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.

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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.

A Container Freight Station (CFS) refers to an area of a port where the loading and unloading of containerized cargo is completed.

This area, in most cases, is an extension of the port but still under the jurisdiction of the customs authority. Here is how CFS impacts logistics.

CFS Charges

One of the most commonly asked questions when it comes to matters of the logistics of importing and exporting goods is, “What are CFS charges?”

CFS charges refer to the fees that apply for each activity performed at a CFS, namely the import and export of goods through customs.

Various parameters determine these charges. In some cases, CFS charges can be uniform for a specified category of goods being handled.

CFS charges have a high impact on logistics when it comes to shipping goods into or out of a country. These charges can and will eat into a logistics budget if they happen to be higher than was expected.

If you are an exporter, it’s especially crucial that you understand what export CFS charges are. These are the charges that are involved when your containerized goods are packed onto the ship.

In some instances, the customs authority may liaise with customs authorities at the target destination so that they can charge an all-inclusive CFS fee that will cater for both countries, but this is uncommon.

This means that an exporter needs to always have the right information before exporting his or her goods.

How Does CFS Affect Logistics?

The smooth movement of your containers from one place to another is necessary for a logistics team to manage their products effectively.

This gives you both the peace of mind that is required to run a business and also allows you the confidence needed to make the right business decisions.

With CFS charges in play, a lot can change with regards to your logistics. This is how CFS affects logistics.

• Delays – A failure to negotiate CFS charges on time is one of the leading causes of delays that are experienced in the logistics industry. It is necessary to have an agreement in place to prevent these delays.
• Increased costs – CFS charges contribute largely to increased costs of logistics. For people thinking about getting into imports or exports, it is vital to partner with a firm that helps you with logistics to avoid these inflated costs.
• Deteriorating relationships – CFS charges are usually a bone of contention between custom authority officials and the importers and exporters. Many of the deteriorating relationships between their parties are caused by CFS charges and the failure to agree to a figure that appeals to both.

How Logistics Companies Help

1. Negotiate – Logistic companies help you negotiate CFS charges with customs authorities. This takes the stress off your plate, especially if you are not knowledgeable about matters of customs.
2. Streamline the logistics – Logistics, handled on an individual level, require that you keep track of each movement. This can be quite hectic. Logistics companies do this for you.

Final Thoughts: Dealing with CFS Charges

There’s no such thing as a way around them when it comes to CFS, customs, and charges that may apply to your goods. It’s essential as a business, to partner with firms and agents that help make this easier for you.

In an era where business and logistics have become global, satellite tracking has become a conventional means of pinpointing a person or object’s location anywhere in the world.

This tool for monitoring has changed logistics tremendously since its inception back in the 50s. Satellite tracking technology uses the Global Positioning System (GPS).

The GPS measures the distance between your location and the satellites that orbit the earth.

How Does Satellite Tracking Work?

The GPS is a worldwide radio-navigation device that is formed from a constellation of 24 satellites and their stations on the ground. The system works to find out exactly where an object is located.

The tracking system may be connected to items for this use, such as a vehicle or cell phone. The satellites will work to distinguish where it is located at all times. The device has a function of tracking the movement of the object across a geographical region. This form of satellite tracking has proved useful and changed logistics in several ways.

Real-time Satellite Vehicle Tracking

Satellite tracking has improved logistics by ensuring real-time monitoring of vehicles. Some of the tracking firms, such as Linxup have tracking equipment for vehicles that enable you to locate your car easily and quickly.

You can do so while it’s in motion or on-site. Here is how this happens:

1. Vehicle satellite tracking systems offer updates once a minute when they are moving and each hour when turned off.
2. Equipment, on the other hand, offers updates once each day when on battery and at an interval of 10 minutes when powered and in motion.
3. A Google Maps interface that is intuitive distinguishes which objects are vehicles and which are equipment when at work.
4. The system also offers updates on the fleet movement as it would with normal traffic conditions.
5. Finally, the system gives you access to a bird’s eye view of every vehicle you have on the road and their logistics details.

