Businesses of all sizes have struggled with supply chain instability the last few years. It’s considered the No. 2 concern, just after finding and retaining qualified, reliable workers. Girding themselves for more supply chain volatility on the horizon, many mid-sized companies are strategically stockpiling inventory, allocating more funds to ensure timely deliveries, and onboarding software that allows for greater transparency. These are smart tactics for Northeast Ohio businesses – and can all be successfully implemented by teaming with a dedicated Cleveland 3PL (third-party logistics) warehousing and distribution partner.
According to the recently-released 2022 Business Leaders Outlook Survey, conducted by JPMorgan Chase, the majority of mid-size company leaders appear to be shifting from a small-business mindset to a larger one in an effort to stay competitive in the global economy. To maximize their competitive edge, more than half of respondent companies (with annual revenues ranging between $20 million and $500 million) were adding suppliers from new areas as well as dedicating more capital to higher shipping and delivery costs. One-third were changing materials or manufacturing processes, and some had even stopped working with some suppliers altogether.
More than 80 percent of firms said they had to increase wages in order to recruit and retain workers. This is a particular challenge for companies managing their own warehousing and logistics in-house – further highlighting the benefits of working with an established Cleveland 3PL.
Other top concerns for companies looking ahead this year are difficulties with forecasting, customer demands for lower costs, customer demands for reduced response times, and overall rising expectations for customer service. Well over half of companies queried are actively investing in inventory & network optimization.
As an experienced team of third-party logistics professionals, we recognize that while many businesses stress over supply chain operations, the consumer-driven approach does open the door for innovation opportunities. Running an efficient, cost-effective operation has always been a challenge – and it’s one that Ohio 3PL operators are uniquely equipped to help resolve. Among the top concerns we help clients address with Cleveland 3PL services:
A customs bonded warehouse is one that allows for storage of duty-payable, imported goods prior to them being processed and sent on to their final destination. Some are government-operated, while others, like On Time Delivery & Warehouse, are privately-owned.
But the primary differentiating feature of customs bonded warehousing versus any other warehousing proprietor is that payment for inspections and duty taxes can be deferred – in some cases up to five full years past when the date of import. Until the duties are paid, the goods must stay at the warehouse. But this allows companies to get their products “in the door,” which can mean major savings, especially when you’re up against constant supply chain instability, as many have been the last two years.
Having a Cleveland warehousing partner that is customs bonded can prove essential. As reported last month by Freight Waves, congestion at ports has meant importers who aren’t proactive in determining what will be needed – or could be needed – in terms of customs documents in preparation for inspections, etc. are running into excessive, painful delays. Utilizing customs bonded warehousing is one strategy that may help some companies better cope with supply chain snags in the future.
“Given that some of these disruptions are likely to continue into next year and beyond, companies may want to consider customs bonded warehousing as a means to just get their goods and materials in the country,” explained On Time Delivery & Warehouse CEO Anthony Figliano. “Once they’re here, we offer safe, secure storage until such time our clients are ready to retrieve them. We also provide kitting and assembly – which can even be done prior to the duties being paid. And then of course once duties are paid, we offer delivery to the next destination.”
The customs bonded warehouse proprietor agrees to be liable for goods that are under a customs bond until they’re exported, withdrawn, or removed for consumption – after the duties are paid.
Each day, billions of packages are prepared and shipped from production plants, over seas and skies, through warehousing, distribution and processing centers and on to their final destinations. For those that cycle through our Northeast Ohio warehouse and distribution center, businesses and their clientele benefit from our expert Cleveland repacking & coding services.
Repacking is a value-added service that allows the contents of packages to be changed or reconfigured so that the end result meets customer expectations. Some examples of repacking goals:
- To repack a product into your company’s personally-branded packaging, as opposed to sending it in the manufacturer’s packaging.
- To make adjustments based on unique customer requests.
- To make a change to any pre-assembled kits.
According to Packaging Digest, the cost of repacking services globally is expected to reach $50 billion by next year. Wrapped up in these expenses are labor, returns, materials, transport and shipping.
Many 3PL warehousing and distribution centers offer some type of repacking, but not all promise the same quality assurance guarantee as the repacking professionals at On Time Delivery & Warehouse. In addition to repacking, we use specialized electronic coding equipment to place product information directly onto the product/packages. Such labeling can include clear sell-by and expiration dates, which must be both clear and readable.
How Cleveland Repacking & Coding Can Reduce Warehouse Costs & Inventory Losses
Supply chain managers have the ultimate goal of developing, implementing, and monitoring the timely receiving, storage, transport, and distribution of products for shipping. This means we must have effective planning strategies for packing and repacking goods, reducing damage risks and avoiding additional costs.
Specialized internal and external packaging can protect the integrity of a product as it continues to move through the distribution chain.
In the trucking world, trailer spotting is when a truck trailer is parked in a designated spot in the distribution yard, detached from the tractor, and then prepared to be ready-to-go for when its driver arrives. It’s a strategy that boosts efficiency for our shippers because it reduces the amount of downtime truckers have at the docking area. If your current trucking and warehouse logistics partner doesn’t offer Ohio trailer spotting services, it may be time to explore alternative options.
