How Communication Between Distribution & Transportation Unlocks 3PL Success
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Kenco: Multiple Services, One End-to-end Solution
Simplifying It All With an Integrated 3PL
Good Communication Avoids Unexpected Costs
Communication Starts with Real-time Visibility
TABLE OF CONTENTS
Making Proactive Decisions
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Effective Communication Between Transportation and Warehouses Drives 3PL Excellence
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To keep up with the pace of commerce and customer expectations, every player in the supply chain needs to operate in lockstep with one another. Delays or miscommunications at any point can trigger a ripple effect, causing significant issues further downstream. This level of coordination becomes incredibly important when it comes to the hand-off between transportation and warehousing providers. These two significant players in the supply chain need a seamless line of communication to ensure that all inbound and outbound shipments are managed properly (meaning: on time, at cost, and up to quality standards) and ultimately arrive at their final destinations.
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The first step to good communication between transportation and warehousing providers is having real-time visibility. In the most simple terms, real-time visibility answers an important question: What exactly is arriving at the warehouse, and when?
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Armed with this intel, supply chain managers can unlock better, more proactive decision-making across many facets of the supply chain, while avoiding unnecessary costs and penalties.
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To the fullest extent, an integrated supply chain gives that ‘control tower’-like visibility that tells me exactly where my inventory is—whether it's on a truck, whether it's in a yard, whether it's in a facility, whether it's in process to go outbound.”
—Felix Vicknair VP of Supply Chain Solutions
Why Supply Chain Visibility Is Good For Your Bottom Line
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Being overly reactive in logistics often leads to trouble and failure, so the key to success is to be as proactive as possible. The right visibility and communication between transportation providers and warehouses can unlock more proactive decision-making that can prevent issues, allow more flexibility, reduce costs, and improve customer satisfaction. Let’s take a look at how better visibility and communication can positively impact these critical areas: staffing, customer relationships, strategic route planning, and intra-warehouse operations.
Improving Staffing Efficiency
Keeping Customers Informed
Strategic Route Planning
Optimizing Warehouse Operations
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Where we ultimately want to go with a fully integrated supply chain is to understand the timing around realities so we can plan ahead and make better decisions. In an integrated supply chain, we have real-time visibility on the timing of a shipment and what's on that shipment. And as things happen, we’ve got the ability to make better decisions to make sure that my supply chain can function effectively.
End customers also benefit from real-time visibility between warehouses and transportation providers. When unforeseen delays or issues occur, proactive communication is key. As a consumer, think about the last time you’ve patiently waited for a delivery, only to have it delayed without any updates as to where your package is or when you should be expecting it. It’s a frustrating experience that can have a significant impact on a brand’s reputation. But with accurate shipment data, companies now have the opportunity to open up a dialogue with customers to inform them of the status of their shipment and even suggest alternative solutions. Proactive communication facilitates a better experience that keeps customers coming back.
Not only can transportation data help make tactical decisions related to individual shipments on a day-to-day basis, it can shed light on more macro-level trends and patterns that can impact the supply chain. For example, road construction projects between a plant and distribution center, weather patterns during certain times of the year, or tight labor markets can cause consistent shipping issues that may warrant a new route, additions to safety stock levels, or other decisions to be made.
Knowing exactly what inventory is arriving on a shipment is an important piece of the visibility puzzle for warehouses. It allows the warehouse to have a plan for how to bring the inventory in and through the facility in the fastest, most efficient way possible. Say you have a critical item that needs to go out on an outbound truck. The item happens to be sitting on a loading dock at the facility, but no one realizes this because the warehouse can only “recognize” the item when it has been scanned by the warehouse management system (WMS). So, in this scenario, the outbound truck is now delayed because the shipment was scanned hours later (even when it was sitting at the facility the whole time!). Imagine how this scenario could’ve played out differently had the warehouse had a real-time line of sight into the whereabouts of that particular item.
