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How to Optimize Your eCommerce Distribution Center

Alt tag: A well-run warehouse thanks to your efforts to optimize your eCommerce distribution center
Archives, Education, Global Trade Daily

How to Optimize Your eCommerce Distribution Center

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If you want your eCommerce business to run as smoothly as possible, then your distribution center needs to work like a well-oiled machine. To this end, let’s take a look at how to optimize your eCommerce distribution center!

Work on optimal warehouse layout

The first step to optimizing your eCommerce distribution center is having a warehouse with an optimal layout! The organization of your warehouse has a lot of impact on how quickly your employees can work. If things are not properly organized, they may need to waste a lot of time transporting goods to and from trucks. That is why trucks should be capable of getting relatively close to the bulk of your goods. At the same time, make sure that the loading and unloading area is not located in a highly congested part of your warehouse. That’s just looking for trouble since it would only be a matter of time before someone gets hurt. These considerations should make it obvious why the warehouse layout is one of the main factors to consider when acquiring a new warehouse. 

Invest in employee training

As logistics experts like to point out, your employees are the lifeline of your business. Even when trying to optimize your eCommerce distribution center, this remains true. In reality, it is even more critical for your employees to have the required training. An untrained workforce performs tasks slower, and the chance of human error skyrockets. That may be fine in some other positions. Still, when you rely on them to pack, unpack and transport goods, errors typically result in damaged goods and hurt employees, which means that you suffer financial losses and a sudden decrease in the workforce. It is much better to invest your money into training instead and get consistent, reliable results. The increased competency will also do wonders for your optimization since everything will be done faster and more efficiently.

Emphasize packing efficiently

There are few tasks as troublesome for eCommerce distribution centers as packaging. Even the best warehouse management systems cannot perfect the process. Amazon, for example, relies on software that dictates which box and how much cushioning an item requires based on its pre-entered dimensions. And even such a sophisticated system produces errors when packing larger items when fully assembled, resulting in massively oversized boxes filled with insufficient cushioning. So, what you should emphasize to your employees instead is trying to pack efficiently. The training we’ve already recommended should help a lot on this front. Your employees can understand how much cushioning to use and the optimal box size for an item. Of course, in the end, a lot of experience will be required to get to the most optimal packing, but that’s the price of doing business.

Make sure everything is properly labeled and organized

Finding your way through a warehouse can be a frustrating experience. With familiarity, things get easier. However, as your business grows and you hire new employees, even with training, you can’t expect them to know everything. Similarly, your product catalog might change, necessitating changes in the warehouse organization. Even experienced employees can falter and take longer to find the right items.

For this reason, one of the best ways to optimize your eCommerce distribution center is to rely on the good old labels. Have your product placement areas marked out. And keep a chart of your warehouse with all the labels on it, too. That will let your employees easily navigate the facility and find everything they need during their workday, which should speed up the running of your warehouse significantly!

The right way to store your products

This one will take a bit more effort from your managers. But, there is an optimal way to store your goods. Namely, the popular and frequently bought items must be placed in the most easily accessible areas. On the other hand, the less popular products can be placed further in the back. This way, your employees will need to waste a lot less time fetching and packaging the items they are likely to handle most often. And you can take one step further to the most optimal working of your warehouse you can achieve!

Make use of the right software

If you take the time to learn about the world of logistics, then our final advice on optimizing your eCommerce distribution center might seem obvious. Namely, the use of automation and management software! The right software makes everything so much easier. It speeds up the data gathering and analysis processes and provides optimal solutions to your problems. It can perfectly organize your delivery and shipping schedules and even offer insight into the optimal organization of your warehouse’s goods. In other words, it is always wise to invest in software!

Final comment

Even knowing how to optimize your eCommerce distribution center, you will not be able to perfect things overnight. Almost every piece of advice we’ve offered here takes time to implement, especially regarding employee training! It will take time before your business is genuinely optimized, but it will be worth the effort.

Author bio

Connor Welkin has worked as a warehouse and storage facility manager and has extensive logistics experience. He also closely works with the moving experts from vanexpressnj.com to meet all their storage needs.

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Archives, Global Logistics, Global Trade Daily, Imports/Exports

The Biggest Canadian Exports in 2022

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The year 2022 has been an interesting year for Canadian exports in general. Overall, exporting businesses have been very successful during 2022 and intend to carry the momentum into 2023. Certain exports have been holding strong during the previous years, and 2022 was no different. If you’re interested in joining the Canadian exports business in 2023, you might want to know the 2022 statistics. After all, these stats can inform your decisions and help you turn a profit. In the long run, using stats like this is vital to your success. So, to help you out, we’ve compiled a list of the biggest Canadian exports in 2022.

Aircraft, engine & parts manufacturing

One of the biggest Canadian exports in 2022 is the aircraft, engine & parts manufacturing industry. However, even though the exports were good for 2022, the industry took a big hit because of the covid-19 pandemic. Because of this, the overall revenue of the aircraft, engine & parts manufacturing industry will probably drop in the coming years. In total, the industry earned $13,2B in 2022, most of it coming from aircraft manufacturing: specifically commercial planes, business aircraft, and civil helicopters. While the industry is still doing well, and the Canadian aircraft, engine & parts manufacturing industry is currently leading globally, it will probably decline. If you are interested in joining the export business, consider how to reduce commercial warehousing costs. Knowing how to reduce costs where you can is helpful no matter what you want to export.

