Tag: logistics

Tenaxx Logistics Makes Third-Party Logistics Easy

Third-Party Logistics

A 3PL or Third-Party Logistics is outsourcing all or much of a company’s logistics operations to a specialized company. The term 3PL was first introduced in the early 1970s to identify intermodal marketing companies or IMC’s in transportation contracts. A 3PL allows you to focus on other parts of your business as it allows you to outsource operational logistics from warehousing. This includes transportation, warehousing, picking and packing, inventory forecasting, order fulfillment, packaging, and freight forwarding.

Why Choose 3PL?

When the company grows, the need for warehouse space increases beyond that business’s ability to manage it. 3PL warehousing is always a good option for companies facing storage capacity issues. 3PL also provides more value including challenges with customer service, order fulfillment, returns, order tracking, technical services, inventory management and much more.

Types of 3PL

Depending on the services required there are particularly three types of 3PLs:

Warehousing:

This type of 3PL store, ship and handle returns.

Transportation:

This type of 3PL are specialized in the transportation between locations, transportation 3PLs include DHL, FedEx, UPS including the USPS.

Distribution:

This type of 3PL includes shipping and receiving the goods from one point to another.

Benefits of 3PL

3PL provides a great deal of value to the companies dealing with challenges such as rapid growth and changing market conditions. 3PL has several benefits:

1. 3PLs providers have a vast network of resources across countries, which includes warehousing space, trucking, and transportation fleets. This provides cost-saving options, as the company themselves will have to give in extra effort and double or triple the money.

2. As the 3PLs have a vast network across countries, the company can also expand its market outside its country and manage internationalization.

3. Leasing warehouse space and hiring a team of workers increases the overhead, instead of working with a 3PL can minimize the costs so capital can be directed toward return generating endeavors.

4. Customers can expect to achieve faster and more reliable delivery times, tracking systems have improved and customers can thus have order status, there are reduced chances of damage or incorrect product delivery. 3PL got it covered for you, all you have to do is select one Third-party logistics for your company and they will take care of the rest.

How to choose your 3PL provider?

The right 3PL provider can make or break your company’s logistics, customer service, company’s reputation and repeat purchase rate. If you are about to select a 3PL provider for your company trust someone with sales, inventory and other information at significant risk. Choosing the right provider is a balance between quantitative and relationship building.

1. Make sure that the 3PL can handle your current volume but also the forecast stock of volume, you want to choose a 3PL that can handle your business now and when you are at your full speed.

2. Check the provider’s terms and conditions and get a report on the company’s performance over the last few years. Seek references and information about on-time deliveries and delays. Your main focus should be on how the provider deals when there are problems.

3. Make sure your 3PL provider is using the latest technology.

Tenaxx Logistics is top Logistics Company in Cambridge, Ontario

We offer full-service 3PL – we’ll manage everything so you can focus on growing your business. Find out why so many people trust us with their third party logistics needs. Call our Tenaxx Logistics expert team today on +1(437)2200463 to know more about our services.

Key Stages of Order Fulfillment Process

Order fulfillment is an important part of the supply chain process. It is the process of receiving, processing, and shipping orders to the end customers. It’s possible to handle fulfillment in-house or outsourcing it to a third party logistics company that handles the process for you.
To maintain quality control and maximize profit as much as possible, many smaller operations opt to handle their own order fulfillment process. But if you want to focus more on the main fields of activity, and work more efficiently and productively, opting third-party logistics is the best solution. The order fulfillment process varies according to the type of business, inventory management, and supplier selection and can become highly complex. Here are mentioned the key stages of the order fulfillment process:

Receiving Stage

When you receive inventory from suppliers and manufacturers at your warehouse. the next steps will be:

1. Count all the items which you have ordered.
2. Check to make sure no items have been damaged during shipment.
3. Add the record of new inventory to your warehouse management software to keep the count, sales numbers for each item and also to track the location of items.
4. Add SKUs/barcodes to every item you received if they aren’t already labeled correctly.
5. Place individual items into ready-to-deliver kit packages, if necessary.

After following all these steps carefully, the next stage is to shelve it in the warehouse. By properly storing the items in the warehouse, you can maximize the speed and accuracy of your order fulfillment process thus can increase warehouse productivity.
Store each SKU in its own box, with overflow stored in another area of the warehouse. Keep SKUs that sell most often in boxes closer to the packing stations for easier access.

Processing Phase

The order processing phase starts when an order is received from the customer. Typically, fulfillment software integrates with shopping cart software so that when someone places an order online, the order is automatically sent to your fulfillment software at your warehouse, too.
After receiving the order, items are picked by staff and taken to an order packing area. In the packing area, firstly the items are checked for quality and packaged with the best materials appropriate for the items. Packing slips and other information are added, then the box is sealed and moved to the shipping station.

