The remarkable growth of some of the biggest players in the sharing economy, most notably Uber and Airbnb – which have a collective worth of over $50 billion – is expected to disrupt different industries to some extent, in this case the taxi and hospitality industry, respectively.

Unlike traditional businesses that take years to create networks of both intellectual and physical assets on a national or international level, business that use the sharing economy strategy are built on consumer resources.

The fact that businesses like Uber don’t own any of the assets means that they don’t have to allocate their returns to asset acquisition, maintenance, or disposal, which makes scaling so much easier. Just to emphasise this point, Uber is currently available in 55 plus countries, and has recently ventured into business delivery fulfilment and food delivery – all in 7 years.

There are some new ventures that are trying to apply the sharing economy concept in the warehousing and logistics landscape. Flexe, for instance, is using the Airbnb model of renting extra space for short-term storage/warehousing purposes.

Disruption or Destruction

For product shipping, established businesses in the industry like FedEx and UPS build large and extensive networks to enjoy economies of scale and growth. This is a $1.25 trillion industry, which means that the logistics sector contributes 10 per cent of the nation’s GDP. This industry is large enough to accommodate new entrants in the space – whether they are multi-million or even billion dollar businesses, but the big players will still feel an impact.

One company applying the economy sharing model in logistics is Flexport. This company operates as a freight forwarder, navigating the assortment of shipping options that a client faces when shipping merchandise across borders.

In the conventional setting, the trader would have to find reliable shippers, sign multiple contracts, and go through a pile of paper documents. Flexport’s model seeks to simplify this process, so that shipping merchandise oversea is as simple as hiring an Uber and paying just what you owe.

The company offers a platform where different carriers display their services, allowing traders to manipulate different variables from the comfort of their home or office until they find a suitable arrangement. Shipping businesses also benefit from listing on the platform. They can respond faster to demand by easily changing rates and timelines to fill out lighter schedules, allowing them to convert excess resources into revenue.

Flexport has reported remarkable growth in its first two years, with the founder claiming 25 per cent revenue growth per month, as more customers learn and appreciate the transparency and simplicity offered by the platform.

At the local level, where customers don’t have to rely on third party logistics services when they need to haul something, Uber, Flexport, or Flexe can have a dramatic impact on the way business is done. Third party logistics businesses will have no option but to get listed on these services and compete for customers.

On the other hand, the appeal of third party logistics is in efficiency, reputation, and credibility, which will take time to be established with a Flexport business model. Timing is a critical factor in logistics especially at the local and regional level, where third party logistics excels.

The most likely scenario is startups like Flexport becoming platforms for conventional shippers and third party logistics companies to plan routes and combine trips for optimisation, essentially replacing the current logistics software systems.

When it comes to the construction industry, the workflow factor is important because it will impact your bottom line for better or for worse.

You need the sort of tools and strategies that will help you to optimize construction site workflow so that you can focus on what you do best without having to be concerned with issues relating to materials logistics. The right third-party solution will ensure that your materials are delivered on schedule, are stored in a secure location off-site until you need them and are safely delivered to your site when you require them. Whether you’re working on a hotel project south of the border or a recreational center across town, workflow matters.

So read on to learn more about how to improve construction site workflow. You might be surprised at how much benefit you can get by simply making a few prudent changes to how you oversee your project.

Understand project risk/complexity issue

Keeping on top of workflow at a construction site can become a monumental task if you have to manage one project team, let alone multiple project teams – with each team accountable to stakeholders. While it is technically feasible for different teams to do their own workflow management at the construction site, such a strategy is prone to breakdown. The reason for this is that any mistakes made when different teams do their own workflow management on the same site could result in serious mistakes that lead to anything from cost overruns to increased work to compensate for lost time. So, if there are multiple teams or even if there’s only one one, it’s important that they all work together to ensure that everyone adheres to an agreed upon workflow process. When all parties understand the project scope and complexity, they can complete the project on time and on budget.

Single platform

One way to keep everyone at the construction site on the same page is to use a single platform that can automate management of the project workflow. Using a centralized platform will ensure that all parties know exactly what they are responsible for and will help to keep all parties on track.

