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!

Spurred by changing customer behaviour, shipping consolidation services allow companies to ship more frequently in smaller batches and at cost effective rates. If this sounds appealing, it should, and here’s why it could be the right choice for you.

Fulfilment demands speed, and when your products don’t add up to a full trailer or container, you need a shipping solution that fills the need without eating into your bottom line. This is where consolidated shipping services make the most sense and keep your deliveries moving forward.

What are Shipping Consolidation Services?

Shipping consolidation services are processes that combine multiple orders together into single consigned shipments. This allows smaller companies to take advantage of bulk transportation rates, save time and conserve resources.

Based on the LTL (Less Than Truckload) and LCL (Less Than Container Load) shipping models, shipping consolidation services use fewer vehicles to transport freight. This is ideal for businesses that make small, frequent shipments as there is less products handling which reduces the risk of damage and claims.

An Example of Shipping Consolidation

Order consolidation can be a combination of a single company’s products or multiple shipper’s products. For example, let’s assume a shipper located in Etobicoke Ontario has multiple shipments of sports apparel going to a variety of retailers in Edmonton Alberta. Before sending it to their regional distribution centre, they usually wait until a full truckload accumulates. Once the load is full, it goes directly to Edmonton for delivery.

Now let’s say a shipper doesn’t have enough packages to fill the entire truckload but needs to ship what they have to meet delivery requirements. If we consolidate the shipment with another local shipper’s products going in the same direction that will fill the container, we have a win-win situation through combined efficiency.

As long as the various shipments fall within compatible freight classes, and fill an entire trailer from floor to ceiling, carriers help shippers create a more cost-effective streamlined supply chain. Rather than “shipping air” with multiple half-filled trailers, bundling orders presents multiple benefits to both shippers and consumers.

Types of Shipping Consolidation

Retailers in particular are always seeking innovative, cost-efficient ways to ship their products. In response, due primarily to escalating adoption of e-commerce, the methods surrounding consolidation of freight and unification of orders are gaining more attention due to evolving buying patterns of both consumers and suppliers who each expect speedy delivery times.

Freight Consolidation

Larger cargo shipments of dry or temperature controlled goods require careful logistics planning to combine less than truckload (LTL) and less than container load (LCL) freight into full shipments. An experienced 3PL provider will utilize contacts throughout their networks to ensure on time in full (OTIF) delivery via waterway, rail, air or truck.

Automotive Consolidation

As one of the major North American economic drivers, automotive consolidation requires next-level supply chain expertise to fulfil deliveries in the transportation sector. With a heavy reliance on just-in-time manufacturing, combining multiple orders from automotive suppliers into single shipments is key to cost-effective operations for automotive manufacturing plants, distribution centres and retail locations.

Retail Consolidation

In retail, consolidation warehousing plays a primary role in being able to hold product under ideal conditions. Through strategically located warehouses and distribution centres, retail-direct and pre-paid supplier programs help combine orders from multiple suppliers into a single shipment deliveries for retailers.

Forwarding and Distribution

If you need to ensure the quality of your goods due to restrictive shelf-life limitations, transportation time becomes that much more critical. In such cases, storage and staging of products is kept as close as possible to final destinations, picked and packed to order so goods arrive on time.

Cross-Border Consolidation Shipping & Logistics

One of the ways shipping consolidation helps customers reduce their freight expense is through consolidated cross-border programs. For instance, a partial or a full load in the US is delivered to courier and LTL networks in Canada.

Instead of paying for multiple international truckloads or LTL freight & courier shipments, customers enjoy reduced costs via Canadian domestic LTL, line-haul and courier transportation. This reduces multiple customs entries to one consolidated Canadian customs entry which can significantly save on annual customs brokerage fees.

6 Benefits of Using Shipping Consolidation

The benefits of consolidated shipping can be significant. Industry experts are providing in-depth and creative strategies customized to both shippers and their customers’ specific needs.

When done correctly, consolidated freight services provide a winning balance for retailers, courier companies, and end customers. Depending on schedule, volume and hold time, players involved in the order fulfillment process benefit in the following ways:

1. Reduced Shipping Costs

Consolidated shipping allows you to reduce the amount of packaging materials and use fewer boxes. This reduces both the dimensional weight and the actual weight of your shipments, plus it reduces wasted trailer space. Order consolidation also helps to reduce handling fees per package, further reducing shipping costs.

