Datex Corporation https://www.datexcorp.com Fri, 24 Jan 2020 22:35:02 +0000 en-US hourly 1 https://wordpress.org/?v=5.3.2 https://www.datexcorp.com/wp-content/uploads/2016/11/cropped-datex-D-750x750-blue-trans-cent-32x32.png Datex Corporation https://www.datexcorp.com 32 32 The Friday Report: January 24th, 2020 https://www.datexcorp.com/the-friday-report-january-24th-2020/ https://www.datexcorp.com/the-friday-report-january-24th-2020/#respond Fri, 24 Jan 2020 22:34:59 +0000 https://www.datexcorp.com/?p=62099 The post The Friday Report: January 24th, 2020 appeared first on Datex Corporation.

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The Friday Report: January 24th, 2020

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

Is Alcohol the New Secret Weapon to Higher Retail Sales?

High end retailers have introduced a new experiential feature in select store locations and have hopes that it will boost retail spending.  What is this magic elixir you ask?  Alcohol.  The new 320,000 square foot Nordstrom flagship store now has a liquor license.  Not only can shoppers drink in the five restaurants and two full service bars, but also in other areas of the store.

 In addition, shoppers can have drinks and snacks delivered to them as they shop.  Sales team members can be requested to place drink orders via a screen.  Alcohol can be served on five of the seven levels, enhancing the fun of the shopping experience.

Is it enough to make shoppers spend more money?  Hmm…only time will tell.

Transportation Carrier Launches TSA-Cleared Air Freight Service

Developed to move international air freight directly from the point of origin to the export location to save time, the new Transportation Security Administration-compliant export service introduced by A. Duie Pyle is anticipated to help with next-day transit needs.

Currently A. Duie Pyle features a dense network of next day service centers staffed by TSA-compliant freight handlers and drivers.  By pumping up the volume on its integrated logistics service options, A. Duie Pyle will be better positioned to eliminate obstacles to next day transit, streamlining the shipping and logistics process.

Bed Bath and Beyond Moves to Close 40 Stores

With the recent holiday season now a memory, big box giant Bed Bath and Beyond is moving ahead with its plan to close 40 store locations nationwide in 2020.

bed bath beyond logo

Bed Bath and Beyond also operates buybuy Baby, Harmon Face Values and World Market.  Closing some locations is anticipated to help increase the profitability of the remaining portfolio of stores.  In addition, it is expected that the move will enable the company to better focus on operational efficiency and traffic generation to existing retail locations.

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The Friday Report: January 17th, 2020 https://www.datexcorp.com/the-friday-report-january-17th-2020/ https://www.datexcorp.com/the-friday-report-january-17th-2020/#respond Fri, 17 Jan 2020 14:46:49 +0000 https://www.datexcorp.com/?p=62043 The post The Friday Report: January 17th, 2020 appeared first on Datex Corporation.

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The Friday Report: January 17th, 2020

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

U.S. and China Sign “Phase One” Trade Deal

Signed Wednesday, January 15th, the new deal mandates that China will purchase an additional $200 billion in U.S. goods and services over the next two years, based on 2017 figures before the trade war began.  In 2017, China imported in excess of $185 billion in total U.S. services and goods.

As part of the trade deal, the United States agreed to reduce tariffs on $120 billion in Chinese products from 15% to 7.5%.  Industry experts expect that China will need to reduce imports from other countries to meet the requirements in the trade deal.  The two main parts of the trade deal indicate a dramatic surge in American exports to China.  China has promised to purchase pork, cotton, wheat and soybeans, goods hit hard by the trade war in 2018.

Additional protection is provided to American companies in terms of intellectual property and trade secrets in the new agreement.  Requirements for banks which want to operate in China were reduced and anti-counterfeiting penalties imposed.

Although the Chinese government pledged to exceed its previous promises, there is no requirement for it to change laws or regulations or make alterations to state subsidies which could trigger major changes in how the Chinese economy functions.  The agreement helps China to meet one of its key objectives:  to diversify its economy and reform its financial system.

