these types of particular companies to hire a logistics company that knows how to transport and care for temperature sensitive products.

With certain small business logistics, the nature of the business and its particular needs may mean spending more money on an industry-specific provider.

On the other hand, this type of expense should be baked into operating costs. Consider the risk of hiring a provider that does not specialize in your particular market – which could be far more costly when products are damaged or mishandled.

In Summary

It’s important to weigh the pros and cons when considering a plan for your small business’ logistical needs.

Some providers may charge a higher price for their services, but that may offset the costs in a lower risk of mishandling or damage. It’s also important to consider the history and reliability of a company being considered.

There are a lot of factors in play, and its important to consider them all and understand your options in order to find the most efficient and cost-effective service for your business.

Despite unprecedented recent challenges, supply chain analysts say many 3PLs qualify as essential critical businesses. Without them, the businesses that rely on their distribution systems simply can’t survive.

Selecting the right logistics partner in a crisis has never been more important. You may even need to consider multiple 3PL partners to mitigate risk if your products are diversified.

The Basics

3PLs receive new inventory from manufacturers before shipping it to consumers. They can also handle retail distribution and returns. Ultimately, they deliver your orders with an out-of-box experience.

When should you enlist a 3PL?

With social distancing forcing some 3PL employees to work remotely, a 3PL partner that is efficient with automation and paperless warehousing is a good bet. Looking for those that began their digital transformations before the pandemic may be in a better positioned to service businesses and deliver your preferred customer experience.

Waiting until you’re overwhelmed by order growth isn’t a smart move. By breaking fulfillment promises you make to customers, you damage your brand. It also prevents you from being wholly focused on growing your business.

These three key questions will help you determine whether you need a 3PL:

Are you fulfilling a significant number of orders per day?

Calculate the costs of a potential partnership with a 3PL to stay fluid. Likewise, estimate the growth potential—opportunities you’re not currently able to pursue–by outsourcing fulfillment.

Are you running out of storage space for inventory?

Sometimes brands forget to include holding costs in their fulfillment expense calculations. Compare your current storage expenses with estimates from 3PLs. See if bundling costs with outsourced fulfillment is a better value.

Can your business’s infrastructure cope with the demand?

If you’re expecting a sustained spike in order volume—not just flash sales or promotions—estimate the costs and overhead necessary to meet demand. Compare with the costs of outsourcing fulfillment.

Types of Top Level 3PL Providers

The size and specialization of your business matters. Some 3PLs may only serve certain segments of the supply chain, or specialize in one or two areas. Larger established firms offer end-to-end execution, integrate seamlessly, but full service comes at a price.

Full-Service 3PL Providers

COVID-19 has made clear the importance of having real-time inventory visibility. The pandemic has also put efficiency in greater focus. Not only is knowing your stock levels a critical metric, so is operational efficiency and logistical considerations – does shipping inventory from the location closest to the customer actually show a cut in shipping costs?

Full service 3PLs offer:

• Inventory intelligence
• Brand the fulfillment experience
• Easy integration
• Same-day fulfillment

Warehouse and Distribution Type 3PLs

Warehouses that distribute are the most common type of 3PL – storing, shipping, and handling returns. Innovative warehouses can help you offer an Amazon Prime-like type of shipping in as little as two days. If you’re expanding aggressively, international warehouses can help build a global supply chain.

The best warehouses act as trusted advisors to their customers by offering product fulfillment workflow best practices. Especially with COVID-19’s impact on order volume.

When considering a warehouse solution, evaluate the following criteria:

• Warehouse network
• Pricing
• Shipping carrier rates
• Insurance
• Daily cutoff time for fulfilling orders
• Delivery service levels
• Management tools

Transportation Based 3PLs

A pandemic will spotlight how crucial it is to have a single point from which you can track orders worldwide, in real time, and automate delivery notifications.

Transportation-based 3PLs move goods between locations in-between locations. As an example, they might transport inventory between the factory and your warehouse, or you and your retail buyer.

Consider the following factors when choosing a transportation provider:

• Origin location
• Destination location
• Timeframes
• Shipping methods
• Service levels
• Pricing and discounts

Specialized May Be Better

Along with these top level types of 3pl services, there are a number that specialize on specific services, and combine select services such as distribution, or shipping and receiving among others.

Depending on the size of your business and unique needs, a specialized provider may be your best choice.

There’s no doubt the third party logistics (3PL) landscape has altered significantly within the last decade. As mobile technologies and ‘smart’ working practices continue to develop, further growth, and potential benefits, are inevitable.

With expected growth in third party logistics markets forecast to be as high as 15 percent, the demand to service in these markets in 2020 is sure to generate fierce competition.

A greater consumer demand for 24/7 services and reduced costs means efficiency and accuracy are going to be a crucial points for successful 3PL providers. Businesses will remain focused on the goal to drive down their own operational and labor costs by outsourcing logistics to 3PL service providers. But success will also depend on their willingness to adopt new technologies.

The following are the most influential changes predicted within the next 7 years. There’s a very good likelihood they will become common among most third party logistics companies.

1. Extended Collaboration Between Shippers and 3PL Companies

Third party logistics companies will rely heavily on technology to collaborate, connect, and interact with customers. Electronic data exchange services are going to be critical, not just for the performance and integrity of the info, but also to accommodate the speed of change.

