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Whether you want to ship personal belongings or commercial products, it may seem confusing; if you are new to shipping goods, the wide variety of terms related to the process of shipping goods through the supply chain, you may have difficulty dealing with it for the first time, but understanding the most important types and methods of shipping goods, related terminology is critical; To ensure that the goods are shipped on time and in good condition, in this article we will show you everything you need to know about freight shipping as well as the benefits of shipping freight.

What is freight shipping?

Freight shipping means transporting a number of cargo shipments, whether large or small, locally or internationally, through a number of ways, such as land, air or sea freight.

During freight shipping, they are loaded on large and sturdy containers; they also can be transported by relying on a single mode of transport or using a multimodal transport system.

What classifies as a freight shipment?

We can say Freight Shipping on any shipment that will exceed 30″ by 30″, or exceed 150lbs, and these dimensions are the most cost-effective for freight and transportation.

As for standard trucks, they can accommodate a maximum of 26 pallets, a typical pallet dimension is 48 inches wide, along with a length of about 40 inches, and the maximum possible height is 80 inches.

Speaking of truck containers, we find that their height is 4 feet from the ground, so there are warehouses equipped with elevated berths for loading and unloading trucks.

In the absence of warehouses or storage facilities with a raised berth, the only solution to loading or unloading the truck is the use of forklifts, and a truck with lift gate service can be booked for an additional cost.

Freight Shipping methods

There are 5 types of fright shipping that the shipper can choose from, and the following are those types and their explanation:

1. Full truckload (FTL)

It is a complete container for transporting the inventory you want, meaning that your goods will consume all the truckload and this type of shipments can be transported by road or by rail.

FTL can transport from 24 to 26 pallets, and all FTL shipments are direct, i.e. from the shipment pick-up location directly to the requested destination

2. Less-than-truckload (LTL)

It is not a full container but less than a truckload, and it can take from 1 to 6 pallets, and the LTL method is the most used method by shippers and traders.

And e-commerce stock is often transferred on various trucks until it reaches its destination

3. Partial truckload (PTL)

They can accommodate 6 to 12 pallets, and once stock or goods are loaded onto that truck using the PTL method, often no more than one truck is used during the transportation process.

4. Intermodal

It is one of the ways of fright shipping, in which more than one means is used to transport goods. It can be shipped by rail, then sea, then trucks, for example.

One of the advantages of this method is that it is sometimes very economical, especially since the use of railways as part of the method of shipping goods reduces the use of fuel and also reduces shipping costs

5. Expedited

It is a fast shipping method, and it is used with shipments that are important to deliver on a specific date that cannot be delayed, and in a more precise sense, urgent shipments, and this method is the most expensive method, and air freight is often used during it.

How to prepare a freight shipment

The preparation of the freight shipment is one of the most important things that you should care about, because it will affect the safety of the transported goods as well as the cost itself.

In general, the preparation of Freight Shipping varies from one package to another, but here are a number of tips that will help you ship the ordered goods safely as accurately as possible:

1. Choose the right size for the pallet

The first thing to consider while preparing a Freight Shipping is choosing the right pallet size for transported items.

Pallets are used for the purpose of unifying shipments and facilitating their movement and transportation.

In general, when you choose a pallet, check that it is sufficiently robust and large enough to accommodate goods without stacking or accumulating, so as not to damage the goods or movables.

2. Design the appropriate non-palletized shipment

If you are not going to use a pallet to ship the goods, choose suitable shipping containers, and you can use corrugated boxes.

Try to avoid reusing the boxes to ship the goods, but if you do, check that there are no holes before use to keep the shipment safe.

3. Put clear labels on the pallet

Each pallet must include visible labeling with a phone number and shipper’s address written on all sides of the pallet.

4. Follow all instructions of the freight carrier

Finally, and the most important thing that you should also take into account is to follow the instructions of the shipping company, as each shipping company has a number of important instructions on how to prepare for receipt,

So check that you have read all the instructions of the shipping company that you will deal with, in order to avoid any transportation problems.

Benefits of shipping freight

There is more than one benefit that Freight Shipping can provide for you, as it is one of the most common ways that saves you a lot of effort, in addition to the possibility of transporting goods in large quantities safely and at reasonable cost, and here are some points that explain the benefits of shipping freight:

1. Deliver your goods on time

Choosing a good carrier will help you deliver your goods on time safely and easily, thus eliminating any worry about how the goods will be delivered and transported from one place to another.

2. Ship your goods safely

Shipping your goods through pallets helps you ship those goods safely, protecting them from the risk of damage or theft.

Also, Freight Shipping services will give you all the details of your Cargo Tracking, thus identifying the movements of goods until reaching the desired destination.

3. Shipping your goods at lower cost

Freight Shipping provides you with more than one way to ship goods, and there are a number of ways that can save you a lot of costs,

Especially the LTL and PTL methods, they help you pay for the space that your goods will consume and not the whole load of the truck.

