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International Forwarding Association Blog » International freight forwarding » Reducing freight forwarding costs is a major goal of all modern businesses
Reducing freight forwarding costs

Reducing freight forwarding costs is a major goal of all modern businesses

Many companies rely on logistics services for their business. Since freight forwarding is a part of modern business it is not surprising that one major goal for the businesses is lowering the costs for these services. There are several ways which such a reduction of the costs can be achieved by the international freight services. These include: optimizing the inventories and storage services as well as improvement of the branches of the companies and better cooperation with the suppliers.


Reducing freight forwarding costs


Optimization of the accounting operations and the reporting

The optimization of the accounting operations and the reporting helps improve the organization of the business. One major advantage of a well-organized business is saving time. It is a well-known fact that time is money. This allows the companies which rely on the forwarders throughout Еurope to order the forwarding as well as the storage of larger volumes of goods and cargo. This also allows for using logistics services less often.


Optimization of the storage

Storage in own warehouses or in the storage facilities of the network of freight forwarders helps reduce the overall costs for the transport of goods and cargo. By organizing separate sectors in the warehouses and the more efficient use of the available storage space – both in width and in height is one of the basic principles applied by the modern international freight forwarders.

Vertical optimization is achieved by adding additional shelves to the storage racks. This allows the companies which trade with the stored goods to be able to rely on sufficient supplies and thus require less forwarding services.


The storage of larger volumes also helps reduce the necessary care


Many types of goods can be stored for long periods of time without any negative effects on their quality. This allows for the storage of large volumes of goods in the warehouses provided by the freight forwarders directory. This helps businesses in a number of ways including:

  • They do not need to worry about the distribution of the quantities of goods among their distributors and the retailers, due to the fact that there are sufficient quantities available in storage.
  • They do not need to be in constant touch with the distributors and retailers by phone or online to check what quantities will be needed in the near future.
  • There is no risk for their reputation among their distributors, retailers and end customers due to lack of supplies for the goods in demand.
  • The costs for express deliveries to meet the demand are eliminated.



The cooperation with the distributors also reduces costs

Distributors are important business partners with specific interests one of which is to reduce the costs for the freight forwarding services. This can be achieved by optimized organization which saves time and requires fewer deliveries.

The member companies of the international freight forwarders association cooperate both with their customers as well as with their distributors. They offer storage and organization of the deliveries for a more efficient distribution and retail by saving them time as well as money.


The role of the freight forwarders for lowering the costs for logistics

The member companies of the international freight forwarders network offer another method for lowering the overall costs for the transport services. They do that by providing optimized routes to the end destinations which are the shortest and when necessary with combined transport. This allows for faster deliveries at lower transport costs.