Tips in Choosing International Freight Forwarder

Pin It

When you’re looking for an international freight forwarder, some of the factors that top the list of most people are security, reliability, and price. Auctions ha gained popularity with freight contracts selecting the lowest bidder. But considering the price alone can possibly leave your company shortchanged. In decision making, factors like value, service, IT support, and capability must be taken into consideration as well. Here is a step-by-step guide:

1. Identify your company’s overall requirements. Look at exports, imports, brokerage, and distribution. Be clear about the objective of your business and compare the responses of forwarders equally. Consider overall cost, not not only cost of transportation by lane. Decide if you need a large or small forwarder. Study the coverage vital to support your business, also IT, customer service, and reporting needs.

2. Get the commitment and support of your staff. This is tough. Make it certain that they are committed to making such change, and make it certain that your internal organisation supports the decision also.

3. See to it that you are prepared your negotiating meeting. Determine your demands.Define your objectives and why you’re searching for a new partner. Identify a target start date. Have the information on terms of sale, commodities, and density. Know your volumes bu lane and your criteria. Know the product and service levels your business needs.

4. Do your homework. Research at least three freight forwarders. Find out their financial stability, local office, and coverage. Talk to other businessmen in your market regarding which freight forwarder they use and why.

5. Talk to the freight forwarders. Invite them to see you. Ask the freight forwarders what information they need from you to help them provide you the best shipping solutions.

6. Build your Request for Quote (RFQ). Make sure it is updated and complete. Present a an agreement with terms and conditions.

7. Be selective. Issue RFQs only to those you consider qualified after pre-screening efforts. For successful export, work only with a good freight forwarder in Perth.

8. Set a reasonable time frame. Identify a reasonable time frame for forwarding agents to respond to your RFQ. Have a question-and-answer period with a minimum of 21 days for freight forwarders to provide complete responses.

9. Narrow your choices down. Go through your filled out request forms and invite the ones who have met your criteria to a follow-up meeting. It is best to have a conversation with them in advance to better address your concerns. Actively listen to their presentation, but ask questions based on their replies to your RFQ.

10. Negotiate and choose the best. Starting to deal with a new international freight forwarding agent is as critical as the process of selection, so set a feasible time frame and designate a staff to get it done.

Leave a Reply

*