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  • Imagine you have 6 vendors for a particular service with the same offering, but you can buy from only one. How do you ensure that you get the best price? You mostly do simple negotiation. In simple negotiation, you call or email each vendor and ask for a quotation. Once quotes are in, you speak to the top few vendors to negotiate and then you finalize. Most buyers believe that they are the best negotiators. But that’s before they find out about compounded negotiations/freight procurement solutions. What is Compounded Negotiation? Think about how compounding works to give you the best return on investments against simple interest. The underlying idea is to make each unit of value chain work all the time. In case of money, it’s the units of time that force growth on each value block which is money. This kind of compounding is what a reverse auction process forces on each participant all along the bidding process. The beauty of this process is how each vendor’s action triggers multiple ones on one competition that is self-perpetuating. The entire race to quote lower ends only when the auction ends. Best compounded negotiations are done in a computer-assisted environment since such systems are free from fatigue and bias that humans are prone to. In GoComet’s reverse auction process, for instance, each vendor submits their quote on the internet-based platform. Then they are shown their own quote rank (L1, L2, L3 etc). Making use of the psychology of the vendors, they are encouraged to reduce their quotes to win the business. Hence L3, L4, L2 try to come to L1, if L1 becomes L2, they again try to come to L1. This is continued until bidding time is over. This process ensures that each vendor is transparently competing with every other...
  • “Ah! I can hire one person to do that job instead of using technology” We hear this and we cringe in fear. This is a sure-shot way to oblivion. History has shown enough that you can’t stop a change whose time has come. If hiring one more person was a substitute for technology, we’d still be riding horses instead of sending emails. We see Googles, Apples, and Ubers of the world spending billions in automation and knocking off established players from the business landscape. Ask yourself? If any company would ever give you a run for your money, would it be on the back of technology or would it be because they hired one more person? Now you know why we cringe. At no point do we mean to say that humans are not effective. But the slowest airplane beats the fastest car hands down when it comes to travel speed. It isn’t fair to even compare humans to technology. It makes much more sense to train them to work with technology and drive change than resisting it. Managing others, analyzing data, applying expertise, and doing unpredictable work is better left to humans and is less likely to be automated in the short run. Even there, one wouldn’t risk making an assumption that they won’t get automated eventually. Visionary leaders have this clarity, they are the first movers. When it comes to adopting technology that can offer them a competitive advantage. Why wouldn’t they? In time everyone adopts, ones who start early gain big. We saw this play out in front of us as we have gone about showing GoComet.in, World’s best freight cost comparison platform to the industry professionals. HINDALCO, Sun Pharma, Pidilite, Polyplex, Indorama, Sapmer, VVF lapped it up instantly, no long debates. They are gaining every day....
  • There are a few things to take into consideration while choosing the best method to ship your goods. Choosing the right service between air freight vs sea freight will help you bring down costs and bring inefficiencies in your shipping process. Cost / Price As a business owner, before shipping goods, you need to check out all the costs associated with shipping. Most businesses ship the goods via sea freight because it is cheaper than air. But if you want to deliver goods urgently, you need to go with air freight. A businessman who has to initiate frequent international shipping needs to be educated about everything that is related to shipping. Airlines bill you by chargeable weight. Chargeable weight is calculated by factoring the weight and size of a shipment. Sea carriers charge per container. There might also be Terminal Handling charges levied by ports. Exporters / Importers should note that there are destination charges that need to be considered. Whether shipping by air or by sea, there will be customs clearance and destination port fees. While the actual shipping cost of sea freight is usually cheaper than the shipment cost of air freight, the warehousing fees at seaports are much more expensive than those at airports. Speed / Urgency of Shipping Air freight is the fastest way of moving goods. Businesses who want their goods to be delivered quickly should choose air freight. Shipping by sea takes around 7-8 weeks in most cases. Ships are getting faster with technology, but yet they do not solve the urgency of shipping requirements. Reliability Seasoned import/export business needs reliable shipping, whether its air or sea. Air freight is the fastest is mostly on time. Flights might get delayed due to extreme weather conditions. Such delays in air shipping are minimal. Sea carriers...
  • If you are in the manufacturing business and want to export your goods to other countries, this freight service article is for you. We will discuss the three modes of freight services used for shipping abroad and also throw some light on choosing the best mode of shipment based on your type of business or shipping consignment. Different types of freight services For the domestic or local movement of goods, the best options for transport are road and railway. You can ship your goods internationally using multiple channels – for wholesale shipping or shipping to distant countries, the best option is to go by Sea or Air. There are three types of freight services for International shipping: Courier services Companies like FedEx, DHL and UPS offer couriers that deliver from door to door. For shipping a small quantity, you’re most likely to go with a courier service. Personal items and gifts like rakhi, mithai and important documents are some products for which individuals or businesses use courier services. Air Traditional air freight is an established way to move goods worldwide. Your heavy cargo is loaded on a plane and flown to another country. Airfreight service is the fastest way to ship goods worldwide, but it might not be the cheapest. Sea Sea freight service is often the cheapest method of International shipping – but it takes the most amount of time. It can take months for your goods to arrive at your destination port and also includes the risk of mercurial sea weather which may lead to delays in delivery. Which Freight Service Should I Use? There are a few things to take into consideration when choosing the best method to ship your goods. We’d say these are mainly: Price / Cost of shipping The price/cost is the first factor...
  • It is the year 2016 and the Indian Shipping and Freight industry will undergo a lot of changes, some short term while others maybe forever. Here we look at seven major global events influencing the freight industry in India. 1. China’s Slow Down In a nutshell, our exports to China will reduce and with cheaper Chinese imports our domestic companies will be hit. However, there is a positive side to it as well, this is making India a more attractive destination for manufacturing. In addition to electronic components, consumer electronics, electrical, equipment, industrial machinery and chemicals, India is also one of the largest markets for project exports from China. Now, if you are in the freight business, strong in China, you should start focussing on the project export business from China :). 2. Margin Squeeze: big surprise driver for change Freight rates are lowest in history. However, margins are not entirely dependent on freight rates. With the Internet penetrating every aspect of business as an information enabler, it is difficult to earn on arbitrage margins. As a result, most of the freight forwarders are moving into service-based models and for some, ocean freight is not a profitable business to be in anymore.  Relationships are shorter, spot quotes are on the rise, customers are more demanding and online sales competition from carriers is squeezing forwarder. 3. Global E-Commerce With Alibaba’s advent in India, people are predicting more international e-commerce players to enter into India. IndianTradePortal.com is also making the discovery of Indian Suppliers easier for international businesses. The Government is proactively searching for ways to enable global e-commerce. 4. GST On Imports, along with basic customs duty, there will be additional customs duty in lieu of CVD /Excise and the Special Additional Duty (SAD) in lieu of sales tax/VAT will be...
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