Amazon Supply Chain Services vs Canadian 3PLs: Which Is Right for Your Business?
Amazon Supply Chain Services and Canadian third-party logistics providers can both store inventory and fulfil customer orders, but they are designed for different operational priorities. Amazon can be a strong choice for businesses focused on marketplace sales, standardized ecommerce fulfilment and access to a large delivery network. A Canadian 3PL may offer greater flexibility for retail compliance, customized packaging, B2B distribution, inventory control and direct operational support. The right choice is not simply the provider with the largest network. It is the provider that fits your sales channels, products, customers and growth strategy. For many Canadian brands, the decision comes down to one question: do you need a standardized fulfilment system, or a logistics partner that can adapt its operations around your business? What Are Amazon Supply Chain Services? Amazon Supply Chain Services brings together several logistics capabilities that can support inbound transportation, inventory storage, distribution, order fulfilment and parcel delivery. Depending on the program and eligibility, businesses may use services such as Fulfilment by Amazon, Amazon Warehousing and Distribution or Multi-Channel Fulfilment. Fulfilment by Amazon is primarily built to support orders placed through the Amazon marketplace. Sellers send inventory into Amazon’s network, and Amazon handles storage, picking, packing, shipping and certain customer-service activities. Multi-Channel Fulfilment extends parts of that network beyond Amazon orders. It allows qualifying businesses to fulfil orders from their own ecommerce websites and other sales channels using inventory stored within Amazon’s network. This model can be attractive for brands that want fast deployment, established processes and fewer day-to-day warehouse responsibilities. However, businesses still need to review service eligibility, storage rules, preparation requirements, product restrictions and fee structures carefully. What Does a Canadian 3PL Provide? A Canadian 3PL manages logistics activities on behalf of a business. Services may include warehousing, inventory management, ecommerce fulfilment, retail distribution, transportation coordination, returns, kitting and custom packaging. The difference is often in how those services are delivered. Rather than placing every customer into one highly standardized workflow, a flexible 3PL can design processes around the brand’s products, retailers, order profiles and operational requirements. For example, a company selling through Shopify, Canadian retail chains, distributors and subscription programs may need several fulfilment workflows under one roof. It may require case picking for wholesale orders, individual-unit picking for ecommerce, retailer-specific labels, promotional bundles and lot or expiry tracking. A provider offering integrated warehousing and distribution services can coordinate those activities while maintaining a clearer connection between inventory storage, order preparation and outbound transportation. Amazon Supply Chain Services vs Canadian 3PLs Comparison Area Amazon Supply Chain Services Canadian 3PL Primary strength Standardized ecommerce and marketplace fulfilment Flexible, multi-channel logistics support Amazon marketplace integration Strong Varies by provider and integration Retail compliance May not be designed around every retailer’s requirements Can support retailer-specific preparation and documentation Custom packaging Usually more standardized Can support kitting, relabelling and promotional packaging Operational communication Platform- and program-driven May provide direct account and operations support Inventory flexibility Governed by program rules and network requirements Can be adapted around the customer’s inventory model B2B and retail distribution Available capabilities depend on the program Often designed to support wholesale and retail orders Returns handling Standardized processes Can create product-specific inspection and disposition rules When Amazon May Be the Better Fit Amazon may be suitable when most of your revenue comes from the Amazon marketplace and your products fit comfortably within its fulfilment requirements. The network can reduce the need to build an internal fulfilment operation, while established technology helps automate common order-management tasks. It may also work well for straightforward ecommerce products with predictable dimensions, simple packaging needs and limited retail-compliance requirements. Amazon can be especially useful when: Your main sales channel is Amazon. Prime eligibility is commercially important. Your products follow standard storage and handling requirements. You prefer a technology-led, standardized fulfilment process. You do not require frequent custom packaging or product assembly. However, businesses should model the complete cost rather than looking at one fulfilment fee. Storage duration, inventory movement, preparation, returns and seasonal volume can all influence the final cost per order. When a Canadian 3PL May Be the Better Fit A Canadian 3PL may be more appropriate when your supply chain extends beyond a single marketplace. This is particularly relevant for brands serving national retailers, independent stores, distributors, ecommerce customers and promotional programs at the same time. A flexible provider can build different workflows for different channels. Ecommerce orders may move through a dedicated ecommerce order fulfilment process, while wholesale cases are prepared according to retailer routing guides and delivery appointments. A Canadian 3PL may be the stronger choice when: You sell through several ecommerce and retail channels. Your retailers have strict labelling, packaging or routing requirements. Your products need lot, batch or expiry-date control. You require kitting, bundles, displays or promotional packaging. You want direct communication with an operations team. You need customized reporting or system integrations. Your return process requires inspection, grading or repackaging. Canadian retailers can impose precise shipping and preparation standards. Missed appointments, incorrect labels, damaged cartons or inaccurate documentation may lead to delays and chargebacks. A provider with dedicated retail compliance preparation can help address these requirements before an order leaves the warehouse. Inventory Visibility and Operational Control Inventory visibility should be a major part of the decision. A business needs to know what is available, where it is located, which orders have been allocated and whether stock is approaching a replenishment threshold. Amazon provides inventory tools within its ecosystem, but brands operating across multiple marketplaces, retailers and warehouses may need a broader view. A 3PL with real-time inventory visibility can provide a centralized operational picture across receiving, storage, order processing and shipping activities. This becomes increasingly important as the business grows. Without reliable visibility, teams may over-order inventory, promise unavailable products or move stock between facilities unnecessarily. The issue is explored further in this guide to omnichannel fulfilment and inventory visibility. Customization, Packaging and Brand Experience Fulfilment is not only about moving a box from a warehouse to a customer. For
Understanding the Economics of 3PL Warehousing
