transportation budgetting

Key tips for effective transportation budgetting

This year has taught the world that we cannot prepare ourselves for everything, let it be life, or in business. The Corona epidemic has affected every sector of world trade and major global strategies. Though it holds that such events are beyond our control, there are still certain very integral areas in transportation budgeting that shipping companies can control. In such times of extreme uncertainties, we still have to evaluate and find out ways that will conserve money. After all, a stitch in time saves nine, and when more you require than times as such.

In this article, we would like to evaluate some of the advantageous methods by way of which businesses can create a much more robust and efficient transportation budget that will help to stay afloat.

Timely Scheduling: Plan your budget schedules depending on different unexpected factors such as fluctuating global economic prices. Hence evaluate the possible scenarios of unexpected costs earlier in the year and make apt budgets accordingly.

Make volume predictions :
Precise freight volume forecasting and accurate lane planning will give you a rough estimate of the transportation budgets. Also, a predictive analysis tool can generate data required to plan the freight volumes based on historical order data. That will contribute to the accurate forecasting of your transportation costs.

Avoid lean inventory practices :
It is not advisable to apply lean inventory in every single situation though it seems to be ideal. The challenge is always there as small and frequent shipments create various other challenges due to the rising costs of transportation. Rather than adopting lean inventory, it is best to go in for consolidating shipments and sharing routes that will help in better scaling up financial benefits.

Keep a tab on the increase in fuel prices :
It is a better idea to engage with 3PL services as no matter how the market, it will help you in maintaining a competitive rate. Fuel prices are always fluctuating, and so are the freight rates. Hence one needs to keep a tab of both these elements that will help in smarter budget allocation.

Plenty of options for a supply chain company :
Logistics is a vast industry and filled with n number of supply chain management companies. At times of looking out for economically viable transportation solutions, it is good to look out for less expensive and competitive companies. While evaluating the companies avoid those who have hidden fees and additional extra charges as this will be an end game that will ruin your budgets.

Final thoughts :
Having a proper transportation budget is always the key to successful logistics management because costs will always keep fluctuating. The key lies in how well one can plan and create a viable budget and a committed team to work towards achieving the goals of your business.

Phamaceutical Transportation

Special key points to know while shipping Pharma products

Pharmaceuticals globally is a big business and industry as according to the recent statistics nearly 4.5 million Americans are employed in this sector alone. It is also worth noting that the Bio-Pharmaceutical industry in the US contributes to around 1.3 trillion to the world economy every single year and it keeps growing. Hence one can imagine the demand and the scale of operations involved to supply such a large requirement globally.

Shipping pharmaceutical products is not a cakewalk as it requires special know-how because mostly they are of high sensitivity in nature and have to be delivered in a time-bound manner.

They are the most complex than any other product to be shipped and hence involves a lot of guidelines and regulations that need to be followed and adhered to. After all, it is medicines that are to be shipped which is ultimately consumed by people for their medical ailments.

One of the key factors that makes it such a complex operation is that the pharmaceutical products are to be kept safe and beneficial to the end-user after the transportation is carried out. This involves immaculate planning and checks where proper inspection and care has to be assured from the factory to the point of delivery about the integrity and quality of the product. Both the pharmaceutical industry as well as the shipping industry have to work under tight regulations and scrutiny while carrying out the transportation operations.

Various factors play a major role in assuring the safe and secure transportation of pharma products to the end consumers.

Maintain Pharmaceutical Temperatures: One of the key concerns while transporting pharma products is the temperature to be maintained. The desired temperature that needs to be maintained is around 55 to 77 degrees Fahrenheit for most of the shipments to maintain product stability. Hence products must be shipped in contained that are well insulated in refrigerated trucks that can maintain these temperatures even if the normal weather is hot. The cold chain also known as reefer trucks can be used as they are designed to hold such temperatures.

The packaging is very crucial: Another very important rule when shipping pharma products it the quality of packaging. Packaging has to be thoroughly inspected and has to be shipped in climate-controlled trucks and insulated containers. Many a time shippers use thermal pallets when moving such products as they can provide another layer of protection. They protect the product from temperature fluctuations, sunlight as well as humidity.

