Image source: Pexels | How to Optimize Your Stock With Ideal Storage Structures

Need help optimizing your inventory in the best possible way? Then, learn about some storage structures that can make a difference!

Inventory management is a critical activity for any business that deals with physical products. Therefore, maintaining a well-organized and optimized inventory can make the difference between an efficient flow of operations and a chaotic supply chain.

In this context, storage structures play a fundamental role. From pallet racks to bins, these structures are essential to maximize space, improve accessibility, and ensure the integrity of stored products. Learn more below!

Read also: The Ultimate Guide to Outsourced Warehousing for Business Growth

The importance of keeping inventory organized

Keeping inventory organized is vital to a company’s operational success. After all, a disorganized inventory can lead to a series of problems, such as difficulty in locating products, increased order processing time, losses due to expiration or deterioration of products, in addition to high operating costs.

Proper inventory organization allows for:

Better inventory control: facilitates counting and controlling items, reducing errors and discrepancies.

Reduced losses: Poorly stored products can be damaged or lost, resulting in losses. An organized warehouse minimizes this risk.

Agility in operations: A well-structured and organized layout allows operators to locate and move products more efficiently, speeding up order processing time.

Customer satisfaction: The organization contributes to fast and accurate delivery, which increases customer satisfaction and strengthens the company’s reputation.

3 main storage structures for your business

Choosing the right storage structures for your business is crucial to ensure that space is used efficiently and that products are stored safely and accessible. The most common structures are:

Pallet racks

Pallet racks are one of the most widely used storage structures in warehouses. They are ideal for storing large quantities of palletized products, as they allow easy access to products and can be configured at different heights, maximizing the use of vertical space. They are recommended for companies that handle large and varied volumes of stock, such as distributors and manufacturers.

Advantages of pallet racks:

• Facilitates direct access to each pallet, improving efficiency.
• Flexible configurations that can be adjusted as needed.
• Support for various types of goods.

Blocked

Blocked storage is mainly used for products that can be stacked on top of each other without damage. This structure does not require shelves, as the products are stored directly on the floor. Therefore, it is an economical and space-efficient solution, ideal for non-fragile and large-volume items.

Advantages of blocked storage:

• Maximization of storage space.
• Low implementation costs.
• Simplicity and ease of management for homogeneous items.

Bin

Bins are small compartments used to store smaller parts or high-turnover products. Therefore, they are ideal for storing items such as screws, electronic components, and other small accessories. Bins can be stacked or organized on shelves, facilitating separation and quick access to products.

Advantages of bins:

• A great solution for small products.
• Makes it easier to organize and separate small items.
• Can be combined with other storage structures to optimize space.

Inventory organization methods combined with storage structures

In addition to choosing the right storage structures, it is essential to implement effective inventory organization methods to ensure product turnover and integrity. The most common methods are FIFO, FEFO, and LIFO.

FIFO (First In, First Out)

The FIFO method is based on the logic that the first products to enter the inventory should be the first to leave. This method is important for perishable products or those with an expiration date. By using FIFO, companies ensure that older items are sold or used before newer ones, avoiding losses due to expiration.

Here you can use pallet trucks to make it easier to access older items and set up bins so that the oldest items are removed first.

FEFO (First Expired, First Out)

Similar to FIFO, FEFO prioritizes the removal of products with the closest expiration date. It is widely used in industries such as food, pharmaceuticals, and cosmetics, where the shelf life of products is crucial for quality and compliance.

In practice, it is possible to organize items according to their expiration date on the shelves of pallet trucks and keep the bins labeled with the expiration dates for quick identification.

LIFO (Last In, First Out)

The LIFO method is the opposite of FIFO, so now the last products to enter the inventory are the first to leave. Although less common, LIFO can be useful in situations where storage space is limited and products do not have an expiration date, such as in the construction materials industry.

To apply this method in practice, it is possible to use adjustable shelves on pallet racks to organize products so that the last ones are accessed first and to adapt the layout of the bins so that new items are placed at the front.

Count on 3PL Links!

3PL Links offers complete storage solutions for companies of all sizes and segments. With a modern infrastructure and cutting-edge technology, such as WMS (Warehouse Management System), 3PL Links guarantees efficiency in the organization and management of stocks, providing security, accessibility, and space optimization.

Whatever type of storage structure is required for your business, 3PL Links is ready to offer the best solutions. With years of experience in the market and a commitment to excellence, we are the ideal partner to ensure that your stock is always well organized and managed.

Find out more about 3PL Links’ storage solutions and optimize your stock right now!

The Ultimate Guide to Outsourced Warehousing for Business Growth | Image source: PxHere

When is the right time to use an outsourced warehouse? This guide will demonstrate when and how to do it properly. Continue reading to find out more!

To guarantee logistical success and operational effectiveness, it is imperative to make the investment in an outsourced warehouse. Any business’s ability to operate depends on its inventory management system, and in this instance, outsourcing is a proactive move made to get over logistical obstacles and concentrate on the business’s primary tasks.