Navigating Carrier Costs and 3PL Surcharges can be a major headache for how 3PL warehousing operators, not only inflating costs but also introducing unpredictability into budget forecasts. With shipping rates constantly fluctuating, accurately predicting expenses becomes a complex challenge. To safeguard profitability, how 3PL warehouses such as MacMillan use effective strategies for managing these costs. Fortunately, there are several tactics available to help contain expenses and preserve margins. Base Rate vs. Accessorial Charges Determining the true cost of shipping involves more than just looking at base rates. While base rates provide a foundational cost, they don’t encompass the full picture. Accessorial charges, additional fees for specialized services like lift gates or residential delivery, can quickly accumulate. Understanding these charges is crucial for managing outbound shipping costs effectively. What is a Base Rate? A base rate is the fundamental cost of moving goods from one location to another, usually negotiated between you and the carrier. Unlike base rates, accessorial charges are extra fees for additional services that aren’t part of the basic delivery. While base rates are generally fixed according to contract terms, accessorial fees can vary based on specific service needs. Choosing the Optimal Base Rate Selecting the best base rate involves evaluating various factors beyond just the quoted rate. Although base rates across carriers might seem similar, differences in package specifications such as size, weight, and distance can impact the overall cost. Additionally, accessorial charges and other fees can significantly affect the final expense. Tools like MacMillan’s rate shopping feature can help compare base rates in real-time, how 3pl warehouses use for ensuring you secure the most cost-effective shipping option for each order. Understanding Accessorial Charges Accessorial charges are additional fees imposed by carriers for services beyond the standard delivery. These can include costs for loading, unloading, packing, or delays. Recently, these surcharges have become more prevalent as carriers seek to enhance revenue streams. A recent survey indicates that more than 75% of carriers view these fees as essential to their financial stability. Being informed about these charges will help you develop effective shipping strategies and negotiate better rates with carriers. Impact of General Rate Increases (GRI) on Base Rates General Rate Increases (GRI) are an inevitable aspect of the shipping industry, influenced by rising costs in fuel, insurance, wages, and other operational expenses. Carriers often pass these increased costs onto shippers through adjusted rates. Typically announced in October or November, GRIs can lead to noticeable hikes in base rates. For instance, recent GRIs for major carriers include: UPS: 6.9% increase, effective December 27, 2022 FedEx: 6.7% increase, effective January 2, 2023 USPS: 5.5% increase, effective January 22, 2023 These increments, though seemingly modest at 4-6%, can significantly raise the base rates that 3PLs pay, impacting overall costs. Key Insights and Strategies for mastering shipping costs As the logistics landscape becomes increasingly intricate, managing how 3pl warehousing implement accessorial charges and other fees can be challenging. These supplementary costs can significantly impact a 3PL’s bottom line, but they also present an opportunity for negotiation. The key to negotiating effectively lies in understanding these surcharges and their impact on your total shipping volume. Leverage Detailed Fee Knowledge To negotiate better terms, it’s essential to understand the percentage of accessorial charges relative to your overall shipping volume. Armed with this knowledge, you can present a well-informed case for adjustments. MacMillan offers regular audits of your shipping bills to identify and dispute errors or overcharges can lead to cost recovery and increased carrier accountability. Estimating Your Shipping Costs Our Invoice Analysis tool offers a detailed breakdown of your UPS expenses. By importing your data and using our template, you can swiftly pinpoint where your money is being spent. This tool presents charges in a clear, organized format, highlighting the most impactful fees on your bottom line. Say goodbye to hidden fees and make informed decisions by checking out the link above. Prevalence of Industry Standards Many shippers 67% believe they are paying standard industry rates. However, understanding specific surcharges imposed by carriers can help you manage and reduce costs effectively. Common Carrier Surcharges Carriers impose various surcharges to manage operational costs and handle exceptions. While automation has streamlined many processes, certain scenarios still require manual intervention, leading to additional charges. Understanding how 3pl warehousing uses these common surcharges to help you take proactive measures to minimize expenses: USPS Shipping Surcharges: Non-Machinable Surcharge: Applied to packages requiring manual sorting. Fuel Surcharge: Adjusted based on fluctuations in fuel costs, calculated as a percentage of the shipping fee. FedEx Shipping Surcharges: International Fuel Surcharges: Fluctuate weekly based on jet fuel prices. Delivery/Pick-Up Surcharge: Additional fee for deliveries or pick-ups in remote areas. Handling Surcharge: Applied to packages exceeding 48 x 29 inches. Oversize Charge: For packages longer than 96 inches or with a combined length and width of over 129 inches. UPS Shipping Surcharges: Fuel Surcharge: Based on jet fuel prices from Canada. Address Correction: Charged to the shipper for incorrect addresses. Over Maximum Limits Fee: Applied to packages over 154 pounds or 108 inches in length. Optimize Shipping with MacMillan WMS MacMillan WMS offers live rate shopping to help you select the most cost-effective carrier for each shipment. By comparing rates, transit times, service levels, and surcharges, you can make smarter shipping decisions and reduce costs. Analyzing how 3PL warehousing optimizes real-time rate access ensures you always choose the best option for your needs. Additional Surcharges to Consider DIM Weight: Carriers use dimensional weight to calculate shipping costs based on package size. Lightweight items in large boxes can lead to higher charges. Seasonal Peak or Demand Surcharge: Added during peak seasons fluctuations or high-demand periods to cover increased operational costs. These surcharges can affect both incoming inventory and outbound shipments. Accurate demand planning such as MacMillan can mitigate these costs by forecasting product needs and optimizing distribution strategies. By anticipating peak season demands and ordering inventory ahead of time, you can minimize extra charges and reduce transit times, fuel costs, and other transportation expenses. Understanding these elements and implementing strategic planning can lead to significant savings and improved shipping
How to avoid Canadian Warehousing Congestion with MacMillan
Navigating a crowded space is challenging, and this holds true for a cluttered Canadian 3PL warehousing where inventory management becomes a struggle. For a 3PL Warehouse, congestion can cause inefficiencies, safety issues, and fulfillment mistakes. To ensure a safe and efficient operation, it’s crucial to prevent warehouse congestion. This article explores the causes of Canadian 3pl warehouse congestion, its impact on brands, and strategies for effective warehouse and inventory planning to reduce it. What is Canadian 3PL Warehousing Congestion-2024? Warehouse congestion occurs when overcrowding, clutter, or excessive traffic obstructs movement and disrupts normal warehousing operations. When navigating a congested warehouse becomes difficult, it impacts workers’ efficiency and can lead to: Disruption in inventory flow Increased confusion and frustration among staff Elevated safety risks Delays in fulfilling customer orders Common Causes of a 3PL Warehousing Congestion in Canada Several factors can lead to a Canadian 3PL warehouse congestion, particularly for e-commerce brands. Here are some frequent causes: Insufficient Storage Space: Overcrowding often arises when a warehouse cannot accommodate the volume of inventory needed. Whether due to an undersized facility or excess stock, exceeding storage capacity typically results in congestion. However, MacMillan SCG offers real-time inventory management which provides tracking and visibility. Poor Layout Design: Ineffective warehouse layouts that hinder movement or create inefficiencies can contribute to congestion. For instance, narrow aisles that restrict equipment movement force workers to navigate around obstacles, slowing down operations. Inefficient Processes and Technology: Outdated procedures and technology can exacerbate congestion. For example, requiring pickers to handle one order at a time and deliver it to a packing station before starting another can limit productivity. Additionally, unreliable or complex technology that is difficult to use or train on can