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© 2016 Purolator International, Inc. Top Logistics Challenges for Small- and Medium-Sized Businesses

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Page 1: Top Logistics Challenges for Small- and Medium-Sized

©2016 Purolator International, Inc.

Top Logistics Challenges for Small- and Medium-Sized Businesses

Page 2: Top Logistics Challenges for Small- and Medium-Sized

2©2016 Purolator International, Inc.

Top Logistics Challenges for Small- and Medium-Sized Businesses

When a Tennessee-based manufacturer of industrial-grade tools decided to close its Canadian distribution center and rely on its U.S. facility to service the Canadian market, it thought it had a workable solution in place to ensure adequate inventory levels to meet the needs of its growing customer base. But the company soon realized it had misjudged the volume of inventory it would need. Two things quickly became apparent: First, the company would need help sourcing inventory in Canada. And second, the high-profile logistics provider that had wooed the company with promises of top-tier customer service was nowhere to be found.

This example illustrates some of the logistical challenges small- and medium-sized businesses routinely face: While demand exists for their products, and opportunity for growth may be strong, their comparatively small size can prevent smaller companies from registering on their logistics provider’s radar screen. As a result, businesses can miss out on logistics innovations that could help them operate more efficiently and the high levels of guidance and planning necessary to succeed.

How then can smaller-sized businesses – which according to the Small Business Administration

account for 99 percent of all U.S. businesses – take advantage of technology and other opportunities to improve efficiency and better serve their customers? Many businesses, for example, would be pleased to learn that technology solutions can be highly affordable and customized to meet their budget.

The first step, of course, is for a business to seek out information about industry best practices and learn from others’ experiences. It’s quite possible that a solution already exists for a business’s top challenges.

The following discussion focuses on key transportation and logistics challenges facing today’s small businesses. Each is linked to an overall goal of improving efficiency and customer service at a time of heightened demand for flexibility and low-cost shipping. And as each topic reveals, integral to any service upgrade will be an experienced logistics partner. The right logistics partner will help you put a strategy in place to help your company achieve efficiencies previously unthinkable.

The Tennessee-based industrial-tool manufacturer found this out firsthand when it called upon a new logistics provider to help address its Canadian inventory problem. The company was pleasantly

surprised when its new provider developed a ground solution that ensured U.S.-based inventory would arrive in Canada several days faster than under its old provider. As this company learned, change can be good and efficient.

Introduction

Introduction

Page 3: Top Logistics Challenges for Small- and Medium-Sized

3©2016 Purolator International, Inc.

Top Logistics Challenges for Small- and Medium-Sized Businesses

Logistics Management’s bellwether "24th Annual Study of

Logistics and Transportation Trends” found “cutting costs”

to be the top priority for business managers (36.7%), more

so than “increasing customer satisfaction” (26.9%) or

“maximizing profitability” (25.6%). Integral to any successful

attempt at cost cutting though will be a realignment of freight

costs. As the survey found, transportation costs account for

roughly 10 percent of a business’s total sales, and that figure

has increased in recent years.

As businesses address the need to cut costs, they also face

unprecedented pressure to increase service offerings. As

Professor Mary Holcomb of the University of Tennessee’s

Haslam College of Business pointed out in Logistics

Management, “Research has shown that services are a core

component of a company’s offering along with the physical

product. However, increasing service levels often leads to

increased cost.” And, Professor Holcomb notes, “when faced

with a trade-off, the majority of companies will choose to focus

on cost over service.”

Specifically, businesses must consider costs associated with

an integrated omni-channel distribution strategy. All businesses

– large and small – face strong customer expectations for

“all-of-the-above” options with regard to fulfillment and

delivery options. But the bottom-line implications can

be especially significant for small- and medium-sized

businesses that do not have the volume and revenue to

absorb these costs.

How then can a smaller-sized business gain control of its

transportation costs?

In fact, there are several things that can be done.

Ensure you have the right provider. For starters, a

business needs to make sure it is being well served by its

existing service provider. Smaller businesses generally rely

on LTL-based freight solutions, since they typically do not

have the volume for a full truckload. But within the scope of

Challenge #1: Controlling Freight Costs

Challenge #1: Controlling Freight Costs

Page 4: Top Logistics Challenges for Small- and Medium-Sized

4©2016 Purolator International, Inc.

