Imagine having to track all your inventory without the aid of technology – fun, right? Not at all. Luckily we have, and have had an evolving modern digital method of tracking inventory in the form of a warehouse management system.

A warehouse management system (WMS) is an integral tool that can significantly streamline your warehouse operations. By implementing a WMS, your inventory management becomes a more transparent and efficient process. The system provides real-time updates, ensuring accurate inventory levels and reducing the likelihood of overstocking or stockouts. You will have a clear view of your inventory at all times, which can help in making informed decisions when it comes to purchasing and logistics.

Your organization can achieve a new level of order and accuracy with the help of a WMS. This system is designed to optimize all your warehouse tasks by sequencing jobs, directing picking, and suggesting replenishment strategies to save your employees’ time. As a result, your team can focus more on critical tasks rather than manual data entry or error correction. Bringing AI into the mix, the system can forecast needs and set priorities for tasks based on the most efficient routes and methods, thereby boosting productivity.

Leveraging a WMS contributes to better integration with an Enterprise Resource Planning (ERP) system. This integration facilitates seamless data flow between systems, allowing for smoother automation of processes and enabling better decision-making based on comprehensive data analysis. Consequently, automation in a WMS not only accelerates warehouse activities but also minimizes human error and enhances overall efficiency. Your business stands to gain a competitive edge with a robust warehouse management system at its core.

Core Components of Warehouse Management

Effective warehouse management is crucial for reducing costs, optimizing efficiency, and enhancing accuracy in inventory and order processing. Below are the fundamental components you should consider integrating to maximize your operation’s potential.

Inventory Management and Accuracy

Your inventory is the backbone of your warehouse. Implementing real-time inventory tracking ensures accuracy and visibility across all your stock levels. Sophisticated systems utilize cloud-based solutions and automated systems to update inventory data instantly, minimizing errors and maintaining precise inventory control. This often involves technologies like barcoding, RFID (radio-frequency identification), and integration with ERP (Enterprise Resource Planning) systems to synchronize inventory information.

Receiving and Put-Away Efficiency

Upon receiving new stock, efficiency in the receiving and put-away process is vital. A robust system will facilitate rapid unloading, inspection, and recording of incoming items. The put-away strategy should be optimized to enable quick access and space utilization, often using FIFO (First-In-First-Out) or batch and lot tracking methods to maintain freshness and compliance.

Picking and Packing Strategies

Streamlining your picking and packing process with established strategies like zone, wave, or batch picking can substantially boost productivity. Automated systems can direct warehouse personnel to the correct storage locations, minimizing travel time and increasing the speed of order processing. Proper packing ensures that orders are secure and ready for shipment with the correct documentation, reducing errors and returns.

Shipping and Order Fulfillment

Efficient shipping protocols and order fulfillment systems are essential for timely deliveries, customer satisfaction, and repeat business. Integrating your management system with carriers can automate shipment scheduling and tracking, providing up-to-date information about each order’s status. Matching orders with optimal shipping methods based on cost, speed, or carrier preference is a critical feature of advanced warehouse management systems.

Labor and Workforce Management

Managing your workforce strategically can lead to improved performance and reduced operational expenses. Warehouse management systems can forecast labor demands and schedule warehouse personnel effectively. By analyzing labor patterns and productivity, you can align your workforce with your operational needs, ensuring that staff is utilized where and when they’re most needed.

Integrating Technology for Enhanced Performance

Integrating advanced technology within your warehouse management system significantly increases performance efficiency across all operations. From artificial intelligence optimizing logistics to mobile solutions improving real-time communications, the focal point is on streamlining the supply chain.

Artificial Intelligence in Warehouse Operations

Artificial intelligence (AI) transforms how you manage inventory tracking and predict supply needs. AI-powered analytics provide deep insights into your warehouse’s functioning, enabling you to harness data for improved decision-making. By predicting trends and analyzing past performance, you optimize your inventory levels and reduce waste.

Role of Automation and Robotics

Automation streamlines your warehouse’s repetitive tasks, such as sorting and transporting goods, increasing productivity and reducing errors. Robotics, such as automated guided vehicles (AGVs), seamlessly integrate into your operations, enhancing speed and precision in material handling. These technologies work in tandem to boost your warehouse’s overall throughput.

Software Systems: Cloud-Based vs On-Premises

Deciding between a cloud-based WMS and an on-premises solution impacts your operational scalability and data accessibility. Cloud-based systems offer you real-time data access from anywhere, enhancing your supply chain visibility. In contrast, on-premises WMS may afford greater control over customization and security, vital for your company’s specific needs.