further impede efficiency and increase congestion. MacMillan SCG uses the latest tech-based solutions including RIFD’s and WMS integrated to your systems with trackable inventory for scalable solutions. What is the Impact on Businesses and the Logistics Market? Warehouse congestion goes beyond being a mere inconvenience, it can be detrimental to business operations. Here are some key ways it affects e-commerce: Delayed Shipments: Congestion hampers workers’ efficiency, leading to slower order picking and packing. This results in delayed shipments and dissatisfied customers. Customer Dissatisfaction: Delays, fulfillment errors, and inventory damage caused by overcrowded spaces can significantly impact customer satisfaction. These issues may lead to negative feedback and lost sales. Amazon prime with their FBA program provides customer satisfaction through high-end deliveries with zero error rates. Increased Costs: Inefficiencies in a congested Canadian 3pl Warehouse led to longer task completion times, raising labor costs and overhead expenses. Additionally, managing inventory becomes more challenging, often resulting in inaccuracies that can cause costly stock outs and overstock situations. Strategies for Managing a 3PL Warehouse Congestion To tackle a Canadian 3PL warehouse congestion in today’s logistics market effectively, it’s crucial to implement strategies that enhance both layout and processes. Here’s how you can manage and reduce congestion in your warehouse: Optimize Layout and Design: Efficient warehousing begins with a well-thought-out layout. Analyze your internal workflows and configure your storage and workstations to minimize travel distances and create clear pathways for both workers and equipment. Consider employing a slotting strategy that aligns with your business needs. Organize inventory by size, weight, or other relevant criteria, or use dynamic slotting for high-turnover products. Enhance space utilization with advanced storage solutions like vertical carousels, which capitalize on vertical space. Implement Efficient Processes: Streamlining operations can significantly reduce congestion. Focus on: Leverage Technology: Advanced technology is key to alleviating a Canadian 3PL Warehouse congestion. Utilize inventory management software to track stock levels and analyze historical sales data. This helps in accurate demand forecasting, preventing overstocking and maintaining optimal inventory levels. By optimizing layout, refining processes, and harnessing technology, you can effectively manage and reduce warehouse congestion, leading to smoother operations and better overall efficiency. Leveraging Technology to Combat Warehouse Congestion in Canada Technological tools such as RFID tags and barcode scanners are essential for effective inventory management. Scanning SKU barcodes and storage location tags during picking and packing helps update stock counts in real-time, keeping your inventory and storage well-organized. Warehouse management systems are crucial for mitigating warehouse congestion. A robust WMS enhances visibility and control over warehouse operations. For example, MacMillan SCG WMS offers several key benefits: Track Staff Productivity: Monitor employee performance to ensure efficiency. Location-Specific Inventory Visibility: Gain detailed insights into inventory levels across different areas. Intelligent Cycle Counts: Access accurate order fulfillment metrics and cycle counts across all warehouses. Flexible Picking Methods: Utilize various picking strategies, including batch, auto-cluster, custom cluster, and single-order picking, to optimize workflow. Reduced Packing Errors: Use visual, step-by-step packing guides to minimize mistakes. E-commerce Integration: Seamlessly connect with major e-commerce platforms and tools to streamline omnichannel fulfillment. These features enable you to identify and address inefficiencies proactively, preventing them from escalating into significant congestion issues. Key Takeaways Addressing congestion in Canadian 3PL warehouses is essential for maintaining operational efficiency, safety, and customer satisfaction. Overcrowded spaces not only impede workflow but also increase the risk of errors and safety hazards, which can lead to delayed shipments and elevated costs. By implementing effective strategies such as optimizing warehouse layouts, streamlining processes, and leveraging advanced technology, businesses can significantly reduce congestion. Solutions like real-time inventory management, efficient picking methods, and robust warehouse management systems play a critical role in enhancing operational efficiency and mitigating the adverse impacts of congestion. As the logistics landscape continues to evolve, proactive management of warehouse congestion will be key to ensuring seamless operations and sustaining customer trust in an increasingly competitive market.
Unlocking Outsourced Fulfillment: Key Advantages and Obstacles
Outsourced fulfillment involves hiring a third-party logistics provider to manage inventory, order processing, packaging, and shipping, allowing businesses to focus on their core activities. This approach streamlines the supply chain and supports scalability, particularly beneficial for small and medium-sized businesses facing demand spikes. Partnering with a 3PL offers several advantages, including access to specialized expertise, advanced technology, and established supply chain relationships, all contributing to cost savings and improved customer service. Businesses can customize fulfillment services to their needs, reducing investment in infrastructure and technology. Overall, outsourced fulfillment helps companies optimize logistics, cut costs, and concentrate on growth and customer satisfaction. What are the components of outsourced fulfillment? Outsourced fulfillment involves several key components that ensure efficient order processing: Inventory Management: A 3PL such as MacMillan SCG tracks and manages inventory levels using advanced systems to prevent stock outs and ensure timely replenishment. Order Processing: The 3PL handles order confirmation, verification, and allocation through automated systems integrated with eCommerce platforms, ensuring fulfillment with accuracy and efficiency. Packaging: Proper packaging is crucial for product protection and a positive customer experience. MacMillan SCG uses industry-standard materials and may offer custom packaging options. Shipping: Leveraging their network, 3PLs select optimal shipping methods and carriers, negotiate rates, and offer various delivery options to ensure timely and safe delivery. Returns Management: The 3PL manages the entire returns process, including authorization, inspection, restocking, and refunds or exchanges, streamlining operations and enhancing customer satisfaction. Customer Service: MacMillan’s dedicated customer service teams handles inquiries, provide updates, and resolve issues, ensuring a smooth customer experience from order to delivery. Outsourcing fulfillment to a skilled 3PL allows businesses to focus on their core functions while benefiting from expert management of these crucial components, leading to improved efficiency and customer satisfaction. Outsourcing fulfillment to a 3PL offers several key advantages Expertise and Resources: MacMillan SCG provide specialized knowledge and access to advanced technology, streamlining inventory management, order processing, and shipping. Cost Savings: By outsourcing, you avoid investing in warehouses, technology, and a dedicated team. This reduces infrastructure costs and operational expenses. Scalability: 3PLs can easily adjust to fluctuating order volumes during peak times, handling increased demand without needing additional resources or infrastructure. Focus on Core Competencies: Outsourcing allows you to concentrate on strategic activities like product development and marketing, leaving logistics to the professionals. What are the considerations to follow in outsourced fulfillment? While outsourcing fulfillment offers many advantages, businesses should be mindful of potential challenges. One key concern is the loss of direct control over fulfillment processes, making it crucial to select a reliable and transparent 3PL. Data security is another significant consideration; sharing