Score Card Improvement for Vendor Compliancy: Can Logistics Software Help?

There are two obstacles encountered by manufacturing companies as they aim for higher sales: improving their products, and achieving scorecard improvement for vendor compliancy. If your company does business with smaller retailers and smaller corporations, you may think that vendor compliancy isn't much of an issue. But, if you aspire to sell your goods through major retailers or to big corporations, meeting vendor compliancy could even require you to change some of your basic business practices, including how you handle your shipping process.

Scorecard Improvement for Vendor Compliancy and Shipping Logistics

The complexity of compliance standards among large businesses is reflective of the chaos that would occur were they not in place. When a business has relationships with hundreds or thousands of vendors, it needs to standardize its vending process to make the reception of and payment for products as efficient as possible. At smaller businesses, a lower volume of vending relationships means that vendor standards needn't be as stringent. For example, smaller businesses usually don't have as many rules about how goods are labeled, packaged, and delivered as large businesses do.

The biggest reason why manufacturers avoid vending with large businesses is the cost of implementing infrastructure necessary to meet complex compliance standards. But, considering the sales power of selling goods through major retailers and to large corporations, a better cost saving strategy is to look for less expensive ways to get the infrastructure you need, one of which could be the implementation of logistics software, also referred to as freight management software. Logistics software aids in the vendor compliance process in two ways: it can secure the labeling, packaging, and delivery arrangements required by tough compliance standards, and it can do so at a fraction of the cost of other shipping logistics methods.

In addition to using logistics software, companies also rely on in house logistical departments and third party logistics (3PL) to meet shipping related compliance issues, both of which are more expensive-and often less comprehensive-than freight management software. Freight management software achieves its economy by allowing companies to become their own logistic providers without hiring logistic experts, or hiring 3PL providers that essentially serve as middlemen. Freight transportation software is priced as software as a service (SAAS), making it the most affordable way to receive full-scale logistical services. One year after implementation, most companies reduce their annual shipping cost by 10 percent, savings that make additional compliance measures more affordable.

www.made-from-india.com offers solutions that help companies to improve bottom-line operational efficiency and meet new performance objectives. The exclusive database covers information about Logistic & Transport services in India, Logistic & Transportation Products in India, exporters of Logistic & Transportation Accessories, Logistic & Transportation products importer, Logistic & Transportation supplier, Logistic & Transportation manufacturers, & Wholesalers, logistics services in India, and customized global transportation.

Transportation and Logistics Software - What Are Its Advantages?

If you are a small to midsize company that tries to ship your goods without the aid of transportation logistics, you'll likely end paying significantly more for shipping than you would if your hired a third party logistics (3PL) provider or implemented online transportation and logistics software. Without the aid of freight logistics, the cost of the shipping process can prohibitive for small to midsize companies for two main reasons: they either pay full truckload FTL shipping (full truck load) rates to ship partial loads or, realizing the economic disadvantage of FTL shipping for partial loads, they use parcel shipping, which is also a disadvantage when shipping multiple parcels on a regular basis. In response to these situations, 3PL and transportation and logistics software can revolutionize a company's sipping costs by providing them with options such as LTL shipping (less than truckload), integrated transportation methods based on competitive pricing and shorter shipping routes based on route analytics.

But while 3PL and logistics software function in the same capacity, the latter has two basic advantages over the former, beginning with price differential.

Price Differential

Although 3PL and logistics software companies serve the same purpose, they are principally different in their corporate make up. Third party logistics providers are freight logistics experts that act as middlemen between manufacturers and shipping companies, while logistics-software providers are freight logistics experts that specialize in creating freight logistics software, which they offer as an online software application for an affordable monthly fee. In other words, when you opt for 3PL, you end up paying more because you pay for an expert to manage your account, whereas logistics software lets you manage your own freight logistics through an easy to use interface. Essentially, 3PL providers make their money by charging you for a logistics service that you could easily perform on your own with the aid of logistics software. It's as simple as that.

