Rate of Inflation, Supply Chain Costs and Our Response in 2022

By Len Batcha, President and CFO

Technical Transportation, Inc

By now, you’re probably aware of the skyrocketing rate of inflation hitting global economies. But who will end up paying for the rise in costs? The bottom line is that it has trickled down to us as individuals and families, so it is the end consumer who will be burdened to pay for these increases throughout 2022 and most likely beyond. Finding a way to navigate these changes with minimal disruption to your personal finances is a challenge in itself.

Inflation is real, and the current increases are more dire than the general consumer is realizing at the moment. It’s truly a perfect storm of circumstances and government policies that have led us to this situation.

One of the leading factors has been the influx of money into the economy through the U.S. Payment Protection Program (PPP), unemployment compensation and other initiatives that flushed money falsely into the economy and gave consumers and businesses an inflated sense of financial security while increasing the U.S. deficit.

As the markets were flooded with this money, it generated greater consumer demand for products and supplies. Many producers and manufacturers, however, haven’t been able to keep up with this demand due to a lack of resources and labor because of persistent pandemic lock downs all over the world.

In the U.S. supply chain industry, the Great Resignation last year further contributed to bottlenecks as workers opted to stay at home and receive their unemployment compensation rather than taking jobs at strategic ports and other supply chain processing facilities.

So now, as the inflation rate is hitting hard, almost everyone is feeling the financial squeeze. That results in employees and job seekers asking for higher compensation to pay for higher fuel costs, and price increases the highest in over 40 years. And it ultimately means that companies in the supply chain industry must raise prices to stay competitive while trying to achieve profitability.

Getting Granular About Price Increases

We understand there is a lot of fear about price increases among manufacturers and shippers. That’s why, rather than doing blanket price increases across the board, at TechTrans we’re looking at individual clients, down to the product level, to determine if services and rates would justify an increase and which customers/services are already performing at an optimum level.

Our goal is to minimize this burden to our clients as much as possible. By using an analysis tool, we can calculate the best way to determine which fee increases will need to be adjusted, or where we might potentially only raise prices on a case-by-case, client-by-client, and even service-by-service basis.

What we evaluate includes (but is not limited to):

• Fuel costs – What clients are under FSC (Fuel Surcharge) agreements with the standard national rate?
• Divisions within a company – Down to the client/modalities, we look at the historical data, evaluating shipment history and averaging out the gross profit as a whole versus shipment by shipment.
• Service charge increases – We will consider passing on to underperforming clients.
• Clients under contract agreements – Some agreements have built in rates not to exceed a certain % annually. These annual increases are usually maxed at 1-3%.
• Claiming “force majeure” on contracts – In some cases where contractual agreements limit the amount of increase we can pass along, there is an opportunity to claim “force majeure” from the recent pandemic to override those terms and enable a higher increase based on inflation rates for 2022.
• Well-performing clients – These may not see an increase if their gross profit margins are good.

At TechTrans, we don’t want to be just a service provider for our customers. We want to be a value-added partner that has our clients’ best interests at heart. That’s why we’re against blanket price increases for our customers. We’re willing to go the extra mile to analyze each account granularly and help ensure that these challenging times have a minimal effect on our clients’ businesses.

We’re always ready to help you with your supply chain and logistics needs. Reach out today if you’d like to learn more.contact us today.

How to Decide What Intermodal Approach is Best to Transport Your Products

By Len Batcha, President and CFO

Technical Transportation, Inc

The recent supply chain issues have brought global attention to the orchestration of logistics. When shipping runs smoothly, most people don’t notice the processes behind getting their vital goods and equipment. When the system breaks down, even a little, everyone feels it like ripples in the water after casting a stone.

As a logistics company specializing in getting technical, sensitive and bulky equipment safely to its destination on time, supply chain solutions that ensure these outcomes are always the first priority for TechTrans.

