Category: WAREHOUSES & FULFILLMENT

WAREHOUSES-AND-FULFILLMENT

The Ideal Solution for Enhancing Logistics Efficiency in 2024

Introduction: Are you looking for clear inventory visibility? Are you striving to ensure order accuracy? A Warehouse Management System (WMS) can help your company gain operational insights and address the boom in e-commerce. The days of running a busy warehouse with spreadsheets and sticky notes are long gone. Today, the warehouse stands at the heart of the supply chain, linking inventory management, order fulfillment, and transportation management, ultimately leading to improved customer satisfaction.

The Importance of WMS: WMS serves as a central hub for a network of operations and applications. It integrates with order management systems, enterprise resource planning (ERP) software, labor management systems, customer systems, and transportation management to communicate with various carriers like full-truckload and less-than-truckload shipments.

WMS provides users with accurate visibility into their inventory levels and helps companies improve efficiency in managing the flow of inbound and outbound materials. It enhances operational efficiency and order accuracy, giving businesses a competitive edge as consumers increasingly demand fast and accurate shipping.

Adapting to E-commerce: WMS enables a more effective omnichannel fulfillment approach by drawing from the same inventory to meet the needs of both e-commerce and retail customers. It also facilitates fulfilling online orders through physical stores, ensuring that products are always available on shelves without stock shortages.

For third-party logistics (3PL) providers, having an appropriate WMS is crucial to meet the growing demands of both B2B and B2C fulfillment. Any competitive advantage that logistics providers can gain is valuable, allowing them to accelerate growth and meet customer requirements with speed and precision.

The Secret to WMS Success: Since WMS connects with various aspects of the business, adopting a new system can be a complex process. The journey starts by identifying the company’s needs and evaluating available systems to select the best fit.

It’s essential for companies to know the functionalities they require from the system and ensure they have the internal capacity to complete the project successfully. One of the critical factors for successful implementation is master data management. If inventory and customer data are inaccurate, the entire system may suffer operational issues that affect its effectiveness.

WMS: Flexible and Customizable: As companies expand, adding e-commerce channels and retail fulfillment, they need a WMS that is flexible and can be easily configured to meet the varying needs of different clients. The system is adaptable to various requirements, whether a company deals with electronics or food products.

WMS helps companies accelerate growth by meeting customer demands quickly and efficiently. It also allows businesses to track revenue through customized charges for each client, based on activities conducted within the warehouse.

The Role of Automation in WMS: Automation plays a crucial role in enhancing operational efficiency within warehouses. WMS utilizes technologies such as automated storage and retrieval systems (ASRS), autonomous mobile robots (AMRs), and smart conveyors. It can efficiently manage various tasks by automating processes that were previously manual, reducing errors and improving speed.

Conclusion: WMS is the ideal solution for improving operational efficiency and order accuracy in logistics companies. By adopting a flexible and customizable system, businesses can enhance their productivity and provide excellent customer service, enabling them to adapt to new supply chain challenges and seize opportunities to improve operational efficiency.

Fastcoo and the Vision for Development: Fastcoo has worked on developing inventory management systems comprehensively, aligning them with the growth and development needs of the logistics market. The system leverages the latest technologies to enhance operational efficiency and performance. This development is in line with Vision 2030, which aims to promote innovation and progress in the logistics sector in Saudi Arabia, positioning Fastcoo as a leader in providing smart and advanced technological solutions in warehouse management.

 

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admin October 1, 2024 0 Comments

10 Questions to Ask Before Starting Your Logistics Project

 

Before launching a logistics project, it’s crucial to consider several factors that impact its success. Whether you’re planning to establish a new logistics company or develop an existing one, asking the right questions will help you make informed decisions and set an effective strategy. In this article, we will present 10 essential questions to ask before embarking on any logistics project to ensure success and achieve the best results.

