Trux Cargo

How Do You Reduce Inventory Shrinkage?

One of the most typical difficulties with inventory shrinkage is a fall in earnings in accounting records due to retailers. This issue will take longer to rectify because all of the records are listed in the account, which will take longer to update.

We will learn why inventory shrinkage occurs and what steps may be taken to prevent it in this blog. What procedures should be taken if this problem arises in order to correct accounting entries and increase profit margins while lowering inventory costs?

Inventory

Inventory refers to the vast number of products and resources that a firm purchases in order to sell them on the market. The clients in the market will purchase these things. These products must be sold to generate a profit in the business. Inventory filled business is the term for this process.

Inventories shrinking causes a loss for businesses that rely on inventory. Let's look at some options for minimising this loss.

Inventory Shrinkage

Inventory shrinkage is defined as the difference between available items and purchased inventory. Because the available inventory is usually smaller than the inventory brought in, the corporation will lose money.

Inventory shrinkage is a common occurrence in the retail industry, and it has a significant impact on the company's profitability.

As a result of the shrinkage, the corporation raises the price of the goods it sells to customers. While shrinkage is unavoidable, there are measures that can be employed to minimise it.

Impact on Accounts 

The documenting of losses is essential to maintain track of inventory shrinkage, which lowers the company's profit.

The steps for tracking losses are as follows:

1. Recognize the losses that have occurred and document them.
2. The monetary losses must be accurately recognised.
3. The extent of the losses should be examined in the books.

If the loss is minimal, the COGS account will be charged; if the loss is large, a separate account will be created. Because the debit will be loss and mass losses can be controlled more efficiently from the company's earnings, a separate account should be formed to track the losses generated by shrinking.

The rise or decrease in gross margins due to shrinking can be accurately represented in the book as losses.

Inventory Shrinkage Rate

According to the business industry the average inventory shrinkage rate varies a lot. The optimum inventory shrinkage rate is approximately between 1% to 2%. The minimum the inventory rate the better is the profit. 

The key challenge for the inventory loss is to understand the cause of those losses which lead to the shrinkage. Therefore preventive actions should be taken to resolve the shrinkage. 

Causes of Inventory Shrinkage

Before moving forward to the methods to reduce the inventory shrinkage let us explore the reasons due to which this shrinkage occurs. Here is a list of few of them:

1.    Theft

Before we get into the strategies for reducing inventory shrinkage, let's take a look at why it happens in the first place. 

Here's a sample of some of them:

i.    Identity Theft

The identity theft is caused in small business where small packages are slipped inside the bags or beneath clothing’s. This stealing is known as shoplifting. In large business stealing can be difficult. Along with large products which can be saved from the theft.

ii.    Personnel Theft

This theft is caused by the staff members as they have easy access to the inventory making them in close contact with the warehouses to exploit the resources which have been saved. In today’s stats the personnel theft is caused around 42% in large business. As the resources are in large quantity stealing the commodities is easy. Although this is a theft which cannot be easily detected but it is not unachievable.

2.    Error in Administration

The wrong data entry, mistakes caused in cash accounting, or incorrect sales record etc. are the common errors which occur in the inventory shrinkage called as the administrative errors. The error indicating the losses in the account books is called error by administration.

3.    Damages

The damage is caused due to water leakage, breakage, cracking, and other reasons during the transit, storage from the retailers end. These damages makes it difficult for the commodities to be sold as the product gets damaged. All these losses have to be bared by the company causing losses and resulting in the inventory shrinkage.

4.    Perishable Inventory

There are many products which gets expired and due to this they need to be discarded. The products which come under this list are food, diary, medications, health care, and other variety of products. All these products are to be sold before their expiration date so that they can be used not causing any loss to the company. If the products are not sold the inventory wastage cost is factored into the shrinkage rate.

There are other factors which are also responsible for the inventory shrinkage as this is an unavoidable situation. But if proper measures and less carelessness is taken into consideration the inventory loss can be reduced and put them into practice.

Reduce Inventory Shrinkage

To overcome the above causes of inventory shrinkage some correct measures need to be taken in the company. As some business are unaware about the extra loss they are suffering because of not managing this loss. Therefore it is important to take some options into consideration for reducing the inventory shrinkage. 

Below are mentioned some of the effective strategies to change the procedures to ensure safety on the grounds of inventory management. 

1.    Responsible Staffing

The staff members hired are responsible for the inventory management. Therefore while hiring the employees should be evaluated on both technical and ethical grounds. According to stats 42% of the inventory shrinkage happens because of staff thefts. And this theft can be easily recorded. If the large companies hold one person responsible for the shrinkage and correct that action in the long run when the staff is extensively trained.

2.    Implementation of SKUs and Barcodes

To maintain the tracking of the items liquid transfer it becomes easy with SKUs and barcodes. As the SKUs and barcodes offer distinction for each product becomes helpful in identification. It also aids to determin which product is in higher demand than others and can be easily segregated .

3.    Check for Security

To track the products CCTV cameras should be installed in the warehouses for security checks. If the products are limited in quantity they can be tracked via tracking devices. When the security checks are made they should be non-negotiable as it is a theft. The cupboards and small packages should be locked. A manual screening process can also be done with anti-theft alarms to prevent the company from these thefts.

4.    Check your responsibilities

Another technique to ensure the inventory is safe can be done through cross-checking. Assigning two distinct staff to keep track of the inventory, compiling the reports, analysing them, and then comparing them on a regular basis is a tedious task but is worth to track the losses.

5.    Regular Inventory Audits

A supervisor should do regular basis checks of the inventory audits. This will make the employees and staff aware before anyone think of committing any fraud or mistake. As the employees have direct access to the inventory doing frauds becomes easy from there end. The regular checks will ensure tight security thorough inventory bookkeeping and minimization in the staff theft.

6.    Inventory Control Software

Instead of doing human labour a computerised inventory system helps in very less errors as the human error will be minimised. The calculation error like cash management and other visible holdings will increase in the inventory counts reducing the human error. All this will eventually lead to more transparent system.

