The Benefits of Outsourcing Logistics

Outsourcing logistics is a cost-effective strategy to expand your international reach and increase profits. The cost of hiring employees and renting storage space is typically lower than hosting operations in-house.

Outsourcing Logistics

Outsourcing Logistics Lessens Paperwork

Outsourcing also helps minimize the amount of paperwork, invoices, and inventory. You can focus on other aspects of your business, such as maximizing your business’s sales potential. Outsourcing also improves efficiency, which is critical for reducing costs.

Operational Benefits of Outsourcing Logistics

Aside from reducing operating costs, outsourcing logistics can also provide several strategic and operational benefits. For example, you can take advantage of a 3PL’s experience to negotiate better prices with domestic transport providers. These providers also have access to a variety of suppliers and can accommodate seasonal inventory changes. They can even accommodate seasonal inventory fluctuations. Furthermore, they have the resources and expertise to handle the complexities of supply chain management.

Outsourced Logistics Allows You to Focus More on Other Business Matters

By hiring a third party to handle your logistics, you can focus on developing your business instead of worrying about the day-to-day activities of the logistics department. It will free up your employees’ time to do more important tasks. Outsourcing logistics also allows you to focus on other aspects of your business, such as marketing. The results of outsourcing logistics are worth the extra cost. If you’re planning to grow your business in the future, outsourcing logistics may be the perfect solution for you.

Outsourced Logistics Saves More Money

The most obvious benefit of outsourcing logistics is cost savings. Outsourcing your business’ logistics to a third party will save you money and improve control and visibility of your company’s inventory and orders. It will also ensure that you get the best service for your money. When it comes to saving money, outsourcing your business’s operations to a third-party logistics provider is a great way to go. All of your staff can focus on running your business, leaving you free to focus on growing yours.

Outsourcing logistics can also reduce costs. Your team will have more time to focus on innovations, and you will no longer need to worry about managing a logistical department. By hiring a 3PL, you can focus on core business functions. Your team will be able to focus on these things, which means you’ll be able to focus on your logistics. You will be able to concentrate on your business and not worry about logistics.

Key Takeaways

Outsourcing logistics helps your company’s fulfillment process run more efficiently. Outsourcing your logistics to a third-party provider will free up your time to focus on other aspects of your business. You will also be able to save money by cutting operational expenses and investing in other areas of your business. You will be able to focus on your core business while you’re outsourcing your logistical operations. When you outsource logistics, you’ll have the freedom to concentrate on other aspects of your company.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Tips for Managing the Supply Chain of Your E-Commerce Business

Managing the e-commerce supply chain requires some important logistics skills, and this article will discuss the most critical of these. Regardless of the size of your business, it is essential to understand your entire business’s supply chain, including the components that are interconnected. The average e-commerce supply network is more complex than ever, and you need to be proactive instead of reactive. This means developing a predictive software solution to forecast demand and respond to it accordingly, similar to most recommendations that you will get from the most respected logistics company in the Philippines.

 

Supply Chain

Identifying the Issues with The Supply Chain

Before you start your e-commerce supply chain, you should do a high-level process review. This can give you a comprehensive picture of the issues you need to address. In addition, this will help you to identify potential challenges and bottlenecks in your e-commerce supply chain. This will make your decisions easier and improve your business’s performance. Here are some helpful tips: (1) Determine what your customers want; and (2) Understand the challenges and benefits of each stage, and (3) consider hiring reading more about international freight forwarding.

Optimize your supply chain. Managing the supply chain will increase customer satisfaction and reduce operating costs. As you add items to your inventory, you must optimize your process to ensure that they arrive at their destination on time and in perfect condition. Typically, slotting is done at the SKU level. This is the wrong approach because it will lead to dead stock and negatively affect your business. By focusing on how much each step in the supply chain will cost, you’ll be better able to predict where each item will sell and when it will be delivered to customers.

Avoid duplicating processes. While duplicating processes can increase productivity, it is a common mistake for eCommerce startups. Many people end up with duplicated inventory, which increases their operational expenses. A good database administrator will be able to compare rates in seconds. If you can’t manage this, you can use a free-shipping rate calculator that will do the work for you. When it comes to cost, make sure to look for similarities between the two processes.

Proper planning and data collection are critical for e-commerce success. While it’s important to take care of inventory, capturing data will help your team focus on key metrics. This information is essential for e-commerce fulfillment and can be used as true north. It will provide a solid basis for your forwarding organization to manage your e-commerce supply chain. Aside from being the most critical component, the e-commerce supply chain will also benefit from a solid relationship with the customer.

