As your business grows and stock levels become too cumbersome to manage in-house, outsourcing makes more and more sense. But exactly how does 3PL inventory management help?

As a small to medium-sized business, you’re most likely already familiar with the in and outs of managing inventory as they pertain to you directly. That is, working with rising and falling stock levels, purchase orders, sales orders, billing, invoicing etc.

But what happens when your ability to effectively manage the intricacies of these daily operations becomes compromised due to growth factors? You may not have the same resources to run a dedicated division as larger companies do.

The Importance of 3PL Inventory Management

This is where 3PL Inventory Management fills the need as a financially efficient option that manages inventory for you. By relieving the strain of trying to fully control all aspects of inventory management of a growing company, resources are freed up which lets you concentrate more on the business of building the business.

With the help of outsourced 3PL management, your company maintains balance by identifying what products need to be ordered and when without over-investing in stock.

3PL Inventory Management Services and Benefits

As mentioned, the size and demands of your business will dictate if you need 3PL inventory management. If you have inventory sitting in a warehouse unsold because of operational issues, you have cash resources tied up that could be used to outsource and resolve the same problem, and move you forward at the same time.

A few of the more common situations for retaining 3PL services include:

• You want to expand your company into multiple regions
• The time and cost of in-house inventory management are excessive
• You want to control overhead as you scale up your business
• You want to leverage additional data for insights that make better decisions
• You want to propel growth instead of concentrating on operations

The benefits of 3PL inventory management can be substantive and transformative for a business. By partnering with a 3PL provider who has the resources beyond your current capabilities, you gain an edge over smaller competitors and extend your business’ functionality.

Operational Scalability

Contractually speaking, most 3PL inventory management agreements are based on a pay-as-you-go business model. This makes it easier for your company to scale operations without having to invest large capital sums and suffer additional carrying charges.

These freed up resources also allow you to effectively react to seasonal demand fluctuations and get accurate billing for all transactions.

Expanded Materials Handling and Labour Capabilities

Playing a key role in being able to help you manage inventory, value added services such as packaging, labelling, co-packing and cross-docking are major benefits offered by many 3PLs. By outsourcing specific labour requirements to an experienced third party, your own labour force in effect multiples without the added burden of having to manage the employees yourself.

Real-Time Access to Stock Levels

Many third-party logistics partners offer a managed portal for monitoring the flow of their goods and stock levels in real time. With access to live data and twenty-four-seven transparency, it’s much easier to monitor stock levels and take action when they become excessive or run low.

Furthermore, inventory management software and WMS feedback can supply additional services such as generating client reports and deliver shipping notifications.

A Bigger, Better Distribution Network

Gaining a foothold in other regions or countries requires an established logistics network. This is where your 3PL partner shines through with brokerage connections and carrier relationships.

Your 3PL partner will also have access to the extra warehouse space you need, often of various types such as climate controlled, refrigerated, or even specialty storage depending on your needs.

What is a 3PL Inventory System?

A 3PL inventory system is a cost effective method of outsourcing internal competencies such as transportation, warehousing, packaging and many other services. Combined with a managed warehousing services, offloading inventory management to a third party is an effective solution when you need to make room for expansion.

3PL Inventory Management Software

To help track and trace the flow of inventory, a Warehouse Management System, or WMS software system is employed to track and manage nearly all warehouse activities.

Top 3PL Inventory Management Companies

3PL companies come in various sizes from local or specialized to regional or internationally recognized operations. Some of these major players are tightly focused on certain market sectors and include such names as:

• ShipBob
• FedEx
• DHL Supply Chain
• C.H. Robinson
• Ryder

FAQs

How do I find a good 3PL company for inventory management?

Talk to 3PL clients to get first-hand feedback. Compare a few different 3PL services and choose the better ones then determine whether a specific company suits these shipping and inventory management needs.

How much does 3PL inventory management cost?

The cost 3PL inventory management will be directly related to the specific needs of your company. Some 3PL companies offer a per-hour rate which may cost roughly $30-$70 an hour USD. Others may charge a flat rate anywhere between $70-$300 USD depending on your specific inventory management requirements.

