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Main Concepts of Supply Chain Management

The old view of the supply chain considers the individual companies and elements within a firm as separate units that represent “functional” entities. Now, the integrated supply chain concept is different from the previous ones. The new layout of relationship unlocked the full power of supply chain management and became a tool for creation of value in a company.

“A supply chain consist of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customer themselves” – from Chopra and Meindl.

Each supply chain has its own unique set of market demands and operating challenges and yet the issues remain essentially the same in every case. Therefore, companies must take decisions in regards to four areas:


What are you going to produce? When? How? Do you have the market for it? Production includes the creation of master production schedules that take into account plant capacities, productivity, efficency, workload balancing, quality control among other factors.


How much inventory should be held as raw material, semifinished or finished goods? Do you need safety inventory? Primary porpuse of inventory is to act as a buffer against the uncertainty in the supply chain. The company needs to know what the optimal inventory is and reorder points.

Warehousing Location

Which region are you looking to serve? Is the location you’ve chosen properly suited to handle your unique needs?

There are many factors to take into consideration when opening a new warehouse facility. From location and build to storage requirements and labor force availability, making the right choices in regards to both warehousing and distribution methods could make all the difference for your company.

Transportation Channel

This refers to the movement of everything from raw material to finished goods.

What are the best transportation channels for your type of product? The tradeoff between responsiveness and eficiency is evidenced in this choice.

For example, air transportation is much more faster but also more costly.

PGS 360 was featured in the Spring Edition of Supply Chain World magazine!

Supply Chain World is the authority on best practices in supply chain management, featuring interviews with experts who know the process first-hand and are finding ever-better ways to improve efficiencies. Supply Chain World is a convenient, authoritative benchmarking tool, helping forward-thinking supply chain leaders and their global teams to stay current through cutting-edge content on our website and in our quarterly magazine. Each issue highlights best-practice strategies and practices to help readers move products and information more efficiently and compete in the 21st century’s linked economy.

To check out the digital version, click the link below:


The PGS 360 Order Fulfillment Process

When considering PGS 360 as a fulfillment partner, ecommerce sellers often ask about the processes involved in our order fulfillment services.

Before the fulfillment process can begin, PGS 360 must integrate our client’s selling channels to our proprietary Warehouse Management System, Legend. PGS 360 has a team of IT Specialists that are able to easily integrate with a multitude of shopping carts via an application programming interface, or API.

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The Benefits of Hiring a 3PL for your Fulfillment Needs

 The world of logistics can be quite daunting, especially because it includes so many areas to consider. There are inventory levels to take care of, shipping and warehousing issues, as well as customer service.

When a business expands, many owners resort to outsourcing various areas of the supply chain to third-party logistics providers (3PL) Continue reading

The Internet of Things and Its Effects on Supply Chains and Logistics


When the term “The Internet of Things” (IoT) has been thrown around, it is often in terms of the technology that will be used in turning everyday objects into a network of connectivity, one that can both send and receive data. The IoT can help to create a highly personalized and “smart” life for the consumer. However, aside from just assisting the consumer, the IoT can also impact the way the supply chain works.

The IoT revolution will allow companies to enhance ERP and supply chain management (SCM) by intelligently connecting people, processes, data, and things via devices and sensors.

The Internet of Things will mostly impact in-transit visibility. In the supply chain, visibility throughout the process is always key. Products go through many hands as they travel from the warehouse to suppliers to distributors to the consumer. It is through this process that mistakes can be made, packages can be lost, etc.

Experts believe that the key to in-transit visibility are cloud-based GPS and Radio Frequency Identification (RFID) technologies, which provide identity, location, and other tracking information.

Through cloud-based GPS and Radio Frequency Identification technologies, manufacturers can have visibility over the supply chain like never before.

Through this data, there will be detailed visibility about the package through each stage of the supply chain.

First, a Radio Frequency Identification chip will be placed into a product. Meanwhile, a complementing integrated device will be put in the shipment vehicle. The data will then be transferred into the cloud where that information can be shared. Not only will there be detailed GPS coordinates for the package, but other information can be brought in such as traffic conditions, weather conditions, and even driver specific data such as their average speed or driving pattern.

Now, manufactures will have both real-time data as well as environmental data, which can help them to make more efficient decisions regarding overall productivity. This technology can also help in reducing asset loss by knowing where all products are at all times. This can also help manage the stock of warehouses by monitoring inventory so that there are no out-of-stock situations.

