Freight Forwarders

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The Advantages of Using a Freight Forwarder

Freight Forwarders

Freight Forwarders often operate through an agent network. Many people squirm when the term “agent” is spoken in the context of logistics, owing to the negative image they have developed over the years. Many consumers believe that employing an Agent network increases the likelihood of product loss, damage, or theft. This is not true. What many might not realize is that the Agent notion has existed for quite some time.

All carriers have some sort of interaction with agents; even major carriers like UPS and Fedex have an agent network in place in some areas of the country. What genuinely distinguishes businesses are their relationships with and communication with their agent alliance. When “good” forwarders are examined, they have solid, strong relationships with their agents, often even stronger than if they were dealing internally inside their own organization. To grasp this properly, it’s necessary to understand that these agents thrive by providing outstanding service to their carrier partners. They will gain more business if they perform a good job. Thus, they wish to impress, to be precise in their pickups and deliveries, but it is the carrier’s responsibility to keep their (agents) on their toes in terms of performance, accountability, and dependability.

Oftentimes, many businesses may claim to be a One-Stop Shop, but with enough questioning, you can decide whether this is real. Are they capable of real-time tracking and tracing? International? Are you capable of warehousing and distribution? Capabilities for reporting? As your firm expands, these may be factors that contribute to its success. These elements contribute to a customer’s ability to build their firm with the least amount of financial output possible.

As I indicated previously, a reputable freight forwarder will make it one of their primary aims to save their customer money, but curiously enough, the savings often do not come from just offering the customer rock-bottom prices. Indeed, if you speak with a reputable forwarder, they will frequently state that their pricing is reasonable to moderate. The reason for this is because many times, providing a remedy to an issue may require utilizing additional resources and raising costs on the front end in order to accomplish objectives such as quicker transit, increased customer satisfaction, and increased efficiency. For instance, a corporation shipping from California that wishes to beat their rivals on the east coast may be required to utilize a warehouse and distribution facility in, say, Chicago. Adding this resource will provide the Cali Company with increased control, quicker transit times, and a more competitive drive, while also strengthening client loyalty, as I said previously.

One freight forwarder I spoke with demonstrated how he gave value to a new customer just by being curious. The customer had been utilizing UPS ground to ship out merchandise weighing in the neighborhood of 50 lbs. for ten boxes traveling to a single location, totaling 500 lbs. Numerous businesses who could have come across anything similar would have fled due to the guys in brown’s brand awareness and repute. However, not this owner; he saw that he could put up a very powerful program for the customer based on the cumulative rate of 500 lbs., as opposed to UPS rating the shipping on a per box basis. In the end, he was able to save the customer 30% on his shipments by utilizing a considerably faster transportation time.

Freight Forwarders

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