Riverside Logistics

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January 4, 2021 by Logistics

What is Supply Chain Management?

Supply Chain Management- Warehouse & Transportation, FreightListening to the news the other day I was struck by the fact that there is a Cabinet Level position for Transportation, rather than for Supply Chain. Do not get me wrong, transportation is important, it provides time and place utility to everything. Whatever we make and consume is impacted by our transportation system. But why isn’t there a Secretary of Supply Chain, rather than a Secretary of Transportation? There is a difference. Supply Chain encompasses the entire spectrum of activities surrounding the movement of goods. We are talking storage, transportation, regulation, infrastructure, technology, and much more. Managing a supply chain in today’s world has become more important and more complicated than ever.

What is the Supply Chain? Let’s start with what it is not. It is not the demand for goods and services. It is not the manufacture or development of products, processes and services. What is it?  It’s the manifestation of all the physical aspects of satisfying demand thru the physical movement and storage as well as the information flows, data accumulation, analysis, decision-making and use of this information to move, store, deliver, and pay for demand.

Economics revolves around the relationship of Supply and Demand. Supply Chain revolves around the components associated with Supply to support Demand. One fifth of the world’s economy is tied up in SUPPLY CHAIN activity. One fifth!! It’s important and impactful to just about everything and as trade continues to become more global, so does the supply chain.

Here is a current example of how important the supply chain can be. It also shows how many touch points and how many things need to go right, for it to function effectively. Riverside Logistics, as a third-party logistics company based in Richmond, Virginia, manages the distribution of goods for a number of companies in the medical supply business. In the current pandemic environment, these companies are manufacturing and selling the masks needed by everyone to protect themselves. These masks consist of materials that are sourced from many countries across the globe. These sources are tapped into to provide the raw materials to create masks. The paper, the fabrics, the elastic, etc. These materials are “sourced”, then “procured”, then “shipped” to a manufacturing location, then combined into a mask, then stored until ordered, then shipped, then delivered, then re-shipped, then purchased and finally (then) used by a consumer or end-user. Possibly, even sent into a reverse-logistics system and sent back somewhere for destruction or re-purposing. Is your head spinning yet? All the pieces of this process are part of a “chain” of events, with many moving parts, involving “supply”.  Each link in the chain is a distinct and necessary piece of the overall creation of time and place utility relevant to the goods being made.

Obviously, the Supply Chain is important. How well it functions from a cost, service and capability standpoint determines the overall quality of the “Chain”. Usually the utility of the “chain” is derived from the tradeoff between cost and service. “When” and the “How Much” are key decision-making components considered in the Supply Chain. However, there are other equally important aspects to the chain. Their importance depends on the goods in question, their value, the time of year, the criticality of speed to market and many other important factors.

Supply Chains can be relatively simple or they can be quite complex. There are a myriad of rules, regulations and practices that revolve around executing a quality supply chain. That undertaking can be quite substantial. A third-party logistics company usually can provide services that improve your supply chain, because that is their area of expertise.  They review many complex supply chains in whole or in part depending on the client, their business practices and the role where they can provide value. The key is to improve the supply chain and to provide a client with a competitive edge. Clearly a well-executed supply chain can have a substantive impact on the client’s ability to maintain a strong competitive posture in their business environment. You can make the best products in the world, but they have no value if you cannot get them to the end-user when they need them. Time and Place utility!!

Filed Under: News & Events, Supply Chain Tagged With: Freight, Richmond, Riverside Logistics, Third Party Logistics Companies, Transporation, VA, Virginia, Warehouses near the Ports of Virginia, What does a 3PL do?, What is a Supply Chain, What is a Third Party Logistics Company, What is Supply Chain Management?

November 23, 2020 by Logistics

LTL carriers struggle to move freight

Between the effects and protocols related to Covid-19 and the overall lack of capacity in the trucking market, the carriers are struggling to pick up, move and deliver freight. Over the last 6 weeks we have seen an escalation of this problem, with every week growing successively worse. Now, LTL carriers are either selectively quoting volume moves or have abandoned volume quotes altogether. They are doing this in the “short term” because their pipelines are over capacity and they simply cannot handle any more freight.

So, what does “short term” mean? Could be a couple of weeks, a couple of months, or possibly even longer. This current situation of tight capacity has come about, it appears, due to several factors that have all combined at the same time to exacerbate the situation.