When it comes to staffing, warehouses have the opportunity to maintain higher productivity and efficiency, while minimizing overtime costs. Consider a scenario where an inbound shipment is delayed by four hours, and is now arriving in the afternoon instead of in the morning. Knowing about this delay ahead of time allows operations managers to redirect staff to support other important functions in the meantime, instead of waiting around with nothing to do while the truck arrives.
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Effective communication between transportation and warehouses can help with scheduling coordination, and avoid situations where costly storage charges, demurrage and detention fees, or penalties accrue.
In a scenario where there are multiple providers, there can be a lot of back-and-forth finger pointing about whose fault it was if a truck arrives late, for instance. Partnering with a single company can be extremely beneficial because there’s only one company and a single point of contact responsible for making sure that the flow happens.
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Speed and timing is critical in logistics, so when contracts aren’t met, unexpected costs can start to rack up for both transportation providers and warehouses. For example, a truck may have arrived at the facility on time, but if the driver failed to drop off their load because all of the docks were occupied, they may be delayed in their next shipment and receive a fine from their customer. The complexity (and fees) can compound when dealing with a large facility that has 50 or so docks receiving 100 or more shipments per day.
What is an integrated 3PL?
An integrated 3PL like Kenco offers a complete and holistic approach to logistics management, combining services like warehousing and transportation into a cohesive solution. Not all 3PLs are integrated 3PLs.
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There may be some merits to having your supply chain operations managed by multiple, unique providers, but if your company manages a high volume of orders or is ready to scale, an integrated 3PL can promise a more streamlined and cost-efficient approach in the face of today’s complex logistics challenges.
Simplifying it all with an INTEGREATED 3PL
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They Can Flex to Meet Unique Data Requirements
Every customer’s technology stack is set up differently; some customers may have their own proprietary systems or prefer to use a specific WMS. Because information needs to flow freely between the different entities, an integrated 3PL should have the flexibility to integrate with the customer’s systems if needed so that everyone has the right data to do their jobs.
Technology is Core to the Operation
To drive an efficient operation, an integrated 3PL needs to be on the cutting edge of technology. Why is that? Think back to the real-time visibility requirement. Achieving this level of visibility is no easy feat, and is often the result of years-long, heavy investments in technologies like advanced tracking, telematics systems, data integration, dashboards and visualization tools, among other systems and processes. Without these investments, that unified view is simply a pipe dream.
They Focus on Building a True Partnership
Integrated 3PLs like Kenco strive to be a true, strategic partner, not just a service provider. That’s why we approach each engagement with a clear understanding of our customers’ priorities and desired outcomes, and make sure through regular communication (whether daily, monthly, or quarterly) that we are delivering to their expectations.
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Our integrated solutions allow us to have greater control and visibility over the supply chain compared to alternative setups where multiple providers may be involved. When you allow Kenco to be your single point of contact for all your logistics needs, you open the door to seamless operations and lower costs—not to mention peace of mind and confidence.
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20-26%
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Average Inventory Accuracy
Average MHE Cost Reduction
Average On-time Shipping
Average Order Accuracy
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At Kenco, we offer an integrated logistics solution that spans warehousing, fulfillment, distribution, and transportation. Our tools and technology allow us to see and communicate across these key functions of the supply chain for more proactive decision-making across staffing, customer communications, transportation route planning, and warehouse operations.
2024
As a leading third-party logistics (3PL) provider, Kenco is dedicated to being its clients’ most trusted and preferred supply chain partner. Driven by a relentless commitment to innovation, Kenco delivers integrated logistics services - including distribution, transportation, and material handling equipment—to support complex supply chains at a national scale, while maintaining the agility and personalized attention of a local partner. Kenco empowers their distinguished team members to deliver excellence, ensuring clients receive exceptional service and reliable results every day. With a passion for progress and a focus on partnership, Kenco proudly sets the gold standard for supply chain excellence through service, innovation, and continuous improvement.
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