Discover the telltale signals that now is the right moment to think about outsourcing storage in this article. Recognize how this choice can enhance your logistics operations, save expenses, and satisfy customers.

Read also: Top 7 Advantages of Outsourced Warehousing for Businesses

5 Signs That Your Company Needs an Outsourced Warehouse

Up until a few years ago, the idea of storage was frequently overstated and applied only to areas that required minimal modification. However, the difficulties facing the (dependent) transportation and storage sectors have made it clear that effective product storage is necessary.

In order to prevent losses for the business, effective storage necessitates keeping commodities, raw materials, and inputs all in one place. These items also need to be of the same quality as soon as they are acquired.

Check out the main signs that point to the necessity of an external warehouse, which are listed below:

1. Lack of security in storage

It is crucial to have security in storage to safeguard both users and goods. Outsourcing the warehouse could be the answer for your business if security-related issues like theft, damage, or outdated equipment become a problem.

Specialist businesses, like 3PL Links, provide safe structures and cutting-edge methods to ensure the reliability of goods and the security of users.

2. High loss and damage values

If the loss and damage rates at your firm are excessive, it’s time to reconsider your storage plan. The outsourced warehouse provides efficient production and movement tracking in addition to standardizing procedures.

This contributes to more effective inventory management and, ultimately, more profitability by preventing losses from damage or past-due expiration dates.

3. Lack of integration between production and supplies

Integration of supply and manufacturing is necessary to prevent product shortages or excess. An outsourced warehouse might provide effective solutions if your business is having trouble keeping this synchronization.

By implementing an organized system, it becomes easier to keep track of product turnover and replace goods based on demand. This streamlines the production process, cuts expenses, and prevents waste.

4. Distribution and customer service failures

Effective distribution and high-quality customer service are essential foundations for any business to succeed. Warehouse outsourcing can be the solution if you’re having trouble in this area.

Specialized businesses have streamlined distribution through system and structure optimization, guaranteeing a satisfying client experience. As a result, it increases market presence and fosters customer loyalty.

5. Failures in logistics operations

To cut expenses and boost output, logistics operations must be done effectively. Warehouse outsourcing can be the answer if logistics operations at your organization are prone to frequent breakdowns.

With staff dedicated to logistics management, outsourced businesses have fewer failures and make better use of their resources.

The market’s ever-emerging logistical issues can be resolved by selecting an outsourced warehouse. As a result, it promotes market competitiveness and customer happiness.

Types of outsourced warehouses

Different kinds of warehouses satisfy various operating requirements, and managers are starting to embrace the possibility of outsourcing warehouses.

The primary types of warehouses are listed below; see how these buildings can play a crucial role in logistics outsourcing.

1. Conventional warehouses

The most traditional type of storage is found in conventional warehouses. They are often made up of shelves and storage spaces, and they may be adjusted to fit a range of products. To reduce expenses and boost operational effectiveness, businesses might elect to outsource or build their own conventional warehouses.

2. Automated warehouses

Logistics operations have been transformed by automation, and automated warehouses constitute the apex of this development. Modern technology and robotic systems efficiently handle product movement, collection, and storage. Businesses employ automated warehouses to benefit from the newest advancements without having to make infrastructure investments.

The Ultimate Guide to Outsourced Warehousing for Business Growth

3. Block storage and pallet racks

Pallet racks and block storage are notable for their well-planned product arrangement. Pallet racks use shelves to maximize vertical space, while block storage provides a dedicated location for bulk items. These are great options for businesses looking to adjust to changing seasons and niche markets.

4. Bins and other structures

For smaller, more specialized objects, bins and other specialized structures work well. They make selection easier and are perfect for accurate management. By choosing to outsource these areas, businesses can tailor the storage solution to meet their needs without having to deal with the difficulties of in-house management.

Advantages of outsourced warehousing for your company

The substantial cost savings for businesses is one of the key benefits of outsourcing warehousing. This management structure “transfers” to the specialized company the costs associated with payroll, equipment replacement, and upkeep.

Outsourcing also allows for more efficient inventory management because the logistical operations are more agile and precise. Using the outsourced company’s skills, comprehensive inventory management, shipping, and storage procedures can be put into place.

Access to cutting-edge technologies, including Warehouse Management Systems (WMS), is another benefit that makes outsourcing warehousing a major advantage (competitive, in this example). Precise control over item entry and departure, effective addressing, and online inventory monitoring are all guaranteed by these systems. Utilizing technologies also helps to ensure the security and safety of goods.

Typically, these warehouses are situated in major cities to offer optimal logistical circumstances. By placing your items close to the locations where there is a need, you can effectively fulfill delivery deadlines and expenses.

Outsourcing warehousing has several advantages in the tax domain. You save a lot of money during the storage time because you are exempt from paying several taxes, such as IPI and ICMS.

Businesses may guarantee an effective supply chain ready to meet market demands by selecting a trustworthy inventory management partner. Invest in logistics outsourcing to put your company at the forefront.

