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7 Upsides to Contracting With a Cleveland Domestic Freight Forwarding Company
Cleveland domestic freight forwarding is an invaluable supply chain service for businesses of all sizes that seek to meet customer demand, expand market reach, and still keep the internal focus on core competencies.
A freight forwarder is basically a third-party logistics business that helps other companies arrange the import and/or export of cargo. In so doing, they often provide critical supply chain management services, such as inland transportation, warehouse storage, document preparation, consolidation/deconsolidation, and customs clearance. Freight forwarding can be done internationally or domestically, depending on where your goods are ultimately ending up.
The particulars can get complicated, but the general idea is that when your business needs goods moved from A to B, you can hire a 3PL freight forwarder, which then maps out the most efficient, cost-effective chain of supply for your operation Freight forwarders can use either their own resources (trucks, drivers, warehouse space, labor, etc.) OR by tap into shipping partner connections.
At On Time Delivery & Warehouse, our experienced freight forwarding team of Cleveland domestic freight handlers assists with loading and unloading cargo and overseeing quality control with meticulous review of goods unloaded/loaded from one vehicle or carrier to the next. We also provide clients with trucking and warehousing services.
According to the U.S. Bureau of Transportation Statistics, more than 55 million tons of freight – some $54 billion worth – is moved daily in the U.S. transportation system. The largest percentage of shipped goods – 75 percent by both weight and dollar value – is moved within relatively short distances, 250 miles or less. Trucks are the transport mode that moves the most domestically, particularly for shipments moved 1,000-miles-or-less. Domestic freight transport can also involve rail, air freight, or a combination intermodal supply chain resources.
Top Advantages of Having a Cleveland Domestic Freight Forwarding Partner
For companies that routinely ship high volumes of products, the many advantages of hiring a Cleveland freight forwarding:
- Competitive pricing based on needed services. Ohio domestic freight forwarding companies can leverage volume to reduce your costs. As intermediaries, freight forwarders have forged reliable working relationships with multiple shippers. This allows them access to more routes, specialty services, and pricing options, and then quickly strike shipment deals on their behalf. Freight forwarders can also sometimes finagle lower shipping prices through cargo consolidation among numerous customers. A single container can carry multiple customers’ cargo, and they all collectively pay less for it.
- Greater shipping flexibility. Shipping domestically and globally is time-consuming, costly, labor-intensive – and at constant risk of last-minute, unexpected changes. Ports experience bottlenecks. Crashes happen on major highways. Blizzards blow through the entire Northern half of the country. Supply chains are always going to be at risk of setbacks like this. Freight forwarding companies can’t shield you entirely, but they can forecast problems on the horizon, identify issues as soon as they crop up, and quickly connect you to alternatives that will minimize the financial impact.
- Environmentally safer shipping. Environmentally-conscious companies often opt for freight forwarding to manage their shipping needs. Freight forwarders use space-efficient packing methods, prioritize making the most of less-than-truckload orders, ensure fleets are well-maintained, and aim for route optimization with every single trip – all of which can help reduce the overall number of trips to be made and improve fuel efficiency.
- Experience and accountability. Anytime goods are being transported, there’s always the risk something could go wrong. In those scenarios, having a freight forwarding partner with extensive experience and industry knowledge can make a huge difference in maximizing your time and resources and minimizing losses. They are going to be able to identify and secure alternative arrangements. Freight forwarding customers also have a clear line of accountability when things do go sideways.
- Real time cargo tracking and transparency. Effective use of cargo tracking technology is key in helping companies – and their customers – manage price predictions, delivery expectations, and operational goals. You need to know “how long will it take for my goods to get there.” Chances are, your freight forwarder is already using advanced tracking technology to give their clients this edge.
- Accurate documentation. Documentation is a huge issue for companies shipping freight internationally, but it’s still relevant for Ohio domestic freight forwarding companies. Interstate shipments still need to be accompanied with appropriate documentation, such as the bill of lading (the contract between you and the freight carrier), the freight bill, packing list, and proof of delivery (not required, but beneficial). Any domestic HAZMAT shipments will require additional documentation. Making sure all your paperwork is accurate and in order helps to ensure your domestic freight will arrive intact, on time, every time.
- Less hassle. You have an entire business to run. Working with a Cleveland domestic freight forwarding company allows you to keep your focus on what you do best, while we focus on what we do best.
If you have questions about domestic freight forwarding services in Cleveland, our dedicated third-party logistics team at On Time Delivery & Warehouse is here with answers.
For information on Northeast Ohio freight forwarding and freight handling services, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Additional Resources:
Freight Facts and Figures, Bureau of Transportation Statistics
Moving Goods in the United States, U.S. Department of Transportation, Bureau of Transportation Statistics
More Blog Entries:
Why Companies are Increasingly Turning to Cleveland Dedicated Trucking, Nov. 28, 2022, Cleveland Trucking & Warehousing Blog
Why Companies are Increasingly Turning to Cleveland Dedicated Trucking
Dedicated trucking services can provide stability, efficiency, and cost savings to companies with consistent truckloads in relatively predictable freight lanes for fixed rates. Sometimes referred to as dedicated trucking, dedicated freight, dedicated transportation, or primary freight, these long-term contracts are basically the opposite of spot rate trucking (short-term, transactional freight pricing that reflects the real-time balance). Cleveland dedicated trucking contracts are ideal for established companies with fairly dependable demand.