Covid 19 caused a lot of carriers to retire early, furlough and or layoff drivers, not knowing how severe or how long the lockdowns would last. This drained some immediate driver capacity, which is hard to replace in a short amount of time when staffing needs now require more (new) personnel. Shutting down then re-igniting the driver recruitment process takes time. Probably a full quarter or more. In addition, when a terminal in the LTL network has a Covid case or two, or three, or a relative of the workers is in contact with Covid infected individuals, based on protocols, it takes those people out of circulation for at least 2 weeks. This too, strains the labor force and makes it that much harder to operate a terminal and a network. Some carriers have had to embargo certain nodes in their networks to play “catch-up”. When these embargoes (they do not call them that but that is what they amount to) happen, it effectively shuts off the flow of freight in and out of region for a period of time. This has the net effect of straining the capacity of other carriers operating in the same area and or delaying or stopping freight from moving as it normally would. The net impact is more stress on the supply chain.

When the network gets backed up, these backups tend to cascade down thru the various modes of transport. When intermodal rail backs up, then over-the-road trucking backs up, then LTL backs up. Costs rise, sometimes precipitously, and service levels usually go the other way and fall off. The infra-structure simply cannot handle the volume and delays happen. LTL carriers not only pickup and deliver freight they also “line-haul” it. With driver recruitment on hold, carriers are going outside their own networks and “brokering” trucks to handle the line hauls between nodes. Naturally, this takes brokered capacity out of the system, thus making it harder for pure brokers to find trucks to fill clients needs. You can see from this example, that it becomes a “Domino Effect”, where changes in one mode affect others and so on and so on. Everybody pays with lower service levels and higher costs.

The net effect right now is that freight costs are going up in the short term until the capacity equation (supply and demand) returns to an acceptable level. Service levels, which equate to days in transit are also going to lengthen in the short term. Shippers are not going to react favorably to this environment. Budgets will be broken, customer service will degrade, and the norms for conducting business will be altered. All of these “effects” will hopefully last only for a short period of time rather than an extended period. So back to the question ‘ how long will it last”? Good question, which unfortunately has no good answers to go with it. The market will eventually return to some semblance of “normal”, it always does.

The big question is how long it will take to get there and what can a Third-Party Logistics (3PL) do to help? A 3PL normally has multiple client-related contracts with multiple carriers. They (3PL’s) usually can flex modes up or down across multiple partners, to get you, the client, the best mix of desired service levels and cost. Riverside deals with many clients and uses many carriers. This means we have a lot of experience determining who does what better than the other guy. In a pinch, we have very close and effective working relationships with the carriers and can usually make thing happen, when a client can’t. So the bottom line is that Riverside can provide “workable” options to a client to help them navigate the current freight environment and provide a service and cost equation that meets their needs.

Filed Under: News & Events, Transportation News Tagged With: LTL Carriers, Near the Richmond Port, Port of Norfolk, Richmond, Supply chain Solutions, TIA Certified Transportation Broker, Transportation Solutions, VA, Virginia

August 13, 2020 by Logistics

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!

Filed Under: News & Events Tagged With: 3PL near Norfolk Port, Richmond, Third Party Logistics Company, VA, Virginia, Where does a Third-Party Logistics Company (3PL) enter your supply chain?

August 13, 2020 by Logistics

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!

Filed Under: News & Events, Transportation News Tagged With: 3pl, Cross Dock, Drayage, Dry Van, East Coast Third Party Logistics Company's, Export Freight from Virginia, Import Freight into Virginia, Import your Freight, Local Routes for your Freight, Locat Delivery for Manufacutring Plants, Norfolk Port, Richmond, Richmond Port, Third Party Logistics Company's, Third Party Logistics company's near the Richmond Marine Terminlal, Transportation Companies, Trucking Companies, VA, Virginia

June 1, 2020 by Logistics

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!

 

————–

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.

 

Filed Under: News & Events Tagged With: 3pl, Covid-19 Supply Chain Problems, How can a Third-Party Logistics Company Help (3PL), How to solve Supply Chain Problems, Richmond, Richmond Marine Terminal (RMT), Riverside Logistics, Third Party Logistics, Virginia, Virginia (VA), Warehouses near Richmond Marine Terminal

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