Strategies for Reducing Logistics Costs During the COVID-19 Era

By Sean Horner,

VP Operations

Technical Transportation, Inc

The quarantines and stay-at-home mandates precipitating from the COVID-19 pandemic are causing hardships for many companies around the world. And the logistics industry is certainly not immune.

While providers that serve the food and medical sectors, as well as other essential industries, remain relatively active, other sectors have seen their supply chain operations grind to a near standstill.

So as companies are looking for ways to trim logistics costs, at least temporarily, we’d like to share some ideas that might help.

Stock up on fuel while prices are low

The reduced demand for fuel is a byproduct of the stay-at-home mandates, and combined with international oil price disputes, has led to some of the lowest gas and diesel prices in years.

For those logistics providers that keep a fuel supply at their terminals, now may be the time to look for deals to replenish your stocks while prices remain low.

There’s no set timetable for a return to higher prices, but as of this writing, WTI crude is already trending higher off of its lows in April, which means fuel prices may increase more as well.

Use this time to plan for the long term

While activity is lower for many logistics companies, it’s expected that things will bounce back later in the year. The main question is, how quickly it will happen.

What you don’t want is to be caught off guard by sudden, dramatic increases in demand as the economy normalizes, which often results in higher operational expenditures. For this reason, now is the time to begin thinking about what you can do to prepare yourself to meet customer expectations, and perhaps create a competitive advantage.

Take advantage and pre-position products now

Part of that long-term planning could be pre-positioning products in strategic locations that are near your customer base. This will help you respond quickly to new orders as demand begins to ramp up again, and it will help improve customer satisfaction through faster delivery when that time comes.

As you pre-position, consider using cheaper transportation methods to move items. For example, if you traditionally use air freight, consider ground or rail transportation in the interim. The current downtime may give you the lead time needed to use these less expensive transportation methods, thus saving you money in the long run.

And if you don’t have warehouse space in a targeted area, consider temporary, flexible warehousing options offered by some providers. You’ll only need to purchase the amount of space you require, and then scale up or down as needed. This could give you a tactical advantage over the competition as the economy bounces back.

This is a tough time for many, but if you take some prudent steps now, you can come out ahead on the other side.

Providing Essential Services During These Unique Times

By Len Batcha,

President

Technical Transportation, Inc

The coronavirus, or COVID-19, has been one of the biggest disruptors the world has seen in some time. Just weeks ago, the U.S. economy was running full steam ahead, and as of this writing, we’re virtually shut down. It’s an unprecedented situation, albeit a temporary one, but it still hurts.

For the logistics industry, though, this creates an opportunity for companies to shine excel during this dark hour. As an essential business sector, defined by the Department of Homeland Security, we’re charged with keeping the supply chain running for other vital sectors, including the healthcare and food industries.

That means that we keep working. Not just for ourselves and for our employment, but by knowing there is something bigger at stake: the lives of the most vulnerable. Being an essential business means our industry is in a position to serve a higher purpose for our fellow man in this time of need and uncertainty.

Whether it’s sending critical healthcare supplies such as beds, ventilators, testing equipment and personal protective equipment (PPE) to the hardest-hit areas, or by making sure each grocery store in each community is well-stocked to serve its local citizens, we are called on as an industry to meet these unique and timely challenges with prudence and with courage.

We are fully operational at TechTrans, and we’re helping companies in other essential business sectors respond to their urgent needs. Our internal COVID-19 Task Team is ensuring that our entire network is following CDC recommendations to reduce the chances of spreading this contagious virus at our carrier locations, our customers’ locations, and your customers’ locations.

We certainly look forward to the day this crisis has passed — and it will pass — so we can get back to more normal business activities and purpose.

But in the meantime, we’re here to help you. And we’ll do it in a way that is safe for you, your customers, our employees and our collective families.

Together, we’ll get through this. As an industry, and as a nation.

Godspeed.