Count on 3PL Links for your outsourced warehouse

3PL Links is a reputable option for supply chain management when thinking about warehouse outsourcing.

In order to satisfy the unique needs of each client, our B2B warehouse services provide secure, adaptable solutions. We ensure comprehensive coverage for your logistics operations with our strategically placed warehouse and distribution hub in Vaughan, Ontario.

Pallet racks, bin storage, and block storage are just a few of the adaptable and effective structures that you can pick from while working with 3PL Links. Our racks maximize storage capacity by preserving vertical space.

The application of a management system and cutting-edge technologies guarantees accurate shipment while adhering to the FIFO and LIFO methodologies. We make investments in security and compliance, including the use of remote security camera monitoring, and a safe room reserved for highly valuable goods.

Contact us to see how we can help your supply chain run more smoothly!

Logistics of food distribution are an essential part of the industrial process. From the point of manufacturing to the point of sale and the end user, it is in charge of guaranteeing the integrity and food safety of the products.

By taking care of things like temperature regulation, light exposure, and impact prevention during transportation, each item—especially the more perishable ones—lives longer and the rate of product loss is decreased.

Learn the essential steps in this article to improve the logistics of food delivery and reap significant business advantages.

Read also: 7 Inventory Management Mistakes You Must Avoid to Boost Efficiency

Importance of food distribution logistics

Certainties unique to the food industry are absent from other economic sectors. The perishability of your products is the most crucial factor among them. To ensure quality and integrity at all times, more caution is needed even for projects with longer timelines.

Let’s begin with explaining the concept of food distribution logistics and subsequently discuss its significance for businesses.

What is food distribution logistics?

The procedure that starts when the product is finished on the production line and ends when it reaches the points of sale is known as food distribution logistics. Included in it are the following:

• finished product packing;
• stock and warehouse storage
• loading for transport;
• transport itself;
• unloading at the destination.

There is a risk to food associated with each of these steps. The manufacturing company bears the responsibility of ensuring appropriate storage and transportation, either through in-house resources or by partnering with other firms.

Why is food logistics so important?

The arrival of a factory’s products at points of sale determines how profitable it is. To retain their market value, they must retain their original qualities.

In certain cases, they may sustain severe harm that compromises the safety of food. In these situations, the business suffers losses because they are no longer able to be sold.

5 steps to ensure more efficiency in your company’s food logistics

Now that you are aware of what food distribution logistics is and how crucial it is, check out our step-by-step guide with recommendations to improve the efficiency of your operation.

1. Use the correct packaging

Food is shielded from its surroundings by its packaging. It is imperative for producers to address all packaging aspects related to the logistical process, rather than just the packaging that final consumers see.

There are 5 levels in total:

• The primary level is the one that comes into direct contact with the food and determines the consumption unit.
• The secondary level groups primary packaging to make handling larger quantities easier.
• Tertiary-level packaging involves multiple secondary packaging units and uses stronger, more resistant materials like cardboard and wood.
• Quaternary-level packaging joins tertiary packaging to make storage and transportation easier.
• Lastly, the fifth level is used for shipments that are farther away and typically consists of containers.

Food’s physical and chemical properties must be preserved at each of these levels, even amid exposure to the elements, wind, sun, temperature change, and impacts sustained while traveling.

2. Bet on barcodes

In order to streamline the logistics distribution process, technology must be employed. The key takeaway from this is to depend on the barcode. It makes it possible to automate several processes, including those that involve the use of AI and autonomously driven machinery.

Everything You Need to Know About Food Logistics | Image source: Rawpixel

It not only expedites the process but also reduces human mistake errors and enhances inventory, loading, and transportation controls. As a result, the business becomes more profitable and productive.

3. Keep the place sanitized

A key consideration for the food industry is hygiene. Let’s start with adhering to the legal requirements in place for health surveillance. By doing this, fines and other penalties that may even result in the suspension of business operations are avoided.

Even more crucial is the fact that maintaining modern hygiene practices helps your business prevent food contamination. This produces high-quality goods that don’t endanger customers.

Thus, legality and quality are the two benefits that are directly related to this problem. These two elements work together to create the company’s reputation in the marketplace, which is one of the most important elements in determining a business’s success.

4. Minimize the impacts of the transportation process

The logistics of food distribution are most crucial during the transport phase because this is when it gets harder to control outside intervention. To ensure optimal product preservation, an air-conditioned environment that adjusts temperature, light, and air circulation can be installed in a stock room or warehouse.

Whether transported via truck, train, airplane, or even ship, food is subjected to substantial movements as well as variations in temperature and ventilation. As a result, some of them will need particulars like refrigeration or packaging that reduces physical effects.

5. Pay special attention to perishables

Foods that spoil quickly require specific handling. They need special attention because they are more sensitive and lose quality more quickly.

For example, traditional or organic agricultural products like fruits and vegetables must be transported faster. Refrigerated cars are necessary for products like meat and dairy.

