What is the latest you can ship a package to still arrive by Christmas?

What is the latest you can ship a package to still arrive by Christmas? Here are some guidelines...
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Click here for a Delivery Dashboard to keep track of your small package deliveries.

Real-Time Delivery Dashboard for Small Parcel Shippers

LogisticsBI is proud to announce the formal launch of its new Delivery Dashboard platform for small parcel shippers.

The LogisticsBI Delivery Dashboard provides online retailers, or any business shipping high volumes of small package shipments with a concise view of the delivery status of all their shipments. The tool enables the business to proactively identify and resolve issues with problem deliveries before the customer is aware a problem exists.

Tracking numbers for the shipments are fed into the LogisticsBI dashboard by way of pre-built integrations with the business' order management or ecommerce shopping cart program (such as Amazon, Shopify, or Magento). The delivery status of each shipment is then updated and available for viewing through API links to UPS, FedEx, and USPS, displaying the statuses real-time.

LogisticsBI also provides a suite of search query and reporting tools, making small package delivery management easier than ever before. Early in 2013, the service will be expanded to include small parcel delivery companies operating in the European market as well.

"Businesses are at the mercy of the small parcel carriers for the most important phase of their customer's experience - final delivery. These companies do a decent job most of the time, but historically the exception process was managed in a reactionary way by frantically dealing with lost packages or late deliveries as they are identified by the customer. LogisticsBI gives online retailers an easy, integrated tool for seeing deliveries issues before they become customer problems." says Ken Lyons, Managing Director at LogisticsBI.

Additional information is available at www.logisticsbi.com.

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LogisticsBI Delivery Dashboard is part of a suite of logistics technology solutions developed by ecommerce order fulfillment leader ShipStarter.com. 

Contact Information:

Ken Lyons

Managing Director

info@logisticsbi.com

The Ultimate Guide to Getting the Best Shipping Rates (Part ? of ?)

One shipping related choice you may face is deciding when an order or maybe some of your product inventory should be shipped with UPS/FedEx Ground or with an LTL (less-than-truckload) freight carrier. 

The issue is that at some point, usually as shipment weights increase to around 200 lbs. or so, the cost of shipping Ground becomes more expensive than LTL. Most online retailers who ship b2c are used to always shipping Ground (small package) and do not realize that LTL is a viable (and often cheaper) option for them too.

The point is to make sure you compare rates for Ground and LTL as the weight of a particular shipment increases to around 200 lbs.

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For ecommerce order fulfillment quotes visit www.shipstarter.com.

For a single dashboard view of all your customer deliveries - visit www.logsiticsbi.com.

How to find the best order fulfillment vendor for your online store

Perhaps the most important thing to look at when evaluating ecommerce order fulfillment centers is to find one that has experience working with online retailers that sell products like yours.

Here are some reasons why:

- the fulfillment center will know how to package the products for shipping in a way to minimize damages and minimize the amount of packing materials needed

- they'll already have boxes in that size which will help keep costs down because they can buy them in greater volumes

- their shelving and racks will be set up to accommodate the size and shapes of your products which makes their operation more efficient and lowers their cost to store your products

Help for online retailers to understand what to look for when outsourcing order fulfillment

If you are an online retailer and are finding it difficult to keep up with your pick pack operation  and shipping customer orders, it may be time to think about finding a third party order fulfillment center. Similar to other difficult business decisions a growing company has to make, it is important to understand all the costs associated with outsourcing your fulfillment and shipping operation to an outside company.

The following is a breakdown of the general areas of cost a typical business will face when bringing on an order fulfillment service resource. Each company's needs and situation are different, but understanding these costs is vital to making the best business decision possible to position your company for maximum future growth.


Storage (a.k.a. "rent" for your products): Fulfillment centers will charge storage for the space an online retailer’s products take up in the warehouse. This is generally done on a per square foot  or per pallet basis.


