Up and Coming Retail Logistics Trends for 2015

2015 Retail Logistics Trends

Up and coming retail logistics trends show a global shift in the movement of goods and services. Developing countries are now challenging countries that were once recognized as leading the world in consumers spending and consumption. Here are retail trends that are expected for the remainder of the 2015:

1) Heavier Competition

Developing markets offer goods and services for developing lands. Goods are in demand by countries once unable to afford durable goods. Manufacturers are courting consumers of these nations and their newfound wealth. Consumers are offered different avenues for shopping, placing pressure on sellers to work harder to draw and hold present customer base. This requires consistent improvement of retail logistic strategy and solutions.

2) Increase in Supply Lines

Retailers and manufacturers are using multiple currency applications and better merchandise supply lines. Supplying a reliable product the first time around is more important than ever. Merchandise reaches customers in a few days rather than weeks. Sellers competing with businesses with local distribution networks must search for benefits that set them apart and give a buyer a motive to wait extra time for merchandise. Companies refusing to recognize the way money is moved from one global point to another cannot operate effectively. It is more important than ever to have a reliable logistics backing in todays “instant gratification” culture.

3) Increase in Online Purchasing

The internet launched a major change in retail logistics. Those realizing the advantage quickly took primary spots in front of the consumer, such as Overstock and Zappos. The introduction of internet purchasing changed retail logistics even further. Businesses operated by one person or small groups are now able to advertise and sell to global markets, ship merchandise and cut into a percentage of the GDP. Globalization is a possibility for anyone.

Internet shopping is increasingly done more on mobile devices. The most recent trend is new source in mobile technology: shopping apps. Customers can download shopping apps on phones and checkout with any number of payment options. Prosperous businesses have fallen along the wayside if they haven’t yet adopted this technology. More than 50% of online shopping is currently done through mobile apps. Future expectations expect the present 4 billion shopping app dollars to expand to a fast 200 billion. Presently, 78% of people searching with a mobile app make a purchase.

4) Cheaper Costs for Major Transportation

Companies around the world now have access to major transportation outlets. The ability of companies to ship small and large loads economically from every part of the globe allows any merchant to transport goods. Merchandise is constructed, stored, packaged and shipped in a refined operation—specifically when outsourcing logistics needs to a third-party logistics (3PL) provider. Logistics providers offer retailers and customers peace of mind by providing currency alternatives, inventory management and product tracking. When it comes to retail logistics practices, this is a selling mechanism. A reliable 3PL can provide customers payment arrangements that suit their bookkeeping methods that ultimately aid in sales.

In large business operations from developed nations, owners may know how long merchandise will take to get to a destination as well as transportation cost and has a strong network of carriers and 3PL’s to manage products. The use of a 3PL provides manufacturers from less well-known destinations the opportunity to compete in an economy once dominated by larger countries and allows larger businesses to maintain control.

5) Information Flow Integration  

Access to information allows buyers to reach into a new pool of prices. Older manufacturers may be able to present a lower price of quality merchandise but others may sacrifice profit to break into the market. A smaller company may have less overhead enabling it to compete with mainstream producers. Knowledge of the market that consumers work and buy merchandise in is essential. Reliable export and packaging information can be easier to find. This added step helps trust in dealing with a provider of merchandise and is an asset in retail logistics operations.

Material handling, production, packaging, inventory, warehousing and security are all important aspects of retail logistics. If a retailer’s freight is not distributed and delivered with accuracy and safety, they risk the cost of operation and profit. Retailers can rest assured that they are maximizing productivity and profit when employing a third party logistics (3PL) provider. STC Logistics specializes in reliable retail logistics, export assembly services and import distribution solutions that can ensure an efficient supply chain. Whether coming from multiple vendors or going to various destinations, from inventory, warehousing and delivery requirements, STC Logistics warrants product to its final endpoint. Click below to learn more about our fast freight retail shipping services!