In most cases, the cost of goods is determined by the cost of the dimensional weight, and these methods help you to divide the cost of using the truck with other shippers, thus significantly reducing costs.

How does freight apply to ecommerce order fulfillment?

E-commerce companies use Freight Shipping to send inventory to 3PL fulfillment centers. Many Delivery logistics providers help customers book Freight Shipping with outside suppliers.

They also advise on shipping and receiving processes, and provide you with acceptable shipping rates for goods and how to ensure that they reach the delivery destination safely and efficiently.

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Supply chain resilience is a key component of business success. It refers to more than just an efficient supply chain network. The term also refers to a company’s ability to outperform anticipated threats and disruptions, besides the ability to recover quickly and efficiently, in this article we will show you 5 strategies to build Supply Chain Resilience in a Connected World.

What is supply chain resilience?

Before we start talking about the five strategies for building supply chain resilience in a connected world, we will first need to know what supply chain resilience is.

Supply chain resilience is the ability of the supply chain to anticipate and resist the unforeseen events, which result in supply chain disruption.

This is very important for e-commerce solutions ​companies, which need to establish a strong supply chain along with other plans and processes,

With the aim of satisfying customers, this ensures business continuity in light of unexpected disruptions.

5 strategies to build more resilient supply chains

Now after we know what supply chain resilience is, we can talk about the five strategies for building supply chain resilience:

1. Distribute your inventory across multiple locations

The first strategy is to distribute your inventory to more than one warehouse, in order to face the possibility of any natural disaster or emergency event that prompts you to close your warehouse.

The main advantage of this is the ability to reach customers faster and thus expand customer reach, as well as speed up shipping time and reduce shipping costs.

If anything unexpected happens that prompts you to close your warehouse, you will fail to fulfill customer orders with more delays and delays that customers hate so much, which will affect your reliability and subsequently your revenue and profits.

2. Understand your data

The second strategy is related to understanding the data of your facility. Gaining a real-time view of your supply chain will help you build resilience in several ways, the most important of which are:

• Better inventory control.
• Enhanced ability to track supply chain performance.
• Speed ​​up access to historical inventory and demand data.

By understanding the data well, you will be able to improve your inventory levels, by determining the amount of safety stock that you will be able to store, and this is very important if you know, especially that the buffer stock or safety stock can lead to a significant increase in costs.

So, you need to accurately plan the temporary stock levels, and in this case you can use the warehouse management system, which is one of the forms of modern technology, and you can also synchronize it with your inventory management software.

3. Partner with multiple suppliers

The third strategy is to partner with a number of suppliers, which will make you immune to risk, especially when the primary supplier cannot be delivered due to shortages or trade restrictions.

Therefore, the process of partnering with a different group of suppliers will help you greatly in reducing the risks resulting from lack of inventory, and thus avoid the problem of disrupting your supply chain.

This, in turn, will fulfill customer demand at any time, even if there is a shortage of e-commerce stock for example.

4. Leverage different carriers

The fourth strategy is to try to take advantage of different carriers, thus avoiding shipping delays, as by using multiple carriers, you have more flexibility in shipping.

You can turn to a third party to help you improve your shipping strategy without having to manage multiple partners yourself, which also saves you time, effort and money.

5. Rely on logistics experts

Fifth and final strategy, relying on logistic experts can help you build your supply chain’s resilience in an excellent way.

It is not just about providing a strong supply chain infrastructure, but also having a number of logistic experts will make a big difference.

These logistical experts will anticipate any potential disruptions, and thus the possibility of avoiding them before they occur, or plan ahead for them.

So you notice that there are a large number of companies, especially e-commerce companies cooperating with third party logistics (3PL).

Outsourcing your logistics has never been easier

The process of outsourcing logistics has become easier than ever, due to the great advances in technology and the adoption of the highest level of technology by a large number of parties.

Diggipacks can provide you with the latest technology and technology that you will need for your online store, from syncing your store to being able to track and manage inventory and orders from your dashboard

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Buffer inventory is one of the important things that helps you in maintaining high levels of customer service, as it is one of the essentials to face fluctuations in demand or future fluctuations in general, especially since delaying customer requests on time negatively affects customer satisfaction, and stock runs out suddenly or not. The ability to discharge inventory may incur more costs, and in this article we will talk about Buffer Inventory and how it can make or break a business.

What is buffer inventory?

It is your surplus inventory, which is stored in warehouses for use in the event of an unexpected emergency, such as a supply chain failure, transportation delays, or a sudden increase in demand.

It can also be defined as the limit within which the inventory of any item must not be less than this level, thus avoiding any other costs, such as the costs of running out of stock and the opportunity cost and other costs that the institution can control by providing the necessary solution from the inventory.

