There is often confusion between global logistics and freight forwarding companies. Both provide transportation and shipping services, but some key differences exist between the two. Global logistics companies generally have a more comprehensive range of services and a more global reach than freight forwarding companies. They often have a fleet of vehicles and warehouses. They can provide end-to-end supply chain management solutions and may also offer other services such as customs clearance and freight insurance.
Freight forwarding companies tend to be smaller than global logistics companies and have a limited range of services. They don’t usually have their vehicles or warehouses, but they will often have partnerships with shipping companies, which allows them to give their clients competitive rates. Freight forwarders are experts in the documentation and regulations involved in international shipping, saving businesses a lot of time and money.
What are the benefits of using a global logistics company?
The benefits of using a global logistics company include;
A more comprehensive range of services
Global logistics companies can offer a comprehensive solution for all your shipping needs, saving you time and money as you don’t need to source multiple suppliers.
A global reach
If you’re shipping goods internationally, a global logistics company is best suited to meet your needs. They have the experience and infrastructure in place to handle cross-border shipments.
End-to-end supply chain management
Global logistics companies can manage your entire supply chain, from procurement to delivery, which can take a lot of pressure off your business, freeing up time and resources to focus on other areas.
What are the main benefits of using a freight forwarding company?
The benefits of using a freight forwarding company include;
As freight forwarders have partnerships with shipping companies, they can often get competitive rates for their clients.
Expertise in international shipping
Freight forwarders are experts in the documentation and regulations involved in international shipping, saving businesses a lot of time and money.
Freight forwarding companies are usually smaller and more agile than global logistics companies, meaning they can be more flexible in meeting your shipping needs.
Because freight forwarding companies are usually smaller, they can offer a more personalized level of service. A dedicated account manager often will get to know your business and your shipping requirements, which can be a significant advantage over the impersonal service offered by global logistics companies.
What are the main risks of using a logistics or freight forwarding company?
There are several risks when it comes to using a logistics or freight forwarding company, including
Loss or damage to goods
There is always a risk that your shipment may be lost or damaged when shipped. This is why it’s essential to choose a reputable and experienced logistics or freight forwarding company.
Delays in delivery
There is another risk that your goods may be delayed in transit, which can be due to factors beyond the control of the logistics or freight forwarding company, and could include bad weather or delays at customs.
How can you avoid these risks?
Here are some easy steps you can take to avoid the risks associated with using a logistics or freight forwarding company, including;
Before choosing a logistics or freight forwarding company, check reviews from other businesses, which will give you an idea of the exact level of service you can expect.
Asking for references
You should also ask the logistics or freight forwarding company for references from other businesses they have worked with, which will allow you to speak to other businesses about their experiences.
It’s also a good idea to get shipping insurance for your goods, which will cover you if your goods are lost or damaged.
The bottom line
So, what’s the best option for your business? It depends on your specific needs. If you’re looking for a comprehensive solution with a global reach, then a global logistics company is the way. However, if you’re looking for competitive rates and personalized service, a freight forwarding company might be better.