What is the value of international freight forwarding? Freight forwarding companies that don’t understand will be eliminated

What is the value of international freight forwarders?

Many freight forwarders socialize around airlines and shipping companies every day, spending most of their time socializing.forwarding freight Relationships with upstream capacity service providers are key to its survival. Positions and freight rates are the core of their concerns and competition. After getting the resources, they only need to take care of a large group of sales staff to sell.

There is no high threshold for freight forwarding. You just need to ensure that the company has enough manpower. The larger the volume,fcl logistics the more prosperous the company will be. But they may obviously not understand the real value of freight forwarding. The main economic profit data of freight forwarding comes from service fees and intermediate operation and management links.

Service fees come from customs declaration, inspection, space booking and other links. However,cfs charges with the merger of customs and commodity inspection and electronic customs declaration, the profits of this business have dropped to a freezing point.

The profits brought by cost optimization in the operation process are now the main source of profits for freight forwarders. The core of the existence of international freight forwarding is due to the opacity of frequent changes in freight rates, difficulty in guaranteeing large warehouse variables, long and complex transportation chain links, incomplete visualization of cargo transportation trajectories, failure to effectively connect upstream and downstream industry data, and manual reconciliation of offline transactions. and the existence of an accounting period.

What are the core competencies of international freight forwarding?

Many international freight forwarding companies provide the services of air freight forwarding, that is, the services of trunk transportation agents. This is the most expensive of all shipping, but prices are highly transparent. In fact, its competitiveness is not strong.

In fact, most freight forwarders in our country are full of a sense of crisis. The competitiveness of trunk transportation is actually our social relationship business and strong customer acquisition capabilities. Analysis of today's freight forwarding industry. These two core issues of enterprises are not that competitive. .

From the perspective of the cost of forcing customers, traditional freight forwarding is sales-oriented, and the main goal is to win customers and make bulk first and then make money. However, they found that there were fewer and fewer production suppliers that could be found directly, and there were more and more customers from the same industry. Customers with increasingly strong bargaining power meant that the living space of agents was constantly being compressed.

From the perspective of relationship-based business, it is not difficult to find that the informatization level and operational efficiency of the entire upstream transporters have undergone profound changes. It is difficult to bring in a large number of orders by relying on human relationships alone. Now profits are decreasing and the cost of maintaining relationships is increasing, so sooner or later the relationship business will be eliminated.

In order to solve the early crisis, a few freight forwarding companies have considered optimizing logistics costs. Finding separate service providers to cooperate in all aspects from export customs clearance, china-hong Kong transportation, air routes, last station services, etc. to achieve the best results is equivalent to building a dedicated line.

Moreover, smart logistics tools are becoming more and more popular. Using smart logistics to reduce costs and increase efficiency has also rapidly increased corporate profits. Therefore, the core competitiveness of international freight forwarding now becomes optimizing logistics costs and using smart logistics.

3. The transformation and development of the industry represents the end of an era.

Before 2010, the entire international freight forwarding industry was based on the currency market. Factories prepared the goods, then found their own warehouses, channels, and logistics companies for distribution. As long as the freight forwarder's price is not too outrageous, after the goods are sent out, enough profits can be made to support many freight forwarders who resell to each other.

This is an era of pros and cons. The advantage is that my country's freight forwarding industry is developing rapidly and has introduced a large number of talents. The disadvantage is that people think it is easy to make money in this industry and ignore the deeper issues of their own business development.

With the development of mobile Internet and cross-border e-commerce, the information gap between industries is rapidly narrowing, business information asymmetry is getting smaller and smaller, it is increasingly difficult to make money with a single price difference, customer needs are more diverse and integrated, and industry information The technical level is getting higher and higher, and the requirements for practitioners are getting higher and higher.

With the emergence of e-commerce platforms, core sales platforms, technology platforms and other elements, as well as the increasingly obvious trend of cross-industry cooperation and deep integration of upstream and downstream industries, many new directions and topics around vertical industries, subdivided categories, comprehensive services, etc. are worthy of attention. We dig deeper.

freight forwarders shipping companies upstream capacity service providers

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