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Avoiding 7 Workplace Injuries Common to the Supply Chain

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Archives, Education, Global Logistics, Global Trade Daily

Avoiding 7 Workplace Injuries Common to the Supply Chain

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Keeping the supply chain operating at peak performance relies on reducing accident and injury rates. Luckily, there are some concrete steps supply chain employers and industry leaders can take to help protect employees. 

Here are the seven most common workplace injuries in the supply chain and some tips for preventing them.

1. Slips, Trips and Falls

The most common cause of workplace injuries is slips, trips and falls. An estimated 18% of nonfatal workplace injuries requiring time away from work are due to these occurrences. That’s nearly one in every five serious workplace accidents. 

In the supply chain, slips, trips and falls can be particularly dangerous since warehouses often involve working on mezzanines and shelves well over a dozen feet off the ground. Warehouses are busy places, too. If someone simply slips on a wet spot on the floor, a minor fall-related injury could quickly become serious if a passing forklift hit them or something fell on them. 

To prevent slips, trips and falls, start by ensuring everyone has the proper footwear. Supply chain employers should make sure all of their workers are wearing anti-slip footwear, whether that is boots or sneakers. Additionally, staff should have access to and training on proper fall-prevention gear. For instance, if an employee uses a boom lift, they should be trained to operate it safely and wear the right protective gear.

It is vital to ensure fall-prevention gear is available in a wide enough range of sizes, such as harnesses and helmets. People who are small or large may skip wearing crucial fall prevention gear simply because there isn’t any available in their size. Employers can avoid this risky behavior by providing plenty of sizes for safety gear.

2. Caught Between Objects

Caught-between-objects injuries occur whenever an employee is injured by getting a body part stuck or trapped between two objects. For instance, if someone is moving heavy items down a ramp and one slides against the other with their hand caught in between, that could result in a caught-between-objects injury.

Other examples include fingers getting caught in machinery or toes getting caught between objects on the floor. Similarly, a worker may get trapped between a wall and a forklift or crane, resulting in an injury. Caught-between-objects injuries can also occur due to an employee’s clothing getting caught in or on something.

Preventing caught-between-object accidents can be tricky. It requires training employees to stay highly aware of their surroundings while ensuring the proper safety precautions are in place. Many caught-between-objects injuries result from wrong-place-wrong-time situations, such as a person accidentally walking between two moving objects. So, practice and train constant situational awareness in the workplace.

Additionally, all moving equipment should have emergency stop switches of some kind and staff should know exactly how to use them. It may also help to create designated forklift lanes in warehouse aisles to reduce the likelihood of employees accidentally straying into a forklift’s path.

3. Struck by a Moving Object

Hit-by or struck-by accidents are similar to caught-between accidents but slightly different. In these cases, there is only one object involved in the accident, often a vehicle of some kind. Struck-by accidents include being hit by a forklift, truck, crane, lift or crane arm. These injuries can pose an exceptionally high fatality risk simply due to the impact caused by large moving objects.

Preventing struck-by injuries is all about communication and awareness. Poor communication is a surprisingly common risk in supply chain jobs that often goes overlooked. If employees consistently and clearly communicate about their actions, it is less likely someone will accidentally get in the way of a moving object. For instance, warning signals could be established when a worker is going to back up a forklift so others nearby know to stay back.

4. Heavy Lifting Injuries

Lifting heavy objects is often an everyday part of the job in the supply chain industry. Employees are frequently expected to lift objects weighing 50 pounds or less, but it is not unheard of for them to try lifting much more than that on the job. Unfortunately, ​​heavy lifting causes about 30% of work-related injuries.

Doing so can result in muscle injuries, broken bones and serious back injuries. Additionally, attempting to lift heavy objects can result in other types of injuries such as slips, trips, falls and caught-in-between injuries. So, preventing lifting injury situations as much as possible could result in a much safer workplace.

Reducing the likelihood of a heavy lifting accident often requires investing in the right equipment. For instance, there may be a shortage of forklifts or carts workers could use instead of trying to pick something up themselves. Automated warehouse robots could help solve this problem, as well. Additionally, encourage employees to speak up and ask for help when they are struggling to lift something.

5. Repetitive Strain Injuries

Repetitive strain injuries often occur when an employee works too much or for too long, using the same muscles or muscle groups over and over in a similar fashion. For example, a worker might develop a repetitive strain injury from lifting and placing heavy boxes for an entire shift or double shift. These injuries can be hazardous since they are often hard to spot at first but result in long recovery times.

One way to prevent repetitive strain injuries in supply chain workplaces is to raise awareness of signs of overwork and fatigue. For instance, if someone feels sick during or after an active shift, it may signal something is wrong. Any severe or prolonged muscle pain should be reported and investigated to ensure employees don’t sustain serious repetitive strain injuries on the job.

Employers can also help prevent repetitive strain injuries by setting aside time at the beginning of shifts for staff to warm up and stretch. Working in a warehouse can be a highly active job — just like a workout or playing a sport. Warming up and stretching are known to help prevent injuries in athletics and executives can use the same tactic in the workplace.