Brexit Breakout Closer

The U.K. Brexit bill passed the House of Commons earlier this week with 330 members voting for and 231 against its passage.  The Brexit bill now advances to the House of Lords where its passage would mean that the United Kingdom would formally withdraw from the European Union by the January 31st deadline.

At the current time, the U.K.is and will remain bound to EU trade laws until December 31, 2020.  Prime Minister Boris Johnson has voiced optimism that the EU and U.K. will be able to generate a trade agreement that can be ratified by the deadline.  Negotiations are expected to begin in late February or March and an extension can be requested in June if a trade agreement cannot be ratified by the end of 2020.

Walmart Ordered by Court to Pay Drivers for Layover and Break Time

This week, a federal appeals court upheld a 2016 legal decision forcing Walmart to pay back $54.6 million to its company truck drivers.  In a class action suit, the Walmart truck drivers were seeking back pay for the time they spent in layover, on break or in inspections.  Layovers are mandatory and are required by the Department of Transportation.

The three-judge federal appeals court panel decided that “time drivers spent on layovers was compensable if Walmart exercised control over the drivers during those breaks” and found that the district court had correctly made its original finding.  Proof of the case was found in the Walmart driver manual which confirmed that drivers remained under Walmart’s control during the 10-hour layover at the end of a shift.

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The Friday Report: January 10th, 2020 https://www.datexcorp.com/the-friday-report-january-10th-2020/ https://www.datexcorp.com/the-friday-report-january-10th-2020/#respond Fri, 10 Jan 2020 08:01:53 +0000 https://www.datexcorp.com/?p=61985 The post The Friday Report: January 10th, 2020 appeared first on Datex Corporation.

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The Friday Report: January 10th, 2020

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

California Clears the Way for First State Prescription Drug Label

In an effort to reduce prescription drug prices, the state of California announced its intention to be the first state to launch its own prescription drug label. The idea, proposed by Governor Gavin Newsom leverages the power of government purchasing to help gain control over increasing healthcare costs.

The state of California would be empowered to contract with generic drug manufacturer to facilitate the availability and sale of medications to all Californians. The revolutionary plan would be part of the Governor’s new budget proposal. Both public and private insurers would negotiate prescription drug pricing together to provide more effective results in reducing drug prices.

Selected drug manufacturers would be able to manufacture generic drugs on behalf of the state of California. The unusual proposal would empower all purchasers to combine their purchasing power and the state would take advantage of a “most favored nation” clause in the marketplace. This would mandate that manufacturers would be obligated to sell drugs at the lowest cost offered anywhere in the world. To learn more, read on here: https://thehill.com/policy/healthcare/477494-california-plans-to-launch-own-prescription-drug-label

Another Holiday Season, Survival at Risk for Bed Bath & Beyond

Even despite previous news that it would close 60 of its 1,500 total locations, Bed Bath & Beyond continues to struggle. A new board and management team are searching for assets that can be monetized, costs that can be cut as well as sourcing and merchandising opportunities to keep the retailer afloat.

Bed Bath & Beyond’s newest CEO recently reset expectations, lower than anticipated and promised a turnaround plan by spring. Despite increased consumer spending, some mall-based and traditional retailers continued to flounder.

$42 Billion in Returned Goods This Holiday Season

With an estimated handling of over 1 million returned packages every day during the recent holiday season, retailers and others across the supply chain are struggling with issues such as diminished profits and sustainability.

Buying online and returning purchases via Smartphone has become all too normal these days. The overall returns rate continues to expand at a rate of 10 percent annually, resulting in a total loss of $50 billion for retailers each year due to inefficiencies handling returns. For more details, continue reading here: https://www.cnbc.com/2019/12/19/online-returns-this-holiday-season-to-hit-record-41point6-billion.html

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OutField® Flipbook https://www.datexcorp.com/outfield-flipbook/ https://www.datexcorp.com/outfield-flipbook/#respond Thu, 09 Jan 2020 19:36:26 +0000 https://www.datexcorp.com/?p=61973 The post OutField® Flipbook appeared first on Datex Corporation.