According to the American Transportation Research Institute, the trucking industry as a whole hauls more than 10 billion tons of freight annually, comprising nearly 75 percent of the total domestic tonnage in the country. There are roughly 4 million registered tractor trailers in the U.S., with those based in the Midwest accounting for more than 40 percent.
Truckload markets are notoriously volatile, swinging from tight carrier capacity and high rates in one quarter to one where per-rate-mile and freight rate increases are scarce. Entering into a longer-term dedicated trucking contract can provide some much-needed cost dependability, as it locks in competitive rates and available trucks for the duration of the contract – typically 3-5 years.
On Time Delivery & Warehouse offers Cleveland dedicated trucking to Northeast Ohio customers seeking greater regularity in their supply chain.
Primary Benefits of Cleveland Dedicated Trucking
There are a number of reasons dedicated transportation has spiked in popularity. Among them:
- Reduced fleet management responsibilities. When you sign a contract for dedicated trucking with a third-party logistics firm, you get lots of the same perks as a private fleet – without the hassle and cost. Instead, it’s the 3PL trucking company that shoulders the work of acquiring and maintaining trucks, hiring and training drivers and support staff, and keeping pace with safety and statutory requirements.
- Stable pricing. Transportation rates are seemingly always in flux, thanks to unpredictable gas prices, labor shortages, updated safety rules, etc. For shippers, this often means coping with sudden cost spikes – on top of erratic trucking capacity. But if a shipper has a dedicated trucking delivery contract, their vulnerability to freight market fluctuations is substantially reduced. Furthermore, dedicated trucking reduces idle truck time, which also keeps costs in check.
- Dependable delivery times. On Time Delivery & Warehouse prides itself on ensuring deliveries arrive intact, on time, every time. Customers with dedicated delivery trucking contracts have even greater assurances because their inbound/outbound shipments are already clearly mapped out. That allows for greater consistency with pickup and delivery times.
- Guaranteed freight capacity. Dedicated transportation requires an established network and consistent routes. This translates to reliable services for shippers, who can depend on that guaranteed freight capacity as outlined in the contract.
- Minimized liability. When customers opt for dedicated trucking services, routes are arranged for goods and products to move from Point A to Point B without other stops along the way (as there might be with less-than-truckload or spot rate deliveries). Fewer stops means less risk of delays and accidents, which in turn reduces shipper liability.
- Greater customer satisfaction. When it comes to deliveries, speed and reliability are at the top of most customers’ priority lists. Dedicated trucking contracts help ensure you’re meeting – or exceeding – their expectations, which in turn boosts not only your bottom line but your reputation.
Cleveland dedicated trucking services hinge heavily on mutual trust. The carrier must commit to a certain amount of driver and trucking capacity, while the shipper commits to a certain amount of regular freight. If you’re considering a dedicated transportation arrangement, it’s important to carefully vet the reputation of the 3PL/carrier. Trucking is a tough business and supply chains are always changing. When a company has been in business for decades, it means they’ve gained customer confidence through successful navigation of challenge after challenge, year after year.
For information on Northeast Ohio Trucking Services in Cleveland, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Additional Resources:
An Analysis of the Operational Costs of Trucking: 2022 Update, August 2022, American Transportation Research Institute
More Blog Entries:
Cleveland Transloading Service Benefits, Oct. 15, 2022, Northeast Ohio Dedicated Trucking Services Blog
Perks of Cleveland Public Warehousing
Cleveland public warehousing and distribution demand is at an all-time high.
The Journal of Commerce attributes overall warehousing demand in part to the second-quarter surge in imports that led to higher inventories. From this emerged a greater need for logistics and distribution space – particularly in the Midwest and other inland hubs. Beyond that, shifting distribution patterns that emerged during the pandemic have opened new corridors, driving higher demand in markets that used to be considered secondary. Plus, warehouses in major supply chain hubs start brimming to peak capacity, it’s the adjacent smaller markets that absorb the overflow.
Growth in this sector may mean organizations have fewer Ohio warehousing options to choose from, but it’s still important to carefully consider whether the facilities you’re eyeing can check all those “must have” boxes. For many small-to-midsized businesses, that has increasingly meant opting for Cleveland public warehousing vs. private warehousing.
What is the Difference Between Public & Private Warehousing?
As an industry sector, warehousing has evolved far beyond the times of a simple storage space. Today, warehousing is widely recognized as a central service relied upon by industries of all kinds – from consumer goods to manufacturing to retail. As an industry sector, it’s evolved far beyond
Large corporations with high volume product turnover often opt for private warehousing, in which they own or rent warehousing space that is internally operated and overseen. But for any organizations lacking the infrastructure, expertise, and capacity to take on these responsibilities, private warehousing is an attractive alternative that offers affordability, flexibility, efficiency, and convenience.
Put simply, a public warehouse is usually a large facility owned/operated by a third-party logistics (3PL) provider that offers storage space, inventory management, product fulfillment, kitting and packaging, and distribution services to many different businesses.
Cleveland public warehousing costs are typically based per-square-foot, with add-on services available depending on the customer’s needs. Some warehouses require minimum average order volume and/or higher storage rates for slower-moving shipments.