Level of Control

When you outsource a service that isn't one of your company's core competencies, you're naturally at the mercy of the company that you outsource to. This is not to say to that 3PL providers are out to profit on their clients' lack of logistics expertise in an ulterior way. But it does mean that 3PL providers are always looking for LTL shipping rates and other shipping options that offer the greatest price differential between what the options actually cost and what they charge their clients to secure those options. In some cases, the greatest price differential might result from shipping your goods with a company that doesn't have the best reputation; a situation that you could easily avoid if you opt for logistics software. In addition to allowing more control over what companies you ship with, logistics software also allows each of your company departments to participate in the shipping decision process by accessing the software online, which can prove extremely valuable from an accounting and management perspective.

www.made-from-india.com offers solutions that help companies to improve bottom-line operational efficiency and meet new performance objectives. The exclusive database covers information about Logistic & Transport services in India, Logistic & Transportation Products in India, exporters of Logistic & Transportation Accessories, Logistic & Transportation products importer, Logistic & Transportation supplier, Logistic & Transportation manufacturers, & Wholesalers, logistics services in India, and customized global transportation.

Logistic Straps Secure Cargo for Transport

A logistic strap is a must have for any person or company that ships, transports or delivers cargo, whether across town or across the globe. These devices are must-haves to ensure safety and minimize damages. They are vastly superior and easier to use than lashing cargo with ropes or chains and are much less likely to harm valuable items.

There are a few differences in design to consider when choosing the right logistic strap. One of the main differences is the mechanism for actually tightening the strap around the item that's being secured. There are two tightening systems available, the cam system and the ratchet system. The cam system operates by running the strap through the cam to tighten the strap. The clasp on the cam will grip the strap and will remain taught until released by the user.

The ratchet system comes in two separate pieces. This works by feeding the longer strap through the ratchet on the other piece. Once the two ends are connected to the anchor points, the strap is tightened using the ratchet lever. This system results in a very tight and secure lashing. The ratchet is released by simply pulling the release tab and opening the ratchet. It takes a little longer to get used to the ratchet system, but once mastered, it is quicker and more secure system than the cam design.

The other main variable in logistic strap construction is the method by which the strap connects to the anchor points on whatever the cargo is being secured to. These end fittings come in several different formats. Many end fittings are hooks such as j-hooks, flat hooks or snap hooks. The most versatile logistic strap is one with end fittings designed for use with what is referred to as airline track. These tracks allow the logistics strap to be anchored anywhere along the length of the track as opposed to a fixed anchor point.

www.made-from-india.com offers solutions that help companies to improve bottom-line operational efficiency and meet new performance objectives. The exclusive database covers information about Logistic & Transport services in India, Logistic & Transportation Products in India, exporters of Logistic & Transportation Accessories, Logistic & Transportation products importer, Logistic & Transportation supplier, Logistic & Transportation manufacturers, & Wholesalers, logistics services in India, and customized global transportation.

A Rundown On Logistics Vs Transportation

Two of the most important sectors that help move a country's economy are logistics and transportation. Both are important cogs in the wheels of economy since they help bring in and distribute goods and materials. For example, if there is shortage of wheat and rice in Malaysia or Vietnam, other South Asian nations can help in providing supplies to satisfy the need.

Logistics and transportation are two words closely related to each other. As a matter of fact, with the example given previously, both processes are done hand in hand. But the question is can one really survive without the other? Or is there no absolute difference between the two and that both logistics and transportation are referring to the same entity?

Transportation refers to the means of distributing goods, supplies, resources, information, people, and energy from the original point to the destination point using any of the five modes of transport: animal-drive, air, road, rail, and water, or a combination thereof. Since transportation is concerned only with moving the supplies, someone has to take care of handing, packaging, managing the time the goods are fetched and delivered, and maintaining coordination, especially when inter-modal or a combination of two or more transport modes is used. That's when logistics comes in.

Logistics is defined as the process of managing goods, supplies, resources, information, people, and even energy from the source to the user. Any country can testify how important logistics is for its health. Logistics is not just a company that gets your airmails delivered promptly. Logistics is found in every department of a government, from the military to health agency, from education to infrastructure agency, and of course, the time-conscious world of commerce. This application of logistics is more popularly known as business logistics.

Business logistics, unlike military logistics where the concern is focused more on speed and quantity, is more concentrated on delivering the exact item, at the ideal time and place, at an ideal price, using an efficient amount of energy, man power, and financial resource. It is the business of most couriers in the world.

