Posts

What is Multimodal Shipping?

StrategyDriven Tactical Execution Article |Multimodal Shipping|What is Multimodal Shipping?When you ship items from your warehouse, you likely place them on a truck and send them on their way. Not all shipments stay on the ground the whole time, though. An increasing number of transportation providers are implementing multimodal transport to improve the efficiency of their operations and get shipments to their destinations at a lower cost.

In the simplest terms, multimodal transport or multimodal shipping means that a single carrier uses a combination of round, air, sea, or rail transportation to move goods from one location to another. Opting for this type of shipping offers a variety of benefits to both the shipper and their clients alike, and preserves the supply chain in the face of challenges brought on by major businesses like Walmart and Amazon, as well as disruptions like those created by the COVID-19 pandemic.

Multimodal vs. Intermodal Transport

Before getting into the benefits of multimodal transport, it’s worth discussing the difference between multimodal and intermodal transport.

Although both types of shipping use at least two forms of transport (for example, land and air), the primary difference is that intermodal shipping uses multiple carriers. In other words, one carrier manages the ground portion of the shipment, and then hands off the shipment to another carrier for the air transport, or vice versa. The shipper pays each carrier separately, and your reports, receipts, and tracking details will come from each carrier individually, and only deal with their portion of the journey.

Intermodal can help speed up shipments, but it can be complex to manage. That’s why many shippers are turning to multimodal shipments instead.

How Multimodal Shipping Benefits Businesses

Opting for multimodal shipping can benefit your business in a number of ways.

Reduced Costs

Although you may receive competitive rates from an intermodal shipping company, opting for multimodal can be a more cost-effective option. Transport providers often provide more competitive rates when you allow them to handle the entire shipment, and offer priority status. Multimodal shipping can also result in tax incentives for shippers. Because these arrangements typically involve making infrastructure investments, companies that opt for multimodal transport enjoy certain incentives that would not otherwise be available. Multimodal transport also reduces carbon offset costs, further reducing expenditures.

Improved Communication

In contrast to intermodal shipping, multimodal shipping only requires communicating with a single operator. The central provider manages all of the communication with the actual transportation providers, ensuring you have a single point of contact in the event there is an issue. For instance, if you receive data from an impact recorder indicating rough handling or excessive vibration, you can work with the multimodal provider to solve the problem.

Faster Delivery Times

There are times when intermodal transport may be the faster option, but multimodal transport is often the faster option. Federal regulations govern how long a single carrier can move freight in one trip under the Electronic Logging Devices (ELD) Mandate. Essentially, this only allows freight to be in motion for a certain amount of time before the operator must rest. It’s mostly applicable to trucking, but it does add time to truck transport.

When a driver can transfer a load to another form of transport, like a train, though, the shipment is able to keep moving despite those limitations. Instead of sitting idle for 24 hours or more while the truck driver rests, the shipment reaches its destination more quickly. Using multiple modes of transportation can also cut shipping time for shipments traveling long distance. For example, shipping partially by air cuts a significant amount of time, even when the last leg is handled by truck or train.

Getting the Most from Multimodal Shipping

Using multimodal shipping can be beneficial to your company, but it does require proper management. That begins with evaluating all of the modes before selecting one for your shipments. Not all shipments are well suited for all modes, and what works for other companies may not be ideal for yours.

It’s also important to connect your transportation management system with the carrier, so you can effectively monitor your shipments at every stage. All of your freight processes should be data-driven and based on real-time, contextual data collected at every step of the shipment process. Armed with this information, you can implement efficient, cost-effective shipping policies and procedures that align with your company’s strategic goals and budget.

Winter Woes Won’t Keep Your Business Down, If You Do This

StrategyDriven Entrepreneurship Article |Winter Business|Winter Woes Won't Keep Your Business Down, If You Do ThisYes, winter is going to threaten every business regardless of whether or not there is a pandemic. It’s always been like this and may always be like this. Winter presents unique challenges that businesses have to prepare for every year. Not only is there a lot of snow and ice to contend with, but you have to deal with colder operating temperatures, less daylight time, more morale-boosting ideas to think of, and trying to beat your competitors during the seasonal rush. Not to mention, the challenge of meeting export and import needs too. But, winter woes won’t get your business down if you do these things.