6. Forklift Accidents

Forklift accidents occur any time an employee is injured while operating a forklift or by a forklift in operation. For instance, a worker could accidentally flip over a forklift while driving, resulting in a potentially fatal injury. Similarly, an employee could be accidentally hit while a forklift backs up.

A common culprit in forklift accidents is the seatbelt. Staff who skip wearing their seatbelt while operating a forklift put themselves at a much higher risk of being seriously injured in the event of an accident. So, employers must be strict about enforcing seatbelt requirements for forklift operators.

Another common cause of forklift-related accidents and injuries is improper operation. Employees who have not been thoroughly trained to operate a forklift safely put themselves and others in danger of an accident or injury. Warehouse managers can reduce this risk by requiring safety training for everyone and maintaining strict rules about who is allowed to operate a forklift. 

7. Contact With Hazardous Materials

Contact with hazardous materials in warehousing can result in chemical burns and exposure-related illnesses. Both can be serious injuries and result in time off work and possibly a stay in the hospital. Preventing hazardous materials accidents and injuries requires diligence, but it is possible.

An excellent place to start is to understand why chemicals and hazardous materials commonly cause accidents in warehouses. The U.S. Environmental Protection Agency has published guidelines on common compliance concerns, offering insight into this topic. For instance, accidents could be caused by containers of chemicals — particularly flammable ones — going unaccounted for on a warehouse’s property. Warehouse managers must also be careful volatile chemicals are not stored close to one another.

In addition to practicing safe chemical storage, safe materials handling training can also help prevent hazardous-materials-related injuries. Warehouse managers can protect employees by teaching safe chemical-handling procedures and going over what to do in the event of exposure. For example, everyone should know where to find the hand and eye washing station if a dangerous substance splashes them.

Improving Supply Chain Safety

Supply chain employers and industry leaders can help improve the industry as a whole by strengthening workplace safety. These injuries in supply chain jobs may be the most common, but employers can prevent them by implementing detailed and diligent safety protocols and training. Everyone can work safer and smarter with the right precautions and keep the supply chain moving at top performance.

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Archives, Education, Global Trade Daily, Warehousing

How to Hold a Risk and Vulnerability Assessment in Your Warehouse

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A warehouse is one of the world’s most dangerous work environments. With so much heavy equipment and machinery packed into one place, accidents and injuries are all too common. 

Warehouse managers and other logistics professionals must be thorough and meticulous with their risk and vulnerability assessments.

Internal Risks

The most logical place to start is identifying the warehouse’s known internal risks. These are the most common risks that warehouse managers must be sure to document:

  • Unstable surfaces: Warehouse floors can become slippery from grease or residue buildup. Employees can also trip on tools, vehicles, wires, and other objects on the warehouse floor.
  • Vehicle accidents: Employees can get entangled in forklifts, hand trucks, and other warehouse vehicles. They could also mishandle the vehicles and cause damage to other employees or parts of the warehouse.
  • Chemical exposure: Warehouses that store hazardous chemicals are vulnerable to accidental spills and leaks.
  • Electrical shock: Employees might be exposed to electrical hazards while using machines or touching line-to-ground faults.
  • Falls from heights: Employees can fall from great heights when working on the warehouse’s tallest shelves and using the largest equipment.
  • Falling objects: Objects can also fall from shelves due to human error and injure employees standing below.
  • Stressful work environment: Long hours of manual labor can lead to all kinds of aches and pains, from minor muscle sprains to more severe injuries such as fractures and hernias. Work performance can also decline and create an unsafe environment.

Spotting and recording these risks is extremely important because they’re often the results of human error. Warehouse managers must be meticulous with their risk documentation to raise employee awareness and prevent man-made risks from arising.

External Risks

Aside from preventable internal risks, there are also some external risks that are largely out of the warehouse workforce’s control. Fires, floods, and other natural disasters are the most obvious external risks. No one can prevent them, but warehouse professionals must still take measures to keep their employees safe.

To demonstrate the stakes of emergency preparedness, it’s worth recalling a recent story that made national news. An Amazon warehouse in Illinois had poor evacuation procedures and failed to take action when a tornado struck in 2021, leading to the deaths of six employees. Having detailed emergency procedures saves lives.

Illness is another unpredictable risk that managers must plan for. Warehouses are unsanitary compared to other work settings, with many employees working in tight spaces and sharing the same equipment. Contagious diseases can spread easily in this environment.

Workplace violence is also a greater risk than most warehouse workers realize. The U.S. Occupational Safety and Health Administration (OSHA) estimates that 2 million people are affected by workplace violence every year. Verbal or physical abuse, cyberattacks, data breaches, and other similar events contribute to these numbers.

Employee training, protective gear, and compliance with industry safety protocols are the four essential strategies for preventing internal and external risks.

Employee Training

A well-trained staff is the most crucial ingredient of a safe warehouse. Employees should know all the risks – and their consequences – when entering the workplace. Managers must train them to properly handle equipment and navigate the warehouse without interfering with other employees.

