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How 4PL Uses Logistics Software to Revamp Supply Chain Management

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Archives, Global Logistics, Global Trade Daily, Software

How 4PL Uses Logistics Software to Revamp Supply Chain Management

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Outsourced services offer substantial time, money, and investment savings, allowing businesses to allocate their resources to other priorities. Fourth Party Logistics companies (4PL) otherwise known as Lead Logistics Providers (LLP) are capitalizing on outsourcing advantages by developing the vital technologies their clients are seeking for value-added logistics and supply chain management services. The 4PL business model, while simple, is re-shaping logistics for small and large businesses across numerous industries.

4PL providers offer their clients personalized services in end-to-end supply chain management solutions. They manage specific supply chain processes including procurement, storage, distribution, and
transportation, but very often have oversight of them all. A 4PL takes on the same goals as their clients and has the responsibility of making the best logistics decisions for them.

This complex management role requires in-depth industry knowledge of their client and software network, the ability to match solutions to various inventory, vendor, visibility, transportation, and
communication needs.

Providers use a customized combination of core logistics software, tailored to each individual client and tightly integrated across all processes. Some of the most in-demand 4PL solutions and technologies include the following:

Logistics Analysis & Planning

As a managed service provider, 4PLs employ data collection and analytics software to model client industry trends, demand forecasting, and logistics scenarios in order to address key business needs. These tools may include supply and demand projections, cost estimates, financial planning, and “what-if”  modeling software.

Automation programming can be designed to respond to data collected from planning stages to order and replenish inventory, alert management of potential issues, and suggest corrective actions.

Another common and popular tool involved in logistics planning is a Warehouse Management System (WMS). Warehouse Management Systems employ barcode, RFID scanning, Electronic Data Interchange (EDI), and way-finding programming to optimize inventory storage, picking, packing, and order fulfillment processes for the following steps in the supply chain.

Vendor Coordination Solutions

Several key technologies are involved in coordinating the many components of complete supply chain- suppliers, transportation services, and warehouses. CRM software serves as a vendor-facing interface for the 4PL company, managing clients’ relationships with each 3PL.

Transportation Management Systems (TMS) organize and automate supply chain distribution by integrating order management systems, warehouse management systems, shippers, carriers, and receiver software. TMS functions include messaging applications, real-time shipment data, route planning and optimization and freight management.

Information Management

The modern supply chain runs on in-depth, high quality data about every step in the process, from procurement to final destination. The Internet-of-Things (IoT) employs sensors, scanning devices, and

real-time GPS to track and trace assets at any point in of the processing journey. 4PL technologies must be advanced enough to handle big data, integrated IoT, and up-to-the-second reporting to ensure that all resources are accounted for.

A reliable database and configurable business logic programming enable 4PL software solutions to maintain complete oversight and make decisions about logistics processes with all the relevant details
on-demand. Cloud software is also an integral part of many 4PL solutions as it provides low-cost options for clients and convenient data access. 4PL providers maintaining the cloud solution ensure a steady revenue from subscription-based payments.

4PL entities in need of the most cutting-edge solutions and 3PL companies expanding into 4PL capacities would benefit from technology service providers with industry-specialized experience in developing logistics software.

About Chetu

Chetu is a US-based software development company that specializes in designing and programming value-added software solutions for supply chain and logistics companies across all industries around the globe. www.chetu.com

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Archives, Global Logistics Planning Guide, Global Trade Daily

GLOBAL TRADE’S ANNUAL LOGISTICS PLANNING GUIDE PUTS YOU IN THE POWER POSITION AGAIN

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2020 was a historic year from politics to a pandemic, but professionals working in logistics, in particular, faced huge challenges and had to dramatically pivot their strategies. As 2021 kicks off, professionals working in logistics, notably 3PLs and 4PLs, will need to remain flexible as some of the changes from 2020 are here to stay.

To prepare you for what lies ahead, here are 10 supply chain and logistics trends to watch for in 2021.

1. Shorter Contract Terms

As we all witnessed, capacity was incredibly tight throughout the year, giving carriers more negotiating power for higher rates, especially leading up to the holiday season. Contract trucking rates are heavily influenced by spot market movements so instead of conducting an RFP in Q3 or Q4 for the year (which is typically RFP season) and locking in a yearly rate, shippers created shorter contract terms, hoping rates will improve in 2021. While this helps shippers to lock in rates in the short term (and helps them budget), it is still a gamble because rates could remain steady or increase. 

This year, I anticipate that this trend will continue. Shippers and carriers want and need more flexibility in this volatile market. Shippers are hoping for lower rates in the future, and carriers want to take advantage of a hot spot market without rejecting previously contracted freight. 

2. Tech Investment for Shippers

Unless new technology investments are truly essential to running the business, many shippers will not be investing heavily into new technology until the pandemic is over. While technology will be a good investment in the long run, it’s often a “want” over a “need,” and it takes a lot of human capital, research, and time to invest in the right technology that will pay off for your business. Right now, every professional working within the supply chain has their hands full running the business, so I anticipate less money and time spent on tech investments in 2021.

While shippers may be hitting the pause button, logistics companies, especially 3PLs, have an opportunity right now to leverage their greatest asset: people. What is most important in our current environment is trusted relationships and human touchpoints. The industry is still scrambling to keep up with the demand for a constantly changing global supply chain, and handholding and relationships will go further than flashy new technology. 3PLs can capitalize on this by spending time discussing with carriers and customers how they can solve their current challenges with best-in-class customer service. If your company is leaning on a new technology or making an investment into this area, this is the year to publicize your innovation widely because there will be less technology noise in the marketplace. Have a technology story that got your company through 2020? Now is the time to tell it. 

3. Consumer Buying Behavior Will Remain A Top Stat for Logistics

3PLs are tracking consumer behavior closer than ever. Due to the pandemic, consumer buying behavior changed dramatically, disrupting the supply chain in ways not previously seen. Because of consumers’ impact on the supply chain and demand of freight, 3PLs, in particular, will continue to follow key consumer buying behavior data. 

Additionally, in 2021 I expect continued steady growth in-home delivery services (from retailers to foodservice) so all eyes will be on final mile demand. This year, we’ll see more online marketplaces and innovation within final mile delivery. With new companies and offerings entering the industry, 3PLs have an opportunity to forge new relationships and add core competencies with these businesses to gain an advantage over their competitors. 

4. Spot Market Will Likely Stay Hot in 2021 

We might call 2021 the Capacity Games–may the odds be ever in your favor. Carriers are entering 2021 with negotiating power. Amidst one of the most volatile marketplaces in recent memory, the growing disparity between driver supply and truckload demand has resulted in increasing tightness. When this is the case, we expect upward pressure on truckload rates, just as we did throughout the back half of 2020. We may have hit the peak of inflated spot rates, but with the pandemic still raging, carriers have the upper hand on rates and may decide to take fewer contracts this year to reap the benefits of the spot market. When some form of normalcy does return, we will see another round of shifting capacity and supply chain volatility; 3PLs that can navigate the chaos and guide their customers through it are going to come out on top with relationships and case studies that will speak volumes. 

If you’re a shipper or a 3PL, this means you have to think about the whole carrier experience beyond just rates. Carriers want to get paid quickly and treated well, so if the facility they are servicing is difficult to navigate or doesn’t offer any driver amenities, your freight is far less desirable compared to previous years. To entice carriers, shippers and brokers need to be creative, reliable and more than anything, flexible. 

5. Carriers Focus On Diversifying Their Book of Business

Prior to the pandemic, most carriers specialized in one or a handful of specific industries. This was a sound strategy because specialization allowed carriers to set themselves apart from the competition by tailoring their vehicles, routes and service to the needs of shippers (who all have different needs, depending on their industry). COVID disrupted this strategy. When the pandemic struck, certain industries completely shut down. From automotive to restaurant services, carriers can no longer focus on one niche industry as the pandemic showed how having all of your eggs in one basket is ripe with risk in these times.

This year, I anticipate more carriers will diversify the industries they support. 3PLs have an opportunity to help and should look for opportunities to offer freight to their trusted carriers who previously may not have considered that type of freight before. By partnering closely with carriers to educate them on the needs of that particular freight and help them enter a new industry, 3PLs will be able to solidify their carrier relationships while also problem-solving for shippers who are desperate for capacity. 

6. Reefer Capacity Will Be Tough To Come By 

People are still working from home. COVID numbers are at an all-time high, and many cities/states are under curfews and restrictions to discourage people from leaving their homes. But people still have to eat. Groceries stores and food delivery will continue to be in high demand, translating to huge demands on reefer capacity. Add to this the reefer capacity needed to effectively distribute the vaccine and the grip on capacity tightens. This isn’t news. This has been the case since March 2020, but it’s only going to continue. 