Delivery Phase

Once the order is in the shipping station, it’s ready for delivery to the end customer. In the shipping station, the package is weighed and the best delivery method is selected. Once the package is ready to deliver, the shipping station will update the status of an order to make sure customers can track their orders until they are delivered. After the order has been delivered to the customer, it can be considered fulfilled.

Choose Tenaxx Logistics for Your Order Fulfillment Services?

Want to find out more about our order fulfillment services? Contact Tenaxx Logistics today by filling out our online form or call us at 519-260-2738 and let us know what your business requirement. We’ll talk to you about possible shipping requirements and give you an accurate estimate for the services you need.

Types of Pallet Racking System in Warehouse

With a well-designed pallet racking system, you can improve warehouse productivity, increase storage space by 40% or more depending on the warehouse design. Choosing the right pallet racking system can make a big difference in your business outcomes. The main step is to decide what type of pallet rack suits best for your business requirements.

Here are mentioned some common types of pallet racking systems and their applications:

Selective Pallet Rack

Selective pallet rack is the most common and flexible pallet racking system in the industry. It provides efficient use of storage space and quick access to every load stored using any type of forklift. This type of rack is available in debris-resistant, easy-to-clean structural steel (ideal for food handling operations). The selective pallet rack is used commonly in manufacturing, retail, and general warehousing.

Back Racking / Push-Back Rack

These pallet racking systems have a last-in/first-out (LIFO)) rotation and are fabricated in structural or roll form. These systems are suitable for high-density multiple product storage. Push back racking allows easy access to inventory items and also good for a specific selection of inventory items. When a pallet is loaded or placed on the structure, the next pallet is pushed backward on the rails where it rests firmly. When the pallet is unloaded, they are ‘pushed’ to the front of the structure. Therefore it is called push back rack or back rack system. It is generally used in food-oriented operations, general warehousing, and retail.

Pallet Flow Rack

Pallet flow rack, also called gravity flow racks, utilize sloping racks. In pallet flow rack, new pallets are added at the higher end and removed from the lower end, thus it is a first-in/first-out(FIFO) loading system. Pallet flow storage can double or triple storage capacity as compared to drive-in or conventional pallet rack systems and is a perfect solution for freezer warehouses, food distribution centers, and storage of high-volume, perishable consumer goods.

Double Deep Rack

Double-deep racks are made by placing one row of selective racking behind another. This is the most affordable way to create high-density storage in the warehouse. Double deep racking can increase storage for up to 40% depending on the warehouse structure. It is recommended for general warehousing and manufacturing business.

Roll Formed Cantilever Rack

Cantilever racking is ideal for storing long products such as textiles piping, tubing tires, furniture, carpet rolls, steel rods, and timber. The racking structure has long arms extended from a metal framework specifically designed to store long and heavy items. Cantilever racking allows easy access to all the inventory items as it has no front column, unlike other pallet racking systems.

Drive-In Racking

Drive-in pallet racking system follows last-in/first-out rotation. It is designed to increase the utilization of floor space within a warehouse. This type of racking system requires a small passage area for the same amount of storage thus saving storage space. It is designed in a way that allows forklifts to make their way through the aisles to continue stocking and adding more pallets. It is suitable for large-volume storage of similar products, general warehousing, freezer, and high-turnover retail products.

What are the Risks Related to Cross Docking?

What is Cross Docking?

Cross-docking is an order fulfillment strategy where products from a supplier or manufacturing unit are shipped directly to a customer or retail chain without any need for mid storage of goods in the warehouse. It is a process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock. It consists of trucks and dock doors in inbound and outbound sides with minimal storage space. The process starts when inbound products are arrived through transportation such as trucks/trailers and are assigned to receiving dock on one side of the cross dock terminal. The goods are sorted and screened to identify their end destinations and moved to the other end of cross dock terminal with the help of a forklift, pallet truck, and any other transportation medium. After completing the loading of goods at the outbound dock, the products delivered to the end customers.

Major Risks Related to Cross Docking

1. Implementing the cross-docking strategy in the warehouse required capital investment. This can translate into a warehouse redesign to save space for a conditioning area and/or the adoption or designing of a warehouse management system to assist with cross-docking tasks.
2. Cross-docking fully relies on a team to transfer items from inbound to the outbound dock, organizations need to be trustworthy of their suppliers’ ability to deliver the right products in right condition on time to the cross-docking terminal.
3. A number of Transport Carriers needed to take full benefits of the cross-docking system. A sufficient number of transport carriers will be needed for the delivery of goods. Since the operation is mainly dependant on trucking, there is an increased cost, need for parking space for trucks in the warehouse, and need for enough docks to implement the system.
4. It requires time for proper planning and execution: without coordination between supply and demand and proper planning, cross-docking is not suggested in the warehouse. Therefore, in the global computation, cross-docking should save enough time to cover its application in operational planning.