Reducing Costs When Relocating Equipment and Technology

By Phil Burnett,

Vice President, National Account Sales

Technical Transportation, Inc

When organizations and businesses purchase big equipment and technology (think complex equipment such as diagnostic analyzers laboratory refrigerators & freezers, and CT scanners), that equipment often means a significant capital expense, sometimes in the millions of dollars. In other cases, the machine itself may just be on lease from the manufacturer, with the consumable/dispensable products being the focus of revenue for the retailer or end establishment (examples being pharmaceutical drug dispensing machines, or retail-front coin & cash recyclers, POS kiosks, and vending machines).

Given the high price tag of the equipment in either scenario, many companies who bought or own those machines naturally try to extend the use and value of that equipment for as long as possible. This could mean that there may come a time when the equipment must be moved for repurposing, everything will be done to carefully and safely relocate the equipment rather than scrapping it altogether and buying the latest-and-greatest.

For example, in a healthcare setting a hospital lab may choose to move its equipment from one building to another as part of an expansion. Or a clinic might be opening a satellite office and must relocate certain machines to the new location, to make room for newer equipment coming in.

Relocation may also make sense in a leasing situation, where the machine is on loan by a retail or other similar establishment; since the manufacturer still owns that machine, in most cases they will want to extend the life of the machine for as long as possible, and will look to relocate the equipment — rather than destroy it — if the retailer wants to make room for a newer model or other equipment.

Unfortunately, moving this big equipment from Point A to Point B is not as simple as moving furniture from one house to another. It requires specialists for each phase of the move, including disassembly, packaging, white glove delivery, set-up and even software installation / calibration.

It’s a situation that can be costly – and unnecessarily so – if not handled properly.

Instead of finding different specialists to handle each part of the project, or using a manufacturer’s internal resources to handle this non-revenue task, it is often optimal to find a logistics partner that could efficiently and cost-effectively take that burden off the manufacturer’s hands.

Finding a single-source provider with a turnkey relocation solution is important if looking to reduce costs, because they likely have the processes and partnerships already in place to get the job done efficiently.

And if at all possible, you need to find a logistics partner that has experience in your industry, and preferably with the type of products you provide. This will help reduce the learning curve and offer another layer of quality assurance to the process.

Have Questions?

At TechTrans, we have the expertise to offer turnkey relocation services for multiple industries. If you have questions about your equipment’s relocation needs, feel free to contact us today.

Supply Chain Outlook for 2020

By Len Batcha,

President

Technical Transportation, Inc

Each year brings new opportunities and new challenges, and 2020 is no different. So as we start this new decade, below are some trends we can likely expect to see this year.

1. The U.S. economy remains in the “Goldilocks” zone.

This year kicks in with a healthy economy, and there are some great economic indicators that show that the gross domestic product is going to be somewhere in the 2 to 3% range, which is — as they say — “just right.” However, economies in other parts of the world face more uncertainty, which can reverberate back to the U.S., and we need to keep watch for that.

Part of that uncertainty revolves around tariffs and how they’ll play out this year. Many large businesses, including some top manufacturers and shipping companies, are holding off on large capital expenditures while waiting to see how this is all going to shake out.

Other events that will play a role in the economic outlook include the U.S. presidential election and the emerging coronavirus outbreak in China, which has temporarily halted a lot of manufacturing in that country as of this writing. Those two wildcards have the potential to make big impacts this year.

2. Technology Takes Stage

For the past few years, electronic logging devices (ELDs) were the buzz of the supply chain industry, and as of December, all carriers were required to have them implemented in all of their trucks.

Sadly, these regulations bankrupted some smaller providers in 2019 because many were unable to increase their rates enough to offset the capital equipment costs, in addition to other factors. That said, we believe competitive pricing will come back into play in the transportation industry this year.

Technology-wise, we also believe that the large transportation companies will look to make a bigger investment in electric vehicles to replace their aging fleets, and to reduce their carbon footprints. While technologies like driverless vehicles are still years away from being in the mainstream (if at all), advances in smart car technologies will be changing the landscape over the next decade.

Manufacturers could take these tasks on themselves, however, it will likely be more efficient and cost-effective to engage with a logistics partner that already has the knowledge base, skill sets and processes in place to handle the entire process seamlessly. An ideal partner should also serve as a single-source logistics provider for all the moving parts and take the management burden off of you.

