Choosing a freight forwarder

A freight forwarding company arranges the safe and effective movement of goods for importers and exporters. Freight forwarders will analyse the  delivery requirements of the business and then work out the most efficient method of transport – say, whether to use road or rail operators, use shipping lines or airfreight providers. Sometimes the freight forwarder may provide the service itself. Freight forwarders do differ in size and services: some may offer a full range of national and international services and some may offer niche services, dealing with particular types of goods or offering services only in certain countries.

If your company is new to international trade then choosing a freight forwarder may be the most crucial decision you will take. It is worth while consulting either your own trade association which should be able to advise you of freight forwarding companies servicing your sector if specialist. It is also worth contacting UK and International Freight Forwarding organisations to find companies. It’s also a really good idea to contact companies in your own sector that are already exporting to ask if they can recommend any particular companies. Make sure that any specialist needs are taken into account such as

  • Goods that are fragile or
  • Perishable and/or  goods needing refrigerated transport
  • Hazardous materials
  • Live animals
  • Goods of an unusually large size or weight

If research turns up a number of alternatives it is worth while comparing at least three companies by their charges for the services you need.

How good are your logistics systems?

Logistics is the term for the overall management of the transport of goods form where they are made to where they are needed appropriate to the requirements of the person or company who is paying for the goods. In order to have a first-class systems for logistics management a company will need provision for high levels of information about a whole range of processes.

  • Raw material handling and storage
  • Stock/product inventory and control
  • Warehousing  and storage;
  • Transport available either in house or external carrier whether haulage or freight company
  • Efficient packaging systems
  • Security and insurance

Logistics can often be relatively straightforward and handled in house though the requirements for high level information to maximise production is the same whatever the size of company. There are often good reasons why part of the logistic process is outsourced to a third party. Usually Logistic Service providers take over and manage the transportation part of the process: they will track goods, arrange appropriate transport and manage appropriate documentation. Different Logistics providers provide different types and levels of service and may be able to manage the whole of the process including , for example, warehousing systems.

Logistics is one of those areas where, as a business grows and develops, often there is a need for  increasing expertise as tasks grow exponentially. Tasks that used to be able to be undertaken by one or a small number of workers will start to get out of hand unless the process to manage them steps up a gear. Upgrading the IT systems and looking at availability of, for example, of software to keep track of the different processes. At some point it is worth considering outsourcing parts of the logistic processes where external expertise will help production effectiveness.