There are many ways to get your goods to their destination; it is a vast industry that benefits many sellers and buyers.
Working with a Customs Broker
First, understand what a customs broker does and how they can contribute to businesses like yours.
We invite you to learn more about the differences between a customs agent, a freight forwarder and a complete logistics provider.
We also need to understand:
when to clear imports to deal with a customs broker
know how to work with a broker to help with business success.
Set yourself up for success
Working with a broker is just one important step in the process. A strong partnership implies that both partners make every effort to make the relationship a success.
For importers and exporters, this means:
Working with border service agencies to create a positive profile
Creating and maintaining a compliance program
Understanding the basic principles of tariff classification
Of course, whether it’s a broker or a freight forwarder, both will deal directly with the shipper. Good officers will help him through this process, but in a slightly different way.
A broker puts shippers and transporters in contact and provides logistical support (he will take care of the financial aspect and will provide technical support). For example, they will not be present in person and will not necessarily inspect the goods or label them.
On the contrary, the freight forwarder will be on site to provide practical support. Most of the time, they provide instructions on how to prepare packages based on the type of shipment. They must be able to adapt to international directives that vary greatly from one place to another.
Insurance is very important in the transportation industry. For example, it is used to protect goods transported in the event of damage, theft or loss.
Brokers are not required to purchase insurance because they are not responsible for what happens to the goods and they never own the goods.
For freight forwarders, they must have one because they are again responsible for the goods. They must have all types of insurance, from carrier insurance to equipment and vehicle insurance, and more. It is completely illegal for a freight forwarder not to own one.
Whether you are a buyer or a seller, be sure to always check the insurance documents because without it, you will not be able to obtain compensation.
How to choose between the right broker or freight forwarder?
As a seller or shipper, the choice of a broker or freight forwarder is very important. Taking the first player is not enough because you can leave a lot out there and suffer big damage if they do it wrong. That’s why research is necessary to find the right person.
Having a good relationship with an experienced customs broker can facilitate the import process and help your business run better.
What is Third Party Logistics (3PL)?
3PL suppliers provide complete packaging, storage, shipping and fulfillment solutions for your supply chain. So, what is 3PL? Third-party logistics is a service that allows companies to hire third-party companies to perform tasks in their supply chains. 3Ps are used to fill gaps in your supply chain. Companies use their expertise, best practices and technology to improve your supply chain. Overall, working with a 3PL provider is more than just a relationship. It’s a partnership.
Reasons for using third-party logistics services
Wide area network and discounted prices
It can expand customers, penetrate new markets or create a positive customer experience. However, more and more companies are looking for effective external support and expertise to support their supply chains and gain a competitive edge.
Third-party logistics companies have a broader network than your company’s supply chain function as they are specialized in logistics. They will offer more volume discounts to customers and maintain an exclusive relationship with the logistics industry. All this can reduce costs.
By partnering with a 3PL, you can save on infrastructure investment by providing transportation, storage space, staff and technology.
They have the best expertise and experience
Predicting and adapting insider expertise in a complex market is not easy. Documentation, import and export, international compliance, shipping and economic regulations are the things a 3PL will know. Logistical support can help a company grow in the global market.
Reduced costly delays, reduced cycle times and easier entry into new areas are some of the benefits.
The flexibility of logistics outsourcing will allow your organization to focus on its core competencies. Your company can benefit from logistics expertise.
Increase flexibility and scalability
The advantage of third-party logistics in supply chain management is that it gives companies the flexibility to use resources according to their current needs. There are no redundant investments or wasted resources as sales fall and demands increase, and companies can evolve.
Companies can use third-party logistics to reach markets where they are not present. This allows them to manage inventory in a new market without spending money on storage, equipment or labour to save money and learn the logistical nuances of a new market.
Like all other aspects of international trade, when you ship goods abroad or vice versa, the law must be respected. This is the second important point that makes the difference between a trucking broker and a freight forwarder. Take the bill of lading, for example. This document is mandatory for the carriage of goods by sea. It serves as a contract and receipt proving the shipment.