What does a Freight Forwarder do? And Do you need one?

With an increasingly growing global economy, the export and import of goods and services are becoming an essential part of modern digitalized businesses. However, just keeping up with these changes and navigating through them can be a difficult and challenging task for logistics companies, especially if you are planning on expanding the geographical boundaries of your business.

What is a Freight Forwarder? And What Do They Do?
Freight Forwarders are specialists who play a vital role in Logistics and supply chain management. To put it in simple words a freight forwarder is a company or an individual that is responsible for storage and shipping of goods for export and import. However, they don’t move the goods himself but acts as an expert in Logistics network who is responsible for contracting various freight carriers for movement of goods from point of origin to point of consumption. Their services and functions may vary depending upon the logistical needs of your company.

• Some freight forwarders or freight forwarding companies specialize in certain cargo transportation methods or geographical regions, to better serve their clients.
• Arranging or offering cargo insurance, that includes assisting with the filing of claims for mishandled or damaged goods
• Negotiating contracts, transportation and handling costs between businesses, providing customs clearance services and other legal entities, including necessary documentation
• Arranging for warehousing services and booking cargo space for goods.

Why Do You Need One?
A Freight Forwarder has knowledge in various rules and regulations that govern the international market and the documentation required. Mistakes in the legal and logistical process of transporting goods can be costly and damaging for businesses. Having a freight forwarder can prove to be economical for your business. Utilizing a freight forwarder to manage the transportation of goods can be a wise investment for many companies that are hoping to expand the geographical boundaries of their business into international markets.

Freight forwarders inform you about all the documents you need to import goods and at the same time help you to explore and understand all your options. As long as you’ve provided them with all the necessary information, you don’t have to worry about a thing! If you’re new to the world of import-export business, then it’s easy to make mistakes and land yourself in trouble but by using a freight forwarder you can easily streamline the process.

While choosing a Freight Forwarder, one of the most important questions you need to ask yourself is are they best equipped to serve the logistical needs of your company. If not, then LogiSWOT can help you to avoid this maze of confusion and guide you through the pain, trouble of finding a freight forwarder so that you never end up getting stuck anywhere within the process.

All you need to do is post your query on the portal and they can instantly help you to connect with various service providers such as Console Agent, Freight Forwarder, IATA Agent, and Customs Broker (CHAs). To get free quotes from various freight forwarders from all over the world just register on MyLogiSWOT portal for free and drop your queries. 

How Can A Freight Forwarder Improve Sales

It is not hard to improve sales, but consistency is extremely necessary. Every import-export business, shipper/consignee is set with their respective freight forwarder and customs clearance services these days, so the important question is, how can the scenario be different? Why should a client outsource his business to you? An online portal can certainly solve this problem. Apart from that, there are numerous ways to expand your business, but the best way is to make logistics simple for the client so that they’ll start using your freight services.

Today's sales process in the freight forwarding sector represents the fact that purchasing policies are increasingly being formulated by executives or board room members, as opposed to the older days when it was observed by an air or sea traffic manager and shipping room floor paradigms. This implies that today's marketing and sales initiatives require a higher degree of corporate involvement and IT cross-departmental integration to support the new business model. There are certain parameters you can follow to increase your sales:

1) Understanding the Market:
Effective and efficient communication is the number one step to engage people with your company. Establish strong contact with consumers to enable enhanced communications between operations and sales. Therefore you should have a team that has strong experience in freight services and

2) Your Company Profiles on Social Media and Other Platforms:
To stand out in the current market scenario it is mandatory to have a good website that helps service providers to connect with consumers on a large scale and also feature on the other social media platforms like Quora, Facebook, LinkedIn, and Twitter among others, this builds the confidence of the customers about the existence of your company. 3) Efficient Networking: As we mentioned earlier communication is the key to the success of any business providing freight international services. Freight Forwarding Agents constantly need to be in contact with freight carriers around the world, in order to make the transaction happen efficiently and meet the international demands of the consumers around the world. An online portal can certainly help you to expand your geographical boundaries and make it easier for you to make these connections efficiently. And at the same time contact various freight carriers to fulfill your logistical needs.

4) Know your Message: Another significant thing to keep in mind for freight forwarders is to understand precisely what kind of message do they want to send to their clients about your company. It could be a good idea to hire a marketing firm that knows the logistics management industry very well. This will assist you to create strategies that will build the right image in the minds of your prospective customers and partners. And also, reinforce your brand image and increase your market potential. 5) Invest in your Services: If you want to become a successful freight forwarding business company and stand out in the logistics market you must let your clients know what kind of advantages they will have by outsourcing your services (air freight/sea freight services). For instance, if you are a start-up, you can offer your services to your clients on a private and more intimate level. An online portal like LogiSWOT can certainly help you to achieve this. Now you know what to do to run a successful freight forwarding business and boost your sales, how about taking action? You can start by joining LogiSWOT to gain global visibility and make connections with freight forwarding agents from all over the world.

What Is The Difference Between A Courier Service and a Logistics Service

In general, logistics is the detailed organization and execution of a complicated procedure. Logistics management includes managing the flow of things between the point of origin and the point of consumption to satisfy various logistical needs of the consumers. A courier company is the one that delivers packages, mails and messages and is well known for their parcel tracking service, speed, security and specialization.