Security a major concern: This is one material where utmost importance has to be given to security arrangements as pharma cargo is always susceptible to theft. This is because of the nature of the product that is shipped and hence faces notable dangers. Cargo thefts are real threats, especially when hauling products like narcotics. A well-experienced logistics provider can foresee and manage all such treats to keep pharma products safe. All warehouses today are equipped with state of the art CCTV cameras and with higher visibility of cargo transportation via tracking one can ensure that the pharma products are securely transported to their destinations.

Proper adherence to licenses: As already mentioned there are a lot of rules and regulations while transporting pharma products hence it is important that the logistics provider who has been entitled the job has all the proper licenses. Not only that the logistics company has to be competent to handle all the tasks involved to ensure safety with the necessary types of equipment. Not only pharmaceuticals are delicate but expensive as well and hence special precautions have to be carried out while shipping.

Summary: Logistics can be about any product both domestic household items or high-value cargo. Though every shipment has to be transported securely and on time Pharmaceutical is one such product that needs to be handled with utmost diligence and care. Afterall many times these products can be life-saving.

Cargo in Monsoon

Prolonged rains have warranted for special cargo precautions

Though the recent rains have been much relief for many after the terrible hot summers it has also been a great area of concern due to the hazards the rains have caused. With such unpredictable and prolong rains across the country one of the major industries that are affected is logistics. 

In such scenarios, it is imperative to say that all the necessary precautions have to be planned and taken while transporting cargo goods to avoid all kinds of damages due to rains.

There are many restrictions in place while transporting your cargo especially when your cargo gets wet. Wet cargo may invariably not be allowed into the warehouse to protect the existing goods. 

Hence it is imperative to say that your one has to think ahead during the monsoon seasons and all the necessary measures have to be taken to pack your cargo in the full proof manner.

To help you out we have listed down a quick important precautions points that need to be kept in mind and implemented while carting your cargo and which will also help you t avoid last-minute hassles.

Proper Carting :

A good method is to see to it that your cargo is carted withing the shed premises. This gives you the protection from rainwater and hence rest assured that your cargo is dry before it is packaged.

Good Packaging:

Packing is one of the most important aspects of your logistics delivery process and your cargo has to be adequately packed, palletized. A better idea would be to shrink wrap your goods well that will help in preventing your cargoes from getting damp and wet.

Use Best Packing materials:

One has to use the best packing material particularly when your cargo has to braze the sea. Ensure that your inner, as well as external packing of the cartons, are proper and strong to avoid any damage caused due to rainwater seepages.

Fumigation is important:

It is customary that all your wooden cases and pallet are fumigated which will prevent any molds, moistures, and dampness to the cases.

On-time customs clearances:

It is but natural to have traffic snarls as well as customs clearance delays due to port congestions, especially during the monsoon seasons. Hence to avoid the same you must plan your shipment on time and your cargo transported, carted and customs cleared well in advance.

Summary :

These are some of the few tips that can be noted and kept in mind while transporting your cargo during the monsoons as this is one season that posts a hell of a challenge to the logistics operations. 

For any of your customs clearances and logistics requirements, you can get in touch with our experts now at info@nauticalcargo.in

Reverse Logistics - Nautical Cargo

What is Reverse Logistics and how can you effectively manage it.

Logistics is a complex business with many unforeseen events propping up which needs to be handled immediately. One such event which needs to be finely addressed and planned is Reverse Logistics. To understand the importance of this growing logistics operations it is worth diving into some of the latest statistics concerning reverse logistics.

According to the latest information from Statistica in the US alone the return deliveries are estimated to cost $550 billion by the year 2020 which is approximately 75% more compared to the previous four years figures. With the arrival of the E-commerce era, Reverse Logistics has been of extreme importance more so in a scenario where physical retailers have been replaced by online providers and sellers whose sales had predictively touched around $414 million in the year 2018.

What is reverse logistics?

To clearly define reverse logistics in the simplest ways, it stands for all related operations where goods need to be returned from the place of consumption to the place of their origin. This sounds strange as rather for any logistic operation aimed to deliver the goods to the final customer this is a reverse of what should be happening. Precisely why such operations in logistics is termed to be reverse logistics. Now let’s understand the reason for such a different kind of operation and the need of the day which has seen it evolving so fast recently.

