How to Transport Consolidated shipping
How to deliver goods from point A to point B? This is a common question for entrepreneurs when a partner or client agrees to purchase products and requires delivery within a specific timeframe to a designated location. The entrepreneur must evaluate all transportation options to achieve efficient delivery.
Let’s consider a scenario where the cost of product delivery is included in its price. This means that if the delivery expenses exceed the budget allocated for transportation, the profit will consequently decrease.
How is the Cost of Consolidated Cargo Transportation Formed?
The most optimal scheme in this case is to find an affordable tariff for freight transportation across Europe. But what does “affordable tariff” mean? Let’s logically consider what factors contribute to the price.
- Volume and Weight of Goods
The first factor to analyze is the volume and weight of your cargo. This determines the type of vehicle required for transportation. Once you calculate the approximate volume and weight, you have identified the first criterion for communicating with the logistics manager of a transport company. - Delivery Deadlines
The second, equally important criterion is the delivery timeline. Meeting these deadlines is critical, as missing them may result in hefty penalties to partners or, in worse cases, the loss of key clients. - Transportation Route
The third criterion is the transportation route. Additional considerations include whether it is an international or domestic delivery, weather conditions that might increase the risk of missing deadlines, as well as potential force majeure and other unforeseen events.
The above criteria are not exhaustive, but they are sufficient to start negotiations with transport companies. The most common strategy in the logistics market is to attract and retain clients through quality service and competitive pricing.
What does the logistics manager do to create an appealing commercial offer for the client? They start by analyzing the provided information based on all specified criteria and then look for a suitable vehicle that has available capacity.
Significant cost differences arise when a vehicle is partially empty, especially for long-haul routes. A skilled logistics manager finds multiple clients with similar needs, consolidating their goods into a single shipment. This method, known as “consolidated cargo,” involves serving several clients simultaneously. Ideally, the manager will find enough clients to fully load the vehicle at the point of departure and plan a route that matches the delivery points of all involved parties.
In other cases, the manager may identify additional clients along the transportation route to optimize cargo loads. The talent and professionalism of the logistics manager largely determine the competitiveness of the commercial offer provided to you.
Order Consolidated Cargo Transportation from Professionals
When choosing a company for transportation, it is essential to assess how effectively the organization can consolidate cargo. If they excel in this area, the pricing will likely be most favorable for you.
A critical takeaway is that the ability to form consolidated cargo shipments signifies a large fleet of vehicles in the region, a strong reputation as a reliable company that other transporters trust and significant industry experience. Such attributes are essential for building a good reputation with both partners and clients.
Additionally, it is worth noting that the developments described above naturally lead to a base of regular customers not only for consolidated cargo transportation but also for any type of business relationships within the field of international logistics.