Warehousing Archives - Fulco Fulfillment

How Does Working with a 3PL Save Money Long-Term?

There are many factors that contribute to your overall costs of fulfillment. Working with a 3PL (third-party logistics company) can keep these costs down because at each stage of the process, the flexibility and pricing that a 3PL offers provide advantages over internal fulfillment.

Warehousing

Utilizing your costly office space for storage isn’t an economical choice. Many 3PLs offer variable fees based on how much storage you require, allowing you to adjust your costs based on demand. Growth is unpredictable, so having the flexibility to increase storage space could save money and help to avert possible shipping delays. A good 3PL will have a reliable inventory process that keeps your goods organized and accessible.

Staffing

With in-house fulfillment, more than 50% of the total cost of fulfillment is labor. A company with heavy product fulfillment needs will see its staff costs soar. Hiring a 3PL to handle your pick and pack lets you rely on their staff so that you pay a predictable cost and can manage your cash flow. Finding and retaining the right 3PL with a well-trained, professional staff is the key to controlling your labor costs.

Bulk Packaging Savings

Do you use standard cartons? Your 3PL will purchase them in bulk and share those savings with you. In fact, they purchase many supplies in bulk: air pillows, packing tape, shipping labels, pallets, etc., keeping the cost of your supplies down.

Pick and Pack

In the early days of your business, you may have handled the pick and pack yourself, but as your business grows, you will want to outsource that to a good 3PL company that employs different strategies. The right pick and pack approach will be more efficient, saving you money and increasing customer satisfaction.

Freight

A 3PL allows you to lower shipping costs by using volume carrier discounts. An experienced 3PL will ensure the design and size of the shipment are the most cost-effective and don’t incur DIM freight charges. They can offer parcel presort discounts and many other money-saving options.

A Good 3PL Keeps Repeat Customers Happy

Good order fulfillment encourages your customers to remain loyal. On average, repeat customers bring more value than new customers. You don’t have to spend as much to convert them, and people familiar with your products are likely to make larger e-commerce purchases.

3PL Can Scale to Your Business

Growth is something that is very difficult to predict. You may not be prepared for a jump in sales, but you will want to take full advantage of it. Partnering with the right 3PL will ensure you are ready to seize any opportunity to grow your business.

FFI is a trusted, experienced 3PL that can help streamline your fulfillment, lower your costs and increase customer satisfaction. We are ready to help you grow.

If you are ready to save money and streamline your fulfillment process, our dedicated team is looking forward to working with you! Give us a call at 973.361.1700 or fill out our contact form.

Fulco Fulfillment Celebrates 20 Years with Customized Distribution Solutions

In September 2002, Jennifer Marcello and Anthony Rossi took their love for the fulfillment business and started a new venture. Now, twenty years later, they are proud to celebrate their success and reflect on their journey. It began when the two met while working together at Direct Mail Services, a large mailing and fulfillment business. Their combined leadership and experience drove them forward.

Their first mission was to invest in fulfillment technology and capitalize on Jen’s sales ability and Tony’s production intensity. Enlisting James Duffy and Robert Boyken to join them, they created Fulco Fulfillment, Inc. (FFI). Mr. Duffy and Mr. Boyken provided much-needed IT experience, and the team was able to combine a record of excellent services with advanced technology to manage the fulfillment process. The rest is history.

Location Means Success for Warehousing and Fulfillment

FFI soon expanded its customer base and moved to 26 Richboynton Road in Dover, New Jersey, its current location. This location is key to FFI’s success, strategically located near major highways, 45 minutes from NYC and major Newark shipping ports. Customers clearly appreciate this convenience, and FFI’s thriving warehouse and inventory management 3PL now boasts 143,000 square feet. We own our own buildings and can offer storage rates that are among the lowest in the Northeast.

Smart Fulfillment Solutions Allow for Seamless API Integrations

“Back in the early 1990s we developed and wrote our own in-house warehouse management system, but today’s technology means that customers demand 24/7 real-time visibility,” said Jennifer. After extensive research, they found Veracore Software Solutions, a smart 3PL software order management system, and warehouse management system that perfectly met their clients’ needs. FFI has created a technology foundation that is sustainable and adaptable enabling FFI to thrive in an increasingly digital world. Our systems and methodologies are an integral part of the way fulfillment works in today’s industry, software that fully integrates with leading companies in e-commerce fulfillment.

