FillShip is proud to annouce it has been brought into the Landis Logistics family and will now operate as a division of Landis.
FillShip will continue to provide turnkey ecommerce order fulfillment services for small and medium size online retailers, including consumer goods and food products.
Landis Logistics provides pick pack services for medium and large manufacturers and ecommerce companies.
____________________
Sunday, February 13, 2011
Saturday, February 5, 2011
DIM charges - Big Changes with FedEx and UPS
If you ship with FedEx or UPS, there was a big with rates you should be aware of – and this is not just the usual annual rate increase.
The DIM factor FedEx and UPS use is changing, from 194 to 166 for U.S. Domestic air and ground packages (applies to ground packages 3 cubic feet or larger) and from 166 to 139 for many international services.
THIS IS A SIGNIFIGANT INCREASE THAT WILL AFFECT MANY SHIPPERS.
The concept of Dimensional Weight is widely used as a uniform way to establish a minimum charge for the cubic space a package occupies.
Dimensional weight, also called “DIM” weight, is used because the space a package takes up on a delivery vehicle may cost more than the shipping charges for the package’s actual weight. You should calculate dimensional weight for every shipment, compare that to its actual weight, and use the greater of the two to determine your shipping cost. Using the carrier’s free packaging is one way to make sure DIM charges are kept in check.
For domestic air services, the package’s billable weight is either the actual or dimensional weight of the package—whichever is greater. For ground packages, the greater of actual or dimensional weight applies to packages measuring 5,184 cubic inches (three cubic feet) or greater.
If you ship larger packages, near the DIM threshold it is likely your overall shipping costs will increase. The amount of the cost increase will depend on the number and weight of your shipments.
Here’s a note we received from a local “small package expert” that explains the change in more detail.
The DIM calculation did change this year.
It went from 194 down to 166.
Here is how it works… Express packages are always affected by Dimensions. If the size (dimensions) are greater than actual weight you will be affected by DIM and will be charged the higher of the 2 rates, actual vs. DIMed rate.
Ground shipments are only affected by DIM if they are over 3 cubic feet in size or 5,184 cu inches. Then the same thing happens, you are charged the higher of the 2 rates.
Here’s the calculation:
Length x Height x width = x
Then take x and divide by the DIM divisor of 166 = equals the DIM weight
If the Dim weight is higher than the actual you get rated on the higher of the 2 rates.
Here’s an example: 15lb actual weight, zone 4 shipment with measurements of 25x22x20
If billed at 15lb rate is $8.52list rates
When you factor the dims, it comes out to 11,000/166 = 67lbs and the rate is $23.36
With the old 194 factor it would have been lighter therefore cheaper at 57lbs for $21.22
The DIM change really affects you if you have lightweight large items… plastic parts, lightweight parts with a lot of overpackaging…etc
What to do about it? Talk to you local Fed Ex or UPS sales reps – they may be willing to discuss developing a customized DIM calculation formula that may ease the pain of the change.
_________________________
Provider of ecommerce order fulfillment and pick pack distribution services for startups.
The DIM factor FedEx and UPS use is changing, from 194 to 166 for U.S. Domestic air and ground packages (applies to ground packages 3 cubic feet or larger) and from 166 to 139 for many international services.
THIS IS A SIGNIFIGANT INCREASE THAT WILL AFFECT MANY SHIPPERS.
The concept of Dimensional Weight is widely used as a uniform way to establish a minimum charge for the cubic space a package occupies.
Dimensional weight, also called “DIM” weight, is used because the space a package takes up on a delivery vehicle may cost more than the shipping charges for the package’s actual weight. You should calculate dimensional weight for every shipment, compare that to its actual weight, and use the greater of the two to determine your shipping cost. Using the carrier’s free packaging is one way to make sure DIM charges are kept in check.
For domestic air services, the package’s billable weight is either the actual or dimensional weight of the package—whichever is greater. For ground packages, the greater of actual or dimensional weight applies to packages measuring 5,184 cubic inches (three cubic feet) or greater.
If you ship larger packages, near the DIM threshold it is likely your overall shipping costs will increase. The amount of the cost increase will depend on the number and weight of your shipments.
