Why is creating a culture of teamwork so crucial to a third-party logistics company? Well, because our Team Members are our assets! Our Team Members are the ones representing our company every day by living our mission, purpose, and vision. We ensure that everyone who interacts with us receives excellent service as set by our Trinity standards. Additionally, our company relies on the combined knowledge and expertise of every Team Member to run our company efficiently.
We need a culture of teamwork because each of our departments leans on one another to get the job done. Whether that be Marketing, Operations, or Billing, they all play an integral role in the company’s service and performance.
Now you’re probably wondering, how are you creating a culture of teamwork? How can my business improve our own culture and service? It’s not just one thing that makes it happen. Creating a culture of teamwork takes many steps, time, and a lot of effort, but you’ll find it all worth it in the end.
Start with the Right People
Creating a thriving company culture starts in the beginning with the leadership. Our leadership at Trinity is one that wants everyone in the company to excel and grow. This encouragement is seen throughout the company but made especially clear during the recruiting process. Our Recruiting Team works hard daily to find and, attract the best talent possible. We look for people who live by our Guiding Values daily. These include integrity, teamwork, legacy, fun, continuous improvement, excellence, determination, and leaders. Since our culture revolves around these Guiding Values, we want to make sure our potential hires already relate to them.
Since we strive to create a work environment that is upbeat, fun, and competitive, our ideal Team Members are those who will maintain and enhance this environment.
Besides relating to our Guiding Values, we also look for prospects that want to help give back to the community. At Trinity, we have the Trinity Foundation. The Trinity Foundation is an independent, non-profit organization founded and run by Trinity Team Members. A common goal of the Foundation and Trinity Logistics is improving the lives of others, and that’s why we highlight different opportunities for Team Members to give back to the community.
Although recruiting is only one aspect of what makes our culture thrive, it’s an essential part of keeping it alive and well.
Team Member Appreciation
Another critical area to creating a culture of teamwork is showing your Team Members genuine appreciation for all the hard work they do. Whether this is through fun events, awards, or the benefits provided, showing your Team Members that they are appreciated and valued will often raise morale.
Fun Events
We appreciate the hard work our Team Members do day in and day out. We share our appreciation and build upon our company culture through our Guiding Value of Fun. If there’s one thing we do well, it’s offering fun events for our Team Members. Whether it’s our Annual Field Day, holiday celebrations, team-building activities, or our many potlucks, we strive to encourage every Team Member to have some fun within their comfort level.
Kudos
Another way we show and build upon our culture is through our Kudos program. Team Members have the opportunity to send Kudos to others. These are notes of appreciation for work or acts of service they have done, based on our Guiding Values. These Kudos are shared company-wide for all Team Members to see. Additionally, every month we randomly pull one to two kudos per office to announce as our monthly winners for demonstrating one of our Guiding Values. Winners receive special prizes each month.
Awards
Of course, you can’t talk about appreciation without awards. At the end of every fiscal year, we celebrate! We hold a party for a chance for our Team Members to dress up, have some fun, and most of all, celebrate excellence through our Awards Ceremony. Every department chooses someone who shined throughout the year in certain categories to be recognized. Many different factors come into play when selecting award winners such as time spent in the company, background, discipline record, and current employment with the company. These award winners are given different prizes, trophies, or even vacations as well.
Benefits
While people love the fun events and celebrations, offering benefits that are a cut above other companies show Team Members are valued.
Trinity offers a great mix of benefits, work environment, and appreciation to create a happy team. Our benefits package includes generous paid-time-off offerings, a 401(k) with 100 percent match up to six percent, a full benefits package (medical, dental, vision, and wellness), and a laid-back work attire because who doesn’t love to wear jeans to work every day! Showing appreciation is also understanding that your Team Members need a healthy work-life balance which is why we do our best to provide exceptional benefits for our Team to feel their best.