7.    Inventory Checks on a Regular Basis

The inventory checks on regular basis help in estimating inventory-related losses and expenses.

The difference between the losses occurred over time in comparison to after the checks by keeping records in the long-run will aid in reduction of inventory shrinkage.

Conclusion

This issue should be the top priority of the company. The shrinkage can be accounted and prevented for good inventory control and management, despite how big or small is the business. 

A professional ecommerce company should be assisted for the business growth otherwise it becomes difficult to maintain the accountings. Assisting in managing the inventory turnover rate and lowering the inventory carrying expenses in order to save money for the company is important for the  growth.

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Scope of Logistics and Shipping Services In Future India

During this COVID-19 pandemic there had been a great impact on global economies and enterprises, and the supply chain and logistics industry faced a long-term challenge. All these posed a future threat to the operations and delivery company continuity. During this pandemic the way manufacturers/logistic sector had assessed their parcel management and identified supply chain vulnerabilities has changed. The crisis has proved that relying on two geographic areas for sourcing might be problematic.

As a result of the epidemic, brands and businesses have become aware of changes in consumer behaviour. Businesses will emerge from delivery companies that are adaptable and innovative. Why? Because they have become fast to test, analyse, implement, monitor, and optimise processes and resources, as well as leverage new technology to minimise and respond to changing market conditions.

Impact on the Logistics Industry and Shipping Services

As the lockdowns were established the outbreak halted the transit of products, interrupting supply networks and moving of transport from one place to another. Even when the lockdowns were relaxed most of the supply chain remained affected. Those firms and supply chains who survived were due to the technologically driven systems which had played a crucial role.

Logistics Industry's Future Prospects

The logistics and transportation service industry had been protecting their personnel and customers while the market demand fluctuated. As some companies aim to diversify their supply networks meanwhile, as people under siege have resorted to the internet to make purchases, the business-to-consumer (B2C) sector has boomed. Not only did the volume of packages to be transported increased, but so did the profile of those things, with more people ordering even major purchases online.

The future scope of the logistics and cargo management sector with shipping delivery services seems promising with this shift in situation and organisations pursuing new ways to ensure the industry takes it up a notch.

1.    Advancement

Because of the epidemic, the marketing channel has been fluctuating continuously due to changes in the demand from the customer. India's online delivery of packages is expanding in terms of penetration. However, in the Covid-induced lockdown period, online business has reached new heights. And it's now unstoppable. In the days and months ahead of us, it will be relentless.

2.    Distribution

With the following implementation of flexible working hours and a growth in online shopping, the logistics and warehousing sector is driving demand to increase. Warehouses, distribution centres, and general industrial companies have become higher in demand.

3.    Automation, Data Science, Analytics, and Technology

With the use of technology, data sciences, analytics, and automation helps in understanding the increase or decrease in the supply chain which emphasises on the predictability of the delivery time. Customers are becoming more aware about the supply chains used for delivery services. 

4.    Multi-Platform Network

Nowadays big or small companies are seeking to figure out how to run inventories in the field much more efficiently and optimise through Omni-channel distribution methods. These companies use the same record to handle both online and offline deliveries. The risk and demand are unpredictable with the customers also get stressed about about it 

5.    Prioritise Multimodal Logistics

The utilising of air, sea, and air after the pandemic for delivery service has become more effective. The support team for any mode of transportation delivery service the market gets improved. As a result, India's multimodal transportation is becoming increasingly important. In order to lower logistics and shipping expenses, we must become more sub in the long run. Using the cost-effective transportation service models to use waters, rail, roads or any other mode of transport.

6.    Industry consolidation and higher inventory levels

The business with distribution networks and low inventory levels had suffered a lot being it big or small . Many companies also decided to keep higher inventory levels as safety nets, especially for important commodities. The businesses being big or small get checked for their sustainability and durability. The analysts help to choose a business which has less stress on operations and stronger liquidity ratios, taking into account the profit margins.

7.    Arriving to the final stretch

To quantify the risks depending on geography, retailers should look at the location of distribution centres. Evaluation of the exporting plan by location and the risks involved with each destination is crucial for those engaged in exporting and worldwide operations to ensure ideal flow management with limited resources. 

Summary

For both global and local supply networks must be redesigned in the post-Covid environment. The demand for supply can be increased across the supply chain for delivery services can be tracked. Automatic monitoring and notifications, enhanced navigational skills, real-time live tracking, and route optimization help in the delivery service process. The logistics business will need to expand in the near to medium term to support global vaccination initiatives. Ahead, the logistics sector must enhance productivity which would help in becoming more economically stable for the customers.

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Important Information About Shipping Oversized Loads

Every type of freight has its own set of challenges, but gigantic loads are by far the most difficult. Any freight that cannot be dismantled is properly stored, and thus takes up a lot more room than a standard load, which is referred to as an enormous load. In practise, any load that exceeds per-axel limitations or is wider than 8 and a half feet is considered an excessive load, with its own set of problems to handle. But why is it so difficult to transfer large things from one location to another?

Big haul and oversize load transportation is one of the most demanding and difficult areas of freight shipping, with several complexity that cause delivery issues.

As a result, it is necessary to be well-informed and prepared for the delivery load to be conveyed. This blog will teach you how to make shipping large loads simpler and less stressful. Continue to read! 

Shipping Oversize Loads

Oversize freight is not the same for less-than-truckload (LTL) or full truckload (FTL) freight. The entire procedure can be challenging to manage. Because heavy equipment is costly and can be dangerous if not handled properly during delivery, it is vital to educate yourself on the subject before transporting any oversize freight. PLS has certain critical information underlined that should be remembered while the package is being delivered before placing an order for a large cargo.

Heavy Haul Transportation 

1.    Specifications

The weight, size, and dimensions of the consignment should not exceed the permitted limits. A hefty haul, enormous load, or wide load necessitates specialised equipment to handle the weight. Heavy hauls are made up of industrial commodities such as steel and mining products, as well as massive machinery, aircraft parts, and a variety of smaller steel equipment. As a result, it is critical for clients to grasp all criteria before moving heavy freight to ensure package safety.