Here’s a note we received from a local “small package expert” that explains the change in more detail.
The DIM calculation did change this year.
It went from 194 down to 166.
Here is how it works… Express packages are always affected by Dimensions. If the size (dimensions) are greater than actual weight you will be affected by DIM and will be charged the higher of the 2 rates, actual vs. DIMed rate.
Ground shipments are only affected by DIM if they are over 3 cubic feet in size or 5,184 cu inches. Then the same thing happens, you are charged the higher of the 2 rates.
Here’s the calculation:
Length x Height x width = x
Then take x and divide by the DIM divisor of 166 = equals the DIM weight
If the Dim weight is higher than the actual you get rated on the higher of the 2 rates.
Here’s an example: 15lb actual weight, zone 4 shipment with measurements of 25x22x20
If billed at 15lb rate is $8.52list rates
When you factor the dims, it comes out to 11,000/166 = 67lbs and the rate is $23.36
With the old 194 factor it would have been lighter therefore cheaper at 57lbs for $21.22
The DIM change really affects you if you have lightweight large items… plastic parts, lightweight parts with a lot of overpackaging…etc
What to do about it? Talk to you local Fed Ex or UPS sales reps – they may be willing to discuss developing a customized DIM calculation formula that may ease the pain of the change.
_________________________
Provider of ecommerce order fulfillment and pick pack distribution services for startups.
Friday, December 10, 2010
Quick Primer: What is SEO and Why It Matters to Logistics Companies
Frankly stated, SEO, or Search Engine Optimization is the process of getting your companies website found when people search for certain terms on Google (or any other search engine like Bing or Yahoo).
As an example, if you are a third party logistics company that specializes in frozen food service distribution, then you want your name to appear in Google's Search Engine Results Page (SERP) when customers are looking for the type of services your company offers. SEO is the process of creating and positioning your site to rank well on Google's search pages - organically. If someone goes to Google and searches on "frozen food logistics" you want to be the first company that potential customer sees on the page.
You will notice there are other listings at the very top and right margin of the Google results pages. Those are ads that company's pay for to be located in those areas. Each time someone clicks on one of those links it is costing the company $.50 to several dollars for the privilege of a user clicking on their link. Organic search like we are talking about here is the process of getting your site to rank high on the page without paying any of Google's pay per click fees.
So what is Google looking for to rank your company highly as a logistics software company, or as an ecommerce order fulfillment provider? There are two main things: relevant content on the site related to the search terms and site credibility, which means there are other sites with "backlinks" to your site. Backlinks are a type of "social proof" that other website are linking to your website because it is credible and worthy.
So what to do? Figure out what "keywords" your customers are typing into Google that relate to what services you are selling and add related content to your site in the form of blog posts or new pages that will show Google you have authority on those topics. Then, work to get backlinks to your website from other credible websites. This can be done by responding to blog and forum posts and getting your website address out there. Both these strategies are complimented by a well executed social media strategy.
These two ideas are just barely scratching the surface of ways to improve SEO for your site. The benefits of ranking well with Google are almost priceless, yet easy to achieve when executed properly.
As an example, if you are a third party logistics company that specializes in frozen food service distribution, then you want your name to appear in Google's Search Engine Results Page (SERP) when customers are looking for the type of services your company offers. SEO is the process of creating and positioning your site to rank well on Google's search pages - organically. If someone goes to Google and searches on "frozen food logistics" you want to be the first company that potential customer sees on the page.
You will notice there are other listings at the very top and right margin of the Google results pages. Those are ads that company's pay for to be located in those areas. Each time someone clicks on one of those links it is costing the company $.50 to several dollars for the privilege of a user clicking on their link. Organic search like we are talking about here is the process of getting your site to rank high on the page without paying any of Google's pay per click fees.
So what is Google looking for to rank your company highly as a logistics software company, or as an ecommerce order fulfillment provider? There are two main things: relevant content on the site related to the search terms and site credibility, which means there are other sites with "backlinks" to your site. Backlinks are a type of "social proof" that other website are linking to your website because it is credible and worthy.