Streamlining 3PL with a Flexible Workforce

In addition to having an experienced full-time staff for both production and client service management, FFI has developed an innovative temporary labor pool. FFI relies on our existing full-time employees’ friends and relatives to fill the void when additional help is needed. For over twenty years, FFI has avoided hiring inexperienced temporary help and has relied solely on their on-call staff to handle increased production needs. Our facility combines bulk, racked, and high-velocity pick areas for organized storage and efficient picking. Quick-pick areas are replenished on a regular basis to maintain impressive turnaround times, regardless of volume.

“At FFI we strive to ship orders within the same day if received before 1:00 PM. However, nearly all orders will ship before the end of the next business day. Our product is service, and our job is getting our clients’ orders picked, packed, and shipped to arrive at their destination when they need it to be delivered.”

Customer-First 3PL Solutions

Jennifer’s start in the business was in direct mail sales at Direct Mail Services (DMS), following her stint in the corporate world at American Express, Credit Card Marketing Services. Once on board at DMS, Jennifer was trained in all aspects of selling: printing services, direct mail services, presorting services, warehousing, fulfillment, and distributions. Her passion and expertise for warehousing, fulfillment, and distribution services flourished.

Jennifer believes, “Our success comes from our experience and our commitment to taking care of the customer. So, when a customer has a unique need, we take care of it.” FFI takes pride in customer service and never loses sight of the fact that meeting and exceeding our clients’ needs and expectations is what separates us from the pack.

Offering the Best in Warehousing and Fulfillment

FFI has remained innovative in its growth; technology has revolutionized order fulfillment success. With the boom in e-commerce and Amazon, the business model shifted to rely more on e-commerce shopping carts’ auto-generated order file uploads, API integrations, and Fulfillment by Amazon (FBA) services.

In the past four years, two other key members have joined Fulco Fulfillment, Inc. in managerial roles. Anthony Marcello, Director of Operations, brings his keen attention to detail, streamlining the warehouse’s efficiencies and continuing to organize operations. Erik J. Mathiesen, Technical Operations Manager, has been instrumental in orchestrating the cloud-based server migration, properly mapping FFI’s shipping stations and now enabling FFI to offer the much-awaited API integrations for their e-commerce customers. As it always has, FFI embraces the challenges ahead and looks forward to giving its customers the best in service for the next 20 years.

How We Handle Product Version Control

Product version control and expiration tracking are paramount details for meeting unique business requirements. Luckily for our clients in the healthcare industry, Fulco Fulfillment Inc (FFI) has software with sophisticated capabilities that supports tracking expiration dates on regulated products.

Organizing inventory according to expiration date is not only extremely important for healthcare companies, but for financial and manufacturing customers too. Product version control is the process we use to identify and track major or relatively minor revisions and version changes made to any kind of product. Using settings defined by our customers’ business parameters, we make it easy to aggregate goods based on their lot, expiration date, or version.

Product Version Control Relies on First In, First Out

Every version of a product is assigned a sequential number. The FFI order management system (OMS) automatically funnels through these numbers from the top down, until it finds the current version, otherwise known as FIFO (first in/first out). Inventory rotation can be set as FIFO or FEFO (first expiring/first out) which captures serial numbers. Another feature our system offers is the ability to turn versions on or off.

Think about your everyday visit to the store, and you’ll see the FIFO method in practice. When an employee restocks products, they put the newest inventory items on the back of the shelf and the oldest inventory in the front. That makes it more likely that all the stock will be sold before the product expires.

FFI uses the FIFO model for physical inventory flow in order to rotate incoming inventory. Stockers place newer items at the back of the shelf and move the older ones to the front. When a customer places an order, the picker will pick the older stock from the front of the shelf, so inventory moves out in roughly the same order in which the warehouse received it.

When the order for the product is fulfilled, the correct product version is picked, packed, and shipped. For example, the OMS sees your product as a bottle of vitamins, but the warehouse management system (WMS) sees it as two separate products, or two separate versions. Each of these versions have a distinct SKU (stock keeping unit). When an order is placed for the bottle of vitamins, the OMS will automatically select its current version. Picking and packing will be performed with confidence knowing that the most current bottle of vitamins is shipped to the consumer.