Get shoveling, or not

Commercial snow removal is very popular for businesses and if you are interested in this, then we recommend you read this. Not only do they use professional heavy-duty equipment, but that will also mean that snow is carefully removed and safely taken away. But it also means that if you have a complex area such as a car park, you won’t be in any danger of doing unwarranted damage to your foliage, lighting, wiring, machines or curbs. And of course, you lessen your liability to injuries. Employees that have an unsafe car park or exterior to the business could slip, fall and get seriously injured. Not only will they need to get sick pay but they could sue you. So commercial removal is quick, easy and very effective when you have suffered a heavy snowfall.

Protect logistics chains

The number one challenge of winter is the travel. The highways and train lines are covered in snow and ice, making them a hazard. It draws logistics to a crawl and can harm your bottom line because you’re not getting supplies and inventory when you need it. So prepare beforehand and ready your logistical chains. But how?

  • Increase your fleet number temporarily. If you have a fleet of delivery trucks, you should seek to increase the number by 10-20%. So if you have 20 trucks, increase the number to 22 or 24. If one or two trucks break down, another is involved in an accident, another gets trapped, you at least have a technically, full strength fleet.
  • Export markets need some love too. Just because it’s slow and challenging in your local or national marketplace, doesn’t mean it’s the same on the other side of the world. You should seek to increase your export customers during this time, as you try to compete with your rivals.
  • Hire more. If you cannot handle your logistical challenges, hire those that can. Hire more drivers, more warehouse managers and employees to make sure you can meet the higher demand and keep things ticking over.

Keep morale high

Make sure the ambient room temperature is nice and toasty in the office. Keeping morale high with surprise hot meals for lunches, extra time for completing projects and providing mental health care for the holiday season, is so crucial.

It’s easy for businesses to suffer from winter woes as they battle the weather and the seasonal rush. But these things will keep your employees happy, your business open at all times and ahead of the competition.

Where Professionalism Is Important In Running A Business

StrategyDriven Entrepreneurship Article |Professionalism in Business|Where Professionalism Is Important In Running A BusinessSure, you can be as free and liberal with your brand as you want; you can present a silly and non serious front, or you can present a laid back and easy going front. Branding is all about what you want it to be, and who you want to attract!

But even with this in mind, even with the kind of customers you’re pulling in, when it comes to certain areas of running your company, there are quite a few factors in which you’re going to have to be professional. Here are three key components of business that require you to be skilled, experienced, and professional in your manner.

In Customer Security

Your customers need to feel secure when they’re shopping with you. They need to know their payment details are safe and will never fall into the wrong hands. And seeing as you’re the retail portal they’re relying on, this is up to you.

Both online and offline, you need to be professional about security. Sure, you lock up your shop and make sure there’s no cash in the till at the end of the day, but what about your website? Is it even encrypted, when the time comes to put in card details to pay for items? It’s time to check on that.

In Shipping and Delivery

You need to be very professional about the way you pack, ship, and deliver any and all products and services. You need to have a safe and secure way to get your packages from point A to point B, and without professionalism to guide your way, there’s a good chance your delivery options will be subpar for the time being.

It’s why you might want to look into courier services; this will allow you to have more control over the process, be able to bundle your shipping needs, and with a handy Transport Marketplace to make use of, you’ll have a surefire way to chop and change your delivery services as you need to. There’s nothing quite like speed to show off your professionalism!

In Running Your Sales

And finally, you need to be very professional about the amount of sales you’re bringing in. After all, when it comes to building a customer base, and then ensuring you’ve got plenty of return sales to make profit off of, you need to cast a sure and professional eye over your books.

And being able to balance your books is another area that requires professionalism; if you can’t do it yourself, be sure to outsource your issues here to a trained and experienced accountant. Bring in the skills you need to ensure there’s plenty of professional talent behind the scenes, and your business will steadily climb up the profit margins.

Professionalism is something every single business needs. If you’re not sure about what you can manage in terms of bringing the right experience to your customers, make sure you’re working behind the scenes first, and then brand yourself second.

3 Common Shipping Mistakes and How to Avoid Them

StrategyDriven Tactical Execution Article |common shipping mistakes |3 Common Shipping Mistakes and How to Avoid ThemDid you know that UPS and FedEx each ship around 34 million packages each day?

If you’re looking to ship a package, you need to focus on how you can avoid certain kinds of shipping mistakes. If you don’t do this, your package might experience some kind of damage while it’s in transit.

Below you’ll discover three common shipping mistakes that people tend to make. If you avoid these shipping mistakes, your packages should arrive safely at your chosen destination.