 

  1. What are the current market needs?
    Determine the actual demand for logistics services in the market.
  2. What scope of services will you offer?
    Define the services your company will provide, such as shipping, inventory management, and express delivery.
  3. What technology will you rely on?
    Choose the appropriate technological systems like shipment tracking and inventory management.
  4. What are the expected operational costs?
    Identify the key operational costs and how to achieve profitability.
  5. What is your financing plan?
    Develop a financing plan, whether through self-funding or investment.
  6. What is your future expansion plan?
    Consider how to expand geographically or add new services.
  7. What potential partnerships can you form?
    Seek strategic partners to support your operations.
  8. How will you ensure service quality?
    Set standards to guarantee quality and improve customer experience.
  9. What are the potential risks, and how will you manage them?
    Identify potential risks and establish contingency plans to address them.
  10. How will you attract customers?
    Develop a marketing plan to attract potential customers and increase market share.

 

These questions help you create a clear and effective plan for your logistics project and increase your chances of success in an increasingly competitive environment.

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admin September 7, 2024 0 Comments

Be at the top and operate error-free with Fastcoo

At Fastcoo, we take pride in delivering storage solutions that go beyond expectations. 🏢 Our V4 Warehouse Management System is designed to meet your needs with high efficiency and speed. ⚙️ This version is specifically tailored for those who seek the correct operational workflow in their warehouses. 📦 Our systems target companies of all sizes, particularly those handling orders ranging from a few to hundreds of thousands. 📈
Today, our systems stand out with this new version. Be at the top and operate error-free with Fastcoo. 🚀 We ensure a seamless and effective experience in warehouse management.

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admin August 25, 2024 0 Comments

From Concept and Logistics Expertise to Execution: fastcoo Journey in Developing Logistics Systems

From Concept and Logistics Expertise to Execution: fastcoo Journey in Developing Logistics Systems

Every success story begins with an idea, but turning that idea into reality requires a combination of expertise, knowledge, and the ability to adapt to market challenges. At fastcoo , this journey began many years ago when we recognized that the logistical challenges companies face daily demand innovative and practical solutions.

The Beginning:
Fastcoo’s journey started humbly, with the core idea focused on improving operational efficiency within supply chains. Over time, we realized that the logistics expertise we had accumulated through working with a wide range of companies provided us with a deeper insight into the ever-evolving market needs. Our mission was not just to provide solutions but to develop integrated systems that effectively meet those needs.

The Role of Logistics Expertise:
The logistics expertise we gathered over the years was the key factor in developing Fastcoo’s systems. Our deep understanding of the daily challenges in logistics operations, from inventory management and distribution to shipping and delivery, helped us build systems that could adapt to various conditions and operational scales. These systems were not just technical tools but logical solutions born from real-world experience.

Development and Execution:
After gaining a deep understanding of the market and its needs, we began transforming ideas into effective systems. Every step in the development of our systems was carefully planned to ensure the solutions provided could improve efficiency and reduce costs while maintaining the highest quality standards. This was achieved by combining logistics expertise with the latest technologies.

Sustainable Growth:
Today, Fastcoo is a leader in providing integrated logistics solutions. Our systems are built on deep industry knowledge and a continuous drive for innovation. Thanks to this approach, we have been able to exceed our clients’ expectations, contributing to their sustainable growth and enhancing their competitive edge.fastcoo 
journey from concept to execution is a testament to the fact that true success in developing logistics systems relies not only on technology but also on a deep understanding of the industry and practical experience. As we continue to develop and innovate, we will keep delivering solutions that make logistics systems more effective and efficient while maintaining the flexibility to meet the evolving demands of the market.

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admin August 25, 2024 0 Comments

Smart Lockers: Their Importance, Usage, and Global Development

What Are Smart Lockers?

Smart lockers are advanced storage units equipped with digital technologies that allow for the automated and intelligent management of their contents. These lockers rely on a combination of technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), smart sensors, and Radio-Frequency Identification (RFID) to provide safer and more efficient storage solutions.