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OutField® Flipbook

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The Friday Report: December 27th, 2019 https://www.datexcorp.com/the-friday-report-december-27th-2019/ https://www.datexcorp.com/the-friday-report-december-27th-2019/#respond Fri, 27 Dec 2019 14:32:58 +0000 https://www.datexcorp.com/?p=61887 The post The Friday Report: December 27th, 2019 appeared first on Datex Corporation.

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The Friday Report: December 27th, 2019

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

Amazon Improves on Sustainability and Stretches Free Return Policy

Recent research conducted by Oracle Retail indicates that 77% of shoppers plan to return holiday gifts this season.  Typically between 30 and 50% of those who received gifts return them due to wrong size, fit or color, according to a report from Navar.

Retailers are continually focused on improving the customer experience and are especially interested in turning returns into sales.  To this end, Amazon has already implemented free returns at Kohl’s and nationwide and recently announced label-free and box-free returns for selected purchases at over 5,800 locations.  By eliminating labels and boxes, Amazon will be improving on its record of sustainability.  This will reduce packaging waste and pickups for drivers.

E-Commerce Order Fulfillment Continues to Improve

According to a Cyber Monday test of 137 retailers conducted by Kurt Salmon of Accenture Strategy, the average shipping time for the top 10 retailers improved 18% over last year.  Accenture Strategy measured order accuracy, delivery costs and shipping speed for retailers including:

  • Amazon (through Prime subscribership)
  • Office Depot
  • Best Buy
  • Cabelas
  • CVS

The study reported that 64% of retailers delivered an entire order within one week, a major improvement of 50% in 2017.  Online order with store pickup transactions were measured at 88% processed on time, a 16% increase over 2018 transaction processing. 

Here are some other insights from the report:

  • Average order processing time was 2.5 hours, a considerable drop from 3.6 hours in 2018.
  • 85% of orders were fulfilled without issues, a 20% improvement over 2018
  • Average in-store wait time for order pickup was 4 minutes.
  • Customers who enter the store to pickup online orders are more likely to make additional purchases during their visit.

China Lowers Tariffs on Selected Products

According to a release from the Chinese Ministry of Finance on December 23rd, the country will reduce tariffs on over 850 products as of January 1, 2020 from all trading partners, including the U.S.  Here are some of the most notable items: 

  • Frozen pork
  • Frozen avocados
  • Non-frozen orange juice
  • Wood and paper products
  • Selected components of high-tech electronics

In addition, China will zero out tariffs on selected pharmaceutical products related to diabetes and asthma specifically to help decrease medication costs and help promote new medication production.

China has pledged that it will increase imports from the U.S. over $200 billion over the next two years, including in agricultural products

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Why Order Fulfillment is Important https://www.datexcorp.com/why-order-fulfillment-is-important/ https://www.datexcorp.com/why-order-fulfillment-is-important/#respond Wed, 18 Dec 2019 21:44:30 +0000 https://www.datexcorp.com/?p=61803 The post Why Order Fulfillment is Important appeared first on Datex Corporation.

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WAREHOUSE BASICS:

Why Order Fulfillment is Important

Supply chain companies are working to reduce the time it takes to get an order to a customer’s home or to stores when planning their fulfillment strategy. Most thirdparty fulfillment warehouses try to offer next-day, and even same-day delivery following in Amazon’s footsteps proving the importance of fulfillment.

25% of shoppers will abandon their order due to unexpected shipping costs being added to the order just prior to checkout. 74% of online shoppers say that free shipping is one of the most important factors at checkout. 94% have taken some sort of action to qualify for free shipping. These statistics show the importance of successful order fulfillment in order to keep shipping costs down or completely free.

Having a successful ecommerce order fulfillment strategy is imperative in gaining a competitive advantage. 63% of online shoppers cite excessive shipping fees as a reason they canceled their order. This is why ecommerce fulfillment warehouses need to keep fulfillment costs down as much as possible. For online retailers in the supply chain, the average cost to fulfill an order using fulfillment centers is 70% of the average order value. Successful order fulfillment only occurs when ecommerce order fulfillment warehouses and distribution centers are able to streamline order fulfillment and keep inventory levels and costs down.

