With third-party logistics providers on the rise, it is evident that the unprecedented growth the world witnessed in the e-commerce sector is here to stay.
Keeping up with the fast-changing landscape of the economy presents major challenges for 3PLs.
Here are some of the most notable challenges in 3PL distribution:
1. Meeting Consumer Expectations
COVID-19 has demonstrated exactly how fast consumer expectations can change. As a result, many companies have had to develop e-commerce fulfillment and online delivery options quickly while also adhering to strict operative guidelines. To make matters more complicated, e-commerce giants like Amazon have set the standard for consumers by offering free two-day shipping, accurate and fast order fulfillment, and full visibility of product-tracking.
To keep up, 3PLs can utilize dynamic storage solutions, warehouse automation hardware, and warehouse design consultation services to optimize their storage strategy and space. Solutions providers like ABCO Systems can help 3PLs design their e-commerce fulfillment centers to optimize throughput, drive down costs, and stay efficient.
2. Acquiring + Retaining Talent
A 2019 Report by Inbound Logistics showed that 64% of 3PL providers listed finding, training, and retaining qualified labor as a challenge they face. To stay competitive, providing high-quality service is of extreme importance in a consumer-focused industry. Without acquiring and retaining the right talent, e-commerce brands stand to lose a positive reputation, face slower business growth, and potentially lose money on higher labor costs.
To offset the risks and costs associated with turnover, providers can turn to 3PL warehouse automation solutions that reduce fulfillment times for orders. The right solution can reduce labor costs tremendously, and simplify operations in a way that simplifies the training process, too.
3. 3PL Warehouse Design + Automation
In the dynamic landscape of today’s economy, it’s no surprise that many distribution and e-commerce fulfillment centers today are struggling to scale their warehouse capacity to match demand. It is easy for warehouse spaces to become stagnant with outdated setups that past operations once required. To work around the conundrum of changing storage and capabilities requirements, 3PLs can consult 3PL solutions providers for insights on how to optimize their warehouse design and solicit specific recommendations on customizable storage solutions and 3PL warehouse automation hardware that maximize warehouse space and improve order fulfillment operations on a daily basis. Though automation requires a large initial investment, it reduces an operation’s overall cost-to-serve and can improve ROI in less than 24 months.
4. Shipment Visibility + Analytics
Managing inventory from a wide range of vendors can make it very difficult for 3PLs and e-commerce brands to ensure fast shipping times. To meet consumer standards, 3PLs must rely on leading-edge warehouse execution systems to be able to track and record all warehouse operations in real-time. To continuously manage those expectations, 3PLs must also depend on data analytics to identify and modify inefficient across their operations. By automating their supply chain processes and integrating them with all suppliers, 3PL companies stand to create much more long-lasting relationships with their consumers.
In 2020, the world of e-commerce saw unprecedented growth due to COVID-19, with even the largest e-commerce retailers like Amazon struggling to keep up with the demand. As we know, Amazon has set the standard for order-fulfillment for fast and/or free shipping. Intuitively, a 2021 report by Shopify, a leading e-commerce store platform, shows that 67% of U.S. consumers expect either same-, next-, or two-day delivery, with a full 65% of consumers checking free-shipping thresholds before even adding something to their carts.
Moving forward into 2021, third-party logistics providers continue to adapt to this fast-changing landscape in order to meet the ever-growing need for e-commerce fulfillment.
Here are some of the key ways 3PLs can prepare for another year of growth in e-commerce:
Warehouse Automation
Looking to 2021, 3PLs will have to rely on integrated supply chain solutions like automation to increase inventory control. 3PLs benefit from cost-to-serve modeling to do so. In other words, the more 3PLs can save on their internal process efficiencies, the more profit they can make. Warehouse automation hardware like conveyor systems, print & apply solutions, inbound & shipping sorters, put-to-light technology, order-fulfillment picking devices, and infrared technology for application weighing are all worthy automation solutions that can make growth in 2021 seamless.