While most couriers have their own vehicles, such as air planes, ocean jets, trucks, and ferries, it is not really necessary for business logisticians to have their own means of transportation. In cases like this, trucking or shipping service providers are hired to distribute the commodities.

For example, in sending goods to a country where air travel is not available, the courier gets the services of a shipping company, and additionally, a trucker to help in delivering the goods once the ship has arrived. The courier has the responsibility to choose which ship and truck provides the fastest yet efficient handling of the supplies. A courier might also need a place of storage or a warehouse company, especially when there is a need to stock the goods while waiting for the trucker. Most shipping companies, however, do have their own warehouses.

Logistics Companies

Logistics & Transportation Industry is under pressure to meet greater customer expectations, improving return on assets, minimizing costs, optimizing capacity and promoting operational excellence. The industry is at the forefront to adopt new technologies to facilitate time specific delivery and electronic tracking. In this rapidly changing environment, it is imperative to ensure that investments help to rationalize costs and provide the intelligence to optimize inter-modal flows.

Logistics companies provide logistical solutions for organizations. In the manufacturing industry, this usually includes warehousing, transportation, and distribution. Manufacturers need to concentrate on their core business and therefore outsource other functions to logistical companies. These companies work on a contractual basis and are called third party logistics provider.

Logistics companies are generally asset-based and operate a large fleet of delivery vans, trucks, ships, and cargo planes. Many third party logistics companies operate in the United States today. Their basic function is to transfer goods from point A to point B in the most efficient way. These companies specialize in providing logistical support to clients and regularly upgrade their equipment based on available technology. Some of these companies operate a large fleet of aircraft, in some cases, even more than commercial airlines. These companies also operate large automated warehouses to store goods during transportation and distribution.

There are also fourth party logistics providers who only use computer systems and intellectual capital. These companies design and implement all the logistics needed by an organization.

Logistical companies improve the operational efficiency of organizations by allowing fast movement of goods and services. Both, third and fourth party logistics providers work closely and share critical information, in order to constantly improve the existing system of logistics. Data is collected from every component in the supply chain. This data is then analyzed and changes are made, if necessary, to ensure the smooth flow of goods.

The number of companies providing logistical support has grown over the years. Due to stiff competition, companies are turning to logistics companies for help. Automated systems used in supply chain management have helped in saving time and reduces the danger of damage to goods. Today almost all organizations big or small depend on these logistics providers for their operational needs.

Integrated Logistics Solutions - Experience Makes Things Better

If the company manages the logistic services by themselves, things would be very difficult and extra expenses would occur.

Integrated logistics services include transportation, handling of over-dimensional and heavy lift cargo, equipment leasing and rental, port operations, customs clearance and international freight forwarding.

All these various services are provided by one service provider, rather than outsourcing it to different companies.

If it is outsourced to different service providers the coordination and effectiveness of the work would reduce. It will become really difficult to manage and many problems could occur. There are many logistic firms that provide integrated logistics services so that the outsourcing company is at its ease.

The common facilities that usually an integrated logistic firm provides are as follows:

• Logistics network design
• Order fulfillment and distribution
• Consolidation and deconsolidation
• Transportation outsourcing
• Reverse logistics

Basically integrated logistics service provider will help you to organize and manage every area associated to transportation of goods. Selecting the mode of transportation is always very important and essential.

The service rates normally differ on two aspects:

• The area where the goods need to be transported.
• It also depends on the weight of the consignments to be shipped.

Integrated logistics service provider would take every possible effort to deliver the consignment to the desired destination within the time promised.

An experienced service provider will have the required tools and machines to take care of your shipments, so that they are easily moved and carefully handled as this helps to avoid damage to the goods. Specialized tools are present to pack the goods effectively, workers are given material handling training to avoid mistakes and deliver the goods safely.

If goods were to be transported by the company itself surely there would occur some or the other problem because of which the goods would get stuck at the customs. Thus Logistic firm will have all the required documents ready on time to avoid the possible error or stoppage at the custom office. Thus goods get cleared easily at customs.

