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Tips For Hiring the Best Shipping Company for Your Business

freight
Archives, Global Shippers 101, Global Trade Daily

Tips For Hiring the Best Shipping Company for Your Business

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In today’s modern world, multinational goods dealing is a well-known and well-liked industry. This is why the products of prominent worldwide brands are available in countries all over the world. Freight forwarders manage the transportation of products. They do not just assist in the transporting of products from one nation to another, but they can also aid with suitable storage if necessary.

Freight forwarding providers, in reality, play a critical role in the seamless operation of supply chains. Overseas freight forwarding solutions are in high demand, and numerous organizations provide them at reasonable prices. To pick the best company here are a few helpful tips.

Reputable

It takes several years to earn a good reputation, yet this can be ruined in an instant. The reputation and relationships of freight forwarders are what make them successful.

Verify if a forwarder is a WCA-approved membership if you’re apprehensive about their reputation and dependability. This logistics relationship network serves as an excellent barometer for determining whether or not a freight forwarder could be relied upon.

If you can’t locate any additional context, simply ask those questions from forwarders. Any credible forwarder should have no problems with this. Unless they are a closely owned corporation, you can also see their accounting information online.

Cargo Insurance

So, you’ve located a forwarder who can provide you fair pricing, third-party logistics solutions, and mutual trust. However, there is one additional aspect to consider, and that is cargo insurance. If you want peace and quiet and reduced risk, cargo insurance is a must. It covers your shipment while being transported by land, sea, and air and protects it from loss or damage.

Cargo tracking

Check with your freight forwarder to see if cargo tracking is available. A company sending products through freight forwarding companies will be concerned about the shipment till it arrives in great condition and on schedule. Shipping companies must provide cargo tracking to customers to keep them informed. You’ll know where your deliveries are at all times with cargo tracking. For the most reliable and precise tracking system you can consider zim tracking.

Pricing

Moving freight throughout the world is, in a nutshell, a complicated procedure. It entails various procedures, all of which might go wrong and trigger problems throughout the distribution chain. If you want to choose the cheapest logistics company provider, you will not get the degree of care you require, and their team will frequently lack industry information and experience on how to rapidly resolve difficulties. Picking the inexpensive freight forwarding provider can end up costing your company more in the long run.

Among the most crucial qualities to ask a freight forwarding business are delivery time as well as pricing. It’s critical that your business guarantees and ensures your items arrive on schedule and in great condition at their destination. Pricing is also important, in addition to fast delivery. Select a firm that provides dependable services at a reasonable cost.

production
Archives, Global Trade Daily, Special Reports

How E-commerce Websites Can Successfully Integrate Video Production In their Digital Marketing Campaigns

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Video is an enjoyable, easy-to-digest, and often, overlooked content creation strategy that converts better than any other type of content.  A landing page containing a video is bound to increase conversion rates by 80%. In addition, videos help search engine rankings and are shown to raise organic search traffic by 175%.

With the tremendous growth of e-commerce sales in the past year, brands are challenged to up their marketing strategy and create new ways to attract potential customers.

Companies that offer products online and haven’t yet started video marketing need to jump on the video production train right away.

E-Commerce State at a Glance

E-commerce rules!  In only the past year, it has generated 4.28 trillion US dollars in revenue. In the U.S only, that accounted for over 604 million US dollars.

Naturally, that drives the increase of digital shoppers as well. It’s estimated that by the end of 2021, there will be 2.14 billion global digital buyers.

It’s safe to say that we are in the era of online shopping. A time when consumers prefer to quickly browse products and services on their mobile devices and place orders that they receive the next day – no hassle, no time wasted.

For e-commerce businesses, the move towards primarily online shopping raises the bar of what counts as a good customer experience.

Simply listing your products on a website doesn’t do much for conversion anymore. There’s a need for more interactive, immersive, and truly helpful product content online. Brands have to figure out how to turn their boring offerings into entertaining story-rich experiences.

One very successful way to do that is through video marketing.

How to use video in your e-commerce marketing

Check out these tips on how you can integrate video production into your e-commerce websites and improve your brand’s bottom-line:

Product Photos Turned Videos

Put yourself in the shoes of your customers. How do you know if a product will match your needs and desires?

You would want to see it in real-life situations. A great way to show your customers how products truly benefit them, is by displaying how they look like or work in practice.

Take the clothing retailer Mother. The fashion brand goes far beyond a simple display of products and visually describes in the tiniest detail how their products look and feel in real-life situations — like walking on a treadmill for example.

Customers get a unique 360-degree view of what the products worn by a real person would look like. Not only that but they show how the clothes move when you wear them.

An awesome example of user experience taken to the next level.

How-to Product Videos

The next step in improving the quality of your e-commerce website is through creating instructional videos that show users how your products work.

These videos educate customers and help them see the value of your product. Plus, “how-to” videos are a great way to help out customer support teams.

People will have clear, visual instructions on how to use the products and will save time and frustration trying to figure it out or wait for help from your support team.

British Airways gives a great example of how you can turn instructional videos into entertaining pieces of content.

Their video features a number of celebrities to draw attention to an often overlooked but quite important aspect of traveling on airplanes.

Celebrities may not be an affordable option for any brand, but their approach can be adapted to deliver a fun and entertaining how-to video for your e-commerce business too.

Behind the Scenes Video: Let Customers be Part of the Action

What will really make your audience connect with your e-commerce business? Well – feeling connected to the mission, challenges and glam of the brand is a great place to start.

Being able to walk through your process and daily tasks, your audience will understand the efforts put into delivering an unforgettable product and experience on their behalf.

It will help show the “human” side of your company – the people that make their experience extraordinary.

For example, take a look at how Glamour Magazine takes their viewers behind the scenes of a photoshoot narrated by their Fashion Director– Natalie Hartley. She guides the audience through how their projects come together, sharing her ideas and approaches in making their photoshoots a true sensation.

The audience is drawn into the process of creating something from a scratch. Showing the efforts required for just a few pages of curated content works miracles with audiences – making them appreciate the brand’s work and increasing consumer loyalty and trust.

To improve engagement with users, try creating video content around photoshoot campaigns and special events important to your brand. Show how your products are made, where do you source your materials from – every detail that is important to your customers and see your brand recognition and loyalty skyrocket.

User-Generated Videos Promoting Sales

If your brand is getting any traction with users, they’re probably expressing opinions and leaving reviews for your products.

Leverage testimonials and encourage customers to create user-generated videos – showing how they use the products, what they like about them, and what they wish to improve with your services.

People like to hear what their peers think of a product or service. They’re more willing to trust existing customers’ opinions, rather than brands claiming to be helpful. The more genuine your user-generated videos are, the more likely they are to positively affect the purchasing decision of potential new customers.

Take GoPro for example. They create unforgettable campaigns with user-generated videos showing how their cameras operate in real life.

They even make it fun by turning the whole process into a competition – enticing participants to generate all sorts of creative ideas – like a downhill bike chase on a roof-top, for example.

People interested in GoPro’s products get to see what actually happens when the camera is on and what they can expect as quality and durability.

You can create similar user-generated videos to help your potential customers get the feeling they already know what to expect from your products and be comfortable with their purchases.

GIF’s & Videos Boosting Email Marketing Conversion

Email marketing is still one of the most effective ways to convert potential eCommerce customers.

It’s a preferred marketing tool that 80% of business professionals trust to help them increase customer retention. In addition,  59% of surveyed customers say emails influence their purchasing decision.

To continue delivering delight, surprise and value to your customer lists and prospects, however, you should consider using animated gifs and videos in your email campaigns.

Statistics show that brands that use gifs see a 6% increase in open rate and a 109% increase in revenue.  Similarly, an initial email with a video gets a click-through rate of 96%

Embedding gifs and videos in your emails will also help you personalize your messaging and deliver value specific to each user.

Here are a few examples of brands using gifs and videos in their email marketing to get you inspired:

Headspace

Netflix

Starbucks

When you create your gifs and video-embedded emails, keep in mind the average attention span of adults is about 8 seconds. For your videos to be short, create anticipation in your video, and direct the reader to a clear CTA.

To Wrap Up

E-commerce is the preferred shopping option of the modern consumer. Dull and uninspiring product lists and low-resolution images, however, are not anyone’s favorite.

To deliver a memorable, and most of all, helpful shopping experience to your customers, you need to stay on top of the latest trends. Video production is not a strategy you can afford to miss. On the contrary, if your online business hasn’t yet started using videos – it’s time.

Video content is the future of e-commerce. It’s visually appealing, interactive, and immersive. It snatches the attention of the digitally overwhelmed and makes them stay to enjoy what you offer.

Don’t waste time. Start producing video content and delight your customers. These 5 content ideas will help you integrate video production into your digital marketing campaigns. Try it and tell us how you did!

___________________________________________________________

Terry Tateossian, Founding Partner of Socialfix Media is a fourth-generation entrepreneur who is recognized as an Inc. 5000 America’s Fastest-Growing Private Companies, Forbes’ Top Women in Business, Fastest Growing Women Presidents by WPO, and 40 Under 40 Business Leaders by NJBIZ. Terry has been featured for outstanding leadership and career accomplishments in numerous industry publications as an engineer, a thought-leader in technology, and an innovator in the field of marketing. But her favorite and toughest earned title is being “Mom” to her 2 children.

reverse logistics
Archives, Global Logistics, Global Trade Daily

Reverse Logistics: Turning Costs into Opportunities

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In 2020, lockdown and social distancing will have pushed e-commerce to unprecedented heights. This massive 30% increase in deliveries, further amplified by the Christmas shopping season, is leading to a similar wave of returns – nearly a quarter of all e-orders are returned by customers. Here are a few essential keys to ensure that you are in good working order for returns. 

In psychology, it is said that any “feedback”, even negative, is an opportunity. It is an opportunity to better understand the other person and to improve relationships. The same is true in reverse logistics: returns are an opportunity to transform a constraint into a positive customer relationship, as long as they are processed through all channels, the reasons for them are analyzed and the rate of returns is reduced.

Distancing will have strengthened online shopping

According to TNS Sofres, 89% of French people intended to use e-commerce for their holiday shopping in 2020. This period, as short as it is crucial, was expected to generate more than 22 billion euros in sales. In terms of deliveries, an operator like La Poste will have managed peaks of more than 4 million packages per day during this extraordinary period!

45 %  

Is the proportion of consumers who have returned at least one product purchased online in France within the year. Only Germany and The Netherlands have a higher rate in Europe.1

Reverse logistics, a commercial opportunity.

Before being a backward process, from receiver to sender, returns are an essential selling point. They represent the third decision factor of e-commerce customers, after price and delivery terms!

The consumer, therefore, expects clear information on the retraction periods used (increasing them to one or two months more increases the transformation rate), on the proposed methods (deposit in the mailbox, exchange or refund in the store, transport to the home), on the refund periods (beyond five days, they become an obstacle to the purchase).

Thinking downstream upstream

The return to sender is a channel for customer relations and satisfaction. For this, the keyword is unification. The retailer must be able to access homogeneous and centralized data on each order and its components (financial, logistical, marketing), whether the customer has ordered from a merchant site, in a store, via a market place or a call center.

Reverse logistics is also prepared from the moment of delivery, by simplifying the return procedure through the insertion of pre-addressed labels or by inviting the customer to visit the point of sale. If the products are returned to distribution platforms, the system will have to provide information on these temporary stocks and supervise the correct repackaging of the products, reducing the number of operations in order to optimize both time and costs.

WMS: the control tower

Such a capacity requires, in the background, the latest generation of Warehouse Management Software. This WMS process returns in real-time, regardless of volume and type. They provide an overview of their status, nature and reallocation: back to sales, forwarding to suppliers, destruction or recycling.

The latest generation of WMSs also list all physical and commercial characteristics: terms of sale, order history, via sequential package numbers and the various encodings used (GTIN 128, QR codes, RFID or Datamatrix).

To learn more, please visit our dedicated page.

Multiple benefits

Unified, the backward supply chain reduces the time it takes to put products back on sale, and thus reduces markdowns. Quickly and accurately classified through the WMS, returned products protect the brand’s margins and prices.

Reverse logistics also helps to: identify “serial returners”, know the context of each transaction, record special conditions (made accessible via any channel, at any time).

Another positive aspect is that return statistics influence commercial policy, by decoding consumer habits and customer expectations. The reasons for returns also constitute an alert on the quality of the products: informed in time, the after-sales service can deal with the situation with the suppliers concerned.

Finally, if the customer returns his order to a point of sale, it is an opportunity to offer him a discount coupon, a complementary product or a higher range, to introduce him to a new service. Before being a transaction, commerce is really about relationships.

End-to-end, omnichannel returns monitoring provides valuable insights into the impact of returns on replenishment, product availability and offering relevance. Unified reverse logistics processing creates two strategic advantages for retailers. Commercially, it is a loyalty and growth tool, a key element of a personalized relationship. Financially and logistically, it is an important lever for savings and simplification. It would therefore be a shame, and even harmful, to deprive ourselves of this partner

1 Statista, 2018.

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

cotton
Archives, Global Trade Daily, News

Cotton Prices to Rise Due to the Textile Industry’s Demand Booming Over the Supply

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IndexBox has just published a new report: ‘World – Cotton Lint – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

After stagnating during the pandemic, the textile industry has begun to strongly recover and the demand for cotton has risen. It is expected that consumption in 2021 will grow faster than the supply. This will lead to a reduction in global cotton stocks and higher prices. The issues of sustainability and ethical background become increasingly important in the transformation of cotton supply chains.

Key Trends and Insights

With increased demand from the textile industry, global cotton stocks fell to a three-year low. Although cotton production is projected to increase by 5% in 2021, the demand will outpace supply which will raise prices further. In the medium term, the main driver of growth in the cotton market will be the demand for textiles from the growing global population.

According to a recent report by the World Bank, the average price for raw cotton in the first quarter of 2021 was $1.64 per kg, which is 3% higher than the average price in 2020. In the fourth quarter of 2021, prices are projected to rise to $1.72 per kg.

Despite the positive dynamics, cotton production in 2021 will not return to the record levels of 2019. High cotton yields are projected in the U.S. (+523K tonnes), Brazil (+436K tonnes) and Australia (+239K tonnes), Pakistan (+174K tonnes) due to favorable weather conditions and the increasing harvested area. China, on the other hand, will lower cotton production and give way to India as the main producer with a 24% share of the world total.

The highest growth rates for the industry and demand for cotton are expected in Pakistan, India, Bangladesh, Vietnam, Turkey and China. The first four countries mentioned are becoming center points for the global textile industry due to cheap labor. In China and Turkey, the populations’ rising incomes will make production less competitive. It is assumed that domestic production will not be able to fully meet the demand of the industry in China, and the country will have to increase its imports.

Strong competition from other natural and functionally similar materials such as hemp or flax as well as synthetic textile materials will hold back market growth. Hemp is more convenient to grow than cotton as it consumes 5 times less water, while cotton production is considered “environmentally harmful” because it uses large amounts of insecticides. In some countries, forced labor is supposed to be used on cotton plantations. The environmental issues and labor rights violations lead to increased consumer attention to the ethical side of the cotton market. This forces major apparel companies to shift supply chains toward cotton suppliers with a proven and traceable environmental and ethical background.

The issue of creating a cost-effective recycling technology for cotton to be sustainable is now becoming increasingly important. The production of cotton fibers involves a huge amount of water consumption, and cotton recycling will significantly reduce these volumes and maintain the stability of natural water resources.

Cotton Exports by Country

In 2020, shipments abroad of cotton lint decreased by -9.2% to 8.1M tonnes for the first time since 2016, thus ending a three-year rising trend. In value terms, cotton lint exports shrank sharply to $13.1B (IndexBox estimates) in 2020.

In 2020, the U.S. (3.8M tonnes) was the key exporter of cotton lint, comprising 47% of total exports. It was distantly followed by India (965K tonnes) and Brazil (865K tonnes), together achieving a 23% share of total exports. The following exporters – Benin (292K tonnes), Greece (289K tonnes), Cote d’Ivoire (230K tonnes), Burkina Faso (217K tonnes), Nigeria (212K tonnes), Australia (170K tonnes) and Uzbekistan (137K tonnes) – together made up 19% of total exports.

In value terms, the U.S. ($6B) remains the largest cotton lint supplier worldwide, comprising 46% of global exports. The second position in the ranking was occupied by India ($1.4B), with a 11% share of global exports. It was followed by Brazil, with a 11% share.

In 2020, the average cotton lint export price amounted to $1,616 per tonne, shrinking by -6.9% against the previous year. Average prices varied somewhat amongst the major exporting countries. In 2020, major exporting countries recorded the following prices: in Nigeria ($2,222 per tonne) and Uzbekistan ($1,823 per tonne), while India ($1,501 per tonne) and Greece ($1,558 per tonne) were amongst the lowest.

Cotton Imports by Country

In 2020, after three years of growth, there was significant decline in supplies from abroad of cotton lint, when their volume decreased by -16.8% to 7.1M tonnes. In value terms, cotton lint imports contracted sharply to $12.2B in 2020.

In 2020, China (1.9M tonnes), distantly followed by Viet Nam (945K tonnes), Pakistan (819K tonnes), Bangladesh (726K tonnes), Turkey (655K tonnes) and Indonesia (627K tonnes) represented the largest importers of cotton lint, together generating 79% of total imports. The following importers – Malaysia (247K tonnes), India (174K tonnes) and South Korea (115K tonnes) – together made up 7.5% of total imports.

In value terms, China ($3.6B) constitutes the largest market for imported cotton lint worldwide, comprising 29% of global imports. The second position in the ranking was occupied by Viet Nam ($1.4B), with a 12% share of global imports. It was followed by Pakistan, with a 11% share.

The average cotton lint import price stood at $1,706 per tonne in 2020, shrinking by -5.3% against the previous year. Average prices varied somewhat amongst the major importing countries. In 2020, major importing countries recorded the following prices: in India ($1,979 per tonne) and China ($1,929 per tonne), while Viet Nam ($1,486 per tonne) and Turkey ($1,519 per tonne) were amongst the lowest.

Source: IndexBox AI Platform

breakbulk americas
Archives, Executive Education, Global Trade Daily

Breakbulk Americas Returns Live and In-Person to Houston

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Breakbulk Americas, the region’s largest trade event for the project cargo and breakbulk industry, will return to the George R. Brown Center in Houston, Sept. 28-30 this fall. Since the first Breakbulk Americas held more than 30 years ago, nothing stopped the show—not Hurricane Katrina or Hurricane Harvey—until the COVID-19 pandemic when most offices closed, employees worked from home and travel was nearly non-existent. No large events were held in 2020, but 2021 presents a vastly different scene in the United States. Breakbulk Americas will be the first Breakbulk event to be held since the shutdown of March 2020.

Enthusiasm and interest in the show are running high. Breakbulk Americas will welcome back global sector leaders including DHL Global Forwarding, MSC Mediterranean Shipping Company, CMA CGM, Kuehne+Nagel, AAL Shipping, bremenports, Goldhofer Aktiengesellschaft, Liebherr and Bahri. New and notable to the show floor this year are Volvo Penta and Airbus, household names in the industrial manufacturing sector.

This September’s event is all about getting together as an industry after a long and unwelcome break. Fortunately, the vaccine rollout has been very efficient, and Americans are able to move around with a great deal of freedom, which bodes well for the event this fall. However, international travel remains uncertain. Breakbulk organizers are monitoring the global situation and will add remote coverage of the event if necessary for those unable to travel. We are working very closely with the City of Houston and the George R. Brown Convention Center to make sure that this is a safe experience for all.

Safe and secure

In a personal email to Breakbulk Americas organizers, Visit Houston, the city’s entity that governs events and tourism, has outlined its exceptional safety measures that will be in place for the event along with other improvements to support the region’s top event for the project cargo and breakbulk industry.

“Our city and team are vested in your success and are constantly seeking innovative ways to enhance your experience,” John Solis, Senior Vice President of Sales & Client Services at the GRB, said in a communiqué to Breakbulk. He said the convention center has made significant enhancements to its facility, including:

The George R. Brown Convention Center is the first facility in the world to deploy the Integrated Viral Protection (IVP) system. This is the world’s first biodefense filtration technology proven to eliminate SARS-CoV-2 (99.999%) and other airborne contaminants, and was recently awarded the 2020 Emerging Technology Award by The
American Society of Mechanical Engineers (ASME), Solis said.

In addition, a new virtual studio inside the convention center will provide flexibility to maximize opportunities for hybrid experiences. This feature will allow Breakbulk to host remote expert speakers should that be necessary due to travel or budgetary considerations, along with its in-person industry panelists.

The new features complement Hyve’s (the Breakbulk event series parent company) own Safe & Secure program that is being applied to all Hyve events around the world, including Breakbulk Americas, Breakbulk Europe and Breakbulk Middle East.

Networking first

The Breakbulk team has conducted extensive customer research around expectations for Breakbulk Americas, and the message has been both unanimous and clear: after the event hiatus, networking is the most important feature of the event. Participants want to meet in person, catch up and explore new business opportunities. And Breakbulk Americas has an enhanced plan for that.

The traditional welcome reception held Tuesday evening at the GRB will embrace the spirit of Texas as thousands gather for the Reunion at the Breakbulk Saloon. Indeed, the entire exhibition floor will be decked out Western-style with “watering holes” (themed bars) throughout the halls. A dedicated shippers lounge will be a hub for EPCs, manufacturers, energy companies and other cargo owners to meet with one another and schedule meetings with exhibiting service providers.

Leading up to the reunion will be an Executive Summit for C-level exhibitors and shippers to tackle post-COVID recovery together, and on a lighter note, all attendees are invited to participate in the 2021 Maritime Workers Emergency Medical Fund Golf Tournament at the Hermann Park Golf Course in Houston.

The first full day of the exhibition and conference begins Wednesday morning, continuing through Thursday afternoon. On the main stage, industry leaders will present a wide range of insights on the evolving impact of COVID on business and projects, Biden’s infrastructure plan, U.S. offshore wind project opportunities, the carrier sector, Women in Breakbulk will tackle how male co-workers can be better allies, and the effects—both long term and short term—of the greening of the oil and gas supply chain. There will also be a gathering for Breakbulk Veterans, industry leaders from all sectors with 20 or more years of experience. In the lead-up to the event, our
news team will continue to cover these topics both on the website and throughout the pages of Breakbulk magazine.

While serving current industry professionals is critical to our mission, Breakbulk is also committed to fueling the next generation of transport and logistics professionals, and 2021 presents an unprecedented need to attract young people to the industry. On Thursday, Jerry Nagel Education Day, a half-day program to introduce students to the industry followed by guided tours of the exhibition floor led by the Exporters Competitive Maritime Council, will be held. With strong ties to Texas universities and beyond, Breakbulk typically hosts around 200 students and their instructors at this introduction to the industry and to its leaders. This program is free to educators and students.

Registration is now open with early bird pricing through July 31, 2021.

_______________________________________________________________

Useful links
Registration: https://xpressreg.net/register/BATC0921

Hotel Accommodations: https://americas.breakbulk.com/Page/book-your-hotel

Safe & Secure at Breakbulk Americas: https://americas.breakbulk.com/Page/safe-secure

Program Agenda: https://americas.breakbulk.com/business-programme

Floor Plan: http://americas.breakbulk.com/page/floor-plan

To inquire about exhibiting, visit https://americas.breakbulk.com/Book-a-Stand

Press contact:
Leslie Meredith
Director Marketing & Media
Breakbulk Events & Media, Hyve plc
E: Leslie.Meredith@breakbulk.com
T: +1 801 201 5971

product
Archives, Global Trade Daily, Special Reports

“It’s What We Have Always Done”

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One of the advantages of BoldtSmith Packaging coming into your facility is having a fresh set of eyes take a look at the current packaging process and designs. Specifically, eyes that have been in thousands of manufacturing facilities for products ranging from pancake mix to motorcycles.

No matter what the product is or what the packaging is, there are six words we commonly hear. “It’s what we have always done”. When we hear this, the majority of the time we are able to uncover substantial cost savings! A few of these potential packaging optimization opportunities are outlined below:

1. Packaging material, freight or labor savings

2. Product damage reduction

3. Packaging consolidation

4. Process changes

Packaging has a way of being “grandfathered” in at a lot of companies. For example, a company develops a packaging solution for a product where the forecasted annual quantities were 50,000 units per year and shipping palletized into Whole Foods. Since that product was introduced 5 years ago, it has now been picked up by Walmart, Amazon and Target. Annual quantities are now over 8 million!

The company has exhausted all potential opportunities to increase margins through optimizing its processes, materials, and waste related to manufacturing the product. However, the packaging that was used at Whole Foods when the annual quantities were 50,000 is in fact the same packaging being used today at 8 million units per year. How could that be? Because, “It’s what we have always done”.

When you read through that, what packaging came to your mind? Corrugated boxes? Clamshells? Bottles? Pallets? That’s great! Packaging means something different to every company. For one company, it might mean gusted pouches going into a master carton that is palletized and stretch wrapped with corner boards and slipsheets between each layer of cartons.

How many different packaging materials and processes were just listed in that example? Were those materials and processes selected based on data and testing with a goal of maximizing profit, reducing damage and increasing customer satisfaction?

Or are they being used because “It’s what we have always done”?

Reach out to BoldtSmith Packaging and we will come into your facilities to identify what opportunities exist. From there, we will design, test and implement optimized packaging concepts!

Check out this case study on how we saved a customer over $6,000,000 in packaging costs!

This post originally appeared here. Republished with permission.

goods
Archives, Global Logistics, Global Trade Daily

Delayed and Damaged Goods Are On the Rise – Here’s How You Can Prevent Them

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The coronavirus pandemic and multiple national lockdowns have seen online shopping skyrocket. Online sales as a percentage of retail sales rose by over 50% from February 2020 to April 2020, taking them to 30.2% of all UK retail sales. This percentage has increased further in the 2021 lockdown, reaching a new peak of 36.5% of sales.

With this huge rise in online shopping comes increased pressure on both B2B and B2C haulage and logistics providers. Direct-to-consumer shippers had more deliveries to complete than ever before, while business suppliers needed to keep up with higher stock demands.

This has been a mixed bag for the sector. Many businesses in sub-sectors including refrigerated food were able to grow as a result of higher consumer demands. But shocking RHA data from May 2020 showed the disparity between businesses. 73% of hauliers said their cash flow has significantly reduced, while 83% said their volume of work was lower as a result of lockdown. Across the sector, 46% of trucks were inactive and a quarter of drivers were furloughed.

Delivery issues affect customers and hauliers

Delivery problems also reached an all-time high, with 81% of consumers experiencing an issue with parcel deliveries between March and November 2020. Complaints to Citizens Advice about delivery issues trebled, with the charity’s data showing almost a third of consumers experienced a delay with their delivery. Citizens Advice also reported that 18% of people had lost money as a result of damaged or missing goods since the first lockdown, 40% of whom lost over £20.

Delayed, damaged, and missing goods have an impact on everyone involved. A Voxware study has shown 30% of consumers are less likely to shop with a vendor who hasn’t delivered on time. This has doubled from 15% in 2016, evidencing the increasingly high demands of consumers. If you lose a customer’s parcel, this can cost £5,300 per delivery. This dramatically impacts retailers who rely on haulage firms to deliver their goods, but it also spells bad news for hauliers.

B2B logistics providers may find that businesses that can’t maintain adequate stock levels will stop trading with them. Equally, B2C haulage providers are at risk of complaints from consumers, which may result in the business you provide services on behalf of ending their working relationship with you.

Preventing damaged, delayed, and lost goods from ruining your reputation

The consequences of delivering a poor customer delivery service are dire. In some cases, the loss of one key contract can see a haulage business go bust. Here are some top tips for keeping your end customers happy.

Implement tracking software

This is one of the best ways you can increase your customer satisfaction. 87% of consumers say tracking is important or very important to them when ordering an online delivery. This feature has become more widely accessible than ever before, meaning it’s not restricted to enterprise delivery businesses anymore.

Tracking software also gives you full visibility of your fleet, allowing you to identify existing or potential delays. If you can see one of your drivers is heading towards standstill traffic, you can easily divert their route to prevent a delayed delivery. These solutions provide you and your end customer with an estimated time of arrival (ETA) which will automatically update based on your driver’s journey. So, even in the event of a slightly delayed delivery, your customer will be kept in the loop, resulting in fewer calls and complaints to your back office.

Consider haulier-specific insurance

Many of the issues that cause delayed, damaged, or even lost goods are out of your control. In serious situations, your vehicles could break down or your goods could be stolen. Even under these circumstances, consumers are entitled to refunds. It seems unfair that you should pay these costs on top of things like fixing or replacing your vehicle. That’s where haulier-specific insurance can come in. By protecting your business with insurance, you can mitigate the cost of compensating customers.

Combining insurance with electronic proof of delivery software is another way you can protect your business. The sad truth is that hauliers can face false claims of damaged or lost goods. Without a robust proof of delivery solution in place, these claims can be difficult to fight against. Electronic PODs combined with insurance will allow you to refute any false claims and give your business financial protection.

Assess your fleet for any potential issues

There are a number of ways the goods you deliver can get damaged. Sudden movements when your vehicle is in transit can cause damages. Sometimes this is preventable – and telematics tracking can help instill better practices amongst your drivers. But other times, it’s unavoidable. The climate can also impact your deliveries by exposing your goods to damaging heat, moisture, or debris.

Examine your fleet to ensure they’re adequately equipped for the types of goods they’ll be transporting. If you transport refrigerated or frozen items, your truck needs to be in tip-top shape to make sure no sunlight creeps in and spoils the food. Equally, businesses transporting fragile goods should use packaging and pallets that adequately protect the items. Performing tests can also help you foresee any issues with your fleet that you might not identify with an inspection alone, helping keep your HGV load safe.

Online shopping and deliveries have hit an all-time high in the past year. Many surveys have also shown that consumers plan to continue shopping online after the pandemic. This increased demand means it’s more important than ever to deliver an outstanding customer experience, whether you’re delivering B2B or to consumers. Complaints about delivery services have also hit a new peak, and data shows customers won’t return to suppliers whose delivery service is poor. By taking these three easy steps, you can mitigate these risks and reap the rewards of the shift to online shopping.

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References

https://www.citizensadvice.org.uk/cymraeg/amdanom-ni/about-us1/media/press-releases/half-of-british-consumers-have-had-a-parcel-delivery-issue-since-first-march-lockdown/

https://logistics.org.uk/compliance-and-advice/water/long-guides/delays-in-delivery

http://websitemagazine.com/blog/the-impact-of-late-and-inaccurate-deliveries-on-customer-loyalty

https://www.hollingsworthllc.com/how-late-deliveries-impact-customer-retention/#:~:text=So%20how%20do%20late%20deliveries,customers%20in%20the%20first%20place).

https://www.voxware.com/press-releases/voxware-2020-shopping-shipping-survey/

air silk
Air Cargo, Archives, Global Logistics, Global Trade Daily

How the Air Cargo Industry is Taking on COVID-19

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The fallout of the COVID-19 pandemic shook the aviation sector to its core. The economic crisis and travel bans and restrictions have severely hampered international transportation and the global air freight industry. Data from the International Air Transport Association (IATA) shows that global volumes and international cargo are significantly lower than in 2019.

Despite the apparent decline in numbers, the jet cargo industry is showing signs of steady recovery. It is safe to say that, from an economic point of view, airlines with cargo-diversified revenue streams are surviving and have managed to avoid the worst of the pandemic.

Adapt to Survive

The aviation industry is doing its best to adapt and ensure business survival in a changing world. Although world trade and passenger transport hit an all-time low during the main period of the pandemic, both commercial aviation and air charter sectors were able to modify their systems and services to meet the demands of the times and, of course, their clients.

We have seen passenger and private jet companies use their experience and expertise to cater to changing business requirements and emergency scenarios. From personnel repatriation to emergency evacuations — and sometimes even stepping into disrupted freight supply lines to ensure the delivery of essential goods.

Demand Response

Airline companies have shifted their focus throughout the pandemic and dedicated their efforts towards the successful transport of COVID-19 supplies and accommodating the exponential demand for essential COVID-19 commodities.

Cargo jets with climate-controlled facilities have seized business opportunities in freights that require highly regulated and temperature-controlled specifications, including the distribution of billions of COVID vaccines worldwide. In addition, airline companies are retrofitting their passenger planes for cargo to capture more specialized segments, especially those that require time urgency and delicate handlings, such as pharmaceuticals, PPEs, medical equipment, and perishables.

More and more companies are also turning to air charters for reliable transport of complex and time-critical deliveries. Compared to other methods of transport, air charters stand out as the most efficient end-to-end solution as they have access to more airfields and can be deployed in a matter of hours.

Emerging Opportunities

The pandemic has been broadly destructive for the aviation industry. Still, it has contributed to accelerating the global transition to e-commerce, which is set to benefit the cargo transportation industry for the foreseeable future.

While e-commerce was already on an uptrend even before the pandemic, it has risen faster than anticipated due to recent changes in consumer purchasing behaviors. According to data from IBM’s U.S. Retail Index, COVID-19 hastened the shift away from physical stores to digital shopping by, more or less, five years.

With people becoming more inclined to shop online, e-commerce volumes continue to rise amid the pandemic. Shipment-focused aviation services are currently taking advantage of this market shift.

Going Forward

The air cargo sector is demonstrating impressive flexibility and adaptability in handling the challenges and repercussions of COVID-19 in the industry. Still, from a vantage point, the future of global air freight service seems bright, and all set for growth.

The pandemic has opened new doors and opportunities for cargo. As the demand for specialized freight services and e-commerce rises, global trade will eventually regain its foothold. And the cargo industry will fly high again.

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About the Author

Melissa Hull is the Content Marketing Strategist for Aviation Charters, a West Trenton, New Jersey-based private aviation company that provides on-demand aircraft charter, aircraft management, and aircraft acquisition services. Aside from her passion for writing, she loves to travel and read espionage books.

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Archives, Global Logistics, Global Trade Daily, Warehousing

How to Know You Need to Upgrade Your Warehouse

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Whether you rent or own, warehouses come with high costs for any operation. In the U.S., pricing for physical space is at a premium and steadily rising. Add in labor, equipment, racks, and maintenance, and it can be hard to find room in a warehouse budget for upgrades. That means companies tend to put them off until sometime dire happens.

Don’t put your operations at risk by waiting once the warning signs are there. Avoid becoming a cautionary tale by staying alert for indicators such as mis-picks, tech hurdles, cluttered space, and waiting trucks. Here’s what those signs may look like for you and a few ways to respond.

Mis-picks are on the rise

Warehouses and fulfillment operations live and die by metrics. One of the most important is the mis-pick rate, especially if the warehouse lacks other verification before packing. When mis-picks increase, costs can rise exponentially. You’re potentially paying for additional shipping twice (return and replacement), losing products that expire or can’t be returned, and increased labor for returns processing.

When mis-picks increase, companies need to review processes and the warehouse itself. Suboptimal layouts and outdated technology can mean pickers are always in a hurry. SKU overcrowding makes it much easier to pick the wrong item, especially if you offer a product in multiple sizes.

Warehouse upgrades to target mis-picks include increasing your physical space, auditing options, and adjusting travel lanes, and implementing scanners to verify SKUs during the picking process.

You can’t implement the tech you need

Technology is the primary way companies respond to mis-picks because many wearable devices and even smartphones can scan barcodes and link with inventory tools. Unfortunately, warehouse designs and structural elements might limit your ability to use these solutions.

Modern warehouses need reliable, fast Internet connections and space for tech as well as inventory.  You might be due for an upgrade if connection speeds prevent real-time updates or if your network doesn’t cover the entire warehouse floor. Check if you need an electrical upgrade, too, because increased demand from servers, equipment racks, and new tools may lead to tripping or overloading a circuit.

Returns and kits don’t have their own place

As companies grow, their products tend to diversify. In the eCommerce arena, that tends to include kits and subscription options. Those options can increase recurring revenue but require increased production space to store materials and assemble boxes. Kits can be assembled before an order, speeding up fulfillment but needing dedicated shelving or storage. Scaling also goes hand-in-hand with increased returns processing.

This growth creates two demands on space that often lead companies to move to a larger warehouse or outsourcing to a 3PL that has relevant experience and available space. Shrink your inventory holding or expand your real estate to meet these needs. As you grow, there are few options. Waiting too long to increase the available physical space can quickly lead to mis-picks, lost items, damage, and products that languish on back shelves or forgotten racks.

Your dock has become a logjam

If time is money, loading dock issues could be costing you much more than you realize. Poor scheduling, slow unloading, manual inventory updates, and accidents all increase that cost. Dock issues are a clear sign that you should upgrade your space to minimize risks to your people, operations, and margins.

One of the best operational upgrades a company can make is to switch to dock scheduling software. Options generally integrate well with order management tools, making it easy to book appointments. They’ll help you plan and make the best use of your team and tools while ensuring you’re getting trailers and deliveries that work with your dock doors.

You may need to move to a large facility or significantly change your loading area layout if there’s not enough physical space to offload trucks quickly. Inbound inventory needs ample room, and tight spaces make it easy to miscount, trip, fall, or damage goods with handcarts and forklifts.

If your dock operations are leading to common accidents, it’s time for an immediate upgrade. Protect your people and give them the improvements they need to work slowly and safely. It’s the most important upgrade you can make.

Bring it back to change management

The need to upgrade a warehouse typically comes after discovering a process issue. Team leads or managers notice a problem and trace it back to fulfillment. That’s true for declining customer service, increased costs, complaints from carriers or partners, and much more. To respond, a company looks at undertaking a directed improvement with new people, processes, tech, or location. Typically, that means multiple options for how you upgrade.

The most beneficial problem resolution is one that sticks. That reality makes change management a core feature of success, though it can often be left out during decision-making. Give your team and operations their best chance at an upgrade with a positive ROI by considering teams and current practices when you weigh your options.

Letting change management guide problem resolution helps ensure your team gets an initial benefit and can maintain it. From there, you can continue to refine and maximize that gain. And, in some cases, you might realize that reliable change requires more capital than you have for the improvement. Outsourcing may then be your most effective solution and choosing a reliable 3PL means you’ve got successful change management built into the decision.

analytics
Archives, Global Trade Daily, Software

How Data Analytics Can Help in Making Better Operational Decisions

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In any business, it’s the role of an operations manager to make critical decisions that will cause ripples throughout the entire value chain. In the course of doing so, he  asks himself certain questions. What kinds of raw materials will reduce total cost? How can we schedule and manage production so as to maximise throughput? And how can we schedule maintenance so as to cause the least amount of disruptions?

In the past, such crucial decisions were made, keeping these questions in mind, based on general rules of thumb or traditional business intelligence. Today’s managers and leaders, however, have the support of technology and advanced data analytics to make well-informed decisions that optimize value on all levels.

With that said, there is still a steep learning curve for many of these operations leaders in terms of understanding how they can best apply advanced analytics in their companies. Those who don’t necessarily have a background in analytics might find it challenging having to figure out the many difficult terms alone. Such lack of awareness or experience can make it difficult for managers to identify and employ the best techniques that will work to their advantage. In short, they might lose important business opportunities simply because they cannot properly comprehend and harness the power of analytics.

To better understand what advanced analytics is about, we suggest thinking about it in terms of three aspects: analysis, modelling, and optimization.

Analysis: Looking Back on the Past

Analysis is the most basic stage of advanced analytics. It entails looking back on the past—that is, gathering data about a company’s past performance and analysing said data. During the process, a selection of key performance indicators (KPIs) are gradually identified and summarised. This stage provides unique insight into the different factors that drive value as well as suggests solutions that can increase value.

Modelling: All About Simulations and Possibilities

While analysis looks back on past events, modelling is all about predicting the future—that is, simulations of the future. In this stage, a company can predict possible scenarios for their business with the help of a model. (“Model” in this instance refers to any abstract representation of a company or organisation.) With modelling, managers can experiment with different strategies and perceive the resulting outcomes free from any risk, in what is essentially a virtual reality.

Optimization: Maximising The Value of Your Decisions

After analysis and modelling comes the final stage: optimization. This is the phase when the rewards from applying analysis and using modelling finally reach fruition. Using data gleaned from the previous two stages, managers are now better equipped to make decisions for their businesses that will optimize value creation on every level. Every business faces complex problems in its day-to-day operations, and the bigger the company, the more complicated the issues. Simply put, optimization techniques help in identifying the best possible solution for these problems.

The Future of Advanced Analytics

It remains to be seen how far analytics can go in terms of technological development. But one thing’s obvious: with analytics, managers now have the power to transform their businesses and thus change the world.