Transport and Logistics Company Cuts Down Your Transport Costs

Jul 13 2020 Published by under Uncategorized

Transport makes an inevitable part of any business. It is important for the smooth running of your business. Those industries which are involved in production of goods or supply of raw materials, for them transport forms the backbone of their business. In order to make sure that the products reach their destination on time most of the companies prefer to have their own transport system. But in the long run they find out that the transport system costs them a lot and the management of the system becomes a tough job. So it is better to hand over this task to the transport and logistics companies which have good experience in handling these kinds of jobs.

The transport and logistics companies have taken over the transport industry. The main reason for this is that these companies are well experienced in handling these tasks and they cut down the overall transportation costs and save lot of money. They are well versed with the pros and cons of the transport system. Moreover these companies provide their customers with transportation logistics services. The logistics services include the management of the goods and also involve other services like material handling, transportation, inventory and warehousing. These companies very effectively handle the storage and flow of materials from their point of origin to their destination point.

The transport and logistics companies have extensive knowledge and expertise in dealing with these tasks. They know all the routes and hence can provide the best transport solutions for your business. They carry out the entire shipment tasks in coordinated manner so that there is less complication and all the shipments are carried out on time. They ensure that all the orders are delivered on time. If you outsource your transportation work to these companies then you can cut down the costs to a large extent and can use that money on other operations of your business.

The transport and logistics company free you from the burden of the daunting task of shipping your materials. Big companies largely depend upon this sector for the transportation of their materials. The smaller companies can profit even more from these companies as they rule out the need for hiring staffs and other aspects of transport. These companies are cost effective, manage the delivery tasks in well coordinated manner and provide logistics services which ensure that your products reach their destination within shortest span of time. So outsource your transport tasks to the transport and logistics company and get benefited by their services.

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7 Reasons Why Transport Logistics Providers Want Their Own CRM

Jul 13 2020 Published by under Uncategorized

Launching new services, targeting different industries, moving into new territories requires that company’s communication with partners and clients will be effective. In addition to transportation and storage, logistics companies can also assemble or package goods and provide consulting work to address complex global supply chain problems. For this reason Customer Relationship Management (CRM) system appeared on market to serve as a key point for sales funnel and client relations in logistics companies.

Customer Relationship Management (CRM) is a model for managing a company’s interactions with current and future customers. CRM tool is an advanced solution to integrate, organize, automate and synchronize sales, customer services, marketing, order management, pricing, technical support which helps improve customer satisfaction and deliver goods on time. There are several reasons why it’s profitable for logistics service providers to invest in a CRM system:

Reason 1: Increased productivity

Well-developed and thought out CRM system always helps pre-define some general workflows for every department and automate administrative tasks. Using it, your staff members will spend less time on filling forms, making quotes & proposals, creating reports, running calculations and will thereby raise their productivity.

Reason 2: Systematic way to track business activity

CRM solution helps understand when and what is needed to be performed for which customers. With the help of this IT tool you are able to unify all your business areas and thus track them in one place. Leveraging this market information, a logistics company will be able to maintain competitive pricing and delivery options.

Reason 3: One source for all the necessary data

A CRM system allows you to have access to constantly updated information for decision-making and communication between staff members and departments with different office locations. It’s an opportunity to build intelligent customized interfaces with all contacts along business lines available by CEOs, CFOs, CIOs, and line managers.

Reason 4: Measurability of marketing and sales activity

CRM services can help transportation and logistics business capture better understanding of customer needs and behavior. This will give a possibility to manage effectively time, business resources and efforts which then benefits clients and overall business.

Reason 5: Individual customer service

Industry-based CRM platform gives a clear road map for effective communication with partners or clients and provides access to industry best practices. Knowing your customers needs and the main points to contact them you can identify major clients increasing their loyalty and mitigate the possibility of relationship with irresponsible customers.

Reason 6: Automated information updating

CRM software helps benefit business profitability focusing on timely updating customer information and fast order processing. It also allows to organize efficient shipping of FCL/LCL freight and delivery of dangerous/perishable goods.

Reason 7: Ensuring safety of shipments

Due to cross-globe operations and various regulatory systems in all the different countries it’s usually hard to propose on-time delivery and 100% safety of goods. Customized CRM system can have integration with electronic databases such as Transit MRN to provide information about current status and location of the cargo.

Taking into consideration all the above mentioned advantages, it’s evident that a customized CRM system can drive up profitability and provide a systematic way to measure and control everything that is happening in your business regarding communication and relationships with customers.

