• June 5, 2020

    Airfreight Vs Ocean freight

    Businesses that deal with international shipments are always faced with the dilemma of choosing between Ocean freight and Air freight at some point or the other. Although the two serve the same purpose, they are poles apart in multiple ways. Choosing to use one over the other is a highly conditional decision and boils down to a significant difference in cost and time.  Determining which one is better is undoubtedly a never-ending debate. Both of them come with their own set of pros and cons and that is the reason why companies must use a mix of the two in order to respect deadlines and budgets.  To aid the decision-making process of air freight vs ocean freight, it is imperative to consider the following factors: Cost: For most businesses worldwide, cost is of prime importance when it comes to shipments. It is a well-known fact that ocean freight offers more capacity while being the less expensive of the two options. Whereas air freight is faster and safer. But air freight comes at a very hefty price. To put that into perspective by example – a package that costs $200 by ocean freight can cost up to $1000 by air. That is why most professionals recommend that air freight be used when it costs less than 15-20% of the value of the goods.  All that being said, for ocean freight, when a package is small and less than a full container’s load, its cost is calculated in cubic metres. A lot of times, this can actually cost a lot more than air freight for the same package. That is why it is important to do a thorough calculation and cost comparison before choosing the mode of shipment. Time: While cost is a primary condition, time is an equally important one. When...
  • For companies with an import-export oriented business, reducing transportation costs has always been a critical priority. While traditionally cutting down on transportation costs was quite a challenge, various technological advancements have made it possible to manage costs better and drive savings.  Today, there is a wide range of ways in which you can optimise transportation costs, enhance your supply chain procedures and save money for your company. Strategies for shrinking logistical expenses can range from streamlining inventory levels, optimising warehouse space, mapping shipping networks, optimising shipping routes, investing in improving relationships between suppliers and other stakeholders etc. A key ingredient in reducing logistics costs is to leverage the latest technology available in the best way possible, and increased efficiency and savings will follow. Reducing costs with a logistics software The emergence of automation technology, mobile devices, robots and a spate of other technological advancements are rapidly changing how goods are shipped from one place to another. Companies are increasingly turning towards various supply chain solutions to leverage the opportunities that have come to life through these innovations. These solutions are playing a vital role in modernising and optimising logistics operations.   One such solution that is transforming the supply chain industry is logistics management software. These cloud-based systems are helping companies streamline their operations and build cost-effective and resilient supply chains.  This article explores how logistics software can help you reduce transportation expenses while simultaneously revealing growth opportunities.  Why do you need a logistics management software? Traditionally shippers have been relying on emails, spreadsheets and phone calls to manage their supply chains. However, these traditional practices are not sufficient to get ahead in the market with ever-evolving trade environments, increasing competition and customer demands and rising freight costs. A logistics management software gives your organisation a toolset that enables you to...
  • In supply chain management, a combination of an efficient workforce, automation of particular workflows, and perfect coordination between various functions is critical to a smooth functioning supply chain.  Above all, there is always room for improvement and boosting business. Each time your business witnesses growth, the key is to proactively look for ways to improve the output by leveraging the resources at hand.  This article looks at some crucial tips that can enable you to manage your logistics more effectively.  Here’s a list of essential tips for logistics management and resource optimisation:  Accurate planning:  The first step towards boosting efficiency is planning well. Planning is an umbrella term encompassing multiple factors such as procuring the goods, managing storage facilities, prompt delivery of the cargo to the right destination, etc.  The other crucial factor is the cost involved in carrying out all the processes. A good starting point to plan well is chalk out a detailed flow chart of your end-to-end supply chain operations. The goal of proper planning is to get more work done in the least possible time while simultaneously, driving cost savings and maximising profits.  When we speak of prompt planning, it can be regarding a product, an unprecedented situation, an internal disruption or a disruption caused by external factors such as last moment cancellation of an order, natural disasters and the like.  It’s best to have an emergency plan at hand, which can be executed efficiently in times of distress.  Automate workflows:  Automation technology has transformed how supply chain management operates and is an excellent enabler of supply chain efficiency. These solutions can play a vital role in driving process optimization. Today, several logistics management software that automate multiple workflows have been developed and are widely used.  For instance, these systems can provide automated updates on your...