Refined petroleum

Generally speaking, refined petroleum exports in Canada have been highly volatile over the past five years. This is because crude oil is the primary part of the industry’s products. As such, the price of crude oil drives the industry’s revenue, which has been, as we mentioned, very volatile. In 2022, the industry made $20,6B in total. Dealing with refined petroleum exports in Canada is a very risk-reward business. While the revenues are highly volatile year to year, the industry did make it onto the biggest Canadian exports in the 2022 list. So, going into 2023, no one can say what refined petroleum export revenues will look like. So, if you’re planning on joining this line of business, keep in mind the pros and cons of maritime shipping. Try to stick with the most reliable ways of exporting going into 2023.

Sawmills and wood production

The wood products industry in Canada has always been a strong contender, and in recent years there’s been a steady growth in revenue for the industry. While there were many complications because of the covid-19 pandemic, the industry is still strong. This is because there is always a steady demand for wood worldwide. As such, exporters dealing in wood have had their work cut out for them. Going into 2023, the industry is showing promising signs of revenue increasing further. Out of the biggest Canadian exports in 2022, the wood products business is one of the safer options for anyone looking to get into the business. However, if you plan to deal with the US, keep in mind the common US customs clearance issues & overcoming them. No matter what you export, this knowledge will serve you well in the long run.

SUV and light truck production

The SUV and light truck production industries have been doing very well in the past few years regarding exports. In 2022, this trend has continued, with the industry earning $32,6B in total. However, due to complications with the covid-19 pandemic, experts are projecting that the overall revenue of the industry is going to drop going into 2023. That said, most of the exports in this industry (95%) were headed into the US. While the revenue is projected to drop, the overall decrease probably won’t be too significant, making this another fairly safe business to enter into 2023, keeping in mind that no one can tell exactly how the year will go. However, when it comes to export businesses, it’s generally better to be more cautious, especially when predictions are that revenue will drop in the coming year.

Oil drilling and gas extraction

The biggest export in Canada in 2022 has, by far, been the oil drilling and gas extraction industry. While this industry heavily relies on global crude oil and natural gas prices, the industry has shown massive growth over the past few years. In 2022, the industry made $104,2B, completely overshadowing any other export in Canada. Of course, rising prices have led to many investments and general growth in the industry. However, going into 2023, the industry shows no signs of slowing down, and investors keep flocking to any opportunities which involve oil drilling and gas extraction. If you’re considering joining the export business, you can’t go wrong with investing in oil drilling and gas extraction. That said, you should always be careful no matter what kind of business you invest in.

The biggest Canadian exports in 2022 – wrap up

Canada is a strong contender for a number of exports worldwide and shows no signs of slowing down. While the most prominent industry completely overshadows the other top exports, potential investors have quite a few choices if they’re interested. Anyone looking to join the export business can invest in several industries relatively safely and make quite a bit of profit. That said, no one can tell precisely how the next year will go business-wise, so we recommend you still be careful when planning your business dealing.  We hope that this list of the biggest Canadian exports in 2022 helps you better understand the topic.

Author bio

Henry Lee is a business investor specializing in export businesses and works closely with preofessionalmover.ca. In his spare time, he blogs to spread his knowledge to other potential business investors.

A last-mile delivery dispatch truck and wheelbarrow.
Archives, Global Logistics, Global Trade Daily

The Biggest Challenges of Last-Mile Delivery and How to Solve Them

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Interestingly enough, 60% of commercial delivery businesses report that last-mile delivery causes the most significant number of issues in their supply chain logistics. In fact, this part of the supply chain might be the make-it-or-break-it factor that can separate your business operations from the competition. For this reason, we are going to address the biggest challenges of last-mile delivery and how to solve them. 

Given the extensive rise in customer demands in the last couple of years, the commercial warehousing and delivery world has had to adapt to the far-reaching changes this trend has brought about. Yet, to meet set output goals, the reformation and innovations to your supply chain must be introduced methodically. In other words, you must pay special attention every step of the way, particularly to last-mile delivery processes.

Why is last-mile delivery so important?

But what makes last-mile delivery so essential? With the 2020 Covid-19 Pandemic, eCommerce has experienced an unprecedented rise of 44%. Some markups note that consumer spending rose by more than $800 billion, making commercial logistics and delivery processes instrumental in satisfying this kind of demand.

However, with this kind of rapid growth, businesses have naturally struggled to streamline their operations. Under time constraints, ad hoc solutions meant to be temporary become permanent even when they are essentially subpar.

The main reason why last-mile delivery is essential is that most customers expect no delays and no mistakes while waiting for their product to arrive. Accordingly, this final step in the delivery process will determine if you keep your customers or business associates. Furthermore, last-mile delivery expenses account for more than 50% of total delivery costs. Therefore, you can proceed to locate the specific challenges of last-mile delivery so that you can solve them and enhance your outpost.

Streamlining last-mile delivery requires a comprehensive shipment architecture to cut down costs.

Streamlining last-mile delivery requires a comprehensive shipment architecture to cut down costs.

High-cost

The high-costs related to the last-mile delivery segment affect customers and businesses, making cost-effective innovations in the last-mile infrastructure vital for doing business well. Therefore, the surge in demand businesses are experiencing requires mechanization and software that can fulfill the demand.

It is necessary to supplement pen-and-paper documentation with a comprehensive delivery database.