How Smart Lockers Are Used

Smart lockers are utilized in a wide range of applications, including:

  1. E-commerce and Shipping:
    • Smart lockers offer logistical solutions for parcel delivery. Customers can pick up their parcels at any time of the day from strategically placed smart lockers. Once a parcel arrives, the customer is notified via SMS or email with a code to unlock the locker.
  2. Inventory Management in Companies:
    • Companies use smart lockers to store equipment and consumable materials. By using RFID technology, stored items can be tracked and managed precisely, reducing errors and saving time.
  3. Education and Healthcare:
    • In schools and hospitals, smart lockers are used to store medications, medical devices, or even textbooks. The smart system enables tracking items, ensuring security and easy access when needed.
  4. Fitness and Entertainment:
    • In gyms and entertainment venues, smart lockers offer secure storage solutions for personal belongings, allowing users to open and close lockers using smartphone apps or smart cards.

Global Development of Smart Lockers

The concept of smart lockers has significantly evolved over the past decade and has now become an essential part of the global technology landscape. Several factors have contributed to this development:

  1. Increased Demand for Contactless Delivery Solutions:
    • With the growth of e-commerce and the increasing importance of convenience and security, the demand for contactless parcel delivery solutions has risen, leading to widespread adoption of smart lockers by shipping and delivery companies.
  2. Expansion of Smart Infrastructure:
    • The proliferation of smart cities and smart infrastructure has led to the integration of smart lockers as part of systems designed to enhance daily life, reduce congestion, and save time.
  3. Advanced Technology:
    • The development of IoT and AI technologies has laid the foundation for smart lockers, allowing for more efficient inventory management and a smoother user experience.
  4. Expanding Commercial Uses:
    • Large companies and various sectors have begun adopting smart lockers to meet diverse needs, from storing equipment in work environments to providing innovative customer services.

Leading Companies in Smart Lockers

Thanks to ongoing innovations, some companies have achieved significant success in the smart locker industry, including:

  1. Amazon Hub Lockers:
    • Amazon was one of the first companies to adopt smart lockers on a large scale through its “Amazon Hub Lockers” service. These lockers provide users with the option to pick up their parcels at convenient locations. As of 2023, Amazon Lockers have expanded to over 4,000 locations across the United States alone.
  2. Parcel Pending (A Quadient Company):
    • Parcel Pending, acquired by Quadient, is a leading provider of multi-use smart locker solutions. The company has deployed over 2.3 million smart lockers across the U.S. and Canada, serving various sectors, including residential, universities, and e-commerce.
  3. Luxer One:
    • Luxer One is a leader in providing smart lockers for residential and commercial purposes. In 2022, the company saw a 35% increase in the use of its smart lockers across the U.S., with over 100 million deliveries recorded using its systems.
  4. Redbox Saudi Arabia:
    • Redbox is one of the leading Saudi companies in the smart locker industry. The company provides innovative storage solutions for both consumers and businesses, enabling them to receive parcels anytime and anywhere. Redbox is improving user experience by offering safe and fast services that meet the growing demands of the Saudi market.
  5. Omni Llama:
    • Omni Llama is a company specializing in developing and providing smart locker solutions used in shopping centers, residential complexes, and public spaces. These smart lockers allow users to securely and conveniently receive and store parcels and personal belongings. The company aims to provide smart solutions that align with technological advancements and meet local market needs.

Multiple warehouses and same-day delivery are crucial factors contributing to the success of companies in the increasingly competitive e-commerce market. By leveraging these solutions offered by Diggipacks, companies can improve delivery speed, enhance operational efficiency, and increase customer satisfaction. If you’re looking for a way to provide your customers with a unique and fast shopping experience, Diggipacks is the ideal partner to achieve this.

Finally

Smart lockers represent an innovative solution that effectively and securely combines technology with storage management. As they rapidly evolve globally, these lockers contribute to improving operational efficiency and providing more convenient and secure services to users. With ongoing technological advancements and increasing demand for smart solutions, the use of smart lockers is expected to become more widespread and integrated into various aspects of daily life.

 

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admin August 24, 2024 0 Comments

How Fastcoo Has Evolved in Logistics Systems and the Advantages of V4 WMS

How Fastcoo Has Evolved in Logistics Systems and the Advantages of the New V4 Inventory Management System

Fastcoo is a leading company in providing comprehensive logistics solutions, and its continuous development in this field is evident through the release of its new V4 inventory and order management system. This new version represents a significant leap in warehouse management, offering a range of features that enhance operational efficiency, reduce costs, and increase productivity.