A successful order fulfillment process is as follows: Products are ordered and purchased in bulk from a wholesale or manufacturing company and are then shipped and delivered to a 3PL ecommerce fulfillment warehouse. The product is received by the ecommerce fulfillment warehouse and checked into the thirdparty logistics warehouse stock using the warehouse management software. The thirdparty fulfillment must physically have the inventory in order to start fulfilling orders. The online store relays the order to the third party logistics fulfillment provider (3PL). The 3PL Fulfillment partner then picks, packs and ships the order to the customer. Once all items in an order have been picked and packed, warehouse workers pack boxes at packing stations and prepare for product shipping. A delivery company picks up the orders from the fulfillment centers and transports the packages to their destinations. The order arrives in the customers hands and the fulfillment process is complete.

It is imperative that supply chain fulfillment companies follow best fulfillment practices in their fulfillment operations in order to be successful and compete with Amazon.

20 best order fulfillment services and companies of 2019

According to FinancesOnline

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What is Pharmaceutical Contract Manufacturing? https://www.datexcorp.com/what-is-pharmaceutical-contract-manufacturing/ https://www.datexcorp.com/what-is-pharmaceutical-contract-manufacturing/#respond Mon, 16 Dec 2019 14:13:12 +0000 https://www.datexcorp.com/?p=61772 The post What is Pharmaceutical Contract Manufacturing? appeared first on Datex Corporation.

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WAREHOUSE BASICS:

What is Pharmaceutical Contract Manufacturing?

Pharma contract manufacturers help fast track new drug products to market

What is a contract manufacturer in the pharmaceutical industry?

Did you know that only about one third of pharmaceutical manufacturing is actually conducted in house?  It’s true.  From cell therapy to diabetes drugs and biologics in cold chain, today American drug companies are choosing to outsource most of the manufacturing of drug products.  Contract pharma is now BIG BUSINESS.  While it is an exciting time to be in the drug discovery business, the cost of operations, need to adhere to regulatory requirements and other factors have become burdensome.  Pharma manufacturing is a highly complex process, from research and development through to commercial manufacturing.

What is driving so much outsourcing in the pharmaceutical industry?  Here are some of the relevant factors:

  • Pressure to reduce expenses due to diminished R&D returns and increased competition
  • Pharma industry consolidation
  • Pharma company restructuring capabilities around technologies experiencing rapid growth, including gene and cell therapy or biologics
  • Need to shift operations away from markets with high labor costs or less profitable drug products
  • Shortage of technical talent in pharmaceutical industry
  • Push from tech giants into the pharma/healthcare space

Here is a scary fact.  Did you know that the lack of American focus on STEM education (science, technology, engineering and math) means that the U.S. workforce has fewer qualified workers to meet the needs of the pharmaceutical industry?  In America, the skills gap is leading to a significant pharma industry labor shortage:  According to the Pharmaceutical Research and Manufacturers of America (PhRMA), by 2025, approximately 60% of American pharmaceutical industry jobs may be unfilled.  Australia and China have ramped up their efforts in STEM education.  In China, 4.7 million STEM graduates were produced in 2016 as compared to only 568,000 in the U.S. in the same year.

A pharma contract manufacturing company provides an array of services to drug companies which may include:

  • Drug development
  • Drug manufacturing and commercial production
  • Documentation of compliance with FDA regulatory requirements
  • Pre-formulation
  • Development of drug formulation
  • Conduction of stability studies, method development, pre-clinical and Phase I clinical trials
  • Providing late-stage clinical trial materials
  • Providing formal stability, scale-up, registration batches

All pharmaceutical contract manufacturers must adhere to FDA good manufacturing practices and comply with applicable FDA regulations. 

In addition to pharmaceutical contract manufacturers, known as CMOs, there are other business models that handle the outsourcing needs of pharmaceutical companies such as that of drug development, pharmaceutical manufacturing, research and testing:

What is a CRO and a CMO?

In the pharmaceutical industry, a CRO or contract research organization company provides support to pharmaceutical companies by providing a range of professional research services on a contract basis so that this work is no longer done internally.  Contract research organizations help drug manufacturers in the extensive drug discovery process by lightening some of the costly burdens involved with data research, testing, project management and drug trials that are run on a post-approval, pre-clinical and clinical basis.

