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Cold Supply Chain, Food & Beverage, Food Grade, Food Safety, Freight, Freight Brokerage, LTL, Operations, Processes, Retail, Safety, SQF, Supply Chain, Supply Chain Management, Sustainability, Taylor Information, Team Taylor, Third Party Logistics, Value-Added Services
Navigating the 2024 Produce Season with Taylor Logistics

As spring ushers in warmer weather, it also heralds the arrival of produce season, a critical period in the transportation industry. This season brings both opportunities and challenges for Consumer Packaged Goods (CPG) shippers. The surge in crop volumes demands careful planning and strategic navigation to ensure smooth operations and cost-effective transportation. In this guide, we will explore the intricacies of the 2024 produce season and how Taylor and our freight services can navigate this dynamic landscape.

Produce season significantly impacts CPG shippers as carriers focus on transporting high crop volumes. This shift in volume tightens capacity, leading to increased rates and challenges for unprepared shippers. The seasonal impact typically begins in late spring and spreads from warmer regions to northern areas as the weather warms. Despite not directly engaging in produce production or shipment, CPG shippers are directly affected by this phenomenon, which influences transportation performance and expenditure.

Refrigerated transportation becomes particularly vital and in high demand during the produce season. Securing this specialized transportation can prove challenging without the assistance of a logistics provider boasting an expansive network. While rate spikes are expected during this period, proactive measures such as pre-booking capacity or optimizing transportation networks can mitigate the impact.

The duration and intensity of disruptions vary, ranging from short-term fluctuations lasting less than a month to prolonged peaks. These fluctuations are influenced by factors such as latitude and the predominant crops in a region.

At Taylor, we understand the critical importance of adaptability and foresight in navigating the nuances of produce season. Our commitment to providing innovative solutions and reliable services ensures that CPG shippers can confidently and efficiently navigate this dynamic landscape.

As the 2024 produce season unfolds, we stand ready to support shippers with industry-leading expertise and unparalleled freight services. By partnering with us, shippers can unlock new opportunities and overcome challenges, ensuring seamless transportation operations even amidst the complexities of produce season.


Interested in maximizing success during the 2024 produce season? Partner with Taylor Logistics for expert guidance and seamless freight solutions. For prompt assistance, email us at info@taylorlog.com or call us at 513-771-1850. Let’s navigate this season professionally and efficiently together!

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B2B Fulfillment, B2C Fulfillment, Customer Experience, eCommerce Fulfillment, Food & Beverage, Food Grade, Food Safety, Freight, Freight Brokerage, Operations, SQF, Supply Chain, Supply Chain Management, Sustainability, Team Taylor, Value-Added Services, Warehousing

As the anticipation for Super Bowl LVIII reaches a fever pitch, with the Kansas City Chiefs facing off against the San Francisco 49ers and Usher taking the stage at halftime, the logistical dance behind the scenes is just as crucial. In this high-stakes game of careful supply chain planning, retailers rely on a symphony of precision to keep their shelves stocked with fan-favorite snacks and beverages.

The Super Bowl Showdown: Chiefs vs. 49ers with Usher’s Halftime Extravaganza

As football fans prepare for a showdown of epic proportions on the field, the added allure of Usher’s halftime performance promises an unforgettable spectacle during Super Bowl LVIII. Amidst the cheers and halftime show excitement, retailers face the challenge of meeting the soaring demand for Super Bowl essentials.

Careful Supply Chain Planning: The Winning Playbook

In the fast-paced world of supply chain management, meticulous planning becomes the cornerstone of success. As Super Bowl enthusiasts stock up on chips, dips, and beverages, retailers navigate the logistical intricacies of ensuring a seamless flow of goods from manufacturers to store shelves. The careful orchestration of supply chain planning ensures that no fumble occurs in meeting the surge in demand.

Efficient Freight Services: Bridging the Gaps

The roar of the crowd during the Super Bowl is mirrored by the hum of freight services ensuring a smooth journey for products from distribution centers to retailers. Efficient transportation becomes the backbone of the supply chain, bridging the gaps and ensuring that every essential item arrives at its destination in a timely fashion.

Warehousing Excellence: The MVP in Inventory Management

As the spotlight shines on the Super Bowl, behind the scenes, warehousing excellence plays a pivotal role. Inventory management becomes the MVP, ensuring that retailers are well-stocked without excess, and shelves are replenished just in time to meet the demand ebbs and flows during the big game.