Education
Education is another critical are to creating a culture of teamwork. Through our in-house Education Team, we offer our Team Members opportunities to grow their skills and learn more about other aspects of the business. We also require our team to stay educated on proper workplace behavior. Lastly, we offer tuition reimbursement for those seeking higher education. By providing the chance for our Team Members to benefit from Continuous Improvement opportunities, we find that it allows our Team to offer the best service possible.
The Trinity Experience
Another aspect to keeping our company culture thriving was our recently launched Trinity Experience program. This educational class taught every Team Member in our company to provide the best language possible when communicating with internally with other Team Members, and externally with customers. Whether this was a reminder course for some or a new learning experience for others, our goal was to create a welcoming environment not only for the Team but for our external audiences as well.
Is Trinity the Right Place for You?
Every day at Trinity we strive for excellence. Our motto is People-Centric Freight Solutions, because our assets are our Team Members.
To do this, we need our Team to be their best and we encourage this through our culture. Because of this, we strive to create a work environment that is competitive, interactive, fun, and challenging.
While we can’t speak for everyone, our recruitment, education, and team appreciation are the driving factors in why we’ve been recognized as a Great Place to Work-Certified year after year.
If Trinity sounds like the place for you, check out what job opportunities we currently have available.
Work somewhere with a culture of Teamwork.
Author: Turner Lee
Shipping freight is often a large and crucial part of a company. To make a profit, you need to get your customers the right product at the right time, and for the best cost. If not managed properly, your transportation can cost you substantial money. With costs rising recently, it’s easy to see why the challenge for many companies has been to reduce their transportation costs. Are you taking the proper steps to do so?
WHY COSTS ARE RISING
Before we jump into how to reduce your transportation costs, it’s essential to understand what factors are causing them to rise.
CUSTOMER EXPECTATIONS CONTINUE TO INCREASE
Consumers’ demand for faster delivery times is affecting everything from food and more. It’s forcing shippers to try to keep up to retain their customers. The so-called “Amazon effect” is alive and well as the world of e-commerce and faster shipping times grows.
HIGHER DEMAND
As noted, e-commerce was growing steadily before, but the pandemic only accelerated it. Consumers are ordering and demanding more, delivered right to their doors. Demand is far exceeding supply, and this trend is expected to continue through the rest of 2021.
TIGHTER CAPACITY
With such overwhelming demand, there are not enough drivers or labor to keep up. These shortages are impacting every mode of transportation, causing delays, and raising rates higher.
RISING COSTS FOR DRIVERS
Drivers are also experiencing rising costs. Fuel prices have been increasing, and tolls have risen; truck costs and insurance prices have gone up. All these costs roll over to their trucking rates.
STEPS TO REDUCE TRANSPORTATION COSTS
There are several ways to reduce transportation costs while also improving your logistics.
CUT YOUR MANUAL PROCESSES
Chances are, you’ve been doing things the same way for so long, you don’t even recognize there’s a better way to do them. We’ve all been there, and while change can be challenging, noticing you have room for improvement is the first step towards growth.
Automating your manual processes will help reduce your transportation costs. With automation, you’ll streamline your operations, allowing for better management while creating and improving your efficiencies. As a result, you’ll end up saving time and becoming available for your more important tasks.
USE ANALYTICS TO IMPROVE OPERATIONS
Reviewing historical records and analyzing trends can help uncover any slow processes and extra costs. For example, you may discover that one carrier consistently adds accessorial charges while another compatible carrier does not.
TRY DIFFERENT MODES OF TRANSPORTATION
Trying different modes of transportation could help you offset your costs. Shipping freight by sea could be less expensive than by air. Intermodal transportation is another option that you may not have considered. Shipping intermodal is usually less expensive than trucking. Even using a combination of the two could reduce your cost. Keep an eye on the transportation costs for different modes and don’t be afraid to make the switch. Being more flexible with your freight shipping could give you some financial benefits.
