All facets of your logistics processes are important. When the inevitable problems come up, whether inbound or outbound, they can affect production, customer service, and ultimately profits.

Are you in or are you out? In terms of logistics processes, “in” would imply resources and materials coming in to your business to facilitate production. “Out” would be finished goods on their way to their final destination. The continuous movement of these flows are the processes that make up inbound and outbound logistics.

Virtually every business that handles physical goods relies on inbound and outbound logistics processes in order to operate from day to day.

Moreover, when these processes are optimized, other processes benefit in turn. On the inbound side, things like restocking and developing new products become easier to coordinate. And on the outbound side, fulfillment to customers runs smother with more shipments arriving on time.

Familiarizing yourself with the intricacies and dependencies of all inbound and outbound logistics processes gives you a clarity on how to better manage your resource flows and remove potential bottlenecks.

What is the Difference Between Inbound and Outbound Logistics?

Inbound logistics focuses on the movement of materials into a company, while outbound logistics involves the movement of finished products out of a company.

Perhaps one of the best ways to illustrate the difference between inbound and outbound logistics is to use an example we’re all too familiar with:

Have you ever had a notification of a delayed shipment?

If you need the shipment for processing your own goods, that’s inbound logistics. If the shipment is supposed to be on its way to fulfil a customer’s order, that’s outbound logistics.

One other point to consider is that the very nature of inbound vs outbound implies some form of median between the two. For all intents and purposes we can consider this point the receiving warehouse or centralized distribution centre.

Inbound vs Outbound Logistics Core Differences

What Is Inbound Logistics?

Inbound logistics involves how raw materials and goods flow into a company. This includes such steps as ordering, receiving, storage, transportation and management of incoming supplies. In other words, the inbound logistics process focuses on the supply portion of the supply and demand equation.

Specific Inbound Logistics Activities:

• Sourcing and Procurement
• Ordering and Purchasing
• Transportation
• Receiving
• Materials Handling
• Storage and Warehousing
• Inventory Management
• Expediting
• Distribution
• Tracking
• Reverse logistics

Depending on how a company handles incoming goods, industry type and buyer-seller relationship, the company may manage its own inbound logistics or outsource it.

How to Optimize Inbound Logistics

In a larger sense, optimization of any company process creates an opportunity for growth through redistribution of resources. With inbound logistics, this means faster, leaner, more agile and cost-efficient operations. It also means assessing every process, identifying strengths and weaknesses, and then making the necessary improvements.

1. Measure current performance.
   Examine potential inefficiencies concerning expenses, waste, quality degradation, redundant tasks, information gaps, and delays when optimizing inbound logistics. Consider hidden or intangible expenses like inventory carrying costs and the repercussions of subpar customer service, which can add complexity. Additionally, assess your operations against industry standards and competitors for comparison.
2. Analyze choices.
   Monitor the impact of your choices on both cost and efficiency within the scope of optimizing inbound logistics. Key cost influencers in inbound logistics include procurement, supplier oversight, transportation, reception, storage, material handling, and inventory control.
3. Develop strategies to counter inefficiencies.
   Recognize the need to balance trade-offs among various activities. Employing automation and analytics empowers a more data-centric approach to decision-making.
4. Build strong supplier relationships.
   Robust supplier partnerships can result in advantages like improved terms, shorter lead times, cost efficiencies, and enhanced stability amid market changes. Placing importance on communication enhances your suppliers’ comprehension of your operations. Establishing a supplier compliance strategy outlines your specifications and repercussions for errors, such as late deliveries or deviations from route guidelines. This approach can lower shipping and warehousing expenses, amplify efficiency and precision, and elevate customer satisfaction.
5. Use a Warehouse Management System (WMS)
   Warehouse Management System (WMS) software enhances warehouse efficiency by optimizing tasks such as receiving, storage placement, inventory control, and order picking.
6. Use a transportation Management System (TMS)
   A Transportation Management System (TMS) software automates, oversees, and enhances freight operations. It evaluates shipping quotes and service levels from various carriers, arranges shipments, and monitors their progress until delivery. These insights enable businesses to cut expenses, enhance efficiency, and achieve comprehensive transparency within their supply chain.
7. Combine deliveries:
   Shipments categorized as Less-than-Truckload (LTL) typically entail elevated shipping expenses and extended receiving durations. Challenges in consolidating these shipments may arise due to varying handling requirements, such as refrigeration for specific goods. In scenarios where achieving full truckloads is problematic, enlisting a third-party logistics provider (3PL) allows for merging partial loads from multiple customers.

What Is Outbound Logistics?

With outbound logistics, the emphasis shifts to the demand side of the supply-demand dynamic. This entails the storage and transportation of goods to the final customer or end user, encompassing stages such as order fulfillment, packaging, shipping, delivery, and associated customer service.

Specific Outbound Logistics Activities

• Warehouse and Storage Management
• Distribution Channels
• Inventory Management
• Transportation
• Delivery Optimization
• Last-mile Delivery

How to Optimize Outbound Logistics

Optimizing outbound logistics requires efforts designed to improve relationships and negotiations. Technologies can be used to figure out optimal delivery networks, plan routes, organize schedules and, ideally, reduce costs.

1. Understand faster delivery systems.
   n order to comply with swift shipping criteria set by carriers, it might be necessary to establish product staging within distribution centres. This could involve organizing shipments according to distribution centre directives and customizing packaging to align with their specifications. Certain sectors, such as wholesale food supply, might utilize a lumper service at distribution centres, engaging third-party personnel for trailer loading or unloading. The objective is to expedite operations, enabling quicker turnaround and driver rest periods. It’s crucial to ascertain whether lumping services will be employed by the distribution centre, as these additional costs need to be factored in.
2. Adopt current inventory strategies.
   The prevalence of Just-in-Time (JIT) inventory and other swift replenishment techniques has shifted away from the traditional practice of delivering substantial orders to customers with considerable time gaps. Given that JIT customers generally lack ample storage space for excess products, adjusting your outbound logistics to align with these inventory trends becomes essential. This adaptation might involve accommodating a higher volume of Less-than-Truckload (LTL) orders.
3. Build and improve partner relationships.
   Build strong partnerships with essential outbound logistics stakeholders – both customers and freight providers. If your industry involves sales to significant retailers with intricate supply chains, these partnerships could yield valuable insights. Establishing a rapport could prompt data sharing on your product’s performance, facilitating refinements in production, order fulfillment, and shipping. Close engagement with freight carriers can provide insight into strategies such as concentrating business with a select few shippers, potentially improving control over pricing and service level agreements.
4. Use smart route planning.
   Implementing automated route planning can minimize delivery waiting and travel times. These time savings have the potential to lower fuel expenses and enhance customer satisfaction.
5. Consider partnering with a 3PL provider.
   For many businesses, the details and expenses tied to outbound logistics render outsourcing to a third-party logistics provider (3PL) a strategic decision. The substantial scale of 3PLs affords them volume-based discounts and negotiation advantages, translating to potential cost efficiencies on your end. Leveraging the expertise and specialization of 3PLs also allows for agile scalability, aligning your operations with shifting business demands.

Inbound and Outbound Logistics Processes

The individual processes of inbound and outbound logistics can be broken down into multiple specific steps. In aggregate, they’re designed to enable the smooth movement of goods and products into and out of a business.