Enter intermodal transportation, a system that, while not a recent innovation, continues to be a topic of discussion and popularity as it provides multiple options to logistical kinks globally. Beyond that, it has benefits that translate to outcomes ranging from a better bottom line for companies to a cleaner environment for all.

Basically, intermodal shipping refers to loading goods into containers that can then be smoothly transitioned between various transportation modes. Air, boats, trains and trucks can all easily accommodate standardized shipping containers.

State of Intermodal Logistics Today

According to ResearchAndMarkets.com, the intermodal freight transportation market is expected to register a CAGR of 8.27% between 2020 and 2025. As companies evaluate new ways to reduce freight costs and their carbon footprint, alternative transportation mode options should be considered when moving freight long distances.

TechTrans’ use of domestic intermodal transportation systems means more efficient delivery and a better bottom line for our customers, as we can plan and smoothly adjust how an item moves through the transportation network to suit scheduling and budget needs in a variety of ways. This process also translates to better protection of the goods we ship, regardless of distance and transitions in the network.

The combination of efficiency and safeguarding is imperative when it comes to vital and sensitive medical equipment arriving at its destination on time and intact, for example.

As a product moves through the transportation supply chain network, it stays in its original container. The individual transporters don’t need to handle the product itself, which can be loaded directly into the container by the manufacturer.

Once a product is securely packed into the container, it may then be transported on a ship, plane, truck or by rail without being functionally jostled or moved until it reaches its final destination.

Things to Consider for Intermodal Shipping

There are pros and cons to sending an intermodal container through various branches of the network. These include:

• Ground/Truck: This is an efficient, flexible mode of transport, and transportation lead time can be predicted and calculated based on mileage and the availability of equipment and drivers. Trucks can be stopped or rerouted easily if demand or conditions change. Trucks and drivers are generally part of any supply chain network and are usually employed on the front end. They load and initially transport an item to a port or hub; and on the delivery end of the chain, retrieve the container from a local hub and ensure it reaches its final destination.
  • Pros: More cost-effective than air. Better transit time than rail or ship. Can reach destinations that are inaccessible to other carrier types.
  • Cons: Longer transit time than air.
• Rail: Universal containers can be easily transitioned to rail service and can cover the distance efficiently. A train has a higher capacity to transport multiple containers, making it more environmentally friendly than truck transport.
  • Pros: Most cost-effective method if speed isn’t the top priority.
  • Cons: Longer transit times due to train schedules and stops.
• Air: Larger airplanes, including some passenger flights, routinely accommodate intermodal transport containers, and can leapfrog over other transport methods. However, space and weight limits make this a premium option.
  • Pros: Fastest transit times, making same-day or next-day delivery options more feasible.
  • Cons: Container sizes are restricted according to airplane capacity, which means it’s notas dimensionally friendly an option as ship, truck, or rail. Tends to be the costliest method of transport.

Deciding when to utilize each of these methods depends primarily on the customer’s needs. If we need to prioritize cost savings over speed, we might forego air transport in favor of slower but more efficient modes like rail and truck. If there’s a narrow window to get an item to its destination, we’ll prioritize speed.

If you have any questions on intermodal transportation, and which option might be best for you, contact us today.

Supply Chain Technology Trends That Will Grow This Year

By Len Batcha, President and CFO

Technical Transportation, Inc

While there is still so much unknown about supply chain shortages and delays in 2022, we are all hopeful this year will mark the end of the COVID-19 pandemic and a switch from merely surviving to thriving for individuals and companies around the world. We also believe this year will mark the continued advancement of several supply chain technology trends that will shape our industry for years to come.

The supply chain and logistics services require organizations to make sure they meet customer deadlines while being compliant with Quality and KPI (Key Performance Indicators) expectations, through automation technology advances that assist employees make operations processes run more efficiently, while allowing stakeholders better visibility into product movement and availability.

There are three supply chain technology areas where we expect to see significant improvement and growth this year.

