Freight forwarding is vital to an increasing number of businesses in Australia. To achieve the desired result from you freight forwarding requires choosing the best freight forwarder for your business and efficient management of your freight forwarder. Common challenges encountered by shippers when working with their provider include inefficient information flow, delay in operational activities, frequent price fluctuations, sub-standard output and poor relationships with the freight forwarder. The good news is that you can eliminate these challenges and manage your freight forwarder more effectively by using a few tactics. These tactics include defining and communicating objectives from the start, signing yearly contracts, periodic performance evaluation and outsourcing under a single umbrella.
Read on to learn 4 tactics that can assist you to manage your freight forwarder more effectively and how improved freight forwarder management will assist you to achieve your business goals.
1) Communicate business objectives and expectations
Undefined business objectives and unknown expectations lead to unsatisfactory results. Business managers should not hesitate or be lenient when defining freight objectives and expectations from a freight forwarder. Freight forwarders will only be able to deliver satisfactory results if your objectives and expectations are clearly communicated to them. Your freight forwarder should clearly understand upfront:
- services required,
- transportation mode,
- preference between cost vs transit time,
- visibility requirements, and
- freight rate targets.
Providing your freight forwarder with this clarity will assist your provider understand your objectives, expectations and assist them to align their services to meet your needs.
2) Sign a yearly contract
A contract between a freight forwarder and shipper confirms requirements, liabilities, commercials and legal terms. An annual or long-term contract saves time, energy and risk due to market fluctuations. Per shipment negotiations require more time, consume energy, increase risk and potentially delay your shipment. Freight and Logistics solutions managers in Australia understand that per shipment negotiations can give them off-season cost benefits. However, in the end, for many businesses with significant volumes, signing a yearly contract with their freight forwarder will benefit your business with better control, reduced liabilities, better rates throughout the year, reduced risks and an overall better relationship.
3) Evaluate performance and KPIs
Evaluating performance and KPIs assists you to elevate the performance of your freight forwarder. Accomplishment of your freight targets is a prime motive of any business manager. However, to be ahead of your competitors, freight targets should be completed timely, accurately and economically. Regular evaluation of the performance of your freight forwarder will assist you to identify areas of improvements and improve the relationships. Leading managers in Australia periodically monitor the performance of their freight forwarders for flawless services.
4) Outsource under single umbrella
Freight forwarding operations include international transportation (air freight and sea freight), custom clearance, cartage or domestic trucking, short period storage and value added services. Freight, Logistics and Supply Chain Managers in Australia have the choice to collaborate with single provider or work with a different provider for each activity. Management of a single service partner for end-to-end freight and logistics is an easier and less hectic option in comparison with working with multiple service providers. Working with one provider gives you more control and negotiation power. Many leading managers understand the challenges of using multiple providers and look for end-to-end capability as an important selection criteria when choosing their freight forwarder.
A freight forwarding partner works on behalf of you to manage your international freight forwarding and customs, and is ultimately responsible for the efficient delivery of your products. Selecting and collaborating with the right freight forwarder for your business is the first step. To be delighted with your choice of freight forwarder and build a solid, ongoing relationship, use these 4 tactics. Becoming a delighted customer is more likely if you manage your provider appropriately.
For more than a century, BCR has continued to help small, medium and large businesses achieve an optimum logistics solution with warehousing and transportation, including air freight and sea freight services to and from the major ports including Brisbane, Sydney, Melbourne, Adelaide and Fremantle (Perth).