Productivity will increase because this new opportunities moves the supply chain process from reactive to proactive by offering information before any activity happens.

Third Party Logistics Provider
15801 E. Valley Blvd.
City of Industry, CA
Phone: 800-424-7746
Fax: 800-230-3724


Drones and Logistics


The latest technologies in logistics will often change the way a supply chain works. New equipment that can better track merchandise for example is important and is something that should be considered, as it will help the supply chain run more efficiently. However, recently there has been a move that will take logistic technologies to the next level – the use of drones for logistics. Currently, Amazon has been the major player in the potential use of unmanned drones to deliver packages to customers. Though Amazon is the forerunner in this area, many companies are seriously considering the use of drones, which will inevitably affect logistics.

According to the National Aeronautical Centre (NAC), due to rising fuel prices, more than a third of freight companies believed that they would start using unmanned aerial vehicles (UAVs) in the near future. In this way, the logistics system of a company can play a key role in its carbon footprint. Traditionally, packages have been shipped via car or truck and often over far distances. This is not the most efficient way of delivering cargo as fuel is burned even while sitting in traffic. Drones however, will use less fuel than cars and they have the added benefit of being able to travel in a straight line. This of course means that they will travel in the most efficient way possible.

While there are still concerns about the ability of unmanned drones to deliver cargo on a large scale, there is room for a drone’s ability to ship small packages, especially on the last leg of its journey. A representative from the startup Matternet, which is pushing for the use of drones for small shipments, shows that to move a 4.4-pound package through the last mile of its destination will only cost 24 cents when using a drone. In fact, energy costs only make up 4 cents of the 24. In this way, the use of drones may significantly lessen the costs of a supply chain.

Third Party Logistics Company
15801 E. Valley Blvd.
City of Industry, CA
Phone: 800-424-7746
Fax: 800-230-3724


Why a 3PL is good for Warehousing and Distribution


In the world of warehousing and distribution, there are many different functions that must be kept running smoothly in order to foster perfect order fulfillment. Part of supply chain management involves dealing with logistics, which means figuring out how to get the product in the warehouse to the customer in a timely fashion. Since this tends to be a complex system, more and more companies have begun to use 3PLs, or, 3rd Party Logistics service providers. 3PLs are important for any company as they support processes in warehousing and distribution. Here are just a few reasons to use a 3PL provider.

3PLs have a vast network of resources that can be advantageous when dealing with the supply chain. With more resources, they can efficiently carry out all of the steps in the supply chain in the most timely and cost effective manner. With a 3PL, you will be gaining benefits that would not be available to you in-house. Another way that a 3PL supports management is that they are extremely knowledgeable about the best practices in warehousing and distribution. Part of their function is to stay up to date with the latest technologies. This means that you will have access to advanced software that allows for better inventory management, reporting, and visibility over the entire supply chain. Having visibility over the supply chain allows for better overall management can lead to customer satisfaction and loyalty.

3PLs also can work around seasonal needs. If you have down seasons where you don’t need as much space in warehouses or labor needs for example, 3PLs can work around these flows in business. If you were working on your own, it would be difficult to switch back and forth to a larger or smaller space depending on the season. With a 3PL provider, they have the ability to access more resources or space when needed. These are just a few of the ways that 3PLs help support warehousing and distribution.

Third Party Logistics Company
15801 E. Valley Blvd.
City of Industry, CA
Phone: 800-424-7746
Fax: 800-230-3724

Why Reverse Logistics is Important



While many businesses are aware of the importance of logistics, they may not be as comfortable with reverse logistics. This may be due to the fact that, for many years, reverse logistics was not of major importance. This is no longer true with the changing world of the way we shop. With increased amounts of orders being made online, there are now more chances for consumers to return the products. This is where the importance of reverse logistics comes into play.

Reverse logistics is the process that occurs when a product is shipped back to the manufacturer from the consumer. It includes the entire return process that takes place, including the product being taken back to the warehouse, being restocked, restored, and making sure that it is once again ready to be purchased by another consumer. Reverse logistics can also consist of disposition options. These include upgrading the product, repairing it, remanufacturing, de-manufacturing (parts reclamation), or even recycling it. Having a good reverse logistics system is important because it plays a vital role in brand protection.