Inventory Inspection and Receipt: Since most online retailers are having their suppliers ship the products directly to an order fulfillment warehouse, the online retailer is not able to inspect the shipments to make sure the products are the correct quantity and in good condition. A fulfillment center becomes that extra check to make sure the supplier is sending the right products and will report any discrepancies to the client.


Order Charges: Packing orders is the main part of the whole order fulfillment service, although not necessarily the largest cost. These are the labor costs for preparing and boxing up orders. The rates are generally based on a flat per order fee, plus a cost for each additional item included in the order. The more orders a retailer ships with a fulfillment company the lower the per order cost will be for the most part. The order cost is intended to cover the systems and time to receive the order, prep the pick ticket and other paperwork, as well as the time to physically build the carton, locate and pick the items on the order.


Material Costs: Simply stated, material costs include the cost of cartons and packing materials. Most fulfillment centers are buying boxes in bulk so this is one area a 3rd party fulfillment center can help reduce costs.


Shipping Costs: These costs will make up the majority of the expense of getting products to customers. Here's a link to reference useful information on calculating costs for shipping small packages. Many fulfillment operations will allow their customers to ship on their account numbers with FedEx and UPS, thus providing better shipping rates than most customers could negotiate on their own.


Returns: As some products are inevitably returned from a retailer’s customers, the fulfillment center can help inspect items and report to the retailer details on the returns.


Initial Move: There is often an initial inventory move of products from the online retailer to the fulfillment warehouse. This means there are potential costs for the shipping and receipt of the products as they are brought into the fulfillment center.


System Integration: The process for integrating an online retailer’s ecommerce shopping cart software may require some customized programming expense. How orders get communicated to the fulfillment warehouse can happen in a variety of ways (EDI, API, Email, or even fax).


Some fulfillment centers will offer bundled pricing that includes a certain amount of storage space and a certain number of orders shipped in a period of time. Or, the fulfillment charges may be calculated as a percentage of sales. There is nothing wrong with either method of pricing, just be certain the rates accurately reflect your true activity levels.

One-Time Charges	Possible Units of Measure
Account Set Up	one time charge
Software Integration	one time charge
Monthly Charges	Possible Units of Measure
Monthly Software Charge	fixed charge per month
Account Management	fixed charge per month
Activity Based Charges	Possible Units of Measure
Order Processing	per box charge
	per order charge
	addt'l charge per  piece
Packing Materials	per carton
	per envelope
	box assembly charge
Receiving	per piece
	per SKU
	per carton
	per pallet
	per hour
Storage	per cubic foot
	per shelf
	per pallet
Shipping	per order handling fee
	surcharge to use your own account
SKU Fee	per SKU
Returns	per order
	per hour
Paperwork Preperation Charge	per Interntional Order
	per Freight Order (LTL shipment)
Pallet Preparation Charge	per pallet
Rush Order Surcharge	per order
Kitting/ Assembly	per item
	per hour
	per order

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Kenneth Kowal  ecommerce order fulfillment for online retailers.

How Are Returns Handled at an Order Fulfillment Warehouse?

A frequent question we receive when talking to prospective order fulfillment online retail clients is in regards to the returns process. How does it work - Can you handle returns - Can you inspect the product - How do you report the returns - Etc?

In most cases, the answer is that a typical fulfillment service can handle returns however you, as a customer need them to. For our clients, the returns process most often will include the following steps:

- the returned product is delivered back to our fulfillment warehouse

- it is checked in and referenced by its original sales order

- the order and product information is recorded and emailed back to the online retailer

- based on the customer's direction, the product is inspected and returned to inventory to be sent out again

- or, for some clients all returns are set aside and the client periodically comes on site to inspect the items

- or, some clients have all items (most often food fulfillment products) disposed of, or returned to the manufacturer 

The returns process of course starts with the communication to the customer on how to go about returning the products they need to. This is often done with step by step instructions that may be listed on the packing list, or the website. A returns label may accompany the orders as well. FedEx and UPS offer simply ways to have a pre-paid shipping label sent with the order to facilitate the return.