Features of Fastcoo’s V4 Inventory Management System

Comprehensive and Analytical Customer Dashboard: Fastcoo’s new version provides a dedicated dashboard for customers, allowing them to monitor all their operations with analytical precision. This dashboard offers a comprehensive view of operational performance, helping customers make data-driven decisions.

Extensive Integration with Shipping Companies: The system supports integration with over 40 shipping companies, offering customers a variety of shipping options based on their needs. This integration helps streamline and expedite the shipping process, ensuring timely delivery of products to customers.

Support for E-Commerce Platforms: The system integrates with more than 8 e-commerce platforms, making it easier for companies to manage orders from various channels in one place. This integration helps unify and simplify operations, enhancing order management efficiency.

Fast Order Preparation, Handling, and Delivery: One of the key advantages of the V4 system is its ability to prepare, handle, and deliver orders to shipping companies within minutes. This improves customer experience and increases satisfaction by delivering orders quickly and without delay.

Advanced Automated Reporting: The system provides automated reports that help customers monitor all aspects of their operations regularly. These reports offer accurate information about inventory, sales, shipping company performance, and other critical data to improve logistics operations.

Returns and Damage Management: The system supports professional management of returns and damaged goods, facilitating companies’ handling of these issues without affecting daily operations. This feature helps reduce waste and increase operational efficiency.

Multi-Warehouse Management from a Single Dashboard: The system allows management of all warehouses through a single dashboard, making it easy for companies to track their inventory across different geographic locations efficiently. This feature enhances companies’ ability to expand and meet various market needs.

Fastcoo’s Evolution in Logistics Systems

Fastcoo has significantly evolved in providing integrated logistics solutions by focusing on enhancing inventory management systems to meet the growing market demands. Through continuous innovation and rapid response to changes in e-commerce and logistics fields, Fastcoo has become a leading company offering advanced solutions that align with global best practices in inventory and logistics management.

The release of Fastcoo’s V4 Inventory Management System represents a major step towards enhancing logistics operations efficiency, offering integrated solutions that simplify processes, reduce costs, and increase productivity. This makes Fastcoo the ideal partner for companies aiming to excel in supply chain management.

Which Large Companies Need These Systems and Why They Should Use Fastcoo’s Systems

Companies That Need Inventory and Logistics Systems from Fastcoo

Large E-Commerce Companies: Large e-commerce companies dealing with thousands of orders daily need a comprehensive system for inventory and logistics management. Fastcoo’s system helps optimize inventory management, accelerate order processing, and ensure accurate shipping operations, reducing errors and increasing customer satisfaction.

Retail and Wholesale Companies: These companies need a system to manage large quantities of products across multiple warehouses. Fastcoo’s system allows accurate inventory tracking, sales analysis, and rapid adaptation to market changes, helping increase efficiency and reduce operational costs.

Logistics and Delivery Service Companies: These companies rely heavily on an efficient system to manage their daily operations, including order preparation, shipping, and shipment tracking. Fastcoo’s system provides complete integration with numerous shipping companies and facilitates smooth delivery operations, enhancing competitiveness and ensuring reliable and fast service.

Multi-Branch and Multi-Warehouse Companies: Companies with multiple branches or warehouses need a system capable of managing all these locations from a single dashboard. Fastcoo’s system enables efficient management of each warehouse with data analysis and reporting to assist in strategic decision-making.

Why Large Companies Should Use Fastcoo’s Systems

Improving Operational Efficiency: Fastcoo’s systems are designed to enhance all aspects of inventory and logistics management, helping large companies speed up their operations, reduce waste and costs. With real-time updates and an intuitive interface, teams can easily monitor everything and make timely decisions.

Reducing Errors and Increasing Accuracy: Using Fastcoo’s systems, companies can significantly reduce errors in order preparation and shipping processes. The system automatically rejects incorrect orders and provides warning notifications for any preparation errors, helping maintain the company’s reputation and service quality.