Outsourcing Northeast Ohio warehouse functions is smart when companies:
- Are just starting out and/or are relatively small.
- Have unpredictable inventory cycles.
- Need specialized storage and distribution.
- Lack the investment capital, bandwidth, time, or desire to invest in opening, staffing, and maintaining a warehouse in-house.
It’s important if you’re in the market for public warehouse space to make sure your top picks are not only cost-effective but centrally-located with scalability potential and a great reputation.
Key Benefits of Cleveland Public Warehousing
Among the primary advantages of public warehousing:
- Low investment. Private warehouses are very expensive. There’s procuring and/or building the structure itself. Then there’s maintaining the building, covering all operational expenses, recruiting/training/supervising workers, investing in technology to boost transparency and efficiency, and paying all tax-related expenses. With public warehouses, it’s essentially turnkey.
- Experience and expertise. Labor is usually the biggest expense for most businesses – especially if you want good people. Public warehousing allows companies to avoid direct management of that labor, while still trusting that the workers are knowledgeable and skilled.
- Specialty storage. If you require Ohio warehousing facilities with certain specialty requirements such as FDA registration or hazardous material capacity, it’s often easier to onboard with a public warehouse rather than start from scratch on your own. Not every public warehouse will be capable of fulfilling every specialty requirement, but they can usually refer you to one nearby that does.
- Location. Warehousing real estate goes for a premium these days. It’s increasingly tougher to find/build warehouse property in key markets for reasonable costs. Warehouse location is a key consideration when you’re looking to optimize distribution and find reliable workers. 3PL public warehouse providers are often already established – and right where you need them.
- Flexibility. Markets fluctuate all the time. Public warehousing allows for flexibility during ebb-and-flow cycles. Easy scalability means greater cost efficiency when companies aren’t paying for space they don’t use.
- Add-on services. Things like kitting, packing, assembling, labeling – these are services that many public warehouses offer.
If you have questions about whether our Cleveland public warehousing facilities can meet your needs, contact us for a consultation.
For information on Northeast Ohio Warehousing, Inventory Management, and Trucking Services in Cleveland, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Additional Resources:
US warehousing demand shifting inland: JLL, Aug. 16, 2022, By William B. Cassidy, Journal of Commerce Online
More Blog Entries:
Tips for Choosing an Ohio Warehouse, Oct. 27, 2022, Northeast Ohio Public Warehousing Blog
Tips for Choosing an Ohio Warehouse
Warehousing is a crucial link in your supply chain network – in both global and domestic markets. Choosing the right Ohio warehouse for your operational needs can make a sizable difference in your firm’s ability to be efficient, effective, and profitable.
With Ohio warehouse space and labor at a premium, outsourcing often makes sense – especially if you can find a place that also provides services like packaging, repackaging, kitting, labeling, and distribution. Bonus if it’s near an airport.
When warehousing is done correctly, it provides numerous benefits beyond basic storage. Some of those include:
- Facilitates increased turnover.
- Improves production.
- Decreases shrinkage.
- Maximizes customer satisfaction with fewer products damaged in transit.
- Optimizes safety for workers and your goods.
Still, there is no denying warehousing costs have risen markedly in recent years. That’s thanks in large part to soaring e-commerce demand, which has expanded nearly 30 percent in the last three years. Even despite some predicted slowdowns on the horizon, the pandemic revealed that consumer consumption can be fairly resilient to economic cycles. Warehousing rent has climbed 3 percent a quarter nationally since 2020, reaching nearly $9.56/square foot earlier this year, according to The New York Times. (In some markets, it’s more than $15/square foot.)
If you’re looking for an Ohio warehouse that delivers great value for the cost, here are some priorities you’ll want to bear in mind to ensure you find the right fit.
- Location and accessibility to major linkages. Identify what mode – or modes – of transport is best-suited for your company’s operations. The warehouse that’s right for you will have easy access to that transport mode. For example, if air transport is one of the most efficient means of getting your goods from Point A to Point B, you will ideally find an Ohio warehouse that is within 20 miles or less of a major airport. (On Time Delivery & Warehouse, for instance, is just 4 miles from Cleveland Hopkins International Airport.) You also want to identify where your customers are primarily located. Warehousing that is close to your customer base can give you the advantage of more timely, cost-effective deliveries. Finally, an accessible warehouse that offers easy highway connectivity and few traffic backups so that trucks don’t waste time idling and goods get where they need to go as efficiently as possible.
- Diversity of capabilities. An Ohio warehouse with a broad range of capabilities is going to offer a better deal than those that offer storage and nothing else. If you can get integrated solutions for things like logistics planning, kitting, packaging and repackaging, labeling and sorting, CFS Freight, and distribution, it helps your firm come out ahead. Asset-based warehouse solutions – those that invest not only in the facility but in a transportation fleet and skilled workers – can offer a higher level of warehousing service.
- Experience. With new warehouses in Northeast Ohio cropping up daily, it’s a good idea to consider the experience of the provider. Newer facilities may offer some advantages, but take a look also at the operational dates. Supply chain logistics has always been a dynamic, evolving industry. Warehouse providers that have been around a while have the advantage of invaluable insights that have allowed them to stand the test of time.