Garbage and debris removal and disposal

Nothing clutters a construction site and impedes the work process as much as debris and garbage that is left on the site. In order to avoid this scenario, companies can either hire a third party to take care of the removal and disposal of garbage and debris or do it themselves in a responsible manner. This will definitely improve workflow at a construction site.

Storage / warehousing solution

Garbage and debris can clutter a site – and so can equipment and materials needed for the project. You can improve workflow at your construction site by reaching out to a third party service provider that offers storage and warehousing solutions. With such options, you’ll be able to to keep your equipment and materials in a safe location when they’re not needed. For instance, you might not require certain equipment or materials during the early stages of construction projects, so having somewhere to keep them securely stored until they’re needed will provide precious space and facilitate the orderly accomplishment of the project.

On-site delivery

When it comes to getting projects done on time, you want equipment and materials delivered to the construction site on time. You can improve workflow at your construction site, therefore, by ensuring that products you need are available as needed. This will save you precious time and allow you to dedicate your energy to completing the construction project on time. Signing up with the right third party will ensure that there are no delays attributable to late deliveries.

Mobile

With the widespread use of mobile devices such as smartphone and tablets, you can benefit by incorporating this sort of technology into your plans. For instance, project managers could use their mobile devices to find information relating to, among other things, contract information, project milestones and project updates. Essentially, any member of your team could use mobile devices logged into the cloud to more efficiently carry out their respective duties.

You can definitely improve workflow at construction sites with the above tips. Anything that impedes workflow can delay projects, which in turn can lead to unexpected additional expenses that you might have to shoulder. There are many things that can go wrong if you don’t plan accordingly – that’s why third-party logistics is crucial to construction site workflow. You’ll be able to focus on your core competencies while the third party helps to ensure nothing slips through the cracks. So put the aforementioned recommendations into practice, and you’ll be able to improve workflow and complete your construction projects.

One of the best ways to improve your corporate bottom line is to get supply chain costs under control, and fortunately there are some pretty straightforward things you can do to achieve this objective.

Before you get into a cost-cutting frame of mind, however, you need to understand where to focus because making the right cuts in the right areas will ultimately lead to the greatest returns.

What follows is a rundown of the 10 best ways to reduce supply chain costs — and to increase your profits.

1. Make Better Use of SpaceMaking the most of the space you have will save you money at the end of the day. As you no doubt already know, storing inventory and supplies in your warehouse comes at a cost. Assess whether or not you’re making the most of the space you have. You just might discover that you could save some money by finding a space that’s more in line with your actual needs.
2. AutomateAutomating processes in your warehouse isn’t part of some fad or shady trend. It can actually help you to accomplish your goal of reducing supply chain costs. Have a professional come in to do an assessment of your operations so that you can get suggestions as to how you can automate your operations to make things more efficient.
3. Streamline Ordering ProcessYou need to make your ordering process as efficient as possible. This means at least a couple of things. Use a single software package for completing requisitions or else you might encounter situations where employees using different applications end up ordering too much of specific products or inventory supplies. Another thing to keep in mind is that you need to implement an approval process so that nothing gets ordered without the consent of designated officials.
4. Monitor Customer DemandOne of the ways you can reduce supply chain costs is by regularly looking at client demand patterns to see whether or not something needs to be tweaked. You may find that patterns change from month to month or from season to season, and you can use this information to make more accurate supply ordering decisions.
5. Package WellThe better you package your products, the less likely your products will be damaged when shipped. Ensure that whoever is responsible for this function properly packages and stacks your product so as to avoid, or at least minimize the chances of, damage.
6. Consider the LinksAssess all links in your supply chain. In order to get a firm grasp of what you need to overhaul or to tweak, you must come up with answers for questions such as the following:
   • What can possibly be eliminated?
   • What can possibly be improved?
   • What can possibly be changed to enhance overall efficiency?
7. JIT Inventory ManagementConsider the benefits of implementing a JIT (Just In Time) inventory management system so that you can order and receive inventory on an as needed basis. This will reduce your inventory carrying fees, safeguard against write-downs attributable to dips in demand and get rid of overhead stemming from excess inventory.
8. OutsourcingOutsourcing is one option you can consider if you want to reduce supply chain costs. Of course, you’ll need to conduct proper due diligence to ascertain whether or not service providers under consideration have the ability to provide enough of a productivity and efficiency benefit to justify your out-of-pocket expenses for such services. Under the right set of circumstances, an outsourcing arrangement can lead to substantial savings and a property functioning supply chain.
9. Measure PerformanceEven the best strategy will fall flat if you don’t have a way to measure performance. Put another way, you’ll have a hard time determining how much, if any, money you’re saving if you don’t have a sense of how much money you’re spending in the first place. Select critical performance indicators and gauge how you’re doing compared to your goals.
10. House in OrderYou must ensure that your in-house operations are working properly and that there are no problems internally that could adversely impact your supply chain. So be sure to carefully assess your internal operations in order to determine whether or not changes need to be made to optimize the performance and efficiency of your supply chain.

