Riverside Logistics

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Are your freight costs going up?

If so,  you are not alone. The recent disruption in supply chain due to Covid-19 has been challenging and well documented.  Being able to ship product on demand is a basic business need. The challenge in today’s environment is lack of predictability.  As Covid-19 cases increased, demand for food to restock grocery stores rose dramatically, while demand for food from restaurants and hotels slowed drastically. This shift is just one example of an extraordinary change in freight demand. As demand goes up, prices go up. As demand goes down, prices go down. When both are happening at the same time…it can be very challenging. 

A third-party logistics company can help relieve some of this stress because of the volume of freight they handle and their close monitoring of truck capacity. This volume means they have strong relationships within the transportation industry and warehouse space at their disposal to help provide solutions that many transportation companies cannot offer. A strong 3PL team is dedicated to finding solutions for their customers often in unexpected ways. A 3PL can help “flatten the curve” of your freight cost and reduce the heartburn that comes with high price volatility. Below are a few specific ways a 3PL can help when your freight costs are going up and your demand for freight is changing rapidly. 

  • Local Delivery – 3PL’s have trucks running every day within a 150-mile radius of their location to serve multiple customers. By putting multiple clients product on one truck the cost is reduced for all. As a matter of fact, when more clients that have different products going to the same locations (Example: hospitals) everyone saves money and reliability increases. 
  • Dedicated Lanes – If a 3PL has a truck shipping freight from point A to point B for one client and finds another client who needs product shipped from point B to point A, then the 3PL can “match” the driver and truck with the loads. Everyone benefits from this relationship. More predictability, lower cost, and a knowledgeable and reliable driver who knows what you need and when you need it.
  • Drayage – International shipments, whether exports or imports, can be difficult to time with respect to labor.  A 3PL can help by not only picking up TEU’s (containers) from the port but they can either transport directly to your warehouse or client, or they can cross-dock the product (usually less than a week) at their warehouse to allow more time to find the lowest freight cost available. The Virginia Ports and the Richmond Marine Terminal are very attractive options because of their locations on the East Coast.
  • Change in Mode – Another example of how freight costs have shifted dramatically is in the airlines. The cost of using passenger airlines to ship freight internationally has increased because the number of passenger flights has dropped substantially .  Before, freight was added  to flights that were frequent and reliable so capacity was available at a reasonable cost. Now, with so few flights, there is a  significant decrease in freight capacity.  Shipping internationally may require dedicated freight flights often with an expedited focus which comes  at a much higher cost. How is  this problem solved? Maybe  with a shift in mode of transportation! Instead of Air freight maybe the shipment travels internationally by ship, or domestically by rail or truck. Obviously, timing can be a factor that needs to be taken into consideration. Low Air Freight may be a long way in the future but a 3PL company  can help.
  • Flexibility – A 3PL has many solutions to choose from to help lower your freight costs and offer cost savings from unexpected places. As you navigate the uncertain future cost of freight, it only makes sense to develop a partnership that focuses on reducing costs to help you navigate the challenges ahead.

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Riverside Logistics is a third-party logistics and supply chain management company providing a full complement of third-party logistics, transportation and warehousing solutions.

Riverside Logistics serves the Medical, Food, Chemical, Paper and other mission critical industry sectors.  Riverside Logistics has owner operator’s and dedicated lanes, with routes throughout Virginia, the Mid-Atlantic and the Southeast. Riverside Logistics offers pooled distribution and consolidated delivery services throughout the 48 states that can save you money. They are headquartered in Richmond, Virginia. To contact Riverside Logistics for a quote call 1-804-474-7700 Option 4 or click here.

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Where does a Third-Party Logistics Company (3PL) enter your supply chain?

This is the question many shippers ask, and the answer is anywhere!  A 3PL facilitates movement from origin to storage to final distribution to returns so you can focus on your business and not the business of logistics.  

Let us start at the beginning.  Where are your goods manufactured?  If they are offshore, then your process starts at the port of entry and you will need transportation from the port to your facility or for storage prior to distribution.  If your goods are manufactured domestically, then will your goods be ready for shipment at time of manufacture or do you need pick, pack, and storage services?  Often, all the services outside of manufacturing can and should be outsourced for efficiency and cost savings. 

Moving on through the supply chain, the goods are now ready for distribution.  Most goods will have a short storage period prior to final shipping and space is a valuable commodity in a manufacturing plant.  A 3PL can provide the flexibility for warehouse space needed whether it is just cross docking or preparation for seasonal upswing. 

Finally, the goods are ready to be shipped!  Third Party-Logistics Ccompanies can customize solutions for your supply chain whether it’s kitting or specific packaging. Also, you will have a wide carrier selection to ensure you are utilizing the most effective method. A 3PL’s total volume will ensure competitive rates for full truckload, Less than Truckload (LTL) or small package shipments.