3PLs have to remain nimble and creative to source reefer capacity and make sure the service they offer those carriers is top-notch to ensure those carriers will continue to partner with them. 3PLs who are able to keep reefer carriers moving and maximize the efficiency of their assets will be the ones who benefit on both sides of the customer/carrier relationship. 

7. Regional Distribution

Because of the supply disruptions in 2020, there was a renewed focus on regional distribution. Amazon led the way during COVID, relying on their regional distribution network when drivers were hesitant to drive long hauls far from home. This will continue to be a go-to strategy for many shippers, and I anticipate we will see many retailers investing more into their regional distribution strategy. This shift will create two demands: final mile and long haul. 3PLs that are able to competitively source and seamlessly provide these two modes to their customers at varying degrees of volume will be the heroes of 2021. 

8. Opportunities for Mid-Size to Small Carriers To Get Access To New Customers

With the COVID vaccine distribution, many large carriers, seasoned in pharmaceutical freight, have been tapped to move this critical freight which means they will not be able to fulfill previous contracts. So, who is going to move that freight? Mid-size to smaller carriers have an opportunity right now to get in with the companies left in a lurch. 

This may not be the strategy for every carrier, but with so much capacity going to the vaccine (as well as all the implementation needed to distribute a vaccine), carriers have an opportunity to service freight previously unavailable to them. 

3PLs, keep this in mind. Follow which large carriers are transporting the vaccine and take advantage of opportunities to follow up with their known customers who may be hurting for capacity. While historically technology, integration, volume commitments, etc. were barriers for mid-size to small fleets in providing service to large shippers, 3PL relationships should be providing access to these large customers as need for capacity widens. 

9. Relationships Continue to Be King

As isolated as many of us have been in 2020, relationships and personal connections mean more than anything. Both individuals and companies want to work with people they know and trust and can rely on to deliver in a time of need. Logistics is truly a people business. No matter what role you play in the supply chain, if you focus on building and deepening your professional relationships, you are investing in your future. 

10. Greater Focus on the Value of Drivers/Carriers

I’m hopeful 2021 will be the year that drivers/carriers will finally get the full respect they deserve. From keeping our grocery stores stocked to distributing the COVID vaccine, carriers/drivers have been on the frontlines of this pandemic. The past few years, the industry has talked about a driver shortage with the narrative focused on a lack of talent entering the industry. But if we take a step back, the problem isn’t people’s interest, it’s because these essential, frontline workers deserve a better wage. 

If we truly want to solve the driver shortage and respect the people who have been front and center in this pandemic, the industry must reward carriers/drivers with better pay, benefits, and support. 

As we continue to progress into 2021, it’s clear that many of the supply chain impacts from 2020 are here to stay. Flexibility and a commitment to relationship building should be a priority for any logistics company looking to navigate the challenges ahead.

_____________________________________________________________________

Aaron Galer serves as senior vice president of Strategic Accounts at Arrive Logistics, “a carrier and customer-centric” logistics company that is headquartered in Austin, Texas, and has offices in Chicago and Chattanooga, Tennessee. Aaron is focused on growing and strengthening partnerships with Arrive’s enterprise shippers and carriers as well as tailoring unique solutions specific to their needs, industry and logistics challenges. He also serves as an internal resource to the entire Arrive team.  Prior to joining Arrive, Aaron helped launch the Amazon Freight program and has nearly a decade of logistics experience with Fortune 500 companies including Expeditors and Starbucks. His past responsibilities include building and overseeing transportation teams that manage large transportation spends and developing technology for large shippers. Aaron is active in the supply chain communities in the Greater Grand Rapids and Greater Seattle areas; he holds certifications in Lean Six Sigma and with ASCM and has a degree in Supply Chain Management from Michigan State University.

logistics provider
Archives, Global Logistics, Global Trade Daily

What Makes a Good Logistics Provider?

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A business is only as good as its ability to deliver. This is especially true for small reseller traders who are often responsible for delivering goods from the global supplier right into the hands of their end customers. For these players, delays and missing or damaged goods can mean a devastating loss of revenue and reputation. Smaller traders who bid on contracts to supply goods to large end customers are an often overlooked, yet integral, part of the supply chain to deliver critical goods all over the world. We work with many of them on our trading platform and get an intimate view of their challenges as a result. When goods don’t arrive as expected, it is not only the traders and their customers that are hurt, but also the communities and institutions they serve. For a business working hard to compete, especially in today’s particularly challenging pandemic-affected trading environment, the choice of a quality logistics provider can be the difference between success and failure.

Although delivery is a critically important piece of the trade business for enterprises of every size, surprisingly few good resources exist to assist in finding the right logistics provider for a given project. We’ve known many businesses to resort to a quick Google search or a referral from a friend. This is risky at best, given what’s at stake. Still, without knowing what to look for and what questions to ask, it can be difficult to know where to begin in the search for a high-quality partner, and the desire to just find someone quickly can take over. As a result, traders often deal with poor service and a lack of attention from their logistics provider when a better partner could have provided a much better experience and result.

As a platform that vets trade service providers, constructs deals and manages trade execution for a large volume of trades into challenging markets, we’ve learned by necessity to identify the hallmarks of high-quality logistics providers and to note the red flags that signal ineffective ones. These are the qualities we look for in every logistics partner we recommend:

Experienced – A wave of brand-new companies have sprung up looking to fill the demand created by the COVID-19 pandemic. Always work with logistics companies that have been in operation for a number of years. Not only does this show that the company has a history of success, but experienced logistics providers will have a better understanding of local regulations and possible sticking points.

Good Customer Service Team – A professional, knowledgeable and robust customer service team will not only facilitate clear communication but is a sign of a quality company. Clear and effective communication from logistics providers also saves traders time and energy building and executing trades.

Responsive – It is important that logistics providers respond to messages quickly and are proactive in providing updates. When goods arrive at the right place on time, this should be communicated quickly. When communication is slow and sporadic, it is often the case that the company is unorganized, or goods are not where they are supposed to be.

Diligent – The logistics of international trade are complicated. Attention to detail is necessary as goods change hands and pass-through ports. A diligent company will have correct documentation for the goods and communicate effectively with the necessary parties, avoiding tax penalties, delays, and confusion that cut into revenue.

Registered with Appropriate Government Agencies – Logistics providers must be registered with the necessary agencies to do business in the jurisdictions in which they operate, such as the local revenue authorities. It is important to confirm that the company is registered to conduct business in the countries where the goods are to be picked up and delivered, and anywhere they may land in between.

Global Presence – A global presence is both useful and a sign of a reputable logistics provider. However, many logistics providers do not operate globally. Minimally, the company you choose should operate in the countries relevant to the transaction. Established companies with a large presence are often more experienced, and may be able to offer additional services, or deal with complications more quickly and easily than smaller operations.

Doing the research to find companies who check all these boxes pays dividends in many ways. A good logistics provider will save their customer time and energy by transporting and clearing goods efficiently and ensuring they arrive at the delivery location on time. Good logistics providers fix mistakes and resolve complications quickly, without requiring significant involvement from their customer, the trader. Put simply, the best logistics providers are capable, easy to work with, and reliable. They deliver every time because they communicate well and have accumulated a wealth of industry knowledge after years of experience. The time and effort invested to find a partner you can rely on for this level of service is small compared to the benefits of peace of mind, help when you need it or when things don’t quite go according to plan and the time saved in executing the transaction, not to mention the value of being known to your customers as a business that can be relied upon to deliver, every time.

_________________________________________________________________

Chris Hale is the Founder and CEO of Kountable, Inc., a San Francisco-based technology company actively solving the world’s distribution problem by building a trust network for global trade that integrates, digitizes, and optimizes collaboration between qualified big and small players. Its cloud-based global trade platform delivers transparency, governance, and efficiency in trade by connecting the biggest global sellers with the most qualified buyers in challenging economies.

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3pls, Archives, Global Logistics, Global Trade Daily, Warehousing

3 Pros and Cons of Backorders in Ecommerce

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With the 2020 tumult disrupting global supply chains and increasing consumer reliance on online shopping, there’s a growing interest in ecommerce backorders as a way to safeguard revenue. Uncertain availability means businesses can face listing a product as either unavailable or on backorder. While backorders may seem to be a smart path because it contains potential profits, businesses may also be putting customer lifetime values at risk.

So, let’s look at the pros and cons of three critical areas governing backorders to help ecommerce businesses determine if they’re a smart path forward.

Inventory optimization potential

Backorders give you one way to maximize your revenue and inventory, even when limited space is available. It is often considered when ecommerce stores hit a growth spurt.

The Pro

Relying on backorders can help you sell a product without needing to carry a large stock volume at every moment. Companies can accrue backorders and then fill them once reaching a specific volume, making it easier to run operations in a smaller location. This can be a way to generate revenue while also minimizing rental or building purchase costs. Fulfillment may be slower, but overall expenses are generally lower.

