Transport My Shipment Cheap? Sure! But What Do I Consider First?

Transport My Shipment Cheap Sure! But What Do I Consider First

A couple of months ago, I met an old acquaintance of mine, Serge Meyer, right in the middle of Notre Dame Cathedral in Paris. Serge Meyer used to be the Marketing Director at Guinness PLC. He currently runs the manufacturing of industrial blades at a facility located in Montreal, Canada, which supplies its products to many of the most prestigious family-owned lumberjack firms located in Central Canada. The plant procures the materials it requires to create the more advanced blades for more precise cutting. The components weigh between 4 to 28 pounds. According to Meyer, the amount he purchases annually is approximately 7,000 units of these components.

Meyer’s primary supplier of component blades comes from Bell Metals Canada Inc., which is located in Vancouver. Bell Metals is known for its reputation for high-quality items and has been a reliable partner of Meyer’s since its beginning.

It is believed that the Procurement Manager of Meyer’s company believes that the next 12 months’ order at Bell Metals will be roughly 6000 units, with some weight, averaging 15 pounds. The factory will also need monthly deliveries in the same amount. Given that it’s challenging to determine what the specific requirements of customers would be until a few days before the units will be utilized to manufacture, Meyer’s business is able to notify Bell Metals of its size specifications approximately seven weeks prior to the time that the units will be used by Meyer’s business in Montreal. It usually requires Bell Metals about two weeks to build the units and get them packed and ready for shipment.

Meyer has told me that he struggles to keep his company in business and recently realized that the savings on transportation are not only to gross profit; however, they also contribute to net profit. Therefore, as he was aware that I had a deep knowledge of Commercial Logistics, he pinned me for a drink in the Bar d’Ivoire, which is just in the middle of Place of the Republique. While we were drinking the bar, he demanded that I give him a few suggestions regarding the most important factors to consider in determining the best method of transportation to transport blade components provided through Bell Metals from Vancouver to the factory in Montreal.

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My response to Meyer on the aspects to take into account when choosing the most efficient method of transport to transport the blade components provided through Bell Metals (Vancouver) was relatively concise. It was:

1. Type of product

I’d like to remember that the products to be shipped are small blades that aren’t dangerous or hazardous.

2. Quantity/Total Weight Size Packaging

It is also worth noting that I will receive monthly deliveries of around 500 blade units, with an estimated monthly weight of 7,500lbs (500 15lbs) which is less than two pallets.

3. Packaging

Given that my monthly shipments, which will weigh around 7,500 pounds (about 3.8 tonnes) which is small shipment rather than a full-sized load on rail, sea, or the road, I will make sure all packaging used for every shipment is designed to take into account how the package will be handled by being loaded, loaded and then reloaded at least a couple of times on every journey.

4. Distance to Customer/Plant Place

It is important to remember that my manufacturing facility is in Montreal (Central Canada); however, Bell Metals is located in Vancouver (West Coast). This means I have a variety of options for transportation of the blades to Montreal. My options are:

* Road The Trans-Canada Highway that links all ten provinces

* Rail The CN & CP railways that connect many cities across Canada such as Vancouver and Montreal

* Air: over the Vancouver to Montreal international airway

5. Service Level/Business Relationship Speed

I’ll think about the fact that I’ll most likely only have five weeks to deliver the components of the blade as Bell Metals will be informed seven weeks in advance of the date of delivery and will require two weeks to create and make the components ready for shipment. Five weeks would be enough to cover all my options to ship the blade parts between Vancouver from Vancouver to Montreal without disrupting the business relationship or contract of service in place with Bell Metals; I shall think about other aspects other in addition to speed when deciding on my preferred method of shipping method.

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6. Costs and Safety

I will consider the implications of cost for each option that is available to me in the case of the delivery of the package, based on the type size, weight, and quantity, focusing on the three choices above. I’ll then pick the option which is the least expensive and safe for the blade component. After that, I will look for the most competitive business to offer the service I need. If I do find a service, I will investigate the possibility of signing a contract for shipping with a single company to cover the annual weight of 90000 lbs (6,000 15lbs) that I plan to transport from Vancouver all year long so that I can get an affordable transportation cost.

Conclusion

The most flexible means of transport since it offers door-to-door services. Transporting the blade components packaged between Vancouver up to Montreal in quantities less than 7,500lbs or two pallets per month is a competitive door-to-door delivery service. Therefore, a lower truckload option ought to be considered to transport the entire annual amount between Vancouver towards Montreal. This could result in considerable reductions in costs for Meyer’s manufacturing that can be added to the financials of the factory as net savings and, consequently, Net Profit.

Adolf Onwuka Nanyell is a Canada Institute of Transport and Traffic trained Business Logistics expert. He has the MBA in Business Administration from the University of North Alabama Business School and has worked for a number of years as the Commercial manager (Sales as well Logistics) for a variety of multinational companies that include: Cimrep International Logistics, PZ Cussons, Nosak Distilleries, Visa International and Air France. He is bilingual and can speak equally French and English proficiently. He was one of the three bilingual Africans chosen and supported by the French government France to receive professional management classes in the MCM, Paris as invitees from the government, following which he was hired directly in the company of Air France and further retrained for a few months at Vilgenis, Paris (France).

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