Comprehensive Integration with Shipping and E-Commerce Platforms: Fastcoo’s systems’ integration with over 50 shipping companies and 8 e-commerce platforms allows companies to manage their operations from a single place easily. This integration simplifies processes and reduces the time spent managing shipments and orders.

Seamless Business Expansion: Fastcoo’s systems enable companies to expand into new markets easily, thanks to multi-warehouse management and comprehensive data analysis that helps identify the best locations and markets for expansion.

Advanced Reporting and Analytics: The system provides detailed analytical reports on performance, sales, and inventory, helping companies optimize their operations and maximize resource utilization. These reports assist managers in making strategic decisions based on accurate data.

Conclusion

Fastcoo’s systems are the ideal choice for large companies looking to enhance operational efficiency, reduce errors, and expand their business. With comprehensive integration and high flexibility, these systems allow companies to manage their operations smoothly and achieve sustainable growth in a competitive business environment.

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admin August 13, 2024 0 Comments

The Best KPI: The Probability of a Perfect Order

Perfect Order is a very important performance metric, which simply means what is going on in your business and how satisfied your customers are with the services you provide to them and the delivery of orders completely, correctly and on time is a very important key performance indicator, and it can be said. As the best performance measure, and in this article on  LOGSTIAT logistics solutions, we will explain what is meant by Perfect Order, and what the factors necessary to obtain a perfect order are.

What is a perfect order?

As we indicated in the introduction, the perfect order is one of the important metrics that reveal to you what is happening in your business and also explain to you the percentages of customer satisfaction with the services you provide to them.

And we can say that it is a measure to clarify the success of the business that you do, we call any order a perfect order in the event that an order has been delivered to the customer in a final, accurate and on time exactly, that is, without any errors or defects.

Consequences of Incomplete Orders

Incomplete orders will have many consequences, as:

  • Increase your business costs.
  • The need to give the customer a replacement item as compensation.
  • Loss of many deals and clients.
  • Decrease in your revenues and sales of your company.

Factors needed to obtain perfect order

There are many factors that will help you in getting a perfect order and the following are the most important factors that you can take advantage of:

Order Entry Accuracy

The first thing you will need to measure in order management to check the perfect order is the accuracy of entering orders into your systems. Of course, you receive more phone calls and requests from your online store, so are you entering them into your systems accurately?

In the event that your customers obtain high order entry accuracy, this means a decrease in error rates and thus an increase in the satisfaction of your customers, which will reflect positively on the performance of your company and your leadership as well.

Inventory Availability

One of the most important things that you should take care of measuring permanently is the extent of your inventory availability, the first thing you must take into account when a customer orders a product from you is that product available in that required quantity in my store? Thus taking care of gauging your stock availability will assist you in achieving a perfect order.

DIFOT service level

The level of service is measured by the ability of your warehouse management to carefully select the required product, then package it and prepare it to be sent to the customer on time.

If the level of service is low, this will negatively affect your organization and its reputation in general, meaning that a high level of service means achieving a perfect order.

The Transport Company’s DIFOT

When you succeed in delivering the transport company in full and at the agreed time, this is wonderful, and neglecting it and not paying attention to it or measuring it periodically will have serious consequences for you.

The Customer Acceptance Order

Do you have returns? Do customers refuse to receive their orders? Of course and in a large proportion there are problems with their requests.

And that makes them refrain from receiving the order, clients accept their requests if they are not damaged and also identical with what they actually requested.

Invoices Paid on Time

One of the most important factors that will help you achieve a perfect order is measuring how well your bills are paid on time, as you will need to gauge whether the invoices are paid on time or there is a delay in payment.

Assessing Your Performance

In order to be able to get the most accurate picture of your business performance, you need to evaluate your performance continuously and periodically, and if your ideal order rate is low, you must think about ways that will increase your performance so that you can reach the perfect order.

Righting the Wrongs

In order to be able to correct mistakes and avoid their recurrence, you will need to train your team to continuously improve your inventory, which will positively affect general metrics and not just achieving perfect orders.