How much 3PL space do I need?

A good 3PL will help you determine the appropriate amount of space you require now, and help plan for further space as you need it. Usually an estimate based on these metrics will be provided to you by the 3PL inventory management service then negotiated for agreement.

How to Find the Best 3PL to Help Manage Your Inventory

A better 3PL partner that is nimble enough to develop custom solutions tailored to your business. They will also have the space, staffing and equipment in place and aligned with your chosen market. Other key factors to take into account include compatibility with your organization’s technology stack, details on warehousing capabilities and locations, automation features, value-added services, pricing and vision for the future.

Of course, one of the best ways to find an ideal 3PL partner is to get first hand feedback from existing clients. As you know, qualified referrals go a long way to making better decisions.

Furthermore, look for a 3PL partner that is growing aggressively. Regardless the scarcity of prime real estate, some 3PL providers are being proactive by actively growing their operational footprint. Brimich Logistics and Packaging for instance, has recently acquired regional warehousing out of Etobicoke Ontario in order to support the growing inventory and distribution needs of its customers.

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

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

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

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

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

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

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

The Pick and Pack Fulfilment Service at Work

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

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

Types of Picking

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

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

Specifics of Packing

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

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

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

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

Pick And Pack Features And Benefits

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

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

Features of a good picking service include:

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

Benefits of integrating with a pick and pack service include:

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

There is an Order Fulfillment Opportunity For Every Business

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

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

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

Types of businesses that utilize pick and pack:

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

Pick And Pack Warehouse Services Help Create a Complete Fulfillment Solution

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

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

Shipping processes can make or break a business, no matter the size. Keeping your shipping systems on track as you grow will reward you with a loyal customer base and the best kind of business – repeat business. Conversely, too many errors in your shipping will destroy the customer experience and leave lasting negative effects.

In this post, we cover the key points of successful shipping processes, highlight where shipping errors tend to occur and examine areas you might improve.

Common Shipping Errors to Be Aware Of

Every business strives for trouble-free shipping processes, but common errors do occur. Knowing exactly what the specific problems are and keeping them in mind will help curb their potential damage before they become a significant issue:

• Items Don’t Arrive on Time – Delivering on time according to customer expectations is a must in and business. If you don’t, customers and clients will be happy to seek alternatives and do business elsewhere. Best practices are to state order processing and shipping times when you take an order. It’s also a good idea to provide your customers with source of information should they experience a problem that is beyond your control.
  

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• Wrong Items Sent – Though less of an issue these days due to improved shipment tracking, it does happen in every business and is almost always the result of human error. For instance, two items may be very similar leading to the wrong item being picked. The item could also be in the wrong warehouse location. Either way, it’s an error that will cost you as you need to retrieve the incorrect item and send out a replacement.
  

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• Wrong Quantity Sent – This tends to happen more frequently with businesses that sell bundles or packs of products. Multi-pack items often cause issues like this, especially if they need to be broken down before being sent out. large bundles of multiple single products can also cause problems. Though send the wrong quantity may not have as severe an affect as sending the wrong item entirely, you’ll still have to deal with the indirect cost of having to manage and adjust your stock levels for accuracy.
  

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• Stock Levels are Incorrect – As mentioned, inaccurate stock levels will produce their own headaches. Mismanaged inventory levels can cause problems with missed or late deliveries. Product returns are one of the leading causes of stocking problems and can lead you selling items you don’t have. If you have multiple warehouse locations, keeping your stock levels accurate and up to date will help to keep related problems to a minimum.
  

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• Items Sent to the Wrong Address – It’s common for online stores to ask there are separate delivery and billing addresses before an order is processed. For most individuals, these are the same. Shipping errors can also occur if the item is a gift going to a completely different address. For large shipments, a Bill of Lading (BOL) is supposed to have all addressing information clearly represented to ensure accurate delivery. Again however, errors do occur therefor it’s a very good idea to whenever possible, double check shipping information is in fact correct beforehand.