- Material handling capacities. The warehouse you choose needs to have the availability of staging capacities and handling equipment that matches your demands. What kind of docks are you going to need? Will you need a facility with cross-docking capabilities? CFS? Last-mile delivery services? All this will help you determine which of your warehousing options will best suit your needs.
- Technology. Advancing technology has fundamentally altered the way warehouses operate – from electronic data exchanges to pick-by-vision systems to real-time product tracking. Keeping customers happy means providing them not only with faster results, but transparency through the process. Technology has been vital to that. Make sure the warehousing company you choose has the systems in place that will allow you to best serve your client base.
- Minimized risks. Handling, storing, and shipping products is not without risk. You want a warehousing management team that is fully aware of those risks, takes them seriously, values their team members’ safety, has appropriate safety measures in place, and invests in adequate insurance in case something does go wrong.
- Taxes and rates. Of course, cost needs to be considered. Compare each facility’s rental rate per-square-foot against the value they’re providing. Depending on your operation type, there may also be certain state or regional tax implications or incentives to weigh.
At On Time Delivery & Warehouse, we recognize that warehousing is an integral part of your operations – and we take our role in that seriously. Our goal is to help our clients maximize efficiency, excel, and ensure their own customers are fully satisfied with services that deliver their goods intact, on time, every time.
For information on Northeast Ohio Warehousing, Inventory Management, and Trucking Services in Cleveland, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Additional Resources:
Industrial Facilities Near Airports Command Rent Premiums, Oct. 5, 2022, CBRE
More Blog Entries:
6 Supply Chain Insights From Northeast Ohio Third-Party Logistics Warehouse Pros, Aug. 28, 2022, Cleveland, Ohio Warehousing Blog
Cleveland Transloading Service Benefits
When it comes to the shipping & logistics, moving goods from one destination to another, Cleveland transloading is a standout service that delivers value and results.
Transloading is a service that involves the transfer of goods from one mode of transportation to another along a designated shipping route. Most often, transloading involves full cargo containers shipped as ocean freight received at a port of entry. The goods are then processed and transferred to a different mode of delivery – usually trucking, rail, or barge – with products often palletized.
Transloading can also involve truck-to-truck and train-to-train exchanges. This is what often gets transloading confused with cross-docking. Cross-docking involves moving an intact pallet (or pallets) from one truck to another. Transloading, meanwhile, involves sorting and re-palletizing items and then transloading them to rail, air, or truck. Cross-docking can reduce or eliminate storage time and often involves quick turnaround times that are ideal for businesses operating on a deadline. Transloading can also deliver cost-savings, flexibility, and faster shipping.
Determining whether Cleveland transloading services are ideal for your situation involves weighing numerous factors. Our dedicated team of Northeast Ohio logistics professionals can help you identify the optimal solution for your operation.
Companies that avail themselves of strategic Cleveland transloading services keep their freight moving efficiently while keeping costs in check.
What Can Cleveland Transloading Do For You?
Transloading has become increasingly popular as e-commerce and international trade becomes the norm. Long-haul shipments often mean numerous shipping companies and transit modes. Transloading can help simplify complicated logistics and save businesses money.
Among the many advantages of transloading:
- Lower costs. Transloading is a great way to reduce your costs, particularly when you’re importing ocean container goods. Shippers can save big – usually in one of two ways. The first involves moving the contents of three, 40-foot containers into two, 53-foot trailers or domestic containers. You have the ability to select the transport mode through different legs of the journey that is going to be the most cost- and energy-efficient. Secondly, when you transload at the port, you avoid the need to use ocean containers to ship items inland. Steamships put a premium on maritime freight containers, so this is a major cost savings. (Bonus: A shipping container that is returned to more quickly to circulation means faster turnaround time on the next shipment, reducing bottlenecks and allowing for more efficient supply chains overall.)
- Faster transit times. It’s true that transloading takes a bit of time, usually about 1-3 days. However, by having the flexibility of several different transport mode options, you have the option of identifying the fastest option.
- More destination options within reach. Because transloading offers the option to choose any combination of freight transportation to best reach a certain end point, your goods can reach just about any destination.
- Simplified operations. Any bulk or heavy material shipping is going to pose some challenges. Transloading consolidates your shipments, and makes them easier – and cheaper – to transport.
- Promotes business growth. By allowing companies to hold down costs while reaching new markets and decentralizing your supply chain, transloading offers more opportunities to keep the customers they have – and attract new ones.
If you are considering transloading for your operation, our Cleveland team is prepared to offer detailed answers to your questions and provide a quote.
For information on our Transloading in Cleveland, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Additional Resources:
Transloading, by Will Kenton & Amanda Jackson, Jan. 31, 2021, Investopedia
More Blog Entries:
Cleveland Warehousing Helps Businesses Optimize Resources, Maximize Profits, July 30, 2022, Northeast Ohio Warehousing & Trucking Blog
Cleveland Trucking Carriers Steeled Operations for Potential Rail Strike
The threat of a potential U.S. freight train rail strike had Cleveland trucking carriers steeling their fleet and operations to help absorb at least some of the would-be mammouth impact. A last-minute tentative agreement struck with the intervention of the U.S. Department of Labor may have offset the immediate threat, but the whole ordeal underscores just how vital trucking services can be when other elements of intermodal transportation are jeopardized.