Conventional satellite tracking systems have these functionalities and even more depending on their in-built conditions which influence logistics. This real-time GPS tracking allows you, at a glance, to identify:

1. The direction as well as the speed the vehicle is traveling
2. The interval between the GPS reports
3. The current address of the equipment or car on the move
4. The driver nearest to the location

What is the Difference Between GPS and Satellite Tracking?

In GPS Tracking, a GPS device receives and later transfers signals that it receives from the satellites around the region. With satellite tracking, the satellite tracker makes use of the signals that emanate from a GPS device.

The satellite software then uses these signals and combines them with a complete map to get the exact coordinates of an object.

GPS tracking systems have a variety of components that use the Global Navigation Satellite System (GNSS) network.

The network includes a variety of satellite trackers that send microwave signals back to the GPS device and give real-time locations, speed of the vehicle, and direction as well as the time that this data was captured.

Validating the Satellite Tracking Argument

Ultimately, GPS tracking through various satellites can provide both real-time and historical data to improve inventory management and delivery. These innovations in satellite tracking have enormously influenced logistics.

If you work in the warehouse or logistics business, then chances are you have heard of the changes that warehouse automation is already bringing to the industry.

There are two sides to the coin, however, with some people saying that warehouse automation leads to loss of jobs, and others being happy that warehouse automation will lead to a new world of increased productivity, efficiency, and accuracy.

The truth is, however, that warehouse automation will not completely take away human jobs. There are so many things that people still must do in the warehouse that machines cannot. To form an educated opinion on this topic, let’s investigate warehouse automation a bit further.

• How do warehouses work? A warehouse is basically a place where goods are stored while awaiting distribution to the customer. However, with 3PLs, warehousingnow has incorporated so many other services and solutions. It is possible for a company to outsource all of its supply chain management duties to a 3PL.

In the warehouse, goods are received, inventory movement takes place, goods are stored, and shipped. At the receiving dock, a clerk receives the entire inventory and all the documents pertaining to it are collected.

A receiving log is made to ensure that all expected inventory of the day is received. The inventory is then moved to the space it has been assigned by the warehouse’s certified and licensed movers. When the time comes, the warehouse also ships the products to the final destination.

• What is an automated warehouse? Warehouse automation can help make the warehouse processes much easier, faster and more accurate. For instance, conveyor belts can be used to move products from one part of the warehouse to another. Automated storage and retrieval systems (AS/RS) is another commonly used automation technique. Automatic data capturing, automated vehicles, bar code scanners and readers, back office automation, and inventory automation are all processes that can be done in a warehouse to ensure that efficiency is enhanced. All of these processes also require use of specialized software for the capturing and storing of data.

• What is warehouse process? Not all warehouses are the same, but most of them have a basic process that occurs for goods that are coming in and going out. This process is as follows: Receiving, put-away, picking, packing, dispatching, returns, and value addition.

An automated warehouse is one in which part of its day-to-day processes are carried out by machines and systems. It is difficult to automate all of a warehouse’s processes, because people are better at carrying out certain processes.

Warehouse automation can bring many benefits. It improves efficiency and accuracy in the warehouse, and can also help save money by reducing the number of employees needed to carry out warehouse processes.

And, with warehouse automation, space utilization is dramatically improved, as well as shipping costs; denser pallet cubes can be created, leading to more tightly packed trucks, and efficiency in shipping. This can reduce costs by up to 10%.

Most people know that a warehouse is a place where goods are stored, or where a manufacturer places their goods for accumulation. It’s an important aspect of production and distribution of goods to the consumer. But did you know that there are different types of warehousing?

There are basically two different types of warehousing that a manufacturer or retailer can use, both of which will be discussed in this article.

What are the two basic types of warehouses?

Before understanding the different types of warehousing, it is important to know what the two basic types of warehouses actually are.