The Con

Using backorder techniques to minimize your inventory on hand – such as setting a threshold of orders before you restock – gives your audience more time to find alternatives and ask for refunds. If the threshold is too high, you run the risk of losing revenue and getting hit with bad customer reviews that may harm future sales opportunities. If the threshold is too low, you can end up buying regularly but making a few customers wait for each cycle, which can cause unnecessary frustration and lower customer lifetime values.

If just-in-time fulfillment is a compelling option for your company, crunch the consumer data you have and run tests. See how long people are willing to wait for your goods, and if you can fill things consistently enough to avoid buyers becoming upset.

The revenue question

Ecommerce backorders also provide companies with a chance to generate ongoing revenue. However, this comes with a risk to operations if you can’t secure it. That depends on a mix of your supply chain speed and customer service capabilities.

The Pro

Backorders allow companies to maintain revenue even when there is a disruption to inventory or restocking. Generating ongoing revenue can keep the lights on during delays, ensuring that you meet all customers’ demands.

The Con

The potential con of backorder revenue is that it is precarious. You can’t really consider it “won” until goods are delivered. If you establish backorders and rely on this revenue but then face a wave of cancellations because of delays, you may end up short and face a rising debt.

Banking on revenue from backorders puts ecommerce companies in a risky position if they are not financially secure based on in-stock products and orders they can currently fill.

Space in your space

Growing ecommerce companies often face crunches for space if they’re not using warehousing and backorder services from a 3PL. When products are in demand but space is limited, some companies feel they need to rely on backorders to protect revenue. This can be beneficial but does come with other risks.

The Pro

Backorders allow ecommerce companies to utilize some of their existing warehouse and floor space best. If you stock a good after an order or only have room for small batches, backorders allow you to accrue sales continually while working in minimal space. Organized businesses can use cross-docking techniques to fill orders rapidly once goods come in, minimizing processing, and other times. When products take up a large amount of space or a warehouse us pulling double duty for other activities, backorders add flexibility to space management.

The Con

On the other hand, backorders can create significant space concerns and constraints if not appropriately managed. A high sales volume followed by many order cancellations can mean companies have too much inventory for their space. If products are perishable or easily damaged, disruptions in backorders can lead to more spoilage or damage, harming revenue potential.

Ecommerce backorders also increase the need for space as companies try to manage fulfillment. Pre-staging orders can be necessary if you have a large volume of orders waiting on a backordered product. However, that requires space for prepared boxes, room for pickers and packers outside of typical areas, and storage for things like tape and filler.

Space constraints will drive backorder considerations. The critical thing to remember is that you’ll still need room to manage fulfillment and backorder support only delays that need at best.

How well do you communicate with customers?

Success with ecommerce backorders depends significantly on your ability to communicate. Not only does a backorder need to be clear on sales pages, but support teams need a consistent way to explain backorders to customers. You’ll need to provide updates proactively and alleviate frustrations to protect payment.

Most ecommerce companies that support backorders see an increase in customer service demands. Hiring additional team members should be part of your revenue consideration. Also, existing customer service needs to have a strong enough reputation that you can withstand any angst that comes from backorders.

Avoiding cancellations, maintaining order volume, and securing positive reviews will depend on how well your service team explains the value of backorders to your customers.

___________________________________________________________________

Jake Rheude is the Vice President of Marketing for Red Stag Fulfillment, an ecommerce fulfillment warehouse that was born out of ecommerce. He has years of experience in ecommerce and business development. In his free time, Jake enjoys reading about business and sharing his own experience with others. 

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Archives, Global Logistics, Global Trade Daily, Ocean Ports

TOP 10 FREIGHT FORWARDERS OF 2020

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By occupying six slots, including the top three, the Alpine Region of Central Europe dominates Global Trade’s list of the top 10 freight forwarders of 2020.

 1) Kuehne + Nagel

With more than a century specializing in the transportation space, Kuehne + Nagel serves multiple industries, including high tech, industrial products, perishables, pharmaceutical and healthcare industries. Services include: order management, warehousing and storage, supply chain consulting, project management, air, rail and sea cargo and expo and events. Kuehne + Nagel Management AG, Dorfstrasse 50 Schindellegi, 8834 Switzerland, Tel: 41 44 788-9511.

2) DHL

DHL Supply Chain and Global Forwarding Divisions provide freight forwarding services throughout Europe, Russia and the Middle East via rail, air and road. The company’s global reach extends from transportation and warehousing to industry-specific solutions designed to streamline worldwide logistics for its clients. Services include: dedicated freight management, warehousing, customs services, freight security, supply chain management and air, road and sea shipments. DHL Supply Chain and Global Forwarding, Deutsche Post AG Headquarters, Platz der Deutschen Post, 53113 Bonn, Germany, Tel: +49 228-1820.

3) DB Schenker

The logistics division of German rail operator Deutsche Bahn AG provides an array of logistical and supply chain consulting services for clients throughout the automobile, technology, consumer goods, special transport and trade fair logistic industries. Services include: e-commerce solutions, fulfillment logistics, lead logistics services and intermodal transportation. DB Schenker, Richard-Wagner Strausse, Essen, Germany, Tel: +49 (0) 201 8781-4990.

4) (tie) DSV Global

Headquartered just outside of Denmark’s capital of Copenhagen, DSV offers worldwide warehousing and transportation solutions for European and North American companies looking for supply chain solutions across the global stage. Services include: full or less-than-truckloads, warehousing, order fulfillment, intermodal, air, sea and rail shipments and “supply chain innovation.” DSV + Panalpina, Hovedgaden 630, 2640 Hedchusene, Denmark, Tel: +45 43 20 30 40.

4) (tie) Sinotrans Limited

With offices throughout Asia and the Pacific Rim, Sinotrans offers transportation solutions from warehousing to getting goods to their final destinations. Services include: warehouse management, distribution solutions, cross border freight hauling, intermodal transport, project lead and “innovative supply solutions.” SinoTrans Ltd., 6F Suite B Waiyun Building, Building 10 Yard 5 Anding Road, Beijing, China 100020, Tel: 86 10-5229-5600.

6) Expeditors

The Fortune 500 service-based logistics company believes because it does not own the aircraft, ships, or trucks they use every day on six continents, they can be highly flexible when it comes to supply chain management. Services include: supply chain design and optimization, order management, fulfillment, warehousing, customs brokerage and air, sea and ground transportation. Expeditors International, 14301 24th St E, Sumner, WA 98390, Tel: (253) 863-5502.

7) (tie) GEODIS

The French logistics company aims to be a growth partner with its clients through its proven expertise and emphasis on excellence. Services include: supply chain optimization, freight forwarding, contract logistics, distribution & express and ground transport. GEODIS, Espace Seine, 26 Quai Charles Pasqua, 92300 Levallois-Perret, France, Tel: +33 1 56 76 26 00.

7) (tie) Bolloré Logistics

A global leader in international transport & logistics, the French company is committed to delivering reliable, flexible, innovative and value-creating solutions that help clients grow. Services include: transport, trade compliance, contract logistics, global supply chain, e-commerce and customer care. Bolloré Logistics, Tour Bolloré, 31-32 quai de Dion Bouton, 92800 Puteaux, France, Tel: +33 (0)1 46 96 44 33.

9) Nippon Express

First established in 1937, the Japanese company operates in more than 40 countries, with clients throughout Asia, North America and Europe and overseas transit facilities in Thailand, Indonesia and Malaysia, among other locations. Services include: warehousing, distribution, cross border freight hauling, fine arts transport and moving services. Nippon Express, Higashi-shimbashi 1-9-3, Minato-ku, Tokyo, Tel: 81-3-6251-1111.

10) Hellmann Worldwide Logistics

Founded in 1871 by Carl Heinrich Hellmann, who as the lone employee used a horse-drawn cart to deliver parcels in and around the town of Osnabrück in northern Germany, Hellmann today has a worldwide network of 20,500 people in 489 branches in 173 countries. Services include: logistics, insurance, security, technology, e-commerce and road, air, rail, and marine transportation. Hellmann Worldwide Logistics GmbH & Co. KG, Elbestrasse 1, Osnabrück, 49090 Germany, Tel: 49-541-605-6450.

We created our list by considering three other lists that were released this year. In September, Armstrong & Associates, Inc. (A&A), an internationally recognized key information resource for 3PL market research and consulting, put out a list of 2020’s top 50 ocean freight forwarders that is based on 2019 TEUs, logistics gross revenue and air metric tons.

Actually, A&A updated an earlier list because two heavy hitters in the ocean freight industry, DSV and Panalpina, merged in 2019. Then came COVID-19 early in 2020, which necessitated an examination of responses to the global pandemic.

