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Keep Improving! Those of you who have been getting our newsletter know that we spend much of the time in our opening remarks talking about change. At TAGG, we strongly feel that we need to be adapting and improving to meet the needs of our clients. Our philosophy is that change is not an option. There is no such thing as the status quo because if you are not moving forward, your clients and competition that are moving forward, are leaving you behind.
One area of change easy to spot is our upgraded and remodeled front office space at our main St. Louis warehouse. Also on the change front, will be the addition of our fourth facility, which we are looking to add the St. Louis area the first half of 2011. Finally, we have selected a new Warehouse Management System (WMS) that we will begin to implement and integrate starting in January. Talk about change! The new WMS will add best-in-class technology throughout our entire process. As with any completely new system, it will also be an adjustment for both TAGG and our clients. We are looking forward to the implementation process with a plan to go live mid-2011. There are lots of positive changes in the air! Thank you to our valued clients and dedicated employees for a great 2010 and Happy New Year to all. All the best, The Rise of Outsourced Fulfillment and Distribution From Cyber Monday to Black Friday….and Every Day In-between This year, I have heard just as many news stories about ‘Cyber Monday’ as I have about ‘Black Friday.’ Behind the scenes of these two very distinct sales channel events, has been the continued growth in size and importance of a relatively new industry – Third Party Logistics (3PL). More and more, it is the 3PL that makes sure the brick-and-mortar stores are stocked for Black Friday and it is the same 3PL which also ensures orders from the web-sites of Cyber Monday are shipped in time for the Holidays. Specifically, outsourced distribution and fulfillment providers have grown and evolved over the last three decades to carry the majority of the load of today’s retail supply chain across all sales channels. Way back when – actually not too way back when, the traditional business model included domestic manufacturing. Companies had a factory where product was made and next to it they had a warehouse where product was stored. Goods were then shipped from this warehouse to all the brick and mortar retail stores. With the rise of globalization, the factory was the first to go. Production could occur virtually anywhere in the world. With the factory gone, that large warehouse next to it suddenly became completely optional, if not obsolete. Domestic distribution could be located where it optimized the supply chain and reduced transportation and storage costs. It no longer had to be in that warehouse located next to the factory. In addition, just like production, it could be outsourced to a third party to save money, decrease fixed costs and/or increase efficiencies. The third party distribution and fulfillment provider was born. Click here to see the article. TAGG Logistics is a leading, third party logistics provider specializing in order fulfillment, distribution services and packaging, kitting and assembly. With facilities in St. Louis, Missouri and Reno, Nevada, TAGG Logistics works closely with its clients to identify their specific requirements and implement the most effective and efficient order fulfillment solutions. We serve a national client base of manufacturers, wholesalers and retailers and have demonstrated flexibility, professionalism and reliability since 1979. Check out our blog and find us on Facebook TAGG-ism of the month: Just for fun:
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