What will you do when your freight forwarder is not able to meet your expectations? How will you make the tough decision of switching your freight forwarder after all these years of service? At the back of your mind, you know fully well that the relationship with your freight forwarder is the result of their understanding of your company’s processes, requirements and future aspirations. However, with the things not appearing to take a positive turn, you must make the move and terminate your contract with the freight forwarder.
Read the below 4 points signs which indicate it’s high time to make this important shift in your freight operations –
Problems that have no end
The first question you must ask while taking this decision is – How many times the same mistake has been repeated in the recent times? It is understandable that there would be situations which no freight forwarder would be able to overcome. You must take the signals seriously when the service levels are not improving and there seems no end to how this problem will end. Good freight forwarders always foresee the shaky waters and customize the services for your business. When your age-old freight forwarding partner doesn’t seem to make any amends, it is time to bid goodbye.
Deteriorating financial condition
Freight rates are dependent on multiple variables like oil prices, fluctuating market demands and so on because of dependency on the global economy. In between all this, your freight forwarder’s economic condition also suffers. When the crisis hits your freight forwarder, how quickly they can overcome, determines the overall condition of your business. However, if the situation doesn’t seem to improve, you will see shipments getting delayed and more than usual pre payment requests indicating financial instability. You should never delay your decision in ending your relationship with a freight forwarder in such situation.
Is your freight forwarder ready to adapt?
Supply chain experts always recommend challenging your freight forwarder with this question. Your business needs are bound to vary quite frequently since the market is rapidly changing. As a business owner, you might feel the need of expanding into a new territory in a quick span. Is your freight forwarder capable enough or ready to evolve with your business requirements? If the answer is yes, then you must never hesitate in sticking with them. And when there is denial, you should look for a freight forwarder who has the skill and capability to provide support in this big hour of need.
Do they have access to modern technology and market intelligence?
The freight forwarder must have access to real time market intelligence to sustain the rapidly changing scenarios. For taking quick action on these market triggers, you need to check whether your freight forwarder owns the latest systems for tracking the shipments and take required steps accordingly. This way you will have greater access to the market and potential to make great use of your resources. If the freight forwarder doesn’t have the capability, you know what you need to do.
It is easy to conclude by going through the above four points, you would be better placed in making the right decision of when and why to switch the freight forwarding partner. Make sure you are not caught unprepared when the times are difficult in the market, align with the best freight forwarder whom you can trust and who is flexible enough to cater to your needs.
Holisol is a leading supply chain organization providing solutions in retail (end-to-end fulfillment), Auto & Engineering (packaging & supply chain) and Consulting. Holisol works on the value proposition of Design-Implement-Manage to offer customers an experience of working like their own extended team, with affordable strategic and operational expertise.
Holisol has a workforce of +300 supply chain enthusiasts who are continuously building value through leadership, innovation and relationships. For more information visits us at www.holisolscs.ae
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