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From Planning to Delivery: Holiday POP Displays

delivery 1-resized-600.jpgBusy retailers need to consider a multitude of details when planning for a holiday season. In order to meet the needs of customers during a rush such as Black Friday or Christmas, retailers must always be logistically proactive in making sure seasonal displays and products get delivered on time and in ideal condition to attract customers. Even for day-to-day operation or a brand new rollout plan, having an excellent third party logistics provider will guarantee that all customers are satisfied while business runs smoothly.

Proactive Preplanning of Holiday POP Displays

Planning to setup successful POP displays means the displays and products must arrive on schedule and organized in order to maximize efficiency. Working with a 3PL provider can take care of the many details of preplanning an upcoming holiday season, ensuring sales will go smoothly. Using technology that helps scan for and manage issues, a great 3PL provider will assess and correct any potential problems before they have a chance to occur. Your 3PL can also handle all of the logistic planning needed to execute a flawless holiday season, alleviating some of the stress that retailers experience during busy seasons.

Intelligent Bundling

Many retailers can make the mistake of using logistics providers that are behind the times. Oftentimes these dated methods are far from the most efficient way to order and transport displays and products. These inefficiencies slow business and create lags in schedules, leading to extra costs and exceeded budgets. By handling all details of the ordering process, 3PL providers cut out many of the “middle men” which may cause confusion and slow the process for retailers. Retail-specialized providers will ensure the most efficient method for ordering, transporting, and delivering all POP displays so retailers can spend their time focusing on the daily needs of the store, rather than the transport of materials.

Safe Handling and Delivery of POP Displays

A number of risks are involved with the transport and delivery of holiday POP displays, including the collection of dust or dirt, corrosion of materials or exposure to the elements. These hazards, combined with the risk of damage due to jostling during transport, can weaken the overall effect of these displays and therefore must be avoided. An experienced and professional 3PL provider will guarantee that all POP displays will arrive safely and in the condition they are meant to be. Searching for the safest and quickest route ensures that POP displays are minimally handled and protected through their delivery.

Timely Deliveries

One of the most important steps to a successful holiday season is ensuring all products and POP displays arrive on time so that merchandise can hit shelves as soon as customers demand. During the busiest seasons of the year, retail employees may become disorganized and struggle to order deliveries properly—resulting in product campaign delays and lost profit. By allowing a qualified 3PL provider to handle the details, retailers can focus on running day to day business rather than worrying about the timing of deliveries. 3PL providers specialize in delivering freight on time, whether it’s for a holiday rush, restock, or rollout operation. STC Logistics ensures timely and safe deliveries for any season with a 99% on-time delivery of undamaged goods for the last 15 years.

As a retailer, there’s no reason to stress over the details of making sure POP displays are handled and delivered correctly when dedicated, professional 3PL providers are willing to make sure each step in the process is controlled perfectly. Making sure each display is ordered in a timely fashion, transported carefully, delivered on time and in great condition, STC Logistics manages any potential issue that could interfere with an entirely successful holiday rush or rollout. An experienced 3PL provider ensures a seamless delivery service, helping any retail establishment avoid challenges during the most demanding time of the year.

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Holiday Retail Planning: The Benefits of Working with a 3PL Provider

christmas package-resized-600.jpgRetail planning for the holiday season can be a daunting task. Having the right decorations and an accurate inventory full of all the new specialty products for the season is essential for business success. To meet these retail planning challenges, many savvy retailers turn to 3PL providers to make sure their logistics needs are managed properly. Here’s why:

3PL Providers Meet Deadlines

In retail planning, it’s critical to have freight shipments arrive on time. 3PL providers like STC Logistics utilize an infrastructure based on state-of-the-art technology which recognizes an impeccable route for each specific shipment. The needs of freight shipments are handled and processed by high speed machines, ensuring superlative delivery times. Experienced 3PL providers communicate with affiliates from all over the world in order to consider each possible mode of transportation before deciding on the quickest freight shipment route. Utilizing a retail-specialized provider during holiday freight campaigns begins with computerized recognition of efficient routes with economical rates and ends with precise timing for delivery arrival before the holidays.