Managing reverse logistics is not a thing of ease as we are trying to address a situation where the shipper needs to handle a disappointed customer who wants to return the goods purchased for probably a replacement. Hence basically the shipper or the 3PL agent has to retrieve the product and needs to ship the item back to the hub. The return can be due to a few reasons being damaged product or an item which does not satisfy the customer. This has to be precisely accessed which is the key in initiating a counter shipping operation.

Hence, to put it more precisely, reverse logistics is the process of moving the goods from the final destination or consumption for the sole purpose of either disposing of, remanufacturing, refurbishing or reinitiating a similar replacement order to the customer. It also includes the process of the management of surplus of products which are left as returned. It is worth to be noted that in the online retailing business at least 30% of all products ordered are returned in comparison with almost 8.89% products which are purchased in brick and mortar shops.

Reverse logistics can also be taken as a source of accessing the quality of the products and the efficiency of the operations of all parties involved as this is a direct indicator of how much your customer is satisfied with the product and the delivery operations. Hence one needs to address this with accurate planning and as far as possible to avoid it as items which fall under the reverse logistics can become a big source of concern to any organisations profits.

Having understood the importance of reverse logistics it should also be noted that with a good reverse logistics process in place companies not only be able to track returns but also get the desired value from the returned products. To implement a successful reverse logistics process the following points can be followed:

Real-time monitoring and tracking facility:

The company should have a very viable and state of the art process and platform that facilitates its customers to return the product with ease. The platform should have proper data capture points that will help to categories the products to be returned as damaged, defective or scenarios where a product needs to be replaced with a new one. This will give the shipper or the 3PL agency to ship back the product to their desired origin based on this categorisation also with the help of the real-time monitoring capabilities to ensure the product reaches its origin.

Engage with the best warehouse and distribution centers:

One of the many important factors that should be taken into consideration and aptly engaged is that of the warehouse management services and distribution centers. Reverse logistics is all about getting the product once delivered to the endpoint of consumption back to the original point. Hence one needs to strategically decide on the return and collection centers and have more than one collection centers based on the category of the goods returned to access and estimate the quantum of damaged goods or the ones that have to be replaced for redistribution.

Customer communication:

Any industry which is doing business that directly satisfies its customer’s, communication is of top importance. Reverse logistics is not of any difference as especially in this kind of processes one has to give utmost heed to the queries of the customers. Let us not forget reverse logistics is all about an unsatisfied customer who wants to return the products delivered. Hence to gain trust companies have to communicate constantly with its customers and need to listen to queries raised by the customers with possible and quick solutions which will leave them delighted.

Partner with a good 3PL logistics provider:

Logistics is a very complex industry and reverse logistics is one such operation which is very much complex. One needs to have a separate logistics department with an able human resource team to handle the reverse logistics services with a state of the art technologically equipped platform to manage all the data involved. Many companies have started outsourcing their reverse logistics operations to 3rd party logistics vendors that are well equipped in providing the much needed real-time tracking of the reverse shipments and have the best human resources to ensure the proper flow of goods to the origin. This not only reduces the investments involved but also will ensure the effective return management process.

Summary:

In an industry and business scenario where E-commerce has established itself as the driving factor for any seller, one has to indulge in identifying the problem areas to generate apt solutions. Return of goods is one of the most pertinent concerns and companies must have a solid game plan to reduce operational costs and time lags involved in reverse logistics. Ultimately the goal is to satisfy the customers in the best and fastest way possible.

Freight Container Services

Important tips for loading export items into a freight container

Almost anything can be stored and exported in a container. If someone visits any large port today, then at a glance nobody can describe what kind of products are being shipped. Because all types of products are being exported in large rectangular containers. These containers are particularly useful for transporting manufactured goods.

Nowadays containerization is a very common practice for exporting goods. Containerization has both advantages and disadvantages. The advantages of containerization are it reduces the logistic cost and also fewer workers are needed for loading and unloading the containers. Also, less time is required for loading and unloading. But this practice of containerization also includes technical challenges as only the responsible person knows the type of goods and the condition of the products for shipment.

The decision for choosing the process of loading a container can be divided into two steps.

  1. Choosing the required type of container.
  2. How to load the container with merchandise/products.

The required type of container:-
The decision while choosing the required type of container totally depends on the type of products to be exported.

There are six types of containers that are available.

