Today’s multichannel complex business models fuel the growth of global commerce and global transportation. Companies take advantage of opportunities to maximize efficiencies for time and cost in moving goods around the globe. Logistics professionals are faced with increasingly complex challenges, and the rising cost of supply chain management is pushing parties to find ways to save more and stay competitive. Let’s look into some of the ways cargo owners can save more on freight.
Work with a Freight Forwarder
Today’s complex supply chains require specialist knowledge. Freight forwarders can add a significant amount of value to the supply chain as they arm companies with the ability to filter and choose the best option for cargo moves. Hiring a specialist freight forwarder who has a focus in your commodity will do the heavy work of cutting down the transportation expenses. They will suggest the most efficient option depending on your service needs. Working with an international freight forwarder whose interests are aligned entirely around delivering on their service promises offers you various other benefits, such as global reach, visibility support, buying power, and most importantly, knowledge capital to manage complex end-to-end service needs that requires sea, rail, air, and road transportation.
One of the most significant savings can be achieved by taking advantage of space. Freight forwarders and third-party providers can help you with consolidation efforts, and move smaller amounts with a lot less effort and expense. Shippers who take advantage of consolidation will enjoy shipping their goods at much lower rates, more frequently.
Aligning shipping activities and adjusting inventory levels, to take advantage of traditional slow and peak seasons in international shipping, will help companies stay on the sharpest side of the ocean freight market throughout the year. This will also prevent service issues related to space, vessel schedules, congestion, etc. Cargo owners and logistics professionals can make a significant difference by employing this strategic decision to ship goods during slow seasons.
Effective Use of Incoterms
Incoterms are guidelines that help sellers and buyers designate responsibilities and risk for the delivery of goods. Buying and selling under certain incoterms can allow you to have control over the ocean freight expense, and the transportation provider. If you are an importer, buying goods on a prepaid basis can be attractive at first, yet it may not be the best strategic decision, if you want to save on transportation expenses. The best practice for importers is to buy goods on collect basis, and control ocean freight spending and the transportation provider. This will allow companies to stay on top of shipping options and methods to save on moving goods.
Using Intelligence is Intelligent
Companies, large or small, who depend on moving cargo internationally should take advantage of critical information and the tools that help companies gain intelligence. Allocating efforts and resources based on the right intelligence can help companies employ the best strategies. Relying on traditional ways of doing business is no longer sustainable in global commerce. Taking advantage of the tools used by suppliers, providers, and partners to gain more intelligence will allow companies to seize the moment, and act swiftly in response to changes and disruptors in the market. Acting based on the right intelligence will help companies achieve better supply chain performance. Luckily, today’s technology allows shippers all around the globe to have access to several analytics tools, and platforms, that provide reporting, online visibility, purchase order management, forecasting, and more.