Benefits of Efficient Inbound and Outbound Logistics

Taking the time to identify and analyze key KPIs within your logistics systems is time well spent. As bottleneck and inefficiencies are identified, they can then be corrected to help improve operations, save resources and create a better overall flow of goods.

Benefits of Inbound Logistics

Along with lower costs for raw materials and more reliable supply sources, businesses can take advantage of the many benefits of efficient inbound logistics. The following are a few of the major benefits of efficient inbound logistics:

• Lower shipping and receiving costs
• Predictable raw material costs
• Improved product quality
• On-time deliveries
• Steady production rates
• More economical inventory management
• Ability to spot supply chain problems
• Stronger vendor relationships

Benefits of Outbound Logistics

With outbound logistics, the last link in the chain is the customer who must be kept happy. An efficient outbound logistics process not only helps retain customers, but also confirms that nothing is missing, broken or defective. Some of the benefits of more agile outbound logistics include:

• Faster and more on-time deliveries
• Less transit damage and loss
• Fewer order cancellations and returns
• Reduced delivery failures or mistakes
• Lower costs of operations
• Higher customer satisfaction rates
• Stronger brand recognition
• Better company reputation

Inbound and Outbound Logistics FAQs

Here are a few inbound and outbound logistics related frequently asked questions readers ask:

What is outbound logistics in simple terms?

Outbound logistics refers to the transportation, the storage and the delivery of goods to customers or other businesses. It relates to the sales of goods (out of the company) i.e. the outflow of goods from the production line to the end user.

Source: https://www.saloodo.com/logistics-dictionary/outbound-logistics/

What is the difference between inbound and outbound transportation costs?

Inbound logistics involves the efficient and cost-effective flow of materials and goods into a business, while outbound logistics involves the efficient and cost-effective flow of goods and services out of it.

Source: https://www.sellerapp.com/blog/inbound-outbound-logistics/

Is supply chain inbound logistics?

Inbound logistics is a supply chain operation tasked with ensuring that a company is supplied with the products or services it needs to do business. Directly related to supply-chain procurement, inbound logistics includes the processes of product acquisition, goods receipt, storage, and stock management.

Source: https://www.interlakemecalux.com/blog/inbound-logistics

What are some issues that may arise in outbound logistics?

Challenges of Outbound Logistics

• Managing the increasing complexity of customer orders.
• Determining the most efficient shipping routes.
• Meeting delivery deadlines.
• Complying with shipping regulations.
• Coordinating with operations, suppliers, and carriers.
• Handling returns and reverse logistics.

Source: https://www.skuvault.com/blog/outbound-and-inbound-logistics-what-they-are-and-how-to-optimize/

What is an example of inbound supply chain?

Let us suppose that you are a car manufacturer. Now, all the raw materials that are incoming to the plant for further processing are inbound activities. In this phase, transport for steel, rubber, plastics, glass and other things to the factory is still required.

Source: https://www.eurosender.com/blog/en/inbound-outbound-logistics/

How to calculate inbound logistics?

There are many metrics to measure the performance of inbound logistics, including error, defect and on-time delivery rates for shipments Some calculations to consider are:

• Freight cost for a pound of raw material
• Freight cost as a share of total production costs
• Time and expense to receive incoming shipments
• Number of times staff handle goods

Source: https://www.netsuite.com/portal/resource/articles/inventory-management/inbound-outbound-logistics.shtml

Do You Need an Experienced Logistics Partner?

If your company is involved in production and moves goods and materials, you have logistics needs. To create a more efficient logistics network, count on Brimich Logistics and Packaging to help streamline your outbound logistics operations today.

What factors do you need to consider to better control your freight costs? Are there hidden charges you should be aware of? Is the domestic freight market predictable enough to make qualified decisions? Let’s see if there’s a practical road to understanding trucking rates.

If your products are shipped by truck, you’re paying for it. Whether you have your own fleet or have to rely on a third party, having a reasonable knowledge of the factors influencing your trucking costs just makes sense.

As we uncover the information you need, it’s important to realize there are two distinct facets in discussion: trucking rates and truck freight rates. Trucking rates apply to you directly (your costs as a business owner), whereas truck freight rates are the costs incurred by carriers – owner operators and trucking companies.

How to Calculate Trucking Rates

For most physical business, freight and trucking costs are a significant and often revolving part of your operating overhead. Therefore it makes sense to understand the basics so you can break down these costs into smaller increments that help you determine the best trucking rate per mile.

Trucking freight rates are calculated using a per-mile (or kilometre) basis. Therefore, the most important metric when calculating truck rates is the number of miles between your point of pickup and final destination.

Having an average rate per mile for trucking and reasonably accurate information of current freight rates is essential for predicting your shipping costs, providing quotes and negotiating shipping rates with your customers.

What is a Truck Freight Rate?

A truck freight rate is the price a specific broker or shipper will pay a carrier to haul a load. Because the average trucking company only only one to two trucks, the aggregated number of small businesses becomes staggering. This also means there can be a huge variation in pricing from company to company.

Is this a problem or an advantage? When you realize just how competitive the domestic freight market is, you certainly have an opportunity for a win. The trick is in being informed and doing your homework through due diligence.

Factors That Determine Truck Freight Rates

There are number of standardized factors used to calculate truck freight rates. Some of them are predictable or fixed, others are variable. As a group, they’re all taken into consideration when determining truck freight rates.

1. Distance

Whether local or long haul, the distance between start and finish points is an important part of determining trucking rates per mile.

2. Weight

The next most significant factor is the weight of the shipment. For instance, moving crates full of dumbbells is going to cost more than boxes full of ping pong balls.

3. Density

Shipment density is another factor that determines the volume of space a shipment will take up in the truck. This in turn impacts your trucking per mile rates. For all intents and purposes, calculating the shipment density is fairly straight forward: divide the shipment weight by its cubic feet. In other words, shipment weight divided by cubic feet = shipment density.

4. Base Rate

All trucking carriers have established base rates for shipments. Although most rates are usually cited per $100 dollars, they will vary based on the carrier and transporting lane. Your base rate also includes both fixed and variable costs and variable costs. Fixed costs are items such as insurance and equipment leases. Variable costs are those that fluctuate such as fuels expenses and driver pay.

5. Classification

Freight classification plays a significant role in freight rates. For instance, hauling hazardous materials is far different and requires extra precautions compared to shipping stuffed animals.

The National Motor Freight Traffic Association (NMFTA) has defined 18 classes of shipments that affect freight rates per mile. Freight classification is determined by factors such as:

• Product density
• Value of goods
• Handling needs
• Stow-ability
• Liability

Types of Trucking and Haul Rates

The type of truck used for transport will affect the overall cost of trucking. For instance, you’ll need a far more powerful vehicle to haul an oversize bulldozer compared to a vintage automobile. In a similar fashion, you’d want to ship frozen foods in a reefer rather than a flatbed.

Heavy Haul Trucks

Heavy haul trucking companies will use common per mile cost factors such as:

• Fuel expenses
• Repair and maintenance expenses
• insurance for trucks
• Highway tolls and fares

If you’re moving heavy products, a good rule of thumb is to keep an eye on both local and national trucking rates.

Flatbed Trucks

As for flatbed truck rates per mile, the national rates average $3.14 (USD) per mile. However, depending on your location a shipping points, specific areas may have higher or lower rates.