2. Increased Supply Chain Consistency

Through monitoring shipping patterns such as common pool points and recurring orders, you can increase delivery optimization. Knowing which orders are coming in each day, as well as which ones are ready for pick up allows you to implement predictive actions. Along with the aid of transparent order tracking and tracing throughout the supply chain, you’re better able to meet each customer’s deadline and run a smoother production schedule.

3. Less Risk of Damage

When a truckload or container is full, there’s less likelihood of packages shifting dangerously and incurring damage due to excess unused space. When shipments are consolidated, each item will also require less handling which again lowers the risk of damage.

4. Improved Consumer Experience

When orders are consolidated, retailers and suppliers get to take advantage of optimized supply chain efficiencies. The net effect results in customers receiving their orders more quickly, safely and of course at reduced cost.

5. Enhanced Quality Control

Consolidated shipping services enable your operations to detect order or product problems before they leave the warehouse by putting quality control measures in place before your goods are sent out.

6. Added Sustainability and Emissions Controls

Consolidated freight shipping means you can use less packaging materials: boxes, foam peanuts, tape and such, thus helping to reduce waste and its environmental impact. Additionally, better cube utilization on trucks results in more units shipped in fewer cartons. Vehicles require less fuel to ship more products thereby reducing carbon emissions in the environment.

With initiatives such as the SmartWay program, logistics providers are helping reduce the number of diesel emissions being released into the atmosphere.

Is Order Consolidation the Right Strategy for Your Business?

Consolidated shipping can help you improve associated costs on carrier rates, dimensional pricing rules, handling fees, or other shipping expenses such as customs fees and duties.

As an experienced logistics partner for multiple national brand names, Brimich Logistics and Packaging can help streamline your whole shipping process through multiple tools and touch points. From providing automatically generated shipping labels and customs paperwork, to automated shipping rules, along with branded tracking and packing slips to help with your order consolidation needs.

With the right combination of tools, consolidated shipping services help build customer confidence by offering a more positive shopping experience with lower shipping costs.

Does your business need organized warehousing, or is distribution the current challenge? Let’s have a look at which elements of warehousing and distribution services represent the best combination for your logistics needs.

What is Meant by Warehousing and Distribution?

In a nutshell, warehousing focuses on product storage, whereas distribution refers more the service of getting products to customers.

The reality is, warehousing, particularly through 3PL companies and distribution services share a multitude of similar internal operations and capabilities, yet are distinctly different in terms of their core functions within the supply chain.

Warehousing and distribution services apply to virtually every aspect of moving products throughout the supply chain. Just as there are many different types of businesses, there are just as many types of logistical solutions for moving your products.

How Do Warehousing and Distribution Services Differ?

While each service is capable of moving inventory and storing product, how this process works is unique to each service.

For example, compared to simple distribution, warehousing services concentrate more on storing cargo and inventory for relatively longer periods. Distribution on the other hand focuses more on the predictable and timely flow of products as they move through the supply chain.

As a service, warehousing is part of both types of these logistical functions, but the individual design will favour how inventory is managed. Will products be stockpiled for weeks or months – such as industrial and raw materials? Or does the inventory need to go from manufacturer to end user within days as quickly and efficiently as possible with minimal warehousing – as within the fresh food industry.

Typical 3PL Warehouse Services

Once your business grows to a certain level, outsourcing services in general is part of a solid plan to strategically scale the business and manage growth.

Typical 3PL warehouse functions and value-added services include:

• Long and Short Term Storage
• Product-Specific Environments
• Co-packing & Assembly
• Rework/Sorting
• Reverse Logistics
• Quality Checks
• Container De-stuffing
• Custom Packing
• Product Labelling

Different Types of Warehouses

For every segment of industry concerned with physical production, there is a type of warehouse tailored to the storage of those products.

For instance, your business may revolve around the frozen food industry – which would require sub-zero temperature control at every step along your supply chain. Or you may be in the pharmaceuticals sector which again, requires climate control and warehousing that’s certified safe from contamination.