A good e-commerce supply chain will include regular inventory audits and effective communication with customers. When it comes to delivery, consumers expect minimal delivery charges and zero human errors. In addition, a streamlined supply chain will help minimize the risk of damaged goods. This will also reduce your costs and make it easier for your customers to communicate with you. It will also help you avoid mistakes when dealing with third-party suppliers.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

What is the Difference between FOB and CIF?

When a business carries out an international deal, understanding the different terms used for the movement of goods is necessary. The shipments of goods must undergo legal agreements. In that way, the risk is minimal when things go wrong because it points out the responsibility passed from one party to another – the buyer or the seller. It would be better to choose a trusted logistics company in the Philippines for a smooth and fast transaction without causing delays that might affect the business.

Besides, moving freight from international ports requires numerous handling, various methods of transporting, and most cases happen when the shipment stops before reaching the point of delivery.

To avoid these issues, there are agreements commonly used to define who will take responsibility for the shipment of goods: Cost, Insurance, and Freight (CIF) and Free On Board (FOB).

What is the Difference between FOB and CIF

Cost, Insurance, and Freight

In CIF, the seller is in charge of clearing the goods for export, insurance, freight charges, and documentation. It is the seller’s responsibility to look out for the goods until it reaches the buyer. In other words, once the goods reach their final destination, the ownership promptly transfers to the buyer.

Additionally, the seller takes responsibility for transporting products to the nearest port, loading them on the ship, and pay a freight forwarder that delivers to the harbor the buyer chose. It includes all the necessary documents required by the departing and arrival countries to ensure the safety of the goods at the destination and paying insurance costs.

As a seller that chooses to ship the goods to the buyer with this Incoterm, it is advisable to look for a freight Forwarder in the Philippines that offers a less-expensive service and assumes the responsibility for shipments.

 

Free On Board

In contrast with CIF, Free on Board (FOB) is a trade term used to indicate that the seller takes the responsibility to pay for the transportation and loading costs and clear the products for export. In addition, the seller also takes charge of loading the goods to the vessel.

Once the stocks are on board, the buyer and seller divide the risks and cost – the seller already fulfilled the obligation for the shipment, and the buyer will bear all costs the moment it arrives.

The good thing about FOB from a buyers’ perspective is that they can save on costs in freight and insurance. Also, they have better control over the shipping process, and the price is cost-effective. From the seller’s perspective, they don’t take the obligation since the buyer books a vessel for the product shipment for the destination harbor of their choice. The seller does not need to sign an insurance contract for the products taking full responsibility for the product value.

 

Conclusion

Each Incoterm has specific advantages and disadvantages for both the buyer and the seller. In some instances, a seller prefers FOB while the buyer chooses CIF, but some trade agreements look for one procedure convenient for both parties. CIF and FOB are two of the available freight agreement options for international trade.  Choosing the best option that suits the given business is essential. It is better to check thoroughly before proceeding with the freight agreement option to prevent delays and problems during product transactions.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at excelsior.ph to learn more about our service.

Important Questions to Ask Before Choosing a Logistics Service Provider

Logistics Service

Logistic services contribute to the economic growth as it incorporates a wide range of services, including transportation and cargo distribution. They play a vital role in the Philippines in terms of enabling the movement of goods and products.

Outsourcing logistic services for your business is an excellent way to guarantee efficiency and prevent disruptions to your business operations. While you may be able to find several companies offering logistic services, you must partner with a reputable logistics company in the Philippines whom you can trust for the transfer and shipping of your provided commodities.

Here are the main questions that you must ask to ensure you select a reliable and trustworthy logistic service provider for your business:

How long have you been in operation?

The number of years is not the basis for you to trust them right away. You have to ensure that the logistics provider can prove that they have established relationships with other business partners. Understanding their history is one of the most important things to consider; knowing their identity, purpose, and goals help you to finalize a decision to hire them to provide logistics service for your business.

What kind of customs services do you offer for my business?

Looking for brokerage services in Manila with a firm grip on your business is vital – they should always meet an accurate perspective in your establishment. A logistics provider that can recommend what’s best for your customers through a supply chain movement means that they can be a good partner – and that is a good sign for you to choose them; substantial knowledge for your service needs reflects their accountability.

Also, this can help you to learn more about the services they can provide; you can understand their service limitations.

Is your company technology integrated?

You have to look for a company that is technology deft. Everything is faster and seamless with technology. The technology operates information such as order information, real-time access to inventory, and others; technology-driven applications can notify delivery status.

If you choose a logistics provider that can process and analyze operations swiftly, that would be much helpful for your business.

