Online Retailers: Top 5 Benefits of Using a 3PL to Manage Logistics

If you thought 2015 was a busy year for your online business, you’re not alone. According to the Quarterly E-Commerce Report, ecommerce sales continued their steady climb making up 7.5% of retail sales by the end of 2015. Compare these figures to the end of 2003 when online sales made up only 1.8% of all retail sales and it’s easy to see that online retailers can continue to expect an increase in sales well into the future. 

What can online retailers do to ensure they can meet growing demand? The answer lies in logistics. Whether you’re organizing shipping for a small online store or a large ecommerce supply chain, logistics management is crucial to streamlining your operations.

To streamline your transportation you can either use your own in-house transportation management team or outsource with a 3PL. The benefits of either option will be dependent on the size of your supply chain and your company’s specific needs.

Greentec Auto rebuilds hybrid car batteries. They have 11 locations throughout the country where they can service electric cars and build their batteries, but they also sell their products across the world through an online store. When Vice President of Greentec, Daniel Razumovsky was tired of wasting time comparing shipping rates and filling out paperwork he turned to FreightCenter. Outsourcing with a 3PL turned out to be a much more time and cost efficient strategy. Now between their many locations, Greentec ships batteries almost weekly through FreightCenter and they continue to reap the following benefits of using a 3PL to manage their shipping logistics.

1. Cost Reduction: Shipping volume is a key driver of freight shipping rates. Many small and mid-size online retailers are at a disadvantage when it comes to negotiating rates. 3PLs have the buying power of their entire customers’ freight volume. 
2. Smoother operations and technology: A 3PL can provide advice on packaging, including crating services. They also provide ecommerce retailers access to best in class technology that provides benefits like order optimization and delivery performance reporting.
3. Routing optimization and flexibility: Each order you ship – from a single LTL shipment to a truckload – can be optimized. A 3PL has the perspective to see the opportunities to consolidate orders. The flow of logistics data into other company systems is vital as well. Tracking and managing Cost of Goods Sold (COGS) and other important metrics are made easier when logistics data can be integrated with other company systems. 
4. Complexity of international shipping: Since most online retailers do not make what they sell, many have built a supply chain that involves importing products from overseas to save on costs. International shipping is very complex and involves a lot of complicated requirements and other entities that include customs brokers, different modes of shipping, and lots of rules and regulations. 
5. Omni-channel and inventory management: Retailers are now seeing the need to potentially share inventory across channels (like between online and brick and mortar stores) to make sure product is always available to customers – regardless of how they are trying to buy it. A 3PL can provide inventory tracking tools to make sure you have the visibility – and ability – to get the inventory you need when you need it.

Ship up to 1,200 Pounds in this New Freight Box

Did you know that you can order shipping and packaging supplies online through FedEx and they’ll deliver them to your door? I’m sure you do. But, what you probably don’t know is that FedExFreight now offers the Freight Box for larger shipments. Since FedEx Freight is one of our trusted carriers, we wanted to fill you in on their new service.

The Freight Box comes in two types: the integrated pallet box and non-integrated pallet box. It also comes in three industry standard sizes determined by height: short (20”), medium (28”) and tall (38”). And it can support freight up to 1,200 pounds! Which is a big deal considering that before the Freight Box, FedEx’s largest shipping container was the Extra Large Box which has a max weight of 50 pounds.

The FedEx Express Freight Box can be used with all FedEx Express Freight Services, both in the U.S. and internationally. They’re delivered to your door fast (within 3-5 days) and are easy to assemble. We even had some delivered here to FreightCenter just to see for ourselves! Our Freight Experts have been trained on the proper assembly and use of the Freight Box as well as the services provided with it. Have any questions about requesting a FedEx freight quote or using a FedEx Freight Box? Give us a call today!

Does your shipment weigh more than 1,200 pounds? Check out our website for more information on crating services. 

DIY Crating: Protect your LTL Freight for Less than $100

When you transport your freight using LTL shipping, it will be grouped with other LTL (less-than-truckload) shipments and will be unloaded and reloaded at a freight terminal before it makes it to its destination. An improperly packaged shipment may cause delays and unnecessary damage. While freight insurance can be purchased to help cover the cost of damages, it’s best to be proactive by packing your freight correctly. Crating provides the highest level of protection against damage and loss.

While FreightCenter itself doesn’t offer crating services, we work with professional crating companies such as You Crate. You Crate offers excellent crating services for a reasonable cost. They have different sized containers that are easy and fast to assemble. Best of all the crates are reusable and returnable.

Don’t forget to include your crate, as well as any other packaging in the final weight and dimensions to ensure your freight quote is correct.

6 Steps to DIY Crating

If having your shipment crated is a must, but you don’t want to spend the extra money for a professional service, follow these steps to build your own crate for your shipment for less than $100.

Keep in mind you will need access to the following tools: power drill, chop saw, and table saw.

1. Gather the following materials: 2x4s, one 4x4, half-inch plywood, half-inch foam insulator sheet, and 2.5 inch screws. Note: the amount of materials you need depend on the size of the crate you need.

2. Gather the dimensions of the item you are shipping. Remember to account for the half-inch thick foam on all sides.

3. Start with the crate base. If your shipment is heavy and needs a forklift, make your base a pallet. Build risers as part of the base using the 4x4s on either end. Make sure the spacing is at least 3.5 inches off the ground. From your measurements cut the plywood to size, and then fully frame the base with 2x4s securing them with screws. Cut two 4x4s and attach to the longer of sides of your base. Flip it over and add the foam to the top and secure with more screws in each corner.

4. Setting your shipment inside your base will help you create the sides. It is also easier to put your sides into two categories, sides A and sides B. Sides A will be shorter than the base and sides B will be as long as the base so that there is overlap when you screw the sides together. Cut your plywood and frame with 2x4s. On the other side attach your half inch thick foam.

5. Attach sides A to the base and measure the size for sides B, accounting for the overlap. If you have clamps use them to hold the sides as you screw them in. For easy disassembly, mark the screws that need to be removed with a marker.

6. Lastly, cut the foam so it fits into the top. If you have done everything correctly, then the foam should be flush with the top of the crate. Cut the plywood so it fits the entire top and screw down.

And you’re done! You now have your very own reusable crate.