Automation/Data Analytics

Automation and data analytics have made great strides in the past few years. Although there have been recent supply chain bottlenecks and delays across the globe, those setbacks have actually given companies more time to test automation technologies so they will be prepared for peak seasons as things open up fully this year (we hope!).

That said, we believe automation and data analytics will continue to be huge players in the supply chain technology conversation this year and in the years ahead.

By automating and digitizing supply chain processes, companies can achieve levels of efficiency they haven’t experienced before. Similarly, by using data analytics to gain better insight into the data that is inherent in each company, management can make better, more informed decisions. We also believe that machine learning, artificial intelligence (AI) and augmented reality (AR) solutions will continue to emerge as our industry becomes more data-driven and automated.

Mobility

Whether you’re delivering to businesses or consumers, the final mile has become more important than ever, and supporting technologies will continue to grow this year. Namely, mobile- and browser-based tracking solutions will become even more mainstream and ubiquitous if they haven’t already.

Thanks to big-box ecommerce retailers such as Amazon, Walmart and others, both consumer and business buyers have come to demand a higher level of communication and visibility for each of their product deliveries. This trend will continue this year and beyond to become a standard part of doing business.

Secure access to final mile information via mobile apps or mobile-responsive website portals benefits customers and supply chain companies alike. The information should be easily accessible via order number or PO number and associated tracking numbers and should include relevant delivery details for all products in transit. In addition, relevant contact information should be made readily available should the customer have any questions or issues.

GPS/RFID Tracking

For high-end, mission-critical technology, equipment and other items, supply chain companies can go a step further and track products with RFID chips and GPS as the technology becomes more affordable. This is particularly helpful for items that are being shipped internationally by air, land or sea.

Given the recent supply chain struggles, particularly with issues at U.S. ports on the West Coast, we believe this technology will receive a boost in 2022 as more companies (and even consumers) will want more precise information on the status of their big-ticket items.

While it may not make fiscal sense to track every single item in every situation, supply chain companies will likely start using GPS and RFID tags to track pallets or even containers. Logistics managers and recipients alike will be able to map out exactly where their products are in the world and give more accurate arrival and delivery information.

If you want to learn more about how supply chain technology can benefit your operations, feel free to contact us today.

Supply Chain and Logistics Trends Heading Into 2022

By Len Batcha, President and CFO

Technical Transportation, Inc

The year 2021 has certainly been dynamic and has no doubt been shaped by the fallout from the COVID-19 pandemic. From the economic strains caused by 2020’s lockdowns to the supply chain issues and port backlogs, the year has had its share of challenges.

Yet as we close out the year and start 2022, we look ahead optimistically, and hope that we – as an industry, as a society and as a global economy – will be better equipped to navigate any new developments or changes that may emerge in the coming months.

From where we sit right now, we see several primary trends emerging as we ring in the new year.

Supply chain issues at ports will improve

For the better part of the year, we’ve all seen images of the lines of container ships anchored off the West Coast, waiting for their chance to unload their goods. A lack of dockworkers and truck drivers – due to a range of issues stemming from COVID-19 mitigation measures and government stimulus – led to an unprecedented backlog.

As of today, we believe this backlog is beginning to improve and will continue to be resolved in the first half of 2022. In recent weeks, containers have been processed more efficiently and are moving through, and away from, the ports to their intended destinations.

This is great news as we head into the holiday shopping season, especially since many consumers and retailers kicked off Black Friday and Cyber Monday sales weeks in advance, anticipating potential supply chain delays and product availability issues.

The economy is making a rebound

Thankfully, the U.S. economy continues its v-shaped recovery following the COVID crash of 2020. Right now, it appears we’re in the midst of a sustained rebound, one that is even stronger than we anticipated.

Consumer spending is doing quite well, and in B2B vertical markets, we’re seeing lots of purchasing in industries such as healthcare, cash automation and retail technology.