2.    Legal Requirements

Oversize shipping can be challenging due to regulatory limits in each state, municipality, or city, which may have their own set of rules and approvals. Apart from the package size requirements, there are certain extra considerations when transporting big packages. For example, in many cities, heavy carrying is only permitted during daylight hours due to safety concerns, yet in others, it is permitted at night to maintain traffic and safety issues for tiny vehicles or other road mishaps. There should be a valid permission for carrying heavy loads to save time and money, as the client is also under pressure to produce on time and avoid excessive fines.

Permits are issued correspondingly for frequent shipping or one-time movements. Traveling with big loads requires a permission three times.

1.    One-time hauls are allowed.
2.    Several similar hauls are permitted
3.    Annual licences

A basic load permit costs differ from state to state. As a result, before asking for any of the three permissions, the details of the load to be moved should be thoroughly understood.

Important Considerations for Transporting Large Haul/Oversize Loads

1.    Heavy covered trucks with the ability to handle overhead cables will be employed for support.
2.    Considering whether the road is under construction.
3.    Any railroad lines or bridges are being built.
4.    Weather forecasting during the shipping period
5.    Calculating how long it will take the driver to deliver the order

How to Ship Oversized Items Freight

1.    Understand Your Shipment

Before shipping, gather the necessary information. Because licences and rules are based on freight measures, even little deviations might create delays in shipments, accurate measurements should be written down to the millimetre in front of the customer.

Before beginning the delivery, the transportation provider's cargo description should be established. It is vital to carefully note all of the equipment and tools that will be utilised to load, secure, and transfer the consignment.

2.    Transportation Management System

When the packages become large, the transportation management system becomes critical. When we have access to TMS, the planning and execution of product shipments is much more efficient. When the shipment is large, the load becomes more difficult to transport than regular FTL and LTL loads. Knowing the route is one of the most important aspects of the shipping.

3.    Plan Loading/Unloading of Orders

Before leaving the consignment on the road, the packages should be loaded into the trailer and thoroughly inspected. Depending on the weight of the load, a crane or a forklift is utilised.

Before it can hit the road, the shipment must be loaded safely onto the trailer. If the loading or unloading is delayed, there will be an additional charge.

4.    Confirm any Specific Shipping Needs

Depending on the size of the cargo, the transporting machinery and the transporting cars varies for each shipment and packaging.

Flags, bracing, tie-down points, and rotating lights are examples of transportation equipment that should be correctly mounted. Heavy loads are delicate, so the vehicles must be securely tarped to protect the packages.

5.    Prepare in Advance

It's a good idea to plan ahead of time and give the carrier plenty of notice because over-dimensional transportation sometimes demands specialised equipment and trucks that are in short supply. This could take weeks or months for more tough loads.

The sooner you start planning, the less likely you are to face last-minute modifications, delays, or route issues.

6.    Coordinate with Freight Receiver

To ensure on-time delivery, the delivery location should be confirmed. Poor communication between the shipper and the consignee can lead to severe issues during the shipping process.

7.    Package Insurance

Because dimensional loads can be costly, correct packaging should be ensured prior to placing the product into the trailer. For most carriers, in-house cargo insurance might be helpful.

8.    Handling the Shipping Permissions

The authority for correct handling, including the cost of shipment and the required permissions, should be present. The contract with the carrier is signed, the parcels are double-checked, and everything should be done to avoid any delays.

9.    Be ready for Anything

Load transportation is required because unforeseen impediments can emerge, especially when transporting heavy loads. Because of these unforeseen challenges, planning and scheduling might become complicated. As a result, these situations should be addressed and resolved with extreme caution.

Last thoughts

Nobody can disagree that haul shipping for huge items is simple. There are numerous hurdles and barriers along the route. And the simplest method to deal with these is to make a list of potential mistakes so that shipments aren't delayed for reasons that can be avoided in advance.

Because each enormous shipment contains unique contents, the solutions can be tailored to the needs of the consumers. The logistics business has numerous challenges during delivery, and thorough assessment aids in the tracking of oversize load transportation.

 


 

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Modern Technology Reshaped the Logistics Business

Since the pandemic, the supply chain and logistics business has evolved dramatically. New technologies are emerging in this fast-paced industry, assisting in the sector's expansion. The logistics industry has always been a critical area, but it has been marginalised as a result. As a result, many developments have been achieved in this sector, making it more powerful and assuring with several supply chain and logistics adjustments. Due to important developments in this pandemic, the overall growth of this business has increased. Logistics can become a highly vital sector of our country if it is given more scope, innovations, and specialisation.

Pandemic Accomplished

During the covid, the logistics industry was severely hit. As a result, there has been a significant influence on the logistics industry. Because of the epidemic, transportation services have been severely damaged, with an emphasis on reducing human interaction. All of this caused commodity prices to fall, putting a strain on the supply chain and logistics industry.

Workers in warehouses who were doing their duties were also affected by the pandemic, as the government halted all transportation, logistics, and warehousing services.

Innovation Is Required

In today's environment, a dependable, fault-tolerant, and efficient supply chain is necessary. The country was returning to its new normal as individuals began to be vaccinated. Because the delivery of commodities from one location to another was halted, the logistics sector was the first to be considered. Many workers in the supply chain industries needed vaccinations right away.

This scenario helped individuals grasp the need for innovation in the logistics business, resulting in increased investments in data technologies and fleet tracking, as well as management software to improve warehouse stock management and fleet operating flow.

Many businesses are tied to the logistics company, including retail, auto parts, and manufacturing. Adopting new current technologies such as Artificial Intelligence, Machine Learning, Internet of Things, Data Analytics, and others are new advancements that assist in meeting the new challenges of the logistics industry while also keeping up with the faster speed of business in machine learning. Natural calamities, pandemics, political situations, and other unpredictable events had crippled even the best-laid supply chain management systems, and the need for the most effective supply chain management became paramount.
 