A warehouse can quickly become cluttered and chaotic, so employees have to take tidiness seriously. Managers must train them to keep their workspaces clean and organized. There should be no loose wires, unattended equipment, or disordered shelves. Every item needs to be accounted for.

Workers must also have the knowledge and awareness to report risks when they emerge. This responsibility requires managers to implement effective communication strategies. Warehouse managers should encourage an open dialogue and reward employees when they make a report. Bad news isn’t pleasant to hear, but it makes the workplace safer in the long run.

When everyone in the building can identify and discuss potential hazards, warehouses get a more detailed and accurate picture of the hazards in their unique environment. Thorough employee training enables the management staff to make more informed adjustments to their safety rules and procedures.

To avoid complacency, warehouse managers should do periodic unannounced emergency drills. The drills will keep employees engaged and give them much-needed practice in case a real emergency occurs.

Protective Gear

Warehouse professionals must also utilize protective equipment for employees and the workspace itself.

Loose-fitting clothes are safety hazards because they can get caught in a machine and cause injuries. Workers should wear tight, breathable clothes to stay comfortable and hard hats, gloves, vests, and eyewear to protect themselves.

The air quality in warehouses can also become dangerous, so industrial masks might even be necessary when handling certain products.

Some companies have started using wearable technology to track employee activity and monitor their physical well-being. This technology can measure activity levels, heart rate, local air quality, and other important information. It’s also a reliable hands-free communication tool that can help employees report safety concerns to each other.

Certain parts of the workplace need protective labeling. All hazardous objects and zones should have bright, readable signs to warn employees. Signage should also be posted in break rooms and other common areas to serve as constant reminders.

Industry Safety Standards

Aside from warehouse-specific safety measures, OSHA has universal guidelines to prevent slips and falls, protect workers from hazardous materials, and prevent them from getting tangled in equipment.

For example, OSHA requires workers to wear hard hats to avoid injury from items falling from warehouse shelves. There must be an adequate number of first aid kits, CPR kits, and fire extinguishers on the floor. Each room must display written evacuation procedures for chemical spills, gas leaks, electrical malfunctions, and other such emergencies.

OSHA’s optimal warehouse temperature is between 68°F and 72°F. Managers must guarantee proper ventilation by airing the building out and adding strong exhaust fans. An upgraded HVAC system might be necessary in some cases.

OSHA also pays close attention to employee work habits. It expects shelves to stay organized and workers to handle equipment responsibly. Warehouse staff must abide by these standards for their personal safety and the company’s integrity.

Risk Assessment Is an Ongoing Process

Performing a thorough risk and vulnerability assessment is extremely important, but it’s not the ultimate solution. In reality, risk assessment is an ongoing process. New hazards will emerge when you least expect them. Human error also makes certain risks impossible to predict. That’s why managers must prepare for every possibility when assessing their warehouse’s safety.

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, Technology

Best Benefits of Using Chatbots in the Logistics and Transportation Industry

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Logistics and transportation companies require coordinating with several departments in real-time to ensure on-time delivery. Besides, they need to constantly share updates on order supply or delivery status with the clients. In this era of digitization, performing such operations using phone calls or manually is impractical. 

That’s where chatbots can help!

With chatbots, businesses can create engaging and personalized conversational experiences. From sharing business updates to resolving clients’ queries, chatbots provide end-to-end virtual assistance, redefining customer support. Rightly so, leading industry players like XpressBees, UPS, and LetsTransport are leveraging chatbots. 

The best part? With a no-code chatbot builder, building and deploying chatbots has become hassle-free. No wonder, these chatbot builders are gaining popularity among firms wanting to establish an omnichannel presence. Further, the cost efficiency of chatbots makes them ideal for businesses, especially SMBs with tight budgets. 

Did you know? The chatbot market is expected to reach $9.4 billion by 2024 at a CAGR of 29.7%. 

In this post, we will share the five best benefits of chatbots for the logistics and transportation industry.

1. HELPS WITH DATA ANALYTICS

Data analytics helps companies gain in-depth insights into customer activities and make informed business decisions. It helps them streamline customer support operations, identify pressing challenges, and use data-driven solutions to overcome them. 

For instance, if a customer raises queries regarding their delivery status, authorities in respective departments can receive the notification on their systems. With chatbot integration, customer support experts can track crucial details like customer purchase history, order ID, GPS location, shipment status, and more. 

Notice how iMile’s chatbot collects user data in real-time. This approach helped their team handle 6X queries efficiently. 

2. SUPPORTS FLEET AND STAFF MANAGEMENT

Tracking the availability of employees and vehicles is pivotal for logistics and transportation businesses. This helps them better manage their delivery schedule and ensure on-time delivery. According to statistics, 41% of customers rank fast and reliable delivery as one of their top priorities. However, only 15% of customers in the US are satisfied with delivery speeds. 

Deploying chatbots can help businesses track en route, under maintenance, and idle vehicles. Besides, they can monitor the availability of their employees or drivers. This helps in getting visibility of resource availability, allowing them to assign delivery tasks effectively. For fast delivery services, companies can gauge whether to opt for road vehicles, cargo, or freight train shipping. 

