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Advantages & Disadvantages of Containerized Cargo Shipping

INTRODUCTION

Cargo shipping was first invented in 1931, to deliver goods, commodities, and wares from one place to another.
But later, the American trucking system invented containers for making the process quicker, safer, and secure. These containers are liable to transport goods via road or sea.
Containerized cargo shipping is a process for delivering the freights through non-disposable, reusable, and commercial seized shipping containers. It is considered one of the greatest inventions in the trucking industry. This cargo system can be utilized for achieving long terms benefits.
Where there are advantages of using containers carrying cargo system, then there must be some disadvantages too. Below are highlighted the pros and cons of containerized cargo shipping.

ADVANTAGES

  • Economic Feasibility
  • While dealing with the imports and exports, everyone tries their best to make it economically viable.
    The overall cost of transporting supply via containers is 20-25 times less than the cost of transporting freight through LCL or lose bulk.
    Containerization has reduced the overall transportation cost element for the transportation of goods.
  • Safe & Secure
  • When dealing with the national or international shipping system, no one can bear any comprise on the safety and security of goods.
    Luckily, the contents of the containers are unknown to the people involved in carrying the supply. They cannot see the contents in order to make use of it or to damage it. As all the doors of containers are double locked and checked before they are transported.
    The containers can be only opened at the buying and selling terminals. If someone tries to open it other than these spots, it is easily detectable and perceivable.
    Containers help in less spoilage and minimize loss.
  • Standardized Transportation System
  • The containerized cargo follows the ISO standards i.e., a standard transportation system that can be controlled anywhere around the globe via equipment, terminals and specialized modes of transportation that includes trucks, wagons, ships, and barges.
    Every container consists of a distinct identification number and a code that allows it to be a unique transport unit that can be easily controlled.
  • Speed
  • The freight shipment procedures are rapid, and the turnaround time is quicker than it was ever before. Now the approximate turnaround time is 24 hours, which was 3 weeks previously.
    Due to the fact, the containers carrying cargo are faster. Furthermore, it provides a wide variety of shipping options.
    The velocity of containers carrying ships is more than that of a regular cargo ship and offers a frequency of port calls that allows a continual speed.
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    What is Containerized Cargo ?

    Importance Of Freight Transportation In The Present Era

    One cannot deny the significance of freight transportation in the modern world. This is an efficient means of transportation for valuable goods. Hence, a blessing for all economies and industries.
    Freight transportation helps to transit goods to a place where you can sell them at a better price. Additionally, Freight transportation expands the use of commodities and the labour market.
    90% of the world’s shipments use the method of freight transportation by water. Yet, for transporting cargo between smaller distances, the land routes are often considered a better solution.
    Freight Transportation depends upon the containerized cargo. Let’s dive deeper into understanding how Freight transportation works.

    What Is Containerization?

    A shipment is only a good one when it is damage-free. Yes, the delivery time is another factor that affects the customers’ shopping experience. Yet, if you look at things from a different perspective, you will find that people can overlook a small delay. What people can’t ignore are the damaged goods that they paid a hefty amount for.
    This means the containers used for transportation via trucks need to ensure safety. So, what is containerization? Containerization is a system that ensures packing all goods in their respective containers. Later, we load these containers on trucks/ships. This provides a standardized method of packaging and transportation. Every container has a unique code and identification number.
    Containerized cargo transits a wide range of goods between two places. Such as, commodities, manufactured goods, electronic appliances, automotive vehicles, and their parts. The turnaround time of these shipments is also much reduced compared to conventional means of transportation.
    In a nutshell, containerization provides a movable warehouse to the packaged cargo while being transported to its destination.

    Types Of Containerization

    As we discussed above, every container has specific dimensions and purposes. Some containers are suitable for transporting commodities while some suit manufactured goods better. You can choose from various types of containerization available as per your needs.
    Let’s start with the most commonly seen, general-purpose, or dry containers. These containers have a rigid roof, floor, and walls. These containers are weatherproof and enclosed.
    Second to these are flat-rack containers. You must have seen vehicles loaded on trucks around showrooms. These containers have foldable walls that are convertible to a bed-like structure.
    Another necessary type of container is the open-top container. These containers are significant for the transportation of over-height machines and their parts. These containers come in handy in the industrial and engineering sector most.
    Others include double doors (or tunnel containers), high cube, and open side containers. Two important types are the insulated and iso reefer containers. The importance of insulated and iso reefers in today’s world is notable.
    Before the Covid-19 virus, we used these iso reefer containers for meat, fruits and vegetables. The doctors advised everyone to keep things safe and secure as the pandemic broke. These containers came in handy to transport a large number of vaccines and medicines.