*Noting that this does not negate that “the quantity of safety stock should be reduced to the least possible because in reality it represents idle capital.

Buffer inventory vs. safety stock

In fact, the two terms are used interchangeably, both of which refer to the additional stock that resides in the warehouses of a facility, as a reserve in case of unexpected changes in supply or demand.

There are some who believe that ‘buffer inventory’ refers to the stock that is provided specifically for cases of unexpected increase in demand for a particular product, while the term ‘safety stock’ refers to the amount of inventory held in the event of any delays from the supplier itself.

But in general, both terms Buffer inventory & safety stock serve almost the same purpose, as their objective is to ensure business continuity with sufficient inventory to meet and fulfill orders in the agreed time.

Why you need to keep buffer inventory

You may be wondering why you might need to keep a buffer inventory. Quite simply, buffer inventory is very important, especially since inventory forecasting is never 100% accurate.

Therefore, buffer inventory helps you reduce inventory costs while also avoiding any delays in fulfilling customer orders and shipping.

Therefore, a buffer inventory is a contingency plan that helps you prepare for any unexpected events on the job.

How to calculate buffer inventory levels

After we have defined what is meant by buffer inventory, we will now need to know how to calculate buffer inventory levels. In general, your buffer inventory depends on a number of factors. There is no one buffer inventory size that fits all, and this means that you will need to do some calculations in order to arrive at the amount or your appropriate buffer inventory.

There is more than one way to calculate the right buffer inventory levels for you, and getting the right buffer inventory level is essential so that you can improve storage and ensure orders are executed on time, and thus customer satisfaction.

In order to calculate the appropriate buffer inventory level, you need to determine a number of things first and then use the appropriate mathematical formula. These things are:

• Average daily usage.
• Average lead time.
• Maximum daily usage.
• Maximum lead time.

After accessing the data that we mentioned in the previous points, you can now use this formula to find the optimal buffer inventory level:

• (Maximum daily sales*Maximum lead time) – (Average daily usage * average lead time)

Simplifying your inventory management

Warehouse management is not an easy task, but rather it requires a great deal of work and effort in order to manage the stores efficiently and effectively.

And when your business begins to grow and expand, you will start thinking about how you can simplify your inventory management, and here are some ways that can help you in simplifying inventory management.

1. Use of inventory management software

You can actually simplify your inventory management through the use of technology thus saving a lot of time and effort as well as money as well.

Inventory management software can help you track and manage inventory from multiple channels in real time, and there are a variety of inventory management software to help you analyze trends in your past orders.

It can also show you the entire inventory data, thus helping you to make the best decisions, and ultimately, all orders will be fulfilled on time and costs will be reduced.

2. Hire logistic experts

Partnerships with logistics experts can also help you simplify your inventory management, especially as they are experienced in the field and thus help you improve inventory levels while spending less time on logistics.

3. Outsource to a 3PL

Also, instead of using inventory management software or hiring logistics experts, you can also outsource a 3PL especially since supply chain management is a time consuming process.

This can help you improve inventory management as well as warehousing; order 3pl fulfillment and shipping on time, and this will save you a lot of effort, time and money as well.

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Kanban is a Japanese word meaning “board”, invented by an engineer working for Toyota in the late 1940s. was adopted as an agile framework for product development by improving transparency and communication between one team and raising efficiency by reducing Waste of time and material, framework was used by many software and marketing companies in early 2007, then framework spread as a way to increase performance among major companies in various industries, and in this article we will show you everything you need to know about Kanban.

What is Kanban?

is a method of workflow management that allows you to better visualize your business, in order to improve your efficiency. Kanban means nameplate or sign in Japanese and was originally used in the industry, having been first implemented at Toyota in the 1950s.

 Since then, this method has invaded many sectors and has been adopted by many companies that want to improve task management among team members.

 How Kanban works

We can show how works through the following. The simple board consists of parallel columns, where each column includes the tasks to be performed, and most likely the columns are divided as follows:

• Required tasks.
• Tasks in progress.
• Tasks under test
• Completed tasks.

If there is a process that consists of 4 tasks, the first column can be dedicated to the tasks to be accomplished, which are often requested by the management, the customer or the team leader.

The second column contains the tasks in progress, work or development, and the third column includes the tasks that have been completed and are waiting to be tested and to know their readiness for release as a working part of the final product.

While the last column contains tasks that have already been completed, the board can be customized and used differently, for example, we may include a column under review, a feasibility study column and so on.

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Kanban system

A kanban system is defined as a work management system, where tasks on a kanban board are divided into three or more columns depending on the nature of the work, and a kanban board enables teams working on the same product, project, or department to communicate in a collaborative visual platform over the Internet and thus reduces the use of Contact email.

And since all team members can see and follow up on tasks through this platform, individuals will be able to follow up on the work and know where the problems are and what are the causes of delays and delays, etc. This reduces the wasted time, and completes the work quickly, easily and highly and efficiently.