How do you anticipate disruptions?

In business operations, unexpected disruptions happen. You have to look for a firm offering logistics freight in Philippines that can deal with unforeseen events and provides an efficient solution to solve concerns. Besides, logistic service providers should think of some challenges that might happen during the operations.

Can you provide references from clients with the same businesses?

It is also a good idea to ask for references from a logistics service provider to ensure that you chose the best one. In that way, you can list down all the minimal concerns that you can tell them for improvement. You can trust them with their services since they have catered to similar businesses like yours.

Logistic service providers, like Excelsior Worldwide Freight Logistics, serve as a dominant component in the success of every business company that takes part in dealing at a national and international level. They take part to achieve competitive advantages from business operations that involve buying and selling in global commerce.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Utilizing the Power of Logistics for Business: What You Need to Know – Infographic

Logistics has become a major and integral part of any business, and it helps improve a company’s overall performance and profitability. However, many businesses still do not see the importance of logistics in their overall supply chain management or marketing strategy.

If you want to be competitive, you need to have a robust supply chain and incorporate good marketing strategies. The following tips can help you improve your logistics and make the most out of your overall marketing efforts.

Modern Technology

Coordinate Your Supply Chain

It is quite important for any enterprise to properly manage its own logistics to achieve maximum productivity and improve the overall profit margin. You should have proper coordination between the various aspects of the supply chain, including the manufacturer, the distributor, the importer, the wholesaler and the retailer. Proper coordination and communication are vital for the overall performance of any enterprise logistics system.

Take Advantage of Modern Technology

There are many advantages of having a strong and efficient logistics and distribution system. With improved technology, there are new opportunities that any business can grab. You can leverage the benefits offered by the internet, periodicals, online reports and even telesales and make your enterprise logistics and distribution centers more effective. Suppose you want to ensure that you improve the efficiency of your regional distribution center or the main distribution center. In that case, you need to carefully monitor and check the inventory levels, the transportation of the products and how they are stored. You can use any software programs specifically designed to streamline the various aspects of any logistics and distribution system.

Consider Getting an Inventory Management Services

Some of the logistics providers offer customized inventory management services as well. They can give you detailed information on how your products are stored, organized and moved around the warehouse. You can use the appropriate software programs that can help you improve your productivity and cut down on costs incurred during warehousing. Some of the companies also provide customized solutions for the trucking industry. To optimize your logistics management, you should have the proper training to manage and administer your warehouse and its products. There are many factors like the volume of your merchandise or the size of your operation that should be considered before hiring an organization for your logistical management.

Knowing the Logistics Costs of Your Products

The most important factor when determining the logistics cost of a product is the size of the enterprise. For instance, if the items are sold in bulk, you may need to incur additional charges such as customs fees or other costs that may not be included in the stated price. If you purchase the products from a wholesaler, the retailer will incur shipping costs and other distribution services. Thus, the size of the retailing enterprise also determines the logistics cost.

Contacting Multiple Logistics Providers

If you want to improve your retailing enterprise and reduce your logistics management costs, it is best to contact several logistics providers. These organizations can help you enhance your sales by providing timely and efficient service. By partnering with these logistics providers, your enterprise can achieve greater profitability.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

5 Tips before Selecting Your Shipping Carrier

Shipping Carrier

Managing a business where you have to deal with international clients is not an easy task, especially if you sell products that are in need of some logistical aid. Ensuring that your products will successfully arrive from point A to point B is crucial to maintain a stable supply chain, high customer satisfaction, which ultimately leads to more profit despite the ongoing pandemic.

Choosing a carrier is one of the most crucial factors when it comes to shipping your products. It can be a challenging decision to make since your daily operations will have to adjust to any situation that involves the shipping carrier.

For a start, you have to pay attention to your company’s purpose and capacity to avail the service of a shipping carrier. But of course, there are other things that you can do so that it will be easier for you to find the most appropriate shipping carrier for your business as fast as possible.

Here are five things you should remember before selecting your shipping carrier:

FACTORS TO CONSIDER:

The nature of your business

You have to grasp the specifics of which particular shipping services you need. Find potential carriers that offer the services you’re looking for and see if all of them can handle your shipping needs. If there is a necessity for your products to be transported via different carriers, it could cost you more money in the long run. Try to go for a carrier that offers multiple shipping services.

The experience of the Shipping Carrier

Take some time to research your potential shipping carriers. Find out more about how long they have been in business or whether they have adequate resources to sustain their operations, such as a fleet of trucks and trailers. Owning a warehouse that is stable and reliable is another plus point.