In our part of the supply chain and logistics industry – we deal with a lot of technology and heavy equipment product manufacturers – we’re noticing a steady rise in requests for our transportation, delivery, white-glove and demo-move services. Given current indicators, we expect this reboot to continue well into next year.

Domestic Manufacturing/Warehousing to Increase Again?

The recent breakdown in U.S. supply chains has opened the eyes of many manufacturers, and many companies are adjusting their infrastructure to make sure they’re not caught off guard again down the road.

We’ve already seen manufacturers in some industries announce new factories and facilities domestically, and we think that trend may continue. We also think manufacturers may modify or shift away from JIT (Just in Time) and Six Sigma methodologies and choose to keep min/max levels of inventory on-hand in state-side warehouses to minimize future shortages like the ones we are now seeing.

At TechTrans, we’re experiencing a move towards more hub warehousing strategies by our clients in regional warehouses across the country that then feed to localized distribution centers for speedy delivery when products are ordered.

Recruiting will be important in 2022

This year’s supply chain issues were due in part to “The Great Resignation,” where many workers chose to stay at home due to bountiful stimulus checks provided by the U.S. government.

We believe this Great Resignation is coming to an end because the stimulus money is now gone from several large states, and people will be forced back to work. This alone will not solve the industry’s problem, however.

For many people, their approach to work has changed, and they want to (continue to) work from home. The supply chain industry, though, is a hands-on field that requires the physical presence of workers to get the job done.

Therefore, supply chain and logistics companies will need to consider this in their compensation packages to attract the best talent. That said, for those workers who still want to compete in a free market society, this is a great time to participate and to seize the opportunities available.

While we don’t hold a crystal ball and can’t always predict the future, by reading the signs of the times, we do believe that 2022 holds the potential to be a better year as we continue to rebound and emerge from the past two years of the pandemic. We wish you a happy holiday season ahead and a prosperous new year.

What Exactly is White Glove Delivery?

By Louis Black, VP National Accounts

Technical Transportation, Inc

We use the term “white glove delivery” a lot in our industry, but what does it really mean to be able to offer this service? Truth be told, though there are a lot of definitions provided to the term, there’s no standard definition of it in the logistics space. It has a lot of different meanings and varies from place to place and company to company.

For some logistics providers, it’s simply means dropping off an item on your porch or loading dock. For others, it can be a much more comprehensive and careful process.

However 3PLs are defining it, most manufacturers today—especially those producing higher-end, technologically intricate, heavy weight or delicate equipment—expect more from white glove delivery. These companies will likely expect a more thorough approach to this service that ensures their products are delivered to end-users at their location of choice, in pristine condition and operationally functional, where relevant.

Exact specifics may still vary on a case-by-case basis, however, manufacturers who require more care for their product should, at a minimum, look for providers who can offer:

• Expert packing and crating that caters to the product’s needs and specifications
• Transportation in a suitable box truck (or larger) with a working lift gate
• A multi-person uniformed delivery crew with a professional appearance
• Inside delivery with specialty handling, using the right tools that protect the product and delivery personnel
• Unpacking and debris removal from site, leaving no messes
• Product setup and installation to ensure it is at the proper place and ready for the end-user to operate
• Product training, if needed, so end-users understand the product’s basic functions

An ideal white glove delivery partner will work with product manufacturers and end-users ahead of deliveries to create customized delivery plans that include site surveys as well as communication of expectations and deadlines/delivery times between all parties. Part of that communication should include tracking programs that can be monitored by everyone involved.

There should also be special considerations during this time of pandemic, including necessary personal protective equipment (PPE) for delivery teams and other protocols dependent upon the delivery setting. For example, a hospital, lab or other healthcare environment will likely have heightened requirements and restrictions for delivery personnel, and end-consumers may not want delivery teams in their homes without protective gear.