Types of Kanban

There are 5 types of kanban, and each type has a specific use. The following are the most important types :

1. Production Kanban

It consists of a list of all the things that the part needs to be completed or finished, thus bringing those parts or materials required, along with the information contained in the withdrawal .

This clarifies what production system is required for the production process to begin, and what will be produced.

2. Withdrawal Kanban

This type has another name, conveyance kanbans, and this type is used when a component has to be transferred from one production part to another.

3. Emergency Kanban

This type is used in the event of defective parts that need to be replaced, or in the event of a sudden change in the required production quantity and thus the need to modify the plan.

4. Through Kanban

This type helps to speed up the production process and save time, as it pulls the parts required in production when they are needed and operates them.

5. Express Kanban

This type is used when a sudden shortage of production parts appears, and it is intended to speed up the manufacturing or production process as well.

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A recipe for Kanban

is a magic recipe for success, through a number of steps that will inevitably lead you to success if you apply them correctly. Workflow:

• Focus on quality
• Reduce Work In Progress
• Deliver often
• Balance demand against throughput
• Prioritize
• Attack sources of variability to improve predictability

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What is a Kanban board and how to start using it?

Kanban is a pull system, where tasks cannot be pushed or imposed on a team or person if they are still working on many other tasks. Conversely, a team or individual can pull out new tasks after completing one of the tasks in a particular column.

The draw system limits the number of tasks in progress (Work in Progress – WIP) by setting a threshold, and the threshold is the maximum number of tasks in progress, for example there can be no more than three tasks ahead of completion,

In this way, no one can add any column task in progress before one of the three tasks moves to a column under test, and in this way we reduce the pressure on the development or manufacturing team so that this team focuses on specific tasks in progress instead of accumulating tasks that cannot be accomplished.

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The purchase order is the company’s approval to purchase products from a supplier, and it also precedes the supplier’s invoice and contains the names of the goods, their required quantities, unit price and all other purchase terms. By the company, after confirming the purchase order and receiving the purchases from the supplier, it can be converted directly into a purchase invoice, and in this article, we will talk about purchase orders and why they are important for small and medium businesses.

What are purchase orders?

A purchase order is a document that is an agreement with a supplier for the purchase of goods or services, and this document also helps to track product receipts that have been posted against the purchase order and, later, to calculate the invoices that the supplier prepares against the order.

Reasons why Purchase Orders are important

The purchase order is an essential process when conducting large, two-way transactions, and it helps in clearing business expenses,

This is essential when sticking to budgeting, generating inventory expense reports, and avoiding supply chain errors. Below we’ll show you why purchase orders are important:

1. Understand the company’s financial condition and prevent inconsistencies

Where purchase orders help provide clear information for auditors to consider historical data of transactions.

When a company is clear in issuing, processing and recording purchase orders, this prevents inconsistencies in financial information and allows auditors to clearly understand the company’s financial condition.

2. Easily track expenses

The company’s expenses can be clearly tracked through the use of purchase orders, it not only helps the company know how much it is spending, but also shows the details of what is being purchased.

This gives companies key information about ordering data to improve this process in the future, a simple look at past purchase orders and sales statistics for the company can show.

3. Billing accuracy

An invoice is basically the opposite of a purchase order, this is a document issued by the supplier to the buyer to request payment. get to know digital payments

However, it is still necessary to use the purchase order with invoices, as it provides more clarity and accountability during the transaction process for both parties.

4. Smooth execution of orders

When a company’s finance and inventory departments have access to purchase orders, it creates a seamless and transparent process for restocking and order fulfillment. Via fulfillment center

5. Providing legal protection

Purchase orders provide legal protection for both parties. If the supplier of goods or services does not fulfill the agreements stipulated in the purchase order, such as price – quantity – delivery date… This document can be used as evidence of breach of contract.

How purchase orders (POs) are different from invoices

Many people confuse the purchase order and the invoice, but in fact there are clear differences between each, so we find that:

A purchase order is a document passed from a buyer to a seller that specifies the quantity, quality, number of different products needed by the party and the expected rates.

It is a legal defense for the seller if the buyer refuses to accept the goods and services once the seller has produced them and the buyer refuses to pay for them.

An invoice is a document that is passed on from the seller to the buyer and indicates that the seller wishes to receive payment for goods or services that he previously provided.

The buyer also needs to pay when the invoice is presented, and the invoice is usually sent with the goods or services supplied but the seller can issue it when payment is due and the buyer is obligated to pay when it is presented to him.

The following is briefly the main differences between purchase order and invoice:

• Invoice is a document from seller to buyer, while purchase requisition is a document from buyer to seller.
• Invoice is a payment reminder and the buyer needs to pay for the goods and services he has already acquired,
• While a purchase order is an offer document from the buyer to the seller in which he specifies the quantity and quality of materials required along with prices.

