Archive for ‘Business’

Navigating the Tariffs’ Effect on Logistics

Saturday, October 27th, 2018

logistics-profit-center

Trump’s tariffs on Chinese imports has reached the $250 billion mark, nearly half of total imports. The impact of $121 billion dollars levied in retaliation by China, Mexico and Canada touches 6% of total exports and 650,000 people employed by the effected industries (NY Times). Unlike the initial $50 billion tariffs, the second round is expected to hit consumers in the wallet.

Many are concerned the levys will stifle economic growth in the United States. Some manufacturers have announced potential closures while others expect to freeze or slow down on hiring and investments until the situation and its impact become more clear.

Still, others hope the rising costs of imported goods will give US-made products an advantage. The American Iron and Steel Institute and the Aluminum Association have both backed Trump’s plan for that reason.

As the trade war escalates, businesses and manufacturers are making moves to protect their profits. As tariffs are set to rise from 10% to 25% on January 1, some importers are stocking up – increasing their inbound shipments before the tariffs hit home.

For an already strained industry, logistics services are becoming tighter and tighter. Warehouse space is filling up and across all intermodal transportation, the resources are sure to raise costs and become increasingly scarce.

How long the tariffs will remain in place is uncertain, but rising import costs will continue to stretch the logistics industry and most certainly be passed onto the consumer eventually. Maybe just in time for the holidays.

To learn more about how American Warehouse can help you solve your logistical challenges, contact us today!

Column: Firing Back at Trump in the Trade War With Tariffs Aimed at His Base. (2018, Oct 3). Retrieved October 7, 2018, from
https://www.nytimes.com/interactive/2018/10/03/business/economy/china-tariff-retaliation.html

Category Business, Logistics


Transporters are Diversifying Their Talent Pools

Friday, August 17th, 2018

talent in transportation

No one in the transportation industry is left unaffected by the shifts in logistics caused by a strong economy, increasing customer demands and phenomenoms like the rise of ecommerce. Arguably one of the most pressing challenges on the supply chain manager’s mind is the talent shortage.

“Employment in the transportation and warehousing industries fell 1,300 from June to July, according to preliminary data from the Bureau of Labor Statistics.” (BLS)

With the trucking industry stretched in both drivers and truck availability, railways are taking the opportunity to claim some of the transportation business. However the tight labor marketing is stretching their resources as well. While not every sub-sector is experiencing shortages, there are crucial transportation jobs in need of qualified talent.

Some are turning to tech to solve the problem while others believe the shortage is a farce and blame the predicament on a faulty recruitment process. To combat the challenges, top recruiters are paying more, turning to freelancers, committing to training, and recruiting across generations. Recruiters are using a full tool belt to build a workforce that will best serve their customers.

There are companies finding ways outside of monetary compensation to attract and retain employees. Others, like BNSF Railway who is offering a $25k bonus in certain markets to attract new talent, are showing a willingness to beat out the competition with financial incentives. Offering benefits – financial or otherwise – is only one peice of the recruitment puzzle.

With people opting to work for themselves, the gig economy, freelancing and consulting are on the rise. Employers who recognize this shift are diversifying their support systems while continuing to work with the top talent.

Some employers are looking outside of the industry for talent. Inexperienced doesn’t translate to unqualified. Through training programs they are building their own talent pool. Employers can thus offer more competitive value to desirable prospective employees.

Recruiting the next generation is a top priority, and not just for the transportation industry. Building a multi-generational workforce creates a distinct advantage for your company. Leveraging strengths from a diverse group of people will make your business stronger.

We have been blessed with talented and dedicated employees, including the likes of Jeffery. That doesn’t mean we here at American Warehouse haven’t been affected. The challenges across the industry make us even more grateful for our partners. The relationships with have cultivated with committed logistics professionals allow us to continue offering competitive prices at the highest level of service to our customers.

To learn how American Warehouse can help you fill the gaps in your supply chain, contact us today!