3. AIDS WITH SEAMLESS OPERATIONS AND PRODUCTIVITY

The productivity of a logistics and transportation firm depends on how well the workforce manages the warehouse and operations like shipping, inventory management, distribution, delivery fulfillment, and customer support services. By streamlining the tasks related to customer relationship management, chatbots can help improve the team’s productivity. 

Let’s say – your customer support experts spend around four hours servicing client requests. AI-powered chatbots can help reduce time consumption. As per reports, chatbots are efficient enough to save 30% of a company’s time spent in handling client requests. 

AI-powered chatbots like IBM Watson Assistant can answer 79% of repetitive questions with 14.7 times more accuracy than others. This reflects that your team can save around 1.2 hours daily. Your employees can utilize the time for complex operations like inventory management, order fulfillment, and warehousing. In short, chatbots can improve team efficiency and productivity.

4. PROVIDES 24*7 CUSTOMER SUPPORT

According to reports, the rise of globalization has made it crucial for businesses to operate  24*7 to gain a competitive edge. Besides, millennials expect them to resolve their queries within an hour. 

As running any business relentlessly can be draining, companies are switching to chatbots for uninterrupted customer support services. Statistics reveal that 64% of users consider ongoing service as the best feature of chatbots. So, deploying a chatbot with round-the-clock support can help logistics and transportation firms establish high customer service standards. This will improve customer satisfaction rates. 

Another study highlights that establishing continuous customer support can help save clients valuable time. So, logistics firms deploying chatbots can create a great impression on customers and achieve positive reviews as social proof of their exemplary services. 

The greatest benefit? According to a report, 72% of customers trust online reviews and testimonials more than anything else. So, a consistent chatbot service can encourage clients leave become loyal brand advocates, thereby boosting your company’s credibility. 

5. ESTABLISHES OMNICHANNEL PRESENCE

Forbes reckons, “a company is only as good as their customers perceive them to be,” which is true. Whether customers interact with your business via chatbot, website, social media pages, or client portal, a quick response is crucial. 

The reason? The average waiting time of customers when using live chat is only 88 seconds. This depicts you can lose valuable customers if you fail to address customer requests within a few minutes. 

Chatbots can be integrated into multiple communication platforms, including social media, websites, emails, messaging apps, and more. They work seamlessly on multiple communication platforms without human assistance. 

For instance, you can integrate chatbots with WhatsApp, which is GDPR-compliant and 100% secure. With a WhatsApp Chatbot platform, you can assist and engage clients in real-time. 

Observe the following example depicting chatbot integration in WhatsApp. Notice how chatbots can help logistics and transportation businesses engage clients on WhatsApp.

So, deploy chatbots to achieve an omnichannel presence.  

CHATBOTS ARE HERE TO STAY

96% of businesses agree chatbots are here to stay. As shared in the post, chatbots can help logistics and transportation businesses save on operational costs, streamline operations, track staff activities, and assist clients when they need them the most. 

With such a plethora of benefits, chatbots can prove to be a big asset for logistics businesses and their customers. So, if you run a logistics and transportation business, invest in chatbots to take your business to greater heights.

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Archives, Global Logistics, Global Trade Daily

5 Reasons Why E-Commerce Brands Need a 3PL Provider

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Online shopping is a force to be reckoned with. Between 2019 and 2022, worldwide e-commerce grew from 15% to an estimated 22% of all retail sales. With e-commerce potentially exceeding $1 trillion by the end of 2022, online retailers are wondering how to stake their claim, make themselves truly competitive and continue to grow into new markets.

The answer may lie with third-party logistics (3PL) providers. E-commerce 3PL is a growing trend among online retailers looking to scale, keep themselves competitive, and insulate themselves against the current risks and upheavals in retail and logistics.

What Is E-Commerce 3PL?

Not every company has the same logistics needs, and consequently, not every 3PL offers the same service packages. The potential workflows and specializations brands might outsource to an e-commerce 3PL company include:

  • Order picking and fulfillment
  • Distribution and general logistics
  • Stowing, storage and warehousing (including cold-chain storage)
  • Transportation (including last-mile delivery)
  • Reverse logistics (for customer returns, warranty claims, etc.)

Companies should find a reliable partner to carry out some or all of these functions. Here are some other ways modern e-retail brands could dramatically improve their competitiveness, earnings and rate of innovation by turning to e-commerce 3PL providers.

1. It Promotes Innovation

Adopting 3PL services is increasingly a matter of competitiveness. One study showed that 89% of brands improved their operations’ effectiveness after signing on with a 3PL partner. In the same survey, 73% of adoptees said these services introduced innovations into their logistics processes.

3PL companies live, breathe and dream logistics. It stands to reason that these service providers have ideas and technologies to commit to logistics operations that brands don’t have since it’s not their core focus.

These partners provide value-adding innovations to logistics, but they also support innovation in other ways. Losing the burden of planning, building and supporting logistics infrastructure lets brands thrive thanks to a renewed focus on core objectives.