How to Prevent Shipping Errors

It’s a fact, shipping errors will occur in every business. The key to preventing shipping errors, and keep your customers happy in the process, is to have a strategy in place that both reduces and mitigates the problems from starting in the first place. Here are 10 tips for taking control over shipping errors.

1. Partner with Reliable Shipping Services

Even with the perfect in-house shipping system, some shipping errors can be out of your control. Don’t settle for a delivery service or 3pl provider that will simply “get the job done”. Shop around to ensure you’re getting the best price and service for both you and your customers.

2. Implement an Automated Warehouse System

Several technologies will allow you to automate your warehouse. These include RFID tagging, robotics, cloud computing and on-demand warehousing. Each of these, or useful combination will improve the accuracy of your inventory flow, increase overall efficiency and in some cases, even help to reduce your carbon footprint.

Warehouse Management System

3. Leverage an End-to-End Shipment Tracking Service

Occasionally, deliveries will wind up in never-never land – never to be seen again. Although you might be able to claim on insurance for these missing items, this doesn’t help the customer and adds to your inventory shrinkage. If at all possible possible, employ an end-to-end tracking service to improve product delivery accountability. By sharing the tracking details with your customer, they can see where their order is at all times and make sure they’re available to receive it.

4. Conduct Regular Product and Inventory Location Checks

With picking and stock management, inventory that’s spread across multiple warehouse locations can be the source of significant issues. By choosing warehouses that are strategically located and conducting quarterly reviews, the more accurate stock levels that result can help reduce errors and speed up pick times.

5. Double-Check Order Information

When it comes to shipping errors, inaccurate order information is the seed of all bad things. If you take orders over the phone, the best practice is to repeat back the order details to the customer to verify their accuracy. With online orders, it’s best to use an address validation service to check that the address does indeed exist and has been completed correctly. This will save you sending shipments to a non-existent or incorrect address.

6. Offer Focused Shipping Options

Offering too many shipping methods also increases the likelihood of errors through sheer numbers. In a similar way, they’ll severely complicate matters when you have to account for express and international shipping. As a general rule, avoid using more than three or four shipping methods.

7. Be Smart About Your Packaging

Compared to having to make good on a delivery due to poor packaging, the relatively small cost of a sturdier box or bubble wrap filler is well worth the extra few cents invested. Without robust packaging, not only do you run the risk of having to re-ship the item, you can’t sell a broken product at it’s full margin. If you want to reduce returns, choose to use the most appropriate packing that helps it arrive undamaged.

8. Create a Double-Check Picking System

For full accuracy, you should realize a double-check system at some point in your pick, pack and ship process. You can employ the same person to do it in picking, or engage someone further down the line in packing. Either way, the extra effort will prevent the majority of picking errors.

9. Use a Barcode Scanner

A surefire way to boost your picking accuracy, barcode scanners tell your pick team if they’re picking the right product and in the right quantities. Many scanners also have the capability to update your inventory in real time after a product has been picked thus helping with inventory management accuracy too.

10. Apply a Thorough Returns Process

Returns are a natural part of any product-based businesses. Without a reasonable process of handling them quickly and efficiently, you’re setting yourself up for major headaches. A good returns process will account for stock levels, human resources and have a buffer to account for things like associated packaging. The aim is to get products back into stock, or at least accounted for, and the right product shipped as soon as possible.

Think of Errors as Opportunities

Building and maintaining an accurate shipping process is vital for any business. Time should be spent planning and monitoring each stage for improvements that can be made. Errors may and probably will still occur, but learning from them as to why and when they happen goes a long way towards improving your systems.

Customers care about reducing their carbon footprint. Now’s the time for shippers to invest in the trend towards carbon-neutral shipping by doing the right thing for their customers, and the planet.

There’s little doubt carbon emissions are a leading cause of the climate crisis and the possible repercussions we current face. In terms of combating the problem through the global community, many industries are being encouraged to look for ways to reduce these emissions in attempt to slow down the damage.