The New York Times reported tens of thousands of rail workers had threatened to strike in pursuit of better working conditions. Such action would have a catastrophic impact on supply chains across a vast range of industries throughout the U.S.
Rail moves an estimated two-fifths of long-distance U.S. freight and one-third of exports. The stakes of a potential shut down were very high – particularly as there isn’t a ton of slack in the trucking sector. If you are an organization that relies on the timely movement of goods across the country or the globe, this close call underscores the importance of securing a third-party logistics partner with strong connections to reliable Cleveland trucking carriers who can help arrange alternative transport and delivery methods in the face of unexpected hurdles. And let’s face: Unexpected hurdles of all stripes are almost a given with global supply chains.
A rail strike and increased reliance on Cleveland trucking carriers would mean substantial delays and higher costs. But it’s worth noting that truckers are already responsible for carrying nearly three-fourths of the nation’s goods as it is.
If all of America’s 7,000 long-distance daily freight trains were brought to a halt, the American Trucking Associations estimates it would require some 460,000 additional long-haul trucks daily to meet the current demand. Although there is no longer a trucking shortage, there isn’t much of a surplus either.
As our Cleveland trucking carriers can explain, rail is a central component of our complex global supply chains, which rely on the carefully-coordinated movements of cargo ships, freight trains, and trucks. This is known as intermodal transportation, and it helps to effectively eases the movement of goods across air, sea, and land. Compromise one of those links in the supply chain, and there will be a near-immediate domino effect to the system – one that has already been under significant strain since the pandemic.
Still, rail is generally recognized as the weakest of the three intermodal supply chain links. It is less flexible in responding to demand surges and bottlenecks. Over the last five years, as carriers have sought to limit service to lower costs as part of a strategy known as Precision Scheduled Railroading, nearly a quarter of rail worker jobs have been slashed. Rail companies say the reconfiguration has been an effort to become more agile and responsive to supply chain demands and challenges.
There are 12 railroad unions that form the National Freight Rail Bargaining. This coalition uses its combined power to push for employee labor demands. The most recent disputes concerned matters like higher pay, better working conditions, more paid time off, and schedules that are more flexible. (Attendance policies in particular have been a huge point of contention.)
There hasn’t been a U.S. railroad strike 30 years – and the impacts of that one in 1992 were immediate and serious. It took only three days before Congress intervened and a new contract was brokered.
Negotiations for the current rail worker contract have been ongoing for three years. Recognizing the potential harm this might do, the White House and U.S. Labor Secretary stepped in, brokering a tentative agreement. However, it’s still not officially finalized, meaning our Cleveland trucking carriers are still gearing up for the possibility the deal could fall through. The new contract won’t become final until members review the terms and approve it with a ratification vote.
Still, companies might still want to prepare for setbacks just in case. Some retailers are already diverting Asian goods that typically come through West Coast ports to those on the East Coast, at places like Newark, Savannah, and Charleston. Cleveland trucking carriers’ routes frequently take them to-and-fro at these ports. The added demand could mean an uptick in trucking rates, but worth it for many organizations if it means their goods arrive in tact and on time.
If a rail strike were to still happen now or in the coming months, our Cleveland trucking and logistics experts opine it probably wouldn’t last long. Too many industries are too deeply invested, and the pressure to resolve matters quickly would be enormous. The government’s heavy-handed involvement at the final hour is further evidence of that. But even a short-lived strike could have wide ripple effects, so companies would do well to plan for that possibility.
If you are a Northeast Ohio firm that relies heavily on rail transport to move your import/export goods, diversifying your mode of transport and collaborating with a third-party logistics firm with trucking capabilities may improve the overall security of your supply chain.
For information on Trucking, 3PL, and Warehousing Services in Cleveland, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Additional Resources:
More Blog Entries:
Seasonal Cycles of Ohio Trucking Are Back, Per Cleveland Trucking Experts, July 20, 2022, Cleveland Trucking Blog
Leveraging Cleveland 3PL Resources to Prep Your Supply Chain for Peak Season
Supply chain instability and challenges – from labor shortages to backlogged ports to pricey spot truck rates – have basically been the status quo ever since the pandemic. Although some aspects may be starting to even out, Cleveland 3PL experts at On Time Delivery & Warehouse recognize that with the height of peak season 2022 on the horizon, manufacturers, wholesalers, and retailers are bracing for these challenges to take on greater significance. Those able to effectively leverage the resources of a Cleveland 3PL trucking, warehouse, and logistics firm will ultimately be the ones that carve out a competitive advantage.
In general, peak season typically occurs annually, starting with the back-to-school shopping season in late summer and rounds out sometime in November, just after Black Friday (with a final holiday rush in late December). However, some suppliers say that with unpredictable surge-and-trickle demands, those clear seasonal trends have been tougher to nail down.
Still, logistics industry insiders are predicting tsunamis of demand in certain sectors, with ripple effects spreading far beyond those directly in the center. That could mean we’re likely to see delivery delays, price increases, and further labor shortages. Northeast Ohio companies seeking to minimize their vulnerability to supply chain challenges would be wise to tap into the resources offered by a dedicated Cleveland 3PL.
Primary Peak Season Challenges
To effectively prepare for the challenges of peak season, you must first identify what that time frame is for you – in your industry, your region, and your organization specifically. That alone can be tricky, particularly given the lack of market predictability in recent years.