The following can be done to improve efficiency on both fronts:

1.    Technology aids in better visibility of procurement and manufacturing processes, resulting in increased operational efficiencies and less downtime.
2.    Technology aids in the consumer's assessment of customer concerns and delivery timetables. From a market perspective, new technologies pervade the entire logistics and supply chain, which has an impact on demand for generation and consumption habits.

Omni-channel 

The company should focus on growing the supply chain in order to meet the distinction for customers who can visit offline stores to get a good feel for the products through the sense of ‘touch’ which is compelling for the customers' desire, and they are also free to purchase online.

For offline commodities, fully equipped physical facilities with all resources should be available to customers. The managers are given real-time information on all of the products that have been collected in the warehouses, as well as how much of each item is to be transported to various stores across all pin codes. Managers will have complete control over stock allocation and distribution channels with effective channelling.

The latest technological developments aid in supply restocking, and the live tracking system improves the company's operational efficiency. The link established between online and offline businesses through the use of modern technology breakthroughs to create an omnichannel presence.

Giving Logistics a New Chance

The main Internet of Things, Big Data, and Analytics Technology  help in accurate tracking The main Internet of Things, Big Data, and Analytics Technology aid in accurate tracking of product movement from one place to another in terms of in and out of the company and distribution, allowing for an auto-replenishment system that ensures proper inventory in the warehouses for proper availability at all times.

The Internet of Things (IoT) allows devices connected to warehouses to track goods movements via internet tracking. When Big Data and Analytics are combined, it produces a solid distribution system that tracks all commodity movement from one location to another. The right distribution route aids in delivering the package on schedule from all parts of the supply chain for production, packing, warehousing, or any last-minute delivery.

Managers are guaranteed to have access to dashboards in order to stay informed about the company's internal activities. The data aids in the development of new improvements for better supply chain management and warehousing for huge businesses. Modern technology is about having a solid supply chain and logistical flow in this industry for a new scope in this sector, not only about being efficient in functioning.

Final Thought

Many new improvements in logistics and transportation services have been made possible through innovation, and this sector is slowly increasing. From warehouses to shops, technology has helped a lot with its innovation and developments to motivate businesses to thrive and get a competitive advantage over their competitors. With time and technological advancements, the supply chain and logistics business will take on a new look and new views.
 

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Generate B2B Leads in an Effective Way

One of the most essential philosophies for increasing a company's leads is B2B business. If a good strategy is devised, it can aid in increasing the company's success. The greater the quantity of leads created, the more advantageous it will be for the company's growth and expansion. Generating B2B leads in the logistics eCommerce sector necessitates tactics that will assist in determining how to make the organisation profitable.

The conversion of B2B business leads differs from the conversion of B2C business leads. B2B necessitates gathering more information about the industry we intend to target. In order to convert the whole lead, the client requirements should be clear in what the company offers and what the customer requires to be met.

In this blog, you will learn about the suggestions that will assist you in creating company leads.

Increase Your Company Lead Generation 

1.    Well formulated Content

It should be mentioned that the information is correctly ordered in order to have a powerful influence on the client regarding the services we provide. By extracting significant points that clients demand from all available data in the form of graphs, pictorial designs, bars, and histograms, the scope of the organisation can be appropriately visualised by the client. Figures that are well-designed aid in information transfer.

The standards should be met on the website, with suitable labelling and descriptions, so that clients who visit the site understand what we offer for them and what they require. This will also encourage frequent visits to the website, which will assist generate leads.

2.    Online / Offline Webinars

In B2B business, taking into account your target audience and then making them understand your organisation and what it does helps to increase lead generation. Webinars are one of the simplest and most effective ways to gather hundreds of people together to explain what the company does and why they should be a part of it.

The speakers share their personal experiences, which helps customers believe in the company. A few examples of clients and their requirements might be used to demonstrate how all of their doubts and worries were addressed and handled, resulting in a satisfied client.

The B2B business demands you to target your loyal clients and make them feel special. All of this may be discussed in online and offline webinars, which can lead to large collaborations with other large organisations.

3.    Social Media Influence 

In today's world, the easiest approach to capture an audience is through social media platforms. Connecting any business online makes it easier to engage with customers and better understand their needs. Following the epidemic, the media became a very strong instrument for connecting small and large businesses.

Creating unique groups for each client's needs and making it easier for different departments to engage on a professional level on social media sites such as WhatsApp, Facebook, LinkedIn, Twitter, and YouTube. On a more intimate level, groups can be developed to give the client a more exclusive feel about the organisation. And informing them of what we have to offer.

4.    Chatbots

Customers nowadays expect an immediate solution to their problems, or at the very least a temporary fix. On the website, AI-enabled chatbots assist in providing a quick solution to the client's problem, as well as providing an appropriate solution or directing the client to the customer care team to handle their issue. B2B businesses face the challenge of maintaining customers to their satisfaction. They can switch to another company if they don't find an immediate solution. Chatbots are therefore highly useful in providing an immediate solution.

Chatbots in real time assist in connecting with customers quickly by gathering vital information that allows the chatbot to respond effectively to the enquiry.

5.    Inside Sales Techniques

There are numerous strategies and techniques that can be used to increase B2B sales more effectively. One of them is a way in which, instead of physically meeting with the client, we can have them on Zoom, Google Meet, or Webex, and explain the services the firm will provide them.

In order to convert the lead via virtual meeting, the person should be technically sound and have good communication skills. This technique is known as virtual selling.

Inside sales, often known as remote or virtual sales, is an effective method for generating B2B leads. It involves communicating with clients over the internet rather than meeting them face to face.

Strategies for B2B Lead Generation 

The lead generating process has a number of problems, some of which including are,

1.    Sales opportunity stalled in the pipeline because of personalization
2.    Delivering quality leads 

Below is the list of strategies which would be helpful in tackling the aforementioned difficulties while generation of B2B lead.

1.    Need of the clients

For a business, the customer is everything. They are the driving force behind the company's expansion and success. In B2B business, the company's first priority is to meet the needs of the customer.

There are numerous efficient methods for determining a customer's needs that will aid in the generation of a lead for the organisation. Understanding the customer's wants and then the need is what will benefit the organisation in the long term. Sales can be managed according to the needs of the customer.

The first impression a customer has of a firm is based on the services they receive, and there are several ways to obtain that information.

2.    Having The Best Team

The importance of teamwork in the company's success cannot be overstated. The firm's goal should be to bring together the greatest minds from all areas to meet the needs. The result of operations, marketing, and sales teams sitting down to figure out what the client wants and then moving forward accordingly.

Because they have various options if their requirements are not met on time, clients have grown highly fussy about what they require. They require a cost-effective and efficient solution to their situation. And having the best personnel in one place to solve the problem is the company's most potent instrument.

3.    Content is important

Content production is critical in B2B businesses so that clients receive consistent information across all platforms. The information that comes from social media platforms affects the company's visibility to clients.

The B2B industry is widespread, attracting a big number of people, and prominent content will be the one that persuades clients to invest in the company's growth.

Customers should be informed about the product offering through all channels, both offline and online. The information should be organised and structured to reflect how the company appears.

4.    Reach out to people 

The audience can be targeted through a variety of communication channels.

1. Text message and email marketing
2. Social Media Marketing Ad Campaigns
3. SEO and PPC optimised landing pages

Any of the following avenues for connecting with clients might help them have a better understanding of the company. The tone, audience, and specifications should all be considered while creating material for these platforms.

Though it has its drawbacks, it is the simplest way to communicate with clients by immediately communicating information to them.

5.    Measure Results 

Because there are so many marketing channels connected to customers, it can be tough to keep track of their progress across all of them. This progression includes views, clicks, sales, and conversions.

It's critical to visualise the data being collected in order to track the company's growth with each client and the resources it employs. The data infographics also assist the team in better understanding their consumers and their needs.

Suggestions

B2B business is an important way to generate leads that will aid in the company's growth. There are numerous more strategies and techniques that can be used to better understand the customer. Understanding the target market and how they interact with the company is critical so that appropriate approaches may be used.

 

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B2B Model VS B2C Model

If you're filling orders for a single end client or a retail business, the B2B and B2C concepts will look very similar to you. There may not appear to be much of a distinction between the two notions. Many significant distinctions, however, do not appear to be visible on the surface. Business to business order fulfilment is referred to as B2B, whereas business to consumer order fulfilment is referred to as B2C. Both categories of order deliveries are highly distinct and necessitate various operations and methods. Every delivery made by your company, whether to a single consumer or an entire company, must reflect your brand identity; otherwise, you risk losing potential customers.

You might be able to navigate the key differences between supply chain logistic, fulfilment services, inventory management, and warehouse management for B2B and B2C orders and their respective complexities if you work with a suitable third-party logistics provider that perfectly aligns with your business ventures.

Business-to-Business Fulfilment

B2R is another name for B2B. The products are delivered straight to a business or a retail store in this case. The typical order volume is substantially higher than in B2C, ensuring that the business receiving the orders has adequate inventory to sell. Businesses arrange orders in advance and in quantity so that they don't have to deal with them on a regular basis.

One of the most important aspects of B2B order fulfilment is accuracy. Businesses will require SKU codes, product limits, tax rules, parcel labels, certain invoicing systems, and barcodes, among other things. Because the order volume is significantly higher than B2C, delivery takes a lot longer and costs a lot more money. Because you will need to transport the orders all over the world, you will need to become more familiar with carrier information such as air freight and sea freight, as well as various international trade barriers such as tariffs, taxes, and subsidies.

If you're going to use a third-party logistics provider for your B2B order fulfilment, make sure that the third-party logistics company you choose can deliver consistently and quickly. Because the firms engage with so many other businesses, they expect these order fulfillments to be done with the utmost accuracy, efficiency, and cost-effectiveness. Third-party logistics is also important for meeting orders on time. Mismanagement and delays by third-party logistics suppliers can damage an organization's reputation, resulting in penalties and costs that they must cover.

Business-to-Consumer Fulfilment


B2C orders are delivered directly to the end customers, as the name implies. Because each order is placed by a single consumer, the average order value of B2c orders is substantially lower than that of B2Borders. B2C order fulfilment is also more easier than B2B because there are less standards and requirements to follow when fulfilling a single order. These orders always have a pre-determined price that appears and displays the same for each consumer. Due to changes in demand or pricing, the only exception is specific promotional or seasonal events. Because internet transactions are so modern and accessible these days, the payment process for B2C orders is likewise quite efficient.


With B2C order fulfilment, you typically fulfil a single purchase from a single user. Because the buyers are purchasing straight from your website, there isn't much of a barrier to entry for this type of order. Furthermore, in this day and age, everyone appears to be extremely comfortable with online purchasing, and many customers prefer it to shopping in stores.


If you choose a third-party logistics provider to fulfil your B2C orders, they will ensure that your orders are delivered in good condition to the appropriate customer at the appropriate location. Some third-party logistics companies also manage product refunds and returns.

B2B Vs B2C


Every order fulfilment process is divided into three stages:
1.    Pre-purchase
2.    Purchase
3.    Post-purchase
There are significant differences between B2B and B2C order fulfilment at each of these stages. Let's have a look at it in a nutshell:


1.    PRE-PURCHASE

i.    The cost of the product

The pricing for B2B orders is determined by the end-requirements user's and demands. However, cost varies depending on the number of recurrent orders, order amount, contract length, and payment terms. A B2C order, on the other hand, is much simpler and does not include as much intricacy as B2B orders. The corporation sets the rate for these orders in advance, and there is rarely any change.

ii.    Every customer generates revenue


B2B orders often comprise a huge volume of orders and a significant volume of raw materials, whereas B2C order fulfilments typically involve a smaller volume of goods such as electronic items or personal appliances. As a result, 
B2B transactions can be as large as a million dollars and still be recurring, but B2C buys are often in the hundreds of dollars and are one-time purchases.


iii.    Assistance with sales


A sales coordinator or account manager is frequently present to assist in the exchange of goods for B2B order fulfilment. This provides a great deal of assistance and support in the B2B order fulfilment process, and more people are taking part in it. In B2C order fulfilment, on the other hand, there is no need for additional sales help because the orders are placed directly by the end customers through an e-commerce business site.

