by Hanson Logistics Hanson Logistics

5 Reasons to Bundle Transportation and Warehousing with One Provider

5 Reasons to Bundle Transportation and Warehousing with One Provider

Siloed logistics approaches don’t work in today’s cold chain shipping environment. Here’s how to centralize those functions and get back to doing what you do best.

With organizational silos rapidly giving way to more open and collaborative business styles, being able to “flatten out” the logistics function and bundle multiple services with a single provider is becoming more and more important.

“For both small and large transit companies, maintaining multiple locations or expanding into new markets involves lots of variables,” FleetOwner reports. “Exploring costs and service-bundling options could mean greater efficiencies and money saved—and a better chance of success.”

Here’s how cold chain shippers can benefit from bundling:

  1. Focus on your core competencies. No more running around, trying to oversee and micromanage multiple providers and getting them to “talk” to one another. When it’s all under one roof, your central transportation, warehousing, and logistics provider will handle it all for you and allow you to focus on what you do best: supply customers with refrigerated and frozen goods.
  2. Use your provider’s infrastructure to save time and money. Delegating multiple company functions—such as warehousing and distributing—to a single service provider can result in significant time and cost savings. “Bundling these services together with one provider serves to reduce the resources required for oversight as well as provides for economies of scale,” FleetOwner notes, “as a transportation and distribution provider can often utilize their infrastructure and purchasing power to reduce distribution and fleet cost.”
  3. Have a single point of contact. Bundling logistics services with a single provider means you need only make one phone call, send one email, or schedule one meeting to get everything you need. Because this provider will serve as your focal point, you’ll avoid the wasted time, effort, and cost associated with tracking down multiple providers to get your questions answered or problems solved.
  4. Get consistent results. If you’ve historically used multiple providers for your cold chain transportation and warehousing needs, then you probably understand pains like inconsistent service levels, fluctuating rates, and unpredictable outcomes. By bundling these services with a single provider, you can avoid these uncertainties and focus on getting consistent results from one business partner.
  5. Create a win-win partnership. When companies skip around from supplier to supplier, they never really get the chance to create true, lasting partnerships with those providers. By putting the time and effort into working with one logistics provider, companies can create win-win collaborations that can help them shepherd their cold chains through even the toughest logistics environments (i.e., the current driver shortage and capacity crunches).

Demand for next-day delivery, the driver shortage, and rising transportation rates are all pushing cold chain distributors to find ways to work smarter, better, and faster in today’s transportation environment. In their quest to manage more volume and deal with more complex customer demands than they’ve ever faced in the past, more shippers are bundling fulfillment, warehousing, and shipping with single providers that can meet all of their current needs while also helping them prepare for the future.

To improve your cold chain shipping efficiency, contact us today to learn how Hanson can help.

by Hanson Logistics Hanson Logistics

Maximizing Quality in the Global Cold Supply Chain

Maximizing Quality in the Global Cold Supply Chain

Moving a shipment across the supply chain without suffering any setbacks or temperature anomalies requires the establishment of a comprehensive logistical process to maintain the shipment integrity.

The cold supply chain, for example, is getting more and more difficult to manage as regulatory issues, carrier capacity crunches, the need for sophisticated technology platforms, and driver shortages all take a toll on a firm’s ability to make the best possible transportation decisions.

In fact, these challenges can make maintaining the in-house expertise needed to stay profitable nearly impossible. Maximizing Quality and Profits in Cold Chain Logistics, author Pat Hughes notes that the most common causes of profit loss in the cold supply chain include temperature abuse, humidification abuse, ethylene/CO2 abuse, microbial growth damage, and damage due to mishandling.

5 Key Considerations

In The Geography of Transport Systems, Hofstra University’s Jean-Paul Rodrigue notes that the process includes several phases that range from the preparation of the shipments to final verification of the integrity of the shipment at the delivery point. Each of these can impact the supplier’s profits:

  • Shipment preparation. When a temperature sensitive product is being moved, the shipment itself should already be at the desired temperature.
  • Modal choice. “Distance between the origin and the final destination (which often includes a set of intermediary locations), the size and weight of the shipment, the required exterior temperature environment and time restrictions (perishability) of the product all affect the available transportation options”, Rodrigue points out.
  • Customs procedures. “If the freight crosses boundaries, custom procedures become critical”, Rodrigue writes, “since cold chain products tend to be time sensitive and more subject to inspection than regular freight (e.g. produce, pharmaceuticals, and biological samples).
  • The last mile. “Key considerations when arranging a final delivery concern not only the destination,” he notes, “but also the timing of the delivery so the critical labor and warehousing space is available.”
  • Integrity and quality assurance. “After the shipment has been delivered, any temperature recording devices or known temperature anomalies must be recorded and made known”, Rodrigue points out.

“The setting and operation of cold chains is dependent on the concerned supply chains since each cargo unit to be carried has different requirements in terms of demand, load integrity, and transport integrity,” Rodrigue concludes. “Because of the additional tasks involved as well as the energy required for the refrigeration unit, transportation costs for cold chain products are much higher than for regular goods.”