In addition, recommendations can be made for mode optimization and pooled distribution leveraging the volumes of other customers.  This provides the shipper options they cannot negotiate on their own.

All these steps can be managed by your 3PL and you can engage them for one service1 or all.  Regardless of where a 3PL enters the supply chain, they will add value, efficiency and cost savings. Lastly, a 3PL reduces your risk allowing you the flexibility to manage your supply chain without the additional capital needed for brick/mortar.  You can produce higher rates of return by investing in your core business!

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How Dedicated Lanes will reduce your freight cost and improve service!

Dedicated lanes are defined as a single truck driver running from point A to point B with a load of freight and returning full to point A. Typically companies use dedicated lanes for permanent scheduled deliveries to large customers or distribution centers.  An example of this: a manufacturer sends raw material from Richmond, Virginia to Atlanta, Georgia every week. That same truck then picks up finished goods in Atlanta and brings it back to Richmond, Virginia. Large companies typically use a dedicated fleet to perform this task. However, mid-size companies often do not always have a  return load to be filled.  This type of dedicated delivery on a regular route like Richmond, Virginia to Atlanta, Georgia offers an opportunity for another shipper to balance that load. This is where a Third-Party Logistics (3PL) company like Riverside Logistics can help. A 3PL and their team of transportation experts can match a load of freight from two different companies and everyone wins! The origins and destinations just need to be within a reasonable distance to make the math work well.

By leveraging that empty space and building a dedicated lane,  3PL’s can improve the cost for both clients.  Dedicated lanes also  minimize the risk of damage and provide enhanced service levels.  These lanes increase driver retention and save you time because the driver knows the destination and unloading procedure for each client.  This provides additional benefits when clients are shipping similar products.  High value products with specific trailer requirements can be matched up with another high value product thereby reducing the risk of damage..  The frequency of the shipment, the predetermined schedule and the relationships that are built improve predictability and increase trust in the process while lowering cost. Riverside Logistics offers many solutions that can improve your supply chain strategies.

Below are a few current examples of lanes where Riverside Logistics can provide better service and efficient deliveries.

Riverside Logistics is always looking for freight…

From

Chicago, Illinois to Richmond, Virginia

From Atlanta, Georgia to Richmond, Virginia

From Memphis Tennessee to Richmond, Virginia

From Pennsylvania to Richmond, Virginia

Give us a call or fill out the form to let us know what lanes you need to build a dedicated route for you.  In addition to our strong footprint in the Mid-Atlantic states, we offer local truckload deliveries within a 250-mile radius of Richmond, Virginia.

Riverside Logistics offers warehousing, dedicated deliveries, domestic transportation and consultative solutions for you!

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How can a Richmond, Virginia based Third-Party Logistics company help reduce your local delivery cost while improving service?

2020 vision has been anything but clear! Especially when it comes to your freight cost and service levels. As companies evaluate different business options, working with a third-party logistics company (3PL) on a local level can be easily overlooked.  Because a Third-Party Logistics  company has numerous truck routes and lanes that are created by serving multiple customers there is a good chance that they have a local service that could save you money, and improve the flexibility and reliability of your shipments. Below are a few ways that a 3PL can help provide cost saving solutions for your local freight!

Local Routes                                                                                                                                      

Local deliveries range between 0-250 miles from origin.  A local 3PL with a  variety of customers and deliveries has many options for their  customers.

For example, loads shipping out of Richmond, VA for delivery down in the Tidewater area will match up with a local load coming back to the Richmond, VA area.  Also, we may have 2 or 3 other customers we can consolidate on the Richmond truck either on the head haul or backhaul.  Depending on the size of the load, it may fit on 24ft box truck vs a 53ft trailer which could offer savings.

Another advantage of local routes is accessibility.  This includes  last minute daily pickups and emergency pickups because drivers are delivering within the local area.  A 3PL can also drop trailers at a customer’s location for convenience for loading or unloading their product.  Some customers with limited warehouse space utilize drop trailers for storing product at their location or at the 3PL’s location. Matching resources is one of the many ways a 3PL provides value allowing companies to be very flexible in a dynamic market, providing just in time deliveries, and capturing opportunities that may not be able to with your current resources. 

Cross Dock

Another advantage of a 3PL with warehouse assets is the ability to cross dock product.  Example:  An inbound truckload shipment comes in and our customer doesn’t have time or space to unload it.  A 3PL can provide this service as well as coordinate transportation that will maximize savings.  Another opportunity to utilize cross dock services is receiving ocean containers to be unloaded and reloaded into a 53’ Dry Van for final delivery to the customer. This same scenario would apply with rail cars. Customers can take advantage of lower rail rates and have product deliver via rail for storage at a 3PL facility and then trucked for customer delivery.  Cross docking is a great short-term solution to reallocate your freight quickly, efficiently, without limiting your resources.

