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9756 International Blvd Cincinnati, OH 45246 513.771.1850
B2B Fulfillment, B2C Fulfillment, Cold Supply Chain, Internet of Things, Supply Chain, Supply Chain Management, Sustainability, Team Taylor, Technology, Warehousing, WMS
Contract Warehousing

First things first, what exactly is contract warehousing? Let’s break it down: 

A contract warehouse manages the shipping, receiving, and storage of goods on a contract basis. This warehouse type usually requires a brand to commit to services for a particular period (typically years rather than months). The fee structure also varies based on transactions; it may be a fixed cost, cost-plus, or a combination of both. Contract warehouses can also perform many other services, such as eCommerce, handling, packing, labeling, packaging, fulfillment, and similar activities.

There are a couple of different warehousing options available to brands of all sizes. Some will choose to develop and maintain their own spaces, while others opt for leased space.

A popular option is a contract warehouse space. Here are some benefits:

More economical  


Eliminates risk


Scalability


Reliable 

Lower Capital Investment


Establishing a new warehouse operation can be time-consuming, and sometimes it’s best to focus your efforts on what will lead to business growth, leaving the logistics to a partner (Like #TeamTaylor). Contract warehousing requires less financial investment upfront and less commitment overall. In addition, suppliers, manufacturers, and retailers can benefit from facilities already set up for their specific needs, such as temperature-controlled storage or approved food-grade facilities, and respond to growth quickly and efficiently.

Eliminates Risk


With less of a commitment needed overall, contract warehousing allows any sized business to avoid taking on risks associated with the long-term investment of developing a more extensive warehouse operation.

Scalability


Contract warehousing allows you to use only what you need. This flexibility is vital if your needs change over time, like seasonal changes or new product launches. It also allows smaller businesses to benefit from equipment or procedures that would be too costly to implement independently.

Better Efficiencies of Operations


Contract warehousing can lower your operating and distribution costs immensely. But, of course, warehousing is only one part of your entire business operation. Still, for contractors, that is all they do so they can streamline their processes, lower operational costs and pass on the savings to you.

Work with a team like Taylor!


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Customer Experience, Freight Technology, Intermodal Transportation, Internet of Things, Leadership, Operations, People, Processes, Supply Chain, Supply Chain Management, Sustainability, Taylor Information, Team Taylor, Teamwork, Technology, Third Party Logistics

Most people understand that it takes transportation and logistics to get the stuff we all want and rely upon to our homes and offices, but it could be argued that what our industry does is often taken for granted. The well-publicized challenges sourcing, importing and distributing PPE, vaccines, and other critical supplies over the past year and a half have shined a light, once again, on how crucial our industry is to all of us. It is estimated that the transportation and warehousing segment in the U.S. alone accounts for over 5.5 million jobs and that logistics activities account for nearly 8% of everything we make and sell. The third-party logistics segment alone represents a $233 billion industry. We’re important.

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Amazon, Amazon Fulfillment, Customer Experience, eCommerce, eCommerce Fulfillment, Food & Beverage, Sustainability, Technology, Third Party Logistics

It’s no secret that COVID-19 has radically shifted consumer shopping habits to online marketplaces we’ve been purchasing everything from dog food to potting soil to TikTok Amazon trends and outdoor heaters. Retailers have altered inventory as a response to these shifts, and they’ve taken note COVID-19 buying patterns are here to stay. Here are the three industry trends impacting this shift.

Sustainable / Eco Purchasing Habits


Over two-thirds (65%) of consumers want to impact the environment through their everyday actions positively. This is a key reason why brands are shifting their products from plastic to eco. As temporary custodians of this planet, we understand that we have a job to make it as clean as possible for generations to come. We’ve said absolutely not to all bubble wrap in every part of our business; that word isn’t even in our vocabulary. We’ve got a couple of brands we partner with to look into bubble wrap alternatives that are sustainable. Not only is it great for our planet, but it’s also fantastic for your brand, and it’s what your customer wants! The growing awareness of our collective impact on the environment has elicited increasing demand for companies to demonstrate their sustainability commitment beyond just the end product to responsible sourcing and operating standards. 