According to a 2018 article in Pharma IQ, here are the Top 10 Contract Research Organizations, ranked by Pharma IQ network voting.

A CMO, or contract manufacturer organization is different from a CRO in that it specializes in manufacturing drug products for pharmaceutical companies rather than engaging in research.  Some outsource entities perform multiple duties, such as a CDMO, or contract development and manufacturing organization which provides comprehensive services from drug development through to drug manufacturing.

Are you looking for a pharmaceutical contract manufacturing companies list?  Perhaps a pharmaceutical contract manufacturing organization can help.   Try the Pharma & Biopharma Outsourcing Association.  Here is a list of pharmaceutical contract manufacturer members from their website.

What is a CTL?

In pharma, the term CTL refers to a contract testing laboratory which provides pharmaceutical testing services to drug manufacturers.  Here are some of the types of services provided by a contract testing laboratory:

  • Bioanalytical services/bioanalytical testing services
  • Drug development services/drug discovery services
  • Pharmaceutical dissolution testing services
  • Preclinical testing services
  • Central laboratory services/clinical trials laboratory services

Need a CTL?  Here is a list of contract testing laboratories from Pharmaceutical Outsourcing.

What is the meaning of third party manufacturing?

In pharma parlance, the term “third party manufacturing” refers to a contact manufacturer that produces goods for drug companies but does not own the inventory.  This strategic partnership provides significant benefits for the contract manufacturing company, drug companies and patients.  The CMO is contracted by a pharma company to provide the materials and labor to manufacture drug products which are then owned and paid for by the client.  The manufacturing work is performed externally, by a third party rather than by the pharmaceutical company itself usually to reduce costs and save time.

Why do pharmaceutical companies outsource drug manufacturing?

Pharma contract manufacturing presents drug companies with added flexibility, more options and benefits such as the ability to:

  • Fast track drug products and speed time to market
  • Cut out cost
  • Improve focus on core mission of drug discovery and drug marketing
  • Relieves pharmaceutical companies of the cost and burden of hiring and training workers during periods of labor shortage
  • Meet current and projected growth trends for drug products

Summary

In an industry of strong growth, the pharmaceutical market continues to evolve finding new options to bring more FDA approved drug products to market quickly and cost effectively.  The major outsourcing of the development and manufacturing of drug products by CMO contract companies fills critical gaps and is expected to continue or even accelerate over the next few years.

Strategic partnerships  between drug companies and contract pharma businesses .often fuel strong growth in the pharmaceutical market. The pharma contract manufacturing market continues to mature and leans on pharmaceutical technologies to fulfill client objectives.  Contract pharma companies must adhere to cGMP standards, i.e. for sterile facility, manufacturing processes, formulation development, etc. to assure patient safety and drug quality.

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The Friday Report: December 13th, 2019 https://www.datexcorp.com/the-friday-report-december-13th-2019/ https://www.datexcorp.com/the-friday-report-december-13th-2019/#respond Fri, 13 Dec 2019 13:05:00 +0000 https://www.datexcorp.com/?p=61664 The post The Friday Report: December 13th, 2019 appeared first on Datex Corporation.

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The Friday Report: December 13th, 2019

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

 

Time to Park:  Trucking Industry Leader Celadon Closes

In a surprising turn of events, one of the largest U.S. trucking firms is calling it quits. Last week, two former Celadon executives were charged with fraud and conspiracy for allegedly hiding millions of dollars in shareholder and lender losses.  Stymied by the fast fall of freight rates and pileup of penalties levied by the U.S. Department of Justice for settlement of securities fraud charges against prior management, the trucking industry heavyweight filed for bankruptcy.  Celadon filed for Chapter 11 bankruptcy protection voluntarily along with 25 affiliate entities with the exception of Taylor Express. Celadon, one of the largest for hire carriers in North America is the largest carrier in the state of Indiana and massive job loss is expected.