For the most part, businesses stress on having an efficient logistics system because getting the right product to the right customer at the right time results in customer satisfaction, which will often lead to customer loyalty. However, what some people do not realize is that reverse logistics plays a part in brand protection as well. If the returning process is difficult or confusing to the consumer, it will lead to a negative experience with the company and customer loyalty will not occur. In addition, a good reverse logistics system will take into account costs. It will consider the cost of the goods themselves, the cost of keeping them in warehouses, the cost of having it shipped back etc. Due to the complexity of reverse logistics, it is best to have a separate returns center rather than combining returns with the distribution center. Another option is to outsource to a 3rd party company that is experienced in reverse logistics. In actuality, reverse logistics is the most commonly outsourced function in the supply chain. Companies prefer to use 3PL’s because their main focus is logistical operations. Third-party logistics companies also offer more flexibility in creating a returns process and they provide liability protection.
The importance of reverse logistics will continue to grow in the coming years. Be sure that your business has an efficient strategy in place that is beneficial for both the company and the customer.

15801 E. Valley Blvd.
City of Industry, CA
Phone: 800-424-7746
Fax: 800-230-3724

Save Money and Cut Supply Chain Costs


Logistics is a key area in any business as it directly impacts the fulfillment process. Creating perfect fulfillment processes through all levels of the supply chain helps in creating customer satisfaction and loyalty. However, the supply chain is important in another way, as this is where major costs come into play. If you are looking to cut costs within the supply chain while still maintaining efficiency, there are a few steps that you should consider.

The first thing to consider is customer service; specifically, give the customers what they want and not what you think they want. Not all supply chains are the same and your supply chain has to be specifically engineered to the needs of your customers. Do not add costs in the logistics process where they are not needed. For example, if you decide to provide next-day delivery for all customers, even though not all customers want or need it, you will simply be wasting money on express shipping.

A second thing to look at is your overall supply chain. Be sure to have strategies in place to avoid bottlenecks including schedule planning, regulatory compliance for imports and exports, revamping network designs and ensuring proper documentation. When there is proper communication throughout all the areas of logistics, the problems that may be costly to fix may be avoided. One final thing to consider is outsourcing. More often than not, businesses outsource one part or another of their supply chain. Warehousing and transport tend to be the two most outsourced functions. Before outsourcing, be sure that it will actually save you money. For the most part, outsourcing to a third-party logistics company that is more skilled and/or efficient in performing the required task can also lead to saving on costs. These are just a few ways to cut costs in the supply chain.

15801 Valley Boulevard
City of Industry, CA
Phone: 800-424-7746
Fax: 800-230-3724

The Key to Perfecting Order Fulfillment for your Business


While many things factor into customer loyalty, one of the biggest factors is whether or not your can offer perfect order fulfillments. The amount of steps that are included in the supply chain may make the process seem daunting, for there are so many things to consider. However, the good news is that there is a way to make the process easier to grasp, which may lead to more perfect order fulfillments for your business. The key to mastering perfect order fulfillments is visibility within the supply chain.

What exactly goes into delivering the perfect order? Consumers have high expectations when ordering a product. They want to receive the right product, delivered to the right place, in a timely matter, and the product needs to be in good condition as well. If you stray from any of these factors by sending the wrong product or having the product not being delivered on time for example, will result in a less than perfect order. Many times, just one imperfect order will mean the loss of a customer. In order to combat this, visibility is key to understanding and perfecting order fulfillment.

Within your own supply chain, try for an extended amount of visibility. When this occurs, it allows for the measuring, monitoring, and maintenance of your supply chain, which will help in the creation of a perfect order. The first thing you need to do is measure the current performance across your supply chain. This allows you to locate where improvements need to be made. Are problems occurring within the warehousing department or is it a shipping problem that is your biggest concern? Having eyes throughout all the levels of the fulfillment process lets you know what areas should be worked on. Once you know your problem areas, it’s best to monitor your improvements. With an effective implementation plan, you will be able to track your performance and see if the problem is being fixed or not. This allows for adjustments to be made as needed. Finally, once your problem has been found and fixed, proper maintenance becomes the goal. Keeping visibility on your problem areas will help ensure that you are keeping things in order, which will significantly lower the probability of a future mishap occurring. These three things will get your business on the way to perfecting order fulfillments.

3rd Party Logistics Company
15801 E. Valley Blvd.
City of Industry, CA
Phone: 800-424-7746
Fax: 800-230-3724
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