    Conclusion

    Containerized cargo is a necessity when it comes to freight transportation. However, we are constantly introducing new ways and equipment to make the process smoother.

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    The Importance of Climate Control in Warehousing

    The Importance of Climate Control in Warehousing

    Being a large space with an open environment and people along with goods constantly moving about, it is quite natural for the temperature of a warehouse to fluctuate unpredictably. The cool spots located near the loading bay and hot spots located near the restricted air flow shelves, climate control in a warehouse helps in managing the environmental disparity and assuring a moderate temperature through all the operations carried forward. However, a lot of the industries overlook the importance of climate control in a warehouse which results in unexpected expenses incurred later on either as damaged stock or the need to get a climate controlling system installed.

    Why do Warehouses need a Climate Control Storage System?

    There are two major factors that are to be kept under consideration when talking about climate control; temperature of the warehouse and the humidity. One may already be aware of the obvious effects of inconsistent temperature over food and medicine. However, there are a lot of other goods as well that may be damaged if not stored under a controlled climate condition.
    For instance, any metal object may expand or contract when encountered with either hot or cold humidity over and over again, this can also cause damage to the electronic components due to moisture. Henceforth, by neglecting climate control, the products stored in a warehouse may melt, decay or end up developing mold. Furthermore, the workers in a warehouse with no climate controlling system may suffer from a heat stroke or even end up with frost bite.
    So, how do you keep your goods as well as employees safe during the constantly changing temperature? The answer is quite simple! Getting a climate control system installed in your warehouse would help in running your warehouse efficiently through extreme climate conditions.

    Elements of Climate Control in a Warehouse

    There are various techniques that can be employed to stabilize the temperature and humidity of a warehouse. For instance;

    • By planning out the structure of shelves and pallets, the air flow can be managed. Moreover, the sealing strips help a great deal in restricting the air flow entering via door openings.

    • The Dehumidification process can be used to control the humidity that exists in the space which would stop the building up of condensation and moisture in products stored in your warehouse.

    • By making your warehouse completely weatherproof prevents the goods from becoming too dry and add up another climate control measure.

    • In order to make sure the workers in a warehouse are at an optimum temperature along with the goods, portable air conditioning or heating can also be used which would help stabilize the temperature of the warehouse.

    • Microprocessors can be installed in order to ensure a digital method for temperature monitoring and control.

    • In order to be more cautious of any damage that may occur, different methods of signals for temperature shifts like audio or visual alarms can be installed.

    • Any product that is stored on the floor is more likely to lose heat and get damaged, it is always better to use pallets and keep your goods away from direct contact of the ground.

    • Consider installing industrial ceiling fans as they have high volume and low speed, these would help in air circulation as stagnant air condition raises heat.

    These tips and ideas may come in handy when you are planning to run a warehouse and wish to keep your employees, inventory as well as equipment secure in every climate condition. With these methods and elements, you can run your warehouse efficiently and safely without having to face any damage.

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    How Does The Shipping Industry Work?

    The international shipping industry is responsible for 90% of the world’s trade. If there were no shipping, import/export of manufactured and affordable goods, raw materials and intercontinental trade would not be possible. Trade via sea continues to expand across the world, facilitating domestic and global trade of commodities and finished products, while also facilitating manufacturing and delivery of goods to consumers. According to ATA reports, the trucking industry moved 10.23 billion tons of freight in 2020 and generated $732.3 billion in revenue!
    The shipping industry is equipped with a wide variety of commercial transport methods from railcars to “intermodal” container shipping. The industry relies on four major modes of transportation: marine, air, rail, and freight (trucking).

    How Does The Shipping Industry Work?

