Having the best on-demand product is not a guarantee for business success – you first have to figure out how to get it to the customer. That’s when you face your first challenge as a business person: choosing between in-house logistics and outsourcing.
While the former is quite feasible, it’s barred by numerous challenges, including added costs and regulatory compliance issues. That’s why more than 90% of Fortune 500 companies in the US have chosen to work with third-party logistics providers.
Outsourcing logistics to freight forwarders allows businesses to focus on more crucial workflows like innovation and marketing, increasing their competitive advantage while mitigating operational costs.
Read on as we explore how freight forwarders streamline the supply chain and why you need a reliable partner.
What is Freight Forwarding?
Freight forwarding is the process of organizing and transporting goods from one place to another. As the client, you get to decide how involved the freight forwarder is in transporting your goods. For instance, you could contract a freight forwarder to transport goods from a factory to a warehousing facility or to another country altogether.
In most cases, freight forwarding companies use a mixture of shipping models, including ships, rail, air, and roads. Some companies also handle custom clearance along the supply chain, further streamlining the process.
How do Freight Forwarders Streamline the Supply Chain?
Working with a freight forwarder can give you access to a larger logistics network, much larger than one you could build on your own. You also get access to logistics experts and other partners who could make it easier to navigate the logistics process.
Improved Order Accuracy and Speed
Some of the more experienced freight forwarding companies offer sophisticated systems for tracking and managing inventory. When utilized correctly, these systems ensure orders are fulfilled accurately and on time, leading to improved customer satisfaction.
Improved Flexibility and Scalability
One of the greatest challenges facing businesses is creating supply chains that can handle fluctuating demands without requiring significant investments in infrastructure and human resources. In periods of high demand, businesses may have to scale up operations, leading to increased costs. And that’s not accounting for the added costs of seasonal recruitment.
Freight forwarders have established infrastructures and partnerships with other players in the supply chain. This enables them to handle any volume of products without having to restructure their operations.
By partnering with a freight forwarder, you can scale up and down seamlessly without affecting overall operations.
Unmatched Expertise
Freight forwarding companies have a wealth of experience handling different products across numerous jurisdictions. For instance, some of the best freight forwarding companies have specialized trucks and storage facilities for handling perishable and toxic products.
They also stay on top of the latest compliance and regulatory requirements, enabling them to navigate various jurisdictions effortlessly. This is especially beneficial to businesses that transport freight across different countries, which may have different regulations.
Streamline Your Supply Chain
Freight forwarding is a game-changer for supply chain management. By allowing businesses to outsource the tedious, time-consuming, and exorbitantly expensive task of building their own supply chains, freight forwarding companies can help businesses scale and improve operational efficiency.
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