The advice of the relevant nutritionist is valid for industrialized goods like bread, salty snacks, and prepared meals. To put it briefly, the most crucial thing is to make sure that the conditions are as similar as feasible to those that would be used in a typical warehouse or stock.

As we have seen, maintaining the integrity of production up until it reaches points of sale requires careful consideration of food distribution logistics. In addition to increasing quality, this prevents losses during the process.

By doing the actions outlined in this article, you can make this problem much easier to overcome and increase the likelihood that your company will expand and stand out in the marketplace.

Fleet Management 101: What It Is and How to Implement It | Image source: rawpixel.com

The use of fleet management systems in transportation and trucking companies has grown dramatically worldwide. This fact arises for a number of reasons, one of which is the nation’s increasing trajectory of technological adoption.

This kind of solution covers the widest range of market sectors by allowing the option to assess the outcomes with various automobiles.

The potential users are therefore infinite.

Some managers immediately consider truck tracking when considering a fleet management system. However, employing technology offers much more advantages than just tracking the location of the vehicle itself.

Fleet management systems not only track but also have the potential to improve safety by managing risks and keeping an eye on driver conduct. It can be used to pinpoint areas where drivers and the fleet’s overall performance need to be improved.

Read also: The Future of Supply Chain: 5 Critical Changes to Make Today

What is a fleet management system?

Businesses utilize this kind of system to get data regarding their own logistical operations. As a result, it facilitates resource management in its entirety, with the goal of raising revenue and enhancing driver safety.

There are multiple technologies that can be used to develop the full monitoring system, including:

• Telemetry
• Video monitoring
• Fatigue sensor
• Driver journey control

How does a fleet management system work?

For professionals in administration and logistics who deal with the everyday issue of managing vehicle movement inside their enterprises, a fleet management system is a vital ally.

Though it uses a somewhat different programming style, this system functions similarly to business administration software in that it serves as a platform for managing each fleet vehicle individually.

Utilizing a fleet management system effectively requires knowledge about the technology and how to apply it. The tool’s data must be analyzed in order to create plans that maximize productivity, cut expenses, and enhance outcomes.

In this instance, tracking devices that are attached to the relevant vehicles power the fleet control system. These devices gather data and send it to an operations center, where it is analyzed and turned into insightful information that helps with decision-making.

But the possibilities extend beyond as simple as scheduling vehicle entry and departure times, creating routes, keeping an eye on travel expenses, tracking drivers’ movements, and other routine duties.

A wide range of features are available to monitor both individual productivity and collective team performance, offering data that has the potential to drive a company’s operational efficiency.

The main functions of a fleet management system

The key technologies found in an advanced fleet management system will be discussed next. Follow along!

Tracking

Every vehicle’s current location is given to the manager using the tracking feature. This makes it possible to control processes more precisely, which enhances both efficiency and safety.

Monitoring

Fleet vehicles are monitored, and managed, and data is gathered via vehicle monitoring. This enables the control of maintenance and other pertinent data in addition to monitoring the position, speed, direction, and condition of the vehicle.

Telemetry

Telemetry is the process of gathering data from a moving vehicle remotely. The information gathered includes but is not limited to, speed, fuel usage, and engine temperature.

Video monitoring and fatigue sensor

One other advancement in technology is video surveillance. In addition to capturing photos, it utilizes internal and external cameras along with artificial intelligence to identify unsafe driving behaviors including weariness and carelessness.

Warning noises are used to get drivers’ attention and alert them to the dangers of their conduct. These incidents are recorded, and managers have access to them via the platform.

Fleet management has many advantages, some of which are as follows:

• Reduction in fines and accidents;
• Utilizing photos to look into robberies, thefts, and accidents;
• Driving instruction to prevent unsafe conduct;
• Determining where driver behavior has to improve in order to better target instruction.

Provide automatic insights into the operation

The manager must also receive automatic information from a fleet management system. The application of artificial intelligence makes this feasible.

Development routes categorize an operation by levels: Critical, Improvement, Evolution, and Excellence, helping to identify the key issues of concern and set targets for action.

Data from fatigue sensors and telemetry is the foundation for accident prediction. The system offers a safety grade based on the complete behavioral history of the drivers. This gives you access to a single resource that lets you identify hazardous routes, fleet safety advancements, and the drivers and organizational units most at risk.

Artificial intelligence is used to produce insightful analysis for every operation as well as recommendations for the necessary steps to increase fleet productivity and safety.

How to interpret data from a fleet management system?

A strategic interpretation of the available data is necessary for the system to function properly.

How on earth is this feasible in real life? Check this out:

1. Keeping an eye on signs

Different types of information are provided by management systems. The manager is in charge of using it to determine which metrics are most crucial for their fleet and to regularly check on them in order to assess how well the operation is performing overall.

2. Action plan based on signs

Apart from keeping an eye on the available indicators, it’s crucial to utilize the offered data to strategize and organize measures that might enhance the outcomes of the operation. When making a strategic decision, it is necessary to consider data that can be monitored by the fleet management system, such as vehicle performance and driver behavior.