When it comes to inspecting the returns, setting up specific guidelines regarding what to look for is key. Many products are commonly returned into inventory but many require a much closer examination. Setting clear expectations and procedures at the outset is very important to make sure the process runs smoothly.

The cost for managing returns is really dictated by the requirements so there is no "list" price for returns in most cases. Once the fulfillment center has a track record of the types of returns and the amount of work that goes in to inspecting the returns they can often put together a "per return" cost. Prior to that, most fulfillment centers will charge based on their warehouse hourly rate.

Ken Kowal is the Director of New Business Development at Landis Logistics, a pick and pack order fulfillment warehouse located in eastern PA, and serving clients in NY, NJ, and nationally.

Social Media and StartUp for Order Fulfillment

Leveraging Technology for Your Order Fulfillment Operation

Technology is the cornerstone of a well-running order fulfillment operation, whether it’s helping to manage orders, control inventory and warehouse operations, manage freight, or support real-time reporting requirements. It’s through technology that guess-work is eliminated from the order fulfillment pick and pack process, human error is reduced, and products and content go to market faster and at lower cost.




When it comes to fulfillment-related technology and systems, there are no absolute solutions. One size does not fit all or even most companies. Moreover, implementing a technology infrastructure to support your fulfillment operations is not only about hardware and software systems. Savvy companies and marketers use technology as an enabler to gain process efficiencies, access mission-critical information, and run their businesses better.



Here’s a quick litmus test. Take a quick look at your existing order fulfillment services operations: is the technology you rely on flexible, giving you room to grow and adapt to change? Does it support the flow of information seamlessly through the entire order fulfillment process - from order entry through to shipment? Can you access data and generate reports in real time to support critical decision-making? Are you making technology investments in the processes that need them most? Whether you are utilizing the expertise of a third party fulfillment provider or managing your logistics and operations internally, all of these are important considerations whether you are a startup order fulfillment operation or large multi-location operation.



As you assess your technology strategy to support new business initiatives or enhance your existing infrastructure, here are some insights that will put you on the right path:



Start With Strong People

The foundation of a strong fulfillment infrastructure is having expert, knowledgeable information technology (IT) professionals supporting your program - either in-house or through your outsourced fulfillment partner. IT professionals who understand technology and are experienced in the business side of fulfillment can provide your company with important, big-picture expertise. Additionally, in the outsourcing model, if your fulfillment provider does not offer value-added technology related services as a core competency (i.e., e-commerce site development) they should have partnerships in place to provide the support you need in a seamless manner.

Ensure Flexibility on the Front End

A flexible fulfillment technology infrastructure starts on the front end with the intake of order data. Your fulfillment partner should have the capability in their order management system to accept orders from various ordering mechanisms: e-commerce, call center, electronic data interchange, file transfer protocol (flat file, text file, XML, etc), and others. Order management systems built on flexible technologies such as enterprise resource planning (ERP) can be easily adapted to support your changing requirements.

Keep Data Flowing Through the System

Customer order information should move seamlessly from the front end to the warehouse/inventory management platform and ultimately through to final shipping. By automating the flow of information through the fulfillment environment, technology can facilitate faster, high quality order processing and shipment. Moreover, your fulfillment provider should offer you the ability to view critical customer order data at all points in the process. Real time data access will help you make more informed decisions related to production requirements, inventory levels, and customer buying patterns, while providing visibility into areas where costs could be reduced.

Use Technology to Improve Process Control and Fulfillment Accuracy

In the picking and packing of orders, technology can be an important enabler to further speed up the order fulfillment process and maximize quality. Technologies such as radio frequency identification (RFID) and bar coding can facilitate “system directed picking” helping the fulfillment provider’s employees to pick and pack high volume, complex orders where there is little margin for error.