Partner with Taylor Logistics for Super Bowl Supply Chain Success

For businesses looking to elevate their supply chain game and ensure a triumphant Super Bowl season, the call to action is clear: partner with Taylor Logistics. With a proven track record of precision planning, efficient freight services, and warehousing excellence, Taylor Logistics is your strategic ally. Don’t leave your Super Bowl supply chain to chance—join forces with Taylor Logistics and experience the winning edge.

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Sustainability Taylor Logistics Inc.

CINCINNATI, OH – NOVEMBER 27TH, 2023 – Taylor Companies, comprising Taylor Logistics Inc, Taylor Warehouse Corp, and Taylor Distributing Co, proudly announce significant strides in its commitment to environmental sustainability. The integrated efforts of these entities underscore their dedication to reducing environmental impact and fostering a more sustainable future.

Over the past several years, Taylor has prioritized integrating environmentally conscious practices across its operations, recognizing businesses’ crucial role in addressing global sustainability challenges. The commitment spans multiple facets of the supply chain, from transportation and warehousing to distribution.

Taylor Logistics Inc., the logistics arm of Taylor, has implemented innovative transportation solutions to reduce carbon emissions across all three scopes. This includes optimizing routes, investing in fuel-efficient vehicles, and exploring alternative energy sources. By embracing cutting-edge technologies, Taylor Logistics Inc. aims to streamline operations while minimizing its ecological footprint, with a particular focus on Scope 3 emissions.

Taylor Warehouse Corp, which is responsible for storing and managing goods, has initiated comprehensive sustainability programs within its warehouse facilities. These initiatives encompass energy-efficient lighting, waste reduction strategies, and the implementation of recycling programs. Through these measures, Taylor Warehouse Corp is working to create environmentally responsible and resource-efficient warehousing solutions.

Taylor Distributing Co, the distribution arm of Taylor, is actively engaged in sustainable packaging practices to address all three scopes of emissions. The company is committed to minimizing packaging waste by adopting eco-friendly materials and optimizing packaging design. Taylor Distributing Co is also working with suppliers to measure and reduce the carbon footprint associated with the production and transportation of packaging materials, contributing to Scope 3 emissions reduction.

“At Taylor, we believe in the power of responsible business practices to drive positive change,” said Noelle Taylor, Sustainability Captain and Marketing Director at Taylor. “Our commitment to environmental sustainability is a key aspect of our corporate responsibility. We are proud of our progress thus far and remain dedicated to continually advancing our sustainability initiatives.”

In addition to these individual efforts, Taylor is exploring collaborative initiatives with industry partners, suppliers, and local businesses to enhance its environmental impact reduction strategies further. By fostering a culture of sustainability across its subsidiaries, Taylor Companies is demonstrating its commitment to creating a more sustainable and resilient future.

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Seasonal Supply Chain

In the dynamic realm of logistics and supply chain management, navigating the rhythmic ebb and flow of seasonal supply chain shifts is both an art and a science. The ability to harmonize your operations with seasonal fluctuations can spell the difference between triumph and turbulence for your business. Whether you’re peddling sunscreen in summer or crafting holiday magic in winter, understanding and conquering these seasonal shifts is paramount. In this blog post, we will delve into the intricacies of seasonal supply chains and unveil ingenious strategies to help your business not just survive but thrive amidst these shifts.

Decoding Seasonal Supply Chain Shifts

Seasonal supply chain shifts are the balletic movements of commerce, choreographed by the calendar and consumer whims. They materialize when consumer demand for particular products or services experiences pronounced variations throughout the year. These variations are often orchestrated by a symphony of factors, including weather patterns, cultural events, holidays, and economic triggers. Here are some illustrative examples:

Weather-Driven Seasonality: Companies dealing in weather-sensitive wares, such as swimsuits and ski gear, sway with the seasons, adapting their supply chains to these meteorological rhythms.

Festive Frenzy: Retailers, whether physical or online, witness a surge in demand during the festive season, necessitating a flawless fusion of augmented inventory, nimble distribution, and top-notch customer support.

Agricultural Rhapsody: The agricultural sector performs its seasonal sonata as crops are harvested at specific times of the year, affecting not only growers but also the entire supply chain downstream.

Back-to-School Ballet: Businesses peddling school supplies and uniforms orchestrate their operations for the back-to-school season, a crescendo of demand.

Key Strategies for Synchronizing with Seasonal Shifts

Demand Anticipation: Accurate demand forecasting acts as the conductor of your seasonal supply chain orchestra. Harness historical sales data, market intelligence, and predictive analytics to anticipate the crescendos and diminuendos of demand. This enables you to fine-tune inventory levels and production schedules.