3PL Providers Save Time and Money

Distance, equipment, handlers, consolidation and deadlines factor into freight shipment prices. Retail-specialized 3PL providers analyze each freight shipment with a customized rate program to ensure that the most amicable and economical rates available are offered. Optimal logistical efficiency means money is saved in every possible way while the fastest freight shipment routes are taken. Freight may be combined in order to provide additional saving opportunities during the process of transportation for retail planning. Individualized electronic rate quote numbers are created when a freight shipment is rated and this number is used to reference pricing when freight is booked and tracking numbers are generated. This enables the rates and routing to be exact.

The Benefits of Electronic Logistics Format

Multiple rollouts, destinations or assembly services are no issue with STC’s Electronic Logistics Format (ELF). It is a proprietary service which STC Logistics utilizes in order to give clients the advantage. It has been specifically designed to provide an awareness of information between all involved parties during the distribution process. Customized rollouts are drafted, many containing multiple destinations for distribution, along with pieces, sizes and weights and then the spreadsheet for a freight shipment will be received by means of EDI transfer. Updates and changes are simply made and reviewing an entire program now becomes straightforward.

Before the very first pickup is made, outlined instructions that detail requirements for pickup and delivery will already have been prepared and awaiting client approval. Once approved, the ELF will be published to a custom mini-website accessible to clients through the STC Logistics client portal. Status updates are easily viewed, tracking is in real time and reports are easily manufactured. Receiving holiday freight shipments this season in a timely and cost-efficient manner by utilizing STC Logistics enables distribution that is stress-free.

3PL Providers Use Efficient Freight Shipment Methods

Retail planning requires research when partnering with a logistics provider in order to grant an overall flawless process in retail planning. Having a 3PL provider facilitate freight shipments guarantees an enhanced and well-researched process for finding available logistics. Placing an emphasis on the process of retail planning before the transportation plan occurs enables retailers to confidently be assured of the quality they are receiving during a freight shipment. Providing easily accessible status updates and paying sufficient attention to concerns with detailed instructions ensures optimal efficiency during the shipping process.

STC Logistics has established an impeccable reputation throughout its 45 years of experience as a 3PL provider. We offer unbeatable freight shipment delivery times on land, air, and sea—all while enhancing a client’s retail planning process. Our unrivaled technology and catered retail planning programs ensure time and money are saved during the transportation process. Additionally, with a damage rate of less than 1%, our customers can feel confident their shipments will arrive in pristine condition ready to be stocked for the holiday season.

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Rollout Management and New Store Openings: Mall Deliveries

outside store in mall-resized-600.jpgA successful new store launch requires a meticulous rollout management plan. Everything from advertising and deadlines to budget and risk management has to be planned in great detail for a seamless process from start to finish. However, the first step towards success is recognizing logistics and supply-chain management as a crucial part of the strategy for the entire process.

Why Opt for 3PL (Third Party Logistics) Providers for Retail Logistic Best Practices and Good Rollout Management?

1) Speed and Responsiveness 

Supply chain speed and responsiveness are usually considered more often than the price of a logistics service, but too often, many supply chain tiers are skipped by working with companies that are not experienced in all aspects of logistics. This is why logistics services should not be bundled blindly; for example, ordering transportation directly from a POP display manufacturer is far from optimal in terms of responsiveness, speed, and cost (they specialize in POP displays, not transportation, after all).

By opting to work with a 3PL provider, store owners don’t have to order various products through multiple supply chains. 3PL providers can handle all moving parts of the supply chain, so they serve almost as a one-stop shop for retailers. On top of time-efficiency, reliable and trusted 3PLs eliminate supply chain risks that come with bundled services and facilitate communications during the rollout management process.

2) Dynamic and Resilient Logistics Strategy

During rollout distribution management, it is crucial to adopt logistic practices that focus on execution-based processes and technologies that will not be interrupted by internal and external changes. For example, if a store owner is forced to swap electronic equipment due to legislation change, postponing the opening of the store should absolutely not be the result.

