by A1 WorldWide Logistics | Sep 27, 2023 | Freight, Supply Chain, Warehousing
Over the last few years, the shipping industry has seen a trend of on-demand warehousing growing. The coronavirus pandemic led to a surge in this type of warehousing for retailers. On-demand is a type of warehousing in which services are readily available to the customer when needed. They provide flexibility and swiftness to supply chains and do not require long-term commitment. In 2022, an on-demand logistics company reported that its customers grew by roughly 128% in 2020 compared to 2019. The company even built facilities across North America to accommodate the freight.
What Led to On-Demand Warehousing Growing
In early 2020, when the pandemic began in the U.S., many speedy fulfillment companies like Amazon temporarily limited operations. The main products that came into the fulfillment centers were essential freight needing to move out urgently. This resulted in the inability of a substantial number of sellers to use the warehousing services to move their goods to their customers. Many sellers immediately searched for other substitutes to store and move their goods out quickly. This led to the growth of on-demand warehousing providers. The recent surge in e-commerce also created a need for on-demand warehouses.
On-Demand Warehousing VS Traditional 3PL
3PL or third-party logistics is the use of a separate third party to provide services. This can include the shipping of freight and warehousing for a business. Despite the boom in on-demand warehousing, some believe that traditional 3PL warehousing is the better solution. Traditional 3PLs offer a range of services for long-term relationships. Conventional warehousing companies have more excellent knowledge and experience because of their long-term relationships.
One of the main differences between on-demand warehousing and the traditional 3PL model is their method of offering warehouse space. With traditional 3PL, warehousing tends to be in one or a few centralized locations. They may have more direct, longer-lasting relationships with their clients. On-demand warehousing where the 3PL is the middleman between a business looking for a warehouse and the actual facility. While less direct than traditional 3PL, this is ideal for short-term fulfillment. Even with the differences, these warehousing solutions are equally crucial for extensive supply chains.
A1 Worldwide Logistics
Logistics is the organizing and executing of a complex task or operation. This can involve several different components that work together to produce a result. When moving freight internationally, warehousing is a typical part of the supply chain and logistics aspect. Once cargo enters the U.S., taxes and duties must be paid before the freight reaches the importer. If the importer does not plan on receiving their shipment or paying duties at a specific time, they can keep their imports in a customs-bonded warehouse.
A customs-bonded warehouse is a facility where a shipper can keep imports without paying taxes and duties for up to 5 years. A1 Worldwide Logistics provides a custom bonded facility to store your cargo before you are required to pay taxes or duties. This is ideal if you plan to save money and find customers for your goods. Contact us at 305-821-8995 to learn more about our various supply chain solutions. Along with warehousing, we provide freight forwarding, customs clearance, trucking, and more.
by A1 WorldWide Logistics | May 17, 2023 | 3PL, Order Fulfillment, Warehousing
3PL or third-party logistics are outsourced solutions a company offers to its customers. This kind of operation has grown over the last decades due to the need for business to expand their reach. While 3PLs provide extensive services, some main ones include warehousing, shipping, and e-commerce fulfillment. 3PLs break down further into four categories. The four types of 3PL companies include standard, service developers, customer adapters, and customer developers. This article will introduce the 3PL and explain the differences and advantages between each.
Standard 3PLs
Standard 3PLs are known as the most common type of third-party logistics provider. This service is used by businesses requiring basic logistics needs like warehousing and storage. Small e-commerce companies also use this type of service for packing and picking at a low cost. Since the number of solutions offered is limited compared to the following three 3PLs, they tend to be less expensive. This is ideal for customers on a budget. As businesses expand, they usually switch to other 3PL types to achieve their goals.
3PL Service Developers
3PL service developers encompass all of the solutions that a standard 3PL has but add some more to it. Some of these services include IT Infrastructure and management. IT (Information Technology) infrastructure uses hardware and software to operate a business. An example is using a web server or app created by a 3PL company for customer order fulfillment. The IT framework also allows shipment tracking, cross-docking, extra security, and specific packaging.
3PL Customer Adapters
One of the most advanced 3PL service providers is known as customer adapters. Rather than having their own logistics operations, they take over and run their customer’s processes entirely. Adaptors control the end-to-end fulfillment supply chain of the hiring business by managing parts such as shipping and warehousing. This is ideal for scaling business since owners have little involvement, meaning they can focus on other aspects of their company. Customer adapters can be expensive compared to the other 3PLs due to the functionality provided to a client.
3PL Customer Developers
Similarly to customer adaptors, customer developers take control of a company’s logistics aspects. They differ since customer developers provide their systems while inheriting their client’s operations. Along with overseeing the procedures, they improve the performance of a business by giving constantly updated data. Large companies tend to be the primary users of this 3PL, which is usually the costliest option. A few of this 3PL type exist due to the size and complexity of maintenance.
The 3PL industry has expanded over the last decades due to the number of solutions offered. This article listed a few of the services; however, the list broadens to options like customs clearance. 3PLs are the easiest way for companies to grow their operations and increase the provided to their customers. As e-commerce has become popular, so has the need for 3PLs for order fulfillment. Contact A1 Worldwide Logistics at 305-821-8995 or info@a1wwl.com to learn more about our numerous 3PL solutions. We can help you achieve your objectives no matter the size of your business.
by A1 WorldWide Logistics | May 4, 2023 | Freight Forwarding, Supply Chain, Transportation
In shipping, words such as NVOCC and Freight Forwarders continuously pop up. For shippers beginning their exporting/importing journey, this could be the first time seeing these terms. While forwarders and NVOCC are commonly mistaken to be the same, they are different services. Knowing how they differ is ideal for choosing the best option to streamline your supply chain. This article will help you understand the difference between the two terminologies and describe the pros and cons of each. For a more in-depth explanation, contact A1 Worldwide Logistics at 305-425-9456. We have freight forwarding services with various means of conveyance for transporting cargo.
