Today we are going to be discussing some tips that will help freight forwarders in raising their profit margin. The first trick is the most obvious one: to lower the supply cost by keeping the supply chain expenses to a minimum. This can be achieved by scrutinizing the process thoroughly and by keeping the dialogue open with all concerned parties.
- Discover multiple suppliers
Finding multiple suppliers can provide you access to the most competitive rates, and in the case of one supplier not being available for the shipment, you can always contact with the other.
- Execute thorough research
Freight forwarders need to have extensive information about conditions and improvements which can influence their usual schedule. Being acquainted with the festivals and local holidays of the territories you frequently ship to or from always comes in handy. For example, if your clientele is mostly from United States, it is always useful knowing their bank holidays to predict beforehand when your normal activity can be disrupted. Furthermore, keeping in touch on the political scenario can also help you ascertain avoidable delays and expenditures.
- Maximise the usage of your space
Inventories and warehouses come at a cost; thus, it is essential to have a detailed and in-depth evaluation of how well your storage space is being utilized, in order to assess the real space needed. A productive approach to your storage plans will not just reduce the space you are using but also the time needed to locate and bring out the items.
- Constant communication with every supply chain individual involved
Regular communication with every party involved in the supply chain will certainly result in fewer communication gaps and better management. Constant conversations with the workers, manufacturers, suppliers etc. also help diminish any last-minute risks in change of plans and allows for amendments in freight volumes or dates even at the last moment.
- Strategically plan your air cargo transport in advance
To avoid extra costs and averting delays, detailed research is the first step, but making proper use of this research and planning air freight shipments beforehand is equally important. As soon as the provisional dates of your air freight shipments are known, tallying the dates with your research in order to make adjustments in schedule or even making allowances for any possible delay can help save freight forwarders time and effort. Likewise, since the shipping rates escalate on certain dates due to the periodic high demand, it is always advisable to book your air shipment at least two weeks in advance. Also, always keep in mind that a guaranteed space on a particular date might mean shelling out more money, so it’s always good and wise to be prepared accordingly.