In the logistics industry, shipping methods and packaging materials produce a high volume of black carbon which affects the carbon dioxide in the air.

In an effort to reduce these carbon emissions in the shipping industry, a growing number of brands are looking at more sustainable practices, including the option of carbon-neutral shipping.

The focus here will be to learn what carbon-neutral shipping is, why it’s important, and how you as a shipper can reduce your business’ carbon emissions.

What is Carbon-Neutral Shipping?

The term “Carbon-neutral” refers to practices that, when properly executed, produce a net-zero amount of carbon dioxide. The aim of carbon-neutral shipping is to reduce the carbon footprint associated with shipping products.

As we now know, carbon-dioxide is one of the leading reasons for climate change. Switching to carbon-neutral shipping brings us one step closer to reducing our global carbon footprint, and protecting the environment.

In practice, achieving a neutral carbon balance is a matter of applying benchmarks and measuring efforts that improve results.

For example, solutions such as government sanctioned programs monitor segments of the supply chain for energy efficiency. One such program, SmartWay Transportation Partnership partners with members of the supply chain and holds them accountable for being environmentally responsible.

Consumers do care about their carbon footprint

With climate change issues worsening and continually making headlines, more consumers are turning to online shopping. Moreover, consumers are also making decisions that favour brands focused on efforts to protect the environment, including their ability to reduce their carbon footprint.

Through their own research, consumers are becoming more aware of the impact carbon has on the environment. And when given the choice, informed consumers are more likely to opt in to sustainable shipping solutions when making a purchase.

What about carbon offset shipping?

Until the time comes when all carriers transport packages via more eco-friendly ways, such as the SmartWay program, brands need to make decisions that benefit the Earth and future generations.

Here are some eco-friendly ways you can help your own company:

• Use green logistics services, such as Brimich, that are forward-thinking in terms of environmental responsibility by and actively reducing their own carbon footprint.
• Use your own eco-friendly packaging products such as recycled kraft paper as dunnage to protect your packages during transportation.
• If you don’t have a 3PL partner, you can try to distribute your inventory across multiple fulfillment center locations. By storing inventory closer to your customers, you optimize last-mile delivery which can save on shipping costs and fuel.

How to Reduce Carbon Emissions in Shipping

Along with carbon-neutrality, it’s important to focus on reducing emissions throughout the entire supply chain. Let’s look at a few different ways your business can reduce carbon emissions during the shipping process.

Use recycled & recyclable packing materials

As online shopping becomes more and more popular, packing materials used to pack and ship orders are likewise becoming more of customer’s responsibility as disposable waste. As such, eco-friendly packaging can help minimize non-recyclable waste and add a sustainable practice to your business.

For some businesses, your brand’s packaging is almost as important as your products – environmentally friendly packaging reflects the ideals of your company. Packing materials should not only ensure safe delivery, but should also focus on sustainably.

With increased demand for change, eco-friendly packaging options for your business are becoming more available in an ever-widening range of materials.:

Best Practices To Avoid Damaged Freight

Nothing is worse than having your goods damaged in transit. Let’s be sure your own packaging system isn’t to blame right from the start.

There’s no doubt about the amount of frustration everyone in the supply chain experiences when a shipment arrives damaged at its final destination.

Whether it’s the end-user, or the retailer who was hoping to sell a now unsalable product to a valued customer, freight damage is not only a pain for you, but can cause significant losses to your company.

The real cost of damaged freight is in lost profits, increased insurance rates and eroded relationships with customers can be avoided.

To ensure you provide the best possible protection for your goods at the start of their journey, let’s look at the best practices on how to avoid damaged freight.

1. Start With Appropriate Packaging

In order to insulate yourself from the being the source of inevitable shipping claims, correct packaging is your first critical step.

It may be the smallest cost in your supply chain, but it can have a major impact. Shortcutting on packaging can have a trickle-down effect on your more expensive costs like shipping, warehousing, and loss prevention.