This is one area where a Cleveland 3PL can help. You know your business, but we know supply chains. We utilize the latest data software to analyze inventory and the movement of goods critical to your operations. Once we pinpoint trends, weaknesses, and bottlenecks in your supply chain, we help create a strategic end-to-end plan to minimize delays and losses.
Some common issues likely to arise:
- Fluctuation in peak season length. When you know how long your peak season is going to be, you can better prepare by matching the appropriate level of seasonal labor and delivery costs. Even when it’s difficult to nail down, there may still be precautions we can suggest to help you minimize the consequences.
- Inaccurate volume forecasting. This has been especially challenging in recent years. A third-party logistics firm can help with accurate data analysis to better identify when spikes and lulls can likely be anticipated – and prepare effective responses if outcomes deviate from earlier predictions.
- Lack of efficiency in labor management. If you’re trying to manage your own operations while also managing your own supply chain, warehousing, and delivery can be next to impossible for some firms – particularly when you’re under additional demand pressures. Transparency, accurate communication, and proper training are imperatives. Errors and oversights can result in wastefulness and depletion of customer confidence.
Peak season predicaments can sometimes be forecasted, but not always. Working with a competent Cleveland 3PL helps ensure you are better prepared for both the known and the unknown.
Cleveland 3PL Predicts Warehouse Bottlenecks Likely to Be a Problem This Peak Season
Although industries vary on the specific challenges they face during peak season, our Cleveland 3PL is fairly certain as we head into the last quarter of 2022 that warehousing bottlenecks will become nearly everyone’s problem.
Recently, The Wall Street Journal noted that the shipping capacity struggles that were apparent at traffic-snarled seaports has been moving inland the last few months. It’s only likely to be exacerbated. As those of us in the logistics field know, trailers needed to transport goods on trucks are already being tied up – sometimes for weeks on end, even as demand for container ships has waned – because so many warehouses are at capacity. Distribution hubs in the Midwest and throughout the U.S. are seeing lengthy delays.
Recognizing these headaches are likely to drag on well into next year, our Cleveland third-party logistics professionals work closely with clients to arrange the most streamlined, cost-efficient modes and methods of shipping, storage, and delivery. We can help you access the most up-to-date, transparent data to help identify optimal rates, diversify carrier relationships, hone in on flexible warehousing partners, and anticipate reasonable timelines.
For information on 3PL Warehousing, Inventory Management, and Trucking Services in Cleveland, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Additional Resources:
Warehouse Bottlenecks Are Snarling U.S. Supply Chains, Aug. 26, 2022, By Paul Berger, The Wall Street Journal
More Blog Entries:
6 Supply Chain Insights From Northeast Ohio Third-Party Logistics Warehouse Pros, Aug. 28, 2022, On Time Delivery & Warehouse Blog
6 Supply Chain Insights From Northeast Ohio Third-Party Logistics Warehouse Pros
As Northeast Ohio third-party logistics warehouse professionals, we understand the complexities of supply chain management better than anyone. Increasingly, it’s important that our clients have a grasp of them as well.
In recent years, the volatility of local and global supply chains has been on full display not only to manufacturers and distributors but consumers as well. There is a growing expectation that savvy businesses will take measures not just to respond to supply chain hiccups when they arise, but to become better at predicting and preparing for their inevitability.
Working with an Ohio third-party logistics team helps your company to do that. It also provides consumers with broader transparency and more responsive communication when problems occur.
With this in mind, the Ohio 3PL team at On Time Delivery & Warehouse offers the following list of basic supply chain insights.
Modern supply chains are increasingly complex.
Most supply chains can be broken down into two basic segments: Production and distribution. But that’s really where the simplicity ends.
Consider, for instance, a basic laptop computer. It can easily have 3,000 different parts. Your typical Ford truck? It’s likely to have at least 30,000 components. An effective supply chain is going to have numerous layers of varying sophistication, typically involving specialists who can supply certain components. Often, businesses end up with many layers of supply chains – and it can get even murkier when your suppliers don’t want you to know who their suppliers are, for fear you’ll just go around them if possible. This can be especially problematic if a lower-tier supply shuts down – and you aren’t even made aware of it until a certain time period. That can eventually lead to major supply chain snarls – which is precisely what we saw during the pandemic.
On the distribution end of things, issues with congested ports and labor shortages have resulted in bottlenecks. Working with an Ohio third-party logistics company helps ensure you if something falls through, you have alternative routes and means (by road, air, and sea).
Unexpected Demand May Not Mean What You Think.
Customers signal their demand by making purchases. This prompts businesses to ramp up supply. But this sort of demand forecasting can cause problems if spikes are interpreted as fundamental shifts in demand.
We saw this during COVID-19 when it came to things like exercise bikes. There were huge customer demands, retailers flooded their suppliers with orders, suppliers started cranking up production and returned the flow back to retailers – who by then realized they had too much and cut back substantially on future orders. This lead to major supply chain headaches – manufacturers cut production, suppliers were left with an overstock of raw materials and customers were left cooling their heels for extended periods waiting for deliveries.
When it comes to sudden demand spikes, it’s best to proceed with a degree of caution.
Just-In-Time Production Can Be a Practical Solution.