The ideal partner should also have additional expertise and services on hand for products or circumstances that require specialized help. This could include:

• Merge-in-transit services
• Product assembly and testing
• Regulatory compliance for the equipment
• Deliveries that meet specific date and time criteria
• Direct assistance from engineers and field technicians
• Reverse logistics including equipment destruction and decontamination

If want to learn more about white glove delivery services and what a customized plan looks like for your organization, feel free to contact us today.

Coordinating Efficient Equipment Swap-Outs in Today’s Supply Chain Environment

By Phil Burnette, Vice President-National Account Sales

Technical Transportation, Inc

To say that today’s supply chain environment is challenging is an understatement, and it’s centered largely around labor and supply availability, versus lack of demand.

Before the COVID-19 pandemic, there was already an ongoing truck driver shortage, but that has now been compounded by a broad-reaching labor crisis across many critical positions, including dock workers and other warehouse personnel.

This is due in large part to the pandemic itself, stiffening public health protocols and economic stimulus money that is keeping people home. It has left many manufacturers and logistics companies scrambling to get their products where they need to go in a timely manner.

Take for example a medical refrigerator replacement project that we’re conducting this fall for a major pharmacy chain. Because of COVID-19, many pharmacies like our client require more cold storage capacity, so they’ve turned to us to help them manage an efficient swap-out at more than 3,000 locations nationwide between now and Thanksgiving as their legacy equipment reaches the end of its lifecycle.

These types of projects, along with others involving complex and heavy-weight equipment, are often intensified by a number of variables requiring multi-step logistics coordination and fulfillment. It also highlights what manufacturers today should consider as they navigate this current supply chain environment. Following are some top issues to keep in mind.

The Need for a Single-Source Partner

Supply chains naturally have a lot of moving parts, and that has only become more complicated in the past year. Now, more than ever, manufacturers should consider partnering with a single-source logistics partner who can manage the entire supply chain on your behalf and leverage their contacts and relationships to help you reduce risk and increase efficiency.

More Advanced Pre-Planning

More pre-project planning is necessary today for manufacturers and their supply chain teams so they can find the most efficient way to do swap outs or upgrades in a single trip—especially given the lack of manpower available right now.

The inability to remove and dispose of old systems at the time of delivery and installation of the new units creates the need for a second trip to the site. This reduces the number of events that can be performed due to the lack of qualified labor resources.

Pre-planning teams also need to evaluate and consider special logistics and delivery requirements at each location.

Attention to Detail

Companies need to make sure their “i’s” are dotted and their “t’s” are crossed before any swap out or rollout begins. You need to have a detailed and customized supply chain plan in place to reduce errors and maximize efficiency.

One specific area to consider, if you’re disposing of old products during a swap out, is that regulatory agencies in some industries require proof of destruction and specific disposal processes due to the nature of the products handled. A valued partner will have the expertise to ensure these products are properly disposed of and will offer thorough documentation of their processes.

In addition, effective top-to-bottom communications is essential for all parties and stakeholders from the beginning. In the example of our pharmacy project above, our client did not efficiently communicate the message about the project to their local pharmacy personnel. This caused massive delays as we began the rollout.

Localized Supply Chain Operations

When rolling out new products, the ability to stage locally in temporary, flexible warehousing locations may help you attain new efficiencies and minimize the effects of the current labor shortage while reducing transportation costs.

For end-of-life products, by working with a logistics partner who has local resources, you can eliminate the expense of returning products to the manufacturing facility. In fact, on average, manufacturers can realize a 33% savings by disposing of products in the field instead of shipping those products back to their headquarters for disposal.

If you need help navigating today’s supply chain challenges, we invite you to contact us today with your questions.

Home-based Healthcare Care Growth Spurs Need for DME Logistics

By Tom Chick, Vice President National Accounts

Technical Transportation, Inc

Sparked by an aging population and fueled by the COVID-19 pandemic, the need for at-home healthcare is increasing across the United States. With this trend comes the need for more durable medical equipment (DME) and other medical devices inside the home – and efficient logistics services to deliver and install that equipment.