3. Infrastructure Enables Quick Deliveries

In consumer-based logistics, the infrastructure in most urban areas is already set to easily address and ensure delivery on the same day, next day, or second day. This helps many companies compete against the Amazon Effect. However, when you get out to the farther suburban areas, it’s still an issue that many logistics companies will need to deal with this year.

In B2B logistics, where the size and scope of many products (think large equipment and technology) might not rival the speed seen in the consumer sector, I think the supply chain infrastructure is well-enough established and set up to transport and deliver products faster and safer than ever before. From where I sit, however, I think the demand for B2B logistics likely will remain flat in 2020 compared to the last couple of years.

Many changes in the B2B space over the past three to five years have addressed several of the pertinent issues the industry faced. This includes recommendations for the LTLs and changes to the requirements for drivers, upgrades in equipment, and better wages for drivers, which has improved the driver shortage. Because of these initiatives, I think we’re going to see a lower accident rate in 2020.

4. Industry Changes Are Paying Off

In summary, I think the logistics industry today has higher quality equipment and has built in flexibility to address any anomalies to shifts in the supply chain. I also think the logistics arena has been growing for years and there’s a lot more opportunities in it. Companies are embracing analytics to improve operations so we can plan and predict better now.

The whole supply chain has gotten significantly smarter and has become a strategic asset for most industries, and we see that trend continuing strongly in 2020.

Have Questions?

If you have questions about logistics for smart lockers, then contact us today and we can give you more insight.

Smart Lockers Require Smart Logistics

By Sean Horner,

VP Operations, Technical Transportation

Technical Transportation, Inc

Smart lockers, which can be opened by electronic code or mobile phones, are poised to make big waves in North America in the coming years.

Likely located in a wide range of venues, from universities and large corporate campuses to retail establishments, these lockers will give users the ability to either store items or have items delivered to them — similar to Amazon’s locker system but on a larger scale. One application for smart lockers is the delivery of retail orders, which was forecasted to break through the $1 trillion threshold in the 2019 holiday shopping season according to a report from eMarketer.

But for venues and manufacturers, deploying these large, heavy and expensive lockers can be a challenging and costly task if not handled by an expert team. With a rollout or installation of this technology, you need to consider multiple logistics phases for each install, including:

• Site Survey – Each location will have its own unique characteristics and challenges, so you must conduct a site survey beforehand to determine your course of action
• Customized Logistics Plan – You’ll then need to develop a customized logistics plan for each location based on the site survey, including the number of people needed for installation / setup, the best time of day to deliver and install the equipment, and any unique tools and skill sets that might be needed
• Warehousing – To minimize logistics costs it may also be prudent to set up temporary warehousing for the lockers in the targeted rollout regions
• Transparent Transportation – You’ll want a transportation provider that is an expert in dealing with large, expensive technology like the smart lockers. Someone who knows how to safely and expertly pack and ship your product so it arrives safely on schedule. They should also give you the ability to track each shipment electronically and in real-time
• White-Glove Delivery – You’re delivery partner should be highly skilled and knowledgeable in the white-glove delivery of your product. They should have the people and tools on staff to make the delivery effortless
• Hardware Setup – You’ll need someone at every delivery to set up the locker hardware, including fastening and securing it to the walls or the ground, depending on results from your site survey
• Software Installation – You’ll also need an expert on hand to install the locker’s software and ensure that each unit opens, closes and locks properly, and that it’s ultimately ready for the end-user

Manufacturers could take these tasks on themselves, however, it will likely be more efficient and cost-effective to engage with a logistics partner that already has the knowledge base, skill sets and processes in place to handle the entire process seamlessly. An ideal partner should also serve as a single-source logistics provider for all the moving parts and take the management burden off of you.

Have Questions?

If you have questions about logistics for smart lockers, then contact us today and we can give you more insight.

​Maximizing Investment in Your Sales Demo Equipment

By Vicki Swisher

DFW Operations Manager

Technical Transportation, Inc

When trying to close a sale, few things work better than a quality demonstration of your product. It’s an opportunity for you and your product to shine, and you want your demo equipment to be working at its very best.