sensitive customer and inventory information requires partnering with a 3PL that implements robust security measures. Additionally, effective communication and coordination are essential for successful outsourcing, necessitating regular updates and clear communication channels to ensure smooth operations. Factors to consider when choosing a fulfillment partner When choosing between in-house fulfillment and outsourcing to a 3PL, several key factors should be evaluated: Order Volume: Large order volumes might necessitate advanced technology and infrastructure, which can be more cost-effective through a 3PL provider such as MacMillan for reliability. Product Characteristics: Products that are fragile or perishable often require specialized handling and packaging. A 3PL can offer the expertise needed for these specific requirements. Market Reach: For businesses with a broad geographic footprint or diverse customer base such as Amazon, partnering with a 3PL can enhance fulfillment efficiency and improve delivery across various locations. Ways to successfully outsource a fulfillment partner For a successful outsourcing experience, businesses should adhere to the following best practices: Thorough Research and Due Diligence: Carefully evaluate potential 3PL providers by assessing their experience, reputation, and client feedback. Clear Communication of Expectations: Define your business needs and performance criteria with the 3PL. Set clear key performance indicators (KPIs) and implement regular reporting to track progress. Transparency and Collaboration: Build a transparent and cooperative relationship with the 3PL. Regularly review performance metrics, promptly address any issues, and ensure continuous, open communication. Key Takeaways Outsourced fulfillment offers significant advantages, including specialized expertise, cost savings, scalability, and the ability to concentrate on core business activities. However, businesses must also address potential challenges, such as diminished control, data security concerns, and the need for effective communication. When deciding between in-house fulfillment and outsourcing, it’s important to consider factors like order volume, product specifics, and market reach. Adhering to best practices, such as conducting comprehensive research, setting clear expectations, and maintaining transparency, will help businesses effectively manage their outsourced fulfillment operations and enhance their overall logistics efficiency.
Warehouse Audits: A Guide for 3PL Warehouse Technologies and processes
For 3PL providers, warehouse managers, and COOs overseeing warehouse operation, mastering the art of auditing warehouse technologies and processes is crucial. A well-executed audit highlights areas needing improvement, enhances inventory accuracy, and boosts overall efficiency. MacMillan SCG offers zero error rate and complete sustainability in todays Canadian logistics market. By scrutinizing current warehouse operation and practices, you can pinpoint internal process gaps and explore technological solutions to optimize order fulfillment activities. Let’s delve into what you need to consider for a successful warehouse audit and apply best practices to elevate your warehouse operations. What Is a Warehouse Operation Audit? A warehouse audit is a thorough evaluation of your warehouse’s technology and processes. It systematically reviews operations to identify areas for improvement and optimization. This audit assesses the effectiveness of your warehouse processes, the efficiency of technology systems, and the accuracy of inventory management. How to Conduct a Warehouse Operation Audit? Auditing warehouse operations involves a structured approach. Here’s a step-by-step guide to help you through the process: Create a Warehouse Audit Checklist Develop a comprehensive checklist covering all warehouse operations. This should include areas such as receiving and put-away, order picking, packing and shipping, inventory management, and technology systems. MacMillan offers zero error rate while auditing checklist will serve as a roadmap, ensuring all critical aspects are examined. Evaluate Warehouse Layout and Design The layout and design of your warehouse significantly impact operational efficiency. Assess factors like aisle width, storage density, and the flow of goods to ensure the layout supports your operational needs. Review Receiving and Put-Away Processes Efficient receiving and put-away are vital for smooth warehouse operations. Ensure that incoming shipments are thoroughly inspected and stored correctly. Regular audits of these processes help maintain their efficiency and effectiveness. Analyze Order Picking Processes Order picking is a cornerstone of warehouse operations. Review your picking processes to ensure they are optimized for speed and accuracy. Assess whether the right technology is in place to support efficient picking like Amazon does. Assess Packing and Shipping Processes Evaluate packing and shipping to ensure these processes are streamlined and error-free. Verify that packers use appropriate materials and follow correct procedures throughout. Review Inventory Management Confirm that your inventory tracking systems are current and that staff are effectively managing stock levels. Accurate inventory management is crucial for operational success. Evaluate Warehouse Technology Systems With the increasing complexity of warehouse operations, ensure your technology systems are functioning correctly and fully integrated with your processes. Update and optimize technology systems as needed to meet your warehouse operation requirements. Step-by-Step Warehouse Audit Procedures When planning your warehouse audit, follow these general guidelines for a thorough and effective evaluation: Define the Scope of the Audit: Clearly outline what aspects of your warehouse operations will be audited. This focus allows for a targeted approach, ensuring all critical areas are reviewed. Assign Responsibilities: Designate individuals to lead, conduct, and implement changes based on the audit findings. Clear roles and responsibilities will facilitate a smoother audit process. Conduct the Audit: During the audit, document observations and concerns meticulously. Follow your checklist to ensure comprehensive coverage of all relevant areas. Analyze the Results: Use your checklist and notes to analyze the audit findings. Involve key stakeholders in identifying areas for improvement and opportunities for optimization. Develop an Action Plan: Based on your analysis, create an action plan to address identified issues. Ensure your plan is specific, measurable, achievable, relevant, and time-bound. Implement Changes: Execute the changes outlined in your action plan and monitor their effectiveness. Communicate changes to your team and provide training if necessary. How to Position Your Warehouse for Success? Regularly auditing your warehouse operations technologies and processes helps maintain operational efficiency and accuracy. It also provides an opportunity to identify and resolve issues proactively. To successfully conduct a warehouse operation audit, define the audit scope, assign responsibilities, conduct the audit, analyze results, develop an action plan, and implement necessary changes. Leveraging a robust warehouse management system, like MacMillan SCG, can streamline tasks and reduce errors, enhancing your audit outcomes. Key Takeaways In conclusion, effectively auditing your warehouse’s technology and processes is essential for optimizing operations, enhancing inventory accuracy, and boosting overall efficiency. By systematically reviewing each aspect of your warehouse, from layout and design to technology systems and inventory management, you can identify areas for improvement and implement necessary changes. Adopting a structured approach, including defining the audit scope, assigning responsibilities, and developing a detailed action plan, will help you address inefficiencies and streamline your operations. Utilizing advanced warehouse management systems, such as MacMillan, can further enhance your audit process, providing greater control and reducing errors. Regular audits not only ensure operational success but also position your warehouse for continued growth and efficiency.