A recent Forbes article quotes several studies and sources detailing this trend, saying, “10,000 Baby Boomers turn 65 years old every day, and by 2030, 18% of the U.S. population will be age 65 or older (compared to 13% today). This will create a growing appetite for solutions that enable older adults to age in place.”

Modern Durable Medical Equipment

DME is typically found in home healthcare settings and typically includes hospital beds, canes, walkers and other mobility solutions to assist with at-home care. As technology evolves, more complex equipment such as kidney dialysis machines are making their way into home care as well.

DME is typically found in home healthcare settings and typically includes hospital beds, canes, walkers and other mobility solutions to assist with at-home care. As technology evolves, more complex equipment such as kidney dialysis machines are making their way into home care as well.

Thus, the need for specialized logistics services and expertise comes into play, as this expensive equipment will require enhanced care, handling and setup to function properly in varied settings. Even hospital beds today require more careful logistics than they have in the past.

Providing Specialized Medical Logistics

For medical device and DME manufacturers and providers, getting this equipment into homes, especially in rural or hard-to-reach areas, can be challenging and may require specialized logistics and supply chain help. These manufacturers should consider third- party logistics (3PL) providers that:

• Are experienced in the healthcare industry. Your 3PL should understand the intricacies of working in various types of healthcare environments. This will reduce any learning curves and potential mistakes that could be both inconvenient and costly.
• Have a higher skillset and more professionalism than a general labor force. Especially with concerns around COVID-19, having a professional, uniformed delivery team can make a big difference in customer comfort and confidence. This can also be a competitive advantage for companies looking to differentiate themselves with the end consumer.
• Provide a good customer experience and satisfaction. Field teams should have full understanding of the DME or medical devices being delivered, and be able to answer the end-user’s questions at any and every stage of the delivery and setup process.
• Have complete US coverage in their delivery and setup services. More rural or outlying communities will be the ones most likely to require DME and home health equipment, compared to consumers who live closer to more populated areas that have widespread medical facilities and services.
• Manage inventory reconciliation and returns. Teams that can offer an organized and efficient process for returns or account reconciliations are a value-add for manufacturers looking to create an excellent experience for the end user.
• Incorporate a spare parts program that has a nationwide reach. Having local, expedited access to repair parts for home-based equipment adds another layer of customer service to a manufacturer’s program. As part of this program, an ideal logistics partner would procure and manage a parts storage location in a strategic location to hold spare replacement parts, special sub-assemblies, hardware kits and critical tools for fast deployment.

If you’re a DME or medical device manufacturer looking to serve home-based healthcare environments, we can help you create a logistics plan to make it happen efficiently. Contact us today.

Need for Demo Move Services Increasing as Pandemic Wanes

By Louis Black – VP of National Accounts

and Josh Duchniak – National Accounts

Technical Transportation, Inc

For manufacturers looking to get the most ROI from their investment in a logistics program, finding the right third-party logistics provider (3PL) is more than just choosing based on price. It’s about finding a true partner that can bring value-added services to the supply chain.

While some companies may choose to manage their demo logistics internally – an effort usually lead by their sales teams – there are multiple benefits to outsourcing this function. The primary advantage is the ability to free up your sales team to focus more on closing deals rather than unpacking, assembling and testing demo equipment prior to each sales call or trade show.

Outsourcing also puts the demo move capability back into the hands of the manufacturers’ asset management team, which can save time and money while minimizing mistakes and losses. It also gives manufacturers better inventory control of their products through proper tracking of each product in the field.

