As we reflect on IDS’s 2012, a few (or more) main themes are apparent:

1. It was a roller coaster of a year: We had some very strong months and months where sales were [...]]]> “Where was I? – looking ahead. What has me writing this? – looking behind.” Also a little looking forward still!

As we reflect on IDS’s 2012, a few (or more) main themes are apparent:

1. It was a roller coaster of a year: We had some very strong months and months where sales were well below expectations. That pattern was a reflection of national retail sales in general. One month the news is doom and gloom and lack of business activity. The next month we make up for it and then some. While we have always prided ourselves in our ability to handle the peaks and valleys of our business and that of our many clients, this year certainly pushed that capability. We will continue to strengthen our ability to flex to the known, and unforeseen, needs of our clients.  (Capable, FLEXIBLE, Process Driven)
2.. We passed the test: This annual exam determines if we have sufficiently prepared and anticipated the Black Friday/Cyber Monday weekend and the following 10 days or so. This was generally a very successful period for us this year, again, with a couple of programs edging (barely) outside our quality standards during the peak of stress while we also achieved some new and dramatic record shipping records for several accounts while hitting all performance standards. (CAPABLE, Flexible, Process Driven)
3. Success rewarded: We saw continued renewals from existing clients and increased pace of new clients choosing our programs. This was partially offset by some clients either going out of business or withdrawing from markets we served for them. That’s part of the “roller coaster” theme above.
4. Parcel Freight Success: IDS and UPS worked together to provide our participating clients with a continued strong parcel freight discount program. We anticipate even more clients joining the program in 2013. The parcel cost issue will continue to grow in importance for us and our clients as additional options start to hit the market. We will have a new LightWeight Parcel Program rolling out in January that will provide a new and unique opportunity for clients to delivery their lighter packages at lower costs and faster service times then the current traditional offerings. (more below)
5. Go Green! IDS, and by extension our clients, made significant progress in our Green Initiatives in 2011; new lighting has reduced our energy needs, continued focus on using recycled materials and recycling the waste product stream from our operations, changes in cleaning products and even our “de-icing” products (being used as we write, unfortunately).
6. Go Green 2: Our intermodal transportation efforts continue to step up and others within the industry have taken notice. Our team was responsible for 7.1 million miles of intermodal moves, the majority with clients that we help convert to intermodal, that replaced conventional truck traffic saving an estimated 850,000 gallons of fuel and eliminating 6,100 tons of carbon emissions.
7.    Intermodal Growth: This year we strengthened our relationship with the Union Pacific and were rewarded by the UP with unique co-branding opportunities.
8. In the News! In conjunction with the Journal of Commerce, we’ve established a method to index the intermodal spot rate market and report stats, analysis and commentary on a weekly basis. We have our own published index!
9. Full Service Transportation Management: IDS is implementing a new, full service Transportation Management program with a new client. This program is another unique solution for transportation management developed by IDS Transportation. We’ll be using this first step as a springboard to help others find out how this service, coupled with our technology, will benefit them in cost saving and capacity alternatives in the ever changing transportation market.
10. We passed another test: Of course, this one we have to pass, but we continue to score very high marks from AIB for our FDA GMP program. In addition, we had client quality audits that we also passed with very high scores, including audits that peered deeper into HR, Disaster Recovery, and Recycling programs. This is reflected in our new company tag line: Capable, Flexible, PROCESS DRIVEN.
11. Exports: We are seeing more parcel exports and more destinations. We will be offering an additional option for Canadian parcel shipments early next year. It’s very PC.
12. Teamwork: Even as IDS Transportation continues to grow their unique client base and our domestic intermodal business (along with LTL and Truckload), we see continued growth in our order fulfillment client base utilizing our transportation services. We continue to improve the offerings, the costs, and the internal teamwork to make this a highly valued service by more and more of our customers.
13. Health care cost issues and uncertainty: More than in the past we are seeing significant health care/insurance cost pressure and we expect this to worsen as more of the ACA provisions start. We are tracking this very closely but at some point the ACA will bring sweeping changes to our industry. It’s scheduled to do so January 1, 2014, but that train may not be running on time. Expect to see updates from us in 2013 on this issue.
14. Another great year for a team we grow to appreciate more and more each year: Great safety results in 2012 from a group that continues to go above and beyond for clients and apply the experience that helps differentiate us.

Looking forward to 2013?

