WHAT SMALL-TO-MEDIUM SIZE BUSINESSES SHOULD KNOW WHEN CHOOSING A FREIGHT FORWARDER

 As a small to medium-sized enterprise owner, scaling your business is likely a stage you’re moving towards. With more and more people turning to online shopping and the scope for international trade continuing to grow, it’s no surprise that many businesses begin expanding their offerings worldwide. With this comes a number of logistical challenges. Do you need to consider hiring and growing your team? Will an international office be needed to manage customer requests more directly. And, perhaps most important, how do you navigate international shipping smoothly? Top freight forwarding companies in India answers these questions by considering to  hire a freight forwarder. In today’s guide, we’ll go through everything you need to know as an SME owner to ensure you make the right decision first time.

WHAT IS FREIGHT FORWARDING?

A freight forwarder or a freight forwarding company is an agent who supports both individuals and businesses in organising international shipments. It’s not uncommon for new businesses to focus on these types of plans in-house initially. Managing the odd international shipment is manageable with the support of local courier services. However, the challenges start to arise when orders begin mounting up or your product offering expands to more complex items. At this point, a freight forwarder is there to ensure you get the most competitive rates and can move goods without issue.

They can be used to organise everything from paperwork through to insurance. Many freight forwarders have their own warehouses where goods can be sent before shipping. And, in some instances, there are packaging services that can brand your goods and get them on their way swiftly. Freight forwarders can also act as a customs broker, moving your goods through the required customs regulations and ensuring they reach the end recipient too. All in all, they act as an extension of your team, removing one complicated process from your To-Do List.

 

When Does My Business Need To Consider A Freight Forwarder?

We mentioned above that many small businesses choose to keep their shipment processes in-house, to begin with. And this can work very well. This sort of setup gives you complete control. You can choose the exact shipments and delivery times you want to offer, as well as having a clear understanding of where your goods are at all times. For some business models, scaling may look like creating a dedicated international shipment team that manages this as orders begin to pick up. But for those small-to-medium sized businesses who are on the cusp of growth, a freight forwarder steps in to offer vital support. With their help, you gain access to a wealth of new contacts. The international trade market is complex and largely relies on the working of agents to gain the best placements on boats/aeroplanes/vehicles and strategic working to get the best deals.

Common signs that it may be time to look for a freight forwarder are:

Increased shipping prices.

Increased international shipments.

Regular errors or delays with paperwork.

Customer services levels aren’t at the level they used to be.

Time is becoming more and more restricted.

You’re looking to become more environmentally friendly and reduce the company’s carbon footprint.

It’s time to work with a specialist with all-around knowledge.

BENEFITS FOR SME

Scaling a business at any point can be challenging. And, choosing to invest your money externally may feel like even more of a risk. However, there are a host of benefits for your business, employees and customers when you choose to work with a reliable freight forwarder.

Companies have plenty of benefits to look forward by partnering up with the best shipping company in India. Here are a few:

Great shipment tracking.

Many of these services keep track of their shipments every step of the way. By monitoring the shipment, they if there are any problems or issues on the ground or up the air. They can easily update you on those issues and find ways to resolve them the soonest possible.

Prepare shipping and export documents.

Issues and delays can involve violation of custom regulations. Great freight forwarding companies know this. That’s why they take extra care in reviewing your documentation and preparing the paperwork to ensure zero problems with custom officials.

Warehousing.

 Many of these freight forwarders have their own warehouse. That’s a benefit for you since that means you won’t have to maintain one yourself.

Warehousing staff.

By hiring a service, you won’t have to worry about managing your own in-house team. No need to add bonuses, leaves and other salary packages that full-time employees enjoy onto your list of expenses. If you have a lean team and you plan on staying that way, hiring a freight forwarder is a good choice for startup or SME.

Negotiations.

Shipping companies hold to one rule: the more you ship, the lower the fees you get. If you consistently send enough shipment for a full truck container, then you could look forward to lower shipping rates. Those discounts will really add up, especially if you send shipments on a regular basis.

Some basic questions small-to-medium importers should consider:

What role does the international freight forwarder play?

Before you start your search, it is vital to know the role of the international freight forwarder. An International Freight Forwarder, commonly known as a Non-Vessel Operating Common Carrier (NVOCC), is a company responsible for organizing shipments from a manufacturer to the importing company. So that we’re clear, a forwarder does not move your goods; they are your logistics expert. They contract with carriers to move your goods, saving you the headache.

Is the Freight Forwarder Consultative and transparent?

Shipping from one country to another is never simple or easy if you haven’t hired a quality freight forwarder.  The best part about using a freight forwarder like AFM Logistics is that consultation is part of the package. Working with us, the learning curve is eliminated. Consider the following when making your choice. Things like knowing about HTS codes and reclassification could reap financial benefits. If your current forwarder isn’t actively looking into this for you, maybe it’s time to call us.

How long has the forwarder been operating?

It is quite easy to become a freight forwarder. It is not easy to become a good one. Make sure the forwarder you choose has had enough time to make the mistakes and learned from them. There are is a lot to learn in this everchanging business. AFM has more than a decade record that’s unmatched. If you would like references, we would be happy to provide them.

Is Shipment Tracking a highlight of their service offerings? Is it possible to track your cargo?

We understand your cargo is precious. Your business must have products delivered safe and on-time. You expect your shipment to leave as scheduled, making its way across the ocean and land to its port of entry, intact, and arrive as scheduled.

Tracking is an essential key and if it’s not available, move on. A tracking system indicates an investment in customer service. Automation gives the thinking professional the time and bandwidth to focus on signs of the unexpected. That is a great benefit to you.

With advancements in technology, cloud storage, RFID tracking, it’s highly possible you will be able to track your cargo. However, you will find MOST companies still don’t or won’t provide a way for you to track your cargo. Tracking your load is another area you’d want to consult with your freight forwarding agent for better planning of your logistics needs. Dedola has a system called Trak-It and we can provide you with your own login, so you know where your shipments are. Or we can send you updates as needed.

Will you have a dedicated customer service representative?

There is nothing worse than being neglected or getting the runaround. Without your own CSR, that is a real possibility. And it costs you a lot in terms of time and money, or soft costs.

Do they have a vast network globally to assist you with all your potential business?

Certainly, you will want to know that the forwarder can cover the areas of current interest to you. But you will grow. Your needs will change. You want to know that your cargo logistics service provider is prepared to assist.

A vast, reliable, and established international network can meet shippers’ demands and requirements with minimal issues. AFM Logistics has a network of partners and agents in over 70 countries that we having been working with for decades looking out for the best interests of Dedola and you.

Do they express interest in your specific needs and requirements?

You can tell a lot from the question you are asked. Be sure the forwarder you are interviewing asks good ones. And that they are listening to you.

Do they have customs clearance capabilities?

This must not be overlooked. The rules and regulations in the US and around the globe are vast and complicated. There is money to be made and lost in this process. Your freight forwarder must have the resources to advise you wisely.

Are they C-TPAT certified?

Customs and Border Protection recognizes that a safe and secure supply chain is the most critical part of their work, keeping our country safe. Becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified means that the freight forwarder has gone above and beyond other freight forwarders ensuring the integrity and security of their practices.  If their cargo is ever comprised, your shipments could be held by government authorities.

Can you get hit with additional surcharges?

Unfortunately, you can. There are many factors, some known and some obscure, that will cause additional charges. Quite often, you may get a last-minute surcharge applied to your container. Typical reasons for an additional charge can be the type of commodity, the port of entry destination, or time of the year. Shipping freight forwarding companies make sure that you know about all surcharges upfront so there’s never a surprise.