2. The Digital Economy Is Always On

There may be a learning curve for brands that transition from a solely brick-and-mortar existence to the world of e-commerce. Gone are customers filing in neatly during business hours. People can now shop anytime from any place and expect service that matches their timezone and lifestyle.

Third-party logistics often doesn’t sleep, either. A 3PL company can do the work brands can’t do during hours when teams are working on expanding and innovating or after regular business hours.

If the digital economy never sleeps, logistics infrastructure can’t afford to blink, either.

3. Brands Need an Omnichannel Approach

One of the reasons for having this conversation at all is the sheer diversification of the e-commerce world. Manufacturers and retailers could get by with one-size-fits-all logistics systems in the years of shopping exclusively in brick-and-mortar shops. They could afford to be rigid in their approach because there was a limited number of points of sale and minimal potential touchpoints with consumers.

The internet has rendered this model archaic. The consumer experience is now omnichannel, meaning e-commerce brands need logistics support that meets customers wherever they are, no matter the channel they use to do their shopping.

3PL companies can provide the required technologies and segmented approach, including support for diversification in service levels — like various shipping speeds or subscription-based models.

4. Ensure the Ability to Scale and Pivot

One of the reasons why 3PL is a perfect fit for e-commerce is because retail is diverse, dynamic and sometimes unpredictable. Retailers and online brands may find their audience, inventory or geographic markets changing rapidly and often. What better way to insulate one’s brand against these paroxysms than to outsource the processes most likely to be affected by them — fulfillment and logistics?

The transportation, logistics and warehousing systems used by 3PL companies are created from the bottom up for diverse clientele. They are designed to be flexible and meet various and ever-changing needs.

Diversifying and strategizing the placement of available inventory is another closely related benefit of e-commerce 3PLs. Brands can rapidly expand their footprint — and potential clientele — by leveraging existing warehouse execution systems, strategic locations, data centers and support facilities, and other infrastructure elements.

5. Minimize Financial Outlays for New Technology

The worldwide e-commerce fulfillment services and technologies market was worth $18.6 billion in 2020 and is expected to grow by almost 10% per year between 2022 and 2030. One of the reasons for the rapid expansion in this sector is the equally rapid proliferation of new fulfillment technologies.

Newer e-commerce brands that want to credibly do business with more mature companies must leverage emerging technologies. This includes automated order picking, collaborative robots, advanced software for organizing and prioritizing customer orders, and perhaps fleet-tracking technology for monitoring freight and managing dock traffic.

All these technologies require e-commerce brands to invest time and money. Hiring an e-commerce 3PL company with access to cutting-edge fulfillment technologies could be a savvy move that saves finances and effort over time.

Is E-Commerce 3PL the Right Choice?

There may be many other reasons to choose 3PL solutions that might be more relevant to a company’s brand, products and business model. For example, someone considering offering refrigerated or frozen products for home delivery may want to build their own cold-chain storage infrastructure or purchase access to mature, scalable infrastructure instead.

Companies must put themselves in consumers’ shoes, too. The biggest names in retail and e-commerce have set high expectations for order fulfillment. Some customers expect certain purchases to arrive in two days or less as an industry standard. Businesses should ensure they’re materially prepared to answer the call of the market but they don’t necessarily have to own the materials that make that possible.

Companies must create and ship the best products in the industry. It’s not necessarily in their knowledge base to deliver lightning-fast delivery, on top of all their other responsibilities. Brands that commit to building and maintaining their own warehousing, logistics and fulfillment systems are diluting their efforts and taking focus from their core offerings.

However, those are exactly the sorts of things 3PL partners can add to a value chain, leaving companies to focus their innovative energies where they’re needed.

 

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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, Global Logistics, Global Trade Daily

The Human Touch: The Key to Becoming a Trusted Digital Freight Broker

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Shipping isn’t always a straightforward process. 

It involves many considerations—finding carriers, facilitating shipment deliveries, updating customers about the status of their shipments—and complicated nuances. 

But freight is more than just processes—it’s relationship-driven. 

Customers want a reliable freight partner that will put their needs first, deliver quality service, and has a long history of helping them succeed.

Investing in technology helps you work smarter, more efficiently and gain a competitive edge, but it’s the human touch that makes everything stick.

The Role of Human Interaction in Freight Brokerage

There are over 106,000 freight brokerages and agencies operating across the United States. Many of them are smaller shops that lack advanced technology visibility, while the larger brokerages that provide the tech and visibility lack the human touch customers seek. 

Comprehensive data helps customers make sound decisions about shipping their freight. 

For instance, they can determine the best cost- and time-efficient carriers, order consolidation potential, capacity constraints, and how they can optimize their overall spend.

But customers want to work with people—not just data. They want someone to guide them along, so they perceive a human voice to be more trustworthy than an automated response.

Technology enables people to solve problems at greater scale and speed. However, tools lack the vision, creativity, and ethical judgment to manage exceptions, interpret data, and deliver a more positive customer experience.

