Finding Quality Warehouse Space When Space is Limited

Finding quality warehouse space can be difficult.  Oftentimes companies spend too much time and resources searching for warehousing providers that meet their ever-changing needs. To complicate matters, most logistics managers do not have the expertise or an established network of outside warehouses to do so efficiently.

With constantly changing storage requirements, companies need an efficient way to manage their outside warehouse networks including food safety requirements, insurance coverage, rate negotiations, and transportation. One solution to finding quality storage space when space is limited it to utilize a managed warehouse service provider. Utilizing a managed warehouse service provider can deliver value through:

Simplified operations—Companies who provide managed warehouse services will essentially manage all of your outside warehouse relationships. This will leave you with just one invoice to pay for your entire network of suppliers.

Established Networks— A managed warehouse service provider will have a vast database of warehouses in various locations.  They have already built relationships with these providers and have verified them for quality.

Team of Experts—Companies who provide managed warehouse services will have a trained team of experts in operations, engineering, warehouse legal liability, rate negotiations and food safety requirements. This is something most companies simply do not have in-house.

Reduced Risk—When you work with a managed warehouse service provider, you’ll have access to warehouse legal expertise that can protect your products from being lost, stolen or damaged, which requires an understanding of loss limits and insurance coverage.

Standard operating procedures (SOP)—A managed warehouse service provider will have SOPs to address food safety and FSMA requirements for outside warehouses. Their network of storage providers will be trained on these SOPs to ensure the integrity of your products.

When warehousing is outside of a company’s core business, it makes it difficult to find the time, resources, and expertise to efficiently manage everything that goes into locating and managing outside storage networks. Enlisting the help of a managed warehouse service provider can allow companies to focus on their business, while saving time and reducing risk.

How Can Shippers Prepare For The ELD Mandate?

The Electronic Logging Device (ELD) mandate will take effect on December 18, 2017, and will require all truck drivers (unless exempt) to connect an ELD device to their truck engine to track their hours of service. To increase driver safety, drivers will not be able to drive over their allotted hours - 14 working hours, 11 driving hours a day, with 10 hours off in between shifts. This mandate will have a major impact on both drivers and shippers, which means driver efficiency will become a shared responsibility among all parties in the supply chain. 

From the shipper’s perspective, the ELD mandate could lead to reduced carrier productivity, driver shortages, and increased rates. Drivers may also refuse to work with facilities with extended wait times or charge more for going into difficult loading and unloading locations.

Longer wait times may turn into service failures for the shipper because product will not be delivered on time. This, coupled with capacity shortages, may force shippers to resort to expedited solutions or team drivers, which can cost 10-30% more than traditional solo transits. The ELD mandate will also result in drivers holding shippers to their appointment times or charging them if they are forced to wait. 

So how can shippers be more prepared to handle these challenges?

• Review appointment and lead times. Check with your carriers to make sure they will be on-time, and communicate with them when wait times are expected to be longer than normal. Additionally, provide carriers with enough lead time so that they can legally run the load.

• Preload trailers. Preloading trailers, and using drop and hook when possible, can save drivers nearly an hour compared to live loads.

• Be carrier friendly. Shippers should consider offering flexible appointment times and extending their hours of operation. In addition, providing safe overnight parking, or suggesting nearby parking can save drivers from eating into their hours of service while searching for a spot to park for their 10 hours off. 

• Improve staffing. Shippers should consider hiring additional staff during peak seasons. 

The ELD mandate will have a major impact on shippers, drivers, and many others within the supply chain. Actively seeking out ways to efficiently load and unload trailers and decreasing driver wait time will go a long way in lessening the inevitable challenges that will come with this mandate.

Six Steps to Coordinating Effective Customer Events

With today’s technology, face-to-face connections are oftentimes very rare. Events allow an organization to focus on connecting with customers on a more personal level.  Having these interpersonal relationships with your customers can have a huge impact on their loyalty to your organization.  Below are six steps to follow to execute a successful customer event.

• Target Audience. Determine who you are trying to target.  Do you want to build relationships with prospective customers, strengthen relationships with existing customers, or show appreciation to vendors that are vital to your businesses success? Define your audience and create your invite list.

• Budget.  Determine how much you can spend on your event.  It’s best to work line item by line item and take every expense into consideration.  Setting a budget and estimating your expenses will keep you on track and deliver the best ROI.

• Timeline.  Develop a timeline of what needs to get done in order to keep your team on track. Create standard operating procedures (SOP) so that you can make sure all the details are thought through and planned accordingly.

• Marketing. In order to have a successful event, you need people to show up.  Have fun with your communication and promotions by creating a brand around your event.  Create unique and high quality invitations that promote the brand, make your company standout and give a good lasting impression on your customers.

• Execute. The day has finally arrived for your event! Follow your plan, be prepared and execute a successful event.  Most importantly, have fun!

• Debrief. After the event is over, plan a time to meet with all involved and go over what went well and what didn’t.  Now is the time to be honest with yourself to ensure you have another successful event next year.  It’s equally important to also survey those who attended the event as it is to debrief with those involved in planning and execution.

Events are vital to building lasting relationships with your customers. A successful event can lead to client retention, customer satisfaction and even new business.  

Is Your Supply Chain FSMA Compliant?

The Food Safety Modernization Act (FSMA), a ruling built off of the 2005 Sanitary Food Transportation Act, went into effect on April 6, 2017. The act shifts the focus from responding to food contamination to preventing it by prohibiting the distribution of “adulterated food” or food that has been held under unsanitary conditions. FSMA affects all parties within the supply chain. This includes shippers/brokers, receivers, loaders, and carriers.

The act specifically addresses safety, not spoilage or quality issues for all human foods, animal foods, additives, and dietary supplements. It requires all parties within the supply chain to be aware of things like material failure of temperature controls, or other conditions which could cause the food to become unsafe – thus requiring all parties within the supply chain to work together and communicate more than ever before. Below are a few ways to ensure your supply chain is compliant.

Online training. Communicate the availability of the FDAs online training to your carrier base.

Communication with shippers. Shippers should provide the carriers and receivers with key information for transport such as temperature requirements, product descriptions, and special trailer cleaning requirements to ensure food product is safely transported.

Standardized communications.  Carriers should receive all of the shipper’s product specifications on their carrier tender to avoid miscommunications.

Updated contracts. Your company’s contracts with its carriers should include language on FSMA, as well as the cleanliness and condition of the trailers and seals.

Detailed records. Shipper orders, carrier tenders, and any other load specific information should be stored by all parties indefinitely for future reference.

Food safety requirements are changing, and it’s important to make sure not only your company, but also your logistics partners are compliant to ensure a safe and efficient supply chain.