1. Parcel options: We will be expanding our Parcel Discount program to include new and unique options for lightweight parcels (below 1lb. and 1lb to 5lbs.) as well as offering new and better Canadian options. We are determined to be at the forefront of parcel delivery options and we are really excited about the announcements we will have in January for our clients on this topic.
2. Growth: We believe our existing clients will continue to grow next year, we have several new clients that will be with us for a full year (some of whom have the opportunity for dramatic growth), we have several new accounts starting up in the first quarter, and we have many other opportunities we are continuing to work on. We believe that 2013 will be a good year for growth and we will grow in a fashion that strengthens our abilities for all clients.
3. Participation: Our staff is already scheduled for more speaking engagements and panel discussions than last year and with likely more to come, more trade show activity, IDS Transportation’s Intermodal Index is now being carried by the Journal of Commerce, continued leadership roles in key industry and lobbying groups.
4. METRICS, METRICS, METRICS: We have finished the beta-testing and will roll out internally our new metrics program. Monitors are being installed and we will soon be pushing weekly and daily metrics to our work floor, office common areas, and break rooms. We expect to start pushing customer specific metrics to clients automatically later in 2013.
5. IDS Transportation will be formally split into a separate company reflecting this unit’s growth, opportunities and regulatory changes. This move will have no impact with current relationships (inside IDS or with clients) and will significantly aid this team in their overall growth.
6. AND… We have other efforts and opportunities that will likely come to fruition in 2013 that will continue our efforts to build the premier order fulfillment solution for clients in our target customer profile.

To our customers, their customers, our vendors, and network of supporters: Thanks for helping make 2012 a success for us as we hope our efforts helped make a material and positive difference in your year.  

I am sure it will come as no surprise when I tell you that e-commerce sales have hit record numbers again this year. This also means that e-commerce companies are sending more and more products direct to consumers. Yet, many of these companies don’t realize that there is a major difference in the [...]]]>

I am sure it will come as no surprise when I tell you that e-commerce sales have hit record numbers again this year. This also means that e-commerce companies are sending more and more products direct to consumers. Yet, many of these companies don’t realize that there is a major difference in the way products are sent and packaged through fulfillment when shipped direct to consumer rather than into retail outlets. Here are some useful tips that will help ensure that products are shipped safe, secure, and arrive undamaged when fulfilling e-commerce orders.

Dirty Laundry

Apparel is one of the top selling e-commerce products. Shoppers are buying everything from prom dresses to underwear online, but the one thing you want to avoid is sending that brand new article of clothing and having it arrive dirty. No matter how clean your warehouse is, there is a certain amount of dust that travels through the fulfillment facility. Keeping your apparel products in bags will help to avoid having it arrive to the customer dirty. This is a good rule, not just for apparel, but also for handbags, stuffed animals and other textiles.

3-Foot Drop Rule

Glass and other fragile products should be able to pass a 3-foot drop rule. This means wrapping the product in bubble wrap or placing it in an over box to help prevent damage during shipping. This may come as a surprise, but just writing ‘fragile’ on the outside of the box does not mean the shipping companies will give it any extra care.

Ready to Ship Packaging

For faster moving items, ready to ship packaging can not only save time and money, but can also give extra protection to the product.  Designing the package so that your fulfillment company can place a shipping label on the outside of the box can be very beneficial. Many electronic products are great examples of ready to ship packaging.

Double-Seal

All liquids should be able to pass the double-seal rule.  Make sure the lid is tight, which is the first of the two seals needed.  Many liquid products will come with a seal under the cap or lid making the second seal.  For products that are not double sealed already, using tape to secure the lid can provide the second seal.  It is also recommended to use a plastic bag or even bubble wrap to help prevent damage and minimize leakage should it occur during transit.

Lost and Found

Small items can often get lost in the package and many times are thrown away when they are mixed with other larger items.  Make sure to bag those smaller items so that it is easier for the customer to find them when their package arrives. Jewelry, cosmetics and small sample products are good examples of items that should be bagged before shipping.

The last thing any customer wants when they are excited to receive their online order is a damaged product. Following these 5 simple tips can help resolve issues with products arriving dirty or damaged during order fulfillment and transit.

Written by:

Michael DeFabis

Sales/Marketing Coordinator

Integrated Distribution Services

317-837-7007

For more information on how IDS can help with your e-commerce shipping challenges,  Contact Us Today!

There are many forms of intermodal transportation. The type of intermodal we are addressing is where a truck handles both ends of the shipment for a pickup and delivery, with the long-haul being run over the rail. The railroads have made [...]]]> What do you think of when you hear the word ‘intermodal’…slow, unreliable, complicated???

