High Risk, High Stakes: Why a 3PL Partner is Best for High Value Cargo

Posted by Duncan Butler - General Manager, White Goods on 26-Jul-2017 10:00:00
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Yusen streamlines your high value cargo supply chain so you can better serve your customer.

 When it comes to high value goods, it’s often the complete purchasing experience that provides value to your customers and your brand. Whether they’re shopping for the latest high-tech device or coveting a designer handbag, they will pay a premium for quality and expect a service worthy of the price. Therefore, when the latest trends come around your customers will want to receive their purchases in perfect condition and as fast as possible.

To ensure your supply chain meets these high customer expectations, it helps to have a logistics partner with the expertise, resources and logistics management to guarantee that your supply chain reflects your high value cargo and the quality of your products.

Without a streamlined and secure supply chain, you risk loss, product damage or delay of high value shipments which could all affect your profit and brand.

High value cargo is at risk of theft and damage without secure logistics

 

However, the harm isn’t just to your bottom line. Should product demand exceed expectations or your route to market be affected by inefficient supply lines, you could be missing the full potential of a product launch or the latest trends. Ultimately, it will be your brand’s reputation that suffers.

In fact, without a trusted logistics provider your supply chain solutions may not have the security, quality processes and visibility that properly protect your high value cargo.

If you’re feeling the pressures of these four key challenges, then it’s time to assess your supply chain management:

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Where risk can be mitigated, your 3PL partner should have systems in place to ensure secure logistics.

When it comes to high value cargo, individual pallets of product can often be worth £100,000s with shipments reaching the millions. As such, the cost of cargo theft for desirable goods and branded product can be significant. 

Indeed, in Q1 of 2017,  €1.5 million laptops were taken during just one theft from a road haulier.

However, the consequences of cargo theft in any supply chain go beyond the simple loss of product, with transport interruptions, supporting customer services, criminal investigations, and increased insurance all draining potential profit.

Moving pallets too frequently increases the risk of damage. Streamlined processes and one-piece flows are key to operational efficiency, but you also need an experienced workforce specially trained to handle your product. 

What do you need?

  • Transit protection with full optimization
  • End-to-end visibility for fast reaction times and greater control
  • Specialist security measures throughout warehousing and distribution
  • Flexibility for real-time planning and management 

Consider a 3PL partner for secure logistics with international route planning, heightened shipment visibility and robust warehouse management for the best protection.

 

Short lead times

Consumer tastes can change in the blink of an eye, often leaving the shelf life of high value consumer goods shorter than their production cycle.

According to an IDC Manufacturing Insights survey, 22% of executives believe they need greater flexibility or excess capacity in their supply chains to meet the heightened pressures of increased demand.

It’s inefficiencies across the whole supply chain that cost you valuable time. If you’re too reactive due to poor forecasting and visibility, warehousing operations may not be fully optimised to ensure short lead shipments move seamlessly when required. 

Your supply chain can also stagnate if you don’t plan ahead, often leading to added pressures on the end-retailer. For example, they may face delays if products arrive without being packaged or bundled ready for point-of-sale.

 What do you need?

  • Thorough forecasting and inventory management
  • Cross-docking and transloading to consolidate products to meet demand
  • Multi-modal solutions with increased co-ordination
  • Value added services, including kitting and packaging solutions 

Consider a 3PL partner for flexible logistics with effective forecasting and inventory management, robust warehousing processes and efficient value-added services.

   

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No matter your industry, planning for peaks is always a logistical challenge. Whether you face seasonal upsurges or you’re preparing for a high profile product launch, poor planning and warehouse management could seriously impact your market lead potential.

For example, Black Friday is becoming one of the most pressurised – but lucrative - points in the year, with UK shoppers spending a whopping £6.45billion in 2016.

Your supply won’t meet demand, however, if forecasting and inventory management isn’t up to scratch. Consequently, you might find that you don’t have enough staff with the right skills to handle your high value cargo – or transit for distribution.

Delays arise with higher volumes, especially if you’re stretching to make separate and diverse smaller shipments to reach retailers far and wide. You’ll probably find that resource is your primary challenge.

Reactive logistics come with a hefty price tag. So, the less efficient you are, the more it’s going to cost you.

What do you need?

  • Maximised productivity with an increased and multi-skilled workforce
  • Streamlined processes with transloading and cross-docking solutions
  • Integrated planning and smart resource management
  • Value added, in-house services to lessen the load across the supply chain.

Consider a 3PL partner for tried and tested logistics with trusted expertise and experience, resource sharing with cost-saving transportation services, and streamlined, end-to-end solutions.

 

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With supply chain management, the pressure doesn’t end when your product is safely in consumers’ hands. Indeed, for the e-commerce industry,  nearly 40% of all products are returned either online or to stores, with 25% of online female fashion purchases alone finding their way back into the supply chain.

The rapidly growing e-commerce market has led to a significant magnification of the challenge and cost of returns for almost all verticals. Consumers expect to be able to return product easily and conveniently, with the returns process even becoming an increasing part of the purchasing decision.

You need specialist expertise to ensure that you maximise profit rather than writing off loss. An outsourced logistics partner can be crucial, especially if they offer QC checking, remedial work or repackaging to return product quickly back to good stock. 

Technical goods, for example, could be repaired or have parts cannibalised for other uses in products. Whilst you may not be able to recover full retail value of your product, improving the condition and grading of returns can still improve the recovered value significantly.

Then, a carefully considered and designed disposition process can ensure that you maximise the value available from your returns. Access to a range of UK and European disposition channels is key to protecting in-market brand damage. 

 What do you need?

  • Specialist repair and refurbishment services
  • Consolidation and return to vendor services
  • Fully trained workforce
  • Kitting, packaging and bundling services

Consider a 3PL partner for reverse logistics with specialist in-house expertise, tailored warehousing infrastructure to your needs and an effective solutions engineering culture.

 

Is your security technically astute?

Do you lack flexibility across your supply chain or face substantial costs?

If so, then it’s best to explore streamlined supply chain solutions that provide secure logistics, quality assurance, and full visibility.

Look out for our upcoming blogs from our in-house experts on how to get the best logistics support for your high value goods.

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Topics: Supply Chain Management, Short Lead Times, Warehousing and Distribution, 3PL, Inventory Management, Shipment Visibility, Reverse Logistics, high value cargo, secure logistics

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