With the right fleet management system, your business will be more and more prepared to produce noteworthy outcomes. Speak with 3PL Links to maximize your fleet’s performance!

The Future of Supply Chain: 5 Critical Changes to Make Today

The Covid-19 pandemic has set off a period of profound change that we are currently experiencing. Both the supply chain and society as a whole were impacted by these shifts. Today’s diverse difficulties have demonstrated the need for applying certain tactics in order to change course. From manual to digital, from worldwide to local, from offline to online, and from in-person to remote. There is much to be done, and we must act immediately.

The present changes include opening up new business models and a new management vision in addition to investing in technical tools for the operation.

According to a study conducted by the global technology research firm Gartner, 38% of supply chain executives worry that their companies are not set up to handle the problems that lie ahead for the next two years. According to the group, the COVID-19 issue sparked a significant shift in logistics firms, but more significant change is still to come.

Gartner has identified five shifts that will occur over the next five years under this new situation. Through this article, you will come to know them. Prepare yourself to enter the supply chain of the future!

Read also: Top 4 Logistics Automation Trends That Everyone Should Be Aware Of

5 Changes to Make in Your Supply Chain Today

The five changes to the supply chain that Gartner is focusing on over the next five years are digitization of the supply chain; globalization and offshore; new business models; migration to e-commerce; and remote and dispersed teams. You must be inventive, flexible, and have a solid framework in order to adjust to them. You should also rely on cutting-edge technologies. The most crucial thing to remember is to prioritize the customer experience.

See the specifics of these modifications as well as Garner’s predictions for the supply chain’s future below.

1. Digitization of the supply chain

Gartner reports that by 2025, twenty-three percent of supply chain executives anticipate having a digital ecosystem. For these people, the next ten years will see a significant shaping of commercial potential due to digitization.

With the use of technologies like the Internet of Things (IoT), digital twins, and blockchain, which can improve network collaboration, visibility, and risk management, the organization is able to achieve more resilient and flexible logistics. Gartner claims that digitalization and real-time end-to-end information exchange enable businesses to react more quickly and effectively to unforeseen shifts in supply or demand.

2. Globalization and offshoring

In the next five years, 46% of supply chain leaders expect a fall in globalization, and 61% expect a decline in manufacturing outsourcing, according to the recent Gartner survey.

Experts from Gartner believe that the current state of globalization is under strain because of complicated supply chains, consumer demand for products made in other nations or continents (such as China’s IFA for vaccines), more capital turnover, and longer lead times. In this regard, it is advised to reevaluate offshore and network strategies and find a balance in reshoring in order to control costs, address tax ramifications, and take advantage of local market opportunities. Thus, the approach needs to focus on reestablishing the equilibrium between local, regional, and global chains.

Garner envisions a situation in which manufacturing diversification—which was already under progress prior to 2020—is sought after in order to enhance resilience and agility. “Almost half of supply chains will move production to different countries or regions. Companies will invest in localized sourcing aiming for resilience, agility, and sustained growth in local markets – for example, training small local companies to manufacture for global supply networks”, highlights the agency.

3. New business models

A Gartner study found that 79% of supply chain executives believe the new business model to help post-pandemic recovery is an internet/platform-based strategy. The group predicts that CEOs will use the chance to “reset,” or reconstruct, their companies for the new normal.

In order to do this, supply chain tactics must be reviewed and adjusted to fit with new business models. This entails keeping an eye on demand-side costs as well as consumer segmentation. Supply chains will acquire the operational skills necessary to fulfill each of the goals linked to various values, predicts Gartner.

4. Migration to e-commerce

Additionally, according to the Garner survey, 69% of supply chain firms predict that over the next five years, consumer willingness to visit stores will decline.

The government’s blockades and the public’s fear of Covid-19 contamination led to a decline in foot traffic in physical stores. Spending by consumers on e-commerce increased, which hurt businesses that did not open up shop online or even integrated their online and offline platforms.

Therefore, in order to provide the customer with outstanding service, changes must be made as soon as possible, optimizing logistics. Building scalable capacity, including online buying and returns service, and reevaluating network design to enable a more profitable operating model that supports the volume shift to e-commerce are among the recommendations made by Gartner.

According to Garner, businesses will make an attempt in the future to provide the greatest possible shopping experience and cater “to the extreme” to each customer’s tastes. Offering individualized goods and services that are accessible wherever, at any time, is part of this. Investing in the appropriate tools will result in lower costs and a better customer experience.

5. Remote and distributed teams

Lastly, an important statistic from Gartner: 98% of supply chain executives see a rise in remote work over the next five years.

Logistics companies have traditionally been culturally built around local, face-to-face work. However, this scenario started to shift with the epidemic, and it seems like it will keep evolving. Garner advises employers to “showcase empathy and flexibility.” Encourage the use of a hybrid workforce and create strategies for raising remote teams’ output.