To avoid the whiplash of sudden demand spikes that just as suddenly fall, some companies have found just-in-time production a practical solution. As our Ohio third-party logistics pros can explain, just-in-time production involves making precisely what you need – and only when you need it. The idea is you’re only carrying as much inventory as you need, raw materials get delivered only just in time. If there is an issue with any of those parts/raw materials, the impact is typically minimal because the orders are smaller.
However, this solution really only makes sense when suppliers, manufacturers, and distributors are relatively close and/or when the supply chains are fairly lean. If your network is more global, trying to work out exactly when you’re going to need a delivery – and how much it will be – can be tricky. It can lead to problems when you factor in demand spikes and supply chain bottlenecks (particularly those involving international shipments, which can get held up for weeks on end).
Just-in-time production can work for some companies, but it’s wise to consult with your 3PL to see whether your supply chain has any weak links that can be tightened first.
The Bigger Your Supply Chain, the More Opportunities for Disruption.
Many companies rely on lengthy distribution chains. For example, if you’re shipping furniture from a factory in Sweden to a store in Northeast Ohio, you might need an air leg, an ocean leg, a rail leg, and truck transfers. The more links your supply chain has, the riskier it may be, particularly when each link directly depends on the smooth function of all the others. Keep in mind too – some of those links depend on cogs and sprockets that are on different tracks entirely.
Longer logistics threads are more vulnerable to delays than shorter ones. When you work with a third-party logistics partner, you have the benefit not only of transparency and seeing potential issues just before or immediately after they arise, but also alternatives when that happens.
Ordering More Than Necessary May Exacerbate Shortages.
Ideally, companies are only going to order as much of an item as they think they are going to consume or sell until the following cycle. However, if you forecast that a certain product may become particularly in-demand, it may seem smart to order extra.
However, where this is a problem is that some companies might start ordering double or triple what they actually need. This not only leads to shortages in the immediate, but can result in companies having far too much inventory – which inevitably leads to the need for more warehouse space, etc. You may end up with further losses if you’re forced to slash prices to just to offload it.
It can be tough to determine the exact right amount of just-in-case product to keep on hand. It’s a balancing act. Working with a dedicated Ohio third-party logistics team can help ensure both communication and supply chain visibility so that you can accurately forecast just how much you’re going to need.
Ohio Third-Party Logistics Partner Can Help Reduce Bottlenecks By Providing Big Picture Snapshots.
Bottlenecks in the supply chain are commonly the result of a lack of visibility – both for what’s in the pipeline on its way to you and then what comes after.
For example, it’s easy to see hundreds of ships stalled at a port and conclude, “Clearly, lack of efficiency at the port is the problem.” In reality, the actual issue might be that there was poor communication among downstream distribution centers. You could increase the port’s capacity 200 percent by keeping it open 24-7, but it’s not going to make much difference in the backlog if there is no one to pick up those goods or nowhere for it to immediately go.
Working with a team of skilled, experienced 3PL professionals can help provide a big picture lens, allowing you to identify potential issues before they become a major problem – easing the flow of goods downstream all the way to your customers.
If you have questions about how our Northeast Ohio third-party logistics warehousing & trucking team can help improve your supply chain visibility and flow, we’re here to provide further insight.
For information on 3PL Warehousing, Inventory Management, and Trucking Services in Cleveland, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Additional Resources:
Supply Chain Pressures Ebbed in July, Aug. 15, 2022, Central Banks Research, The Wall Street Journal
More Blog Entries:
Cleveland 3PL Recommends Ample Planning to Cope With Packaging Shortage, June 28, 2022, Northeast Ohio Warehousing News Blog
Cleveland Centralized Examination Station Experts Explain Customs Exams, Holds
As the Cleveland Centralized Examination Station (CES), we understand the goals of U.S. Customs and Border Protection (CBP) in examining cargo imported by land, air, and sea. The foremost purpose is keeping our country secure and citizens safe. However, we also fully understand the anxiety that can accompany word that your cargo has been flagged for a U.S. Customs exam – particularly as such action can result in major delays and expense for stakeholders.
Bear in mind that in addition to its own regulations, the CBP is tasked with enforcing hundreds of laws on behalf of 40+ other federal agencies, including the USDA, the FDA, and the U.S. Fish & Wildlife Service. Understanding what triggers an examination may help you avoid one. At the very least, you’ll know better how to aid authorities in a manner that helps expedite the process and get your goods moving as soon as possible.
That said, not all circumstances that result in a U.S. Customs exam or manifest hold are within shippers’ control. In fact, shippers might do everything “right” and still find their goods among the 3-5% selected for closer inspection.
Some of the holds that authorities can place on international shipments include:
- Manifest hold. This occurs when there is a problem with documentation. Usually, it’s the result of missing paperwork, such as a bill of lading. Typically, the U.S. Customs agent is going to request additional or corrected paperwork and then your goods will be on their way.
- CET Hold (A-TECT). This is a hold imposed by the Anti-Terrorism Contraband Enforcement Team. This is a special branch of the CBP, which imposes holds on shipments suspected of containing potentially unlawful items (drugs, currency, weapons, or other illicit materials).
- Commercial enforcement hold. This is sort of a blanket hold that is going to cover a range of potential issues – not only from the CBP but other federal agencies, such as the U.S. Department of Agriculture or the Consumer Product Safety Commission. The overarching goal is to ensure that any goods entering the country are compliant with federal laws and regulations.