Therefore, Integrated Logistics Solutions provider will help to let you have everything at one roof and in much more systematic manner. So always choose to have an integrated logistic service provider for better service and better satisfaction.

www.made-from-india.com offers solutions that help companies to improve bottom-line operational efficiency and meet new performance objectives. The exclusive database covers information about Logistic & Transport services in India, Logistic & Transportation Products in India, exporters of Logistic & Transportation Accessories, Logistic & Transportation products importer, Logistic & Transportation supplier, Logistic & Transportation manufacturers, & Wholesalers, logistics services in India, and customized global transportation.

Transportation & Logistics - 10 Things Shippers Want to Look For When Selecting a Freight Carrier

The current economy has provided the Transportation Industry with an influx of new companies that are looking to try to break into Shipping Freight. These companies are smart, because they are not looking to compete with the Big Boys, like the Fedex, UPS, and Conway's of the world, but they are looking to fulfill a niche market.

They hire a cousin to be the driver, and a friend to work the books. They acquire all necessary licenses and pay the fees that need to be paid and their in business. From this point on many of them proceed to the market place to offer, not value, but cheap rates, thus dropping the Industry market value down considerably. So with this in mind, a typical shipper probably has, at the least, 15 knocks on their door from potential new shipping vendors who say they want an opportunity to bid on their Freight.

Most customers at this point take the rate sheet, or at the least, take the sales reps card to perhaps give them a quote opportunity. The issue that faces a warehouse Manager is that every sales rep that enters the door is talking about 1 thing, and one thing only- cheap rates. It's not a wonder why Warehouse Manager's are at their wits end with Sales Calls. This article consists of some general guidelines that a shipper should consider when looking to hire a freight carrier. This list is compiled from consulting with many clients in the industry, as well as several Operation Managers.

10 Areas That a Shipper Wants To Examine Prior To Hiring a Freight Company:

1) Service Commitment- Make sure to ask questions directly concerning the destinations that you ship. Often times carriers will list transit times and destinations that they might not serve directly, but may have agents working for them their. Don't get me wrong, there's nothing wrong with an Agent relationship, but this is something that you want to make sure you ask the carrier.

2) Accountability- If a carrier promises you something make sure you hold them to it...Freight is not an exact science, so many things can come into play with regards to shipping- weather, load factor, mechanical issues, the list goes on and on... Make sure carriers take ownership of their promises and guarantees.

3) Price- I list this 3rd on the list because, believe it or not, price is not as big as people want to play it out to be. You see, if your product doesn't make it's destination safely and in good transit time, it won't matter if you received a dirt cheap rate because you will have a very unhappy customer. At times customers can live with a long transit time, but those times are, few and far between, in today's market.

4) Follow Up- If the Carrier doesn't get back to you in a timely fashion, or forgets altogether, then you definitely want to reevaluate your choice of vendors. Whether it be your sales rep, or your customer service agent, poor follow up runs through the company typically.

5) Operations- Grumpy operations personnel make for poor service all around. If you ever feel as if "you are bothering your operations representatives" then you definitely need a new company. In freight you might be dealing with employees who have been in the business for over 30 years, and really don't like their jobs- they often take it out on the customer. Don't fall into this trap!

6) Technology- We are in Y2K!!! If a company is not able to provide you with online capabilities and up to date information on your shipments then this might be a sign to look for another company. Please understand, there are many shippers that prefer to have a live person than use online technology, and that's fine, but the Freight carrier needs to be able to back that up with online technology for quick reports and a more efficient Distribution system.

7) Customer Service- We've all had those bad service experiences going out to dinner with our spouse, a rude customer service operator, so I'm sure you can relate to this topic. Never settle for rudeness because of cheap rates, you'll end up regretting it in the long run-guaranteed.

8) Ease of Engagement- This speaks for itself, because it should always be easy to get a hold of your Sales Person or the Operations Team. Companies that are good in this category do things like, answer the phone within 3 rings; follow up with emails/phone calls the same day; take a proactive approach to service rather than reactive.

9) Recoverability- I coined this term a few years back. When something bad happens, the good companies get right on it and maintain solid communications with the Shipper and all necessary parties. We all know that things happen, but it's how Carriers respond and recover that make them GREAT.Often times mishaps are what help solidify a Customer-Carrier relationship- ironic.

10) Gut- More important than all of the other topics combined is to make sure you use your gut instinct. If you don't feel right about the carrier, or if you can't seem to find anything good about them other than price then you might need to take a mental note and look deep at their company because the GUT is usually right on the money.