SEE IF YOU CAN CONSOLIDATE
Are you making the most of every truck moving your freight? Your shipment planning team should analyze current and future orders to build your shipments in the most cost-effective manner possible. Less-than-truckload (LTL) shipments are cost-effective for smaller weights. Yet, consolidating your shipments into one full truckload could have you seeing savings. With consolidation, there will be fewer trips, meaning you’ll see lower rates on one bulk shipment versus many small ones.
BID MORE OFTEN
To offset tight capacity and rising shipping costs, shippers should go out to bid for new transportation contracts more than annually. This allows you to find the best rates and avoid potential disruptions from transportation shortages.
GAIN CONTROL OF YOUR VENDOR-ROUTED OR CUSTOMER-ROUTED SHIPMENTS
Depending on your customer, sometimes you have your hands tied when it comes to logistics. For example, you may be required to use their specific providers as a condition of doing business with them. However, there are instances where you may be able to gain control of these opportunities for savings. Don’t you wonder about the potential for savings if you controlled this section of your business?
By leveraging ALL of your volume, you could qualify for some decent savings with LTL and truckload providers. Additionally, you’ll gain control of your shipments, which equals control of the quality of the provider, saving you money by retaining happy returning customers. You can better measure service performance and rates to ensure your best interests are being cared for when the ball is in your court.
INCREASE VISIBILITY
Without visibility, costs can begin to sneak in like stealth monsters that eat away at your bottom line. True visibility is using a best-in-class TMS that enables you to see all your transportation network. You can track and manage control over your products, see service disruptions or shipment delays in real-time, find optimized routes, and work with the best carriers. You’ll not only reduce your costs but increase your service levels and improve your relationships with all stakeholders.
PREPARE AHEAD
The more time you have before your shipment gives you more options in carrier selections and the chance to find a decent rate. Or look into another mode, as mentioned earlier. It also gives your provider more time to prepare themselves and let you know of any upcoming circumstances that may increase your logistics costs, giving you more time to consider making any changes. It also helps you alleviate delays and missed deadlines.
CONSIDER WAREHOUSING SERVICES
If you do a lot of shipping to and from the same lane, especially if it’s over a long distance, it may be a good idea to warehouse your goods closer to your customers so you can reduce those long-haul transportation costs.
BECOME A SHIPPER OF CHOICE
It’s never a bad thing to be a shipper of choice. Carriers are in the position of choosing which shippers they want to work with. Those shippers who provide better experiences for them can not only reap the benefits of better rates but higher service levels and fewer claims. To become a shipper that carriers will want to work with, it’s important that you run efficient and friendly dock operations, reduce driver wait times, provide comfortable breakroom and restroom accommodations, and pay your carriers quickly.
GET DATA-DRIVEN INSIGHTS
Data has quickly become one of the world’s most valuable resources. With a best-in-class TMS and proper reporting that you can analyze, you’ll be able to better manage disruptions, reduce downtimes, and effectively plan and budget your logistics spend. By using data analytics, you’ll be able to recognize which carriers are the most likely to have the capacity and ensure proper rates for shipments.
CONSIDER OUTSOURCING
In business, any activity that isn’t directly tied to securing more business deflects attention away from your goal of making a profit. That means the hours you can spend sourcing transportation providers and managing your logistics are not considered a profitable way to spend your time. By outsourcing your logistics and partnering with a third-party logistics company (3PL), like Trinity Logistics, you gain back all those hours to focus on what you do best – make a profit!
According to the 2020 Annual Third-party Logistics Study, 67 percent of shippers stated that using a 3PL contributed to reducing their overall logistics cost, while 83 percent said using a 3PL has improved their service. By utilizing Trinity Logistics, you won’t have to worry about any of the steps above because we’ll take care of them for you.
We’re listed as a Top 100 3PL by Inbound Logistics, and through our People-Centric service, we can help you find one or more customized solutions to meet your business needs. The first step to finding out exactly how we can help you reduce your transportation costs and improve your service is by having that initial conversation.
Will you choose to take that step today?
REQUEST A LOGISTICS MANAGEMENT CONSULTATION REQUEST A FREIGHT QUOTEUpdated September 16, 2021 by Christine Morris.