Pricing

The outcome of most business transactions, especially when negotiating with shipping carriers, often relies on the agreed price of both parties. Have a word with any potential carrier and ask if they can provide you competitive rates that are on par with the quality of their service/s.

Discussing the Safety of their Services

Safety must also be a primary topic that you can bring up with any of your carrier prospects. It is essential not to overlook the low price only to discover that your chosen carrier has a high accident rate and rule-breaking records. It would be a wise decision to deal with a carrier that gives you a slightly higher price in exchange for the assurance that they can ensure the timely and safe arrival of your goods. If such a carrier has an excellent safety rating among its former clients, then you are good to go.

The Benefits of Partnering with a Freight Forwarder

Freight forwarders in the Philippines can be an individual or an agency that can handle some of the most time-consuming logistics tasks for your business. One of these tasks is negotiating with the right shipping carrier that can benefit your business. They can also take care of all types of documentation, clear other shipping related requirements, and track your goods as they arrive at their destination.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Sources:

https://blog.bisontransport.com/8-tips-for-choosing-the-right-carrier

https://www.energytribune.com/the-advantages-of-hiring-a-freight-forwarder/

How to Be a Successful Importer – Infographic

Selling products that came from abroad can be a pretty rewarding business, especially if there is a growing local market that can buy your goods. Imported products tend to be available for a cheaper price, and usually in high quality. And with the rapid spread of globalization, new and commercial items from an international supplier could emerge, which gives importers instant access and offer it their own country maximizing their profits in the long run.

If you’re one of those aspiring entrepreneurs who are planning to start an importing business, then you should be aware of some tips that can help you thrive and succeed as the competition becomes tougher as the years go by.

How to Be a Successful Importer - Infographic

Have a piece of in-depth knowledge about your products

While this might sound like a no-brainer, conducting research about the products that you wanted to import is critical for your success. Know more about the existing market and have an assessment to identify if there are people who will be willing to purchase your imported products. You also have to make sure that the products are allowed to enter the country.

In case you’re from the Philippines, below are some examples of items that are either prohibited or restricted for importation as mandated by the Philippine law according to the International Trade Administration:

  • Toy guns
  • Used motorcycle parts, except engine
  • Specific narcotics, or synthetic drugs (i.e., marijuana, opium, heroin, among others)
  • Gambling paraphernalia
  • Dynamite, ammunition, explosives
  • Laundry and industrial detergents containing hard surfactants

You can view the full list here.

Negotiate effectively with your supplier

Dealing with suppliers from another country can sometimes become a challenging task as the diversity of culture can hinder your chances of getting a favorable deal. Study more about the culture of the exporting country so that you can implement suitable strategies once you negotiate with your supplier. Have a thorough understanding of the terms before placing an order so that you avoid mistakes that often lead to additional expenses. Check if the calculations of all the costs that you have to pay are correct.

Analyze your insurance coverage

Make sure that you analyze the insurance aspect of your import transaction. Unexpected events might happen as your products are being transported, and this could help you identify the party responsible in case of a loss or damage.

Contact the customs authorities

There’s a good chance that you will have to comply with several permits as well as submit documents and forms before you can clear your imported products during the shipping process. This could be a very time-consuming stage for those who are relatively new in this kind of industry. Since time is a valuable resource that must never be allocated alone for shipping processes, it’s highly recommended to hire a licensed customs broker to prevent unnecessary delays on your shipment.

Maintain good relationships within your network

Every person or agency that you’re doing business with will always play an essential role in your success. From your supplier, freight forwarder, customs broker, carrier company and even the customs authority, you must treat them with utmost professionalism and respect. Maintaining social harmony in your business sphere will make your daily importing operations as smooth as possible.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

5 Questions a Logistics Expert Might Ask You – Infographic

Given the scenario that you’re a business owner looking to ship your goods from coast to coast, you will definitely need someone that can guide you through the process. Requirements that are needed to transfer your shipment could further encumber your already busy schedule. What’s even worse is that unchecked cargo could lead to delayed arrivals and other similar problems which could bring detrimental effects to your supply chain.

Fortunately, you have one option: hire a freight forwarder. In case you don’t know what freight forwarders are, they can be an agent or a company that offers services such as organizing shipments in place of their clients. They always make sure that the client will get the proper assistance they need with all of the customs requirements, other legal processes, etc. They also ensure the safe and timely arrival of goods to its intended destination.

Since they’re dealing with a network of carriers and customs authorities, you should’ve realized by now that freight forwarders are experts in the field of logistics. If you wanted to contact one of them, you must be ready to ask these five questions first so that they can provide you the highest and appropriate kind of service you deserved.