Mobile Solutions and Voice Technology

Mobile devices armed with barcoding and voice technology give you the flexibility to perform on-the-go inventory management, leading to error reduction and time-saving in order picking. Implementing pick-to-light systems and utilizing sensors throughout the warehouse further drives efficiency and accuracy in your logistic operations.

Examples of Warehouse Management Systems

ProVision

ProVision is a high-end warehouse management system solution that is user-configurable to manage a wide range of warehouse operations and activities. This warehouse management system is popular among several reputable supply chain and logistics companies, including Brimich Logistics.

Infoplus

Infoplus is the ideal warehouse management solution for small to mid-sized companies in a wide range of industries. This warehouse system is a web-based solution and features core inventory management, demand forecasting, and inventory optimization.

Oracle SCM Cloud

Oracle is a cloud-based warehouse management system that is geared towards distribution manufacturing, inventory management, and fleet management. An additional feature of Infoplus is product development that companies can use to create a bill of material from a conceptual design.

Optimizing Warehouse Operations

Implementing a warehouse management system (WMS) can significantly enhance your operational efficiency by streamlining warehouse processes, boosting productivity, and reducing labor costs.

Workflow Optimization and Lean Management

By adopting a WMS, you ensure your workflow is calibrated for peak efficiency. Key performance indicators (KPIs) such as order fulfillment rates and travel time within the warehouse are optimized, leading to a more lean management system. This means that your employees can navigate the warehouse quicker and with more accuracy, effectively reducing unnecessary steps and time spent on each task.

• Productivity Boost: Tasks are prioritized and directed through the most efficient paths.
• Labor Costs: Precise management of labor reduces excess staffing requirements.

Quality Control and Customer Satisfaction

A sound WMS aids in maintaining high quality control standards, which directly impacts customer satisfaction. Your ability to trace and handle products throughout the fulfillment process is sharpened, so errors in inbound receipts and outbound deliveries are minimized – ensuring that the right product reaches the customer in perfect condition.

• Quality Assurance: Systematic tracking of products to prevent errors.
• Customer Experience: Enhanced by delivering orders accurately and on time.

Tracking and Reporting for Continuous Improvement

Real-time tracking and reporting functions of a WMS grant you oversight over every aspect of your warehouse operations. With complete visibility into your supply chain management, you can continually refine your processes, leading to sustained operational efficiency.

• Continuous Improvement: Data-driven insights help refine warehouse processes.
• Monitoring: Key metrics are tracked to oversee and improve warehouse monitoring and reporting.

Strategic Business Impacts

Implementing a warehouse management system (WMS) can have significant strategic impacts on your business by optimizing supply chain efficiency, adapting to evolving market conditions, and enhancing customer relations.

Supply Chain Synergy and Cost Reduction

Enhanced ERP Integration: Your WMS should seamlessly integrate with enterprise resource planning (ERP) systems, leading to real-time inventory accuracy. This synergy facilitates:

• Effective labor forecasting, optimizing workforce allocation.
• Improved pick accuracy, reducing error rates and returns.

Cost Reduction Strategies:

• Operating Costs: Streamline warehouse operations to reduce wastage and lower costs.
• Demand Forecasts: Utilize accurate data to improve ordering and stock levels, minimizing overstocking or stockouts.

Adapting to E-commerce and Market Trends

E-commerce Growth Management: As your online sales grow, a robust WMS helps you handle increased order volumes and maintain customer service quality. This supports:

• Omni-channel Fulfillment: Enable seamless integration across sales channels for a unified customer experience.
• Scalable Solutions: Adapt to changing market trends with a WMS that scales with your business needs.

Enhancing Customer Experience and Loyalty

Delivering on Customer Expectations:

• Traceability: A WMS offers improved traceability, giving your customers visibility into their order status.
• Customer Experience: Accurate and speedy fulfillment raises customer satisfaction and fosters loyalty.

Employee Morale and Service Quality:

• A well-organized warehouse boosts employee morale, which in turn can lead to better customer service.

Frequently Asked Questions

This section answers common queries about the specific advantages of integrating a Warehouse Management System (WMS) into your logistics operations.

How can a Warehouse Management System improve inventory control?

A Warehouse Management System streamlines your inventory control by providing accurate real-time inventory tracking and minimizing the chances of overstocking or stockouts. With a WMS, you’re equipped with the tools to maintain optimal inventory levels.

In what ways does a Warehouse Management System enhance customer service?