Top Logistics Challenges for Small- and Medium-Sized Businesses

LTL freight, there are many different service offerings, price

points, and carrier capabilities:

• A wide range of delivery options. A business must

have confidence that its shipments will arrive on time

and must also have access to a range of service options

to meet customers’ changing needs. Why, for example,

should a business be forced to pay for overnight service

when two- to three-day delivery would be sufficient?

Businesses are no longer willing to tolerate yesterday’s

“one-size-fits-all” service options, and thanks to

innovative LTL providers, they no longer have to.

• Flexibility/scalability. Flexibility is a top expectation in

today’s customer-driven world – and one of the biggest

reasons businesses are drawn to LTL solutions. Can

an LTL provider reschedule a pickup if it’s not ready on

time? Can accommodations be made for late pickups

or early delivery times? Can the service provider make

adjustments for special needs?

Scalability is another factor that has become increasingly

important, especially with the rise of eCommerce.

Businesses are more subject to seasonality and

customer demand than ever. A supplier of snow removal

equipment would not have much need for daily pickups

during the summer, for example, but that would change,

of course, once cooler weather approached.

• Cost should be one of many variables in choosing a provider. A business needs to be careful not to

let cost be the most important factor in determining

a provider. For one thing, a carrier may intentionally

provide a low quote, only to add several surprise items

to a monthly invoice. Or the old adage “You get what you

pay for” may come into play, whereby low-cost service

leads to low-quality results.

Consolidation. Businesses are well aware that larger

shipments receive more favorable freight rates than smaller

shipments. It makes sense then that consolidating smaller

shipments into a single larger unit would be a beneficial

way to gain shipping efficiency. In fact, consolidation can

have a demonstrable effect in reducing shipping charges.

Consolidation is also of great benefit for cross-border

shipments, since a larger shipment will clear customs as a

single entry. Despite the obvious benefits of consolidation,

not every logistics provider has the necessary capability, so a

business should specifically clarify with any potential logistics

partner before entering into an agreement.

Packaging efficiency. Beginning in 2015, most U.S. and

Canadian ground shipments are subject to dimensional

weight pricing (DIM pricing), whereby charges are assessed

based on volume and density rather than solely on actual

weight. Carriers implemented the pricing change as a

result of the surge in eCommerce packages that tend to be

lightweight but often oversized. By one estimate, a “typical”

eCommerce package includes as much as 40 percent air

and filler.

Dimensional weight pricing seeks to rectify the situation in

two ways: (1) shippers are incentivized to avoid higher costs

by implementing packing efficiencies and (2) carriers are not

“penalized” for shippers’ inattention to packaging details.

The new pricing strategy is expected to impact as many

as 30 percent of all ground shipments, with shipping costs

expected to increase by as much as 30 percent. Businesses

can mitigate the impact of the new pricing strategy in

several ways:

• Packaging efficiency is an obvious place to start, but

for smaller businesses that don’t stock inventories of

different package sizes and filler materials, this can be

a challenge.

• Technology can assist by optimizing packaging practices,

and for many, it has become a valuable part of an

integrated warehouse/transportation solution.

• It’s also possible to negotiate with a carrier to try and

minimize the effect of the new pricing strategy.

Challenge #1: Controlling Freight Costs

Page 5: Top Logistics Challenges for Small- and Medium-Sized

5©2016 Purolator International, Inc.

Top Logistics Challenges for Small- and Medium-Sized Businesses

Smaller businesses must also contend with the phenomenon

known as “the Amazon effect,” whereby the Internet giant

has raised the bar significantly with regard to customer

expectations for delivery costs and transit times.

The company’s Amazon Prime, which currently has more

than 20 million U.S. members, offers unlimited free two-day

shipping for an annual fee of $100. And residents in almost

30 metropolitan locations are eligible for same-day, even

hourly, service.

According to The Wall Street Journal, Amazon’s free shipping

option has turned the retailer into the “first stop” for a

growing number of consumers. In a survey commissioned by

BloomReach Inc., the paper reported, 44 percent of consumers

said they begin their online shopping at Amazon. “That’s up

from 30 percent in 2012,” the article noted.