Fair prices for flatbed truck services consider things like:

• Trailer type
• Load-to-truck ratio: the number of loads vs your available trucks
• Cargo weight
• Destination
• Other services such as oversize loads, warehousing, loading and unloading

Refrigerated Trucks

Refrigerated trucks or reefers are equipped with a refrigeration unit for goods that need low temperature control. Since they consume more fuel, reefer freight rates are higher than that of other trucks of the same relative sizes. This difference ultimately factors into your freight prices per mile.

Dry Vans

Perhaps the most common type of truck you’ll see on the highways, dry vans have a non-temperature-controlled sealed trailer and represent a fair benchmark for determining the average cost per mile of truckload freight.

What’s the Going Rate for Trucking Per Mile?

In order to understand the scope of the trucking industry and determine a competitive rate per mile, you need to know how much trucking companies actually charge per mile. Their cost per mile is influenced by such factors as:

• Fuel
• Repairs and maintenance
• Insurance
• Roadway Tolls

For many operations, financing is also rolled into the cost per mile. Typical financing charges for trucks and trailers can range from 0%-30% of revenue.

As of July 2021, trucking rates per mile remain steady. Here are the current rates for the most popular freight truck types:

Trucking rates (in USD) for the most popular freight truck types within the last few years have hovered around:

• $2.30 to 2.86 per mile for dry vans
• $3.19 per mile for reefers, with lower rates of $2.47 found in the Northeast
• $3.14 per mile for the average flatbed
• $2.95 to $3.76 per mile for heavy haul according to heavyhaulandoversized.com

As we’ve experienced recently, inflation and interest rates have been impacting the economy. Resulting in rising fuel prices over the past year thus creating a huge variable when calculating transportation rates.

Company vs Owner-Operator Trucking Rates

In contrast to company drivers working exclusively for a trucking firm, owner-operators own or lease their own trucks. As a form of networking, owner-operators usually work together with a trucking company in order to find trucking jobs and leverage back-office support.

This autonomy comes at a cost though, as owner-operators have to deal with additional stress and the burdens of financing, maintenance, health insurance and related operational expenses largely on their own.

In terms of trucking rates, owner-operators generally earn an average of 75% percent of the loads they take. The balance of the percentage goes to the trucking company.

For a deep dive into the intricacies associated with the operational costs of trucking, please refer to this comprehensive industry pdf: https://truckingresearch.org/wp-content/uploads/2022/08/ATRI-Operational-Cost-of-Trucking-2022.pdf

Trucking Rate Terminology You Need to Know

Building a knowledge base on trucking rates also means understanding the terminology. Other than  pricing, there are a few trucking industry terms you should be familiar with:

Consignor: The entity that sends the freight to its counterpart the consignee.

Consignee: The entity that receives the freight from the consignor.

Carrier: A business that offers shipping services.

Bill of Lading (BOL): Also called a freight bill, the bill-of-lading is a record of all details of the shipment and the agreement between a carrier and the shipper.

Loss and Damage: Loss and damage rates only cover shipments in transit or in storage facility operated by the carrier.

Full Truckload (FTL): Also termed TL, an LTL shipment requires the use of a whole truck.

Less Than Truckload (LTL): Shipments that don’t utilize the full capacity of a truck.

Drayage: Drayage is a form of short-haul trucking that connects the different modes of shipping such as ocean freight or air freight.

Pallets (or Skids): Plastic or wooden stacking platforms that usually measure around 40″ by 48″.

SKU: A Stock Keeping Unit, a method of recording individual items of a different kind, size, or freight.

CWT: A standard shipping weight unit equivalent to 100 pounds.

Finding the Best Trucking Rates is Not as Hard as You Might Think

From trucker shortages, supply chain issues to the prospect of extra charges, the trucking landscape is full of – at times unpredictable pitfalls. But with a solid understanding of the trucking field and its players, you increase your ability to react with agility.

Contact Brimich and Packaging today and talk to an experienced professional who can quote trucking rates tailored to meet your company’s specific needs.

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.

Without cross-border logistics, international shipping quickly becomes a major headache for smaller businesses. Luckily, your logistics partner has remedies to help facilitate the movement of products from country to country.

It would be fair to say the international trading landscape is becoming more complex. But considering global transportation and supply chain industries are constantly evolving, a more appropriate statement recognizes that the nature of cross-border shipping has never stopped changing to begin with.

Let’s have a look at how logistics fits within the global supply chain, and possible solutions to effectively managing international shipping.

What is Cross-Border Logistics?

Cross-border logistics is an integral section of the supply chain that focuses the efficient flow of products as they pass from country to country. Along with providing transportation services, its purpose is to facilitate compliance with legal and tax regulations as products are shipped across international borders.

Types of Cross Border Freight Shipping

Cross-Border TL/LTL

Whether you have full truckload or less-than-truckload cargo to import into and export out of Canada, we have the logistics expertise to expedite freight shipments and reduce the risk of costly border delays. We can even help expedite imports into Canada valued at $3,300 or less.

International Freight Forwarding

We can help manage the import of goods into and export of goods out of North America and facilitate delivery into the Canadian market. We pick up shipments offshore and load containers onto ocean liners for delivery into Canada.

What are the Challenges to Cross-Border Logistics?

The problem is: how to seamlessly manage courier, freight, freight forwarding, air cargo and associated international supply chain needs. The solution is: through cross-border logistics.

The very nature of logistics involves the handling and tracking of goods as they move through your supply chain. When your products need to move through another country, cross-border shipping multiplies the complexity of getting your products to their destinations. Additional paperwork, the potential for customs delays and multi-carrier handoffs are just a few of the issues that make moving products across borders much more complicated than is reasonable for smaller business.

Every business wants to main a competitive edge in the marketplace. A firm can help improve its operational position by maximizing logistics strategies that affect the movement of products as they navigate across borders.

Logistics partners with experience in cross-border freight management must have professional people, systems and processes in place to help facilitate the transition of goods from one country to another.

Without help from a third party logistics professional, critical tasks quickly wind up outside a small company’s capabilities. Some of these tasks include:

• Shipping
• Order tracking
• Tracing
• Liabilities
• Carrier handoffs
• Meeting expected delivery times
• Returns and Reverse Logistics
• Customs paperwork and clearance

Cross-Border Shipping vs Local Shipping

The need to move products across borders arises from one of two conditions: products on their way to final destination or, materials are being transported to facilitate the manufacturing process. For example, one shipping path would be a smart phone on its way from the manufacturer to the distributor or retailer, whereas the other would be the import or export of components and raw materials that constitute the smart phone itself.

Anyone who’s run an inventory-based business knows that, when bringing in significant quantities of supplies from another country, duties become a serious consideration when budgeting and projecting costs. It’s usually more cost effective to try and source local fulfilment for the products you need. Drawing from inventory that is stocked regionally gets around a host of cross-border complications in that duties, customs, trade tariffs, shipping and associated international paperwork has already been taken care of.

Not only can a business leverage the current trend of “locally sourced”, there’s the added benefits of supporting local economies and keeping working capital within the region itself. But as much as it may be preferred to find sources locally within your own borders, this isn’t always possible.

