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Your Distribution and Your Supply Chain based in Warren, Michigan

Distribution is an interrelated mechanism of resources, facilities and transportation systems that moves goods from producers to consumers. A distribution network is the system a company uses to get products from the manufacturer to the retailer. A fast and reliable distribution network is essential to a successful business because customers must be able to get products and services when they want them. Now you have your distribution and your supply chain based in Warren, Michigan.

Distribution in Warren MichiganAfter over 25 years of experience, we know that effectively understanding the correlation between distribution and logistics is critical to a company’s bottom line.  In general, logistics refers to the distribution process within the company whereas the supply chain includes multiple companies such as suppliers, manufacturers, and the retailers.

While some companies manage their own logistics, others find it more efficient to outsource processes to specialized contract logistics companies to manage their logistics for them. Your contract logistics company like TVI Logistics becomes a part of your distribution network and a key player in the success of your supply chain.

Questions?

  1. Does outsourcing logistics functions offer companies competitive advantages?
  1. What sort of logistics functions can a company outsource?
  1. How do contract logistics companies work with my organization?
  1. How can I choose the right contract logistics company for my business?
  1. Doesn’t outsourcing logistics functions add performance risk to our business?

 

Possible Solutions

  1. Outsourcing logistics is one of the most efficient ways for a company to get the best value for its logistics dollar and increase performance efficiency by staying focused on its core business elements.

Supply chain support in WarrenEXAMPLE:  Billy’s Vacuums, LLC makes household and commercial vacuum cleaners.  Billy’s processes are performed in a small well designed production facility that can produce 1000 units per month.  Billy’s outsources its logistics functions for storage, distribution and order fulfillment to, Vista Logistics, a local Third Party Logistics (3PL) provider.  This makes Billy’s able to focus on making vacuum cleaners, what they do best.

Vista picks up finished products and repair/replacement parts from Billy’s on a weekly basis.  Vista receives the completed vacuum units in sealed point of sale cartons.  The repair/replacement parts are received in parts bins of like items in various counts ranging from 25 to 100 pieces.

The finished vacuums are the packaged by the 3 PL according to shipment requests from retail merchants.  Smaller merchants may request single quantities and larger retailers may request multiple quantities to be sent to multiple store locations and big box stores may request shipments be directed to their distribution center based upon point of sale replacement information.

Repair/replacement parts, such as brushes, vacuum brushes and tools and vacuum belts, are removed from the bins and placed in point of sale packaging, and stored for fulfillment of orders from retailers or consumers as needed.  Some of these orders are for retail stock and some of these orders are for warranty replacement.

Billy’s Vacuums LLC would need to add a lot of cost to their vacuum if they were to perform the 3PL function on their own:

  • Warehouse space for inventory storage
  • Warehouse personnel
  • Order processing and fulfillment services
  • Packaging Department
  • Warranty Claims processing services

These functions are not what Billy’s Vacuums does, they make vacuum cleaners. By outsourcing Billy’s can focus on their core capabilities and not make capital investments in real estate, personnel and services that uses resources that could be better dedicated to improving vacuum cleaner production so that they can maintain or increase their market share. The 3PL that services Billy’s needs is an expert in the supply chain business and can provide these functions below any cost that Billy’s can achieve.  3PL outsourcing is a win-win for Billy’s and Vista

  1. As seen in the example above, some of the supply chain functions that are outsourced to contract logistics firms are:Supply chain support Michigan
  • Storage
  • Staffing
  • Picking
  • Packaging
  • Order Processing
  • Fulfillment
  • Sorting
  • Containment
  • Delivery
  • Shipping

Outsourcing all or some of these supply chain functions may make sense for your business to keep pace with ever changing market trends, transportation regulations and resource costs.

  1. Contract logistics companies should work seamlessly with your company’s internal operating requirements. Contract logistics is a low cost extension of your company’s capability, offering state of the art supply chain solutions that maximize your company’s flexibility and ability to meet customer and market needs.  Contract logistics companies offer just in time logistics solutions that increase efficiency and decrease waste by delivering goods only as needed in the production process and reducing inventory costs to manufacturers.

If your organization is able to accurately forecast demand, then a just in time inventory strategy may be right for you.

  1. Choosing the right contract logistics firm for your business is as simple as understanding your own business and your customers. If you understand the market for your goods, you simply need to match the contract logistics firm to your needs. Not all logistics firms are equal.  Prepare a list of requirements and interview firms to see which offers the best matching capabilities and experience to your needs.  Some items to consider are:
  • Volume of Inventory
  • Volume of Shipments
  • Customer Service Needs
  • Do you require Warranty Management?
  • Reverse Fulfillment (That portion of the supply chain that moves returned foods back from the customer)
  • Disposal of Out of Date Inventory

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  1. Risk is always a consideration for any change in business processes. It is important to reduce or eliminate risk through a well thought out design of your supply chain and all of its objectives.

Making the best choice when outsourcing your supply chain needs should 1.  Enhance your company’s performance and 2.  Improve competitiveness in the marketplace and 3. Should measurably improve its bottom line.