By ensuring that accurate stock levels are maintained and that orders are processed efficiently, a Warehouse Management System helps deliver orders to your customers correctly and quickly, thereby enhancing customer satisfaction and trust in your service.

How does a Warehouse Management System contribute to the efficiency of order fulfillment?

A Warehouse Management System optimizes order fulfillment processes by automating tasks such as picking and packing, and by directing workflow intelligently. This contributes to a faster turnaround time from order receipt to shipment.

What is the role of a Warehouse Management System in reducing errors in warehouse operations?

A Warehouse Management System reduces the likelihood of human error in warehousing operations by automating data capture and utilizing barcode scanning or RFID technology. This enhances accuracy in order processing and inventory management.

How does a Warehouse Management System support real-time data reporting and analysis?

A WMS offers real-time data reporting and analysis tools which support quick decision making and provide valuable insights into your warehouse operations. This data can be leveraged to improve efficiency, reduce costs, and forecast future inventory needs.

Contact Brimich Logistics to Manage Your Inventory

If you feel your business could benefit from the addition of a new or updated warehouse management system, contact Brimich Logistics today for a free no-obligation quote.

If you could outsource in-house operations and, at the same time, drive growth, reduce costs, improve workflows and gross profit margins – wouldn’t you take advantage of it? Welcome to the world of value added logistics services.

What is the Value of Added Logistics Services?

Value added logistics services are those additional distribution and warehousing services, such as custom packing, cross-docking and quality controls offered by 3PL partners. These services allow businesses to outsource what would normally be in-house operations and offset associated costs. By taking advantage of value added options, businesses free up resources which can then be used to strengthen core competencies.

In a highly competitive industry such as the supply chain, many SMB companies realize that partnering with a robust logistics provider who provides solutions beyond transportation and warehousing is a top criteria in a growth strategy.

“Modern logistics starts in the customer’s plant, not afterward. Manufacturers have realized that it makes economic sense to transfer certain in-house tasks to a logistics company.”

Dirk Bütow, Global Key Account Manager at BLG LOGISTICS

Types of Value Added Logistics Services

Just as there are many different types of businesses, there are a host of value added services designed to enable the logistical needs of those businesses. From industrial to pharmaceutical, the food industry and cold chain requirements, customers in the supply chain rely on the specialty and expertise of their 3PL partners to extend their workbench.

For logistics companies that provide value added services, supply chains may focus on more discrete characteristics such as time sensitivities, price or warehousing capabilities depending on the value chain they serve.

A few examples of value-added services offered by logistics companies include:

• Cross Docking
• Co-packing & Assembly
• Product Rework/ Sorting
• Reverse Logistics
• Quality Checks
• Container De-stuffing
• Shrink Wrapping
• Custom Packing
• Labelling (UPC & Barcode printing)
• E-Commerce Drop Shipping Services
• Providing EDI to Customers (Standard or Customized solutions)
• Detailed management reports

Value Added Services Make Customers More Flexible

In order to provide a higher level of service to clients, 3PL and logistics companies tailor their services to meet the specific needs of their customers. The benefit of value added services to the customer is in a more efficient supply chain. The benefit to the logistics provider is in more business through diversification.

Value added activities in logistics enable customers to offload in-house operations that are restricting growth thereby allowing them to reallocate resources that improve or maintain market competitiveness.

For instance, pre-assembly is a typical value-added service in logistics. If you employ a JIT strategy in your business, partnering with the right 3PL provider can facilitate a cost effective method of  forwarding partially assembled goods through the supply chain without having to switch carriers.

Furthermore, workers that specialize in pre-assembly are employed within the managerial sphere of the logistics provider. For your business, this further removes the burdens attached to human resources by not having to maintain staffing for these outward services.

Value Added Services and the Supply Chain

The globalization of sourcing and manufacturing has facilitated the need for more diversity in logistics. Just as early freight forwarding evolved into logistics, value-added services became a natural extension of evolving supply chain opportunities.

Where value creation was traditionally held as an internal control by the customer, the availability of cost effective outsourcing shifted value creation into becoming a collaborative effort with an external 3PL partner.

Businesses with optimal supply chains have 15% lower supply chain costs, less than 50% of the inventory holdings, and cash-to-cash cycles at least three times faster than those not focused on supply chain optimization.

Logistics Bureau

Depending on the nature of your business, key activities may require optimized trucks and container loads. Or you may require co-packing, repacking or custom packaging from your logistics relationship.