Industries and Technology Areas:

Industries: logistics, transportation, information technology

Technology Areas: software CRM development, CRM application development

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A Rundown On Logistics Vs Transportation

Jul 13 2020 Published by under Uncategorized

Two of the most important sectors that help move a country’s economy are logistics and transportation. Both are important cogs in the wheels of economy since they help bring in and distribute goods and materials. For example, if there is shortage of wheat and rice in Malaysia or Vietnam, other South Asian nations can help in providing supplies to satisfy the need.

Logistics and transportation are two words closely related to each other. As a matter of fact, with the example given previously, both processes are done hand in hand. But the question is can one really survive without the other? Or is there no absolute difference between the two and that both logistics and transportation are referring to the same entity?

Transportation refers to the means of distributing goods, supplies, resources, information, people, and energy from the original point to the destination point using any of the five modes of transport: animal-drive, air, road, rail, and water, or a combination thereof. Since transportation is concerned only with moving the supplies, someone has to take care of handing, packaging, managing the time the goods are fetched and delivered, and maintaining coordination, especially when inter-modal or a combination of two or more transport modes is used. That’s when logistics comes in.

Logistics is defined as the process of managing goods, supplies, resources, information, people, and even energy from the source to the user. Any country can testify how important logistics is for its health. Logistics is not just a company that gets your airmails delivered promptly. Logistics is found in every department of a government, from the military to health agency, from education to infrastructure agency, and of course, the time-conscious world of commerce. This application of logistics is more popularly known as business logistics.

Business logistics, unlike military logistics where the concern is focused more on speed and quantity, is more concentrated on delivering the exact item, at the ideal time and place, at an ideal price, using an efficient amount of energy, man power, and financial resource. It is the business of most couriers in the world.

While most couriers have their own vehicles, such as air planes, ocean jets, trucks, and ferries, it is not really necessary for business logisticians to have their own means of transportation. In cases like this, trucking or shipping service providers are hired to distribute the commodities.

For example, in sending goods to a country where air travel is not available, the courier gets the services of a shipping company, and additionally, a trucker to help in delivering the goods once the ship has arrived. The courier has the responsibility to choose which ship and truck provides the fastest yet efficient handling of the supplies. A courier might also need a place of storage or a warehouse company, especially when there is a need to stock the goods while waiting for the trucker. Most shipping companies, however, do have their own warehouses.

Just lately, truckers and shipping companies have begun adapting logistics as part of their business operation. This raises the question then as to which service to avail of when sending goods. Should one go for logistics or transportation companies?

Whether one chooses logistics over transportation, the answer will have no difference. See, even transport companies employ logistics to their business operations. Both indeed must go hand in hand in order to achieve secure and efficient delivery goods.

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Logistics Management

Jul 13 2020 Published by under Uncategorized

Logistics management is a science of planning, organizing, and executing activities for delivering the required goods or services in the right location at the right time. Modern technologies, communication links, and control systems are essential to manage materials, services, and financial goals. In today’s complex commercialized world and for military operations, logistics management is used for effective and reliable performance.

Military logistics management helps to plan, innovate, distribute, and maintain materials for a military operation. This also coordinates the activities of personnel movement and support, maintenance and disposition of facilities, and service delivery according to the requirements. Positioning of military units and weapon arrangements for carrying out operations are determined with the aid of logistics management.

Logistics management in business utilizes technology for maintenance, assessment, case analysis, planning, implementation, and asset tracking. The art of logistics plays a vital role in linking many industries with others for attaining precise business targets. Budgeting, requirement analysis, performance appraisal, transportation of goods, and distribution are included in logistics management. It also offers an insight to develop measures for improving a company’s operations.

Ideal routes, modes, and carriers for transportation at a lower cost can be mapped out by good logistics management. Cost effective operational processes are preferred for managing various activities of companies or organizations. Market surveys to analyze the customer requirements also come under logistics management. Maintenance options in business and military agencies are covered to provide favorable situations for better performance. Balanced and affordable supply chain in business can be achieved through implementing services of outsourcing, transportation, distribution, and property management. Logistics management offers a reliable performance ability that can be achieved through cost effective funding.

Logistics management is necessary for a successful operational process of manufacturing, order processing, accounting, incentive management, and goods forwarding. It also supports business in the field of sales, human resource management, and financial services.