Mastering Warehouse Monitoring in 2026: Systems, Trends, and Techniques
Ecommerce warehouses and logistics company’s Toronto are bustling hubs of activity. From managing daily tasks such as inventory receipt and order fulfillment to more intricate processes like cross-docking and inventory audits, keeping track of every detail can be challenging. Yet, for effective warehouse management, having accurate and real-time information on your warehousing operations is crucial. This is where warehouse monitoring in today’s age for logistics company’s Toronto becomes indispensable. With comprehensive visibility and up-to-date insights into your warehouse processes, you can significantly enhance operational efficiency. In this article, we’ll explore what warehouse monitoring entails, the advantages of a high-quality monitoring system, and the key features to consider when choosing a warehouse monitoring solution for logistics company’s Toronto. What is Warehouse Monitoring? Warehouse monitoring involves the observation, measurement, and tracking of conditions, materials, and activities within a warehouse. This practice typically employs advanced warehousing technologies, such as surveillance cameras, sensors, and IoT devices, to gather, process, and analyze data, enabling workers to make informed decisions based on real-time insights for any logistics company’s Toronto. Brands utilize warehouse monitoring systems to oversee various aspects, including: Assets Inventory Environment Energy Problems How Tech-based warehousing is Transforming Monitoring- 2024? As warehouse operations become increasingly complex, so too does the technology designed to monitor them. Gone are the days when workers spent hours manually recording data and conditions. Today, for logistics company’s Toronto, technology automates many monitoring tasks, providing deeper insights and greater efficiency. Key Components of a Warehouse Monitoring System used by MacMillan Several cutting-edge technologies are enhancing warehouse monitoring. Here are some of the most effective tools used: IoT Devices: MacMillan SCG uses The Internet of Things (IoT) network connects various devices and objects, enabling them to communicate and exchange data. IoT devices include RFID tags, sensors, and other tools that monitor inventory, warehouse locations, storage conditions, and handling processes. RFID Tags: Radio Frequency Identification (RFID) tags are scannable labels that use radio waves to identify objects. These tags allow workers to track items at different stages of the warehouse workflow. The scanned information is automatically transmitted to the warehouse management system(WMS), providing real-time visibility into inventory location and status, proven to be sustainable for any logistics company Toronto. Sensors: Wireless sensors strategically placed throughout the warehouse enable remote tracking of various elements and activities, eliminating the need for constant physical presence. LTH Sensors: Light, temperature, and humidity (LTH) sensors are crucial for maintaining optimal storage conditions. This is particularly important in cold storage warehouses, where even minor deviations in temperature can lead to spoilage. MacMillan provides customers with real-time visibility and responsiveness reducing error rates to be 0.1 percent. Additional Sensors: Certain sensors can detect smoke, providing immediate alerts in case of a fire. Others monitor movement in different areas of the warehouse, and some track air quality, which may be essential in certain industries. Alarm Systems: In large warehouses, detecting issues can be challenging, increasing the risk of damage and theft. Alarm systems are vital for prompt notifications about problems that need attention. These systems can alert you to temperature changes, unusual movements, glass breaks, and other potential issues. Surveillance Cameras: Video surveillance is a key component of warehouse monitoring for any logistics company Toronto. High-definition IP cameras offer detailed video monitoring, while advanced cameras with capabilities like heat detection and text reading provide enhanced surveillance. AI-powered smart surveillance systems further streamline the process by checking inventory availability, tracking misplaced shipments, and more. Centralized Communication Systems: Effective warehouse management relies on seamless communication across departments and locations. MacMillan SCG offers Centralized communication systems, such as wireless or wired intercoms, are essential for efficient interactions without requiring physical travel across the warehouse with geographical presence within the GTA region and 80% of the western regions throughout Canada. Centralized Software Solutions: To integrate data from various systems into a unified view, centralized software solutions are crucial. Warehouse management systems (WMS) and unified IoT platforms consolidate information into a single dashboard, allowing you to monitor stock levels, inventory movement, and order fulfillment processes without switching between multiple platforms. How to Monitor Your Warehouse Operations with MacMillan SCG? A Warehouse Management System (WMS) is crucial for tracking and managing all aspects of warehousing from a single platform. MacMillan offers a comprehensive WMS designed to enhance warehouse monitoring and streamline operations. Advanced Fulfillment Analytics MacMillan’s WMS provides advanced analytics that deliver real-time insights into your warehousing and fulfillment performance for various logistics company’s Toronto. Key metrics include: These analytics enable you to evaluate and optimize warehouse processes, identify inefficiencies, and reduce operating costs. For example, if you observe increased average fulfillment times, you can investigate and refine picking and packing strategies to enhance efficiency. Integration with Existing Systems A unified system for managing warehouse operations is essential for effective monitoring. MacMillan WMS integrates seamlessly with various ecommerce platforms and tools, minimizing the need for multiple platforms and reducing data inaccuracies. Integrations with systems like Amazon for returns management and for sales channel operations ensure that your warehouse monitoring is comprehensive and up-to-date. This cohesive approach allows for accurate inventory tracking and better management of stock levels and orders. Real-Time Inventory Tracking MacMillan’s WMS offers real-time visibility into inventory levels across different SKUs and storage locations. This ensures precise inventory counts, timely updates, and the ability to forecast inventory needs accurately. By monitoring stock levels closely, you can avoid stock outs, manage reordering efficiently, and minimize excess inventory costs. Key Takeaways Ecommerce warehouses and logistics companies in Toronto are dynamic environments where managing daily operations and complex processes can be daunting. Effective warehouse management hinges on accurate, real-time information, making advanced warehouse monitoring essential. By utilizing technologies like IoT devices, RFID tags, and sensors, logistics companies can gain comprehensive visibility into their operations, improving efficiency and responsiveness. This article explores the benefits of top-tier warehouse monitoring systems and their key components, highlighting how cutting-edge tools and centralized software solutions can streamline warehouse management and enhance operational performance in the Toronto logistics sector.