Essentially, your last-mile delivery has to be both seamless and inexpensive. And this can only be achieved with appropriate last-mile delivery software. Having underdeveloped software solutions can exacerbate other elements of your business operations and the supply chain. So, inadequate handling and registration of orders lead to failed deliveries, customs clearance problems, and intolerable delays, causing cash flow and staff recruitment problems. Therefore, the typically high costs of handling last-mile delivery can get dramatically higher with inadequate software solutions. So, make sure you do your research and invest in the appropriate software for your purposes.

Building customer loyalty with tracking codes

Tracking codes allow the customer to track the delivery status, making this feature a prerequisite for building a successful delivery business. Shipment tracking also will enable customers to participate in the delivery process as they can notify you if their order is experiencing issues at a particular stage. Furthermore, the psychological effect of knowing how the delivery is holding up also makes it an attractive last-mile delivery feature. In fact, most customers can actually make sense only of the last-mile delivery processes, making this stage particularly significant for their user experience.

These factors make real-time delivery status tracking indispensable for the customer and the business. However, optimizing the tracking feature for delivery businesses requires a state-of-the-art interaction between steps of the delivery process and electronic systems that communicate this information to the customer.

So, to boost customer loyalty and generate more income, you should invest in your last-mile 

architecture to provide customers with online, accurate, and detailed location updates. This increases transparency and puts email or SMS shipment tracking as a testimony of your delivery business efficiency.

Delays and failure to deliver the package

Outdated technology brings about massive hiccups that can be highly detrimental to your last-mile delivery efficiency. Unfortunately, the traditional delivery approaches are not optimized enough to reduce the high shipping costs. Consequently, a messy, outdated system will bring about delays in deliveries or, even worse, complete failures to bring the shipment to the necessary address.

Therefore, basing your location tracking or logistics on pen and paper and Google maps simply won’t do. Next to a comprehensive satellite-based location tracking system, you also need to supplement your logistics department with comprehensive communication channels that eliminate the possibility of creating information delays. Once this is set in place, your last-mile delivery output should be able to become scalable enough to ensure a smooth and well-rehearsed workflow.

Efficient route planning is a key component of last-mile delivery mechanization.

Efficient route planning is a key component of last-mile delivery mechanization.

Inaccurate route planning

The following last-mile delivery issue also ties in with the inability to establish a strong foundation in the delivery management department. Essentially, without a solid backbone rooted in efficient communication and logistical planning, your shipments will likely experience delays due to inaccurate route planning.

For that reason, you need to plan a route to achieve the maximum potential. You will also cut down costs and eliminate delays and shipping mistakes. Automatizing route planning should be just one in a series of steps in shipment management. This means investing in logistics experts and technician training alongside route planning mechanization is necessary.

All in all, we hope this article has helped you recognize the biggest challenges of last-mile delivery and how to solve them. Good luck!

Author’s Bio

Conrad Jackson is a logistics manager specializing in shipment management and warehousing. Occasionally, he also resolves commercial and logistical problems by streamlining relocation procedures in collaboration with City Movers. Another area of interest is rating technologies that ensure systematic dispatch tracking in commercial delivery contexts.

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Archives, Global Trade Daily, Warehousing

Advantages and Disadvantages of Contract Warehousing

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One of the problems you may encounter as you develop your business very often includes outgrowing your warehouse capacities. This situation can significantly stall your business operations. So, it makes sense to anticipate it and solve it quickly. However, outgrowing your storage capacities is one of those business issues that rarely gets resolved in time because it might seem like a minor issue in your business operations. Mainly because it can be quite expensive and time-consuming to upgrade or build an entirely new warehouse next to your usual tasks and projects; in comparison, contract warehousing can be a much more accessible and affordable solution. For this reason, we will discuss the advantages and disadvantages of contract warehousing.

In short, one of the main characteristics that make contract warehousing suitable for various needs and businesses is the fact that you can add extra storage space for a limited amount of time. Furthermore, you can also benefit from hiring a crew that will run the logistics of the warehouse for you. Contract warehousing might fix many problems for you, especially when facing impossible deadlines. But first, it is useful to recognize what contract warehousing exactly is.

What is contract warehousing?

This type of warehousing supposes that only a single client can access the warehouse. Essentially, an independent business will rent out the warehouse and be in charge of running, distributing, and shipping your goods for the period designated in the contract. Thus, contract warehousing represents outsourcing your warehousing needs to a third party for a specific time determined by your contract.

Therefore, you are entering a contractual arrangement under which the warehouse management agrees to take in, store, and distribute your goods. The designated validity of the contract ranges from a couple of months to several years. Furthermore, the type of compensation can be fixed, cost-plus, or combined. Regarding the functions contract warehousing can satisfy, material receiving, storage, inventory management, and shipping are the main ones. 

What are the advantages of contract warehousing?

Contract warehousing offers a lot more than public warehousing

Contract warehousing is not the same as public warehousing, although they have their fair share of similarities. Public warehousing is different in that it typically provides storage space to several clients simultaneously on a seasonal basis or at a first come-first serve arrangement.

This means businesses often may encounter problems with a lack of storage space as public warehouses simultaneously serve more clients than just one. Furthermore, in a public warehouse, you cannot count on value-added services such as kitting, custom labeling, or US laws and trade compliance. In contrast, with a contract warehousing plan, you have access to these services.

Lower capital investment

As we mentioned, buying or building your warehouse can be financially unsustainable. With contract warehousing, you already have a fully operational building, cutting the capital costs of starting your business. Furthermore, your business never experiences slowdowns or downtimes due to insufficient storage.