As one of the fastest growing 3PLs in the cold chain industry, Hanson Logistics moves millions of pounds of freight across the country for many of the most respected brands. Leverage Hanson’s extensive transportation carrier network, technology, and expertise to assure efficiency and service are delivered on time and at rates that allow your company to exceed its own profit expectations.

by Hanson Logistics Hanson Logistics

The Future of Cold Chain Logistics

The Future of Cold Chain Logistics

The future of cold chain logistics is almost always in transition: from growth to slow-downs, modified trends to shifted needs from customers. After two considerably slow years for the industry in 2014 and 2015, shipping providers are eager to see a new era for logistics.

That new era might be closer than we think: the Council of Supply Chain Logistics released its 27th Annual State of Logistics Report and suggested a shift to a more sound logistics industry. The report documented the positive changes in the logistics market from last year. This showed providers it may be time to accommodate accordingly.

The Findings

In this year’s report, what began as lulls in traffic and a rise in costs for businesses has accelerated into a cost efficient system. This includes having services available in plenty, with agreeable pricing and rationalized demand. The report mentioned an increase in supply chain transparency as it continues to grow. Another highlight was technological changes for 3PLs, helping enable more efficient production of data to drivers and coordinators alike.

Interpretations

What does this mean for providers? An air of excitement looking forward into a stronger industry. This also infers more promising results as the next few months finish out the quarter.

Partner with us in the new era for cold chain logistics. At Hanson, no matter the change in industry, we are always saying “Yes, We Can!” to providing solutions and pursuing excellence.

by Hanson Logistics Hanson Logistics

The 3PL as a Technology Partner

The 3PL as a Technology Partner

Buying, implementing, and maintaining supply chain software applications can be an expensive and time-consuming initiative. Whether the projects are managed by your company’s in-house IT team or outsourced to a third party, the costs associated with this function can chip away at a company’s bottom line, put undue stress on a company’s resources, and result in unfavorable levels of system downtime.

To help alleviate these pain points, third-party logistics providers (3PLs) like Hanson Logistics have been investing in supply chain, logistics, and transportation applications that help customers work smarter, better, and faster without the need for big IT investments.

Gaining a Competitive Edge

By leveraging their 3PL’s technology investments, companies are getting systems up and running faster, avoiding lengthy implementation times, and blissfully ignoring ongoing upgrade and maintenance issues.

“To gain an edge in a competitive market, 3PL providers stay up to date with the latest developments in technology so you don’t have to,” writes Global Trade Magazine’s Steve Lowery in “Going it Alone.” “The software that 3PLs create can provide visibility to monitor the entire supply chain through advanced reporting, helping inventory management, logistics planning, and many other business processes.”

In addition, Lowery points out that sophisticated software systems analyze and track processes to eliminate inefficient areas and fast track necessary links in the chain. “By outsourcing logistics needs to a 3PL,” he writes, “a company is able to focus more on its core competencies while being ensured that its logistics needs are being handled by reliable, seasoned professionals who are not only good at what they do but constantly looking for the newest ways to improve clients’ tech options.”

Technology: The Missing Link

Already working directly with shippers to manage transportation of products in the most economically feasible and efficient manner possible, logistics providers rely heavily on technology to determine the best rates, select the best routes, and track shipments as they move around the world.

The same providers are using online platforms, websites, mobile devices, EDI, and password-protected platforms to share information with customers in real-time, thus taking on the technology investment burden and equipping multiple customers in the process.

For example, 3PLs use transportation management systems (TMS) to orchestrate product movement across the supply chain and the related transportation choices. Using reports and data, the software gives the 3PL visibility into the customer’s supply chain performance and supports future decision making.

At Hanson Logistics, we continually invest in upgrades to our supply chain systems. For example, through Infor’s Supply Chain Management System, all customers have secure access to their own inventory information, in addition to real-time order status visibility, inventory availability, and shipment status. The system has built-in parameters that are triggered in the event of back orders, order acknowledgement, shipments, or delays. This enables shippers to manage exceptions via pager, text, fax, email, or other means of communications with their contacts. In addition to dovetailing with our WMS, Hanson’s Transportation Management System (TMS) offers:

  • Track & trace, allowing customers and Hanson staff to track shipments through delivery
  • Customer defined reference numbers for added continuity
  • Secure access that gives shippers and authorized consignees tracking ability for transparent customer service
  • Easy-to-use interface for customizing event management and notification preferences
  • 24/7 access to instant rate information, carrier performance, and costing matrix, and reporting by carrier, location, date, activity, etc.

By leveraging these and other capabilities directly through your 3PL, you gain insights into the TMS-generated data that helps your company supply a high degree of customer service and satisfaction to its own clients. With a bigger emphasis being placed on the customer experience, having these real-time, actionable insights in today’s competitive business environment can mean the difference between a long-term customer and an unsatisfied client.