Security

Shipping your products to reach your customers already has many risks involved, and when you hand it off to a 3PL, you need an assurance that your product is secured. The company you choose should have plans in place to ensure that your products will arrive safely at their destinations. They should also be able to give you real-time status updates.

Knowledge

A logistics company in Melbourne should always be in the know of the latest developments and news in the industry in order to provide the best services. Your 3PL partner should be able to provide you with insights in order to improve their services to accommodate your needs better.

Innovation

A 3PL should have a measurement system in place in order to evaluate performance and find more room for improvement, not only in transportation but in their IT infrastructure as well. An outdated infrastructure makes for slow progress and higher risks. With the knowledge of new developments and results of performance evaluation, a logistics company should always keep pace with technological advancements.

Cost-Efficiency

When it comes to logistics, cheaper rates are not always better, but instead, only provide short-term savings. What you should look for is a company that has reasonable rates and a low-cost network that makes safe and prompt delivery. A 3PL with the necessary tools, gear, and equipment would serve you better than one that only has low prices to offer.

Reliability

A reliable logistics company should be able to prove that their words of assurance are not empty claims. Successful on-time deliveries should be your basis when it comes to reliability. Collaboration between your company and the 3PL is essential to develop plans and strategies that would ensure successful deliveries.

These five characteristics are essential to look for if you want your business and your partnership with a 3PL to succeed. Use these as basis to find dependable 3PLs like State Transport.

Sources:

The Seven Abilities of Highly Effective 3PLs, www.InboundLogistics.com

4 Important Factors to Consider When Evaluating 3PL Partners, www.LogisticsViewpoints.com

Seeing Eye to Eye

Compatibility between the business and the 3PL is an essential building block of a lasting relationship. Both must have a clear understanding of how the other functions in order for them to have aligned goals. The relationship must have a good communication wherein information is freely shared and objectives are clearly outlined at the executive, managerial and even front-line level of both organizations. Strategy meetings should be held from time to time to develop joint goals. This way, both parties share in the ambition to move forward toward success.

In it for the Long Haul

Partnerships are supposed to last for a very long time and for that to be possible, both the company and the 3PL should have open minds about long-term agreements. Entering in long-term agreements will see the relationship greatly improved. Another way to make the relationship last is developing a sense of cooperation and camaraderie between workers of both companies. Treating the 3PL as a valuable extension of the company is a healthy practice for you and your employees.

See Where You Stand

It is important to know where things stand in your business. You can do that by measuring the results of your past labours. Areas of shared responsibilities and joint performance need to be evaluated so that they may be improved in the future. Key performance indicators or KPIs should be agreed upon by both parties as means of measurement. If there are areas that need improvement, make the necessary corrections and never forget to reward a job well done.

A Shift in Priorities

Businesses should also consider the possibility of needing more complex services and arrangements from the 3PL. Before that happens, there needs to be a plan in place to ease in the transition phase without interrupting business operations. The focus of the plan should be on functional services, value added services and other foreseeable needs.

A good relationship between your company and your 3PL service provider is essential for mutual satisfaction. Find a trustworthy Melbourne warehouse and 3PL service provider like State Transport for your logistics and warehousing needs.

Sources:

Developing and Improving Relationships with 3PL Providers, www.LogisticsQuarterly.com

Gaining More From 3PL Relationships, www.InboundLogistics.com

According to a study by the Adelaide Center for Sleep Research, a person who has not slept for 17 hours is twice more likely to be involved in an accident than a person with zero blood alcohol content. The study also uncovered that drivers who have been awake for 24 hours are seven times more at risk of an accident.

Per another study by the Monash University, accidents where fatigue is a major contributor are likely to occur during night time and in rural areas in Australia. Long trips, drowsiness, and the monotony that comes with the lack of physical and mental activity while driving on long stretches of road are believed to be the main causes. Accident risk rises further when other factors such as health disorders, eating habits, climate, drug intake, and psychic issues like conflicts, worries, and responsibilities join the picture.

Although majority of long-haul truck drivers are professionals, skill cannot take precedence over the body’s need for sleep. Truck drivers are more at risk of fatigue due to particular job demands that interfere with normal rest hours. Practices contributing to fatigue typically include early start times, prolonged night work, irregular work hours, and poor quality of sleep. Experts noted that shift work confuses the body’s circadian cycle, resulting in a variety of health problems and increased accident risk.

