You may find it difficult to figure out how to handle a large quantity of shipments as a wholesaler or manufacturing firm with plans for growth and expansion. Larger organisations may be able to expand their in-house shipping crew, while smaller enterprises may not be able to afford it. In this situation, freight forwarding companies might come to the rescue.
Should you talk to one?
Freight forwarding companies can help you find the best international shipping routes, including ocean shipping, cargo ships, overland transport, and expedited air freight, for your company’s specific needs. Many firms get mixed up between freight forwarding companies and third-party logistics since they both provide comparable advantages, but it’s often the services they offer and the pricing that divides the two services.
What is the role of freight forwarding companies?
Freight forwarding companies are supposed to act as a middleman between the manufacturer and the end client or distribution point, facilitating the movement of products.
They do this by working with customer in order to process shipments. They also manage insurance because you’ll need something to keep your items safe while they’re in transit. Freight forwarding companies also often manage inventory and help with negotiating the cost of shipping. Freight forwarding companies benefit from lower transportation costs because of the volume of products they move on your behalf. They also manage their own facilities in many locations. You have the option to lease space in places where you don’t provide service yourself. Cargo space may be booked for you by forwarders, who have the expertise to determine which carriers are most suited to serve specific locations.
There are several advantages to working with this type of service, including the ability to free up time to focus on other aspects of your business.
Among the other advantages are:
- Expertise in logistics
- Access to a global network
- Reduced expenses
There aren’t many drawbacks to using a freight forwarder if your company can afford it. The most common problem you may encounter is that shipments are no longer within your control.
Do you need one?
We’ve outlined the primary benefits of working with a freight forwarder, as well as some of the drawbacks that can jeopardise the services your company offers.
You should utilise a freight forwarder if the destination is one where you now lack the resources to effectively complete the shipping procedure. In certain cases, a third-party logistics provider (or 3PL) may be the best option for your company’s needs.
So, what do they do?
Third-party logistics providers handle everything from order management and fulfilment to shipping and return logistics, including everything from picking to packing to inventory management and tracking to shipping and tracking to return logistics. These are only a few of the usual duties that firms outsource to third-party logistics providers (or third-party logistics providers).
You may profit from outsourcing your logistics and order fulfilment to a 3PL provider if you don’t have the in-house capabilities to handle all of the services that 3PLs provide, just as you might benefit from freight forwarding companies. When you outsource all of your supply chain requirements to a firm, you get access to a wide range of advantages. The accuracy of your orders will likely improve, and you’ll be able to devote more time to other aspects of your organisation. To top it all off, you won’t have to spend time and money speculating and building up your whole logistics supply chain.
In the end, you’ll have more time to concentrate on your company growth, sales, and marketing if you work with a reliable 3PL supplier or freight forwarder.