Experts from Gartner predict that supply chain companies will have a hybrid workforce in five years, alternating between in-person and remote labor. The rise in remote employment will provide the organization with easier access to talent. “Technologies for tracking productivity will be widely used, as will virtual practices for recording time and monitoring computer use. Physical plants, warehouses, and corporate offices will continue to exist, but they will increasingly become spaces for collaboration and innovation”, highlights Gartner.

Is your company ready for these supply chain changes?

The changes that Gartner has identified are already in operation. This is the ideal moment to start implementing them in your organization, always striving to strike a balance between customer-centricity and business success.

To accomplish both goals, it is necessary to be ready for both the present and the future. Accordingly, Gartner identifies the key movements as “benefiting all parties involved,” “being purpose-oriented,” “focusing on innovation and collaboration,” and “taking positive measures to improve environmental and community well-being.” Today is the beginning of the change!

Do you want to guarantee the supply chain’s future success for your company? Reach out to us immediately.

A company is only a few steps away from going out of business if it decides against investing in logistics automation.

This is because trends and technologies are created to keep up with shifts in consumer behavior, new sustainability criteria, better efficiency, and decreased errors among many other factors that spur innovation in logistics systems.

For instance, the majority of product shipments were done in palletized loads with few SKUs decades ago. Fractionation and assembly of mixed pallets with several SKUs are commonplace in numerous operations nowadays.

In particular, distribution centers (DCs) require a great deal of dynamism and agility to sustain high levels of product and material movement without sacrificing efficiency or control. A reality that employs innovation and new technologies to become far more feasible.

This article will discuss four logistics automation trends that you should be aware of and keep up with in order to decide which to use in your business and when. Read on for more.

Read also: Top 5 Essential Tips for Mastering Efficient Logistics Management

Top 4 Logistics Automation Trends That You Should Be Aware Of

Automation

Automation provides a number of ways to maximize working hours, increase productivity, and cut expenses. Automation is the process of improving operational processes with mechanical or electrical equipment while requiring the least amount of human intervention.

Because of this, businesses—including those in the logistics industry—are requesting these solutions more and more.

Systems like WMS, TMS, routers, AGVs, elevators, and shuttle cars are very frequent logistics automation solutions in the daily lives of people who work in warehouses, stocks, receiving and shipping areas, or logistics distribution centers (DCs).

Mechanization

Mechanization is a popular trend in warehouse operations that uses conveyor belts and moving face systems like the Sorter, which separates and sorts products based on where they are going.

The Push-Back and Dynamic systems in storage structures are further instances of mechanization that support LIFO and FIFO operations, respectively.

Together with automatic scales, cubers—which measure the quantities that move through the conveyors and immediately notify the cubage for freight calculation—are crucial advances in the transport industry that help to expedite and strengthen the assertiveness of processes.

Robotization

Robotization is becoming more and more popular in logistics automation, mainly among major e-commerce companies and huge players who operate as logistics operators.

Robotics not only optimizes operations but also raises safety standards and lowers the possibility of mishaps and human mistakes.

Image source: Wikimedia Commons | Top 4 Logistics Automation Trends That Everyone Should Be Aware Of

Among the various options, Autonomous Mobile Robots, or AMRs, are employed to move loads in warehouses. Through Artificial Intelligence (AI), they can instantly adapt their routes and minimize the risk of collision with other machinery, personnel, goods, or shelves.

By 2025, 50,000 warehouses worldwide will have more than 4 million robots installed, predicts consulting firm ABI Research.

It is improbable that autonomous vehicle operations will materialize in all parts of the world anytime soon in the cargo transport sector. However, technology will undoubtedly play a crucial role in enhancing the nation’s logistics operations.

Logistics 4.0

The fourth industrial revolution gave rise to the idea of logistics 4.0, which increases connection and controls over logistical procedures while also taking automation of logistics to a new level.

According to a new Gartner study, supply chain teams will heavily embrace digital technologies in the upcoming years to enhance decision-making and management of warehouses and DCs.

According to Gartner, logistics automation trends indicate that:

• More than 75% of businesses will invest in technologies like big data and artificial intelligence by 2026;
• 75% of large enterprises will have implemented intelligent robots in some capacity to automate logistics activities;
• Business executives’ expenditures in cloud storage are predicted to go even higher in 2024.

Real-time tracking and monitoring of items is made possible by smart packaging technology, commonly referred to as packaging, for manufacturers and retailers. Since technology is constantly developing, further advancements are probably in store for us in the years to come.

Conclusion

Canadian logistics is attempting to stay up to date with international innovation and technological advancements, even if gradually. As a result, keeping up with new advancements is essential to keeping the market’s level of competition acceptable.

Having the money to spend on logistics automation is not enough, though; you also need to foster an environment that encourages innovation both inside and outside of businesses.

Other obstacles that must be overcome include modifying the work and management methods as well as the organizational culture. Companies must alter their organizational structure in addition to the way they create value.