In terms of the types of products handled and environmental controls, warehousing facilities are typically comprised of:

• Ambient Temperature Warehousing
• Temperature Controlled Warehousing
• Cold Storage Spaces
• Freezer Warehousing Spaces
• Industrial and Light-industrial Warehousing.

Types of warehouses are more than just storage facilities for inventory. They’re also categorized by their function within the supply chain. A few examples would include:

• Distribution Centres
• Fulfillment Centres
• Private and Public Warehouses
• Contract Warehouses
• Bonded Warehouses
• Cross-Docking Warehouses
• Cooperative Warehouses
• Hazmat Warehouses
• Reverse Logistics Warehouses
• Government Warehouses

Services Handled by Distribution

While 3PL warehouses are used for storing products and offer additional product handling services, distribution centres also store products as well as other functions such as cross-docking, product mixing, order fulfilment, packaging and more.

Distribution as a service is an essential part of any business large or small. Additionally, distribution’s importance has grown considerably with the trend towards outsourcing in a global economy.

Services offered by distribution providers would include:

• Short Term Storage
• Direct and Indirect Channelling
• Order Fulfilment
• Product Consolidation
• Product De-consolidation
• Cargo Sorting
• Assembly
• Packaging
• Light Manufacturing

Different Types of Distribution

At the top level, distribution systems are defined by the channels they serve. Distribution channels can be short or long and fall into two main categories: direct and indirect, along with various hybridizations of the two.

Let’s look at a couple of examples:

• Direct distribution: In this channel, the manufacturer or producer directly to the consumer. Examples would be local bakeries, breweries, niche operations or small printing businesses. With the advent of e-commerce and it’s ability to serve markets at fractional costs, these types of businesses have flourished over the last few years.
• Indirect Distribution: This channel uses multiple partners or intermediaries to distribute goods and services from seller to customer. Many global consumer companies will not sell direct to public. For example, a large brand-name laundry detergent company requires representation to help get their products to market.

Why Use Warehousing and Distribution Services?

Outsourcing parts of the business process has become an effective way for firms to cut costs. According to a  Deloitte report, 59% of businesses surveyed said the reason behind their choice to outsource a business process was to save money.

“In third-party logistics, a company outsources all or much of its operations related to the distribution and logistics to a specialized company. According to a global survey among logistics and supply chain executives which was carried out in July 2021, 63.5 percent of shippers were outsourcing their warehousing activities to 3PL providers.”

Source: Martin Placek – Statista.com Sep 28, 2022

Without good management, warehousing and distribution processes can take a toll on businesses in terms of cost. Instead of this aspect weighing down your business, a smart solution is to outsource and streamline these processes by letting the experts handle them.

How Do Outsourced Warehousing and Distribution Services Help Your Business?

By outsourcing warehousing and fulfillment services, businesses adopt a forward-thinking approach that will benefit them in numerous different ways. As a growing company, the pressures of storing and delivering your own products can quickly become expensive and time-consuming. So why not outsource the process to a trusted third party? Here are some reasons you should consider:

• Expertise: Fulfillment and distribution service providers, such as The Brimich Group, give businesses the option of letting experts manage their supply chain. Brimich has a team of experts that handle managed warehouse services and logistics tasks on a daily basis to take care of your organization’s needs. This way you have better service, quicker turn-around, and increased fulfillment rates.
• Technology: To keep up with the competition, businesses must buy and deploy management software to have complete control of the supply chain and logistics. When you partner up with a professional team specializing in inventory and distribution services provider, they’ll have the right technology in place. They will also give you access to data specific to your business so you know exactly where and what is being shipped at any given time.
• Cost-effective: From human resources, software, machinery, to other types of equipment, keeping a warehouse maintained and in order is costly. It’s a significant investment that may not be possible for most small and even medium-sized businesses. With a third-party, you can offset warehousing and logistical distribution services to reduce costs.