The Need for Efficiency


The hurdle we see is maintaining information accuracy in every stage of the supply chain, which can be difficult when dealing with information overload. Another risk attached to information overload is inventory overload. Research suggests that inventories are essential when creating the optimal pricing strategy for food and beverage products. At a point in your company’s lifecycle, it comes time to partner with a 3PL to optimize your business efficiencies. Focus on your core business, expanding your brand, getting into Erewhon, new products, etc. We will fulfill orders, store your product, and get it to your customers. Scaling as you scale with multiple services under one roof, like customized packaging to an eCommerce task force that can de-bug any inventory or eCart issue

eCommerce-Fulfillment-Cincinnati

Regulatory Requirements


The food supply chain requires all players to adhere to strict operational practices to ensure food safety and quality from the fulfillment center to the wheels that bring it to the consumer. Food safety is our middle name, Taylor food safety Logistics. Jokes aside, food safety is essential to us and has been our business’s foundation for the last 171 years. Each year all of our food handling fulfillment centers undergo a Safe Quality Foods audit to obtain the highest level of food safety by the Safe Quality Foods Institute and are all FDA certified. 


Our team will work with you to build scalable fulfillment, eCommerce, packaging, kitting, transportation, and shipping solutions for your food and beverage brand.

We have an entire team ready to assist. Fill out the form below and a member of our team will be in touch asap. If you’d rather email us that works too! info@taylorlog.com

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Supply Chain, Supply Chain Management, Sustainability, Third Party Logistics
Taylor Logistics Inc. Blog

As the drive towards sustainability in logistics continues, those involved in manufacturing and shipping, particularly shippers, must understand why this trend is taking place, its potential costs, obstacles, and benefits, and what it means for the future of production and logistics.

Use Recycled Products


Depending on your package volume per month, you could be unintentionally contributing to the global crisis. So, how can your business help to break this vicious cycle? If you are using boxes – target environmentally friendly suppliers. There are a variety of certifications for the eco-friendly packaging. It will usually indicate the recycled content and ensure that no chemicals, which might be harmful to the environment, have been used. 

Coca-Cola makes the switch from plastic packaging to a biodegradable cardboard.

Consider Alternative Transportation Modes


Intermodal drayage is what dramatically reduces carbon emissions because of the lower dependence on fuel. In fact, by utilizing rail transport to move one ton of freight a mile, you drop emissions by a whopping 83%. Not every load is suitable for rail, but for certain loads, it will be beneficial not only from the eco-friendly shipper perspective.

“If just 10 percent of the freight that moves by truck moved by rail instead, fuel savings would exceed 800 million gallons per year, reducing greenhouse gas emissions by more than 9 million tons — equivalent to taking around 1.8 million cars off the road or planting 215 million trees.” – Association of American Railroads

Use Space Efficiently 


Efficiency is key. Make sure to pack the product as efficiently as possible. This will save the materials and clear up more room on the truck or any other mode of transportation, allowing you to ship more products at once. If possible, combining as much product as possible into one load is worth considering from both eco-friendly and cost-efficient perspectives.

Green Logistics Cincinnati  Taylor Logistics Brokerage and Storage

Conclusion


While these are just a few tips regarding taking your logistics green, there are plenty of other options for you to consider when partnering with a 3PL provider. By utilizing the latest technology and most efficient logistics practices, 3pl providers can devise the most cost-effective and environmentally friendly logistics solution for your business.

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Freight, Freight Brokerage, Operations, Processes, Sustainability, Third Party Logistics
Taylor Logistics Inc. Blog

It’s important for our business to invest renewable energy technologies and sustainability in all aspects of our logistics business. Importantly, when using road transport, we plan each journey to establish the most efficient route so that we can reduce the number of miles traveled and avoid empty trucks on the road. Taylor has implemented a Green Logistics program for several years; by doing so, our team reduces fossil fuel consumption and carbon emissions by:

Optimizing Routes


Until electric and other more sustainable vehicle options, route optimization is one of the best ways to reduce the environmental impact of transportation and distribution. Artificial intelligence can work with GPS devices to optimize local, national, and global shipping routes. Advanced analytics update routes in real-time, to take account of congestion and other issues.

Simplifying Supply Chain Processes


Supply chains can be improved through significant changes, but it’s more common to see results through small, iterative improvements. Useful analytics and reporting combine with machine learning to continually improve processes throughout the supply chain. Every change that reduces waste speeds up delivery or enhances quality makes an incremental improvement to sustainability.

Monitoring Existing Environmental Risks


Climate change and other environmental factors already impact many supply chains. Issues such as wildfires in California, rising sea levels, water scarcity, and lower agricultural yields have a profound impact on the efficiency, quality, and speed of the supply chain. Supply chain technology helps to predict these risks and allows supply chain managers to mitigate their impact and put contingency plans in place.

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