How Ohio Trailer Spotting Helps Streamline Your Processes
Having a trucking service that also offers trailer spotting can make a big difference in the efficiency of how your goods are moved. Some of the ways include:
- Less down time. If we have a shipper that routinely moves high volume (let’s say once daily), trailer spotting allows us to have a carrier enter the yard, drop off a trailer, and pick up the daily load immediately. Trailer spotting ensures an empty trailer is immediately available for whatever needs to be moved right away. It can significantly reduce the amount of trucker downtime and shipment backlogs. Delays can result in products sitting in your yard, putting strain on the warehouse, increases losses, and increases the amount the driver is paid to wait idly. But with trailer spotting, when a driver drops off one trailer, another is already on standby ready to go. Ohio trailer spotting also ensures the warehouse is going to maximize efficiency on the warehouse side of things as well because empty trailers are parked where they need to be for quick loading and fast turnaround. Shippers and carriers benefit.
- Yard management efficiency. In fact, your entire supply chain is going to run more smoothly. Yard management specifically refers to how trucks are organized and moved within the warehouse yard and loading docks. All those trucks need to be positioned, scheduled, loaded, unloaded – with the movement of all items on and off done with care and tracked in real time. Trailer spotting allows us to more easily manage pick-up loads, which in turn helps streamline the entire process.
- Flexibility in scheduling. When it comes to warehousing, trucking, and supply chain logistics in general, something is always changing. But that creates significant challenging when warehouse and trucking schedules of certain assets are locked in. Trailer spotting services allow us to provide additional flexibility, allowing us ultimately to be better prepared for unexpected issues and provide the best service possible for our customers.
A bill of lading is a document that serves as proof a company or carrier received goods from a shipper. It’s a critical record that our Cleveland warehouse professionals know is essential to demonstrating the chain of custody from shipper to carrier. Beyond simple proof of cargo transfer, it establishes a contract between the two parties for the delivery of the goods to the purchasing party or next carrier. They’re often required for many types of land freight shipments, but can also be mandated for air and sea cargo as well. Failure to properly fill out these forms can be costly.
If you’re considering partnering with a Northeast Ohio warehousing and distribution to a third-party logistics company, it’s important to have a solid understanding of what bills of lading are and how they’re prepared. Chances are, it will be an aspect of your operations you’ll also want to outsource.
What Exactly is in a Bill of Lading (BOL)?
Bills of lading, sometimes called BOL, are nothing new. In fact, they go all the way back to at least the 16th century, when they were routinely used to track ship cargo movements. Back then, it was pretty basic: An inventory check and the signatures of the shipper and carrier.
Today, the general idea is the same, but with all the various modes of transport, warehousing, and distribution (not to mention evolving technology), the particulars are quite a bit more involved.
In recent months, logistics industry watchers have seen demand for warehousing close to major ports surge, driven by the tsunami of e-commerce demand and flood of container imports. That’s made it tougher – and more expensive – to find storage space from New York to Los Angeles. Bloomberg reports these demands are unlikely to abate anytime before next year, at the earliest. The good news is many companies may find solutions in working with Ohio warehousing & distribution firms that are strategically located and connected.
Both logistics service providers and real estate companies were quoted by The Wall Street Journal as saying the fierce competition for warehousing space near port cities has pushed warehouse costs so high that many companies have been compelled to scour neighboring regions (including in the Midwest) to serve shippers’ needs. Northeast Ohio has long been a prime, strategic hub for warehousing and distribution.
The demand for industrial space – inland and around the ports – is likely only to rise in the coming years. Nationally, it’s accelerated the last few years thanks to the rapid rise of e-commerce, which relies more heavily on Ohio warehousing and distribution versus retail space. Storage space rates in some regions have doubled just in the last year. The pandemic exacerbated that trend, and shows no signs of abating.
If your current, in-house Ohio warehousing and distribution practices are already taxing your time and resources, it may be time to take another look at outsourcing with a Cleveland 3PL. “3PL” stands for “third party logistics.” A dedicated 3PL warehousing provider does more than simply give you a place to store your stuff. It offers opportunity for dynamic companies to access a broad range of supply chain & logistics services and expertise.
If you’re seeking affordable Cleveland warehousing space, you might consider teaming with a third-party logistics (3PL) company. Not only will a 3PL be more likely to have a central warehouse location in an increasingly competitive market, it can also handle receiving, storage, inventory control, and reverse logistics with optimal efficiency.
Warehousing is critical for moving goods safely through the supply chain. But warehouse space competition has dramatically impacted industrial rents over the last year. Retailers and logistics firms are routinely paying a premium to lock down the most advantageous spots. CBRE Group Inc. reports industrial rents in 58 U.S. markets were up almost 10 percent in the first five months of 2021 compared to last year. Demand was largely driven by the surge in e-commerce that occurred when pandemic-related lockdowns closed many storefronts, keeping people at home and shopping for goods online.