2.    PURCHASE

i.    The process of selling/buying

B2B order fulfilments take longer than B2C order fulfilments since they must go through department approval, request for quotations, negotiation, and other steps. Customers in B2C orders, on the other hand, can shop around other websites or place an order right away. This takes a lot less time than fulfilling B2B orders.

ii.    The size of the order

B2B shipments are typically comprised of big quantities of products acquired in fewer orders. The retailer will sell these items directly through their physical or online store. As a result, the merchant will only place an order if he needs to resupply his fulfilment inventory centre. B2C purchases, on the other hand, are made by one person and are typically made in smaller quantities. All of these purchases are made in one transaction.

iii.    Reimbursements

B2B payments are typically made through traditional means such as cash on delivery, credit, or purchase order within the agreed-upon time frame. Payment is performed promptly via debit card, credit card, cash, or check in B2C orders.

3.    POST PURCHASE

i.    Order fulfilment and shipping


Because B2B purchases are higher in number, shipping them takes longer, necessitates more sophisticated equipment handling, costs more money, and requires skilled unloading and loading of product pallets. B2C orders, on the other hand, are inexpensive because the goods are little and often come with free shipping. As a result, a single order can be dispatched in a matter of days.


ii.    Customer service


It is critical that you establish proper personal ties with shops who are interested in selling your product. B2B contracts are frequently associated with big volumes, periodic shipments, and personal relationships. This contract is primarily a long-term negotiation that necessitates ongoing monitoring and follow-up. These connections should not be confused with the customer satisfaction needed to fulfil B2C orders. Customer happiness encompasses customer service, marketing, accurate product display, on-time delivery, and proper order fulfilment, all of which contribute to the ultimate customer experience.


iii.    Returning


Whether dealing with B2B or B2C order fulfilment, every company should have a system in place to manage returns. The B2C return process is easy and uncomplicated. If customers are dissatisfied with the goods and return it, B2C orders have direct return procedures that include a full refund. If the returned item is in good condition and includes all of its tags, the purchaser will receive a prompt refund within a few days of returning it. B2B refunds and returns, on the other hand, are quite complicated.
Because they contain a significant number of items and order size, the contract to which they are bonded, and specific obligations that must be discussed, the reverse logistic process becomes far too complicated. All of these factors must be addressed before a return process in B2B order fulfilment can be completed.

Conclusion


You may choose B2B order fulfilment or B2C order fulfilment, or perhaps both, depending on the type of business you run. Identifying the differences between them can be tough and time-consuming, but now that we've gone through each of their differentiators, you'll be better prepared to deal with them and make the best decision for your company.

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How Does Truxcargo work?

When you need to transfer documents or things to a remote location in India over 24500+ pin codes using a courier pick-up service, also known as a logistics company, is a viable alternative. Sending products using a courier service is much less expensive and, in many situations, faster than using the standard mail service.

Logistics companies, or courier services, as they are usually known, play an important part in the economy. They are the foundation of logistics and supply chain management, without which an e-commerce business would struggle to thrive.

Truxcargo, a firm founded in 2018, is one of these firms that provides the best courier services in a timely and cost-effective manner. This article discusses Truxcargo and its various characteristics, as well as why it should be India's preferred logistics service provider. So, let's get started!

Truxcargo for COD orders 

Orders based on location

When a consumer places a COD order and enters her delivery pin code, Truxcargo checks its list of serviceable pin codes to see if the same is available through any courier firm. As a result, the COD as a payment option is either hidden or revealed. Only pre-paid payment options are available to the client if the selected pin code is not functional for COD orders by any of the impanelled courier firms.

Authentication of a COD order

When a consumer puts a COD order, a verification code is created and sent as an SMS to the customer's given mobile phone. This feature aids in the separation of undesired or fraudulent COD orders received by the store. Don't worry, if the COD verification fails for any reason, the order will not be cancelled instead, it will appear in your order panel as pending verification.

Truxcargo for COD/Prepaid Order Processing

How to Select a Shipping Company

This is the point at which the actual magic begins. When the order arrives in your order panel, all you have to do is click on it and designate it as sent. The weight of the shipment is automatically calculated by the system. Provide the volumetric weight if appropriate, and Truxcargo will recommend the cheapest courier business offering COD or non-COD shipping services to that destination. If desired, one can manually overwrite in the Truxcargo system and select another courier firm, as well as manually enter the carrier's name and, if applicable, the Air Way Bill number.

AWB number generation

Truxcargo creates the AWB number and displays it on the screen after a courier firm is chosen. Simultaneously, the AWB number is assigned to the relevant order and appears as a barcode on the shipping label and invoice. The merchant can then print in bulk or one at a time, adhere the shipping label on the box, and place the invoice inside.

Obtaining a Shipping Manifest

The final and most crucial step in shipping your goods is to obtain a shipping manifest. When the courier company's pick-up representative arrives at your warehouse or office to pick up the order, you can print a copy of the shipping manifest, which includes information such as order numbers, AWB numbers, and product information. Following that, the executive must sign the manifest. This is the tangible proof of shipment that is given to the courier.

Status of the Order

After the order is handed over to the courier, the order status in your Truxcargo panel changes from "Ready to Ship" to "Shipped" to "Delivered." Every time a status update is made, a system-generated SMS and email is delivered to the customer, keeping the ordering experience WOW and providing the customer that professional feel. The order can be tracked real time to know where the package has been arrived.

Important Features of Truxcargo

1.    Start shipping the day you go live. 
2.    Invoice and shipping formats that meet the requirements of the courier business and government agencies
3.    Several local and ecommerce-specific logistics partners are shortly to be empanelled after being integrated with over 8 domestic courier businesses.
4.     Manage your eBay and Amazon orders as well.
5.     Amazon India provides certified logistics services.
6.     FedEx, Delhivery, and xpressbees are all integrated to assist your orders.
7.     The most extensive network, with over 24500+ pre-paid and COD pin codes.
8.     Ship your COD orders as well; we'll collect them and refund you. 
9.     Integration of transactional SMS and email.
10.   A single panel to examine all of the customer's order statuses.
11.   Exporting Bulk Orders
12.   Your panel saves all of your shipping history for future reference.