Trusted 3PL providers can identify and adapt to these changes as they happen because of the logistics management software programs they use. These software programs can identify bottlenecks and problems before they can impact a store owner. This helps the store owner in responding to changes in competitive and regulatory retail environments.

3) Fast Mall Deliveries

on time delivery 2-resized-600.jpgIt’s obvious that supply chain speed is crucial for a timely launch of a new store opening, but there is no need to force a rush delivery for store merchandise when display shelves are arriving at least a week after. It is especially important that POP displays and other display shelves are delivered to the appropriate location before merchandise arrives and well in advance of the new store opening to ensure store layout and placement details are correct. Store managers should be able to count on reliable 3PL providers to meet the tightest deadlines and simplify the process for new store owners so they can focus all energy on opening up the store.

With leading transportation and logistics technology, STC Logistics not only provides a full, well-rounded solution for new store openings and mall deliveries, but also takes pride in providing clients with effective rollout management and distribution plans, regardless of the industry sector. To learn more about our specialized logistics specialties, including retail, marketing and advertising, click below!

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The Logistics Behind New Retail Store Openings

warehouse-resized-600.jpgIn our day and age, there are countless supply chain management firms in the logistics industry, and it can become very difficult for retailers to choose a perfect logistics provider. There are numerous things to be considered—especially when new store openings are on the line—and retailers are not in a position to take any risks.

Choosing a Reliable Logistics Service is the Key to a Successful Launch 

There is a large list of things that need to get done when a new store is opened. It is almost impossible for one person to take care of everything, from planning to purchase and transport of the goods. Logistics providers can greatly reduce the work burden of store staff at such a crucial time and can drastically speed up the opening of a new store if their company practices the right policies and procedures for success.

The ideal way to manage retail logistics for success is to find an efficient retail procurement expert. Here are a few key factors that need to be considered before a retailer makes the final decision of what logistics provider they will work with:

  • The logistics provider needs to understand the task and has to have the proper expertise and tools to complete the task in a timely manner. Are they experienced in high-volume new store openings? Are they capable of fulfilling both small and very demanding retail logistics needs? Look into the experience that each logistics provider has and see if they specialize in retail.
  • How strong is the infrastructure of a specific logistics provider? Among others, it must include proper warehouse facilities and shipping services, on top of permissions of shipment, in case of transporting the goods for a new store from a far-off location?
  • Will there be consensus on the ethics and other crucial principles between both the parties? The provider needs to respect all the environment policies and abide by them as well as have good risk management policies in place.
  • Were the previous customers satisfied with the service offered? The logistics provider must be offering the best services at the best price.

Logistics Providers Make or Break New Store Openings

A new store is just like a new inning in a retailer’s life; thus, no negligence should be made.

A good logistics provider must have its expertise in shipping through air, sea, rail, and ground. The logistics provider must also empathize with the work and needs of the retailers, therefore, should be accountable to deliver the retail procurement items on time. It is essential for all the items like POP, display shelves and other furniture and fixtures to be delivered on time with no damage. Also, all diligent logistics providers make sure that the material required for a new store not only arrives on time, but also schedule it with the purpose of cost-efficiency.

In the complex operation of supply chain management, an effective logistics provider can efficiently make the work of a retail chain or its staff much easier. If a shipment is late or the items are damaged, new store openings can be delayed or even, in worst case, canceled.

Due Care to POP Displays 

POP advertising is the most sought after mode of advertising for the immediate purchasing action and is even more vital for new store openings. Professional logistics providers make a commitment to deliver all the POP material on time with all safety measures taken. After all, advertising on time does pay in the long run. It is advised that POP material should be delivered on the venue at least a few days before the opening, to avoid any delays due to assembly and to allow time to repair any potentially damaged items.

STC Logistics specializes in retail new store openings across the country. Whether you are opening one new store or 100, we make sure that all retail cargo items are packed while considering all the factors, including temperature-sensitivity, transit bumps/jolts and the best shipping routes available. We also take full responsibility of transporting retail products with all safety measures in place. Our retail logistics solutions ensure that we make new store opening deliveries on time, every time. Click here to get your quote today!