So what to do? Figure out what "keywords" your customers are typing into Google that relate to what services you are selling and add related content to your site in the form of blog posts or new pages that will show Google you have authority on those topics. Then, work to get backlinks to your website from other credible websites. This can be done by responding to blog and forum posts and getting your website address out there. Both these strategies are complimented by a well executed social media strategy.
These two ideas are just barely scratching the surface of ways to improve SEO for your site. The benefits of ranking well with Google are almost priceless, yet easy to achieve when executed properly.
Thursday, December 2, 2010
Cost Components of Order Fulfillment
One of the largest expenses for any business that sells products online is the cost for order fulfillment. In total, the order fulfillment process includes the storage, packing, and shipment of customer orders that come through an online store. These costs are beyond the expense of sourcing and purchasing the products being sold (regardless of what the business might be selling) plus all the marketing and other various cost of sales type expenses. Taken all together, this long list of different cost items have to be managed effectively for a business to maintain an acceptable profit margin. It goes without saying, a positive profit margin is vital to the viability and success of an ecommerce retailer. Fortunately, making the right decisions regarding the storing, packaging, and shipping costs are likely the easiest on the list to impact for the better.
Below is a list of the three primary cost considerations for ecommerce retailers when it comes to packing and shipping customer orders.
Below is a list of the three primary cost considerations for ecommerce retailers when it comes to packing and shipping customer orders.
- Packing Supplies. These costs include the dunnage (or packing material) to fill in and around to protect the product, as well as the cost for the cardboard carton the goods are placed into. Basic shipping supplies and cartons from UPS, FedEx, and USPS are free, as is the logistics software they will provide - so that is one thing to take advantage of when you can. Of course shipping a lot of empty space in a bad fitting carton is a poor choice for a number of reasons. Your business may also prefer to brand packaging with a company logo and not a big UPS label! The additional cost of customized packaging has to be considered.
- Direct Shipment Costs. The choice of who ships the order (whether it is USPS, UPS, Fed Ex) and at what service level (Ground, Next Day Air, etc.) impact costs often more than any other single item. Shipping Ground Service instead of Next Day Air can often save over 2/3 off the shipping cost. Of course it can also add 4 or more days on to the delivery time. Volume means a lot when it comes to shipping with FedEx and UPS, so make sure your contract stipulates that discounts on shipping will kick in once you hit certain volume thresholds. There is a "hybrid" option in which a shipping company (such as FedEx or DHL Globalmail, or various others) acts as a mail integration partner. These companies will pick the packages up on their own trucks but then move the parcels to the USPS who make the final delivery to the consumer. This set up works only in a business to consumer model and generally requires a minimum daily amount of parcels (typically 250 per day).
- TIME. Is packing up customer orders in cartons, maintaining space for 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? Managing your social media logistics presence, marketing, or selling are all important priorities. Chances are you could make better use of your time than doing your own order fulfillment.
New LinkedIn Group: Social Media for Logistics
We have created a new group on LinkedIn called Social Media for Logistics.
The Social Media for Logistics Group is a forum for individuals to share and discuss their experiences with Social Media as it relates to supply chain logistics.
Our goal is to build the group forum into a reference resource with examples and advice on how to use Twitter, LinkedIn, Facebook, blogs, and other social media platforms.
Members include thought leaders from 3rd Party Logistics Companies, Supply Chain Professionals, Carriers, Shippers, Manufacturers, Marketing, Logistics/ Transportation Management Software providers, and Order Fulfillment, as well as Supply Chain Industry Researchers and Publications.
Please visit LinkedIn and join in on the conversation.
________________________
Social Media for Logistics Blog
The Social Media for Logistics Group is a forum for individuals to share and discuss their experiences with Social Media as it relates to supply chain logistics.
Our goal is to build the group forum into a reference resource with examples and advice on how to use Twitter, LinkedIn, Facebook, blogs, and other social media platforms.
Members include thought leaders from 3rd Party Logistics Companies, Supply Chain Professionals, Carriers, Shippers, Manufacturers, Marketing, Logistics/ Transportation Management Software providers, and Order Fulfillment, as well as Supply Chain Industry Researchers and Publications.
Please visit LinkedIn and join in on the conversation.
________________________
Social Media for Logistics Blog
Friday, November 26, 2010
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.
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.
Monday, November 8, 2010
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.
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.
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