Image source: Medium | Top 5 Essential Tips for Mastering Efficient Logistics Management

Efficient logistics management is critical to the success of companies that rely on this sector for their operations. This is mostly because logistics control procedures are getting more complicated all the time in an effort to satisfy a market that is picky about efficiency and quickness.

Dealing with market pressure, technical advancements, and demanding customers can all feel like Herculean tasks. However, these goals can be met and amazing outcomes, including lower costs, faster delivery, and improved customer relations, can be obtained with the correct management.

Read also: Different Types of Logistics Companies: Which One Should You Choose?

Companies of all sizes can benefit from good logistics management

It makes sense that larger businesses would be more concerned about logistics. In the end, a larger company has more processes in all of its areas, including logistics, which makes it more complex and demands more work and attention. But small businesses can’t (and should) care about how they handle their logistics because they have fewer processes.

To put it briefly, any business that wants to grow in an organized manner must address its logistics from the outset. The best strategy to ensure linear and steady growth and prevent stagnation due to operational or physical restrictions related to the growth in demand is to anticipate the demand for improvements that the market would desire.

Top 5 Essential Tips for Efficient Logistics Management

No matter how big or small an organization is, it is evident how important and valuable logistics are. You’ll discover some crucial advice for improving, streamlining, and boosting productivity in logistics down below. Take a look!

1. Define performance indicators (and monitor them)

Setting up performance indicators is necessary, and it starts with the principles of logistics administration. What do they consist of? These are the well-known Key Performance Indicators or KPIs. They are employed to gauge and track the effectiveness of a business’s procedures in order to pinpoint both advantages and disadvantages. A corporation can set up multiple indicators for each of its sectors.

We can utilize the ones that are most crucial for this field of business when considering logistics. Following is a list of a few examples: Delivery schedules, quantity of deliveries, and expense per item moved; Transport and storage quality and safety; incident and loss rates; satisfaction of customers and business associates.

2. Invest in technology to modernize your logistics

There will come a day when human capability alone will not be sufficient to handle the vast volume of data and requests, depending on the expansion of each organization.

However, with the help of technology, this challenge can be solved in a very effective and useful manner. There are several advantages to automating and streamlining your processes, including more output, lower expenses, fewer mistakes, and the ability to collect precise data for decision-making.

In this manner, not only can you streamline all phases of your logistics, but you can also allocate your skilled labor force to more critical tasks. Numerous technologies and tools are available for use. Next, we’ll go over some of them.

Top 5 Essential Tips for Mastering Efficient Logistics Management | Image source: Flickr

WMS

Modern stock control is made possible by the Warehouse Management System, or WMS for short. It allows for the management of every procedure that takes place in a warehouse, including product inventory, shipping, receiving, storing, and separation.

Big Data Analysis

As we just discussed, using precise and structured data facilitates crucial decision-making for leaders. The technology that enables the simple and effective examination of massive amounts of data, which is becoming more and more prevalent in logistics operations, is known as big data analysis.

TMS and Geolocation APIs

The Transportation Management System, or TMS for short, is a system that focuses on transportation management. It will enable you to efficiently and practically handle every aspect of the transportation routine, including fleet administration, cost control, and delivery tracking.

On the other hand, geolocation APIs are add-ons (like Google Maps) that can be integrated with TMS systems to improve address entry and validation, asset tracking, fleet optimization (from collection to delivery), and the display of the quickest and safest routes.

3. Monitor your stocks

There is no logistics management without proper inventory monitoring. For example, you should be mindful of objects that are extra or that have been left unattended for an extended period of time. They are losses because they take up storage space that could be used for more profitable and faster-moving products.

However, in a similar vein, the shortage of particular goods can also result in losses since it jeopardizes the delivery schedule and production line. Maintaining accurate inventory control means that you should always aim for balance, determining how much of each product is required based on data-driven strategic analyses.

4. Collect, classify, and analyze your company’s daily data

Let’s get back to discussing the value and power of data. First, let’s acknowledge that we are currently experiencing what is being called the Fourth Industrial Revolution, thanks to the development of Industry 4.0, which is centered around automation technologies.

Large amounts of data are produced daily by computer systems used in logistics operations, such as the aforementioned TMS and WMS, and they must be used wisely. They are, after all, what makes precise analysis possible to enhance an organization’s logistics using the idea of supply chain analytics.

5. Plan for crisis management (they can happen)

It is unpleasant for anyone to consider that they may need to handle a crisis. However, the truth is that they can manifest for a variety of causes at any time. Many can be avoided, but for others, an action plan to lessen losses and damage is required.

Effective risk management in logistics requires consideration of things like product damage, cargo theft, delivery delays, and accidents carried out by different factors. The secret to minimizing losses is to prepare for circumstances such as these.

Learn how 3PL Links can help you with Efficient Logistics Management

3PL Links can significantly enhance logistics management by leveraging their expertise and resources. We provide comprehensive solutions including technology integration such as WMS and TMS systems, real-time data analysis for informed decision-making, and robust inventory monitoring. By utilizing these advanced tools and strategic approaches, 3PL Links help companies streamline their logistics processes, reduce costs, ensure timely deliveries, and improve customer satisfaction, ultimately facilitating steady and efficient growth. Contact us to learn more about how we can help your business thrive in the competitive market.

