In the mid ‘70s FedEx started with 24 packages, delivering to the closest surrounding Memphis area. They began connecting the dots and within ten years they had $10B in revenue and Impacted the small parcel industry. In the ‘90s Netscape as a startup company launched their product and found out 1’5M subscribers the very next day; there are many stories like that, and the common denominator is always the power of the network. A network often is represented by a tree or spider web to explain some level of complexity in a simple way (corporation org chart, collaboration matrix etc.) Network and Networking Impact positively our daily life.
In today’s challenging situations, companies rely on a DC in either side of the country; this is not the best strategic game plan to deliver their product quicker, in the most cost-effective manner and/or to gain market share needed to remain in the high competitive marketplace.
How to take advantage of the power of A network effect:
Starting with the right foundation mix
Build a unique value proposition
Partner with the right service provider that offers you a strategic footprint
Partner with the right service provider that offers you end to end solution
Partner with the right service provider that offers you 21st century tech resources
Retain actual clients
Strive for operational excellence
Create a win/win supply chain solution
2020 Peak Season
We need to face the new reality; earlier peak season, new consumer behavior, equipment shortages, GRIs, limited warehouse space etc. Anticipation is power therefore prepare your supply chain for and additional stress-test in Q3 and Q4 and partner with the right service providers because anyone can move brown boxes around
Understanding you vision, meeting your goals and over exceeding expectations is a different story.
ecommerce has grown YoY and this year it would not be the exception; expectations for 2020 peak season is to grow about 20% which will bring about $800B in sales, realistically; Is every company ready for it? Sadly the answer is No. Do not get behind, take an action Today! and Impact your bottomline.
- Optimize for more efficient operations
- Complete E2E visibility
- Integrate the right technology, solution and systems for you.
- Strategic footprint
Check out our US & Canada footprint
During these unprecedented times, IFS continues to see opportunity to deliver new value to our customers and shareholders. Through enhanced transparency forums and a nimble systematic approach, our teams are able to scale to volumes, though labor constraints and compliance challenges are present. This is accomplished through fostering strategic and sound relationships with our most valued customers, employees and vendors. IFS takes an approach of delivering value through relationship, and truly being an extension and appreciated partner to all we serve. Covid-19 has had a significant impact on businesses that were not deemed priority – essential businesses, and as a result shipments were delayed or altogether put on hold. Due to the fact that all of IFS locations service priority -essential businesses, and supply chain is considered essential, we have been able to continue to safely service the needs of our customers despite the pandemic. Through daily collaborations with our customers, we work to understand the everchanging rules of the game, prioritize the work around challenge at hand, and continue to exceed expectations. All of this can only be accomplished by having the support of our valued workforce. Our employees are informed and engaged in our solutions related to all health and safety measures, as to address their concerns and provide a workplace where they feel safe. IFS is proud to serve our loyal and dedicated employees and as a result can continue to have a positive IMPACT on our customers Brand, Time and Bottom-line.
Market Updated | Brief highlights:
CPG Business Intelligence, business leaders and researchers predictions for remaining Q3 & Q4 2020 :
- Brands that excel in an amazing shopping experience will cash–in over brands that struggle with their supply chains
- Eco-friendly product & packaging are in demand as the emphasis on sustainability influences purchase habits
- Healthy food and beverage will impact purchase decisions specially among adults
- Digital experience is increasing as many APPs arrive to the marketplace to enhance the customer experience (grocery pick up or delivery).
- Strong sales growth is projected for clubs/subscription type products – DTC
51% In-app ordering
45% Home delivery
41% Live chat/chatbot/voice assistant
35% Virtual consultation
- Companies’ supply chain focus on protecting the continuous flow despite any pandemic relying on MEC (Metro ecommerce Centers) that improve transit times and deliver smaller replenish quantities for metro areas and maintaining the shelf availability without having large inventories.
- Service providers adopting technology to digitize supply chain networks including IoT in order to improve their client base experience, shaping a different dynamic for planning, production, distribution and fulfillment of products.
3PLs and Forwarders are preparing for 4PL as competitors
As 4PLs emerge more and more, they may be considered an alternative in the marketplace and competitors to established players providing , relabelled as logistics service providers. Those providers are essentially reselling floorspace and transport capacity as a commodity in an increasingly competitive market, with ever decreasing margins.
The number of people not in the labor force who currently wants a job, at 8.2 million, declined by 767,000 in June but remained 3.2 million higher than in February. These individuals were not counted as unemployed because they were not actively looking for work during the last 4 weeks or were unavailable to take a job.