Still, the flow of goods across borders shows no signs of any serious degradation. If anything, international shipping and logistics is booming:

“”Overall, the value of global trade reached a record level of $28.5 trillion in 2021,” the report says. That’s an increase of 25% on 2020 and 13% higher compared to 2019, before the COVID-19 pandemic struck.”

source: UNCTAD’s Global Trade Update

Logistics Shipping and Technology

In today’s business world, particularly with the rise of e-commerce, the mere thought of trying to manage shipping without the aid of technology is a non-starter. Technology effectively helps provide end-to-end supply chain visibility and reduce operating costs. On the international front, electronic data solutions provide easier management of logistics functions such as:

• Route planning
• Warehouse management
• Coordinating shipping partners
• Freight preparation
• International commercial terms management
• Other required import and export documentation

For businesses on the receiving end of cross-border shipping, implementing a system that allows products to arrive Delivered Duty Paid (DDP) helps to reduce friction from unexpected charges at end points. But capabilities such as this depend on improvements derived from actionable data provided by digital operations.

Additionally, being able to respond effectively to customer demands also requires international logistics networks to have transparent systems in place. Better logistics providers incorporate international tracking systems to monitor basic shipping needs such as end-to-end order tracking and in-flight delivery changes.

Problems Facing International Trade

Due to the sheer number of globally recognized borders, the challenges facing international logistics are immense. Inherent roadblocks arise from how each country administers their own international customs and border management.

To try to make importing and exporting processes as seamless as possible, efforts are constantly being made to harmonize, simplify and standardize cross-border trade procedures. One solution is to lessen restrictions on border controls by shifting certain responsibilities to suppliers and end users through supply chain security. But these same efforts would also have to incorporate contingencies that curb the ability of less scrupulous entities looking for ways to manipulate the system by way of loopholes. Without proper governance, these unintended consequences carry the possibility of undermining public safety and economic security.

Ultimately, the goal of smooth cross-border logistics operations should minimize the regulatory burdens placed on businesses. For government controlled agencies, efficient border management implies the best use of inspection resources and encourages good compliance behaviour. The downstream benefits resulting in a healthier business environment and wider range of social and economic benefits.

Additionally, relying on cost-effective outsourcing from other countries depends on a consistent cross-border supply chain. But over time, this consistency occasionally gets disrupted as laws governing international trade change. Let’s say for example, you manufacture types of wooden furniture from a certain species of tree that, through regulatory change, becomes internationally protected. Suddenly your source is an endangered species.This is what happened with various flora and fauna species that fell under the CITES treaty in 1975 and was ratified by over 180 countries:

The objective of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) is to control the trade in species of wild animals and plants that are, or may be, threatened with extinction as a result of international trade.

Furthermore, as we’ve seen in the news, geopolitical landscapes affect trade regularly, which winds up compromising existing trade capabilities. Take for example the recent conflict between Russia and Ukraine. With Ukraine being one of the world’s largest grain producers, its ability to export the commodity was seriously hobbled when Russia restricted access to Black Sea ports.

Unfortunately, regional and bilateral trade regimes continue to become normalized, particularly in emerging markets. This results in a host of tariff and non-tariff conditions, varying degrees of shipping standards, complicated rules of origin and regulatory compliance issues which make it difficult and costly for businesses to navigate. Since it began life in 1995, The World Trade Organization (WTO) continues to struggle with equalizing multilateral trade efforts due to differing political policies.

How Can Brimich Logistics Help?

Today’s cross-border shipping is facing higher demand and expectations for fast, seamless delivery. Your business deserves the capacity it needs to operate, flexible transportation models, and the expertise needed to navigate regulations and processes without delays.

If timing is critical and your budget is under fire, trust Brimich Logistics and Packaging to help you navigate the complexity of shipping between countries.

As a smart shipper, fattening up your bottom line also means knowing how to manage freight costs and increase shipping efficiencies with the help of practical strategies.

Costs Associated with Managing Freight

Every business is different, yet the most costly element associated with managing freight costs often tends to be the cost of the transportation itself. Realizing a better bottom line is not just negotiating better terms, but requires strengthening relationships and understanding the intricacies of the transportation and logistics systems themselves.

High-impact factors within the transportation industry include managing fuel, driver salaries, and equipment costs. Plus there are costs associated with packaging, warehousing, handling fees, as well as customs and import/export fees.

Overall, the total cost of managing freight will depend on a number of factors unique to your business – mainly the type of goods being shipped, the distance they are traveling, and the level of service required.

In this article, we will explore how a 3PL company can assist businesses in controlling freight costs. Some methods may be as obvious as shipping during off-peak hours, others require a better understanding of the components and common factors that drive up freight costs.

The following strategies provide insight into how to manage freight costs to help improve your transportation’s bottom line.

Strategies That Cut Shipping Costs

1. Perform an In-Depth Cost Analysis

When working with carriers, it’s important to clearly define what you need from them in order to make a comparison between their quotes.

For example, instead of simply asking for a standard rate and tariff format, specify the type of rate you need (e.g. kilogram rate, tonnage rate, pallet rate) and ask for quotes for different quantities (e.g. 1-5 pallets, 6-10 pallets).

By requiring all carriers to provide quotes in the same format, it will be easier to compare and understand which carrier is offering the best service and prices.

2. Define Your Freight Rate Structure

When it comes to freight rates and pricing structures, it’s important to make sure you’re paying the right rate for your specific needs.

For example, if you’re paying an hourly rate for deliveries, literally being on the clock might not necessarily encourage the transport company to make your deliveries efficiently.

It’s important to consider the rate structure, whether it’s per ton, per pallet, per carton, and ensure that it aligns with your freight profile. If it doesn’t, it might be worth reevaluating and potentially renegotiating the structure.

3. Recalibrate the Speed of Your Shipping Methods

When it comes to shipping and the premiums attached to speed, it’s important to make sure you’re not overusing faster methods like air or express freight when regular road freight would do. Take a look at your invoices and see which shipping speeds you’re paying for and make sure they’re appropriate. Often, people will book a higher priority than necessary.

Also, consider the different speeds of shipping methods and ask yourself if air freight is necessary for the entire shipping distance. For example, it might be more cost-effective to use air for a portion of the route and ocean transport for the rest, or vice versa.

4. Develop Relationships with Carriers

When shippers establish long-term relationships with carriers, they gain insight into transportation management that can have a real impact on the bottom line.

Long-term contracts allow carriers to optimize their resources and create more efficient networks with minimal deadhead miles. Carriers that are maximizing their assets are more profitable and can offer better rates. Plus, locking in a rate for a longer term, such as a number of years, means no annual rate changes and an overall better service.

5. Ship on Off-peak Days

Shipping on off-peak days can lead to some significant savings. For example, Fridays tend to be quieter days for shipping consumer goods as most retailers aim to have their products on shelves by the weekend. Similarly, Mondays tend to be less busy for carriers, so they may be more open to negotiating rates.

Of course, this may vary depending on the type of goods you’re shipping – for example, non-perishable goods may have more flexibility when it comes to shipping days than perishable goods. However, coordinating your freight shipments to take advantage of off-peak days is a great option for shippers of non-consumer products.

6. Offer Later Pick-up Times

Offering later pick-up times can be a great way to shave overhead costs in shipping. For example, by allowing carriers to pick up your freight after most other shippers have closed for the day, like between 6-12 p.m., you’re giving them the opportunity to make your load into a backhaul.

This means that they can fill their truck with your freight after completing another delivery, instead of having to make a separate trip. It’s a win-win situation, as it helps the carrier maximize their assets and save you expense. Just keep in mind that it depends on the cargo and the carrier’s schedule.

