When importers and exporters want to transport their goods they usually turn to freight forwarders that arrange the shipment of goods from the manufacturer to the market on their behalf. Thanks to their expert services, meaning the delivery of goods in the global market, the trade/supply chain is growing bigger and bigger, not to mention that it operates more smoothly. Since forwarding agents specialize in particular services, that is modes of transport or particular markets, there are seen rather as agents of international trading. The support of an air freight forwarders is useful, no matter the location of the corporation and this is the reason why many multinational companies rely on forwarding agents to undertake supply chain solutions. The necessity of a forwarding agent that represents the interests of all supply chain participants is of paramount importance.
Taking into consideration that routes are becoming more and more competitive and that freight rates tend to fall, carriers need to find a solution to this challenge. In other words, it is important to reach niche players that operate in important trade routes and emerging markets. If companies want to build a logistics system suitable for the needs of customers, then it is necessary to leave behind past shipping practices in which companies used to neglect the importance of transportation in strategic planning. Inadequate communication is usually the result of poorly constructed or even outdated supply systems. These systems also cause unwanted delays and expenses, as well as inappropriate cargo routing.
The moment when forwarding agents work together, products are transported more quickly around the globe. Additionally, moving products around the world is realized through a clean and competitive process. Therefore, the supply chain has minimal inefficiency and great flexibility. Proper logistics planning is the key to ensure the success of supply chain factors and ensuring more business opportunities for individuals or corporations. Only by joining a WCA family can the forwarding agent enjoy business profitability and growth. The association of freight forwarders can be defined as a sort of merger of freight forwarding and logistics companies. The success of a cargo alliance is a combination of several factors such as dominance over profitable roads, advancement in emerging markets, and many others.
The main objective of a cargo alliance is to promote cost and time efficiency so as to ensure minimum downtime and reduce delivery obstacles. The rising demand for advanced logistics capabilities and industry-oriented solutions has led to the formation of such alliances. Being together in one place allows forwarding agents to promote their businesses at an international level and to create partnerships. The outcome is the ability to offer valuable services to customers originating from emerging economies that expect more from traditional transportation services. Players in the forwarding industry are provided the opportunity of working together with the purpose of increasing their profitability and industry performance.
In conclusion, cargo alliances protect the interests of all participants of the supply chain. On their own, forwarding agents lack network capabilities and global recognition. Bu joining a cargo alliance, forwarding agents can fight to win large contracts and negotiate lower carrier rates.
Copyright 2015 Economic News Articles