Big retailers like Amazon and Walmart are able to offer free

or reduced shipping because of the volume discounts they

receive from carriers – last year Amazon shipped more than

a billion packages in North America, roughly seven times

as many as its close rival Walmart, the Journal noted.

With discounts factored in, analysis from Barclays estimates

Amazon spends $4 to $5 per package, while “average”

businesses must spend $7 to $8 per package.

Not surprisingly, consumers have grown accustomed to

such favorable shipping terms. Research by Accent found

88 percent of consumers would be more likely to shop at

a particular online site if free shipping were offered, while

research from Compete found more than 60 percent of

consumers said they would not have completed their most

recent online purchase if free shipping had not been available.

And as The Wall Street Journal reported, “free shipping was

supposed to be a temporary enticement in the early days

of eCommerce, but customers came to expect it, and even

demand it.”

While retailers clearly understand customer expectation when

it comes to free shipping, the problem is, for many smaller

businesses, it is simply unaffordable. So how can a smaller

business possibly compete?

• Talk to your logistics provider. Many businesses

mistakenly believe they are too small to warrant

concessions from their carrier but, in fact, new service

options are available that can significantly reduce

costs and improve transit time. For example, it is now

possible for certain Canada-bound shipments to reach

their destination faster – traveling via ground – than if

they were sent by a more expensive air solution. This is

because certain carriers have become more efficient,

utilizing route optimization technology and avoiding

unnecessary stops and layovers. In many instances, a

good logistics provider will have innovative solutions to

help businesses meet the needs of their customers. And

if your logistics provider doesn’t seem to have any ideas,

Challenge #2: Meeting Customer Expectations

Challenge #2: Meeting Customer Expectations

Page 6: Top Logistics Challenges for Small- and Medium-Sized

6©2016 Purolator International, Inc.

Top Logistics Challenges for Small- and Medium-Sized Businesses

it might be worthwhile to shop around. Innovative logistics

providers are introducing new services on a regular basis,

and chances are, there’s a new option that will help

your business.

• Limit free shipping to minimum purchase levels. Many retailers require consumers to spend a minimum

amount in order to qualify for free shipping. This can have

the added benefit of increased sales, as consumers add

items to their order to meet the free-shipping threshold.

• Fold shipping costs into product costs. Another

option is to “hide” the costs of shipping by increasing

product costs, thereby having consumers unwittingly pay

for their “free” shipping. This is a risky strategy, though,

since cost-conscious shoppers may opt to make their

purchases from a lower-priced competitor.

• Flat fee. Some retailers opt for a “flat-fee” approach,

whereby all orders ship for the same price. Yankee

Candle, for example, charges a flat $5.99 rate for all

orders under $100, with free shipping for orders above

$100. Under a flat-rate model, a shipper essentially loses

money on shipments that cost more than the charged rate

to ship, while it makes money on those that cost less.

The goal is to find the price point at which losses are

offset by gains.

• Use free shipping as leverage. The Wall Street Journal

reports some retailers have used the allure of free

shipping as a way to persuade consumers to take certain

actions in order to qualify. These actions can include

opting for a slower method of delivery or adding extra

items to their shopping cart.

A smaller-business manager may also find some comfort

in knowing that even for megaretailers like Amazon.com

Inc., Best Buy Co., and Gap Inc., free shipping comes at a

price. The three retailers recently announced increases to

the minimum purchase amount required to qualify for free

shipping. “Chains have been seeking to dial back the cost of a

perk they had used aggressively to encourage shoppers to use

their websites,” The Wall Street Journal reported.

Challenge #2: Meeting Customer Expectations

Page 7: Top Logistics Challenges for Small- and Medium-Sized

7©2016 Purolator International, Inc.

Top Logistics Challenges for Small- and Medium-Sized Businesses

While few business managers dispute the important role

technology can have in adding efficiency and enabling new

processes, many feel intimidated by the sheer number of

options available and by the price tags that can accompany

an investment in technology. Research among small-business

owners conducted by Brother International Corporation found

64 percent of business owners feel “overwhelmed” when it

comes to technology, with 59 percent saying they felt they had

“no one to turn to” for tech guidance.

In fact, there are plenty of technology professionals who would

be delighted to help a business find the right solution, at the

right price point. With so many options from which to choose,

a business needs to ensure that it decides on a technology

solution that will (a) solve its problem and (b) integrate with

other technology systems. In other words, a low-cost inventory

management software system that cannot be linked with a

transportation management system won’t be of much value

in improving efficiency. And neither would it be helpful if that

inventory management system lacked certain functionality that

was critical to your business.