Flexibility in Supply Chain Design: Inject adaptability into your supply chain’s DNA to harmonize with changing demand. Embrace flexible staffing arrangements, dynamic warehousing solutions, and versatile transportation options. Temporary personnel and rented storage spaces can be instrumental in hitting the right notes during peak seasons.

Supplier Synergy: Cultivate strong partnerships with suppliers, sharing your seasonal symphony well in advance. Collaborate closely to ensure a steady supply of materials and products when the demand crescendos.

Inventory Virtuosity: Mastery of inventory management is paramount. Employ techniques such as just-in-time inventory, safety stock, and ABC analysis to fine-tune inventory levels. This prevents surplus during lulls and staves off shortages during high-demand periods.

Technological Crescendo: Invest in cutting-edge supply chain technology and automation to streamline processes and elevate efficiency. These tools enhance visibility, orchestrate real-time inventory tracking, and facilitate agile responses to demand fluctuations.

Logistics Choreography: Ensure your transportation and logistics networks possess the grace to handle peak-season volumes. Consider alternative routes and transportation methods to sidestep potential bottlenecks.

Customer Engagement: Keep your audience informed about product availability and delivery schedules during peak seasons. Implement responsive customer support channels to address inquiries and concerns with finesse.

Post-Season Encore: After each peak season performance, conduct a thorough post-season analysis. Uncover areas for refinement, fine-tuning your seasonal supply chain symphony for a stellar encore.

Seasonal supply chain shifts are the verses and choruses of many businesses’ financial songs, and conducting them with mastery is the key to sustained success. By immersing yourself in the rhythm of seasonal demand variations and orchestrating astute strategies, your company can not only meet customer expectations but also transform seasonal challenges into opportunities.

In this harmonious journey, Taylor Logistics stands as your trusted partner, ready to help you hit all the right notes. With their extensive experience and expertise in supply chain management, Taylor Logistics can provide tailored solutions that synchronize your operations with seasonal shifts. Their innovative approach, backed by cutting-edge technology, ensures that your supply chain performs like a well-rehearsed symphony, delivering efficiency and precision.

In a competitive landscape, adaptability and agility during seasonal supply chain shifts are the notes that harmonize with long-term prosperity. So, step onto the stage, embrace the music of the seasons, and let Taylor Logistics choreograph your supply chain for a standing ovation in the world of seamless success.

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Supply Chain, Supply Chain Management, Sustainability, Team Taylor, Third Party Logistics

In today’s business landscape, sustainability is no longer a buzzword but a fundamental consideration. In the realm of third-party logistics (3PL), partnering with a provider committed to sustainability and transparent impact reporting offers benefits beyond the bottom line. For shippers, this strategic collaboration blends values with vision, enhancing supply chain strategies and ultimately reducing your brand’s footprint.

Forward-Thinking Collaboration

Selecting a 3PL with a robust sustainability or Environmental, Social, and Governance (ESG) program is a statement of shared values. It shows your commitment to responsible business practices and reinforces your brand’s integrity. You create a more meaningful, long-lasting collaboration by aligning with a partner that values sustainability.

Environmental Impact Reduction

The logistics sector plays a significant role in carbon emissions and resource depletion. Opting for a sustainable 3PL means you’re actively contributing to reducing these impacts. These providers often utilize energy-efficient vehicles, eco-friendly packaging, and streamlined transportation routes, leading to a greener supply chain and a cleaner environment.

Meeting Regulatory Demands

Environmental regulations are evolving rapidly. A 3PL experienced in sustainability is better equipped to navigate these changes, helping your supply chain comply with current and future regulations. This proactive approach minimizes legal risks and keeps your business ahead of the curve.

Insights Through Transparency

A sustainable 3PL that regularly reports its sustainability metrics provides you with valuable insights into its performance. Transparent reporting showcases their dedication to sustainability and allows you to gauge the effectiveness of their efforts. This data-driven approach empowers you to make well-informed decisions about your logistics partner.

Cost Efficiency

Contrary to the misconception that sustainability incurs additional costs, partnering with a sustainable 3PL often leads to cost savings. Efficiency gains from sustainable practices, such as optimized routes and reduced energy consumption, translate into financial benefits for your business.

Enhanced Reputation and Customer Appeal

Modern consumers are more conscious of a company’s sustainability efforts than ever before. Partnering with a sustainable 3PL aligns your supply chain with the values of eco-conscious customers. This alignment can attract a dedicated customer base, foster loyalty, and set your brand apart in a competitive market.