When you hear the word logistics, what jobs come to mind? Most people picture a truck driver over the road or someone stocking shelves in a warehouse. Because of this, many millennials don’t consider a career in logistics. But this field offers a lot more than the jobs you first picture and is not an industry to overlook. Read on to find out why millennials should be interested in logistics.
LOGISTICS IS GROWING
Career paths in logistics are growing and becoming more common. Why is this? The median age for an employee in this industry is 55, thus making 30 percent of the workforce inching closer to retirement, leaving a shortage of workers.
Many industries need the logistics field to operate, such as food, pharmaceutical, and medical fields. The need for logistics employees is crucial, making the new target audience for the supply chain industry Millennials and Generation “Z”. The struggle has been how to effectively attract, keep, and mold this specific age group that often turns their heads away from a logistics career path.
WHY MILLENNIALS DON’T CONSIDER LOGISTICS
Industry experts wonder why these generations aren’t attracted to this industry. One main reason is that young adults don’t see this field as a long-term career path. Trucking isn’t seen as an ideal career for them, nor does logistics carry the same connotation as other fields, like the medical industry which connotes prestige and excellence. Yet, Millennials don’t dive into the importance of logistics. This industry is an untapped pool of growth opportunities, well-paid jobs, and more.
THE ADVANTAGES OF HAVING MILLENNIALS IN LOGISTICS
Millennials and Gen “Z” have invaluable aspects that are a necessity in a business’s operations. One key factor is that Millennials grew up around technology. They grew up with a focus on the internet, social media, and cell phones. Because of their tech-driven lifestyles, they can quickly adapt to new technology. Whether that be running social media accounts, fixing minor IT issues, or improving business involvement online. The logistics field is becoming more technology-based and with these tech-savvy employees, running and operating a business becomes more efficient.
Another advantage Millennials bring to the logistics force is highly educated, focused, and driven individuals. Millennials grew up with the expectation of going to college. That is why 45 percent of Millennials hold a bachelor’s degree compared to Baby Boomers at only 18 percent. With this in mind, Millennials offer businesses fresh perspective and a hard work ethic.
One final advantage of Millennials in logistics is they are not afraid to challenge the status quo. Millennials are not afraid to speak out on inefficiencies or wrongdoings. They are very effective in pointing out weaknesses and finding a solution to the problems.
HOW TO ATTRACT MILLENNIALS TO LOGISTICS CAREERS
It’s important to understand what Millennials and Generation “Z” look for in a workplace environment so you can attract and keep these talented individuals. One important value to this generation is having the opportunity to grow. People in this generation focus on where their profession can take them. When they see an opportunity, they often take action. Seeing opportunities can mean giving a job a deeper meaning, doing constant performance evaluations, and expressing what path they want their career to take them. Millennials are goal-oriented, so if they see targets for themselves, they will work hard and become more driven to meet those goals.
Another area that holds value to Millennials is flexibility. This could be anything from having a casual dress code, flexible hours, or the option to work remotely. Millennials take everything into consideration when it comes to their careers. This generation looks not only at the wages for a position, but also the work environment, the benefits, and the company culture.
TRINITY LOGISTICS IS THE PERFECT FIT FOR MILLENNIALS
Trinity Logistics is a third-party logistics company (3PL), offering People-Centric Freight Solutions®. Our mission is to deliver creative logistics solutions through a dynamic mix of human ingenuity and innovative technology, enriching the lives of those we serve. To accomplish this, we must start by enriching the lives of our Team Members.
We do this by working with the best-in-class technology, offering a casual dress code, and many benefits like career advancement opportunities, leadership training, paid time off, tuition reimbursement, and more.
Perhaps you’re thinking, this isn’t enough. Well, we regularly hold fun team-building activities, an annual awards ceremony, monthly recognition and appreciation, and a wellness program. We believe happy Team Members lead to better business. And it’s proven true for 40 years and counting.