7. Bundle Your Shipments

Bundling shipments is a great way to drive down shipping costs; combining multiple orders into one shipment can save a significant amount of money. Instead of shipping a few pallets at a time, try to bundle them together into a larger shipment.

One way to encourage customers to bundle their orders is to offer them a discount on shipping costs. Another option is to implement Vendor Managed Inventory, where the retailer only pays for items once they are on the shelf, which may encourage them to take larger orders.

8. Maximize Your Carrier Capacity

Consider the ways in which you are packaging and presenting your freight to carriers. By making adjustments to loading and handling processes, you can help the carrier maximize the capacity of their vehicles and potentially reduce your costs.

For example, if you’re shipping fragile products that require individual pallets, you will be paying for unnecessary space in the carrier’s vehicle. Additionally, think about the overall design of your pallets, ensure they’re evenly packed to allow for efficient stacking.

9. Minimize LTL Shipments

Because LTL shipments operate on a piecemeal basis, less-than-truckload shipments drive up your freight costs.

Ways you can reduce LTL shipments include:

• Using logistics software make your full-truckload shipping frequency more efficient
• Work with carriers that offer load consolidation
• Offer incentives to freelance LTL carriers who offer better freight rates

10. Join forces with Other Shippers

Collaborate with other businesses near your regular distribution centers to bundle your shipments with theirs. This approach is even more advantageous if the companies are local and have a shared customer base.

11. Reduce Dunnage

Consider working with carriers to minimize unnecessary packaging and reduce shipping expenses without compromising product safety. Utilize carrier’s dimensional weight pricing plans that incentivize using the appropriate size packaging, reducing weight and packaging materials.

12. Increase Delivery Lead Times

By planning your supply chain needs and providing carriers with ample advance notice for future loads, you can help them optimize their resources and assets. Advance shipping notice allows carriers to align their trucks, drivers, and warehouse space to ensure efficient transportation.

One of the biggest costs for carriers is the idle time of trailers waiting to be loaded. By improving planning, communication and providing longer notice, carriers can reduce these costs and offer you more competitive rates. This also applies to all aspects of the supply chain, including pick-up, staging, and live-loading.

13. Contract for Steady Lane Freight Volume

Establishing a consistent and reliable shipping schedule with a carrier can lead to cost savings. Carriers can market unused capacity on their return trips and build a more efficient network when they know they will receive a steady flow of freight in the same lanes from you.

Additionally, in today’s market with limited capacity, carriers tend to prioritize the freight of shippers who are loyal and have dependable shipping volume.

14. Load Your Freight Quickly and On Time

Carriers typically develop their pricing based on a 2-hour load window. If the carrier knows they’re cutting their load time in half when picking up cargo at your facility, that’s an incentive to drop the price, and good reason to continue at a discount.

A shipper with a reputation for being efficient not only saves time and resources attributed to extra charges, but has carriers waiting and willing to negotiate better rates.

15. Find Carriers for Backhauls from Ship-to Points

Carriers that can fill space by backhauling from your ship-to points will get you a lower rate. Dead-heading costs them time and money. You can help them alleviate empty mileage and at the same time reduce your own freight costs.

Therefor it’s worthwhile investigating carrier terminals near your ship-to locations and endpoints.

16. Outsource your transportation department

Freight management for smaller companies especially is top-heavy. For many, the overhead in staffing and systems necessary to operate a transportation department is simply beyond their means.

By outsourcing the many facets of freight management to an experienced and efficient 3pl provider, the financial stresses of staffing and capital expenses are offloaded allowing the company to grow and innovate.

Reasons for Controlling Freight and Shipping Costs

Controlling freight costs is crucial, especially for small businesses, for several reasons:

1. Financial Impact: Freight costs can be a significant expense for small businesses, and if not managed properly, they can quickly eat into the company’s bottom line. By controlling freight costs, small businesses can free up funds for other important expenses, such as marketing and product development.
2. Competitive Advantage: Small businesses often operate in highly competitive markets, and controlling freight costs can give them an edge over their competitors. By keeping freight costs low, small businesses can offer their products at more competitive prices, which can help them attract and retain customers.
3. Cash Flow Management: Small businesses often have limited resources and rely heavily on cash flow. By controlling freight costs, businesses can better predict and manage their cash flow, which can help them avoid financial difficulties.
4. Improved Inventory Management: By reducing freight costs, businesses can reduce the amount of inventory they need to carry, which can free up space, reduce carrying costs and improve cash flow.
5. Better Customer Service: Businesses can improve their customer service by controlling their freight costs, as they can offer more flexible shipping options and faster delivery times. This can lead to increased customer satisfaction and loyalty.

Final Thoughts on Managing the Costs of Freight and Shipping

“I never predict freight rates; nobody can do that.”

Soren Skou CEO A.P. Moller-Maersk

For the short term that’s a fair statement. But a more significant observation involves the question, “Are future costs going to go up or down?” The answer is obvious.

Just as rates are expected to rise with inflationary pressures and demand, the same evolutionary predictions should be exercised when managing freight costs. Therefor, periodically evaluating and reevaluating your company’s position on transportation costs is an ongoing process; a critical facet of the jewel that is your company.

Need help managing your freight or shipping needs? Brimich Logistics is here to offer customized solutions guaranteed to move your company forward – contact us today!

What Does Packaging Optimization Mean?

In simple terms, “packaging optimization” is a process that utilizes smart packaging. This refined method of packaging is designed to safely contain, protect and communicate the specific contents of your packaging as your products travel through the various handling processes within the supply chain.

The product’s journey starts with the manufacturer, then may go on to a warehouse or in-store fulfillment centre, and ultimately wind up being delivered at its final destination. This  last mile of delivery could be a consumer’s home, an office building, retailer or other end point.

At each step along the way, there are factors which determine in what condition your products will ultimately arrive. Optimizing your packaging for the rigours of your product’s journey can make all the difference in the world.

Start by Choosing Optimal Packaging Materials

The first step in choosing optimized packaging for your product is in fully understanding its vulnerabilities .This involves going the testing stage (if applicable), then determining the best packaging materials.

Once your product has gone through testing using established protocols for its shipping class, the next task is developing the the proper packaging to help protect the product as it navigates through all supply chain environments.

This packaging system is broken down into three levels:

1. Primary Packaging – The packaging directly in contact with the product itself and is often designed with the “unboxing” experience in mind. Other considerations are product protection and perhaps store display.
2. Secondary Packaging – Packaging that’s just outside of the primary packaging and typically used to create a stock-keeping unit or SKU. Also part of the unboxing experience, this protective layer also helps guard against moisture and humidity.
3. Tertiary Packaging – Referred to as transit or bulk packaging which often forms a group quantity of SKUs. This level of packaging is the final layer used to protect the products in transport, safely and securely, from point A to point B. For example, this could be from a manufacturer’s loading dock to the final point of sale.

How Much Packaging is Just Enough for the Environment and Supply Chain?

In order to save on costs, many products wind up being under-packaged. This results in avoidable damage that sends the product into reverse logistics. This also produces product waste along with associated fees and other costs.

Conversely, there are some products which are over-packaged using far more material than is necessary. This excess is not only wasteful in its own right, but has an impact on our environment. Not just in terms of landfill or limited recycling, but in transportation costs due to size and weight issues. These overages in turn lead to excess fuel and energy consumption, along with higher transportation fees throughout the supply chain.

