Friday, April 24, 2015

Business 2 Consumer Success Strategy

While most companies selling directly to consumers can be referred to as B2C companies, since the dotcom boom of the late 1990s, it has come represent an e-commerce model involving a financial transaction or online sale between a business and aconsumer. The demands of B2C (business to consumer) e-commerce differ significantly from those of B2B (business to business).

First, the opportunities to drive efficiencies of fulfilling and moving product in bulk that are found in traditional logistics disappear, to be replaced by direct-to-consumer orders that are one-by-one and require a pick, pack and ship operation.  Second, e-commerce sales are highly promotion driven, resulting in large swings in order volumes (even changing from day to day).  And last, online orders tend to be unpredictable, both in terms of overall volumes and product popularity (a single mention in the right social media venue can drive sales through the roof unexpectedly).  Add in the ever-changing delivery environment (e.g. Dimensional Weight Pricing, aka DIM), and a partner experienced in supporting a B2C e-commerce fulfillment lifecycle becomes a strategic necessity to make your B2C model successful.

Vision Media Management can help you manage the B2C e-commerce challenges of individualized orders and quickly changing volumes through effective use of technologies such as intelligent order sequencing, predictive packaging, and pick to voice adaptive technology. Call us to learn more about the B2C strategies we offer to support your e-commerce business – which can result in reduced costs and an improved customer experience.

Vision Consumer Products Fulfillment has decades of experience and industry expertise in consumer products fulfillment services.  No matter who your customer is, we treat your customer as our own.  We know what makes a raving fan out of an individual customer, as well as what makes a business partner trust you with their business.  Call or email us to learn how.  We’re certain we’ll be the best fulfillment warehouse partner you have ever had!

Thursday, April 16, 2015

What Is 3PL Fulfillment?

You’ve probably seen or heard the term 3PL tossed around when the conversation turns to logistics.  But just what is a 3PL?  According to Wikipedia, “A third-party logistics provider (abbreviated 3PL, or sometimes TPL) is a firm that provides service to its customers of outsourced (or "third party") logistics services for part, or all of their supply chain management functions.”  But what does that actually mean?  And why should you even care?

The logistics provided by a 3PL can include warehousing, transportation management software, freight rate negotiation, in-depth reporting, forecasting, freight bill auditing and more. In some instances, a 3PL will specialize in certain industries, or types of logistics such as international commerce.  There are many benefits a 3PL can bring to your organization.

Because logistics is their core competency, they can deliver cost and time savings while providing a depth of experience based knowledge and industry relationships.  You use the 3PL’s equipment and infrastructure, rather than building your own, which lowers your capital commitment.  And key to managing the changing demands of seasonal highs and lows and growth, a 3PL can provide a flexible and scalable logistics solution option.  Given the swiftly evolving transportation environment of today, a partner who can bring solutions to managing rising transportation costs and supply chain challenges can be key to your company’s success.  Talk to Vision – we can help you understand and plan for your transportation future.

Vision Consumer Products Fulfillment has decades of experience and industry expertise in consumer products fulfillment services.  No matter who your customer is, we treat your customer as our own.  We know what makes a raving fan out of an individual customer, as well as what makes a business partner trust you with their business.  Call or email us to learn how.  We’re certain we’ll be the best fulfillment warehouse partner you have ever had!

Friday, April 10, 2015

How To Manage Rising Freight Costs


As Mike Regan, Chief of Relationship Development for TranzAct Technologies, recently discussed on www.logisticsmgmt.com, transportation costs could see rate increases of 15% to 20% over the next three years. 

There are multiple trends driving these increases, but among the key points are the change to Dimensional (DIM) parcel pricing by UPS and FedEx (among others), the impact of meeting expanding regulatory requirements (think safety, fuel efficiency and emissions reductions), and no end in sight to the challenges in driver recruiting and retention, which is pushing labor costs higher and impacting capacity.

Add in the changing delivery demands such as increasing last-mile volume and tight capacity supply for some niches, and it seems a given that transportation costs are going nowhere but up.
Rising freight costs impact the bottom line.  So – have you briefed your c level executives regarding the future of transportation costs?  No one likes to be blind-sided, especially by bad news.  As the saying goes, “Bad news doesn’t age well.”  Executives want the opportunity to proactively look for solutions rather than dealing with fallout.  They also need to accurately forecast and plan for the future and that means it’s critical that they have this information.  But how do you know what’s going to impact your organization?  What are the options for managing the future changes and increased shipping costs?  You know your boss is going to ask – and that’s where a great fulfillment partner can help.  Transportation is the backbone of their business, and they’re on top of the trends and working on ways to optimize their options to their partners’ benefit.  Talk to Vision – we can help you understand and plan for your transportation future.

Vision Consumer Products Fulfillment has decades of experience and industry expertise in consumer products fulfillment services.  No matter who your customer is, we treat your customer as our own.  We know what makes a raving fan out of an individual customer, as well as what makes a business partner trust you with their business.  Call or email us to learn how.  We’re certain we’ll be the best fulfillment warehouse partner you have ever had!

Friday, April 3, 2015

The Impact of Dimensional Weight Pricing

2015 saw the implementation of Dimensional Weight Pricing (DIM) on ground packages smaller than three cubic feet by FedEx and UPS.  DIM is calculated by multiplying length by width by height (all in inches) and dividing the result by a “DIM factor,” which is currently 166 for domestic shipments for FedEx and UPS.  Previously, the rate ground parcels smaller than three cubic feet was based on actual weight – given that its estimated that up to 75% of the most used box sizes fall into this category, some industry experts expect an average increase of approximately 30% fro
m the change to DIM pricing.  And that’s on top of the 4.9% annual increase taken for 2015 by FedEx and UPS!

So what if you don’t have a plan to manage the impact from Dimensional Weight Pricing?  Or you’re not sure the plan you have is actually working?  It’s not too late to take action – and if you don’t have the expertise in-house to manage all the factors, as noted by Kevin Fletcher, SVP for Kenco Transportation Services, “A logistics partner with expertise and success in engineering parcel solutions might be an option. The right partner will have comprehensive analysis resources and tools, a solid grasp of the market from both carrier and shipper perspectives, deep understanding of parcel-pricing models, senior-level relationships with carriers, and robust dashboard and reporting capabilities.”1  And that is where Vision can help – this is what we do, day in and day out, optimizing solution options to build the best combination to meet the needs of our partners.

Vision Consumer Products Fulfillment has decades of experience and industry expertise in consumer products fulfillment services.  

No matter who your customer is, we treat your customer as our own.  We know what makes a raving fan out of an individual customer, as well as what makes a business partner trust you with their business.  Call or email us to learn how.  We’re certain we’ll be the best fulfillment warehouse partner you have ever had!