A “key trend we’re watching is the impact COVID-19 is having on various modes of transport,” A&A President Evan Armstrong explained to Logistics Management Executive Editor Patrick Burnson. “Ocean capacity may open up, but rates will escalate. In the meantime, the air cargo sector will become more reliant on expensive freighters, as passenger traffic remains in steep decline in the international marketplace.”

Global Trade also considered 360 Research Reports’ Global Ocean Freight Forwarding Market Size, Status and Forecast 2020-2026 examination that focused on 25 companies and was released pre-pandemic, in January.

Thanks to the A&A and 360 Research reports, there were definitive answers about which companies would occupy most of Global Trade’s top slots. However, we also turned to a third report to settle any differences between the other two: a list of the top 10 3PLs in the world released In July by TradeGecko, which is part of Intuit QuickBooks, an accounting software company.

While freight forwarders on the Global Trade master list serve U.S. markets and have facilities in the States, our collection doesn’t exactly scream “American.” Fortunately, Armstrong also shared some wisdom with Burnson that may have Yanks ranking better in 2021. “We’ll see more shipping and sourcing in North America as shippers reevaluate their options overseas,” the A&A president says. “The ongoing trade tensions with China will also exacerbate this situation.”

The U.S. companies that did not make our top 10 but would have easily made our top 50 include: C.H. Robinson, XPO Logistics, United Parcel Service (UPS), Yusen Logistics, Mallory Alexander, Odyssey Logistics and Technology and Horizons Air Freight.

____________________________________________________________________

Armstrong & Associates, Inc.’s Top 50 Ocean Freight Forwarders of 2020: https://www.3plogistics.com/3pl-market-info-resources/3pl-market-information/aas-top-25-global-freight-forwarders-list/

360 Research Reports’ Global Ocean Freight Forwarding Market, Size, Status and Forecast 2020-2026: https://www.360researchreports.com/global-ocean-freight-forwarding-market-15076500

TradeGecko’s Top 10 3PLs in the World: https://www.tradegecko.com/blog/supply-chain-management/top-10-3pl-companies

Logistics industry
Archives, Global Logistics, Global Trade Daily

Restructuring of the Logistics Industry in Response to COVID-19 Chaos

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In recent years, logistics has attained increased prominence within businesses due to rising awareness about its strategic, operational, and financial impact on the success of a business. With growing technological advancements, logistics companies are now transforming themselves from a traditional set-up to an IT as well as technology integrated approach to cut down the incurred costs and meet the service demands. However, the sudden outburst of the COVID-19 pandemic has upturned the normal functioning of the logistics sector, leading to the adoption of advanced technologies and safety measures.

Every kind of development impacts several things around the globe. In the same way, various advancements in marketplaces that appear unrelated can have a knock-on effect on how we work and do business. Similar to several other industries, the logistics industry is likely to be greatly impacted by the changes taking place around it. With time, the need for efficient logistics and supply chain has become more important than ever before.

What is Logistics and Why is it in Great Demand?

In recent years, logistics has attained increased prominence within businesses due to rising awareness about its strategic, operational, and financial impact on the success of a business. Logistics firms connect businesses to marketplaces by offering numerous services such as multimodal transportation, freight forwarding, warehousing, and inventory management. They are essential for global manufacturing, which is complex and multi-locational.

Currently, with evolutions in all verticals around the world, the logistics companies are transforming themselves from a traditional set-up to an IT as well as technology integrated approach to cut down the incurred costs and meet service demands. The logistics industry’s growth relies much upon its soft infrastructure including training and policy framework as much as the hard infrastructure.

In order to keep up with the fast-paced economic growth of the logistics sector, it is essential to implement advanced technologies. As per market experts from Research Dive, the growing need for operational efficiency is projected to boost the global logistics market growth in the upcoming years. In addition, developments in technology such as automated material handling devices like GPS, biometrics, etc. help businesses to work skillfully, fueling the global logistics industry growth across the globe.

How has COVID-19 Pandemic Affected the Logistic Sector?

Logistics firms, which are involved in transportation, storage, and flow of goods, have been directly impacted due to the sudden outbreak of the COVID-19 pandemic. As a vital part of value chains, both within and across global borders, logistics companies offer trade and commerce and help businesses deliver their products to customers. Disruptions in supply chains due to the pandemic have severely impacted competitiveness, economic growth, and job creation.

In addition, commotion in China’s manufacturing industries rippled through the supply chains across the globe during the pandemic. Shipments were backlogged at China’s main container ports, restrictions in transportation resulted in a dearth of truck drivers to pick up containers, and ocean carriers canceled sailings. Moreover, the shortage of components from China severely affected manufacturing processes overseas. Key industries worldwide, such as electronics, medical equipment and supplies, automotive, pharmaceuticals, and consumer goods were also greatly impacted due to the disruptions in supply chains during the pandemic.

One of the prime trends seen amidst the COVID-19 lockdown was a considerable rise in the e-commerce segment, which caused the business to re-evaluate their logistics footmark and pursue a decentralized approach that could provide enhanced proximity as well as the flexibility to key urban centers, and safeguard their supply chains in a better way against such unprecedented times like the COVID-19 pandemic.

During this worldwide turmoil, several companies have been working on providing technical knowledge to logistics companies, in order to help them implement advanced technologies to simplify their processes and also follow social distancing in the current conditions. Experts have observed that in the logistics industry, roadways and railways are less impacted by the COVID-19 lockdown as compared to waterways and airways. Owing to strict restrictions on global transportation, railways and roadways have emerged extremely vital to keep up the optimum supply chain, especially for vital cargo. During the COVID-19 pandemic, contactless interactions became the top priority, and an enormous upsurge in the demand for IoT smart locks for trucks and warehouses has been observed in many countries.

Numerous logistics companies are currently noticing a return of near normalcy from fast-moving consumer goods (FMCG) and food sectors while other industrial sectors are likely to take more time to recuperate. Industry experts believe that implementing innovative technologies can help the logistic sector to bounce back at an accelerated speed, in the post-pandemic world.

How has the Logistics Sector Molded itself amidst the COVID-19 Crisis?

The COVID-19 pandemic impact on the global logistics sector is producing ripple effects that can be observed across every other industry. Supply chains are witnessing increasing pressure as the free movement of goods has become more restricted owing to lockdown restrictions applied by government bodies worldwide.

The response of the logistics sector against the pandemic will significantly depend on how well other segments of the global economy are able to acclimatize with the new reality. However, despite the unprecedented conditions created during the COVID-19 pandemic, the logistics sector has managed to bounce back to meeting its customers’ needs; this depicts that the industry is capable enough to make a fairly quick recovery and grow stronger. The pandemic has resulted in protected, easy, contactless pickups and deliveries, which are currently highly preferred by numerous nations globally. Experts have predicted that the logistics sector will reinforce, gradually improve domestic demand, and revitalize the manufacturing sector once the COVID-19 pandemic relaxes. The government of many nations is presently working on enhancing logistic services and promoting the seamless movement of goods by using advanced technologies.

In a nutshell, the logistic industry, at present, is at the edge of adopting technology-led solutions, advanced infrastructure, and skillful resources, which, in the upcoming years, will help in streamlining logistic operations, thus guaranteeing the enhanced quality of services and customer management.

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Aishwarya Korgaonkar holds a bachelor’s degree in Information Technology from the esteemed Mumbai University. Being creative and artistic, she leaped into the field of digital marketing and content writing. Her love for words makes her write creative and spellbinding content that adds colors to the world.

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3pls, Archives, Global Logistics, Global Trade Daily, Warehousing

The Shared Supply Management Glossary

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To enable manufacturers and distributors to reduce their inventories while still meeting consumer expectations, supply management today has become increasingly collaborative. From shared management of supplies to deported or consigned stocks, cross-docking, multipick or multidrop; organizational methods and models are multiplying to improve the efficiency of the Supply Chain and meet the needs of manufacturers and distributors. Generix Group is revisiting the primary mobilizable techniques and their benefits.

4PL

Managing all the players involved throughout the Supply Chain represents a real challenge for some companies. Therefore, they prefer to entrust this coordination mission to a 4PL (or “fourth-party logistics”) provider. In addition to the storage, order preparation and transport operations usually carried out by a 3PL, the 4PL also assumes the responsibility of independently managing supplies for its customer.

Category Management

Another component of an ECR approach, Category Management is a distribution strategy consisting of optimizing sales by categories, rather than by product families, from a customer satisfaction perspective. Thanks to SSM, Category Management can improve efficiency: product organizations work together more closely, customer knowledge is refined, and dashboards are more easily shared. In fact, market placement and product assortments can be executed more precisely. Since the manufacturer has an in-depth knowledge of its products and their potential, it decides which quantities to put on the market. The distributor, therefore, benefits from better management of its product assortment, and the manufacturer can direct its production lines accordingly.

