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Posts Tagged ‘carbon footprint’

10 Actions to Take in a Recession

In these difficult economic times, it is more apparent than ever that money doesn’t grow on trees. At Ware-Pak, we are doing whatever we can to help our supply chain partners by saving money where we can. While this will not mean saving money at the expense of quality efficient service, there are things we can do to cut back on unnecessary costs within the supply chain. Below are “10 Smart Actions to Take in a Recession” that can be implemented to allow all parties in the supply chain to reap cost saving benefits.

  1. Take cost out of your supply chain – Even the best supply chains can look for ways to reduce non-value add costs and be improved.
  2. Stop analyzing “what was” and manage “what should be” – Focus resources on managing “what should be”. Know what costs should be before making a decision. Financial and physical limitations have changed and so should your strategy.
  3. Get visibility to your physical and financial supply chain – The ability to track your products in transit along the physical chain can help reduce lead-time and inventory on hand. Visibility to the financial supply chain exposes ways to take cost out of your supply chain.
  4. Replace inventory with visibility – Uncertainty in demand and other conditions can affect inventory on-hand, on-order and in transit. Seeing where your inventory is and where it will not be on time enables you to proactively manage risk.
  5. Leverage a virtual information supply chain – The best information supply chains keep the physical and financial chains in sync with visibility. Having solutions ready when needed reduce the time and resources necessary for implementation. It also means little dependency on legacy systems and scarce resources.
  6. Pay for Performance – Spend on solutions and services that don’t require upfront capital investment in extensive deployment time frames and expensive resources.
  7. Reduce risk with positive proof of performance – Reduce overall risk by requiring proof of performance deliverables in days not months.
  8. Ensure flexibility to scale up or down – Assess the ability to quickly scale up or down the range of scope of any solution. A successful strategy should support either without incurring additional capital and resources.
  9. Make your supply chain faster, smarter and better – Make your supply chain faster by reducing lead times, smarter by using automation and intelligence, and better by reducing cost and carbon footprint.
  10. Share the Savings – Cost savings across a supply chain require a win-win collaboration. Remember, supply chain partners must also survive the recession to reduce your risk.

[As seen in Supply & Demand Chain Executive, Dec/Jan ‘09]

Reduce Your Carbon Footprint

Does location matter when selecting an order fulfillment center for publishers?
When a publisher considers a book fulfillment partner, location can have a significant impact on the environment. Distance from the publisher’s customers will determine the size of their carbon footprint.

Our third post on this topic focuses on reducing your company’s carbon footprint.

Before you can learn how to reduce your carbon footprint, you have to know what this means. A carbon footprint is essentially the measure of the impact a company’s activities have on the environment and how this impact affects climate change. The size of a company’s footprint correlates with the amount of greenhouse gasses they produce throughout the day by burning fossil fuels for transportation, electricity, running machinery, etc.

This is why using a warehousing and fulfillment company in Chicago is so much more efficient than using one in New York or Los Angeles The greater the distance the books must be transported, the greater your company’s carbon footprint.

As the chart in our last post illustrated, Ware-Pak’s central location enables your shipments to reach the entire U.S. population within five days or less and more than 80 percent of the U.S. within three days. Getting your products to market in fewer transit days not only saves money, it results in fewer greenhouse emissions and a lower overall carbon footprint.

Here’s an example…
If a publisher’s books need to get to a retailer in Oklahoma City, how many miles would they need to travel?

1,451 miles from New York
1,331 miles from Los Angeles
796 miles from Chicago

Shipping from Ware-Pak’s Chicago location is by far the shortest distance, resulting in a 40% smaller carbon footprint than Los Angeles and 45% less than shipping from New York.

Does Location Matter? Part 1

Does location matter when selecting an order fulfillment center for publishers?

As the old saying goes, it is location, location, location that counts. When a publisher considers a book fulfillment center, the location will have a direct impact on their business. When selecting a distribution center, publishers can expect to achieve three goals by choosing the correct location. The first objective should be to increase customer satisfaction by reducing the time required for delivery. The second should be to dramatically reduce transportation costs by locating the facility central to your customer base – for a publisher selling nationally, a Midwest location is the most economical for transportation cost. Finally, go green and reduce your carbon footprint. In addition to saving money, selecting a central location will help the environment by reducing the amount of fuel required to deliver your books to the end customer.

Today’s blog entry focuses on the first point – cutting delivery times.

In today’s environment, consumers are looking for instant gratification; when they place an order, they want it delivered to their home or business fast. People are just not willing to wait two or three weeks for their books. If they cannot receive their order within days, they are looking somewhere else to buy. The large box stores like Wal-Mart, Kmart, Sears, etc. measure every vendor by fill rate, amount of time from placing the order to delivery, and error rate. The better the rating, the more they are willing to order from the vendor.

If you are a publisher with national presences, then it is very important to select a central location. Being a Chicago-based fulfillment center, Ware-Pak has two unique advantages. One, a Midwest location saves transit time, costs less to ship product to the consumer and reduces the carbon foot print for delivery. Secondly, Ware-Pak is serviced by the largest ground terminal in the UPS system, giving Ware-Pak a farther reach than other companies in the Chicagoland area not serviced by the CACH facility.

From our facility in Chicago, UPS can reach 58% of the U.S. population within a 2-day delivery radius, 81% within 3 days and 99.6% within 4 days. From west coast locations, transit times are typically 21% in 2 days, 23% in 3 days and 50% in 4 days. East coast offers 48% in 2 days, 67% in 3 days and 81% in 4 days.

Reduced transit times provided by Ware-Pak means increased customer satisfaction for publishers AND cost savings. I’ll focus on what lower costs can mean in a tough economy in later blog entry.

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