Let’s begin!

1. Not Paying for the Right Kind of Shipping

One of the biggest mistakes people make is not paying for the right kind of shipping.

Most of the time, this happens because people are trying to save money. However, in some cases, trying to lower the cost of shipping can often lead to an increase in overall costs.

That’s because the item you’re shipping might ‘break’ due to the fact that you didn’t select the correct form of shipping.

In some cases, you might select the wrong kind of shipping, simply because you don’t know much about shipping. For instance, if you’re looking to ship a painting, you might use a ‘standard’ form of shipping.

Yet, in situations like this, couriers actually offer a dedicated form of shipping for those that want to ship paintings. If you use such shipping, your painting will receive special treatment, and this will lower the odds of it being damaged during transit.

Following this, always make sure you speak to your chosen courier company before you ship a given item. They’ll be able to tell you what kind of shipping is right for your chosen item, and this will then help you minimize any issues.

2. Not Packaging Your Items Properly

A lot of people don’t know how to pack items properly, and so their packages often experience an excessive amount of damage during transit.

If you want to package your items properly, you should use some bubble wrap, or even ‘packing peanuts.’ You might also want to invest in a high-quality box that will be able to withstand lots of bumps and scrapes.

3. Not Focusing on Presentation

Another thing that people forget about when it comes to shipping is presentation.

This is especially important if you’re shipping out items as a business, as your packaging can have a big impact on how people perceive you.

If you want your packages to look good, you might want to hire someone to help you with the package design. You should also think about coating your packages so the design doesn’t fade while the item is in transit.

If you’re going to coat your packages, you can generally choose from aqueous coating or UV coating. If you’d like to learn more about each option, this post takes a closer look at UV coating vs aqueous coating.

Will You Avoid These Common Shipping Mistakes?

If you avoid these common shipping mistakes, your package should arrive safely at your chosen destination.

In some cases, you might still experience shipping problems, even though you’re doing everything right. This can happen if you’re working with a lackluster courier, and so if you’re in this position, you might want to work with someone else.

Did you like reading this blog post? Go to our blog to see some of the other content we have to offer!

Logistics For Your Business

It can become somewhat of a conundrum. Working out how to get your products from the manufacturers, to the storage, and then from that warehouse to the customer. All of the logistics need to be worked out and in play pretty early on in your business planning. Setting up your website, working on getting finances sorted, they are all part and parcel of a startup too. If you are selling a physical product then you’re going to need your logistical situation setup or at least well thought out and ready to go.

marcin jozwiak kGoPcmpPT7c unsplash

Before we take a look at the different points that go into logistics it is important to know how it will impact your business and what it actually is.

Many people get logistics confused with supply-chain. It is a part of it, but the two terms aren’t interchangeable. Logistics is the movement of goods and supply chain is that movement – however, it is also sourcing, cost of goods, relationship management and everything else.

“Leaders win through logistics. Vision, sure. Strategy, yes. But when you go to war, you need to have both toilet paper and bullets at the right place at the right time. In other words, you must win through superior logistics.”
 
Tom Peters – Rule #3: Leadership Is Confusing As Hell
Fast Company, March 2001

Priorities

It is something that most of the tie you don’t even think about. Because we are so used to having our deliveries the next working day, or same day. And when we go into a shop, we expect the products to be on the shelves. But behind the scenes, there are a lot of logistics in play. It has to be a well-oiled machine. When you are a customer, you get irritated when things aren’t available when you think they should be. When you are the owner – you need to make sure everything is where it should be.

Speed and cost will influence each other, and your customers too – what matters more? Speed or cost?

Planning

The whole process relies heavily on your ability to plan production and demand. You will know that you need 6 weeks for X product to arrive from China, and 3 weeks from mainland EU – so you can opt for a lower price for a longer shipping time. And you will then have a longer lead-in time for the product launch and release.

Process

You are going to want to try out a few different types of freight methods. If you have planned correctly, you can choose to have a more extended travel time, slower, but ultimately cheaper way or you have time to find the right contract logistics company for you. Your internal logistics matters here too. How fast can you process orders? Working on the basis that your initial planning has gotten products from manufacturers to your warehouse in good time, you’re ready to ship to customers.

If you are promising a specific shipping date, then you should make sure that you are 100% sure that is what you will be doing. Managing your customer’s expectations is always the aim. The whole logistics process is what will keep your business running smoothly and your customers happy.