In determining the best course forward, a business will find it

has multiple options:

Enterprise solutionsMany businesses – usually larger organizations – choose an

enterprise solution whereby an entire organization depends on

a single system but uses only the part that relates directly to

its function. The accounting department, for example, would

use only the accounting functionality of the enterprise solution.

An enterprise solution can be customized to meet a business’s

unique needs but, in general, will include functionality for

key departments, including billing, ordering, scheduling,

manufacturing, sales, compliance, and customer relationship

management. Enterprise solutions, although costly, are

generally less expensive than having each department

maintain its own operating system. Plus, enterprise systems

have the benefit of providing a high degree of visibility since all

data exist on the same platform.

Suite solutionsAnother option is to integrate a suite solution, whereby a

business offers a selection of software solutions; each is

targeted at a specific part of a business but can be linked for

real-time data sharing and visibility. A suite solution, while

not as expansive as a stand-alone software package, can

generally be relied upon to provide efficient, intuitive, and

powerful solutions. Another important advantage is the built-in

integration of all component parts. In other words, a suite’s

warehouse management software will be able to sync with its

accounting software since the two packages were designed

and built by the same company.

Challenge #3: Investing in the Right Technology

Challenge #3: Investing in the Right Technology

Page 8: Top Logistics Challenges for Small- and Medium-Sized

8©2016 Purolator International, Inc.

Top Logistics Challenges for Small- and Medium-Sized Businesses

Cloud solutionsTechnology delivery and accessibility have been significantly

transformed in recent years by the explosive growth of cloud

technology. Through the cloud, a business essentially “rents

space” on a web-based service provider so that its entire

IT function exists on that external server. This means that a

business no longer operates its own internal systems, software

licenses, or IT functions. Instead, employees – and anyone else

authorized to use that business’s cloud – can log on from any

computer from anywhere in the world with remote access.

Businesses that have craved the ability to easily on board

vendors, to share data with suppliers, or to have cross-

company document-sharing capability are finding cloud

computing to be an ideal solution. Among the benefits are

the following:

• Cost containment – a business pays only for what it needs

• Scalability – cloud computing allows scalability so that

businesses can easily adjust their storage and usage

capacity based on their precise needs

• Accessibility – because all data are stored on a web-

based platform, an employee or other authorized user will be

able to access the system remotely, using any computer with

Internet access

For those businesses still using Excel spreadsheets, paper-

based orders, and invoices, transitioning to a technology-

based solution will force a tremendous cultural change

within the organization. Even for businesses that already

have a technology system in place, switching to a more

comprehensive solution can be disarming to an organization

already set in its ways.

An investment in technology will prove to be money well spent

in terms of added efficiencies and capabilities. According

to research by the University of Tennessee’s Global Supply

Chain Institute, businesses that have implemented technology

systems report the following:

• 25 percent savings in processing orders

• 20 percent savings by processing invoices electronically

• Invoices processed an average of 4.5 days faster

• 69 percent cited enhanced ability to respond more quickly

to change

• 68 percent reported that clients said they were easier to

do business with

Challenge #3: Investing in the Right Technology

Page 9: Top Logistics Challenges for Small- and Medium-Sized

9©2016 Purolator International, Inc.

Top Logistics Challenges for Small- and Medium-Sized Businesses

Proper inventory management is the holy grail for businesses

eager to find the right balance between customer demand

and proper stock levels. Too much inventory and a business

risks excessive carrying costs and high levels of unsold

merchandise. But too little inventory and a business risks not

being able to meet customer demand. A survey by Stitch Labs

of small- and medium-sized businesses found “out of stock

items” is the number one inventory mistake that leads to

lost customers.

Managing inventory becomes even trickier for businesses

that have implemented omni-channel distribution strategies,

whereby customers have multiple options for pickup locations

and schedules. The result has been a change in inventory

practices, whereby retailers prefer to store “just enough”

inventory in warehouse locations close to customer bases.