Enhance Your NetSuite Order Fulfillment with MacMillan SCG
For numerous mid-market and enterprise-level brands, Oracle NetSuite serves as a crucial foundation. As the leading ERP system among today’s fastest-growing ecommerce companies, NetSuite provides the essential platform to keep your business running smoothly. Recognizing this, MacMillan has developed integrations designed to enhance logistics efficiency and ensure timely sharing of fulfillment, shipping, and order data through customizable workflows. Our direct integration enables your business to scale effortlessly while integrating MacMillan with NetSuite. In this blog, we’ll delve into the specifics of NetSuite fulfillment and demonstrate how integration can optimize your brand’s operations. What is NetSuite Order Fulfillment? NetSuite order fulfillment encompasses the entire process of picking, packing, and shipping your business’s orders on schedule, all while ensuring visibility within the NetSuite ERP system. This system supports ecommerce retailers by managing essential fulfillment tasks such as picking, packing, shipping, and inventory control. Though these practices are standard in order fulfillment, NetSuite provides unique advantages. Its extensive customization options and deep integration with the ERP system enable seamless coordination across financials, customer relationship management (CRM), and supply chain management. How Does NetSuite Order Fulfillment Work? NetSuite order fulfillment adheres to fundamental order fulfillment principles but adds enhanced capabilities and integrations for improved efficiency. Pick, Pack & Ship: When a customer order is placed and processed within NetSuite, the system generates a pick list to guide 3PL warehouse staff in selecting and retrieving the items. After picking, staff pack the order and prepare it for shipment. NetSuite fulfillment facilitates this by generating packing slips and shipping labels to ensure that items are ready for delivery and reach their destination efficiently. Cross-Subsidiary Fulfillment: NetSuite’s cross-subsidiary fulfillment feature allows companies with multiple subsidiaries to fulfill orders across different entities within a single NetSuite account. This is particularly useful for businesses operating in various geographic regions or countries. Upon receiving an order, NetSuite determines the most suitable subsidiary or location for fulfillment based on factors such as inventory availability, proximity, and shipping costs. Carrier Integration: NetSuite fulfillment supports integration with various shipping carriers, enabling real-time shipment tracking and label printing directly from the NetSuite interface. It supports major carriers like UPS, USPS, FedEx, and DHL. Dropdown Lists: It offers dropdown lists to manage and review information throughout the fulfillment process. These lists allow you to filter packing slips by order status, such as picked, packed, or shipped and view the current status of orders, including pending, in progress, or canceled. Additional dropdown lists are available for shipping methods, integrated carriers, and package types. Fulfillment Requests: A fulfillment request in NetSuite represents a transaction step between the sales order and the fulfillment process. It helps manage orders that need to be shipped to customers or picked up. Depending on the request type, orders can either be shipped to the customer’s address or prepared for pickup at a retail store or designated location. Factors involved for NetSuite integration Order Fulfillment With MacMillan’s integration with NetSuite, you can streamline your order fulfillment process by syncing customer orders and fulfillment data between both platforms. When an order is placed through your website or any direct-to-consumer (DTC) sales channel, MacMillan automatically updates NetSuite with order tracking information and creates corresponding item fulfillment records linked to your sales orders in NetSuite. This integration offers various configuration options, including: Inventory Management The NetSuite and fulfillment integration ensures seamless management of your inventory. You can create and update inventory items and kits in NetSuite, with these changes automatically reflected in MacMillan’s. This integration allows you to manage all your inventory through a single platform. Utilize our inventory quantity workflow to synchronize inventory counts from fulfillment to NetSuite. Whether for specific products or network-wide “True Up” syncs. NetSuite supports various product types, including: Inventory Items: Standard products with tracked inventory levels. Kits: Bundles of multiple products sold together (referred to as “bundles” at MacMillan). Assembly Items: Products manufactured from multiple components, like a desktop computer assembled from OEM parts. Specialized 3PL Warehouse Services Whether you are outsourcing fulfillment to MacMillan or using our warehouse management system (WMS), our solutions optimize your order fulfillment process. Multichannel Support MacMillan delivers top-tier logistics for ecommerce brands of all sizes. Our cutting-edge technology and global fulfillment network enable fast delivery of both DTC and B2B orders. White Glove Delivery In today’s ecommerce landscape, fast and premium delivery is essential. MacMillan partners with major carriers such as UPS, FedEx, USPS, DHL, and other regional providers to offer white glove delivery services. Ensuring swift and high-quality shipping experiences for your customers. Local Distribution Networks With over geographical provision throughout GTA Canada and 80% of the western region, MacMillan provides an extensive network for fast, localized shipping. Our presence in the Canada allows brands to expand internationally with ease. By leveraging our fulfillment centers across various regions, brands benefit from reduced shipping costs and quicker delivery times. NetSuite Integration: Addressing Order Fulfillment Challenges In today’s dynamic ecommerce landscape, brands have diverse and specialized needs. Which is why many choose NetSuite for its tailored operational processes. Whether it’s customizing workflows or integrating specific functionalities, businesses strive to optimize their operations for peak performance. Our semi-customizable integration is perfect for businesses that rely on NetSuite as their central ERP system and want to leverage MacMillan’s fulfillment services while maintaining NetSuite as their primary source of truth. We handle the development and ongoing maintenance of this direct integration, allowing you to focus on what truly matters: growing and managing your business. Key Takeaways For mid-market and enterprise-level brands, Oracle NetSuite is a vital foundation, offering a robust ERP system essential for smooth business operations. Recognizing its importance, MacMillan has developed a tailored NetSuite integration to enhance logistics efficiency and streamline operational processes. This integration seamlessly syncs customer orders and data between NetSuite and MacMillan, allowing for smooth order management and real-time updates. Key features include customizable sync options, inventory management, and comprehensive multichannel support. With MacMillan’s integration, you benefit from efficient accurate inventory tracking, and high-quality delivery services, all while NetSuite remains your central source of truth. We handle the technical aspects of the integration, so you can concentrate on driving your business forward.