The sweet spot in optimal packaging should be designed to fit the requirements of your supply chain with these key points in mind:

• The right type and thickness of packaging films or rigid plastics
• Effective thickness and properties of foam or protective packaging
• An appropriate strength and flute of corrugated board used
• An efficient use and amount of winds of stretch wrap
• An efficient use of packaging tape or adhesive in the right location

Optimize Package Design

Whether you’re designing a package from the ground up or updating an existing design, there is value in following best practises within your industry, along with taking cues from consumer feedback.

Some considerations may include using fewer materials or lowering packaging weight. For example, modern packaging materials may include a dissolvable bag-in-container for non-solid or semi-solid products such as cereals. Or a bio-degradable rigid container might offer the right benefits for transport and storage space for other products.

Now with the right packaging and materials selected, it’s on to actually designing and engineering the packaging. Keep in mind this can impact different sections of not only the supply chan, but you own general packaging operations:

• Manufacturing & Operations – Your package design should ideally work within your current manufacturing processes and automation equipment. Additionally, these optimized packaging requirements should enable your systems to run at their optimal speeds.
• Material Vendors – Is your current material vendor able to produce the package to your specifications, and are they in line with your packaging objectives? Upgrading design factors can affect material vendor capabilities, as well as your own manufacturing systems. Therefor, make sure your provider’s equipment capabilities, material competencies and visions for the future are up to the task.
• Supply Chain Costs – Unique or non-standard shapes can impact your transportation expenses. Your packaging is truly optimized when all systems and touch points are maximized – or minimized as in the case of wasted air space. Shipping air, unless it’s absolutely necessary and relevant to the product, is wasteful.

Optimize Product Counts for Better Cost & Efficiency

End-users and customers often dictate the order quantities and case counts – that is, with the exception of the number of hot dogs in a package with respect to the number of hot dog buns  – a mysterious mismatch. Regardless, this demand is true for not only consumer packaged goods (CPG) manufacturers, but B2B manufacturers as well.

Fitting more product on a pallet without compromising product safety can improve your overall cube or product shipping density. This is an important part of transportation optimization especially when you use less-than-truckload (LTL) freight extensively. Similarly, fitting more product on a retail shelf or within storage can also help reduce inventory and storage requirements.

What is the Right Amount of Packaging Protection?

The right level of packaging protection will ultimately mitigate or at least minimize damage during transit or stacking. Effective packaging protection designed for specific products can have a wide array of requirements. For example:

• Protective barriers for pharmaceuticals and food products to help extend and maintain shelf life. This industry-specific packaging protects against environmental damages and penetration from oxygen, moisture or other contaminants.
• Fragile products require additional shock protection. This helps keep products from suffering damage due to mishandling and impacts.

Standardize Your Product Package Designs

Consider standardizing package sizes and dimensions across multiple products. This lets you increase efficiencies by streamlining manufacturing, reducing system changeover times, and improving line utilization. The added benefit is less risk of wastage as excess packaging can be redirected to other products with minimal loss in time, effort and materials.

Build Sustainability in Your Supply Chain

Baking in energy-efficient production will not only help reduce stress on the environment, it can also help your bottom line. Choosing to use energy-efficient machines and forward-thinking packaging materials with lower manufacturing temperature requirements, can produce very real and tangible savings.

Incorporating sustainable practices, recyclable materials and reusable packaging helps keep your packaging agile, adaptive. and generates goodwill towards the public’s growing awareness that environmental problems indeed need to be addressed now more than ever.

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.

Here’s an easy step-by-step guide on how to ship a pallet with your products properly loaded and ready for shipping.

3. Choose the Right Shipping Pallet

• Choose a pallet suitable for a forklift, hand truck, or pallet jack
• Make sure the pallet is strong and free of damage
• Select a pallet that’s at least standard industry size (48” x 40”) box-style

For most freight shipping needs, there are two main pallet types:

Further Tips on How to Secure a Palletized Load

Here are some tips and guidelines for stacking to create a stable, safe and secure load:

Stacking Tips

Column Stacking

In a column stacking pattern, boxes or cartons are stacked in straight columns with no overlapping edges. In most cases, column stacking increases the top-to-bottom compression. For extra load stability, place corrugated pads – load protector pads, between the tiers.

Interlocking stacking

Interlocking stacking is useful if the carton contents are more rigid in nature. Interlocking cartons can also increase stability. With this method, boxes are stacked corner to corner and edge to edge for more strength.

Pallet Loading Tips

Bands

Banding is one of the most common ways of securing the bundled load to the pallet. The key is to keep the banding close to the load. This helps to to control damage, exposure, or breakage.

Small loads that don’t take up the full surface of the pallet should be centered and banded to the closest deck boards of the load’s outer edge to increase stability, not the pallet’s edge.

Load Protectors

Load-protector pads help to prevent damage to the top and bottom layers of your shipment. Protector pads also help to distribute the weight of top-loaded freight.

Load protectors at the bottom help to provide a level surface, plus they offer additional protection from pallet nail heads. Moreover, they also help to keep containers from getting caught up in the pallet board gaps.

Edge Boards

Edge boards, also referred to as angle boards, are an effective way of reducing damage to container edges that make up the load corners. To help unify the load, edge boards should run the full length or depth of the stack and increase vertical stacking strength.

Foam Cushioning

With foam cushioning, density levels can vary. Therefor it’s important make sure the foam you use is dense enough to protect your product. It’s also a good idea to test the cushioning to make sure it will stand up to actual shipping conditions.

Bracing

Rounded items that can roll or shift should be braced on a pallet base that’s forklift-accessible. The greater the shipping weight, the more sturdy the bracing should be.

What to Avoid

Overhangs and Protrusions

Uniformity is key to load safety and stability. Never let the loaded products overhang the vertical limits of the pallet. Not only does this increase the risk of punctures, package tears and product damage, it can also result in a reduction of compression strength by as much as 32 percent.

Pyramid Stacking

Because pyramid stacking doesn’t have a level top load surface, you not only limit the ability to maximize space and save shipping costs through stacking additional pallets, you also run the risk of additional damage through handling.

Common Pallet Shipping Questions

What are the most common pallet sizes? What are standard pallet dimensions?

Due to the scope and breadth of the food industry, the most common pallets used are CBA (Consumer Brands Association) sized pallets with dimensions of 48″ x 40″. In North America, these are considered the standard pallet dimensions.

The next most common pallet sizes are 42″ x 42″ and 48″ x 48″.

How do I pick the right pallet size?

Your required pallet size will depend on what you’re shipping. It will also depend on where you’re shipping it to, and how you plan to load and unload your freight.

A good start is to investigate common shipping procedures and materials used with similar products in your own industry. Because products and package sizes are fairly consistent, this will help you determine the appropriate pallet size.

How Do I choose the right type of pallet for shipping?

Once you have a pallet size in mind, give yourself a budget. As with wooden vs plastic pallets, some pallets are cheaper than others, with wood being the standard option. Depending on quality and material used, some can last longer and others can be easily recycled.

For example, if your products are heavy, you might want to consider a more robust type of pallet.

Additionally, the size and type of pallet you choose should also fit within your industry’s transportation and storage requirements.

