What is a 3PL?

Posted on December 8, 2016December 8, 2016 by WHadmin

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?

Top Tips to Problem Free Christmas Logistics

Posted on December 1, 2016December 1, 2016 by WHadmin

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.

10 facts you didn’t know about Black Friday

Posted on November 23, 2016November 23, 2016 by WHadmin

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

This year Black Friday falls on 25^th November.

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

Cyber Monday falls on 28^th 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 4^th 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!

ARE YOU READY FOR BLACK FIVEDAY?

Posted on November 16, 2016November 16, 2016 by WHadmin

It doesn’t stop with Black Friday though. We now have Black Fiveday which starts on the Thursday before Black Friday and culminates in Cyber Monday.

I just did some research and the facts and figures are mind boggling. Did you know?

Consumers are expected to spend 5 billion over the 5 day period.
Black Friday 2016 will be the biggest day of online spending the world has ever seen.
1.1 billion is predicted in sales on Black Friday alone.
3.3 billion is predicted for the 3 day weekend.

As a 3PL, especially if you offer internet fulfillment services, you’re at the sharp end of this annual event. The statistics speak for themselves, we need to take this event seriously and have a clear strategy in place to maintain our service.

If you haven’t started your Black Fiveday planning yet, here’s a checklist to get you on track.

Identify which of your customers are hosting Black Fiveday deals.
Ascertain whether their deals are on specific stock lines or across their whole stock offering.
Request details on the volume of orders your customers are expecting.
If order volumes are expected to rise significantly speak to your customer about increasing the number of order files you receive from them during the day and the following days. You may need one an hour!
Determine the exact length of Black Fiveday promotions. Is it the full 5 days or just the Friday or Monday?
Clarify the delivery promises your customers are making to their customers, (next day delivery, within 3 days etc.)
In order to maximise productivity, output and service levels decide if and when to run night and weekend shifts.
Check you have enough packaging, boxes and labels available.
Liaise with your IT support company or department to ensure you have access to their assistance should it be required.
Notify your parcel carriers and Royal Mail about the increased volume and arrange additional collections or larger collection vehicles if required.
Pre-print Royal Mail franking labels if applicable.
Calculate staff numbers, devise shift plans and organise additional training.
Arrange for products on offer to be retrieved from bulk storage and placed in an accessible area.
If a customer’s deal is just on one or two items, arrange to pre-pack a certain volume of these so they simply need mailing labels and despatch paperwork adding when the orders start flooding in.
Make customers aware of any additional charges for night or weekend opening.

And most importantly

16. Have FUN and ENJOY IT! Fast paced, logistics and warehousing challenges are what get us up in the morning. This is an opportunity for your business to excel. This is what we do best!

OPERATIONAL EXCELLENCE – DELIGHTING CUSTOMERS

Posted on November 2, 2016November 2, 2016 by WHadmin

Today’s rapid advances in mobile technology mean customers are better informed, more demanding and have greater expectations for a faster and more accurate service.

To a business this means new challenges in the form of greater visibility and reduced order lead times.

Operational Excellence is the key to meeting these challenges.

It can

deliver great customer service
enable business growth
improve financial performance
enhance employee satisfaction and retention

Successful implementation relies on

strong leadership
high performing teams
well-designed processes
robust review mechanisms

Operational Excellence does not have to be complicated and it can be applied to any size business, division or department.

Strong leadership

To succeed the leader of the business must communicate a clear vision, be committed to making change happen, be engaged with the work force and determined to continually improve the business.

High performing teams

High performing teams are well informed, fully understand the direction and needs of the business, are aware of customer requirements and challenges, and understand, value and take pride in their part of the business process.

The leadership of the business needs to be fully engaged with employees and all stakeholders in order to deliver the required results.

Well-designed processes

The key business and support processes must be well defined, simplified, documented and trained to all staff involved in the process. Appropriate process measures should be in place to monitor performance and identify efficiencies.

Robust review mechanisms

Continuous improvement is achieved by reviewing appropriate KPI measures, undertaking internal and external benchmarking and regularly reviewing key processes.

Process performance needs to be measured in terms of time, quantity and quality. In turn these measurements should be used to monitor progress, identify improvements and used to feedback to teams.

Feedback from employees, customers and other key stakeholders is also vitally important in order to adapt, change, improve and perform better. This feedback must be used in a regular review process resulting in appropriate action plans.

To be successful your business needs to adapt to change or it will be changed.

Standing still is not an option.