Need Help with cross docking?

If you want to know more about cross-docking and how Tenaxx Logistics can help your business contact us today!

LTL FREIGHT SHIPPING GUIDE

Less-than-Truckload

In LTL freight the volume of the shipment isn’t enough to fill the entire area of the truck or carrier. Freight between 150 lbs to 10,000 lbs is transported by LTL carriers. If your freight is above 10,000 lbs, you need to transport it by FTL carriers.
In LTL shipping, freight from multiple shippers is transported in the same freight container. Thus, LTL considered as a secure, quick and cost-saving alternative of FTL carriers.

Here we mentioned some guidelines which you should know before moving the shipment through LTL freight.

1. The first important task is to calculate the total weight of the freight and carefully examine its size and dimensions. Find out about your LTL freight class and NMFC (National Motor Freight Classification) number, which states the type of freight, is necessary to determine the shipping cost.

2. Search for a good LTL freight carrier in your town. You will get a long list of a logistics company to choose from.

3. Find the rate quote of selected logistics companies and compare the prices. Nowadays, most of the companies use standard freight rate quote application where you can submit the information about your freight and you will get an estimated price.

4. If you need any additional facility which does not cover by the standard freight shipping procedure, you are liable to pay ‘accessorial fees’ incurred by LTL carriers.

5. Prepare your freight as per the guideline of your LTL freight shipping company before the shipping date. The pick-up and delivery of the shipment should be time punctual as it is highly important in business. Thus, it is recommended to choose a logistics company with ample experience in LTL freight shipment like Tenaxx Logistics. Follow the LTL freight shipping guidelines when you are about to prepare your freight.

6. Ask the service provider company whether they provide shipment tracking service or not. Regardless if you want to ship freight across the country or outside the country, tracking service is a necessity.

Role Of RFP In A Logistics Outsourcing

The Request For Proposal

The “Request For Proposal” or “Request For Tender” in the logistics industry is designed to help shippers find the best 3PL providers to meet their needs. It is critical in the supplier selection process. A company seeking an outsourcing supplier will draft an RFP/RFT and send it to a shortlist of suppliers that appear to be suitable candidates for partnership. A logistics outsourcing RFP should be highly detailed and very concise in setting out the company’s requirements for service provision. In various ways, the logistics outsourcing RFP is the basis on which the partnership is built and its quality can make the difference between a successful or failed venture.

The “Must Have” Components of Logistics Outsourcing RFP

An RFP for logistics outsourcing services should comprise of the following components to provide suppliers with a basis for making informed service proposals.

1. A clear and concise overview of the issues driving the outsourcing decision
2. A description of the specific services needed
3. A detailed breakdown of the business requirements (this will make up the bulk of the RFP)
4. The service KPIs to be used for supplier performance monitoring
5. Specification for supplier pricing breakdown (all suppliers should provide pricing according to the prescribed specifications)
6. Specifications for the format of supplier proposals (as with the pricing breakdown, a standard format makes it easier to compare proposals)
7. Company contact details and instructions for submitting a proposal
8. Description of supplier selection criteria

Get in touch with the experts at Tenaxx Logistics today for more information and updates.

How are LTL and FTL Shipping Rates Determined?

Multiple factors are involved in deciding how LTL and FTL shipping prices are defined.

1. Distance

On the basis of pick up and destination zip codes, carriers determine the distance freight must travel. After calculating the distance, they use the freight’s weight and class—based on NMFC codes—to determine the shipment cost.

2. Freight All Kinds

Carriers will also offer a discounted rate to customers who choose to combine their freight with that of other shippers. These discounts are usually provided by means of the carrier lowering the freight class of the items being shipped, so as to lower the price.

3. Accessorial Charges and Surcharges

The main factor in determining LTL shipping rates is the presence of accessorials. The term “Accessorials” are added services that shippers may need carriers to provide at the final destination in order to ensure that the product reaches the right hands shortly. Basically, these accessorials take time and slow down the delivery of other shipments, so carriers need to adjust their pricing accordingly. Some examples of common accessorials are Inside pickup, Residential service, Inside delivery, Fuel surcharge, and Arrival notification.

4. FTL Rates

FTL rates are easy to price out since an entire truck is being dedicated to one company’s shipment. FTL shipments rate determined by the cost per mile basis or based on a single door to door rate. FTL shipments are also subject to fuel surcharges.

If you would like to get started on shipping today and get the best freight rates, get an instant rate quote at Tenaxx Logistics today.

Related: LTL FREIGHT SHIPPING GUIDE