IFS – DRIVE THRU JOB FAIR ????
Grab your VIP ticket and watch the official “Supply Chain – Moving Forward” and Join all major influencers in the industry talking about Leadership and looking ahead in Q3 & Q4 2020
Want to Increase revenue, Improve market share and Reduce cost.
Whether you are happy with your present service provider or just looking for a new partner, you will have better results with an strategic approach in order to make a positive impact in your supply chain.
Think about how to get the most of your 3PL in order to achieve your goals:
Start with the end in mind = IMPACT YOUR BRAND
What that looks like in your case?
1. Share your vision and goals with your potential service provider
2. Make sure to add Value verifu you fully understand what makes your client happy ( all about Your Client Success) and fulfill those client needs and make those a top priority on your service request to the 3PL, for instance:
a. Will orders require premium packaging (custom box, gift box)?
b. Will orders require different case pack?
c. Will orders require special product assortment?
d. Will orders require a reverse logistics process?
3. Define clearly SOW and timeline
4. Process a RFI, RFQ with a service provider that accept the challenge not only to present a scalable but also cost effective solution.
Today more than ever if you are not yet then you should consider to be in the Ecommerce ecosystem in order to make a positive Impact in the market place.
5. Focus on CPO
Ecommerce fulfillment cost per order (CPO) is the sum of all the warehousing expenses involved in inbound freight or receiving, put away, initial and recurrent storage of product, picking, packing, shipping and reverse logistics / returns processing from clients.
How can we calculate CPO?
From the statical records:
* Annual net sales – Returns
* Annual orders shipped
* Total order lines
* Annual boxes shipped
From actual P&L expenses:
* Total direct and Indirect labor > All warehouse & order fulfillment activities
* Total facility cost
* Total packing supplies
Here will find helpful calculations that will give a great understanding
> Total fulfillment center cost per order:
Total fulfillment center costs / by Annual orders shipped
> Total fulfillment center cost per order line:
Total fulfillment center costs / by Total order lines
> Total fulfillment center cost per box:
Total fulfillment center costs / by Annual boxes shipped
> Total fulfillment center cost as a percentage of net sales:
Total fulfillment center costs costs / by Annual net sales then multiply by 100
Just-in-Time to brainstorm and take action.
Supply Chains keeps struggling as covid-19 second wave is projected and other complex domestics and global matters effect everyone; the most important is in the way we respond to those challenges. Financial outlets keeps reporting that cargo volumes are dropping by 25% – 30% or more during Q1 and Q2 2020 — Needless to say an economic impact in the tens of billions of dollars for all industries. There are many global and governmental efforts in order to minimize impact but most importantly is how we react to it and how we control what it is on our reach and influence their outcome.
US cargo ports registered declines in container volumes during Q1 – Q2 2020, GDP -5% during Q1 Exports -20.5% Imports -13.7% with only modest improvement forecasted for the second half of the year due to shy peak season we will experience.
As predicted there will be a period of uncertainty but we should plan for at least a modest Q3 before we start seeing an slow recovery, we will see capacity shortages, premium rates and much more in Q4 and your supply chain partnership will be 100% tested. Here is the good news; there are a lot opportunities; if you have had a difficult Q1, Q2 then most likely Q3 and Q4 would be the same unless you change ” For things to change we have to change”
In these modern-days massive action matters
We keep our fingers on the pulse on market conditions and still the consensus is that companies depend on partnerships that offer them flexibility, companies with the human talent and technological tools to help you to go through present tough times
Ask your present or future supply chain partner that besides monitoring actual circumstances what else can they offer you? in order to succeed in 2020.
New Laredo,TX Operation:
IFS is excited to announce the opening of our new DC in Laredo, TX, which began operations in May 2020. We have been working diligently to facilitate the opening of the facility during these unique circumstances. This facility is a dedicated operation supporting our new customer Solistica.
Solistica is part of the biggest logistics firm in Latin America supporting operations from Mexico to all of South America. We are looking forward to continued growth opportunities with our new partner in support of their efforts to grow their operations in the U.S.
I would like Welcome the local team who converted to IFS during the transition to the IFS Family, and thank them for their efforts during the transition. Their dedication and professionalism have supported our goal of providing a seamless transition to Solistica’s customer as we continue to support their business.
Thank you all and stay safe!
Regional VP of Operations -West
Here’s an early morning photo of the warehouse before all the hustle and bustle of the day. (Click link below)
As part of the capstone experience, #Elon20 Business Fellows completed consulting projects. (Click link below)