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admin April 21, 2023 0 Comments

Fourth Party Logistic Model (4PL)

Third-party logistics services (3PL) as well as fourth-party logistics services (4PL) have a fundamental role in the supply chain, and there are differences between fourth-party logistics service providers (4PL) and third-party logistics service providers (3PL). Fourth-party logistics services (4PL) have greater responsibilities and thus help in a deeper and greater way to achieve customer goals, and in this article on  LOGTIAT logistics solutions we will show you all what you want to know about third-party logistics (3PL) as well as from fourth party logistics (4PL).

What is a 4PL?

It is one of the types of logistics services, and they are external sources for organizing and managing the supply chain of individuals, so the owners of factories and companies use those external sources, and they are the professionals to get a better management.

What do 4PL providers offer?

Perhaps the most prominent characteristic of the services they provide is their high level of control and accountability to a large extent; through them you will be able to obtain the highest level of effective management of your supply chain.

Once the fourth-party logistics service providers (4PL) are hired, they will then take control of all operations related to packaging, warehousing, etc., allowing the owners of these companies to control other aspects of their business, and the most prominent of their services are:

  • Shipping sourcing strategies.
  • Business planning.
  • Project management.
  • Logistics services.
  • Analysis of transportation expenses.
  • Carrier performance analysis.
  • Manage inbound, outbound and reverse logistics services.
  • Coordinating a broad base of suppliers
  • Capacity utilization analysis.
  • Inventory planning and management.

Advantages of 4PL

 

Here are the most prominent features that 4PL can provide to you

1. Manage your operations more broadly

One of the main advantages of 4PL services is the expansive management of your operations, as all shipping, distribution as well as warehousing is better handled.

2. Take advantage of information technology

As 4PL services depend on modern technology and software, along with automated systems that improve your communication and increase visibility in real time, as well as provide a lot of information.

3. Offer an endless number of solutions

4PL services are characterized by having a sweet-oriented approach, through the interest of service providers to design the solution first in order to meet the business requirements, and they have significant experience in managing the operations of shipping and distribution, and they provide a large number of IT-based solutions.

Disadvantages of 4PL

Despite the huge advantages offered by 4PL services, there are a number of disadvantages, which are:

  • Reduced ability to control implementation processes as service providers handle the bulk of implementation and logistics operations.
  • Relatively high cost, especially for small and emerging companies.

What is a 3PL?

They act as intermediaries between manufacturers and retailers. 3PL providers also offer a number of logistics services similar to those provided by 4PL, but the main difference is that they allow you to manage business in a greater proportion than others. Third-party logistics services do not oversee the entire supply chain management and organization processes.

Difference between 3pl and 4pl

The most prominent difference between 4PL services and 3PL services is that the first deals with the entire supply chain, and the second deals only with the logistical process, and here are a number of differences that highlight the difference between 3PL and 4PL services:

  • 4PL services are the most suitable form for large and medium companies, while 3PL services are more suitable for small and emerging companies.
  • The 4PL functions focus on the improvement and integration of the entire organization, while the 3PL functions are completely focused on the day to day operations of the company.
  • 4PL service providers provide a number of assets, trucks and warehouses as well, unlike 3PL who do not.
  • 3PL services focus on one-time transactions only. 4PL services are the complete opposite, as they seek to obtain great value through effective coordination of all activities.

Which one is right for your company 3pl or 4pl?

The process of determining which type of services is most suitable for you depends on the type and size of your business itself, so we find that if you own a small or medium-sized company, 3PL services are the most suitable option for you, which will give you greater advantages and will suit your budget greatly.

As for if you are a large company owner, 4PL services will be more suitable for you, especially if you are looking to expand the range of services in your organization, as they will help you in that better than 3PL services.

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admin April 21, 2023 0 Comments

4 Common 3PL Mistakes on Logistics Outsourcing Contract

Deciding to outsource logistics management or switch logistics partners is a scary thing, especially since in fact no one knows your product or customers better than you, but working with outside logistics sources can help you a lot in your business, especially since working with a 3PL partner It can give you time to focus on other, more important matters, such as the process of launching a new product, but unfortunately there are a number of mistakes people make when choosing a partner, and in this article we will show you 4 Common 3PL Mistakes on Logistics outsourcing contract.