Since successful inventory management comes from traceability, we keep careful inventory of how many units of each SKU remain in our distribution center. If the expiration date passes, you will receive an alert from FFI’s OMS. You can then decide what to do with the spoiled inventory in our warehouse. Customers can choose to return the product, destroy the product, or do something completely different. Ultimately we want to see our customers succeed with up to date and accurate product version control.

Trust FFI with Your Product Version Control

We understand how important it is to keep your stock of products up to date so consumers aren’t receiving expired or old products, and you’re meeting your regulation requirements. You can trust our sophisticated software and your dedicated Customer Service Representative team to faithfully serve your account. Your team is composed of professionals who understand your business and can address urgent needs immediately. Contact FFI to learn how we can make product version control a breeze.

How Your Product is Packed in Shipping Containers Could Save You Money

When it comes to e-commerce fulfillment, there are different ways to load and pack shipping containers with your product. Shippers are either utilizing palletized or floor loaded shipments. The shipment can either be full truck load (FTL), or less than a full truck load (LTL). Using our top-of-the-line work force, Fulco Fulfillment Inc (FFI) can handle either method efficiently, and probably save you some money. Here’s some information on what the difference is between floor loaded vs. palletized shipping, and why you should know which your product is currently using.

Palletizing Shipping Containers

Palletizing your products means to simply stack and ship your products on wooden pallets. With pallets you will find there is more ease of movement and is a safer way of transmitting items from one place to the next, but it can be quite expensive as well.

Your decision to palletize will depend on factors such as fragility of your cargo, the destination of your cargo, and the mode of transit by which your cargo is being shipped. The pallet provides a stable and load-bearing bottom for each unit, which can then easily be moved and loaded with a pallet jack, forklift, or other handling equipment. Once the products are stacked together, they are held up using straps or plastic wrapping. After this, it is ready for shipping.

Pros and Cons of Palletizing Shipping Containers

Pro: pallets are great for shipping products both nationally and internationally.
Pro: pallets can protect more delicate cargo. Using pallets allows the shipper to turn a bundle of smaller sized boxes into a stronger single unit that will be able to provide more support.
Pro: pallets are faster and easier to load and unload because you can use machinery to move them.
Pro: pallets can protect cargo from water damage. The pallets protect the shipment en route by keeping product off the floor with its elevated surface, creating a barrier for the products inside from soaking in the event of a leak from an overseas voyage.
Pro: palletization can work for both LTL and FTL freight.
Con: palletizing can come with significant cost implications since the pallet itself increases the weight of overseas shipping containers.
Con: you can fit less product in each shipping container because the pallet takes up extra space.

Floor Loading Shipping Containers

In contrast, floor loaded containers are when the contents are loaded onto the floor of the container directly. This can also be known as floor stacking and it allows you to fill the entire container from the floor to the ceiling with the contents.

With floor loading, you will be able to load larger items at a significantly lower cost. Typically this would be more time consuming because manual loading and unloading is required, but with Fulco Fulfillment’s experienced team, this issue is absolutely minimal.

Pros and Cons of Floor Loading Shipping Containers

Pro: floor loading your products significantly decreases freight costs because the entire container is being used to ship the products in question.
Pro: you save money by not paying for pallet. You will also be less likely to need more containers when shipping out your product.
Pro: you reduce the carbon footprint of shipping your products because each container is packed as efficiently as possible.
Con: more delicate products can be damaged. Floor loading your products is not the most suitable option for every product that you may be offering. With floor loading comes an increase in the likelihood that the products could get damaged during transit. Because of this, floor loading is typically done with heavier and bulkier items such as construction equipment, furniture, etc.
Pro: palletization can work for both LTL and FTL freight.
Con: there are additional labor costs associated with loading and unloading a freight shipment off of the container. It also takes extra time to load and unload the shipment in question.
Pro: however, experienced warehouses like FFI are efficient floor loaders. We keep these additional costs to a minimum with our top-of-the-line work force who have years of expertise handling floor loaded shipments.

FFI Can Help You Optimize How Your Shipping Containers are Packed

The most important thing to remember when choosing between the two options is to do an in depth cost-benefit analysis to see what works best for your business. With FFI as your e-commerce fulfillment partner, we can help you determine whether palletization or floor loading is the best option for getting your products quickly and safely to your customers. To get started, fill out our contact form or give us a call at 973.361.1700.