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All large businesses use a purchase order

All large companies use purchase orders primarily in their business, which helps them avoid the risk of wasting time and money,

As many parties may order goods and services informally, so purchase orders protect the company from any potential risks.

It also helps purchase orders in improving the company’s profitability as well as enhancing its future vision as well,

Especially since all companies realize that the greater their size and growth, the greater their need to track their financial operations, especially purchases.

Also, in large companies, purchase orders play a vital role in managing the company’s spending, thus improving purchasing processes, as well as assisting the company in receiving and accounts payable.

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Inventory management is one of the most important things that can affect the efficiency of the work of any business, especially since inventory is one of the most important assets owned by the facility, so care must be taken to manage it well, and We will know the average inventory formula to manage it well, and it is necessary to have an appropriate amount of inventory, which will push the company forward. It reflects its strength in managing costs, sales, and then labor relations, calculating average inventory, as well as inventory turnover, can help maintain the right amount of inventory. In this article, we will talk about the average inventory formula, its use, and what are the main challenges for average inventory.

What is average inventory? 

The average inventory formula is one of the accounting metrics useful in tracking changes in inventory over time, and it is a tool that helps show the state of inventory during the current time or accounting period.

The average inventory can be defined as an estimate of the value of the inventory owned by the company during a specific period of time.

The calculation of the average inventory helps in the face of the rises or drops that can occur suddenly in inventory balances.

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Average inventory formula

There is average inventory formula for calculating the average inventory, which is by adding the current and previous inventory and dividing their sum by the number of periods, and the following is the average Inventory Formula:

• Average Inventory = (current inventory + previous inventory) / number of periods

Average inventory calculator

As we mentioned in the previous part, average inventory is an estimate of the amount of inventory owned by the company during a certain period.

And there are a number of accounting tools that can help you easily calculate average inventory without the need to manually use the average inventory formula.

What Is Inventory Turnover Ratio?

Turnover is an accounting term that calculates how quickly a company collects money from accounts receivable or how quickly a company sells its inventory.

The inventory turnover ratio is a ratio that shows the number of times a company has sold and replaced inventory during a given period.

The company can then divide the days in the period by the inventory turnover formula to calculate the days it takes to sell inventory on hand.

Calculating inventory turnover can help companies make better decisions about pricing, manufacturing, marketing, and purchasing new inventory.

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Calculate Inventory Turnover

Companies calculate inventory turnover by calculating average inventory, which is done by dividing the sum of beginning and ending inventory by two, and then dividing sales by average inventory.

Inventory turnover can be calculated by the following formula:

• Inventory turnover = Sales / Average inventory.

Uses of average inventory

You may now be wondering when to use the average inventory formula, and in general, you will need to calculate average inventory to calculate the inventory turnover ratio, which will help you get a sense of how much your inventory is moving, and thus how much inventory you will need to have at any one time.

You will also need the average inventory in order to calculate the Average Inventory Period, which will help you figure out how long it takes to convert your inventory into actual sales.

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Challenges with Average Inventory

There are a number of challenges facing average inventory. Despite the average inventory and its importance in inventory management, there are a number of flaws in it.

The following are the most important challenges facing average inventory:

• Inaccuracy, due to seasonal cycles, average inventory may be inaccurate.
• The occurrence of errors resulting from the presence of estimated balances, the average inventory is estimated accounts that are not accurate as physical counts of inventory.
• There are variances between monthly and daily sales, so using average inventory you will encounter a large discrepancy between today’s inventory and inventory calculated for longer periods.

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Bonded Warehouse is one of the types of warehouses, in which imported goods that have not yet been processed by taxes are stored, that is, the taxes and customs duties are still on them, and there is a customs authority that controls this type of warehouse, and there are many advantages provided by Bonded Warehouse, the most prominent of which is the possibility of postponing Paying due taxes or any other fees until those imported goods are distributed for sale, and in this article we will learn together in some detail what is a Bonded Warehouse and what are its advantages and most important disadvantages, and we will also show you what is meant by a private bonded warehouse.

Bonded warehouse

It is a building or secured area used to hold imported goods awaiting customs clearance, and in most cases they are close to commercial ports.

These warehouses are licensed by the country’s government to hold goods until customs duties are paid and a clearance document is issued to them.

When the goods enter the Bonded Warehouse, the importer and the warehouse manager bear the responsibility of the goods under a document signed between the two parties, and this responsibility is canceled in the following cases:

• When the goods are exported or considered to be exported;
• When the goods are to be withdrawn for the purpose of transporting them to a cargo ship or aircraft; You can track shipments through the tracking service provided by diggipacks.
• When the goods are destroyed by a decision of the Customs;
• Upon obtaining the clearance document and withdrawing the goods.

Diggipacks offers you the service of warehouse rental and managing a warehouse, and diggipacks owns many warehouses throughout the Kingdom of Saudi Arabia.