Warehousing and distribution, when maximized for effectiveness, also helps improve OTIF shipment ratios. In terms of inventory storage, a well-managed warehousing system also provides significant advantages in the larger sense such as:

• Improved Product Processing: Warehouses often employ capabilities designed to efficiently store, pack and move goods.
• Organized Inventory Management: Centralizing your inventory with the help of WMS equipped warehousing provides a snapshot of where and how much inventory is in the system at any given time.
• Customer Service Agility: Being able to respond to client demands and expectations faster means better overall relationships – especially when errors happen.
• Reduced Risk: Organized warehousing helps buffer rapid price changes in the market. With proper management you can stockpile products in the right quantities and always have a steady supply.

Questions to Ask When Picking a Service Provider

If you’re not familiar with the ins-and-outs that make up a good warehousing or distribution service provider, here are a few points to consider when making your decision:

1. How many years have they been in business?
2. What kind of industry expertise do they have?
3. What storage capacities do they have?
4. What types of warehouses do they operate?
5. What technology do they employ, and will they give you access to keep track of your inventory and deliveries?
6. Does it operate 24/7?
7. What safety measures are used and is the storage safe?
8. Where are the warehouses located? Are they distributed warehouses or hub and spoke?
9. Do they meet all your storage requirements?
10. What kind of leasing terms do they have?

Whether your business is facing issues with warehousing and distribution or you’re just looking to cut costs, outsourcing these services to a reliable provider is a great solution.

With operations in both the USA and Canada, Brimich Logistics and Packaging is proud to serve local clients in Southern Ontario including Brantford, Etobicoke and the GTA. For more info, contact the Brimich team today!

In a logistics industry that’s constantly evolving, how do pick and pack services remain an integral part of serving both businesses and end-user customers?

Small and medium-sized businesses all aim to be successful, but with new success and technologies come new problems. How do you ensure that your product is packaged accurately for delivery?

As we know, the fulfilment process is very sensitive, and the smallest mistake in packing or labeling can result in an item not being included, breaking or not reaching its proper destination. This is where modernized pick and pack services come to your aid.

The Obvious Question: What is a Pick and Pack Service?

The pick and pack service is simple in principle – products are picked then appropriately packed, yet it is a crucial step in the order fulfilment process. The first steep is collecting (picking) all products from their respective warehouse locations for a customer’s order. The next step is properly packing these items for shipping to the customer.

The underlying critical factors that influence the success of the process are speed, skill and accuracy. Inefficiency in any one of these areas will degrade customer experience down the line. For instance, if an order arrives damaged, late, or contains the wrong items, your customers are less willing to do business with or recommend you again.

In other words, through pick, pack and ship services, sold items are picked, packed safely and shipped with the correct shipping label and invoice.

The Pick and Pack Fulfilment Service at Work

The moment a customers’ order enters the system the picking process begins. Depending on the type of order, products are picked by the piece, in batches or in waves. With the help of an advanced warehouse management system (WMS), inventory counts are optimized resulting in efficient picking and faster product flows between storage and dispatch.

While modern technology certainly helps mitigate the chance of human error, manual quality control checks for quantity and quality are still used top monitor overall fulfilment accuracy.

Types of Picking

The picking process itself can be broken down into four main types:

• Piece or discrete picking –  As an or comes in, a picker handpicks each product to assemble a complete order.
• Batch or cluster picking – Similar to piece picking with exception that multiple orders are done all at once instead of one at a time.
• Zone picking – Items are often warehoused as similar types or in zones. Employees within these specific areas pick one order at a time within that area.
• Wave picking – A combination of both batch and zone picking. Employees stay within a given zone and pick more than one order at a time.

Specifics of Packing

Efficient packing starts with placing the ordered items into a suitably sized box. The box is then lined with packing materials to ensure the products reach their final destination in one piece.

Furthermore, packing should keep an order within the smallest number of boxes on the whole and make use of the most suitable type of packing material(s) for each product.

Maximizing these packing specifics results in reduced shipping costs, order accuracy, and a more cost-effective shipping process.

An ideal warehouse will be able to turn around orders quickly with a high rate of accuracy. Using better levels of quality control, the shipping process runs smoother and helps foster a high level customer satisfaction.

Pick And Pack Features And Benefits

Using a pick and pack service offloads an entire system from your business which in turn, allows you to concentrate on growth and further opportunities.