• Private warehouses: Owned and operated by the channel suppliers and manufacturers for their own activities. Usually these warehouses are owned by big manufacturers, due to the huge capital required to construct a warehouse.
• Public warehouses are owned by business establishments who provide warehousing—for a fee—to companies that do not have their own. They can also be operated by cooperatives. A public warehouse requires a license from the government to operate in accordance with the rules and regulations set out for such a business.

What is warehousing, and what are its functions?

Warehousing is more than just storage; it also includes other functions, such as receiving, identifying, holding, assembling, and packaging of products. Warehouses also assume responsibility for the goods until they have been collected.

Regardless of the type of warehousing you choose, here are the functions of warehousing;

• Storage: This is the basic function of any type of warehousing. It means simply storing surplus goods and awaiting the distribution process to the customer.
• Price stabilization: Warehousing creates time. This means that, if prices have fallen, the manufacturer can wait until they’ve stabilized to put their product back out on the market.
• Risk minimization: Most warehouses are constructed in such a way to avoid theft, damage, and deterioration to the products within. Many also have features, such as climate control and high security, to further protect products.
• Grading and packing: Many warehouses also now provide packing and grading services for products. The specifications are given by the manufacturer, and the warehouse provides these services as the goods await distribution.
• Regular production: Manufacturers can continue producing their product, even when they are unable to store the product themselves.

What is the difference between warehousing and logistics?

Warehousing and logistics are different aspects with similar functions in the supply chain. All types of warehousing involve safe storage of the goods and inventory.

Logistics, on the other hand, is a complicated process that involves the management of the entire flow of goods, from the manufacturer to the end consumer. It involves aspects such as material handling, production, packaging, warehousing, transportation, inventory, security, and flow of information.

Logistics, which can be further categorized as inbound and outbound logistics, is a critical component of supply chain management.

What is Freight Logistics?

Freight logistics is a further subcategory of logistics involving only freight. There are two types of logistics, namely inbound logistics and outbound logistics.

Inbound logistics is a primary component of logistics and involves the procurement, transportation, and storage of products, materials, or parts from various locations for assembly or production.

Outbound logistics refers to all the supply chain activities involved in the transportation of the finished product to the distributor, to the retailer and, ultimately, to the end consumer. Transport can be carried out via air, sea, rail, or roads.

There are several other subcomponents of logistics, including:

• Procurement logistics, for example, market research and supplier management
• Distribution logistics, which involves the delivery of the finished product to the end consumer
• Reverse logistics, which is all the activities related to the reuse of products
• Production logistics, which refers to all logistic processes within a value-adding system

What is the Difference Between Shipping and Logistics?

There is often some confusion as to the difference between shipping and logistics. The essential difference between shipping and logistics has to do with scope.

Shipping refers to the transfer of goods from one place to another via air, sea, road, or rail. To understand logistics, one has to take a step back. Logistics is the administration of the process of acquiring goods, storing them and, finally, delivering them to the end user.

The logistics of physical products involves the coordination of specific areas of specialization, including information flow, production, inventory, and storage. Shipping is one of these areas of specialization that forms part of logistics and is, therefore, an integral part of logistics.

Logistics and shipping are both key components of a supply chain. If one or the other is lacking, chances are that the business will experience problems relating to inefficiency.

What is Freight Forwarding in Logistics?

Freight forwarding is a critical element of logistics and involves the movement of goods around the world by making use of a combination of sea, road, rail, and air shipping services.

Say, for example, you want to ship products from your warehouse in Dallas to a customer in London. The freight forwarder will pick up the product at your warehouse and pack it, place it into a container, and arrange for all necessary export permits.

The freight forwarder will then book the shipping, deliver the product to the port or airport, handle handovers between shipping companies, receive the product at the airport in London, take care of nationalization, and deliver the product to your customer’s door.

Freight forwarding differs from shipping in that shipping only involves transporting the product from point A to point B.

Contact Brimich Logistics

Brimich Logistics specializes in supply chain management and third-party logistics. If you are interested in learning more about freight logistics, or if you need high-quality logistics solutions, contact Brimich Logistics today.

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!