How Shipping Automation Transforms Warehouse Operations
In the fiercely competitive world of ecommerce, managing shipping costs has become increasingly crucial. Our latest survey reveals that 67% of US consumers abandon their carts due to high shipping expenses and costly 3pl fulfillment service placing significant pressure on warehouses to process orders swiftly, efficiently, and affordably. The solution? Shipping automation. This game-changing technology can transform your warehouse operations and not only 3pl warehouses near you. By automating routine tasks such as carrier selection, rate comparison, and label generation, MacMillan’s solutions integrate effortlessly. This integration streamlines your fulfillment process, minimizes errors, and enhances customer satisfaction. Why do you need automated shipping? Managing shipping manually is not only time-consuming but also prone to errors. Here’s how automating your shipping with MacMillan and can revolutionize your 3pl fulfillment service Eliminate Manual Tasks: Automate routine activities like carrier selection, rate comparison, and label printing. This allows your team to concentrate on more strategic tasks such as 3pl fulfillment services and customer service. Optimize Shipping Costs: MacMillan’s rate shopping feature ensures you receive the best possible rates for every shipment, while automation reduces errors in shipping weights and dimensions, minimizing extra 3pl billings. Ensure Accuracy: Automated processes eliminate human errors, guaranteeing accurate labels and shipping documents. This reduces the risk of delays and lost packages, speeding up your shipping process and boosting customer satisfaction. Scale with Ease: As your business grows, so do your shipping demands. MacMillan scale with you, maintaining a smooth and efficient 3pl fulfillment service regardless of order volume. Streamline Your 3pl Fulfillment service with Automated Workflows Integrating your business with MacMillan alleviates the burden of manual tasks in your 3pl fulfillment services process. No more time wasted on comparing carrier rates manually, MacMillan automatically selects the most cost-effective option based on shipment details. Generating shipping labels is simplified with a single click directly within your warehouse management system (WMS). Accuracy is enhanced with automated packing slips and commercial invoices, providing precise product details and customs documentation to ensure smooth customs clearance and delivery. Enjoy real-time tracking and visibility: you can monitor shipments live, while your customers receive automatic updates on their order status. Even returns are simplified with automated return labels and tracking, making the process easier for both your customers and warehouse staff. These benefits illustrate the transformative power of automation with MacMillan. By embracing these trends, you can significantly boost 3pl warehouse and 3pl fulfillment services efficiency, reallocate staff to more valuable roles, and enhance the overall fulfillment experience for all involved. How Automated Shipping Accelerates your business Growth? Automated shipping optimizes resources, reduces costs, and enhances your supply chain. You can start small or dive deep, focusing on key areas like: Order Picking and Packing: Reduce walking distances and errors by automating sorting, picking, and packing. Implement a Warehouse Management System (WMS) or invest in robotics like AGVs and AMRs. Inventory Management: Replace manual tracking with an automated system that manages stock levels, alerts you of shortages, and reorders inventory. Automated Shipping Labels: Use software to generate labels based on predefined rules, reducing manual data entry, errors, and saving time. Shipment Tracking: Provide real-time updates to customers to boost satisfaction and transparency, while easing the load on your customer service team. Shipping Documents: Automate the creation of invoices, packing slips, and customs declarations to save time and minimize errors. Insurance: Offer automated shipping insurance options at checkout to protect packages and build customer confidence. Customer Service: Enhance support with chatbots for 24/7 assistance, and use automation for order updates and self-service portals. Embrace automation to streamline operations, reduce errors, and elevate your customer experience. Revolutionize Your Shipping experience with MacMillan Transform your 3pl warehouse operations with the automation capabilities of MacMillan. By integrating these solutions, you’ll achieve unprecedented levels of efficiency and accuracy, overcoming logistics challenges, cutting costs, accelerating shipping times, and error free 3pl fulfilment service in Canada. Ready to enhance your shipping process and optimize fulfillment? Request a quote today to explore how MacMillan’s solutions for 3PLs or brands, combined with integration, can help you achieve your automation objectives. Key Takeaways In today’s competitive ecommerce environment, effective management of shipping costs is essential for success. With 67% of US consumers inclusive of Amazon abandoning their carts due to high shipping expenses, and the growing demands on 3PL fulfillment services, it’s clear that traditional methods are no longer sufficient. Shipping automation offers a powerful solution, transforming warehouse operations by streamlining tasks such as carrier selection, rate comparison, and label generation. MacMillan’s integration of automation technologies can significantly enhance your 3PL fulfillment services, reduce errors, optimize costs, and improve accuracy. By automating these processes, you can not only boost efficiency but also scale seamlessly with your business growth. Embrace the future of shipping with MacMillan and unlock new levels of operational excellence. Request a quote today to discover how our solutions can revolutionize your fulfillment process and drive your business forward.