Importance of Bonded Warehouse

It is of great importance, and here are a number of points that illustrate this importance :

• Goods kept in the warehouse are safe, so the importer gets time to pay customs duties;
• It is possible for the importer to keep the goods in the customs warehouse if the goods are not required immediately and does not wish to pay storage costs, by delaying the payment of clearance fees;
• Importers are allowed to sort, divide and reclassify the goods within the bonded warehouse, making them ready for sale after clearance is obtained;
• If the importer does not own a private warehouse, he can transfer the ownership of the goods to another person while the goods are still in the warehouse.The advantages of a bonded warehouse

The advantages of a bonded warehouse

there are a number of benefits to users, and the following are the advantages :

1. Postponing the payment of duties and taxes

One of the most prominent benefits is the possibility of postponing the payment of taxes and duties on imported goods.

This is until these goods are taken out of the warehouse for sale, which allows importers to engage in other activities before selling them.

There are also some countries that impose savings and deductions in tax costs of up to 30% when importers use bonded warehouses.

2. Possibility to store for a long time

Bonded warehouses allow the possibility of storing imported goods for a long period, so this type of warehouse is called long-term storage warehouses.

If the imported goods do not meet some requirements, they can be stored in a bonded warehouse until all requirements are met.

3. Provide a better customer experience

Bonded warehouses allow imported goods to be stored ready to order, which will provide customers with better service and thus provide a better customer experience.

4. Maintain the quality of the stored goods

Bonded warehouses are equipped to the highest level, so that they can store any type of goods. They are equipped with facilities that can control their temperature, in addition to the presence of dry and refrigerated containers.

5. Maintain the security and safety of the goods

shall be equipped with all security and safety devices to provide security and safety for all goods stored therein. are also subject to many regular reviews by the competent authorities.

6. Proximity to ports

Most bonded warehouses are located near the nearest ports and airports, thus allowing companies to store their goods at the port of entry and ready for distribution.

Thus, saving a lot of costs, as well as reducing the time taken, and reducing the possibility of any damages, in addition to reducing transportation costs.

7. Provide additional logistics services

Most bonded warehouses can provide additional fast logistics services, as a large number are associated with distinguished Freight Broker who can provide end-to-end logistics solutions to users.

This contributes to maintaining the movement of corporate puns, as well as saving time and effort in searching and dealing with suppliers.

The disadvantages of a bonded warehouse

Despite the many advantages, there are a number of disadvantages that occur in bonded warehouses, and the following are the most important of those disadvantages:

1. Goods must be paid and removed from the warehouse within two years at most

On the figure that bonded warehouses are a place for long-term storage, but the period is not infinite, so this type of warehouse requires importers to pay the goods and remove them from the warehouse in two years at most.

This will cause a problem for importers with goods that need a long time to find the right market, which makes the importer have to sell at a loss, so this type of warehouse is not the best place to store goods.

2. The length of time in the clearing process

Bonded warehouses do not allow the exit of any goods from them except after following all the procedures for clearing those goods, and sometimes that process takes a great deal of time and is very cumbersome.

3. The need for a license to establish bonded warehouses

Bonded warehouses can only be operated or established with the approval of the competent customs authorities in that area, and therefore are not always readily available.

What is a private bonded warehouse?

is divided into two types, the private and the public, and the following is what is meant:

It is the place or building in which goods are deposited for the account of the owner of the private warehouse under the supervision of the competent customs department in a suspended situation for taxes and customs duties in accordance with the provisions of the customs system and law.

Type of person or business uses a bonded warehouse

is used by individuals or companies, and is frequently used by companies or importers who move goods in bulk.

This type of warehouse provides many benefits to companies and importers, in terms of inventory efficiency and cash flow.

Bonded warehouses take one of the following forms:

• Public bonded warehouses, which are owned by a party and used by individuals in return for payment of a certain fee.
• Private bonded warehouses, which are owned by their employees under the supervision of the customs authority.

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Many people do not know the difference between supply chain management and logistics, and the terms “supply chain” and “logistics” are often used interchangeably in the transport and trade sector, but there are differences between them, as each has specific operations, duties, and responsibilities Which differs from the other extreme, and it is believed that the confusion in the distinction between supply chain and logistics is caused by many people considering that logistics is a subcategory in supply chain management, but the main difference between supply chain and logistics is that the latter is just a dedicated part in the operations of The entire supply chain, and in this article we will detail the difference between supply chain and logistics.

What is the supply chain?

In order to be able to differentiate between supply chain and logistics, we will first need to learn about the concept of each; the supply chain is a broad and integrated process that entails many other aspects besides logistics,

Such as finding and selling goods, negotiating prices, manufacturing, warehousing, packaging, and inventory control.

Supply chain management also includes distribution, cost allocation, control, negotiation and collaboration with third party companies as well as supply and demand management.