Automated Storage
During peak-growth, 3PLs often need to expand their warehouse capabilities. Thus, 3PLs should look to warehouse storage solutions to increase their operational storage efficiency. According to 3PL news, a 3PL industry newshub, automated warehouses use up about 40% less floor space than traditional warehouses. To decrease your operation’s footprint, automated warehouse storage solutions like push back storage rack systems, pallet flow conveyors, automated pallet storage and beyond can all reduce 3PLs storage costs.
Labor Management
3PLs looking to follow the largest e-commerce retailers lead in labor management can benefit from basic labor management practices moving into 2021. These practices include:
Surveying team members on their concerns or challenges with new technologies
Implementing change management teams to oversee changes
Using robust systems to track laborer performance
Creating systems for worker and supervisor feedback
And putting worker safety at the forefront of all warehouse operations
Risk Management
A 2021 3PL Logistics Study by Infosys Consulting, Penske Logistics and Penn State University showed that readiness and continuity planning is a priority for 3PLs post-pandemic. Thus, internal strategies for unforeseen obstacles and challenges in the supply chain should be laid out for individual 3PLs in the coming year to better prepare.
In 2021, the 3PL businesses can emerge through another year of rapid growth by committing to smart practices and cost-saving hardware. By streamlining order fulfillment processes and investing in high-quality, innovative solutions— 3PLs may come out the other side just in time to grow with the trends.
ABCO Systems is constantly striving to provide the most effective solution for our customers. Whether it be improving productivity, saving time, or saving space, our partner, Interlake Mecalux, has created a product that can do just that. Interlake Mecalux Pallet Shuttle Systems.
By replacing forklifts, this radio shuttle solution considerably reduces operating times and enables SKUs to be grouped by channels rather than by entire lanes. The pallet shuttle system is a great way to increase the amount of inventory you can store in your warehouse. The system works with minimal clearances between levels, which permits high-density storage. By expanding vertically, you will be able to immediately see the abundance of storage space that was always available in your current warehouse.
The pallet shuttle system comes with many advantages that will seamlessly streamline your Warehouse Management System. The pallet shuttle system saves space and time, while increasing warehouse productivity and safety. With a load lifting cycle of just 2 seconds and with a single command, the shuttle can progressively fill up or empty out an entire lane by swiftly travelling at speeds of up to 295 ft/min.
The Pallet Shuttle system offers a compact storage solution that reduces operating costs and improves supply chain performance. This intelligent warehousing system allows for quick, repetitive, in and out pallet transfers.
ADVANTAGES
Save space
Store more pallets deep, since channels can stand more than 131 ft high. The maximum verticality is determined by the handling equipment used.
The system works with minimal clearancesbetween levels, which permits high-density storage.
Built-in sensorson the shuttles help position loads intelligently, eliminating empty spaces in the storage lanes. As a result, the effective capacity of the warehouse (which considers goods flowing in and out of the warehouse) reflects its physical capacity.
Save time
Loading and unloading times are reduced, since the operator does not have to move around inside the lanes.
The shuttle can travel at speeds of 295 ft/min when empty, or 148 ft/min when loaded.
Load lifting cycle of just 2 seconds.
With just a single command, the shuttle can progressively fill or empty a whole lane.
For more information on the Interlake Mecalux Pallet Shuttle or additional services, products and solutions contact our team at ABCO Systems.
ABCO Systems Print and Apply Solutions – Panther Industries.
Increase Throughput and Reduce Labor Costs.
Partnered with Panther Industries, ABCO Systems can incorporate Panther labeling automation solutions to maximize your throughput. Supporting e-commerce, retail, distribution, logistics, and mail-order pharmacy markets, a labeling automation solution from Panther Industries is designed to move your items through your system – fast. Specifically, the Predator system which can label packages of varying heights – in motion – with incredible speed and accuracy.
Operational efficiency within warehouses and distribution centers is pivotal to success especially in the current environment. ABCO Systems is here to help your operations become aligned with the systems needed to increase throughput and accuracy and improve processes to have your fulfillment center achieving excellence. ABCO Systems provides Print and Apply systems as standalone and fully automated conveyor systems. Print and Apply systems are extremely beneficial in the shipping and manifesting process.