Courier Services:
Courier Services are standard services for the supply of portable goods, smaller-sized shipments and lighter shipments, documents and mail. Usually, they're a bit costlier than regular postal services. Depending upon the speed of delivery and the kind of consignments there are multiple types of courier facilities. Because of their small dimensions and weight, parcels transported through courier services can be easily handled and lifted by a person.  It is anticipated that from 2018-2022, the global Courier, Express and Parcel industry will grow at a CAGR of 5.77 per cent.

The various types of  Courier Services are:
• International or national courier services
• Same-day courier services
• Overnight service
• Standard courier services
• Courier services for pallet delivery

Logistics Services:
Logistics services generally include all the mechanisms, warehouses, individuals and resources engaged in the entire distribution process. From 2018 to 2026, the global logistics industry will expand at CAGR 7.4. People refer to Logistics and supply chain management services when talking about transporting bulk loads and heavy goods. The term is sometimes used to refer to cargo and freight. LogiSWOT can help you contact various freight forwarders along with some other service providers such as IATA and Consol Agent and Customs Broker (CHAs) to satisfy your logistical needs in a cost-effective manner. A logistics company transports goods by trucks, trains ships or aeroplanes. Sometimes managing the entire set of Logistics and supply chain management operations on your own can prove to be too difficult a task, therefore at such times, businesses tend to outsource their logistics service requirements to an external service provider or a third-party logistics company.

So to sum it up there are several other differences between a logistics and courier service company such as load size, cost, delivery and growth. The meanings are complex, and so are the types of shipping services, especially for someone who is unfamiliar with the nodes of the logistics realm its's functions.

How Logistics Management Can Increase Your Profit!

Despite growing revenue, profitability is growing for only a small amount of logistics service providers. The key differentiator in determining the successes of many companies is efficient logistics management. A Logistics company needs to do more than just adjust a few price levers to boost their profitability or hope that they will reach scales or synergy effects by the way of acquisitions. Simply reducing expenses is sometimes not sufficient for long-term profitability. They need to make better use of the resources and challenge the way things were done in the past.
Effective logistics and supply chain management is a prime factor in the success of any business and it directly influences its final outcome. Poor planning and management of logistics and supply chain could lead to excessive expenses, missed shipping deadlines, and even damaged products.

What is Logistics Management?

According to the definition that is provided by The Council of Supply Chain Management, "logistics management is component of supply chain management that plans, implements and regulates the effective flow and storage of products, logistics services, and associated data to satisfy the demands of clients."

Benefits of Effective Logistics Management for Increasing your profits:

Profitability has always been a challenging task for logistics firms. Despite growing revenues, margins of profit remain very low. The logistics industry has optimized current business models to the lowest price lever in the last few years.

1)    Improve your Logistics Strategy and Increase Customer Loyalty

Consumers require better service, and this mandate generates a need for shippers to deliver quickly, precise and high-quality service. Good management strategy aims at continuously optimizing transportation procedures and eliminating disruptions. It thus has a direct impact on the satisfaction of your customers which ultimately affects their loyalty to the brand as well. Improved customer service can give the brand of a company a strong reputation and assist to generate more business. Well-managed logistics services ultimately contribute to the overall favorable experience of your customers and clients.
Read more: https://logiswot.wordpress.com/2019/06/25/how-logistics-management-can-increase-your-profit/

Top Guidelines to Consider Before Choosing a 3PL Service Provider for your Business

A third-party logistics provider (3PL) can assist you to improve effectiveness, control expenses, and enhance customer service.

The 3PL service provider that best suits your business and looks after your logistical management needs can be selected based on the variables we listed below. . A portion of these variables refer to your business, and the other refers to the 3PL's you should take into account-

1- Evaluate Your Goals and Budget
Before you begin to search for a 3PL service provider, precisely layout is what's essential to you and what your budget may allow you to afford.

• Do you need 3PLs that work out of numerous locations?
• Do you need a 3PL that you can contact frequently and performs ordinary registration, or would you like an additional hands-off task?
• Do you need a 3PL that can deal with food or other edible items, medical supplies, or any other particular items?

2- Treat each 3PL like a Potential Employee
A 3pl will not only work for you but it represents your company as well, so don’t hesitate while asking difficult questions or posing for queries and do take a follow up on their references. It's a lot simpler to leave amid the reviewing stage than when they have your stock and are in the middle of processing your requests.

3- Innovation should be an important component of their organization
The world of shipping and warehousing is constantly evolving with the latest trends and newer innovations. If a service provider isn’t innovating according to the latest trends and tech then your business will suffer. Ensure that your potential 3PL keeps on innovating their tech. Get some information about their most recent developments in technology and other sectors as well. Are all of their systems up-to-date?

4- Get Yourself Properly Acquainted with the Staff and the Management
Companies are constantly growing, expanding and changing. Ensure that your fulfillment is in good hands by assessing the general knowledge of the staff. Check to see how well they have been trained. Not only leadership needs to be well trained. A skilled workforce contributes to the smooth functioning of any workforce or organization.

Also, ask about their process of succession planning. A succession planning process means that even if there's a change in the key leadership of the company, their businesses will continue to run smoothly. If management changes, then your company shouldn't be affected by it.  Proper planning by your 3PL service provider will help you to ensure that.

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