Freight is one of the most critical industries in the world, as it plays a role in every industry that deals with consumer exchange. The supply chain is particularly reliant on the transport of goods from one point in the cycle to another, and without freight, there would be no international and local trade. Every year, Europe alone handles over 16 million tonnes of air freight. When you account for Asia and the US, the annual values swell to over 200 billion tonnes of cargo.
With the increasing demand for online shopping, next-day delivery, and other convenient forms of indoor goods exchange, it is more important than ever for companies to find an efficient shipping system to transport inventory and orders. As a business, your best bet is to look into Freight Services that work on forwarding and matching you to the best cargo transport company.
The Challenge Of Finding Your Own Shipping Company
The problem with shipping companies is that their demand directly affects prices, which means that during peak seasons such as the holidays, you are likely to pay higher fees. If you stick to one company, then you will miss out on potentially lower prices, better shipping routes, and more optimal service. But with millions of freight companies around the globe that focus on specific tradelines, it can be a challenge to find the most optimal one available.
Freight Services mitigate that issue by offering a global network of companies that can take care of your logistical concerns. With the best freight broker TMS (transportation management system), you can view all the pertinent information, such as origins of destination, freight quotation, shipments, and invoices. As the software lays everything out transparently, your logistics coordinator no longer has to keep track of an excel sheet of multiple companies with inaccurate, fluctuating prices. If you need inventory shipped from China to the US or anywhere else in the world, then you can do so with no problems.
No Lock-In Period
A problem faced by plenty of retailers when choosing their own shipping companies is the lock-in period that is overseen by a contract. Generally, most logistics carriers will require a 6 to 12-month cycle where you have no choice but to use their services, regardless of the fluctuations in price. Depending on your product, this system can be beneficial or a waste of money.
For instance, if your product sells the most during the logistics carrier’s most stagnant period, then you can negotiate for a shorter contract to snag cheaper rates. Meanwhile, if your business is in high demand and requires shipments all-year-round — such as FMCG or fast food — then a lock-in period will ensure that you receive regular shipments with no downtime. If not, then you are better off with a freight forwarder who can link you with the lowest prices and best services.
Closing The Gap Between Elements Of The Supply Chain
There is a retail phenomenon called the “Amazon Effect,” which, in the logistics industry, translates to a more rapid chain from warehouse to end-consumer to fulfill the promise of next-day deliveries. That means strategically choosing between air, sea, and land freight, and picking a courier that can compete against the resources of industry giants. For many up-and-coming and smaller companies, that means cutting down the time and resources required for administrative tasks and shifting efforts toward actual results. Utilizing software for Freight Services is the first step to quickening the process and changing the logistics game for your business.
Retail is a highly competitive sector, but there is certainly room for any company to grow as both eCommerce and brick-and-mortar stores are going through varying growth spurts. The key is to make use of available technology and cater to the consumer demand for sped-up processes and convenience. For freight, that means using the right forwarding service to get things done for a lower price at any time of the year.
You must be logged in to post a comment.