  • The logistics and supply chain industry are among the most dynamic and complex industries involving several bottlenecks, movement of assets, reliance on third parties, etc. Above all, the industry is prone to disruptions and more particularly unforeseen events, making a solid case for why companies are increasingly turning towards data-driven supply chains.  The Globalisation of every aspect of the industry, including shippers, consignees, trade routes, sourcing locations, etc. have made it crucial to leverage data to gain a competitive advantage and stay ahead in the market.  Data-driven logistics  While the shipping and logistics industry is transforming due to changing regulatory rules, emission concerns and political tensions, you can optimise resources, drive savings and efficiency by leveraging logistics analytics. Adopting a system that enables logistics analytics will allow you to cut down on your operation costs, make informed decisions and gain visibility over your supply chain, irrespective of the circumstances.   You can gain valuable insights through various data points a logistics analytics software captures and use it to streamline multiple functions, offer better customer service and more.  By adopting a data culture approach, you are potentially eliminating the scope for guesswork and making decisions based on facts backed by advanced data analytics. It’s vital to note that a data-driven approach enables you to consolidate your various supply chain functions which have been traditionally fragmented.  With the help of a logistics data management system, you can anticipate peak and lean periods, potential future supply shortage, and respond accordingly.  Let’s take a look at some of the ways in which you can use data and analytics to optimise various logistics functions: Performance management Logistics data analytics dashboards enable you to keep track of and improve the performance of various parties involved in your supply chain. For instance, the system captures every single data...
  • To keep your supply chain running smoothly, it’s essential to have visibility and control over your supply chain operations. By having access to real-time data on your operations, automating repetitive tasks and gaining insights through big data analytics, you can build a flexible and robust supply chain network.  It is here that a competent logistics management system steps in. Besides virtually streamlining and automating your various supply chain functions, the system helps you bring down costs significantly and allows your team to focus on more meaningful work.  Here’s a list of some ways in which a logistics software helps your business:  It allows you to secure the best possible freight rates. You can monitor the status of all your shipments on a single dashboard.  It enables you to manage both inbound and outbound logistics shipping schedules. It helps you make informed and data-driven decisions based on predictive analytics, which help drive down costs.  Logistics management software does all of this and more. However, finding a top performing software that suits your business perfectly requires a bit of research.  Let’s look at what logistics management software is, what kind of system will suit your business, and the critical factors you must consider before choosing a system.  What is Logistics Management Software? Logistics management software is a tool that enables you to streamline your logistics operations and gain visibility over multiple supply chain functions all at the same time.  The system helps you drive process efficiency and significant cost savings by leveraging intelligent, technological solutions.  A competent logistics management software helps you virtually manage the following aspects of your business:  Production cycle planning  Capturing information related to supply chain Inventory management Warehouse management Product packaging and labelling Scheduling shipments  Getting quotations for shipments Tracking shipments till they reach its destination Freight invoicing...
  • An integral part of running a robust and agile supply chain is having end-to-end visibility over the entire supply chain network, particularly on the movement of your goods. While traditionally tracking containers required you to visit shipping companies’ websites and manually check for your container’s location, modern-day container tracking systems have been quite a game-changer.  One key reason that container tracking has gained importance is that shipping goods is a long and complicated process. You would want to monitor your shipment to ensure that it reaches its destination on time in sound condition. If at all unpleasant surprises are to come your way, you can take timely mitigatory measures by exactly knowing the location of your shipment. To better understand the benefits of container tracking software, it’s vital to comprehend party logistics and their respective container tracking considerations. Different logistics parties involved in supply chain management: Tracking shipping containers wouldn’t have been so complicated if only a single party and transportation mode were involved in getting the ships from its point of origin to its destination. If only one party was responsible for the shipment, then all it would take was to attach a small tracking device to the container. This device could pick up real-time location information and report to the vessel’s IT hub; it could be further transmitted via GPS to the satellite.  Unfortunately, the process isn’t this simple as it involves four different logistics parties playing a different set of roles. First-party (1PL):  It’s the party that has manufactured the goods that need to be shipped using shipping containers. The first party is concerned with container tracking to a great extent as any delays or disruptions in their containers’ movement will translate to a disturbance in their supply chain and inconvenience to their customer.  Second-party (2PL):  The...