One value added service for instance, may involve re-packing goods that arrive in large batches from a distant location. The repacked goods are then sold in smaller batches at their final destination.

Another value added service may involve true diversity in customer fulfillment. For instance, a 3PL partner can both manage and fulfill B2B and B2C orders from a single pool of inventory. In a market where space is at a premium, avoiding the expense of warehousing for what would otherwise be distinct inventory sets provides an essential advantage.

Value Added Services and Sustainability

By combining transportation routes that would otherwise involve another service company, a logistics provider that offers a value added service solution can streamline an entire leg of a supply chain. For instance, by eliminating product transports, customers enjoy the benefits of more efficient transport and add to the sustainability of the supply chain itself.

Trust and Information

Like any partnership, a 3PL-client relationship works like marriage, therefor there must be a high degree of trust and the sharing of information between the two parties.

It would be fair to say a high level of trust is not only the anchor of the relationship, it’s also a prerequisite for the creation of value-added services. Meeting deadlines and expectations ensures success and facilitates the easy sharing of sensitive information. For instance, customer information may be required by a logistics provider to customize services and improve process efficiencies.

Final Thoughts

Nobody can predict the future with absolute certainty. Take the Pandemic for example. We would like to think our existing infrastructures and supply chains are robust enough to weather minor hiccups, and perhaps they are, but these are evolving technologies in a world currently experience a bullwhip effect after a near dead-stop.

The shortage of truckers and the start-stop jerkiness of the availability of products has been working its way through the supply chain for a number of years now.

Yet, according to a recent report from Statistics Canada on rental space in commercial markets:

Compared with the fourth quarter of 2020, commercial rents were up 3.3%, supported by increases across all building types: industrial buildings and warehouses (+4.2%), retail buildings (+3.8%), and office buildings (+1.8%).

These positive growth numbers would seem to reflect a continuous and expected demand. As for the supply chain hiccups, they may just be growing pains.

Will the wrinkles smooth out eventually? Hard to say. But being able to share the load of value creation for your customers through good logistics partnerships makes sense. Plus, partnering with a reliable, environmentally responsible 3PL provider who offers value added services tailored to your needs has the added benefit of increasing sustainability.

To find out how Brimich Logistics and Packaging can help your business grow through value added services, contact us today!

In a logistics industry that’s constantly evolving, how do pick and pack services remain an integral part of serving both businesses and end-user customers?

Small and medium-sized businesses all aim to be successful, but with new success and technologies come new problems. How do you ensure that your product is packaged accurately for delivery?

As we know, the fulfilment process is very sensitive, and the smallest mistake in packing or labeling can result in an item not being included, breaking or not reaching its proper destination. This is where modernized pick and pack services come to your aid.

The Obvious Question: What is a Pick and Pack Service?

The pick and pack service is simple in principle – products are picked then appropriately packed, yet it is a crucial step in the order fulfilment process. The first steep is collecting (picking) all products from their respective warehouse locations for a customer’s order. The next step is properly packing these items for shipping to the customer.

The underlying critical factors that influence the success of the process are speed, skill and accuracy. Inefficiency in any one of these areas will degrade customer experience down the line. For instance, if an order arrives damaged, late, or contains the wrong items, your customers are less willing to do business with or recommend you again.

In other words, through pick, pack and ship services, sold items are picked, packed safely and shipped with the correct shipping label and invoice.

The Pick and Pack Fulfilment Service at Work

The moment a customers’ order enters the system the picking process begins. Depending on the type of order, products are picked by the piece, in batches or in waves. With the help of an advanced warehouse management system (WMS), inventory counts are optimized resulting in efficient picking and faster product flows between storage and dispatch.

While modern technology certainly helps mitigate the chance of human error, manual quality control checks for quantity and quality are still used top monitor overall fulfilment accuracy.

Types of Picking

The picking process itself can be broken down into four main types:

• Piece or discrete picking –  As an or comes in, a picker handpicks each product to assemble a complete order.
• Batch or cluster picking – Similar to piece picking with exception that multiple orders are done all at once instead of one at a time.
• Zone picking – Items are often warehoused as similar types or in zones. Employees within these specific areas pick one order at a time within that area.
• Wave picking – A combination of both batch and zone picking. Employees stay within a given zone and pick more than one order at a time.

Specifics of Packing

Efficient packing starts with placing the ordered items into a suitably sized box. The box is then lined with packing materials to ensure the products reach their final destination in one piece.

Furthermore, packing should keep an order within the smallest number of boxes on the whole and make use of the most suitable type of packing material(s) for each product.