Lower operational costs

Contract warehouses are purposefully built to ensure maximum efficiency in terms of the availability of space and human resources. Moreover, the contract prevents you from paying several fees related to warehouse operations, utilities, mandatory maintenance, fixes, renovations, and other relevant costs. Given that the space is rented, businesses can extend or renew the contract according to their needs, leaving room for making adjustments in the amount of space you rent and maintain. However, you probably won’t be able to make adjustments before your contract is up for renewal, so be careful when outlining the initial draft.

You have access to a range of value-added services

Contract warehousing allows you to store your goods but resolves the logistics of picking up and packaging, fulfilling the orders, quality control, kitting, supply management, shipping, and other services. Basically, contract warehousing takes care of all of these phases and processes. This can let you focus on running your business and take a lot of stress away from managing your daily operations.

Disadvantages of Contract Warehousing

Less control over processes

Handing over control over your storage operations can be a double-edged sword. While relieving yourself of these responsibilities, you are also reducing the amount of control you have over the process. In that sense, you must determine if it makes sense to hand over your warehousing to someone else. For some businesses, making more time to focus on other business objectives makes more sense. For others, direct control of your inventory and dispatching may be necessary.

Uncertain economic conditions

One disadvantage of contract warehousing is related to changes in market conditions or heightened demand for warehousing space due to specific seasonal reasons. Even though this makes contract warehousing less expensive than building and running your own warehouse, you might be unable to expand your warehouse or leave your contract whenever you like.

The bottom line

After weighing the advantages and disadvantages of contract warehousing, we hope you can make the best decision for your business. Try to choose the option that makes the most sense now but also leaves room for your company to grow.

Author Bio

George Bailey has worked in the warehousing management and logistics industry for 20+ years. He has considerable expertise with regard to cost-benefit evaluations of different types of storage. Henceforth George frequently collaborates with müv | Trusted Florida Movers in order to deliver the best analytical projections and planning for businesses and individuals who make use warehousing, transportation, and relocation services.

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Archives, Education, Global Trade Daily, Warehousing

How to Successfully Relocate Your Warehouse Facility

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Warehouses are often the core of any business that uses them. So, it should come as no surprise that the process of relocating one is trying and stressful. Still, if you know how to approach the task the right way, it can be made a lot easier than it would otherwise be. So, let’s discuss how to successfully relocate your warehouse facility!

Go over your inventory

You can’t say you’ve managed to successfully relocate your warehouse facility if you end up losing some of your inventory somewhere along the way. This is why you need to sit down and double then triple check your inventory. You might be surprised by some of the stuff you still have in your warehouse. Therefore, this can also be an excellent opportunity to declutter and rid yourself of excess items. Returned or damaged goods often get overlooked for a while, and if you notice this problem here, you need to work more on how to optimize waste management in your warehouse once you’ve moved. Naturally, it is just as important to check that everything made it through the move once you’ve settled in at your new address!

Make sure safety and maintenance are up to standard

You cannot successfully relocate your warehouse facility until you are sure the new premises are safe. Sometimes, even a warehouse’s previous owner or tenant misses specific issues. Minor roof leaks, for example, can go unnoticed for a while. And yet completely ruin some of your goods by the time they get severe enough to catch your eye. That’s without mentioning all the safety and health hazards you can find in old warehouses. If you are ‘inheriting’ shelving from old owners, ensure it is sturdy and not about to collapse and hurt your workers.

Compare layouts

Once you’ve gotten used to working in a warehouse, you’ll probably follow some rather strict routines. If the layout of the new warehouse is different from what you are used to, this can mess with daily operations. For example, the loading bay may be situated in a completely different way than before. Some warehouses have ample space between shelving and the loading area, while some open up for immediate access to your inventory. To successfully relocate your warehouse facility, you need to be able to overcome such differences and work through them quickly. Of course, this also gives you a chance to try out some of your organization ideas to improve efficiency in your warehouse.

Settle on your preferred shelving solution

If the warehouse didn’t come with shelving, or if you’ve decided it needs to be replaced, you need to settle this problem well before the move date. Thankfully, it is not all stress when it comes to this matter! You get to pick precisely the kind of shelves you want in your warehouse, which can positively impact work efficiency and safety. Typically speaking, shelving as tall as your warehouse can handle has been overwhelmingly popular because of how well it utilizes all available space. Remember that it also necessitates the appropriate machinery and training to handle it!

Account for shipment and delivery problems

Naturally, these changes will likely seriously impact your normal flow of accepting and sending out goods, especially while you are still setting up. You might very well encounter a situation where you need to accept a shipment or part with something in your inventory while you are still setting up. Naturally, this would make you incapable of doing your job. This is why you need to either temporarily reroute your flow of goods to other warehouses in the city or immediately unpack part of your machines and inventory so you can start working the moment you hit the ground. However, this will slow down your process of moving.

Communicate the changes to all partners

Of course, one thing you need to understand about doing business is that everything is connected. Your sudden change of warehouse address affects more than just you. Think about all the deliveries and shipment problems we’ve already gone over. They were just from your perspective! What happens when someone needs to pick up or deliver a shipment in your warehouse? If you don’t inform your partners of the changes on time, they will probably end up at the wrong address. This would seriously mess with their delivery schedules. It is not a good way to start work in a new warehouse!

Consider getting professional help

The final question you need to tackle is whether you want to make the move on your own. To successfully relocate your warehouse facility, there is no shame in looking for professional help. Professional movers know exactly how best to handle every aspect of the move. This allows them to avoid damage to your equipment and goods. And they would likely be able to complete the job faster and more efficiently than your personnel. There is simply a difference in experience that cannot be made up for quickly. 