It is definitely possible to reduce supply chain costs, and the 10 suggestions above will get you started down that path. You could very well be a few tweaks away from running an efficient supply chain, and you owe it to yourself to critically and objectively assess your situation to determine what, if any, changes need to be implemented.

Improving your warehouse and distribution process isn’t necessarily as easy as it might sound since any course of action needs to take into account variables such as your products, staffing levels, scheduling and third-party vendors.

What this means is that your first order of business is to figure out the things that impact your warehouse and distribution process in the first place so that you can then determine how to go about making the process more efficient, productive and profitable.

What follows are 5 tips for improving your warehouse and distribution process. The first tip is definitely a game changer.

1. Automation

   In this digital age, you simply can’t ignore the power of warehouse automation or warehouse management software. For instance, at 3PL, we offer warehousing and distribution services throughout North America, and all warehouses are fully equipped with automated transportation management systems that can help you track and trace shipments online.

2. Mind Your Metrics

   In order to improve your warehousing and distribution process, you have to understand the metrics you will be using to figure out productivity, what baseline you’re beginning with and what your target is. A word of caution: When you set about figuring out which metrics to track, don’t go overboard. Choose a handful of metrics to track and follow them religiously rather than choosing a whole bunch and failing to keep track of all of them adequately.

3. Get Employees Involved

   Before making any drastic moves, you should talk to employees working in the warehouse to solicit their ideas and to get their feedback. Since these workers have their boots on the ground, so to speak, they may provide suggestions that might not have occurred to you otherwise. Moreover, employees are more likely to buy into the program when the solution incorporates some of their own ideas.

4. Set Vendor Policies

   You can get your warehouse and distribution process working like clockwork if you put together vendor compliance rules that cover, among other things, quality, packaging, purchasing terms and delivery time guarantees. When you have such a policy in place, you’ll be able to gauge how well your vendors are performing in an objective way.

5. Review and revise

   One thing you absolutely must do is assess your strategy periodically via post mortems to see what works, what needs to be tweaked and what must be overhauled. If you continue to do this, you will reduce the risk of complacency.

It definitely is possible to improve your warehouse and distribution process, and the 5 tips above will get you on the right path.

Freight costs account for a large portion of your company’s expenses and with rising fees, you’re likely looking for cost-saving options. As your company grows, your operations will evolve alongside it and there are many resources and tips you can use to reduce freight costs and save you time. Whether you’re shipping internationally, nationally or both, it’s important to do your research and find the best options for you and your company. Ultimately, you’ll be able to save time and money by implementing some simple changes.