Collaborative Planning Forecasting and Replenishment (CPFR)

Based on SSM, this collaborative practice pushes cooperation further upstream by integrating planning and forecasting. The aim is to improve the Supply Chain through increased collaboration between manufacturers, distributors, and logistics providers. Under this approach, sales and production forecasts are developed jointly, promotions are managed in a more participative manner, and there is a greater dialogue surrounding new products’ marketing.

Consigned Stock

On a principle similar to that of deported stocks, this time the consigned stock is stored by the logistics provider. These stocks remain the property of the supplier for as long as they remain at the provider’s location. Once the goods leave the warehouses, they become the responsibility of the distributor, who must then pay for them. Very often adopted by small manufacturers with low storage capacity, this solution also allows distributors to reduce the immobilization of their capital.

Consolidation and Collaboration Center (3C)

Often initiated by distributors, this solution allows small and medium-sized enterprises (SMEs) without large logistical means to meet the challenging demands of their customers by organizing fast and frequent deliveries, shipment of packages and not whole pallets, and optimizing the filling of trucks without increasing logistical costs. Therefore, 3Cs are generally aimed at suppliers who cannot access pooling, multidrop or cross-docking.

Cross-docking

In this tight-flow supply management process, goods are delivered to a grouping/unbundling warehouse and shipped directly to the final point of sale, without intermediate storage. The aim is to allow the distributor to reduce its inventory by increasing the frequency of delivery to points of sale, but also to improve the filling rate of trucks by shipping potentially heterogeneous products.

Deported Stock

Deported stocks are stocks established at the customer’s site, but that remain the property of the supplier. Through this consignment technique, the distributor can increase its inventory levels and improve its working capital requirements (WCR). The supplier gains visibility through the dispersal of its products and can adjust its production accordingly. For the manufacturer, it also assures better in-store availability of its products, and indirectly, a guarantee of satisfaction for the final customer. The practice of deported stock is similar to that of 3C (Center for Consolidation and Collaboration).

Multidrop

In this supply management model, resources are pooled between several manufacturers with customers in common. Like cross-docking, multidrop aims to optimize truck filling and increase delivery frequencies. However, to be beneficial, this mode of operation requires a geographical approximation of the delivery points, whether they belong to the same brand or not.

Multipick

In this variant of pooling, goods addressed to the same delivery point are collected in different industrial warehouses. To be effective, warehouses must be located within 30 minutes of one another. Multipick, however, remains a complex process to coordinate without a mediator. It requires a good understanding of the different players in order to organize the loads in a coordinated and functional way.

Pooling

Complementary to the SSM, pooling is another model of collaboration, this time established between several manufacturers. Also known as Mutual Supply Management, this way of organizing allows manufacturers to pool their resources. The goals are to reduce logistics costs, increase delivery frequencies and make supply flows more reliable, all to ensure better availability of products in stores while maintaining a lower carbon footprint.

Retailer Managed Inventory (RMI)

In this organizational model, supplies are managed directly by the distributor in the form of firm orders to the supplier. By transmitting information about its inventory movements, the distributor allows the manufacturer to anticipate its production needs and optimize its inventory management.

Shared Supply Management

Considered a tool of the Efficient Consumer Response (ECR), SSM is a method of supply management whose responsibility is shared between the manufacturer and the distributor. In this collaborative organization model, the supplier is tasked by the distributor to supply the products as closely as possible to the needs. The inventory and/or sales data provided by the distributor allow it to adapt its production and logistics resources, and to calculate the quantities of products to be supplied according to those needs.

Vendor Managed Inventory (VMI)

Derived from the SSM, VMI relies on the provider supplying the optimal inventory to the distributor, without prior approval. Since the order has to be accepted and shipped by the distributor, VMI requires a great deal of trust in the customer/supplier relationship. Primarily practiced in the United States, this method is becoming more widespread in France via the impetus of a few distributors.

Working Capital Requirement

A key indicator of business performance, the working capital requirement is directly impacted by inventory levels that generate delays in cash flow. But with SSM and pooling, it is possible to have a better overall view of supplies, and thus to better control this cash flow. The level of WCR then becomes an indicator allowing the company to know if it deviates from its objectives, but also to measure the logistical and financial consequences of doing so. With projections of 3 months or 6 months, it becomes possible to anticipate the costs associated with the intervention of a logistics provider in case of shortages and seek to reduce these penalties.

You now know (almost) everything about the many organizational models that can meet your supply management logistics needs. To improve the performance of your operations through collaborative management, check out the Collaborative Replenishmentoffer built into the Generix Group Supply Chain Hub platform, or contact us!

This article originally appeared on GenerixGroup.com. Republished with permission.

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America's Leading 3PLs, Archives, Features, Global Trade Daily

GLOBAL TRADE’S TOP 3PLs OF 2020

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We’ve been saying it for years: The world is becoming an increasingly global place. We can get nearly anything on Earth in less than a few days, but someone has to get it to us. That’s where third-party logistics comes into play.

This year has thus far been a year unlike any other, thanks to the COVID-19 pandemic. With supply shortages and more people shopping from home out of safety concerns, we’ve relied heavily upon third-party logistics (3PLs) to bring us much-needed supplies. In fact, in an economy where many businesses are struggling to survive, many 3PLs are holding their own due to the coronavirus.

But it’s not enough to just be a 3PL—even during a pandemic. Logistics customers are demanding more from their 3PLs. In a world of Amazon Prime, they want their shipments to arrive faster, and for less money. They want to manage their inventory with the touch of a button, right from their smart device. They want personalized service that is tailored to their individual business needs, and to feel like even though they are one of many customers, they are important, no matter how big or small their account is.

The following 3PLs embody all of the characteristics mentioned above. From the smallest family-owned establishment to the largest global providers, these 50 companies work tirelessly to ensure the best customer experience possible, from start to finish.

A.N. Deringer

The largest, privately-held customs broker in North America, A.N. Deringer was founded in 1919 by Alfred Neel Deringer. For more than 100 years, the St. Albans, Vermont-based company has offered services ranging from customs brokerage to warehousing, distribution and customs compliance consulting. A.N. Deringer ranks fifth overall for the quantity of entries field, and has won the “Best Places to Work in Vermont” designation from 2017-2019.

Transamerica Express

The group-member-owned 3PL has more than 40 years of combined experience in the industry. With over 120,000 carriers under contract, Transamerica Express can offer customizable solutions to everyone from small businesses to larger, Fortune 500 companies. The rapidly growing concern was ranked highest in Inc.’s 500 “Nation’s Fastest-Growing Companies” list in 2019 and 2020.

Sunset Transportation

Founded in 1989 by Jim Williams, Sunset Transportation’s flexible business model serves mid-market businesses with a variety of logistics solutions. The company recently celebrated its 30th year by instating a new, cross-border Mexico/U.S. solutions program and upgrading to a new 45,000-square-foot headquarters. Sunset Transportation was ranked No. 8 on Inbound Logistics’ Top 10 3PL Providers list in 2019, their second time making the top ten.

ODW Logistics

Founded as Ohio Distribution Warehouse Corp. in 1971 by Bob Ness and John Berend, the company started out serving only the Ohio area. ODW Logistics has since expanded beyond the Buckeye State and across the nation, offering supply chain solutions for hundreds of companies of all sizes.

FW Logistics

FW Logistics began in 1949 as a food grade storage facility. Today, the 3PL offers a full range of logistics services, including warehousing, trucking, logistics and fulfillment. Specializing in everything from dry storage to hazmat storage, the company boasts 7 million square feet of warehousing strategically located throughout the United States.

R2 Logistics

R2 Logistics prides itself on offering real-time visibility and a full suite of logistics solutions. The company has no automated phones, and customers are easily put in contact with account executives and support staff. R2 Logistics uses cutting-edge logistics technology to streamline processes and has a strong network of preferred partners to help ensure customers are getting the services they need, when they need them.

Dependable Global Express (DGX)

DGX consists of five integrated divisions which work harmoniously as a single shipping resource. Offering customized freight solutions to their customers, DGX can handle every step of your 3PL journey in one convenient package. They use state-of-the-art software to present customers with comprehensive reporting and real-time shipment tracking.

Flat World Global Solutions

Founded in 2006, Flat World Global Solutions offers customizable, contract-free solutions to clients of all sizes. Their customer service and cutting-edge technology keep Flat World Global Solutions lean, allowing them to grow quickly and maintain a high client retention rate—even without contracts. Flat World Global Solutions earned the distinction of Vendor of the Year from a top-10 client, and they have won a St. Louis Post Dispatch “Top Places to Work” designation in both 2018 and 2019.