Maximizing these packing specifics results in reduced shipping costs, order accuracy, and a more cost-effective shipping process.

An ideal warehouse will be able to turn around orders quickly with a high rate of accuracy. Using better levels of quality control, the shipping process runs smoother and helps foster a high level customer satisfaction.

Pick And Pack Features And Benefits

Using a pick and pack service offloads an entire system from your business which in turn, allows you to concentrate on growth and further opportunities.

In other words, trusting a picking and packing fulfilment partner ensures better levels of customer care without the distractions of maintaining an in-house fulfillment process.

Features of a good picking service include:

• Multiple, strategically placed locations
• Use of a state-of-the-art warehouse management technology
• The ability to manage discrete, batch, cluster, wave and zone order picking capabilities
• Integration with popular ecommerce platforms and shopping carts
• Capability to warehouse, pick and pack a wide range of products
• Customizable srevices to suit individual client needs

Benefits of integrating with a pick and pack service include:

• Cost improvements throughout your supply chain
• Improved order-to-cash cycle time
• Scalability
• Increased supply chain responsiveness and adaptability
• Access to specialized warehouse process technology, equipment, and expertise

There is an Order Fulfillment Opportunity For Every Business

From large B2B operations to small entrepreneurs, a business that involves customer order-fulfillment can leverage the experience of picking and packing services without having to invest in warehouse facilities and equipment.

According to a recent market report, the pick and pack services industry, with the aid of automation, is set to reach over $106 billion by 2029.

Outsourcing these warehousing services to an experienced logistics partner also allows you to scale your inventory up or down as necessary.

Types of businesses that utilize pick and pack:

• Wholesalers and distributors
• Entrepreneurs and Ecommerce merchants
• National retailers that require centralized distribution
• Omnichannel retailers
• B2B and B2C suppliers
• Fast Moving Consumer Goods (FMCG) suppliers and retailers
• Parts and equipment service providers

Pick And Pack Warehouse Services Help Create a Complete Fulfillment Solution

With over 50 years experience in the supply chain industry, Brimich offers picking and packing as an integral part of the industries we serve: food and beverage, agricultural and chemical, retail and wholesale. With our state-of-the-art facilities located in Brantford and Etobicoke, we have the expertise, skills, and the technology to handle your businesses pick and pack strategy.

Whether your business is simple or complex, Brimich Logistics & Packaging offers a complete 3PL service portfolio that fits your needs. All you have to focus on is ensuring that the orders keep coming and your business continues to grow.

What role does freight logistics play in making sure your products are delivered on time, and on budget?

What Is Freight Logistics?

Freight logistics comprise the core systems and infrastructure of an estimated $270 billion global business.

At any given point, the knowledge of shippers and carriers, the technology, experience, and human resources make possible the smooth and efficient movement of goods around the world.

One major example, international maritime shipping, accounts for about 90 percent of world trade, and without these logistical mechanisms, simply would not be possible.

The following is a useful look into the key components of freight logistics including: communication, tracking and tracing, warehousing and distribution, customs, and insurance.

The Seven Rs of Logistics

To understand the complexities of strategically coordinating the elements and functions necessary to the efficient operation of the international maritime shipping industry, it’s helpful to understand the basic principles represented by:

1. The Right Product

2. The Right Place

3. The Right Price

4. The Right Customer

5. The Right Condition

6. The Right Time

7. The Right Quantity

In practice, making sure the correct cargo reaches its intended destination safely and on time is priority one.

The logistical systems of freight management are equal parts mechanical and organic. In order for their respective supply chains to properly function, each  must pull its weight in perfect synchronicity.

To get a better idea of how massively intricate the global flow of freight is, the interactive map below illustrates just how much the world relies on coordinated logistics systems:

How Freight Forwarders Play Their Part

Managing the specific needs of such a highly coordinated system requires a freight logistics team dedicated to:

• Negotiating freight rate contracts
  
• Ensuring continued customs compliance and insurance protection
• Maintaining relationships with steamship lines
• Minimizing empty miles by coordinating efficient shipping routes

Freight forwarders oversee the following logistical responsibilities:

1. Communication

2. Tracing and Tracking

3. Warehousing and Distribution

4. Customs

5. Insurance

Logistics Communications

Logistics companies partner with businesses to make the right decisions impacting finance, production, engineering, marketing, transport, warehousing, purchasing, and inventory management.

What does this do for your business’s bottom line?

By minimizing the amount of connections needed to link a variety of economic players, third party logistics providers help reduce costs.

