Amazon has introduced a new program called Supply Chain Connect for merchants using Fulfillment By Amazon (FBA) services. This new program is designed to enhance seller-supplier efficiencies and increase control of inbound shipping to Amazon fulfillment centers (FCs). Logistics Plus, being an approved third-party Amazon solutions provider, is a full participant in this new program.
Sellers currently have two methods to deliver inventory from suppliers to Amazon FCs. One is to have the merchandise delivered to their own facilities and then prepare and ship the items to Amazon FCs themselves. Another is to have a third-party supplier ship the merchandise directly to Amazon FCs on their behalf, in which case the seller would have to coordinate between the supplier and Amazon. With Amazon Supply Chain Connect, FBA sellers can choose to have their third-party suppliers (such as Logistics Plus) send items to Amazon FCs using the same Seller Central portal they already use for all of their Amazon-related shipments.
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Program Advantages
New Supplier Portal: A central supplier gateway where designated suppliers can develop your FBA shipments.
Reduced Lead Time: Suppliers can enter box content information and instantly download FBA shipment and item labels removing the need for back and forth communication, following a decrease in lead time.
Streamlined Process: Suppliers have the resources needed to carry out shipments with greater precision and become more mindful of the Amazon shipping processes.
Fulfillment Flexibility: By having streamlined communications with suppliers regarding your Amazon shipments, eCommerce merchants can continue to use third-party logistics companies to support all of their omni-channel fulfillment needs.
When a merchant chooses an Amazon Partnered Carrier, the results are lower costs and greater visibility for Amazon. Throughout the months leading up to Christmas, FBA sellers often describe complications of shipments to Amazon FCs that end up in limbo. Supply Chain Connect could likely clear up these issues for sellers, enhancing the fulfillment process. Here are two scenarios in which sellers can use the Supply Chain Connect program in conjunction with Logistics Plus Fulfillment Solutions and their Amazon Seller Central accounts:
Process for Merchants that utilize Seller Central and Logistics Plus manages the process
The client emails to let us know what they want sent into Amazon.
We log into their Seller Central account, create the shipment, confirm the PO and print all necessary ASIN labels.
We prepare the shipment and enter the details back into Seller Central.
We then print the shipping labels/BOL and complete the PO.
Process for Merchants that handle their own Seller Central account:
Client will set up the shipment in Seller Central themselves and then email the details to us, including the template for the labels.
We prepare the shipment, label, pack and send the details back to the client via email.
When the shipping labels/BOL are available they are sent back to us via email.
The fulfillment experts at Logistics Plus stay up to date on Amazon guidelines and information so that our clients don’t have to. We guarantee that our work is up to their requirements. We can do simple shipments, or we can handle very detailed assembly work prior to shipping. Let us know if we can help you address your Amazon or eCommerce fulfillment challenges.
Over the span of 10 years, the ocean freight transportation industry has been challenged by global supply and demand disparity throughout the market, affecting both carriers and shippers. On occasion, there is overcapacity in the market, causing a major decline in the rates. There are also occurrences in which demand quickly increases, causing the rates to spike. Ocean carriers have benefited from these periods of increased demand, triggering rates to shoot up and become more unstable and challenging for shippers to allocate and purchase space.
One of the driving variables of this global supply and demand imbalance was Maersk’s fleet venture initiative: Maersk sought to control the worldwide container market and drive existing industry rates. They started building more vessels to achieve this goal. However, this plan was interrupted by the Great Recession of 2007-2009, when supply decreased rapidly for container shipping.
The recession instigated a chain reaction for ocean carriers, making it vital to ensure that freight rates didn’t tumble too far. In response, ocean carriers began forming new alliances and incorporating the following strategies:
Slow steaming: conserve fuel and increase transit times
Vessel idling: remove vessels from the rotation during slow periods
Organizational cost-cutting: layoffs within the company
IT modernization: large investments into technology and creating a more automated system
The Main Three
What used to be four main alliances has recently changed into three larger unions. The current state of the three-carrier alliance takes into account almost 80% of the container trade in the world and nearly 90% of container volume on primary trade lanes.
2M Alliance (MSC, Maersk, Hamburg Sud, Hyundai)
Ocean Alliance (CMA CGM, APL, COSCO, China Shipping, OOCL, Evergreen)
The Alliance (NYK Group, “K” Line, MOL, Yang Ming, Hapag-Lloyd, UASC)
The absence of competition that has been created due to these major unions has permitted carriers to recapture productivity, control rate changes, and space accessibility. As a shipper looking for other possibilities, it can be troubling that five or six worldwide carriers control all major international trade routes.
New Carrier Alliance
Three Japan-based container shipping carriers are paring up to create a new joint venture, entitled Ocean Network Express (ONE). These carriers are comprised of Kawasaki Kisen Kaisha, Ltd. (K-Line), Mitsui O.S.K. Lines, Ltd. (MOL), and Nippon Yusen Kabushiki Kaisha (NYK). The development of the joint venture is said to merge the companies’ container shipping business, including global terminal operation business. By offering high-quality, competitive services through the enhancement and alliance of the three companies’ global network and service structures, Ocean Network Express will be capable of better meeting customers’ needs. The company has also been working towards its goal of launching the new JV. Once all anti-trust reviews are finalized, the establishment of the new JV will officially be publicized. The start date for Ocean Network Express is set for April 1, 2018.
