To ensure effective ocean shipments, which means the cargo arrives on time, intact and under budget – the type of goods, time of the year, and ultimate destination of your cargo are just some factors to consider when contracting with ocean carriers.
The most cost-effective shipping method is not always the most obvious one. Speed is the name of the game in supply chain management. Shippers want to get cargo to and from the distribution centre in the shortest period of time at the lowest cost possible.
No matter where you ship across the globe, knowledge about the factors that affect the cost and speed of your shipments can help you improve the efficiency and reduce transportation costs.
To ensure getting better freight rates, here are a few points to keep in mind –
- Freight rate negotiation – shipping is just not the kind of business where the lowest price is always the best choice. When initiating the freight procurement process, keep in mind that every step should lead you towards a cooperative and advantageous business relationship. How you tender your ocean freight rates have a significant effect on the long-term relationships. Price punching is short-sighted and a bad strategic practice.
- Improving communication and procurement practices – it is necessary to give a clear explanation of what the tender is about. Also, to clearly discuss the objectives, giving your suppliers a proper feedback and keeping a personal contact with the carriers is important. Strategic relationships and collaboration is the key. Not many companies approach ocean freight tenders or any logistics tenders this way.
- Selecting the right route in terms of cost & taxes – you can tender however you like and use all the procurement in the world available. But, it is all useless and just on paper if you do not audit your freight invoices. Most companies don’t quite do that and procurement only cares about the assumed savings.
Gati helps you in going the distance so that your business can go further. Gati – International provides end-to-end logistics solutions to and fro from APAC and SAARC nations.