The need for outside help is especially important if you have to move large, high-value or highly sensitive equipment. A quality demo move partner should:

• Know your industry – A good first impression is everything, even when a prospect “meets” your product for the first time. A logistics partner that understands your industry and the nuanced expectations of your potential customers can help your sales team set the stage for success.
• Know your companyYour partner must be willing to learn the ins-and-outs of your equipment and become a de facto expert on your products, your company and your culture so they become knowledgeable brand ambassadors who can help answer any technical questions if ever called upon, even during the demo set up and takedown.
• Be experienced with demo moves – You want someone who has done this before and can create a customized logistics plan that ensures your demo products are smartly packaged, safely moved and arrive at their destinations in pristine condition. The provider should also be able to efficiently serve your sales territories and easily adapt to changing conditions or a prospect’s needs.
• Customize the program to you – No two demo moves are alike, so having a team that can create a customized program to meet the specific needs of your products and your customers is a must. This includes specialty packaging, coordinated transit times with field team arrivals, after-hours sets ups and customized reporting.
• Protect your equipment – You want your equipment to be in its best condition when performing at a demo. Having a team that can provide multiple strategic warehouse locations can prove vital for managing unit utilization, avoiding equipment wear and tear, and controlling the amount of demo assets you have in the field. This also allows for equipment repairs at strategic locations, minimized transit times, spare critical parts storage, and most importantly, inventory management reporting.
• Excel in the final mile – Your partner’s knowledge of your company and products should shine through in the final mile. In addition to white glove delivery, your 3PL should be able to arrive at the specified time to expertly assemble, set up and test your demo equipment to full working order to ensure optimal performance in front of your potential customers.

Do you want to learn more about improving the transportation and setup of your demo equipment? Contact us today.

The Profile of a Value-Added Logistics Provider

By Len Batcha – CFO/President

Technical Transportation, Inc

For manufacturers looking to get the most ROI from their investment in a logistics program, finding the right third-party logistics provider (3PL) is more than just choosing based on price. It’s about finding a true partner that can bring value-added services to the supply chain.

So what should you look for beyond price? When considering your options, there are several criteria to consider that will elevate the typical transport/delivery model that some providers offer. Below are some of the additional criteria you should look for in order to get the best value for your investment.

A Single-Source Provider

There’s no need for you to juggle and manage all the moving parts of your supply chain. The right 3PL partner will ideally be a one-stop, single-source provider for you. They should be able to help you consolidate vendor activities and manage all facets for you, creating a network of partners that they oversee to get the job done without unnecessary coordination on your part.

In addition, with a single contact for all of your logistics needs improves efficiencies for you by being your interface for multiple activities. This dedicated team or individual would intimately get to know your company’s product and processes while providing concierge-like services, assisting in achieving your supply chain goals. They should be your go-to resource and an extension of your internal team.

Managing the operational side of your logistics, the right partner for you will also handle the administrative side of logistics, and simplify any scheduling, contracting and billing so you only have to deal with a single invoice.

Will Be an Expert on You

If your logistics provider is not willing to learn and understand the required processes and nuances of your products to minimize issues, then they’re not the partner for you.

Your logistics partner should also be a seamless extension of your brand. That means they must be eagerly willing to learn about your company’s values, culture and expectations. As your brand ambassador, they should then deliver upon those values with a high level of customer service by seeing each opportunity through until it meets the end customer’s ultimate satisfaction.

Delivering specialized equipment requires skill, experience and product knowledge. The ideal partner would have a fully scalable, in-house training program to certify that their service teams can properly handle your equipment.

A good training program assures that your logistics provider’s field service and delivery technicians understand your process expectations and how to best represent your brand to your customers. This includes complying with your procedures; understanding proper equipment handling; maintaining consistency for all deliveries; and meeting quality control and assurance standards.

The best training programs should enhance customer satisfaction while minimizing associated costs and include:

• Remote learning capabilities
• Video courses
• Written instructions and reference documentation
• Online testing
• Proof and certification of completion

Goes the Extra Mile

Sometimes typical delivery and transportation services aren’t enough, especially in the realm of highly complex equipment where even a minor mishap can have major consequences.

