We have a great deal of respect for purchasing managers because they are involved in so many aspects of a company’s business. Great purchasing managers understand and take on many roles in order to meet the need of their consumers as well as predict future needs.

Marketing Involvement

The purchasing manager needs to have an understanding of the marketing strategies put in place by a company. If they are aware of which products the company is marketing more strongly, they will be able to foresee a rise in the demand for a certain product and not be caught off guard without enough of that product to distribute.

New Product Innovation

They also are responsible for recognizing the need for new product innovation and delivering ideas. This is because the purchasing managers are aware of which products are in higher demand, and they may have great insight into which direction to take new products depending on the market demand.

Manufacturing Involvement

It is crucial to keep a smooth production plan that enables you to keep a consistent stream of goods going to your customers. Purchasing managers should be aware of the costs involved in manufacturing as well as the time management aspects of manufacturing since these factors effect product price and distribution.

Profit Awareness

Purchasing managers are able to increase profits by timing purchases correctly. They are able to assess trends and purchase goods when they are at lower prices. It is also important for them to purchase optimal quantities at optimal times so that excess product is not taking up space in a warehouse.

Supply Chain Management Understanding

The purchasing managers also need to keep tabs on supply chain management. If they can get cheaper shipping, then they have more money to put towards the actual product. They also are responsible for the timely arrival of products so they should have an understanding of the supply chain process.

Motor carrier safety is a cause for concern for many shippers and reasonably so. The freight that you are shipping is the heart of your business, and you need to ensure its safe arrival. We understand this fully, and that is why we keep up to date records on all of the carriers that we use so that you can be assured that your freight is being moved by quality carriers.

MC (Motor Carrier) Number

We regularly check to make sure that MC numbers are still registered and valid. Freight is not moved without up to date paperwork and insurance certificates.

Safety Rating

The Federal Motor Carrier Safety Administration (FMCSA) evaluates interstate commercial vehicles and gives them a safety rating. This rating is based on drivers’ hours of service, inspection and maintenance schedules, driver qualifications, number of accidents, and other factors related to transportation safety. Then the carrier is determined to be satisfactory, conditional, or unsatisfactory. We only use carriers that have a satisfactory rating.

Insurance Coverage

It is necessary that the carriers that we work with have sufficient and up to date insurance coverage. We always verify that their COI (certificate of insurance) is current.

Types of Freight

We have an understanding of your particular product, and we are knowledgeable  each carriers’ specialties that way we can choose carriers that are familiar with your type of freight and have a good track record in delivering that type of freight safely and efficiently.

Verify their Authority

The motor carrier authority states what types of freight that carrier is authorized to handle, and it may also restrict ability to travel interstate. Therefore, it is important to make sure that the carrier we are choosing can meet the needs of your freight.

The Association of American Railroads (AAR) is reporting gains in 2011 compared to the year before. This is great news considering that rail traffic is usually a good indicator of the state of the economy. Here are some numbers reported by the AAR that show improvement.

• U.S. railroads originating 2.2% more carloads than 2010 and 9.7% more carloads than 2009.
• U.S. rail intermodal volume increased 5.4% from 2010 and 20.4% from 2009
• AAR tracks 20 carload commodity categories – 14 of these saw increases from 2010. Greatest increased categories: metallic ores up 20.5%, primary metal products up 12%, petroleum products up 11.1%
• December 2011 had 7.3% more rail traffic than December 2010
• December 2011 had 873,390 containers and trailers for U.S. rail intermodal originations, which is the second-highest monthly intermodal average for December in history
• Rail traffic for week of December 31, 2011 saw 10 of 20 carload commodity groups increase compared with same week in 2010. Largest increases: crushed stone, sand, and gravel up 35.2%, waste and nonferrous scrap up 23.8%, metals and products up 15.7%
• In 2011, U.S. railroads reported a total volume of 15,155,992 carloads – up 2.2%
• In 2011, U.S. railroads reported a total volume of 11,892,431 trailer and containers – up 5.4%

President Obama has recently declared that he is proposing a budget of $26 million for a trade enforcement unit, which includes increased power of the Customs and Border Protection and the Food and Drug Administration and the new Interagency Trade Enforcement Center (ITEC). The White House is looking to battle trade practices that are unfair while also protecting against unsafe imports.

A boost to Customs and Border Protection funding will allow it to act on imports that have a high risk of carrying pirated, counterfeit, or generally unsafe products. They will be able to better determine high risk imports; therefore, catching those imports while reducing cost and delays in imports of lower risk.