In other words, trusting a picking and packing fulfilment partner ensures better levels of customer care without the distractions of maintaining an in-house fulfillment process.

Features of a good picking service include:

• Multiple, strategically placed locations
• Use of a state-of-the-art warehouse management technology
• The ability to manage discrete, batch, cluster, wave and zone order picking capabilities
• Integration with popular ecommerce platforms and shopping carts
• Capability to warehouse, pick and pack a wide range of products
• Customizable srevices to suit individual client needs

Benefits of integrating with a pick and pack service include:

• Cost improvements throughout your supply chain
• Improved order-to-cash cycle time
• Scalability
• Increased supply chain responsiveness and adaptability
• Access to specialized warehouse process technology, equipment, and expertise

There is an Order Fulfillment Opportunity For Every Business

From large B2B operations to small entrepreneurs, a business that involves customer order-fulfillment can leverage the experience of picking and packing services without having to invest in warehouse facilities and equipment.

According to a recent market report, the pick and pack services industry, with the aid of automation, is set to reach over $106 billion by 2029.

Outsourcing these warehousing services to an experienced logistics partner also allows you to scale your inventory up or down as necessary.

Types of businesses that utilize pick and pack:

• Wholesalers and distributors
• Entrepreneurs and Ecommerce merchants
• National retailers that require centralized distribution
• Omnichannel retailers
• B2B and B2C suppliers
• Fast Moving Consumer Goods (FMCG) suppliers and retailers
• Parts and equipment service providers

Pick And Pack Warehouse Services Help Create a Complete Fulfillment Solution

With over 50 years experience in the supply chain industry, Brimich offers picking and packing as an integral part of the industries we serve: food and beverage, agricultural and chemical, retail and wholesale. With our state-of-the-art facilities located in Brantford and Etobicoke, we have the expertise, skills, and the technology to handle your businesses pick and pack strategy.

Whether your business is simple or complex, Brimich Logistics & Packaging offers a complete 3PL service portfolio that fits your needs. All you have to focus on is ensuring that the orders keep coming and your business continues to grow.

What is a Hub and Spoke Distribution?

The term hub and spoke can be used to describe any process that resembles the wheel of a bicycle: a central location (or hub) that provides a fixed point from which delivery paths (or spokes) radiate outward.

In logistics, the hub and spoke system is used to coordinate inventory from a single large distribution centre to multiple delivery locations such as warehouses or fulfilment centres.

How Does a Hub and Spoke Model Work?

As mentioned, the hub and spoke model provides a means of distribution that relies on a central location (the hub) and a number of spokes leading out from that hub.

The main hub is where the goods are stocked, and the spokes represent the various distribution centres that deliver the goods to customers.

Hub and Spoke vs Point-to-Point Distribution Models

Point-to-Point vs Hub and Spoke Distribution Models

Examples of Hub and Spoke Distribution Models

This system is often used in industries like air travel and logistics, as well as retail.

The Arline Industry

In the case of an airport, a passenger might travel from New York to London. Using a classic hub and spoke system, the passenger boards a plane in New York, which flies to the London airport and then lands at Heathrow Airport in London.

The London airport, in this example, is the hub. The spokes would be the routes the plane takes to get to London from New York.

The Logistics Industry

With the help of preferred logistics partners, merchants can control inventory centrally, source products from the least expensive suppliers, and deliver goods to customers from local warehouses.

By aggregating their inventory at a centralized point, shippers can take advantage of more affordable rates. These less than truckload (LTL) shipments can then be combined to fill a single truckload which can then be dispersed throughout the network.

Using this model, small and medium size businesses (SMB’s) can negotiate for better rates often associated with full truckload (FTL) shipments.

The Retail Industry

Due to the efficiency of hub and spoke distribution, large (and some smaller) retailers such as Amazon have adopted the system to help expedite the flow of shipping to consumers.

For instance, to help shorten time in transit (TNT), Amazon has fulfillment centres distributed across the country to facilitate the fast delivery times consumers have grown accustomed to.

This model also helps SMB’s realize the same high efficiency a larger retailer fulfillment network uses across all of their sales channels.

Will Hub and Spoke Distribution Work for Your Business?

