Time to delegate!
When buying products located far from your base of operations, it’s often easier, more cost effective, and less risky to pass over control of logistics planning and execution to a licensed freight forwarder – somebody who can handle the pick-up, warehousing, and transitions from one point to the next.
… especially if you are shipping more than 1,000, crossing international borders, and picking up from multiple locations.
Let’s start off by getting clarity on a definition or two. I find that it’s really easy to get caught up in this world of freight jargon, because I’ve been working in this industry for over 30 years, and it has become my 1st language (with French as my 2nd, and English as my 3rd!).
What is “third party logistics?”
Third-party logistics or “3-PL” is a company’s use of third party businesses to outsource elements of the company’s distribution and fulfillment services. Pretty simple, right?
Our clients typically need highly customizable third party logistics providers that specialize in integrated operation, warehousing, and transportation services.
Get your 2010 Incoterms Definitions Chart HERE
The many aspects of a successful Third Party Billing rest on the international freight forwarders’ reliability. Freight forwarding is like putting together a puzzle that never stops changing.
The Common Scenario
You’re 1,000 miles away from your multiple purchases being picked-up from a multitude of suppliers from different origins & all going to one or several consignees.
Copies of the purchase orders are received & each supplier is contacted by us to schedule the pick-up upon availability. Once the various shipments get to the central warehouse, each shipment is manifested & warehoused together.
You would then be notified & the manifests per shipment will be sent to match the purchase orders. When all orders are in, the shipment is prepped for shipping.
For an ocean consolidation, the freight can be crated or boxes placed on heat treated pallets, shrink-wrapped & labelled. When shipping a container load, the shipper can have the forwarder hand-stack or palletize, etc. Same goes when air freighting, shippers access airlines containers that come in many different sizes or the weekly consolidation.
The labeling can reflect each separate consignee. The forwarder can also assist with the shipping documents, whether, being shipped to one consignee or several consignees under separate house bill of lading.
Lean on Me!
Shippers receive a detail billing itemizing each service rendered that can be broken down showing each separate consignee, helping identifying costs destined to a particular consignee. Pre-advice emails are dispatched enabling all parties to go about their business
Big or small shipments, whether you ship via air or ocean freight, we offer warehousing, distribution, packing, crating, trucking, customhouse brokerage & inland delivery/pickup services. Click HERE for a free freight quote: