Logistics Services for Your Business Growth

Feel the Power OF Logistics

Logistics management is crucial to any company because it plans, implements, and controls the flow and storage of products and services to satisfy the necessities of the provider. Suitable logistics management is the primary factor in achieving a company’s success, and it has a direct impact on the bottom line. It compels revenue and enhances customer satisfaction.

Though many companies understand the value of hiring logistics transportation solutions, what confuses them knows the right time to employ them. According to experts, the best time to hire them is to know you’re investing too much time, energy and money on doing the job yourself. They’ll help you save time and energy, which it is possible to invest in your core business. Selecting the right logistics transport services can be a difficult experience for you. Don’t shortcut the selection process, as it might lead to many hassles and a lack of money. Research and consider the following ideas to make the ideal choice.

Outsourcing is the process of using an outside provider who manages the selected functions based upon defined performance metrics. A couple of decades ago, companies manufactured stored and delivered products through their direction. However, in the current global marketplace, outsourcing has become more popular daily. It is a major factor in organizational change.

Assess their capability

Verify the capabilities of the company which you are going to hire for your logistics needs. They need to be well acquainted with the locations that satisfy your business’s needs. They ought to have a set of abilities that can meet your requirements and goals.

Assess their customer support

Even though it may be too early to inspect the customer support and responsiveness of the service supplier, you need to discover if they excel in these areas or not. You’ll discover that almost all companies claim to provide exceptional customer service, but you want to learn more about them. You can ask their customers, request references and get in contact with companies similar to yours who hired the services to know whether they were happy with the services or not.

Experience and stability

While hiring a service provider for your logistics needs, you should learn whether they’re experienced in their industry or not. A firm with enormous knowledge and expertise in the business will serve your needs nicely. Furthermore, they can supply you with many other facility management services, such as partition installation services.

The international logistics industry is a fairly narrow sector. But on the flip side, in addition, it covers almost every area like finance, economics and governance. From the industrial business of international courier companies, they handle shipping, warehousing, quick deliveries and other distributions to the final user.

Best shipping services around the world

Shipping is turned into one of the widest international businesses in the world. Nowadays people cannot think about exports and imports without shipping services. It is playing a huge role in every warehouse-based industry and also for the people who are in the need of shipping and transporting.

Individuals now prefer to move their cargo nationally and also internationally via shipping. When it comes to national-level cargo shipping, then individuals do it by the way of using the trucks based on the heavy loads. When the individuals decided to send it internationally, then it will most probably send it through the ocean. You can understand this sort of shipping as ocean freight shipping.

Freight shipping is one of the transportation assistance and plays an essential role in the day-to-day economical cost price print. Everyone knows that our planet is mostly covered by waterways and oceans. So still from the olden ages to now, the freight transportation is most probably followed by the people.

Ninety percent of the cargo is now shipping over the world with the help of international transportation shipping enterprises. Apart from the ocean ways shipping, now we are having the alternative options too such as through airways, roadways plus by rail transportation shipping. In this forthcoming article, we are going to read about what are the beneficial things that individuals can have in the shipping service.

Is the service is cost-effective and economical?

The ocean shipping organization provides the most convenient and competitive offers to their shippers, especially the best offers are giving to long-distance shipping clients. The fright cost for the shippers is also reasonable and acceptable. Due to both the shipping businesspeople and service, people can have their benefits at a similar time.

As we compare them to airway shipping services, the freight shipping cost is four to seven times less. That’s why most people go for the oceanic way. It is currently one of the cheapest and economical international transportation methods for sending goods to other countries. When it comes to the discussion of efficiency, freight shipping can transport any type of heavy load cargo in stipulated time manner

The freight international shipping will accommodate all your requirements; from smaller shipment to huge load cargo shipping the allow their clients to share the cost of the transportation assistance. If it is the large one, it will hold in one container or more than that. It will carry any amount of goods or raw materials all over the world.

Are the shipping containers safe?

The ships are specially designed to transport heavy, dangerous, and hazardous cargo safely. The shipping organizations are well trained in the handling and maintenance of every product they are transporting. The container is made and designed to be locked and sealed while for the complete transportation process. This process is done for the extraordinary security of goods and raw materials.

Bottom line:

The rates of the shipping are cost-effective, so one requires no bothering about the costs plus the client can able to track their goods using the online tracking option. Due to that the client will feel comfortable and ensure about their materials. The shipping industries are prepared properly for the shipping and as per the plan and they are accurate in delivering the goods.

Use of Safety protocols and prevention of accidents.

Safety protocols are very important for any transportation company. For any shipping company or a trucking company, safety measures cannot be compromised in any case. No transportation company can survive long without taking good safety protocols as even one miss happening may lead to bankruptcy of the entire organization. Discussing safety, the most important safety work for Transportation Company is to install premium quality vehicle restraints at every loading dock.

Let us understand more about various crucial safety equipment’s and their importance in your company.

Vehicle Restraints and their working:

A vehicle restraint is a device made to hold the truck or any other heavy transport to stay and place at their parking place. Due to heavyweight, it becomes difficult to control the truck if it starts moving from the parking place. There are two models of vehicle restraints. They have the same motive, but both of them have different working methodologies. Let us have a look at the working of these two vehicle restraints.

SHADOW HOOK DOK-LOK: It is a locking system that works on the principle of alleviating the intermodal compatibly issues which set them apart. This important feature helps to prevent any type of trailer separation accidents and it is compatible with all kinds of trailers.

WHEEL-LOK: These are compatible with all kinds of trailers and are said to be the most reliable among all. The wheel guides into the proper position of the trailer which in turn protects the equipment and secures the dock. One thing you need to take care of is that the right model should be installed for the right type of purpose.

Uses of Vehicle Restraints:

Prevents Landing Gear failure: When the truck is joined with the trailer, it remains stable. But it is not possible to keep the trailer attached to the truck all the time. Therefore the trailers are parked separately and the support is provided by the landing gear. In any case the landing gear collapse or fails, it will lead to major accident and may cause serious injuries to the people and also it will damage the equipment. Thus, the vehicle restrainers keep the trailer in place even if the landing gear gets collapsed.

Trailer creeps issue: Wheels can create a dangerous situation at the dock in certain situations. While lifting the cargo, the trucks and slowly move away from the dock which made lead to a serious tragedy. A few years back, the wheel chock system was used to prevent trailer creep issues, but they were in no way as reliable as the restraint system.

Safety and efficiency: The purpose of this write-up is to make you aware that it is important to give priority to safety in every business line. Transportation Company survives only if the customers know that their goods will reach safely. Tenaxtransport comes with impeccable safety measures throughout the delivery, which makes it one of the premier transportation companies across the country. Get your quote today for experiencing the fastest delivery system with uncompromised safety features.

Difference Between Fulfillment Center and Warehouse?

Warehouse and fulfillment center (also referred to as a distribution center or third party logistics) are some common terms that are used interchangeably when it involves a discusson regarding logistics and supply chain management, but depending on the other factors each term carries a different meaning. At their most basic tier, both are large spaces or buildings that can hold inventory for all types of businesses that sell physical products whether through an online store such as Shopify, Amazon, Flipkart, or a food retailer. Despite the similarity, the use of each space and the services provided, and the way they carry operations can be quite different. This blog will explain the functioning and purposes of a warehouse and a fulfillment center, helping you better understand which option might be suited best for your business needs.

A warehouse provides a cost-effective storage solution for keeping inventory

The term warehouse refers to the place where a company stores products for sellers for a long or short term basis depeding on the business need. It is a large space that houses an inventory to be sold. It can contain large containers, shelves, racks, storage bins, and pallets filled with number of different products each identified by their own unique SKU (or stock keeping unit), as well as equipment like forklifts that are used to move the inventory in and around the warehouse.

The type of businesses that work with warehouse providers primarily does wholesale or B2B (business-to-business) orders in large volume. Some large e-commerce companies own and manage their own warehouse(s) to store their excess inventory until it is ready to be shipped to the customer, while others company rent out the warehouse space depending on their storage needs.

Depending on location, taking warehouse space on a rent basis is usually a more cost-effective solution for small to mid-sized sellers for eCommerce order fulfillment although that can depend on the available space and rent terms.

Small companies or those just starting up might decide to rent a space that is smaller and affordable, such as local storage units if they don’t have the sufficient space and fulfillment facility space to maintain their inventory. This can help keep the everyday selling products close by their own location in a more cost-effective space.

What is a fulfillment center?

A fulfillment center is a service providing space that a seller or a company hires to outsource their order fulfillment. A third-party logistics (3PL) provider, fulfills customer orders placed through any eCommerce store (also known as direct-to-consumer) and/or business-to-retail fulfillment where the seller fulfills wholesale orders to big-box retailers. It is often larger in size and also has various departments than a typical warehouse that an individual company might own or rent. The primary function of a fulfillment center is to manage the seller’s inventory, store the inventory, ship orders directly to customers and/or wholesale orders to retailers, and assist sellers in managing the entire eCommerce store, yet often difficult fulfillment operation.

Facility Operations

A warehouse tends to be inactive because it’s used simply for storing inventory. An order fulfillment center is quite the opposite, bustling with active all the time. A 3PL provides end-to-end order fulfillment solutions  and at its fulfillment center including:

  • Receiving inventory from seller
  • Picking
  • Kitting items if necessary
  • Packing orders
  • Preparing shipping labels
  • Shipping orders
  • Managing returns

Operationally in a warehouse, the only activity occurs is when any inventory is added or sent out.  There are rarely any additional services offered by a warehouse.

Large Network of Shipping Companies

A 3PL often has partnered with multiple shipping companies. Since a fulfillment center operates to provide B2B and B2C orders as soon as they are placed, they need multiple companies to pick up shipments at a minimum once a day, sometimes more as needed. This helps to ensure that orders will be delivered in the time frame guaranteed to the customer.

Usually a fulfillment company will have a cutoff time for orders to be placed to the delivery speed chosen by the customer. For example, an order might need to be placed my noon in order to guarantee next-day delivery.

A warehouse, on the other hand, will usually have less frequent pickups scheduled, since it is cost-effective to send out all items at the same time, regardless of the speed requested by the customer.

The freight companies that warehouses use often insist on a certain time to pick up the orders, which can cause a delay in the delivery time and allow for less flexibility in shipping costs for the seller.

What are Amazon Fulfillment Centers?

FBA is Fulfillment By Amazon, it is a service where Amazon team manages your inventory at their fulfillment centers and will pick, pack, and ship orders to your customers on your behalf. The amazon charges the storage and fulfillment fees from a seller.

Pros of using Amazon FBA Service

By using FBA, sellers leverage Amazon’s world class operation and large fulfillment center network. The seller doesn’t have to worry about managing their own warehouse and fulfilling their own orders, allowing them to focus on running other facets of their business.

FBA gives sellers the option to offer free, one or two-day shipping to Prime Members. This is a huge draw to sellers as it gives them the best chance of winning the buy box with prime members.

Cons of using Amazon FBA Service

While having massive scale and operational expertise is one of Amazon’s biggest advantages, it can also be one of their biggest weaknesses in terms of flexibility and cost for sellers.

According to Amazon, the company now operates 75 fulfillment centers and employs 125,000 full-time employees in the US. They are spending billions of dollars a year to run these fulfillment centers and these costs are passed down to the sellers. Amazon’s ever-changing fulfillment and storage fees for FBA sellers is well documented and can be pain point for sellers as these costs eat into their profits.

Like most businesses these days, sellers have to be nimble in order to keep up with customer demands and industry trends. Once your product is shipped to Amazon to be stored and fulfilled, your flexibility becomes a lot more limited. Sellers’ products are tied up at Amazon centers making it challenging to sell via other channels. In addition, sellers can no longer make changes to the packaging, add new inserts, or do any other custom kitting. This can be a deal breaker for a lot of sellers, especially high growth brands.

Bottom Line

While the terms warehouse and fulfillment center are frequently used interchangeably, the need for a simple warehouse space is much different than being able to utilize complete fulfillment services via a fulfillment center.

What works best for any individual seller comes down to the type of service they need. A warehousing service that only stores inventory could prove valuable if longer terms storage is needed, or the company is still operating some of the fulfillment in-house. Alternatively, if a seller is needing a fast turnaround for large orders, working with a  3PL to handle the fulfillment, customer service, shipping, and end-to-end logistics, is probably the best option to help grow that seller’s business. A trusted fulfillment partner can help with all of these issues.

There are many benefits to working with a third-party logistics (3PL), if you are seeking eCommerce fulfillment services we’d love to hear from you. Contact us to connect about how we can help your company grow.

6 Ways to Save Cost On Shipping and Fulfillment

One of the challenging areas for small to medium size e-commerce businesses is to streamline the shipping and fulfillment process. From packing an order safely to shipping it on time can be complicated and costly. If not done right, you can seriously end up hurting your company’s reputation and growth. However, with proper management and planning in place, you’ll be able to crack the opportunities that can turn a one-time buyer into a loyal customer.

How to save Shipping and Fulfillment Cost?

Here are 6 tips that have been tried and tested, and have saved me a lot of time and money in shipping and fulfillment. So, let’s get started!

1. Buy packaging material in bulk

You can save a great amount on the packaging material if you choose to buy it in bulk. Don’t just focus on the packaging material. Consider the protective layers that you might be used for packing. Stamps, envelopes, and everything else that is required for packaging can be purchased in bulk and stored at your facility to use for the long term.

2. Consolidate your LTL shipments

If you’re sending small freight that doesn’t take up the entire space inside a truck (i.e. less than a truckload or LTL), you might want to consider a freight consolidation service. This way, your shipment gets shipped along with others to make a full truckload. Since you are sharing the space, you share the cost too. This is another great way to cut costs, especially when your shipment budget is low and shipping time is flexible.

3. Mark the package dimensions

Have you invested in a parcel scale? If not, then it’s high time you do. Weighing your product and packing materials beforehand will help you get an estimate on the shipment charges. Therefore choose the right packing material, ideally something lighter but sturdy enough to protect your goods while in transit.

4. Look for packaging alternatives to save cost

When it comes to packing materials, bubble wrap and foam peanuts are everyone’s first choice. But there are tons of packing materials that provide the same support and also affordable. For example, recycled old newspapers, magazines, wood chip material can work the same, but can save you a lot every month depending upon the size of the shipment.

5. Consider freight services for bulk orders

Freight services are a great choice if you are fulfilling an order in bulk. However, if you’re considering using a freight service, you need to first ensure that your customer won’t be deterred by their shipments arriving on different dates.

6. Have a Reverse Shipping charge policy in place

Make sure you have a reverse shipping charge policy in place. Once you have it, ensure you clearly stated it to your customers as well as your sales and customer service guys who deal directly with customers. The policy should clearly mention that under what circumstances the company will pay for the transit charges (like a standard shipment) and when a customer needs to bear the cost.

7. Outsourcing to a 3PL Company

Outsourcing your order fulfillment to a 3PL company is not only a cost-effective solution, but it also enables you to shoulder off other responsibilities like warehouse and inventory management, labor costs, supply chain management, and claims.

Order Fulfillment Service in Canada

If you run an e-commerce business and looking for an e-commerce order fulfillment solution, check out Tenaxx Logistics. We are a third-party logistics provider (3PL) that offers complete fulfillment services from picking to packing to shipping. Contact us for a free logistics consultation.

Switch to 3PL Provider to Simplify your Logistics

It’s necessary to find a 3PL partner you can trust so that you can let them handle everything from picking, packing to shipping while you focus on growing and running the business.

Are you tired of the never-ending complexities associated with your 3PL? You’re not alone. Logistics can be a challenging task for business owners just like you who are trying to store and ship their products to retailers and consumers. This dilemma is especially true when you need to focus your time and money on running and improving your business. 

Logistics are getting even more complicated today with increasing consumer demand for diverse product offerings. It’s necessary to find a 3PL partner you can trust so that you can let them handle everything from picking, packing to shipping while you focus on growing and running the business. By choosing the right 3PL or third-party logistics company, you’ll be amazed at how easy logistics can be!

The key secret to simplifying your 3PL solution

When you choose to work with a dedicated and highly experienced team of 3PL specialists, it becomes their job to set your mind at ease. So how do you find a provider you can trust to simplify your logistics operations? Look at their track record for timely, accurate, and compliant delivery. Once assured of their general competence, they should invest time in learning about your product range and customers to make a customized 3PL solution for you.

Services 3PL Warehousing Companies Provide

3PL partner should take the complexity out of executing your logistics projects by streamlining the process for you and ensuring your work is completed on time. This strategy should include finding both creative and cost-effective solutions for all the various complex steps from start to finish including coordination of:

  • The right means of transport (air, sea, road, or rail) and transport from multiple points of manufacture, with expedited services if necessary
  • Special transport permits for heavy or oversized loads
  • The tactical loading and unloading of items 
  • Short or long term warehousing/storage facilities
  • Inspections
  • Security Measures to protect your freight, in the warehouse and while in transit
  • Ongoing inventory management to avoid “Out Of Stock” situation
  • Special care for perishable or fragile items
  • Packaging tailored to your product
  • Managing returns (reverse logistics)

Tenaxx Logistics- 3PL Provider in Canada

Partner with a trustworthy and dedicated 3PL provider like Tenaxx Logistics to simplify your logistics supply chain. Tenaxx has the track record and expertise to develop a winning 3PL strategy for you. Talk to Tenaxx Logistics and let our professional team build a partnership with you. We can make all your logistics-related worries fade into the background. 

8 questions to ask your food distribution warehouse providers

Temperature and climate control function plays an important role in food logistics operations. Potentially confusing matters, however, is that many terms related to temperature and climate are used interchangeably. So, to make sure you’re speaking the same language as your prospective 3PLs, let’s first define some of the terms of the key logistics involved.

For instance, the term “temperature-controlled” is often used as a general term but it can also describe very specific temperature ranges at which products must be kept. A warehouse that has temperature-controlled space utilizes cooling (and/or heating) units to keep the temperature within a defined range. These units are strategically placed throughout the space to ensure that the area stays in range.

The most common warehouse temperature ranges are:

Ambient. Refers to the natural temperature of the warehouse.

Air-conditioned.  Refers to a temperature between 56°F and 75°F. Confectionery products are a good example of a product that must avoid hot and cold extremes.

Refrigerated. Typically refers to a temperature between 33°F and 55°F.

Cold/Frozen. Typically refers to a temperature at or below 32°F.

Ask the following questions from your 3PL provider to decide whether a company is capable of handling your food warehousing operations.

Can you store various temperature ranges? 

Whether your products require ambient, refrigerated, or frozen space, there are warehousing providers that can cater to your specific temperature range requirements. There are also providers that can handle all your temperature ranges within the same facility. This is achieved through physical segregation measures at the facility as well as technology (e.g., warehouse management system – WMS) to support and maintain that segregation. By partnering with a 3PL that can handle all your ranges, you can eliminate the time and costs associated with outsourcing to multiple providers.

What temperature monitoring systems do you have in place? 

While it’s vital that your products are stored in accordance with their temperature requirements, it’s even more important that those temperatures stay in the range 100% of the time. To accomplish this, your 3PL will have a robust internal monitoring system to track temperatures 24*7. Many 3PLs will have an external monitoring service that monitors temperatures in conjunction with its own.

What happens if temperatures go out of range? 

In the event that monitoring shows an area to be out of range, you’ll need to know that your 3PL is on the case immediately – even if it’s outside of business hours.

Do you control and monitor humidity in addition to temperature?

When it comes to the integrity of food products, humidity can be every bit as important as temperature. If it’s important to your products, you will want to partner with a provider that offers climate-controlled warehousing and not just temperature-controlled warehousing.

Click Here- What is Cold Chain Logistics in Supply Chain?

Can your WMS handle ______?

Your provider will manage your warehousing operation with its warehouse management system (WMS). A WMS is the digital cornerstone of the modern warehouse, performing functions such as inventory management and pick and pack/eCommerce functions.

How do you ensure compliance with the FSMA, GMP, and other regulations? 

Whether it’s a requirement related to the Food Safety and Modernization Act (FSMA), Good Manufacturing Practices (GMP), or your own company requirements, you need to make sure that your 3PL provider’s practices will be in full compliance.

Can we audit your facility/operation?

As impressive as your prospective 3PL’s audit history may be, you still may want your own internal team to conduct a thorough audit of the 3PL’s operation to make sure that it can comply with your own internal standards. A good 3PL will welcome such an audit and accommodate you every step of the way.

Do you offer other temperature-controlled logistics services?

In addition to temperature-controlled warehousing, many 3PLs can handle additional components of your supply chain (e.g., transportation) while keeping your products’ temperatures in range.

Moving forward with a food distribution warehouse provider

All of the questions and factors examined in this article can guide your vetting process and help identify the 3PL that can truly be a partner to your food logistics operation.

Lean on 3PL Cross Dock Freight Shipping

Peak shipping season is now upon us and, as a shipper, your goods need to deliver quickly to your retail store. As we all know, however, “quickly” isn’t always possible in 2020. Truck capacity is tight due to COVID-19 and other factors, making it an especially challenging year to fulfill your retailer requirements. Thankfully, third-party logistics (3PL) companies that offer cross-dock freight solutions can help you keep your product moving throughout peak season and beyond. In this article, we’ll look at some of the major benefits of 3PL cross docking.

3PL cross dock freight solutions

With traditional retail system, your trucks pick up the product from a warehouse and transport the product to a retailer store at a designated appointment time. Sounds quite simple. But what if your driver is ready to make the delivery earlier – like days earlier than the appointment? From your perspective, and the drivers, it would be ideal to make the delivery early and then get to the next loads on the docket. From the retailer’s perspective, however, that’s not going to happen. The appointment is set, and your delivery is limited to that precise window.

This is where cross docking comes into picture. With 3PL cross dock freight solutions, your driver can unload your product with a 3PL located near your destination. The 3PL stores your product for a temporary period of time and then make the final delivery to the retailer on your behalf. This frees up your driver to get to additional loads instead of tying up his or her time and equipment.

Cross docking is common all year round but is especially useful in the peak season  where shippers have lots of product heading to retailers and they can’t afford to have trucks sitting idle.

Some Other benefits of cross dock freight solutions

In addition to the above mentioned benefit, the following are additional benefits of cross docking services.

Cross docking helps with late appointments. Cross docking can also pay dividends when a driver is late to an appointment. When that happens, the appointment will likely need to be rescheduled – often several days after the original one. Instead of tying up the driver and truck while waiting for that new appointment time, the driver can offload the product at a 3PL warehouse and come back for it later or let the 3PL handle the final delivery.

Cross docking helps when problems arise. If items are loaded onto a trailer in such a way that the driver can’t reach the product he or she needs (e.g., items at the front of the trailer need to be unloaded first), the driver can turn to a 3PL to unload, organize, reload, and/or palletize product. Or, if the delivery isn’t up to retailer’s standards (e.g., product is leaning in the trailer or not settled properly), the driver can take the trailer to a 3PL for rework services and final delivery.

Cross docking helps to avoid demurrage for imports. 3PL cross dock freight solutions can help importers avoid demurrage penalties if the container is not returned to the port on time. With cross docking, your drayage carrier can bring the container to a 3PL facility for unloading and temporary storage and then quickly return the container to the port. You can then work out the final delivery details of the product without worrying about demurrage charges.

Lean on Tenaxx Logistics for cross-dock freight solutions

Cross docking has long been a key logistics service offering of ours, and we have space and the expertise to make it happen for your company.  To learn more about our cross dock services, contact us today.

Ways to Reduce Inventory Write-Offs

An inventory write-off is a formal recognition that a portion of a company’s inventory no longer has value. Sometimes inventory write-offs are necessary. However, if the inventory write-offs are large and frequent, it may indicate that a company has poor inventory management. So, how do you reduce inventory write-offs? Let’s look at some important tips on how to prevent and reduce inventory write-offs with a proper inventory management system in place.

Avoid Excess Purchasing

It’s easy to get excited and manufacture a large number of products to sell, but if you don’t carefully measure your expectations, you could end up with dead stock that isn’t selling or that you need to sell at a discount just to get your customers interested. Every business must know how much inventory is required for each ordering season and ensure that they do not carry too little or too much stock. When inventory sits in your warehouse it ties up funds and raises your storage costs. This can inevitably lead to write-offs if you cannot move that inventory soon enough. Monitoring your inventory records accurately through software can help you avoid this mistake. You can look at the history of your orders to make informed purchasing decisions.

Create an Inventory Reserve

A helpful way for you to avoid inventory losses is to create an inventory reserve. It may not prevent your inventory items from losing their value but understanding historical selling data and current market conditions can help you make predictions about your inventory. This reserve will be accounted for as an expense on your income statement.

Utilize Write-Downs as Needed

The reason why companies in your industry are successful is that they have efficient inventory management. Implementing an inventory management system (IMS) can help you identify the root cause of slow-moving inventory and find ways to reduce excess and obsolete stock. Inventory management also helps you sell off excess and obsolete stock more effectively through the process of write-downs. By reducing the price of an item, you can still make a profit. But failing to find a way to utilize obsolete stock will lead to a write-off where the product is considered a loss to your company.

Revise the Order Cycle Regularly

Another option to prevent inventory write-offs is to simply order in smaller batches and cycles. Smaller and more frequent order quantities mean you store less inventory in your warehouse. As long as you have sufficient inventory to meet customer demand and prepare for peak seasons, you will be on the right track. However, before you can do this you must understand what your order frequency history is. You also need to consider if there will be any loss of transportation efficiencies if you reduce your batches, and how it will impact the labor workload at distribution centers. Once you determine your order frequency, these answers will present themselves, but you must have a thorough understanding of your supply chain costs and capabilities before switching to this strategy.