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Reliable Logistics Solutions for Retail Fixtures and Displays

store display jackets-resized-600.jpgHaving the right fixtures in the right place at the right time can make or break a retail operation. Timing is especially important when considering the fact that most retail stores make their annual profits in small, high-traffic windows throughout the year. The logistics of retail procurement, fixtures and displays plays a pivotal role in determining the success of your business or retail campaign. This blog explains what to consider when approaching retail procurement logistics and choosing a third party logistics provider to ship your procurement cargo.

Timing

Nothing matters more in retail than timing. Timing must be positioned properly to take advantage of holidays, tax-free weekends, new product releases and other narrow timeframes. Effective logistics make sure you receive the products, fixtures and other materials you need, right when you need them… not early, when they might waste valuable warehouse or floor space, or late, when the window of opportunity has already shut. Such strict timing requirements may not matter as much when you’re upgrading your standard displays, but seasonal or event-specific displays need to be ready on time, all the time.

Care

The only thing worse than receiving materials too late or too soon in retail procurement logistics is receiving materials that are damaged or not receiving them at all. Even minor damages can ruin a fixture. Scuffed or scratched displays do not impress customers and less obvious structural damage might result in a display piece breaking while in use. This could cause a safety hazard for shopping customers in busy shopping malls. There is little to be done once you’ve received damaged goods, as even a claim against the shipping firm for the value of the fixture won’t recoup lost potential retail sales in the window of opportunity or time wasted trying to cover for the problem.

Third Party Logistics

With so many factors to consider, in-house logistics personnel can be ineffective or impossible to maintain without compromising profit margins. Specialized retail procurement agencies have specialized knowledge and connections which are invaluable when moving materials around the world or across the nation. Leaving the management of logistic details to individuals whose job it is to know when local shipping laws have changed or what ports will be unusually slow or have a tendency to lose shipments will, in most cases, be superior to training an individual or team in-house to handle the same duties.

Providing the Best Solutions for Retail Procurement Logistics

If you have questions about retail procurement logistics or would like to know how a full-service logistics firm can help your business operate more efficiently and effectively, contact us at STC Logistics by clicking here. We are a trusted provider of retail procurement logistics solutions including new store openings and remodels and marketing campaigns. Thanks to our expert team and our state-of-the-art technology systems and nationwide network of ground, air, rail and ocean transportation, we maintain a 99% on-time delivery rate for businesses across the United States. Learn more about our specialty logistics solutions by clicking here.

Retail Logistics: Why Timing is Everything

Timing is everything in the retail logistics and transportation industry. Many retail stores struggle to break even in down months and make the entirety of their annual profits in short, frenetic periods each year. Having the right products on the shelves when they are most valuable can mean life or death for any retailer, whether it’s the summer boom in lawn equipment and air conditioners at a hardware shop or having the newest titles on the shelves at a gaming outlet. Ordering too far ahead of schedule can mean as much of a loss as ordering too late—even in periods of low sales, wasted shelves equal lost profits.`

Logistics and transportation must be carefully handled at all stages for a store to achieve maximum profits. On the store’s end, this means careful pre-planning, beginning at least a few months in advance of hectic sales seasons. Important steps in retail planning include:

  • Researching products
  • Gauging potential sales
  • Developing sales and advertising strategies
  • Contacting suppliers
  • Completing negotiations
  • Arranging shipping
  • Receiving products and advertising materials
  • Shelving products and preparing displays

Several of these steps can be quite difficult without retail logistics and transportation support, but missing important products, over- or under-estimating interest in products or failing to complete negotiations and receive necessary items in a timely manner can all be devastating. Forgetting to order point-of-purchase displays for a major product until the week before the product goes on sale, for example, might make the difference between clear shelves and a full stockroom.

Holidays are of particular concern for any retailer, because as the most vital season for financial success they are also the most likely place for problems to crop up in your logistics and transportation. Perfect preparations store-side can fall apart completely if the chaos of the season overwhelms suppliers, transporters or other parts of your logistics chain. Major logistics and transportation firms fail to deliver express packages on time roughly 10% of the time and lose between 0.5% and 1% of packages every year. Those numbers become even worse during intense seasons.