This has led to increased demand for warehouse capacity,

especially in urban areas. According to research by The Wall

Street Journal, warehouse occupancy is at a 30-year high,

with more than 90 percent of existing space filled. “Retailers

have been renting warehouses faster than developers can

build them, as they race to build infrastructure to fulfill surging

online orders,” the paper reported. “The latest trend of opening

smaller distribution centers near cities to improve delivery

times and accept returns is driving rates into the low single

digits in some areas.”

This need to keep inventory closer to consumers presents

a special challenge for smaller companies that simply lack

the resources – or the volume – to maintain a network of

warehouses. But, with the right logistics partner, a business

won’t have to take on additional warehouse costs. Among the

solutions a capable provider can offer are the following:

• Access to warehouse network. An experienced

provider will have in place a comprehensive distribution

network that includes strategically located warehouses

to which its customers can have access. This allows

a business to store inventory where it is needed, and

flexibility to meet cyclical demand, without having to lock

in long-term warehouse agreements of its own.

• Shared assets. A growing number of businesses

are signing up for services once unthinkable: sharing

warehouse space or truck space with competitors,

especially in instances where inventory is scheduled for

delivery to the same retailer.

Challenge #4: Managing Inventory

Challenge #4: Managing Inventory

Page 10: Top Logistics Challenges for Small- and Medium-Sized

10©2016 Purolator International, Inc.

Top Logistics Challenges for Small- and Medium-Sized Businesses

Omni-channel strategies (and their emphasis on fluid

inventory, and flexible shipping and delivery options) will

necessarily force deep analysis of existing distribution

and transportation processes. Top considerations include

the following:

• eCommerce-driven surge in multiple small-package

shipments, each in need of delivery to a private residence

or small business, often located in remote regions.

• Challenge of having “just enough” inventory in the right

place at the right moment to meet in-store sales, as well

as “ship-to-store” and “ship-from-store” commitments.

• Pressure to adapt to the new world order in which

customer preferences are driving businesses’ supply

chains. This includes expectations for fast and free

delivery service, with little tolerance for late arrivals.

• Pressure for retailers, who often do not have enough

distribution centers or the bandwidth to absorb the costs

of offering free shipping.

The challenge then is for businesses, operating on razor-

thin margins, to offer Cadillac levels of service for very little

cost to their customers. “Most retailers are trying to figure

out the eCommerce model,” says Huw Thomas, CEO of

Alberta-based mall developer Calloway REIT. “The delivery

component of the eCommerce equation is a very, very

expensive piece of the puzzle because, in essence, you’re

matching the prices that you have in a physical store, but

you’re delivering for free sometimes very substantially sized

products to a consumer.”

The good news? It can be done. Among the current

“best practices” businesses are using to meet today’s

transportation/distribution challenges are the following:

Rethinking the TMS. Flexibility, scalability, and adaptability

– these three words are often used to describe critical

components of an omni-channel transportation management

system (TMS). Today’s successful supply chain allows a

business to schedule transportation based on its needs

rather than be locked into a rigid “one-size-fits-all” service

schedule dictated by its traditional service provider. Instead,

today’s TMS has many moving parts, with technology being

the glue that holds everything together. One industry expert

defines today’s TMS as a “holistic” system that “allows

retailers and manufacturers to gather facts about current and

future orders, and then make the best possible judgment that

combines low price with high service. As business conditions

change, this process is repeated to ensure that shippers are

always making the right choice for the current environment.”

Shared assets. Once unthinkable, a growing number of

businesses are taking control of transportation costs by

reaching agreements with companies with similar supply

chain needs – usually competitors – to share distribution

centers, truck space, and other assets. The practice, known

as “horizontal collaboration” or “collaborative shipping,”

allows companies to reduce costs on distribution, delivery,

and even backhauling. Among the companies currently

collaborating: U.S. chocolate manufacturers the Hershey

Co. and The Ferrero Group in North America have shared

warehousing, transportation, and distribution processes and

assets since 2011.

Last mile. With eCommerce requiring delivery to

consumers’ homes and local business addresses, critical

last-mile delivery capabilities have been in the spotlight.

According to the Financial Times, last-mile services can

account for 75 percent of total logistics costs. Last-mile

services can be exacerbated by the difficulty in reaching rural

or remote addresses. Once an address is identified, it may

be necessary to make multiple delivery attempts if no one is

available when the initial attempt is made.