Final word

Knowing how to successfully relocate your warehouse facility will make a huge difference when you go through the process. Ensuring the safety of everyone involved and the efficient completion of the task is paramount. So, even armed with our knowledge, make sure to be careful!

Author Bio

Allison Grange has worked as a warehouse manager for years, closely cooperating with Centennial Moving for most of her career. She knows a lot about how best to run a warehouse efficiently and loves to share her experienced through her blog posts. 

 

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Archives, Education, Global Trade Daily, Warehousing

How to Optimize Waste Management in Your Warehouse

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Waste management is the discipline of regulating, restricting, auditing, and optimizing the waste that comes from all sorts of different activities. That being said, today, we will be talking about
how to optimize waste management in your warehouse. Most people don’t think about the waste that a warehouse produces. This is because warehouses are, for the most part, a static environment that companies use to store all the material they use for mass production.

However, if waste piles up in your warehouse, it will undoubtedly impact your production. For this reason, it is crucial that you have specific warehouse waste management measures in place. If you do this, your production will go much more smoothly.

Organize the space in your warehouse

Warehouses that are disorganized and messy are often the ones that generate the most waste. The main reason for this is that items frequently go missing in cluttered warehouses. Not only that,
but warehouses like these are often dangerous. That is why, if you want to keep track of all your inventory and make your warehouse safer, you need to organize it. An organized warehouse will
also allow your team to manufacture, store, pack, and ship merchandise more easily. Getting organized can be difficult, especially if you have never kept an eye on your warehouse.

However, if you do it, the effort is worthwhile. Consider going digital. While you are reorganizing your warehouse, you can implement software that can help you keep track of all your inventory. As a result, you’ll be able to start maintaining better inventory records—and remain organized for good.

 

Limit overproduction

Overproduction may and often is the consequence of completing warehouse activities too quickly or making orders before you actually need the material. It is common for companies to
keep up production unnecessarily to keep their employees working for more extended periods of time. This can be a problem because it can result in warehouse overflow. You can, however,
avoid this by doing one of two things.

The first thing you can do is look into reducing your employees & working hours, or at the very least not inflating production just to keep your employees working. Second, in lean batching production, you can begin to use a multi-step approval procedure. This will make it much easier to control what comes in and out of your warehouse.

Make sure you don’t hold too much excess inventory

Too much inventory takes up unnecessary room and might result in more waste. Adopting a lean strategy with real-time supply chain monitoring will help you to manage inventory levels more
efficiently while meeting demand. This allows the warehouse to respond more quickly to client demands, eliminate out-of-stocks, and save expenses. Having less inventory helps to increase
efficiency and space. A decent rule of thumb is to have no more than what you will need in 6 months. You can manage this problem much better if you have real-time inventory visibility.

This way, you can keep an eye on just how much inventory you have at any moment.

 

Reduce your use of paper

The best way to make your warehouse produce waste is to go digital. This will not only make your warehouse less wasteful, but it will also make it more efficient. If you have a practically paperless warehouse, you won’t need to use paper pick tickets, packing slips, and other
paperwork. Workers may view orders in real-time on their mobile PCs or mobile workstations.

They can also scan the products and check that they have selected the right things in the correct amounts. You will be able to do this without ever picking up a pencil. If you eliminate paper forms, you will be able to make significant savings over time. But not just that, you will also make your organization more environmentally friendly.

Create a waste management plan for your warehouse

There is nothing better than having a solid plan for the flow of waste in your warehouse. If you implement a good sort and store & software, it will save you both money and workforce. With a
good plan in place, your warehouse will have more valuable space. This will reduce the recurring clearance and shipping expenses. Not to mention it will tremendously help with waste management in your warehouse. Therefore, make sure that you have segregated areas for all the possible waste your warehouse produces. This way, you will never have to worry about clutter and junk lying around everywhere.

Provide enough staff training

The worker training component is one of the most underutilized elements in a warehouse waste control strategy. This is because when it comes to employee training courses, most companies
are often focused on handling and operating important equipment in the manufacturing or warehousing process. However, they often leave the waste management practices for last or, in some circumstances, leave it out altogether.

That being said, if you want to know the best way to optimize waste management in your warehouse, invest in a good staff training program. Spend some time analyzing and updating your current induction program. You can make corrections if you notice that you are not allocating enough time for waste management. Making
a statement about the company’s stance on green business procedures and environmental stewardship may help to set the tone for warehouse workers.

Author Bio

For the past seven years, Mark Johnson has worked as a content writer. Most recently, he’s been writing for verifiedmovers.com. He specializes in both logistics and business. He does, however, write about technology on occasion.

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Archives, Commentary, Education, Global Trade Daily

How Outsourcing Packaging Can Improve Your Business

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You might feel inclined to do everything independently when you start a business, from production to marketing, customer management, and packaging all done by a single company, beneath one roof. But, as you’ll soon learn, the modern economy can heavily incentivize you to outsource various aspects of your company.

Especially those that either take up to much workforce or require too much space. So, in this article, we will explore why outsourcing packaging can improve your business and how to find a decent company to do so.

Ways in which outsourcing packaging can improve your
business

When considering packaging, people often believe their team can handle it best. After all, what better way to connect your production to your packaging process than to have them done in the same building. And while this is theoretically true, it doesn’t paint the whole picture.