How to Add the Human Touch to Your Digital Freight Brokerage

Your customers can’t just trust that you’ll stand by your word. You must build that trust over time by executing what you sell to them from the initial meeting. This involves:

  • Being honest and transparent.
  • Providing good account management.
  • Investing in the right technology and visibility.
  • Combining human interaction and technology.

Be Honest and Transparent

Honesty and transparency are based on the initial pricing and transportation. 

Stand by the rate you supply from the initial front and service the business to your customers’ expectations. This can be difficult, especially if you operate a smaller brokerage and don’t have enough resources. 

Be honest and let your word be solid and reliable. Make your customer feel confident that the rate you originally quoted won’t change after you sign off on their freight transport, even if it gets uncomfortable for you.

Deliver on everything you’re going to say from the initial load and ensure it’s visible to the customer so they know what’s happening. Have a team available to them whenever they call and give correct statements every time. 

Build a Strong Team

Investing in a strong team and putting your best people in front of your customers ensures you build relationships and keep growing your business. 

Yet it’s difficult to come by the right team, especially with the Great Resignation, where 63% of workers cite lack of opportunities for advancement as a major reason for quitting their jobs. 

When recruiting new hires, let them know there are opportunities for individual, personal, and professional growth (horizontally and vertically) with your company.

If an employee doesn’t want to work with customers initially, for instance, let them serve in another capacity but still make that transition possible. 

Providing quality, consistent, and efficient service results in more intimate relationships with customers and more opportunities for your employees to grow within the organization. 

And it’s a sure path to building out your company’s destiny.

Provide Good Account Management

Your business is about selling the technology and the idea that customers will get visibility through it. 

However, even with visibility, many customers will still call your team to get an update or send emails to interact with your employees and get their irreplaceable counsel.

A team with the right quality and character at account management and carrier sales representative levels builds intimate relationships with your customers and freight partners. 

It’s not just about providing a rate, but also:

  • Showing up on time.
  • Communicating regularly about deliveries.
  • Removing unreliable carriers with a history of routine delays or no-shows from your network. 
  • Offering ideas that ensure customers’ supply chains keep evolving.
  • Providing solutions where unpredictable events (inclement weather or mechanical failure) arise and accountability when things go wrong.
  • Ensuring sales reps are always available to customers.

Invest in the Right Technology and Visibility

Customers want you to save them money and time while making their lives easier. If they find it difficult to interact with you, they’ll find a broker with customer-friendly systems.

For example, if you’re tendering freight and need to provide visibility to your customers, don’t make them create a hundred different logins on 10 different websites to see where their freight is. 

With the right tools, you can:

  • Streamline productivity for your employees.
  • Offer more visibility for your customers.
  • Make working with you easy and seamless.​​

Combine Human Interaction and Technology

Your tech stack might slow down your business processes, negatively impact employee productivity, decrease customer satisfaction, and hurt your company’s growth. 

If employees have to work with multiple different tabs and windows instead of a handful, or a single system, it creates a little more chaos in their organization levels.

To stand out to your customers and employees: 

  • Provide the best solutions and methods of doing business with customers that work really well. 
  • Integrate technologies like a transport management system and EDI or API connections to provide ease of use and visibility for everyone.
  • Take the noise out of the system for your employees so they’re more organized, productive, and offer better customer service and solutions.

Freight Is About People

The true value of your freight brokerage comes with your service. 

Technology can optimize your processes, but the human touch is the key to solving your customers’ pain points, forming long-lasting relationships, and becoming a trusted freight broker.

Kyle Ingraham is president of logistics at AFC Logistics, a leading freight and logistics company headquartered in Tampa.

 

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Archives, Education, Global Trade Daily

The Importance of Being Financially Literate in Business

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Running a business, regardless of its size, is not an easy thing to do. You must understand how the cash flow works and all other money-related stuff in the industry.

Naturally, you want to earn revenue from your organization; profit is not the only thing about finance.

Financial literacy is vital in building your business, including personal finances. If you understand how finance works, you will know how to consolidate high-interest debts, keep books efficiently, make a financial plan for the business and yourself, and create effective financial decisions.

This article will cover what financial literacy is and why it is vital in business.

What Financial Literacy Is

Financial literacy is understanding your business’ finances, including all money-related activities, such as debts and account receivables. It gives you the knowledge of financial terms, theories, ideas, statements, and common practices. All these things can help you see the company’s clearer picture of its financial situation as it affects the scalability of the business — the capacity to grow to meet the demands.

You don’t need to be a graduate of a university or any specific course to become literate financially. Even if you don’t have any idea how accounting works, you can learn the basics that will help you improve in making financial decisions.

The Importance Of Financial Literacy In Businesses

Being financially literate is a must if you don’t want to fail your business journey. That will help you be more accurate in your financial calculations and endeavors. Overall financial literacy gives the advantage to dealing with many challenges related to your business finances.

Managing Cash Flows

One of the most obvious importance of financial literacy in business is the ability to manage cash flows better. The company’s cash flow doesn’t only focus on the actual money you receive when making sales. It also includes the purchase of resources to make and sell the products you have.

