Logistics and Social Media

Whether you recognize it or not, your logistics company has, and is a brand and social media is a key marketing platform for growing and protecting that identity.

So what are the various social media platforms available out there? Here is a partial list of the most popular and likely relevant that businesses need to be aware of:


•Twitter: A micro blogging site in which short notes can be broadcast to a list of "followers" in 140 character bites. Twitter is gaining popularity and has over 170 MM registered users. An under-appreciated fact is that Twitter is a great search tool and more effective than Google in a lot of ways.

•Facebook: A social networking site with over 500 MM registered users, Facebook is the largest social media platform on the internet. Facebook users are highly engaged and active so the right presence in that space is a powerful thing.It cannot be avoided anymore - it is vital for every business to understand and actively manage the tremendous upside that social media offers for companies today. As a logistics services provider social media is every bit as crucial to your company as it is for the large international consumer brands we all see in the media every day.

•Blogging: Yes, even you should have a blog... There are countless free services for hosting a blog (Tumblr, Blogger, Wordpress) and blogging gives you the chance to establish credibility in an industry, educate, and communicate with customers.

•LinkedIn: LinkedIn is a business focused social network in the way Facebook is a personal social network. LinkedIn is built to facilitate conversations and networking amongst its users.

You should be asking yourself if there really is any legitimate value to all of this to my organization. As an example, every logistics companyneeds to understand that Twitter is NOT just a way for some celebrity to tell the world what they ate for lunch today. It is a way to connect and interact with their community of fans. Think about what the person is really doing - they are actually furthering their personal brand among their core audience, and if they do it right they are attracting new followers who will get in line when their next movie comes out. These are the results any business that uses Twitter is also looking to achieve in its own way.

The opportunity and the challenge of social media for logistics services providers is to find where your core audience is online. It is certainly not worthwhile to Tweet or spend time creating a Facebook account online if there will be no one there to see it. Using social media is an investment of cost and time - the community and following does not happen quickly but the rewards can be significant if done right. Whether you are a logistics software provider or a truckload carrier, your customers are somewhere in an online community.

The key to building this following is to create interest in your presence through content or services that inspire people to engage. This can be educational content or tools that help people do their jobs better in some way, or it can just be funny or engaging activities that people develop an interest in (see Farmville on Facebook!). Marketing 101 states that engaged customers are loyal customers and getting customers to interact with you because they want to is winning the hardest part of that battle.

Social Media for Logistics Services Companies

It cannot be denied any longer - it is important for every company to understand and actively manage the role that social media plays for businesses today. As a logistics services company social media is every bit as important to you as it is for the large consumer brands we all read about every day. Recognize it or not, your company is a brand and social media is a vital tool for developing and protecting that brand.

Twitter is NOT just a way for famous people to broadcast what they had for breakfast, it is a way to listen and engage customers. The opportunities in the world of social media for logistics companies are limitless. Using Twitter, Facebook, LinkedIn and some of the other social media services will support your efforts in the areas of sales, customer service, and marketing.

I am barely scratching the surface with this list, but here are some examples of how a logistics company can use social media:

• Read industry blogs (like EasyLogisticsManagement) and search on Twitter for what people in the Supply Chain and Logistics markets are talking about. Watch how people are being creative with their approach to using social media which will help inspire new ideas for yourself.
• Use Twitter and Facebook to engage customers and keep your name in front of them. Answer questions and make suggestions without an in your face sales pitch. Be helpful and the customers will think of you when they need you.
• People “tweet” and use social media outlets when they are not happy with service so if people are talking about your company, you want to know about it and be able to react.
• Participate in Social Networking Sites (like http://www.logipi.com/ or LinkedIn) and Supply Chain Forums to establish yourself as an expert in the space. These sites allow you to showcase yourself as a subject matter expert.

Shipping Something Next Day Air With FedEx Or UPS? READ THIS FIRST!

If you are looking for a way to save money on shipping small packages here is a tip. FedEx and UPS service many points next day guaranteed with their low cost Ground Service. So, why pay for next day air service on a package you need to be delivered tomorrow at double or triple the cost? For example, from our food fulfillment warehouse in eastern PA, FedEx will service anywhere from New York City down to Washington DC next day with their ground service. There is no need for us to EVER pay for next day air to any of those points. Similarly, FedEx Ground is just a 2 day service to Chicago and most of the Midwest. Again, as a more cost effective option compared to Second Day Air, Ground is a better choice.

Check out the FedEx site to calculate transit time from your location to where your package is going.

To illustrate, startup online ecommerce business and artisanal sausage retailer Sausage Obsession reduced their shipping costs by over 50% when they began shipping products Ground instead of Next Day Air. The handmade sausage products Sausage Obsession sells are all shipped fresh or frozen. Obviously getting the customer orders shipped from their order fulfillment service operation has to be done quickly and reliably. With the same type of packaging and amount of dry ice they were using before, Sausage Obsession is now able to service all their customers half way across the country without paying for expensive Next Day Air delivery.

Ecommerce Order Fulfillment Explained

What are the different service and cost components of packing and shipping with a 3rd party fulfillment operation?

If you are an online retailer thinking about partnering with a 3rd party ecommerce order fulfillment warehouse to handle your pack and ship operation you should understand the different categories of service a typical fulfillment house will provide.