Choosing a 3PL with a strong sustainability or ESG program and a commitment to transparent metrics is a strategic move that pays off in numerous ways. It showcases your values, reduces environmental impact, ensures regulatory compliance, provides valuable insights, saves costs, and appeals to discerning consumers. By making this choice, you’re building a better supply chain and contributing to a more sustainable future for all.

Talk With Taylor

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June 2023 Freight Market

As we dive into the midpoint of 2023, the freight market continues to evolve, presenting challenges and opportunities for shippers worldwide. In this blog, we will look closer at the current state of the June 2023 freight market and explore what the rest of the month holds for shippers. Understanding these dynamics can help shippers make informed decisions and optimize their supply chain operations.

Demand and Capacity

The freight market in June 2023 is witnessing robust demand for shipping services across various industries. In addition, economic recovery from the pandemic is gaining momentum, leading to increased consumer spending and heightened manufacturing activity. As a result, shippers can expect strong demand for their products, driving the need for reliable transportation services.

However, this surge in demand has led to capacity constraints in the freight market. The imbalance between supply and demand has resulted in higher freight rates and reduced availability of trucking, ocean, and air freight capacity. Shippers should anticipate these challenges and plan their shipments accordingly.

Freight Rates

Due to the demand and capacity imbalance, freight rates increased in June 2023. Shippers should be prepared for higher transportation costs, particularly trucking and container shipping. Budgeting accordingly and negotiating favorable rates with carriers and logistics providers is crucial.

Shippers can explore alternative transportation modes to mitigate the impact of rising freight rates or consider collaborating with freight forwarders who can leverage their networks to secure competitive rates. Optimizing shipment consolidation and employing efficient logistics strategies can also help reduce costs.

Technology and Digitization

Technology is vital in navigating the freight market in this increasingly digital era. Shippers should leverage digital platforms and transportation management systems (TMS) to streamline operations and gain better visibility into their supply chain. In addition, real-time tracking and analytics can provide valuable insights, enabling shippers to make data-driven decisions and optimize freight movements.

Emerging technologies like blockchain and the Internet of Things (IoT) are also revolutionizing the freight industry. These technologies enhance transparency, traceability, and security throughout the supply chain. Therefore, shippers should explore opportunities to incorporate such innovations into their operations to gain a competitive edge.

Sustainability and Green Initiatives

Sustainability is a growing concern in the freight industry. As a result, shippers increasingly prioritize eco-friendly transportation solutions to reduce their carbon footprint and meet regulatory requirements. In June 2023, we expect more shippers to adopt green initiatives and collaborate with carriers offering sustainable transportation options.

Shippers can contribute to sustainability goals while maintaining operational efficiency by utilizing intermodal transportation, optimizing routes, and embracing alternative fuels. In addition, partnering with environmentally conscious logistics providers can help shippers align their supply chain with sustainability objectives.

Conclusion

As we progress through June 2023, the freight market presents a mixed landscape of opportunities and challenges for shippers. Understanding the current dynamics and proactively adapting to market changes are key to success. By considering factors such as demand and capacity, freight rates, technology and digitization, and sustainability initiatives, shippers can navigate the freight market effectively and ensure the smooth transportation of their goods.

Partner With Taylor

When meeting your freight needs, Taylor Logistics brokerage services stand out as an excellent choice. With their extensive expertise and industry knowledge, Taylor offers a comprehensive range of logistics solutions tailored to your requirements. Whether you need assistance with transportation management, freight optimization, or supply chain consulting, Taylor Logistics has the expertise and resources to deliver results. They leverage their vast network of carriers and deep understanding of the market to ensure efficient and cost-effective transportation solutions. With a focus on customer satisfaction, Taylor Logistics provides personalized support and real-time visibility, allowing you to track your shipments and make informed decisions. By partnering with #TeamTaylor, you can streamline your supply chain operations, optimize costs, and enhance overall efficiency, ultimately helping your business thrive in the dynamic freight industry.

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3PL Provider Taylor Logistics Cincinnati Ohio

Companies always look for ways to reduce costs and increase efficiency in today’s highly competitive global economy. To handle their supply chain needs, many companies outsource to third-party logistics providers (3PL).In addition to warehousing, order fulfillment, and transportation, 3PLs offer various services. The benefits of these services can be significant for companies, but they need to be appropriately considered before deciding to use any 3PL. To evaluate a 3PL provider, you should follow these ten steps.