While packing your product can be more efficient, you must have the necessary space and workforce to make it so. Furthermore, just because your packaging process is efficient doesn’t mean that you will see an increase in revenue. Packaging speed is relevant for specific items, especially if you have the necessary storage space. Therefore, you’d be spending a lot of money to make your packaging process efficient while not getting anything in return.

Reduce business cost

With what we’ve said in mind, it shouldn’t come as a surprise that cost reduction is the first-way outsourcing packaging can improve your business. Namely, unless you have everything already set up, it will likely be more cost-effective to outsource your packaging to a third-party company. Yes, you will have to take shipping and storage into account, as well as some extra planning. But you can save a considerable amount of money.

Focus on your area of expertise

Properly managing a packaging department within a company requires resources. These do not only include the human resources that will pack your product and the space necessary for them to do so. But, it also includes further management staff. As you can imagine, all these resources can be saved and diverted into your area of expertise if you opt to outsource your packaging. Instead of worrying about whether you have proper packaging materials, whether your logo turned out right, and whether the staff is properly managed, you can focus on what you do best. Doing so will further improve your company and make the most of what you
already have.

While we are on the subject of recourses, it is worth mentioning that time is the most valuable resource, especially for a company manager. The time you will free up from outsourcing your packing can be used to improve your company further and increase overall revenue.

Finding a good packaging company

The only sure way in which outsourcing packaging can improve your business is if you find a good packaging company. All that we’ve mentioned so far will be for naught if you pair yourself up with subpar packers. The shipping, packaging, and storing process can be pretty complex, especially if you have a strict timeline. Therefore, it is in your utmost interest to do ample research and ensure that you pick the right packaging company for outsourcing.

Online reviews and ratings

The first step in finding a decent company to work with is to check online reviews and ratings. Any reputable company will be easy to find online on Google and the BBB website. What you are looking for are decent ratings from verifiable customers. Working with
companies that have little experience is a risk. And if your company heavily depends on the quality of the packing service, you should take as few risks as possible. Look for ratings and reviews that you know are credible, and see whether you can find companies similar to yours that worked with them previously.

Setting up for the long run

The idea of outsourcing your packaging implies that you will make a long-term business relationship with the packing company. As such, you not only need to research them, but you also need to outline your needs. Things like:

All of these are essential factors that you need to keep in mind. So don’t expect to set up a decent relationship with a simple phone call. Once you pick companies with suitable ratings and reviews, you will need to perform an interview. And during that interview, you must go over every aspect of your future business relationship. A contract outlining who is responsible for items and when is a must, and so is having a clearcut insurance policy.

Conclusion

It won’t take much experience to learn that outsourcing packaging can improve your business. You will not have to worry about the packaging process, which can be surprisingly difficult to
manage. You will also have more time and energy to focus on developing your business.
Considering the cost of setting up packaging within your company, with all the necessary supplies, staff, and extra space, you will soon see that outsourcing packing is often the more financially sound option. Nevertheless, working with a reputable company is the only way to reap the benefits of outsourcing your packaging. Reviews and ratings are your first step in finding a good company. And the rest are all about understanding your business needs and finding a company that will suit them.

Author bio

Amanda Waterson worked as a logistics manager for various shipping companies. She now focuses on consultation work and on writing helpful articles for companies like helixmove.com. In her free time, Amanda enjoys gardening.

 

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Archives, Education, Global Trade Daily, Warehousing

How to Properly Manage Your Warehouse Overflow

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Most warehouse managers have to tackle warehouse overflow at least once in their careers.

For most, this is a cause of headache as finding extra storage space for items is anything but easy. But, for those managers that know what warehouse overflow will be like and prepare for it in a timely fashion, there isn’t much cause for concern. With this in mind, we will take a closer look at what can cause a sudden disturbance in your storage and how to manage your warehouse overflow properly.

Different ways to manage your warehouse overflow

A common myth is that a competent warehouse manager will never let their warehouse overflow. This, of course, has little basis in reality. The requirements of a warehouse are based on numerous factors, many of which are entirely outside the manager’s control.

What competent managers know to do is how to keep track of these factors and prepare their storage for a potential overflow. Even seemingly minor preparations can be of great help. So, ensure that you fully understand what warehouse overflow can entail if you wish to tackle it with relative ease.

Inventory control

Inventory control is a fairly broad term encompassing many warehouse management aspects. Everything from packing materials to storage availability, inventory reorders, and warehouse
bottlenecks is a part of inventory control. And if you are to manage your warehouse overflow, you need to be in complete control of them.

In most cases, warehouse overflow happens due to a sudden influx of goods that require storage. If the warehouse runs smoothly, this influx shouldn’t be much of a problem. Yes, there will be some extra work required. But if you managed to streamline the storage process, the overflow time shouldn’t be long or particularly bothersome. It is always worth analyzing your inventory control in due depth and outlining all the aspects in which you can improve it.
The better you control your inventory, the better you’ll be able to prepare for and handle warehouse overflow.

Inventory tracking

Inventory tracking is a vital part of inventory control and a common reason why warehouse managers fail at it. Namely, if you wish to have an optimized warehouse, it is paramount that you are fully aware of what you are storing and the information regarding the stored items.

While this may seem obvious, you’d be surprised how many warehouses still use outdated ways to deal with inventory tracking. A single sheet of paper outlining what’s stored and where is hardly sufficient for modern warehouse needs. Both you and your workers need to use modern tools to keep track of your inventory and update it as need be. Only by doing so can you properly stack your warehouse and prepare it for potential overflow.