When your client or customers want to buy bulk orders from you and set a payment term, such as bi-weekly or weekly, it is also included in the cash flow even though you haven’t collected the money. This is usually called account receivables.

Even if you haven’t gotten the full payment yet, you still need to manage and allocate where the funds go.

Aside from the receivables, debts are also part of the cash flows. Make sure that you pay everything on time to avoid paying for high-interest rates. These interests affect the company’s profitability and finances when left unpaid.

Handling Your Taxes

As a business owner, handling your taxes is a part of your duties. You have to pay your income tax, self-employment tax, and other obligations to avoid any financial issues in the future.

It’s best to understand what your tax situation is. You’ll be able to calculate the total amount and avoid paying less or more. If you pay lower than you’re supposed to, it could affect your business financial situation as you need to get additional funds to pay for your taxes.

On the other hand, paying more than you need also disrupts the company’s cash flow.

If calculating your overall tax is complex for you, it’s best to hire a tax professional or an accountant to handle the taxes. However, if you study how to compute it over time, you won’t need to hire professionals to do the computation.

Negotiating Skills

Financial literacy can help you improve your negotiating skills. Understanding how finance works allows you to see the bigger picture, whether you are negotiating for materials, stocks, or your employee’s salary.

You’ll understand how certain adjustments can impact your business. For instance, if you give more benefits to your employees, it could positively and negatively affect the financial flow. You’ll be paying for more, but they can become more productive.

When negotiating about finances, you’ll be able to see how it affects the business’ financial situation. This means you can sway the conversation in your favor and turn it into a win for your organization.

Advocating The Team’s Budget

When you need a budget for a certain project or product, understanding finances helps build a strong case. You’ll be able to allocate the funds efficiently and identify which areas can be adjusted to get the funds you need.

For instance, your company needs funds for a new marketing strategy, and you don’t have enough funds for it. You might consider adjusting the program to meet the budget or go for a loan. Computing everything is the key to avoiding any financial setbacks.

You’ll also be able to calculate the expected return on investment when allocating the budget, helping you prevent any loss from your company. It’ll also give you an insight into whether the amount is a good investment, especially when buying new items to run the business.

Analyzing Your Financial Statements

Financial statements represent the financial status and performance of the company. The data is usually gathered annually, but some companies do it biannually. If you’re financial literate, you’d be able to analyze them independently.

When looking at financial statements, you’ll find the factors that affect profitability and whether a marketing campaign is successful or not. This will also show any loss and if the company is making a profit.

By analyzing the data, you’ll be able to understand the financial health of your organization. This is a critical element in any business as it could identify any financial problems the company is experiencing, allowing you to make business-oriented decisions.

Become Financially Literate

In any business, understanding finance is essential. You can hire professionals to work it for you, but as a business owner, it is best to know how it works; besides, it’s your company.

When you become financial literate, you’d be able to calculate your company’s expenses, expected profit and loss, and budget accurately. You will also manage the cash flow, pay taxes, allocate funds for specific projects, negotiate, and analyze the company’s financial situation.

This will allow you more control over finances, helping you decide for the betterment of the organization regarding its financial structure. So, become financially literate to run the business better, and manage its finances more efficiently as you make decisions to help the company.

 

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Archives, Global Trade Daily, Technology

Four Priority Areas for US Manufacturing

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Despite the gloomy economic news, US manufacturing is still poised for a decent 2022. In fact, July was a surprising month with output rebounding and exceeding predictions after a June decline. While this has some analysts optimistic for the second half of the year, there are four key areas manufacturing executives will need to keep a close eye on.  

Reskilling and Recasting

Talent scarcity is hitting manufacturing hard. This is naturally advancing the discussion of elevated pay to attract more workers. Before hiring, however, some reskilling should be considered. In line with digitization and automation strategies, reskilling existing employees to take on jobs that cannot be digitized or automated in the short term is a smart strategy.

Recasting, on the other hand, is a heavier lift. Manufacturing has suffered a public perception hit and the sector needs a marketing makeover. Spotlighting modern facilities, career mobility, flexible work models, and well-being are just a few areas that can sway folks from competing industries and appeal to younger workers.  

Nearshoring and Onshoring

According to survey data from Deloitte’s “2022 Manufacturing Industry Outlook,” 24% of manufacturing executives are considering moving some of their operations closer to end customers. The snags that mired 2020 and 2021 are shifting the perception that highly fragmented globalized networks are lean, efficient, and profitable for eternity. 

In line with nearshoring and onshoring is the integration of supply chains. To facilitate supply and demand planning and visibility, enhanced data integration is critical. The White House released a “100-day supply chain review” document in 2021 and 2022 recommending a series of initiatives companies can take to strengthen resiliency.  

Smarter factories

Management enjoys bringing operational efficiencies to scale. But as mentioned earlier, smarter factories are also great marketing to attract talent. The same Deloitte study found just under half of manufacturing executives (45%) expect additional increases in operational efficiencies based on investments in the industrial Internet of Things (IIoT). Connecting machines and automating processes is no longer a niche area. Moreover, the US has some room to run in this regard, already trailing Germany, Singapore, and South Korea for example in the number of industrial robots as a share of manufacturing workers.  