In addition to understanding the intricacies of your products, your provider should also be able to create customized procedures that will serve the best interests of you, your products and your customers. Outsourced teams must also be nimble in the field to expertly handle any unexpected complications that may arise anywhere in the supply chain.

That provider of choice should have the capability to not only transport and deliver your products, but expertly set up and install them to full working capacity. At the end of the process, your customer should be able to use the product as fully intended. A partner whose field services teams can do initial installations frees up your internal field service team for activities that are more profitable or revenue-generating.

In addition, real-time tracking and confirmation of where your product is at any moment has become an expectation for most people today. Your provider should have a robust IT infrastructure in place that makes it possible to track your shipment at any time, and also receive real-time confirmation–with signature and photo evidence–of the successful delivery and installation of your products.

If you are looking for a 3PL partner and need help determining the right fit for your company, then contact us today and we’d be happy to assist.

In-Depth 3PL Training and Certification is Key to Successful Product Delivery and Installations

By John Cox – National Accounts

Technical Transportation, Inc

For manufacturers, it goes without saying that the proper delivery, installation and setup of your products at a client’s site is not only vital for customer satisfaction, but also for managing the total cost of install. A high successful “first-time install” rate reduces additional field services costs you could incur to correct any processes not performed properly at time of delivery and installation.

Understanding this concept and successfully achieving it, however, are two different things. While you may consider engaging a 3PL or other independent service provider to outsource these functions, you’ll first want to ensure that they have comprehensive training and certification programs developed and actively employed for anyone who handles your products.

Outsourcing to a well-trained and knowledgeable partner should tangibly improve your first-time install success rate. This can ultimately improve the utilization rate of your internal field service engineers by enabling them to focus on revenue-generating activities. A high first-time install success rate can also reduce the amount of administrative time required for placement of an order by preventing unneeded and costly follow up from a delivery/installation issue.

So how do you know that your logistics partner’s training program is compliant? Here are some essentials to look for:

• An online / virtual training and certification platform. A comprehensive online learning portal puts instruction and certification courses into a format that any authorized personnel can access with internet availability at any time and from any location. The COVID-19 pandemic transformed this capability from a “best practice” a year ago to a “must have” requirement today. This means you should expect the teams you employ in the field to become the product experts you need to get the job done effectively the first time.A quality online learning portal will feature a range of multimedia options, including training videos, written instructions, product documentation, online testing, and more.
• Comprehensive training modules that leave no room for error. When your partners complete their training, there should be no reason for “guesswork” on their requirements or interaction with the customer. This ensures they execute the job correctly the first time. In addition to thoroughly understanding your products, they should also understand all the potential downstream touchpoints at the place of installation (i.e. health monitors in a hospital setting) and be able to adapt to unforeseen circumstances. Your partner should have a clear understanding of what simple troubleshooting is expected, or when you should be notified of an issue at the customer site that is not resolvable virtually.
• Input required from the Subject Matter Expert up front. Any good training program requires the manufacturer’s/shippers input in the creation of the Scope Of Work (SOW) prior to product launch to ensure that accurate information and instructions are being communicated to the teams that will be performing these services. It will require a time investment upfront, but it pays off significantly in the medium- to long-term for the sales and service organizations.
• A transparent operation. The online learning portal should not only include the training modules but should also be able to provide records that verify results from tests and certifications received for each of your logistics partner’s employees or agents. It also offers an easy system to prove compliance to any industry regulations, as needed.
• A team with flexibility in the field. Your partner’s training and certification system and processes should be able to adapt to any changes in products and/or end-customer requirements. Their online learning portal should also be able to effectively communicate any updates to field agents and drivers and prompt them for additional training as needed.Most importantly, the teams acting on your behalf should be able to learn from any mistakes the first time. Your partner’s ability to implement changes quickly in the field should be noted as vital to the health and success of the training program.

If you’re looking for a supply chain and logistics partner that has an established training and certification process in place, get in touch to find out more. Contact us today.