However, many manufacturers today make the risky move of managing the transport and setup of their demo equipment in-house, often delegating those tasks to their sales teams.

While this may be a good approach for some mainstream, or easy-to-handle products, it is highly discouraged for large and complex technology and equipment, where the risk of damage or defects caused by mishandling during transport can literally result in the loss of a potential sale (and reduce the inventory value of the asset).

Unknown to some manufacturers, there are logistics companies that actually perform the packing, transport and set-up of demo equipment, and in this blog, we’ll outline some benefits of outsourcing this process.

Handle with Care — Many sales reps will use corrugated cardboard boxes to transport their demo equipment, however, those boxes often deteriorate after just one or two uses and they do not protect the material as originally designed for a one-time use.

Here at TechTrans, we created a program that designs reusable crates, customized to the specific needs of each piece of demo equipment. These customized wooden, pelican, anvil and metal crates offer specific packing and stabilization support for delicate or weighted equipment and have foam inserts to minimize vibration impact.

There is an initial investment that is more costly than original (one-time use) packaging. However, these solid crates offer more longevity and protection for a customer’s product and can be turned several times before inexpensive minor repairs are performed to prolong the life of the container. These crates also enable us to transport the equipment on the more cost-effective LTL system, thus saving manufacturers money in transportation costs.

Less Loss — A third-party partner that knows your industry and your products can minimize mistakes and reduce losses. It’s important to work with a partner that has experience-proven processes in place and skilled staff that can expertly move your demo equipment anywhere, at any time your sales team needs it.

Outsourcing also puts the demo move capability back into the hands of management versus putting the entire burden on the sales teams. This 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 demo product in the field.

More Time with Prospects — Outsourcing this function will give your sales team more time to do what they do best — prepare for presentations, network with prospects and close deals. Outsourcing helps minimize the time your sales team spends on non-revenue-generating activities, and guarantees that your demo equipment will be ready to go and operating at its best when your prospects come calling.

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

​Predictive Analytics Helps the Industry Bat a Thousand

By Len Batcha

President

Technical Transportation, Inc

The more information you have at your fingertips, the better decisions you can make. That’s why data and analytics are so important in virtually every industry today.

One industry where analytics is on prominent display is Major League Baseball. When Billy Beane introduced his data-based evaluation of players that was detailed in the book – and movie – Moneyball, his team enjoyed immense success and changed the way business worked in the league.

Today, each MLB franchise now ingests a wide range of defensive and offensive statistics for each prospect and performs predictive analytics to forecast each player’s potential peak performance. This helps take the guesswork out of their evaluation process and helps them find the right players for their ball clubs.

A similar approach is also being used today by companies in the logistics industry to improve performance and gain a competitive edge.

Like the MLB, we’re an established industry that’s been around since the time of the stagecoach. Also like MLB, our industry has historically used certain indices to measure success in the business. For example, in baseball a low earned-run average (ERA) was the leading indicator of success for pitchers and a high batting average meant your hitters were successful.

But also like the MLB, the logistics industry has now entered a time where we have to be more aggressive with our analytics to help us drive our businesses, while helping our customers move products more efficiently and cost-effectively.

And that means incorporating new data sets to help us better understand our businesses and achieve our goals. For example, using our baseball analogy, instead of looking just at batting average and runs batted in (RBIs) to evaluate success for hitters, they now combine two less-heralded stats (on-base percentage and slugging percentage) into a new stat called on-base plus slugging (OPS) to more accurately evaluate players.

Similarly, companies in the logistics industry must add to or change the statistics they evaluate so they can more accurately pursue and employ predictive analytics to improve.

The first step is building a statistical baseline that features stats you’ve likely collected for years, including:

• How much volume your carrier(s) have from a capacity standpoint?
• Do you have predictable routes established?
• Do you have a history working with certain kinds of deliveries and pick-ups within the industries you serve?
• Do you have information on the number of shipments delivered, on-time, within budget and damage-free?
• How long does it take to shift a product or a shipment from point A to point B before it’s actually delivered to the transit center?