Trends in Warehousing and Distribution

The role of third-party logistics companies has been shifting against the backdrop of steady disruption and game-changing technology. Leading warehouse and distribution centers like Fulco Fulfillment Inc (FFI) have seen consistent trends in 5 distinct areas:

Supply Chain Integration
Outsourced Delivery Services
Sustainability in Warehouse and Distribution Services
The Amazon Effect
E-commerce Will Accelerate

Supply Chain Integration

Improved Communication

Technology improves many logistical tasks. The goal is to determine how best to utilize technological advancements to simplify and streamline the communication process. There are several Warehouse Management Solutions that utilize API electronic data exchanges to improve communication and increase transparency.

Proactive fulfillment centers and 3PLs understand the importance of having the best communication platforms available. These platforms support customers by providing real-time updates on order fulfillment, package tracking, inventory levels, historical data, and more.

Warehouse and distribution centers will look to leverage integration to build value-added services within their fundamental workflows and software. It is possible to integrate picking and packing using barcode scanning technology which communicates directly to shipping software. This reduces the costs and eliminates lost time and inevitable errors. API integrations automate order fulfillment workflows leading to improved communication. Supply chain integration through data sharing encourages visibility, transparency, and accountability by all parties involved.

Outsourced Delivery Services

Focusing on Core Competencies

The power of third-party delivery services is basically an opportunity for warehousing and distribution centers to deliver products to customers using independent contractors. This outsourcing eliminates the responsibility of maintaining a fleet of trucks and all the additional costs that incurs. While several 3PLs and fulfillment centers are expanding their fulfillment and distribution platforms to smaller, regionally focused networks, hiring and building their in-house delivery network takes time and money. To ensure they can efficiently deliver to customers, many warehouse and distribution centers are contracting delivery services.

Packaging Supplies Will Go Green

Customers Reduce Their Impact on the Environment

To be eco-friendly, 3PLs have been integrating environmentally-conscious practices into their operations. Optimization of packaging supplies has become an imperative eco-conscious strategy for shippers.

The 3PLs are working with new ways of designing and producing their products, attempting to lessen their carbon and environmental footprint, while simultaneously saving on costs. Consumers rate sustainability as important and will select companies that support green initiatives. Trends have shown an overall shift among the broad customer base today towards a more eco-aware business model.

Green packaging has brought a wave of new eco-friendly alternatives to traditional packaging materials. Here at FFI, we see a rise in biodegradable packing peanuts, corrugated bubble wrap, and air pillows made of recycled materials.

There are many packaging options available to the environmentally conscious business.

The Amazon Effect

Warehouse and Distribution Centers to the Rescue

“The Amazon Effect,” which has ushered in the expectation of rapid delivery with minimum effort and the desire for a seamless order experience, is one that every customer has the right to expect. The dominance that Amazon has on the U.S. e-commerce space isn’t without its pitfalls. Amazon sellers have had to find alternative shipping options, relying on warehouse and distribution services like FFI to prepare their goods for Fulfillment by Amazon and allow them to live up to their brand promise. This meant developing closer relationships with their outside fulfillment team; warehouse and distribution centers rescued them.

We can expect to see more brands turning from basic service providers to more comprehensive fulfillment partners. The latter will offer a wider range of services and take the time to understand individual businesses, which puts them in a better position to bend to the needs of that brand and help it to scale more effectively.

E-commerce Will Accelerate

E-commerce has created a world in which consumers can shop almost anywhere, anytime. Supply chain integration can enable quicker response times to consumer requests.

This increase in demand will continue to put pressure on warehouse technology. We’ve already seen shipping times grow at major e-commerce retailers, and the postal service burdened as smaller retailers try to pivot to online. Additionally, this will result in an increased demand for warehouse space that will likely result in more refurbishment of older buildings. Being able to build and flex warehouse capacity to support customer demand is a strength FFI offers our customers.

Stay Prepared with Fulco Fulfillment Inc.

Understanding the shifts in the e-commerce landscape will set you up for success. Get ahead of the warehouse and distribution trends before they get ahead of you! FFI can help you with all of your warehousing and distribution needs. Call 973.361.1700 or fill out our contact form.