Earlier in the year, Celadon reached an agreement with the U.S. Department of Justice to pay $42.2 million to settle security fraud allegations resulting from inaccurately reporting assets and profits.  The settlement, combined with company debt and industry struggles hampered Celadon’s ability to recover, costing 4,000 jobs.  The closing happened abruptly, stranding approximately 3,000 truckers hauling loads without pay, use of company gas cards or even transportation home.  Loads were refused and trucks were parked.

According to industry analysts, 640 trucking firms declared bankruptcy in the first half of 2019.  Freight volumes have declined for eleven consecutive months and the market remains in a recession.  Celadon competitors have been offering bus tickets home and have provided food to stranded drivers.  The Celadon closure is the largest trucking failure in 2019 and is one of the largest in the history of the U.S. trucking industry.

Consumers Craving Convenience Check out Click-and-Collect

Using existing brick-and-mortar stores, more retailers are expanding into online ordering for grocery pickup services.  Kroger and Walmart have pushed ahead to grow this segment of their business.  By 2020, industry experts estimate that 25 percent of consumers will have used click-and-collect service for grocery shopping to avoid check-out lines in stores to save time and increase the flexibility of grocery shopping options.

For grocery retailers, solving the problem of identifying when a consumer’s vehicle is in the vicinity of the store is the biggest challenge followed by the time it takes to pack a grocery order.  Having the needed quantity of order pickers in the store is a related challenge.

Instacart partners with retailers to help offer pickup of online orders nationwide in addition to its core delivery service.  So far, Walmart is winning the click-and-collect grocery wars with 11-13% of its customers using the service.  By 2020, this is expected to grow to one third of Walmart sales.  Walmart continues to refine elements of its service to reduce waiting times and pinpoint the parking spot selected by the customer for pickup.

U.S. Tariffs and Trade Wars Tax the Food and Beverage Industry’s Taste for Profitability

For the past two years or so, trade battles have made it challenging for companies across the food industry to export products.  This has caused significant financial burden on businesses across the food supply chain from farmers and producers to shippers.  Rapid shifts in trade policy, declining trust and rising costs and the complexities of dealing with tariffs is frustrating the food industry.

For farmers, business conditions are the worst in decades.  Trade wars have increased already high interest rates and low prices and farmers’ net income has declined 45% since 2013.

Here are some other notable challenges impacting the food and beverage industry in the United States:

  • Wait for Congressional passage of USMCA to replace NAFTA
  • Need for the resolution of trade war with China
  • Necessity to resolve the aluminum and steel tariffs as this impacts food packaging

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How Does Order Fulfillment Work? https://www.datexcorp.com/how-does-order-fulfillment-work/ https://www.datexcorp.com/how-does-order-fulfillment-work/#respond Wed, 11 Dec 2019 15:58:54 +0000 https://www.datexcorp.com/?p=61676 The post How Does Order Fulfillment Work? appeared first on Datex Corporation.

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WAREHOUSE BASICS:

How Does Order Fulfillment Work?

Learn the order fulfillment steps from the manufacturer to the end customer

Let’s start by getting an understanding of what ecommerce order fulfillment is.  

Here is an easy-to-understand Order fulfillment definition: Order fulfillment is the steps involved in receiving, processing and delivering orders to end customers. 

But what exactly does ecommerce order fulfillment entail? How do the orders get from the manufacturer to the end customer to ensure that customer expectations are met? How do thirdparty logistics providers control shipping cost and inventory storage? 

The order fulfillment process might seem like a mystery, but it doesn’t have to be.

The order ecommerce fulfillment process is as follows:

1. Products are ordered and purchased in bulk from a wholesale or manufacturing company.

2. Products are then shipped and delivered to a 3PL ecommerce fulfillment warehouse.

  • The product is received by the ecommerce fulfillment warehouse and checked into the thirdparty logistics warehouse stock using the warehouse management software.
  • The thirdparty fulfillment must physically have the inventory in order to start fulfilling orders.

3. 3PL providers have their own processes for receiving inventory and storing inventory, often involving specific merchant documentation.  This allows the 3PL company to stay organized and timely with its operational processes, so that orders ship sooner.