Then, you can add new data sets that can provide more insight into to your business processes and aide in predictive analytics. Examples include rapid or real-time information such as weather reports, road conditions, road clearances, airport shutdowns, airport openings and more — all of which can now originate from a variety of sources such as social media, weather services, etc.

By having this information at your fingertips in advance, you can better predict how any given shipment will get from Point A to Point B, while expertly navigating around any unpredictable events or changes in your working environment.

In the end, using predictive analytics as a scoreboard for success means a win-win for everyone.

If you’re interested in learning about how TechTrans can ensure an efficient disposal and recycle process for your decommissioned products, contact us today.

​Incorporating destruction in the field, responsible recycling into supply chain operations

By Tom Chick

Vice President National Accounts

Technical Transportation, Inc

It’s not a step in the supply chain that most manufacturers think about with a new product launch or go- to-market strategy. But plans for efficient and sustainable product destruction – once product has reached end-of-life – should be a crucial component of any logistics program. Thinking strategically about these vital processes will help minimize the cost impact to a manufacturer when a product inevitably reaches the end of its life. In fact, many organizations have been looking for better ways to realize cost saving in this area of their supply chain.

Recognizing these trends, our own team at TechTrans has enhanced its suite of offerings to ensure a seamless process that follows product all the way through to its end-of-life. For companies on the verge of a new product rollout, or considering phasing a product out of the market, here are some things to keep in mind.

Uncompromising attention to detail where it counts most

For manufacturers in some industries, such as healthcare and life sciences, regulatory agencies 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 products are properly disposed of and will offer thorough documentation of their processes. TechTrans can offer a certificate of destruction to be shared with the customer/ COD order within 24 to 48 hours.

For some companies, decontamination is also a critical issue, yet can be very costly. Since this is a mandatory, yet non-revenue generating function, it often makes sense for manufacturers to partner with a logistics team that can manage the costs of this process and reduce revenue loss on products that are no longer in use.

Localized operations mean increased efficiency and savings

When a product reaches end of life, most manufacturers are faced with the expense of either deploying in-house teams to destroy and dispose of the product, or ship it back to headquarters. By working with a logistics partner who has local resources, you can eliminate the expense of returning product to the manufacturing facility. In fact, on average manufacturers can realize a 33% savings by disposing of product in the field instead of shipping retired product back to headquarters.

Furthermore, when you use the same logistics team to manage your resources in the field through the entire lifecycle, tremendous economies of scale can be built into the supply chain. This means manufacturers can avoid additional costs that go into training or building processes each time a new vendor touches the same product.

Enhancing green initiatives

Thinking globally but acting locally is a standard mantra for sustainable solutions, but is also a good rule of thumb for your disposal solutions. Keeping things local also makes destruction in the field a green initiative.

After destruction, product should ideally be transferred to a local recycling center. By incorporating regional recycling processes into the supply chain, a logistics partners can help keep the manufacturer’s expenses to a minimum. It also assists in reducing the overall carbon footprint by minimizing fuel use and diesel exhaust from long haul trips.

As technology advances and a product’s shelf life exponentially shortens, incorporating sustainable end-of-life plans for products will become even more important.

Protecting brands — and people — through proper disposal protocol

Planning for destruction and disposal also provides assurance against user abuse. For example, if a hospital purchases a new piece of equipment and sells the older model on the aftermarket, the healthcare manufacturer may find its latest technology competing against its older products.

Planning ahead for proper disposal and recycling procedures strategically reduces this liability for the manufacturer and ensures its brand promise remains intact with the end customer. It also ensures product is taken out of the field that may no longer be protected by warranties or automatic upgrades.

If you’re interested in learning about how TechTrans can ensure an efficient disposal and recycle process for your decommissioned products, contact us today.

​Training Makes Deliveries Safer & More Efficient

By Louis Black

VP, National Account Sales

Technical Transportation, Inc

Transporting and delivering large, complex and delicate equipment brings many challenges, because even the slightest mishandling can be expensive.That’s why it’s important that every member of the delivery team is on the same page.

