FAQ: What Are the Advantages to Using One Company to Handle My Shipments from Beginning to End?

Using one company that you trust to handle shipments from beginning to end is the best way to streamline a supply chain. That means developing a relationship and taking advantage of the expertise they can offer. Shippers should consider the pros and cons of the type of freight forwarder they want to be in partnership with, such as private vs. public, multi-national vs. U.S.-based, and overall organizational structure. Here are 4 more things businesses should consider when evaluating a relationship with a freight forwarder:

1. Organization and Flexibility

For businesses looking for the best way to stay organized while maintaining the feeling of control over their supply chains, working with experienced freight forwarders could be the answer. With a great forwarding partnership, businesses can find a seamless solution to their supply chain needs as one company aids in communication and the completion of tasks, making for a better customer experience.

2. Speed to Action

When specific deadlines must be met or if unforeseen circumstances cause delays, a freight forwarder can implement immediate solutions by leveraging their networks and other resources.

3. Single Point-of-Contact

The shipping and logistics industry has several moving parts and can be volatile at times. Rather than spending time on researching carriers and negotiating prices and services, businesses can work directly with a single freight forwarder, who will offer them the flexibility they need and allow them to have more time. The added benefit to having a forwarder handle negotiation is that they can secure lower terms with carriers because of the high volume of containers they handle.

4. Bundled Solutions

Purchase order management or purchase order tracking allows businesses to observe their cargo at any point on its journey, which will help them maintain organization and control. Cargo insurance is another service that can be especially valuable when moving expensive or rare inventory. One of the most valuable services offered by forwarders, however, may be customs clearance. It can be challenging to manage the paperwork, numerous regulations, and tariff requirements when getting involved with international trade. Having a reliable and experienced freight forwarding partner to ensure that customs paperwork is completed correctly can help eliminate any worry that businesses may have.

Why shouldn’t I hire a Customs broker and then just bid out my transportation to many forwarders?

Although it is possible to manage a business by hiring separate companies to handle the shipping process, this method may lead to hiccups along the way. For example, if several companies are responsible for a shipper’s cargo, it can be difficult to stay organized. Maintaining control over which forwarder is handling what shipment and where each shipment is on its journey becomes less streamline and therefore may require more time and attention. Another instance where problems may arise is when customs clearance is not completed at the time when an international shipment arrives at its destination. With two separate entities handling each side of this transition, one the forwarder and the other the Customs broker, communication and timing issues could occur.

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