Updating and repacking products that would otherwise be a loss keeps them in the supply chain as viable, valuable stock. Instead of losing profits, let’s look at how a rework warehouse can help you along.

What is a Rework Warehouse?

During their journey through the supply chain, products may need to be reconfigured to maintain value to the end user. In order to comply with a new format, suppliers or distributors contract with a rework warehouse to make sure the products conform to revised standards.

Typically offered as a value added service (VAS) to their clients, many 3PL companies have warehousing services specifically set up for the process of reworking inventory. As a form of reverse logistics, this allows suppliers the convenience of not having to re-ship merchandise and recover what would otherwise be lost profits from dead inventory.

Why the Need for Reworking?

Not all outbound inventory makes it all the way through the journey from manufacture to final destination in exactly the same format from beginning to end. As a fairly common practice, reworking products involves reconfiguring them to make them suitable for delivery to the customer should the need arise.

For example, a product may be manufactured and packaged in a foreign country, then shipped to another country for distribution and final sale but have a problem along the way. For instance, products may arrive with an issue not suitable to the country of destination – such as a manual written in the wrong language. In such cases the customer may decide to not accept delivery of the product in its current state.

At this point, your options are to either ship the products back to the country of origin thus incurring significant costs and time delays, or have the products reworked in the country where they currently reside. By utilizing a local rework warehouse or similar service, your products can be reconfigured with the required updates to ensure compliance for your end customers.

Moreover, when you scale this up to a few thousand units for a few hundred stores, the task of reworking such a large amount of freight can quickly move above and beyond your normal operational resources.

Situations Where Rework Warehouses and Companies Can Help

Bundling slow selling products.

We’ve all seen extra products added as an incentive to make a purchase: “Buy this and that, get this for free!” or something similar. When a product’s sell-through slows or isn’t selling, a common method of spurring renewed interest is to offer a new configuration or bundle them together with better selling products to drive sales.

For example, two low-selling items can be combined into a single discounted package. Or selling a previously bundled item on its own as a loss-leader. To get this new format into the market, new “special offer” or “limited edition” packaging can be created and coordinated with your 3PL partner. They in turn rework the new product configuration with its own SKU, new packaging, labelling and a new barcode.

From a logistics point of view, these individual products sometimes need to be taken out of their respective warehouse locations then combined together with the new packaging.

Previously bundled products need to be reorganized.

Sometimes normally bundled products can have faulty or flawed components. For example, let’s say you have combined products usually sold as a set of six. However, you find out two out of the set are not in sellable condition. In such cases, a rework company can reconfigure the combination into sets of four with appropriate pricing, packaging and shipping information for re-entry into the market.

Product labeling requires an update.

Periodically, manufacturers may need to update item numbers or other product information. Labels may also be misaligned or product codes may not be scanning correctly requiring relabelling. In such cases your 3PL partner can print and apply new labels, or affix new labels you supply. In other instances, ‘blocker labels’ may provide a convenient answer by covering up the old labels.

A product component needs to be replaced.

Sometimes product components, even manuals as previously mentioned, need to be replaced for one reason or another. If your product has a piece that needs replacing, the existing package needs to be opened, the new piece or part replaced, then have the contents repackaged. With the appropriate directions and replacement materials, your 3PL service provider can perform the necessary operations to prepare the product for restocking and distribution.

The package is missing a component.

If you’ve ever assembled anything from a kit, you’ve probably experienced the frustration of not having enough of the right kind or right amount of fasteners – thank you IKEA. If, as a manufacturer or supplier, you find yourself in this position whereby human error has thrown you a curve ball, you can, after determining the oversight, coordinate with your 3PL to correct the problem.

Repackaging returned products for resale.

When products get returned, they need to be sorted and inspected. The end decision being either to update them for resale or dispose of them. For those products that still carry value and can be restocked and resold, a rework warehouse carries out the necessary steps needed to get them ready to re-enter the marketplace.

Products or packaging are damaged.

Estimated at nearly 11%, damage in-transit is a predictable occurrence within the supply chain. In other words we know it’s going to happen.

For example, boxes can get wet or ripped during shipment. If the product or your product’s packaging is damaged, your 3PL’s rework warehouse can repackage your products, apply any new labeling required, and get them back out for distribution.