Recommended Types of Pallets for LTL Shipping

For typical LTL and FTL shipping purposes, recommended pallets should have the following characteristics:

• Standard wood pallet measuring 40″ x 48″
• Have four-way entry capabilities
• Be relatively new and undamaged
• Sturdy enough to withstand heavy or light loads
• Support the full weight of the packaged products
• Withstand the handling required in the shipping environment
• Have minimal top board spacing to avoid forklift blade impact

Pallet Types to Avoid in LTL & TL Shipping

We don’t recommend these pallets in general:

• Corrugated fiberboard pallets
• Damaged or repaired pallets
• Pallets that are rotten or made of flimsy materials
• Pressed block-style pallets
• Molded pulp pallets
• Be made of materials that are prone to moisture

The reason the above items are not recommended is because these types of pallets and materials tend to lack sturdiness, stiffness, and strength of standard wood pallets.

How much do shipping pallets cost?

Pallet costs will vary depending on what they’re made of, quality of the construction and their size. If you need help determining a pallet that’s a good fit right for your product, business and logistical needs, contact our customer support team.

How can I find or buy shipping pallets?

There are a number of resources you can use to locate and purchase pallets. But keep in mind that if you buy them privately, they may be rejected because they don’t meet the standards of your shipping service.

Your logistics provider will usually have a surplus of suitable, industry approved pallets and help you negotiate effective terms to get your products shipped safely.

How much does shipping a pallet of freight cost?

Because there are so many variables, that’s a hard question to answer effectively. It depends on what you’re shipping, where your shipment is coming from and it’s going to, how much it weighs, and so much more.

To get an accurate idea of the cost for your particular needs call Brimich at 1-855-752-5783 to get a quote today.

How many containers or cartons fit on a pallet?

The number of containers or cartons that can fit on a pallet depends on what the type of product you’re shipping, its overall weight, the size of the pallet, and its stacking configuration.

With a few of these details in mind, you can use this pallet loading calculator to help you see how many items of the same size and weight you’ll be able to put on a single pallet. Keep in mind the calculator only supports containers that are of the same size and dimensions. If you have multiple sized containers, you might want to consider contacting a reliable logistics company to get a quote.

What is the weight of an empty pallet?

The average wooden pallet measuring 48” x 40” will weigh somewhere between 33 and 48 lbs (or 15 and 22 kg).

Some standard pallets weigh as little as 30 lbs, and others up to 70 lbs depending on the density and weight of the  specific material they’re made from.

How much weight can you put on a pallet?

Weight loads for standard pallets can be between 3,700 and 4,600 lbs, or 1680 and 2087 kg. Other factors include pallet capacity, dimensions, type and the material it’s made of.

How high can you stack a pallet?

Generally speaking, the maximum loaded height for a standard-sized pallet shouldn’t be more than 60” or 1.5 meters. Best practices start with the heaviest containers on the bottom and the lightest on top.

Pallets should also be loaded uniformly with straight vertical edges, in other words without leaning to one side or have protrusions beyond its boundaries. This is not only important for the protection of your products, but the safety of the those who load and unload your cargo.

How many pallets fit on an LTL?

Typically, LTL (less-than-truckload) shipments will fit between 1 and 6 pallets.

How many pallets fit in a 53 foot truck?

Assuming it’s a completely filled 53’ truck, a full truckload (FTL or TL) can hold anywhere from 24 to 30 pallets.

In Summary

Knowing how to ship a pallet properly may not be rocket science, but it makes a huge difference in controlling avoidable losses caused by damages and situations.

The overall key thing to keep in mind is safety; safety for both your products and your business’ reputation, and for those who help you move your goods.

If you need help with anything related to shipping your pallets or other logistical needs, give Brimich a call today!

Freight Shipping Transit Time

In freight shipping, transit time refers to how long it will take for a shipment to be delivered from the point of pickup to its final destination.

Depending on the the distance between the two points and the shipping method used, the amount of time can vary greatly. Therefor it’s a good idea to get an estimate from a preferred logistics company before booking a shipment.

Less-than-truckloa (LTL) shipping is an excellent option for shippers whose loads are less than a full truckload but too big for parcel post. But how long will it take for your shipment to arrive?

Shipping times you can expect by transit mode

• Full Truckload (TL or FTL) — With the exception of expedited shipments, full truckload is normally the fastest and most cost-effective way to ship by road. Without having to transfer the freight, the truck travels directly to the load’s destination.
• Less-than-truckload (LTL) — A common alternative and cost-effective method of moving smaller shipments. Because different shipments are aggregated into a single load, the freight must periodically stop for loading and unloading. This leads to increased freight transit times and can take slightly longer than FTL. To help determine what mode may work best for you, try this LTL transit time calculator to estimate shipping time for your freight.
• Intermodal Shipping, or rail shipments — As infrastructure improves, freight transit time by rail becomes more reliable. When averaged out, shipping times by rail is comparable to over-the-road shipping, plus it’s less prone to problems common to road-based delivery.

Delivery options for time-sensitive shipments

When standard transit time isn’t fast enough, or your freight needs to be delivered on a specific day or at a specific time, time-critical solutions can provide your best options. Keep in mind that faster freight delivery is usually associated with higher fees:

• Expedited Ground – the fastest ground shipping. With this option the freight never stops moving and is delivered as quickly as possible.
• Time Definite Service – ensures your freight is delivered by a certain day or time.
• Domestic Air – this solution offers the fastest shipping and includes multiple options to expedite your freight: next flight out, second day, deferred and charter. Most of these options are faster than ground, making air the ideal choice for critical shipments that need to reach their destination quickly.

LTL Shipping Times

Because of the nature of LTL shipping, times can vary widely depending on the carrier, the number of stops required and preferred routes. Here’s a more in-depth look at the major factors:

• Required Route: Logistically, shipments to less populated areas may take longer. With fewer trucks in remote areas, your shipment may have to wait for a full truckload before it continues on its route. As a rough example, freight being shipped from the coast to remote midwest points may take between 7 and 10 business days.
• Total Distance: When shipping freight over ground, the overall distance is the largest factor affecting shipping times. Drivers and trucks are limited in the number of miles they can travel each day. Speed limits, traffic laws and personal time behind the wheel all have bearing on the time a shipment will take. as well as regulations governing the time an individual driver can be behind the wheel each day. Typically, intrastate moves take 1-2 business days to arrive, regional shipments may take 2-4 business days, and cross-country shipments may take 4-6 business days.
• Operator Availability: As we’ve seen in the last few years, the number of operators has been less than what the industry could make use of. Due a shortage of qualified drivers and the recent conditions imposed by the pandemic, shipping times have risen sharply.
• Number of transfers: While full truckload (FTL) shipments generally take the shortest possible distance from point A to point B, LTL shipments may make several stops and transfers along the way. Your shipment is likely to first head to a regional terminal, where it will be taken off the first truck and sorted onto another truck headed towards its final destination. Depending on the carrier’s routes, this may happen more than once. Sometimes, shipments are even transferred between carriers, especially on cross-country trips. The more stops and transfers your load makes, the longer it will take to get to its destination.
• Weather and unexpected delays: Bad weather, poor road conditions, traffic and mechanical breakdowns can all cause unexpected delays in ground freight shipments. These delays can be difficult to make up, because drivers are still subject to the same traffic laws and regulations—chances are, they were already going as fast as possible for their route.

