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Why the wooden pallet is King!

Pallets are the supply chains key ingredient worldwide. Millions of them are used daily to transport goods from manufactures to warehouses to retailers.

Where would we be without them?

Did you know they first came into use in the 1920’s and were in widespread use by the 1940’s.

That’s nearly 100 years of use. No wonder we all have a soft spot for them.

Every year 1.5 billion pallets are manufactured worldwide, that’s an astounding 60 million cubic metres of timber. In Europe we produce 350 million, 20 million cubic metres of timber annually. (www.timcon.org)

There has been much discussion recently about the environmental impact of the traditional wooden pallet and the numbers I’ve just quoted may have set a green flashing alarm bell off in your head.

Well don’t panic. The pallet that all logistics professionals regard so fondly is actually still one of the most environmentally friendly options available.

Wooden pallets are largely made from the sub-standard off cuts from the furniture and housing industries. So rather than adding to deforestation pallet manufacture is ensuring that nothing goes to waste.

International standards for wooden packaging (ISPM15) help to protect and encourage the safe use of timber packaging worldwide.

Less than 5% of timber pallets end their life at landfill. That’s 95% of what we manufacture being recycled and reused.

Any pallets that are beyond repair can be shredded to provide wood chips for fuel.

There is also a wealth of pallet pool options that keep pallets circulating in the system and many pallet providers repair and recycle on a regular basis.

And let’s not forget the pallets greatest gift – its ability to be recycled and upcycled into some amazing objects.

I bet every single one of you has something in your home or garden that you have made from a pallet!

As this week kicked off with Blue Monday and has continued to be grey and dreary I thought it would be fun to put a smile on our faces by taking a quick peek at some of the best pallet transformations I have seen.

In at number one are these great staircases.

staircase

Followed by these two brilliant ways to organise your garage.

Garage Tidy

How about a revamp of your office space with these filing cabinets.

office

Or perhaps your kitchen needs a tidy.

kitchen tidy

The fact is wooden pallets are the lifeblood of our industry.

They are environmentally friendly.

They could be the most versatile recycling material out there.

And they have a very special place in all logistics professionals’ hearts.

Long live the wooden pallet!

Huge distribution warehouse with boxes on high shelves

What is a 3PL?

3PL is the abbreviated version of Third Party Logistics and originally started out as a military term.

Now 3PL refers to companies who offer a comprehensive and wide range of outsourced services for pretty much all aspects of your supply chain.

When I started my career in logistics 3PLs simply looked after your products and ensured that they got to all the right places at the right time.

Competition, advances in technology, increasingly intricate and demanding supply chain requirements, the e-commerce boom and global growth have seen the range of services offered by 3PLs increase dramatically.

3PLs are now strategic partners who add serious expertise and logistics proficiency to your business.

You can expect your 3PL to define your logistics, take bold steps to improve your supply chain, manage costs and generate ideas for improvement.

Partnering with the right 3PL is a key component in your company’s success.

Let’s take a look in more detail at the services 3PLs provide.

Warehousing

  • Basic functions of store, pick, pack and ship
  • E-commerce order fulfillment
  • Returns processing
  • Gift design and packing
  • Product customisation and rework
  • Sourcing packaging

Transportation

  • Pallet deliveries
  • Parcel delivers
  • Container shipments
  • Reverse logistics
  • Import
  • Export

Information Technology

  • EDI order receipt and processing
  • Web and cloud based order communication
  • Advanced warehouse management systems with real time RF control
  • Extensive reporting capabilities
  • Access to live stock data

Customer Service

  • Designated telephone number for your customers
  • Trained customer service agents available to support your brand
  • Supply chain consultancy

What are the benefits of working with a 3PL?

You can expect a move to a 3PL to result in a reduction of current costs. 3PLs have a scale advantage that means they can access much better rates than you as an individual company.

The same economies of scale will mean that 3PLs will manage and reduce future costs.

The expertise and know-how of 3PLs will improve customer satisfaction. Their knowledge of supply chains result in on time deliveries presented in line with retailer requirements. Their infrastructure and network allows them to respond quickly and resolve problems fast.

If your growth plans involve exporting then choosing a 3PL with global expertise can provide your company with the tools to achieve your goal.

3PLs can save you a whole lot of hassle and risk associated with running your own logistics. You can avoid additional salaries, the administration of holiday pay and stake holder pensions, work place risk assessments and environmental issues.

If you are launching a business 3PLs can enable start-up. By outsourcing logistics you instantly acquire a large logistics infrastructure that allows you to compete with the more established brands. The use of a 3PL also frees you to focus on sales and growth safe in the knowledge you have the ability to respond to any opportunity that comes your way.

Behind every successful brand is an excellent 3PL.

Have you found your perfect logistics partner yet?

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Top Tips to Problem Free Christmas Logistics

The Christmas period is valuable to a 3PL both in terms of revenue and reputation.
Our customer’s peak sales season has a direct impact on our bottom line creating a challenging spike in activity.
The festive season with all it demands and challenges also provides us with the opportunity to impress customers.

Exceptional service levels across the busy period drive home and emphasise skill and competence. A successful Christmas highlights and strengthens your relationship with customers and kicks off the New Year on a high.
Here are my tips for problem free Christmas logistics.
1. Start planning early – with Black Friday and Cyber Monday the seasonal Christmas spike begins as early as mid-November. For 3PLs involved in gifts it may even have started as early as September. Planning should ideally begin in August.