To enhance driver safety, leading companies such as State Transport have secured accreditation from credible transport management consultants that set guidelines for fatigue management. Operators from such companies are trained to comply with the standards set by the National Heavy Vehicle Accreditation scheme. These firms also undergo regular audits of their transport management systems in aspects such as scheduling and rostering, driver’s health, documentation, workplace condition, and management involvement.

Delayed operations, material loss, lost client confidence, and bad publicity are just some of the consequences of transport accidents. But fate does not have much to do with it; lack of safety management does. When looking for Melbourne freight forwarders, choose one that complies with fatigue management standards to ensure that your goods and equipment are in good hands.

Source:

Fatigue statistics, Transport Accident Commission

Fatigue and fatigue research: The Australian experience, Monash University

You fail to deliver your products on time.

Perhaps your vehicles lack the required tune-ups or manpower or you just don’t have enough to accommodate all orders and drop them on your customer’s doorsteps right on time. Remember that customers prefer fast service, so late deliveries can result in customer dissatisfaction which in turn spells loss of potential future sales. If you compute the costs you save by distributing products on your own to the loss of future transactions by failing to satisfy your customers, you’ll find that outsourcing is an effective option.

Raw material delivery issues prevent you from processing orders or returns quickly.

Even with efficient production processes, receiving mislabelled or damaged materials from your vendors can greatly disturb your operations. In such instances, you still have to spend extra time checking each product in your warehouse before you have them delivered to your customers, whereas you could have spent that time managing new orders and returns or sell more products. Good Melbourne transport companies can be counted on to help you manage not only your raw material sourcing but your warehousing needs as well.

You’re about to embark on a larger scale.

So the equipment and operations systems are all set and you’re about to serve more customers outside of your former location? A possible problem would be much of your time being consumed by production, leaving little room for you to interact with existing customers or create new sales opportunities. Let renowned logistics companies like State Transport take a lot of the work off your plate; such assistance will help you focus on other equally important aspects of your business and make it grow faster.

Different businesses have different needs, and it all boils down to determining what best for your customers, your people, and your business in whole. If you’d like to explore your outsourcing options, it wouldn’t hurt to consult experts working with third-party logistics companies like State Transport.

Source:

3 Surefire Signs It’s Time to Start Looking for 3PL Logistics, MKM Retail Distribution

Does Your Business Need a Third-Party Logistics Provider? Logistics Crossing

3pl services are sought for their shipment and packaging resources that businesses initially don’t have or can’t afford to have. For this reason, it is important to build a good professional relationship with 3pl providers and not merely give them goods for delivery then expect a job well done. It takes proper management and cooperation for a partnership with leading logistic companies in Melbourne to turn out for the best.

When choosing a 3pl provider, it is advisable to hire companies like State Transport who have the knowledge and experience to carry different kinds of items, from food products to machinery. The products are also better taken care of in warehouses with AQIS (Australian Quarantine and Inspection Service) and HACCP certification for quality packaging and shipment. Most of these transport providers also have a personalised approach to handling goods in order to accommodate every client need.

An important part of any relationship is open communication, and that’s certainly true when it comes to your 3pl provider. Regardless of how many positive ratings a 3pl provider has, their people also have to make plans for their system and infrastructure to meet specific instructions that you are responsible for giving them. With this concept, both you and the provider have to agree on proper product descriptions and labelling to foster reliable and accurate delivery.

Bear in mind that logistic companies are supposed to be your business partner, not just your back-up plan for last-second distribution (assuming that they are capable of these emergencies). For the most part, logistic services do include urgent deployment of trucks and semi-trailers but it would be more beneficial if you determine their assets first before contracting them.

The best thing about hiring a Melbourne logistics company is being able to control how much you can use their supplies and make their own adjustments as your business grows. A good logistics provider will also adapt using the latest technologies to improve their services.

Sources:

Top Mistakes New 3PL Customers Make. Business2community.com

6 Secrets to Finding the Right 3PL. Inboundlogistics.com

A third-party logistics (3pl) service is a cost-effective solution for a business’ logistics requirements. Getting the services of such a provider reduces operating costs for many small businesses who don’t need to employ additional workers for product delivery. On the other hand, the provider may make necessary adjustments to accommodate business growth, and even adopt the latest software and machineries to provide better service to their clients.