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Logistics Engineering

Jul 13 2020 Published by under Uncategorized

Logistics engineering mainly deals with the application of engineering methods to solve logistics problems. Logistics is the science of planning, organizing, and executing activities for delivering the required goods or services to the right location at the right time. Logistics engineering supports every stage of an activity to satisfy customer requirements.

Modern technologies, communication links, and control systems are essential to manage materials, services, and financial goals. Logistics engineering help to improvise new materials to suit the situation for a cost effective performance. Strategy management, research methodology, industrial engineering, supply chain management, quality assurance, and systems simulation and modelling are integrated in the logistics engineering field. This linking supports the functional area of logistics such as procurement, maintenance, transportation, disposition, and distribution.

Asset tracking and e-logistics used in the field of logistics management increase the efficiency and reliability of the distribution process. The method to trace the status of ordered products increases confidence among the customers. Analytical models and computer simulations help to improve overall performances. The proper implementation of logistic engineering processes ensures operational reliability, less maintenance cost, personal safety, and customer confidence. Designing of new products with high quality and less cost is recommended in logistics engineering. Maintenance planning using modern technologies of troubleshooting and built-in test equipments aid in providing speedy and accurate maintenance services.

Automation of system helps to upgrade the production process. Implementation of industrial engineering in the logistics management increase quality and quantity of production. Manpower requirements are reduced due to logistics engineering and help to lower the cost of production too. This helps to assure business objectives globally. Logistics engineering help to rationalize the process of logistics services, improve customer satisfaction, and save budgets of business dealings.

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Understanding Logistics

Jul 13 2020 Published by under Uncategorized

According to Ghiani (2004), logistics can be defined as the planning and controlling of products and information in an organization. It aims at delivering materials to a given destination for another trying to optimize a particular measure and ensuring satisfaction of a particular set of constraints. These definitions can be simplified to mean the managing of the flow of goods as well as services from the point of manufacture to the point of consumption ensuring that the requirements of the consumer are observed. Activities under logistics include information integration, warehousing, packaging, inventory, security, transportation, as well as handling of materials. Logistics compliments supply chain by add value to place, as well as time utility.

Logistics are identified in different fields due to performance value. These fields include procurement, after sales, production, disposal, as well as distribution fields. This paper will identify the areas where organizations involve logistics as well as the essence of an effective logistics to an organization.

These fields of logistics determine specific activities. Procurement logistics involve make/buy decisions, supplier and other management, as well as market research. Production logistics’ key principle is to connect procurement to distribution logistics. This field of logistics determines the capacities of production under available resources in response to distribution logistics. Distribution logistics deal with delivering of finished goods to the consumer or rather customers. Its components include processing, warehousing, as well as transportation. This logistics is most essential since the time, place as well as quantity of production vary from the time, place, and quantity of consumption.

Today, logistics have been simplified through technological advancements. Complexities which hinder effective logistics management can now be visualized, modeled, optimized and analyzed through particular simulation software. These complexities have necessitated the use of this software. Successful businesses are using this software to case the work of logistics analysis and hence providing effective strategies of managing supply and demand. Problems in logistics majorly occur in organizations that engage in product delivery but they can also occur in firms producing services (Ghiani, 2004). Examples of this include garbage collection, after sales services, as well as mail delivery, among others. Maintenance and operational cost of logistics is another hindrance of its use. Research conducted in the United Stated in 1997 proved that organizations used 862 billion dollars as the total logistics expenditure. It is hence essential for organizations to understand how to minimize logistics cost (Rushton, 2000).

Reliability and sustainability are other factors which affect the efficiency of logistics. Reliable systems as well as equipment’s should be able to perform intended purpose for the identified period under stated conditions through effective logistics. Inefficient logistics will lead to a wrong probability on performance capabilities of systems hence causing massive losses. Reliability will thus project the probability of systems and equipment in an organization (Landford, 2006).

In conclusion, the main issue under logistics is deciding how and when raw goods and finished products will be shipped, transported, and stored. This unlike other operations management is most evident in modern societies. A logistics system comprised of facilities that have been corresponded to the transportation services. Facilities include locations where goods are processed, and they include manufacturing centers, distribution centers, transportation terminals, as well as dumpsites, just to mention a few. The transportation services move goods between the facilities.

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Transportation And Logistics

Jul 13 2020 Published by under Uncategorized

Transportation refers to the physical distribution of finished goods, from the place of production to the place of final consumption. It also includes the transportation of raw materials to the place of production. Logistics aims at reducing the cost incurred during transportation by employing scientific methods and customized software.