What is third-party logistics (3PLs)?

If you hire an outside service provider for your logistical requirements, which service provider is called a third-party logistics provider, and in industry parlance, service providers are also referred to as 3PL.

Common 3PL Mistakes on Logistics Outsourcing Contract 

There are a lot of common mistakes people make in contracts; here are the top 4 common 3PL mistakes when making a contract logistics outsourcing:

1. Having clear expectations

and i should say right from the outset that through your rft your rfp process you should be in the latter stages of that sharing the contract that you want the 3pl to be signing it’s the power of the draft it’s your opportunity to lay down exactly what you want and how it’s all going to work there are still lots of companies that don’t have contracts it’s surprising they have a rate card which basically says you know here’s our rates for providing different services but no actual contract.

it’s very important to have a contract because hopefully you never need to refer it to it very much but if something were to go wrong at least you can pull that out and see what was agreed probably more importantly though i think you see the requirement for a contract is to set up expectations so at least you and the other party are sitting down going through all of the elements of the relationship and it kind of sets things straight so number one is clear expectations about what well service what are the service needs that you have what are the service targets that you have so certainly you want some kpis in that contract.

2. Cost management

just a quick recap the types of rate structures you might have are unit prices so you know it’s a cost per pick per unit dispatched per order dispatch per order delivered whatever that might be less common are cost plus contracts where basically.

the 3pl says look we’ll resource the contract and whatever the cost of that is you’re going to pay plus a margin cost plus can work sometimes when you really are not sure about volumes and things like that but i was I would always say to people go for a unit cost so you want your rate structure in there how you’re actually going to be paying for the service.

what i often like to do as we’re developing the contract and this would happen through the rfp or rft process is really to get the 3pl’s responding with what they believe their costs are in in a fixed and variable way so if you imagine all of the fixed costs let’s say in operating and  warehouse management there’s going to be the warehouse lease all of the all of the costs that are not impacted by the volume going through the warehouse so there’s going to be lease costs management overheads there’s going to be probably a base level of salaries and wages there’s going to be base level of maintenance so those are your fixed costs and then you’ve got the variable costs that rise and fall depending on the volume actually being processed through the warehouse.

so that could be additional labor overtime consumables all those sorts of things which are volume dependent i always like to see a contract costed with two buckets of costs the fixed and the variable and then quite often that allows you to actually put together a fee structure which says hey we’ll cover the fixed costs every month and then we’ll have a variable sort of unit cost to cover these other costs and that’s going to go up and down depending on volume so of course there’s many different ways to actually structure those contracts.

but that’s just an example of one so certainly number two cost management how are the rate structures going to work um talk about sort of rise and fall mechanisms so how will it be impacted by increases in labor costs and fuel costs and all those sorts of things, so  you know who’s responsible for losses.

So we’ll allow a certain amount of damage and loss but of course that wants to be a minimal amount so all of those things are in cost management.

3. Continuous improvement

Number three is continuous improvement because whilst you are setting out with a certain service and cost in mind you should be encouraging the 3pl to improve that service and cost over time as well so it’s not just a static thing you know we’re not just paying five dollars a unit now and in five years’ time it’s five dollars a unit plus cpi we want to see that cost coming down that unit cost and we want to see the service going up perhaps and this is where you can have all sorts of incentives with the 3pl so that they can be gain sharing and so on so, continuous improvement really important.

4. How do you manage the contract?

How are you going to manage the contract? you do not outsource warehousing and transport and sort of throw the task over the fence now for the 3pl or the transport carrier to look after it for you have to manage the relationship how will that be managed who’s going to be who’s going to be managing it how often will performance reviews take place and what’s the agenda for those all of that can be mapped out during the rfp and rft process and actually put into the contract.

so have clear expectations, make sure that you have cost management very clear in the contract, make sure you have continuous improvement and make for sure you have a very clear framework about how that contract is going to be managed Thus you will be able to avoid those common mistakes in logistics outsourcing contract.