Additionally, we offer several internships year-round. This gives young individuals the opportunity to gain meaningful career experience and insight into logistics to see if it’s the right fit for them. Through our internships, we help our community grow by helping to grow young leaders. If you’re interested in learning more about how Trinity Logistics is Different on Purpose and to see available opportunities,
CLICK HEREAuthor: Turner Lee
The Trinity Foundation held its 11th annual Heart and Sole 5K this past Easter weekend. Since its inception in 2010, the Heart and Sole 5K has benefited cardiac rehabilitation efforts for our local hospital, TidalHealth. Prior to this year’s event, we were presented with an opportunity to help the 1-year grandson of one of Trinity’s team members.
Dawson Lankford, the son of Steve and Jessica, and grandson of Burnie Lankford, was diagnosed with Leukemia in late 2020. He’s undergone several procedures, such as a bone marrow biopsy, a spinal tap, and several blood transfusions. Dawson also started chemotherapy just two days after being diagnosed. Both Steve and Jessica were out of work for the first week that Dawson was in the hospital. Now, Steve is back to work while Jessica stays with their son.
While the “heart” in our event title has always referred to cardiac rehab efforts, this year that word has taken on a different meaning. Through the support received, we feel the heart of our community, the heart of our gracious sponsors, and the heart of those who have lifted up the Lankford family as they continue to win this fight.
The 11th annual Heart and Sole 5K had a wonderful turnout with 204 runners/walkers. In total, we were able to raise $55,175.25 to support Dawson and his family! It is also important to note that prior to the event, it was announced that Dawson was in remission and cancer-free! We are immensely grateful for the turnout of the event, the money that was raised, and support from our sponsors and community.
Learn more about the Trinity Foundation and their efforts.
Click hereDoes the COVID-19 vaccine have your cold chain logistics worried? If not, you should be taking it into consideration.
Everyone’s over the pandemic. We’re ready to be back attending public events, traveling to popular destinations, have our kids in school full time, and more. So much of 2020 has had to cancel or make the move to virtual and it’s not the same. Additionally, here at Trinity, the health and wellbeing of our Team Members, Authorized Agents, Carriers, and Customers is our number one priority.
Pfizer, Moderna, and others have quickly turned around vaccine solutions, making the light at the end of the tunnel seem in reach. With everyone looking to gain some sense of normal back into their lives, it means all hands will be on deck for the upcoming vaccine distribution. That means other cold chain commodities, will fall lower in priority. How will this affect your cold chain logistics?
THE IMPORTANT ROLE OF COLD CHAIN LOGISTICS FOR A COVID-19 VACCINE
Vaccines are fragile. Most have to store at specific colder temperatures to protect them from deterioration. If left out too long or exposed to fluctuating temperatures, vaccines can lose their effectiveness. According to the World Health Organization, one in four vaccines loses its integrity during transit. Due to their fragility and the extensive attention to detail that the logistics sector has to maintain, roughly 80 percent of a vaccine’s cost comes from its storage and transport.
Usually vaccines transport in temperature ranges of two to eight degrees Celsius. Currently, nine COVID-19 vaccines are in their Phase 3 trials, with two, Pfizer and Moderna, being very close to distribution. Because of the quick turnaround the world is seeking, these vaccines are containing higher protein bases which need ultracold temperatures, as low as minus 80 degree Celsius. Those receiving vaccines will need to get two doses, each about three to four weeks apart. Over time, vaccines will be developedrequiring more typical refrigeration temperatures and single doses. Regardless, cold chain logistics will continue to play a vital role in the distribution of a COVID-19 vaccine and for now, the specifications will be strict.
ALL COLD CHAIN HANDS ON DECK
Currently, Pfizer expects to produce and distribute up to 50 million doses of their vaccine in 2020 and 1.3 billion in 2021; Moderna expects 20 million in 2020 and anywhere from 500 million to one billion in 2021. Not to mention the other vaccines that will make their way as well. It is estimated that to immunize 7.8 billion people worldwide, 10 billion doses of a coronavirus vaccine will be needed.