To get the assurance they need, local businesses should work with a 3pl in Melbourne like State Transport Company with AQIS (Australian Quarantine and Inspection Service)-accredited warehouses for quality packaging and storage. Clients of these companies are guaranteed a safe and secure environment for their packages until they reach their destination. Included in reliable 3pl companies’ services is a warehouse management system with a pick and pack operations for a strategic logistics movement.

As with any dealings, open communications is essential to a successful 3pl-client relationship. Distance often presents a problem for regular personal meetings, so communications are often done through emails. While these certainly help, occasional face-to-face meetings and productive phone communications are needed.

In building any professional relationship, the right amount of trust has to exist, with the client having full confidence that the 3pl company will do what it takes to ensure the desired results are achieved. On their end, the 3pl company will rely on the cooperation of the client in providing the details and information they need for the smooth processing and transport of goods. It would also be advantageous for the partnership to allow some flexibility in resolving any logistical issues. Understand the problem, and consider various solutions instead of insisting on just one.

Setting a benchmark for the 3pl provider’s performance will also help you measure their competence and reliability. This will enable you to observe how well they run their operations and adapt necessary changes in case something goes wrong.

As the reach of businesses continues to grow along with the rise of e-commerce, an established Melbourne warehouse and logistics service can be your business partner instead of a mere back-up plan.

Sources:

Tips to Make Working with a 3PL Easier. Business2community.com

Third Party Logistics. Ecommerce.about.com

Freight forwarders in this article are companies that transport or ship products to individuals or corporations. Some manufacturers use them to deliver to clients, or large customers hire them for their distribution. Freight forwarders, in the original sense of the word, used to be primarily for the import and export industry, but they have expanded to service the local industries and have become very important because of the help that they bring to businesses of all kinds and sizes.

Benefits of Freight Forwarders/Transport Companies

Freight forwarders take care of various logistical tasks for transport and storage. This usually includes preparing the documents needed for transport, arranging for cargo space, cargo insurance, negotiating freight charges, and warehousing. They make sure that the delivery of goods go smoothly and they can handle any issues that may arise. They know the best routes and modes of transport depending on the client’s needs.

If a company makes use of a freight forwarder, the company can cut costs because forwarders deal with a number of consignments. This means that they can consolidate loads that are heading towards one destination to keep the charges down.

Another advantage of using freight forwarders is that they handle ancillary services, like customs documentation and clearance, for example. They can also provide risk assessment and management, bills of lading, supply insurance services, and inventory management.

How Freight Forwarding/Transport Companies Work

A freight forwarder would typically provide estimates to the client and the factors that would affect the price are origin, destination, and special handling requirements such as refrigeration for hazardous or perishable materials. Once the freight forwarder and the company have come to an agreement, the forwarder would then make all the necessary arrangements and would oversee the whole process until the delivery is complete.

Hiring a freight forwarding or transportation company is really beneficial for businesses and corporations because transporting their products entails plenty of paperwork and logistics. By letting  a delivery service in Melbourne such as State Transport take care of these tasks, the client can simply focus on the products to be transported.

Sources:

What Is Freight Forwarding? wiseGEEK

What a freight forwarder can do for you, Business Info

In the event that you need to ship a significant amount of perishable cargo, you have to be alert and precise at all times to ensure that the products arrive virtually unscathed. There are several important factors you must consider on such a shipment, and some of them are as follows.

Type of Cargo

Perishables are normally one of two groups: food and pharmaceuticals. For food, the concern is simple; they’ll spoil if you’re not careful. Perishable food typically requires a reliable cold source (i.e. an ice pack or any other related item), insulation, and appropriate cushioning.

For pharmaceuticals, it’s mainly a case of temperature maintenance. Rendering a storage environment that’s too hot or too cold could mess up medications significantly. Experts recommend that pharmaceuticals be kept in temperatures between roughly 20 and 25 degrees Celsius for optimal quality.

Shipment Method

When it comes to shipping perishables, transporting them as quickly as possible is the name of the game. While you’d want to do everything in your power to ship your goods fast, though, you’d also want to carefully balance speed and cost. Being ripped off is never an option—you wouldn’t want to have something fast but incredibly expensive, and vice versa. Fortunately, various transport companies in Melbourne such as State Transport has you covered with an excellent balance of shipping speed and cost.