3PL Links Warehouse in Vaughan, ON | Top 7 Advantages of Outsourced Warehousing

Can your business cover the whole cost of inventory? If not, outsourcing your warehousing can be the best option! Gain a deeper understanding of the subject in this post today.

Calculating the costs associated with storage is a complex process that involves considering various factors such as the facility’s layout, internal transportation, machinery, product support, qualified workers, and so on. Is your business currently unable to pay for all of these expenses? Learn about outsourcing warehousing now!

Read also: Top 10 Best Logistics Practices to Ensure the Success of Your E-commerce Business

What is outsourced warehousing and what is it for?

It’s crucial to keep in mind the primary service categories found in this area in order to comprehend what outsourced storage genuinely is. These categories are listed below:

• Own storage: this type of service is provided when the business manages the stock warehouse; as a result, both the manufacturing spaces and the warehouses that are used are owned by the business.
• Contracted storage: In this type of storage, the manufacturer just leases the actual space needed to distribute the products; they are still under their control and logistical supervision.
• Outsourced warehousing: Lastly, the main attraction of our content is the option where the products are managed and administered entirely by the outsourced logistics firm. Stated differently, the manager is not concerned about bureaucracy.

To put it briefly, a business that uses outsourced warehousing seeks to ensure that its goods and inputs are distributed within a suitable physical area that is adequately organized and managed. Even when logistics are conducted outside of the company’s boundaries, the goal is nearly always to increase efficiency. The reasons for this are as varied as possible.

As a result, the procedures are quite identical regardless of the approach selected or the logistics partner handling the operation. Therefore, the following steps are typically included in the storage flowchart: receiving the items, checking (also known as inspecting), identifying and addressing, storing, separating, dispatching, and delivering.

It is noteworthy that different storage types have the ability to optimize each of these phases. For instance, there might be a process of area-based separation, software-based identification, checking for greater numbers, and so forth. Even if we are aware of the concept and operation of outsourced storage, many businesses are still unclear if this is the appropriate business model for them. Understanding the benefits of this modality is the best method to make this choice.

What are the advantages of warehouse outsourcing?

Companies can benefit from outsourcing storage, which is why we’ve compiled the most notable instances of how this service can benefit your company. Look it over below!

Cost reduction

This is one of the things that most managers find interesting about outsourced storage, as the list of expenses that are cut when space is outsourced includes things like electricity, machinery, buildings, skilled labor, and other expenses related to the space’s maintenance and operation.

Tax cuts

If the business operates inside the same state, the ICMS (Tax on Operations related to the Circulation of Goods) may be suspended, and the IPI (Tax on Industrialized Products) may be excluded at the federal level.

3PL Links Warehouse in Vaughan, ON | Top 7 Advantages of Outsourced Warehousing

Best structures

Your goods can profit greatly from the use of appropriate storage structures. Otherwise, improper structures damage stored goods and result in work accidents. In simpler terms, when partners have solid frameworks, outsourcing logistics becomes fascinating as well!

Less bureaucracy

The management can hire strategic partners who can minimize small-scale administrative hassles with documents, regulatory agencies, and other bureaucracy by depending on outsourced storage.

Best location

Businesses might outsource inventories to more strategically located sites by considering the optimal logistics and the model to be employed. As a result, there is increased delivery agility and decreased route expenses.

More technology

Having the right technology allows your business to stay up-to-date with trends, which benefits customers. For example, order tracking is computerized and accessible to anyone. On the other hand, managers might act more assertively in the industry by keeping an eye on the entire supply chain. Additionally, receiving updates regarding orders and shipments increases the satisfaction of customers.

Process visibility

As a result of everything, managers are able to assess the situation holistically and have a far wider perspective of the procedures in this industry. This kind of viewpoint enables more forceful, prompt, and strategic decision-making without sacrificing client focus.

Can you see how hiring an outsourced company can benefit your organization in a number of ways? Your company might benefit greatly from outsourcing storage if you want to grow and boost sales. So, you may rely on 3PL Links Warehousing for assistance in maintaining the organization of your storage!

Invest in outsourced warehousing with 3PL Links!

3PL Links provides top-tier warehousing solutions tailored to meet the diverse needs of businesses across North America. Our strategically located distribution centers ensure your inventory is always within reach, optimizing your supply chain efficiency.

To keep your stock organized and easily accessible, we utilize pallet rack storage, maximizing vertical space to enhance storage capacity and streamline inventory management.

Our advanced warehouse management system (WMS) ensures precise dispatching. With real-time data collection, we provide comprehensive traceability for every item, offering you total visibility and control over your inventory.

At 3PL Links, we combine diversified storage structures with cutting-edge management systems to deliver customized solutions that address your specific requirements.

Contact us today to learn how we can support and enhance your business operations!