  • General purpose containers: These types of containers are most commonly available. Each container is fully closed and also features full-width doors at one end for access. These types of containers are used for transporting both liquid and solid substances.
  • Refrigerated containers: These types of containers are used for carrying those products which require refrigeration during transit.
  • Dry bulk containers: These types of containers are used for carrying dry powder and granular substances.
    Open top/open sided containers: These types of containers are used for carrying heavy and unusual sized products.
  • Liquid cargo containers: These types of containers are used for carrying liquid substances.
  • Hanger containers: These types of containers are used for carrying the garments on hangers.

How to load the container with merchandise/products:-

Just after deciding the type of container to be used the next step is to complete the task of loading the products. This process also can be divided into three steps.

At first, it is required to check and examine the freight container’s physical condition before starting the task of loading the merchandise. One must have to check that no placard should be left behind from earlier cargo to avoid confusion. Also, they have to make sure that there must not be any type of holes and if the container is repaired then it is also required to check the repair quality.

Secondly, pre-planning must be done before exporting products by using freight containers. The total weight of the product must be spread across the entire length and width of the container. Also, they should take care while packing goods. Wet and dry goods must be packed separately and heavy packages must not be placed over light packages. Also, they must have to fill the free space in the container so that the goods must not move during shipment.

The last step is to check the container after loading the cargo or goods. The total weight and labeling must be checked before exporting. Also, they need to check the packaging of the products.

LCL Logistic Services

E-Commerce the definite road ahead for Logistics

Before going further with the topic and relating e-commerce with logistics, let us have a quick review of what e-commerce and logistics actually means. E-commerce is the new marketplace for the current generation. It is an electronic platform or best to say an Electronic marketplace from where you would be able to sell and buy everything that you want, starting from daily grocery to exclusive electronic appliances all under one single roof.

On the other hand, logistics refer to everything that a business operates and manages from the starting point wherein products are collected and consolidated till the point the product reaches the end consumers which can vary from residential consumers to even corporate houses.

E-Commerce today is largely depended on the operations of the logistics company as a perfect partner not only to deliver the goods to the end party but also to act as a provider of perfect LCL logistics services which also includes warehousing capabilities to stock product a large number of products. A quick understanding of how e-commerce can prove to be the definite road ahead for logistics.

Relating the two E-commerce business depends on serving customers and catering to their consumable requirements. The things that you choose from an e-commerce website needs to get delivered to you at the correct time and in the best possible shape. This is where logistics comes into the picture even much before that. The product that you choose to buy from an e-commerce website has to go through several processes before it finally reaches you.

E-Commerce being just a platform or a window to the products available for purchase it is the ability and planning of the logistics company to fulfill the order thereby catering to all the needs of the customers and satisfying them to a full extent most importantly with a prompt and reliable delivery. This can be achieved only via a proper and credible logistic provider.

Hence its imperative to say that with the kind of business growth seen in the retail business coupled with the flourishing use of E-commerce as the best technological platform it would mean that more growth is progressing towards the logistics business as well.

The Cycle of e-commerce and logistics is well integrated with the logistics industry and it surely hugely depends on the logistics operations for its success. From a consumers perspective, all he/she does is to place an order for an item from an e-commerce website and all that is expected is a timely delivery and cost benefits.

When the delivery person comes to a customer’s doorstep in order to deliver their product then that delivery person becomes the face of the e-commerce company, so it is very important for any e-commerce company to have an efficient logistics system in place. Hence for their own good, the e-commerce companies sometimes themselves develop their own logistics division so as to monitor everything from their end and do everything necessary like improving the software, training more people and introducing many efficient techniques which would, in turn, help their operations. But it is not necessary and vialble for every E-commerce company to have their own logistics system and in such scenarios, they tie up with one, so that they can make the process of delivery more smooth and efficient for the customer.

Many Investments are done in this partnership so that the logistic company can improve their technical and human resource aspect so that the company would be able to improve their business and incomes and in return, they would invest more in the logistics.

It is the best time in business today as we are witnessing many new players bring up their E-commerce sites to sell a variety of products to the consumers thereby giving more leverage and opportunities to many logistics companies. Without a doubt, E-commerce is here to stay and transportation companies have to get well equipped to meet the growing challenges in such a big opportunity.