What are NVOCCs?
NVOCC, or Non-Vessel Operating Common Carrier, is an ocean carrier that moves cargo without owning a vessel. This is accomplished by paying steamship lines to lease container space, making them the “carrier.” The NVOCC then sells the space to shippers that want to ship their goods. Despite not operating a containership, NVOCC accomplishes all the functions and responsibilities that a regular carrier would. The two parties enter a contract where the NVOCC issues its own HBL (House Bill of Lading). Companies use this transporter type because of the personalized attention to customers compared to larger carriers.
Other functions of NVOCC can include:
- Negotiating contracts and freight rates with steamship lines for the exporter.
- Handling different transport documents that the shipper must give the carrier.
- Consolidation and Deconsolidation services for containers by the use of a third party.
- Transportation services from port to port or to the final destination.
What are Freight Forwarders?
Freight forwarders are supply chain specialists focusing on moving a shipper’s cargo. Forwarders are intermediaries between the cargo’s shipper and the good’s final destination. They are valuable players in logistics because of the number of services they offer. Although freight forwarders usually are not carriers, they coordinate with a network of transporters to move goods. The methods of conveyance can include vessels, planes, trucks, and rail. Since there are many steps in the shipping journey, they assist by taking the process off the shipper’s hands. Specific forwarders also offer customs clearance services for shipments entering a country.
Along with the services mentioned, freight forwarders also:
- Arrange the freight shipment from the origin facility to port-to-port and the final destination.
- Explain the different shipping costs and offer cargo insurance to protect the shipper.
- Provide short-term and long-term warehousing and other storage services.
- Constant updates on the status and location of shipments.
Which is Better?
While NVOCCs and freight forwarders both have their benefits, the answer depends on the shipment being made by the shipper. The most significant distinction is that NVOCCs are only for maritime shipping, while forwarders move cargo differently. If a business moves goods by the ocean, NVOCCs can provide personalized services and help shippers avoid the intermediary fee. This is because they are independent carriers instead of agents. Forwarders benefit from allowing different ways to transport goods. Businesses with international supply chains can take advantage of having their entire freight journey handled. Forwarders also have extra services not provided by NVOCCs, such as warehousing and customs clearance.
by A1 WorldWide Logistics | Mar 24, 2023 | Warehousing
A common topic brought up when discussing supply chain warehousing is distribution. Distribution is transporting stored products or goods to a location for order fulfillment. While specific distribution centers exist, standard warehouses may also provide this solution. The reason why distribution services are so vital to supply chains is the value they add. Some of the solutions include:
One of the main differences between regular warehouses and facilities that provide distribution is the time inventory is stored. Standard warehouses are designed to house goods for more extended time frames. Since the key purpose of distribution centers is order fulfillment, cargo tends to stay for shorter periods. A warehouse that provides distribution services can include short-term and long-term storage times and order fulfillment.
How do Businesses Benefit from Distribution?
Medium-sized businesses that sell products to customers are one of the primary users of warehouse distribution services. This is due to the work and costs of having your own distributing facilities. Outsourcing the services to a 3PL warehouse can help the business save money and focus on other parts of the company. Distribution warehousing can also be ideal for businesses that want to maintain strong customer relationships. One of the main ways to maintain a solid customer relationship is by having efficient and consistent distribution.
Another type of business that benefits significantly from distribution warehousing is e-commerce. As buying goods products online grew, especially in the last few years, so did the need for order fulfillment services. Companies that relied on e-commerce quickly saw how distribution warehouses could fulfill customer orders. Online purchases are instantly sent to the warehouse, where the order is processed and picked from stock. Then the goods are packaged and prepared to be transported out of the facility. The freight may then be moved to a department store or directly to the customer.
Many warehouses that provide distribution services are also customs bonded. This is a secured building where imported goods could be held for five years without paying taxes. Importers can benefit from storing their goods while they make the capital to pay for the cargo. Businesses can also store freight while they look for customers for their freight.
If you are looking for a warehouse, contact A1 Worldwide Logistics at 305-821-8995. Along with distribution services, our bonded facility will allow you to store your cargo without the payment of duties.
by A1 WorldWide Logistics | Mar 2, 2023 | Warehousing
Oversized cargo is a shipment that exceeds the weight or size allowed for conventional transportation. An example of oversized cargo could be large equipment like construction beams and machinery like tractors. Because of the dimensions, specific regulations and guidelines are required to call a cargo oversized. The policies for this type of cargo vary per state; however, shippers follow general guidelines. Some of the general guidelines for qualifying a shipment as oversized are:
- A weight of over 80,000lbs.
- A height of around 13.6ft.
- A width greater than 8.6ft.
- Goods that are longer than 53 feet.
How to Warehouse Oversized Cargo?
Due to the cargo size, workers should take special precautions when storing it in a warehouse. Before entering the facility, specialized equipment like lift loaders assists in bringing the oversized freight off the truck. Specific warehouses even have conveyor systems to move large cargo quickly and easily. A particular location where a warehouse stores large equipment is on the floor under a pallet rack. It tends not to be raised on the shelf due to challenges such as unbalancing the forklift. A common alternative is a cantilever rack if a bulky item is placed on a shelf.
Facilities that store cargo like large machinery may have reinforced floors due to the weight. Also, most warehouses with frequent requests for bulky cargo have an empty section for storage. If you have plans to warehouse heavy or oversized freight, contact A1 Worldwide Logistics at 305-821-8995. We understand the specialized treatment required for large goods and provide short and long-term storage for cargo from numerous industries.
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