Environmental Conditions

Obviously, different seasons bring with them varying shipping dimensions. For instance, you wouldn’t have to worry as much about heat during winter and vice versa, though you’ll still have to strictly monitor temperatures during shipping if you’re transporting pharmaceuticals or any other temperature-sensitive cargo. As seasons change, you’ll have to adapt your shipping methods to match them.

Shipping perishable items may be extremely challenging, but negativity shouldn’t reign. When it comes to such high-risk shipments, nothing beats thorough, careful planning. If you know your cargo, your carrier, and the options you have, your goods can arrive at their destination perfectly intact and you’ll see a steady stream of revenue afterwards.

(Source: Shipping Perishables Without Going Bananas, Inbound Logistics)

A majority of (if not all) local exporters would be suffering a huge blow to their overheads. Some shippers might even be forced to switch to another port just to save on costs, even if they would have to sacrifice some parts of their business and resources, which puts some jobs at risk. Experts predict that the change could be severely felt by the Victorian government and its people.

If the massive price hike does pull through, businesses from any industry will have no choice but to shoulder the increased costs or pass it on to consumers. When you face the problem, you will need to devise ways to manage your budget more creatively, such as cutting back on freight services. Here are some practical tips from Melbourne logistic companies to reduce your freight costs:

Make bigger shipments.

One of the most effective ways to lower freight costs is to consolidate shipments. The bigger your packages are, the lower the basic delivery costs would be. You could ship in larger batches of orders by banding boxes together or packaging them in big containers. Adjust some parts of your delivery operations, do the math, and decide if the savings would be worth it.

Shop by dates, not by service type.

Make sure you get the most cost-effective service by checking the rates per day. This would allow your customers to receive their orders on their preferred date at lower costs. Giving them ground, second day, or next day options could be more expensive when you calculate the costs, and they could even get their order at a later day.

Keep accessorial costs and other expenses in check.

Changing addresses or correcting other information, indicating inaccurate package weights, shipping packages with irregular dimensions – these and other factors can earn you surcharges. Not using your freight service provider’s packaging may also be costing you more. Make sure you avoid the unnecessary accessorial costs and overheads.

Look for reliable transport companies with affordable rates.

Of course, you need to compare the freight service rates and guarantees. You don’t want the extra costs of losing a package or having it delivered in an unsatisfactory state to your customers. An experienced logistics company in Melbourne, such as State Transport, offers flexible freight services that can fit your budget and ensure that your shipments are professionally handled.

(Source: Rent hike of 800 per cent at Port of Melbourne will affect ‘everyone in Tasmania’, ABC, March 6, 2015)

If your company has warehouse needs, you might find it too expensive to invest in an industrial property. Although there are high returns linked to buying these types of commercial property, they come with high risks, too. They imply a higher cost of entry for your business, especially in a top industry hub like Melbourne, where real estate is more expensive than remote locations. You would also need to consider building maintenance expenses and manpower.

These start-ups and small businesses can turn to 3PL warehousing. 3PL or third-party logistics providers works with companies that need expansive storage facilities and inventory management services (e.g. unpacking, packaging or shrink-wrapping, labelling, audits).

When and Why You Need It

The costs and labour associated with owning and operating a large Melbourne warehouse will be shouldered by the 3PL provider, so you won’t have to spend too much on these capital investments. You would therefore be able to spend your resources on other operations or necessary business assets (office staff, manufacturing equipment, or company vehicles perhaps). Of course, you also won’t need to hunt down industrial properties you can afford in locations that you’re comfortable in.

You can also improve your business efficiency by maximising Melbourne 3PL warehousing services. For instance: your provider may offer labelling, electronic scanning, or invoice generation using advanced software and other tools. This can help you better monitor and audit your inventory and keep track of your supplier or customer transactions. If your provider offers these services, they are responsible for training staff to ensure that your products are stored and organised properly, which can make your shipping quicker and more accurately done.

Aside from allowing you to outsource your warehousing tasks, logistics companies like State Transport may also offer other useful logistics solutions for your business, such as freight or transport services. Getting comprehensive services from these companies, you may be able to further reduce your investments and enhance the efficiency of your operations. Ultimately, these advantages can help you earn more revenue and sustain your business longer.

(Source: Beginner’s guide to investing in commercial property, realestate.com.au)