Adding overflow locations

Ideally, your warehouse will have specific sections specially reserved for overflow. If you use the total capacity of your warehouse at all times, it can be difficult to rearrange your items quickly enough to handle the sudden overflow. But, if you limit your storage use and segment your warehouse according to storage needs, you will have a much easier time storing extra items. Use your data to outline your storage needs and devise a long-term plan to maximize storage efficiency.

Mitigate overflow before it happens

With proper inventory control and designated storage space, handling warehouse overflow shouldn’t be much of a problem. Nevertheless, you’d be wise to mitigate it before it ever
occurs. As we said, you will have difficulty meeting a warehouse manager who didn’t have to tackle warehouse overflow at some point. And all of them wished that they had mitigated the
problematic aspects of it before they ever occurred.

Setting up an inventory plan

You shouldn’t consider warehouse overflow a potential disaster you hope will never happen. Instead, it would be best to consider it part of your inventory plan. Every warehouse needs to have an inventory plan to keep track of if it wishes to function correctly. Only by doing so can you organize your workforce and focus on a more long-term goal for your warehouse. A good plan lets you set goals, track their performance, and outline potential issues.

Warehouse outsourcing

Even with ample preparations and proper inventory tracking, you may run out of space in your warehouse. After all, how much available space you have is based on the storage needs and your storage capacity. The problem is that the storage capacity is limited, while needs are not. Therefore, if you have no extra room in your warehouse, you must have a contingency plan in mind. One option is to sub-let storage space from a large company. But, this is usually
good for single use. For more long-term, you should consider talking with local storage providers and seeing if they can help you out. If you establish a long-term relationship with them, you can look to help each other out when need be.

Final thoughts

To manage your warehouse overflow, you need to have a good understanding of your company and the storage process. Therefore, don’t expect that it will be a one-and-done deal. Running a warehouse means learning from your mistakes. That is the only tried and true way to improve your company.

Author bio

Nathan Curtis worked as a warehouse manager and logistics consultant for over 20 years. He now focuses on writing helpful articles for websites like roadwaymoving.com and helping
people tackle their storage and transport problems.

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Archives, Commentary, Global Trade Daily, Technology

How Drone Delivery Could Change the Shipping Industry

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It is a fact that drone delivery could change the shipping industry. Here is everything you need to know about drone delivery today!

Shipping strategies rapidly change as new technologies become a part of the logistics industry. We are witnessing a substantial reshaping of commercial shipping companies through mobile apps, GPS tracking, autonomous trucks, and many other beautiful innovations. The last one on this long list of technological development is drone delivery. It is no secret that drone delivery could change the shipping industry in ways we cannot even imagine. Let’s talk in more detail about this fantastic addition to the logistics industry and how it can improve businesses
worldwide.

The birth of cargo freight drones

If we observe the growing number of commercial drones, we can safely assume that the commercial drone market will triple by the end of 2024. A cargo freight drone is an aerial vehicle used for delivering packages to client locations. It is unmanned, which substantially reduces operational costs. Not only that, but it also has fantastic benefits for our environment. Drones do not use fuel.

Can drones deliver heavy packages?

While eco-friendly, the first question everyone will ask is, can drones replace trucks? The answer is yes. The current maximum capacity can go up to 4500 pounds.

If we consider that drone technology is still advancing, we can only expect more improvement in this area.

One thing to understand is that drones are way cheaper than trucks. If you are looking for ways to reduce costs in your warehousing business, this is the way to go.

How it works

One of the reasons drone delivery is so popular today is that it is fast. The idea is to deliver a shipment from a warehouse to a customer’s location as quickly as possible. Imagine 2-day
shipping becoming an industry standard. Both shippers and clients are very enthusiastic about this positive change.

Shipping companies mostly use trucks today, and this change in the delivery process would substantially reduce delivery time and delivery costs. The logistics industry is rapidly improving because there is an evolving relationship between drones, autonomous vehicles, and mobile robots.

We now have an alternative solution to solve the issues with increased demand and supply chain. This is the best way to provide quick delivery requirements that jumped up because of increased
online shopping.

How it all started

The first major company that started using drones for delivery was Amazon. They experimented with this option back in early 2013. Even though this was an amazing idea, they faced many challenges, and the project was delayed. The idea was to use drones as a part of their Prime shipping service.

What are the main advantages of drone freight delivery?

We already mentioned how drone delivery reduces shipping costs and delivery time. There are no more traffic jams, which is a fantastic improvement. And, since it is an unmanned vehicle, there is no need to hire a human crew to operate the trucks. Furthermore, it is an eco-friendly way that helps reduce our carbon footprint.

Another huge benefit is that drones could also improve the restocking process. Just as companies use drones to connect with customers, they can also use them to create communication between warehouses, retailers, and production factories.

Besides all of these outstanding advantages, drones also solve the problem of delivering to remote locations where the infrastructure is undeveloped.

How drones improve eCommerce and Retailers

We spoke about the communication between warehouses and retailers with the help of drones. The technology makes it possible to use drones to scan through inventory, navigate around isles, and improve internal processes. This approach is much quicker and faster. You can reach the highest shelves in a couple of seconds and quickly locate any package. Retailers will improve the organization of their warehouses and reduce human errors in their supply chain.
While this advancement in technology is rapidly improving the warehousing industry, it is highly likely to eliminate the need for the human workforce completely.