Hub and Spoke distribution systems are particularly useful for any industry that relies on the movement of physical goods through a supply chain. These systems are commonly used amongst retailers, wholesalers, and manufacturers in order to make their logistics operations more efficient.

As centralized distribution models, they are particularly useful for retailers that ship goods to customers from multiple locations.

They’re also very beneficial for manufacturers and wholesalers who have long supply chains. For example, a manufacturer in China ships parts to a plant in Thailand, which assembles the parts and ships the finished goods to a distribution centre in the United States, which then distributes the goods to retailers.

Businesses may also consider a hub and spoke fulfillment model for their business if they are already distributing their inventory, but have excessive LTL freight rates eroding their profits.

Here are just a few of the benefits of a Hub and Spoke distribution system:

• Increased capacity to handle peak periods – A hub and spoke system can allow for a quicker, more efficient delivery of inventory during times of peak demand. This enables businesses to avoid costly out-of-stocks and keep their customers happy.
• Centralized inventory control – Having your inventory distributed among several locations increases the risk that customers may not be able to get what they want. A hub and spoke system allows you to keep a close eye on inventory at all locations and respond quickly when there’s a shortage.
• Lower Time In Transit (TNT) – Time in transit significantly affects logistics costs. A hub and spoke distribution model can help lower shipping costs at two key points within the supply chain: receiving inventory from manufacturers and forwarding inventory to fulfillment centres.
• Easily trackable deliveries – With a hub and spoke system, each delivery is tracked. This makes it easy to spot where potential issues may be occurring and address them before they become serious.
• Better use of resources – Hub and spoke distribution systems help you make the most of your resources. For example, if you’re experiencing high demand in one area and low demand in another, you can redirect resources so they’re going to the places where they’re needed most.
• Lower costs – Hub and spoke systems can help you lower costs by using less warehouse space, renting less expensive real estate, and using fewer resources.

Disadvantages

While hub and spoke systems are very beneficial for many businesses, they do come with some drawbacks:

• Higher inventory costs – The biggest disadvantage of a hub and spoke system is that inventory is often more expensive because of the need to rotate inventory among several locations.
• Fragmented customer service – Negatively affected customer service. Customers in one area may receive their goods more quickly than customers in other areas, for example.
• Inability to promote certain products – If you have certain products that are only available in one location, customers in the other locations won’t be able to get them.
• Slower response times – Because of the distance between spokes and the hub, it may take longer to respond to customer needs and ship products.

Key Takeaways

A Hub and Spoke distribution system provides centralized inventory control, making it easier to track deliveries and respond to customer needs for just about any physical product based business. As a distribution model, it can also make it easier to rotate inventory and use fewer resources.

However, like many other things, it does come with some disadvantages, including higher inventory costs, a fragmented customer service experience, and slower response times.

On the whole, after weighing the pros and cons, hub and spoke distribution systems are beneficial for a good variety of businesses that want maximized resources, efficient inventory flow and cost control.

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.

So, what exactly is cross-docking? It involves delivering products from a manufacturing plant directly to the consumer or retail store without a lot of handling in between, or storage time.

Here is an explanation of what cross-docking is in simple terms: Goods come in to the receiving dock of the cross-dock terminal. They are then screened and sorted before being loaded to trucks on the outbound side of the cross-dock terminal. There is minimal handling of the goods or storage in between the time they come in, and when they leave to be shipped to the retailer or customer.

Here is an example of cross-docking:

Retail store A has ordered 10 fridges, and retail store B ordered 20 fridges from the same manufacturer. A truck arrives at the docking station carrying 30 fridges.

The items are sorted on the cross-dock terminal; there are two trucks waiting on the receiving end of the dock terminal. One truck is heading to retail shop A, and the other is heading to retail shop B. Truck A is loaded with 10 fridges, and truck B is loaded with 20 fridges.

Why is cross-docking used?  Now that you know what cross-docking is, let’s move on to the reasons why is it used. Cross- docking is utilized for three reasons:

• To combine different products into one method of transport, as in the example above, to save on time and transportation costs.
• To provide a central site where goods can be sorted and combined so they are easy to deliver to multiple destinations quickly and effectively.
• To break down large products so they are small enough to be transported to the consumer.