Tracking and Tracing

Freight Forwarders typically utilize specialized software called a Transportation Management System, or TMS, to trace and track shipments, making any freight’s journey transparent. This helps logistics management to:

• Develop more efficient procedures
• Improve customer service
• Save money

An integrated TMS reports crucial data about carrier performance, transportation costs, and market trends.

Though the goal is always in smooth logistical operations, the TMS detects hiccups that may defer delivery, facilitating prompt notification for any customers who may be affected by the delay.

This enables freight forwarders to continually refine their strategies in creating a cost-effective supply chain.

Warehousing and Distribution

Diligence in warehousing and distribution pays dividends for your supply chain. There are many opportunities that can cause costly mistakes, there are just as many to excel.

Freight is the life’s blood of both buyers and sellers, therefor faithfully adhering to regulated warehousing and distribution procedures help logistics partners earn trust and strengthen relationships.

A breakdown of value-added warehousing and distribution services include:

• Cargo Packing and Crating
• Pick and Pack
• Labeling+ Barcode schema:
  + Label materials
  + Label placement
  + Complementary technologies
• Vendor Assembly and Consolidation
• Kitting
• Visual Inspection Services:
  1. Inspect the carrier for cleanliness, dryness, ventilation, and cargo separation to be sure the vessel is appropriate for its designated cargo.
  2. Report on markings, type of packing (bulk, cartons/drums, etc.) and a count of goods.
  3. Confirm that a valid mate receipt (document signed by an officer of a vessel evidencing receipt of a shipment on board the vessel) was received.
  4. Verify that units match those listed on the order description.
  5. Check packages and labels for correct dates and batch numbers as well as supplier certificates.
  6. Document when and where product was loaded, and the processes used to do it.
  7. Maintain a time log that includes dates and times of arrival, departure, loading, and delays (citing the reasons for the delays). Descriptions of loading gear and weather conditions should also be listed.

Managing Customs

In simple terms, customs brokers produce documentation for shippers to prove that the required customs procedures have been performed and the goods have cleared for shipment when entering or leaving a country.

If warehousing procedures aren’t complied with properly, the warehoused freight waiting for clearance might instigate extra fees. This can add up to hundreds or thousands in avoidable shipping costs.

Whether importing or exporting, the documentation is extensive, plus laws vary from country to country and port to port.

Time, money, and relationships can be compromised without the proper attention from a licensed customs broker as logistical errors can easily be made.

Required documents for importing or exporting cargo are:

• Purchase order from buyer – The terms include:
  • Price
  • Quantity
  • Quality
  • Description
  • Latest ship date
  • Mode of transportation

• Sales Invoice – An example sales invoice may include:
  • Clear description of the item
  • Quantity
  • Value, in foreign currency and U.S. dollars
  • Country of Origin
  • Where it was purchased
  • Names and locations of buyer and seller
  • Address of the person or business the goods are being shipped to

• Packing list – A packing list may also:
  • Accompany an insurance certificate
  • Be used to issue a Bill of Lading
  • Contribute to electronic export information (EEI)
  • Help customs officials verify goods

• Shipping bill
• Bill of lading
• Bill of entry
• Certificate of Origin

Other requirements may include other documentation specific to the buyer, or financial institution, or Letter of Credit terms per importing country regulations.

When negotiating for an appropriate freight forwarder, it’s imperative to exercise due diligence and research whether a given forwarder has experience and is knowledgeable enough to handle your particular customs brokerage needs.

If not, consider splitting the tasks between a separate customs broker and forwarder. Though the costs may rise, the price of inadequate or negligent customs brokerage is not worth the risk.

Insurance

Due to the inherent nature of unforeseen problems arising despite best hopes, whether accidental or instigated, the need for insurance is a must in freight logistics.

Industry experts cite that, cargo theft is a $30 billion a year business. While this is indeed a serious potential threat to your freight, it’s far from the only bad thing that could happen to your cargo.

Also adding to the potential for loss or damage are:

• General Handling
• Bad weather
• Long extended voyages
• Continuous moving and shifting of cargo

Therefor protecting your cargo from its point of departure to final delivery warrants insurance coverage.

Because of the broad scope of goods that require transportation, it’s imperative you work with a partner that can set you up with a plan that best suits your cargo’s, and your business’s needs.

What Is The Most Important Part of Freight Logistics?

As you can see, freight logistics is a multi-faceted and intricate balance of elements all designed to help move your business forward. But the most important thing to remember is that it always involves engaging the right people with the right expertise at each step along the way.