Riverside Logistics

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What does it cost to hire a third-party logistics company to manage your transportation?

Often, a third-party logistics Company (3PL) can allow you to save money!

The cost to hire a Third-Party Logistics Company (3PL) is usually done on a pay as you go basis.

For example, if you use a 3PL to handle and manage your transportation needs, the typical way that they charge you is by marking up their transportation costs before they invoice you.

Here are some good reasons to hire a 3PL to manage your transportation:

  1. BUYING POWER: Riverside has numerous clients, using the same carrier base. This allows them to leverage this volume into lower rates than if you dealt directly with the carrier yourself. The amount of discount and reduction that Riverside receives, plus our markup percentage, is usually very competitive to the level of cost you yourself could find or negotiate. This means that we are usually more competitive, even with our markup than you would be on your own. Lower cost means cost savings.
  1. EXPERIENCE: Riverside has negotiating experience across many industries. We know carriers give more competitive pricing the better they understand the characteristics of the freight (i.e. commodity, dimension, weight, origin, destination and product value). Our goal is to find the best cost/service ratio for our customers using our visibility of a larger network portion of the supply chain.
  1. MANAGEMENT: Riverside has experience and expertise that allows us to be your Transportation Department. This means you don’t have to pay for a staff to manage and execute your transportation needs. We do it. This represents a substantial advantage to you. We handle all your freight audit and pay activity, making sure that the invoices are fully documented and are correct before we pay them. 
  1. SYSTEMS: Riverside uses technology to capture the relevant transportation data to efficiently run your business. This is important in today’s supply chain. It means we can track your shipments, transaction cost, and shipping and receiving metrics. All this can be done in real time. A 3PL utilizes these systems to properly manage and execute a logistics strategy that keeps you competitive.

In summary, a transportation 3PL brings a disciplined approach to purchasing and executing your transportation strategy. The ultimate goal is delivering service to your customers at a competitive price while saving you money.

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Riverside Logistics Celebrates 25th Anniversary!

 

Riverside Logistics 25th Anniversary

Riverside Logistics - 25th Anniversary

Riverside Logistics is proud to celebrate its 25th anniversary!  A lot has changed since 1996. Gas prices were $1.23 gallon in 1996 and the median home price in 2000 in Virginia was $125,400.

What started out as a dedicated service trucking company for one customer developed into meeting the need for warehouse services.  As that customer grew, others soon followed. Riverside Logistics quickly realized that offering Transportation and Warehouse solutions together added value to their growing client base. As time passed, a fleet of trailers and additional warehouse locations were required to continue meeting customer demand.

Today Riverside Logistics currently manages over 1,000,000 sq. ft. of warehouse space and recently purchased a 183,000 sq. ft. warehouse on South Laburnum Avenue near Richmond International Airport. They work very closely with the growing world class Ports of Virginia and have warehouse space near the Richmond Marine Terminal.  And recently, Riverside Logistics  expanded their list of services by offering the management of warehouse operations for individual clients in their facilities.

Warehouse services combined with an extensive Transportation Delivery Network provides clients with comprehensive solutions that are critical during supply chain challenges.  Our fleet of trailers reduces cost and increases productivity. We look forward to the next 25 years as we continue to expand. We are grateful for all the clients who have allowed us to provide logistics solutions and are excited about the future. This is an exciting time for Virginia and Riverside Logistics!

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Capacity Load Freight: More Prevalent and More Expensive

LTL carriers are experiencing a significant increase in large shipments, due in part to tight capacity in the US truckload (TL) and less-than-truckload (LTL) markets. While capacity freight currently applies to a smaller percentage of shipments, that number is growing steadily.

Please be aware of the general capacity load rules and charges that (may) apply to larger shipments.

Capacity loads apply when the quantity of freight, in the manner loaded, utilizes a linear length of between 8ft and 15 ft. Some carriers also have weight limits that trigger capacity loads. The weight limits range anywhere from 8,000 to 15,000 lbs.

The linear length is determined by assuming that handling units will be loaded side-by-side when the dimensions allow. So, if you ship 48 square or 48 x 40 inch pallets then 8 pallets will hit 16 ft. You might argue that if you specify that the freight is stackable, one on top of the other, then you could have more than 8 pallets and still not trigger a capacity load situation. Don’t bet on that!! Most LTL carriers consider the entire load as floor stacked when calculating the linear footage. The point is, be careful. Another scenario is if your pallets are “turnable”, meaning they can be turned so the length is shorter. In this case, if you have 8 pallets that are 40 x 48 and are turnable, then, in theory, the length would be 4 times 40” or 13.33 ft rather than 4 x 48” or 16 liner ft. Although this can make a difference in how pricing applies, be careful. Make sure that you understand how the particular carriers’ rules tariff applies to linear feet.

So, what to do?

One suggestion is to have a 3PL handle the move. There are two strategic advantages  to do this.

  1. 3PL’s are well versed about the rules and how they apply.
  2. They will quote you a price that applies, even if they have mis-calculated

Many 3PL’s have negotiated higher linear foot rules with their carriers and this allows them to get more competitive pricing on larger loads. If you are a “cubic” shipper, one who ships pallets loads that don’t necessarily weigh a lot but take up a lot of “cubic” feet, then using a 3PL with higher linear foot rates could really help you.

Capacity Rules and Linear Feet can make freight costs go up significantly, potentially causing a shipment to cost more than it’s worth. Using a 3PL on large LTL shipments allows you to take advantage of the 3PL’s basket of carriers and competitive price structure without risking unpleasant freight costs.

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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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2019 Looks Bright for The Ports of Virginia and Riverside Logistics!

The “State of the Port 2019” presented by John F. Reinhart, CEO and Executive Director of the Virginia Port Authority at the recent meeting of the Virginia Maritime Central Chapter was an exciting update. Below is a quick overview and a link to the update. This was an excellent presentation of the growth of the ports in Virginia and the positive effects on our economy.

Here are a few takeaways for RMT (Richmond Marine Terminals):

  • FY-2016 – 16,347 containers moved on the barge.
  • FY- 2019- Projection of 34,229 will be moving on the barge.  More than doubled from 3 years ago.
  • This will mean 34,229 trucks will be taken off the highway.
  • Second Barge is in Service for Daily Sailings
  • Container Staging drop lot will be completed by August of 2019. ( reduce potential for on-port demurrage)
  • 37 businesses announced they were locating or expanding their businesses in VA.

Link to the full presentation:

https://www.portofvirginia.com/wp-content/uploads/2019/04/2019_State_of_The_Port_of_Virginia.pdf

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