5 Questions a Logistics Expert Might Ask You - Infographic

Question no. 1: What type of commodity you’re planning to ship?

Your chosen freight forwarder will most likely ask what type of commodity you’re planning to ship. Is it something perishable, like fresh meat, fruits, seafood? Or non-perishables such as canned goods, machinery, tools, etc.? Moreover, they will also become curious as to whether your goods are hazardous or requires careful handling and temperature controls.

Question no. 2: What type of carrier would you prefer?

Shipping your goods in air is very different from shipping it in the ocean. The condition of your products (especially the perishable ones) are required depending on the environment of your selected carrier.

Question no. 3: How many cartons do you plan to ship?

Knowing the exact quantity of your shipment is another responsibility of freight forwarders so that they can be certain that all of it will leave point A and will successfully reach point B. You need to be particular in number especially if you have a lot of cartons with different sizes.

Question no. 4: Where are you going to your goods?

Normally, the location would be the manufacturer’s factory. In case you’re going to ship your goods abroad, knowing the location of your shipment’s destination will help a lot in complying with specific documents that may vary from country to country.

Question no. 5: Would you like to stack your cartons on a pallet?

Knowing whether you will stack your cartons on a pallet will enable your freight forwarder to estimate the weight and cubic space that it will occupy. This can help a lot when calculating the total weight and volume of the shipment appropriately.

Excelsior Worldwide Freight Logistics conduct free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

5 Ways to Improve Your Logistics Management – Infographic

Logistics refer to the detailed coordination of a complex operation that involves people, facilities and supplies. In the world of business, logistics is the practice of managing a certain flow of things between the point of origin and point of consumption in order to satisfy the needs of customers and operations.

Many enterprises today tend to pay a lot of attention to the way of how they manage logistics because it basically helps them to increase the value of their business. Logistics have the capability to enhance the merchandise and make the products much more accessible. Additionally, the economy of a country depends heavily on the efficiency of logistics to support the stable movement and flow of many economic operations.

Logistics management is one of the most vital components of business operations as its result often brings a significant impact on the internal processes as well as relation with customers.

Strategic planning and knowledge combined are two of the basic qualities every business leader must have in order to perform excellent logistics management.

To help you achieve such a state where logistics is your business’ primary tool against competitors, here are five ways to improve your logistics management.

5 Ways to Improve Your Logistics Management - Infographic

  1. Keep your inventory intact

Some businesses often made the mistake of putting a large quantity of their stocks in a small warehouse. If your stocks are too many for your warehouse to host, then it might be better to consider partnering with third-party warehousing. Failure to use a suitable facility makes you unable to do efficient inventory management, which may eventually lead to supply shortage and delayed orders.

But if third party warehousing is not a choice for you, it is always better to maintain a sizable inventory at your warehouse as much as possible.

  1. Facilitate dialogue between employees

Character also plays a major role in the success of a business in the aspect of logistics. Establishing deeper relationships among employees promotes a type of mindset that in unity, there is a victory. If you start to facilitate dialogue or healthy conversations with your employees, they will soon be encouraged to do it with each other as well. This can allow them to strengthen their ability to work as a single unit and accomplish their task efficiently and competitively.

  1. Always update your customers

Outstanding logistics management is a way to excel in providing customer service. Once your employees were able to meet the needs and expectations of your customers, it is more likely that your customers will buy more of your products.

If you wanted to amp up your logistics management in relation to customer service, being more transparent on your logistical purchasing processes keeps them more contented and loyal in the long run. This can be done by sending informative emails, tracking numbers, and other information that keeps them well informed.

  1. Provide your employees with adequate training

Members of your staff who regularly manage orders and handle information in a conventional way must be given sufficient training on the more sophisticated and modern methods or techniques. You can discuss this idea with your HR department or ask the software vendor to organize training sessions for your team.

  1. Observe your leading competitors

Though there’s going to be a lot of competition going their way, seeing them as hindrances won’t help you achieve your goal. Instead, you can take a closer look at some of your leading competitors and see what specific abilities and tools they have in order to keep their level of logistical competitiveness high. As a rule of thumb, you can take a note at your competitors:

  • Modern Software Systems
  • Newest techniques and strategies in logistics management
  • Training programs for their staff members

If you wanted to take your logistics management to the next level, take heed of these five tips to ensure that you will maintain competitiveness by organizing your most daunting business processes!

Excelsior Worldwide Freight Logistics conduct free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Excelsior Worldwide Logistics Corp.