Challenge #5: Distribution/Transportation Considerations

Challenge #5: Distribution/Transportation Considerations

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11©2016 Purolator International, Inc.

Top Logistics Challenges for Small- and Medium-Sized Businesses

Challenge #6: Returns Efficiency

Traditionally regarded as a “necessary evil” by most

businesses, today an efficient returns management process

is an essential part of the overall customer experience.

Consider these facts: Research by ComScore found 85

percent of consumers said they would not buy again from

a retailer if the returns process were not convenient, while

95 percent said that they would return to a retailer with a

convenient returns policy.

It’s important then for a retailer – regardless of size – to

adopt a returns policy that prioritizes efficiency and service.

While free shipping is certainly important to a customer-

focused returns policy, so are a number of other factors,

including the following:

• Seamless resolution. Once your customer returns

a product, what happens next? If the product is

undamaged, it can be returned to inventory. But what

is the process for that, and how will your customer be

credited for the return? Does the item need to be sent

out for a repair and returned to the customer? Is it under

warranty? Can the product be refurbished and possibly

sold on a secondary market such as eBay or an outlet

store? And most important, who is going to manage this

process? Many smaller businesses simply do not have

the resources to take on the significant task of returns

management, and they entrust this specialized skill to an

experienced logistics partner.

• Flexibility in scheduling. Build a returns management

strategy that gives you the level of service you need. Do

you need to receive returns on a daily basis, or would a

weekly or even biweekly schedule be more appropriate

for your business?

• Centralized returns centers. Where exactly do you

want your returns delivered? A growing trend is to

process returns at a dedicated returns center rather

than via a traditional distribution center. For one thing,

most distribution centers are geared toward outbound

shipments rather than processing individualized returns.

A dedicated returns center allows businesses to focus

resources and build best practices.

• Convenient and well articulated. Take steps to

ensure your returns policy is well publicized and simple

to understand. Include information prominently on your

website, and insert a returns label and information

inside the shipping carton. You might also consider a

technology-based Returns Material Authorization (RMA),

whereby customers must contact your business, either

through an 800 number or a website, to notify you of

their intention to return a product and to receive an

RMA number.

• Tracking and visibility. Allowing visibility into the

process can give customers direct information about the

status of their return and some degree of explanation

should a delay occur.

• Sustainability. Since roughly 80 percent of returned

merchandise is not defective, most products are eligible

for sale on a secondary market, including a retail outlet,

an overstock store, or a website (i.e., eBay).

A well-managed returns process will enable a business to get

ahead of the game, to know exactly what products are being

returned and when, to have inventory in place to quickly

offer replacements, or to perform repairs. And perhaps most

important, a well-executed returns program will allow 24/7

insight and tracking capability for customers.

Challenge #6: Returns Efficiency

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12©2016 Purolator International, Inc.

Top Logistics Challenges for Small- and Medium-Sized Businesses

Bringing it all Together – Choosing the Right Logistics Provider

A business will learn quickly that its choice of logistics provider

will directly impact its success in implementing critical supply

chain changes. It can be difficult though to select the right

logistics provider. With so many options from which to choose,

how can a business possibly decide which solution is best

and which logistics provider can provide the top-level service

it needs?

Following are a few considerations to keep in mind when

considering the best logistics partner to add to your supply

chain team:

• Single-source/comprehensive solution provider. Given the complexities of today’s omni-channel supply

chains, it is imperative to have a logistics partner that can

offer complete management of the entire process.

A qualified logistics provider will offer comprehensive

services ranging from order management, inventory

management, warehousing, kitting, picking, labeling/

shipment preparation, transportation, delivery, and

all back-end functions, including record keeping and

compliance mandates. And a comprehensive provider

should also provide reverse logistics services to process

merchandise returns.

• Experience. There is no substitute for experience.

And with so many providers from which to choose, it’s

essential for a business to carefully research a logistics

provider before signing on the dotted line. An experienced

provider will have documented experience in planning

and executing omni-channel logistics plans for other

businesses. Unless a provider has been through the

process, and knows firsthand what to expect, any claims

of “expertise” should be met with skepticism.

• Customization and collaboration. It’s essential to

view your logistics provider as a partner. You want to build

a relationship based on mutual understanding of your

business objectives, priorities, and needs. This information

sharing can only happen through many, many direct

conversations and ongoing open lines of communication.