Check out the 10 tips below for reducing freight costs:

1. Choose the best mode of transportationThis will depend on the type of goods and services you’re transportation and the travel distance, however it’s important to know which will be most cost-effective. Ocean shipping is often cheaper than air, especially if you’re shipping internationally. If you’re shipping closer to home, rail is typically less costly than trucking. Knowing transportation costs will help you to understand the best choice for your company based on budget and deadline.
2. Try hybrid transportationYou can use a mix of transportation if necessary. Combinations of air, ocean and ground transportation can prove to reduce transportation time all while reducing cost. You can have the best of both worlds. If air shipping is proving to be too costly for you, and you’re worried about the time it will take for inventory to ship via the ocean, a hybrid transportation plan might be the best choice for you.
3. ConsolidationConsolidating goods or services from multiple suppliers in one country might cost you a bit more time in transportation; however, it might be worth it from a costs standpoint. Many smaller shipments, or less container load shipments (LCL), can also be consolidated into larger shipments, or full container loads (FCL) to provide additional cost savings.
4. Supply chain visibilityUnderstanding each level of your transportation chain from supplier to customer will help you to better pinpoint inefficiencies and cut excess costs. As well, you’ll be able to react more quickly to problems as they are occurring, saving you time and money in the future.
5. Be sure to understand international outsourcing costsIf you’re shipping goods or services from overseas, you could end up facing a variety of costs including duties, brokerage, carrying costs and more. What might have started out as the least expensive option is now rising your freight costs. Buying inventory closer to home might be a more cost-effective solution for your company.
6. InsuranceYou’ve spent time cutting back on freight costs. However, your efforts might be wasted if your inventory isn’t insured. Ensure your supplier’s insurance is up to date or that you have obtained the proper insurance to fit your inventory. As well, it’s important to note what your insurance covers so that you don’t spend extra money on shipping premium goods and services.
7. Automate where possibleAutomating certain processes and procedures will prevent errors, reduce paperwork and shorten or prevent delays, such as those at border crossings. Doing so will save you money and time, as well as mitigating risks associated with damaged inventory or invoice errors. Performing necessary tasks manually can take up your time and resources.
8. Understand express shipping costsIf you experience late shipments due to an issue or error, your company will likely ship that inventory express or priority. You can save money by determining which inventory are needed immediately and send the rest using a standard shipment method, as opposed to shipping all items as high-cost express or priority.
9. TariffsIf you’re shipping internationally, being knowledgeable about tariffs can help to save you money. For example, non-tariff trade barriers are set in place to reduce sweat shop labour, and crossing these barriers can cost you. However, you can also manufacture products that fall under classification duty rates and are eligible for special trade programs.
10. LogisticsUsing a third party logistics service can insure you shipping procedures and shipping patterns are fully analyzed and you receive ultimate supply chain management. This can significantly reduce costs and save you time. As well, the insights you’ll achieve from using a third party logistics service will help you to better plan the economic future of your company.

Freight costs are a significant part of your company’s expenses, so it’s important to keep the above 10 tips in mind to maintain your competitive edge in your market. Choosing the best mode of transportation for your company and inventory, consolidating multiple suppliers or loads, automating certain procedures, improving supply chain visibility, researching outsourcing costs and tariffs and adding proper insurance are all ways to help you save money. However, having a third party logistics company can help you to better grasp the day to day procedures of your company’s freight and ensure you can get focus on doing your job.

Invoicing is an important part of running your business smoothly. However, inaccuracies and errors can cost you and your company money and time. Common invoice errors – that all organizations suffer from – can include incorrect purchase order, shipper or carrier number, incorrect billing address, missing contact information and incorrect charges or date. If you’re shipping internationally, these inaccuracies could mean further costs due to exchange rates.

Auditing invoices before and after their approval will prevent issues such as double-billing or overcharging, but there are some other tips to keep in mind. You can free yourself from correctional paperwork and extra charges, such as fuel surcharges, by reducing or eliminating invoice errors.

You can reduce invoice errors by keeping the below information in mind:

Third-party auditing

Introducing a third party audit and analytics specialist will ensure invoices from vendors are 100% accurate. Invoices will be taken care of and paid on your behalf so you can focus more on doing your job and less on monotonous tasks. Ultimately, you’ll be able to reduce costs and save time.

Standard invoice

Using one standard invoice for all vendors will reduce confusion. You should clearly mark each document as an invoice and include a unique reference number, as well as the date of issue. You’ll also need to include value added tax numbers and any contact information for the supplier and customer. As well, a description of the goods or services being shipped and the weight and volume of freight should be on the invoice. Lastly, you’ll need to include where the freight came from and where it’s going, as well as total charges and method of payment.