McLane Global

With facilities nationwide, Houston, Texas-based McLane Global has been offering food grade logistics and transportation for more than 120 years. Today, McLane Global provides full 3PL services from manufacturing through last-mile delivery. McLane Global does not believe in a one size fits all approach, and each customer receives services tailored to their individual needs.

MD Logistics

Focusing on the life-science pharmaceuticals and retail and consumer goods sectors, MD Logistics offers highly specialized service to customers under these umbrellas. Founded in 1996 by Dave Kiebach and Mark Sell, MD Logistics works with the customer to customize services to their unique needs. MD Logistics offers Foreign Trade Zone services within a cGMP temperature-controlled environment, as well as dedicated or shared call center services and inventory tracking services that are cutting edge.

Kenco Logistics

The largest, woman-owned logistics company in the U.S., Kenco Logistics was founded in 1950. Today, it is a fully integrated 3PL provider, with more than 200 clients, 90 distribution facilities, and 30 million square feet of space. Kenco Logistics prides itself on customer service, which despite its size remains as personalized as a small operation. Kenco Logistics is the winner of a General Mills Supplier Diversity Award, as well as a Top Woman-Owned Transportation Company Award by Women in Trucking.


FLS Transportation Services

Founded in 1987, FLS Transportation has grown from just a few employees to the largest freight brokerage firm in Canada. The company differentiates itself from the competition by offering 3x support. This ensures customers have one point of contract and three support teams backing them. They also boast a .001 percent claims rate, a testament to their rigorous employee training program. FLS Transportation Service offers a full suite of logistics management products that can be customized to meet their customers’ individual needs.

Choptank Transport, Inc.

A full-service 3PL, Preston, Maryland-based Choptank Transport, Inc. serves North American and many other locations around the world. Their cutting-edge transportation management system and award-winning training program ensure their clients receive the highest level of customer service. Choptank Transportation also prides itself on keeping current with freight laws, so that they can advise customers about the transportation of their cargo in record time.

Holman Logistics

Seattle, Washington-based Holman Logistics offers food-grade warehousing, paper product manufacturing logistics support and more. They work with such clients as Hills Pet Nutrition and Kimberly Clark, offering tailored solutions to clients of all sizes. Holman Logistics is the recipient of the 2018 Operational Excellence Award from General Electric, and Kimberly Clark’s 2014 Service Excellence Award.

Nolan Transportation Group

Founded in 2005, Nolan Transportation Group serves more than 7,000 North American customers, with over 30,000 independent transportation companies comprising their network. The company treats all of its clients as partners and works with them to achieve their goals. Their recent success stories include assisting Crate & Barrel with their domestic over-the-road supply chain, a project which earned them accolades from the retailer’s director of Global Transportation. Says Brad Voelpel of hiring Nolan Transportation Group: “I can stand here today saying it has been one of the best moves we have made within our domestic network. The NTG team’s entire focus is on customer service, providing visibility on every single move while ensuring we remain competitive in the marketplace.”

Romark Logistics

Founded in 1954, Romark Logistics serves many pharmaceutical, retail, food and beverage customers across the globe. Providing a full range of B2B and B2C options, Romark Logistics works with their customers to provide customized 3PL solutions at a competitive cost. Their tagline “Personalized Service … Always” is a guiding force behind the company’s operations, inspiring them to strive harder to ensure customer satisfaction in everything they do.

Transplace

Frisco, Texas-based Transplace is the largest managed transportation services provider in North America. Transplace prides itself at being at the forefront of TMS technology, utilizing their own proprietary cloud-based TMS system as well as AI and machine learning and predictive analytics to increase efficiency and ensure customer satisfaction. They work with their clients, not just at start up but throughout the entire relationship to constantly improve and streamline processes, saving the customer valuable time and money.

ALOM

A WBENC Certified Woman-Owned Business, ALOM has been providing third-party logistics for 23 years. Heavily focused on customer service, ALOM provides each client a dedicated account manager who oversees all aspects of their accounts, including inventory, BOM and logistics. ALOM has 19 locations around the world and is the winner of the 2020 MultiChannel Merchant Top 3PL Award as well as the 2019 SDCE Supply Chain Green Award.

Tucker Company Worldwide

Founded in 1961 by Jacob Tucker, the company believes what sets it apart is their people. With many clients having been with Tucker for one or two generations, it’s safe to say customers agree. The company adheres to strict operational and safety compliance standards, customizing their services to the unique needs of each customer. They also offer 100 percent visibility at all times, allowing modifications to their TMS that addresses those needs. Up next, Tucker Company Worldwide plans to debut a new, self-service customer portal to further enhance the customer experience, and the company regularly reviews client accounts upon request to ensure satisfaction.

Werner Enterprises

One of the five largest truckload carriers in the U.S., Werner Enterprises was founded in 1961 as a single truck operation. Based in Omaha, Nebraska, Werner has offices in Canada, Mexico, and China. The company provides services such as dedicated, intermodal, cross border, global services and customs solutions. The company has won numerous awards, including the 2020 Alliance Award from SMC³ and Logistics Management, Food Logistics Top Green Provider Award and Logistics Management’s 2020 Quest for Quality Award.

Knichel Logistics

A WBENC Certified Women’s Business Enterprise and Woman Owned Small Business, this family run company provides services such as intermodal, LTL, full truckload and other specialty services. They pride themselves on highly personalized customer service, providing each client a dedicated account representative and a web-based transportation management system that delivers customized reporting. A 20-year industry veteran, Knichel Logistics CEO Kristy Knichel is the Intermodal Logistics Conference chairperson and is seated on the Board of Directors of the Transportation Intermediaries Association, the premier organization for 3PL professionals in North America and abroad.

GEODIS

The global supply chain operator operates five lines of businesses around the world, including freight forwarding, supply chain optimization, distribution and express, road transport and contract logistics and transportation management. With operations in 67 countries and a worldwide network that spans 120 countries, GEODIS boasts over 41,000 employees around the world.

PLS Logistics Services

Home to the largest flatbed network in North America, PLS Logistics Services offers a full suite of transportation solutions for their clientele. Each client receives a dedicated account executive as their point of contact, and the company provides 24/7 support, transparent tracking options and custom TMS reporting. With both outsourced and managed transportation services, PLS Logistics Services allows clients the flexibility they need to run their supply chain properly.

Dachser USA Air & Sea Logistics Inc.

Dachser USA Air & Sea Logistics Inc. treats its customers as partners, offering customized solutions to suit the individual needs of each business. The U.S. arm of Kempten, Germany-based Dachser can connect with more than 400 locations in nearly 40 countries, making them a dominant presence in many of the major markets across the globe. The company’s own Dachser IT program provides industry-leading, in-house solutions for clients of all sizes.

Americold

Americold prides itself on being the only 3PL to offer automated picking in cold storage with multiple tenants. Their use of robots provides on-time, in-full accuracy 99.5 percent of the time, allowing for minimal contact and a pick cycle time of under two hours. Americold has their own proprietary inventory management system, i-3PL Supply Chain Control, which allows customers to manage their inventory from any smart device, from anywhere.

NFI Industries

One of the oldest and largest family owned 3PLs in North America, NFI offers a flat organizational structure that allows the company to work quickly and nimbly. Clients are assigned dedicated account management teams that provide personalized service and continuously look for ways to improve supply-chain efficiency, including the use of robotics and automation in their warehouses. A company that cares about sustainability, NFI Industries operates electric trucks and was one of the first providers to use Class 8 battery-electric Freightliner eCascadias. And NFI uses Kalmar Ottawa Electric T2E Terminal Tractors in its California distribution centers.

Pilot Freight Services

Founded in 1970, Pilot Freight Services credits its 50-year history with always putting the customer first. One of the International Air Transport Association’s “Top 25 Air Forwarders in the World,” Pilot’s domestic and international operations frequently work hand-in-hand to achieve customer solutions. The company is the recipient of numerous awards, including Logistics Management’s Quest for Quality and Top 50 U.S. & Global 3PL designations.

AP Moeller – Maersk

Founded in 1904 as Dampskibsselskabet Svendborg (The Steamship Company Svendborg), today the Danish company Maersk has a dedicated team of 80,000 employees and operates in 130 countries around the globe, including its U.S. headquarters in New Jersey. The integrated transport and logistics company also has a standalone energy division. Maersk offers businesses of all sizes customizable solutions, with services available on all major trade lanes, including air, land, rail and sea. Maersk recently added Eco Delivery, a service that uses biofuel to reduce carbon emissions.

UTXL

Serving North America, UTXL aims to be the “safest, most reliable and cost effective” 3PL provider. The company offers a full suite of services and has been a federally licensed broker for more than two decades. They have provided services for everyone from the smallest of small businesses to Fortune 500 companies. With a focus on “Safety, Service, Systems and Savings,” UTXL offers customers unparalleled customer service.