Cybersecurity

There isn’t an industry in 2022 that does not have cybersecurity as a key focus area. High-profile attacks across governments and industries make cybersecurity a risk management essential. Beyond simply financial losses or intellectual property breaches due to cyber criminals, most companies run the risk of being completely shut down and their supplier networks harmed. Add remote work to the mix and manufacturers are more susceptible than ever. Increased departmental oversight, employee training, and retooling will be the norm for those seeking to minimize their exposure. 

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Archives, Education, Global Trade Daily

A Comprehensive Guide to Business Name Generators 

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Thinking and identifying the appropriate name for your business may not be an easy task. From originality and memorability to patenting potential you need to consider several factors before choosing a business name. That is primarily the reason to choose a cutting-edge business name or brand name generator. They offer a broad spectrum of original suggestions that you could use as the new name for your company or as an inspiration while choosing your business name. 

According to Forbes, it is crucial to choose the right name. Your company or brand name helps to create an image of your company in the mind of your potential clients. Moreover, it demonstrates what the product or organization stands for and is the most critical keyword for searches on the Internet. Choosing an incorrect or inappropriate name may adversely impact your business, if not destroy all chances of success. Unknowingly using an already trademarked business name implies additional rebranding expenses, including research and development expenses for printing all new business cards and setting up a new website. 

Reasons to Use Business Name Generators

Incredibly Easy and Super Quick

You have access to a plethora of advanced tools that come free online. These tools are super easy to use. You may visit the website and enter whatever word you wish to use on the given space and then click generate to get an extensive list of business name recommendations to choose for your business. The entire process takes place in a jiffy. You no longer need to devote hours to name selection.

Amazing Brainstorming Tool

Even though it may not help you identify the perfect name for your business, it is an effective brainstorming tool. You may get the right inspiration as you come across new words or innovative combinations that may set you on the right path towards perfect name selection. Often while thinking about unique business names you may encounter a mental block. It pays to seek assistance from a business name generator to clear the blockage and stimulate your brain in the right direction.

Easy Access to Creative & Unique Names

You can come across catchy and unique business name suggestions. The names generated by these tools are usually incredibly memorable and unique. Name generation may utilize multiple stratagems, including alliteration, combinations, puns, and life events to highlight them and grab customer attention.

You May Get a Logo Along with an Apt Business Name

Some online company name generators let you browse a host of logo options for your business. Logos are integral to your branding exercise. However, they may be stressful if you are not that design-savvy or when you have a tight budget and cannot hire design experts to generate your company logo. Some advanced company or brand name generators online give free access to an efficient logo maker tool for downloading your business logo without spending any money. Some online business or brand name generators have a competent team of designing experts for new, authentic graphics for using as your logo.

Business Name Mistakes to Avoid

  • Replicating a reputed brand name
  • Opting for a long name
  • Ignoring or undermining trademark laws
  • Opting for complex spelling
  • Failing to consider timing and branding
  • Choosing a generic name
  • Choosing a name that is not short enough for Twitter
  • Choosing a name as per domain availability

Factors to Consider while Choosing Your Business Name

Brand Identity

It is critical to determine your brand identity before you consider choosing a name for your business or brand. Your name will help your target audience to perceive your organization. You should determine the mission, culture, and target audience of your business or product. Once you have identified your precise brand identity, you can choose a name that is an accurate and direct reflection of your business values and ethics.

Uniqueness & Conciseness

Focus on the conciseness and uniqueness of your business name if you are aspiring for success. It is better to avoid descriptive names. Short and unique names are best for making a niche on social media and gaining higher SEO rankings. People can relate to and remember short names. So it is best to choose a short and unique name for your business or brand. Descriptive or long names will get lost in Google searches. Moreover, Twitter will highlight unusual and new names.

Simplicity

Simplicity is the key to branding success. Keep things simple while choosing an appropriate name for your business, product, or service. Business names can be creative and essentially deliver a concise message about your business or brand.

Trademark Issues

Trademarks are very important considerations. You may face lawsuits because of trademark issues. You can avoid trademark issues by doing meticulous research before choosing the name. You should get your company name trademarked upon the foundation. Follow all the dictates laid down by the United States Patent and Trademark Office.

Easy to Pronounce & Read

Naming a business is the most crucial and challenging aspect of branding. It becomes even more complicated and overwhelming because of the lack of legally viable URLs and names. It is best to look for names that can be read effortlessly and pronounced without any difficulty. Business or brand names that can be easily pronounced or legible get the advantage of being remembered by customers and potential customers.

Mission & Longevity

It is of pivotal importance to consider the longevity factor while choosing the business name. You need to understand precisely how long the chosen name would be resonating with your targeted audience. With the growth and gradual progress of your business or brand, your business name may become less associative or familiar to your audience. It is best to opt for a business name that reflects your company culture, ethics, and mission accurately. 

Conclusion

If you wish to get a creative and unique name for your brand or business, it is best to use a free online company or brand name generator for having fast and easy access to a host of apt name suggestions for your brand or business.