Choose the right packaging material and correct size, large enough to hold the contents, and with additional necessary impact protection. Packaging that’s uniform and consistent throughout your business also makes it easy to load and stack on pallets.

Never use compromised packaging with dents, holes, tears, or water damage. A damaged container almost always means damaged contents. And stay within the maximum weight per package. You can usually find recommended weight information printed on the box maker’s certificate.

It’s also important to coordinate your packages with the correct pallet size. Adhering to matching dimensions for stacking and movement will reduce damage the boxes.

2. Consider Impact Protection

Every package should include some form of impact protection, especially for packages containing liquids, glass or otherwise fragile materials. Impact protection can mean the difference between a hassle-free shipment and a lengthy claims process.

Envelops lined with bubble wrap can provide extra cushioning for such items but the outside package will likely be soft. Therefor it’s a good idea to provide an extra layer of packaging: a hard, outer package with the smaller, impact-resistant package inside. Again, another consideration is how these packages will be arranged when palletized.

Styrofoam has been a go-to packaging material for years but comes at a risk to the environment. For a greener shipping experience, better choices are cardboard, paper, bubble wrap, biodegradable plastics, and items made from cornstarch.

3. Use Better Quality Adhesives

One of the top reasons for damaged goods is incorrectly sealing packages. Seal with strong tape that is at least two inches in width.

Better products would include pressure-sensitive plastic, water-activated reinforced tape, or water-activated paper tape. These products are strong and durable, plus they’ll hold up against potential spills and water exposure.

Avoid using typical retail products like cellophane tape, masking tape, or string, which break and rip easily.

4. Load the Trailer Efficiently

Loading a trailer properly can be considered an art form – one that has your best interests at stake.

Weight must be evenly distributed on pallets. Always stack one “tower” with the pallets or packages of the same dimensions to maintain uniformity and stability.

To avoid the crush of gravity, every three layers should have a reinforcing sheet of cardboard or similar material to help distribute weight and prevent downward-pull breakage.

Since empty space can lead to shifting and breakage, pallets and packages should be packed as close together as is reasonable.

Use self-protective techniques such as stacking lighter cargo on top of heavier cargo, and putting dry goods on top of liquid contents to prevent additional damage from leakage.

5. Label Everything

Labels are an often-overlooked yet very important part of preventing freight damage. They help shippers make correct pallet-packing decisions during the shipping process.

Without accurate identification, it’s impossible to determine a product’s fragility or durability from simply a seller’s brand or name. A label should indicate the content’s ability to handle added weight.

This may include an indicator that the contents are fragile, heavy or flammable, or declare the amount of weight a box or package can withstand before being crushed.

Labels should be bright, easily identified, and relatively limited to avoid confusion. Unless required by the carrier, multiple labels should not be used.

In the case of mislabeled packages, the incorrect label removed or marked out clearly. The correct label should also be free of stains or other damage.

6. Consider Using a 3PL Partner

If you typically ship LTL freight, packaging is even more important. LTL shipments move from hub to hub, requiring extra handling, loading and unloading more often than just traditional A to B full-truckload transactions.

A good working partnership with an experienced 3PL partner means they will assist in all aspects of making your shipping experience as easy and carefree as possible.

This includes analyzing your current packaging, giving solid advice on how to improve for less damage, and properly utilize space. This helps to make sure your freight is ideal for the carriers ensuring your rates don’t increase due to ‘bad freight.’

7. Create A Freight Plan

For any reoccurring process, having a detailed plan to refer to is always a best practice. It’s no different with your freight packaging.

First, study your current packaging practices to ensure they are at peak efficiency. Keep in mind the use of impact protection as well as consolidation methods.

Next, record your best practices on how your goods get out the door safely and efficiently. Everything from from packaging and loading pallets to loading the trailer.

Once you have these elements recorded, you can build a freight plan that outlines the exact processes, Standard Operating Procedures (SOP), to be followed each time. This helps warehouse employees know exactly how things should be done for maximum productivity.