    To understand how the shipping industry works, it is essential to review how each of the four methods of transportation work individually.

    Marine

    The marine industry includes general cargo ships, tankers, bulk carriers, and container ships. General cargo ships carry a variety of items including materials and goods which are loaded on pallets. The container ships carry stacks of uniform steel containers. This method is known for its efficiency as it allows bulk shippers to convey their commodities, for example, forest products, grain, coal, and iron ore in large amounts. The tankers are also equipped to carry chemicals, crude oil and liquid cargo, such as noncured petroleum products. The marine industry is also cost efficient. According to a survey by the World Shipping Council, a kilogram of coffee can be transported from U.K. to Thailand for as low as $0.15.

    Air

    The commercial air cargo sector included expedited delivery services, for example, FedEx, UPS and DHL. 60% of air cargo is flown from one destination to another through dedicated air freighters, whereas the rest is transported within the lower cargo holds of passenger aircrafts to trade or consumer end points.

    Rail

    In rail transportation the cargo is transported via regional and national rail networks. Rail networks allow for commodities to be transported in bulk, either within secure cars or open railcars. The rail sector plays a pivotal role in intermodal transportation. The containers are specifically designed and transferred from one mode of shipping to another without intervention. For example, a container coming into a port via ship can be transferred to a nearby rail yard car with help from an automated port transfer system. Commercial rail is an asset to one-third of U.S. exports.

    Freight

    Freight includes two major categories: full truckload and less than truckload. Full truckload caters to bulk goods, whereas less than truckload carries goods for small businesses, using only a portion the truck’s capacity. Therefore, reducing costs because businesses only pay for the space needed. According to statistics, the American Trucking Association transports 70% of the total freight tonnage in the U.S., each year. This sector of transportation facilitates the movement of goods from one port to another. The freight industry also plays a pivotal role in enabling domestic commerce.

    The shipping industry has made access to raw material easier and has consequently aided the development of economies. It enables the manufacture of affordable goods and products with the lowest environmental footprint and costs.

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    Key Aspects To Be Considered In A Warehouse Operation

    All You Need To Know About Warehouse Construction

    Warehousing is no more a conventional system, rather, a high-tech evolving system many
    are benefitting from. Many studies show a dramatic incline in the use of warehouses in the
    US. This rise translates to an increase in people’s expectations and competition between
    various businesses. However, all modernization aside, experts suggest that the basics still
    play a vital role in the construction and management of warehouses.
    So, what comes to mind when you think about a warehouse? A large empty room that has
    enough capacity to store goods safely. Indeed, that is a suitable definition for a warehouse,
    however, there’s more to it than just being a sufficient storage space. A warehouse is not
    only about the space, but also the productivity it offers. Does it comply with advanced
    technology? Does it provide optimum conditions for the flow of people and equipment? Will it
    be able to increase employee productivity?
    Designers base the whole warehouse construction process on these aspects. A well-built
    warehouse promotes effective motion of people and cargo. Additionally, it must provide
    enough space for unloading, receiving, packing, and dispatching the cargo. Moreover, it is a
    designer’s job to introduce a layout that won’t require unnecessary movements. No one likes
    to walk through the whole warehouse only to do one task. Lastly, a warehouse construction
    must make it compliant with modern technology tools.

    Six Basic Types Of Warehouse Operations

    Here is a list of the general types of warehouse operations.

  • Receiving:
  • The first operation is receiving. This is the base of all operations. If one doesn’t receive the product properly, all the subsequent operations won’t be efficient.
    Receiving means transfer of responsibility of manufactured goods from businesses to warehouses. Hence, a receiver must know if they have received the right product. If yes, then is the quantity correct? Also, they should know about the quality of the product at the time of receiving in order to avoid any future consequences.
  • Organizing
  • Once, you’ve received the products, now you should organize everything and send it to the place (within the warehouse) where it will be stored.
    Different products require special storage conditions, hence one should choose the place wisely.
  • Storing
  • Next, you store all the products in the chosen place. This is where you need to be extra careful. All the goods should be well protected by taking the right measures, as you pile them up.
  • Picking
  • This is the most costly process of all. Picking means collecting all the products from where they are stored to deliver them to the customers. The more you optimize the picking process, the more you can reduce the cost of overall warehouse operation.
  • Packing
  • Once the goods are picked, they are ready to be packed. The better you do this operation, the faster your service will be. All the shipments must be packed carefully to avoid wrong orders. Also, packing should be as light as possible, to ensure that the order doesn’t weigh much.
  • Dispatching
  • This is the final operation at the warehouse. Once the goods are shipped, they must reach the customer in the quoted time. For this, you need to ensure that the quickest and shortest route is used. Plus, keep a check on orders to ensure they’re delivered to the right people!
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    How To Add Value To Global Supply Chain