Some options for implementing this strategy include the following:

  • Reducing setup time and costs
  • Re-evaluating cost of holding inventory
  • Understanding warehouse storage procedures
  • Understanding cost trade-offs of labor, transportation, and inventory

Eliminate Obsolete Stock

Do you have stock sitting at the back of your warehouse taking up space in your facility? Is it being kept there because no customers want to purchase it or because your employees are uninterested in organizing it? If the stock has been taking up space in your warehouse for a long period of time you need to find a way to rid your warehouse of it. Finding a way to deal with these items will result in good long-term financial results. Some options include selling the items at a significant discount to your customers, offering it as an add-on when a customer purchases another product of yours, or taking the items back to your manufacturer for recycling or reworking the raw materials.

Choose Tenax for Inventory Management

Getting a better understanding of your products and how they move throughout the supply chain is vital to effectively running a retail company. Each item needs to be tracked and measured to see how customers respond to it and how high or low demand is. When items you hold lose their value, the write-offs will be deducted from your reserve, but you don’t want this to become a habit. With the help of a third-party logistics provider, you can have the professionals handle the time-consuming process of inventory management, so you can focus on building and fortifying relationships with your customers.

Real-time inventory management can help you keep better track of your orders, sales, and locations of your products at each of your warehouses. If you want to implement robust inventory management software, our 3PL company can help you. Tenaxx Logistics offers services such as real-time inventory management, e-commerce fulfillment, fulfillment solutions, and fulfillment markets. You can contact us by e-mail at info@tenaxtransport.com or by phone at 519-260-2738.

Reasons Why You Should Outsource E-fulfillment

There are many reasons why a company should outsource its e-fulfillment. While some reasons are obvious and easy to understand, such as many companies do not pay any attention to the benefits of outsourcing its fulfillment services, some are comparatively not so obvious reasons and are hard to understand.

Why You Should Outsource E-fulfillment

The process of receiving orders from your web store, and shipping them to customers around the world is termed as E-fulfillment, and these are the obvious reasons you should outsource E-fulfillment.

Lack of capital:

Many Startups and established companies do not have the capital to rent a warehouse, hire employees, lease a forklift, pay for insurance, and any other charges. In such cases using Third Party Logistics companies to handle the fulfillment services is the only way to go.

Faster Turn-Around time:

When you are selling products online, in order to succeed in the e-Commerce business you need to ship fast. Customers these days don’t want to wait for an additional day or two to receive their products. Most “fulfillment centers” have enough staff to ensure that the orders leave as quickly as possible, something you might not be able to do if you have limited resources.

Focusing on your own business:

A company needs to focus on its core abilities whether it’s selling or developing new products. That is why several companies outsource their order fulfillment services. It is just wiser to worry about sales than receiving, warehousing, shipping, and inventory shortages.


Companies that are selling online can choose the Third Party Logistics Company and the location to ship from. They can also have multiple locations to ship from without the haste of renting the space at any of these locations.

Not so obvious reasons why you should outsource E- Fulfillment.
While obvious reasons are easy to understand and can be seen easily, there are some reasons which shouldn’t be overlooked.

Lower shipping rates:

3PL companies usually have higher benefits as they have high shipping volumes which qualifies them for larger discounts and much lower rates than if you try or ship on your own. This applies to all forms of shipping such as Inland Transportation, or even Ocean freight.


While the company must focus on newcomers, they should also have people who are working in the fulfillment centers for many years, it can be really helpful and you cannot put a price on experience.


Through working with the fulfillment company you get to meet potential clients.

Global reach:

If you are planning on exporting your products, you should go for 3PL’s as many of these companies are freight forwarders.

Value-added services:

Fulfillment centers can help with branding and marketing in addition to other services such as collections and receivables management.
According to a study by the Harvard Business School, it is better and efficient to use a fulfillment company instead of doing the fulfillment yourself.

How Tenaxx Logistics Can Help?

If your company is seeking a partner for third party warehousing and e-commerce fulfillment services, Tenaxx Logistics is the right place for you. With over 1 million square feet of warehouse space, effective costs, flexible agreement, and modern tools and software, it’s the ideal warehousing partner for the company of all sizes.