Phoenix Logistics

A 3PL supplier to government and Tier 1 prime customers, Phoenix Logistics has locations to serve both U.S. coasts located in Arizona and Florida. Phoenix Logistics offers customers real-time, cloud-based tracking for supply-chain management. They work tirelessly to overcome challenges and bring their customers vital delivery infrastructure such as IT, transportation, energy and medical.

C.H. Robinson

One of the world’s largest 3PLs, C.H. Robinson has $20 billion in freight under management and processes 18 million shipments each year. The company serves 119,000 customers and 78,000 contract carriers around the world. C.H. Robinson has its own innovation department, C.H. Robinson Labs, where the company is constantly developing and testing customer solutions to streamline processes that put the customer first.

ArcBest

With more than 13,000 employees, ArcBest offers services ranging from LTL via ABF Freight, ground expedite through Panther Premium Logistics, household moving via U-Pack, and vehicle repair under FleetNet America. The company’s main focus is always the customer, ranging from the smallest operations to the largest and most complicated supply chains. ArcBest was recently named the No. 2 employer in Arkansas by Forbes and Statista Inc.

Global Gateway Logistics

St. Louis, Missouri-based Global Gateway Logistics recently made headlines for delivering more than 2 million pieces of PPE to their local community with the help of global partners, in an effort to stop the spread of the COVID-19. Global Gateway Logistics offers services ranging from international air freight, international ocean, rail transport, ground transport, analysis consulting, hospitality logistics and customs consulting.

Axle Logistics

The Knoxville, Tennessee-based 3PL, which is among the fastest growing in the industry, provides safe, reliable, advanced logistics services for companies throughout North America. Axle Logistics’ freight brokerage and transportation management operations support shipper needs for truckload, less-than truckload (LTL) and intermodal as well as integrated warehousing and distribution services. The 3PL recently expanded its engagement with Trucker Tools, deploying its Smart Capacity predictive freight-matching software. The added services build upon its current use of Trucker Tools load tracking, which has helped Axle increase tracking compliance among truckload carriers from below 30 percent to 80 percent.

PITT OHIO

PITT OHIO, which prides itself on having one of the best safety ratings in the logistics industry, is the recipient of numerous safety awards, including the American Trucking Association’s President Trophy. The family owned company offers services including small package, truckload and LTL, which is the company’s legacy service. PITT OHIO works with their customers to create custom solutions to their logistics challenges, providing quality service every step of the way.

CaseStack

Founded in 1999, CaseStack offers collaborative supply chain management services for CPG’s retailer logistics programs and cloud-based supply management products. CaseStack’s platform works to combine LTL deliveries to reduce shipping costs and improve delivery performance, while their cloud-based program allows CPG companies to manage their accounts, improve forecasting and sourcing, and much more.

Ruan

Founded in 1932 by John Ruan, what started as a gravel hauling company in Des Moines, Iowa, now boasts more than 300 operations nationwide, with 6,000 team members and 10,000 trailers. Placing a high precedent on safety, Ruan was the first transportation company in the U.S. to develop a safety program, and it is their commitment to safety, performance, customer satisfaction, people, improvement and teamwork that drives the company to this day.

Echo Global Logistics

Echo Global Logistics was founded in 2005 with the goal of simplifying transportation management. Its user-friendly, proprietary technology enables vendors, partners and clients to operate more nimbly, adapting to changes with real-time visibility. The company’s expansive coverage allows your merchandise to get to its final destination when it’s needed—no matter the means.

Kane Is Able

Kane Is Able works with consumer goods manufacturers who sell through ecommerce, retailers and grocers to improve supply chain efficiency. The company’s employees work as an extension of your business, helping to ensure that you get the best service for your logistics dollar, round the clock. The company employs Lean and Kaizen methodologies to constantly improve performance, which translates to a better experience for their customers.

Hub Group

Founded by Joyce and Phil Yeager in a “one-room, windowless office,” Hub Group has grown from its modest beginnings to become an award-winning 3PL specializing in customizable multimodal solutions. Hub Group attributes its success to providing the services that its customers need at a fair price. They offer LTL, FTL, expedited, intermodal and international freight services with the goal of long-term growth.

WSI Logistics

WSI Logistics was founded in 1966 in Combined Locks, Wisconsin, with just 30,000 square feet of warehouse space. Today, the company has grown to become one of the largest privately held logistics companies in America, with a network that includes American Warehouse LLC, Warehouse Specialists LLC, Material Logistics & Services LLC (MLS), Fulfillment Specialists of America, Inc. (FSA), LLC & WSI Freight Solutions and 360data. WSI Logistics offers fulfillment, transportation, import/export, warehousing and distribution, contract services and 3PL.

Logistics Plus

One of the fastest growing privately owned logistics companies in the world, Logistics Plus has annual global sales of over $300 million, with 450 employees spanning 28 countries across the globe. Logistics Plus offers services ranging from LTL, freight forwarding, truckload, warehousing and fulfillment, global trade compliance, project cargo, import/export and customs brokerage. Despite their rapid growth, Logistics Plus is still small enough to meet their customers’ unique logistics needs but big enough to solve the most complex of logistics challenges.

Mallory Alexander International Logistics

Mallory Alexander International Logistics is a full-service logistics provider offering customers over 94 years of experience in the logistics industry. The company knows that it plays a vital role in the supply chain of their customers, and it strives to ensure the accuracy that will keep their clients’ businesses running smoothly. Mallory Alexander International Logistics also offers their own proprietary MyMallory Management Portal that allows users to customize their experience and get the information they need, when they need it.

Penske

One of the most recognized names in logistics, Penske offers a full suite of state-of-the-art solutions to get your cargo where it needs to go. Penske serves a wide range of industries, from automotive to chemical, consumer goods, food and beverage, pharmaceuticals, electronics, industrial manufacturing, retail and more. With more than 35,000 employees around the world—and more than 300,000 vehicles—the company is poised to offer customers a wide array of solutions that will fit their individual business needs

Approved Freight Forwarders

Approved Freight Forwarders began its business serving Guam and is now one of the premier freight forwarders in the Pacific, connecting Hawaii, Guam and California to the rest of the world. Offering ocean, air and over-the-road transportation, Approved Freight Forwarders is the only freight forwarder with terminals on all four of the major Hawaiian Islands. Serving both individuals and business clientele, Approved Freight Forwarders has one of the lowest damage claims rates in the industry, thanks to the personalized attention they pay to each shipment.

Magnate Worldwide

One of the fastest growing companies in the logistics industry, supply chain management company Magnate Worldwide comprises wholly-owned subsidiaries that work tirelessly to offer premier logistics services, including global freight forwarding and expedited domestic transportation. With a high focus on customer service, Magnate Worldwide offers specialized services, specializing in time-sensitive, high-value shipments.

Kanban Logistics

North Carolina-based Kanban Logistics offers inbound logistics services for manufacturers, ecommerce and finished goods distribution. Kanban is certified to the ISO 9001:2015 quality standard by MCNA as well as the MCNA certificate of registration for AS9100D, the Federal Aviation Administration’s aerospace industry standard. Kanban also holds a superior rating by AIB International and is compliant with C-TPAT, an added security program. They are also a general purpose FTZ, enabling them to defer duties until products are shipped within the United States.

Burris Logistics

Pioneers in the cold chain logistics space, Burris Logistics began as a father-and-son tomato delivery operation in 1925 and has since grown to more than 2,000 employees. Burris Logistics puts a heavy focus on teamwork, with their ONEBURRIS initiative, which operates under the motto “team before self.” This guiding principle empowers the Burris Logistics team to not just work together, but to work together for betterment of their customers.

Neovia Logistics

Neovia Logistics works as a true partner to their customers, helping them grow their business. Neovia has more than 100 facilities in over 20 countries, spanning six continents. Working mainly with automotive, aerospace, technology and industrial customers, Neovia offers everything from warehouse management to inventory optimization, supply-chain technology and support, inbound logistics and much more.

Transportation Insight

Transportation Insight employs hundreds of highly trained logistics professionals across the United States. Specializing in unique supply chain solutions, the company deals with everything from domestic transportation to international logistics. Transportation Insight works with clients ranging from small businesses to Fortune 500 companies, help either find ways to cut costs and increase efficiency.

With these top 50 3PLs, you can rest assured your cargo is in good hands, affording you the peace of mind you need to get back to running your business the way it was meant to be run.

4Pl
Archives, Global Logistics, Global Trade Daily, Trucking, Warehousing

The Role of the 4PL Lead Logistics Providers in Supply Chain Logistics Management

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As the business sector continues its development and improvement, new challenges arise for businesses that are part of this domain. Logistics management is a complex process that ensures that every product the consumer needs is on the market. However, supply chain logistics management includes all the processes that contribute to the transformation of raw materials into final products. And these processes include manufacturing, transportation, storing, inventory, purchasing, and planning, says a study by EssayWritingLand.