    Role Of Supply Chain Management In An Organization

    As you think of the word supply chain management, what is the first thing that comes into
    your mind? A systematic way to control operations, right? A supply chain within an
    organization translates to a systematic way of controlling the entire production process. The
    role of supply chain management in an organization is to monitor the lifecycle of raw
    materials as they enter and leave the organization as manufactured products.
    An effective supply chain management ensures that the company is getting all the raw
    material they require for a smooth manufacturing process. Not only the quality but also the
    quantity of raw material is important. The importance of supply chain management has
    increased a lot, nowadays. Have you noticed how there are different brands offering
    products that use the same material? For example, different manufacturers use cotton to
    make hoodies, and so on. Hence, one needs to ensure that they are getting the right amount
    and quality of raw material at the right time. So, you can say that supply chain management
    is the survival kit for any business in today’s world.

    Value Chain Vs Supply Chain

    Oftentimes, people get confused between a value chain and a supply chain. Therefore, let’s
    dive deeper into understanding what differentiates a value chain from a supply chain.
    The first point to understand value chain vs supply chain is that a supply chain focuses on
    the operations within the company. A value chain takes the pricing side of products into
    observation. A supply chain includes sourcing, procuring, converting, assembling, and
    logistics of raw materials. It starts from finding the best quality raw material at the most
    affordable rates and then acquiring the right amount that satisfies your company’s needs.
    Moreover, it overviews the conversion of raw materials into products, along with assembling
    the products when necessary. Finally, delivering the products to the market; all these
    operations come under supply chain management.
    Value chain involves techniques to increase the value of your manufactured products.
    Basically, the value chain focuses on the profit margin for any organization. To understand
    the value chain in a better way, consider mobile phones. Different companies launch new
    phones with almost the same features, but usually, the pricing is different. Ever wondered
    why? It is because their value chain has optimized over time, and is currently more efficient
    than the previous one.
    Similar is the case with computers and homeware. For a company to have a better value
    chain than others in the market, it needs to create a better connection between consumer
    demand and the company’s production. Plus, the research and innovation part should be
    covered well to keep producing market-competitive products.

    How Does Supply Chain Management Add Value For Customers

    A company owner knows that their supply chain can work wonders for them. The supply
    chain is the game changer of any organization and boost your sales exponentially. No other
    aspect of your company can match the supply chain’s influence on reaching customers,
    cutting retail costs, and enhancing service levels, which means that good supply chain
    management benefits both your customers and your company.
    The answer to how does supply chain management add value for customers is simple. Two
    factors highly affect customer satisfaction; price and delivery. By controlling these two things,
    one can ensure maximum satisfaction of their customers. You can use self-assessment
    metrics for enhancing the value of customers. Questions like, why did a loyal customer leave
    you? Or how many customers do you get daily, and are you managing them properly?
    The consumer anticipates excellent service. They’re paying you money to ensure that they
    get a product on time and in good condition. If an issue arises, they expect your organization
    to be transparent about why it happened. Including what measures can you take to refund
    their loss? Your brand’s reputation is more vulnerable than ever before in today’s
    atmosphere, when a customer may publicly attack your firm on social media.