Typical Print and Apply systems include a barcode scanner to identify the particular parcel, a print/apply machine, conveyor for inducting, labeling, and discharge, a verification scanner to read the printed label, software to merge data, and communicate with the host system, and shipping software as required. Warehouse automation solutions such as Print and Apply will provide enormous benefits in order fulfillment, speed, accuracy, and overall cost savings. Print and Apply solutions provided by ABCO Systems are an effective way to remove the increasing expenses associated with rising labor costs.
The industry-leading Predator top apply all-electric print-and-apply solution from Panther Industries will increase your throughput, reduce expenses, and decrease waste or loss due to human error.
Key Features of the Predator Labeling System
100% electric servo drive (no compressed air)
High speed applicator – up to 200 IPS
Adaptive Touch technology provides light touch during label application process
Adaptive applicator automatically adjusts to carton height, ensuring accurate and consistent label placement
Label application distances up to 58” (tamp), or 18” (swing arm)
Remote-mounted 7” touch screen display
OEM print engine design for off-the-shelf replacement
Error reporting for fast, efficient troubleshooting
Whether you ship hundreds or thousands of packages per day, your operations need speed, accuracy, and efficiency. Together, with Panther Industries, ABCO Systems will provide leading print and apply technology solutions for superior printing and seamless integration.
Safety is critical to the continuing function of your daily operations. Accidents can happen anywhere to anyone – a trainee, a worker who takes a wrong turn, or even an experienced operator having an off-day. Efforts to protect your racking systems not only helps to reduce damaged merchandise but it also helps ensure the safety of your valued employees.
Forklift accidents can result in pallet rack damage, costly repairs, downtime, damaged inventory, and injury to workers. Rack protection is essential to maintaining your inventory and key assets because they keep the structure safe at various impact points.
No matter the size of your storage facility, pallet rack protection will increase your productivity and eliminate damages due to narrow aisle for trucks, lifts, and individuals encountering sensitive rack uprights. These factors are important particularly when you consider the damage a forklift can cause. ABCO provides the most suitable protector or guard for your pallet rack to ensure safety and no damages.
ABCO welcomes the opportunity to visit you and assess any at-risk products. There are several ways to protect your racking. The rack aisle protector, rack post protectors, wire mesh rack guards, and floor angle guide. These all offer protection to the most vulnerable parts of your warehouse and business. They can be formatted into the size and shape to fit your protection needs. ABCO helps to protect your inventory, investment, and your valued employees.
Contact us here for all of your rack protection needs.
When considering a new warehouse or distribution facility one of the first things that need to be addressed is your pallet storage system.In this multi-part blog we will look at the different types of storage available to meet your needs and discuss the pros and cons of each.
Selective Storage Systems
The most commonly used and the most basic of all pallet rack systems is Selective Pallet Racking.Selective Pallet Racking is typically designed with single and double rows of racking, spaced with aisles from 9’ or larger, depending on the lift equipment that will be used.
When we begin designing for a standard Selective Storage System, our first step is to evaluate the number of pallet SKUs and quantities of each that are stored at any given time. We then determine the type of rack and the optimal aisle spacing to match your facility.This is driven by many factors however one of the most important things is to look at the facilities column spacing.Many years ago, the easiest design would be a system with 40’ column spacing, utilizing sit-down lift equipment.In this scenario you would know that 2 single rows and one double row of Pallet Rack would fit perfectly throughout the facility.As warehouses have been built taller, the use of sit down lift equipment in the pallet storage area has given way to the more nimble, compact and higher reaching stand up reach trucks. These new lifts allow our design team to optimize space using narrow aisle and Very Narrow Aisle (VNA) configurations. This will be discussed in a future article.
Selective Pallet Rack is a good system when you are dealing with a multitude of different pallet SKUs.This system allows full access to each pallet without double handling.The reason this system is not the end all be all of pallet storage is the amount of space it requires to store your pallets.If you require multiple locations for the same SKU then this system may not be the best fit for you.
A selective system is a very good solution for almost any type of storage and is usually very inexpensive when greater density is not required.However, as you need more space and continue to grow you may want to begin to think of the other options available to you.
Call today for more information at (201) 507-0999.
