Freight Expectations: A Tale of Logistics and Strategy

My face when the ETA changes from 'Today' to 'Delayed’

Logistics. This invisible force maintains the many facets of supply chain. Without it, there would be chaos.

In the world of supply chain, logistics can be defined as: the planning, execution, and management of the movement and storage of goods, services, and information across the entire supply chain.

But you probably already knew that.

Practically, logistics is the process of efficiently managing the entire supply chain – from sourcing raw material to final product delivery and everything in between.

Some very important considerations on the supplier side:

Collect versus prepaid freight
Shipping and palletizing
Cost considerations

To ship or not to ship, that is the question 🤔

Using Prepaid Freight, you assume responsibility for all the logistics—from packing to hiring the carrier—and for the cost of transporting the products. Using Collect Freight, the retailer is responsible for all logistics and any issues that may come up along the way.

TL;DR There are pros and cons to both Collect and Prepaid Freight. And it comes down to how much control you want over the process.

Pros and Cons of Collect:

Relinquishing some logistical control allows you to utilize a larger company’s logistics technology to manage everything.
It also provides peace of mind should any issues arise since the retailer will handle those.
With Collect Freight, the retailer assumes all responsibility for accessorial fees.

Pros and Cons for Prepaid:

If the supplier manages logistics, it allows you to have control over the entirety of the process.
This also means you incur all costs associated with bumps in the road.
With Prepaid Freight, you must be prepared for and pay for any accessorial fees.

Need a liftgate? That's extra. Delivering to a residential area? That's extra. Breathing near the shipment? Probably extra.

💰 Accessorial Fees include:

Liftgates, if they are necessary for delivery.
Fees may incur depending on where the product is being delivered. For example, if products are being delivered to a residential address or a tradeshow, or whether or not the delivery driver has to enter the delivery location.
Accessorial fees also encompass protection for goods being shipped as needed.

It was the best of shipments, it was the worst of delays

For argument's sake, let's say you decide to go with Collect Freight. 🚛

There are still decisions to make. Mainly, how will you make sure your kids are ready for the bus ride to school? (AKA, how will you pack and ship your products?)

With shipping, you have two primary options: Less Than Truckload (LTL) or Full Truckload (FTL). Again, both methods have pros and cons.

Pros and cons of LTL

LTL can be an efficient way to ship products on a small scale if you know you won't use the entire truck.
Using a major enterprise to ship your products allows you to utilize their streamlined processes, both in communicating with the retailer, tracking the shipment, and managing any issues that may arise.
LTL shipping typically takes longer than FTL because the truck has to pick up and deliver multiple shipments from multiple suppliers.

Pros and Cons of FTL

FTL would be necessary for shipping larger amounts of product since you would likely need more truck space, if not the entirety of the truck's capacity.
FTL tends to be more expensive than LTL because you are paying for the entire truck, even if you don't use all of it.
FTL minimizes potential damage or misplacement because the product stays in one truck the entire time.

If you use LTL, you will also most likely utilize Collect Freight.

FTL or LTL, it is also important to ensure the trucks are packed correctly and efficiently. Even if you let the retailer handle the logistics, you will still incur costs if your products are damaged en route.

It is a truth universally acknowledged that a poorly stacked pallet is a catastrophe waiting to happen

Me, the supplier, confident that my shipment will arrive on time and undamaged

The standard pallet size is 40" by 48" and is generally sufficient for most shipping needs. You can also choose to use custom-made pallets, but this would only be necessary if the standard size is insufficient for the products being shipped. You may want to consider a custom pallet if the products are too large for a standard pallet or if you are not shipping enough products to utilize the entire pallet.

By under or over-utilizing a standard pallet, you risk damaging your products, which will be costly in the long run.

Want more information about palletizing? Check out this article on TI/HI! 📦

Logistics may keep the supply chain world running, but they don't have to run you into the ground!

Retailer News 🗞️

Retail Dive

Walmart invests in automation as it sells robotics arm

“The retail giant will fund the buildout of more than 400 accelerated pickup and delivery centers as part of its agreement with Symbotic.”

Supplychain Dive

AI, automation enrich Kraft Heinz’s supply chain

“Kraft Heinz is leveraging artificial intelligence, machine learning and a dedicated control tower to improve efficiency, quality and visibility within its supply chain.”

Freight Waves

Steel, aluminum tariffs may hurt auto industry, supply chain risk expert says

“President Donald Trump said Sunday there won’t be exemptions on steel and aluminum tariffs and reaffirmed that additional import duties on everything from autos to lumber to appliances will go into effect on April 2.”

⭐ Rick’s Tips ⭐

“Disputing deductions at Walgreens can be challenging – especially since every dispute must be handled via email. When submitting a dispute, it is important to use the correct dispute contact, provide solid documentation (POD, BOL, invoice), and keep your subject line consistent. A clear, well-documented email can mean the difference between a denied dispute and recovered revenue!”

Let's Circle Back

✨ 7 Questions with Sharon Hayford ✨

1) What is your role in SuplierWiki?

Content Marketing Manager

2) What is your favorite task to do at SupplierWiki?

I am new to this role! But I love that I get to write for my job.

3) What’s your favorite way to unwind after a busy day at work?

Playing Stardew Valley on PlayStation, and cuddling with my dog.

4) If you could live anywhere in the world, where would you choose?

Edinburgh, Scotland. I have been fortunate to have visited there twice!

5) If you were stranded on a deserted island, what three items would you want to have with you?

Potatoes. You can make so many different foods with potatoes. And I really can’t live without french fries.
A book to read (and re-read) so I don’t get bored.
A water filter. Gotta stay hydrated!

6) What’s one book, movie, or TV show you think everyone should experience at least once?
Howl’s Moving Castle (movie). The book is good too!

7) What is a fun fact not many people know about you?

I was homeschooled all the way through high school.

Until Next Time,

Vendorville ♥️