Compare Costs

It is essential to compare the costs of their services to in-house operations as a first step. By doing this, you can determine whether 3PL’s services are cost-effective and if they provide value for money. Don’t forget to factor in additional costs such as setup, technology, and transportation fees.

Analyze On-Time Delivery Rates

An essential aspect of 3PL management is measuring on-time delivery rates. If the 3PL meets customer expectations, this will give you an idea of its reliability. On-time delivery rates are vital for companies that operate in industries where timeliness is critical.

Inventory Accuracy

Inventory accuracy is another important metric to look for in a 3PL provider. This will let you know how well the third-party logistics provider is managing your inventory and whether they can monitor stock levels. Since this can significantly contribute to errors and delays, measuring the 3PL’s capacity to track inventory in transit is also critical.

Customer Satisfaction

Numerous methods, including customer surveys, reviews, and feedback, can be used to gauge customer happiness. You can determine how well the 3PL is meeting consumer expectations by asking for a customer promoter score and referrals.

Return on Investment

Keeping track of your costs will provide insight into the amount of extra revenue your business obtains from the 3PL. In addition, analyzing the revenue generated by the 3PL and comparing it to the costs associated with their services will enable you to gain a more comprehensive understanding of your overall return on investment.

Results

Following the steps outlined above can help you evaluate a 3PL provider and see if they are providing value for the money. With the right metrics in place, you can make an informed decision about whether or not to continue working with them.

Bottom Line

?Selecting the right 3PL provider is an important decision that can significantly impact your company’s success. Evaluating a 3PL provider’s industry experience, technology and tools, services offered, customer service, pricing and agreements, security and compliance, scalability and flexibility, and reputation will help organizations meet their logistics needs and gain a competitive edge. As a result, you can make more informed decisions.

It’s essential to thoroughly research any 3PL provider before making a decision. This includes asking the right questions and conducting due diligence to verify vendor credentials and capabilities. By selecting a 3PL provider that best suits their needs, companies can improve the efficiency of their supply chain, reduce costs, and improve the customer experience. Questions or need to speak with an expert? Talk with Taylor!

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Taylor Smartway Carrier

We are proud to announce that we have renewed our partnership with SmartWay® for the fifth year in a row, a qualifying sustainability program run by the Environmental Protection Agency. Our fleet consists of US EPA SmartWay®-designated trucks. In addition, our trucks are equipped with anti-idling and fuel-saving equipment for minimal environmental impact and maximum fuel savings. SmartWay® sets standards for all modes of North American transportation businesses ?seeking to differentiate themselves and look for sustainable partners.

What is SmartWay®?

SmartWay is a program that was developed by the U.S. Environmental Protection Agency (EPA) to help address the trends and challenges that the growing logistics industry poses to the environment. It was founded in 2004 as a voluntary, public-private association where private companies can find more sustainable resources to manage their supply chains. Companies can use SmartWay to help measure, benchmark and improve logistics operations to help reduce their environmental footprint and see significant savings to their bottom line.

Talk With Taylor

Fill out the form below, and a member of our team will be in touch asap.

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Happy #EarthDay! As temporary custodians of our planet, we must ensure that future generations will enjoy our earth’s benefits. We believe in positively impacting the environment by implementing new technologies and reducing our emissions. Learn more about Taylor sustainability here: https://taylorlogistics.com/sustainability/

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Four Functions of 3PL Providers

As a business expands and you need to get products in new markets to more customers, there comes a time when it must determine whether to outsource its supply chain operations.

To meet customer demand, shippers turn to a third-party logistics (3PL) provider to do just that.

But not all 3PLs offer the same services and capabilities. For example, some just focus on transportation, and some just on fulfillment. But what about a full-service logistics provider that can do it all? Learn more about the functions of a full-service 3PL like Taylor.

1. Shipping and Receiving

Taylor helps companies with shipping and receiving; our brokerage team manages the shipping process from start to finish. As a technology-driven organization, our transportation management system (TMS) allows for managing carrier relations, freight data, and matrix reports for real-time visibility and increased transparency throughout the shipping process.

2. Transportation

As a multi-service 3PL that also handles transportation, we are responsible for transporting goods between locations, from manufacturer to fulfillment to any brick-and-mortar store, and even direct parcels to your doorstep. Because we have our in-house brokerage and local Cincinnati fleet, there’s no need to leverage another partner to complete any shipping needs.