Why choose Truxcargo?

1.    Reliable Delivery

We try our hardest to provide the best delivery services possible so that the product can be delivered safely and on schedule.

2.    Mode of Payment

We provide our consumers with a variety of payment options, including Prepaid, COD, To Pay, and Franchise To Pay.

3.    Efficient Labelling

You may create professional-looking shipping labels for multiple shipments using your brand name.

4.    Accounts Payable

You may quickly examine each transaction's cost data at any moment to get an estimate of how much each shipment will cost.

5.    Remittance of COD funds as soon as possible

With Truxcargo, we send weekly COD remittance, which improves your company's cash flow.

6.    Insurance Coverage

 With Truxcargo, you can ship worry-free since we give maximum insurance coverage for lost and damaged cargo.

7.    Integration with APIs

We offer an API that allows you to process single or bulk shipments on a single platform and track them all.

8.    Excellent Support

We are dedicated to delivering excellent customer service for all shipping, technical, and other issues.

Conclusion

Truxcargo is a newcomer to the logistic services industry, having only been around for a little over Four years. However, during that time, the company's growth has been exponential.

Furthermore, the founders are well-versed in cutting-edge automation technologies, artificial intelligence, and machine learning. The organisation makes considerable use of these technologies to carry out the above-mentioned solid business strategy.

Truxcargo was founded to fill a gap in the market for technology-based logistics, which was woefully lacking among existing Indian enterprises at the time. In the realm of logistics services, it is growing and has a promising future. As a result, we may assume that this organisation will soon become India's best eCommerce delivery partner.

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E-Commerce Automation Business

All retail performs a variety of simple actions that might be automated and are a complete waste of time if completed manually. With more time on their hands, businesses can do a lot more with eCommerce automation. It frees up the teams you've invested in to focus on more important tasks.

Every venture capitalist should be aware of the distinction between busy and productive labour. The latter allows employees to concentrate on making money for the organisation and is also more fulfilling.

To be honest, most employees would prefer to conduct meaningful work over useless busywork. Business Process Automation (BPA) is the process through which firms delegate routine jobs to computers, allowing workers to focus on problem-solving and other critical duties.

BPA is a type of software that incorporates mechanical technologies like robotics. This might be a stand-alone software package or a feature that is integrated with other software. The goal is for the laborious and repetitive operations to be completed with little to no human interaction.

It's usually a subset of Business Process Management (BPM) suites, which are part of infrastructure management.

Why Should Business Processes Be Automated?

Every company wants to accomplish more with fewer employees. BPA allows individuals to do more and more work with fewer people, freeing up time for them to produce new goods, be more innovative, and make money.

BPA also saves money and time, reduces human errors, and maximises the company's resources and assets.

What Is eCommerce Automation and How Does It Work?

eCommerce automation software allows merchants and online sellers to convert jobs, processes, and campaigns within their businesses to acquire exactly what they require. It's a way for businesses to go beyond what they're already doing.

As a firm grows and becomes more complicated, it confronts challenges in scaling up. Systems that used to function well have gotten increasingly inefficient and have failed. As a result, businesses resort to time-consuming workarounds, sacrificing time that could be spent on more important tasks in favour of time spent on what's necessary, even if it's just clicking buttons.

Automated eCommerce examples

Host form identifying clients for segmentation and marketing, standardising visual merchandising, improving tracking and reporting, and preventing high-risk orders are all possible with eCommerce automation. The ultimate goal is to make jobs easier to do —

Here are some instances of chores that can be done with less manual labour:

1.    Satisfaction

Send an email or SMS to the customer when the product is ready at the warehouse.

2.    Levels of inventory

Unpublish out-of-stock products and notify your marketing team via Slack or email so they may cease advertising.

3.    Best-selling items

When out-of-stock items are restocked, re-add them to the online store.

4.    Customer loyalty

Use email addresses or tags like "Loyalty Member" to automatically tag high-value customers for segmentation and notify customer service to send a personalised thank you message or apply discounts or specialised shipping rules to customers with email addresses or tags like "Loyalty Member."

5.    High-risk orders

Identify and warn internal security teams about high-risk orders, such as when a bot buys out all of your shares in a matter of seconds.

6.    Keep track of donations

Using Slack and a spreadsheet, keep track of how much money has been donated.

7.    Order tagging

It entails identifying prohibited shipping zones and withholding payment from clients who try to ship to them. Staff should be alerted to offer customers shop credit or a refund in exchange for their next purchase.

8.    Customer choices

Show and hide payment choices based on order history, location, and device for each customer.

9.    Channel choices

Customers that buy from specific sales channels, such as Amazon, Facebook, Pinterest, and others, should be identified, tagged, and segmented.

10.    Scheduled Sales

Price increases and promotions for predetermined periods are referred to as scheduled sales.

11.    Discounts

Depending on product combinations, quantity, or customer location, adjust pricing at checkout.

12.    Product Releases on schedule

Preload new goods and publish them concurrently to your store, social media, apps, and sales channels with scheduled product releases. For seasonal promotions or product drops, roll out and roll back whole theme changes.

How Can Your eCommerce Operations Be Automated?

Truxcargo Engage is an eCommerce-focused automated WhatsApp communication platform. It's a post-purchase communication solution powered by artificial intelligence (AI) and WhatsApp automation. Your eCommerce business's RTO losses can be reduced, and profits can be increased.

Truxcargo can help you save up to 45 percent on RTO losses.

Take control of your orders with a comprehensive automation suite that may reduce RTO losses by up to 45 percent. To avoid non-delivery of orders, automate manual procedures such as order and address confirmation using WhatsApp.