Warehouse Fulfillment Technology Saves Clients Time & Money

Fulco Fulfillment’s Warehouse Management System (WMS) follows best practices to streamline every aspect of our warehouse management fulfillment processes.

While each client has its own needs, managing their differences doesn’t have to be an arduous process. Whatever the primary focus of your business, whether it is B2B, B2C or e-commerce, the flexible solutions offered by Fulco Fulfillment are guaranteed to meet your needs and scalable to grow along with you.

Warehouse efficiency is critical to operational success. Fulco Fulfillment WMS helps keep our warehouse organized, clean and accurate, so workers can be more productive and we can keep customers happy.

How WMS helps us focus on our warehouse fulfillment solutions

A Warehouse Fulfillment System Keeps Things Organized

In order to keep our warehouse running at tip-top efficiency, we utilize barcode technology in addition to a wide array of picking options and shipping station integrations that run in real time. When your company outsources warehouse services the last thing you need is unorganized mess that will set you up for failure. With our proprietary WMS system we can locate any inventory within the warehouse with just the push of a button. Before a receipt is submitted to the WMS, the system is told where the units we receive are to be located.

Thereafter, by engaging WMS we can select search or open, or use warehouse location services to drill down to specifics including where in the buildings, which aisle, which rack, which shelf and more.

Fulco Fulfillment also offers temperature monitored areas in the warehouse that range from approximately 60° F to 79° F, and we can provide reporting for tracking.

A Warehouse Fulfillment System Keeps Things Clean

One of the most important aspects of maintaining a warehouse is keeping it clean on a daily basis. This begins at the receiving dock which is kept clean and well organized. Orders that arrive are immediately expedited to their place in the warehouse so that the next order that comes in can be accepted without any clutter getting in the way.

Products more in-demand and moved around more often are kept closer to shipping, this allows for more efficient movement of goods throughout the warehouse. Stock in high demand is easier to handle on a regular basis if it is closer and more accessible. Transporting it across less space also means saving time and money.

A Warehouse Fulfillment System Keeps Things Accurate

Clients have the ability to set their own understock levels so they know when to replenish stock. Depending on the circumstances of every business, an e-mail reminder can be delivered the moment inventory dips below this level and a secondary e-mail notification can be delivered when the inventory becomes completely empty, reaching zero.

Fulco Fulfillment places tremendous importance on the accuracy of material received, because when receiving is out of order so is the rest of the warehouse. Proper inventory accuracy, faster order fulfillment, and an increase in overall receiving productivity are goals we constantly strive for.

When WMS receives the details of the inventory, clients have the ability to access multiple inquiry options and generate reports. Every product that is received through Fulco Fulfillment’s warehouse is recorded in the WMS, allowing the end user to navigate the information pertaining to all products with complete ease.

When receiving our clients’ specifications Fulco Fulfillment will make inquiries to determine the following information:

Products specifications: Do they include versions, lots or expiration dates?
Pallets: Can they be stacked, will they be floor loads, shrink-wrapped, what are the size requirements and are there labeling requirements?
Quality: What is the customer’s tolerance level of acceptable defects?
Carton sizes and types, including corrugated, branding, size limits and other considerations.

When it comes to receiving, our fulfillment director ensures the receipt of materials is done correctly, beginning with verifying all receipts by skid, carton and piece count against packing slips supplied. This is a critical part of the process because receiving mistakes often lead to negative impacts on future productivity and accuracy. Packing lists or shipping documents are signed off for accuracy. Any and all discrepancies are immediately reported to the client via e-mail. If necessary, images are taken and sent to the customer.

We use our receiving procedure to verify all quantities received and the data entered by our operators. Verifying goods received can depend on the cargo and customer expectations regarding:

Quantity
Description
Product code
Condition of goods
Weight of goods
Temperature, if applicable.
Receipt identification number
Customer name
Shipper name (vendor)
Purchase order

Once everything is confirmed, the material is put in its proper place in the warehouse, also known as “locating.” This allows a computerized manifest to be accessible on-line to our clients 24/7. If physical count of receipt quantities performed by Fulco Fulfillment does not match the packing list quantities, the client is notified immediately. The client can now contact the vendor to determine how to proceed and advise Fulco Fulfillment accordingly. This concludes with confirming that the putting away of the product is completed.