A qualified logistics provider will use this information to

create a customized solution to meet your specific needs.

• Customer service. Equally important is a high level of

customer service. Services should include a dedicated

representative with whom you have a personal relationship

and direct contact information. Your customer service

representative should be fully aware of your supply chain,

provide you with regular updates, and know about – and

resolve – any snafus or changes before they become

problematic.

• Scope of service. Today’s logistics providers are able to

offer a range of service options that can be customized to

fit a business’s precise needs. If you find that a logistics

provider is forcing you to adapt your needs to meet its

capabilities, it’s a good sign that the carrier is not up to

the job.

Bringing it all Together – Choosing the Right Logistics Provider

Page 13: Top Logistics Challenges for Small- and Medium-Sized

13©2016 Purolator International, Inc.

Top Logistics Challenges for Small- and Medium-Sized Businesses

ConclusionSmall- and mid-sized businesses face unprecedented

challenges in adapting their supply chain practices to

meet changing customer expectations. Today’s consumer

expects levels of flexibility and efficiency that were previously

unthinkable. Smaller businesses have no choice but to find a

way to adapt.

The first step is to consult with an expert – a logistics partner

who can help find an affordable and workable solution. Many

smaller businesses are so busy managing their day-to-day

operations that they have no idea about the tremendous

innovation that has taken place within the logistics industry.

One Ohio-based manufacturer of garden equipment, in fact,

had grown so accustomed to the transportation fees charged

by its long-term provider that when it agreed to consider a

bid from another firm, its response was: “We didn’t think the

numbers were real, they were so low,” the manager said in a

case study.

Logistics efficiencies and innovative solutions are happening

every day. And as customer preferences continue to evolve,

smaller businesses may be pleasantly surprised at how

effortlessly they are able to meet those expectations.

Conclusion

Page 14: Top Logistics Challenges for Small- and Medium-Sized

14©2016 Purolator International, Inc.

Top Logistics Challenges for Small- and Medium-Sized Businesses

Purolator is the best-kept secret among leading U.S. companies who need reliable, efficient, and cost-effective shipping to Canada. We deliver unsurpassed Canadian expertise because of our Canadian roots, U.S. reach, and exclusive focus on cross-border shipping.

Every day, Purolator delivers more than 1,000,000 packages. With the largest dedicated air fleet and ground network, including hybrid vehicles, and more guaranteed delivery points in Canada than anyone else, we are part of the fifth-largest postal organization in the world.

But size alone doesn’t make Purolator different. We also understand that the needs of no two customers are the same. We can design the right mix of proprietary services that will make your shipments to Canada hassle-free at every point in the supply chain.

For more information:Purolator International

1.888.511.4811

[email protected]

www.purolatorinternational.com

http://blog.purolatorinternational.com

Purolator. We deliver Canada.

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15©2016 Purolator International, Inc.

Top Logistics Challenges for Small- and Medium-Sized Businesses

References

References

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Goldstein, Phil, "Collaboration Technology Makes Business Supply Chains More Efficient," BizTechMagazine, May 23, 2016.

Holcomb, Mary C., PhD, Professor, University of Tennessee, “24th Annual Study of Logistics and Transportation Trends: Serving Up Friendly Freight,” Logistics Management, September 1, 2015.

“Improving Product Returns Presents Biggest Opportunity for Retailers Wishing to Increase Online Shopping Satisfaction,” ComScore, June 4, 2012.

Lance, Brian, “What is the Most Frequent Cause of Inventory Fulfillment Issues?,” Stitch Labs, March 6, 2016.

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Mandel, Janice, "Cutting Your Distribution Costs," PriceWaterhouse Coopers.

Phillips, Erica, “Retailers Lease Warehouse Space at Record Pace,” The Wall Street Journal, July 12, 2016.

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“State of Small Business Report,” Wasp Barcode Technology, 2016.

Stevens, Laura, “Free Shipping Crowds Out Small Retailers,” The Wall Street Journal, April 27, 2016.

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“What Drives Online Consumer Decisions in the U.S. and Canada,” Stony Brook University Center for Survey Research, May 2015.

Williams, David K., "What is the Ideal Method to Charge for Shipping?," Forbes, May 15, 2013.