Benefits:
Provide service across 90 countries
Fleet size of 1.4 million TEU (Twenty-Foot Equivalent Units)
Represents around 7% of the global share
The Power of Carrier Alliances Advantages of the carrier alliances include:
Less competition, while at the same time greater control of vessels
Better management of ship capacity
More effective coordination of future ship orders with forecasted demand
A lowering in operating costs by more effective collaboration with service providers, such as ports, terminal operators, stevedores, tugboat providers, and container lessors
Enhanced reach, that will allow alliance partners to service new ports and maximize the potential of new routes
Concerns due to the alliances include:
Terminal congestion
Chassis dislocations: raises concerns that the shipper or importer may be bearing the brunt of that impact and paying any associated dislocation fees.
Delays in spotting and releasing intermodal trains: intermodal trains have been delayed or had other challenges due to increased congestion and ship bunching
The history of the maritime industry has traditionally been one of feast or famine. Large swings in vessel capacity and shipper demand have made for a turbulent environment in terms of financing and planning for the future. The formation of shipping alliances has helped to mitigate these issues and serve as a strong incentive to continue and strengthen them.
Logistics Plus can be your trusted partner in navigating the challenges of dealing with and arranging your logistical needs with these large organizations.
Thank you to Frederik Geirnaert from the Logistics Plus Project Cargo Division for sharing another cool, fast-motion (x8) video of a recent project handled by LP Belgium Team. Here are some quick details regarding this cargo:
Cargo: 6 windmill blades
Dims: 49.6m long, 3.6m wide, 2.9m high, 10mt each
Port: discharged from mother vessel in Antwerp, Belgium
Thank you to Erie News Now reporter Lisa Adams for covering Logistics Plus and our expanding business segments. You can watch a replay of the news segment here or read the online recap on erienewsnow.com.
When you think of Valentine’s Day, you probably associate it with an abundance of flowers, boxed chocolates, and sappy love letters. Valentine’s Day is a holiday where millions of Americans will spend substantial sums of money on gifts to express their feelings of love, as they do every year. However, many most likely have no appreciation for the vital role that the transportation industry plays in the delivery of this special day.
Valentine’s Day is a great testament to how much consumers are willing to spend to show their love. What few people realize is that behind every bouquet of flowers and box of chocolates is an unseen and highly choreographed dance of logistics. This invisible performance can employ numerous modes of transport encompassing airlines, maritime shipping, as well as trucking, and even railroads. The successful execution of this supply chain will ensure that customers receive the gifts they desire, and the providers are rewarded for their efforts.
Achieving and delivering consistent results can be a challenging task for the Valentine’s Day deadline. Many variables enter the equation, including conditions where flowers are grown, as well as the weather on the big day. Also, careful control of temperatures during transport is critical to ensure no degradation of fragile floral cargoes. While other items purchased during Valentine’s Day may not require the demanding conditions as flowers, forecasting supply and demand for these items, like cards and candies, can affect profitability.
Though many do not consider the supply chain to be a vital component of Valentine’s Day, it’s clear how critical shipping is to this fruitful occasion:
$19.6 billion: An estimate for how much U.S. consumers will spend on Valentine’s Day according to the National Retail Federation
36 million: The number of heart-shaped boxes of chocolate sold for Valentine’s Day each year
110 million: Approximately how many roses, the majority being red, will be sold and delivered within a three-day period
$158.71: The average amount of American men spend on Valentine’s Day
$2.0 billion: The amount people will spend on flowers this Valentine’s Day
60%: The percentage of American roses produced in California
We hope you enjoyed these fun Valentine’s Day supply chain facts. Keep Logistics Plus close at heart when considering your transportation needs throughout the year. We LOVE logistics – it’s in our DNA!
Chinese New Year is the first day of the year in the Chinese calendar. Chinese New Year is also known as the Spring Festival in modern China, or simply the Lunar New Year, is the most important and longest of all Chinese holidays. The first day of the Chinese New Year 2018, the year of the dog will be celebrated Thursday, February 15, 2018, until February 21, 2018. As you might imagine, given the prominence of Chinese global commerce, the holiday has a huge impact on global supply chains around the world.
Government, construction, and factories are generally closed for most of the Spring Festival (including the Logistics Plus offices in China), while ports and customs usually operate with a skeleton staff focusing on perishable priority items. Many manufacturers treat the holiday as an annual break and will subsequently shut down for two weeks or longer. With this year’s holiday falling a full 19 days later than it did in 2017, the 2018 Chinese New Year will be different, with normal freight flows resuming in mid-to-late March, according to John Paul Hampstead, staff writer for FreightWaves.com.
If you have Chinese imports or exports, hopefully, you have already planned ahead for this annual supply chain disruption (most suppliers have probably already stopped accepting orders until after the holiday). Different manufacturers might have different schedules, so it is best to coordinate individually with each of your overseas suppliers. Planning and coordination are key to ensuring your supply chain continues to run smoothly before, during, and after the Chinese New Year.
If you need help shifting your supply chain back into high-gear following the Chinese New Year, the global import & export experts at Logistics Plus are here to help. As a top freight forwarder and NVOCC, we can help you secure affordable air freightand ocean freight transportation, and we can provide you with customs brokerage and global trade compliance support. Shipping documents (e.g., BOL entry, arrival notice, custom filings), tariff filings, VGM submissions, cargo tracking, freight rate management, and more – we’ve got you covered! Once your goods arrive in the U.S., we can provide warehousing and fulfillment, and transportation solutions as needed too. Contact us today!
PS: As a reminder, Logistics Plus China offices will also be closed from February 15 through February 21 for the holiday. Those offices will resume normal operations on February 22. During that time period, all other Logistics Plus locations stand ready to help you with your international shipping needs.
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