The forwarder and the supply chain

There are different definitions of the term "supply chain". The supply chain includes the planning, implementation and control of all activities related to the flow of materials and information from the purchase of raw materials to the final delivery of the product to the customer through its intermediate transformation. Each business organization is part of one or more chains, performing certain functions in it. The supply chain covers all processes and operations for the execution of customer orders, including manufacturers, suppliers, transport operators, warehouses, retailers and customers themselves.
Freight forwarders are part of this chain and are directly related to the transport activity in it. Transport activity is a complementary activity that serves the production and distribution of products. Optimizing transport costs is important because transport increases the value of products. There are many stakeholders who want to optimize transport costs, but this is not an easy process. The customers who are producers are also consumers using the services of freight forwarders, shippers, shippers. These services are available on the transport market and in order to be able to navigate you need to know it. In addition, many of the goods produced are spatially distant from their use, which requires a special organization of the transport process, often involving several carriers.
Here is the essential role of the forwarder. It operates in freight transport and in general its functions are to assist customers in connection with deliveries and to solve all their transport problems.
The freight forwarder could also be a carrier, but most often the freight forwarder is an agent who concludes a contract of carriage on his own behalf, but at the expense of his customers for a commission for him. There are several types of freight forwarders, depending on the type of transport. In road freight transport, rail transport, as well as in sea transport, customers have the opportunity to contact the carrier, but in air freight transport must use the services of a freight forwarder, because customers do not have the opportunity to contact him directly. Also - all cases of direct combined transport are organized and managed by a freight forwarder. Only he can issue a document that covers the entire transport distance.
Regardless of the type of transport, freight forwarders perform several main functions:
- the freight forwarder is specialized in the type of transport, therefore he chooses the type of transport and concludes a transport contract, for the implementation of which he is jointly and severally liable with the carrier and accordingly takes responsibility for late delivery or other problems during transport (damaged goods);
- the freight forwarder is responsible for the preparation and completion of the main transport service.
- also, the forwarder may undertake to complete and pack the transported goods by issuing a document indicating the contents of each package; with auxiliary transport operations transport to and from the main means of transport; loading / unloading of the main means of transport; with accompanying tracking of goods, when necessary; with insurance operations for products - cargo insurance.
The performance of the listed functions of the forwarder 100% facilitates the client.
The freight forwarder is in direct contact with the carriers, as well as with other partners involved in the movement of material flows, in order to ensure an efficient logistics network.
The specific functions of organizing the transport activity include the following:
• selection of the appropriate mode of transport, including combined transport, as well as of the respective carriers, as well as of suitable means of transport;
• Proper setting of transport tariffs, based on an appropriate and simplified classification of goods, types of shipments, weights and volumes, but also the real costs of transport, because none of the carriers seeks to avoid empty rates.
• preparation of the documentation for loading and unloading of the goods and organization of the payments between him and the client, as well as between him and the carrier;
• establishing contractual relationships with other institutions related to the activities of the industry, such as customs agencies.

One of the biggest problems arising from the transport process is caused by delays in deliveries. For each delay the carrier / forwarder suffers his losses, because in each contract there are corresponding penalties for late delivery. This is because the customer himself may suffer financial losses from untimely delivery. Good freight forwarders and their companies manage to overcome the delay and thus provide added value to their customers. The conclusion is that the transport process is the decisive condition for the successful implementation of the marketing strategy of the manufacturing company. The appropriate decisions of the freight forwarders regarding the transportation have an impact on the concluded contracts and on the overall costs for distribution and delivery, as the main goal is to optimize the costs.
Freight forwarding services are used a lot. Every freight forwarder aims to benefit his client by fully satisfying his needs. By using their services, each client benefits from their knowledge in various commercial areas. The forwarder's contacts with different carriers provide him with a greater opportunity to find cheaper transport for his customer's goods. Depending on the customer's needs (faster delivery / cheaper delivery), the forwarder decides which of his partners to work with. The freight forwarder must be sure of the carrier, especially when it comes to emergency delivery.
The use of forwarding services offers a higher quality of the service itself. This is a consequence of their formal or informal contacts with companies dealing with local and international transport, as well as banks, customs and other institutions. The forwarder has concluded contracts or so-called formal contacts with some of these companies. These contracts have certain price parameters, as well as time. In this way, the customer gets a better price than if he decides to contact the company directly.
The freight forwarder can provide warehousing of a product until delivery. When reloading goods from one vehicle to another, the goods may need to be stored for some time. That is why most freight forwarders and freight forwarding companies have warehouses. In addition, he carries out constant checks on the location of the goods and, if the customer so wishes, he can inform him about the movement of the carrier and assure him that everything is fine.
Grand Logistiks can offer you forwarding by air, land and water, and our many years of experience in the sector will ensure you optimize your transportation costs, which will make you more competitive.

Grand Logistiks
*Excuse us if there is an inaccuracy in the translation - a common translator is used.