Column: Transportation and Warehousing: NAICS 48-49. (2018, August 17). Retrieved August 17, 2018, from https://www.bls.gov/iag/tgs/iag48-49.htm#iag48-49emp1.f.p

Column: Aligning People, Processes, and Technology for the New Future World of Work in the “Gig Economy”. (2018, July 26). Retrieved August 18, 2018, from http://www.supplychain247.com/article/the_new_future_world_of_work_in_the_gig_economy/apics


Amazon Re-shipper Services Give AU Shoppers More Access

Monday, July 16th, 2018

Amazon Re-Shipper Services

Australia may have just gotten Amazon Prime, but they’re now out of luck when it comes to shopping the global Amazon marketplace.

For Australia, buying foreign goods is often less expensive than buying from a domestic retailer. In an effort to level the playing field for Australian businesses, legislation was introduced to apply a 10% goods and services tax (GST) on overseas purchases.

While some are less worried than others over the new tax, Amazon has taken surprising measures in response. On May 31, 2018, Amazon announced their decision to disallow Amazon customers in Australia from purchasing through the US and other global versions of their ecommerce site. Citing the tax as the reason, Amazon determined the collection and payment of the tax to Australian Taxation Office was not worth the relatively small amount of revenue generated from the continent’s global online shopping.

For those looking to get around the block, Amazon buyers are using alternative methods like re-shipping services. Here’s how the package forwarding services work:

  • Shoppers outside of the US shop US-based ecommerce retailer sites
  • At checkout, the shopper enters a domestic address provided by the re-shipper
  • The re-shipper receives and forwards the package to the shopper’s international address

 
At American Warehouse, international shoppers shopping US sites can get the same service we offer our clients. We offer efficiency and cost-savings. We do this by minimizing dimensional weight through repackaging in more economical ways, as well as combining shipments for the shopper as requested.

Where there’s a will, there’s a way. With 400+ million more products available on the US-version of Amazon, Australian and other international shoppers, are looking for ways around the new law. The Amazon re-shipper services offered by American Warehouse give AU shoppers access to more product options at lower prices.


eCommerce Fulfillment: Beyond the Garage

Saturday, June 2nd, 2018

eCommerce Fulfillment

You’re up and running. You’re gaining some traction, and then suddenly you’re feeling like this:

overwhelmed by boxes

It may be time to outsource your logistics.

The ecommerce sales channel is growing at an unprecedented rate. According to the U.S. Commerce Department,

Consumers spent $453.46 billion on the web for retail purchases in 2017, a 16.0% increase compared with $390.99 billion in 2016. (Digital Commerce 360, 2018)

It’s no wonder that more and more entrepreneurs are trying their hand at online retail. The concept is simple: Choose a product that meets a need, build your ecommerce site, and market it with a compelling offer. The challenges come once you start seeing success:

  • Amazon Effect – Innovation is constantly changing the game
  • Warehousing – You’re running out of space
  • Inventory management – Receiving more orders than you have products
  • Picking and packing – The quality and accuracy of the fulfillment process
  • Shipping and/or Distribution – Carrier management and partnerships
  • Scaling – Your resources are limited and tied up

To ease your pain, there are several alternative choices for managing operations:

Self-warehousing
In the interests of control and simply misunderstanding what will be required, some will start their own warehouse operation. With this option, the business owner is now running two businesses, and not focusing on their revenue generating business.

Co-habitation
Joining forces with another business allows you to share responsibilities and cost. These releases some of the burden of self-warehousing but misses the opportunity to partner with a professional.

Outsource to a 3PL
Bringing in a professional with the right tools and connections allows you to focus on your strengths while assured that your distribution is handled with efficiency in time and cost.

The options span the gambit, but please don’t try to build a warehouse for your fulfillment needs. The costs associated with rent, equipment, staff and the mistakes you’ll inevitably make far outreach the costs of hiring a professional that already has these in place. A 3PL will handle all your logistical challenges so you can focus on your core competencies:

  • Manages warehousing and distribution channels
  • Has the processes and systems in place to manage your inventory and orders with accuracy
  • Reduces costs associated with running a warehouse and distribution center
  • Provide a personal touch to optimizing your business logistics and supply chain

A 3PL solves your warehouse and fulfillment challenges so you can get back to focusing what you’re good at – driving ecommerce sales through your business.

