The supply chain management system (Opens in a new window) of any organisation is its strongest pillar. Every organisation must penetrate the market and reach customers while establishing an infallible supply chain system. This begins with tracking the product to ensure its answer gas delivery at the end. It requires immersion in the latest technologies, an efficient workforce and a flawless system. Here comes the role of companies like CargoLogik that have been extending their supply chain and logistics support for maintaining efficient freight forwarding systems.
If you're involved in international trade, you've likely heard the term "freight forwarder" before. But what exactly does a freight forwarder do? Freight forwarding is a complex process that is an amalgamation of intermodal transportation, shippers, carriers, customs brokers and logistic providers. It helps businesses ship goods from one destination to another. Freight forwarders act as intermediaries between shippers (the businesses that need to send goods) and carriers (the companies that physically transport the goods).
Effective supply chain management can help optimize the entire process, reducing costs, increasing efficiency, and improving customer satisfaction. As a part of globalization, companies are now expanding their businesses. And the supply chain system will play an integral role in this.
The companies rely on an efficient supply chain to ensure that their product reaches the end-user timely. Freight forwarding companies provide real time global shipping tracking (Opens in a new window) of shipments which keeps you updated with the flow of the product. In addition, they also rely on advanced technologies that provide up-to-the-minute information on the shipment. So, the role of freight forwarders has become significant. In this blog, we will be highlighting the role of an efficient supply chain system.
Key statistics on the supply chain system
- The global supply chain market will witness a CAGR of 11.2% from 2020 to 2027.
- Around 90% of global merchandise is shipped by sea, with over 50,000 merchant ships transporting goods across the globe.
- The rise of e-commerce has significantly contributed to the growth of the global supply chain.
- 70% of the companies believe that supply chains are a key driver for quality customer service
- Around 57% of companies agree that the supply chain system can give companies a competitive edge.
3 Reasons that make freight forwarders paramount for any business:
- Freight forwarders have extensive knowledge and experience in international shipping and logistics, which can be a complex and confusing field for new businesses.
- They can help businesses save time and money by finding the most efficient and cost-effective shipping options.
- They can help businesses navigate the various regulations and requirements involved in international shipping, which can vary from country to country.
The Role of a Freight Forwarder :-
Booking and Coordinating Shipments
One of the primary tasks of a freight forwarder is to book and coordinate shipments on behalf of their clients. This involves finding carriers, negotiating rates, and ensuring that all necessary paperwork and documentation is in order.
Choosing the Best Shipping Method
Freight forwarders are experts in various shipping methods, including air, sea, and ground transportation. They can help businesses choose the most appropriate shipping method based on the type of goods shipped, the destination, and the timeline.
Handling Customs Clearance
Customs clearance is a critical part of the international shipping process. Freight forwarders can help businesses navigate the complex regulations and requirements of clearing goods through customs. This includes preparing and submitting all necessary documentation, paying applicable fees, and ensuring that the goods meet all relevant standards and requirements.
Managing Insurance and Risk
Freight forwarders can also help businesses manage the risks involved in international shipping. This includes arranging for insurance coverage to protect against loss or damage to goods during transit and providing guidance on minimising the risk of delays, theft, or other issues.
Benefits of Working with a Freight Forwarder
In this section, we'll explore some specific benefits businesses can gain by working with a freight forwarder.
- Access to Expertise and Resources
Freight forwarders have extensive knowledge and experience in international shipping and logistics. Businesses can tap into this expertise by working with a freight forwarder and gain access to a wide range of resources, including carrier networks, customs brokers, and insurance providers.
- Time and Cost Saving
By leveraging their expertise and resources, freight forwarders can help businesses save time and money. Freight forwarders can help businesses find the most efficient and cost-effective shipping options and streamline the paperwork and documentation involved in international shipping.
- Reduced Risk and Increased Reliability
Freight forwarders can help businesses mitigate the risks involved in international shipping, such as delays, damage, and theft. By working with a freight forwarder, businesses can ensure that their goods are shipped safely and reliably without the need for extensive oversight or micromanagement.
Maximizing Efficiency: Why a Seamless Supply Chain is Essential for Freight Forwarders
An efficiently running supply chain is integral in enhancing the business’s performance. From manufacturers and suppliers to carriers and customs brokers, each participant must work together seamlessly to ensure that the goods are delivered on time and within budget. Let’s understand how supply chain management helps freight forwarders:
Inventory Management
At the core, the supply chain system helps manage inventory at every level. It ensures that the goods are delivered to the destination on time. It helps in ensuring the products are never out of stock or overstocked.
Transportation Logistics Management (Opens in a new window)
The role of transportation is vital in ensuring that the products are delivered at the right time. It involves managing the transportation of goods, adopting cost-effective shipping methods, coordinating with the carriers and taking care of all the documentation, which eventually ensures no bottlenecks in the flow of the goods. Thus they ensure the optimization of the entire process, improving efficiency.
Customs Compliance
Regarding global shipping, the freight forwarders must ensure no delays. At the same time, they must also adhere to all the compliances that ensure hassle-free delivery.
Communication and Visibility
Effective supply chain management involves clear communication and visibility throughout the process. This can help ensure that all stakeholders are on the same page and can make informed decisions based on accurate and up-to-date information.
Expertise and Knowledge
Freight forwarders have extensive knowledge and expertise in international shipping and logistics. They are familiar with the rules and regulations of different countries and can help businesses navigate the paperwork and documentation required to ship goods across borders. They can also help businesses choose the best shipping methods and routes based on the type of goods shipped, the destination, and the timeline.
Carrier Networks
Freight forwarders have extensive carrier networks to tap into to find their clients' most cost-effective and efficient shipping options. They work with airlines, shipping companies, and trucking companies to find the best options for each shipment.
Overall, supply chain management is critical in freight forwarding as it helps ensure that goods are delivered to their destination on time and in the most cost-effective manner possible.
Wrapping it up!!!
In conclusion, freight forwarders play a pivotal role in the global supply chain. They help businesses navigate the complex. These companies have the expertise in combating the challenges of shipping goods across borders, managing carrier networks, ensuring customs clearance, risk management, and coordination and communication to keep the wheels of international trade turning.