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Consumer Goods Logistics Blog


8 Tips for Efficient Omnichannel Distribution

Posted by Ben Waters, Distribution Center Manager, Kane Logistics/Atlanta on March 26, 2020

As the percent of online sales grow and as the line between web and traditional retail store fulfillment blurs, E-retailers and brands need to assess their fulfillment capabilities and those of their 3PL omnichannel distribution partners.

Following are 8 tips to maximize efficiency in an omnichannel environment. 

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Topics: Supply Chain Challenges, Consumer Goods Logistics

Why You Should Move Secondary Packaging Closer to the Consumer

Posted by Alex Stark on January 23, 2020

Much of the cost and complexity in CPG supply chains happen post manufacturing.

Think about it. You might have one product – a potato chip – that gets packaged in dozens of ways. Historically, this final packaging has been handled as a discrete supply chain function by contract packaging companies. But an increasing number of CPG companies are recognizing the huge cost advantages – as much as 30% of combined warehousing, packaging and freight costs – of performing secondary packaging in the distribution center.

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Topics: Consumer Goods Logistics, Warehouse Operations

The KANE story – in the style of Rudolph the Red-Nosed Reindeer

Posted by Alex Stark on December 27, 2019

It’s the evening of Christmas day. I’ve retreated to my home office after enjoying an outstanding day filled with family, great food, and the sharing of presents. Being a supply chain wonk, I’ve already pondered the Christmas magic of how all these goodies find their way to their final destinations. Yes Virginia, it is all about logistics.

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Topics: Supply Chain Challenges, Consumer Goods Logistics, 3PL Outsourcing

3PL Metrics: Do Retail Suppliers Measure Success the Wrong Way?

Posted by Stan Schrader on September 19, 2019

If you are a user of third-party logistics (3PL) services, you know that 3PLs tend to have a metric for just about everything – productivity, accuracy, timeliness, costs….

3PL metrics are used as a barometer of performance and to inform continuous improvement programs. But should these same numbers be used to measure the success of your 3PL/Client relationship?

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Topics: Consumer Goods Logistics, Warehouse Operations, 3PL Outsourcing

Warehouse Labor: The 'Real' Cost of Warehouse Worker Turnover

Posted by Veronica Donchez on May 21, 2019

$7,000 dollars to replace a warehouse worker.

Sound like a lot? Well, that could be the low end. 

Calculating the traceable costs, the cost of warehouse worker turnover can reach 25% of salary. Using an average salary for warehouse workers of $28,000.00 (according to Salary.com), $7,000 is about where you end up. But some experts calculate the real costs, when you factor in lost productivity and other indirect impacts, at 150% of salary. Either way, turnover in the warehouse can be a major drain on profits.

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Topics: Consumer Goods Logistics, Logistics Labor Management

10 Strategies to Reduce CPG Logistics Costs

Posted by Alex Stark on April 25, 2019

Consumer packaged goods (CPG) companies face a constant battle for market share and retail shelf space. Price points are a key weapon in this battle and, increasingly, companies rely on lean CPG logistics operations to provide a cost advantage.

How is your company responding to this challenge? With incremental improvements to existing distribution processes? Or, are you exploring logistics strategies that alter current processes and the way you work with retail
customers?

A mix of both is optimal, with new strategies offering the best potential for breakthrough gains and cost savings, particularly for mid-tier suppliers struggling to compete with much larger brands. Following are 7 strategies for CPG manufacturers to consider. Some new, some tried and true.

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Topics: Consumer Goods Logistics

The ‘Real’ Cost of a Warehouse Associate

Posted by Veronica Donchez on April 23, 2019

Other than inventory, labor is your biggest warehousing expense.  And that warehouse labor… well, it's costing you a lot more than you may think. 

According to salary.com, the average warehouse associate's salary is about $28,000.  But many related expenses combine to make the total cost to your company for that full time employee much higher.  Let's take a look at these additional warehouse labor expenses.

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Topics: Consumer Goods Logistics, Logistics Labor Management

5 ways to reduce logistics costs in consumer goods distribution

Posted by Alex Stark on March 19, 2019

Consumer packaged goods (CPG) companies are getting squeezed. On one side, your retail customers want smaller replenishment orders more frequently. At the same time, your own company is pressuring you to reduce logistics costs.

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Topics: Consumer Goods Logistics, Food and Beverage Logistics

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