Column: U.S. e-commerce sales grow 16.0% in 2017. (2018, February 16). Retrieved June 2, 2018, from https://www.digitalcommerce360.com/article/us-ecommerce-sales/


FLEXE Space for Modern Logistics

Friday, July 21st, 2017

FLEXE Warehouse Partners

An emerging market is growing quicker than expected. You’re out of warehouse storage. Your customer needs the product now. Enter FLEXE, the marketplace for warehouse space. FLEXE aims to solve the problems of warehouse overflow and fulfillment demands by connecting brands directly to a warehouse provider.

Called the AirBNB of warehousing, FLEXE helps retailers fill an immediate need while driving business to warehousers. They act as a middle-man, managing the customer’s inventory through their own WMS and providing centralized visibility and communication.

Additionally, FLEXE announced earlier this summer that they were expanding into fulfillment services, offering nation-wide next day shipping for their clients. Retailers are thrilled to have Amazon-fast shipments without the associated price tag.

Prime for innovation, FLEXE utilized the on-demand business model to build a service that filled a need – one that’s great for the shipper and great for the warehouse. Like a 3PL, FLEXE’s service reduces overhead and risk while increasing profit. We’re huge fans of the FLEXE team and fellow partners, though the FLEXE model somewhat depersonalizes the process. Our business was built on the commitment to customer partnering, and we’ll continue to value the relationships we build with our customers. That stands true for our FLEXE customers as well.

We’re honored to have been selected as a FLEXE premiere partner and look forward to continuing our commitment to provide top-notch service to all of our logistics customers.


The Power of Your Story to Inspire

Thursday, November 10th, 2016

 

Inspiration in business

We all have a story that will inspire someone else. I have found real motivation in listening to Brian Buffini’s new podcast.  Are you living an inspired life? If you’re like many people, you may feel stuck, overwhelmed, and frustrated—the most common symptoms of living an uninspired life. In this episode, Brian offers timeless tips for living an inspired life. You’ll learn about the symptoms of an uninspired life, the benefits of being inspired and you’ll get the tools you need to incorporate inspiration into every day. You’ll also learn the seven sources of inspiration to tap into to start your journey to a happier life. If you’re feeling stuck in a rut, this is an episode you don’t want to miss.

 

Inspiration from today’s interview:

“If you fix the foundation, the cracks in the walls stop appearing.” – Brian Buffini

“I have never in my life envied a human being who led an easy life. I have envied a great many people who led difficult lives and led them well.” –Theodore Roosevelt

“Failure should be our teacher, not our undertaker. Failure is delay, not defeat. It is a temporary detour, not a dead end. Failure is something we can avoid only by saying nothing, doing nothing, and being nothing.” –Denis Waitley

“We are born believing. A man bears beliefs as a tree bears apples.” Ralph Waldo Emerson

“If you have zest and enthusiasm, you attract zest and enthusiasm. Life does give back in kind.” –Norman Vincent Peale

“Deprived of meaningful work, men and women lose their reason for existence; they go stark, raving mad.” –Fyodor Dostoyevsky

“Happiness is when what you think, what you say and what you do are in harmony.” Mahatma Gandhi

“The greatest glory in living lies not in never falling, but in rising every time we fall.” –Nelson Mandela

“What you get by achieving your goals is not as important as what you become by achieving your goals.” -Henry David Thoreau

“There is so greater agony than bearing an untold story inside of you.”-Maya Angelo

Remember it is your story, not someone else, be inspired to give inspiration!!

Category Business


Happy New Year!

Thursday, January 15th, 2015

 

Happy New Year

A big happy New Year to all our customers and stakeholders!!!

We are excited about increasing profits for our partners and assure them that their shipments will safely reach their customers.

To new opportunities and challenges in 2015!!

What are some of your new commitments and goals this year?

#americanwhse #distributingassurance #warehousing #distribution

Category Business