Logistics move with the times

Having worked in the supply and distribution of timber for several years, I have seen many changes, but once the costs have been considered, logistics always comes down to two fundamental concerns: the need to reduce the number of times a product is handled between manufacture and delivery to the end customer; and the distance the product is transported, particularly once inland.

For those who have been quick to embrace the concept of portcentric logistics, the handling and transportation of products has been significantly reduced.

But, what do we mean by portcentric logistics?

The concept here in the UK is relatively new. The shift in the balance of goods manufactured domestically to those imported has created a strategic move away from centralised distribution centres in the UK's Midlands, for instance, to distribution centres located at the ports. It was initially born out of the need for supermarkets to reduce their supply chain costs by limiting the number of shipping containers being needlessly hauled across the UK. Instead of transporting containerised goods to an inland warehouse for them only to be transported again to a store, goods leaving a port-based warehouse can be delivered direct to any specified location.

The evolution of portcentric hubs has subsequently benefited break bulk trades such as forest products. After all, ports provide excellent multimodal hubs (road/rail/coastal shipping). Moreover, in-port located warehouses complete with a raft of vehicles and storage facilities suitable for the handling of forest products, afford many benefits. For a start, reducing the transportation of goods has an immediate impact on reducing fuel for inland legs, while slashing carbon emissions. Plus, with the decrease in labour costs and land development for inland storage, it is no wonder that the UK's leading suppliers of forest products are already embracing the concept.

The portcentric approach is not appropriate for all supply chains of course, but it does allow for a far greater degree of flexibility for the distribution of much smaller quantities of forest products in the form of palletised goods. The Logistics Terminal (TLT), based at Tilbury, is not alone in that 90% of its forest products leave its warehouse as palletised loads. Typically, this includes softwood timber, hardwood timbers, plywood, doors and timber furniture.

In fact, the need to distribute these products straight from ports will continue to grow since timber yards are not stocking as much in bulk as they used to, primarily because of the slowdown in the housing market.

Of course, the growth of portcentric logistics in the forest products industry is not purely due to changing demands from timber merchants. With an increasing number of products now sold online, the portcentric concept is proving Special Focus | Storage, Handling & Logistics very appealing for timber traders looking to hone in on the operational costs in running an effective e-commerce platform. After all, it affords a much greater degree of control over the inland-bound supply chain.

Effectively, the middleman is being removed from the supply-chain process, making distribution more cost-effective as well as quicker. Also, for those who are buying forest products in bulk to be sold online and distributed in the UK, a full-service portcentric operation offers the opportunity to store goods under 'bond', effectively allowing the payment of taxes on goods to be deferred until they leave the warehouse.

Reduced damage risk
Of course, the added benefit of opting for a sole logistics partner that will take care of the entire inland supply chain management is that product damage should be a rarity.

I say "should be a rarity" with some degree of caution, since I cannot speak for every portcentric logistics provider in the UK. However, since the handling and transportation of products are significantly reduced, so too is the risk of product damage. Plus, a logistics business offering this type of service is much more inclined to go that extra mile in offering a trusted service, as news of poor product handling travels fast.

A word of warning though - not all logistics partners will be geared up specifically for the break bulk, builders merchant, and forest products trade, especially if they are set up to handle predominantly small retail goods. Take paper products for example; it is much easier to pick individual packs of various stock items, wrap and palletise them for despatch. Plus, with stock records maintained on both part and full packs, it is easy to see why suppliers and manufacturers are choosing to opt for a total port-side distribution solution.

Moreover, look for a provider that employs specialist handlers of forest products. They will understand the timber business and the types of products. Ultimately, they will handle the product with the utmost care as they will be well aware of edge damage claims and how to stop fork truck damage and scuffed packs becoming a problem for importers at the point of delivery.