This week at our St. Louis facility we will be testing our new pick module and conveyor system.  Designed for accurate and high-speed e-commerce order fulfillment, the pick module lets TAGG quickly and accurately fulfill consumer orders from websites, catalogs, direct response mail and direct response TV.  Direct-to-consumer orders continue to be a fast growing market segment of TAGG’s, driven by e-commerce business.

The pick module allows order pickers to pull product from continuous flow shelves into a tote.  Once the order in the tote is complete, it is placed on a conveyor system that routes it to the appropriate packing station.  There it is packaged according to client specifications and placed back on the conveyor to the shipping station where it is scanned, weighed and the appropriate shipping label is applied – usually USPS, FedEx or UPS.

For our e-fulfillment clients, the pick module will allow TAGG to increase capacity and keep costs per unit very low.  We are excited to have this equipment and technology and look forward to sharing it with those in e-commerce trying to get orders accurately and timely delivered to customers at a competitive price.

Online consumers are becoming increasingly savvy regarding shipping rates.  eCommerce retailers simply can’t just offer one method of shipping at a set price point.  Consumers now demand options based on price and speed of delivery.  Most noticeably, high shipping rates can often be directly correlated with high abandonment rates at the checkout point of your shopping cart.  Fortunately, there are also an increasing amount of shipping options for our ecommerce fulfillment clients, and the technology to determine what best fits.

We are in the process of rolling out ‘least cost routing’ to our efulfillment retailers.  This fulfillment technology allows ecommerce retailers to choose designated shipping methods and then automatically shop for the best rates between those methods.  For example, we have an ecommerce fulfillment client who ships either FedEx Ground Residential or FedEx SmartPost.  SmartPost is a hybrid shipping method that uses the USPS to deliver the final mile to the consumer.   Least cost routing with take into account weight, destination and transit time and automatically choose the best method according to these variables.  Having this technology allows the ecommerce site to show a decreased shipping cost often without sacrificing transit times…meaning increased ecommerce sales.  If your ecommerce fulfillment process cannot include least cost routing, better give TAGG a call!

ST. LOUIS. (March 15, 2013): St. Louis-based TAGG Logistics, a third-party distribution, fulfillment and logistics provider to mid-sized manufacturers, is consolidating its three St. Louis locations into a single, expanded logistics center. Scheduled to open in April, the new facility will increase the company’s capacity by 35 percent and feature high-volume material handling equipment and a state-of-the-art warehouse management system.

“Our new facility will be one of the most advanced third-party logistics centers in the Midwest,” said Tod Yazdi, principal. “We’re not just storing stuff on shelves. Our new facility perfectly positions TAGG Logistics for growing healthcare companies and others that need to take logistics to the next level.”

TAGG specializes in healthcare and consumer products order fulfillment. The 200,000-square-foot center will feature bulk distribution space, multiple kitting and assembly lines and a high-volume order-picking module — an automated material handling system for TAGG’s e-commerce, catalog and direct response TV order fulfillment business.

Located at 372 Hazelwood Logistics Center Drive in Hazelwood and adjacent to Lambert St. Louis International Airport, the facility was part of a planned industrial/distribution park that was never developed.

“We’re helping to bring this depressed area back to life,” Yazdi said. “Construction upgrades began in early January and grand opening plans will be announced soon.” The structure was originally built by St. Louis developer Paul J. McKee, Jr. of McEagle Properties, O’Fallon, Missouri. TAGG has a 10-year lease on the property.

About TAGG Logistics

Founded in 1979, TAGG Logistics is a leading fulfillment, distribution and packaging provider for mid-sized healthcare and consumer products businesses that have outgrown their current capabilities. TAGG provides order fulfillment, distribution services, contract packaging, reverse logistics and kitting and assembly via its St. Louis operations and West Coast fulfillment and distribution center in Reno, Nevada. To learn more, visit www.tagglogistics.com or call 866-991-TAGG.

eCommHub is a platform specifically designed for online retailers that don’t keep their own inventory, but instead rely on third-party vendors, drop-shippers, and fulfillment centers.  One of the benefits of the partnership is the ability to manage inventory.  TAGG’s warehouse management system can now better sync inventory levels with our ecommerce fulfillment client’s shopping cart, giving the cart a real-time portal into it’s inventory.  This allows the consumer to know if there are any back-order, inventory out-of-stocks or general levels of availability.  Check out eCommHub’s site for more information on this helpful tool for ecommerce fulfillment, www.ecommhub.com

“eCommerce fulfillment continues to be one of our fastest growing service segments,” said Tod Yazdi, Principal of TAGG Logistics. “Our clients are online retailers. We hold their inventory and ship their ecommerce orders directly to the consumer. TAGG’s partnership with eCommub’s market-leading software platform will give our clients an additional tool to manage inventory and online orders.”