Having specialists manage your logistics and transportation chain can greatly reduce the odds of delayed order completions and missing shipments. STC Logistics maintains a better than 99% on-time delivery rate to customers in locations across the nation. We offer shipping by air, sea, rail and road and can handle complex large-scale distribution and small daily shipments with equal ease. By working with over 700 logistics and transportation affiliates in and around transportation hubs across the United States, STC Logistics can manage time-sensitive shipments with high precision and reliability. To learn more about our logistics services, click the button below or contact us today for your rate quote!

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Retail Procurement: Preparing for the Holiday Season

As the holiday season approaches, gifts and displays have been pouring into retail distribution centers. To be well organized for each upcoming holiday season, retailers must implement smart planning throughout the entire year, usually beginning in August. This will allow retail procurement to find the correct balance for Black Friday and Cyber Monday shopping sprees, as well as the remainder of the holiday season.

Smart Planning

The simple steps to the procurement lifecycle that most individuals generally agree upon are as follows.

1. Information gathering
2. Supplier contact
3. Background review
4. Negotiation
5. Fulfillment
6. Consumption
7. Renewal

The most important aspect of smart planning in retail procurement is to order the correct quantities of products thus ensuring renewal demands are met. This includes contingency planning for natural disasters and consumer spending habits that can cause logistical disruptions. The goal of smart planning is to capture the greatest number of sales without being overburdened with excess stock.

In recent years, retail procurement has learned to balance merchandise by improving the overall supply chain. This accounts for improvements in the amount of products to purchase/manufacture, where to place them and how to get them to the stores. Two major contributors to these improvements are technology and flexible agreements with shipping lines.

Order Quantities

For brick-and-mortar stores, the key to a perfect holiday season is for retail procurement to predict the number of each product the company requires at each retailer. Although there is an arbitrary calculation, the correct answer varies greatly per location. The greatest challenges for retail procurement to calculate the correct quantities include:

  • Short timeframe
  • No selling activity to indicate buyer behavior
  • Over-stocking
  • Under-stocking

Point-of-Purchase (POP) Displays

In addition to smart planning by retail procurement for products, companies must also create a strategy for POP displays which help drive costs from the supply chain. As a mechanism for advertising, POP displays create value in the retail stores with low labor cost. Therefore, these displays must arrive at the stores concurrent with the products to ensure a timely advertising campaign during the holidays. Therefore, it is critical that upstream logistics is involved in POP display design timelines as assembly and shipping is a major aspect of the process; not just design.

Consumer package goods companies want the POP display to differentiate from the competition through vivid colors and sharp graphics. In many instances, design creates the POP displays to be so complicated to assemble that it adds considerable labor costs, as well as time. In an effort to ship on-time, in some cases, logistics must use expensive transportation methods like air shipping.

Nevertheless, by including logistics and retail procurement in the design and production timeline, POP displays could be scheduled more efficiently to accommodate more cost efficient delivery avenues. By allowing 3PL’s to assist in mapping out the most advantageous transit schedules, improvements will allow for the most intricate displays to still have adequate assembly times.

Shipping POP Displays

Like any other product, there are certain precautions that must be taken when shipping POP displays which should be built into a contingency plan. During transit, shock and vibration can jostle and even damage the display, dirt and dust can collect, corrosion can occur (depending on the material) and exposure to a variety of temperatures can affect the overall appearance or functionality. Therefore, correct testing, proper protection and evaluation of the shipping routes will assist in ensuring safe transportation of the POP displays to their required destinations.

STC Logistics specializes in shipping retail procurement items like POP displays. We pride ourselves on the principal that when we ship your product, it is delivered on-time, 99% of the time. We are a trusted logistics provider for the retail industry and have a successful track record for reliable and flexible logistics solutions. Contact us for all of your holiday shipping needs here or click on the button below!

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