Receiving and Storing Product: This includes the process of receiving your goods into their warehouse. It begins with a thorough inspection of the product as it arrives to ensure there is no damage and the exact products and quantities match what is expected based on your direction and the Bill of Lading. On an ongoing basis it is important for the provider to maintain and report accurate inventory numbers. Storage requirements depend on the product but can include the facility maintaining a temperature controlled environment, custom racking, or on-shelf storage. Receiving and Storage rates are generally billed as either a per pallet cost, or a per package cost depending on the product.

Order Pick Charges: An integral part of the fulfillment process is how orders get transmitted from you to the facility. This can happen as part of an integration with your shopping cart software, EDI, flat file, or even a fax. As the orders are received, they are assembled or “picked”. Order Pick charges are generally based on a flat per order fee that includes the first item, and then a small additional charge for each additional item in the order. So, as an example, if your typical order is for three items, you could expect to pay $4.50 per order plus an additional $.50 for each additional item, making the total $5.50 to have the order packed.

Administrative Support: Fulfillment providers will often charge a monthly service fee for things like reporting or fielding customer calls. These charges can varying by a large extent and depend on the requirements you put in place.

Packing Materials: This would include the cost of the carton the order is shipped in, any dunnage (packing material to protect the product in the box), as well as the labor to assemble the box. These costs may or may not be included in the Order Charges detailed above. Remember, the majority of costs for a fulfillment operation are labor, so each small action (assembling a box, printing a label, placing an item in a box, etc.) each take time. It may feel like you are being “nickeled and dimed” but it is really about charging for the exact time spent for your specific needs. Fulfillment is not a one size fits all service in any sense.

Shipping Costs: The handling costs associated preparing an order to be shipped (printing the shipping label, palletizing boxes, etc.) are generally covered by the Order Charges. But obviously one big remaining cost is for shipping (FedEx, UPS, USPS, etc. assuming you are shipping boxes, not pallets at a time). If you have one, it is often best to use your company’s own account number and most fulfillment providers will allow you to do that. They may, however have a better contract with one of those carriers and be able to pass on some of that savings.

More info on Ecommerce Order Fulfillment and Frozen Food Fulfillment.

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%.

Small Parcel Shipping Explained: Comparison of UPS and FedEx Services

Despite how UPS and FedEx brand their services, they are basically similar. Below is an explanation of how the services correspond between the two providers.

Overnight Services:

FedEx First Overnight = UPS Next Day Air Early AM

FedEx Priority Overnight = UPS Next Day Air

FedEx Standard Overnight = UPS Next Day Air Saver

2-Day Services:

FedEx 2 Day = UPS 2nd Day Air AM & UPS 2nd Day Air

3-Day Services

FedEx Express Saver = UPS 3 Day Select

Ground Services:

FedEx Ground = UPS Ground

FedEx Home Delivery = UPS Ground

FedEx SmartPost = UPS Basic

For more information to help your online retail business work better, visit www.fillship.com.



More information for online retailers: ecommerce order fulfillment

What is the purpose of a Bill of Lading?

A Bill of Lading is a document issued by a consignor (or shipper, such as an order fulfillment center) and signed by a carrier at the time of pick up, acknowledging that specified products have been received on board as cargo for delivery to a named consignee, or destination. It serves as a contract between the shipper and/ or owners of the goods and the carrier for a number of purposes:

• It is evidence of a valid contract of carriage, and may incorporate the complete terms of the contract between the shipper (such as a startup ecommerce order fulfillment servce) and the carrier which may include payment terms, rates, description of product classification, as well as other duties and obligations.

• It is a receipt signed by the carrier confirming whether goods matching the contract description have been received in good condition (see SLC below). The information could include pallet and/ or piece count, weight, product description and classification.

• Once signed by the consignee, it is a receipt of goods received providing final confirmation of the quantity and condition of the product received. A signature by the consignee is acknowledgement the goods are received as described on the BOL unless discrepancies are otherwise noted at the time the BOL is signed.

• The signed BOL may also often serve as a Proof of Delivery (POD) document as well as back up for the Freight Invoice.

The Bill of Lading will typically at minimum contain the following information: Shipper’s Name and Address, Consignee’s Name and Address, Description of Goods including pieces and weight, NMFC Classification, Bill to Party (or Payment Terms), relevant load ID numbers, and Carrier’s Name.

As a matter of process, the driver from the carrier will sign the BOL at the time of pick up when the goods are loaded onto the carrier’s equipment. At this point the carrier is responsible for inspecting the goods to ensure the quantity and condition of the product is as noted on the BOL. Depending on the shipper’s rules, the BOL can be signed “Shipper Load and Count”, or “SLC”, which means the carrier has not been given the opportunity to inspect the goods prior to loading when it is not practical or permissible. A copy of the signed BOL will often be kept be the consignor.

The original copy of the BOL will physically accompany the shipment from pick up through delivery.

Upon delivery of the shipment to the consignee, the receiving location will inspect the product as it is unloaded – prior to signing the BOL acknowledging receipt. Any damages or shortages will be noted by the consignee on the BOL at that time. Generally speaking, if a consignee notices damages at a later time and nothing was noted on the BOL at the time of delivery the shipper and carrier will not be held accountable for the issues. An executed, final signed copy of the BOL will be retained by the consignee as a receipt of the shipment delivered. The carrier will retain a final copy of the Bill of Lading as well.

Visit http://www.eroutinguide.com/ for a complimentary Bill of Lading generator tool.
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Ken Kowal is Director of New Business Development for order fulfillment service company Landis Logistics.