In Summary

Any time products or packaging need to be corrected before their final destination, suppliers and manufacturers are faced with having to make an uncomfortable decision: either write off the problem and declare a loss, or engage with a service provider that can rework the products for resale.

From a cost per unit point of view, a company that carries out a rework project for a client will charge a small amount per unit to bring them back to re-sellable condition. While the process may take anywhere from a few days to a few weeks depending on the variables, the savings to the company in terms of extra shipping costs and time spent is well worth it.

Having a 3PL provider that can inspect and repackage merchandise to go back into “good stock” for resale saves the company time and money. By employing a rework service, the burden of updating flaws, damage or complete repackaging is offloaded.

In this sense, rework warehouses and product rework companies provide a valuable service within the supply chain.

Based in Southern Ontario Canada, Brimich Logistics and Packaging is one of the most experienced product rework companies in the region. To learn more about the benefits of our rework and other value added services, contact Brimich today.

Managed warehousing services provide a new level of inventory control and convenience for both manufacturers and entrepreneurs alike – but is it the right solution for you?

What is a Managed Warehouse Service?

A managed warehouse service allows companies to outsource their inventory storage and shipping requirements thereby streamlining the order fulfilment process. The process includes warehousing a company’s products, picking and packing, shipping and delivery to the end user.

With storage space in high demand, and hyperconnected urban fulfilment continuing to escalate, effectively managing a network of third-party warehouses becomes that much more challenging.

Ideally, better quality warehousing facilities should be in logistically efficient locations.

What are the Essential Managed Warehouse Processes?

Whether you’re new to warehousing or more familiar with traditional inventory management, warehouse processes are essentially the same. Core warehousing competencies include such elements as:

• Receiving inventory
• Warehousing and storage
• Order processing
• Returns processing
• Processing returns (reverse logistics)
• Picking and packing
• Assembling and kitting
• Tracking
• Cross-Docking
• Shipping
• Reporting

What do Managed Warehouse Services Include?

A well-oiled service requires partnerships with experienced 3PL providers who have access to or control warehouses managed by a team of experts who specialize in:

• Warehouse availability and locations
• Current rates and renewals
• Storage negotiations
• Warehousing insurance types and evaluations
• Contract administration and negotiation
• Material handling operations
• Transportation networks
• Food-grade safety and compliance

Who Should Use Managed Warehousing?

If you’re a relatively small business selling products online, a managed warehouse service is an ideal solution for eCommerce fulfillment.

For instance, you may have limited space to store products, or you may sell products from different physical locations that need to wind up in one order.

Or you may be a medium sized business that’s growing to the point where you must off-load your warehousing processes because you lack the expertise and storage space.

Using a 3rd party warehousing systems allows you to boost profitability by having all your products deliverable from a single warehousing source or network. This expedites the delivery process which in turn creates happy customers.

Order Fulfillment in a Nutshell

Regardless of the size of your business, order fulfillment encompasses all the steps required to send out your orders.

When your customer finishes the payment phase, your 3PL gets an electronic copy of the purchase order which triggers the pick and pack process.

The last step in order fulfillment is transferring the parcel to a carrier for the last mile of delivery to your customer.

Types of Fulfillment Warehouse Services

Fulfillment warehouses can specialize a wide range of individual services. But most provide the essential fulfillment services such as storage, picking, packing, shipping and tracking.

At Brimich, we also offer additional services such as

• Cross Docking
• Co-packing & Assembly
• Rework/ Sorting
• Reverse Logistics
• Quality Checks
• Container De-stuffing
• Shrink Wrapping
• Custom Packing
• Labelling (UPC & Barcode printing)
• E-Commerce Drop Shipping Services
• Providing EDI to Customers (Standard & Customized solutions)
• A broad range of detailed management reports

Knowing what warehouse services are available to you helps add value and profitability to your business. Additionally, an experienced 3PL partner can help you develop a strategy that allows your company to move products intelligently.

The Importance of Warehouse Locations

Strategically significant warehouse locations are the backbone of efficient logistics. A quick drive around the perimeter of virtually any growing community of significant size will undoubtedly have numerous warehousing locations in all phases of development – from established to newly broken ground.