Make sure to include assessing your claims using specific metrics. Over a year, continuous damages can be a huge hit on your bottom line. Find out exactly what could be causing damages then take the necessary steps to address and fix them.

Less Freight Damage Equals More in the Bottom Line

Losses through freight damage are the single highest cost to a transportation department. Focusing on training your employees with a solid freight plan can help you avoid damaged freight at the source and ensure better relationships with your clients.

By using appropriate and thorough shipping processes you can also see a major improvement to your profit margin.

With continuing evolution of the supply chain, customer expectations of fast deliveries right to their door are changing as well.

Thanks to successful models developed by Amazon and eBay, customers are not only comfortable, but prefer to shop online – especially in a compromised environment due to a pandemic.

Because of this shift in how customer’s view shipping, getting your products from A to B, or from the factory to their door is more critical than ever.

Of course your company is committed to excellence and customer satisfaction – that’s a given. Therefor, awareness of the most common shipping mistakes just might help you avoid those awkward moments when a problem does need to be explained.

Mistake #1: Listing the Wrong Address

It seems obvious enough to avoid, but it happens all the time, and at many different levels. It’s a stupid mistake that can cost you dearly and delay your shipment arriving on time.

If you list the wrong address, or if it’s entered incorrectly for you – thanks autofill, your delivery will end up at the wrong place. As a result, it’ll have to be tracked down and re-routed to the right address.

This costs time and resources in re-routing fees, missed deadlines and most unfortunately, unhappy customers.

Mistake #2: Improper Packaging

Sketchy packaging means damaged freight, which means unhappy customers and again, higher costs.

According to experts, the structural integrity of most any shipping container suffers significant break-down over the course of a single journey; and that’s for boxes that are correctly packed and sized.

When the package is NOT sized or sized correctly, the potential for damage rises exponentially. With the amount of time and care you put into creating your fantastic product, why would you risk all that work with inappropriate shipping boxes or using boxes with a sloppy fit?

Of course different products require varying amounts of care and protection, much of which depending on an item’s size, weight, and fragility.

Even with the right packaging, make sure that your goods are secured properly to their pallet: not filled with overhanging packages. Instead, column-stack or interlock-stack goods. Make sure they’re secured with stretch wrap and bands along with cushioning to increase shock absorption, strength, and stability.

A conversation with a preferred carrier will go a long way, and a little extra time is worth the cost of making sure your goods arrive intact and in good condition.

Mistake #3: Bill Of Lading (BOL) Inaccuracies

The key document required for every freight shipment – The Bill of Lading, one of the essential shipping terms to be familiar with, is a legally binding document giving both the carrier and the driver all the details to necessary to process and invoice the freight accurately.

The BOL includes:

• The date of the shipment
• The number of units in the shipment
• The exact weight of shipment
• The Shipper’s and Consignee’s full names and addresses
• The Freight classification for the items being shipped
• Type of packaging
• The declared value of goods
• A description of items being shipped: name and material of manufacture
• A Purchase Order or special account numbers used between businesses for tracking
• Special instructions for the carrier to ensure prompt delivery – such as closing times
• If necessary, a note regarding potentially hazardous materials

Considering the amount of specific information that must be documented, it’s not uncommon for shippers to use the wrong commodity description; enter the wrong piece count; notify party; or fail to read the terms and conditions of the bill of lading just to name a few.

Mistakes like these can be extremely costly and easily avoided by carefully filling out the information. Engaging the help of someone to double-check also goes a long way to ensuring its accuracy.

Going the extra mile may seem unnecessary, but you should remind yourself what’s at stake when things aren’t 100% accurate – your products, and you business’ reputation.

Mistake #4: Incorrect Weight or Freight Class Listing

Yes, it is part of the BOL, but it’s important enough to have its own listing because improperly listed freight class or weight can be a serious and costly mistake.

If you try to guess your shipment’s weight without the aid of a weigh station, you will inevitably receive additional fees – the same goes for improper freight class.