The FMCSA recently announced their most recent extension of the Hours-of-Service waiver to February 28th and included carriers transporting COVID-19 vaccines. This effort is expected to be the biggest challenge the logistics sector has ever faced. Currently, logistics experts are struggling to plan ahead because of the lack of very specific information that they need to know about, such as the packaging, amount of dry ice needed to maintain temperatures, warehousing, equipment needed, and more.
Shipping temperature-sensitive items? Check out our Temperature Shipping Guide.
AREAS TO WATCH
Through Operation Warp Speed, Moderna and other upcoming vaccines will deliver to the Mckesson distribution center in Irving, Texas, and then arranged deliveries to hospitals, nursing homes, and other determined points. Moderna will manufacture its vaccine in New Hampshire, Pennsylvania, and Indiana.
Pfizer, however, has chosen to not distribute through Operation Warp Speed. They manufacture their vaccine in Michigan and plan to ship with transportation providers such as UPS and FedEx to locations around the country. They’ve chosen to directly ship to gain greater control and real-time insights into the status of their frozen vials.
HOW IT AFFECTS CAPACITY
Obviously, reefer capacity is going to be needed for vaccine distribution. But, it’s already tight. If you’re in the cold chain, shipping temperature-controlled items, prepare to continue paying premiums for this service.
Recently, reefer rejection rates have been at almost 50 percent. That means almost one out of every two reefer shipments are being turned down by carriers. When the rejection rates are higher, the tighter capacity is, and the higher cost for you to get your cold freight moved. Reefer rates are already 20 percent higher year-over-year due to increased consumer demand while spending more time at home.
WHAT THIS MEANS FOR YOU
If you ship temperature-controlled goods, the upcoming vaccine distribution efforts should be a concern for your business and logistics, especially if you regularly ship through less-than-truckload (LTL). Many top tier transportation companies such as UPS, FedEx, and DHL are ready to help Operation Warp Speed in the vaccine distribution. Everyone knows the vaccine distribution is the highest priority, but transportation providers also know they will be well compensated for their service of transporting it. This means other cold chain commodities will be pushed further down in priority. This will only continue on as more COVID vaccines become available to be distributed and until risk of COVID is greatly reduced. In the form of some ultracold transportation logistics, winter is coming and the demand for reefers will continue to rise.
SHIPPING COLD CHAIN? WHAT YOU CAN DO TO PREPARE
Communicate.
Get ready now. Start talking to your relationships and providers to make sure you will have trucks to move your freight. Talk to your customers. Let them know now that things may slow down or get behind with the upcoming and expected vaccine distribution efforts.
Things may be getting tougher for you, but I think we all know this is good. We’re one step closer to returning to some sense of normalcy. Hold on, because the light at the end of the tunnel is there. It’s now in reach. We’re just in for a few more bumps in the road, but we’ll make it.
Looking for an expert in cold chain logistics?
Find Your Solutions with TrinityAuthor: Christine Morris
Onshoring, nearshoring, reshoring – these are terms that we keep hearing in growing popularity lately. Even before Covid-19, many companies have considered onshoring their operations due to concerns about quality and supply chain disruptions. Political tensions and rising tariffs also triggered the growing considerations.
When Covid-19 hit, it led to sky-high air and ocean freight rates. Any companies with operations in China saw their productions come to a halt. Offshoring your operations has never been riskier. You never know what could happen in another region and how that could affect your operations if offshored. So, the question is, should you be onshoring your operations?
A BRIEF LOOK BACK
Before the 1980’s manufacturing had a large presence in the United States. Technology improved communication and global transportation, so companies saw the opportunity to save on costs by offshoring their operations outside the United States. Offshoring grew and became the norm, until recently. Onshoring has become popular again due to politics, rising labor costs, and increased demand for higher quality products.
WHAT DOES IT ALL MEAN?