Invest in the Processes that Need it Most

Simply put, some fulfillment processes don’t require technologies like RFID or bar coding to get the job done. The critical determining factors are speed and quality. For example, some fulfillment programs, like literature distribution, are less technology-dependent. Here, a manually driven pick and pack process can still meet time to market goals.

Lower Costs in Transportation Management

In the transportation management area, technology can be a further enabler to reduce the costs of your fulfillment program. Leveraging rate shopping programs, your order fulfillment pick and pack partner can work to compare carriers and select the most effective options for each shipment. This can help reduce overall freights costs while continuing to ensure prompt customer delivery.

Maintaining Your Lifeline to the Customer

Since information is the lifeblood of your decision making process, you need data on all facets of your fulfillment program. including inventory, orders and more and you need it in a real time manner. Leveraging technology, your partner should offer you the capability to extract data from the fulfillment infrastructure and generate real time reports in the format you require. Access should be easy and at your convenience online 24 hours a day giving you an instant, on-demand snapshot of your critical business activity.
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Ken Kowal is Director of Sales and Marketing for Landis Logistics, which specializes in ecommerce order fulfillment for startup and online retailers.

Order Fulfillment Services Outsourcing: Why it’s Right for Your Business

Justifying the outsourcing decision: 10 reasons to take to your management team

1. Access Best-in-Class Capabilities
Third party order fulfillment service companies provide you access to expertise that is typically not readily available internally.
2. Enhance Core Business Focus
Outsourcing Pick and Pack lets you spend more time marketing and growing your business and enhancing your products and services. Supply chain operations are taken off your plate and put in the hands of a proven expert.
3. Achieve Operational Excellence
Your fulfillment partner will seamlessly add operational expertise to your organization, enhancing your overall efficiency.
4. Enhance Customer Satisfaction
Fulfillment is a critical connection to the marketplace and your customers. A smooth running supply chain will improve your reputation for quality and reliability, while building long term customer loyalty.
5. Preserve Capital
Why invest in warehouse space, technology, and additional operations staff if you don’t have to. Outsourcing lets you redirect your capital to growing your business.
6. Reduce Operating Costs
Outsourcing helps lower or eliminate costs that would be necessary to manage an internal fulfillment program: staff, training, facilities, freight, and on-going administration. Further, fulfillment outsourcers have the resources and relationships to achieve critical economies in areas such as freight consolidation and pass on the savings to their customers.
7. Speed Time to Market
Outsourcers are equipped to get your products into the hands of your customer quicker and cheaper. This is particularly for those order fulfillment companies who are strategically located near the highly populated Eastern United States.
8. Leverage Technology
Leading fulfillment companies understand the critical role of technology in the order fulfillment process and have invested in systems and infrastructure to support their service delivery. Through outsourcing, your business gains access to the benefits of this technology without having to make the investment yourself.
9. Support Multiple Channels
Many ecommerce order fulfillment providers have diverse services to support product distribution across multiple channels’ B2B, B2C, Direct-to-Store shipments, and more.
10. Adapt to Change
Similarly, as market forces and buyer behavior drives changes in your product lines and service offerings, your outsourcer is well positioned to grow right with you, leveraging its investment in people, facilities, and technology.
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Kenneth Kowal is Director of New Business Development at Landis Logistics and can be found talking about ecommerce order fulfillment for startups on LinkedIn and Twitter.

Selling a Food Product Online? Things to consider with your fulfillment operation

What are the special considerations for an online retailer selling food products online?

The whole order fulfillment process is made up of many steps, but there are two factors that apply to dealing with food products. First, the location you choose to store and pack your shipments needs to be food grade, which means it meets certain standards for cleanliness and pest control. The facility is periodically inspected to make sure those standards are upheld. Second, you need to consider if there are there any requirements related to the temperature in the facility that need to be considered while the products are stored and also when they are shipped.