The Efficiency of Using Warehouse Space

Fulco Fulfillment’s warehouse is occupied with the inventory of a wide array of clients, each with their own variety of different sizes and shapes. We store it all. Utilizing vertical and horizontal space has always posed a challenge, but Fulco Fulfillment has the experience to circumvent any problems time and time again. By adding half-pallet locations, bins can be utilized in flow shelves whenever applicable. Our expertise helps us spot and engage underutilized space by reducing aisle width when it becomes available, consolidating the location of inventory, and reviewing the depth of the needs of storage.

To learn more about our warehousing services see https://www.fulcofulfillment.com/our-services/warehousing/ or give us a call at 973-361-1700. We look forward to assisting you making your business the best it can be.

Outsourcing Fulfillment Transition Planning

There may come a point in time when you get sick of using your basement, garage or spare bedroom as a means to organize your product and fulfillment, Fulco Fulfillment wants to make that transition process as seamless as it could possibly be when you outsource your fulfillment. As your business grows, it is important to keep up to date with deliveries or else the business could begin to lose credibility and no one wants to see that happen.

Outsourcing and moving your product to a larger fulfillment facility such as Fulco Fulfillment Inc. would be an optimal move to continue shipping products without any interruption of service. Transitions, however are not as easy of a process as it might appear to be for each business is unique and requires different methods of delivery, storage, etc. In order to begin this transition process, it’s important to understand and think about what would be best for your small business.

Understanding the Logistics Profile

Transitioning begins with planning and in order to accomplish that meetings must be scheduled to talk about what the appropriate requirements are for the product and how a fulfillment warehouse such as Fulco Fulfillment Inc. can provide those requirements to you through our operational processes. If necessary compromises may need to be made in order to fulfill the appropriate requirements for your business. Transitioning to a larger facility may throw what you may know about delivering and storing your products out the window but that is what makes these meetings so important so that in the end you feel more at ease about spreading your product far and wide. Here are some things that should be considered throughout the meetings:

Service levels required
Sources of inventory and replenishment lead times
Special product handling requirements:
- Environmental requirements
- Fragile
- Liquid
- Hazmat
- Weights and dimensions
- Expiration dates
- Serial number control
- Subscription handling
Channel support:
- Amazon
- Big box selling (EDI and routing guides)
- Small box retail
- Selling online or on multiple online platforms
- Controlling inventory availability across channels
The more obvious discussions:
- Order volumes, line item volumes
- Seasonality
- Number of SKU’s and SKU churn
- Who will handle customer service and returns
- Packaging and assembly requirements
- International shipping

In order to make your meeting as effective as possible, think about the points listed above so that your company and a fulfillment company such as Fulco Fulfillment Inc. can reach a proper agreement that makes everyone happy in the end.

Systems integration

In order for the transition process of outsourcing fulfillment to begin it is imperative that both your methods of delivery whether it is manually or through an ecommerce service can communicate with Fulco Fulfillment Inc. quickly and flawlessly. Without any method of communication to Fulco Fulfillment’s it would impossible for your small business to get the orders out on time and without fail. Becoming familiar with how your business is able to relay product information will be important when beginning the transition process so you will know how to keep track of the items going in and out of the fulfillment warehouse on a daily basis.

A strategy for shipping is also important when beginning the transition process of outsourcing fulfillment. If your business has a policy for 2-3 day shipping for example then that is something the fulfillment warehouse should know right away in order to properly organize orders that will need to be shipped. Let the fulfillment warehouse know about carriers to use, strategies for international shipping and etc.

The transition process and outsourcing fulfillment can only start once you are certain your existing systems incorporated already at your business can be properly moved over to a warehouse like Fulco Fulfillment Inc.

Make sure any customers, carriers, suppliers and vendors know about the new location of the warehouse you move to otherwise you’ll be left with a lot of angry individuals.

Moving day

Something to keep in mind once the day to move actually arrives is to move the product in your current location in pieces or specifically halves. While moving it is important to keep shipping from the old location until all of the product is moved successfully to the new warehouse. Moving in parts will be able to give you some insurance in case there are any issues that may arise during the move process. The better you plan, the more likely the transition process will go as smooth as possible without issue and with Fulco Fulfillment Inc. at your side transitioning will be as stress free as possible for the sake of your business.