Transfer of raw material and finished goods can be done through roads, railways, airways, sea routes, canals and high capacity pipelines. The selection of a particular medium depends on the nature of the product and its shelf life. Perishable goods like flowers, fruits and vegetables need a faster medium of transportation like air and road. Ships are used to transport items like metal, crude oil etc.

The reduction of transportation costs is calculated by selecting the shortest distance between two points and the time taken to travel. Goods are now tagged with Radio Frequency Identification (RFID) tags to keep track of their location. Even trucks are fitted with GPRS systems to help drivers find the destination in time.

Logistics companies use transportation software to make the most efficient use of their existing fleet of trucks, ships, and cargo planes. They also help other companies by providing them with technical expertise and customized systems that improve efficiency. Transportation is important especially for large multinational companies. Products of these companies traverse large distances over land, sea and air to reach their place of consumption.

With the growth and acceleration of the global economy, the freight transportation industry faces greater challenges and demands. Extensive research on transportation and logistics is carried out on a regular basis. A new research is studying the natural ability of ants to find the shortest route between two points. Institutions like the American Society of Transportation and Logistics help companies improve their supply chain and reduce their transportation costs.

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Transportation & Logistics – Top 7 Reasons to Use a Freight Forwarder

Jul 13 2020 Published by under Uncategorized

The other day I met a business owner and we begin to discuss the differences in LTL Carriers, 3PL’s and Freight Forwarders. I had asked him who he had better experiences with, and without hesitation he responded, “Freight Forwarders have been much easier for me to work with, although I use all three at my company.” He listed 7 reasons as to why Freight Forwarders have been better of a fit in his supply chain:

Flexibility- Freight Forwarder’s provide a service typically using an Agent network. Many cringe when the word “agent” is thrown around in terms of Logistics, because of the bad reputation that they have received throughout the years. Many customers think that if you are using an Agent network it increases the chances of product being loss, damaged, or stolen- not true. What many don’t understand is that the Agent concept has been around for quite awhile. All carriers have some type of relationship with agents, even the larger carriers such as UPS and Fedex have an agent network in place in some parts of the country. What truly separates companies are their bonds and communication with their agent alliance. When you examine the “good” forwarders they have sound, strong bonds with their agents, and ironically sometimes even better than if they were dealing internally within their own company. To understand this fully you have to realize that these agents survive by looking to provide exceptional service to their carrier partners. The better job they do the more business they will receive. So they want to impress, they want to be accurate in their pickup and deliveries, but it’s the carrier’s job to make sure their(agents) are kept on their toes in terms of performance, accountability, and reliability.

Manageability- Typically when working with a LTL carrier or a 3PL their sometimes tends to be a “loss” of control for customers. If a shipment happens to go astray it often times takes an act of congress to recover and redeliver it to the proper address. A good Forwarder has the ability to use their network to retrieve, recon sign and redeliver to the correct address often times without missing a beat. Many clients strictly use F.F. simply because of this added benefit. The ability to “Quarterback” your shipments the whole way through lies with a Freight Forwarder. LTL companies have too many hubs and processes to deal with which doesn’t allow the flexibility and manageability that a Forwarder can demonstrate on a single shipment, and often times customers find this out the hard way.

Versatility- Options! Options! Options! During today’s economic times customers are finding that having a company that can provide them with viable options allows them the ability to maintain control, reduce costs, and increase efficiencies in their supply chain. When you are looking for your Forwarder examine the services that they can offer and relate them to your business needs. A good forwarder can take the primary shipping role or be used as a supplemental asset when the need arises. Allowing your business to adapt quicker and be more responsive to customer needs as they develop.

Versatility- Often times many companies will state that they are in fact a One Stop Shop, but if you ask enough questions you can determine if this in fact is true. Do they have the real time tracking and tracing capabilities? International? Warehousing and Distribution capabilities? Reporting capabilities? As your business grows these could be things that could help make the difference in your business progress. These help add to being able to allow a customer to grow their business with the least amount of financial output.

Vested Interest in Your Business- When a carrier can become an extension of your business, when they think about ways that you can improve your supply chain more than you do, that’s what a great carrier is made of. So often in business companies spend 90% of their time looking for the company with the cheapest cost whether then the company that can add immediate and consistent value to their supply chain.