How to Reduce LTL Shipping Times

Because of the factors that influence freight shipping, LTL is usually best for shipments that don’t depend on hard delivery timelines. Still, there are ways to speed up your shipments and reduce your LTL shipping times:

• Choose the right carrier to begin with. As with any service-based business, different carriers can quote dramatically different delivery estimates. Quotes will depend on how much coverage they have for the given area, plus how many transfers will need to be made to get your shipment to its destination. You may find it’s possible to get a better quote from a regional carrier if you’re shipping intrastate or regionally. And they may provide better coverage for the same route. Of course, when freight shipping times are critical, it’s always best practice to shop around.
• Consider partnering with a 3PL company. Third-party logistics companies can be the perfect choice if you have ore complex LTL shipping needs. For example, a fully capable 3PL company will employ the latest software to help determine optimal delivery times and control costs. By using contacts throughout their preferred carriers network, they effectively coordinate shipments that can require transfers from one regional carrier to another.
• Ask about freight delivery guarantees. For an extra fee, some carriers will offer guaranteed or expedited delivery. If your freight delivery times are crucial, it might be worth it to find a carrier who offers this service.
• Help mitigate damage with proper packaging. Carefully organize and pack your shipment for transit before it gets on a truck, and make sure your shipments properly fit loadable and stackable pallets. Doing so will help ensure your products have a smooth journey to their destination.

Understanding LTL shipping times will help you make the right choice for your ground shipment. A little research can help you reduce LTL shipping times and get your load where it needs to go on time.

Sea Freight Transit Times

When it comes to shipping by sea, there’s a wide range in shipping times due to the sheer number of ways to ship, plus the endless combinations of destinations.

Overall, there are about 107,000 various UN Codes for Trade and Transport Locations (UN/LOCODE) spread across 249 listed countries and territories.

Therefor the time it takes to ship freight from port to port by sea will be greatly affected by the geographic distance between ports.

Let Brimich Help You Get the Best Freight Delivery Times

Brimich Logistics is a team of professionals always available to learn the specifics of your business, and help you choose the best shipping method for your freight. Contact Brimich today to get end-to-end visibility for every step of your freight’s journey along the way.

Whether you’re looking to brush up on your freight shipping and logistics vocabulary, or just looking for information as you get your feet wet,  this guide is for you. Here’s a few of the most common freight shipping acronyms, what they stand for, and the situations where you might find them.

Acronyms Used in Shipping Options

Before you send an RFQ (Request for Quote), you should first understand what type of carrier you’ll need. Here are some of the more common freight carrier options:

• TL – full truckload
  Often the most cost-effective method of shipping your products – provided you have enough to fill the entire truck. When you ship TL your freight goes straight to its destination via long haul. Unlike LTL shipments, TL shipments do not transfer to other trucks or stop at any terminals mid-haul.
• PTL – partial truckload
  If you do not have enough product to ship TL, PTL is the next step down. Similar to TL shipping, your products will typically stay on one truck from its pick up point to final destination – but is not accessible during the trip.
• LTL – less than truckload (or less than load)
  For many businesses small and large LTL transportation allows you to ship minimal quantities. But for this method to be effective for all parties, the load must consist of a minimum of 1-6 pallets or weigh under 4,000 pounds. When shipping LTL, your items are combined with shipments from other shippers, plus they may be transferred one or more times before they reach their final destination.
• STL – shared truckload
  The STL method of shipping is a hybrid whereby multiple shipments can be combined onto one truck moving in the same direction. This intent is to bypass the hub and spoke system thereby reducing the number of stops. This helps avoid damage caused through the extra handling of a shipper’s freight.

Typical Freight Acronyms

Once you have a freight quote form in front of you, you may find a number of unfamiliar associated acronyms. In order to communicate clearly and efficiently with your logistics partner, you’ll need to be familiar with these common terms plus a few more:

• FAK – Freight of all Kinds
  The term FAK is used to refer to a pooling of different products into one load for the purpose simplification of rating and pricing.
• BOL – Bill of Lading
  As one of the most important documents associated with moving your goods, a BOL is a detailed, legally binding contract between a shipper and a freight carrier. Every BOL includes details that define the names and addresses of the shipper and carrier, shipment description, packaging details, expected pickup date, freight class, and hazardous material designations.
• NMFC – National Motor Freight Classification
  NMFC is a series of classification codes assigned to commodities by the National Motor Freight Traffic Association (NMFTA). NMFTA created the National Motor Freight Classification tariff to help classify all commodities into 18 different freight classes determined by four factors; shipment density, stow-ability, handling, and liability.
• EDI – Electronic Data Interchange
  At the basic level, EDI is the business-to-business interconnection of computers for the rapid exchange of documents. In the freight shipping industry, this would be items like bills of lading, invoices and tracking information.
• FOB – Free on Board
  FOB is a term used to indicate when ownership and liability of goods is transferred from seller to buyer. When used with a physical location such as a shipping port, FOB specifies which party assumes responsibility for the payment of freight charges, and at what exact point title for the shipment passes from seller to the buyer.

• GVW – Gross Vehicle Weight
  Because weight is such an important factor in freight transportation, GVW is the term used to quantify the total weight of the transport vehicle and its cargo. Likewise, GVWR, or Gross Vehicle Weight Rating is often used to express the maximum operating weight of a vehicle as specified by the manufacturer.
• LG – Lift Gate
  A lift gate is a powered tailgate used to lift pallets from ground level to the same level of a truck trailer deck. Many LTL truck fleets have lift gates as do smaller shipper locations with no loading docks.
• DV – Declared Value
  Declared value refers to the monetary value of a shipment as reported by you, the shipper. Being an extremely important declaration, it serves as a disclosure used to determine shipping charges and as a tool to control carrier liability for damage and loss.

Other Terms Used in Freight Management

As the saying goes, “But wait, there’s more!”. The acronyms don’t stop there. Because documentation and performance are an important part of the evolving transportation and logistics industry, you could benefit from a little familiarity with them. Here are a few important terms worth knowing:

• POD – Proof of Delivery / Port of Discharge / Port of Destination
  Having a number of different meanings within the transportation industry, how this term is used depends on its context.
  The port of discharge or destination implies where the container is correspondingly loaded or unloaded from a vessel and picked up by the consignee.
  Proof of Delivery is the paperwork authorized by the consignee indicating the receipt of a load. In this context, a BOL can often double as a POD upon delivery and must be signed for the carrier to get paid.
• CNOR / CNEE – Consignor / Consignee
  More like contractions rather than acronyms, these are fairly straight forward: a CNOR or consigner is the entity sending a shipment, whereas a CNEE or consignee is the entity receiving a shipment.
• OS&D Report – Overage, Shortage, and Damage
  Mistakes and problems do happen therefor they must be accounted for. For instance, a CNEE can file an OS&D report if there are issues with a shipment they received. As implied, an overage occurs when the recipient gets more product than ordered, while a shortage is the opposite. Shipment items that are delivered unusable or unsellable are considered damaged.
• TONU – Truck Ordered but Not Used
  A common result of miscommunication (hence the need for this article) or happenstance, a truck arrives to pick up a shipment, but the load isn’t ready – that’s TONU. If it’s due to your error, you may find yourself having to pay a fine and compensate the carrier for misuse of their time and resources.

As you can see, it’s extremely important to be familiar with these terms and how they apply to your business. It would be wise to take a few minutes and learn them so you get accustomed to seeing and hearing them in context throughout your shipping processes.