5 Reasons Separating The Best Freight Forwarding Companies From Other Shipping Companies

Posted by Ronald Rathbone 26 November, 2009

Freight forwarding companies expedite and facilitate the growth of national and international commerce. These freight shipping companies allow consumers all over the world to reap the benefits of the global economy. Few of us consider the logistics that freight companies must manage to move goods from a factory ten thousand miles away, or even one hundred miles away, from its ultimate destination. A shipment of fragile electronics must move from factories in China to living rooms in Bakersfield, Chicago, Ft. Lauderdale and all points in between. What is more, shipments of these products worth millions of dollars must arrive at their destinations in the amounts that they left their points of origin and in proper working condition.

Like any other business or industry, there are freight forwarding companies that excel at moving goods from one place to another, ensuring that their clients are well taken care of and anticipating difficulties that can interrupt the flow of business. When any aspect of their business is threatened, they don’t make excuses; they proactively look for and implement new processes to alleviate the threat. In a business where competition is fierce and results determine whether a freight forwarding company founders or flourishes, here are some reasons that separate the best ones from other shipping companies:

1. Automated Processes

Automated processes streamline the mundane tasks of shipping products from one place to another and allow successful freight forwarding companies to focus on innovation. Automating the tedious aspects of shipping, tracking and delivering freight allows the best freight forwarding companies to lower costs, deliver consistent results and accomplish more with less.

2. Cutting-Edge Information Technology

Unbelievably, there are still freight forwarding companies that rely on DOS-based IT solutions that were state-of-the-art solutions 35 years ago. The reluctance of these shipping companies to invest in new technology will be their undoing. Freight forwarding companies that want to remain competitive are always looking for new IT solutions that alleviate difficulties for their clients and themselves. Integrating these new technologies increase efficiency and create much-needed transparency for the companies and their customers.

3. Forward-Looking Leadership

If the people making decisions for a freight forwarding company only make choices based on what worked in the past without pursuing new ideas to expedite shipping and reduce freight rates, they severely limit their ability to attract new clients. Their inability to think outside the box to solve problems and explore new industry solutions restrict their ability to adapt to changes within the industry. The companies that will survive and thrive in any economic conditions have leadership that isn’t afraid to make decisions based on what will be best for the company and its clients rather than short-term gains.

4. Innovative Customer Service

The new tools available to freight forwarding companies make it easier than ever to communicate, educate and work directly with clients to solve problems, illustrate technical aspects of the shipping process and build lasting business relationships. The old 9-to-5 Monday through Friday business model has become obsolete as clients need service and access to real-time shipping information 24/7. Successful freight forwarding companies never stop exploring new ways to provide customer service and maintain their competitive edge.

5. Empowered Employees

Shipping companies that train their employees to think independently and empower them to solve problems have a huge advantage over those conditioned to rely on supervisors to make decisions all the time. An employee empowered to help clients in real time instills confidence in clients, eliminates small problems before they become large problems and inspires the employee to invest more of themselves in their job. In a time when customer service has been relegated to phone menus that gather information and dispense canned responses or has been outsourced to call centers where people read from scripts, empowered employees taking care of business make the difference between losing or retaining clients.

The business model of freight forwarding companies and how they serve their clients has changed considerably over the last decade and is expected to change even more for the near future. The successful ones will adapt to the changing needs of clients and the industry and prosper. The ones that resist adapting to new industry methods will not realize their mistake until it is too late.

Ronald Rathbone has years of experience in freight forwarding companies. He and his partners used this experience to launch Freight Corner, LLC, a freight shipping company that handles the entire shipping process. Freight Corner, LLC, is a one stop shop for freight shipping with freight rates marked down 75% or greater.

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