September 18, 2012

Interview for Distribution and Logistics

1. What is happening in the market of forwarding services:
– In road transport,
– In shipping,
– In air,
– R / w traffic?

Our company specializes only in road transport so objectively can say about this market. The question of course strange answer it can not a few sentences, and the whole book. This market is extremely competitive succinct: the struggle for the client is “a life-and-death.” A huge number of market participants, as business does not require a large initial investment, then there are forwarding companies to light up like mushrooms and everyone is trying to grab a slice of the market. Put large companies who already have their share, increase working capital and attract the best talent. Western logistics operators, which entered the market, also make the Ukrainian companies to improve and provide even better services. Now road transport certainly lack of quality vehicles, which is ready to begin operation in the domestic market. It’s all the same private owners with one or two machines. System of large companies in this market just a few. In the international direction things are a little better (return are higher and the transportation process easier), lending and leasing programs return to our country, through them, some companies can upgrade parks. The trend now is to ensure that the customer is seeking a better service than a dispatcher at a reasonable price for it.

2. Has the style of freight forwarding companies in the last 2-3 years? If so, how?

After the 2008 crisis, the market has left many small transport forwarding companies, which employ one or two people. In our opinion this is a very positive aspect: the market started to divide the companies that provide relatively better services to their customers and have before them the real responsibility for the quality of services provided. Also decreased price dumping used by small companies to gain customers. In fact, these companies can not be called expedition is just managers, often even at home with the Transport Exchange (della, trans-lit, lardi) vehicles to customers looking for earning a mere penny while providing services to the relevant class. After coming to the market of Western expeditionary logistics providers Ukrainian companies in order not to lose customers increasingly have to cater to their needs and satisfy them with the highest possible quality, even in this case at the best price for the customer.

3. Accelerated the trend toward specialization in forwarding – directional, mode of transport, type of cargo?

Perhaps not. Many forwarding companies still do virtually all types of goods and transport them in all directions. The main thing to be able to make this their commission. Our company has specialized departments that deal with transportation outsize cargo (oversized, dangerous), but this is an exception to the rule, a little company that can afford this kind of specialization. Through professionalism of specialized departments, we can provide better services for the delivery of such goods.

4. Has the (improved, expanded or contracted) a list of services provided by freight forwarders? What is a standard set of services, the most in demand?

Logistics operators in Ukraine is ready to provide customer service in 3pl can be counted on the fingers of one hand, and the cost of these services is far too expensive for small and medium Ukrainian business. Therefore, the most popular service is the transport service, the selection of vehicles in the right direction. About 90% of all Ukrainian forwarders specialize in this and expand the list of services is not collected. But the work is not so much for the shipping agent, but for the manager and does not require significant training. Customer has become more demanding, a standard set of services that used to be (we will order for transportation, transport you to us, but cheaper) is not suitable. Emphasis now is not only the provision of transport, but also to guarantee the safety of goods, timely delivery , timeliness of delivery for loading transport, control of transport in transit and clear and properly furnished documentary support of the transportation process. Delay of payment is already a standard, de facto almost no one is willing to make payments (exceptions only where oversized transportation costs begin long before departure). Credit the customer is a must prosperity forwarding company.

5. Can forwarder cargo owner really help optimize the cost of shipping? How?

Of course, but how else? Why then do I need forwarding company if it does not optimize the delivery costs to its customers?

Let’s take an example. Our company has a client who carries their products in European countries (Germany, Poland, Hungary, Italy). About 10 standard Euro trucks a month, not a regular delivery schedule, depending on sales. Prior to working with us, the company tried to work directly with dozens of different carriers. The company employs three logistician and a broker. Problems were myriad: the constant traffic jam for loading or delivery disruptions of production, because of the high cost of shipping terms (the case that the delivery company learns the day before boot time to find the machine is minimal, have to take any option) and much more. After the company refused to work with carriers directly and start working with our forwarding company problems went away and the costs reduced. Why? We are constantly exported to Europe, zakoltsovyvaya routes we lower the price. We have over 500 vehicles per possession, even if the order is urgent then the machine will be loaded on time.

The staff left a logistician who works with the forwarding company. No broken telephone, the company works with one assigned to her manager, who knows all the details of data traffic and solves every problem as efficiently and expeditiously. Savings as funds and time that such a company spends on logistics operations. face. Similar examples I can think of more than a hundred.

6. When advantageous to contact the shipper, and in which to organize their own transport?

If a company constantly carries a large number of goods within the country (at least 5 routes per day) in some areas with a clear timetable shipment, its business processes are standardized, download go smoothly and on time, she is ready for it to contain its own logistics division and work directly with carrier or have a fleet of vehicles, the expedition her no help. In almost all other cases, a large and reliable shipping company will be more profitable than working with a lot of different carriers directly. Internationally, the same note, I actually do not see the options when working with a good expedition would not be beneficial to the client. Only if he has a very small volume of delivery (one car per month) and he knows in advance the date of download.

7. What helps and what hinders the successful cooperation with freight forwarders cargo?

Helps: clearly provides information about the weight (mass, volume, date of delivery and loading, etc.), the existing delivery schedule at least a week in advance, the lack of staff turnover at the client, transparency of business processes of the client to understand their needs and the same transparency by the forwarder, the normal operation of the warehouse (ORS according to the application), a good broker from the company and organized work with customs, inadequate vehicle drivers.

Interferes: late payment fees client, no shipping schedule (transportation needs of yesterday), sliding schemes, savings reaching to the point of absurdity (when the client refuses machine in international traffic trying to save 100 USD looking for cheaper transport and thus increasing delivery times and reducing the quality of service ), poor organization of work with no customs timeliness of PP or AP which leads to downtime penalties and therefore the deterioration of relations between the partners. Poorly organized large warehouse logistics downtime at PRR, inadequate vehicle drivers.

8. How to check the reliability and professionalism of forwarding company before signing a contract?

Oddly enough, but it is necessary to take the example of state-owned companies that conduct tenders. In order to understand how reliable it, request the following documents:

  • Forwarder’s liability insurance contract
  • Contract with other companies to provide similar services
  • Letters of recommendation
  • Contracts with carriers
  • Those passports to transport
  • Help bankruptcy and criminal record Director
  • Help to formalize employees with years of experience with
  • A certificate from the tax of no debt
  • All registration documents and statutes
  • Tax balance

These documents are more than enough to check how reliable and professional freight forwarder. If your potential partner is not ready to provide you with these documents, then you can safely doubt in his fitness.

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