3. Warehousing

Warehousing is typically the most common function of a third-party logistics provider. To no surprise, warehousing is a large portion of our service portfolio; from multi-client public warehouses to dedicated client contract facilities, we’ve altered our warehouse services to meet the needs of our business partners. Taylor provides customizable ways to handle storage, distribution, and transportation.

4. Value-Added Services

In addition to transportation, warehousing, and distribution, several 3PLs like Taylor also provide a wide variety of value-added services, including eCommerce, pick & pack, kitting, custom labeling, manufacturing, Amazon prep services, and design. By outsourcing these services, business partners can focus on their core business. 

Need a full-service 3PL partner?

Fill out the form below and a member of our team will reach out asap. Questions? Inbox us at info@taylorlog.com or call 513-771-1850

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The 2023 Inbound Logistics Planner is here, and you can read all about Taylor! From our outstanding team to what sets us apart and how Taylor technology improves customers’ supply chains. Here’s our entry:

As the longest-standing 3PL, we know that offering one supply chain service decreases overall efficiency and sustainability; that’s why we’ve altered our business to be a full-service omnichannel 3PL for our customers.

What Does Taylor Do Differently?

We provide SQF food-grade public warehousing, contract dedicated warehousing, B2B & B2C fulfillment services, freight brokerage, asset local Cincinnati fleet, dedicated fleet services, D2C e-commerce, packaging, drayage/ port management services, kitting, and subscription services.

We support large and mid-sized companies in the food, beverage, flavoring, ingredient, pet food, CPG, retail, PPE, packaging, and automotive spaces.

Creating Long-Lasting Relationships with Our Customers

As a privately held family business with over 170 years of experience, we are an agile company that scales and grows with our customers. We are small enough to care and have excellent customer service with dedicated teams to some of our clients, yet large enough to have the technology and infrastructure needed to scale. Our goal is always to exceed customers’ expectations and build long-term relationships.

Technology-Driven Operations

A part of our competitive advantage is that we continuously invest in technology to offer our customers the latest and greatest for complete customization, visibility, tracking, and reporting. Technology creates a stronger bond between our team and our customers, mainly due to improved communication, information sharing, and meaningful collaboration that produces better results. From finding the best shipping rates to inventory optimization and forecasting, our systems are paramount in customers’ cost-saving strategies.

Emphasis on Food Safety

While we partner with several industries, we pride ourselves on an extensive food-safety program that is rooted in principles verified by the Safe Quality Foods Institute (SQF). All of our public warehouses are food-grade, and we offer SQF to be established at our contractual locations as well.

It’s Because of Our Team

We make supply chains stronger. This industry requires hard work and dedication; our team always makes the impossible possible for our customers. Through a collaborative and safe culture, we are always one team, one mission.

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Each year, Robert Handfield, Ph.D. of North Carolina State University, predicts what’s in store for global commerce and supply chains for the next 365 days. While these predictions are perhaps not completely original, his takeaways and supporting evidence are worth considering. Please see the full article from NCSU here.

Inflation will persist.  Jason Miller from Michigan State is an expert at navigating the many different publicly available government database, and interpreting the tea leaves.  He writes a weekly blog on Linked In which I follow religiously.  He is the most accurate forecaster I know, because unlike many speculators and economists, his observations are based on actual data!    He believes that inflation isn’t going to go down going into 2023 – but will persist.  He writes that“While it is good news that we are starting to see the inflation of goods slow down, I would caution anyone who expects goods to go through a deflationary cycle that the data (to me) isn’t pointing in this direction to a meaningful degree. Data below from three series from the BLS PPI program obtained from FRED (with call codes after the labels), all set such that 100 = January 2019.  Implication:  the best-case scenario I see for the price of finished goods is that their prices stay relatively unchanged from the 3rd quarter of 2022….we are going to see meaningful deflation in finished goods prices as we move into 2023, which will in turn impact PCE price index that the Fed monitors for consumer inflation.”   Unfortunately, this also means that the Fed will likely keep interest rates high through much of 2023 – and will likely increase rates again in February and June.  Inflation is indeed going down slowly– but not as fast as the markets would like.

