International trade has grown exponentially in recent years. Thus, with it comes the need for a system of logistical and economic efficiency to transport goods around the world.
One of the main concerns of companies operating in the global market is freight management. After all, this can represent a significant portion of the final cost of exported and imported products.
One of the first steps to optimize freight management is the choice of the most appropriate mode of transport for each type of cargo. It is necessary to evaluate the characteristics of the products, such as weight, volume and fragility, in addition to considering the distances to be covered and the logistical possibilities of each region.
The correct choice of transport modal can generate cost savings and increase the efficiency of global logistics.
What is an international freight quote?
The international freight quote is a cost estimate for transporting cargo between two different countries or regions. This quotation can be requested by companies wishing to import or export products and is provided by international shipping companies, known as freight forwarders.
To receive an accurate quote it is necessary to provide detailed information about the cargo to be transported, as well as the destination and the desired delivery time.
The details of the cargo include information such as weight, dimensions, type of packaging and its particularities, such as whether there is a need for refrigerated transport or dangerous cargo.
The cost of transportation takes into account factors such as: the distance to be traveled, the infrastructure available in the countries of origin and destination, local taxes and regulations, the availability of cargo on ships or aircraft and the value of the cargo.
It is important to note that some companies choose to work with SPOT quotes (case by case), more suitable for those who have fewer processes and more people acting; or IDB (contracts) that are those of long validity, suitable for those who have many processes or few people in the operation.
How to measure logistics efficiency?
Logistics efficiency can be measured in a number of ways, including the accuracy of the quotation provided, the response time of the transport company, the efficiency of the transport and the fulfillment of delivery deadlines.
If the freight quotation does not accurately reflect the costs and expenses of transportation, the logistics operation may result in additional costs for the contractor. Therefore, it is important for the agent to consider all the expenses involved in the process.
Transportation efficiency is another important measure. If the freight forwarder has a well-established infrastructure, ensuring that loads are delivered quickly and securely, this can be an important factor in choosing them again at the next opportunity.
Of course, if the shipping company is able to meet the promised deadlines, it will certainly be considered more efficient than the companies that fail at this point.
How to reduce costs and increase logistics efficiency?
One of the ways to reduce logistics costs is to use a platform capable of gathering different quotes in one place. This allows the company to make comparative analyses of the quotations received and choose the option that best meets its transportation needs.
In addition, it takes into account the accuracy of the quotation, the company’s response time, transport efficiency and compliance with delivery deadlines.
Another way is to optimize transportation routes and consolidate loads whenever possible. Since this can help reduce transportation costs and increase logistics efficiency.
In this way, importing and exporting companies can make the most of the use of cargo space and minimize the number of transport vehicles required.
Manage from KPI to measure logistics efficiency
The adoption of management tools to measure the performance of the area is essential to clearly show the optimal performance of logistics efficiency.
In this sense, we emphasize that the practice requires the centralization of data in one place so that it can start with the analysis uniting the data obtained with the feedbacks collected among the other actors of the logistics process such as suppliers and operational partners.
Adopt multimodal strategies
Multimodal strategies are great alternatives for cost reduction, as very large shipments can be divided into other modes.
This means that a cargo of 100 tons can be distributed as follows: 10% via air modal and 90% via sea modal.
Invest in training for your team
Training is the first step to be efficient in any area and logistics can be no different. A constantly trained team, updated with the latest market trends will certainly know how to better evaluate the options and will know how to identify problems that may arise.
Centralize your international freight negotiations in one place
One way to be efficient in logistics in 2023 is to centralize quotations on platforms that qualify freight forwarders (and other service providers) in one place, in the same layout, making the routine of those who quote freight much easier, whether it is time to analyze quotations or when filtering for better service providers.
It is possible to seek long-term partnerships and establish volume agreements that allow you to obtain discounts that directly reflect on transportation costs. In addition, it is important to evaluate the possibility of using local carriers, which can offer more competitive prices.
What are the global challenges for the logistics sector in 2023?
The use of technologies for the logistics context is still a challenge to be overcome. That’s because tools like Blockchain and Artificial Intelligence promise numerous benefits for logistics efficiency. However, such tools are not yet a global reality.
Blockchain, for example, can be used to ensure the integrity and security of documents related to logistics processes. Artificial Intelligence, in turn, can be applied to optimize transportation routes and reduce delivery times.
Regardless of the popularity of applications, investing in technology and information systems is essential. This includes cargo tracking systems, inventory and carrier management software, and market information systems. Thus, it is possible to predict the demand for international shipping and adapt your business strategy accordingly.
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