If your analysis meets all three of these objectives, risk will not be a consideration.
By having an efficient supply chain and proper logistical procedures, a company can cut costs and increase efficiency. On the other hand, a company with poor logistics will fail to meet customers’ expectations and see its business suffer.

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3 Key Questions to Ask When Choosing a Air Freight

Choosing a freight forwarder is one of the most important business decisions faced by growing and successful businesses today; as new markets and opportunities open up you need a logistics partner who will deliver goods safely and on-time to a wide variety of destinations, both national and international.

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Successful Businesses Use Third Party Warehousing

By using warehousing to handle the logistics aspect of your business, you can allow your resources to be used to facilitate more business growth instead, while knowing that your product is being properly handled and shipped to your customers. Successful Businesses Use Third Party Warehousing, by putting this priority in the hands of a third party that is specialized in handling it, you can allow your focus to be on the development of your business.

Freeing Up Time and Resources

In order for a business to succeed, there are many different facets that need to be developed. From product development to manufacturing, marketing, distribution, logistics, customer service and more, it can simply overwhelm a business to attempt to handle all of these aspects in-house. By delegating the responsibility of logistics over to a third party, valuable time and resources can then be spent on building more or better products and marketing those to potential customers. Processing orders needs to be a priority, as the product needs to reach a customer as soon as possible.

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TVI Logistics’ Community Involvement, Leadership & Influence

TVI Logistics’ Community Involvement, Leadership & Influence is a long-standing corporate objective and strives hard to make a difference. To this end, we are involved with multiple entities within our community to do our part in facilitating positive change. This includes:

Association of U.S. Army

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TVI Logistics, Woman-Owned Logistics And Transportation Michigan

Ms Constance BlairFor over 25 years, TVI Logistics has provided custom fulfillment and shipping solutions to clients around the world. Constance Blair is the founder of TVI Logistics, Woman-Owned Logistics And Transportation Michigan and has been an integral part of our ongoing success and we are proud be a certified woman/minority/service disabled veteran-owned business. 

Ms. Constance Blair serves as Chief Executive Officer and President of Technology Ventures, Inc., Evergreen Ventures, TVI Logistics & TVI Supply. She served as liaison, at the Pentagon, between Army and Air Force staff and DOD employees with the members of diplomatic staffs.

Under Ms. Blair’s leadership, TVI has earned a reputation for excellence and innovation and has received National recognition and has been featured in numerous publications. In fact, TVI was recognized as the #9 Veteran owned company in the US.

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TVI Logistics Is Invited To Visit South Korea To Meet Automotive Suppliers

fsTVI Logistics Is Invited To Visit South Korea To Meet Automotive Suppliers and expresses great gratitude to the Government of South Korea for inviting us to their remarkable nation to specifically meet with Korean automotive suppliers in the city of Seoul.

The line up of diligent companies in Goyang was impressive and extremely well-organized. Our team was delighted to teach suppliers how to facilitate logistics between US and Korea, while reducing total landed costs. We made great business connections and are very pleased to serve as a helpful resource to Korean auto suppliers to facilitate imports and exports through the use of our Public Foreign Trade Zone (FTZ) and leveraging our cost effective transportation rates. Our bonded warehouse, re-packaging, distribution and assembly services can certainly prove useful to Korean auto suppliers entering the US market.

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TVI selected for this year’s FCAInnovate hosted by Fiat Chrysler Automobiles

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IMG_0091 (1)On Sep. 20th, TVI Logistics had the pleasure of participating in FCAInnovate 2017. We were 1 of 12 companies in the automotive industry selected to present at this year’s session hosted by Fiat Chrysler Automobiles!

Our team had the extraordinary opportunity to highlight our value proposition and innovative logistics solutions to decision makers of over 150 Tier High Focus suppliers, senior managers and buyers, Tier 1 M/WBE and Veteran-owned businesses.

This upbeat “Shark-Tank” style atmosphere enabled companies to showcase their business model and products in a fresh and creative way, within a strict and exciting five-minute-pitch timeline.

We applaud the FCA Purchasing Team for this creative project which proved to be very convenient, direct and effective!

#Innovation #Automotive #Michigan #FCA #FCAInnovate #Suppliers

 

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TVI hosts a import/export seminar at Chrysler Headquarters

TVI hosts a import/export seminar at Chrysler Headquarters

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This month, the TVI Logistics team had the opportunity to host a seminar teaching automotive suppliers  “How to Reduce Your Total Landed Costs” at the Fiat Chrysler Automobiles Headquarters (FCA) located in Aurburn Hills, Michigan.

This hour-long session was lead by our Director of Business Development, Axel Cooley, where she highlighted how TVI can serve to significantly decrease Customs Duties & Fees, Customs clearance time, and inventory costs to improve profitability. A combination of Top Level Purchasing / Supply Chain and Logistics Management team members attended.

If you missed this important workshop, we are more than happy to host a special session at your headquarters for you and your team. Contact the TVI Team at acooley@tvilogistics.com for more information!

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