To achieve this requires training team members on who the manufacturer is, background on the industry, and details on the products and end-users involved in each delivery. Scaling this at a national level also requires a formalized training program that is convenient for workers in multiple locations and time zones. In our experience, such a program helps:

• Increase Knowledge
  They say knowledge is power, and by training personnel on the products they deliver and the companies they serve, teams are empowered to react and adapt to unforeseen issues in the field. An effective training program should feature web-based, media-rich materials, including instructional videos, diagrams, illustrations and manufacturer guidelines — all to help delivery teams better understand equipment handling procedures and quality control standards for each delivery.
• Improve Efficiencies/Minimize Mistakes
  Knowledge also helps delivery personnel better understand the limitations and intricacies of each product they deliver. This can help them creatively craft delivery plans within those limitations that maximize efficiency and reduce mistakes. The end result is safe and secure transport and delivery of products while reducing costs and increasing profitability.
• Improve Customer Experience
  Proper training can also help delivery team members provide a better experience for the end-customer. Whether it’s a knowledgeable answer to a question, providing helpful tips, troubleshooting, or helping with any on-site setup issues,, trained team members can provide “above and beyond” assistance to users and build customer loyalty for the manufacturer.
• Increase Assurance
  Finally, a knowledgeable, competent delivery team gives manufacturers the confidence that their products and their brands will be well represented among their customers, and can help minimize some of the headaches that come with managing logistics for complex technology and equipment.

We have an in-house custom training program called TechTrans Learning Management System which comprehensively trains our field services team to meet the needs above. Learn more about TechTrans’ LMS.

As a manufacturer, are you having a hard time communicating your needs to your logistics and delivery teams? Do you need someone to help ensure easy compliance to industry standards and mandates? Contact us today to learn more.

​Top Qualities of a Successful Logistics Professional

By Len Batcha

President

Technical Transportation, Inc

The logistics industry continues to grow at a solid pace, and according to The U.S. Bureau of Labor Statistics, the number of logistics professionals in the country is expected to increase by more than seven percent between now and 2026 — adding almost 160,000 people.

To stand out and be successful, though, requires a wide-ranging skill set aimed at moving products from Point A to Point B quickly and profitably. In my years working within this industry, I have found there are six crucial traits a logistics professional must possess to enhance success. Here’s a summary:

• Critical – Having critical thinking skills are an asset when analyzing a process and finding ways to increase efficiency, reduce costs and improve the bottom line for your company, as well as your customer’s. This is in addition to getting products where they need to be at the right time and in pristine condition.
• Clever – Problem-solving skills are often required throughout every phase in the supply chain in order to effectively handle immediate and unforeseen issues as they occur or in design process. On-the-spot problem solving increases the chance of a positive outcome for all involved in the supply chain process. You must be able to draw on your experiences – both good and bad – and problem solve by thinking outside of the box when presented with new challenges!
• Strategic – A professional who wants to advance in the industry must be able to see and understand the big picture of the entire logistics process, from start to finish. It will be critical to also know how to make or recommend changes at the strategic level to present planned schedules that seamlessly integrate changes, control expenditures for budgets and labor requirements for implementation programs to improve the logistics process.
• Flexible – You may not need the physical capability to touch your toes (in most cases), but you do need to be able to adapt easily to changes in your logistics plans and processes. This goes hand-in-hand with problem-solving skills and the ability to move away from your initial plan if needed to get the job done. Remember there are always a multitude of routes to arrive at your destination, but you may need to change direction in order to recognize the desired goal. It is a journey not a destination. Also, be willing to continually seek professional improvement through programs like TechTrans’ Learning Management System (LMS).
• Calm – Maintaining a level head when situations seem desperate or frustrating is an important quality for logistics professionals. Every delivery presents its own unique twists and turns. You must be able to manage the stress and anxiety that comes with managing those tasks. Grace under pressure is an admired trait. Never let them see you sweat.
• Transparent – Integrity and honesty is paramount to building relationships between you and your company as well as between your company and its customers. You must be upfront about mistakes you make and don’t try to hide them. They’ll likely come to light sooner or later and in a way that sheds a worse light for you and your company. Remember we usually learn more from our mistakes than we do from our successes.

If you’d like to learn more about what it takes to succeed as a professional in the logistics industry, or if you’re searching for career opportunities, then we invite you to click here and contact us today.