SUMMER UPDATE
DEAR LANDIS CUSTOMERS,
Now that we have entered July we are officially less than 6 months to Christmas, before you know it we will be in 2024 I am writing to provide some updates on what has been going on at Landis since the beginning of 2023. --
Rob Tompkins
TECHNOLOGY/EQUIPMENT
CONTENT:
Technology/Equipment
Freight/Small Parcel Carriers
Partnerships
4th Quarter Planning
Pick/Pack Technology
We have implemented new pack station technology with enhanced features, including:
The ability to track SKUs into each box in multi-carton shipments
The ability to put a customized 4 x 6” packing slip on the outside of the box
Wireless picking through handheld devices, to replace paper pick slips This allows for improved accuracy, and additional reporting/metrics Please reach out to your Account Manager for additional information
Veracore Enhancements
Veracore continues to make enhancements to the system These changes include:
New integrations to Ecommerce Platforms and Marketplaces. If you are working with Walmart, Amazon, Etsy, eBay, or Wayfair, we now have an simple and easy integration available.
Improved client access to your data. Rather than accessing everything through the web portal, we can provide access directly to your Order Management System. If you are interested in learning more, please reach out.
Manifesting System (DXS)
Upgrades within the manifesting system include all the changes for international shipments within the European Union The updates include all the necessary paperwork and new harmonized tariff codes that are required
Mettler Toledo TLD250 Dimensioners
We have recently added two Mettler Toledo TLD250 Dimensioners to our shipping lines and we are planning on adding two more prior to the end of October The dimensioner takes an exact measurement of each package that goes across the scale, thus allowing us to provide all small parcel carriers with true dimensions for rate shopping This equipment will also capture an image of each outgoing package Accurate dimensions help to minimize DIM charges that carriers are imposing These Dimensioners are the same ones used by UPS in each of their sort facilities, so we know that we have installed the correct solution
Future improvements will include the ability to write back the images to Veracore. We are also looking into adding a Dimensioner in the receiving department to take dimensions of all incoming products for future use within a cartonization program (allow the system to pick the right packaging for the contents of a shipment).
Pallet Stretch Wrap Machine
Landis has purchased a new Pallet Wrap Machine with a built-in scale – instead of these as separate pieces of equipment – wrapper and then scale, we combined them into one piece of equipment to help increase productivity This piece of equipment was just put in service and we hope to have it fully functional within the first two weeks of July
As everyone knows the cost of small parcel freight continues to increase and does not seem to be easing Landis has been actively trying to offset these cost increases by diversifying our small parcel relationships (FedEx, DHL, and USPS) Prior to 2023, Landis’ primary shipper of choice was UPS; however, with UPS taking a hard stance on pricing concessions, we have begun to ship more packages through FedEx and the Postal Services We have found that FedEx is more economically priced for certain weights, zones, and service offerings, so we have added it to our rate shopping matrix to help push down the average rate per shipment Please let me know if you do not want to ship via FedEx, otherwise, we will be inserting FedEx into all rate shopping matrices in July DHL has also been added to the rate shop, however, their price competitiveness is not at the same level as FedEx, so we are continuing to work with them to reduce their pricing
There are some major changes coming to the United States Post Office (USPS) with respect to certain levels of services. As of July 9, 2023, the USPS is rolling out “USPS Ground Advantage.” USPS Ground Advantage will combine USPS Retail Ground, First Class Package, and Parcel Ground Select services (including return services) into a single streamlined ground shipping service. One of the benefits of this new program is that it will not be subject to the rate increase that is going into effect as of July 9th; in fact pricing will be going down by 1.4% compared to the prior services. With this new change, USPS will still be one of the preferred carriers at lower weight (2 lbs. and under), so expect to see a change in names of the services coming from the USPS Another great feature that was not available prior, is each package will now come with $100 of insurance
One thing to be aware of is a potential Teamsters strike at UPS as of July 31, 2023 The Teamsters have authorized a strike as of June 28, 2023, if needed However, UPS Management and the Teamsters are still negotiating for a new contract What happens if UPS goes on strike? I hope this does not happen, but we would have to shift to using USPS, FedEx or DHL to deliver packages FedEx has already announced that if there is a UPS strike, FedEx will only allow for a 20% increase in daily average volume to be placed into their system Fortunately, we have been shipping more packages with FedEx, so this option will provide some relief The other option would be to shift to the USPS, which can not refuse shipments This is a great option for lightweight shipments; however, for heavier items, the USPS becomes a very expensive option We are monitoring the negotiation and working to develop a plan in case a strike should occur
PARTNERSHIPS
West Coast
As mentioned in a prior email, we have a working relationship with a fulfillment company based in Idaho that has been handling West Coast Fulfillment for several of Landis’ customers With the multiwarehouse functionality within Veracore, it is very easy to have multiple warehouses manage and fulfill orders for our customers One of the great things about this partnership is you still have one point of contact – Landis. We work directly with our partner to manage the day-to-day requirements. If you are interested, please reach out to me directly.
Europe
If you are planning on expanding to Europe, we have secured a partnership with a European Fulfillment Company - Salesupply Salesupply has multiple locations throughout Europe and they specialize in Ecommerce Fulfillment There is a representative based in the US, who will be more than happy to provide guidance regarding the European Market I have attached a leaflet about Salesupply If you are interested, I will be more than happy to introduce you to directly to their US Based Representative
4TH QUARTER
Hard to believe that we are already gearing up for 4th quarter 2023 as it seems like 4th quarter 2022 just occurred. As we normally do, your account manager will be reaching out to schedule meetings in August and early September to discuss your plans and requirements so that we can be sure to meet and exceed your needs during this busy time of year. Please be on the look out for correspondence from your Account Manager to set up a mutually agreeable time to meet I hope to see you on Teams, Zoom, Google Meet, or in person soon!
As we celebrate our 15th anniversary, we would not have achieved our goals without you – our clients!
Thank you very much for your business and we continue to strive to meet and exceed your needs.