Experts from professional writing services on business management topics underlie the fact that many layers of logistics are involved in the supply chain logistics management.

The Layers of Logistics

There are five layers of logistics involved:

-First Party Logistics (1PL) – this is something characteristic of businesses that have their own logistics department that takes care of the entire supply chain logistics management

-Second-Party Logistics (2PL) – it describes those companies that decide to subcontract a specific part of the supply chain logistics, such as transportation or production; this is usually a short-term collaboration

-Third-Party Logistics (3PL) – this describes third parties that are outsourced by businesses to provide logistics or/and transportation services; these service providers are often the link between the manufacturer and the business

–Fourth-Party Logistics (4PL) – 4PLs are outsourced to offer more than logistics and transportation services; they are involved in the logistics and tasks management, taking care of the entire supply chain.

-Fifth-Party Logistics (5PL) – it is often linked to e-commerce, which is constantly growing. 5PLs make the shift from supply chains to supply networks and take care of their management, being involved in the strategic planning of logistics as well.

So, there are important and definite differences between the layers of logistics. 4PL, often called lead logistics providers, are important parts of businesses that want to grow and thrive. They offer more than 3PLs do, from supply chain consulting and analytics on the transportation spend or carrier performance to business planning and project management. Their expertise is not only on the transportation part of the supply chain but also on the development, growth, and strategy of the business, says a custom paper writing service.

4PL lead logistics providers are important and essential, especially when there is a complex supply chain logistics management involved. There are many entities and small businesses involved in the supply chain, from producers, manufacturers to ocean carriers, warehouse operators, and data analysts. Fourth party logistics take care of all of these, focusing also on freight sourcing strategies or freight bill auditing.

So, which is the role of 4PL lead logistics providers in supply chain logistics management?

Expert leaders of the assignment help service at an essay writing service reviews have highlighted in their last paper how businesses can benefit from the collaboration with 4PLs.

Data Analysis

One of the key elements of the supply chain logistics management is the data behind all the processes. There are a lot of resources, collaborators, and money involved in the supply chain. And knowing how businesses can make their internal and external processes and collaboration more efficient can help them meet the market demands more proactively.

Lead logistics providers do not only take care of all the processes involved in the supply chain but also offer insights on how everything is evolving. They come with data that can later be used in project management and business strategy. At the same time, this data analysis is important for change management and the operations department of the business.

Business Growth

In the supply chain logistics management is important not only the data but the process too. For businesses that are new on the market and still do not have the resources necessary for a geographical spread, lead logistics providers are the best choice. Opening another branch of a business in a new location involves a lot of money and resources. Businesses need to hire employees, rent, or buy a warehouse to store the materials and also the means of transportation for those goods.

Lead logistics providers have an entire chain of warehouses and collaborators that are spread geographically. They are important elements of the international supply chain and outsourcing their services helps businesses and companies grow and thrive.

On top of this, they also use the latest technology to improve their processes and help companies reduce their costs. And because 4PL lead logistics providers keep up the pace with the business and technology development, they are prepared to face challenges and rapidly adapt to changes or disruptions.

Conclusion

The model of fourth-party logistics or lead logistics providers becomes more and more attractive to companies that are looking to grow their services. 4PL lead logistics providers are more than 3PL; they support companies in building their business strategy and managing their projects.

4PLs come with data analysis and the latest technology that can reduce operating costs and can make them have an entire base of warehouses, producers, manufacturers, carriers, and logistics experts, which helps them to adapt to changes and handle challenges.

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This guest post is contributed by Kurt Walker who is a blogger and college paper writer. In the course of his studies, he developed an interest in innovative technology and likes to keep business owners informed about the latest technology to use to transform their operations. He writes for companies such as Edu Birdie, XpertWriters, ResumeWriterReviews, and uk.bestessays.com on various academic and business topics.
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ONE, TWO, 3PL … or 4PL? DETERMINING WHICH MAKES THE MOST SENSE FOR YOUR BUSINESS

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The supply chain ecosystem is becoming more demanding as consumers are conditioned to expect nearly instantaneous free shipping and where order delays can inflict serious damage to brands. As a result, shippers must carefully select their supply chain partners, as their performance has a much greater potential impact on customer satisfaction and the bottom line than ever before.

However, shippers are often perplexed when faced with the choice of partnering with a 3PL or 4PL to tackle their logistics and transportation challenges.

“Every shipper is unique, but many face the same challenges and share the same goals: reducing costs, optimizing their network, consolidating shipments, changing behaviors, improving customer service, and improving visibility, to name a few,” says Ross Spanier, senior vice president of Sales and Solutions at GlobalTranz, a Phoenix, Arizona-based tech company that provides a cloud-based, multimodal transportation management system (TMS) to shippers, carriers and brokers.

“The common thread that links these challenges and goals is data,” Spanier continues, “and many companies lack the data they need to make truly informed business decisions.”

He should know. Spanier brings more than 17 years of experience—which includes stops at C.H. Robinson and Logistics Planning Services—to the discussion of 3PL versus 4PL partnerships. Shippers, he maintains, should focus on the capabilities of the prospective partner and seek out partners that combine the technology, people, multimodal services and solutions they need to in gain a competitive advantage.

“Many shippers really cannot afford to staff and maintain an internal transportation and logistics team,” he notes. “Finding a partner that can act as an extension of their business is key. It’s also extremely important to make sure your partner can provide technology and experience in implementation, execution and integration. That can be a significant cost and a disruption for businesses that attempt to do that by themselves.”

Whether you’re a medium-sized business or listed on the Fortune 1000 annual list, deciding between a 3PL and a 4PL sets the stage for all moving parts.

“A common misunderstanding is that a 3PL is just a broker, when the reality is they can be much more than that,” Spanier says. “At GlobalTranz, our managed solutions are a great example of that. We can offer a more strategic and consultative approach for our customers including having ‘skin in the game’ on the broker side, where we’re taking on pricing commitments, service level commitments, managing the risks and owning the contracts.

“Many times, that is one of the common misunderstandings because a 3PL can act very strategically with customers and not necessarily need a fourth party. The 4PL typically offers strategic insights and management of a company’s entire supply chain, and often if one goes back to the question of ‘what is the difference between a 3PL and 4PL,’ 4PLs are the right fit for much more mature, large or complex organizations.”

GlobalTranz positions itself as a leader in customized solutions for a wide variety of shippers across many industry verticals. From LTL to truckload, final mile or white-glove service, intermodal, ocean, air, and cross-border Mexico transportation … are all part of the GlobalTranz offering. In addition, the company offers an award-winning TMS. The company takes pride in collaborative efforts between the people driving their technology as an integrated solution offered to their customer base.

“Whether a customer is best-suited for a 3PL or 4PL solution is typically not already known when we walk in the door, Spanier explains. “We like to show where a customer can gain the most value based on the solution and its capabilities. More times than not, it’s about voicing that to the customer and understanding where their constraints are and how we can put a solution together–a 3PL or a 4PL solution.”

GlobalTranz boasts a different approach when it comes to serving its customer base. Its robust managed solutions offerings serve a variety of needs that can be tailored upon identifying where the client’s business needs it the most. The experts at GlobalTranz take the process of solution identification one step further by evaluating the needs and configuring a solution from there. There is no “one-size-fits-all” solution, which is exactly how GlobalTranz separates itself from the rest as a leader in logistics solutions–whether that be a 3PL or 4PL solution.

“People, processes, and technology are important, and it’s crucial to establish relationships and communications that are aligned with company goals,” Spanier contends. “Without strong relationships in place, technology and process won’t deliver the needed support or what they’re looking to get out of a partner. When you have a customer looking at a 3PL solution, you want to make sure that a 3PL has the ability to bring in carriers no matter what markets they operate in. This is critical because they may be in one market today but with growth, both organic and through acquisitions, and the changing dynamics in customer demand and expectations, the footprint could expand and it’s important to have a partner that is quick to react and agile in respect to their carrier partners as well.”

So, when deciding on what makes the most sense for your business, consider partners that not only provide solutions but are agile and customizable based on specific business goals.

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As the GlobalTranz Senior Vice President of Sales and Solutions, Ross Spanier leads the enterprise sales organization as well as the design and delivery of innovative and customized supply chain solutions that drive efficiency, cost savings and competitive advantages for current and prospective customers. With more than 15 years of experience in the supply chain and logistics industry, Spanier has developed and grown sales and operations teams specializing in best-in-class service execution of LTL, TL, expedite, supply chain management, projects & heavy haul, white glove and managed transportation service lines. Prior to joining GlobalTranz in 2017, he held sales and operations leadership roles at both C.H. Robinson and Logistics Planning Services (LPS).