1.    Order Confirmation via Computerized

Choose WhatsApp-driven buyer communication for a speedier and more smooth order confirmation. Prevent RTO losses by capturing order cancellations before they ship.

2.    Address Verification & Updating Automated

Uncover the potential of an AI-powered engine that sends your buyers an automated address verification and update message via WhatsApp.

3.    Conversion from COD to Prepaid with Ease 

Incentivize your buyers with personalised WhatsApp offers to convert cash on delivery orders to prepaid. Prepaid orders reduce the risk of non-delivery and RTO, boosting the cash flow of the company.

4.    Exceptional NDR Redress 

After each failed delivery attempt, capture the buyer's delivery time preferences on WhatsApp.

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Flexible Packaging and Rigid Packaging

There are numerous alternatives available when it comes to selecting the appropriate packaging for your items. With so many possibilities, it's easy to become overwhelmed when it comes to selecting the ideal packaging solution. However, there are two types of product packaging: flexible packaging and rigid packaging. And these broad categories encompass all sorts of packaging.

But, what's the difference between these two types of product packaging? There are some applications where flexible packaging is the best solution, and others where rigid packaging is the best choice. Knowing the difference can assist you in making an educated selection.

In this blog, we'll look at the differences between the different forms of packaging and which one is best for your purposes.

Flexible Packaging

Many large corporations are now choosing flexible packaging over rigid containers or packaging for their products. Squeeze pouches have replaced plastic or glass bottles or tubs for beauty treatments and ketchup. Jellies, honey, toothpaste, and a variety of other items are now available in flexible packaging.

The flexible packaging market has been expanding at a rapid pace recently. The primary reason for this is that the product packaging is their initial physical contact with the product. Consumers also expect the packaging to be convenient when they interact with the product through it. Furthermore, flexible packaging is cost-effective.

Flexible packaging is lightweight, which lowers the expenses of storing and shipping. It also improves packaging graphics printing, expands shelf space, and promotes sustainability.

Advantages

1.    Flexible packaging is environmentally friendly since it uses less energy to manufacture and is easy to transport.
2.    Flexible packaging is simple to use, and it also includes an easy-to-open feature. Some even include peel-and-seal treatments.
3.    It's less expensive than rigid packaging.
4.    Graphics and text may be readily printed on flexible packaging.
5.    Soft plastic is used to create flexible packaging.

Disadvantages

1.    Flexible packaging isn't recommended for food because it can alter the flavour.
2.    It has a low temperature resistance, especially at high temperatures.

Rigid Packaging

Notably, rigid packaging has a higher market share than flexible packaging. According to a PDA analysis, the rigid packaging industry will surpass $800 billion by 2024, while rigid packaging will reach $299 billion. Rigid packaging is critical in a variety of applications. Perfumes, spirits, and high-end beverages, as well as other health items, are likely to be packaged exclusively in hard packaging. These items require additional protection, which can only be provided by hard packing. However, rigid packaging is preferred by consumers for some products.

Rigid containers, such as aluminium cans and plastic and glass bottles, are used in the beverage sector.

Advantages

1.    Rigid packaging, which is comprised of hard plastic and other similar materials, provides higher strength.
2.    Some stiff packing also gives the feeling of luxury.
3.    It has no effect on the flavour of food because it is not made of soft plastic.
4.    It is built of materials that are easy to recycle, such as hard plastic and glass.

Disadvantages

1.    Rigid packaging is more expensive than flexible packaging. Furthermore, transporting hard packaging is an expensive endeavour.
2.    It has a more significant carbon footprint.

What's the difference between Flexible Packaging  and Rigid Packaging?

Rigid packaging is constructed of materials that cannot be bent or twisted into new shapes. It is not adaptable in any way. Rigid packaging gives the products rigidity and support. It also has a lot of strength. Paperboard or corrugated boxes, plastic bottles, glass jars and bottles, and aluminium cans are all possibilities. Glass bottles or aluminium cans of three soft drinks, soup cans, cereal boxes, or corrugated boxes for packing other things are all examples of stiff packaging.

Flexible packaging, on the other hand, is physically built of flexible material. It is easily bendable without breaking. As a result, you can reshape, fold, or even bend it. Courier bags, stretch film rolls, paper wrappers, and other types of flexible packaging are examples. Flexible packaging comes in a variety of sizes and can be used for a variety of applications.

Returning to the actual discussion, which packaging is best for you? Let's have a look at it. 

Durability & Strength

There are various advantages to both flexible and rigid packaging. It all depends on what kind of packaging you need. Rigid packaging, on the whole, provides better protection for the contents it transports. The containers are tough, and they protect the product from friction when it is transported from one location to another. They are more powerful and heavier. However, stiff packing, such as glass, has the disadvantage of being damaged or dented when dropped.

Flexible packaging is impervious to damage and can't be broken. However, because to their structure, they can be penetrated by a sharp item. Nonetheless, rigid packaging nowadays is puncture-proof and can protect products from spoilage, heat, air, and light.

Factors in the Environment

Flexible and rigid packaging are not the same in terms of environmental impact. Flexible packaging uses less energy to manufacture and transport, and it is also easier to move. When it comes to transportation, because they are relatively light in weight, they may be delivered more in each truckload, resulting in fewer runs using less energy and emitting less CO2. Furthermore, it results in fewer product waste.

Containers that are rigid can be recycled. Indeed, it is estimated that approximately 50% of flexible packaging material may be recycled. The remaining half can be recycled chemically. However, stiff materials might be easy to recycle or degrade in some instances. Many rigid containers may now be recycled, and customers are now familiar with the different sorts of recyclable containers.

Client Preferences

Many consumers prefer flexible packaging because it is both cost-effective and environmentally friendly. It's simple to open, utilise, and even serve flexible packaging. They're lightweight and simple to transport, handle, and store. Furthermore, most flexible packaging can be resealed and opened multiple times until the product is completely consumed. As a result, they are quite convenient for customers.

Pouches and courier bags are examples of flexible packaging that come in a variety of sizes and applications. Many industries, such as food and domestic, employ them extensively.

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