There is no more doubt that drone delivery could change the shipping industry

There is a divided opinion on the use of drones for commercial purposes. A vast number of people do not like them. They are constantly flying above our heads, and drones come with cameras, so there is always a thought that someone is watching. However, even with this, there is no doubt that commercial companies want to use drones, and there is nothing that will change this.

Furthermore, the increase in drone shipping will also affect the number of online orders. If you can purchase something and get it in two days or less, the impulse for buying will go up.

Another vital thing to consider is that this change will jeopardize retailers. If people have the option to shop from home and get a quick delivery, retailers will have problems with trying to
get the customers to visit their stores.

There is also a question of law regulations regarding drones in different countries. International shipping will be affected by this. Furthermore, it is crucial to understand how companies will
approach the process of handling damaged packages.

While there is no more doubt that drone delivery could change the shipping industry, it is fascinating to see how these changes affect the world we know. Everything is moving forward, and the way we shop will rapidly change in the months and years to come!
Author Bio

John Smalls is a professional blogger and content creator for Best Movers in Florida. He has a passion for technology, and John’s articles explore how technological advancements change the world.

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Archives, Commentary, Global Logistics, Global Trade Daily

Why Benchmarking in Your Supply Chain is Vital?

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A well-running, well-optimized supply chain is a dream for any shipping manager. Unfortunately, setting up and maintaining such a chain is anything but easy. To make this task manageable, managers need to utilize various tools and techniques. And one of the best ones to start with is benchmarking in its multiple forms. For this article, we will take a closer look at why benchmarking in your supply chain is vital.

Understanding benchmarking in your supply chain

In practice, benchmarking means setting goals, long-term or short-term, specific or reasonably broad. By setting goals, you can monitor how well your supply chain is doing and whether there are areas you can improve. At first glance, this may seem simple. But, it doesn’t take much experience with benchmarking to learn that setting the right goals and monitoring supply chain performance is anything but easy. In most cases, proper benchmarking requires experience within a specific supply chain and broad knowledge of the relevant industries.

While there are different ways to look at benchmarking, we will use the common practice of separating it into three groups. Internal, external, and competitive.

Internal

Companies that run several facilities within a single supply chain mostly rely on internal benchmarking. Through it, they can compare and analyze various processes within the supply chain and see how well each facility is doing. Specific benchmarks like inventory turnover or perfect order index give precise info on how well each of the facilities in the supply chain is performing. The more specific a benchmark is, the easier it is to outline potential issues and how
they can be addressed.

External

External benchmarking includes analyzing areas outside your company’s direct industry or sector. It is mostly used after the internal benchmarking has been taken care of. External benchmarking can give you new ideas on how your company can expand and to which areas if done correctly. You’ll have a hard time finding a more productive way to find new ideas, as external benchmarking includes industry analysis and investment evaluation.

Competitive

An intelligent person learns from their mistakes. But a more competent person learns from their competitors. If you feel this can apply to your supply chain, then competitive benchmarking is
your best choice. If a company is doing well, it can often be challenging to reverse engineer its success. This is why competitive marketing is often done by consulting and research firms that specialize in providing benchmarking studies. Through such studies, you can identify both the strengths and weaknesses of a specific company and see whether you can use any.

The benefits of benchmarking

Three types of benchmarking. Three ways in which you can gather, analyze and implement data. But, what are the most significant benefits you stand to gain by going through the arduous benchmarking process? When it comes to making savvy business decisions, benchmarking is your most valuable tool, particularly if you use all available methods.

Knowing where you stand through financial analysis

Knowing where your company stands will give you a good idea of how to proceed. For instance, you may feel that your company isn’t gaining enough revenue. But, a comparison with your local competitors will show that this is not due to poor performance but due to market oversaturation. You will need to implement external benchmarking instead of improving your company through internal benchmarking.

Comparing processes and performance

Running a supply chain entails numerous parallel processes that often have a massive impact on one another. It can be hard to determine which processes are beneficial and working as intended
and which are ineffective and in dire need of change. Here is where specific, well-organized benchmarking can bring you the necessary answers. Perhaps you will learn that outsourcing is your best option. Or that you may need to use a more powerful piece of technology to handle the increasing demand. You can set clear metrics to follow and determine how your processes can improve through benchmarking.

Understanding specific functions within your supply chain

Benchmarking in your supply chain can also help you learn more about your company. If you wish to examine the more minute details, you can set up internal benchmarking for specific functions. For instance, you can investigate a single customer’s journey through your company and see how their needs are met with your supply chain, from order placement to transport and storage management. Such investigation can outline the weak links in your supply chain and help you identify potential solutions.

Strategy development

On the other hand, benchmarking can be used to gather the more robust data necessary for strategy development. If you wish to expand your supply chain and move into new markets, you will need to rely on external and internal benchmarking. Using them lets you learn how suitable different markets are for your company. Furthermore, you can use competitive benchmarking to
learn whether other companies within the market aren’t making full use of it. And if so, why. Such information can be invaluable as it saves you from risky investments and business moves.

Final thoughts

It should be evident that you need to have enough room for benchmarking in your supply chain. Using it can set you up to learn about your company and your marketing. And only through learning can you ensure that your company improves and grows. Without benchmarking, you will have to rely on your innate business savvy and analytical skills. And while those two can be powerful, you still want to use the hard data that benchmarking provides.

Author bio

Justin Chandler has worked as a transport manager and logistics agent for over 20 years. He now focuses on consultation work and writing helpful articles for Beltway Movers and other companies.