There are many forms of intermodal transportation. The type of intermodal we are addressing is where a truck handles both ends of the shipment for a pickup and delivery, with the long-haul being run over the rail. The railroads have made and continue to make substantial investments in infrastructure, technology and people to give intermodal truck-like characteristics, while being cost and transit competitive on lanes over 750 miles.  The investments have positioned intermodal as the fastest growing segment in domestic transportation and pushed what many call the highway-to-rail conversion to the next level.

With that said, there are still many shippers holding out on the tremendous value intermodal can bring to their organization because of many misconceptions that still exist in the marketplace.  These misconceptions were created years ago and have since been corrected, but continue to live in the folklore of many transportation decision makers’ offices today.  The image misconceptions is a contributing factor to shippers leaving an estimated 20 million loads yearly on the road that would be a good fit for intermodal.

Now, let’s take a quick look at the most common off track thoughts.

Transit Time

The first misconception we typically hear is rail equals slow.  This is no longer true.  We typically see transit equals truck, plus a day.  There are some lanes with expedited service that have the same transit as truck.  Transits do stretch when the shipment needs to be interlined between railroads.  For example, the shipment is a cross country shipment that originates on the Union Pacific, then interlined to Norfolk Southern.  In this case, you can expect a longer transit, but not the norm as many believe.

Unreliable

The belief that rail carriers are unreliable; aren’t able to follow through on their commitments; and drop the ball on making their deadlines is still the image for some.  Today, rail is frequently used for big box retail shipments.  This wouldn’t be possible if it weren’t for the reliability of service levels.  Could you image the fines placed upon a shipper?  In any case, reliability was a problem not so long ago, but with the investments made in infrastructure, technology and people the railroads have positioned themselves to gain the trust of the shippers.

Our experience has been that intermodal is more reliable than trucking the freight with our customers.

To speak more on the reliability, the largest truckload carriers now own 39% of intermodal boxes.  These asset carriers made this investment because they believe intermodal service is reliable and is the replacement for long haul in the near future because of the various challenges they face with driver shortages, regulations, fuel, insurance, etc. that we’ve all heard and read in the articles on trucking’s challenges.  These challenges are real and fast approaching a head.

Damage and Loss

The trucking advocates would like everyone to believe the combination of truck and the rail service will only heighten the possibility of damage, but that’s simply not true.  With the blocking and bracing measures put in place, the chances of damage occurring to your intermodal shipment are no more than trucking alone.  The railroads have damage prevention units that assist shippers along the way to help ensure damage free-delivery of your products.

Security is an advantage many bypass as a big plus for intermodal.  For shippers having high value product, intermodal has a significant advantage since it is not on the road or not open to driver challenges.  While farfetched, the example I heard at one conference is “have you ever heard of the train stopping at a rest stop, then running home to take care of an issue” does help bring some clarity to security.  The majority of the shipment is on the rail with no access to others, thus making the security significantly better than trucking the product over hundreds of miles.

Competition

Another area of misconception is the railroads don’t need to compete.   With the consolidations and mergers of the North American railways and with each specializing in certain corridors, there are very few carriers available to compete with each other.  However, the railroads are focused on highway-to-rail conversion and know their potential customers are currently using trucks to haul shipments, and this is where they are competing hard for business.  For this reason, the railways are working closely with trucking companies to offer truck and rail combinations with flexibility, improved speed and lower costs.

Complicated

We’re almost to the end and you may be thinking great, but intermodal is all too complicated and will not fit into my TMS.  This hesitation is also a relic of the past.  Previously, shippers had to arrangement the origin dray, the line haul, the destination dray, multiple manifests, manage the hand-offs, do the tracking, and then reconcile all three invoices versus the one they would get with their truck shipments.  In today’s world, the IMC and railroad work hand-in-hand to offer a door-to-door service that takes all the complication headaches away from the shipper.  Operationally, the door-to-door service looks just like a truck.  You tender the shipment to the IMC and they take care of the rest and at the end of a successful shipment send a single invoice.

Now do you know Intermodal?

Hopefully we’ve been able to help clear up some of the bigger objections.  There are still circumstances when trucking alone is the best option for your shipment, but it’s worth taking a look at the opportunities and additional advantages that intermodal could create for your company: cost savings, competitive transits, shipment protection, enhance  capacity requirements, decrease highway congestion, and with an improved carbon footprint.