How AI is Transforming 3PL Warehousing in Canada (2026)
The Canadian logistics industry is undergoing its most significant transformation in decades. Artificial intelligence is no longer a futuristic concept reserved for tech giants — it has become the operational backbone of third-party logistics (3PL) providers across Ontario, British Columbia, and beyond. In 2026, AI is reshaping everything from how inventory is managed to how last-mile deliveries are optimized, giving Canadian brands a smarter, faster, and more cost-effective supply chain. For FMCG brands, e-commerce retailers, and growing businesses that rely on 3PL partners, understanding this shift is no longer optional. It is a strategic imperative. This article breaks down exactly how AI is changing the 3PL warehousing landscape in Canada and what it means for your business. The Scale of Change: Canada’s 3PL Market in 2026 Before diving into the technology, it is worth understanding the scale of this industry. Canada’s third-party logistics market is valued at approximately USD 20.7 billion in 2026, with projections to reach USD 25.59 billion by 2031 — growing at a CAGR of 4.33%. E-commerce alone accounts for over 27% of that market share and is expanding at nearly 6.67% annually. This growth is being driven by three primary forces: the explosion of online retail, rising consumer expectations for faster delivery, and the adoption of AI and automation technologies that allow 3PL providers to do more with less. Large fulfillment operations in Ontario and British Columbia have already reported productivity improvements of up to 30% after implementing AI-driven inventory systems and warehouse robotics. The question for Canadian brands is simple: is your 3PL partner keeping pace? 1. AI-Powered Demand Forecasting: Ending the Stockout Problem One of the most costly challenges in traditional warehousing is the constant struggle between overstocking and running out of inventory. Manual forecasting methods — spreadsheets, historical averages, gut instinct — simply cannot keep up with the speed and complexity of modern supply chains. AI changes this entirely. Machine learning models now analyze historical sales data, seasonal trends, promotional calendars, weather patterns, and even social media activity to produce demand forecasts that are dramatically more accurate than any human method. The result is a more intelligent, responsive inventory management system that keeps your products available when and where customers need them. Studies show that AI-based inventory optimization can reduce stockouts by 25%, improve inventory turnover by 20%, and boost profits by up to 12%. For FMCG brands managing dozens of SKUs across multiple retail channels, that is a transformative improvement. At MacMillan SCG, AI-driven demand models examine past sales, market trends, meteorological conditions, and promotional activities to enable smarter purchasing decisions, reduce excess inventory, and guarantee product availability across all channels. 2. Warehouse Automation and Robotics: Speed Without Sacrifice Traditional warehouse picking required workers to walk miles of aisles every single day. It was time-consuming, error-prone, and difficult to scale during peak periods like Black Friday or holiday seasons. AI-powered robotics have fundamentally changed this reality. Modern 3PL warehouses now deploy Autonomous Mobile Robots (AMRs) that transport goods directly to packing stations, robotic arms that handle sorting, scanning, and stacking, and AI vision systems that achieve 99.9% label-scanning accuracy. These systems do not replace human workers — they extend what human teams can accomplish. The performance numbers are compelling. Where manual picking achieves accuracy rates of 96–98%, automated AI systems push that figure above 99%. Order processing speeds can be up to four times faster than manual methods. And unlike human teams, robotic systems operate around the clock without fatigue, errors, or downtime. For brands managing high-velocity pick, pack, and ship operations, this level of precision and speed is the difference between delighting customers and losing them to a competitor. The rise of Robotics-as-a-Service (RaaS) is also democratizing access to this technology. Rather than requiring large capital investments, mid-market brands can now access enterprise-grade robotic systems through flexible subscription models — making cutting-edge automation available regardless of company size. 3. AI-Driven Warehouse Management Systems (WMS): Total Visibility, Real-Time Control A modern AI-powered Warehouse Management System is the central nervous system of a high-performance 3PL operation. It connects every element of the warehouse — dock sensors, robot telemetry, conveyor systems, order management software, and human teams — into a single, cohesive intelligence layer. The capabilities of today’s AI-native WMS platforms go far beyond simple inventory tracking. These systems provide real-time stock synchronization across multiple facilities, predictive bottleneck detection before delays occur, automated restocking triggers based on live inventory levels, and dynamic task allocation between human staff and robotic systems. MacMillan SCG’s Mantis-powered WMS gives clients complete inventory visibility from anywhere — real-time data on every SKU, every order, and every shipment. This transparency eliminates the uncertainty that typically plagues brand-3PL relationships and allows for confident, data-driven decision-making. Clients can review inventory status, track inbound containers, and monitor fulfillment performance at any time, from any device. In an era where supply chain visibility is a competitive advantage, this level of real-time intelligence is invaluable. 4. Predictive Analytics: From Reactive to Proactive Supply Chains Traditional supply chains were reactive — problems were identified after they happened and then corrected. AI-powered predictive analytics flips this model entirely. Instead of responding to disruptions, intelligent systems anticipate them in advance. By analyzing data from weather patterns, port traffic, carrier performance, and historical shipment data, AI algorithms help logistics planners make proactive decisions before delays materialize. In Canada’s busy logistics corridors — from the Port of Vancouver to the GTA’s dense distribution networks — this predictive capability is especially valuable. For food and beverage brands managing tight expiry windows and FEFO rotation, predictive analytics also plays a critical role in lot, batch, and expiry control. AI systems can flag at-risk inventory automatically, trigger replenishment before stockouts occur, and ensure compliance with retailer shelf-life requirements without manual oversight. Machine learning models also improve predictive maintenance for warehouse equipment — anticipating mechanical failures before they cause downtime, reducing maintenance costs, and maintaining consistent throughput even during peak demand periods. 5. AI in Last-Mile Delivery: Faster, Cheaper, Smarter The final mile
Competitive 3PL Pricing Strategy for Supply Chain Success
n today’s volatile supply chain landscape, competitive pricing isn’t just a marketing tool — it’s a strategic lever. For third-party logistics (3PL) providers, pricing decisions impact not only profit margins but also service quality, scalability, and customer retention. At MacMillan Supply Chain Group, we understand that transparent, data-informed pricing plays a key role in how businesses choose the right 3PL partner. The Role of Competitor Pricing in 3PL Strategy Third-party logistics is no longer a race to the bottom on cost. Companies are now evaluating: Total cost of ownership Speed-to-market capabilities Tech-enabled value (like real-time tracking) Specialized services (such as cold chain or white-glove delivery) While some competitors may lure customers with unsustainably low pricing, this often leads to service compromises or hidden fees. That’s why leading brands prefer pricing models that reflect value — not just cost. For broader context, check out this guide on total cost of ownership in logistics by Supply Chain Dive. Pricing Models in the Canadian 3PL Landscape There’s no one-size-fits-all approach to pricing. Common 3PL pricing strategies include: Transactional (per order/pallet) Volume-based discounts Tiered service packages Custom contract-based rates At MacMillan SCG, we customize our 3PL pricing to fit each client’s business goals, SKU mix, and required service levels. We also provide supply chain cost breakdowns to increase transparency and help clients optimize long-term. Analytics-Driven Pricing Decisions We use supply chain analytics to continuously refine our pricing models. Key metrics include: Cost per delivery zone Warehouse space utilization Accessorial cost trends OTIF performance vs. cost per shipment This ensures our clients receive cost-efficient services without compromising performance — especially in high-cost segments like last mile delivery or temperature-controlled logistics. How to Benchmark Your 3PL Pricing When evaluating a logistics partner, pricing should never be looked at in isolation. Ask: What’s included? Are accessorial charges broken out clearly? What’s the service-to-cost ratio? Are SLAs and performance benchmarks tied to pricing tiers? Can it scale? Will your costs stay efficient as your business grows? Want help benchmarking your logistics spend? Contact MacMillan SCG for a customized cost analysis. Final Thoughts Competitive pricing is powerful — but only when balanced with reliability, innovation, and transparency. At MacMillan SCG, our pricing isn’t just competitive — it’s aligned with your business success. Get in touch today to discuss pricing strategies that deliver both savings and service excellence.