What are the benefits of cross-docking? Cross-docking offers the following benefits:

• Reduces delivery time significantly, as goods are not stored.
• Reduces shipping costs, since there is no storage or other warehouse services involved.
• Builds a strong shipping relationship for your business with one company.
• Reduces risk of damage to the product, as it is being handled less.

How does cross-docking affect warehouse design? For cross-docking to be effective, the warehouse must be designed to facilitate this process. It should have different inbound and outbound dock doors, so that trucks can dock accordingly, to either deliver or receive goods.

The warehouse size, shape and layout should be considered when setting up across-docking warehouse. Also, the technology used to move the goods is an important consideration in determining the layout of the warehouse.

Effective freight management is crucial for the success of any business that involves the transportation of goods. In this article, we will explore the various aspects of freight management and how they can be optimized to streamline logistics, lower costs, and ensure timely delivery.

What is Freight Management?

Freight management is the process of planning, organizing, and overseeing the transportation and delivery of goods or cargo. Any company, regardless of size, that produces physical goods has an interest in moving their products from point of origin to final destination on time, in good order and at the lowest possible cost.

Managing this process includes the coordination of various logistics activities such as freight forwarding, tracking, customs clearance, warehousing and distribution, and transportation planning.

Freight management also involves the negotiation and selection of transportation providers, the management of inventory and shipments, and the implementation of cost-saving strategies.

As stated, the ultimate goal of freight management is to ensure the timely and efficient delivery of goods while minimizing costs and maximizing efficiency.

Freight-Management Processes

The Benefits of Freight Management

Freight management services are an important aspect to any business. These services help ensure that goods are delivered on time and cost-effectively. Just as systems continue to improve to meet demand, the importance of well-organized freight management continues to increase over time. According to GlobeNewswire, the industry is predicted to grow to an estimated value of $21.13 billion by 2030 globally.

As an essential lever used to move the global economy forward, this service is utilized by the smallest to the largest of corporations to ensure goods safely reach their destination.

Businesses can benefit from using a freight management system in several ways:

1. Cost savings: A freight management system can help small businesses negotiate better rates with carriers and find the most cost-effective shipping options. This can lead to significant cost savings for small businesses over time.
2. Improved efficiency: A freight management system can automate many of the manual processes involved in freight management, such as tracking, scheduling, and documentation. This can lead to improved efficiency and less time spent on administrative tasks.
3. Better tracking and visibility: A freight management system can provide real-time visibility into the status of shipments, allowing small businesses to better track and monitor their goods in transit. This can help with inventory management and customer service.
4. Increased flexibility: A freight management system can help small businesses quickly adjust their shipping options and routes in response to changes in demand or disruptions.
5. Compliance: A freight management system can help small businesses stay compliant with regulations and laws related to freight management, such as customs clearance and hazardous materials handling.
6. Scalability: A freight management system can help small businesses scale their operations as they grow, allowing them to handle more shipments and larger volumes of goods without adding additional staff.
7. Better supplier and carrier management: A freight management system allows small businesses to have better control over their carrier and supplier performance, by analyzing the data and identifying the bottlenecks, delays and inefficiencies.

Additionally, there are more intricate parts of freight management, each with its own benefit towards lowering costs and optimizing operations. Some of these integrated services include:

• Load planning
• Route, schedule and transport optimization
• Multimodal and intermodal optimization
• Vehicle tracking using GPS
• Tracking and tracing shipments
• Using barcodes and RFID for package tracking
• Tariffs and regulations management
• Accounting
• Claim management
• Data collection, analytics and reporting

Overall, a freight management system can help small businesses optimize their logistics operations and improve their bottom line.