The new Interagency Trade Enforcement Center (ITEC) will be made up of about 50 experts in the fields of trade research, analysis, litigation, and international trade policy. The ITEC will be the main entity to organize enforcement of the domestic and international trade rules, and they will be fairly aggressive in taking on unfair trade policy and practices. There are high hopes that the ITEC will create more jobs in the U.S. through increased American manufacturing by battling against trade policy that makes it difficult for the U.S. to compete.

China is a country with a rich culture, various markets, and steady economic growth. Many companies find success with working with a business in China and many companies are looking to expand their business in China. Either way, there are some things to keep in mind regarding the Chinese business markets.

Various Markets

1.3 billion people are not going to agree on everything. Due to China’s large population there are very diverse markets within the country. Whether you are handling Chinese logistics or looking to expand your business, you will have to be creative and flexible. There is not an easily analyzable target market, and you will just need to make the connections to be able to understand how to conduct business successfully.

Take the Time to Learn

We all know that things worth doing take time (and money). And this is especially true of business in China. There are rich traditions and specific etiquette that the Chinese abide by. You need to spend the time to understand these important cultural rules just as you would spend time getting to know any other potential customer or business partner. This may mean that you need to travel there for extended periods of time or set up a great local team in China.

Adapt and Innovate

You may need to alter your product or business plan in order to make it work in the Chinese markets. McDonalds and Starbucks have altered their menus to cater to business in China, and you may need to think of similar strategies.

Help with Chinese Logistics

PNG Worldwide has agents in China. These agents work for us, but know the ins and outs of the Chinese markets. They are living and working in China, which makes them extremely helpful and knowledgeable in the realm of Chinese logistics. You can contact us for more information regarding this.

As we have stated in previous posts, there are specific DOT regulations when it comes to hours of service for truck drivers. The DOT regulations are put in place for the safety of the truck drivers and those around them on the road. However, a trucking company has recently been charged for having their employees falsify their log book.

Current hours of service rules state that once a driver accumulates 10 hours of driving, they are required to have 8 hours off before resuming driving. The company is accused of blatantly ignoring these rules and keeping falsified log books separate from the actual log books. Log books stating the actual hours driven by the truck drivers were clearly marked “No DOT” or “Not 4 DOT”.

Employees were instructed to keep these two separate logs. And ensure that the logs shown to government inspectors met DOT regulations. Prosecutors also claim that dispatchers sent truck drivers on routes that they knew would break the rules set in place.

This alleged falsification had been occurring for almost three years before being uncovered. The owner of the trucking company and the trucking company itself is facing  one count of conspiracy and 10 counts of making false statements. This means that the company may receive a $5.5 million fine and receive 5 years probation. The owner could receive up to 5 years in jail and a $250,000 fine.

The bottom line is that this man and his company are potentially ruined because of what they had done. The hours of service (and other) rules are set in place to keep people safe and keep things running smoothly. This is a major offense, but even more minor offenses can be detrimental. Other major issues to keep in mind are maximum legal weights that trucks can carry and regulations for hazmat shipping.

If you have any questions, do not hesitate to contact us!

Marcello (Marc) Medini

Position: Sales Manager

Role at PNG Logistics

As sales manager, I am a point of contact for many new customers at PNG Logistics. I work closely with these customers to learn their specific needs, and then communicate this information to our operations department to keep things running smoothly. Through my seven years of sales experience, I have worked to build and maintain partnerships with our customers and train new staff to do the same.

My areas of expertise include managing freight shipments in the agricultural, textile, hydraulic pump, and automotive parts industries. I am also well-versed in the field of shipping technology, and enjoyed working with Software Advice and being a part of this article on the subject.

Best Part of Working at PNG Logistics

The best part of working at PNG Logistics is getting to provide a high level of service and care to our customer. I appreciate how closely the operations and sales departments work together, which makes the sales process more enjoyable (for myself and the customer). Not every company is client focused, and I am proud to be a part of a company that is.

Professional Affiliations

-       Lancaster Young Professionals

-       Lancaster Chamber of Commerce

Education

I graduated from Rutgers University with a double major in Political Science and Philosophy.

Hobbies/Interests

Playing with my son, fitness, wrestling, fishing, swimming, waterskiing

Interesting Fact

I’ve been to Fargo, North Dakota eight times (for wrestling tournaments).