In traditionally dense areas such as the greater Toronto area, every opportunity is taken to maximize the value of real estate when geared towards warehousing – especially when located close to major city centres and transportation arteries.

As older buildings are removed at the end of their life-cycle, newer modernized facilities spring up filling the void in short order.

Even though E-commerce companies can market to consumers anywhere around the world, the three most important factors in warehousing are still “location, location, location”.

The Future of the Fulfilment and Warehousing Market

Driven by consumer demand and emerging economies, the size of the fulfilment market, and by extension the increased need for warehousing services, shows no sign of stopping anytime soon.

The global e-commerce fulfillment services market size was estimated at USD 86,449.97 million in 2021 and is expected to reach USD 96,257.94 million in 2022.

source: https://www.grandviewresearch.com/industry-analysis/ecommerce-fulfillment-service-market

E-commerce Fulfillment Services Market Size

According to this same report, a projected growth rate of 9.5% is expected from 2022 to 2030.

With Complexity Comes Vulnerability

The convenience that a managed warehouse service offers is the result of redefining the logistics system in general. Over time, more layers of complexity are added as the supply chain adapts to the changing landscape.

On the downside, shortages and delays have far more impact on a system that relies on all the parts moving as they should. In other words, even a small wrench thrown into this machinery can bring things to a grinding halt.

But the same could be said for virtually any arm of today’s supply chain as was evidenced by the world wide shortages experienced in early 2022.

Final Thoughts

Managed warehouse services provide by a 3PL partner can help take your eCommerce business to the next level. You benefit from having an experienced warehouse staff without the hassle of hiring workers yourself.

Moreover, strategically located warehouse facilities can reduce delivery times. You also may be pleasantly surprised at the affordability fulfillment services, especially when you factor in the savings from diminished errors and returns.

If you have a business that needs assistance with fulfilment, warehousing, or logistics in general talk to us at Brimich. We’re always ready to help you grow.

Many businesses do not monitor the life of their products after they reach the end user. They leave it at that, and continue producing new products and pushing them into the market. In a world where sustainability is an issue, reverse logistics is an important aspect of any business.

What is reverse logistics? How can reverse logistics impact your business? Read on to discover more about reverse logistics.

• What is meant by reverse logistics?

Many people reading this right now may be scratching their heads, wondering,“What is reverse logistics?” This is because it is a fairly new term, having been mentioned in a white paper for the first time in 1992 by James R. Stock.

According to Wikipedia, reverse logistics refers to the process of moving goods from their intended final destination back to the manufacturer for the purpose of capturing value or proper disposal.

Many companies experience the need for reverse logistics when a customer sends back a product.

Reverse logistics are also used for electronic devices, where refurbishment and remanufacturing are common practices. In essense, reverse logistics occur when goods are being sent backwards. 

• What is green supply chain management?

Green supply chain management involves integrating environmental thinking into the supply chain process. Consumers are becoming more aware of environmental issues, and they want to buy from manufacturers that are taking care of the environment and using sustainable methods. 

• How does reverse logistics work?

In the retail industry today, return policies are being used as a competitive element; this is when a company allows the consumer to send a product back to the manufacturer and get a refund or another product if it doesn’t work as they expected. The product is returned to the retailer, usually to a centralized holding facility. The product is assessed for problems; if it is repairable, it can be categorized as such and sent back to the manufacturer.

Large retail stores expect the manufacturers of the products they sell to have good return policies, to remain competitive by meeting customer needs.

Successful retailers now understand that it is imperative to have a working and well-managed reverse logistics system; customers are happy with retailers that have good return policies.

How can reverse logistics be improved? If you intend to use reverse logistics, or want to implement it in your company, here are some factors that can help improve your reverse logistics performance:

1. Invest in durable packaging. The packaging should be able to protect your product on the trip forward and backward, so you avoid further damage to the items during the return.
2. Repair, refurbish and resell damaged items. Reselling the returned items for a little less money can help you recoup money that would have otherwise been lost. There are many people looking for discounted products.
3. Consider outsourcing your reverse logistics to a 3PL, so the process is handled effectively for you.
4. Having a dedicated returns area can make it easy for you to process returns as quickly as they come in.