Inventory will remain bloated for the first half of 2023, – and supplier relationships will be tested.  Here again, my prior blog notes how much inventory we have in supply chains today – and how certain parties are pushing back their excessive demand forecasts, and punishing their suppliers.   For instance, a large apparel brand requested about 20 of their largest textile mills (many in Pakistan, Singapore, China, and other regions) to travel all the way to San Francisco for a “Vendor Summit”.  They then sequestered each individual in a room, and two individuals came in and told them that they needed to reduce their prices by 20%.  Walmart  is moving their vendors from FOB (Free on Board) to domestic buying, and the shift is happening fast.  Walmart will pay more for domestic sources, but will not be burdened with the inventory and purchasing FOB.  They are also canceling orders, decreasing quantities, and deducting off invoices, which they claim as “chargebacks” for “late deliveries”, from shipments which were received as late as last year.  These kinds of behaviors by buyers will come back to bite them in the future…

Despite having more inventory – we won’t stop having shortages. Unfortunately, a lot of the bloated inventory is stuff that consumers don’t want – or can’t afford.  But that doesn’t mean we will stop having shortages of critical materials.  One reason for this is that the COVID crisis in China is escalating to incredible levels, and that is shutting down a lot of manufacturing hubs.  In particular, a lot of maintenance parts for equipment, replacement parts for appliances, automobiles, and larger (>48 nm) chips are still produced in Asia – and we will continue to see shortages of these component parts.  That means that repair may take longer than you think.  Labor and material shortages for factories are going down – but still are at a much higher rate than they were in 2019.

Mexico will become a destination hub for many companies in the US – but within reason. As I noted in a prior blog, and as discussed in the New York Times today – Mexico is a great option – but the capacity isn’t there yet.  More importantly, the supply chain isn’t there yet!  I spoke to a CPO who mentioned that his CEO was a big proponent of bringing all supply to Mexico – but despite this fact, we are still largely dependent on China for raw materials!  As pointed out in the NY Times – even apparel manufacturing in Mexico is largely dependent on fabric produced entirely in China!  As such, it is unlikely we are going to lose our dependence on Chinese products.  Price is still the determining factor here.  Chinese manufacturing is of such scale, that moving it to the US or Mexico is unlikely.

The US Government will play more of a role in promoting domestic supply chains. Not only did the US government, pass the CHIPS Act – but they are actively promoting the domestic production of semiconductors.  As noted in one of my blogs, however, producing a fab plant is a good step – but the supply chain for chips is still largely in Taiwan.  There is massive flux in the chip industry – which seems to be on a different cycle than most demand cycles.  What was once a one year backlog has shrunk and chips are now readily available – to the point where semiconductor companies are cutting back on capital investment!  This will continue to be a real problem – and I believe we will see “capacity as a service” models begin to emerge in the chip sector – where buyers will reserve capacity based on actual forecasts, not guesses or bets on what they think they will need next year.  This will stabilize production – and lead to improved availability and assurance of supply.

Healthcare supply chains will remain strained. Despite having a lot more PPE in warehouses, hospitals are still struggling with a lot of shortages.  Jim Wilson, an expert in medical intelligence, advocates that hospital monitoring programs is a critical area of government investment.  One area is generic drugs – such as amoxycillin.  We wll have shortages of baby formula as well.  For this reason, I believe the government should be creating incentives to increasingly healthcare supply chain.  To address this issue, one recommendation I am advocating would be to create government industrial policies that are targeted at supporting a domestic “stop gap” manufacturing capability. Secondly, partnerships should be developed with distributors to enable visibility into their inventory systems, and ensure they enter contracts which set aside inventory for government allocation under different conditions of duress.  This will require a set of common data standards and a common architecture to create a dashboard and control tower.  In addition, a multi-agency materials inventory portfolio based on in-depth supply market analysis is needed.  At a minimum, this should include specialists in the following categories:  semiconductors, precious metals, electric vehicle batteries, medical supplies (PPE, gowns, gloves), medical devices, pharmaceuticals, plastics and resins, medical equipment, biologics, healthcare personnel, and respiratory products. This will require team of supply market analysts with special knowledge of these categories, that track the condition of critical supply markets for medical supplies, the supply risks within those markets, and acquisition strategies to manage the risks.  Multi-tier supply chain mapping can provide clues as to critical points of risk that can “shut down” the US healthcare sector, based on multiple forms of risk assessment.

Growth in 2023 will be positive – but lean. As noted in a lecture by the Economist which I attended, the greatest risks looming ahead are concentrated in 2023.  Next year will see some positive growth but only 1.7%, reflecting slowing growth in the US in China and recession in Europe.  Global monetary tightening will take some time to kick in – likely in the second half of 2023.  The US will likely see only 0.5% growth in 2023, the EU 0.4%, which in turn will impact other regions of the world.  China will likely see a modest rebound after the 2022 slump, moving to only 5% growth.  However, there are always risks that will move the needle, including the escalation of the Ukraine war, more COVID-19 variants, spikes in energy prices, and sovereign debt pile-ups.