Onshoring, nearshoring, or reshoring; it all refers to the overall practice of moving manufacturing operations from foreign soil back to the United States. It may also refer to the practice of outsourcing to domestic contract manufacturers rather than overseas. Nearshoring can also refer to the moving manufacturing to outside the United States, but not across ocean waters. An example of nearshoring would be having operations moved to Mexico.
Offshoring involves outsourcing manufacturing assets far outside of the primary country of operations. American companies have traditionally offshored manufacturing to Asian or Southeast Asian regions. Offshoring has been used in situations where production, materials, and labor costs outweigh travel complexities and shipping costs.
ONSHORING VS OFFSHORING WHEN IT COMES TO..
..YOUR CUSTOMERS
Poor customer service can have a huge impact to your company’s success. More than 50% of consumers said they would never do business with a company after just one negative experience. When choosing to onshore your processes, it gives you the benefit of serving and supporting your customers from “home”, which reduces your risk of your customers receiving poor service elsewhere.
Customers nowadays like to support products made in their own country. They feel that it further benefits the local economy and they feel more confident in a products quality when its been made in the same country. Depending on your customer base, this could give you a huge advantage over your competitors.
Due to the recent Amazon Effect, customers now expect their products delivered to them in days. Shorter travel times can make that expectation easier to meet. If suppliers are farther away, delivery times can sometimes be uncertain and take longer. Customers also want full transparency on their freight’s travel, and onshoring can make that more successful on your end.
..YOUR SUPPLY CHAIN
Onshoring can offer you better supply chain management. It allows shorter lead times because companies can operate all within the same time zone (or at least closer to each other than if offshoring). Not to mention other processes that can take time, such as design and approval. All parties in the supply chain can have closer relationships because they won’t have to deal with the challenges of long distances and varying time zones. Nor do you have to worry about the risk of facing language or cultural barriers among locations. Onshoring is becoming very popular for those organizations that need a lot of communication to be successful.
..YOUR COSTS
With rising labor and shipping costs, many find savings are no longer there when it comes to offshoring. Time is money and offshoring can add weeks to delivery times. Shorter distances with onshoring mean reduced (and less complicated) transportation costs. This also means less fuel used, giving you the benefit of being greener (and customers like that).
As time goes on, overseas economies are further developing, taxing is changing, labor, wages, and shipping costs are all on the rise; all making it less profitable to handle business offshore. Tariffs have risen in recent years, with some commodities up to a 25 percent charge. By choosing to even nearshore your operations rather than offshore, you can avoid those increased costs.
There’s also the possibility of defected goods arriving to consider when offshoring. Recalled products have been a rising concern. The defect rates of shipments from other countries can be so high at times that entire batches must be inspected upon arrival. The time and expense to do this and rework or scrap products, can wipe out the savings offshoring promised and even exceed your original budget.
THINGS TO ASK WHEN CONSIDERING ONSHORING
Tariffs, customs, duties
- How many fees will you incur in transporting your finished goods to distributors? Could these fees be avoided if goods are produced elsewhere?
Transportation costs
- Transportation can sometimes be your largest expense. You can reduce costs by shortening travel distances or choosing to work with a logistics company, like Trinity Logistics.
Lead times
- How long will it take to get the finished product in hand? Lead times vary depending on how far away production takes place. Make sure to consider design and approval time. This is one part of the process where differences can slow down your production.
Political environments
- What is the political climate like in the region where your goods are produced? No country is immune to civil unrest. What is the political climate like between your primary company’s country and where the products are made? Consider any chance of future supply chain disruption, and those tariffs.
BEFORE YOU DECIDE..
Before you make your decision on whether to onshore or offshore, make sure to consider all factors. Onshoring may seem like the answer right now, but will it still in the future? If transportation costs and delivery disruptions are your main concern in business, consider looking into outsourcing your logistics with third party-logistics (3PL), like Trinity. Choosing to work with a 3PL can offer you some of the same benefits as onshoring, but with less work on your part.
FIND MY SOLUTION