  • Investing in an intelligent freight management software is one the best ways for shippers to streamline their supply chain operations, reduce freight costs and drive profitability.  While adopting a freight logistics software may not have seemed like a necessity when these solutions were new in the market, today, these systems have become a key enabler of smart supply chain management.  To stay competitive, you must adopt a system that best suits your business’s needs and leverage it to the greatest extent. However, choosing the right system is not as simple as it sounds.  While investing in freight management software, it’s essential that you carefully weed out sub-par systems and choose the one that genuinely optimises your business. You can make a confident purchase decision and increase your potential ROI by asking the right questions while evaluating a freight software solution.  To begin with, know what you want and what you truly need Remember that every freight management software provider’s goal is to sell you the software. But all platforms aren’t equal. While most of them have a set of standard functions which allow improved visibility into freight spend and one-touch RFQ management; the key is to pay attention to other features.  Some systems add value by offering analytics, actionable insights, real-time data and more. There are even systems that have the potential to be a one-stop solution for all your logistics needs.  Besides, the ability to use cloud-computing has paved the way for easy access and upgrading of systems making these solutions even more dynamic.   To ensure that you don’t fall prey to poor-performing systems, know your business needs and what you would expect from the system.   Here are some essential criteria to consider when considering an investment in freight logistics software:  Understand the limitations of your current system and...
  • Optimising operational efficiency and reducing costs are the key goals of every supply chain professional. Mismanagement in logistics can and often does result in excessive expenditures, delivery delays, missed deadlines and damaged goods.  Needless to say, if you want your company to stay financially viable and drive profitability, you must prioritise efficient planning and informed strategising.  In a world with increasingly high customer demands and fluctuating trade ecosystem, adopting smart logistics management solutions and practices can help you stay ahead in the market. You can either choose to implement these solutions all by yourself or seek help from third parties and optimise your supply chain functions.  However, if you decide to outsource a service, make sure that you are dealing with a competent service provider. By leveraging the right practices and tools at the right time, you can build agility and resilience into your systems.  What does a supply chain process look like?  Succinctly put, supply chain or logistics process means moving goods from one point to another. It could be moving goods from a manufacturer’s facility to a customer or the movement of raw materials to manufacturing plants.  A supply chain consists of a set of multiple activities and processes dealing with several stakeholders to keep the goods moving regardless of the circumstances. In contrast, logistics is a relatively narrow term referring to the flow of goods between two points in s supply chain, particularly in terms of transportation and storage.  What all is included in logistics and supply chain costs? Logistics costs generally include labour, storage of raw material and inventory, transportation and administrative expenses. This cost tends to vary depending upon the nature of goods. For instance, the logistics process would differ significantly for perishable goods as against imperishable goods.  When we speak of reducing the cost...