4. Fulfillment companyies place and store the product on warehouse shelves.

5. Ecommerce sellers list the products to sell online through multiple sales channels.  Online shopping sites are designed to minimize shopping cart abandonment.

6. Customers place orders and pay for the product online and select their preferred shipping options after reviewing shipping rates provided by the seller.

7. The online store relays the order to the third party logistics fulfillment provider (3PL).

8. The 3PL Fulfillment partner then picks, packs and ships the order to the customer.

  • When an order is pushed to a 3PL’s order fulfillment system, it is assigned to the picking team. The picking team receives a packing slip with the items, quantities, and storage locations at the warehouse or fulfillment facility then collects the ordered products from their respective locations.
  • Once all items in an order have been picked and packed, warehouse workers pack boxes using packing supplies at packing stations and prepare for product shipping to the customer using a preferred ship method or post office.

9. A delivery company picks up the orders from the fulfillment centers and transports the packages to their destinations.

10. The order arrives at the customer’s door and the fulfillment process is complete.

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The Friday Report: December 6th, 2019 https://www.datexcorp.com/the-friday-report-december-6th-2019/ https://www.datexcorp.com/the-friday-report-december-6th-2019/#respond Fri, 06 Dec 2019 13:30:00 +0000 https://www.datexcorp.com/?p=61510 The post The Friday Report: December 6th, 2019 appeared first on Datex Corporation.

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The Friday Report: December 6th, 2019

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

 

China Cautions Tariff Cut Before Phase One Trade Deal with U.S.

Still in search of a satisfactory end to the China-U.S. trade war, the Chinese commerce ministry recently emphasized that some American tariffs must be rolled back before a phase one deal can be implemented. Both sides reported that they are in close communication.
A phase one deal had been anticipated in early November, before the next wave of U.S. tariffs were scheduled to take effect on December 15th. The log jam appears to be over “core issues of concern” namely increasing bilateral tensions outside of trade such as the Hong Kong protests and Chinese treatment of its Uighur Muslim minority population.


The Chinese are outraged over a U.S. House bill which condemns the country for Beijing’s crackdown on its Muslim Uighur minority population. The bill passed in a bipartisan 407 to 1 vote and condemns “gross human rights violations”. The Chinese object to any perceived outside interference in the country’s internal affairs. Passage of the bill by the Senate appears certain and may further antagonize trade negotiations. The bill follows another bipartisan measure that supports the five-month-long pro-democracy movement in Hong Kong. President Trump already signed the bill which requires that the U.S. State Department conduct an annual evaluation to help ensure that Hong Kong’s autonomous political structure remains intact. The U.S. has made this a requirement of favorable trade relations with China.

China Cautions Tariff Cut Before Phase One Trade Deal with U.S.

As product returns continue to climb, IKEA continues to search for new ways to manage the issue more effectively. A recent investment in U.S. tech start up Optoro looks to be promising in aiding the retailer with reverse logistics technology to retail stores, distribution centers and the IKEA U.S. customer support center.


Optoro software streamlines return flows. In addition, it aids in decreasing waste from returns including reducing carbon emissions released during return shipping, finding solutions for returned items and more.

U.S. Manufacturing in Decline, China in Recovery Mode

For the fourth consecutive month, the American manufacturing sector continued to decline. In contrast, China’s manufacturing industry is expanding, according to the National Bureau of Statistics of China. Measurement standards for the U.S. manufacturing industry revealed that the sector is at the lowest level of the year, and the lowest level since 2009. The U.S. manufacturing industry is hampered by soft demand and ongoing economic uncertainty due to global trade issues.


According to the Institute of Supply Chain Management (ISM), new orders are decreasing at a faster rate. Confidence of companies has diminished along with prices for the sixth consecutive month. The U.S. business community had wanted to have a U.S.-China deal in place to avoid the next round of tariffs which will begin December 15th.


Uncertainty is not stifling the growth of the Chinese manufacturing sector as it returned to expansion level in November. The uptick seems be fueled by increases in domestic manufacturing demand and expansion in enterprise. The increase may only be temporary, however. Increases in activity often occur after China’s week-long holidays.

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