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admin April 21, 2023 0 Comments

7 Key Warehouse Processes .. What are they?

Warehouse Processes is one of the most important support functions in organizations and companies; Because it plans and organizes the storage and maintenance of materials and supplies the customers or the main departments within the company with their needs in a timely manner to ensure the continuation of their work efficiently and without interruption, and in this article we will learn together about 7 Key Warehouse Processes.

What are Warehouse Processes ?

A warehouse is a commercial building for storing goods, and Warehouse Processes are used by manufacturers, suppliers, as well as exporters and wholesalers, and are usually large flat buildings in industrial areas, and the warehouse is provided with loading platforms for loading and unloading goods from trucks.

7 Key Warehouse Processes

 

Although all Warehouse Processes differ in the way each process is performed physically and controlled electronically, there are 7 main processes that all warehouses share, and below we will show 7 Key Warehouse Processes:

1. Receiving

Receiving means handling the products in a warehouse and on a specific system, and those products or items may be large or small, and one of the best ways to deliver the products is the (ASN) method, which means prior shipment notice. If the delivery service is using (ASN), operators can scan bar codes. For the shipment and receipt of goods or items from the order itself,

2. Put-Away

Good systems motivate employees, so if there is stock in preparation waiting to be transported to the storage location, the cleaners scan the barcode of those goods to be put away, and at this stage the system will direct the storage personnel to deliver the goods to the appropriate storage location.

When the products or goods arrive at their location, the operator will either allow the barcode of the goods or manually verify that the goods are in the correct place.

3. Picking

After the elements are received, they are downloaded and then picked, and this Picking may be separate or in a group, and in general there are two main types of selection, namely:

  • Basic selection: in which the selection is done for the first time and for the last time as well, where selection is made at the beginning on the packing table, then shipping and dispatching, so the first selection becomes the last also.
  • Secondary selection: selection is done for the second time, and after the spread of online sales and e-commerce, a large number of companies are conducting secondary selection processes largely.

With the increasing sales of items over the Internet, companies are increasingly installing picking devices on belts and walls, in order to handle the largest possible number of orders.

But in general, selection uses a large amount of resources, and smart picking systems and WMS are essential for large and complex companies in their operations.

4. Packing

Packaging is an extension of the selection process, which must be managed and handled with great care in Perfect order to ensure that orders will be complete and accurate. There are many ways in which goods are packed, and the following are the best rules by which you can reach a successful packing process, and they are:

  1. That the selected goods and products be traceable in terms of the location from which they were previously picked, with the importance of having the relevant usage dates, as well as batch dates and codes.
  2. The necessity to verify accuracy and quality assurance in the process through various verification processes.
  3. Attempting to merge the goods that were picked from multiple areas within the warehouse, while trying to manage the system more easily in order management to ensure the completion of the order.
  4. All goods must be packed according to volume, quantity, required temperature, value, as well as legislative requirements.
  5. The need for shipments to be also traceable through the system itself.

5. Dispatching

There is the so-called art of successful dispatch, an art that many companies are ignorant of, and which means the ability to prepare goods for timely departure for carriers to load their trucks. Therefore, the manager must balance the times of delivery of goods, as the arrival of goods too early or too late will result in a lot of chaos, so a large number of companies resort to picking and packing in waves in line with the delivery methods that have been identified, or types Transportation companies.

6. Returns

Returns are the most complex part of any business, so there has to be a defined process for recording the entire transaction accurately and reliably.

We find that every company wishes its returns to disappear, and due to the e-commerce revolution, the volume of returns is increasing for many companies, and there are a number of things that you must do when processing returns, namely:

  • When a customer returns goods, he must obtain permission from the Return Department, in which the item being returned and the reason for returning it shall be clarified as well.
  • The necessity that all returns can be tracked easily, through its invoice.
  • The company should set up a returns process so that it specifies in advance what to do with the returned goods.

7. Value-Adding

Added value is an economic term referring to the value of the transformation that occurred in a substance as a result of a specific production process.

Value added is also related to performing the work itself on a product, and the process of adding value can be more complex, especially when many different elements are combined to form a new product.

But with the tremendous development witnessed by the current era, and modern technical methods, systems have evolved to help complete the processes of adding value.

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admin April 21, 2023 0 Comments
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