  • One of the best ways to ensure that your business keeps growing is to work towards improving your customer service. Be it shipping and logistics or some other industry; good customer service is critical to the growth of your business.  When offering a logistics solution, both the parties involved must benefit from the deal. The customer should be provided service that results in nothing, but satisfaction and this should be the case irrespective of how big or small, new or old the customer is. Besides, in shipping and logistics, exceptional customer service would mean consistent good service till the time you work with a particular client.  While exceptional customer service could encompass a lot of things, at its core, there are three critical elements to ensuring efficient customer service; those are as follows: Clear and open communication The very foundation of customer service in shipping, logistics, or any other kind of business is clear communication between the customer and the service provider. Especially in the case of logistics, where the customer is dependent on the service provider to know the status of their goods, there must be open and consistent communication. Open communication in logistics would mean sharing prompt updates on the movement of the goods, informing the customer about when the goods will be delivered, giving updates in case of any delays and disruptions and more. Generally, the level of communication expected by the customer is set right from the beginning. It simplifies the communication process between the parties and eliminates scope for confusion.  Thorough understanding of the industry One can offer exceptional customer service in the most real sense only when he is equipped with enough knowledge to address each query a customer may raise. Moreover, a mere understanding of the logistics industry is not enough. As a...
  • December 19, 2020

    Top 10 shipping lines around the world

    As a majority of the world’s goods continue to move by sea even today, the role played by shipping lines in global trade cannot be overlooked. It is these companies that have kept the international supply chains running for the longest time and have stood the test of time.  Today, several players have emerged in this space, with multiple USPs, offering reliable and efficient service to shippers across the world. In light of ever-proliferating options to choose from, we have put together a list of some of the most reliable, well-known shipping lines in the world. 1. A.P. MOLLER-MAERSK GROUP Founded: 1904 HQ: Copenhagen, Denmark Official website: www.maersk.com The Danish business conglomerate, the A.P. Moller-Maersk Group, is the largest vessel and container ship operator in the world. Maersk Line, APM Terminals, and Maersk Container Industries are its various core subsidiaries and are renowned for their transportation and logistics services. Their other subsidiaries include  Maersk Supply Services, Maersk Oil, Maersk Drilling, and Maersk Tankers. They are well-known for their contribution to the energy sector.   The company operates in over 130 countries and annually manages to ships around $675 billion worth of goods. The company owns and operates a fleet of five Maersk Triple E-class container ships. Each one of these ships has the capacity to carry over 18,000 twenty-foot equivalent units (TEU).  Track your Maersk containers in real-time for free here.   2. YANG MING MARINE TRANSPORT CORPORATION Founded: 1972 HQ: Taiwan Official website: www.yangming.com Yang Ming Transport Corporation offers global shipping and logistics services. Kuang Ming Shipping Corporation, Jing Ming Transport Company, and Yes Logistics Corporation are the subsidiaries of the company. Yang Ming’s fleet includes 101 vessels with an operating capacity of 7.74 million deadweight tonnage. The company operates in over 70 nations and has more than 170 service points....
  • When it comes to supply chain networks, bigger the business, more complex its supply chain management tends to get. Moreover, ever-increasing competition in the market and rising customer expectations have further added to this complexity.   While the market may have left organisations with herculean challenges to overcome, a crucial relief is the emergence of a spate of state-of-the-art supply chain management solutions. These solutions equip you to simplify your supply chain management process. Besides, when used right, the solutions allow you to identify new opportunities and boost business.  Here are some of the must-have tools for supply chain professionals: Supply chain management has several dimensions to it, and it’s vital to understand these varying aspects, the scope for improvement in each of them and how various SCM solutions can help your business. A thorough evaluation of how different technologies can impact your company and teams and drive efficiencies is a must.  Vehicle Routing and Scheduling (VRS) A significant aspect of ensuring efficiency while delivering goods is choosing the best route possible. Unfortunately, it’s not as straightforward as it sounds. To optimise your routes, you will have to consider a dozen different criteria such as traffic patterns, weather conditions, road speed limitations, elements such as how traffic signals can affect fuel consumption and more.  This is where a Vehicle Routing and Scheduling (VRS) software steps in. The tool is developed to help companies optimise their routes and choose the ones that will guarantee speedy delivery, minimum fuel consumption and thus, be cost-effective.  Delivery Experience Management (DEM) A Delivery Experience Management product provides you visibility over all your international last-mile shipments. The tool is designed to analyse data and offer you actionable insights. It can thus, equip you to make the right decisions and address problems at scale.  A DEM solution facilitates...
LinkedIn
Share