What is logistics?

After we know the definition of supply chains, we will need to know what is meant by logistics and will know The difference between supply chain and logistics, and in general logistics services focus on the transportation and physical storage of goods, and deal with things such as shipping method like internal and external shipping, reverse shipping, communications in transit, and warehouse warehousing.

Logistics also deals with the delivery of goods, freight shipping, coordination between external third party carriers, fleet management and other activities directly related to the actual transportation of goods from one point to another.

Depending on the company’s needs, logistics management may also include manufacturing, packaging, price negotiation for various aspects of transportation, integration with third party companies, procurement, technology and communications, and customer service.

The difference between supply chain and logistics

When learning about the difference between supply chain and logistics, you should know that supply chain is the bigger picture between the two.

As supply chain management is the umbrella that covers all aspects of sourcing and purchasing goods, basically supply chain management forms and manages business links between companies that allow goods to be sold to consumers in the end.

Logistics—essentially shipping logistics from one place to another—is a function that falls under the broad umbrella of supply management, and is just one part of the entire process.

Examining KPIs: Supply chain vs. logistics

The KPIs are similar in both Supply Chain Management and Logistics, they both track inventory movements and warehousing, and the following are the KPIs for each and what difference between supply chain and logistics:

I. Supply Chain Management KPIs

1. Cash-to-cash cycle

The difference between supply chain and logistics at the Cash-to-cash cycle is an indicator related to supply chain management that measures the time taken for the cash you paid for materials to be converted into cash that customers pay you for your work or service.

The fast cash-to-cash cycle is a good indicator and means better and faster cash flow, and the opposite means that there is restricted and unusable cash.

2. Inventory days of supply

An indicator of how many days it takes to run out of supply if you don’t replenish your inventory, the higher this metric is, the better for your organization and means your organization is able to generate more cash.

3. Perfect order rate

The difference between supply chain and logistics at the Perfect order rate ​It is also one of the important indicators of supply chain management, which measures error rates taking into account the multiple aspects of the supply chain, and the higher this indicator, the more it indicates that the stages of the supply chain are good, which increases customer satisfaction.

II. logistics KPIs

1. Freight bill accuracy

It is a performance metric for logistics that measures the accuracy of shipping invoices. It is a useful metric in monitoring the efficiency of your business.

And helps you in estimating customer satisfaction levels with the service you provide to them. The higher the percentage, the higher the level of customer satisfaction and the lower the costs.

2. Transportation costs

It is a measure of checking the percentage cost of moving inventory based on sales revenue,

And the higher this number, the not a good sign, it means more your company is spending on shipping its merchandise compared to what it will recover.

3. Inventory turnover

It is one of the most important and also common performance metrics for logistics services. It is a measure that shows you how many times you have sold through your inventory during a given period of time.

The higher this indicator is, this is a good indication that your company has a strong customer demand for your products, and this is a good thing.

Should Small and medium-sized companies outsource their supply chain management or logistics functions?

Outsourcing refers to the process of hiring another individual or company to handle some of your business activities. It is not a new concept, but it gained a lot of importance in the early 1990s.

Companies can outsource some tasks and easily get skilled and experienced assistants, thus saving time, money and effort as well.

As for the basic question, should small and medium-sized businesses outsource supply chain management or logistics functions?

In fact, the answer to this question depends on the nature and size of your business and your business.

If you own a small business it is better for you and your business not to outsource your supply chain management, if you are a medium business it is better to hire them, when you can do it all on your own without outsourcing.

Outsourcing helps you make your supply chain easier by controlling the many errors that occur, such as missing shipment tracking or suddenly running out of stock.

In general, in logistics services, especially transportation operations, it is recommended that outsourcing is done, in order to reduce costs and reduce errors that may lead to the loss of customer satisfaction and consequently their loss. and this is The difference between supply chain and logistics in this point.

Advantages of outsourcing logistics

There are a number of advantages that outsourcing fast logistics services can provide to you, and the following are the most important ones:

• Reduce focus on freight, outsourcing logistics helps you get your employees to focus on important value-added activities related to other parts of the business, and leave the freight operations on those outside sources.
• Access to better technology, outsourcing logistics helps you to access more advanced technology, which will save a lot of time, effort and money as well.
• Improve Flexibility Outsourcing significantly improves the flexibility of your business, helping your company to expand and grow bigger and faster.
• Better resource allocation, outsourcing helps you save costs on additional overheads and focus on better allocating your resources.

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Supply chain strategy effectively helps in achieving company goals, and although the processes of creating or developing Supply Chain Resilience strategy may be difficult and cumbersome, it is a process that pays off and is worth it, especially since at the present time there are a large number of new variables that are on the scene. Businesses must deal with it in order to survive in the market and work, and in this article, we will present the top 6 supply chain strategies, which are specifically designed to help different companies thrive and survive in a complex business environment.