Vendor managed inventory, where the supply chain vendor monitors the buyers inventory and makes periodic resupply decisions, are going to be commonplace and allow smaller 3PL services to operate via web-based portals and user-friendly access systems.

2. Mobile Application Expansion

Dependency on paper records in warehouses is becoming a continually diminishing memory. Everything will be focused around agility through mobility. As we’re already seeing, mobile devices are becoming more commonplace and will eventually be used by all third party logistics firms.

With the potential for RFID enabled devices to carry data information with them, product and providence for identification and traceability become easier. Customers are going to be ready to order and process freight shipments anytime, anywhere, 24/7.

https://www.youtube.com/watch?v=nMFDEtAd-io

3. Dedicated Smart Technology from Third Party Logistics

Third party logistics providers will see the advantages of investing in smarter IT and software systems which may deliver a quick and solid ROI.

By decreasing inefficiencies, software like Transportation Management Systems (TMS), will drive down costs and save time. As voice recognition becomes more accurate, voice prompts and commands are going to be standard within the supply chain process, like stock inquiries or freight tracking.

Improved speech recognition software also will allow workers to speak directly with their Warehouse Management System (WMS) to enhance stock records, speed up order turnarounds and shorten staff training periods.

4. Leveraging Massive Data and Knowledge Sharing

Cloud-based technologies are going to be employed by the bulk of third party logistics companies as they embrace the new age of ‘Big Data’.

3PLs will recognize the necessity to permit client access to their own systems to enhance efficiency in areas linked to seasonal trends, and therefore accommodate the demands of flexible operations. Shared data will also allow the traceability of an item at any given point within the supply chain.

5. A More Globalized Economy

In 2020, an increasingly globalized economy is going to be more integrated. 3PL providers are going to be expected to figure on a bigger scale with a distinctly international outlook.

Distribution will also expand globally with more opportunities opening up. This will create a more complex supply chain, varied costs, increased integration processes, and thus a rise in expert third party logistics.

The 3PL industry will face many challenges within the future, but by 2020 the world will also have grown dramatically, largely due to the expansion of emerging global markets.

As we’ve seen with the meteoric rise of technology itself, change can happen swiftly. We will see more and more mergers & acquisitions over the approaching 7 years within the third party logistics world.

With such a competitive landscape, we will also see more standardization in the expectations of shippers and supply chain managers. The foundational businesses, those that actually start the wheels turning, will experience the end benefits.

At Brimich Logistics, we strive to stay on the most productive cutting edge of 3PL technologies in order to serve you better.

Storage is an integral part of food supply chains between the producer, processor, retailer, and consumer. Warehouses that store food products must meet extensive requirements and undergo continuous evaluation. If a facility doesn’t meet regulatory standards, they must discontinue operation.

There are several types of food-grade warehouses. Dry storage, frozen food storage, and refrigerated storage are the most common types and the most likely options for food warehousing.

Dry storage warehouses are suitable for food products that do not require temperature regulation. These products include canned food, rice, and grain. Frozen food storage warehouses have facilities to maintain a constant freezing temperature to handle perishable food products.

A refrigerated warehouse has all the necessary equipment to store food products below a specific temperature without freezing it.

Health and Sanitation Issues

Health and sanitation are crucial in food storage. If a warehouse doesn’t manage cleanliness carefully, it can result in food contamination by bacterial growth, fungi, rodents, or other pests.

Indications that a warehouse’s sanitation is compromised include:

• Rodent tracks or burrows in- or around the warehouse
• Standing water, weeds, or trash in the vicinity of the warehouse
• Leaks in the warehouse’s roof, foundation, or walls
• Holes in the warehouse windows
• Signs of damage to the warehouse building’s exterior

Cross Contamination

In addition to the issues listed above, the odour from other products in the warehouse can result in cross-contamination. Food product packaging can absorb odours from other products in the warehouse. When storing a new food item, the warehouse should consider the other products in the warehouse.

Customers who are selecting their 3PL should also consider the products that a warehouse stores as many facilities don’t pay attention to products that can result in cross-contamination.

Four Principles for Food Grade Storage

Pest Control

Substances for pest control at strategic locations around food grade storage perimeter eliminates the presence of rodents, insects, birds, and other animals. A warehouse should inspect the perimeter at least once every quarter to check for infestations.

Master Sanitation Schedule

The warehouse should schedule and document regular cleaning sessions to ensure that the food-grade facility is sterile from the roof to the floor. Records of cleaning sessions should be readily available. The warehouse should either appoint a skilled cleaning staff or hire an industrial sanitation service provider.

Personal Hygiene and Training Program

All the employees who work in a food-grade warehouse should regularly wash their hands at company-supplied stations with soap and hygienic hand-drying devices. Employees should also undergo training in personal hygiene, food safety, incident and crisis management, and quality awareness. The warehouse must keep a record of all employee training sessions.

Lot Traceability

The warehouse’s food-grade logistics operation unit traces lot and date codes on the products to ensure that the warehouse rotates them on a first-in, first-out (FIFO) basis.

Conclusion

The four principles above are central to the operations of a food-grade warehouse. Contact Brimich Logistics to learn more about our 3PL warehousing solutions and value-added services.