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How to choose a freight forwarder
Posted on June 30th, 2009 No commentsf your business needs to transport goods, then at some point, you will need the services of a freight forwarder. But what exactly do they do and how do you choose one?
Freight forwarders aid clients preparing price quotations by advising on freight costs, port charges, consular fees, costs of special documentation, insurance costs, their handling fees and recommendations on the best packing method to protect the goods while being transported. Pricing depends on the distance from the place of origin to the destination to special packing requirements such as refrigeration or, for instance, transportation of potentially dangerous materials.
The main objective of freight forwarding services is to deliver goods on time and in good condition on the right destination. Using established relationship with carriers like water-borne vessels, airplanes, trucks and railroads, freight forwarding services will ensure that the goods will be moved along the most economical route, choosing among the many quotes for the one which has the best comination of speed, cost and reliability.
The first thing to think about when choosing which freight forwarding company you will use is the company’s experience with the routes and products like yours. Other selection criteria includes: global coverage and local expertise, reference customers, wide product portfolio, and overall costs.
Global coverage and local expertise. The company should not only have an office in your area but to also have one where your goods originate from (if this is a different location) for easier communication should the need arise. Experience of moving freights, especially goods like yours, along these areas is an additional point. That means they understand how to handle and care for your goods.
Reference customers. Previous client referrals are a great source of information on how good a freight forwarder is. Good companies will provide references and track records of these readily.
Wide product portfolio. Freight forwarding companies which have been running long will be experienced in utilizing different transport modes available as well as providing additional value-added supply chain services if the need arises.
Overall costs. Although money matters are important, prices should not dictate your choice of freight forwarding company, as cheaper price may compromise service quality.
Prior to listing possible freight forwarding partners, take note of your objectives, total cost, the coverage necessary for customer service, information technology and reporting needs. Other things like the commodities and their density, target date, location and market, and the kind of product and service level that you need are few of the information freight forwarders may need to know upon meeting.
Randomly select a few known and reliable potentials. Evaluate their feasibility and quantify potential benefits. Make a list of services you need and see which companies meet your requirements. You can narrow down your choices based on the findings you come up with. Further assess their abilities and experience by requesting references from previous clients and asking for their track records.
Freight forwarding is an integral part of the logistics, haulage & distribution, freight transport and road haulage chain, and if your business moves goods of any type it pays to udnerstand the industry.