We put the accent on you. How? We ask you questions that no one else thinks to ask. We check in with you even when things are running smoothly. We take the extra time to save you money through alternative logistics solutions when others would simply overlook it.

Customer Story

Recently, we had a situation with a customer where we were able to provide logistics solutions that saved them 29% on their shipment! If we were a logistics management company who relied solely on technology, we would not have been able to save this customer money. The difference is that our logistics professionals are knowledgeable in various industries and were able to cash in on a trend that a computer would not have recognized.

Slower Transit, More Savings

This particular customer is in the retail business. They sent in a request for a pickup for the following day that would ship from the east coast to the west coast. We handle these shipments for them on a regular basis and are aware that they are usually urgent and time sensitive orders. However, we are also aware that it is not peak retail season.

One of our logistics professionals contacted the customer to ask the simple question of urgency of the shipment. Did the shipment need to arrive in 4-5 days or could it arrive in 8-9 days? The customer said that this shipment was not urgent, and they would choose the alternative solution that we were suggesting. We ended up routing their shipment using a slower rail option that saved the customer 29%.

3PL Company that Works for You

Many organizations lose thousands of dollars because their logistics management companies do not know the industries they are working with well enough, or they simply do not take the time to ask the pertinent questions. It is the logistics professionals’ responsibility to bring helpful logistics solutions to the table, and we take pride in doing that. Find a 3PL company that works with you and for you to save your company energy and money.

Green building is becoming increasingly popular and important whether you are talking about residences or businesses. It is not surprising that companies such as Starbucks have taken great initiative by building an earth-friendly store out of shipping containers! Old shipping containers are difficult to dispose of, but they are easily repurposed. Creating a house from shipping containers does not seem like a far stretch, and neither does making apartment complexes!

You can see the great pictures of the Starbucks location here. Getting creative with shipping containers is good for publicity, and it is good for the environment. Wonder if other companies will follow their lead.

Even if a shipping container store front is not right for your business, would you consider making your house from shipping containers? These people look like they have a magic touch for turning the mundane and hardened look of a shipping container into a beautiful home!

Still not impressed? Check out this incredible housing complex built in Amsterdam. This is taking green building to a whole new level!

You don’t need to be building green to make a difference in the environment. We would love to hear what green initiatives your company is taking! And if you have questions about the normal use of shipping containers (you know… shipping freight…), please give us a call at (877) 764-9441.

The most common type of pallet used for material handling is definitely the wood pallet; however, there are situations where a plastic pallet would be a better choice. Below are some things to consider when evaluating whether a wood pallet or a plastic pallet would be better for your business.

Pros and Cons of Wood Pallets

One of the largest benefits of wood pallets is that they cost less than plastic pallets. Also, they can be repaired, hold more weight than plastic, and are recyclable. The downside is that they splinter, hold moisture, could contain bugs, and use fasteners that could damage your shipments.

Pros and Cons of Plastic Pallets

Even though they are three times more expensive than wood pallets, plastic pallets are clean, moisture resistant, will not harbor bugs, are durable, and do not use fasteners that could damage your shipments. However, in addition to the extra expense, they cannot be repaired very easily, cannot hold as much weight as wood, and have fire safety ratings. They also are more difficult to recycle and harder on the environment.

When does it make sense to use plastic pallets?

Given the above pros and cons, it is easy to see why most people go with the wood pallet for their material handling needs. Do plastic pallets ever make sense? The answer is “yes.”

-          If your shipments weigh 1,500 pounds or less, then plastic pallets are an option.

-          If your business is set up as a closed-loop warehouse, it may make sense to use plastic pallets. The reason is that your pallets will be returned to you, and they are a great way to maintain consistent costs since they are so durable.

-          If you are not having your pallets returned to you, but would like to use plastic pallets (and have them returned), you can consider outside pallet management.

-          If you are shipping fragile items, plastic pallets are safer because they do not have fasteners that could puncture or otherwise damage your items.

-          If you are using your pallets as a store display (as commonly done in the electronics industry), it may be better to use a plastic pallet that displays nicely and is then returned.

-          If you are shipping fragile products, consider the risk of using a wood pallet. Would the extra cost of a plastic pallet be offset by decreased risk of damages, delays, and unhappy customers?

In addition to everything else, it is important to mention that you should not use plastic pallets when shipping internationally. There are code regulations that require wooden pallets, and you would not be getting your pallets back so the cost would not make sense.

Have international shipments? We can help with those as well!

Head to PNG Worldwide for more information.