Government regulation of Artificial Intelligence will increase. As I noted in a blog of a recent SAS INNOVATE conference, Henry Kissinger described AI as the new frontier of arms control during a forum at Washington National Cathedral on Nov. 16. If leading powers don’t find ways to limit AI’s reach, he said, “it is simply a mad race for some catastrophe.”  The former secretary of state cautioned that AI systems could transform warfare just as they have chess or other games of strategy — because they are capable of making moves that no human would consider but that have devastatingly effective consequences.  This is true not just in warfare, but also in supply chains.  As we move towards a digital future where we increasingly will be ceding control to machines who call the shots, not humans, what are the risks of doing so?  Increasingly, more and more data is being stuffed into the cloud, which certainly allows us access to more readily access reams of data which can be processed by algorithms for decision-making.  We have to be able to trust these algorithms to make the right decisions.  But driving towards AI standards to increase trustworthiness is easier said than done.  The UK has also begun pursuing this goal, as has the EU, who are likely to explicitly define AI and how to use it.  The government will begin to mandate a more  comprehensive approach, which spans the entire organization.  Three primary elements determine the fiduciary responsibility for trustworthy AI:  Duty of Care, the Business Judgement rule, and Duty of Compliance Oversight.   These pillars are required to understand the historical biases that so often find their way into AI algorithms, which have created historical injustices and inequities, meaning that the government is surely going to step in.

Electric vehicle parts will remain in short supply. In a recent blog, I noted how there is still a massive shortage of the so-called “green metals” required to meet the burgeoning demand for EV’s. Environmentalists and automotive companies have committed to converting all of their vehicles to electric power.  GM has committed to 30 new electric vehicles by 2025.  Ford is committing to an all-electric vehicle platform with zero emissions by 2035.  But nobody is talking about the supply chain for these vehicles, and the capacity required to build them.  Converting an entire supply base of automotive suppliers, who are all focused on building of combustion engine-powered vehicles, and moving them all to electric vehicles, will be a superhuman feat.  What will happen to those manufacturers that can’t or won’t convert?  They go out of business?  And is there enough capacity to produce the new types of vehicles?  And what raw materials are required to convert to EV in the future?  I don’t think executives have really given any meaningful thought to the answers to these questions yet… I predict a rough road ahead for EV’s.  Perhaps I’m a voice in the wilderness – except maybe for Toyota – they have the same doubts as I do.

Demand for supply chain graduates will go through the roof in the next two years. To summarize – global supply chains remain fragile – and we are in a period where things are starting to change.  Supply chains will look very different in two or three years from what they are today. 

Talk With Taylor

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Carriers, Cross-Docking, Customer Experience, Drayage, EDI, Flatbed, Flatbed Transportation, Fleet, Freight, Freight Brokerage, Freight Technology, Intermodal Transportation, Leadership, LTL, Ominchannel, Operations, Port Services, Processes, Safety, Supply Chain, Supply Chain Management, Sustainability, Taylor Information, Technology, Third Party Logistics, Transloading, Truck Driving

CINCINNATI, Ohio. – MAY, 24th 2022—Taylor Logistics, a third-party logistics solutions provider, announced that it has partnered with project44 the world’s leading Advanced Visibility Platform™ for shippers and logistics service providers. 

Leveraging the power of the project44 cloud-based platform allows Taylor to increase operational efficiencies, reduce costs, improve shipping performance, and deliver an exceptional customer experience. Connected to thousands of carriers worldwide and having comprehensive coverage for all ELD and telematics devices, project44 supports all transportation modes and shipping types. 

“We are excited about our partnership with project44. This allows our customers complete visibility throughout the supply chain that we were missing on the front end,” said Vince Bonhaus, Vice President of Logistics, Taylor Logistics Inc. “project44 was the obvious choice for our growing business.” 

project44 is a Leader among Real-Time Transportation Visibility Providers, according to the Gartner Magic Quadrant. To learn more, visit www.project44.com

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Customer Experience, Drayage, Fleet, Freight, Freight Technology, Leadership, Operations, Processes, Safety, Supply Chain, Supply Chain Management, Sustainability, Taylor Information, Team Taylor, Technology, Third Party Logistics

Happy #EarthDay! As temporary custodians of our planet, we must ensure that future generations will enjoy our earth’s benefits. We believe in positively impacting the environment by implementing new technologies and reducing our emissions. Learn more about Taylor sustainability here: https://taylorlogistics.com/sustainability/

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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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