“We’re thrilled to be a partner with one of the premier e-fulfillment providers in the industry,” added Kurt Heinrich, eCommHub’s Founder and CEO. Online retailing often requires several software platforms to seamlessly pass information back and forth. A critical part of this process is having TAGG’s warehouse management system (WMS) communicate with its client’s e-commerce platform to manage functionality such as inventory levels, order flow, back orders, and returns processing. “Our software essentially lets an online retailer to put their store on autopilot by allowing TAGG’s warehouse management system to be completely linked to their shopping cart,” added Heinrich.

About TAGG Logistics

TAGG Logistics is a leading fulfillment, distribution and packaging provider for mid-sized healthcare and consumer products businesses that have outgrown their current capabilities. TAGG provides order fulfillment, distribution services, contract packaging, 3PL, reverse logistics and kitting and assembly via its St. Louis operations and West Coast fulfillment and distribution center in Reno, Nevada. To learn more, visit www.tagglogistics.com or call 866-991-TAGG.

About eCommHub

eCommHub is a platform for online retailers that do not keep their own inventory, but instead prefer the convenience of third-party vendors, drop-shippers, and fulfillment centers. eCommHub integrates with popular shopping cart platforms, like Shopify, Magento and BigCommerce, to streamline inventory management and order routing. With its easy self-service setup and affordable Pay as You Grow™ pricing, eCommHub users spend less time managing their online store, giving them more time to grow their business. To learn more visit ecommhub.com or call 678-653-1482.

A hybrid approach combines the services of the big three – typically FedEx with USPS or UPS with USPS.  For example, Mail Innovations (“MI”) can be a great alternative to First Class Mail.  With MI, UPS picks up your package and delivers it to the USPS – near the destination Post Office.  Then, the mailman makes the final mile delivery to your house.  FedEx’s SmartPost is a similar service, only for larger shipments, and is a competitive alternative to Priority Mail.

These hybrid approaches are great options for e-commerce sites.  At the shopping cart, give your customer the option for ‘free standard shipping’ and use one of these options.  It’s a great way to get a competitive advantage in shipping.

1. Flexibility – sell your product – any way you can. One partner to handle EVERY sales channel. Direct-to-consumer (fulfillment), business-to-business (distribution) capabilities, deep experience shipping to a broad group of retailers – complete EDI and routing guide experience, promotional sites like Groupon, direct response channels like QVC or HSN. These days, the number of sales channels seems endless. Clients need one fulfillment provider with the flexibility to handle it all.

2. Technology leader. State-of-art WMS for inventory management – live look, e-mail alerts, pick tools (FIFO, FEFO, etc..), lot code/serial code tracing capabilities. Also, complete integration capabilities – tools to integrate with any shopping cart/order entry system for seamless order flow.

3. Save money… Big time! Huge volume discounts. Shipping rates – small package and freight – deeply discounted.

4. Service is what we sell. Dedicated CSR/Account Manager resources assigned to every account and access to warehouse managers – an on the floor, hands on resource. Also, same day shipping and fast and responsive to questions and requests.

5. Do it right. Reduced pick/shipping errors through complete scanning environment and QC processes.

6. Simple billing structure. Transparent, straight-forward approach with no surprises or hidden costs. In addition, pay only for what you use. Transaction-based pricing gets rid of fixed overhead.

7. Focus. Product experience in healthcare and consumer products. Know the market, know the customers, know the requirements.

8. Project work is inevitable. Capacity and know-how for kitting, assembly, display building, rework, etc…

9. Location. Location. Location. Multiple locations to save inbound and outbound costs and reduce transit time.

10. True partner. Complete and timely access to business managers and resources. Not just words, do you have mobile numbers? Are calls returned promptly? Are you treated like a partner or an annoyance?

CLICK HERE TO DOWNLOAD PDF VERSION

It is an exciting time for TAGG, and while the full move isn’t expected until April/May, in the coming weeks look for updates on the expansion as well as greater detail on the facility!