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Curbs have great appeal

Curbs: Critically Important and Costly Real Estate

By Shipping

It has been a bit scary to watch the decline in business activity in our cities this past year, due to pandemic driven restrictions. The good news is, restrictions on business operations are being lifted, COVID 19 infection rates are declining and maybe, “normal” is just around the corner.

Unfortunately, part of that “normal” will be the return of traffic congestion and the challenge to find curb-space to legally park cars and service vehicles, as we rush to visit our favorite restaurants and shops in urban centers.

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Beyond LTL: Faster Solutions for Palletized Freight

By Shipping

We live in an era where e-commerce parcel delivery service commitments have morphed from the standard 2-day ground delivery to the option for same-day, free delivery in the largest metro markets. Some carriers and e-commerce merchants are now offering 2-hour delivery windows in the largest markets, and we are also seeing incredibly fast, 2-hours transit time commitments for both grocery and restaurant food delivery.

However, there have been limited transit time service improvements in the Less-Than-Load (LTL) transportation segment for large and bulky/palletized goods. Why might that be the case?

  • Everything About LTL is BIG and Big Takes Longer to Move: The cargo is either secured onto large pallets or is so big, it does not fit on a pallet and must be manually handled, which takes a lot of time. The tractor-trailers are long and large, so navigating city streets and customer loading areas is a challenge that also eats up time.
  • Manual Sortation/Handling Process: Unlike the fully automated parcel sortation process, the cross-dock and pallet handling process in an LTL terminal and hub is mostly manual with a single fork-lift driver handling a single pallet. The manual sortation process also takes a lot of time and negatively impacts overall transit times.
  • Hub Bypass Strategy Not Embraced: The integrated parcel carriers are using teamed tractor-trailer drivers to travel long distances and bypass regional hubs. Going through fewer regional hubs improves transit times. The LTL carriers have not embraced this line-haul, time-saving strategy as aggressively as the parcel carriers.
  • Linehaul Via Rail: While moving trailers via rail is less costly than moving the same line-haul trailer using the interstate highway network, it also takes longer. Given the current driver shortage, the LTL carriers are less likely to move line-haul operations away from rail to the highway to improve transit times.

What are faster options for shippers?

It is not likely that the LTL carriers can dramatically improve transit times. However, there are options for shippers that need faster transit time solutions for large and bulky palletized freight.

  • Truckload Service: While faster than LTL, this dedicated truck and trailer service requires numerous pallet loads to be cost-effective.
  • Straight Truck Direct to Recipient Delivery: Shippers are becoming less satisfied with LTL carrier rate increases, and limited improvement in transit times. Recognizing the demand for faster LTL transit times, independent truckers are now offering direct-to-recipient straight truck pallet delivery. This service is faster than standard carrier-based LTL service and not significantly higher in cost. Digital freight matching technology also allows for more than a single shipper per truck.
  • Hot Shot Delivery: These on-demand delivery services for palletized shipments were used heavily during the on-set of the recent pandemic, to move urgent medical supplies. While more costly than that the direct to recipient model, it is faster and usually limited to a single customer’s product.
  • Critical Freight Logistics: This service is usually a combination of highway and air freight services to provide same-day and overnight delivery of large and bulky/palletized shipments. The service is costly and usually reserved for high-value goods or “plant down” scenarios where the cost of transportation is not a factor.

LTL service limitations and the digital management of freight loads is opening the door to alternate, pallet-based shipment solutions, and these services may be more easily accessed via a 3rd party logistics provider.

Pandemic Driven Change in the Workplace: More to Come

By Shipping

COVID is driving disruption in the workplace, and parcel carriers and 3PL providers are not immune to that change. Whether driven by management, the employee, or government, the response to the pandemic has forever changed the way we live, work and play.  We are entering a period of hypersensitivity in the workplace, especially as it applies to preventing the spread of infectious disease while at work.   That hypersensitivity will continue to drive change.

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The Drone Delivery Challenge

By Shipping

It was in February of 2014 that Jeff Bezos announced on 60 minutes that Amazon was developing the technology to support a residential drone delivery solution. Fast forward to 2021, and Amazon is still testing residential delivery via drones, while UPS’s focus is on the business delivery. FedEx is also in the game, but to a lesser extent via a partnership with Wing Aviation.

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The Evolving E-Commerce Value Proposition

By Supply Chain Management

Online merchants, e-marketplaces,  parcel carriers, and technology advancements each impact the e-commerce value proposition. In simple terms, that value proposition is still based on an innovative service offering: one with multiple features and benefits that make e-commerce attractive to the consumer and drive purchasing behavior. Some of the primary components of that value proposition include:

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Micro Fulfillment: The Move to Same-Day and Next-Day Delivery

By Supply Chain Management

Amazon continues to drive change in the e-commerce arena, aggressively growing their next-day, Prime delivery initiative. Today, it is nearly impossible for most e-commerce merchants to offer the combination of free-shipping and next-day delivery to most of the continental US, without compromising profit using costly Express delivery services. However, by 2022, Amazon is on track to support affordable next-day delivery to most US addresses and, today, offers the largest on-demand, same-day delivery network, Amazon Flex, in North America.

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Questions to Ask Before Entering a Shipping and Fulfillment Partnership

By Shipping

Starting your own eCommerce venture is a labor of love. Beginning with conceptualizing and designing products to building a marketing strategy, and finally packing and shipping your products to customers – each step gets you closer to running a successful eCommerce enterprise. As your business expands, there will be lots to do, leaving you with little time to devote to the eCommerce fulfillment process. This is where a fulfillment partner can ease your burden, ensuring you stay on top of the packaging, shipping and delivery service. If you are considering outsourcing the order fulfillment process to a vendor, here are the top questions to ask a shipping company. Also, take a look at what you need to determine yourself before selecting an order fulfillment service provider.

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Understanding the Market Conditions Behind Inventory Shortages

By Supply Chain Management

Understanding the current market conditions sets your business up for growth. When market conditions surge in either direction, companies need to make sure they can keep up with trends and remain solvent in an evolving market. Inventory management remains crucial for both traditional and eCommerce businesses amid fluctuations in the economy and supply chains. A careful analysis of supply chain availability helps businesses predict and prevent inventory shortages during periods when supply does not meet the demands of consumers.

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Fulfillment Center Costs: What Retail Startups Need to Know

By Shipping

If you are an e-commerce retailer, at some point you may consider enlisting the services of a fulfillment center. Partnering with a fulfillment center has many benefits, but there are a few drawbacks as well. Here we’ll focus on what factors into fulfillment center costs, specifically those that may be prohibitive for a small business looking to expand its e-commerce presence.

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