From a storage and handling perspective, non-frozen or “dry” food products can be handled similar to any non-food product. The main exception is of course that the requirements for maintaining a food grade facility need to be adhered to. Food products, whether dry or not will likely have expiration or best used by dates so it is important to manage the inventory to make sure product is still fresh and usable. The FIFO (first in first out) method of managing inventory generally makes the most sense for food products. Frozen products obviously need more care and temperature control during storage. Keeping frozen food frozen is clearly important, but more subtle requirements such as controlling humidity and ambient temperature are also important.

From a shipping perspective, the needs are very similar. Dry food products can ship similar to most any item, although some non-frozen products may need to avoid being frozen at the risk of damaging the product or its packaging. Shipping frozen products is an additional, but manageable challenge. There are many options for stock, or custom packaging to be used when shipping frozen food (or any cold item for that matter). Kits that contain a styro-foam “cooler” and tight fitting carton are likely the best option and can be designed for most applications. Items packed in the box, along with dry ice can be kept safely frozen for 24 to 48 hours during shipping under normal conditions (think hot summer and cold winter). Needless to say, some level of expedited delivery, preferably overnight needs to be used to make sure product gets delivered on time. However, keep in mind, UPS and FedEx offer Ground service that provides next day delivery to locations within a pretty good size radius. There’s no need to pay for expedited delivery when ground will suffice –the cost savings could be >50%.

Shipping Considerations for Online Ecommerce Retailers

A significant expense for any online retailer is the order fulfillment process which includes the storing, packaging, and shipping of a customer’s orders. This is beyond the cost of sourcing the merchandise, regardless of what the business sells, plus marketing and other cost of sales expenses. Taken in total, all these costs have to be managed effectively for a business to maintain profit margins. A positive margin is obviously vital to the success for any online retailer. The good news is making the right decisions regarding the storing, packaging, and shipping components could possibly be the easiest to influence on that list with the most substantial impact for the betterment of your business.

The following are three main cost considerations for start up online retailers when it comes to shipping.
1 – Supplies. These include the packaging material (or dunnage) to fill around and protect the merchandise as well as the carton itself.
2 – Direct Shipping Costs. Your selection of who ships the order (USPS, UPS, Fed Ex?) and at what service level (Ground, Next Day Air, etc.) impact costs tremendously.
3 – Your Time. Is packing boxes, dealing with storage, and printing shipping labels the best use of your time? As a small business owner you should be asking yourself constantly throughout the day – Is what I am doing right now helping to make my business more successful?

Supplies – Basic shipping cartons in a limited range of sizes are free from the USPS, Fed Ex, and UPS. That’s a good option if what you are shipping fits and is not either too big or too small. Shipping a lot of empty space in every box with your merchandise is not efficient and many businesses prefer to exert more control over the customer experience with custom or specialized packaging for shipping orders. The packing material used to protect the merchandise comes in a lot of options – with some even being eco-friendly (such as styrofoam “popcorn” and expandable foam made from soy). The additional expense of customized packing materials and cartons has to be considered.

Direct Shipping Costs – The 3 main options for shipping small packages in the US are the USPS, UPS, and Fed Ex. All three offer a form of Ground (slowest and cheapest service) as well as several expedited (overnight, 2 day, etc.) delivery services. Volume speaks when you ship with UPS and Fed Ex so talk to your rep about volume discounts that will kick in once you hit certain volume thresholds. Watch out for residential delivery charges with UPS and Fed Ex. USPS pricing is generally lower – but service time are also generally slower and there are less shipment tracking options for the order as well. There is a hybrid solution in which a company (could be UPS, or DHL Globalmail, or several others) acts as a “mail integrator”. These companies pick up on their own trucks but then take the packages to the USPS who takes care of the final delivery. This set up works best in a business to consumer model and requires a minimum daily quantity of packages (usually about 250 per day).

Your Time – Again, is printing shipping labels the best use of your time? The excitement and desire to grow a business is what motivates most online business owners. Focus on helping customers fill their shopping carts.