2. Appoint a project team – a trusted and experienced leader and team will enable focused planning without affecting your standard day to day operation.

3. Review previous year’s volume and performance – in order to plan effectively it pays to review previous year’s volumes and estimate expected activity levels. Analysis of past performance, challenges and triumphs will enable the project team to design a targeted plan.

4. Set goals – a clear set of goals for the season helps to focus planning and motivate teams. It ensures emphasis is placed on strengthening areas that may not have been up to scratch in the past. Perhaps you need to improve picking accuracy, or on time deliveries?

5. Weekly review meetings – schedule regular review meetings to update managers and teams with plans and actions.

6. Manpower planning – appoint key team members and brief with accountabilities and responsibilities. Schedule additional shifts for weekends and evenings. Recruit and train seasonal staff in advance of demand. One KPI regularly affected during peak periods is pick accuracy. This is often simply down to the use of untrained inexperienced temporary staff. Early planning and up front training is a quick and easy way to remedy this.

7. Materials planning – order in extra materials whether that’s pallets, packing cases, fork lifts, pump trucks, tape guns or shrink-wrap. Nothing brings a process crashing to its knees quicker than a lack of materials.

8. Prepare for returns – reverse logistics can see a huge spike over the festive period. Ensuring you have a robust returns process will guarantee returns won’t become a distraction and affect your outbound operation.

9. Communicate with customers – begin to talk to customers as early as possible. What are their plans? Are they running any specific promotions? All this data can then be factored into your planning. Update customers on your plans. Tell them who is heading up the Christmas team and what additional services are available. This is a real opportunity for you to impress and inspire your customers with confidence. Make the most of it!

10. Communicate with suppliers – organise additional collections with Royal Mail and your parcel carriers. Brief hauliers and contractors on increased requirements. There is no point getting all the orders picked on time if you haven’t organised the additional resources to deliver them.

11. Don’t forget customer service – the seasonal period always sees a huge spike in emails and calls to your customer service team. Where is my parcel? What’s the tracking number? My parcel is damaged! In order to maintain a high standard of customer care, why not appoint a person or small team to work solely on this throughout the busy period. You will be able to give customers a clear process and point of contact that will reassure them and you can avoid this increase in work affecting your normal day to day workload. It’s also worth investigating automated tracking number notification with your parcel carrier.

Providing exceptional service levels through peak periods is what defines great 3PLs.
Make sure you stand out this Christmas.

black-friday

10 facts you didn’t know about Black Friday

Love it or hate it Black Friday, Black Fiveday and Cyber Monday are here to stay.

This year Black Friday falls on 25th November.

Black Fiveday kicks off on Thursday 24th November and runs through to Cyber Monday.

Cyber Monday falls on 28th November.

Here are 10 facts that you probably didn’t know about the event and its history.

Black Friday used to refer to US stock market crashes in the 1800s.                                              

Although it is now known as the biggest shopping day, in the US the term “Black Friday” originally referred to very different events.

The first time the term was used was on 24 September 1869, when two speculators attempted to corner the gold market on the New York Stock Exchange. The government stepped in flooding the market with gold, prices plummeted and many investors had a very black day and lost large fortunes.

Black Friday now references the huge profits that are generated on the day.                                 

Many retailers see their biggest profits of the year on Black Friday. Black has always been associated with profit whereas red has always been associated with loss.

Black Friday is always the Friday after Thanksgiving which is celebrated on the 4th Thursday of November.                                                                                                                                                    

Tradition denotes the Friday following Thanksgiving marks the official start of the Christmas shopping period. The department stores in New York City embraced this concept and in 1924 the world famous Macy’s Christmas Parade began.

Black Friday didn’t officially become the biggest shopping day of the year until 2001.                        

Up until 2001 the biggest shopping day was the last Saturday before Christmas. Black Friday has cunningly converted us from shopping procrastinators and last minute buyers to early organised bargain hunters.

Black Friday has now become Black Fiveday.

In an attempt to maximise sales and profit retailers have extended the original one day event to a 5 day bonanza starting on the Thursday and going all the way through to Cyber Monday.

Cyber Monday was the online version of Black Friday.

Black Friday was historically a bricks and mortar event. As e-commerce sales grew e-retailers created their own version of the mayhem and called it Cyber Monday. In reality the whole 5 days of madness is now available both in store and on online.

Retail consultancy Salmon are tipping 2016 as the best so far for consumers using smartphones to bag their deals.

They are predicting approximately 5 billion pounds of sales over the five day period, 2.55 billion of which will be generated by mobile devices.

Research network  SimilarWeb have revealed the biggest profit makers of 2015.

HouseofFraser.co.uk, Debenhams.com, Newlook.com, Etsy.com and Boots.com

If you are looking to grab a deal this year the hot retailers we are being tipped to watch are;

Argos, Amazon, Currys, Marks and Spencers, John Lewis, Tesco, Gam and House of Fraser

According to a Royal Mail survey:

52% of people spent more on Black Friday 2015 then they did in 2014 with an average spend per person of £191.00 and an average purchase per person of 5 items.

However you feel about Black Friday its impact on our economy and businesses is undeniable.

I recommend we embrace it fine tune our own sales and promotions to make the most of it and don’t forget to bag a bargain or 5 for ourselves!