Supply chain strategy definition

The supply chain strategy is defined as a set of priority objectives for supply chain management and ways to measure them, with the aim of building and financing potential logistical success by entering new markets. are you know the Importance of warehousing in supply chain?

Six Top Supply Chain Strategies

The success of a supply chain strategy is measured by how well it meets customer requirements, and it includes a response strategy and an efficiency strategy.

These divisions are based on the nature of the business environment and changing customer needs, so it is worth understanding these two variables.

There are a number of supply chain strategies, and below we will show you the top 6 supply chain strategies:

1. Demand-driven planning and business operating model

The first supply chain strategy you can rely on is to adopt a demand-driven planning system, which will significantly help increase the predictability of demand, through the use of a number of powerful digital tools.

This allows for faster action, as well as the ability to automatically adjust supply chains based on real-time insights that match projected demand.

In addition to the use of cloud systems in new supply chains, allowing for the creation of standardized data models and augmented through data and other external sources.

And all this will eventually pay off and enhance the ability to predict and therefore accuracy in planning.

2. Create an adaptive supply chain with rapid planning and integrated production

The second best supply chain strategy, as agility is the most important thing in supply chains, as it helps align planning with manufacturing, resulting in increased agility and flexibility.

Cloud systems have helped handle the huge volume of information, linking financial and planning tasks through a common online interface.

This supply chain strategy will give the organization a faster ability to act and adapt smoothly to market changes.

3. Design and manage the product appropriately for its supply and sustainability

For you is one of the effective ways that will help you increase product revenues by up to 25% and will reduce operating expenses by up to 20%,

Due to the integration of design teams with supply chain planners on one platform, which is the cloud, and thus companies product development and planning supply chain.

4. Align supply chains with business objectives by integrating sales planning with corporate business planning

These days most companies and organizations face issues with market uncertainty, and this can be addressed by integrating tactical sales and operations planning programs with strategic budgeting and forecasting efforts.

All of this will increase the ability to plan, thus translating tasks and priorities into a set of operational tasks, which are constantly updated to reflect changing market conditions.

The integration of business planning and supply and demand planning significantly improves business agility by creating a cycle of planning, execution and performance management.

5. Integrate sustainability with supply chain operations

Our fifth supply chain strategy, sustainability should be a major priority for companies, as it contributes greatly to achieving profits for shareholders, and it has become one of the basics that also contribute to increasing the company’s growth and profitability.

Especially since sustainability places great emphasis on supply chain practices, which effectively affect environmental health, primarily reducing carbon emissions as well as pollution and industrial waste.

6. Using emerging technologies to ensure reliable and predictable supply chains

It is the last supply chain strategy on our list; most companies are currently facing a problem with unexpected shifts in demand, and therefore need a buffer.

But it may raise costs, but by improving order accuracy, new technology will help reduce inventory requirements and increase the speed of reaction time.

This will eventually lead to a more reliable and faster supply network, thus making the right decisions, manufacturing products, and delivering them in the right way and at the right time,  sell products online and this will ensure cost reduction and business speed while clearly simplifying supply chains.

What is the strategic importance of Supply Chain Management?

Supply chains are now more complex than ever before, as emphasized by market dynamics, as different institutions and companies need to respond to the changes in the external world based on demand.

But there are many new events and variables on the scene that companies and organizations must pay special attention to, as they must try to adopt new strategies for sourcing.

There is strategic importance to supply chain management, as it effectively simplifies the entire process dramatically, from product flow to unexpected events.

By managing the supply chain effectively, companies will be able to diagnose problems and deal with disruptions more efficiently.

Supply chain management also has a significant impact on business, as it helps in improving customer service by delivering the right product at the right time and location, thus affecting the company’s bottom line, making companies take care of supply chain management.

It directly improves business efficiency, from factories and warehouses to vehicles and transportation operations, thereby increasing cash flow.

How Do You Develop a Supply Chain Strategy?

Supply chain strategy effectively helps you achieve your company goals faster and more effectively, and although creating and developing a supply chain management strategy is often difficult and complex, it is worth it and trying, and here are the most important steps that can help you develop Easily your supply chain strategy:

• Understand how each of your supply chain strategy relates to your business plans, as supply chain and supply chain management are the two main components that deal with your business plan, shipping and tracking products.
• Analyze your current supply chain as well as your supply chain management strategy, so you can see what problem exists and how to deal with it and make adjustments.
• Work closely with your business team as well as external suppliers, which will help you increase the flow of information and exchange between strategy planners, third-party vendors and the main company more effectively, and all of this will reflect positively on your business.
• Choose the right and appropriate solutions, which will facilitate your work greatly and effectively, and there are a lot of supply chain management solutions, on top of which are inventory management solutions, warehouse automation solutions, and others.

Thus achieving a significant improvement in the flow of goods in and out of your warehouses.

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