But even as restrictions have eased, the public and businesses have continued their online ordering habits – along with their expectations for next day or even same-day deliveries. CBRE estimates more than a quarter of all retail sales in the U.S. will be facilitated by e-commerce by 2025. Meanwhile, suppliers stung by the pandemic shortages are trying to guard against a similar scenario by ensuring they have enough on hand to meet a sudden demand spike. That inventory has to be safely stored somewhere – and ready to be moved at a moment’s notice. Select sites in regional hubs near highways and closer to final destinations can dramatically reduce transportation costs.
As the Wall Street Journal reports, this demand for warehousing is likely to create a similar situation to what we’ve seen with the housing market, with limited supply and fierce competition for warehouse properties in strategically key locations. But available spaces – particularly larger buildings with higher ceilings and ample parking lots near urban centers – have become more scarce in recent years.
For many Northeast Ohio companies, the expense of Cleveland warehousing is a considerable one when determining operating budgets. Prices can swing significantly, depending on the type of facility and services one needs. What we can confidently say is lots of businesses don’t require an entire warehouse dedicated solely to their operations. That’s why it often makes sense to partner with a 3PL, one with adequate space, value-added services and the best rates.
Supply chain optimization is all about getting customers what they want, when they want it and spending the least of money possible to do so. However, if your inventory is inaccurate, there will come a time that a warehouse worker will go to pick a SKU for an order, and it won’t be there – or there won’t be enough. Working with a dedicated Cleveland 3PL helps ensure that you aren’t losing time and money to avoidable inventory inaccuracies.
Third party logistics providers (3PLs) like On Time Delivery & Warehouse continually evolve their service offerings, not only to set ourselves apart in the marketplace, but also to meet increasingly rigorous customer demands. 3PL operator customers trust us to manage numerous functions, including warehousing, trucking and overall supply chain optimization and management.
As noted by research published in the International Journal of Recent Research in Commerce Economics and Management, outsourcing inventory management allows a company to:
- Maintain their focus on core competencies.
- Broaden competitive advantages.
- Enhance differentiation in the marketplace.
- Avoid outlying, resource-intensive tasks.
- Reduce logistics and carrying costs.
Working with a Cleveland 3PL provider that can capably manage inventory means entrusting the company’s most valuable assets to a third party. But this also assures peace of mind. They likely recognize that poor inventory management is the root of many operational problems, missed sales, lost time to perform reconciliation and shrinkage. That means it must be given high priority. Doing so, however, is a significant challenge, particularly when the company is responsible for maintaining numerous items of inventory for multiple clients in the same place. A third-party logistics provider already has the resources and experience with best practices.
Some of the factors that result in inventory inaccuracy include:
- Poor store records or documentation.
- Manual documentation and records posting, leading to long processing times and increased odds of misplacing figures or making a recording mistake.
- Keeping inventory in the wrong place.
- Errors in inventory transaction.
- Physical inventory is either stolen, damaged, expired or spoiled.
A deal with a warehouse club store, such as Costco, BJ’s or Sam’s Club, can mean big things for your business. Getting the packaging right is a top priority. Your company must comply with the wholesale store’s specifications for packaging – or risk losing the partnership. Our Cleveland warehouse club packaging professionals can help.
Having a Cleveland contract packaging team working for you is especially important when you consider that primary wholesale clubs are constantly updating their expectations for supplier packaging. These can include evolving requirements for retail-ready designs, innovation and reduced environmental impact. You need a packaging plan that not only meets the standards, but is adaptable.
What’s the difference between a tire and a tin of tomatoes? Ok, a lot – especially when it comes to inventory storage and shipping requirements. Tomatoes, like all foods, skin products, medicines, vaccines, veterinary supplies and medical devices made or sold in the U.S., are regulated under stringent safety rules and guidelines set by the U.S. Food & Drug Administration for storage and shipping. The FDA is responsible for assuring the safety, efficacy and security of many human and animal products. For companies that sell these goods, FDA registered warehousing is essential to ensuring both regulatory compliance and customer confidence.
Recently, a new report indicates the global refrigerated warehousing and storage market (which includes blast freezing, tempering and modified atmosphere storage services) is expected to grow from $112 billion in 2020 to more than $164 billion in 2025. This growth is driven by several factors, including consumer demand for quality manufacturing and transparent sourcing, as well as companies restructuring their operations in response to the pandemic.
As longtime providers of FDA registered warehousing in Cleveland, we’re familiar with industry-wide efforts over the last decade to improve protections of temperature-controlled consumer products for packaging, processing and storage. Some measures have included onboarding better sensors, data logging and RFID devices. Not only does this help improve supply chain efficiency, it also helps reduce unnecessary losses and the potential for contamination.
Companies that make products requiring strict temperature controls and/or monitoring often outsource these responsibilities to 3PL warehousing companies for the benefit of operational costs, greater flexibility, improved efficiency and logistics expertise.