Consumer Goods Logistics Blog

The industrial real estate market has changed dramatically in the last year. Today, it’s a seller’s market and power users of warehouse space, like large CPG companies, don’t have the same ability they once had to access the space they need at the rates and terms they desire.

These companies need to take a more strategic, long-term approach to their industrial space requirements to make sure they have the space needed to support their companies’ growth requirements.

Manufacturers and retailers who outsource distribution activities to third-party logistics companies (3PLs) understand that there is a certain amount of churn among warehouse workers. But just how much churn is something they should be paying far more attention to. When you work with a 3PL with high warehouse employee turnover, it drags down your business in ways far beyond what you might think.

Despite the global pandemic, Kane Logistics’ operations team has been in major start-up mode for the last year, with several new logistic operations coming on board. All facilities have started successfully and on schedule. But that success is due to more than just having a good project plan. If managing the start-up of a logistics operation is in your future – particularly during the pandemic – here are some keys to success.

The choice and effectiveness of your 3PL relationships have an enormous impact on your company’s profitability and its reputation with your customers. We find that the factors that lead shippers to seek out 3PLs in the first place – things like freight capacity, experience in an industry, expertise with a particular service – often are not the reasons that companies choose and stay with a 3PL provider. It’s more the intangible benefits, beyond service and cost, that make the biggest impression.

In our last article, we looked at what shippers could do to maximize logistics outsourcing benefits. In this article, we’ll focus on the intangible benefits that you should look for to ensure positive, long-term 3PL relationships. Consider asking yourself the following questions in your 3PL evaluation process.

Specific consumer products all look pretty much the same as they roll off the manufacturing line.

But to satisfy the various ways retailers want to sell products and consumers want to receive them, these products are bundled, wrapped, sealed, tied and packed into dozens of different configurations for final sale.

This is called secondary packaging and it’s very expensive for manufacturers to constantly adapt their production lines to create this multitude of packaging configurations. So, they lean on outside resources to streamline packaging.

Back in 2005, the Tyler Texas Area Builders Association built a large home from the ground up in less than 3 hours. At the time, it set a record. Here's the video.  

It was a promotional effort to publicize the Association, but the overarching message was the importance of planning. While the build itself took just 2:52 hours, it was the product of months of meetings – among engineers, architects, builders, landscapers, tradesman, and project planners – to spec out every last aspect of the project. 

We’ve seen no negative impact on KANE customers’ freight during COVID-19 – a great accomplishment that has required a spirited effort by our transportation team. Here are some of the issues we’ve had to face.

During a recent meeting with KANE associates, our long-time business partner, Sam’s Club, reminded the team that they were “the backbone of this economy right now.”

It was a heartfelt comment that cut right to the heart of the matter – without logistics workers, the supply lines for essential goods like food and household staples stop flowing and commerce grinds to a halt.