All carriers strive for this, but not all reach this point. Reason being is that it takes the WILL to want to be the best carrier, and to want to help your customer beyond single shipments given to you on an Ad Hoc basis, a good freight forwarder weeds through the “stuff that doesn’t matter” to get to the core of the clients goals. How can they make your business run smoother is their main concern. And please understand that this doesn’t always mean being the CHEAPEST carrier in the door, but what it often refers to is being able to look at a company’s Logistic setup and determining can they add efficiency, and reduce cost as a whole.

Cost Savings- As I mentioned in the previous paragraph a good freight forwarder will make it one of it’ main goals to save their customer money, but interestingly enough many times the savings doesn’t come from just giving the customer dirt cheap rates. As a matter of fact if you speak to a top forwarder they will often times tell you that their pricing is fair to moderate? Reason being is that many times being able to provide a solution to an issue might take employing more resources and increasing cost on the front end to achieve for example expedited transit, better customer satisfaction and more efficiency. For example a company shipping from California, who is trying to beat their competition to the punch on the east coast might need to implore the use of a warehouse and distribution facility let’s say in Chicago. Adding this resource will give more control, shorter transit, and a more competitive drive for the Cali Company, and of course as I mentioned earlier increasing customer loyalty.

Quick Thinking- One freight forwarder I spoke with presented an example of how he added value to a new customer by just being inquisitive. The customer had been using UPS ground shipping out product weighing somewhere in the area of 50 lbs. for 10 boxes going to one location, cumulative weight of 500 lbs. Many companies who might have run across something like this would have run away because of the name recognition and reputation of the boys in brown. But not this owner, he realized that he would be able to put together a very strong program for the client based on the cumulative rate of 500 lbs. versus UPS rating the shipment on a per box basis. The bottom line was that he was able to save the customer 30% on his shipments with a much faster transit time.

I always preach that in this day and age the most important thing for a business to understand is their own “business needs…” If they understand the time sensitivity of their product, marketplace, and the needs of their industry they will be able to pick the right company for their logistical needs.

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Transportation and Logistics – Accessorial Fees Can Sink a Business

Jul 13 2020 Published by under Uncategorized

If you are a new shipper in the LTL (Less-than-truckload) world, it may seem like big maize at times, without a starting or ending point. There may seem like an overwhelming amount of information that a shipper needs to know, ranging from learning the NMFC classes, to the specifics, like who is the best carrier to haul your freight, and what price will they charge. This is just a glimpse of the Freight World. Seasoned shippers, who have been in the business for 20 plus years, often find themselves being introduced to things that they didn’t know, or thought they knew, and were totally wrong. The Freight World is a dynamic, fast moving industry that warrants attention to details by Logistic Departments. With this being said, one of the trickiest topics to grasp, especially when a company first starts shipping freight, is Accessorial Charges.

Many shippers don’t really think about the consequences of not doing their due-diligence to research what type of equipment is needed for their shipments. They often think that these charges are “small things” when you look at the big picture. The typical thought process from the shipper is, “I’m not worried about it, because the carrier will take care of it.” This mind-set can be dangerous, because if these charges aren’t calculated at the onset of pricing out a shipment, there is a good chance that the cost of the accessorial might cause the shipper to lose profits. Too many of these can cause a negative effect to the bottom line for a company. Carriers use what’s called a Supplemental Bill. The name speaks for itself, as the shipper or bill to party, will get an additional bill after the shipment with the new accessorial charges, if it’s not included on the original bill. Lesson here, is that they will always bill you these charges. This becomes a cash cow for carriers, and allows them to boost their profit margins significantly. The following are a few of the “small things” that a shipper might run into and if not taken care of correctly can add up into “big costs.” Each of these accessorials, at a minimum depending on which carrier is chosen, starts at $25/$50.00 and goes up.

Appointment Notification Prior to Pick Up or Delivery

Inside Delivery

Residential Pickup/Delivery

Hazardous Materials Fee

Sort and Segregation by Driver

Convention or Trade Show Deliveries

Non Commercial & Job Site Deliveries

Border Crossing Fees

Re-Weigh and Re-Classification

Billing Change (especially when proper BOL not used)

Inside Pick Up or Delivery

Church Delivery

School Delivery

Construction Site

In conclusion, the shipper needs to do their JOB on the front end to ensure that unforeseen charges aren’t a surprise to either party. Also, it is highly recommended that before the shipment leaves the warehouse that it is determined who will be responsible for paying these charges.

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