    How To Add Value To The Supply Chain

    Here are some ways to add value to the global supply chain:

    1. Increase product offerings: you can introduce new ways to sell your products. Ever
      seen the value packets of various sauces? This is an example of increasing the
      product offering. You can expect better sales on such packages.
    2. Enhance customization: needless to say, everyone loves customization these days.
      Even if it is a very small part of the whole product! So, if you have a product where
      you have some margin for customization, use that to attract customers.
    3. Reduce suppliers: the more you reduce the number of suppliers, the easier will it
      become for a customer to reach you directly. The customer will have peace of mind
      regarding quality, delivery time, and pricing if they order directly from you.
    4. Optimize labor cost: as machinery has advanced today, automated processes save a
      lot of time and money. Now, you don’t need hundreds of people to pack products.
      So, if you optimize the products, it will ultimately save a big amount.
    5. Cater new business needs: this includes both your company’s and customer’s needs.
      For example, if a new machine optimizes the processes going on in your company,
      you should ensure you buy it. Plus, catering to your customers’ needs too. For
      example, if you’re a biscuit manufacturer, introducing a new flavor might work well.
    6. Partner-up if necessary! If you feel the need of having a partner for any of the
      operations, ensure to get the best onboard. Many companies partner with different
      marketing companies, while others might have a marketing team within their
      company. So, ensure that you have the right people for all the work that should be
      done. Even if it means to partner up with another company!
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    The three stages of Global Supply Chain

    What is global supply chain?
    The global supply chain is a global network with services of supplying goods. In other words, this supply chain is spread worldwide for delivering their services in different countries almost all around the globe.

    Local vs global supply chain
    The local supply chain serves different cities within the country. Local supply chains work locally in the shape of an organization. And different cities, states, and provinces are part of this organization-based supply chain. Global supply chains are working around the globe providing benefits of reducing labor costs. Here’s a detailed view of global supply chain benefits.


    Why are supply chain management stages important?
    There are both positive and negative aspects to supply chain management. However, it is important for business because it can make customers happy and increase ROI.
    Happy customers = happy business = higher performance.
    A survey was conducted in January 2018 by Tobin Moore. The main purpose of the survey was to understand how customers can become happy. When a customer wants to return something previously purchased, and the return process is handled successfully, the customer will buy something again in the future more than 70% of the time.
    In other words, a smooth process means an effective supply chain. The stages of supply chain management help determine how to communicate with customers and how to get connected to them. If the stages of supply chain management perform well and meet the expectations of the customer, then the customer will be happy. A high order rate is determined by the stages of supply chain management and will have a positive effect on customers’ minds.

    Higher performance = more cost efficiency = higher pressure?
    In the supply chain, “higher performance” is defined as the efficiency with which all processes and people work together to transport goods and services from point A to point B. The stages of supply chain management will put pressure on the team, so the team will do their best because moving services from one place to another can reduce the cost of the product.
    The profit of a business can be measured with the help of cash conversion performance and working capital turnover. When there are improvements in profit, cash management and revenue conversion are also affected. There is no benefit to reducing the cost until the high-quality products are discounted and faster delivery is implemented. You can also use a tool to measure the value of your deliveries.


    Stages of global supply chain

    The global supply chain is part of the worldwide supply of services and different goods. Most of the business that has optimal chain have 15% lower supply chain costs. Similarly, an excellent global supply chain is very effective for all the network and their participants. Another tremendous main benefit of this is better demand fluctuation and management of all the transportation processes.
    1. Supply management
    Supply management is a fundamental stage of the global supply chain. Similarly, supply management is the more effective stage, and a complete isn’t complete without fulfilling this part. This stage is built around internal MRP with supplier and tier is included in it. Most planned and all the vendor interaction through documentation. Seldom is also a part of status reporting. Communication is in this process is complete transactional, including all the other related activities.
    2. Managing the supply chain
    The second stage is related to increasing the scope of the two-tier supplier above. It also increases the curiosity of reporting the status and building interest around it. Similarly, this platform is used for sharing the data and information between different participants and is very complex for interrelationship.
    3. Supply chain integration
    Supply chain integration is a beneficial stage of global supply chain management. It provides benefits for all the members that are part of the worldwide supply chain. Similarly, this stage is elevated supply in a collaboration between all the chain members. And strategic planning and communication are part of this supply chain integration. The date includes all kinds of related information and goes well beyond.


    Conclusion
    You’ve to analyze all three stages of the global chain and notice how all participate deeply in a chain. Nothing is possible without the collaboration of all these steps. The global supply chain is a big failure without completing these three stages.