- PGA Hold. Similar to a commercial enforcement hold, a Participating Government Agencies Hold means the shipment in question was flagged for compliance issues, rather than customs issues.
- Statistical Valuation Hold. This occurs when there is a discrepancy between your shipment and the manifest. For instance, if the weight of your shipments is much higher than might be anticipated given the commodity, the shipment might be flagged for a statistical valuation hold.
If your shipment is flagged, there can be one of three types of customs exams: Vehicle and Cargo Inspection System (non-intrusive inspection), a Tail Gate Exam (examiner breaks the seal of your container and reviews some of the contents), or an Intensive Customs Exam.
That last type is where a CES comes in. For this kind of exam, your goods must be transported to a CES, unloaded, held, inspected, and then reloaded before heading to its next destination. The shipper must pay for drayage and detention costs, as well as the labor to load and unload and reload. An Intensive Customs Exam may cause up to 30 days in delays and cost up to a few thousand dollars.
Having an efficient Cleveland Centralized Examination Station can help to speed up the Customs inspection process and reduce the amount of time your goods are tied up.
What, Exactly, is a Cleveland Centralized Examination Station?
A CES is a place where Customs officials can come to physically inspect and examine import and export freight and cargo. These are privately-owned and operated facilities (like On Time Delivery & Warehouse) that allow for physical examination of internationally imported or exported goods.
Cleveland Warehousing Helps Businesses Optimize Resources, Maximize Profits
Cleveland warehousing is an element of operations that many small businesses in Northeast Ohio cannot afford to overlook if they manufacture, export, or transport goods in any capacity.
Although many companies will try to manage their own warehouse duties in-house, doing so efficiently can quickly become all-consuming – and close to impossible. That’s why many businesses ultimately end up outsourcing Cleveland warehousing functions to a third-party logistics provider.
What makes some firms reticent to take the first step on the initial investment is the cost. But in the end, outsourcing Cleveland warehousing functions has proven time and again to boost productivity, improve on-time-deliveries and customer satisfaction, and save money.
The customer’s journey isn’t over once the order is placed. Working with a dedicated 3PL warehouse provides you with greater transparency and control to ensure customers receive their products intact and on-time – and to promptly notify them of any issues if that isn’t going to be the case.
Benefits of Partnering with a 3PL for Cleveland Warehousing
If you’re considering a warehouse partnership with a third-party logistics firm, it’s important to go into it knowing what you hope to gain. Some of the top benefits that our Cleveland warehousing customers have identified as holding the most value:
- Improved inventory management. It’s estimated that 8 percent of small businesses fail to track their inventory. Stunningly, nearly a quarter don’t maintain inventory at all. In effect, order processing and shipments may be delayed, resulting in poor customer experience. When you have a centrally-located warehouse that is dialed in with freight logistics capabilities, it becomes easier to track, manage, and ship your inventory. You’ll have the advantage of low-stock alerts well in advance of when you’re potentially risking running out. This will also allow you to give customers potential alternatives, as opposed to simply keeping them waiting in the dark.
- Efficient packing and processing. A solid warehousing partner goes beyond simply storing your goods. It has the supplies, the equipment, and the staff to move, package, and process your orders. Pallet racks, packing materials, loading docks – these are just a few examples of what a third-party warehouse may be able to offer.
- First-rate customer service. According to RetailDive.com, nearly 65 percent of online shoppers expect their free shipping order to arrive within three business days. At the very least, there is an expectation that customers know – and be kept updated about – the estimated or guaranteed delivery time. Nearly 90 percent are willing to pay more to ensure faster delivery. The speed of delivery is sometimes the No. 1 thing buyers consider when deciding their shipping method. So as a business owner, this is something you must take seriously. If you fail to deliver orders on time, your reputation can tank and you may hemorrhage customers. When you’re working with an experienced warehousing partner, you can arrange for optimized distribution and timely delivery. This reduces errors and potential product damage during the order fulfillment process. Warehouses can also help keep your goods safe and secure, reducing the odds items will get lost or stolen during handling.
- Price stabilization. There are lots of factors that can influence the price of a product from month to month or year after year. Warehousing does provide some opportunity for price stability, though, because it allows businesses to store goods for a later date, when demand may be higher. Consistent stock levels can help ensure you can offer consistent prices to your clientele.
- Better risk management. In addition to serving as a buffer from wild pricing swings, warehousing can offer risk management services that will minimize your losses due to improper storage, packing, and deliveries. Goods that are properly packed, stored, sorted, and picked will have a longer shelf life, which means you aren’t losing product unnecessarily.
If you are looking for a warehousing and logistics partner in Northeast Ohio, On Time Delivery & Warehouse has a reputation as a leader in the field. Our customers trust us to provide quality warehousing services, inventory tracking, and distribution – so that your goods make it to their destination intact, on time, every time.
For information on 3PL Warehousing and Inventory Management Services in Cleveland, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Additional Resources:
Peak shipping season ahead of the holidays is about to begin for a volatile supply chain, July 29, 2022, By Lori Ann LaRocco, CNBC
More Blog Entries:
Federal Shipping Reform Impact to Cleveland Warehousing, Trucking, June 20, 2022, Ohio Warehousing Blog