Invest in the right technology

Using auditing tools and technology will allow you to easily access your invoices and quickly make any needed changes in your own system. This will also allow you to view your invoices processed by the date or customer, as well as providing you with the ability to track orders and gauge customer interest. As well, you’ll be able to use this data to better visualize short and long term goals for your company.

Not only will you save money and time by using a standard invoice for every vendor, but you’ll also be investing in relevant technology that will allow you to visualize data from your invoice history.

Streamlining your company’s operations can improve efficiencies, reduce costs and increase your organization’s growth. In a competitive market, it’s crucial to stay on top of your operations so you can better serve your customers. The first step is to analyzing your current operations and decide on an appropriate plan of action. However, you should also consider other aspects of your operations, including choice of supplier, outsourcing, cutting back on costs and paperwork, upgrading your systems, automating where possible, increasing collaboration and creating a positive work environment for your employees.

There are many benefits to streamlining your company’s operations that you might not have considered, including:

• Return on investment
• Increased accuracy and reduced errors
• Accessibility to all areas of your company
• Increased financial control

Check out the 9 tips below that will help you to better streamline your organization’s operations.

1. Decide on the areas you want to improve

   Start by pinpointing the areas of your operation that require the most improvement or that have the greatest potential to bring in more revenue. Once you know your organization’s short and long-term goals, you can begin to set targets and deadlines and explore each phase of the process in great detail. Consult with necessary parties to ensure you’re not missing any important information. You should also be knowledgeable about the root causes of these problem areas so you can better address and prevent them.

2. Use the Top Suppliers

   Your suppliers should be the best in their industry and meet the high standards set by your organization. Using lower-grade suppliers can lead to inefficiencies such as errors or damaged products. You’ll also want suppliers who will communicate effectively.

3. Outsource where possible

   Many businesses are better at handling the areas of your operations that require specific attention. By hiring an outside experienced professional, you’ll be reducing costs and improving efficiency. Outsourcing your supply chain management, warehousing and distribution, cross-border shipping and more, will greatly benefit your organization. Outsourcing allows you and your employees to focus on the core of your business, ensuring you remain as competitive in your industry as possible.

4. Cut back on costs

   Review your operations and find the places in which you’re overspending or losing money. These areas or departments of your business could be detrimental to your operations and cutting back will help you to better manage and achieve your company’s future goals. A supply chain analysis will help you to better pinpoint these areas.

5. Use better technology

   If you’re using outdated systems and technology, it’s time to upgrade to save yourself time and money. Staying up to date is also a preventative measure that will ensure your company won’t become a victim of costly issues such as data corruption. However, updating technology can often lead to lower productivity among employees. To mitigate low productivity you can match your short and long term technology goals to your business objectives.

6. Reduce paperwork

   Reducing the amount of paper you and your employees do will quickly streamline work flow. Paperwork can pile up and lead to wasted time, ultimately causing inefficiencies in your business. It’s important to understand why the paperwork is needed and where it goes, as well as what it adds to your procedures and how important it is to your organization.

7. Create a positive work environment

   If your company’s workflow isn’t streamlined, it’s not only your operations and revenue that are affected – your employees could also be suffering. Retaining your employees with effective operations will ensure you keep productive workers and don’t waste money and time dealing with a high turnover rate. Employees appreciate reliability and communication, however you should also be hiring the best employees who are capable and will improve workflow.

8. Automate certain procedures

   Automating certain necessary procedures will reduce redundancies and repetitive tasks. Certain activities and services can be simplified by putting the proper technology in place. Also, you’ll be reducing the risk of error and clarifying the duties of your employees.

9. Increase collaboration

   Increased collaboration and communication across all areas and departments of your business will greatly improve efficiency by ensuring all employees, suppliers, customers and so on are available interactively. Some ways to improve collaboration across departments include calendaring, videoconferences and to name a few.

Using the right technology and implementing an effective plan will ensure you’re saving money and keeping your customers are happy – as well as providing you with a competitive edge. Using the above 9 tips will help you to improve efficiency in all areas of your business. Set your short and long term operational goals and follow through with top employees and suppliers, efficient and automated procedures and eliminated redundancies. An operations audit can help you to ensure your company is working as smart and effectively as possible.