Because a lower class is associated with a lower price, shippers sometimes try to list their shipment in the lowest possible class. But if they’re incorrect, the reclassification fee will be much higher than the margin from one class to another.

This may not seem like a big deal to some, but if you’re shipping hundreds or thousands of freight loads a year, those additional fees can add up fast. Not to mention the damage it does to a reputation.

Mistake #5: No Freight Insurance

In order to cut costs, shippers may opt to avoid insurance. It may be cheaper in the short run, but the law of averages will come back to bite you.

The simple frequency of continuous shipping over time will inevitably lead to damage of one kind or another. It may be it an overturned truck, theft, natural disasters, an accident, or a host of other problems capable of ruining a shipment.

Human error has to be taken into consideration. Plus the likelihood of a mistake occurring increases with travel distance and package handling.

The relatively small price of insuring the goods saves you from worrying about the inevitable mishaps that are bound to happen over time, and save you from what could be financially crippling replacement costs of an entire shipment.

Mistake #6: Not Palletizing

Palletizing takes time and effort, but it’s far better than having a loose stack of packages free to shift around while on route and get damaged.

Furthermore, most LTL companies won’t allow you to ship without using a pallet. If you don’t, they’ll palletize your goods and pass the cost of doing so on to you. While this can be negotiable point, it’s far less expensive to do it yourself.

Mistake #7: Overpaying for Freight

This last “mistake” may seem obvious, but it’s one mistake made far too frequently.

Working with a trusted 3PL partner is one of the best ways to avoid the mistakes listed, and more, and keep your freight costs low at the same time.

An experienced 3PL partner audits your freight invoices to ensure your company is paying the correct amount for your shipments. If in case you are overpaying, they’ll work directly with your preferred carriers to provide accurate pricing, or correct other issues.

One of the most crucial aspects of logistics is the packaging of goods. Packaging materials provide much-needed security for the items stored inside, and carton boxes are among the most popular packaging materials. The strength of these carton boxes is based on the flute.

Flute refers to the material contained between liner boards of the carton box. The construction of the flute helps to make the carton more durable and able to withstand more pressure. It affects how easily the box dents and the height the boxes can be stacked for shipping.

How thick is flute corrugated?

The thickness of the flute is essential in determining how sturdy the carton box or shipping container will be. Most flutes found in the packaging of products made by a standard flute lamination machine is around 0.25 mm in thickness.

This thickness can vary depending on the product being packaged and the specific requirements of the client. However, most clients will want to buy ready-made packaging materials, and most ready-made packaging utilizes a standard flute lamination machine.

What is the difference between E-flute and B-flute?

1. The major difference between the E-flute and B-flute is the number of flutes per square meter. This number determines the strength of the box and its printability. While generally, E-flutes have more flutes per square meter, they are thinner in size. This gives them more storage space at the expense of strength. These types of flutes fold easily and can become distorted quickly. Additionally, they are the best to print on, as their size allows them to roll through printers easily.
2. B-flute packaging is more suited to carrying heavier products or goods. These type of cartons contain fewer flutes per square meter, but the largest arch size, which adds to their strength at the expense of space. The thickness of the flute limits the space in the cartons; B-flutes are twice the thickness of E-flutes. B-flutes are also less suited to printing. All that matters when it comes to them is capacity and strength.

What is the strongest type of cardboard?

The strongest type of cardboard happens to be corrugated cardboard. Its strength is owed to the fact that it contains larger flutes. These larger flutes contribute to making the corrugated cardboard boxes sturdier and allow them to stack higher without bending. For the most durable type of cardboard, corrugated cardboard is the go-to option.

What is take up factor in corrugated cardboard?

Take up refers to the pressure that a corrugated box can withstand with other similar boxes stacked on top of it. It is directly related to the material used in making the corrugated box, the number of flutes, and their size. Boxes with B-flute are known to have a better take up ratio compared to boxes made with E-flute.

Final Thoughts

Logistics without proper packaging is a futile endeavour. It is crucial that you factor in matters such as the flute to facilitate good logistics.

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.