Different Types of Freight

There are several different types of freight, each with its own unique characteristics and challenges. Some of the most common types of freight include:

1. Less-than-Truckload (LTL) – This type of freight is made up of multiple smaller shipments that are consolidated onto one truck for transport. It is typically used for smaller shipments that do not require a full truckload.
2. Full Truckload (FTL) – This type of freight is when a single customer books an entire truck to transport their goods. It is typically used for larger shipments that require a full truckload.
3. Air Freight – This type of freight is when goods are shipped by air, typically for time-sensitive or high-value items.
4. Ocean Freight – This type of freight is when goods are shipped by sea, typically for large or heavy items, or for international trade.
5. Rail Freight – This type of freight is when goods are shipped by train, typically for large quantities of bulk cargo or for long-distance transportation
6. Special Equipment – This type of freight is when goods are shipped using specialized equipment such as refrigerated containers, flatbeds, or over-dimensional loads.
7. Hazardous Materials – This type of freight is when goods are shipped that are classified as hazardous materials and require special handling, packaging, and transportation regulations.
8. Dangerous Goods – This type of freight is similar to hazardous materials but has more strict regulations and requirement for special handling, packaging, and transportation.

How Freight Relates to Logistics

Freight and logistics are closely related as they both involve the planning, coordination, and execution of the transportation and delivery of goods.

Freight specifically refers to the actual physical goods that are being transported, while logistics encompasses the broader systems, processes, and strategies involved in the movement of those goods.

Logistics Operations Flow

Logistics includes freight management as a key aspect, but also encompasses other activities such as inventory management, warehousing, transportation planning and scheduling, customs clearance, and supply chain management. Third-party logistics providers (3PLs), often offer freight management services as part of their portfolio.

In summary, freight is a crucial component of logistics as it refers to the physical goods that need to be transported, while logistics is the overall process of planning, organizing, and overseeing the transportation and delivery of those goods.

Why are Freight Management Services Important For Businesses?

Most businesses are concerned about managing day-to-day operations that allow them to do what they do best. Unless your business is directly related to transportation, this means you shouldn’t have to worry about shipments. For example, in the middle of a busy week, the last thing you want is to have to scramble to make sure that your goods reached their destination.

You should have peace of mind with the right transportation management system in place that easily tracks and ensures products have reached your customers with the simple click of a button. Partnering with a reliable freight services provider such as The Brimich Group gives you this opportunity. It also provides the following benefits:

• Customer Satisfaction: Working with an organization that has expertise in logistics ensures your customers receive their shipments on time. With the right system in place, you and customers can track every shipment until it reaches its destination, leaving you and the customer satisfied with the overall process.
• Cost Effective: You can be sure of low freight rates from these firms. Since these companies handle in bulk, rates are lower and even negotiable depending on the amount of business you give them. The more business you provide, the lower your rates will be.
• Efficient and Time-saving: This goes especially for smaller businesses which don’t have the resources to handle freight properly. Going with a freight company streamlines the supply chain management aspect of your business. With their expertise, shipping will be one of the most efficient parts of your business as you will have all the technology and resources available for a smooth process.
• Detailed Tracking and Reporting: You will have access to state-of-the-art technology that will provide you with all the tracking and reporting information needed for every shipment, helping you maximize your business efficiency.
• Shipping Strategy for Your Business: The best part about freight handling services is the fact that you get a shipping strategy as per your business requirements. The company works with you in devising a custom strategy rather than try to fit your business into an existing mold. This service ensures that all your shipping requirements are met.

Additional Services Provided by Freight Management Companies

Besides transportation management systems, human resources, and expertise, there are additional services you get when opting for a reliable firm. Here are some optional services they also provide:

1. Warehousing and distribution, taking care of your inventory, packaging, and labeling.
2. Dealing with customs, since the process of either exporting or importing goods is quite lengthy and full of paperwork. The service provider will assist in the customs process making it much smoother for you.
3. Providing insurance on your goods in case there is a mishap during the shipping process.

As a growing or established business, you no longer have to worry about shipping your goods. With reliable freight management companies, you can let the experts handle that process for you, so you focus on the continued growth of your business.

Final Thoughts

As an essential aspect of logistics, freight management ensures the timely and efficient delivery of goods while minimizing costs and maximizing efficiency. For small business, a freight management system can help automate processes, negotiate better rates with carriers, track and monitor shipments, adjust shipping options and routes, stay compliant with regulations, scale operations and have better control over supplier and carrier performance.

Overall, a freight management system can help small businesses optimize their logistics operations, improve customer service and increase their bottom line.

Need a freight management company you can count on? Contact Brimich today!