Drayage

A 3PL has the ability to flex up or down depending on the volume of containers arriving at the port.  Businesses may not always have an available driver and truck to retrieve containers from the port nor space to store the container for efficient processing.  3PL’s can often store your container at their facility to save on port demurrage fees then unload and handle for final delivery to the customer.  A 3PL can often provide this service for both IMPORT and EXPORT loads.

Riverside Logistics can provide all these services for you so your resources can be utilized to focus on your business not the business of moving freight!

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How can a Third-Party Logistics company help solve your COVID-19 Supply Chain Problems?

Riverside Logistics Warehouse 3plThe disruption of supply chains due to Covid-19 is unprecedented. Businesses have been challenged to operate with a lack of mission critical raw materials, products or equipment. Economic realities of supply and demand will shift manufacturing from single source locations to decentralizing abroad or reshoring will occur back to the US to diversify supply chains.

Many challenges are ahead particularly for small businesses in terms of going back to work because of safety and security concerns. The cost structure will shift due to many factors and it will be critical to prepare for what the new normal entails.  Creating a regionally based supply chain will provide options for a market that is in flux.  Flexible solutions for storage and distribution are the advantages a third-party logistics (3PL) firm can provide and ensure that you can change with market demand.

Leveraging the Port system in Virginia is a good start to differentiate your supply chain for imports/exports.  Our Virginia Port system may offer cost advantages, less congestion and more vessel calls, than other ports on the East Coast.  Virginia continues to rank #1 as the best state for business which offers significant growth opportunities for companies needing a presence in this region.  A 3PL can provide this presence without the commitment of facilities and labor.

According to Keith Hamlett, President of Riverside Logistics, a Third-Party Logistics (3PL) company headquarted in Richmond, Virginia; a 3PL partner can provide expertise for clients facing these challenging issues in the supply chain.  A third-party Logistics company can offer a variety of ways to help with your supply chain diversification or expansion.  Listed are areas that a 3PL can assist.

  1. People- A third-party Logistics company (3PL) usually has experienced staff ready to provide solutions. Training can be a challenge in the current environment and a Third-Party Logistics company can provide the appropriate personnel customized for your environment. They often have training solutions in place to help speed this process. This ensures your supply chain will be in place quickly.
  1. Warehouse Space Available– Often 3PL’s have warehouse space available and under management, they can modify space for your specific needs. Some 3PL’s will have commodity specific warehouse space available like: food grade, pharma certified or hazmat for those markets. Not all warehouse space is created equal. Usually a 3PL will have multiple locations and can offer flexible solutions for you.  As an example, they may have a facility adjacent to the Port of Richmond for easy access for rail, import and export. They may have a rail side warehouse as well. A 3PL’s focus is to lower your total supply chain cost and flexible alternative solutions can be critical to your success.
  1. Transportation Solutions – Another advantage of working with a Third-Party Logistics company (3PL) is they have a broad array of freight services that include Truckload, Less than Truckload (LTL), Small Package and container drayage. Often, a 3PL will have owner operator’s and dedicated lanes, with routes throughout Virginia, the Mid-Atlantic and the Southeast. They may be able to offer pooled distribution and consolidated delivery services throughout the 48 states that can save you money. This can be a great advantage when you are constantly evaluating your supply chain cost.
  1. Technology – Technology and software can be expensive. Often a 3PL will utilize a Warehouse Management and Transportation Management system to optimize your freight costs and provide insight into mode optimization. Access to real time data such as:  order inventory status, and other tools to speed communication to your customers can be very powerful.  A 3PL can provide a team that works together to provide visibility to your supply chain for cost saving options as well as comprehensive reporting for planning purposes.
  1. Supply Chain Strategies – Partnering with a 3PL can provide guidance to secure your supply chain and focus on your goals – not just right now but for the future.

At the end of the day a Third-Party Logistics company offers you the ability to respond quickly and accurately to market conditions or unforeseen disruptions like Covid-19.  A 3PL can keep your supply chain running, so you can stay healthy – personally and professionally!

 

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Riverside Logistics is a third-party logistics and supply chain management company providing a full complement of third-party logistics, transportation and warehousing solutions.

Riverside Logistics serves the Medical, Food, Chemical, Paper and other mission critical industry sectors.  Riverside Logistics has owner operator’s and dedicated lanes, with routes throughout Virginia, the Mid-Atlantic and the Southeast. Riverside Logistics offers pooled distribution and consolidated delivery services throughout the 48 states that can save you money. They are headquartered in Richmond, Virginia. To contact Riverside Logistics call 1-804-474-7700 Option 4 or click here to fill out the form on our contact page.

 

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