You can’t run a business blindly. Supply chain visibility is crucial to the success of an organization. However, lack of synchronization in workflow often occurs when the individuals in an organization can’t fully grasp and comprehend the activities and ongoings one level below or above their own place in the supply chain. But it’s possible to increase visibility and transparency across every stage of the supply chain. Create opportunities for individuals in various departments to collaborate and share ideas. There are also a variety of tools and technology that can make it easier to improve your supply chain visibility. Here we examine a variety of factors that can help in this process:

Reduce risks and costs

Supply chain visibility will ensure there are no interruptions in your processes. You’ll be able to quickly respond to any needs throughout the chain, such as redirection of supply. Increased visibility will ensure you can re-evaluate areas of inefficiency and in turn reduce risks such as damaged products and mistakes. Supply chain visibility has been proven to provide a return on investment. As well, companies that offer supply chain management can work with you to find a reliable and cost effective service plan.

Improve performance

Enhanced supply chain visibility will help you to better track your performance expectations and estimate future demands, ensuring you can meet your future goals. Optimizing your performance will open communication among those throughout the supply chain. As well, supply chain visibility will ensure you’re keeping pace with changes in regulation around transportation. Utilizing the latest technology in supply chain management can ensure you stay on top of each task and achieve an analyzable performance.

Identify problems

Increased communication as a result of supply chain visibility will help you to see where gaps exist in your system. Sharing information between departments and organizations can provide an overall view of the entire process. In a competitive market, customers are less likely to tolerate delivery or product errors. Supply chain visibility is crucial in preventing order errors and will prevent customers from taking their business elsewhere.

Supply chain visibility ensures you’re knowledgeable about every aspect of your inventory and allows you to better help customers by improving performance and reducing errors. Putting in place the right infrastructure can help you to achieve better supply chain visibility and therefore reduce costs, improve performance and identify problems, ultimately improving your reputation and growth. If you’re not sure where to start, look to an audit and analytics specialist who can analyze your current supply chain and implement a plan that suits your organization.

A seamless logistics process can help companies improve productivity and reduce their supply chain costs significantly, but many organizations are held back by their vendor contracts. It’s an area in which today’s leaders are now taking a proactive stance, and within this latest post we’ll take a look at why your organization must audit your vendor contracts to achieve optimal logistics performance.

Identifying Volume Order Opportunities
One of the key benefits of the auditing process is that it empowers organizations with the ability to identify volume order opportunities. By auditing their vendor contracts, they can determine how often they order from specific companies and how large a volume of business they conduct with companies over a set period of time. They can then pinpoint their order demands over a long period and complete bulk ordering to minimize expenditure.

Consolidating the Payment Process
When auditing their vendor contracts, companies can find ways to reduce the complexity of the payment process. For example, a firm might have built a specific, multi-step payment structure before a period of growth. They may now have the resources to automate the payment process and minimize their administrative work, allowing them to allocate more resources to other areas of the logistics process.

Eliminating Overcharges and Duplicate Billings
Simple mistakes can have high costs within large contracts. Working with large vendor accounts, administrators can easily make a typing mistake or duplicate an invoice. Administrators might also miss overcharges on their accounts. This can lead to the organization overspending by thousands of dollars per year. The ideal contract audit tool can simplify contract oversight and pinpoint potential billing errors before they impact the company. These tools can also reduce duplicate billings, and help the organization retain strong relationships with their clientele.

Preventing Potential Legal Challenges
Many companies have become embroiled in legal issues and fined as a result of improper payments made by vendors on their behalf. This can lead to a loss of faith in the company, and a long, drawn out investigation that impacts the firm’s productivity in the long-term. A comprehensive and flexible audit process helps analyze vendor contracts for potential legal issues and helps protect the organization against damaging cases in the future.

By auditing their vendor contracts using the latest marketplace tools, organizations can limit their logistics costs, streamline their service to customers, and protect their brand for the long-term. To learn more on the benefits vendor auditing can offer your firm, speak with our market specialists today!